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HOME CONSTRUCTION CONTRACT

This Home Construction Contract (Contract) is entered into as of the ______ day of
___________________, 20____, superseding all other oral or written understandings and
proposals, and incorporating the final terms and conditions agreed to between the Buyer and
Builder for construction of a home as further described below (the Work).

THIS CONTRACT HAS IMPORTANT LEGAL CONSEQUENCES THAT BECOME


BINDING UPON EXECUTION. READ ALL OF IT BEFORE SIGNING.

1. PARTIES

A. The Buyer is:


Name(s): Home Phone:
Fax:
Address: Cell Phone:
Work Phone:
Email: Email: ___________________

B. The Builder is:


Name: Work Phone:
Address: Fax:
Email:
Contact: Cell Phone: _____________________

The Buyer and the Builder together are the Parties to this Contract.

2. CONTRACT PRICE.

The total Contract Price for the Home consists of the Base Price (A), plus Additions, (B),
adjusted for Allowances Estimates (C), minus Deletions (D) and minus Work Credits (E) as
follows:

Base Price $_____________________


Additions + $_____________________
Allowance Estimates + $_____________________
Deletions - $_____________________
Work Credits - $_____________________

TOTAL CONTRACT PRICE = $_____________________


Further breakdown of the Contract Price is provided in Exhibit A attached to this Contract.
3. LEGAL DESCRIPTION.

This Contract is for the exclusive use of members of the Metropolitan Builders Association of Greater Milwaukee, Inc. only. Any
use by others is strictly prohibited. Form 105 Copyrighted and Approved by Metropolitan Builders Association of Greater
Milwaukee, Inc. 2012.
A. The Buyer (check one): is the owner of will be acquiring title to the
following Project Site:

Lot ____, Block ______, of _________________ Subdivision, Certified Survey Map No.
____________________, recorded in the office of the __________________County
Register of Deeds as Document No. __________________
having the following street address: _______________________________
_______________________________
on which the Builder will construct the Buyers home (Home). Buyer must provide to the Builder
evidence that Buyer holds a valid title and ownership of this Project Site before construction starts.

B. The Buyer (check one): has provided will provide before construction begins
to the Builder a plat of survey of the Project Site, depicting the location of the Home, and all
recorded or known utilities, easements, restrictions, set back requirements, zoning limitations,
rights of way and other site conditions that may affect the construction of the Home and its
placement on the site. The Buyer represents and warrants that the Home location on the Project
Site as established in the survey is not in a flood plain. Buyer is responsible for furnishing a site
suitable for construction as called for by this Contract. The Buyer holds harmless and indemnifies
the Builder from all liability asserted against Builder by any third party or governmental authority
if the Buyer fails to comply with this Paragraph.

4. PLANS & SPECIFICATIONS.

The Home will be constructed in substantial conformance with the Plans and Specifications
(check one):

furnished by Buyer, who has provided to Builder proof of ownership or a license for their use on
this Project. Buyer agrees to indemnify, defend and hold harmless the Builder, its officers, owners,
shareholders, directors, employees, successors, members, or agents, from third party claims arising
out of or relating to the Plans and Specifications furnished by Buyer and their use on this Home,
including, but not limited to, copyright infringement, unfair competition and unjust enrichment.

furnished by Builder, who has provided Buyer proof of ownership or a license for their use on
this Project. Buyers use or reproduction of the Plans and Specifications furnished by Builder
without Builders prior written consent is strictly prohibited.

Both Parties acknowledge that earlier drafts of the Home designs, and features included in
Builders models or sales literature but not identified in this Contract, will not be of any force or
effect, and that the Plans and Specifications (check one):

dated _________________________ attached to this Contract and initialed by the Parties

are the final Plans and Specifications from which the Home will be constructed.

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5. CONTINGENCIES.

This Contract is contingent on, and construction of the Work will not begin until, the following
Contingencies are fulfilled or waived in writing:

A. Financing Contingency. This Contract (select one):

is not contingent upon Buyer securing financing. This is a cash sale that will be
paid directly by Buyer.

is contingent upon (select one):

(1) the Buyer Builder on Buyers behalf

securing a ______ construction mortgage loan commitment for an amount no less


than $_______________. Delivery of a written loan commitment (even if
conditional) shall satisfy this contingency.

Once the loan commitment is secured, Buyer agrees to promptly and diligently
undertake activities in good faith necessary to secure this financing, including
paying loan and closing costs, signing financing documents necessary to obtain the
mortgage and authorizing the disbursement of loan proceeds for Payments due
under this Contract. Upon execution of the mortgage, which may include rate
adjustment and prepayment clauses, Buyer is responsible to timely pay mortgage
principal, interest and all other required financing costs. Regardless of whether
delay is caused by Builder, Buyer or a third party or the time necessary for Builder
to complete construction of the Home, Builder will not be responsible for any
change in mortgage interest rate.

(2) If a mortgage loan commitment is not obtained within _____ days after this
Contract is signed, either of the Parties may terminate this Contract by giving a
written notice to the other. At that time, any Pre-Construction Payments shall be
refunded to Buyer after subtracting Builders expenses actually incurred in carrying
out Work to the date of notice, including, but not limited to, costs for survey,
building permits, erosion control permit fees, dumpsters, credit report, required
Project Site tests, Plans and Specifications, Buyer selection coordination and other
Work activities, together with a Builders markup for its management activities of
____%. If these Builder costs exceed Pre-Construction Payments made, the Buyer
will pay the additional costs upon receiving an accounting and documentation from
Builder supporting its costs.

