S C : AMPLE

SAMPLE CONTRACT:
1560 NORTH COUNTRY CLUB PARKWAY • ELKHORN, WI 53121 • 262-723-6250 (PHONE) • 262-723-6258 (FAX) •WWW.CD-PH.COM
CONSTRUCTION CONTRACT
BUYER
BUILDER
1. THIS CONTRACT made this ___ day of _________, 2009 between
___________________hereinafter called the “Buyer” whose addresses are
_________________________________,
whose
telephone
numbers
are:
_________________ and whose e-mail addresses are _________________ and
Preservation Homes, Inc hereinafter called the “Builder”.
LEGAL
DESCRIP
TION
2. In consideration of the covenants and agreements herein contained, the Buyer being
the owner of the ________________________________________. does hereby agree
to employ the Builder to construct and erect on said building site a building described
as: a 2525 square foot ranch home with 1840 square feet of finished lower level- a
single family residence substantially similar to certain basic plans dated
____________ and additional detailed specifications dated ________ which the Buyer
has examined and approved and which are incorporated as part of this Contract by
reference on the following terms and conditions of the total contract price shown:
BASE
PRICE
3.
Base Price of Home: $ ___________
4. Buyer agrees and understands that line #3 “Base Price of Home” includes the following
items as part of the price.
INCLUDE
D
ITEMS
Foundation:
o Footings & Drain-tile
o 8” x 8’ Poured Concrete walls & 3’10” x 8” Poured Frost Walls at front stoop, all
concrete shall attain a 28 day compressive strength of 3000psi and shall be
verified prior to pouring the walls and shall be overseen and verified by CD-PH
during the wall pouring process.
o Damp-proofing of house foundation
o 4” Pea-Gravel at basement floor
o Vapor Barrier under basement floor
o 2” foam insulation under basement floor
o 4” Concrete Basement Floor with saw-cut joints
o 4” Concrete Garage Floor with saw-cut or tooled joints
o 2” Foundation Insulation from footing to top of poured wall.
o Aluminum Flashing over 2” foundation insulation @ perimeter of home COLOR:
10
o
o
o
Dark Bronze
5” Thick Front Stoop
12” Sonotubes for deck (3)
Garage Slab is near to flush w/ finished house floor and pitched to garage doors
Framing:
o 5.5” Thick wall with staggered 2x4 wall construction for home, 2x4 construction
of garage & interior walls per plan with ½” OSB sheathing
o 14” Engineered Floor Joists w/3/4” T&G OSB
o Roof Trusses w/5/8” OSB sheathing
o Typar/Tyvek House Wrap entire home, garage and all gables
o Unlimited Vinyl Windows per plan; COLOR: Tan with oak jamb extensions at
first floor and primed jamb extensions at finished lower level
o Front Door: Fiberglass with aluminum cladding (similar to Unlimited Tan).
Exterior to be Burgandy in color; actual color T.B.D.
o Garage Fire Doors (2) to be fiberglass two panel 6/8 door (20min fire-rated)
(similar styling to interior doors) Color T.B.D.
o Garage Service Door – to be a fiberglass two panel with aluminum clad 3/0-6/8
(similar color to Unlimited tan (similar styling to interior doors) Color: T.B.D.
Exterior :
o Window Sealant Tape and Boot at all windows
o James Hardi Prefinished Cement Siding: COLOR: Monteray Taupe
o Primed Miratec trim (4” & 6”) To be painted on site COLOR: SW6447 Evergreen
o Primed Miratec Keystones above windows and doors at front elevation;
COLOR: SW 6447 – Evergreen.
o Primed Smart Side vented soffit panel: To be painted on site COLOR: SW6447
Evergreen
o Primed Miratec Fascia: To be painted on site COLOR: SW6447 Evergreen
o 5” Seamless Aluminum Gutters with 3”x4” oversized downspouts: As close to
SW6447 Evergreen as possible or as close as possible to Unlimited Tan
o Aluminum drip-edge & Gutter Apron Complete Home and Garage: As close as
possible to: SW6447 Evergreen
o 30Year Dimensional Shingles with ridge vent: COLOR: Driftwood
o Ice & Water shield at valleys at (3’) and eves at (6’).
o Pressure Treated Deck Floor Framing w/composite decking and handrail
system with metal balusters (3/4” round – Bronze color): COLOR: Trex – Brown
o Stone Pillars (per plan) cultured stone: COLOR: Same as P.H. Office Building
o Storm-Screen Door – At Entry Door (Aluminum) – COLOR: TBD
Interior:
o Insulation:
 Non-Settling Cellulose or Blown Fiberglass Walls over 1” spray foam at
all exterior walls– R-22 to R-24
 Attic – R-50 Stabilized Cellulose
 Joist-Ends/Box-Sills – Spray Foam
 Non-expanding foam at all windows and doors (jamb to framing)
o Drywall: Home and Garage
 5/8" walls
 5/8” ceilings
 Texture on walls: Light Knockdown (garage texture is not included)
 Round Corner Bead for all outside corners
o Millwork:
 Door Hardware:
All Interior & Exterior: Schlage: Brushed Nickel Levers
Entry Door: Schlage: Simliar to: ClasseCollection 892 Nuova
Lever – and thumb button exterior - Brushed Nickel Finish
 First Floor: CONFIRM COLOR PRE ORDER (Medium or Cider)
11
o
o
o
Two Panel-Raised Panel Prefinished Oak Doors: COLOR:
Medium Brushed Nickel Hinges
Colonial Style Casing – 3-1/4” Prefinished Oak: COLOR:
Medium
Colonial Style Baseboard – 5-1/4” Prefinished Oak: COLOR:
Medium
Base-shoe Molding – 5/8”x3/4” Prefinished Oak: COLOR:
Medium
Cabinets: Custom Built Oak cabinets per OAR Design
(attached) Constructed with “GREEN” materials (formaldehydefree glues and adhesives and low – no V.O.C. finishes.
