A general contractor agreement is, as the name implies, generally an agreement between the owner of real estate and a building contractor for services to manage the construction (and sometimes the design) of a residential or commercial building according to certain specifications or plans provided by the owner.

A general contractor agreement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.

In New Jersey, a general contractor agreement is a legally binding contract that outlines the relationship and obligations between a property owner and a general contractor who is hired to manage construction projects. This agreement typically includes detailed provisions regarding the scope of work, materials to be used, the contractor's responsibilities in hiring and overseeing subcontractors, payment schedules, timelines for project completion, insurance requirements, and the handling of construction liens. New Jersey law requires that contracts for home improvement projects be in writing and include specific information as per the New Jersey Consumer Fraud Act (N.J.S.A. 56:8-151 et seq.). Additionally, the New Jersey Construction Lien Law (N.J.S.A. 2A:44A-1 et seq.) governs the filing and enforcement of construction liens to ensure that contractors and subcontractors are paid for their services and materials. It is important for both parties to clearly understand and adhere to these regulations to protect their respective rights and interests throughout the construction process.