(3) Financing shall be closed at the office of the Buyer's mortgage lender on or
before __________________, 20____, or such other time and place as may be
mutually agreed by the Parties in writing. This closing must occur before
construction begins.

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(4) The Contract Price shall remain in full force and effect only if the mortgage
loan financing is timely closed as provided above, time being of the essence. In the
event it is not, Builder reserves the right to adjust the Contract Price to cover any
increased material and labor costs and will advise the Buyer of the adjustment. If
Buyer does not agree to Contract Price adjustment, Builder may, at its option,
terminate this Contract.

B. Buyers Property Sale Contingency. This Contract:

is contingent upon Buyers sale of other property located at the following address:
_________________________________________________________________________.
Buyer agrees to act with due diligence and in good faith in selling this property.

is not contingent upon Buyers sale of any other property.

C. Lender/Escrow Agent Contingency. If Buyer selects a mortgage lender or an escrow agent


for disbursement of Payments due under this Contract that imposes unduly burdensome
requirements on the Builder, Builder shall notify Buyer in writing of Builders objections before
construction of the Home begins. Buyer shall have seven (7) days after this notification to resolve
these objections. If Buyer fails or is unable to do so, Builder shall have the right to terminate this
Contract. At the time such notice of termination is conveyed to Buyer, any Pre-Construction
Payments shall be refunded to Buyer after subtracting Builders expenses then incurred in carrying
out pre-construction preparations such as survey, building permits, erosion control measures,
obtaining dumpsters, securing credit report, Project Site testing, development of Plans and
Specifications, Buyer Selection Allowances coordination and other Work activities, together with a
Builders markup for its management of these activities of ____%. If these Builder costs exceed
Pre-Construction Payments made, the Buyer will pay the additional costs upon receiving an
accounting and documentation from Builder of the costs.

D. Additional Contingencies. This Contract is further contingent upon:


_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

6. PAYMENT ESCROW.

Regardless of whether financing is required, the total Contract Price will be deposited in a third
party escrow account (Escrow) and disbursed to make Payments to the Builder by an escrow agent
the Parties mutually select. Buyer will pay all fees for creation of and disbursements from the
Escrow, and will timely authorize withdrawals for Payments from the Escrow as required under
this Contract. Construction will not begin until Builder receives written verification that this
Escrow has been established.

7. PAYMENTS.

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A. Pre-Construction Payments

The following Pre-Construction Payment(s) will be made before construction of the Work begins:

At the time this Contract is signed, the Buyer will pay $______________ to the Builder
as a license fee for use of the Plans and Specifications for the Work.

At the time the Escrow is established, $ ________________ will be disbursed from the
Escrow to the Builder for preconstruction administration, materials necessary to commence
construction, Home permits and other preparatory activities required for the Work.

In the event the Buyer fails or refuses to resolve all Contingencies identified in this Contract before
construction of the Work starts, the Pre-Construction Payment(s) shall not be refundable.

B. Construction Payments

The balance of the Contract Price, less Pre-Construction Payments, will be paid as construction
progresses based on Payment Draws (check one):

submitted by Builder to Buyer at the end of each month for Work completed in that
month.

submitted by Builder to Buyer at the start of the following phases of the Work:

(1)

(2)

(3)

(4)

(5)

The Buyer will direct its lender, if any, and the Escrow agent to make payment to the Builder for
completed Work within _____ days after the receipt of each Payment Draw. Builder will give the
Escrow agent lien waivers for the portion of the Work for which payment is made in exchange for
Payment released. If timely payment is not received, Builder may, at its option, stop Work and the
Substantial Completion Date of the Work will be extended by the number of days payment is
delayed.

Buyer must make payment in full of the Contract Price, as adjusted by all Change Orders, before
Buyer may take occupancy of the Home.

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If Buyer fails to make a Construction Payment within ____ days after it is due, Buyer shall pay all
costs of collection, including reasonably attorney fees, incurred by the Builder, together with
interest of 1.5% per month on the outstanding balance until paid in full.

8. CHANGE ORDERS.

Changes modifying the Plans and Specifications may occur during construction when Allowance
items are selected or completed, if the Buyer directs the Builder to add to or remove items from the
scope of Work, and if needed for extras incurred by Builder as required under this Contract.
Buyers Change requests, whether made verbally or in writing, will change the Contract Price.

The method of determining the cost of a Change other than Allowances (the process for
determining cost of Allowances is addressed in Exhibit A, Par. C) will be a lump sum or unit
price amount, provided that such amount is agreed between Buyer and Builder in advance of the
change being performed. If no lump sum or unit price amount is agreed in advance, then the cost
of the Change will be calculated based on total actual cost of the changed materials and labor
necessitated by the Change, together with a Builders markup for its management of the Change
activities of ____%. Builder will provide documentation of the actual cost to Buyer when this
actual cost method is used to establish the amount of the Change.

A written Change Order will be prepared for each Change or group of related Changes,
describing the agreed upon modifications to the scope of Work due to the Change, the amount by
which the Contract Price is increased or decreased for each changed item of Work, and the number
of days added to the time for constructing the Work as a result of the Change. Buyer will pay a
Change processing charge of $_______ for each Change Order issued by the Builder.

Buyer agrees to pay for Changes that increase the Contract Price within _____ days after receiving
a Change Order. Buyer shall pay interest at 1.5% per month plus all costs of collection, including
reasonable attorneys fees incurred by Builder, if Change Orders not timely paid when due.

9. PROJECT SITE CONDITIONS.

The Builder is not responsible for environmental conditions already existing at the Project Site,
including, but not limited to, storm water and wetland issues, contaminated soils, radon, existing
lead paint, asbestos, mold, or any other environmental hazards.