Shelf and pole for closets and five shelves in closets as noted
per plan
 Lower Level: CONFIRM COLOR PRE ORDER (Medium or Cider)
Two Panel-Flat Panel Prefinished Pine Doors: COLOR:
Medium
Craftsman Style Casing – 2-1/2” Primed: Site Paint COLOR:
TBD
Craftsman Style Baseboard – 3-1/2” Primed: Site Paint Color:
TBD
Base-shoe Molding – 5/8”x3/4” Primed: Site Paint Color: TBD
Chair-rail molding to be installed around perimeter of rec-room;
Site Paint Color: TBD
Cabinets: Custom Built Oak cabinets per OAR Design
(attached) Constructed with “GREEN” materials (formaldehydefree glues and adhesives and low – no V.O.C. finishes.
Shelf and pole for closets and five shelves in closets as noted
per plan
Countertops:
 Kitchen: Granite - COLOR: UBA-TUBA
 Bathrooms: Romanite – Solid Surface - COLOR: Manistique w/ bisque
bowl – OGEE Edge Profile
 Laundry: Laminate COLOR: Formica - Almond Dust - 1817-58 edge
profile:_TBD
 Desk Area: Laminate: COLOR: Formica 7499-85 – Jasper Envision
edge profile: TBD
 Lower level kitchenette: Laminate: Color: Formica 6940-58 Skylark
Boomerang edge profile: TBD
Flooring
 Great Room, Dining Room, Kitchen, Bedroom 1, Bedroom 2,and Master
Bedroom; Shaw Engineered Wood Floor SW119 3/8” x 3-1/4” Oak,
COLOR: #780 Gunstock
 Entry Foyer, Mud-room, Laundry, ¾ Bath, Desk Area, Main Bathroom,
and Master Bathroom. See drawings attached for specs, selections &
Layouts. This section also includes tiling of tub-deck and shower in
Main Bath, Master Shower, and backsplash in Kitchen.
 Stairs to basement are Oak Treads, Oak Risers and Oak Stringers,
finished on site to COLOR: To match #780 Gunstock Flooring
 Basement to be painted concrete: COLOR: TBD (Light to Medium Grey
–HC SEAL CRETE COLOR IS “PEWTER”)
Plumbing
 All Code required; supplies in PEX and all DWV in PVC
 Sinks:
Kitchen:
o Main:QULS3322-077 Swanstone Granite (undermount)
o Prep: 511-637 Blanco Silgranite (undermount)
Basement Kitchenette: QZSB2522-075 Swanstone (24”x21”)
 Fixtures:
Kitchen:
12
o
Main: Jasmine w/conventional Spout 3821.641 w/
sprayer; altnerate:3821.834 w/sprayer (brushed satin)
o Prep: Jasmine Hi-Flo # 3821.831 (brushed satin)
Basement Kitchenette: Jasmine Hi-Flo # 3821.834 w/sprayer
(brushed satin finish)
Master Bath:
o Jasmine Satin Nickel Lav Faucets (2)
o R-120 Shower valve & Jasmine Trim – Satin Nickel
o Evolve Low-Flow Shower Head w/Ladybug
o Gerber Dual Flush Round Bowl – Bisquit Toilet
o Soft Close Toilet Seat – Bisquit
o Grab-bars in Shower – 2 16” Brushed Appearing
o Towel Bars, Rings and Tissue Holders- Satin Nickel:
 Gatco 4362
 Gatco 4354
 Gatco 4353
Bath # 1:
o Jasmine Satin Nickel Lav Faucet
o R-120 Shower valve & Jasmine Trim – Satin Nickel
o Evolve Low-Flow Shower Head w/Ladybug
o Gerber Dual Flush Round Bowl – Bisquit Toilet
o Soft Close Toilet Seat – Bisquit
o Iris Amarilis Tub-Filler – Satin Nickel
o WR 920 Bath-Tub with tile flange & grab bars
o Grab-bars in Shower – 2 16” Brushed Appearing
o Towel Bars, Rings and Tissue Holders- Satin Nickel:
 Gatco 4360
 Gatco 4362
 Gatco 4365
 Gatco 4354
 Gatco 4353
Bath # 2:
o 4” Seva Satin Nickel Lav Faucet
o R-120 Valve & Seva Satin Nickel Trim
o Evolve Low-Flow Shower Head w/Ladybug
o Gerber – Dual Flush Round Bowl
o Warm Rain 48x36 Shower Unit (no dome)Color: Bisquit
o Grab-bar in Shower – 1-16”
o Towel Bars, Rings and Tissue Holders-Satin Nickel:
 Gatco 4360
 Gatco 4362
 Gatco 4354
 Gatco 4353
Basement Bath:
o 4” Seva Satin Nickel Lav Faucet
o R-120 Valve & Seva Satin Nickel Trim
o Evolve Low-Flow Shower Head w/Ladybug
o Gerber – Dual Flush Round Bowl
o Warm Rain 48x36 Shower Unit (no dome)Color: Bisquit
o Grab-bar in Shower – 1-16”
o Towel Bars, Rings and Tissue Holders-Satin Nickel:
 Gatco 4362
 Gatco 4354
 Gatco 4353
MISC Plumbing:
o Three Exterior Water Hose Bibs
o One Hot-Cold Freezeproof Hose Bib in Garage
o
Electrical
13





