# Construction Contract Template, Free to Fill Source: https://nerix.ai/templates/construction-contract Agree building work with a fixed price, payment stages, a completion date, a defects period and fair rules for changes. Before you send it Building work is heavily regulated. Permits, approvals, safety rules, licences for contractors, insurance, retention, the right to stop work for non payment, and limits on delay damages and on what you may exclude differ from country to country, and some of these rules override this text. Check who must apply for permits, that the contractor is licensed where that is required, and get a lawyer to review the contract before signing it for any job of real size or any work on a home you will live in. ## Fill it in and preview You are signed in. Fill it in your workspace and it is kept as a document you can send, share and have signed. [Open in your workspace](https://app.nerix.ai/documents/templates/construction-contract) ### Construction Contract This contract is made on 7 November 2026 between: - **Marlow Family Trust**, of 22 Birch Avenue, Auckland 1010, New Zealand ("the Owner"); and - **Kestrel Building Ltd**, of Unit 4, 70 Harbour Road, Auckland 1011, New Zealand ("the Contractor"). Contractor's licence or registration: Licensed Building Practitioner no. 123456 The Owner wishes to have building work done at the site below and the Contractor agrees to do it. They agree as follows. ## 1. The works 1.1 The Contractor will carry out and complete the following work, at 22 Birch Avenue, Auckland 1010, New Zealand ("the Site"), together with everything that is reasonably needed to complete it ("the Works"): - a two storey rear extension of about 60 square metres, as shown in the drawings - a new roof, windows and external doors - electrical, plumbing and heating for the extension - internal finishes up to painting 1.2 The Works are shown in and must be carried out to these drawings and documents ("the Contract Documents"): Drawings A101 to A110 revision C dated 4 September 2026, and the specification dated 4 September 2026 by Hale Architects 1.3 The following work is not included in the Works: landscaping, kitchen units and appliances, curtains and furniture 1.4 If the Contract Documents conflict with each other, the Contractor will tell the Owner at once and will follow the Owner's written instruction. If the Contract Documents do not describe something that is clearly needed for the Works to be complete, safe and fit for their purpose, the Contractor will do it as part of the price, unless it is a change under section 6. 1.5 The Contractor will carry out the Works with the skill and care expected of an experienced and qualified contractor, using the standard of workmanship and materials set by the Contract Documents. If they do not set one, the Contractor will use new materials of good quality that suit their use, and workmanship that meets the building codes and good practice that apply at the Site. The Works will comply with every law, code, standard and permit that applies to them. ## 2. Contract price 2.1 The Owner will pay the Contractor the sum of NZD 285,000 for the Works ("the Contract Price"). It excludes goods and services tax, which the Owner pays in addition . All sums are in New Zealand dollars . 2.2 The Contract Price is a fixed price. It changes only for a variation under section 6, a delay under section 8 that the Owner is responsible for, or an adjustment that this contract expressly allows. 2.3 The Contract Price includes all labour, materials, plant, equipment, temporary works, waste removal, fees and charges of the Contractor, and the cost of getting the Works through every inspection, except what is stated to be excluded. ## 3. Payment 3.1 The Owner will pay the Contract Price in stages. When each stage below is reached, the Contractor will send the Owner an invoice that shows the stage, the amount due, the retention and any variations that have been agreed: - 10% on signing - 20% when the foundations and floor slab are complete - 25% when the frame and roof are complete and weather tight - 25% when first fix electrical, plumbing and insulation are complete - 15% at practical completion - the rest on release of the retention 3.2 The Owner, or the architect or engineer the Owner has named, will inspect the Works within 5 working days of receiving an invoice, and will certify the amount that is due, or tell the Contractor in writing why a stage has not been reached. The Owner will pay the certified amount within 10 days of the invoice. The Owner may pay in accordance with a stage only if the work for that stage is complete and conforms to the Contract Documents. 3.3 The Owner may hold back from a payment a sum equal to the reasonable cost of putting right work that is defective, and a sum that the Contractor owes, if the Owner tells the Contractor in writing the amount and the reason before the payment is due. The Owner will pay the rest on time. 3.4 A sum not paid when due carries interest at 4% a year above the base rate of the central bank of the country of the currency of payment. If the Owner does not pay a sum that is certified and not disputed in good faith, and does not pay it within 7 days after a written notice, the Contractor may suspend the Works until it is paid, if the law allows it, and will be given an extension of time for the suspension. 