SAMPLE

CONTRACT

Date: Today's date

To: Customer

Location: Customers address

Description of Work

The Contractor agrees to furnish all materials and labor in a good, workmanlike manner, to perform all of the work that is required to complete the following:

Addition

• Remove the two closets that face the carport.
• Remove the walls that separate the kitchen from the carport. Build a beam to carry the load of the second floor. The beam is to be above the ceiling.
• Remove the wall that separates the den from the carport.
• Remove the plywood that covers the ceiling.
• Build a floor system over the existing carport slab.
• Frame the new walls as shown.
• Three twin 3052 clad windows are to be installed. The grills are to be SDL grills.
• The exterior door is to be a 3068 clad, 15 lite door with SDL grills.
• Add and or relocate 5 HVAC supply runs from the existing system. Vent the dryer and the downdraft cook top.
• The following electrical work is to be installed in the kitchen and addition:
• 18 plugs
• 11 switches
• 16 recessed lights
• 3 ceiling lights
• 1 cable jack
• 1 phone jack
• 7 under counter lights
• 2 low voltage puck lights
• Hook up all appliances.
• Up date the outside panel for 1 dryer circuit, 1 washer circuit, 1 oven circuit, and 1 cook top circuit.
• Up date the smoke detectors to code.
• Supply the 16 recessed light fixtures, 7 under counter light fixtures, and 2 puck light fixtures. The owner is to supply the ceiling light fixtures.
• Insulate the exterior walls and ceiling.
• Sheetrock the walls and ceiling.
• Trim out the room with trim that matches the existing house.
• 1x10 C and better pine is to be installed for exterior siding. Match the existing siding as closely as possible.

Kitchen/Laundry

• Remove all the cabinets, plumbing fixtures, electrical fixtures, flooring, and sheetrock.
• Remove the wall that separates the kitchen from the carport. Remove the walls that enclose the washer and dryer.
• Build new walls for the laundry room.
• Rough in the plumbing and electrical work in the new locations.
• Insulate the exterior walls. Insulate the ceiling.
• Sheetrock the walls and ceiling. Trim out the room with trim that matches the existing house.
• The laundry room pocket door is to be a wood, 6 panel door.
• Hardwood flooring that matches the existing flooring is to be installed in the kitchen, laundry, and new addition. Tooth in the hardwood with the existing flooring in the den. Sand and finish all new flooring. Refinish the flooring in the den. No work is to be done in the dining room and hall.
• Install cabinets as per plans. The tops are to be Corian, color and style chosen by owner.
• Install a tile backsplash to match top.
• The following appliances are to be supplied and installed: (The model #s will be listed)
• Cook top
• Oven
• Microwave
• Dishwasher
• Disposal
• The following plumbing fixtures will be installed:
• Sink
• Faucet
• Bar sink
• Faucet
• Ice maker hook up for two refrigerators
• Paint the walls, ceiling, and trim in the kitchen, laundry, and new addition.
• Paint the driveway end of the house. Paint all new siding.
• Clean up and haul off all trash.

Payment to the Contractor

The Owner shall pay the Contractor the sum of $ for the work described in this contract. The contract price is payable as follows:

10% upon signing the contract

20% upon start of wall framing

30% upon framing inspection

20% upon start of cabinet installation

15% upon start of painting

Balance upon completion

Exclusions

Unless specifically included in the "Description of Work" section above, this Agreement does not include labor or materials for the following work: Removal and disposal of any materials containing asbestos (or any other hazardous material as defined by the EPA). Custom milling of any wood for use in project. Moving Owner's property around the site. Labor or materials required to repair or replace any Owner supplied materials. Repair of concealed underground utilities not located on prints or physically staked out by Owner, which are damaged during construction. Surveying that may be required to establish accurate property boundaries for setback purposes; Landscaping and irrigation work of any kind and temporary sanitation or fencing; Correction of existing out-of-plumb or out-of-level conditions in existing structure. Correction of concealed sub-standard framing. Re-routing or removal of vents, pipes, ducts, structural members, wiring or conduits, steel mesh which may be discovered in the removal of walls or the cutting of openings in walls; Removal and replacement of existing rot or insect infestation; Failure of surrounding parts of existing structure. Despite Contractor's good faith efforts to minimize damage, such as plaster or drywall cracking and popped nails in adjacent rooms, or blockage of pipes or plumbing fixtures caused by loosened rust within pipes. Exact matching of existing finishes. Repair of damage to existing roads, sidewalks, landscaping and driveways that could occur when construction equipment and vehicles are being used in the normal course of construction.

