Alabama construction independent contractor agreement template

Alabama Construction Independent Contractor Agreement

This Alabama Construction Independent Contractor Agreement (the "Agreement") is made and entered into as of this [Date], by and between:

[Client/Owner Name], residing at [Client/Owner Address], hereinafter referred to as "Client," and

[Contractor Name], residing at [Contractor Address] and holding Alabama State Business License Number (if applicable) [Contractor License Number], hereinafter referred to as "Contractor."

Scope of Work:

Option A: The Contractor shall perform the following construction services (the "Work") at the property located at [Project Site Address]: [Detailed Description of Work, including reference to blueprints or project documents, e.g., "Construction of a single-family residence according to the plans and specifications attached as Exhibit A," or "Renovation of the kitchen and two bathrooms as detailed in Exhibit B."]

Option B: The Work shall consist of [Nature of Work, e.g., "residential renovation," or "commercial new build"], and include the following tasks and deliverables:

• [List of Tasks and Deliverables, e.g., "Demolition of existing structure," "Framing and roofing," "Installation of electrical wiring and plumbing," "Final inspection and sign-off."]

Option C: Phasing, Milestones, and Timeline:

• Phase 1: [Description of Phase 1], Deadline: [Date]
• Phase 2: [Description of Phase 2], Deadline: [Date]
• Phase 3: [Description of Phase 3], Deadline: [Date]

The Work shall be performed in a workmanlike manner, meeting all applicable performance standards required by Alabama construction codes.

Work Scheduling:

Option A: The Contractor shall perform the Work during the following days and hours: [Days and Hours, e.g., "Monday through Friday, 8:00 AM to 5:00 PM"].

Option B: The Contractor shall have access to the property during reasonable hours, subject to prior notification to the Client.

Option C: The Contractor shall provide weekly/bi-weekly/monthly progress reports to the Client.

Option D: Weather Delay Policy: Delays due to inclement weather will be addressed as follows: [Description of Policy, e.g., "Contractor will notify Client within 24 hours of a weather delay. The project timeline will be extended by the same number of days as the weather delay."]

Materials and Equipment:

Option A: The Contractor shall supply all materials and equipment necessary to complete the Work, except for the following items to be supplied by the Client: [List of Materials to be Supplied by Client].

Option B: The Client shall supply all materials and equipment necessary to complete the Work.

All materials used shall meet industry quality standards and all equipment shall be in good working order.

Materials and equipment shall be stored and secured on-site in a manner that prevents damage or theft.

Safety and OSHA Compliance:

The Contractor shall comply with all applicable safety regulations, including Alabama Construction Safety and Health regulations and OSHA standards.

The Contractor is responsible for maintaining a safe work environment and providing appropriate safety equipment for its employees and subcontractors.

Licensing, Permitting, and Inspection:

The Contractor represents and warrants that it maintains all relevant Alabama licenses required to perform the Work. Copies of such licenses shall be provided to the Client upon request.

Option A: The Contractor shall obtain all necessary permits and approvals from local authorities as mandated by Alabama law.

Option B: The Client shall obtain all necessary permits and approvals from local authorities as mandated by Alabama law.

Payment Terms:

Option A: Lump Sum: The Client shall pay the Contractor a lump sum of [Dollar Amount] for the complete performance of the Work.

Option B: Progress Payments: The Client shall pay the Contractor according to the following schedule:

• [Percentage]% upon commencement of the Work.
• [Percentage]% upon completion of [Milestone].
• [Percentage]% upon final completion of the Work.

Option C: Time and Materials: The Client shall pay the Contractor at an hourly rate of [Dollar Amount] per hour, plus the cost of materials.

The Contractor shall submit invoices to the Client on a [Frequency, e.g., "weekly," "bi-weekly," "monthly"] basis.

Accepted payment methods: [List of Accepted Payment Methods, e.g., "Check, wire transfer, credit card"].