3.5 Taxes are paid as stated in section 2.1. If the law requires a deduction of tax at source from a payment, the Owner will deduct it, pay it on time, and give the Contractor an official receipt. 3.6 Payment is not acceptance of work that is defective, and does not release the Contractor from any duty under this contract. ## 4. Retention 4.1 The Owner will hold back 5% of each payment as retention, to secure the proper completion of the Works and the putting right of defects. 4.2 The Owner will release half of the retention to the Contractor within 14 days after the certificate of practical completion, and the rest within 14 days after the end of the defects period, if the Contractor has put right all the defects that it was told of. The Owner may keep from the retention the reasonable cost of putting right any defect that the Contractor has not put right. 4.3 The Owner will keep the retention in a separate account where the law requires that. ## 5. Site, access and the Owner's duties 5.1 The Owner will give the Contractor exclusive access to the Site on the start date, and enough access for the whole time of the Works, free from obstacles and of persons, and will keep the Site available. The Owner is responsible for the right to build on the Site and for any rights of neighbours and others that could stop the Works. 5.2 The Owner will give the information, decisions and approvals that the Contractor needs, in good time and within 7 days of a written request, and will make a person available who has authority to decide for the Owner. 5.3 The Owner will not let other persons work on the Site without agreeing with the Contractor how they will work together, and will not occupy or use the Works, or part of them, before practical completion without the Contractor's agreement. 5.4 The Contractor will work at the Site only at reasonable hours and in line with the local rules, will keep the Site clean and safe, will protect existing buildings, trees, services and the property of neighbours, and will remove its waste. 5.5 The Contractor is responsible for the Site and the Works until practical completion and bears the risk of loss or damage to them, except for damage that the Owner causes, or from a war or other event that insurance does not cover and that neither party could prevent. 5.6 The Contractor will work at the Site only in these hours: 7:30 am to 5:30 pm, Monday to Saturday, and not on public holidays . ## 6. Variations 6.1 The Owner may ask for a change to the Works, an addition or an omission, by a written instruction. The Contractor will not make a change without a written instruction, except to deal with an emergency to protect people or property, when it will tell the Owner at once. 6.2 Before making a change that the Owner asked for, the Contractor will tell the Owner within 5 working days, in writing, the effect of the change on the Contract Price and the date for completion. The change is made when both parties have agreed to it in writing, and the Contract Price and the date are changed as agreed. 6.3 If the parties do not agree on the cost, the change will be priced fairly from the rates in the Contract Documents, or if there are none, at the reasonable cost of labour and materials plus a fair and agreed percentage for overhead and profit, and any dispute about the price does not excuse the Contractor from making the change. 6.4 The Contractor may refuse a change that is unsafe, unlawful, or that would not be possible for a reasonable contractor to do. 6.5 If the Contractor finds conditions at the Site that could not reasonably have been found out before signing, such as hidden services or ground conditions that are very different from what a careful inspection would show, it will tell the Owner at once and stop work in that area. The Contract Price and the date for completion are changed fairly for the extra cost and time. ## 7. Programme and completion 7.1 The Contractor will start the Works on 1 March 2027 , will carry them out with due speed and without delay, and will complete them by 30 September 2027 ("the Date for Completion"). 7.2 The Contractor will give the Owner, within 14 days of signing, a programme that shows the order and timing of the main parts of the Works, and will keep it up to date and tell the Owner at once of anything that is likely to delay the Works. 7.3 The Works reach "practical completion" when they are finished except for small items that do not stop the Owner from using them and that can be done without much disturbance, all inspections, certificates and approvals that the law requires have been given, and the Owner or its representative has certified it in writing. The Owner will inspect within 7 days of the Contractor's notice and will not unreasonably refuse to certify. The Contractor will finish small items within 28 days. 7.4 On practical completion the Contractor will give the Owner the keys, the certificates and approvals, the guarantees and instruction manuals for installed equipment, and drawings of the Works as built. ## 8. Delay 8.1 The Contractor is entitled to a fair extension of the Date for Completion for a delay that it did not cause and could not reasonably avoid, which is caused by a variation, by the Owner, by the Owner's other contractors, by late decisions or access, by conditions under section 6.5, by exceptionally bad weather that a careful contractor could not have planned for, or by a force majeure event, but only if the Contractor tells the Owner in writing of the cause within 7 days of becoming aware of it, and does what it reasonably can to reduce the delay. 