You better believe that the contractors have had that contract reviewed by their attorney.

Standardized contracts should all have essentially the same basic terms but the authors will often have a bias for one party or the other so in this case it is unlikely to be in your favor.

I wouldn't be able to comment on the one you have without reading it but I have seen several that did not say much about the contractor's responsibilities, allowances, change orders or termination of the contract.

Even if it is well written I assure you that it could be improved so review it with an attorney or post it here if that is possible.

Who is responsible for the design, documentation and quality control for the project?

Yes, the builder's association would have set the template and then it was likely tweaked by the builder.

My husband stated it can get very very costly to start rewriting contracts as you need both parties to agree on the conceptual elements. He is saying we should focus on covering ourselves for pricing, materials, financing and timing.

I really don't hear too much about anyone using an attorney but perhaps thats not the case.

I'm just curious if people used one or not.

Thanks for the feedback!

Here is a sample of the contract. I took out some sections.

Industry
Standards

Builder agrees to complete
construction in accordance with the plans and specifications. All work will be performed in a good and
workmanlike manner and shall be of good quality and free from faults and
defects in excess of published industry standards as recognized by the Metropolitan
Builders Association. All tasks are to be completed in a work-like manner in
accordance with plans, specifications, State of Building and Safety Codes and
governing local and municipal codes

ALLOWANCES:

All allowance amounts are estimates
for the completion of the above-referenced items and are not guaranteed. Other
allowances will

be charged at Builder’s total cost
plus 15% for Builder’s markup. If Builder is collecting monies for
allowances the Builder must

provide documentation to justify the
charges. Allowances provided for in this Contract are subject to adjustment
upon completion of

the particular work involved. When the
final costs, including Builder’s markup, for allowance items exceed the total
allowance, Buyer

shall pay the difference within 30
days after the date of Builder’s invoice for the additional amount due.
Should costs be less than

allowance, Buyer will receive credit
for the difference at final closing prior to occupancy. Allowance items are
estimates and are often

affected by unknown and unforeseen
conditions that are not under the control of the Builder; therefore, they are
difficult to measure.

Some allowance items are affected by
Buyer’s choices.

7. CONSTRUCTION
PAYMENTS.

The Buyer shall make or authorize
payment to the Builder within three (5) days after the receipt of each
progress payment request

provided for above. Builder shall
furnish proper waivers of lien to the escrow agent or lender to the extent
authorized by the progress

payment. If timely payment is not
received, Builder shall be entitled to stop work and/or extend Contract time,
which shall be treated

as a work stoppage to which Section 22
applies. In the event of non-payment, Buyer will be responsible for payments of
all progress

draws not authorized and received.
Buyer is responsible for payment in full for the services provided, including
but not limited to

written and verbal change orders,
prior to taking occupancy.

8. CONTINGENCIES.

A. Financing

This Contract is is contingent upon
the securing of financing.

Lender contact
information and finance terms to follow within X days of signing Building
Construction Contract.

C. Financing
Commitment / Escrow

If a financing commitment or escrow
agreement is not obtained within 45 days from the date hereof, either party may
rescind this

Contract, in writing, and all monies
paid hereunder shall be refunded to Buyer. However, Buyer shall pay Builder the
expenses

incurred by Builder in carrying out
Builder’s obligations hereunder, plus mark-up, including, but not limited to,
the following: survey,

building permits, erosion control,
dumpsters, credit report, any required tests, and the cost of plans or
specifications prepared for

Buyer. Buyer agrees to sign all
documents necessary to obtain a mortgage or establish an escrow and to
authorize the disbursement of

proceeds from same as provided in
Section 8 herein.

E. Builder Ability to
Terminate Contract Based On Lender or Title Company Used

If Buyer selects a lender or title
company that imposes unduly burdensome requirements upon the Builder, Builder
shall notify Buyer

of Builder’s objections prior to the
start of construction. Buyer shall have the right to cure Builder’s objection
within five (5) working

- 3 -

days of such notification. In the
event Buyer fails to cure Builder’s objection, Builder shall have the right to
terminate this Contract.

Upon termination of this Contract,
Builder shall return all funds deposited with the Builder to the Buyer.
However, Builder may retain

funds equal to Builder’s costs for
time and materials incurred to date. If Builder is collecting monies for time
and material costs, the

Builder must produce documentation to
justify the charges.

