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 York, a general contractor agreement is a legally binding contract between a property owner and a general contractor, outlining the terms under which construction services will be provided. This agreement typically includes detailed provisions regarding the scope of work, materials to be used, the contractor's responsibilities in hiring and managing subcontractors, payment schedules, deadlines for project completion, insurance obligations, and procedures related to mechanic's and materialmen's liens. New York State law requires that home improvement contracts for residential properties be in writing if the cost of the project exceeds $500. The agreement must be clear, understandable, and include specific information as required by the New York General Business Law, Article 36-A (Home Improvement Contracts). Additionally, New York's Lien Law provides a framework for the filing and discharge of mechanic's liens, ensuring that contractors and subcontractors have a mechanism to secure payment for services and materials provided. It is important for both parties to understand their rights and obligations under the agreement and to comply with all relevant state statutes and regulations to ensure the lawful and smooth execution of the construction project.