A construction agreement is a contract between the builder and the buyer. It describes the rights, duties and obligations of both parties in their dealings with each other. It is important for both the construction contractor and buyer to sign this agreement before they perform any work. The construction agreement can be used for both residential and commercial projects. The contents of the agreement may vary based on the nature of the project.

Some of the information included in a construction agreement are:

Names and addresses of both the parties

Location and address where the construction work is to be done

Description of the construction/renovation work to be done with timeline

Materials that will be used during the construction

Duration of the project

Details and method of payment

Methods to handle any change in work order

Penalty in case the builder defaults in any of the clauses mentioned in the construction agreement