F. Financing or
Closing Delay

The total Contract price shall remain
in full force and effect only if the financing referred to above is closed as
provided above, time

being of the essence. In the event
financing is not closed on or before the stated date, Builder reserves the
right to revise such price to

cover any increased material and labor
costs. If such increase is not consented to by Buyer, Builder may, at its
option, cancel this

Contract and return Buyer’s funds,
less amounts as provided in Section 9(c).

G. Additional
Contingencies

This Contract is further contingent
upon:

9. FINANCIAL CLOSING
DATE.

Financing shall be closed, prior to
the start of construction, at the office of the Buyer’s mortgagee, on or before

_______________________ or such time
and place as may be mutually agreed upon by the parties hereto in writing. Time
is hereby

made of the essence.

10. ESCROW.

Whether or not financing is required,
the parties agree that the total contract price, less the aforementioned down
payment (when

paid), shall be deposited with an
escrow agent selected mutually by Buyer and Builder naming Builder as the
escrow proceeds

recipient. Buyer shall pay any fees or
charges for said escrow and agrees to authorize the disbursement of withdrawals
from the

escrow as set forth in Section 8.
Construction shall not commence until Builder receives written verification,
satisfactory to Builder,

that the escrow has been established.

11. INSURANCE.

The Buyer shall, prior to commencement
of the work and until full payment is made to the Builder, keep the Building
insured by a

Builders Risk Policy Special Form,
naming the Builder as an “additional insured” or a “party with an interest” in
an amount not less

than $__________________________ and
to deposit with Builder a Certificate of Insurance. If the Buyer fails to
effect or maintain

insurance as provided above or to
issue the Certificate of Insurance, the Buyer assumes any and all liability.
However, the Builder may

insure its interest in the
construction and charge the cost to the Buyer as an extra. The Builder shall
maintain Comprehensive General

Liability Insurance of not less than
$2,000,000.00, Bodily Injury/Property Damage Insurance, and Workers
Compensation Insurance.

Builder shall not be liable for
uninsured damages or losses, or any other condition or occurrences that are not
within the control of the

Builder. Buyer shall be responsible
for payment of all losses, including the deductible owed under the Builders
Risk Insurance Policy.

12. VALIDITY OF LOT
OWNERSHIP.

Where Buyer is the owner of the lot,
Buyer shall furnish to the Builder within ten (10) days after acceptance of
this Contract a copy of

the recorded deed restrictions,
easements, covenants, and location of utilities. Evidence of valid title
relating to this lot shall be

submitted to the Builder by the Buyer
prior to the start of construction. Buyer shall be responsible for furnishing
an approved site for

construction called for by this
Contract. The Buyer shall hold harmless and indemnify the Builder from any and
all liability either to

the Buyer or any other person or
governmental body concerned if the Buyer fails to comply with the conditions of
this Section.

13. DEFAULT PRIOR TO
START OF CONSTRUCTION.

In the event Buyer fails to fulfill
Buyer’s obligations under this Contract prior to the start of construction, the
down payment shall, at

the option of the Builder, be
forfeited as liquidated damages. Builder is also entitled to payment for any
time and material costs in

addition to the Builder’s markup of 15%
for Builder’s time and material costs incurred to date. If Builder is
collecting monies for

time and material costs, the Builder
must provide documentation to justify the charges.

This Section shall not apply in the
event that the Buyer’s default is due to the inability to secure financing or
as a result of the inability

to sell existing property as set forth
in Section 9 above. Buyer understands and agrees that Buyer’s attempts to
secure financing or sell

existing property must be made in good
faith and with due diligence.

14. LIEN NOTICE.

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AS REQUIRED BY THE X
CONSTRUCTION LIEN LAW, BUILDER HEREBY NOTIFIES BUYER THAT

