Demolition Contract Template

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A demolition contract is a legally binding document between a contractor and a client specifically for situations where a building or structure is demolished. Create your legal document out of this template in PDF and submit it wherever necessary.
Demolition Contract

This Demolition Contract (hereinafter referred to as the "Contract") is entered into on   (the "Effective Date") by and between

 , an individual registered at   (hereinafter referred to as the "Owner"), and

 , an individual registered at   (hereinafter referred to as the "Contractor"), collectively referred to as the "Parties" and individually as a "Party".

 

WHEREAS the Owner possesses specific real property (hereinafter referred to as the "Building");

WHEREAS the Owner desires to retain the services of a competent contractor to undertake the demolition of this Building;

WHEREAS the Contractor possesses the necessary qualifications, experience, equipment, staff, expertise, and ability to complete this demolition;

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and promises herein contained, and other good and valuable considerations, the Parties do hereby agree as follows:

Subject of the Contract

The Contractor shall provide demolition services of the Building as described herein (the "Services"), and the Owner shall pay for the Services rendered.

The Building is located at  .

The Owner legally possesses the Building and has the necessary rights to authorize its demolition. The Owner shall provide proof of ownership or relevant authorization for demolition upon the Contractor's request.

Scope of the Services

The Contractor shall provide the following Services:

Demolition schedule

The Contractor commits to complete the scope of the Services according to the following schedule (hereinafter the "Demolition Schedule"): 

Start date:  

Completion date:  

Work site

The Contractor is competent and has the necessary equipment, tools, materials, expertise, and personnel to undertake the demolition in accordance with this Contract.

The Owner shall provide the Contractor with the land and premises necessary for the performance of the Contract (the "Work Site").

The Contractor shall, at their expense, deliver and unload all equipment and materials necessary for carrying out the Contract at the Work Site. The Owner shall not be liable for the safety and storage of the equipment and materials.

Upon completion of the Services, the Contractor shall remove the equipment and materials at their expense, clean the site, and return it to the Owner in a satisfactory condition.

Permits and requirements

The Parties acknowledge and agree that they are responsible for obtaining all necessary permits, licenses, and approvals required for the proper execution and completion of the Services in compliance with applicable laws, rules, and regulations.

The Parties make reasonable efforts to obtain the required permits in a timely manner, allowing for the scheduled Start Date of the demolition. Delays or complications arising from the Party's failure to obtain permits in a timely manner may result in adjustments to the Demolition Schedule and additional costs that should be agreed upon by the Parties in writing.

The Parties shall initiate and complete all permit application procedures with the appropriate local authorities and provide each other with copies of the permits, licenses, and any other documents before the commencement of demolition.

The Contractor reserves the right to subcontract the Services or part of the Services to third parties upon the Owner's written approval. The Contractor shall be liable for the overall safety, quality, and completion of the Services. 

The Contractor will coordinate with the Owner on all matters relating to demolition requirements and completion; demolition operations shall be undertaken under the supervision of an authorized Owner's representative.

The Contractor shall ensure that no structure is left in a dangerous condition that may cause direct harm to nearby residents.

Insurance

The Contractor shall, at their expense, obtain and maintain in full force and effect the insurance to protect the Parties from claims set forth below, which may result in the Contractor's activities and for which the Contractor may be legally liable:

  • Claims under employee compensation and disability benefits for damages due to bodily injury, occupational sickness or disease, or death of the Contractor's employees.

  • Claims for bodily injury or property damage arising out of completed demolition operations.

  • Claims involving contractual liability insurance applicable to the Contractor's obligations.

Consideration

In consideration of the successful completion of the Services and the fulfillment of all of the Contractor's obligations under this Contract, the Contractor shall be entitled to receive a payment equal to   (the "Contract Price"). The Contract Price shall include payments for the agreed services, all necessary equipment usage, removal and disposal of debris due to the demolition activities, and taxes.

If any additional activities or equipment are necessary for the performance of this Contract, the Contractor shall provide the Owner with a detailed description of such activities or equipment and a calculation of extra fees in advance and obtain the Owner's written consent for such activities or equipment.

The payment should be made within   business days after successful completion of the Services.

The payments should be made by cash

Warranties

Each Party to this Contract hereby represents and warrants to the other Party that they have the full right, power, and authority to enter into and perform this Contract and that its execution has been duly authorized by all necessary actions.

Liability

The Contractor shall indemnify and keep the Owner fully indemnified against all actions, claims, proceedings, liabilities, costs, expenses, and losses, including but not limited to direct, indirect, and consequential loss of profit suffered or incurred by the Owner in relation to the execution or breach of the Contract by the Contractor to the extent that such breach is attributable to the acts or omissions of the Contractor.

Term and termination

This Contract shall remain in full force and effect until  

Each Party has the right to unilaterally terminate this Contract for no cause upon   days prior written notice to another Party. In case the Owner terminates the Contract for no reason, all non-disputed amounts for the part of Services rendered as of the termination of the Contract on a pro-rata basis should be paid to the Contractor.

Each Party may terminate this Contract in case of material breach by another Party. 

For the purpose of this Contract, a material breach includes a failure to perform obligations under this Contract and a violation of payment terms and conditions.

If the Party materially breaches the Contract, the other Party shall have the right to terminate the Contract immediately by sending a written notice of termination and demand reimbursement of damages.

Other conditions of termination. Either Party may terminate this Contract immediately upon written notice if the other Party is declared bankrupt, files for bankruptcy, ceases to function or conduct operations in the normal course of business, or makes an assignment for the benefit of its creditors.