All code required circuits, outlets, switches, smoke alarms & wiring of
appliances
320 amp service to home
60 amp service to work shop
Phone and cable box at each room
Light Fixtures or specific space requirements Included:
Lower Level:
o Exercise & Office: 59094BLE-15 (1 each)
o Bath: Wall Sconce: 49216BLE-962 (1)
o Storage: 2-Bulb x 4’ Covered Flourescent (2)
o Vestibule @ Mainstairs: 59151BLE-15 (1)
o Garage Stairs & Vestibule 59151BLE-15 (3)
o Mechanical Room: 4 Keyless Fixtures
o Storm Cellar: 1 Fixture with Battery Backup
o Recreation Room - Main Area: Recessed Lights
o Exterior: 2 Coach Lights: 89182PBLE-71
o Two Ceiling Outlets centered in Rec Area
o 15% more-than-code required outlets at perimeter walls
of rec area – every other outlet to be a quad
o Wiring of Geothermal HVAC sytem
o Wiring of Hot-Water Heater
Main Floor:
o Garage:
 Coach-Lights (1@each corner, 1 centered
between doors(3total) 89182PBLE-71
 Five Keyless Fixtures in main garage area
 Recycling Area/entrance – 59131BLE-15
o ¾ Bath@ mudroom:
 (1) 49220-BLE-962 centered above mirror
o Mud Room:
 (1) 5915BLE-962 – centered in space
o Laundry Room:
 (1) 5915BLE-962 – centered in space
o Pantry:
 Door Activated Switch
 (1) 59133BLE-15 – centered in space
o Kitchen:
 8 Recessed Fixtures (LED)
 (3) Island Pendants – 69034BLE-962 (2 lower
and 1 higher above sink)
 (2) Peninsula Pendants – 69034BLE-962 (at
opening to great room)
 Task Lighting @ both sides of cooktop and (1)
at area of kitchen common with the hallway
o Dining:
 (1) 69153BLE-962 (dimmable if possible)
o Great Room:
 (8) Recessed Fixtures (incandescent)
 (1) 1535-962 Ceiling Fan with touch controls
 (1) set 1653-704 (Oak Finished Fan Blades)
o Entry Foyer:
 (1) 59150BLE-962
o Front Porch and soffits at front of home
 (7) Recessed Lights (2 @ porch 5 @ soffits)
 NOTE: SOFFIT LIGHTS TO BE DUST-DAWN
OR MOTION SENSED CONFIRM.
o Bedroom #1:
 (1) 59152BLE-962
 (1) Flourescent in closet, wall switched
14
o
o
o
o
o
o
o
o
o
o
o
Bedroom #2:
 (1) 1535-962 Ceiling Fan with touch controls
 (1) set 1653-704 (Oak Finished Fan Blades)
 1624-BLE-962 Light Kit (Brushed Nickel)
 (1) 1686-39 Scavo Glass Kit
 (2) Door activated fluorescents (1 per closet)
Bathroom # 1
 (1) 49221BLE-962 centered above mirror
 (1) Fan-Light exhaust fan combo – humidity
sensing
 (1) Recessed Waterproof light in Shower
Bedroom #1&2 Hallway
 (1) 59150BLE-962
Hallway to Master Bedroom & Mudroom/Desk area
 (2) 59150BLE-962 (centered) 4-way switched
Master Bedroom
 (1) 1535-962 Ceiling Fan with touch controls
 (1) set 1653-704 (Oak Finished Fan Blades)
 (1) 1624-BLE-962 Light Kit (Brushed Nickel)
 (1) 1665-33 - Satin White Glass Kit
 (1) 59394-BLE-15 Door Switch Activated
Master Bathroom
 (1) 492222BLE-962 (48”) (over mirror)
 (1) Recessed waterproof light in shower
 (1) Fan-light exhaust fan combo – humidity
sensing
Exterior Deck
 (2) 89182PBLE-71 Coach Lights
Exterior “Spots”
 (2) two-bulb spot lights at rear elevation
 (1) two-bulb spot light above garage door
Stairs to Basement
 (1) Wall Sconce 4915BLE-962
HVAC:
 Geothermal Heating Cooling and Domestic Hot Water supply with up to
8 zones (Up to 5 first floor and 3 lower level)
st
 In-floor heat tubing at 1 floor and lower level
 HRV System to manage air exchange in the home
 Gypcrete – lightweight concrete at entire first floor
 All necessary ductwork, grilles, vents, bath fan & range-hood venting
MISC:
 Dumpster (1-30yard container is included in this agreement)
 Well: An allowance of $6,480.00 is included in this agreement for a well
up-to 140’ in depth.
 Septic: A mound is included (per soil tests provided) for a 3 bedroom
home)
 Appliances:
Thermador Induction Cooktop & Dbl Oven
LYLES FLOOR DISPLAY 30” Highbred induction cooktop
MED302ES 30” Dbl Convection Oven
Fisher & Paykel Dishwasher, Washer & Dryer
DS605SS Stainless Steel 24” semi-integrated single dishwasher
drawer.