PERSONS OR COMPANIES
PERFORMING, FURNISHING, OR PROCURING LABOR , SERVICES, MATERIALS,

PLANS, OR
SPECIFICATIONS FOR THE CONSTRUCTION ON BUYER’S LAND MAY HAVE LIEN RIGHTS ON

BUYER’S LAND AND
BUILDINGS IF NOT PAID. THOSE ENTITLED TO LIEN RIGHTS, IN ADDITION TO THE

UNDERSIGNED BUILDER,
ARE THOSE WHO CONTRACT DIRECTLY WITH THE BUYER OR THOSE WHO GIVE

THE BUYER NOTICE
WITHIN SIXTY (60) DAYS AFTER THEY FIRST PERFORM, FURNISH, OR PROCURE LABOR

, SERVICES,
MATERIALS, PLANS OR SPECIFICATIONS FOR THE CONSTRUCTION. ACCORDINGLY,
BUYER

PROBABLY WILL RECEIVE
NOTICES FROM THOSE WHO PERFORM, FURNISH, OR PROCURE LABOR,

SERVICES, MATERIALS,
PLANS, OR SPECIFICATIONS FOR THE CONSTRUCTION, AND SHOULD GIVE A COPY

OF EACH NOTICE
RECEIVED TO THE MORTGAGE LENDER, IF ANY. BUILDER AGREES TO COOPERATE WITH

THE BUYER AND THE
BUYER’S LENDER, IF ANY, TO SEE THAT ALL POTENTIAL LIEN CLAIMANTS ARE DULY

PAID.

15. CHANGE ORDERS.

Changes in the plans or specifications
often occur during construction. Changes in the plans or specifications will be
made upon written

order prior to a change being made.
Written changes shall be signed by Buyer and shall set forth a description of
the change, addition or

deletion and the cost or credit.

Any changes or extras shall extend the
time to complete the construction. Any change, alteration or extra from the
plans or specifications,

including, but not limited to, erosion
control measures or mandated dumpster use, which may be required by any public
body or inspector or

architectural control committee (or
similar authority) or site conditions, which increases costs, shall constitute
an extra and shall be paid by

Buyer, and shall not require written
approval from Buyer as stated above. In addition, Buyer agrees to pay a
surcharge of $30.00 per

individual change hereunder occurring
after signing of the final selections in addition to Builder’s quoted price of
the change. All changes and

extras are subject to a delinquency
charge of 18% per year and Buyer shall bear all costs of collection, including
actual attorneys’ fees, if not

paid by due date. In the event of
non-payment, Builder shall be entitled to stop work and/or treat the
non-payment and stoppage of

work as a delay to which Section 16
applies

16. CONSTRUCTION TIME
& CONSTRUCTION DELAYS.

A. Construction Time

Builder agrees to commence excavation
of the Building within 60 working days after acceptance of this Contract
and after all

contingencies beyond the control of
the Builder which may prevent commencement are satisfied or waived, including,
but not limited

to, financing, insurance, lot
ownership, Builder’s receipt of down payment (if any), escrow verification,
building permits, change

orders, plan revisions or
subcontractor agreements. The Builder shall be the authority for the proper
usage, arrangements and

placements of fixtures, equipment and
materials in accordance with recognized standards. The Building shall be
completed in a good

workmanlike manner in quality equal to
the standards of the industry as expressed in the Construction Industry Quality
Standards

published by the Metropolitan Builders
Association. Construction shall be
Substantially

Complete, as defined in Section 18(b)
within 180 working days of commencement (“Construction Time”).

B. Substantial
Completion

Construction of the Building shall be
deemed to have reached “Substantial Completion” on the earlier of (i) the date
when the

Building is sufficiently complete in
accordance with this Contract and related documents so that the Buyer can
occupy or utilize the

Building for its intended purpose, or
(ii) the date the occupancy permit or other approval, if any, is issued by the
appropriate

government authority. Substantial
Completion is dependent upon Buyer making timely selection of materials.
Failure to make

selections in a timely manner may
result in a delay, as defined in Section 16(c) below, and an extension of the
date of Substantial

Completion.

C. Construction Delay

The Construction Time shall be
extended for reasons including, without limitation, changes that cause delay
and delays requested or

caused by the Buyer, acts or missions
of government or military authority, acts of God, material shortages,
transportation delays, fires,

floods, labor disturbances, riots,
wars, terrorist acts, or any other causes beyond the reasonable control of the
Builder, so long as the

Builder use its best efforts to remedy
such failure or delays (a “Construction Delay”). In the event of a Construction
Delay, the date

for performance of the services will
be extended by the time necessitated by the delay.

Buyer is cautioned
that the failure of Buyer to make selections in a timely manner will extend the
Construction Time and will

be treated as a
Construction Delay.

D. Cost Increases As
A Result of Construction Delay

If the Builder experiences an increase
in cost as a result of a Construction Delay, the increased costs shall be paid
by the Buyer.

Builder shall notify Buyer of such
increase at the time the increase occurs. Upon Buyer’s request, the Builder
shall furnish the Buyer

with documentation to verify such
increased costs.

