Demolition Contract Samples Explained: What You Need to Know

Demolition Contract Defined

Demolition contracts are legally binding agreements between companies and individuals outlining the specifics of a planned demolition project. Comprising key components such as scope, timeline, and conditions, a well-drafted demolition contract forms the basis of a successful project, establishing a clear understanding between the involved parties and laying out the obligations of each member of the workforce. Demolition contracts often stipulate information such as the demolition procedure, disposal and recycling, temporary work, and details about the handling of hazardous or contaminated building materials.
While actual demolition activities may be fast-paced events , the planning that occurs prior to the start of construction is lengthy and often laborious. Before demolition can even begin, various agencies and departments must be consulted and in some cases, approval must be sought. Often, environmental studies must also be performed prior to the demolition, and a demolition contract may touch on certain aspects of these preliminary stages.
Demolition contracts function to protect all parties involved in a demolition project by ensuring that everyone understands their precise role, responsibility, and timeline requirements regarding the job. From basic contracts to more separate and detailed contracts or master contracts, demolition contracts make up a vital part of a demolition project and should never be overlooked.

Components of a Demolition Contract

Demolition contracts include a number of critical elements that need to be included to protect everyone involved with the project. These contracts don’t just include general terms—there are several specific clauses that you need to have. Here are just some of the key components you should always look for:
Scope of Work
What’s included in the scope of work? This should outline exactly what is being done by the contractor. Some important notes include timelines, the materials that will be used and how the area will be cleaned up after. This is the most detailed section—you could likely use a demolition contract sample to get a good idea, but be sure to include all relevant details. An experienced contractor will provide a complete description of the demolition work and won’t hesitate to spend a little extra time on this section.
Timeline
When will work begin and end? Will it be done in stages? What happens if there are delays due to weather or other factors? It’s critical that you include all of the relevant start and stop dates so there are not any disputes later on. It may be best to include penalties for delays—but negotiating these situations up front can save you time and expense in the future.
Payment Terms
How much will the demolition cost and when will it be paid? You should never sign a contract without knowing how much you’re going to pay and when. This should be detailed clearly in the contract. Some contracts will include a payment schedule that outlines each stage of work, while others may have some variance in the amount due with each stage.
Field Verification
Finally, it’s critical that your contractor complete a site visit prior to signing a demolition contract. This will help you and your contractor verify that everything included in the contract is accurate, including pricing. Additional work or additional issues may need to be addressed early on and having a field verification can help everyone stay on the same page.

Legalities in a Demolition Contract

Multiple demolition contract samples are available to provide either the general contractor or property owner with a wealth of information about the forthcoming relationship. While a demolition contract sample may be identical in its specific wording to the contract eventually signed, the two parties will then be legally bound by that agreement; therefore, it is strongly recommended to consider every detail prior to signing the contract.
The following demolition contract legal issues should be considered when drafting or approving a demolition contract: Compliance with Local Laws and Regulations A general contractor should review every local ordinance that may impact the demolition process, as these factors might cause the original contract to deviate significantly. The general contractor can be held responsible for fines caused by non-compliance with local laws.
Environmental Concerns Demolition contracts often include provisions mandating compliance with all federal and state rules regarding the proper disposal of hazardous materials, asbestos abatement and other environmental considerations.

Samples of a Demolition Contract

Demolition contracts often consist of multiple subsections, each providing various clauses explaining certain requirements for either the demolition contractor or the property owner. As is the case with most construction contract clauses, demolition contract clauses are usually uniform in their wording, depending on the specific details of the demolition type to be performed and its location.
Following are several common demolition contract clauses, as well as a brief description about what they mean and why they are written the way they are.
Contractor will be responsible for furnishing all equipment, tools, labor, and materials. Any materials that are provided by the client that can be used after completion and does not belong to demolition contractor will be returned.
Contractor agrees to request in writing fro any changes or additions to the work to be performed. When the change(s) is approved, contractor will provide an estimate on the cost of any additional work to the client. The estimate must be signed by both parties before any changes or new work can be implemented.
Client will be responsible to pay for building permits, unless specified otherwise in the contract agreement.
Client will be responsible for paying overtime wages. This also applies to demolition contractor overtime, which is paid by contractor.
Any costs associated with sanitary facilities and drinking water will be provided by the client, unless specified otherwise.
Property must be made available to contractor for survey purposes. Contractor will provide a survey to client for review and approval.
Any delays due to client will be subject to a charge. This includes inability to make property available, delayed payments, etc.
Insurance coverage is administered by the property owner. No damage is allowed to the property that is owned by the contractor, unless it’s unavoidable for the contractor to access the property during demolition.