In the event Project Site conditions are encountered that interfere with the construction of the
Work, Buyer agrees to pay as an extra to Builder the cost of additional third-party activities
necessary to address them, including, but not limited to: addressing unstable, abnormal or non-
bearing soil conditions; removal of existing field drain tiles, rocks, boulders, stones, trees or
stumps; providing and trucking fill or cutting to grade; furnace hook up, haying of footings and
foundation, frost breaking and snow removal; additional footings, reinforcing, piers, additional
depth of foundation walls, waterproofing or diversion of water and water pumping; concrete
pumping; and any related costs needed to make the Project Site ready to properly receive the
Work.

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Unless otherwise provided in this Contract, Buyer will not receive a deductive Change Order for
the value of any excess soil removed from the Project Site. Builder will not remove, store or
replace topsoil or other surface objects existing at the Project Site, unless expressly included in the
Plans and Specifications or the Site Allowances.

10. SCHEDULE.

The schedule for completion of the Work will be as follows:

A. Commencement of Work.

There are a number of conditions that must be fulfilled or completed before construction of the
Work may be lawfully and safely commenced. These Commencement Prerequisites include
(check all applicable):

All Contingencies identified in Paragraph 5 above being completed or waived in writing;

Proof of Buyers ownership of the Project Site and a survey being furnished to Builder;

Identification and staking of utilities and easements has been made on the Project Site;

Builder has received satisfactory evidence that the Escrow for Payments has been
established and funded;

Plans and Specifications have been approved by government agencies having authority
over the Work and a building permit has been issued, along with any other required
licenses, permits, and zoning needed for the Work, including architectural control
committee approvals, if any;

Pre-Construction Payment(s) have been made;

Selection of Allowances affecting commencement of Work have been made by Buyer;

Buyer has provided a Builders Risk Insurance Certificate to Builder

Other: _________________________________________________________________.

Commencement of excavation of the Work will occur within _____ days after this Contract is
signed and all the above Commencement Prerequisites are fulfilled or are waived by written notice
from Builder to Buyer.

B. Substantial Completion of Work.

Substantial Completion of the Work is the earlier of: (i) the date when the Work is sufficiently
complete so that the Buyer can, or does, occupy or use the Work for its intended purpose, or (ii)
the date the occupancy permit and any other required approvals are issued by the applicable

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government authorities for use of the Home. Builder agrees to achieve Substantial Completion of
the Work on or before the Completion Date, which will be _____ days after Commencement of
the Work, as adjusted for Delays.

C. Delays.

The Completion Date will be extended because of the following types of Delays: changes to the
scope of Work require schedule extension; delays requested or caused by the Buyer; acts or
omissions of government authorities; inclement weather, including flood, windstorm or other acts
of God; material shortages; delivery and transportation delays; fire; hydrostatic collapse or other
ground movement; labor disturbances, riots, war, or terrorist acts; or any other causes beyond the
reasonable control of the Builder. The Completion Date will be extended on a day for day basis
until the Delay is resolved, plus a reasonable time necessary for take down and restoration of
equipment, provided Builder uses reasonable efforts to mitigate the impact the Delay.

Buyers failure to timely select Selection Allowance Items or to furnish any other information
to Builder required under this Contract in a timely manner are Delays that will extend the
Completion Date.

Within a reasonable time after the Delay occurs, the Builder will notify Buyer if there is an
increase in cost of the Work as a result of a Delay. The Builder will furnish Buyer with
documentation to verify the actual costs arising from the Delay, and Builder will receive an extra
from Buyer for those costs plus a Builders markup equal to ____ % of those costs for its
management related to Delay activities.

11. SUPERVISION OF WORK.

The Builder shall have exclusive possession and control of the Project Site and Home from
Commencement of the Work until the Contract Price, as adjusted by Change Orders, has been paid
in full to the Builder. The Builder also shall have authority over the proper usage, means, methods,
arrangement, sequence of installation, and placement of fixtures, equipment and materials during
construction.

All Work will be completed consistent with Plans and Specifications, and shall be of a quality
meeting the standards of the industry as established in the Construction Industry Quality Standards
published by the Metropolitan Builders Association of Greater Milwaukee, Inc. (MBA). The
Buyer acknowledges, however, that minor variations from Plans and Specifications may be
necessary to properly integrate and construct the Builders Work on the Project Site and within the
Home, and that such adjustments are not a breach of this Contract.

Buyer agrees that the Builder will have the sole authority to direct and supervise Builders
workers, subcontractors and suppliers. Buyer agrees not to issue any instructions, or otherwise
interfere with, Builders subcontractors and suppliers, but will advise the Builder of any issues
related to the subcontractors and suppliers performance of the Work. The Buyer further agrees
not to negotiate with Builders subcontractors or suppliers directly to perform or furnish additional
work on the Home or to hire third party contractors for construction related to the Home, except

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with the Builder's prior consent and in such a manner as will not interfere with the Builder's
completion of Work under this Contract.

12. UTILITIES.

Builder will apply for water, gas, and electric services to be installed at the Project Site in Buyers
name. Buyer agrees to pay for all costs for the installation and use of these utilities during
performance of the Work. Any additional utility services desired by Buyer at the Project Site will
be arranged for and paid by Buyer.

13. INSPECTION.

The Buyer is permitted to inspect the Work at any reasonable time during Builders regular
working hours or such other times as Builder agrees.