IWL16 - “Intuitive Eco” White top-loading washer
DG27CW1 – “Aerosmart” White top-loading dryer
15
Amana Refrigerator:
AFD2535FES – 25 cu.ft. Stainless Steel – French Door w/freezer
drawer














DELETIO
NSCREDITS
Garage Doors: (2) Insulated raised panel with whisper drive openers &
one keypad – COLOR: TBD (CONFIRM - GREEN OR BURGANDY)
Priming and Painting of entire interior of home; Colors as follow:
Ceiling White: All Ceilings, Closets & Pantry throughout home
Laundry Room: SW7649 - Silverplate (Grey)
Bathroom #2: SW7738 Cargo Pants (Green)
Mudroom, Hallway, Dining, Kitchen, Great Room, Stairs to
basement & Alcove (between bed#1 & bed#2) – SW6113
Interactive Cream (tan)
Master Bedroom & Bathroom: SW7721 Crescent Cream (tan)
Bedroom #2 & Bedroom #3: SW7722 Travertine (tan)
Bathroom #1: SW7717 Ligonier Tan (tan)
Basement: Rec Area:
o Above Chair-rail: SW7000 Ibis White (white)
o Below Chair-rail: SW6957 Undercool (blue)
Basement: Exercise & Office: SW6800 Something Blue (blue)
Basement Bathroom: SW6785 Quench Blue (blue)
Basement Floor: H&C Shield Crete – Pewter - CONFIRM
Caulking and Painting of exterior trim (one color) entire exterior details
COLOR: SW6447 Evergreen
Deck per plan in composite decking, composite handrail and metal
balusters
Cultured Stone to wrap front porch columns: COLOR same as P.H.
Offices
WE energies: (An allowance of $ 500.00 has been included in this
agreement for the installation of electric service to the home-site)
Glass shower door for master shower (semi-frameless)
Glass shower door and panels for bath #2 (semi-frameless)
Glass shower doors for 3/4baths SIL/OBS Doors - Basco
Central Vac system with standard attachments and (2) broom ports
(one in kitchen, one in rec-room)
Glass Mirrors at all bathrooms; sized to compliment each vanity
All bath fans are to be humidity sensing and controlled.
Survey and siting of building on site and re-certification of foundation
Outbuilding very similar to attached plans:
24’x24’
Floating Concrete Slab
2x4 construction
Vinyl siding, aluminum soffit and fascia, 30 year shingles
(colors: Driftwood)
Vinyl Windows (operable)
Dbl Steel Door (8’0”)
5. Buyer agrees to the following deletions from the basic plans and specifications and
credits to the basic price stated above:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
TOTAL DELETION CREDITS APPLIED AT CONTRACT SIGNING
$ ________
_________________________________________________________________________.
TOTAL PRICE OF BUILDING, ADDITIONS/EXTRAS, DELETIONS/CREDITS:$ ________
16
SITE
COND
ITION
ALLOWA
NCE
6. Buyer agrees to pay for the following items in addition to the above and agrees that the
following amounts are allowance estimates. Builder agrees that these estimates were
compiled in a formal process from actual subcontractor quotes, or based on
professional experience. Builder agrees that these allowance estimates represent the
specifications, style, materials, and completion state of the building and property that
have been discussed with buyer:
Building Permits & Additional Fees (ALLOWANCE):
$ ________
State and County sanitation permits (ALLOWANCE):
$ ________
Excavation, Rough Grading, Topsoil Stripping & Rough Spreading, Driveway Cutting &
Driveway Stone, Backfill Stone, (ALLOWANCE):
$ _______
WE Energies Electric Service Installation, (ALLOWANCE):
$ ________
OTHER
ALLOWA
NCE
ALLOWA
NCE
DEFINED
De-Watering of Foundation: None is included; any charges will be passed-along at cost +
Any listed above as “Allowance or “Allowance Included”
Site Preperation: Nothing is included in this agreement for the removal of trees, brush or
debris currently on the site. Buyer is to remove all necessary trees and brush prior to
commencement of construction related work
Frost Charges or Cold-Weather Charges: None have been included in this agreement
Easement Road/Drive: Nothing is included in this agreement for the improvement of the
easement road/drive.
Allowance amounts are estimates for the completion of the above-referenced items and are
not guaranteed. All Permit costs are not marked up but rather passed on at actual cost.
All allowances will be charged at Builder’s total cost plus X% for Builder’s markup.
Estimates above are inclusive of the markup. Allowances provided for in this Contract
are subject to adjustment upon completion of the particular work involved. Builder
agrees to notify Buyer in writing as soon as he is aware that actual cost will substantially
exceed allowance. For the term of this contract “substantially” will be interpreted as any
overage of $500 or more. Written notification to Buyer must document the allowance
category, the specific items or work contributing to the overage, and a revised estimate
of cost. When the final costs, including Builder’s markup, for allowance items exceed the
total allowance, Buyer shall pay the difference, including mark-up on the overage.
Allowance items are estimates and may be affected by unknown and unforeseen
conditions which are not under the control of the Builder; therefore, they are difficult to
measure. Some allowance items are affected by Buyer’s choices.
_________________________________________________________________________
TOTAL ALLOWANCES: $ _____________
CONTRA
CT
PRICE
DOWN
PAYMEN
TOTAL CONTRACT PRICE: $ _____________
7. Total Contract Price of: $_______________
17
TS
Down payments shall be made in the following manner:
_______________________ Dollars ($ ____________ ) at Contract signing.
WORK
CRED
ITS
8. Buyer shall receive work credits against the total Contract price for the following labor
and/or materials to be performed and/or supplied:
None have been identified or confirmed
TOTAL WORK CREDITS
($ 0.00 )
($ 0.00 )
Buyer agrees to perform the labor and/or furnish materials as set forth within a reasonable
time after notice from the Builder that such work must be performed or materials
furnished or to provide a cash escrow for such work or materials. Work and/or materials
shall be acceptable to the Builder and appropriate inspection authorities. Buyer is
responsible for determining that any party other than Builder who performs work and/or
supplies material carries worker’s compensation insurance to the extent required by law
and also liability insurance covering operations at the building site in the amount Builder
is required to carry under Paragraph 16 hereof. Buyer agrees to hold Builder harmless
from any and all claims, demands, actions, liabilities, losses, and damages to person or
property arising out of or related to any act or omission of Buyer or any agent,
contractor, or subcontractor of Buyer in, on, or about the building site, in connection with
the performance of work or the furnishing of materials for the construction of the
building. Buyer is responsible for the protection of, and/or repair of, damage to any
materials or labor supplied by Buyer or Buyer’s Agent. Buyer or Buyer’s subcontractor’s
work may void the Builder’s warranty.
CONSTR
UCTI
ON
PAYM
ENTS
9. The balance due (contract price, less down payment and work credit) is $____________
Said balance shall be paid as construction progresses. Builder shall be entitled to 5 draws
from the lender or escrow agent and the parties shall enter an escrow agreement
reflecting the draw procedures. We request the use of Landmark Title Services, 5W
Walworth St. Elkhorn, WI 53105 with phone # 262-743-1515 as the title company to
handle inspections and draws.
Builder shall accompany each payment request with a statement of progress. The format of
the statement of progress shall be mutually agreed to by Builder and Buyer.
Builder shall notify Buyer of payment/draw request at least 3 business days in advance of
submitting the request. The Buyer shall make or authorize payment to the Builder within
3 business days after the receipt of each payment/draw request provided for above.
Builder shall furnish proper waivers of lien to the escrow agent or lender. If required, to
the extent of the progress payment authorized. If timely payment is not received,
Builder shall be entitled to stop work and/or extend Contract time, which shall be treated
as a delay to which Paragraph 19 applies. Buyer will be responsible for all progress
payments not authorized and received and shall, in addition thereto, be responsible for
all costs of collection including actual attorney’s fees. Buyer is responsible for payment
in full prior to taking occupancy.
18
CHANGE
S&
EXTRAS
10. All changes in the plans or specifications will be made upon written order in the form at
Exhibit A attached hereto prior to a change being made. Written changes shall be
signed by Buyer and shall set forth a description of the change, addition or deletion and
the cost or credit. Any changes or extras shall extend the time to complete the
construction as provided in the Change Order. Changes requested by the Buyer during
the process shall, at the sole discretion of the Builder, be subject to a surcharge of
$150.00 per individual change.
CONTING
ENCIE
S
11.A.
If financing is required, this offer is contingent upon the Buyer or Builder on
Buyer’s behalf, securing a fixed mortgage commitment for at least the sum of $
___________ for a term not less than 30 years, with payment amortized over a period
of about 30 years, in monthly installments for principal and interest with interest
computed at not more than an initial rate of 6% per annum, plus mortgage insurance
premium, if any, plus 1/12 of the estimated real estate taxes and 1/12/ of one (1) year
insurance premium. Upon execution of said mortgage, which may include a rate
adjustment clause and prepayment clause, interest thereon shall be borne by the Buyer,
in addition to all other necessary financing costs charged by the Lender, all of which
shall be paid as required. Regardless of whether any delay was caused by Builder,
Buyer, or a third-party, Builder cannot be held responsible for change of mortgage
interest rate during the building process regardless of time it takes to complete
construction. Buyer covenants to attempt to secure financing in good faith and with due
diligence.
A.
FINAN
CING
B.
CASH
SALE
B. N/A
C.
FINAN
CING
COMMIT
MENT
ESCR
OW
C.
If a financing commitment or escrow agreement is not obtained within 30 days
from the date hereof, then either party may rescind this Contract, in writing, and all
monies paid hereunder shall be refunded to Buyer. However, Buyer shall pay Builder
the expenses incurred by Building in carrying out Builder’s obligations hereunder, plus
mark-up, including, but not limited to, the following: survey, building permits, erosion
control, dumpsters, credit report, any required tests, and the cost of plans or
specifications prepared for Buyer. Buyer agrees to sign all documents necessary to
obtain a mortgage or establish an escrow and to authorize the disbursement of
proceeds from same as provided in Paragraph 9 herein.
D.
SALE
OF
OTHER
PROP
ERTY
D.
This Contract is not contingent upon the sale of other property.
E. OTHER
E.
This Contract is further contingent upon: N/A
ESCROW
12. In the event no financing is required, the parties agree that the total contract price, less
the aforementioned down payment (when paid), shall be deposited with an escrow
agent selected mutually by Buyer and Builder naming Builder as escrow proceeds
recipient. Buyer shall pay any fees or charges for said escrow and agrees to authorize
the disbursement of withdrawals from the escrow as set forth in Paragraph 9.
Construction shall not commence until Builder receives written verification, satisfactory
19
to Builder, that the escrow has been established.
CLOSING
DATE
13. Financing shall be closed, prior to the start of construction, at the office of the Buyer’s
mortgagee, on or before the 15 day of February, 2009 or such time and place as may
be mutually agreed upon by the parties hereto in writing. Time is hereby made of the
essence.
DEFAULT
PRIO
R TO
START
OF
CONSTR
UCTI
ON
14. In the event Buyer fails to fulfill Buyer’s obligations under this Contract prior to the start
of construction, all monies paid hereunder shall, at the option of the Builder, be forfeited
as liquidated damages. This Section shall not apply if Buyer properly exercises one of
its contingencies in Paragraph 11 above.
