A demolition contract defines the structure(s) to be removed, who pulls the demolition permit, pre-demolition requirements (utility disconnects and — for most pre-1980 structures — an asbestos survey required before permits issue), debris disposal with documented dump tickets, and site condition at completion (rough grade vs. import fill). Residential demolition typically runs $4–$15 per square foot or $6,000–$25,000 per house; payment is commonly deposit plus completion, with disposal fees either included or passed through at cost with tickets.
Demolition Contract Template
Reviewed by the Agiled editorial teamUpdated June 2026
Demolition looks like the simple end of construction — until the asbestos survey comes back positive, the gas line turns out to be live, or the 'demolished and...
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Full template text
DEMOLITION CONTRACT
Date: _______________
Project Address: _______________
PARTIES
This Demolition Contract ("Agreement") is entered into by and between:
Owner: _____________ ("Owner"), with a mailing address of _____________
Demolition Contractor: _____________ ("Contractor"), with a mailing address of _____________, License No. _____________, insured under Policy No. _____________
CLAUSE 1 — SCOPE OF DEMOLITION WORK
The Contractor agrees to furnish all labor, equipment, materials, and supervision necessary to perform the following demolition work at the Project Address:
[Describe the complete demolition scope here, including structures to be demolished, portions to remain, and reference to attached Exhibit A — Demolition Plans and Specifications.]
The Work includes pre-demolition preparation, utility disconnection coordination, hazardous-material abatement (as specified in Clause 7), structural demolition, debris removal, and site grading to the condition specified in Exhibit A.
CLAUSE 2 — CONTRACT PRICE
The Owner agrees to pay the Contractor the total sum of $_____________ ("Contract Price") for the satisfactory completion of the Work. The Contract Price includes all labor, equipment, disposal fees, and permits unless otherwise stated.
CLAUSE 3 — PAYMENT SCHEDULE
- 10% ($___) upon execution of this Agreement
- 20% ($___) upon completion of hazardous-material abatement
- 30% ($___) upon completion of structural demolition
- 25% ($___) upon completion of debris removal
- 15% ($___) upon site grading and final Owner acceptance
Payments are due within ten (10) days of the Contractor's invoice. Late payments accrue interest at 1.5% per month.
CLAUSE 4 — PROJECT TIMELINE
The Contractor shall commence Work on _____________ and shall achieve final completion on or before _____________. Key milestones:
- Hazardous-material abatement complete by: _____________
- Structural demolition complete by: _____________
- Debris removal and site grading complete by: _____________
Delays caused by weather, regulatory hold orders, concealed conditions, or Owner-requested changes shall extend the timeline proportionally.
CLAUSE 5 — PERMITS AND REGULATORY COMPLIANCE
The Contractor shall obtain all required demolition permits, environmental permits, and agency notifications. The Contractor shall comply with all applicable OSHA, EPA, state, and local regulations governing demolition work. Copies of all permits shall be provided to the Owner.
CLAUSE 6 — SAFETY
The Contractor shall prepare and implement a Site Safety Plan that includes dust-control measures, noise-mitigation protocols, public-safety barriers, worker personal protective equipment requirements, and emergency response procedures. The Contractor is solely responsible for the safety of its workers and the public at the Project Address during demolition operations.
CLAUSE 7 — HAZARDOUS MATERIALS
Prior to demolition, the Owner shall provide the results of a hazardous-materials survey conducted by a licensed environmental consultant. The Contractor shall perform abatement of all identified hazardous materials (including but not limited to asbestos-containing materials, lead-based paint, and PCBs) using licensed abatement personnel in accordance with applicable federal, state, and local regulations. Hazardous waste shall be transported and disposed of at licensed facilities, and manifests shall be provided to the Owner.
CLAUSE 8 — DEBRIS REMOVAL AND DISPOSAL
The Contractor shall remove all demolition debris from the Project Address. Recyclable materials (metals, concrete, wood) shall be separated and recycled where feasible. Disposal costs for non-recyclable materials are included in the Contract Price unless otherwise stated. The Contractor shall provide the Owner with disposal receipts and recycling documentation.
CLAUSE 9 — CHANGE ORDERS
Any modification to the scope, price, or schedule must be documented in a written Change Order signed by both Parties before the changed work begins.
CLAUSE 10 — INSURANCE
The Contractor shall maintain the following insurance coverages:
- Commercial General Liability: $2,000,000 per occurrence / $4,000,000 aggregate
- Workers' Compensation: As required by law
- Automobile Liability: $1,000,000 combined single limit
- Pollution/Environmental Liability: $1,000,000 per occurrence
Certificates of insurance naming the Owner as an additional insured shall be provided before Work commences.