CAUTION: THE PROJECT SITE CAN BE A DANGEROUS PLACE. When entering the
Project Site to inspect the Work, the Buyer agrees to adhere to all posted safety requirements and
Builders verbal and written safety instructions. Nevertheless, Buyer and any persons
accompanying Buyer agree their access to and activities at the Project Site are at their sole risk and
Builder is not responsible for any injury or damage to the Work or Project Site caused by Buyer,
those accompanying Buyer during their inspections, or those performing Buyers Work Credit
Items. Buyer will be responsible to take all necessary precautions to insure safety of Buyer, and
any persons accompanying Buyer, as well as those third parties undertaking Work Credit activities
at Buyers request, when at the Project Site.

14. FINAL INSPECTION.

The Parties agree to undertake a final inspection no later than 7 days before the scheduled
Completion Date, as adjusted for Delays. Based upon this inspection, a written Punchlist will be
prepared by the Builder and Buyer identifying items that require touchup, repair and completion to
conform to the requirements of the Plans and Specifications and this Contract. This Punchlist will
further identify the activities Builder will undertake to complete each item. Builder agrees to
promptly complete the Punchlist work, allowing a reasonable time for providing any custom-
ordered materials or special equipment that may be needed to complete the items.

15. CLOSING AND OCCUPANCY.

On the date of final payment or a date thereafter mutually agreed by the Parties, Builder will meet
with Buyer at the Home for an orientation to review proper operation of equipment, and to deliver
keys, garage door openers, operation manuals, warranties and other necessary documentation
relating to transfer of the Home to Buyer. Builder shall prepare and review with Buyer a final
accounting at this closing meeting that identifies all adjustments to the Contract Price, payments
received from the Buyer as of that date, and any balance due Builder or Buyer, which shall be paid
in full at the closing meeting.

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If Buyer should occupy the Home before making full payment due Builder under this
Contract, then Buyer will be deemed to have accepted all Work then installed as is, and all
Contract warranties will be null and void. In such an event, the Builder also may terminate
this Contract and have no further obligation to complete any remaining Work.

16. SIGNAGE AND BUILDER PROMOTIONS.

Buyer agrees to allow Builder to display a construction sign identifying the Builder at the Project
Site. Buyer agrees to allow Builder or its representative to photograph the completed Home and use
the photographs in promotional materials, competition programs, or publications without restrictions
or compensation to Buyer. All such photographs are the property of the Builder. It shall be the
Buyers option to allow use of their names in Builders promotional materials.

17. INSURANCE.

A. Buyers Insurance.

Before construction of the Work begins and until all Payments due under this Contract are made to
the Builder, the Buyer will keep the Project Site and Work insured under a special form builders
risk insurance policy covering losses, including fire (extended coverage) and other physical losses
and damages such as, but not limited to, theft, vandalism, malicious mischief, hydrostatic collapse,
flood, windstorm, falsework, start up and testing, temporary buildings, demolition and debris
removal. The policy shall be in an amount not less than the Contract Price, as adjusted by Change
Orders plus the cost of Work Credits. Buyer will pay for this coverage, including any deductibles
under it, provide Builder with a certificate of insurance evidencing coverage, naming the Builder
as a loss payee, including updated coverage and certificate if the initial coverage expires before
completion of the Work.

If the Buyer does not acquire or maintain this coverage, Buyer assumes all liability for losses to
persons or property arising at the Project Site during construction of the Work. Builder may, at its
option, acquire this coverage. If so, the cost of this coverage will be added as an extra to the
Contract Price and Buyer will pay for it upon Builder providing documentation of its actual cost
and delivery of a certificate of insurance for the builders risk coverage to Buyer.

B. Builders Insurance

Builder will maintain commercial general liability insurance of not less than $1,000,000.00 per
occurrence and $2,000,000 in the aggregate for bodily injury, property damage or other loss to
persons or property to the extent negligently caused by Builder, its subcontractors or suppliers in
performance of the Work. Builder will also maintain workers compensation and employers
liability insurance, as applicable, in amounts as required by law. Builder will pay for these
coverages, including any deductibles under them, and will provide Buyer with a certificate of
insurance evidencing these coverages. Builder shall not be liable for injury, damage or loss in
excess of this coverage, or for any condition or occurrence that is not within the control of the
Builder.

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18. WARRANTIES.

A. Builders Limited Warranty.

After the Completion Date and the Builder has received full and final payment of the Contract
Price, as adjusted and due under the Contract, the Home shall be warranted by Builder under the
following Builders Limited Warranty: The Home will be warranted by the Builder for one year
after the Completion Date pursuant to the MBA Standard Builders Residential Limited Warranty
consistent with the Construction Industry Quality Standards published by the MBA.

After the first year limited warranty expires, the Home (check one):

will be warranted as provided in an insured warranty plan between Builder and Buyer,
after execution of an application for such a plan.

has no supplemental warranty.

B. Supplier/Manufacturer Warranties.

In addition to the Builders Limited Warranty and insured warranty plan, if any, Builder will
assign to Buyer any Supplier/Manufacturer Warranties furnished for fixtures, materials, appliances
and equipment included in the Work no later than at the time of final closing of the Home with
Buyer.

C. Limited Warranty Exclusions.

Buyer acknowledges that Builders Limited Warranty does not cover:

(1) any labor or materials performed or furnished by the Buyer or third parties hired
directly by Buyer, whether for Work Credits or otherwise;

(2) defects caused, in whole or in part by Buyer's improper or insufficient maintenance of


the Home or its equipment and systems;

(3) natural occurrences beyond Builder's control;

(4) misuse of the Home or any of its fixtures and equipment; or

(5) any portion of the Work, fixtures, materials, appliances or equipment covered by
Supplier/Manufacturer Warranties assigned by Builder to Buyer.

