Construction Contract Template (Page 6 of 7) in pdf

Article 10. Insurance.

10.1. Contractor’s Insurance. Contractor shall purchase and maintain such

comprehensive general liability and other insurance as is appropriate for the Work being

performed and furnished with limits and features as follows: ___________________________

___________________. Before any Work is started, Contractor shall deliver to Owner

certificates (and other evidence of insurance requested by Contractor) which Contractor is

required to purchase and maintain.

10.2

Owner’s Insurance. Owner shall be responsible for purchasing and maintaining

Owner’s liability insurance and other reasonably appropriate insurance.

Article 11. Termination.

11.1. Termination by Owner. If the Contractor breaches any of its obligations under

this Agreement, then Owner may give Contractor written notification identifying such breach. If

Contractor has not cured such breach within seven (7) calendar days from its receipt of Owner’s

written notification or if such breach cannot be cured within such seven (7) day period, then if

Contractor either does not begin cure within such seven (7) day period or fails to diligently

prosecute cure to completion, Owner may terminate this Contract and take possession of the

Work. Alternatively, instead of terminating the Contract, Owner may cure the breach and deduct

the cost thereof from amounts otherwise owed to the Contractor.

11.2. Termination by Contractor. If the Owner breaches any of its obligations under

this Agreement, then Contractor may give Owner written notification identifying such breach. If

Owner has not cured such breach within seven (7) calendar days from its receipt of Contractor’s

written notification, or if such breach cannot be cured within such seven (7) day period, then if

Owner either does not begin cure within such seven (7) day period or fails to diligently prosecute

cure to completion, Contractor may terminate this Contract.

Article 12. Miscellaneous.

12.1. Assignment of any rights or interests under this Contract shall not be binding on

any party to this Contract without the written consent of such party. Payments due under this

Contract may not be assigned. Notwithstanding the foregoing, the Owner hereby assigns all of its

rights, title and interest in and to this Contract to the Owner’s lender,

___________________________,

having an address at ________________________________________, as additional security for

the loan. The Contractor hereby consents to such assignment. Notwithstanding anything to the

contrary in this Contract, upon a breach by the Owner of this Contract, the Contractor shall give

the lender notice of such a breach, at the address set forth above, and provided that the Owner or

the lender cures such default within a reasonable period and continues to pay the Contractor all

amounts due under this Contract, the Contractor shall continue to perform its services under this

Contract.

MULTISTATE CONSTRUCTION CONTRACT – Single Family – Fannie Mae HOMESTYLE MODEL DOCUMENT

Form 3734

11/01

(page 6 of 7 pages)

Construction Contract Template Page 6