CLAUSE 11 — INDEMNIFICATION
The Contractor shall indemnify and hold harmless the Owner from all claims, damages, losses, and expenses arising from the Contractor's performance of the Work, including but not limited to personal injury, property damage, and environmental contamination, except to the extent caused by the Owner's negligence or willful misconduct.
CLAUSE 12 — DISPUTE RESOLUTION
Disputes shall first be submitted to mediation. If unresolved within thirty (30) days, either Party may pursue binding arbitration or litigation in the state where the Project Address is located. The prevailing Party shall recover reasonable attorney's fees.
CLAUSE 13 — TERMINATION
Either Party may terminate for cause upon ten (10) days' written notice if the other Party materially breaches and fails to cure within the notice period. Upon termination, the Contractor shall secure the site, remove equipment, and leave the Project Address in a safe condition. The Owner shall pay for all Work satisfactorily completed prior to termination.
CLAUSE 14 — GOVERNING LAW
This Agreement shall be governed by the laws of the State of _____________.
CLAUSE 15 — ENTIRE AGREEMENT
This Agreement, including all exhibits and executed Change Orders, constitutes the entire agreement between the Parties. Amendments must be in writing and signed by both Parties.
SIGNATURES
Owner: ___________________________ Date: _______________
Printed Name: ___________________________
Contractor: ___________________________ Date: _______________
Printed Name and Title: ___________________________
Exhibit A — Demolition Plans, Specifications, and Site Restoration Requirements
- Residential demolition
- $4 – $15 per sq ft
- Whole house
- $6,000 – $25,000
- Asbestos survey
- Required pre-permit on most older structures
- Payment
- 10% – 30% deposit + completion
What your demolition contract should cover
Scope: what comes down and what stays
The structures by address and description, plus explicit treatment of foundations, slabs, driveways, trees, fences, and outbuildings. 'Demolish the house' without mentioning the slab is the classic demolition dispute.
Permits and notifications
Who pulls the demolition permit (normally the contractor) and handles required notifications — many jurisdictions require utility sign-offs, neighbor notice, and a NESHAP asbestos notification to the air authority 10 working days before demolition.
Asbestos and hazardous materials gate
An asbestos survey by a licensed inspector before work starts — required before permit issuance in most jurisdictions for older structures. Abatement, if needed, is a separately licensed, separately priced scope that precedes demolition.
Utility disconnects
Gas, electric, water, sewer cap, and communications — disconnected and verified before the first machine moves, with responsibility assigned (owner requests, contractor verifies is the common split). A live line found mid-demo stops the job.
Debris disposal and dump tickets
Where debris legally goes, who pays tipping fees, and dump tickets provided with the final invoice. Illegal dumping traces back to the property owner — the tickets are the owner's protection, not paperwork.
Site condition at completion
Rough grade with debris removed? Backfilled with compacted import fill? Foundation removed to full depth or to 2 feet below grade? Each is a different price — the contract states which one was bought.
Found conditions and change orders
Underground tanks, buried foundations, unmapped septic systems, and contaminated soil are priced when found, by written change order, before removal. Unit prices for likely surprises (per-tank, per-yard of contaminated soil) speed this up.
Insurance and adjacent-property protection
General liability at $1M+ (more near adjacent structures), workers' comp, and dust/vibration controls. Demolition next to an occupied neighbor needs pre-work photo documentation of the neighbor's walls.
Payment schedule
10–30% deposit, balance on completion with dump tickets delivered — or milestone billing on larger jobs (mobilization / structure down / site cleared). Final payment releases against the completed site condition, not against 'mostly done.'
Typical demolition pricing (U.S., 2026)
| Scope | Typical range | Notes |
|---|---|---|
| House demolition (full) | $4 – $15/sq ft | $6,000 – $25,000 typical total |
| Garage / outbuilding | $2,000 – $8,000 | Access-dependent |
| Interior strip-out | $2 – $8/sq ft | Selective, structure remains |
| Concrete slab / driveway | $2 – $6/sq ft | Thickness and rebar drive cost |
| In-ground pool removal | $4,000 – $16,000 | Partial vs. full removal |
| Asbestos survey | $400 – $1,200 | Licensed inspector, pre-permit |
| Asbestos abatement | Priced per survey findings | Separately licensed scope |
Pricing varies with access, proximity to other structures, disposal distance, and hazmat findings. Tight urban lots requiring hand demolition or craning price well above machine-access ranges.
