Free Church Contract

I. The Parties

This Church Contract ("Contract") is made and entered into on [Month Day, Year] by and between [Your Company Name], a religious organization ("Church"), with a primary place of business at [Your Company Address], and [Contractor’s Name], a firm ("Contractor"), with a primary place of business at [Contractor’s Address]. The Church and Contractor may collectively be referred to as the ("Parties") or individually as a ("Party").

WHEREAS, the Church desires to perform a construction project on its premises located at [Project Location] ("Project");

WHEREAS, the Contractor has the expertise, experience, and resources to complete the Project in accordance with the terms and conditions outlined in this Contract;

WHEREAS, the Parties wish to establish their respective rights and obligations relating to the Project;

NOW THEREFORE, in consideration of the mutual covenants and promises contained herein, the Parties agree as follows:

II. Scope of Work

A. Description of Work

1. Provision of Services: The Contractor shall provide all necessary labor, materials, equipment, and supervision to complete the construction project as specified.

2. Specific Tasks: Tasks include, but are not limited to, demolition, excavation, foundation work, framing, electrical, plumbing, and finishing.

3. Adherence to Schedule: The Contractor agrees to adhere to the Project Schedule, meeting all specified milestones and deadlines.

4. Compliance with Regulations: All work must comply with local, state, and federal building codes and regulations.

5. Permits and Licenses: The Contractor is responsible for securing all necessary permits and licenses required for the project.

B. Changes to Work

1. Documentation of Changes: Any modifications to the scope of work must be documented and approved in writing by both Parties.

2. Approval Before Proceeding: The Contractor shall not proceed with any changes until written approval is received from the Church.

3. Cost and Time Adjustments: Any cost implications and time extensions due to changes must be mutually agreed upon and documented.

C. Quality of Work

1. Standards of Quality: The Contractor shall perform all work in accordance with industry standards and best practices.

2. Inspection and Approval: All completed work will be subject to inspection and approval by the Church or its designated representative.

3. Correction of Deficiencies: The Contractor shall promptly correct any deficiencies identified during inspections at no additional cost to the Church.

III. Payment Terms

A. Payment Schedule

1. Total Contract Price: The total contract price for the Project is [$250,000].

2. Down Payment: A down payment of [$50,000] is required upon signing this Contract.

3. Progress Payments: Payments will be made upon completion of specific milestones: [20]% upon foundation completion, [30]% upon framing completion, [30]% upon substantial completion, and the final [20]% upon project completion and final inspection.

4. Final Payment: The final payment will be made after the project passes final inspection and approval by the Church.

B. Invoice and Payment

1. Submission of Invoices: The Contractor shall submit invoices upon completion of each specified milestone.

2. Payment Terms: The Church agrees to make payments within [15] business days of receiving the invoice.

3. Late Payment Penalties: Late payments will incur an interest charge of [1.5]% per month on the outstanding balance.

4. Payment Methods: Payments can be made via check, bank transfer, or other agreed-upon methods.

C. Retainage

1. Retainage Amount: The Church may withhold a retainage of [5]% from each progress payment.

2. Release of Retainage: The retainage will be released upon satisfactory completion of the entire Project, including final inspections and approvals.

IV. Timeline

A. Project Schedule

1. Start Date: The construction project is expected to start on [Month Day, Year].

2. Completion Date: The completion date shall be no later than [Month Day, Year], barring any approved extensions.

3. Milestones: Key milestones include foundation completion, framing completion, rough-ins completion, and substantial completion.

4. Regular Updates: The Contractor shall provide regular updates on progress and any potential delays.

B. Delays and Extensions

1. Unforeseen Circumstances: Delays caused by unforeseen circumstances must be documented and promptly communicated to the Church.

2. Extension Requests: Requests for extensions must include justification and be submitted to the Church for approval.

3. Penalties for Delays: Penalties for late completion may be negotiated and included in a written amendment to this Contract.

C. Accelerated Work

1. Request for Acceleration: If the Church requests an accelerated schedule, the Contractor shall provide an estimate of additional costs and feasibility.

2. Agreement on Terms: Any agreement to accelerate the work must be documented and signed by both Parties.

V. Obligations of the Parties

A. Church’s Obligations

1. Access and Utilities: The Church will provide access to the premises and any necessary utilities for the Contractor to perform the work.

