CONSTRUCTION CONTRACT
Primary Residence Renovation - 175,000.00 USD - Fixed Price
PROPERTY OWNER
Westbrook Family Trust
1450 Hillside Terrace, Scottsdale, AZ 85251
By: (480) 555-0312, westbrook.trust@email.com
CONTRACTOR
Horizon Builders Inc.
Contact: Thomas Grant
8200 E Camelback Road, Suite 120, Scottsdale, AZ 85251
(480) 555-0198
info@horizonbuilders.com
License: ROC-287456
Insurance: GL-2026-445591
By: Thomas Grant, License: ROC-287456
Project: Primary Residence Renovation / Fixed Price
Amount: 175,000.00 USD | Start: March 26, 2026
This Construction Contract ("Contract") is entered into as of March 26, 2026 by and between:
Westbrook Family Trust, with an address at 1450 Hillside Terrace, Scottsdale, AZ 85251 ("Owner"), and
Horizon Builders Inc., with an address at 8200 E Camelback Road, Suite 120, Scottsdale, AZ 85251, License No. ROC-287456 ("Contractor").
Owner and Contractor may be referred to individually as a "Party" and collectively as the "Parties."
Contractor agrees to furnish all labor, materials, equipment, and services necessary to complete the following construction project:
Project: Primary Residence Renovation
Location: 1450 Hillside Terrace, Scottsdale, AZ 85251
Type: New Construction
Description of Work: Complete interior renovation including kitchen and master bath remodel, flooring replacement, electrical upgrade to 200-amp panel, plumbing fixture replacement, interior painting, and custom cabinetry installation.
Plans and Specifications: The work shall be performed in accordance with Architectural plans by Desert Design Studio, dated February 15, 2026, Revision B, which are incorporated herein by reference.
Contractor shall perform all work in a good and workmanlike manner, in compliance with all applicable building codes, regulations, and industry standards. Consistent with the Spearin doctrine (United States v. Spearin, 248 U.S. 132 (1918)), Owner warrants the adequacy of the plans and specifications furnished by Owner, and Contractor shall not be responsible for defects arising from Owner-furnished plans if the work is performed in accordance with them. All materials shall be new and of good quality unless otherwise specified.
Owner agrees to pay Contractor for the performance of the work described herein as follows:
Fixed Price: The total contract price for all work described in this Contract is 175,000.00 USD. This price includes all labor, materials, equipment, overhead, and profit.
Payment Schedule: Monthly progress payments.
Deposit: Owner shall pay a deposit of 17,500.00 USD upon execution of this Contract. The deposit shall be applied toward the contract price.
Retainage: Owner shall withhold 10% of each progress payment as retainage. Retainage shall be released within thirty (30) days after substantial completion, final inspection, and receipt of all required lien waivers.
Final Payment: Final payment due within 30 days of substantial completion, final inspection approval, and receipt of all unconditional lien waivers.
Late payments shall accrue interest at a rate of 1.5% per month or the maximum rate permitted by applicable law, whichever is less. Payments made under this Contract shall comply with any applicable state prompt-payment statute (e.g., Cal. Bus. and Prof. Code §7108.5; Fla. Stat. §§218.70-.79; Tex. Gov't Code §§2251.021 et seq.; NY Gen. Bus. Law §756). For federally funded projects, payments to subcontractors and suppliers shall comply with the Miller Act, 40 U.S.C. §§3131-3134, and applicable state Little Miller Act analogs.
Owner shall retain 10% of each progress payment as retainage to ensure satisfactory completion of the work. The total retainage amount shall be released to Contractor under the following conditions:
a) The work has reached substantial completion as defined in this Contract
b) All required inspections have been passed and certificates of occupancy or completion obtained (if applicable)
c) Contractor has provided unconditional lien waivers from all subcontractors and suppliers
d) All punch list items have been completed to Owner's reasonable satisfaction
e) Contractor has provided all warranties, manuals, and as-built drawings
Contractor shall commence the work on or before March 26, 2026 and shall achieve substantial completion on or before July 16, 2026.
Substantial Completion: The stage when all major construction work is complete, the residence is safe for occupancy, and only minor punch list items remain.