The Contract Price has been set in reliance that the limited warranties provided in this Contract are
the sole and exclusive remedies provided for all defects, errors and omissions in the Work. NO
OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF
MERCHANTABILITY, USE, HABITABILITY, AND FITNESS FOR PARTICULAR

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PURPOSE OR ANY STATUTORY WARRANTIES SHALL APPLY TO THE WORK AND
THE HOME, and Buyer acknowledges that all such other warranties are hereby waived.

19. NOTICE OF DEFECTS AND RIGHT TO REPAIR.

Buyer shall give the Builder written notice of defects, regardless of the cause or source, promptly
upon Buyer's discovery of them during performance of the Work, during the period covered by
Builders Limited Warranty and any other warranties provided under this Contract. After
occupancy, Buyer will also provide reasonable access to the Home during Builders regular
working hours to permit investigation, testing and examination of defect claims. If the defect is
covered by the Builders Limited Warranty furnished under this Contract, then Builder shall be
given reasonable access to the Home and a reasonable time to replace or repair, at Builders
option, the defective Work consistent with the MBA Construction Industry Quality Standards,
which shall be Buyer's sole and exclusive remedy. If the defect is covered by an extended warranty
plan or Supplier/Manufacturer Warranty, the terms and conditions of the applicable warranty shall
control correction of that defect. Buyer hereby waives the right to recover any incidental or
consequential damages arising out of or relating to a defect in, or performance of, the Work, as
well as Builders repairs or replacements under the Builders Limited Warranty.

Builder and Buyer agree to comply with Wisconsin Right to Cure Laws, Wisconsin Statute
Section 895.07, including requirements of notice and providing Builder with a right to repair
before Buyer commences dispute resolution proceedings as provided in this Contract. Buyer
acknowledges that a copy of the Wisconsin Department of Commerces brochure, Wisconsins
Framework for Successful Communications Between Consumers and Contractors, has been given
to the Buyer on or before the date this Contract is signed. Buyer and Builder agree to follow these
statutory procedures for giving Builder notice of, and right to correct, defects in the Work.

20. AIR QUALITY.

Caution: Microorganisms, including, but not limited to, mold, mildew, spores, or any other form
of fungi, bacteria, and toxins secreted by them, occur naturally in the environment. They may be
present during or after construction of your Home in its air and on surfaces including wall cavities,
attic, windows, basement, exterior, or any other part of the Home. Concentrations of moisture can
result from cooking, showering, washing or similar water-related activities inside the Home, from
the atmosphere outside the Home, and from the design, construction means and methods, and
materials used in the construction of the Home, including achieving energy efficiency by
construction methods that reduce air infiltration and circulation. This moisture may cause the
presence, growth, release, discharge or dispersal of Microorganisms, which, at certain levels, can
cause deterioration of Home materials, damage to property, health hazards, personal injuries or
other irritant effects, such as skin irritation, respiratory problems and allergic reactions. Likewise,
concentrations of radon released from soil and chemicals released from household furnishings,
appliances, mechanical equipment, personal possessions, and other Home materials may, at certain
levels, cause the same or similar effects. Microorganisms, radon and chemicals occur naturally in
the environment, and as a result, Builder cannot eliminate the possibility that they may be present
or may grow in, on, or about the Home. Buyer may minimize these adverse effects by proper
operation and maintenance of heating, ventilation, air conditioning and dehumidification

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equipment, interior maintenance and cleaning, and exterior maintenance such as, but not limited to,
proper grading, landscaping, painting, and caulking. The Buyer acknowledges that the prevention
of such effects requires specialized plans, specifications, ventilation and construction techniques,
and thereafter, specific building operation and maintenance protocols must be maintained by the
Buyer, all of which add significant costs that are not included the Contract Price.

As a result of these factors, Buyer acknowledges and agrees Builder is not responsible for the
presence, growth, release, discharge or dispersal of the Microorganisms, radon and chemicals at
the Project Site and Home. NOTWITHSTANDING ANYTHING TO THE CONTRARY
ELSEWHERE IN THIS CONTRACT, BUYER RELEASES ALL CLAIMS AGAINST THE
BUILDER, ITS SUBCONTRACTORS, SUPPLIERS AND THEIR OFFICERS,
DIRECTORS, EMPLOYEES AND AGENTS (RELEASED PARTIES), FOR BODILY
INJURY, PROPERTY DAMAGE AND/OR LOSS OF USE ARISING FROM OR
ATTRIBUTABLE TO THE PRESENCE, GROWTH, RELEASE, DISCHARGE OR
DISPERSAL OF MICROORGANISMS, RADON AND CHEMICALS AT THE PROJECT
SITE AND HOME, WHETHER RESULTING FROM BUYERS IMPROPER OR
INADEQUATE OPERATION AND MAINTENANCE OF THE EQUIPMENT SYSTEMS
OR OTHERWISE, EXCEPT, AND NOT INCLUDING, CLAIMS ARISING FROM
WILLFUL OR INTENTIONAL MISCONDUCT OF A RELEASED PARTY. Upon
Substantial Completion, the Buyer assumes sole responsibility to operate and maintain the Home
and its systems, and to comply with all operation and maintenance instructions furnished by
Builder to Buyer.

21. WATER QUALITY AND SUPPLY.

Unless otherwise expressly provided in writing, Builder does not warrant or guarantee the quality
or supply of water at the Home, which includes, but is not limited to: water quality, compliance
with the provisions of the federal Safe Drinking Water Act, as amended, and similar state, county
or local laws or ordinances relating to drinking water, sufficient water supply and pressure, well
capacities, water clarity, water odor, radium and other chemical or mineral levels, or other issues
relating to water quality or supply. Compliance with all applicable water-related laws is Buyer's
responsibility.