2. Review and Approval: The Church will review and approve project plans and any subsequent modifications in a timely manner.

3. Timely Payments: The Church will make timely payments as specified in the Payment Terms section.

4. Designated Representative: The Church will designate an authorized representative to communicate and make decisions on its behalf.

5. Site Safety: The Church will ensure the site is safe and free from any hazards that could impede the Contractor's work.

B. Contractor’s Obligations

1. Professional Performance: The Contractor will perform the work in a professional manner and in accordance with industry standards.

2. Progress Updates: The Contractor will provide regular updates on the progress of the work and any potential issues.

3. Rectification of Issues: The Contractor will address and rectify any issues or defects discovered during or after project completion.

4. Site Cleanliness and Safety: The Contractor will ensure the site is kept clean and safe during the construction process.

5. Compliance with Laws: The Contractor will comply with all applicable laws, regulations, and building codes.

C. Coordination and Communication

1. Regular Meetings: The Parties agree to hold regular meetings to discuss progress, issues, and any necessary adjustments to the Project.

2. Point of Contact: Each Party will designate a point of contact for all communications related to the Project.

3. Issue Resolution: Both Parties will work collaboratively to resolve any issues or disputes that arise during the Project.

VI. Warranties

A. Contractor’s Warranty

1. Warranty Period: The Contractor warrants that all work performed will be free from defects for a period of [12] months from the date of completion.

2. Rectification of Defects: Any defects identified within this warranty period will be rectified by the Contractor at no additional cost to the Church.

3. Quality of Materials: Materials and equipment used in the Project will be new and of good quality unless otherwise specified.

4. Workmanship Warranty: The Contractor warrants that all workmanship will meet industry standards and best practices.

5. Extended Warranties: Any manufacturer’s warranties on materials or equipment will be passed on to the Church.

B. Exclusions

1. Damage by Others: The warranty does not cover damage caused by misuse, neglect, or unauthorized modifications made by the Church or third parties.

2. Wear and Tear: Normal wear and tear, as well as force majeure events, are excluded from this warranty.

3. Maintenance Neglect: Defects resulting from the Church’s failure to properly maintain the completed work are not covered.

C. Warranty Claims

1. Notification of Defects: The Church must notify the Contractor in writing of any defects discovered during the warranty period.

2. Inspection and Repair: Upon receiving notice, the Contractor will inspect the defect and, if covered, will repair or replace the defective work within a reasonable timeframe.

3. Dispute Resolution: Any disputes regarding warranty claims will be resolved in accordance with the Dispute Resolution section of this Contract.

VII. Insurance and Liability

A. Insurance Requirements

1. General Liability Insurance: The Contractor must maintain general liability insurance coverage of at least [$1,000,000] during the term of the Project.

2. Worker’s Compensation Insurance: The Contractor must carry worker’s compensation insurance in compliance with local regulations.

3. Proof of Insurance: Proof of insurance shall be provided to the Church before the commencement of work.

4. Additional Insured: The Church shall be named as an additional insured on the Contractor's insurance policies.

5. Insurance Continuity: The Contractor shall ensure continuous insurance coverage throughout the duration of the Project.

B. Liability

1. Contractor’s Liability: The Contractor shall be liable for any damage to the Church's property resulting from the Contractor's negligence.

2. Church’s Liability: The Church shall not be liable for any injuries or accidents that occur on the construction site, except as resulting from its own gross negligence.

3. Indemnification: Both Parties agree to indemnify and hold each other harmless from any claims arising from their respective acts or omissions.

4. Damage to Equipment: The Contractor is responsible for any damage to its equipment or materials while on Church property.

5. Third-Party Claims: The Contractor shall defend and indemnify the Church against any third-party claims arising from the Contractor’s work.

VIII. Termination

A. Termination for Convenience

1. Notice Period: Either Party may terminate this Contract for convenience by providing [30] days' written notice to the other Party.

2. Payment for Work Completed: If terminated by the Church, the Contractor shall be paid for all work completed up to the date of termination.

3. Replacement Contractor: If terminated by the Contractor, the Church shall have the right to engage another contractor to complete the work.