FINANCIN
G OR
CLOSING
DELA
Y
15. The total Contract price provided for in the Contract shall remain in full force and effect
only if the financing referred to above is closed as provided above, time being of the
essence. In the event financing is not closed on or before the stated date, Builder
reserves the right to revise such price to cover any increased material and labor costs.
If such increase is not consented to by Buyer, Builder may, at its option, cancel this
Contract and return Buyer’s funds, less amounts as provided in Paragraph 11.
INSURAN
CE
16. The Buyer shall, prior to commence of the work and until full payment is made to the
Builder, keep the building insured by a Builders Risk Policy, and to deposit with Builder
a Certificate of Insurance until Contract is fulfilled. If the Buyer fails to effect or maintain
insurance as provided above or to deposit the Certificate of Insurance, the Buyer
assumes any or all liability; however, the Builder may insure its interest in the
construction and charge the cost thereof to the Buyer as a line item in this contract. The
Builder shall maintain Comprehensive General Liability Insurance of not less than
$1,000,000.00, Bodily Injury/Property Damage and Workers Compensation. Builder
shall be not liable for uninsured damages or losses, or any other condition or
occurrences which are not within the control of the Builder. Any loss in the amount of
the deductible of a Builders Risk Policy hereunder will be paid by the Buyer
VALIDITY
OF
LOT
OWN
ERSHI
P
17. A Copy of the deed or tax bill (listed in the name of the buyer) shall suffice as proof of
ownership.
LIEN
NOTI
CE
18. As required by the Wisconsin Construction Lien Law, Builder hereby notifies
Buyer that persons or companies furnishing labor or materials for the
construction on Buyer’s land may have lien rights on Buyer’s land and buildings
if not paid. Those entitled to lien rights, in addition to the undersigned Builder,
are those who contract directly with the Buyer or those who give the Buyer notice
within sixty (60 days after they first furnish labor or materials for the construction.
Accordingly, Buyer will probably receive notice from those who furnish labor or
materials for the construction and should give a copy of each notice received to
20
the mortgage lender, if any. Builder agrees to cooperate with the Buyer and
lender to see that all potential lien claimants are duly paid.
CONSTR
UCTI
ON
SCHEDUL
E
AND
STANDA
RDS
BUILDING
SITE
CONDITI
ONS
AND
MATERIA
L
COSTS
WEATHE
R
CONDITI
ONS
SUPERVI
SION
OF
WORK
19. Builder agrees to commence excavation of said building within 30 working days after
Builder’s receipt of down payment (weather and roads permitting), escrow verification,
building permits, change orders, plan revisions or subcontractor agreements. The
Builder shall be the authority for the proper usage, arrangements and placements of
fixtures, equipment and materials in accordance with recognized standards. Said
building shall be completed in a good workmanlike manner in quality equal to the
standards of the industry as expressed in the Construction Industry Quality Standards
published by the LBA (local Association). Construction shall be substantially completed
within 150 calendar days after date of commencement except when Builder shall be
prevented from commencing or completing such building by reason of change or delays
requested by the Buyer or public authorities, other acts of the Buyer, shortage of labor
and materials, abnormal building site conditions, strikes, weather conditions, storms,
lightning, hail, flood or similar occurrences, damages caused by riot, civil commotion,
vandalism, theft, ware, fire, or any other conditions or occurrences whether similar to the
foregoing or not which are not within the control of the Builder. Buyer is cautioned that
the failure of Buyer to make selections in a timely manner will extend the construction
period. In the event commencement or completion of construction is delayed by
reasons of any of the foregoing events occurring during the Contract period and by
reason of such delay the costs of labor and materials are increased over original
Contract price, the increased costs shall be charged as an extra subject to the terms of
Paragraph 10. Builder shall notify Buyer of such increase at the time the increase
occurs and upon Buyer’s request shall furnish the Buyer with copies of invoices or other
documentary evidence to verify such increased costs.
20. In the event abnormal building site conditions are encountered in conjunction with the
foundation, installation of sewer and water laterals or well and septic installation, Buyer
agrees to pay the cost of any additional work or materials. This does not constitute
change in plans and specifications as detailed in Paragraph 10. Buyer agrees to pay for
the additional costs caused or resulting from site conditions including, but not limited to,
the following: abnormal soil conditions, removal of trees, providing fill or cutting to
grade, trucking excess fill, frost breaking, water pumping, concrete pumping, excavation
cave-in corrections, snow removal, and any related costs. Any such extra costs shall be
computed and documented as set forth in Paragraph 6. Builder will not be held
responsible for unknown or unforeseen subsoil conditions that could affect the structure,
well and septic, or laterals.
21. Buyer agrees to pay Builder all additional charges for additional work and materials
which may be required due to weather conditions, including, but not limited to, service
trips to hook up furnace before finish, haying footings and foundation, frost breaking,
snow plowing, etc. Any such extra costs shall be computed and documented as set forth
in Paragraph 6.
22. Buyer agrees that the direction and supervision of the working forces, including
subcontractors, rest exclusively with the Builder, and Buyer agrees not to issue any
instructions to, or otherwise interfere with the same. The Buyer shall at any reasonable
time during working hours have the right to inspect the work. Buyer shall exercise all
reasonable diligence in inspecting, discovering and reporting to Builder, as the work
progresses, all materials and labor which are not satisfactory to Buyer, so as to avoid
21
unnecessary trouble and costs to Builder. Any objection by Buyer not raised upon
inspection shall be deemed to have been waived. Builder shall not be responsible for
any injury to Buyer during said inspections. The Buyer further agrees not to negotiate
for additional work with the subcontractor nor to engage other builders or subcontractors
except with the Builder’s prior consent and in such manner as will not interfere with the
Builder’s completion of work under this Contract. Slight deviations from plans and
specifications shall be construed as substantial compliance with the Contract. Builder
shall retain exclusive control over all subcontractors, material providers and service
providers to the construction site. Subcontractors shall not take direction from the
Buyer.
