Demolition Contract

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Updated Apr 16, 2024
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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.

Template Description

Paper named "Demolition Contract," tractor, traffic cones, ruined house

At times, demolishing a building is the simplest and most reasonable way to remove it if it has to be gone. A complete demolition is where your infrastructure or structure is completely removed from your land. There are numerous situations that call for demolition. 

For instance, you could buy a new house that already has a dilapidated barn, and the cost of repairing the barn would be higher than the cost of building a new one. In that case, buyers prefer to remove the old one in order to construct a new one. 

They do this by hiring a demolition contractor and signing a demolition contract. To make sure everything is correct when creating the demolition contract, it’s best to look at a demolition contract template. This is where the demolition contract template from Lawrina comes to the rescue. Learn more about demolition contracts here. 

Using this demolition contract template will help the owner and the contractor establish a written, legal agreement for the demolition project. From the building materials used to the address of the property, everything is included in this demolition contract template that one would need to develop a solid demolition contract. 

Get the most accurate and up-to-date demolition contract sample from Lawrina – a best-in-class legaltech ecosystem offering free and easy access to legal information in the US. 

What Is a Demolition Contract?

A demolition contract is an agreement signed between the contractor and the building’s owner. Typically, a demolition contract template comprises the payment schedule and amount, the particular tasks to be carried out, the materials used in the building, the properties’ addresses, and more. It also outlines the specifics of demolishing each structure. 

For instance, this building contract template consists of the following information that one can use while drafting their own contract: 

  • In-depth information on the structures and the property that will be demolished;

  • The scope of work or the purpose of the project;

  • The starting date as well as the deadline for the demolition project;

  • The equipment and materials to be used; and

  • The amount payable to the contractor and the mode of payment.

The main purpose of using builders contracts templates is to create an agreement that will determine the terms of a demolition project and ensure that the contractor and the client are agreeing upon the terms and are on the same page. 

Creating such a contract with the help of a lawyer or using a commercial construction contract template gives peace of mind, legal protection, and a sense of assurance to both parties. 

Parties of the Demolition Contract

Typically, the parties involved in the demolition contract formats are as follows:

  1. Client/Owner: The person who is in charge of or is in fact the owner of the property or structure.

  2. Contractor: The person in charge of performing the demolition operation, which includes site clearance, preparation, dismantling, and more. 

To assure that the demolition project is finished safely, within budget, and on schedule, it is crucial for both parties to have full-fledged comprehension of their roles and duties in addition to the nature of what needs to be done.

Key Terms

Some of the key terms used in this contract format for construction include the following: 

  • Compensation Details: Quote for the price the client will pay for the goods or service. Additional remuneration information includes the billing date, payment schedule, and late payment penalties.

  • Rules and Restrictions for Demolition: This section should be in every demolition contract template, specifying the rules and regulations (what to do and what not to do).

  • Cancellation Policy: In this section, mention a cancellation policy. Typically, clients must send the contractor a written request to cancel.

  • Cleaning: Describe the cleaning conditions and the cost (if any) here. Leave instructions so that contractors understand precisely how to finish the demolition project. 

  • Liability Limitations: Injuries and accidents can occur during demolition even if all precautions are taken into account. The limitation of liability provision aids in reducing any obligation should such accidents happen.

  • Violation Agreement: This section explains what happens if either party violates the terms and conditions. It allows both the contractor and the client to end the agreement. This clause gives the contractor and the client the authority to terminate the terms of the agreement if something goes not according to the initial plan.

  • Extra Provisions: Sides can always add additional clauses limiting what contractors can and cannot do while bound by the agreement. For example, the client can specify in the contract that the contractor cannot go to certain parts of the house or property.

  • Confidentiality: If the contractor knows the client's important business information or personal property details, a typical independent contractor agreement should include confidentiality restrictions. The contract stipulates that the contractor is prohibited from disclosing, downloading, or trading any confidential information they encounter while doing their duties.

  • Performing Services Clause: The agreement should say that the person hired (and not someone else) has to do the things listed in the agreement and deliver the final results to the client. This means nobody else can be hired to do the work — in other words, no subcontracting exists. 

  • Liability Insurance: The demolition contract template should clearly state that the contractor is responsible for obtaining workers' compensation or liability insurance following industry standards or local laws.

  • Contract Termination: The contract for demolition should include reasons for termination, instructions for notifying the other party about termination, and the date when the termination takes effect. Remember, completing a contract successfully does not mean it has been terminated.

  • Waiver: This clause states that if one party chooses to overlook or forgive a violation of the agreement, it does not mean they also forgive any future violations or breaches of other parts of the agreement.

  • Assignment: Indicate that the contractor must obtain the client's prior written approval to assign any responsibilities under the contract to a third party. 

What Are Demolition Contractors?

Parties called demolition contractors are skilled and highly trained people who partner with owners to dismantle and remove buildings or other structures for a pre-agreed cost. 

A demolition contract template clearly outlines the roles of a demolition contractor. Here is a glimpse of their services or duties: 

    • Clearing and preparing the site;
    • Dismantling or destroying a structure;
    • Disposing of all the waste; and
    • Recycling to limit trash and support the environment. 