22. SUSPENSION.

In the event Work is stopped by any court or public authority, by Buyers instructions, or by
Buyers failure to fulfill Buyers obligations under this Contract, Builder shall have the right to
suspend Work until such conditions are resolved sufficiently to permit Work to safely resume
(Suspension). The Parties will make a good faith effort to resolve the cause(s) of any Suspensions.
If a Suspension lasts for longer than thirty (30) days, Buyer will pay Builder for Work performed
up to the date of Suspension, as adjusted by Change Orders, if any, less any prior Payments. A
Suspension shall not extend the time of any Contract warranties given to the Buyer remain in
effect.

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23. TERMINATION.

If (1) a Suspension lasts longer than _____ days, (2) the Builder elects to terminate based on Buyer
taking occupancy before full payment required under this Contract is made to Builder, or (3) the
Buyer breaches any other material obligations under this Contract, and such breach is not corrected
or resolved within ____ days after written notice is given to Buyer, then the Builder shall have the
right to terminate this Contract. If Builder elects to terminate, the Builder must notify the Buyer in
writing, and have no further obligation to complete the Work.

At the time of termination, if construction of the Home has reached Substantial Completion, the
Buyer shall immediately pay to Builder the entire Contract Price, as adjusted for Change Orders,
less amounts previously paid. If termination of the Contract occurs before Substantial Completion,
the Buyer shall immediately pay to Builder the Actual Cost for all Work then installed and
provided, plus an amount equal to ____ % of the Contract Price for Builders termination fee.

24. DISPUTE RESOLUTION.

Any dispute between the Parties, their spouses, officers, owners, shareholders, directors,
employees, successors, members, assigns or agents, arising out of or relating to this Contract and
its performance, including, but not limited to, its meaning, enforceability, changes, payments,
warranties, or any other disputed terms, rights or obligations, will be resolved using the following
process:

A. Mediation.

Mediation may be requested by the Buyer or the Builder by conveying a written notice to the other
party and the Mediation Service of the MBA (MBA Mediation Service). The mediation will be
conducted by the MBA Mediation Service according to its rules and procedures, to which the
Parties hereby agree to abide. The Parties agree that if mediation is commenced, they will make
good faith efforts to resolve their dispute, or as much of it as reasonably possible, through
mediation. Mediation will not waive or affect the Parties obligation to resolve their dispute by
arbitration in the event a full and final resolution is not reached in mediation.

B. Arbitration.

If neither of the Parties elects to proceed to mediation, or if all or any part of a dispute is not
resolved through mediation (other than enforcement of any insured warranty plan), the Parties
agree to arbitrate their dispute pursuant to, and abide by, the policies and procedures of the MBA
Dispute Resolution Service, unless an alternative dispute resolution process is set forth below:
_______________________________________________________________________________
_______________________________________________________________________________.

If arbitration is undertaken, the decision of the arbitrator(s) shall be binding, final and may be
enforced in accordance with Wisconsin Statutes Chapter 788. The arbitrator(s) may award costs,
including filing fee, and reasonable attorneys fees, to the prevailing party in their sole discretion.

Page 14 of 22
The filing of a lien claim shall not be considered an election by the Builder to waive its mediation
or arbitration rights. Builders filing of, or commencement of an action to foreclose, a Claim for
Lien is not a violation of the duty to arbitrate, provided that the action is stayed and the claims
asserted in the action are resolved by arbitration as provided in this Contract.

If the Parties are directed to arbitrate any dispute and either refuses to submit a claim to arbitration,
fails to abide by the rules adopted by the applicable arbitration body, including payment of
preliminary fees, or fails to abide by the decision of the arbitrators, the non-breaching party shall
be entitled to recover all costs, including reasonable attorneys fees, incurred to compel arbitration
and/or enforce the terms of this Contract. The Parties agree that, in the event the MBA is named as
a party to any dispute between the Parties to challenge the MBAs ability to administer the dispute
resolution process, conduct mediation or arbitration, or to enforce an arbitration decision, the MBA
shall be awarded reasonable attorneys fees and other costs associated with such proceeding if the
claim asserted against MBA is denied.

If the MBA Dispute Resolution Service is selected to administer any dispute between the Parties,
the MBA Dispute Resolution Intake Committee shall have the sole authority to determine whether
any or all of the disputes submitted for resolution are suitable for arbitration; to direct whether the
MBA Construction Arbitration Board or Joint Resolution Process Arbitration Panel is the
appropriate body to hear the arbitration; or to determine whether any or all of the disputes are
better suited for and will be referred to Small Claims Court. The MBA Dispute Resolution Intake
Committee shall also have the authority to decide procedural and jurisdictional matters including,
but not limited to, jurisdictional considerations such as compliance with the notice provisions of
the Wisconsin Right to Cure Laws.