- 5 -

17. BUILDING SITE CONDITIONS.

In the event abnormal Building site
conditions are encountered, Buyer agrees to pay the cost of any additional work
or materials. This

does not constitute a change in plans
and specifications as detailed in Section 16. Buyer agrees to pay for the
additional costs caused

by or resulting from site conditions,
including, but not limited to, the following: abnormal soil conditions, removal
of trees, providing

fill or cutting to grade, trucking
fill, frost breaking, water pumping, concrete pumping, excavation cave-in
corrections, snow removal,

and any related costs. Site condition
allowances will be charged at Builder’s total cost plus 15% for
Builder’s markup. If Builder is

collecting monies for abnormal site
conditions, the Builder must provide documentation to justify the charges.
Unless otherwise

provided in this Contract, the Buyer
shall not be reimbursed for any excess ground removal from the site, nor shall
Builder be required

to remove, store or replace topsoil or
other surface objects. Builder will not be held responsible for unknown or
unforeseen subsoil

conditions.

18. WEATHER
CONDITIONS.

Buyer agrees to pay Builder all
additional charges for additional work and materials which may be required due
to weather conditions

including, but not limited to, service
trips to hook up furnace before finish, haying footings and foundation, frost
breaking, snow

plowing, etc.

19. SUPERVISION OF
WORK.

Buyer agrees that the direction and
supervision of the working forces, including subcontractors, rest exclusively
with the Builder, and

Buyer agrees not to issue any
instructions to, or otherwise interfere with the same. The Buyer shall, at any
reasonable time, during

working hours have the right to
inspect the work. When entering the site to inspect the work, the Buyer shall
adhere to all safety

requirements posted at the job site
and take all necessary precautions to insure the Buyer’s safety and any other
individual on the job

site during the Buyer’s inspection.
Builder shall not be responsible for any injury to Buyer or any guests of the
Buyer during said

inspections. CAUTION: A BUILDING SITE
CAN BE A DANGEROUS PLACE. The Buyer further agrees not to negotiate for

additional work with the
subcontractors nor engage other builders or subcontractors except with the
Builder’s prior consent and in

such manner as will not interfere with
the Builder’s completion of work under this Contract.

20. UTILITIES.

Builder will apply for water, gas, and
electric services to be installed in Buyer’s name. Buyer agrees to pay for all
costs for the

installation and use of these services
during construction. Any additional services requested by Buyer are the
responsibility of Buyer.

21. WORK STOPPAGE OR
DEFAULT.

In the event work is stopped by any
court or public authority, by Buyer’s instructions, or by Buyer’s failure to
fulfill Buyer’s

obligations under this contract,
Builder shall have the right to stop work (a “Work Stoppage”). The parties shall
make a good faith

effort to resolve any and all causes
of a Work Stoppage. Builder is entitled to receive from the Buyer payment for
all work performed

and materials ordered or delivered up
to the date of the Work Stoppage, together with 15% mark-up. If Builder
is collecting monies

for time and material costs, the
Builder must provide documentation to justify the charges. Buyer is responsible
for payment in full of

all charges prior to taking occupancy.
A Work Stoppage shall be considered a Construction Delay, as set forth in
Section 16(c). A

Work Stoppage shall not extend the
time of any warranties that were given to the Buyer under this Contract.

22. POSSESSION AND
OCCUPANCY.

Builder shall have the exclusive
possession and control of the real estate from the time work is commenced until
all sums due Builder

under the Contract have been paid in
full. If Buyer should occupy the real estate prior to making full payment, then
Buyer will be

deemed to have accepted all work done
prior to occupancy and has agreed to void any warranties given to the Buyer
from the Builder.

The Builder then may, at its option,
either terminate this Contract or stop work until Buyer vacates the real
estate.

23. TERMINATION

Should a Work Stoppage remain
unresolved, the Builder shall have the right to terminate this Contract. If
Builder elects to terminate,

the Builder must notify the Buyer in
writing via certified mail, return receipt requested. If the Builder terminates
the Contract, the

Builder need perform no further work.
If the construction on the Building has, at the point of termination, reached
the stage of

Substantial Completion, the Buyer
shall immediately pay to Builder the entire contract price, including change
orders, less amounts

previously paid. In the event that
termination of the Contract occurs prior to Substantial Completion, the Buyer
shall immediately

submit payment to Builder for all work
performed to date, and materials ordered or delivered, together with 15 %
mark-up. If Builder

- 6 -

is collecting monies for time and
material costs, the Builder must provide documentation to justify the charges.
The termination of

this Contract will also void any
warranties given to the Buyer under this Contract or in any other agreement or
document.