These contractors usually have (or rent) all the resources and tools for handling various projects. These projects can include demolishing and reconstructing highways, bridges, and other commercial, residential, and industrial structures. 

Why You Need a Demolition Contract

There are numerous reasons why you should use a demolition contract template to have this agreement in place before commencing the demolition project. These are as follows:

It specifies the purpose of the project

This contract explains what work needs to be done for the demolition project, when it needs to be done, how much it will cost, and what specific services will be provided. This will prevent any disagreements or confusion by making sure that both parties understand the project details clearly.

It outlines and lays forth the expectations

By using a demolition contract template, you will have a clear guide for what needs to be included in the contract for both parties. The contract will cover expectations related to environmental safety, protection, and compliance with all relevant laws and regulations.

This demolition contract template also specifies the contractor's obligations with regard to acquiring licenses, managing hazardous chemicals, and getting rid of waste.

It establishes a communication framework

With a demolition contract, you’ll find that it establishes a channel for information exchange between the customer and the demolition contractor, including status updates, requests for changes, and any problems that may emerge.

To conclude, a contract made using a demolition contract template and then put into effect gives the project a defined framework, protects both parties, and assures regulatory compliance, eventually assisting in ensuring the project is finished safely, effectively, and within budget.

What Should a Demolition Contract Include?

Although our free demolition contract template from Lawrina outlines all the elements to be included in a contract, here are the most important ones to include: 

  1. Project scope –– Outline of the work to be done for the project. 
  2. Payment conditions –– Specifications on the payment conditions, such as the payment schedules, milestones, methods, and overall costs. 
  3. Change orders –– Outline of the procedure for dealing with order modifications due to unanticipated events. 
  4. Insurance liability –– Outline of the obligations of both parties concerning insurance and liability. 
  5. Regulatory compliance & permission –– Regulatory compliance requirements for the demolition project, including any necessary licenses, etc.

Of course, there are various other items to include in your demolition contract, including conflict resolution methods, safety and environmental standards, termination clauses, non-disclosure clauses, and more. A demolition contract template helps you incorporate all these aspects when drafting the document. 

How To Write Demolition Contract

Here are some specific details on how to write a contract for a demolition project: 

  1. Outline the project scope in detail. Highlight the deadline, services to be offered, restrictions, etc. 

  2. Provide all payment details, such as payment milestones, overall project cost, payment schedule, and associated charges. 

  3. Outline and describe both parties' obligations for insurance and liability.

  4. Outline the project’s regulatory compliance, permissions, safety, and environmental requirements, termination clauses, and more. 

  5. Finally, add the signatures and dates of both parties, the owner and the contractor. 

When To Use a Demolition Contract

No matter how big or complicated the demolition project is, ensure having a demolition contract template ready whenever you plan to commence such a project. Whether it's commercial, residential, public works, or industrial demolition, a legal contract must be binding for both parties under mutual terms and agreement. 

Common Use Cases

From residential to commercial to industrial, demolition contracts are used in various places. Explore this section to uncover the common use cases of this contract: 

  • Commercial Demolition: A free demolition contract is used when commercial places want to destroy their warehouses, offices, or some structures for some reason. 

  • Residential Demolition: These contracts are crucial for anyone wanting to destroy and re-build their home, shed, garage, or other structure. 

  • Industrial Demolition: Industrial operations such as the destruction of refineries, factories, or other facilities necessitate having a demolition contract template to be able to easily draft this agreement. 

  • Public Work Demolition: The use of a free demolition contract becomes paramount for projects like the demolition of highways, bridges, or other buildings.

When Not To Use The Demolition Contract

There are certain circumstances where a demolition contract is unnecessary. So, here is when you should not use the demolition contract template: 

  • The demolition location (site) risks having catastrophic materials. 
  • The demolition project is too simple, a one-day job, or small. For example, demolishing a garden shed. 
  • The terms and agreement for the demolition contract aren’t reasonable or fair.

Also Read

Frequently Asked Questions

What is the purpose of demolition?

The purpose of demolition is to remove a building or structure.

What are the different types of demolition?

The various types of demolition are as follows:

  • Selective and strip-out demolition;
  • Mechanical demolition;
  • Manual demolition;
  • Hydraulic crusher;
  • Induced/controlled collapse using explosives; and
  • Chemical demolition.
What do you need for demolition?

Use a demolition contract template to establish a demolition contract with all parties. Do this to lay forth the project scope and expectations. 

What are the steps before demolition?

Before demolition, the building or structure’s owner has to perform the following operations:

  • Survey the whole structure as well as the land it was built upon; 
  • Remove all the waste and hazardous materials from the building; and
  • Prepare a foolproof demolition plan and outline the safety measures. 
What is a demolition plan?

A demolition plan, or a demo plan, demonstrates the structure that must be destroyed or removed. Also, the demolition plan outlines the items that need to be recycled or salvaged.

How long does building demolition take?

The period needed to demolish a building depends on factors like location and size. However, if all goes right, the demolition can be completed between one and three days.