4. Return of Materials: Upon termination, the Contractor shall return any materials or equipment belonging to the Church.

5. Settlement of Accounts: Both Parties shall settle all outstanding accounts and payments upon termination.

B. Termination for Cause

1. Grounds for Termination: Either Party may terminate this Contract for cause if the other Party fails to perform its obligations under this Contract.

2. Notice and Cure Period: Written notice specifying the cause for termination must be provided, and the defaulting Party must be given [14] days to cure the default.

3. Failure to Cure: If the default is not cured within this period, the non-defaulting Party may terminate the Contract without further obligation.

4. Compensation for Damages: The non-defaulting Party may seek compensation for any damages incurred due to the default.

5. Retention of Rights: Termination for cause does not waive any rights or remedies available to the non-defaulting Party under this Contract or applicable law.

C. Suspension of Work

1. Right to Suspend: The Church may suspend the work for its convenience by providing written notice to the Contractor.

2. Resumption of Work: Upon resumption of work, the Contractor shall be entitled to an equitable adjustment in the schedule and contract price.

3. Mitigation of Costs: The Contractor shall take all reasonable steps to mitigate costs during the suspension period.

4. Documentation: The Contractor must provide documentation of any additional costs incurred due to the suspension.

IX. Dispute Resolution

A. Mediation

1. Initial Dispute Resolution: In the event of a dispute arising under this Contract, the Parties agree to first attempt to resolve the dispute through mediation.

2. Selection of Mediator: A neutral third-party mediator shall be selected jointly by the Parties.

3. Location and Costs: The mediation process shall be conducted in [State Name], and each Party shall bear its own costs.

4. Mediation Timeline: The mediation shall commence within [30] days of the dispute notice and conclude within [60] days unless otherwise agreed.

B. Arbitration

1. Binding Arbitration: If mediation fails to resolve the dispute, the Parties agree to submit the dispute to binding arbitration.

2. Arbitration Rules: The arbitration shall be conducted under the rules of the [American Arbitration Association].

3. Final Decision: The decision of the arbitrator shall be final and binding on both Parties.

4. Arbitration Costs: The costs of arbitration shall be shared equally by the Parties unless otherwise awarded by the arbitrator.

5. Enforcement of Award: The arbitration award may be enforced in any court of competent jurisdiction.

C. Litigation

1. Jurisdiction: If arbitration is not feasible, any legal action arising out of this Contract shall be filed in the courts located in [State Name].

2. Attorney’s Fees: The prevailing Party in any legal action shall be entitled to recover its reasonable attorney’s fees and costs.

X. General Provisions

A. Governing Law

1. Applicable Law: This Contract shall be governed by and construed in accordance with the laws of the State of [State Name].

2. Legal Venue: Any legal action arising out of this Contract shall be filed in the courts located in [State Name].

3. Conflict of Laws: Any provision of this Contract that conflicts with applicable law shall be modified to conform to such law.

B. Entire Agreement

1. Complete Agreement: This Contract constitutes the entire agreement between the Parties regarding the subject matter herein.

2. Amendments: No amendments or modifications shall be valid unless made in writing and signed by both Parties.

3. Previous Agreements: This Contract supersedes all prior agreements, negotiations, and understandings between the Parties.

C. Severability

1. Validity of Provisions: If any provision of this Contract is found to be unenforceable or invalid, the remaining provisions shall remain in full force and effect.

2. Modification of Provisions: The unenforceable provision shall be modified to the minimum extent necessary to make it enforceable, consistent with the Parties' original intent.

3. Severability Clause: Each provision of this Contract is severable and distinct from the others.

D. Notices

1. Method of Notice: All notices required or permitted under this Contract shall be in writing and sent to the respective addresses of the Parties.

2. Effective Delivery: Notices may be delivered by hand, certified mail, or email, and shall be deemed effective upon receipt.

3. Change of Address: Each Party may change its address by providing written notice to the other Party.

4. Notice of Dispute: Any notice of dispute must include a detailed description of the issue and any supporting documentation.

XI. Signatures

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

Church

[Authorized Representative Name]

[Your Company Name]

Date: [Month Day, Year]

Contractor

[Authorized Representative Name]

[Contractor's Name]

Date: [Month Day, Year]

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