24. COLLECTION COSTS.

Buyer is responsible for all costs of
collection incurred by the Builder including interest at a monthly periodic
rate of 1.5% and

reasonable attorneys’ fees, if payment
is not received by the applicable due date.

25. WARRANTY.

The Building constructed under this
Contract shall be warranted by the Builder pursuant to the MBA Standard
Builder’s Residential

Limited Warranty and the Construction
Industry Quality Standards (as applicable), published by the MBA.

Builder does not warrant work
performed by the Buyer or Buyer’s subcontractor. Work performed by the Buyer or
Buyer’s

subcontractor which causes damage to
any work performed by Builder may void the Builder’s warranty.

26. NOTICE OF
CONSTRUCTION DEFECTS AND RIGHT TO REPAIR.

Builder and Buyer agree to comply with
X with regards to requirements of Notice and the Right to Cure before

commencing any formal proceeding to
resolve the dispute. Buyer acknowledges that a copy of the State of brochure of

Notice and Right to Cure has been
given to the Buyer at the date that this Contract is signed.

Notwithstanding anything to the
contrary in the Contract, Builder shall not be obligated to replace or repair
any Defect, as defined

below, or pay for the replacement or
repair of the same if such Defect is caused, in whole or in part by: (i)
Buyer’s improper or

insufficient maintenance of the
Building or improper or insufficient maintenance or operation of any of the
Building’s systems; (ii)

natural occurrences beyond Builder’s
control; (iii) an act or omission of Buyer or any third parties not under
Builder’s control,

including, but not limited to, work
performed by the Buyer or by Buyer’s subcontractors; or (iv) normal wear and
tear and normal

usage.

In the event of an alleged
construction or design defect arising out of or relating to the Contract,
including, but not limited to, breach

of warranty, incomplete work, or any
other condition of the Building (the “Defect”), Buyer shall notify Builder
through written notice

of any such Defect, regardless of the
cause or source, promptly upon Buyer’s discovery of the Defect. Buyer shall
thereafter provide

Builder with reasonable access during
normal working hours to the Building for the purpose of investigating, testing
and examining

the Defect. If the Defect is covered
by the Builder’s warranty then Builder shall be given reasonable access to the
Building and a

reasonable amount of time to, at
Builder’s sole option, replace or repair the Defect. The replacement or repair
of the Defect shall be

Buyer’s sole and exclusive remedy for
a Defect. Buyer waives any and all incidental and consequential damages arising
out of or

relating to a Defect. Any corrections
or repairs undertaken by Builder shall be in compliance with the MBA
Construction Industry

Quality Standards.

27. DISPUTES AND
RESOLUTIONS.

The following provisions apply to any
dispute between the parties arising out of or relating to this Contract,
including, but not limited

to: the meaning of this Contract; the
enforceability of this Contract; the rights or obligations of any party under
this Contract; claims

against any officers, owners,
shareholders, directors, employees, successors, members, or agents of Builder;
the performance of any

aspect of this Contract or the
construction work, or any disagreements regarding charges for changes; and any
other dispute arising

from this Contract.

A. Mediation

If mediation is requested by the Buyer
or Builder in writing, the mediation shall be conducted by the Mediation
Service of the MBA

(“MBA Mediation Service”). After the
written request for mediation occurs, the other party must proceed to mediate
the dispute(s) at

the MBA according to its rules and
procedures. The parties agree, in the event the dispute proceeds to mediation,
that they will make

a good faith effort to resolve their
dispute(s) through the mediation process. The parties agree that they will
abide by the MBA

Mediation Service policies and
procedures. Proceeding to mediation does not waive or affect the obligation of
the parties to resolve

their dispute(s) by arbitration in the
event mediation is not successful.

B. Arbitration. Any dispute which is
either not referred to mediation or is not resolved through mediation (other
than enforcement of

any insured warranty plan), shall be
resolved according to the policies and procedures of the MBA Dispute Resolution
Service.

If arbitration is undertaken to
resolve a dispute (or disputes) under this agreement, the decision of the
arbitrators shall be binding, final

and may be enforced in accordance with
the applicable provisions of Chapter 788 of the Statutes. The filing of a lien
claim

shall not be considered an election by
the Contractor to waive its rights under this provision and the enforcement by
the Contractor of

- 7 -

its lien rights is expressly exempted
from the requirements of this provision. Any arbitration proceedings commenced
pursuant to this

provision shall be conducted in
accordance with the rules adopted by the applicable arbitration body and the
applicable provisions of law.