Demolition Contractor’s Role

A demolition contractor performs a specific type of construction work. This type of residential, commercial, industrial, or infrastructure construction is centered around tearing down an existing structure. The term "contractor" can be misleading in this context because it implies that the professional hired to perform the work is separate and distinct from the people who are doing the work. That’s not always the case. Many demolition contractors are also laborers. They provide muscle for their crews. Alternatively, they might supervise the work of others who do the same kind of work but who themselves do not qualify as demolition contractors under local, state, or federal law. While the definition of demolition contractor can vary somewhat, generally speaking, a demolition contractor’s work includes contracting for the demolition of structures and materials as well as the clearing of a lot after demolition. A demolition contractor may do most of the work on a project, or he or she may hire subcontractors to complete certain tasks. If he or she hires subcontractors – specialists who are qualified to work on specific parts of the job – then he or she acts as the general contractor. He or she conversely may act in subcontractor capacity, sharing the work with the general contractor and potentially with other demolition contractors, if any. The demolition contractor, whether he or she is operating as an independent contractor or as an employee of a demolition firm , may or may not have specialized equipment at his or her disposal. Qualifications and skills of those demolition contractors who do more of the work include: If a demolition contractor is required to have additional skills or qualifications, he or she may not be an independent contractor. In addition to license requirements, some states and counties require environmental training or certifications. These states or counties may also prohibit anyone who doesn’t have a general contractor’s license from demolishing structures. It’s important to find out ahead of time whether local regulations affect a demolition contractor’s ability to demolish a building or structure. An experienced demolition contractor knows how to complete a demolition project safely and can do so without conducting unscheduled or unnecessary work. The demolition contractor is familiar with terms, such as "Waste Clearance Permit," "demolition bond," "environmental clearance," and "toxic site closure." He or she also may know how to identify valuable salvage materials and may readily recognize environmental hazards. An inexperienced demolition contractor may waste your time and money by completing tasks that should have been scheduled for later in the process and equally costly, he or she may damage property unnecessarily. These are just a few of the roles that a demolition contractor might take on. Reading through a few RFPs or asking local demolition contractors about their experience levels can help you determine the specific talents, skills, and practices that you need from a demolition contractor.

Making a Demolition Contract Your Own

Demolition contracts should be customized to fit your specific project needs and requirements. Consider these following when adapting a contract for your project: Modifications – A straight demo project is one thing. But when you have to strip out material, dispose of hazardous substances like asbestos, or provide a salvage claim on some of the materials, this should be included in your contract requirements. Be specific. If you don’t know what is required to handle these issues, ask your general contractor or demolition company. Hazardous Substances – Depending on your location, local or state rules may lay out specific processes for handling hazardous materials such as asbestos or lead. If your building may contain hazardous materials, it’s important that you adopt a contract provisions requiring testing and remediation. Mechanical Equipment – The use of hydraulic equipment and machinery is becoming more common because it’s an efficient method of demolishing structures and allows for precision that enables you to identify and remove loads of materials in a timely manner. Consider whether you’ll want to include this type of equipment in your contract. Location – Demolition projects take place all over the U.S., and laws and regulations vary by state. Make sure you include any unique factors or requirements that must be met by law in your contract. This may include dispatching work crews that are qualified or certified under local laws. Your site – Regardless of where you’re located, you may face special considerations unique to your site, such as difficulties with access to the existing structure, utilities that must be capped, and environmental or historical factors. Be sure to include anything relevant to your project in your contract.

Demolition Contract Missteps

In the fast-paced world of demolition, details can get overlooked or brushed under the rug. Unfortunately, these omissions or oversights may lead to costly litigation or have a negative impact on the project at hand. Below are a few common pitfalls that parties should keep an eye out for when drafting or engaging in a demolition contract:
Failing to include comprehensive descriptions of the work to be completed. All parties benefit from providing as much detail as possible regarding the planned scope of work and even contractual expectations. By leaving key details out of the contract and relying on broad language, the parties are setting themselves up for future disagreements and possible litigation.
Failing to adequately allocate risk and responsibilities. Demolition contracts are unique and require clear language to ensure the roles of the involved parties and their agreed upon responsibilities are understood. If party obligations are vague or poorly articulated , the risk of miscommunication is high and the likelihood of some form of litigation increases.
Failing to expressly incorporate industry standards. Whether you have never worked with a demolition contract before or are a seasoned professional, the terms of the contract should expressly incorporate any industry standards applicable to demolition. Failing to do so could mean parties are unfamiliar with the industry standards that relate to the demolition and may cause further issues down the line.
Failing to properly utilize change orders. Change orders are essential when it comes to limiting cost overruns and scheduling conflicts. Even the best-planned demolition contracts can experience post contract issues that can cause delays and additional costs. However, if you do not include a change order mechanism to address scope of work modifications, it can be difficult to properly address such issues.
Not anticipating possible contingencies. Anticipating possible contingencies can help protect the parties from misunderstandings and potential litigation. It is important to address foreseeable issues and include contingency language within the contract to reduce future risk.