Time is of the essence in this Contract. Contractor shall prosecute the work diligently and shall notify Owner promptly of any circumstances that may delay the scheduled completion.
Neither Party shall be liable for delays or failures in performance resulting from causes beyond its reasonable control, including but not limited to:
a) Acts of God (earthquakes, floods, hurricanes, tornadoes)
b) Fire or explosion
c) War, terrorism, or civil unrest
d) Government actions, embargoes, or sanctions
e) Epidemics or pandemics
f) Strikes or labor disputes (not involving Contractor's own employees)
The affected Party shall provide written notice within five (5) business days of the force majeure event and shall use commercially reasonable efforts to mitigate the delay. The completion date shall be extended by the duration of the force majeure event.
Contractor is allowed up to 10 weather days during the project duration. A weather day is defined as any day on which weather conditions prevent work from being performed safely or would compromise the quality of the work. Contractor shall document all claimed weather days in the daily construction log. Weather days beyond the allowance shall extend the completion date on a day-for-day basis, provided Contractor has given timely written notice to Owner.
Change Order Process: Written change orders only.
No changes to the scope, schedule, or price of the work shall be made except by written change order signed by both Parties, consistent with customary AIA Document A201 General Conditions Article 7 change-order practice. All change orders shall describe the proposed change in detail, including the effect on the contract price and completion date.
Contractor shall not proceed with any changed work until the change order has been approved by Owner.
Markup: Change order work shall be priced at cost plus a 15% markup for overhead and profit.
Warranty Period: Two (2) years from the date of substantial completion.
Warranty Scope: Contractor warrants that Materials and workmanship shall be free from defects for the warranty period specified above.
If any defect is discovered during the warranty period, Contractor shall, at Contractor's sole expense, repair or replace the defective work within a reasonable time after receiving written notice from Owner. Owner must notify Contractor of any defect within 60 days of discovering the defect.
Manufacturer Warranties: In addition to the Contractor's warranty, the following manufacturer warranties apply:
Roofing materials - 25 year manufacturer warranty
HVAC system - 10 year parts and compressor warranty
Windows - 20 year limited manufacturer warranty
Appliances - Standard manufacturer warranty
This warranty does not cover damage caused by Owner's misuse, neglect, failure to maintain, unauthorized modifications, or normal wear and tear.
10.
INSURANCE REQUIREMENTS
General Liability Insurance: Contractor shall maintain commercial general liability insurance with minimum coverage of 1,000,000.00 USD per occurrence and 2,000,000.00 USD aggregate. Contractor shall name Owner as an additional insured on the general liability policy.
Workers' Compensation: Contractor shall maintain workers' compensation insurance as required by the laws of the State of Arizona covering all of Contractor's employees engaged in the work. Contractor shall provide Owner with a certificate of insurance prior to commencing work. Any indemnification obligation of Contractor under this Contract shall be construed and enforced consistent with applicable state anti-indemnity statutes (e.g., Cal. Civ. Code §2782; N.Y. Gen. Oblig. Law §5-322.1; Tex. Ins. Code §§151.101-.151).
Builder's Risk Insurance: Contractor shall obtain and maintain builder's risk insurance covering the full value of the work during the construction period, protecting against loss or damage from fire, theft, vandalism, and other covered perils.
All insurance policies required under this Contract shall be maintained from the date work commences until final completion and acceptance. Contractor shall provide certificates of insurance to Owner upon request and shall provide thirty (30) days' advance written notice of any cancellation or material change in coverage.
11.
PERMITS AND COMPLIANCE
Permits and Approvals: Contractor shall be responsible for obtaining all necessary building permits, licenses, and approvals required for the performance of the work. Contractor represents and warrants that it holds a valid contractor's license in the jurisdiction where the work is performed as required by applicable state contractor-licensing law (e.g., Cal. Bus. and Prof. Code §§7000-7145.5 (CSLB); Fla. Stat. ch. 489; Tex. Occ. Code chs. 1301-1302; N.Y. Gen. Bus. Law §770) and shall maintain such license in good standing throughout the term of this Contract.
Building Codes: Contractor shall be responsible for ensuring all work complies with applicable building codes, zoning regulations, and local ordinances. Contractor shall schedule and coordinate all required inspections with the appropriate building authorities.