If the parties are directed to
arbitrate any dispute or disputes and a party refuses to submit a claim to
arbitration, fails to abide by the

rules adopted by the applicable
arbitration body, or fails to abide by the decision of the arbitrators, the
non-breaching party shall be

entitled to recover all costs,
including attorneys’ fees, incurred in seeking further action to enforce the
terms of this Agreement and/or

to compel arbitration. Contractor and
Owner agree that, in the event the MBA is named as a party to any dispute
relating to the

Contractor and Owner challenging the
MBA’s ability to administer the dispute resolution process, conduct arbitration
or to enforce the

decision, the MBA shall be awarded
reasonable attorneys’ fees and other costs associated with such proceeding if
the challenge fails.

If the MBA Dispute Resolution Service
is selected to administer the dispute(s) between the parties, the MBA Dispute
Resolution

Intake Committee shall have the sole
authority to determine whether any or all of the claims submitted for
resolution are suitable for

arbitration; to direct whether the MBA
Construction Arbitration Board or Joint Resolution Process Arbitration Panel is
the appropriate

panel to hear the arbitration; and/or
to determine whether any or all of the claims are better suited for referral to
Small Claims Court.

The MBA Dispute Resolution Intake
Committee shall also have the authority to decide jurisdictional matters
including, but not limited
to, jurisdictional
considerations such as compliance with the notice provisions of the “Right to
Cure” law

28. AIR QUALITY.

A. Warning

Microorganisms, including, but not
limited to, mold, mildew, spores, or any other form of fungi or bacteria
(“Microorganisms”), occur

naturally in the environment and may
be present, during or after construction, in the indoor air and/or on the
interior surfaces of the

Building including, without limitation
to, wall cavities, attics, windows, basements, and/or on the exterior surfaces
of the Building, or

any part thereof. Mold can occur even
when the home is constructed following accepted construction practices.
Concentration of

moisture in the Building may result
from cooking, showering, or similar activities inside the Building, the outside
atmosphere, and/or

the design, construction means and
methods, and/or the building materials used in the construction of the
Building. This moisture may

cause the growth, release, discharge,
dispersal, or presence of Microorganisms which, at certain levels, can cause
deterioration of

building materials, damage to
property, health hazards, personal injuries and/or other irritant effects such
as, without limitation to, skin

irritation, respiratory problems
and/or allergic reactions. Likewise, concentrations of radon released from soil
or chemicals released

from household furnishings,
appliances, mechanical equipment, personal possessions, or building materials
may, at certain levels,

create health hazards and/or other
irritant effects such as, without limitation to, skin irritation, respiratory
problems and allergic

reactions. Because Microorganisms and
radon occur naturally in the environment, Builder cannot eliminate the
possibility that radon

may be present or that Microorganisms
may grow in, on, or about the Building. Buyer may minimize these effects by
proper

utilization and maintenance of
heating, cooling, dehumidification, or ventilation equipment, interior
maintenance and cleaning, and

exterior maintenance such as, but not
limited to, proper grading, landscaping, painting, and caulking. BUYER HEREBY

ACKNOWLEDGES THAT BUYER HAS BEEN
INFORMED OF SUCH DEFECTS AND BUYER ASSUMES ALL RISKS OF

DAMAGE, PERSONAL INJURY, OR
DESTRUCTION OF OR INJURY TO PROPERTY THAT MAY ARISE AS A RESULT OF

OR IN ANY WAY CONNECTED WITH THE
INDOOR AIR QUALITY OR THE PRESENCE OF MICROORGANISMS,

RADON, OR CHEMICALS IN, ON OR ABOUT
THE BUILDING, INCLUDING ANY RISK CAUSED BY THE NEGLIGENT

ACT OR OMISSION OF BUILDER, ITS
SUCCESSORS AND ASSIGNS, SUBCONTRACTORS, MATERIAL SUPPLIERS AND

THE OFFICERS, OWNERS, SHAREHOLDERS,
DIRECTORS, EMPLOYEES, MEMBERS AND AGENTS OF EACH OF THEM

(EACH, AN “INDEMNIFIED PARTY”),
EXCLUDING THOSE RISKS ARISING SOLELY FROM THE INTENTIONAL

MISCONDUCT OF BUILDER AND/OR ANY
INDEMINFIED PARTY.