UTILITIES
WORK
STOPPA
GE
OR
PAYMEN
T
DEFAULT
POSSESS
ION
AND
OCCUPA
NCY
WARRAN
TY
23. Buyer agrees to promptly apply for and have water and electric meters installed in his
name. Buyer agrees to pay for all utility and heating related costs during construction.
24. If the work shall be stopped by the order of the Buyer, any court or other public authority,
or if the Buyer fails to make payments as herein agreed. Builder shall have the right to
stop work or terminate this Contract and receive from the Buyer payment for all work
performed and materials ordered or delivered, together with 15 % mark-up. If Builder
elects to stop work only, stoppage shall be considered a delay, as set forth in Paragraph
19.
25. If, pursuant to written permission of Builder, Buyer should occupy the real estate prior to
final payment, then Buyer and Builder shall amend the Escrow Agreement to include
punchlist items to be completed by the Builder. The amendment shall provide that
Buyer shall execute a final draw release and deposit it with the Escrow Holder. Upon
completion of all of the items on the pointillist and proper verification and/or inspection
or the Escrow Holder, the Escrow Holder shall release the final draw and all payments
owing to the Builder.
26A.
The home constructed under this Contract shall be warranted as follows (check
one):
(A) After completion of the home, final settlement and execution of the application for an
insured warranty plan between Builder and Buyer, the home shall be covered by the
provisions of the insured warranty plan as set forth in the applicable documents; or
X (B) The home constructed under this Contract shall be warranted by a two-year warranty
from completion or occupancy of the home, whichever occurs first. The warranty shall
be governed pursuant to the Construction Industry Quality Standards (as applicable),
published by the LBA. (Local Association).
THERE SHALL BE NO OTHER
WARRANTY BEYOND WHAT IS STATED HEREIN.
Work performed by the Buyer or Buyer’s subcontractor may void any warranty identified herein.
NOTICE
OF
DEFE
CTS
AND
RIGH
T TO
26B.
Builder and Buyer acknowledge that their duties and rights under this Contract are subject to
Section 895.07 of the Wisconsin Statutes, the “Right to Cure Law”, as more fully explained in the Notice
Concerning Construction Defects attached to this Contract as Addendum A and the brochure prepared
by the Wisconsin Department of Commerce titled “Wisconsin’s Framework for Successful
Communications Between Consumers and Contractors.”
BUYER ACKNOWLEDGES THAT A COPY OF THE BROCHURE HAS BEEN GIVEN TO THE BUYER
PRIOR TO SIGNING THIS CONTRACT.
INITIALS
26C. Builder shall not be obligated to replace or repair any Construction Defect, as defined below, or
22
CURE
DISPUTE
S
pay for the replacement or repair of the same if such Construction Defect is caused, in whole or in part
by: (i) Buyer’s improper or insufficient maintenance of the Building or improper or insufficient
maintenance or operation of any of the Building’s systems; (ii) natural occurrences beyond Builder’s
control; (iii) an act or omission of Buyer or any third parties not under Builder’s control, including, but not
limited to, work performed by the Buyer or by Buyer’s subcontractors; or (iv) normal wear and tear and
normal usage. The term “construction defect” shall have the meaning set forth under Section
897.07(1)(e) of the Wisconsin Statutes, as amended from time to time.
27. The following provisions apply should any dispute arise between the parties relating in
any manner to this Contract, including, but not limited to: the meaning of this Contract;
the enforceability of the Contract; the rights or obligations of any party under this
Contract; the performance of any aspect of this Contract or the construction work, or
any disagreements regarding charges for extras or changes.
MEDIATI
ON
If either the Buyer or Builder requests, in writing, that a dispute be resolved by mediation,
the other party must proceed to mediate the dispute(s). If mediation is requested, the
mediation shall be conducted by the LBA. The parties agree, in the even the dispute
proceeds to mediation, that they will make a good faith effort to resolve their dispute(s)
through the mediation process. The parties agree that they will abide by the LBA
policies and procedures. Proceeding to mediation does not waive or affect the
obligation of the parties to resolve their dispute(s) by arbitration in the event mediation is
not successful.
ARBITRA
TION
INTERIOR
CONDITI
ONS
Any dispute which is either not referred to mediation or is not resolved through mediation
(other than enforcement of any insured warranty plan), shall be resolved by arbitration.
The arbitration shall be conducted by Construction Arbitration Services under the rules
then in effect. The decision of the arbitrator(s) shall be final and binding and may be
enforced by any party in a court of competent jurisdiction in accordance with provisions
of the Wisconsin Arbitration Act. Disputes arising under any warranty given in
connection with the agreement shall be settled in accordance with the claims
procedures and dispute settlement mechanism provided in that warranty, if any. The
filing of the lien claim shall not be considered an election by the Builder to waive its
rights under this provision. [The decision of the arbitrators shall be binding, final
and may be enforced in accordance with the applicable provisions of Chapter 788
of the Wisconsin Statutes.]
