New Home Construction Agreement - Cost Plus

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This New Home Construction Agreement is between a property owner and a contractor who will construct a new home based on an hourly rate of pay, plus a commission on the total price. This agreement sets out all terms of the arrangement including the home's specifications, expected construction time frame and how construction delays will be handled.

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This New Home Construction Agreement (Cost Plus) is between a property owner and a contractor for the construction of a new home. This agreement sets out that the contractor will be paid an hourly rate for all labor, materials and permit, plus a commission on the total price. It also specifies the expected construction timeframe, the home’s layout and specifications and how construction delays will be handled. It is crucial that this contract be set out in writing rather than via oral agreement. A written New Home Construction Agreement – Cost Plus will be helpful if there are disagreements or misunderstandings between the property owner and the contractor.

This New Home Construction Agreement – Cost Plus contains the following provisions:
  • Date of Agreement/Parties: The effective date of the agreement and names and addresses of the parties;
  • Definitions: Detailed definitions of the agreement terms including commencement date, substantial completion of home, term and working day;
  • Construction of Home: Sets out the time frame (number of months) expected to complete the construction of the new home;
  • Changes: Sets out that any changes to layout or specifications must be mutually agreed to in writing by both parties;
  • Contract Price: The contract price shall be paid based on an hourly rate plus commission and is set out in detail on Schedule C to this agreement;
  • Delays: The term of the agreement shall be extended if delays are caused by owner, public authority or if delays are unavoidable (i.e., a fire or union lockout);
  • Legal Compliance/Insurance: The contractor agrees to comply with all applicable rules and regulations and to maintain liability insurance at its own expense;
  • Warranty: The contractor shall set out in any specific home warranty in detail;
  • Schedules: The layout of home, details of finishes and the comprehensive payment schedule are set forth in Schedules A, B and C to this agreement.

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This attorney-prepared packet contains:
  1. General Instructions
  2. New Home Construction Agreement (Cost Plus)
State Law Compliance: This form complies with the laws of your state
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.
Number of Pages11
DimensionsDesigned for Letter Size (8.5" x 11")
EditableYes (.doc, .wpd and .rtf)
UsageUnlimited number of prints
Product number#28994
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.

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