Notices

Any notice, request, demand, or other communication required or permitted to be given under this Contract shall be in writing and shall be deemed duly given either if delivered personally or sent by registered mail, return receipt requested, postage prepaid, reputable overnight delivery service to the address set forth below, or if an electronic copy of it is delivered to the email address set forth below, or such other address or email address as either Party may designate by written notice to the other Party:

If to the Owner:

Attn.  

 , USA 

 

If to the Contractor:

Attn.  

 , USA 

 

Governing law and dispute resolution

This Contract will be governed by and construed in accordance with the laws of the State of  , except for its conflict of laws principles.

Any action or proceeding arising out of or relating to this Contract or its breach shall be brought exclusively in the courts located in the State of  . The Parties hereby submit to the jurisdiction of such courts and waive any objection to venue in such courts.

Force majeure

The Party affected by force majeure shall not be deemed to be in breach of this Contract or otherwise be liable to the other by reason of any delay in performance or non-performance of any of the obligations under this Contract, to the extent that the delay or non-performance is due to any force majeure of which one Party has notified the other Party as agreed hereinafter. The time for the performance of that obligation shall be extended accordingly. If any force majeure occurs in relation to either Party that affects or is likely to affect the performance of any of the obligations under this Contract, one Party shall notify the other Party within a reasonable time as to the nature and extent of the circumstances in question and their effect on their ability to perform.

"Force majeure" means earthquake, flood, storm, other acts of God, war, emergency, accident, industrial strike, acts of Government, or other impediment, which the affected Party proves was beyond their control and that they could not reasonably be expected to have taken the impediment into account at the time of the conclusion of this Contract or to have avoided or overcome it or its consequences.

Miscellaneous

Severability. If and to the extent any provision of this Contract is held illegal, invalid, or unenforceable in whole or in part under applicable law, such a provision or such portion thereof will be ineffective as to the jurisdiction in which it is illegal, invalid, or unenforceable to the extent of its illegality, invalidity, or unenforceability. The illegality, invalidity, or unenforceability of such a provision in that jurisdiction will not affect the legality, validity, or enforceability of such a provision or any other provision of this Contract in any other jurisdiction.

Entire agreement. This Contract is a complete and exclusive agreement between the Parties with respect to the subject matter hereof, superseding any prior agreements and communications, both written and oral, regarding such subject matter.

Amendments. This Contract may only be modified, or any rights under it waived, by a written document executed by both Parties.

Binding effect. This Contract shall be binding for the Parties and their respective permitted successors and assigns.

IN WITNESS WHEREOF, the Parties have executed this Contract as of the Effective Date.

THE OWNER

THE CONTRACTOR

 

 , USA 

 

 

________________________
(Place for signature)

 

 

 

 , USA 

 

 

________________________
(Place for signature)

 

 

Written by Karyna Pukaniuk - Reviewed by Kateryna Adkham

What Is a Demolition Contract?

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A demolition contract is a legally binding agreement between a property owner and a contractor that outlines the terms and conditions for the demolition of a structure. This contract guarantees that both parties have a clear understanding of the project's scope, responsibilities, timelines, and costs. A demolition contract template can simplify the process, confirming all required elements are addressed.

When Should I Use a Demolition Contract?

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You should use a demolition contract when:

  • Plan to demolish a residential, commercial, or industrial structure.

  • Engage a contractor for site clearance or the removal of specific building components.

  • The project involves hazardous materials, such as asbestos, requiring specialized handling.

  • Seek to define clear terms to prevent misunderstandings or disputes.

Having a detailed demolition contract in place helps protect both parties, ensuring compliance with local regulations and safety standards.

What Should I Include in a Demolition Contract?

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A comprehensive demolition contract should include:

  • Parties Involved: Full names and contact information of the property owner and the contractor.

  • Project Description: Detailed scope of work, including the structure(s) to be demolished and any specific requirements.

  • Timeline: Start and completion dates, including any milestones or deadlines.

  • Payment Terms: Total cost, payment schedule, and accepted payment methods.

  • Permits and Licenses: Responsibility for obtaining necessary permits and ensuring compliance with local laws.

  • Site Conditions: Pre-demolition site assessment and post-demolition cleanup responsibilities.

  • Insurance and Liability: Proof of insurance coverage and clauses outlining liability for damages or injuries.

  • Termination Clause: Conditions under which the contract can be terminated by either party.

Including these elements ensures that the contract for demolition is clear, enforceable, and tailored to the project's specific needs.

How To Strengthen My Demolition Contract

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To improve the effectiveness of your demolition contract, consider adding the following optional clauses:

  • Change Orders: Procedure for handling changes to the scope of work, including documentation and approval processes.

  • Force Majeure: Terms outlining how unforeseen events (e.g., natural disasters, labor strikes) affect project obligations.

  • Dispute Resolution: Methods for resolving disagreements, such as mediation or arbitration.

  • Warranties: Any guarantees provided by the contractor regarding workmanship or materials.

  • Salvage Rights: Clarification on who retains ownership of materials salvaged during demolition.

Incorporating these clauses can provide additional clarity and protection for both parties involved.

How Do I Draft a Demolition Contract

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To draft an effective demolition contract:

  1. Use a Template: Start with a demolition contract template to guarantee all standard provisions are included.

  2. Customize the Details: Tailor the template to reflect the specific project's requirements, including scope, timelines, and payment terms.

  3. Consult Legal Counsel: Review the contract with a legal professional to ensure compliance with local laws and regulations.

  4. Obtain Signatures: Have both parties sign the finalized contract, and provide copies to all involved stakeholders.

Utilizing a demolition contract template simplifies the drafting process, providing that all essential aspects are covered and reducing the risk of omissions.

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