Contractor shall comply with all applicable Occupational Safety and Health Administration (OSHA) standards and regulations, including the Construction Industry Safety and Health Standards set forth at 29 C.F.R. Part 1926, and the Occupational Safety and Health Act of 1970, 29 U.S.C. §§651 et seq. Contractor shall maintain a safe work environment at all times and shall implement and enforce all required safety measures, including but not limited to:
a) Fall protection for work at heights above six (6) feet
b) Proper scaffolding and ladder safety
c) Personal protective equipment (PPE) for all workers
d) Hazard communication and safety data sheets for all chemicals
e) Electrical safety and lockout/tagout procedures
f) Trenching and excavation safety
Contractor shall designate a competent person responsible for site safety and shall maintain all required safety records and documentation.
13.
ENVIRONMENTAL COMPLIANCE
Contractor shall comply with all applicable federal, state, and local environmental laws and regulations, including but not limited to:
a) Proper handling, storage, and disposal of construction waste and debris
b) Stormwater management and erosion control measures
c) Lead paint and asbestos abatement protocols (for renovation of structures built before 1978)
d) Dust and noise control measures
e) Protection of trees, wetlands, and other environmental features as required
If hazardous materials are discovered during construction, Contractor shall immediately stop work in the affected area, secure the area, and notify Owner. The cost of hazardous material remediation shall be the responsibility of Owner unless caused by Contractor's actions.
Dispute Resolution: Any dispute, controversy, or claim arising out of or relating to this Contract shall be resolved by Mediation, followed by arbitration if unresolved. The Parties agree to first attempt to resolve any dispute through good-faith mediation with a mediator experienced in construction disputes. If mediation is unsuccessful within thirty (30) days, the dispute shall be resolved through binding arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association.
Pending resolution of any dispute, Contractor shall continue to perform the work diligently unless otherwise directed by Owner or unless the dispute relates to safety concerns.
Contractor shall provide Owner with conditional lien waivers from Contractor, all subcontractors, and all material suppliers with each progress payment request, and unconditional lien waivers upon receipt of each progress payment, in the form and manner required by applicable state mechanic's-lien law (e.g., Cal. Civ. Code §§8400-8494; Fla. Stat. §§713.001-.37; Tex. Prop. Code ch. 53; N.Y. Lien Law §§1 et seq.).
Final payment shall not be due until Contractor has provided unconditional final lien waivers from Contractor, all subcontractors, and all material suppliers for the full amount of the contract price, including all change orders. Owner may withhold sufficient funds to cover any unresolved lien claims or potential lien claims.
Termination for Cause: Either Party may terminate this Contract if the other Party materially breaches any provision and fails to cure such breach within ten (10) days of receiving written notice thereof. Without limitation, the following constitute grounds for termination for cause: (a) Contractor abandons the work for more than fourteen (14) consecutive days; (b) Contractor fails to maintain required insurance; (c) Contractor fails to pay subcontractors or suppliers; (d) Contractor repeatedly fails to comply with applicable codes or safety requirements; (e) either Party becomes insolvent or files for bankruptcy.
Termination for Convenience: Owner may terminate this Contract for any reason upon thirty (30) days' written notice to Contractor. In the event of termination for convenience, Contractor shall be compensated for all work satisfactorily performed and materials purchased for the project through the date of termination, plus a reasonable amount for demobilization costs.
Suspension: Owner may suspend the work at any time upon seven (7) days' written notice to Contractor. During any suspension, Contractor shall secure the work site and protect all completed work. If the suspension exceeds thirty (30) days, Contractor may request an equitable adjustment to the contract price and completion date.
This Contract shall be governed by and construed in accordance with the laws of the State of Arizona, without regard to its conflict of laws principles. Any legal action or proceeding arising under this Contract shall be brought exclusively in the courts located in the State of Arizona, and the Parties hereby consent to personal jurisdiction and venue therein.
This Contract, together with all exhibits, schedules, and change orders, constitutes the entire agreement between the Parties with respect to the construction project described herein and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written. No amendment or modification of this Contract shall be valid unless made in writing and signed by both Parties. If any provision of this Contract is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated.
Date: ____________________
Date: ____________________