Residential Construction Contract Template

We have created Residential Construction Contract template with simplicity in mind. It is an easy to use and ready made Residential Construction Contract template that enables you to know exactly what the client’s responsibilities are and saves your time and money.

Contract Template​

Free Residential Construction Contract Template Samples


To help you grow your business we have made a quite simple yet reliable Residential Construction Contract template in Word and PDF versions so you can use it repeatedly.

What’s in this template?
  •  Project details
  •  Warranty 
  •  Terms and conditions
Click here to get your free Residential Construction Contract template

What is a Residential Construction Contract?

The residential construction contract is an agreement signed between the constructor and the owner. The deal is proof that a contractor agreed to build, refurbish, or improve the specific area. All the details of the project like description, payment, working hours, etc., are entered into the contract for safety reasons. It protects and facilitates both the parties – the contractor and the owner.

types of residential construction contracts?

There are several types of residential construction contracts, but the top 3 types are discussed here:

1. Lum Sum Contracts

The amount is fixed in such contracts. The amount for the whole project is decided in the initial stages. This is a very common type of contract.


  1. It is easy for the owners to get their deal done at once.

  2. It is also reliable for the contractor because he knows the exact amount that he will receive.

  3. The contractors can make a big profit in such contracts.


  1. It is hard to estimate the price and fix it for the project—the changes during the project mess up the things between the owner and the contractor.

  2. The contractor cannot make any mistakes as he has taken the fixed amount from the owner.

2. Time & Material Contracts

These types of contracts are on an hourly or daily basis, where the cost of all the material is separate from the labor.


  1. The owner has to buy or buy the material separately to choose the one that suits him the best.

  2. It is easy for the contractors to charge on an hourly or daily basis. It keeps their motivation level high.


  1. You have to keep a proper record of all the material brought for construction.

  2. Even if you finish the project early, you will not get any incentive for that. Therefore, the contractors sometimes delay the project to make their profit.

3. Unit Price Contracts

This type of contract is divided into different units. The contract estimates the price for each task separately instead of the whole project at once.


  1. The owner is clear about all the costs of the project.

  2. If anything is included, later on, it will be considered a separate unit and charged accordingly.


  1. It gets hard for the owner to predict the cost of the overall project.

Do I need a construction contract?

Yes, it is mandatory to have a written account of all the details regarding the construction. All the rules, regulations, and obligations are set forth before starting the project. The contract provides concrete proof of all the discussed details.

Download Residential Construction Contract Template

Important Terms

How do I write a residential construction contract?

Regardless of the type of residential construction contract, few points will remain the same like:

a. Personal information:

The information of both – contractor and client should be clearly mentioned in the contract. The information includes the name, address, contact information, etc. For the client, the present address should be mentioned and for contractor, the company’s address should be mentioned appropriately.

b. Project Details:

A clear title and description of the project should be given. The exact construction place should be mentioned along with the specific area that needs to be constructed or improved. All the minor details of each work should be clearly written.

c. Project Timeline

A client needs to know the timeline of getting his work done. Therefore, it is important to design a proper timeline with all the needed information for the project.

d. The estimated price

This part of the contract should be clearly designed and filled. The actual cost for the whole project or the project units should be mentioned along with the payment methods. The timeline for paying payment shall also be part of the contract.

e. Terms & Conditions

All the terms and conditions should be mentioned, including stop and pause clauses. With properly cited clauses, the owner or the client can easily claim if there appears to be an issue during the project’s continuation.

f. Warranty

For trusting any contractor, a client needs a warranty for it. A contractor should provide a warranty of few specific years that if something happens, then the client can claim it easily.

g. Date & Signature

It is mandatory to write the date when the contract is signed between the contractor and the client. Moreover, the contract should be appropriately signed by both parties to be on the safe side. 

Frequently Asked Questions

FAQs about our Residential Construction Contract Templates

 We recognize that your contract layout conditions may need to be changed to be in line together with your client’s needs. That’s why we have made Contract in Word format as well so  that you’ll be able make adjustments as you like. If you want to make important changes to the template, we propose you to get help of  a lawyer or conveyancer to make sure you still have protection.