25. SPECIAL CONDITIONS.

Buyer and Builder agree to the following additional Special Conditions:

[List]

26. LIEN NOTICE.

AS REQUIRED BY WISCONSIN CONSTRUCTION LIEN LAW, BUILDER HEREBY


NOTIFIES BUYER THAT PERSONS OR COMPANIES PERFORMING, FURNISHING,
OR PROCURING LABOR, SERVICES, MATERIALS, PLANS, OR SPECIFICATIONS
FOR THE CONSTRUCTION ON BUYER'S PROJECT SITE MAY HAVE LIEN RIGHTS
ON BUYER'S PROJECT SITE AND HOME IF NOT PAID. THOSE ENTITLED TO LIEN
RIGHTS, IN ADDITION TO THE BUILDER, ARE THOSE WHO CONTRACT
DIRECTLY WITH THE BUYER AND THOSE WHO GIVE THE BUYER NOTICE
WITHIN SIXTY (60) DAYS AFTER THEY FIRST PERFORM, FURNISH, OR PROCURE
LABOR, SERVICES, MATERIALS, PLANS OR SPECIFICATIONS FOR THE WORK.
ACCORDINGLY, BUYER PROBABLY WILL RECEIVE NOTICES FROM THOSE
WHO PERFORM, FURNISH, OR PROCURE LABOR, SERVICES, MATERIALS,
PLANS, OR SPECIFICATIONS FOR THE WORK, AND SHOULD GIVE A COPY OF
EACH NOTICE RECEIVED TO THEIR MORTGAGE LENDER, IF ANY. BUILDER

Page 15 of 22
AGREES TO COOPERATE WITH THE BUYER AND THE BUYERS LENDER, IF ANY,
TO SEE THAT ALL POTENTIAL LIEN CLAIMANTS ARE DULY PAID.

A second copy of this Lien Notice is attached as Exhibit B and should be given by the Buyer to
their lender, if any, upon execution of this Contract.

27. ENFORCEABILITY.

If any part of this Contract is found to be unenforceable, it shall not affect the enforceability of the
remainder of this Contract. The failure of either of the Parties to enforce any term or condition of
this Contract shall not constitute a waiver of any other breach of the rights under, and terms or
conditions of, this Contract.

28. SIGNATURES.

The signature of either Buyer (if more than one) after this Contract is signed is sufficient and
binding for execution of Change Orders, identification of Allowance and other selections, notices
or other obligations under the Contract. This Contract is binding on the Parties, their heirs,
administrators, executors, successors and assigns, upon signing.

29. ACCEPTANCE

We have read this Contract carefully before signing, hereby accept its terms and conditions, and
acknowledge receipt of a copy of it.

BUILDER BUYER

BY
BUYER
TITLE

Buyer hereby acknowledges receipt of the Wisconsins Framework for Successful


Communications Between Consumers and Contractors brochure from the Builder.

BUYER DATE

Page 16 of 22
Exhibit A
CONTRACT PRICE.

The breakdown of the Contract Price for the Home consists of the Base Price (A), plus
Additions (B), adjusted for Allowance Estimates (C), minus Deletions (D) and minus Work
Credits (E) as further detailed below:

A. Base Price of Home per Plans and Specifications $

B. Additions.

Buyer agrees to the following Additions to add items of Work not shown or described in the Plans
and Specifications:

Additions Amount Added to


Base Price
_____________________________________ $_____________
_____________________________________ $_____________
_____________________________________ $_____________

TOTAL + $
ADDITIONS

C. Allowances.

Selection Allowances are items of the Work and finishes in the Home that have not been selected
by Buyer at the time this Contract is signed by the Parties, together with any related design
changes necessitated as a result of Buyers choices. Site Allowances are necessary site activities
that are difficult to fully identify until that Work is actually undertaken due to soil conditions,
Home placement, weather, configuration of the Project Site and related issues. The Parties
acknowledge an exact cost for these Allowances, whether Selection Allowances or Site
Allowances, cannot be determined at the time this Contract is signed. The Parties nevertheless
have agreed to identify and include working estimates of Allowance costs in the Contract Price
based on, and generally consistent with, the overall quality of the Home and the information
furnished to the Builder by the Buyer and government authorities about the Project Site as of the
date the Contract is signed.

The Buyer acknowledges that the Builder does not guarantee the final cost of the Buyers
Allowance selections will be equal to or lower than the Allowance Estimated Amounts
identified in this Contract.

(1) Selection Allowances

Page 17 of 22
The final cost of Selection Allowance items will be determined on a cost plus fee basis, comprised
of the total amounts charged by the Builder, its suppliers and subcontractors for the materials
selected and labor furnished for the item, plus Builders fee of _______% of the total of such
amounts.

Within a reasonable time after Buyer selects a Selection Allowance item, Builder will confirm the
final cost of that item and the difference, if any, from the Allowance Estimated Amount listed
below for that item. If the final cost is lower than the Estimated Amount, a credit will be given to
the Buyer reducing the Contract Price by the difference at the final closing before occupancy. If
the actual cost is higher than the Estimated Amount for a Selection Allowance item, the Buyer
will pay the additional amount in excess of the Estimated Amount listed below to the Builder
within ten (10) days after the selection is made and documentation of the Actual Cost is provided
to the Buyer by the Builder.

Allowance Estimated
Amount Added to Base
Selection Allowances Items Price
Appliances $
Light Fixtures
Plumbing Fixtures
Cabinet Hardware
Door Hardware
Bath Accessories
Mirror and Shower Doors
Carpet, Pad & Installation
Vinyl & Installation
Ceramic Tile
Wood Flooring
Decorative Stone
Brick

TOTAL SELECTION ALLOWANCES ADDED TO BASE PRICE $

Page 18 of 22
(2) Site Allowances

The final cost of Site Allowance items will be determined after identification or completion of the
items on a cost plus fee basis, comprised of the total amounts charged by the Builder, its suppliers
and subcontractors for the materials required and labor furnished for the item, plus Builders fee of
_______% of the total of such amounts.

