Residential Construction Agreement (Page 3 of 6) in pdf

control shall be added to the specified time of completion and Builder shall not be liable for such delay. For

any delays not the responsibility of Builder, the contract price shall increase by the difference, if any, in

Builder's costs occasioned by such delay.

Selections.

Builder will provide Owners with information to help them select allowance items, materials, and colors required

during the construction process. All selections must be made within_________days of request by Builder.

Permits, Fees, and Tests.

Builder shall secure and pay for only any building permits which are required. Owners shall be responsible for

all other fees and permits including any impact fees and connection fees. If necessary, Owners agree to assist

Builder in obtaining any such permits and licenses by completing all necessary applications and forms. If a

covenant or an architectural review committee requires the approval of plans and specifications, Owners shall

be responsible for obtaining these approvals and paying for any fees connected with them. If no soil report is

currently available, Owners shall provide one at their expense.

10.

Taxes.

Owners shall pay all real property taxes and taxes imposed upon the improvements on the residence when

they are due. Builder shall pay all necessary sales, use, and similar taxes on materials used in construction

that are legally enacted at the time this contract is signed.

11.

Change Orders.

Owners may, from time to time, order changes in the work which will be authorized by a written Change

Order. Owners shall pay the reasonable cost of any such changes including overhead of

% and profit

In the event the Builder is required by the Owners to perform additional work for which the amount of

compensation is not previously agreed upon, the Builder shall prepare and submit to the Owners a

proposal describing the estimated quantities and cost involved. The Builder shall keep accurate, detailed

and itemized records of the costs of any such change and shall report such costs to the Owners. The

Builder shall furnish to the Owners all documents required by the Owners, to evidence the expenditures of

the Builder as a result of such change.

Builder is not responsible for unknown conditions that cannot be observed in a non-destructive inspection

of the premises or conditions that differ materially from those (a) indicated or referred to in the contract

documents or (b) ordinarily encountered and generally recognized as inherent in the work of the character

provided for in this contract.

12.

Insurance.

Builder shall purchase and maintain at Builder's own expense, all necessary workers' compensation and

employer's liability insurance, commercial general liability insurance, and comprehensive automobile liability

insurance to protect Builder from claims for damages because of bodily injury, including death, and for

damages to property that may arise both out of and during operations under this contract.

Owners shall purchase and maintain their own liability insurance, including fire and casualty insurance upon

the residence, to the full insurable value and shall name Builder as an additional insured. Each party shall

issue a certificate of insurance to the other prior to construction.

13.

Owners' Obligations.

Owners shall (a) furnish all surveys describing the physical characteristics, and utility locations for the

residence and (b) secure and pay for easements necessary for the completion of the work. Owners shall

furnish information and services under their control to Builder promptly to avoid delay.

Owners warrant that the property upon which the residence is to be built conforms to all zoning, planning,

environmental, and other building requirements. Owners warrant that all utilities necessary for the completion

of construction are to the property line.

14.

Supervision. Owners agree that the supervision of the work performed under this Agreement is under the

exclusive direction of the Builder, and Builder shall have control over construction means, methods,

techniques, sequences and procedures and for coordinating all portions of the work. Owners shall not interfere

238741.DOC

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KCL 2004

Residential Construction Agreement Page 3

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