Not responsible for any damage caused by mold.

Allowances

Payment for work designated in the Agreement as allowance work has been initially factored into the lump sum price and payment schedule set forth in this Agreement. If the actual cost of the allowance work exceeds the item allowance amount in the Agreement, the difference between the cost and the item allowance amount will be written up by the Contractor as a Change Order. Overhead and profit in the amount of 30% will be added to the additional amount.

If the cost of the allowance work is less than the allowance line item amount listed in the Agreement, a credit will be issued to the Owner after all billings related to this particular item have been received by the Contractor. This credit will be applied toward the final payment owing under the Agreement. Contractor overhead and profit will not be credited back to Owner for allowance work.

Additional Work Requests

If the Owner requests a change in the scope of the work, the Contractor shall prepare a written additional work order which shall reflect the increase or decrease in the contract price. The additional work order must be signed by the Contractor and Owner. All additional work orders are to be paid in full upon signing of the work order. The Owner shall not direct any of the Contractors employees; subcontractors or suppliers to make any changes without the Contractor's express written consent.

The Owner agrees to pay the Contractor $48.00/hour for the Contractor to research, discuss and meet with vendors, trade contractors and/or the Owner in an effort to determine the feasibility of a change. If the additional work order is approved, this time will be added to the work order. If the work order is not approved, the Owner will pay for the time spent researching the change. The Owner will pay the Contractor within 5 business days of the Contractor presenting the Owner with a bill.

Electrical Change Order

The above list contains the number of electrical plugs, switches, telephone outlets, CATV outlets and light fixtures that are included in the bid price. After the framing is complete, the Owner, Contractor and the electrical contractor will walk through the job and locate each individual outlet. The total of the outlets will be tallied. Any outlets over and above the bid amount will be priced as follows:

• Plugs open walls $81.00
• Plugs closed walls 142.00
• GFI Plugs 126.00
• Dedicated circuits 227.00

Dedicated circuits include washer, dishwasher, disposal, microwave, bath plug, iron, gas furnace blower, freezer, whirlpool bubble tub.

• Switches and light in open walls-No fixture 148.00
• Switch and light in closed walls-No fixture 227.00
• Recessed can in open wall-w/fixture 112.00
• Recessed can in closed wall-w/fixture 215.00
• Recessed can and switch in closed wall-w/fixture 297.00
• Telephone outlets CAT-5 wire in open wall 81.00
• Telephone outlets CAT-5 wire in closed wall 142.00
• CATV outlets RG-6 wire in open wall 81.00
• CATV outlets RG-6 wire in closed wall 142.00
• Dedicated 240 volt outlet 465.00

Dedicated circuits include HVAC compressor, electric furnace, dryer, stove, oven, hot water tank.

For every combination of 5 plugs, switches, and or light fixtures, a home run is required. The cost for a home run is $227.00

As a general rule, existing outlets will have to be rewired.

Owner Supplied Materials

Contractor cannot warrant any Owner-supplied materials or fixtures (whether new or used). If Owner-supplied fixtures or materials fail due to a defect in the materials or fixtures themselves, Contractor will bill the Owner for all labor and materials required to repair or replace both the defective materials and fixtures, and any surrounding work that is damaged by these defective materials or fixtures.

Limitations Inherent with Remodeling Projects

The owner understands and agrees that there are certain limitations inherent in any remodeling project which does not exist with new construction projects.

1. The Contractor will use his best effort to patch any damage to the existing structure but the patching may be detectable.

2. The Contractor will use his best effort to match any new materials to the existing materials. However, the difference in material may be detectable.

