ADU — New Construction

This proposal covers the construction of a {{adu_sqft}} sq ft {{adu_type}} ADU at {{client_address}}. Scope includes:

Site prep & foundation

• Site survey review, stakeout, and rough grading for building pad

• Excavation for footings and foundation stem walls

• Concrete footings, stem walls, and slab-on-grade per structural plans

• Perimeter drainage and moisture barrier

Framing & envelope

• Framing of walls, floors (if two-story), and roof per approved structural plans

• Roof sheathing, underlayment, and finish roofing (asphalt shingle or flat TPO depending on design)

• Exterior wall sheathing, weather-resistive barrier, and siding (fiber cement or stucco per plans)

• Windows and exterior doors per schedule

Mechanicals

• {{utility_plan}}

• Rough plumbing: DWV system, supply lines, water heater location, laundry connections

• Rough electrical: panel/subpanel, branch circuits, dedicated circuits per NEC

• Mini-split heat pump or central HVAC system with ductwork per design

• Low-voltage rough-in (internet drop, smoke/CO detectors per code)

Interior finish

• Insulation (code-minimum or upgraded per plans)

• Drywall, texture, and paint

• Flooring throughout (LVP, tile, or hardwood per selection)

• Kitchen cabinets, counter, sink, and basic appliance package (range, refrigerator, dishwasher)

• Bathroom(s): tub/shower, vanity, toilet, tile surround

• Interior doors, trim, closet shelving

• Light fixtures and plumbing trim

Closeout

• Final inspections with AHJ (electrical, plumbing, mechanical, building final)

• Certificate of Occupancy or final jurisdictional approval

• Walk-through and punch list

Estimated duration: 5–7 months from permit issuance to Certificate of Occupancy.

• **Month 1:** Site prep, excavation, foundation, foundation inspection

• **Month 2:** Framing, roofing, window install, framing inspection

• **Month 3:** Rough mechanicals, mechanical inspections, insulation

• **Month 4:** Drywall, paint prep, exterior finish

• **Month 5:** Flooring, cabinets, tile, trim, fixtures

• **Month 6:** Punch list, final inspections, CoO

Jurisdictional delays (permit review, inspection backlog, utility connection timing) can add 30–90 days to the critical path. Start date: {{start_date}}. Target substantial completion: {{completion_date}}.

Total contract price: {{total}}

Fixed-price with a progress draw schedule:

• **Deposit: {{deposit}}** — signing; covers plans, permit applications, and site mobilization

• **Foundation: 15%** — upon passing foundation inspection

• **Framing/Dry-in: 20%** — upon passing framing inspection; building weather-tight

• **Mechanicals rough: 15%** — upon passing all rough mechanical inspections

• **Insulation/Drywall: 10%** — upon drywall tape and texture completion

• **Finish installation: 15%** — upon cabinet, counter, tile, and flooring completion

• **Substantial completion: remaining balance** — upon CoO and punch list sign-off

Draws invoiced at milestone achievement, due within 7 business days. Unconditional lien waivers provided at each draw upon payment clearance.

Invoices are due upon receipt. Payments more than ten (10) calendar days past due accrue a service charge of one and one-half percent (1.5%) per month on the unpaid balance, or the maximum rate permitted by law, whichever is less. {{contractor_name}} reserves the right to stop work and preserve lien rights if any progress payment is not received within five (5) business days of the due date. All retained mechanic's lien, stop notice, and bond rights under applicable state law are preserved.

The following items are specifically NOT included in the contract price and are the responsibility of {{client_name}} unless added by written Change Order:

• Permits, plan-review fees, and jurisdictional inspection fees unless explicitly itemized above

• Repair or remediation of pre-existing code violations discovered during the work

• Asbestos, lead paint, mold, or other hazardous material abatement

• Structural engineering, architectural drawings, or third-party design services

• Finish selections, fixtures, or appliances not listed in the itemized scope

• Work on concealed systems (electrical, plumbing, HVAC, framing) beyond the points of connection identified

• Landscaping restoration beyond returning disturbed areas to rough grade

• Post-completion cleaning beyond construction broom-clean

• Design and engineering fees (architectural plans, structural stamps) unless separately contracted with {{contractor_name}}

• Utility connection fees, capacity charges, or impact fees levied by the jurisdiction

• Driveway extension, walkways, or landscaping beyond rough grade

• Solar PV installation

• Appliance upgrades beyond the base package

• Furnishings, window treatments

This proposal is based on the following assumptions. If any assumption is incorrect, the contract price and schedule are subject to adjustment by Change Order:

• Site access is available during normal working hours (7am–5pm, Monday–Saturday)

• Adequate parking is available within 100 feet of the work area

• Electrical power and potable water are available on-site at no cost to contractor

• Existing structural elements, waste lines, water supply, and electrical service are in serviceable condition unless noted

• {{client_name}} will remove personal property, artwork, and valuables from the work area prior to start

• Work is based on a single mobilization; re-mobilization required due to delays outside contractor's control will be billed at current rates

• Site is zoned for ADU and all setback requirements are met on approved plans

• Soil conditions are suitable for a conventional slab-on-grade foundation (geotechnical report if required is separately contracted)

• Utility service capacity exists at the meter; major service upgrades priced separately

Any modification to the scope, specifications, materials, or schedule set forth in this agreement must be authorized in writing as a Change Order signed by both parties before the work is performed. Each Change Order will describe the modified scope, any adjustment to the contract price, and any impact on the schedule. Verbal instructions do not modify this agreement. Additional time and cost associated with unforeseen conditions — including but not limited to concealed rot, asbestos, mold, faulty prior installation, unmarked utilities, or code-required upgrades triggered by the work — will be documented as a Change Order and billed at the rates stated in this proposal or at {{contractor_name}}'s then-current published labor rates, whichever is in effect at the time the condition is discovered.

{{contractor_name}} warrants the workmanship of the installed work for a period of one (1) year from the date of substantial completion. Manufacturer warranties on materials and equipment pass through to {{client_name}} as provided by the manufacturer and are the exclusive source of any material warranty. This warranty does not cover normal wear, abuse, neglect, acts of God, subsequent work performed by others, damage from settlement or movement of the building, or modifications to the installed work performed without written consent. To make a warranty claim, {{client_name}} must notify {{contractor_name}} in writing within thirty (30) days of discovering the alleged defect and allow reasonable access to inspect and repair.

This proposal is valid for 30 days from the proposal date ({{proposal_date}}). Pricing is subject to change after that date due to material market fluctuations and scheduling availability. Acceptance requires signature below and receipt of the deposit amount stated in Payment Terms. Upon acceptance, this proposal, together with any attached specifications and subsequent written Change Orders, constitutes the complete agreement between the parties and supersedes any prior oral or written discussions.

**{{contractor_name}}** — License {{contractor_license}}

By: ________________________ Date: ______________

Print Name: ________________________

**{{client_name}}** — Owner / Authorized Representative

By: ________________________ Date: ______________

Print Name: ________________________

Property Address: {{client_address}}