Within a reasonable time days after Site Allowance items are completed, Builder will confirm to
the Buyer the final cost and the difference, if any, from the Allowance Estimated Amounts listed
below. If the final cost of the site activity is lower than the Estimated Amount, a credit will be
given to the Buyer reducing the Contract Price by the difference at the final closing for the Project
before occupancy. If the actual cost is higher than the Estimated Amount for a Site Allowance
item, the Buyer will pay the additional amount in excess of the Estimated Amount listed below to
the Builder within ten (10) days after the final cost is identified and documentation of it is provided
to the Buyer by the Builder.

Allowance
Site Allowance Items Amount Added
to Base Price
Survey $

_____________
__
Home Permits Bonds _____________
Impact Fees ___
Erosion and Sediment
Culvert
Tree & Brush Removal
Stripping Top Soil
Temporary Drive / Culvert
Excavation/Trucking
Garage Fill
Backfill / Gravel
Concrete Pumping
Rough Grading
Sanitary Sewer and Water
Laterals
Storm Sewer Connection
Well, Pump, Hookup &
Wiring
Percolation Tests

Page 19 of 22
Septic System Hookup &
Wiring
Gas Co. Connections
Electric Co. Connections
Dumpster
Cleanup

TOTAL SITE ALLOWANCES ADDED TO BASE PRICE $

TOTAL ALLOWANCE (SELECTION ALLOWANCES + SITE ALLOWANCES)


ESTIMATES $

D. Deletions.

Buyer agrees to the following Deletions to remove items of Work


shown or described in the Plans and Specifications:

Deletions Amount Subtracted From


Base Price
_______________________________ $_____________
_______________________________ $_____________
_______________________________ $_____________
_______________________________ $_____________

TOTAL $
DELETIO
NS

E. Work Credits.

Buyer shall receive Work Credits for the following labor and materials to be performed and/or
supplied by the Buyer or by third parties directly hired by the Buyer:

Work Credit Items Amount of Work Credit


Deducted from Base
Price

$
$
$
$

Page 20 of 22
TOTAL WORK CREDITS $< >

The completed Work Credit Items shall be of a quality reasonably acceptable to the Builder,
consistent with the MBA Construction Industry Quality Standards, so as to permit Builders
remaining Work to be properly and timely completed and integrated into the Home, and Buyer
shall comply with all requirements of Home inspectors or other government agencies having
authority over the Project in providing the Work Credit Items. Buyer acknowledges that
performance of Work Credits must be coordinated with Work being furnished by Builder and that
failure to timely begin and complete the Work Credit Items may cause delay to Builders Work.
Buyer therefore agrees to perform or furnish each Work Credit Item within a reasonable time after
notice from the Builder. If Buyer is unable to do so, Builder will be entitled to an extension of the
Completion Date for the time necessary to adjust Builders performance of its Work, together with
a reasonable amount for costs Builder incurs, to accommodate late performance of the Work Credit
Item(s). Buyer is responsible for obtaining proof of commercial general liability insurance in an
amount sufficient to cover losses arising from their negligence to the extent caused by their
operations at the Project Site, and worker's compensation insurance to the extent required by law,
from all third parties that Buyer retains to perform Work Credit Items.

Buyer agrees to hold harmless and indemnify Builder from all claims of damage or loss to persons
or property, including costs for protection and repair of Builders Work, arising out of or related to
Buyers, its third party contractors and agents negligent acts or omissions in the Home and at the
Project Site arising from the supply and performance of Work Credit Items. Buyer further
acknowledges that Work Credit Items causing damage to Builders Work may void the Builder's
warranty, and Builder will give written notice to Buyer in such event.

F. Total Contract Price.

Based on the Base Price, Additions, Allowance Estimates added to Base Price, and less
Deletions and Work Credits as identified above, the total Contract Price for the Work (which
may be modified hereafter by Change Orders as provided in this Contract) is:

CONTRACT PRICE $

Page 21 of 22
Exhibit B
Lien Notice

AS REQUIRED BY WISCONSIN CONSTRUCTION LIEN LAW, BUILDER HEREBY


NOTIFIES BUYER THAT PERSONS OR COMPANIES PERFORMING, FURNISHING,
OR PROCURING LABOR, SERVICES, MATERIALS, PLANS, OR SPECIFICATIONS
FOR THE CONSTRUCTION ON BUYER'S PROJECT SITE MAY HAVE LIEN RIGHTS
ON BUYER'S PROJECT SITE AND HOME IF NOT PAID. THOSE ENTITLED TO LIEN
RIGHTS, IN ADDITION TO THE BUILDER, ARE THOSE WHO CONTRACT
DIRECTLY WITH THE BUYER AND THOSE WHO GIVE THE BUYER NOTICE
WITHIN SIXTY (60) DAYS AFTER THEY FIRST PERFORM, FURNISH, OR PROCURE
LABOR, SERVICES, MATERIALS, PLANS OR SPECIFICATIONS FOR THE WORK.
ACCORDINGLY, BUYER PROBABLY WILL RECEIVE NOTICES FROM THOSE
WHO PERFORM, FURNISH, OR PROCURE LABOR, SERVICES, MATERIALS,
PLANS, OR SPECIFICATIONS FOR THE WORK, AND SHOULD GIVE A COPY OF
EACH NOTICE RECEIVED TO THEIR MORTGAGE LENDER, IF ANY. BUILDER
AGREES TO COOPERATE WITH THE BUYER AND THE BUYERS LENDER, IF ANY,
TO SEE THAT ALL POTENTIAL LIEN CLAIMANTS ARE DULY PAID.

This copy of the Builders Lien Notice should be given by Buyer to Buyers lender, if any.

Page 22 of 22