8.2 If the Contractor does not complete the Works by the Date for Completion, as extended, the Contractor will pay the Owner damages of NZD 250 a day for each day from that date until practical completion. The parties agree that this sum is a fair estimate of the Owner's loss, and not a penalty, and it is the Owner's only remedy for delay up to the day of practical completion, but does not affect the Owner's right to end the contract under section 15. 8.3 The Owner may take the damages for delay from any sum it owes the Contractor. ## 9. Health and safety 9.1 The Contractor is responsible for the safety of everyone on the Site, other than the Owner's own persons who go on to the Site without the Contractor's consent. It will follow every law and rule about health, safety and the environment, will give safe working methods, the right equipment and training to its workers, and will keep the Site secure, fenced and signed. 9.2 The Contractor will tell the Owner at once of any accident, serious incident or visit from an authority on the Site, and will report it to the authority where the law requires. 9.3 The Contractor will not use materials that are banned or harmful, and will deal with hazardous waste only as the law allows. If hazardous materials, such as asbestos, are found, the Contractor will stop work in that area, tell the Owner at once, and the parties will treat the discovery as a condition under section 6.5. 9.4 The Owner will tell the Contractor of anything it knows of that could be a danger on the Site, including underground services and hazardous materials. ## 10. Permits, inspections and compliance 10.1 Permits and approvals 10.2 The Contractor will give notice for and attend all inspections that the law or the permits require, will not cover up work before it has been inspected where that is required, and will give the Owner copies of the inspection results. If the Owner asks to inspect work before it is covered, the Contractor will allow it. 10.3 The Contractor will pay the fees and charges that arise from its own work, and all fines that arise from its own breach of the law. ## 11. Insurance 11.1 The Contractor will take out and keep in force from the start date until the end of the defects period, with a reputable insurer, public liability insurance of at least NZD 2,000,000 for any one event , and insurance that the law requires for its workers, and will give the Owner proof of it before the start date and when asked. 11.2 The Contractor will insure the Works against loss or damage, for the full cost of rebuilding them, from the start date until practical completion, in the joint names of the parties, unless the Owner has told the Contractor in writing that it will do so. The party that does not insure will not do anything that would make the other's policy void. 11.3 If the Contractor does not insure, the Owner may do so and charge the cost to the Contractor. ## 12. Subcontracting and workers 12.1 The Contractor may use subcontractors, but remains responsible for their work as if it were its own. It will not subcontract the whole of the Works without the Owner's written consent, and will tell the Owner the name of every main subcontractor on request. 12.2 The Contractor will make sure that all workers and subcontractors are suitably qualified, licensed and supervised, are paid and treated according to the law, and are not employed in a way that breaks the law. The Contractor will pay its subcontractors and suppliers on time, so that no lien, charge or claim is made against the Site or the Owner. If one is made, the Contractor will clear it at once at its own cost, and the Owner may pay it and take the cost from the Contractor. 12.3 The Owner may ask the Contractor to remove a person from the Site who is incompetent or who acts unsafely or badly, and the Contractor will do so. ## 13. Defects 13.1 For 12 months from practical completion ("the Defects Period") the Contractor will put right, at its own cost and without delay, every defect in the Works that appears in that time, and that is due to materials or work that do not meet this contract, as soon as the Owner tells it in writing. It will do so at a time that suits the Owner as far as it can, and will make good anything that is damaged by the repair. 13.2 If the Contractor does not start to put right a defect within 14 days of a written notice, or at once if the defect is an emergency, the Owner may have the work done by another contractor and the Contractor will pay the reasonable cost. 13.3 Work that is put right has a defects period of its own of the same length from the date it is put right. 13.4 This section does not take away any other right of the Owner for defects that the law gives, and the Contractor remains liable for defects that could not be seen within the Defects Period. 