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Construction Contract for a Residential Property

Introduction
Parties
Scope of Work
Materials
Timeframe
Payment
Variations
Insurance
Termination
Dispute Resolution
Force Majeure
Governing Law
Notices
Entire Agreement
Severability
Waiver
Assignment
Confidentiality
Signatures

Introduction

This Construction Contract ("Contract") is made and entered into on this [Date] by and between:

[Name of Owner], residing at [Address of Owner] ("Owner")
[Name of Contractor], residing at [Address of Contractor] ("Contractor")

This Contract sets forth the terms and conditions governing the construction of a residential property located at [Address of Property] ("Property").

Parties

Owner: The Owner is the party commissioning the construction of the Property.
Contractor: The Contractor is the party responsible for constructing the Property in accordance with the terms of this Contract.

Scope of Work

The Contractor agrees to construct the Property in accordance with the following:
- Architectural Drawings: The architectural drawings and specifications provided by the Owner, dated [Date].
- Building Plans: The approved building plans submitted to and approved by the relevant authorities.
- Specifications: The detailed specifications for the construction of the Property, attached hereto as Exhibit A.
The Scope of Work includes, but is not limited to, the following:
- [List of specific construction activities, e.g., foundation work, framing, roofing, plumbing, electrical, painting, landscaping]
The Contractor shall be responsible for obtaining all necessary permits and licenses required for the construction of the Property.

Materials

The Contractor shall use materials of the quality and specifications as specified in the Contract Documents.
The Owner shall have the right to approve all materials used in the construction of the Property.
The Contractor shall provide the Owner with a list of all materials to be used in the construction of the Property, along with their respective specifications and sources.

Timeframe

The Contractor shall commence construction of the Property on [Start Date] and complete the construction within [Number] days from the commencement date.
The Contractor shall provide the Owner with a detailed construction schedule, outlining the milestones and deadlines for each stage of the construction process.
The Owner shall have the right to extend the completion date for a reasonable period of time if the Contractor is delayed due to circumstances beyond its reasonable control, such as acts of God, government regulations, or labor strikes.

Payment

The Owner shall pay the Contractor the total sum of [Amount] for the construction of the Property.
The payment shall be made in accordance with the following schedule:
- [Percentage] upon signing of this Contract.
- [Percentage] upon completion of [Milestone].
- [Percentage] upon completion of [Milestone].
- [Percentage] upon completion of the Property.
The Contractor shall submit invoices to the Owner for each payment milestone.
The Owner shall pay the invoices within [Number] days of receipt.

Variations

Any changes to the Scope of Work shall be made in writing and signed by both parties.
The Contractor shall provide the Owner with a detailed cost estimate for any proposed variations.
The Owner shall have the right to approve or reject any proposed variations.
Any agreed-upon variations shall be incorporated into this Contract as an amendment.

Insurance

The Contractor shall maintain comprehensive insurance coverage for the duration of the construction project, including:
- Workers' Compensation Insurance: To cover any injuries sustained by the Contractor's employees during the construction process.
- Liability Insurance: To cover any third-party claims arising from the Contractor's negligence or breach of contract.
- Property Insurance: To cover any damage to the Property during the construction process.
The Contractor shall provide the Owner with certificates of insurance evidencing the coverage described above.

Termination

This Contract may be terminated by either party for any of the following reasons:
- Material Breach: If the other party materially breaches this Contract and fails to cure the breach within [Number] days of written notice.
- Insolvency: If the other party becomes insolvent or bankrupt.
- Force Majeure: If the performance of this Contract is prevented or delayed due to circumstances beyond the reasonable control of either party.
Upon termination of this Contract, the Contractor shall cease all work on the Property.
The Owner shall be entitled to recover any damages incurred as a result of the Contractor's breach of contract.

Dispute Resolution

Any dispute arising out of or relating to this Contract shall be settled amicably through negotiation between the parties.
If the parties are unable to reach an amicable settlement, the dispute shall be referred to arbitration in accordance with the Arbitration Act, Cap 4 of the Laws of Kenya.
The arbitration shall be conducted in [Location] and the language of the arbitration shall be [Language].

Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Contract due to events beyond its reasonable control, including but not limited to:
- Acts of God, such as earthquakes, floods, or storms.
- War, terrorism, or civil unrest.
- Government regulations or restrictions.
- Labor strikes or lockouts.
The party affected by a Force Majeure event shall promptly notify the other party in writing of the event and its anticipated duration.

Governing Law

This Contract shall be governed by and construed in accordance with the laws of Kenya.

Notices

All notices and other communications under this Contract shall be in writing and shall be deemed to have been duly given when delivered personally, sent by registered mail, or sent by email to the addresses set forth below:

Owner: [Address of Owner]
Contractor: [Address of Contractor]

Entire Agreement

This Contract constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications, representations, or agreements, whether oral or written.

Severability

If any provision of this Contract is held to be invalid or unenforceable, such provision shall be struck from this Contract and the remaining provisions shall remain in full force and effect.

Waiver

No waiver by either party of any breach of this Contract shall be deemed a waiver of any subsequent breach.

Assignment

This Contract may not be assigned by either party without the prior written consent of the other party.

Confidentiality

The parties agree to keep confidential all information disclosed to each other pursuant to this Contract, except to the extent such information is required to be disclosed by law.

Signatures

IN WITNESS WHEREOF, the parties have executed this Contract as of the date first written above.

Owner:

[Signature]

[Printed Name]

Contractor: