Cost Plus In Construction In California
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Description
The Construction Contract outlines the agreement between a Contractor and an Owner for a construction project in California. A significant feature of this contract is the cost-plus pricing structure, where the Owner agrees to pay the actual costs of materials along with a specified fee for the Contractor's services. This format is beneficial for flexible budgeting and allows adjustments based on actual expenses incurred during the project. Key instructions include obtaining necessary permits, managing changes to the scope of work via written orders, and providing a boundary survey before construction begins. Additionally, the contract specifies late payment penalties and warranty conditions. This form is particularly useful for attorneys negotiating contracts, partners managing construction projects, owners overseeing residential builds, associates drafting agreements, paralegals requiring structured documentation, and legal assistants facilitating contract review and compliance. Overall, the Construction Contract provides a clear framework for managing the complexities of construction projects while emphasizing accountability and financial clarity.
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Initial Payment: $1,000 or 10% (whichever is less) Demo and Prep Work Completion: 20%
Final payments from the owner to the prime contractor become due within 45 days after the completion of the entire project. Upon receipt of payment from the owner, the prime contractor needs to make payment to their subs and suppliers within 10 days. The same deadline applies to all other payments down the chain.
