Construction Contract Example

The construction contract It is one of the contracts for the provision of services and this in general is for professional services or business services.

This contract is entered into between a natural person and a legal entity or between two legal entities that can be private companies, civil associations or government institutions.

To carry out the contract between individuals and legal entities or between business or civil legal entities, the procedure directly between the parties and with the intervention of a notary who will draw up a record in relation to the contract.

When it is the case that this contract is carried out by a governmental legal entity, generally a tender is made between several companies, which will present construction projects and budgets, which are valued by government executives, who will make the decision they consider most adequate.

The structure of this contract is that of the simple service provision contract, but you can count on aggregates and annotations in which indispensable principles, restrictions and powers can be established various.

Construction contract example:

CONSTRUCTION CONTRACT

Contract entered into in Mexico City Federal District on July 22, 2013 in which the following appear as parties:

As contractor, C. Luis Javier Pérez Canelo, who said he was Mexican and was originally from Zumpango State of Mexico and a resident of this city with domicile in the house marked with the number 587 of the streets of Manuel Bernal, it indicates that he is 53 years old, married as well as that he indicates that he has no physical debts.

The counterpart is Fidarmex constructora S.A de C.V, which has its fiscal address at Av. Revolución Número 356 Col. Independence in the Del. Azcapotzalco México Distrito Federal, which is represented by C.P. Virgilio Contreras Zarate. In accordance with notarial deed No. 562 held before the 546 notary public of Mexico City D.F. and who identifies himself with his respective Professional ID No. 321654 issued by the SEP.

The contracted party undertakes to carry out the corresponding constructions and movements on the property that will be assigned in this contract, as well as Mr. Luis Javier Pérez Canelo as THE CONTRACTOR, and the company Fidarmex Constructoras S.A de C.V and the company Fidarmex Constructoras S.A de C.V and the representative of him as THE CONTACTED and conforming to the provision of professional services, which they formalize in accordance with the following statements and clauses:

STATEMENTS:

First.- Mr. Luis Javier Pérez Canelo claims to be the sole owner of the “El Encino” property, which is located at 365 Meningitis Street. of the Obrero Libre neighborhood, Azcapotzalco Federal District, located in the La Locura subdivision and which has the following measures and boundaries:

To the north it adjoins Lot No. 363 with an area of ​​52 meters; To the east it is adjacent to another land marked with the number 367 with an adjacent area of ​​52 meters, and to the west with Calle Taqueros with an extension of 75 meters.

Clarification is made that this property and the adjacent ones have access to both streets.

Second.- THE CONTRACTOR certifies the acquisition of said land through a purchase made to the company FraczadosPatito S.A de C.V which is accredited by the deed 654987 that is registered in the Public Property Registry of this city, under number 369 on folio 963, volume 35, dated August 16, 2009. Said deed was granted before Lic. Cesar Padilla Trejo, Notary Public No. 006587 in office in Mexico City D.F, on August 16, 2009.

Third.- THE CONTRACTOR declares to be a fully established company, with all its permits of construction up-to-date and with engineers, workers and machinery in full readiness to carry out the works required.

With the above statements, the aforementioned parties have agreed to enter into a contract for the provision of professional services, which is subject to the following:

CLAUSES:

First.- THE CONTRACTOR undertakes to build a building for commercial and office purposes for THE CONTRACTOR all in accordance with with the plan and design delivered by it, and which is attached to this contract with prior authorization from the authority correspondent.

Second.- The house will be built precisely on the lot mentioned in the sole declaration of this contract.

Third.- THE CONTRACTOR undertakes to construct said building in accordance with the plans and specification of materials that are annexed to this contract, within a period of one year, which will start from the first day of August of the presents year.

Quarter.- THE CONTRACTOR by means of this contract undertakes to deliver to the "CONTRACTOR" through his legal representative the amount of $. 3,500,000.00 (three million five hundred thousand pesos 00/100 national currency), for the purchase of materials and hand of work, and the amount of $ 5000,000.00 (Five million pesos 00/100 national currency) for the concept of fee.

Fifth.- THE CONTRACTOR will receive said amounts in the following way: $ 3,500,000.00 (three million five hundred thousand pesos 00/100 national currency) on August 1, 2013 in account 32568 of Banpatito S.A de C.V that is in the name of Fidarmex constructora S.A de C.V and $ 3,500,000.00 on August 1, 2013 (three million five hundred thousand pesos 00/100 national currency) The third and last payment will be made at the time of completion of the work and upon delivery of the expressed building.

Sixth.- In the event of a breach of the agreement by one of the parties, the offending party must carry out a compensatory payment of $ 1500,000.00 (One million five hundred thousand pesos 00/100 national currency), for the concept of compensation.

The courts of Mexico City Federal District will be competent to hear about any action arising from this contract.

To insure the total amount of this contract, insurance will be purchased corresponding to the total of the amount made in this contract which must be kept with a copy for each of the parts.

The two participating parties sign this contract in the presence of Notary Public 54 of Mexico City Lic. Carlos Padilla Álvaro and two witnesses, Messrs. Eduardo Carrillo Landeros and Leonora Peralta Contreras, who declare that they are Mexican, of legal age, married, of origin and residents of this city, the first residing in the house marked with number 63 of the Calle Capistrano Colonia Natillas Delegación Aculco Mexico D.F, and the second in the house marked with the number 589 department 22 of Calle Allende Delegación Iztapalapa México D.F. both witnesses declare to be honest people and to have their tax payments at the current.

In accordance with the above stipulated, the signatures of the parties, witnesses and the notary are presented.

THE CONTRACTOR THE CONTRACTOR
Signature Signature

Witness 1 Witness 2
Signature Signature

Notary
Firm