13.5 The Contractor will give the Owner the benefit of any guarantee from a manufacturer or supplier for materials and equipment installed. ## 14. Responsibility 14.1 The Contractor will keep the Owner free from claims of third parties for injury, death or damage to property that arise from the Works or from the Contractor's breach of this contract, except to the extent that the Owner caused them. 14.2 Neither party is liable to the other for indirect loss or loss of profit that could not reasonably have been foreseen. The Contractor's total liability to the Owner, other than for damages for delay and for losses that insurance should cover, is limited to the Contract Price. This does not limit a liability for death or personal injury, for fraud, or for deliberate abandonment of the Works, or for anything that the law does not allow to be limited. ## 15. Suspension and termination 15.1 The Owner may suspend the Works for a reasonable time by written notice. The Contractor will protect the Works, and the Owner will pay the reasonable costs of the suspension and give an extension of time, unless the suspension was due to the Contractor's breach. 15.2 The Owner may end this contract by written notice at once if the Contractor does not start the Works on time, or abandons them or stops work for more than 14 days without reason, or does not work with due speed, or continues to carry out work that is defective after a written notice, or does not keep the insurance, or becomes insolvent, or if the delay is more than 60 days after the Date for Completion. The Owner may then enter the Site, hold the materials and equipment on it, and finish the Works, and the Contractor will pay the extra cost, over what would have been paid to the Contractor, of finishing them. 15.3 The Contractor may end this contract by written notice if the Owner does not pay a sum that is due and certified for more than 21 days after a written notice of non payment, if the Owner prevents the Contractor from carrying out the Works for more than 30 days, or if the Owner becomes insolvent. The Owner will then pay for the work done, for materials that were ordered and cannot be returned, for the reasonable cost of leaving the Site, and for the loss of profit that the law allows. 15.4 The Owner may end this contract for its own convenience by written notice of 14 days, and will then pay the Contractor for the work done and the materials ordered, the reasonable cost of ending, and a fair part of profit on the work not done, limited to what the law allows. 15.5 When this contract ends, the Contractor will leave the Site safe and secure, give the Owner all the plans, certificates and approvals it has for the Works, and will not take away materials that have been paid for. ## 16. General - Notices under this contract must be in writing and may be sent by email, or delivered to the addresses at the top of this contract, or to another address that a party has told the other of in writing. - The Contractor is an independent contractor and not an employee, agent or partner of the Owner. - The Contractor may not transfer this contract, or any right under it, without the Owner's written consent. The Owner may transfer its rights to a buyer or lender of the Site by written notice, and the Contractor will sign any document that a lender reasonably needs. - This contract is the whole agreement between the parties about the Works. It replaces everything said or written earlier, and may be changed only in writing signed by both parties. - Each party will keep secret the other's private information that it learns under this contract. - The Contractor may use photographs of the finished Works for its promotion, if the Owner agrees, which will not be refused without reason, and without showing private information. - If any part of this contract cannot be enforced, the rest remains in effect. - A party that does not use a right straight away has not given it up. - This contract may be signed in separate copies and electronically, and together they form one contract. ## 17. Governing law and disputes This contract, and any dispute that arises from it, is governed by the laws of New Zealand . If a dispute arises, the parties will first meet and try to settle it in good faith within 21 days of one giving written notice of it. They may also agree to ask an independent expert or mediator to help, and each will pay half of the cost. Neither will use the dispute as a reason to stop the Works, except under this contract. The place for deciding any dispute under this contract is Auckland . How disputes are decided Either party may ask a court for an urgent order, and for an order about payment where the law gives a quick way to decide a payment dispute in building work. ## Signatures **For the Owner: Marlow Family Trust** Name and title: ______________ Signature: ______________ Date: ______________ **For the Contractor: Kestrel Building Ltd** Name and title: ______________ Signature: ______________ Date: ______________ Templates are a careful starting point, not legal advice. Where the law matters, check what applies where you are. Contracts and agreements ## What this template is for A construction contract for building work: price, payment stages, retention, variations, programme, delay damages, insurance, defects, termination and disputes. It is free to fill in online, needs no account, and downloads as a Word document or a PDF. [See all Contracts and agreements templates](https://nerix.ai/templates/contracts) Contracts and agreements ## What you fill in The form asks for 25 details. The document fills itself in as you type. - ### Owner: full name or company name For example: Marlow Family Trust - ### Owner: address For example: 22 Birch Avenue, Auckland 1010, New Zealand - ### Contractor: full name or company name For example: Kestrel Building Ltd - ### Contractor: address For example: Unit 4, 70 Harbour Road, Auckland 1011, New Zealand - ### Contractor's licence or registration number (optional) optional For example: Licensed Building Practitioner no. 123456 - ### Site where the work is done For example: 22 Birch Avenue, Auckland 1010, New Zealand - ### The works Describe what will be built and what is included. For example: - a two storey rear extension of about 60 square metres, as shown in the drawings - a new roof, windows and external doors - electrical, plumbing and heating for the extension - internal finishes up to painting - ### Drawings and specification Name each drawing and document by number and date. For example: Drawings A101 to A110 revision C dated 4 September 2026, and the specification dated 4 September 2026 by Hale Architects - ### Work not included (optional) optional For example: landscaping, kitchen units and appliances, curtains and furniture - ### Contract price For example: NZD 285,000 - ### Taxes and the price Say whether the price includes or excludes taxes. For example: excludes goods and services tax, which the Owner pays in addition - ### Currency of payment For example: New Zealand dollars - ### Payment stages Each stage with its share of the price. For example: - 10% on signing - 20% when the foundations and floor slab are complete - 25% when the frame and roof are complete and weather tight - 25% when first fix electrical, plumbing and insulation are complete - 15% at practical completion - the rest on release of the retention - ### Days to pay a certified amount For example: 10 days - ### Retention The share held back until defects are fixed. Local law may limit it. For example: 5% of each payment - ### Start date For example: 1 March 2027 - ### Date for practical completion For example: 30 September 2027 - ### Damages for each day of delay A fair estimate of the Owner's loss from each day of delay. For example: NZD 250 a day - ### Defects period For example: 12 months from practical completion - ### Permits and approvals - ### Public liability insurance cover For example: NZD 2,000,000 for any one event - ### Site working hours (optional) optional For example: 7:30 am to 5:30 pm, Monday to Saturday, and not on public holidays - ### Country or state whose law applies For example: New Zealand - ### Place for disputes For example: Auckland - ### How disputes are decided Contracts and agreements ## What is inside The parts of this document, in order. - 1 1. The works - 2 2. Contract price - 3 3. Payment - 4 4. Retention - 5 5. Site, access and the Owner's duties - 6 6. Variations - 7 7. Programme and completion - 8 8. Delay - 9 9. Health and safety - 10 10. Permits, inspections and compliance - 11 11. Insurance - 12 12. Subcontracting and workers Templates ## How it works - 01 ### Fill in Type your details in the form. The document fills itself in as you type; click any gap to jump to its field. - 02 ### Check Read it through. Gaps you have not filled stay marked, so nothing goes out half done. - 03 ### Download Save it as a Word document to edit further, or as a PDF to send or print. ### Make it yours with AI Open it in the chat and ask for changes: shorter, firmer, another situation, another language. [Adapt it with nerix](https://nerix.ai/try?template=construction-contract) ### Was this template helpful? Contracts and agreements ## Questions people ask ### What details does this template ask for? The form asks for 25 details, starting with Owner: full name or company name, Owner: address, Contractor: full name or company name, Contractor: address, Site where the work is done. 3 more are optional. ### Can I download this template as Word or PDF? Yes. When you have filled in the form, save it as a Word document to keep editing, or as a PDF to send or print. It is free and needs no account. ### Is what I type sent anywhere? No. What you type stays in your browser while you fill in the document. It only goes to nerix if you choose to open the template in the chat. ### What should I check before I use this template? Building work is heavily regulated. Permits, approvals, safety rules, licences for contractors, insurance, retention, the right to stop work for non payment, and limits on delay damages and on what you may exclude differ from country to country, and some of these rules override this text. Check who must apply for permits, that the contractor is licensed where that is required, and get a lawyer to review the contract before signing it for any job of real size or any work on a home you will live in. ### Are these contract templates free? Most are. You can fill in and download them for free as Word or PDF, with no account. A few long business agreements are premium: free to fill in, paid once to download, and marked with their price. ### Is a template contract legally valid? A signed agreement is usually valid when both sides understand and accept it, but rules differ by country and by type of contract. Treat a template as a careful starting point and check what applies where you are. ### Do I need a lawyer to use a template? For simple, low risk agreements many people do not. For large sums, property, employment disputes or anything unusual, ask a lawyer to review the draft first. ### Can I change the terms? Yes. 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