3. The Contractor will use his best effort to minimize damage to existing driveways, landscaping, lawns and any other existing improvements to the property. The contract price does not include any allowance for the repair or replacement of any such items.

4. All dimensions and designations on the plans or specifications are subject to adjustments as caused by existing conditions.

5. The contract price may be changed due to latent defects in the existing structure including but not limited to, soil conditions that may require extraordinary work, the presence of asbestos materials, inadequate structural support for the remodeling project or damage to the existing structure (termites/wood rot) which could not be observed by the Contractor prior to commencement of the work. If the Contractor encounters any such latent defects, the Contractor shall immediately notify the Owner and shall prepare an estimate of the increase in cost.

Dangers Inherent in Remodeling Projects

There are certain dangers inherent in remodeling projects because the owner usually occupies the structure while work is ongoing. The Contractor will take reasonable effort to secure the job site at the end of each day. The Owners are solely responsible for any injuries to the Owners, members of the Owner's family, invitees or trespassers on the project during the term of the contract.

Insurance Requirements

The contractor shall maintain worker's compensation insurance and liability insurance for damages to persons or property that enter onto the job site at the request of Contractor. The Owners are responsible for all other insurance requirements including casualty insurance in an amount necessary to cover the improvements to the property as a result of this contract. The Owner shall bear the risk of loss for all materials incorporated into the structure or stored on the job site.

Contractor's Obligations

(1) The Contractor is duly licensed by the State of Montana.

(2) The Contractor will obtain all required building permits to complete the project.

(3) The Contractor is authorized to place appropriate signs for advertisement and to assist in the delivery of materials to the project site.

(4) The Contractor will remove debris and surplus material from the property and leave the property in a neat orderly condition.

(5) The Contractor is a member of the Better Business Bureau. If a dispute arises that cannot be resolved, it will be submitted to the Better Business Bureau for mediation and or binding arbitration.

Warranties

The Contractor makes no warranties, express or implied, except as expressly state herein....

1. The Contractor warrants that all material will be new unless otherwise specified and that all material and labor shall be warranted for a period of one year from the date the Contractor gives the Owners notice of substantial completion.

(2) The warranty on any appliance or equipment supplied by the Contractor is limited to the warranty period provided by the manufacturer of such appliance or equipment.

Final Contract Payment

The final contract payment is due and payable upon "Substantial Completion" of all work under contract. "Substantial Completion" is defined as being the point at which the building/work of improvement is suitable for its intended use. Upon submittal of the final bill, the Contractor and Owner will compile a list of items that are not completed. The Owner is to make the payment of the final bill within 5 working days. At time of making the final payment, Owner may retain 10% of the amount of the final draw to cover the cost of the items that were not completed. This retention assures the Owner that the Contractor will complete all punch list work in a timely manner. When the items on the list are completed, the Contractor is due the amount that was held back by the Owner. If any additional items are discovered that are not completed, those items will be handled as a warranty items and will not cause the Owner to hold up the final payment.

In no event shall the Owner withhold or retain funds due to the Contractor in an amount which exceeds the actual cost, or reasonable estimate of the actual cost, to complete or correct any work in question.

Acceptance

This Agreement, the plan, and the Agreement to Arbitrate, referred to above, constitute the entire agreement between the parties. Prior discussions or verbal representations by Contractor or Owner that are not contained in this Agreement are not a part of this Agreement. In the event that any provision of this Agreement is at any time held by a Court to be invalid or unenforceable, the parties agree that all other provisions of this Agreement will remain in full force and effect. Any future modification of this Agreement must be made in writing and executed by Owner and Contractor in order to be valid and binding upon the parties.

In view of changing labor and material conditions, this contract is subject to review by the Contractor unless accepted within thirty (30) days.

We, the undersigned, have read and understand and agree to each of the provisions of the contract and hereby acknowledge receipt of a copy of this contract. The Contractor is hereby authorized to begin work.

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Johnson's Fine Carpentry and Building Representative

__________________________________

Owner's Signature

__________________________________

Owner's Signature

__________________________

Date Signed