28. WARNING: Energy efficiency in this home is achieved by construction methods which
reduce air infiltration and air changes per hour. This may result in a concentration of
water vapor from cooking, showering, etc., which, at excessive levels, can cause
property damage. Likewise, concentration of mold, radon or chemical compounds
released from soil, household furnishings, personal possessions, and building materials,
at excessive levels, may create irritant effects or health hazards. Buyer can minimize
adverse effects by proper utilization and maintenance of ventilation fans and/or other
ventilation devices installed by the Builder and by opening doors and windows to
increase ventilation. BUYER HEREBY ACKNOWLEDGES THAT BUYER HAS BEEN
INFORMED OF SUCH HEALTH RISK AND BUYER ASSUMES ALL RISKS OF
23
DAMAGE OR INJURY WHICH MAY ARISE AS A RESULT OF, OR IN ANY WAY
CONNECTED WITH SUCH CONSTRUCTION METHOD AND HEREBY FULLY,
FINALLY AND FOREVER RELEASES AND DISCHARGES BUILDER, ITS OFFICERS,
EMPLOYEES, SUBCONTRACTORS, AND AGENTS FROM AND AGAINST ALL
CLAIMS,
LIABILITIES
AND
EXPENSE
AND
DAMAGES
THEREFROM
WHATSOEVER, WHETHER NOW KNOWN OR HEREAFTER KNOWN, WHICH
BUYER OR ITS ASSIGNS MAY HEREAFTER HAVE AGAINST BUILDER, ITS
OFFICERS, EMPLOYEES, SUBCONTRACTORS, AND AGENTS REGARDING THE
MATTER REFERRED TO IN THIS PARAGRAPH. AS IT RELATES TO THIS
SECTION 28, BUILDER MAKES NO EXPRESS OR IMPLIED WARRANTY OF
HABITABILITY, FITNESS OR GOOD WORKMANSHIP AS TO BUILDING MATERIALS
AND/OR CONSTRUCTION METHODS.
ENVIRON
-MENTAL
ISSUE
S
29. Builder is not responsible for environmental conditions of the building site, including, but
not limited to, stormwater and wetland issues affecting the site. Builder is not
responsible for environmental site conditions including radon, existing lead paint,
asbestos, molds, or unknown conditions at the site.
SAFE
DRIN
KING
WATER
ACT
30. Unless otherwise expressly provided in writing, Builder does not warrant or guarantee
compliance with the provisions of the Safe Drinking Water Act or similar laws or
ordinances relating to drinking water. Compliance with any such law is Buyer’s
responsibility.
SPECIAL
CONDITI
ONS
31. Special Conditions: Currently, none have currently been identified by either party
SIGNATU
RES
32. The signature of either Buyer (if more than one) subsequent to the signing of this
Contract shall be sufficient for all purposes under the Contract, including change orders,
if any.
ENFORC
EABILITY
33.
DEFAULT
AND
TERMINA
TION
34. Builder may, on three (3) days written notice to Buyer, terminate this Contract before
completion if:
If any part of this Contract is found to be unenforceable, it shall not affect the
enforceability of the remainder of this Contract. The failure of either party to enforce any
term or condition of this Contract shall not be deemed to constitute a waiver of any other
breach of any right, claim, term or condition of this Contract.
A. Buyer is in default on any payment for a period of twenty (20) days or more; or,
B. The work is stopped by the Order of the Buyer, Buyer’s architect or engineer, or any
court or public authority.
On such termination, Builder may recover payment for all work completed and for any loss
sustained for materials, equipment, tools, labor or machinery to the extent of actual loss
24
thereon plus reasonable profit. All sums due and owing more than thirty (30) days from
the due date shall bear interest at an annual rate of ten (10%) percent. Builder shall
have the right to collect amounts due hereunder pursuant to all remedies available by
law. To the extent not prohibited by law, Buyer shall pay all reasonable costs and
expenses of collection, including attorney’s fees and other legal expenses, incurred by
the Builder in the enforcement of this contract.
COPYRIG
HT
NOTICE
FINAL
AGREEM
ENT
ACCEPTA
NCES
35. N/A
36. This Contract expresses all agreements between the parties concerning the subject
matter hereof, and shall be binding upon and shall inure to the benefit of the heirs,
administrators, executors, successors and of the parties hereto.
We have read this Contract carefully before signing and hereby acknowledge receipt of a copy
hereof.
Preservation Homes, Inc
BUILDER
BY:
_____________________________
BUYER(S)
BY:
BY:
Received of ___________________________:
DOWN
PAYM
ENT
RECEIPT
__________________________ ($_________)
Date: _________ INITIALS: __________
Copyright © 2001 by the Wisconsin Builders Association. All rights reserved. This document form is
solely for use by the members of the Wisconsin Builders Association.
WBA Contruction Contract 09-18-2006
25
CONSTRUCTION CONTRACT
ADDENDUM A
NOTICE CONCERNING CONSTRUCTION DEFECTS
Wisconsin law contains important requirements you must follow before you may file a lawsuit for defective
construction against the contractor who constructed your dwelling or completed your remodeling project or
against a window or door supplier or manufacturer.
Section 895.07 (2) and (3) of the Wisconsin statutes requires you to deliver to the contractor a written notice of any
construction conditions you allege are defective before you file your lawsuit, and you must provide your
contractor or window or door supplier the opportunity to make an offer to repair or remedy the alleged
construction defects. You are not obligated to accept any offer made by the contractor or window or door
supplier. All parties are bound by applicable warranty provisions.
Buyer acknowledges receipt of the Notice Concerning Construction Defect and the brochure prepared by the
Wisconsin Department of Commerce titled “Wisconsin’s Framework for Successful Communications Between
Consumers and Contractors.”
INITIALS
26