How demolition contracts work in practice
Full residential teardown for rebuild
The standard sequence the contract should mirror: asbestos survey → abatement if needed → permit with utility sign-offs → disconnects verified → demolition → foundation removal to the stated depth → debris out with tickets → rough grade or compacted backfill per the rebuild plan. Builders care intensely about the last step — a lot backfilled with uncompacted debris fails the new foundation's soils report. The contract states compaction requirements when a rebuild follows.
Interior strip-out for renovation
Selective demolition — gutting to studs while protecting the structure — is scoped by what stays: load-bearing elements, specific finishes, systems to be preserved. The contract lists protected items explicitly and assigns liability for damage to them. Dust containment and working-hours limits matter here because the building (or its neighbors) stays occupied; both belong in the agreement, not in a verbal assurance to the property manager.
The positive asbestos survey
On pre-1980 structures, plan for the survey to find something — pipe insulation, floor tile mastic, roofing. The contract's hazmat gate keeps this orderly: demolition pricing assumed clean findings, abatement is a separate licensed scope priced from the survey, and the schedule shifts by the abatement duration plus the regulatory notification period (commonly 10 working days). Owners who skip the survey to save $800 discover that improper disturbance of asbestos is a federal NESHAP violation with owner liability.
Mistakes that weaken a demolition contract
Leaving the foundation ambiguous
'Demolish and remove the structure' can legitimately mean the slab stays. Full-depth foundation removal, removal to 2 feet below grade, and slab-in-place are different scopes with thousands of dollars between them — name one.
Skipping the asbestos survey
Most permitting authorities require it on older structures, and federal NESHAP rules apply to demolition regardless of jurisdiction. Disturbing asbestos without a survey creates owner liability that dwarfs the survey cost.
No dump tickets
Debris dumped illegally traces to the property owner. Requiring disposal tickets with the final invoice is the owner's only proof the 40 tons went to a licensed facility.
Paying out before the site condition is met
The last 10% of a demolition job — the grading, the final debris, the sewer cap inspection — is the part that drags. Holding the final payment against the stated completion condition is what gets it done.
No unit prices for underground surprises
Old lots hide tanks, cisterns, and second foundations. Pre-agreed unit prices (per tank, per cubic yard) convert a mid-job standoff into a signed change order the same day.
How to use this template
- 01
Download the demolition contract template in Word or PDF.
- 02
Define the scope: structures, foundations, flatwork, and site features — removed or retained, item by item.
- 03
Assign the permit, notifications, asbestos survey, and utility disconnects.
- 04
Set debris disposal terms with dump tickets required at final invoice.
- 05
State the completion site condition (rough grade, backfill spec, compaction if rebuilding).
- 06
Set the deposit and payment schedule, add unit prices for likely underground finds, and have both parties sign.
Skip this template if…
- Commercial and multi-story demolition — engineered demolition plans, structural sequencing, and different insurance scales apply.
- Asbestos abatement itself — that's a separately licensed scope contracted directly with a licensed abatement firm.
FAQs
How much does it cost to demolish a house?
Typically $4–$15 per square foot, or $6,000–$25,000 for a full residential teardown — driven by size, access, disposal distance, and hazmat findings. Asbestos abatement, foundation removal depth, and backfill requirements are the big variables on top of the base wrecking cost.
Do I need a permit to demolish a building?
Yes, virtually everywhere. Demolition permits typically require utility disconnect verifications and — for most older structures — an asbestos survey before issuance, and many jurisdictions require advance notification to the air authority. The contract should assign permit responsibility to the contractor.
Is an asbestos survey required before demolition?
In most jurisdictions, yes — particularly for structures built before 1980, and federal NESHAP rules govern asbestos handling in demolition generally. The survey ($400–$1,200) happens before the permit; any abatement is a separately licensed scope completed before wrecking starts.
Who is responsible for disconnecting utilities before demolition?
The common split: the owner requests disconnects from each utility, and the contractor verifies every service is dead before machines move. Gas and electric must be physically disconnected at the service, not just shut off — the contract should require verification, because a live line found mid-demolition stops the job.
What happens to the debris after demolition?
It goes to licensed disposal or recycling facilities, with tipping fees either included in the price or passed through at cost. Require dump tickets with the final invoice — illegally dumped debris legally traces back to the property owner, and the tickets are your proof of lawful disposal.
What does the site look like when demolition is finished?
Whatever the contract says — which is why it must specify: rough grade with debris removed, or backfilled with compacted import fill, foundation out fully or to a stated depth. If a rebuild follows, the compaction spec matters; uncompacted fill fails the next foundation's soil requirements.
Pair it with the construction invoice template
The contract sets the terms — the invoice collects on them. Free download with the right line items pre-filled.
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