AN AGREEMENT FOR LOCAL ROAD IMPROVEMENT
_______________ Township, 19___

This agreement, made and entered into between the township board of ____________ Township, ____________ County, Michigan, referred to herein as parties of the first part (or township); and the Board of ____________ County Road Commission, referred to herein as parties of the second part (or road commission).

Whereas, the parties of the first part desire to accomplish the road improvement of:

(description of project, including name(s) and location(s) of roads to be surfaced)

(Paragraph 1)
It is now therefore agreed, that the parties of the second part will accomplish the following:

(description of work to be performed, including road width and material thickness specifications) and to complete this improvement for the sum of ____________, ( ) for the entire ______ miles.

(Paragraph 2)
It is now therefore further agreed that the parties of the second part will participate in these improvements in the amount of ____________ ( ), and the parties of the first part will deposit in the county road fund of the County of ____________, ten percent of the township’s agreed share at the signing of the contract. Upon deposit of these funds, the parties of the second part will program and complete the above improvements no later than (date) , unless such date is changed by mutual agreement by both parties. All interest earned on these funds from the date of deposit, until such times as ___ percent of the project is completed, shall accrue to the costs of the project.

(Paragraph 3)
It is further agreed that when one-half of the construction work has been completed, the parties of the first part will deposit in the county road fund of the County of ____________, 40 percent of the balance of the agreed contract amount, and the remaining balance to be paid on the completion of the contract.

(Paragraph 4)
It is further agreed that upon completion of the project, the road commission shall bill the township, and the township shall pay to the road commission, any additional cost in excess of the aforesaid cost, provided such excess does not exceed 10 percent of the amount originally agreed to or, in the alternative, has been previously agreed upon by the township. If the project costs, as agreed to, prove higher than actual costs, the road commission shall refund to the township such excess within 30 days following completion of construction. At such time that the road commission presents to the township a final billing for the project, a written accounting of the project’s actual costs shall be provided to the township.