B. Disclaimer and
Release of Claims

NOTWITHSTANDING ANY
OTHER CONTRARY PROVISION IN THE CONTRACT, BUYER FULLY, FINALLY, AND

FOREVER RELEASES AND
DISCHARGES, AND FURTHER AGREES TO INDEMNIFY AND DEFEND, BUILDER, ITS

SUCCESSORS AND
ASSIGNS OR OTHER INDEMINIFIED PARTY FROM AND AGAINST ANY AND ALL CLAIMS,

OBLIGATIONS, DEMANDS,
DAMAGES, CAUSES OF ACTION, LIABILITIES, LOSSES, AND EXPENSES, INCLUDING

REASONABLE ATTORNEYS’
AND EXPERT FEES, WHETHER NOW KNOWN OR HEREAFTER KNOWN,

FORESEEN OR
UNFORESEEN, THAT BUYER OR ANY OCCUPANT OF THE BUILDING HAD, HAS, OR MAY HAVE

IN THE FUTURE, IN LAW
OR IN EQUITY (THE “CLAIM”) THAT ARE ATTRIBUTABLE TO (1) BODILY INJURY,

SICKNESS, EMOTIONAL
DISTRESS, DISEASE, DEATH, OR ANY OTHER PERSONAL INJURY OR ADVERSE

HEALTH EFFECTS, OR
(2) INJURY TO OR DESTRUCTION OF TANGIBLE PERSONAL PROPERTY, INCLUDING

LOSS OF USE THEREOF,
ARISING OUT OF, RELATING TO, OR IN ANY WAY CONNECTED WITH, INDOOR AIR

QUALITY, MOISTURE, OR
THE GROWTH, RELEASE, DISCHARGE, DISPERSAL, OR PRESENCE OF ANY

MICROORGANISMS,
RADON, OR ANY CHEMICAL OR TOXIN SECRETED THEREFROM, IN THE INDOOR AIR,

ON THE INTERIOR
SURFACES OF THE BUILDING INCLUDING, WITHOUT LIMITATION TO, WALL CAVITIES,

THE ATTIC, WINDOWS,
AND THE BASEMENT, OR ON THE EXTERIOR SURFACES OF THE BUILDING, OR ON

ANY PART THEREOF,
INCLUDING ANY CLAIM THAT IS OR MAY HAVE BEEN CAUSED BY THE NEGLIGENT

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ACT OR OMISSION OF
ANY INDEMNIFIED PARTY. BUILDER MAKES NO EXPRESS OR IMPLIED WARRANTY OF

HABITABILITY,
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR GOOD WORKMANSHIP AS

TO BUILDING MATERIALS
AND/OR CONSTRUCTION MEANS AND METHODS WITH REGARD TO INDOOR AIR

QUALITY OR THE
PRESENCE OF MICROORGANISMS, RADON, OR CHEMICALS INCLUDING, WITHOUT

LIMITATION TO, ANY
CHEMICAL OR TOXIN SECRETED THEREFROM IN, ON OR ABOUT THE BUILDING.

THIS EXCLUSION DOES
NOT, HOWEVER, APPLY TO INTENTIONAL ACTS OF MISCONDUCT BY THE BUILDER

AND/OR ANY
INDEMNIFIED PARTY.

C. Remediation

During the construction of the home,
where visible mold is discovered, any remediation cost will be billed to the
Owner as an extra

through a Written Change Order.

D. Acknowledgement

Owner certifies that Owner has read
and understands the provisions of this Section 29 of the Contract including but
not limited to the

release of all claims against and
indemnification of any Indemnified Party.

29. WATER QUALITY AND
WATER SUPPLY.

Unless otherwise expressly provided in
writing, Builder does not warrant or guarantee the quality of water at the
Building, which

includes but is not limited to: water
quality, compliance with the provisions of the Safe Drinking Water Act or
similar laws or

ordinances relating to drinking water,
sufficient water supply and pressure, well capacities, water clarity, water
odor, radium and other

chemical or mineral levels, or other
unforeseen issues relating to water quality or water supply. Compliance with
any applicable

water-related law is Buyer’s
responsibility.

