Sample Contract between Builder and Owner

When it comes to building a house, it`s important for the owner and builder to have a clear agreement in place. A contract between the builder and owner helps to outline the expectations, responsibilities, and terms of the project. In this article, we`ll provide a sample contract between builder and owner that covers important aspects of the construction project.


This contract is entered into on [insert date] between [insert name of builder], referred to as „Builder,” and [insert name of owner], referred to as „Owner.”

Scope of Work

The scope of work outlines the specific tasks that the builder will complete during the construction of the house. This section should include a detailed description of the work that will be done, such as:

– Clearing and grading the site

– Pouring the foundation

– Framing the house

– Installing plumbing, electrical, and HVAC systems

– Installing insulation and drywall

– Finishing the interior and exterior of the house

It`s important to specify the materials that will be used in construction, including the quality and brand names.


The payment section should outline how much the owner will pay the builder, the payment schedule, and how payments will be made. For example, the contract might state that the owner will pay the builder $100,000 for the work, with $25,000 due upon completion of each of the following milestones:

– Site preparation

– Framing

– Rough-in plumbing and electrical

– Completion of drywall

The contract should also specify the consequences if a payment is missed or not made on time.


The timeline sets out the expected start and completion dates for the project. It`s important to include specific dates, rather than vague estimates, to hold the builder accountable. This section should also specify how delays will be handled, including who is responsible for paying any additional costs.

Warranties and Guarantees

The warranties and guarantees section outlines the builder`s promises regarding the work that is being done. This might include a warranty that the work is being done in a workmanlike manner, a guarantee that the materials used are of good quality, and a promise to fix any defects that arise within a certain timeframe.

Termination Clause

The termination clause should specify the conditions under which either party can end the contract, including potential penalties for early termination. It`s important for both parties to have an understanding of when the contract can be ended and the consequences of doing so.


Both the builder and owner should sign the contract to acknowledge their agreement to the terms outlined within. This should be done in the presence of witnesses, who can also sign the contract as evidence of their presence.


A contract between builder and owner is an important document that should be carefully crafted to ensure that both parties are aware of their responsibilities and obligations. The sample contract provided here covers many of the important aspects of the construction project, but it`s important to consult with a lawyer to ensure that the contract is legally valid and enforceable in your state or province.