Owner and Constructor Agreement (Cost of Work Short Form) - 235

This standard prime construction contract between the Owner of the construction project and the Constructor (aka builder, general contractor, design-bid-builder, construction manager) provides a best practice industry standard contract that conveniently integrates general terms and conditions and the construction agreement terms into in one document. Appropriate where the payment is based upon the cost of the work, plus a fee, but this contract does not include a guaranteed maximum price (GMP).  This is also sometimes referred to as a Time & Materials (T&M) contract.  This agreement is written for design-bid-build projects. Design-bid-build projects are where an Owner of the construction project has a relationship with a Design Professional (architect or engineer) to provide design services (Basic and possibly Additional Services) separate from the relationship with the Constructor. While this is a short form agreement appropriate for smaller projects, this agreement may be used for larger projects as well.

The general conditions include the responsibilities allocated to each party and address critical construction law contract isses. The contract issues include: the parties relationship and responsibilities to each other, definitions of key terms, scope of work and execution obligations, design delegation, worksite conditions, differing site conditions, contract price, contract documents, contracts review, submittals, subcontracts, permits and taxes, time, changes, schedule changes, payment, payment schedule, final completion and final payment, indemnification (defend and hold harmless against all losses), insurance and bond, termination for convenience, termination for cause, claims and notice, waiver of consequential damages, dispute resolution and mitigation, construction defects, choice of law, venue, and much more. The included construction law contract issues are fair for Owners or developers of the project as well as Constructors. Parties can modify the terms of the agreement for their individual project needs and state law requirements.

This document presumes that the Owner will be hiring a Design Professional (architect or engineer) to provide design services (Basic and possibly Additional Services). The ConsensusDocs 240 (long) or 245 (short) agreement covers that Designer-Owner relationship. The Owner is included in project communications and maintains decision making unless the Owner delegates responsibilities to the Design Professional.