31. SIGNAGE AND
BUILDER PROMOTIONS

Buyer agrees to allow Builder to
display a construction sign at the Building site. Buyer agrees to allow Builder
or a representative to

photograph completed project and use
such photographs in promotional materials, competition programs, or
publications without

restrictions or compensation to Buyer.
All such photographs are the property of the Builder. It shall be the Buyer’s
option to allow use of

their names in promotional materials.

32. SIGNATURES.

The signature of either Buyer (if more
than one) subsequent to the signing of this Contract shall be sufficient for
all purposes under the

Contract, including change orders, if
any.

33. ENFORCEABILITY.

If any part of this Contract is found
to be unenforceable, it shall not affect the enforceability of the remainder of
this Contract. The

failure of either party to enforce any
term or condition of this Contract, shall not constitute a waiver of any other
breach of any right,

claim, term or condition of this
Contract.

34. COPYRIGHT NOTICE.

In the event that the designs, plans,
specifications, drawings and/or blueprints (the “Plans”) are submitted to
Builder by Buyer for use

in constructing the Building, Buyer represents
and warrants that the Plans are either owned by the Buyer or have been properly

obtained by the Buyer for use by the
Builder. Buyer agrees to indemnify, defend and hold harmless the Builder, its
officers, owners,

shareholders, directors, employees,
successors, members, or agents of Builder from and against any and all claims,
debts, obligations,

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costs, expenses and attorneys’ fees
arising out of or in any way related to any third-party claims relating to the
Plans or their use,

including, but not limited to,
copyright infringement, unfair competition and unjust enrichment.

In the event that the Plans are
provided by the Builder, Buyer acknowledges that Builder owns the Plans and all
rights to the Plans.

Any further use or reproduction of the
Plans without Builder’s prior written consent is strictly prohibited.

35. FINAL AGREEMENT.

This Contract expresses all agreements
between the parties concerning the subject matter hereof and supersedes all
previous

understandings relating thereto,
whether oral or written, including proposals, draft plans and specifications,
brochures and other

information, and shall be binding upon
and shall inure to the benefit of the heirs, administrators, executors,
successors and of the

parties hereto.

What I will tell you is that DH is a lawyer with a specialty in contract law and even he said we need to use a RE attorney. It is totally foolish not to run the contract past a RE lawyer

The builder is going to use a template that is biased in the builder's favor at every opportunity. I only skimmed yours, but it looks typical in protecting their interests at the expense of yours. You'd definitely want a lawyer to go over this carefully and the resulting negotiation could indeed be long and expensive. A less expensive approach is to use one of the AIA templates-- they look out for the architect, but are pretty well-balanced between the builder and customer (you don't need to have an architect to use their template, some of the sections are just irrelevant in that case). If your builder is unwilling to work with something like the AIA template language I'd take that as a huge red flag.

BTW, I don't know that this kind of contract language is necessarily the strength of a real estate lawyer. A guy who just does 20 closings a week may not have the right experience.

I don't think this builder would be at all open to the idea of using an AIA Agreement form; there are just too many issues in this contract that are not included in an AIA Owner-Contractor Agreement.

I read it quickly but here are some observations:

- An Allowance buy-out that is higher or lower than the contract Allowance amount will result in a change to the Contract Price so it must be resolved by a written Change Order.

- The reference to "oral" Change Orders should be removed since all Change Orders must be in writing. Or the reference should be changed to refer to an "oral request for a Change Order" or some other owner direction that will not change the contract price. These terms are often used loosely and can cause misunderstandings.

- Payment within "three (5) days" should be corrected. I hope it is 5 days.

- To me the use of "Buyer" to describe the owner of a project is odd but it might be based on different provisions of state law.

- I know nothing about contracts contingent on financing or the requirement of an escrow account. Make sure the lender reviews these provisions.

- There are liquidated damages if the owner defaults not go forward but none if the builder does not complete on time. What happens at the endow 180 days?

- If there will be charges for additional costs due to abnormal site conditions there needs to be a clear definition of what work is included in the contract price.

- There are provisions for the Builder to terminate the contract but none for the Owner. This is a common oversight in contractor written agreements.

Contractor laws vary from state to state so you would be well served to consult an attorney with residential construction as an area of their legal expertise. A "real estate" attorney may or may not have any experience with contracts for new construction. They might only be familiar with property transfers.

BTW, I don't know that this kind of contract language is necessarily the strength of a real estate lawyer. A guy who just does 20 closings a week may not have the right experience.

A good RE lawyer doesn't only do closings. A good RE lawyer is well versed with all of RE law.