Late Payment: Any payment not received within [Number] days of the invoice date shall be subject to a late payment fee of [Percentage]% per month.

Alabama statutory retainage provisions (up to 10% in Alabama public contracts) may apply. [Specify if retainage applies and the percentage].

The Contractor is responsible for the payment of all applicable Alabama sales or use taxes.

Reimbursement for jobsite expenses: [Specify if jobsite expenses will be reimbursed and the terms].

Insurance:

The Contractor shall maintain the following insurance coverage:

• General Liability Insurance: [Dollar Amount] per occurrence.
• Workers' Compensation Insurance: (Unless exempted by true independent contractor status, meeting IRS and Alabama Department of Labor contractor criteria).
• Builder’s Risk Insurance: [Dollar Amount].
• Auto Insurance: [Dollar Amount].

The Contractor shall provide proof of insurance to the Client upon request.

Mechanic's Lien Warning:

IMPORTANT NOTICE: UNDER ALABAMA LAW, ANY CONTRACTOR, SUBCONTRACTOR, OR MATERIALMAN WHO HELPS TO IMPROVE YOUR PROPERTY, BUT IS NOT PAID FOR HIS OR HER LABOR, SERVICES, OR MATERIALS, HAS A RIGHT TO PLACE A LIEN ON YOUR PROPERTY FOR THE VALUE OF WHAT THEY SUPPLIED. TO AVOID PAYING TWICE FOR THE SAME IMPROVEMENT, YOU MUST GET A WRITTEN WAIVER FROM EACH PERSON WHO HAS SUPPLIED LABOR, SERVICES, OR MATERIALS TO YOUR PROPERTY. THIS MAY BE DIFFICULT, SO YOU MAY WANT TO CONSULT WITH A LAWYER.

The Contractor shall provide the Client with proper notice of its right to file a lien if unpaid.

Upon payment, the Contractor shall provide the Client with a waiver or release of lien.

Independent Contractor Status:

The Contractor is an independent contractor and not an employee of the Client.

The parties agree that this Agreement does not create an employer-employee relationship, partnership, or joint venture.

The Contractor is responsible for paying its own income taxes, self-employment taxes, and any other taxes or fees required by the State of Alabama or local jurisdictions.

Contractor meets the Alabama ABC test for independent contractor status and/or meets other relevant legislative or court definitions under Alabama law to establish true independent contractor classification.

Subcontracting and Assignment:

Option A: The Contractor may subcontract portions of the Work with the Client's prior written approval.

Option B: The Contractor shall not subcontract any portion of the Work without the Client's prior written approval.

The Contractor shall be liable for the performance of its subcontractors.

All subcontractors must be licensed in Alabama, where applicable.

The Contractor shall not assign this Agreement without the Client's prior written consent.

Jobsite Protection and Environmental Compliance:

The Contractor shall be responsible for jobsite protection, including erosion control, dust control, and security.

The Contractor shall be responsible for construction debris removal and disposal in accordance with Alabama Department of Environmental Management (ADEM) regulations.

The Contractor shall restore the property to its original condition upon completion of the Work.

Change Orders:

Any changes to the Scope of Work must be submitted in writing as a change order.

Change orders must be approved by both the Client and the Contractor.

Change orders shall include adjustments to the price and timeline, as necessary.

Warranty:

The Contractor warrants that the Work shall be performed in a workmanlike manner and free from defects in materials and workmanship for a period of [Number] year(s) from the date of completion. This warranty period meets or exceeds any applicable minimum standards under Ala. Code § 6-2-34 or other relevant Alabama statutory minimums.

Claim Procedure: [Describe claim procedure, e.g., "Client must notify Contractor in writing of any defects within the warranty period."]

Exclusions: [List warranty exclusions, e.g., "This warranty does not cover damage caused by normal wear and tear, misuse, or acts of God."]

Dispute Resolution:

Any disputes arising out of or relating to this Agreement shall be resolved as follows:

• First, the parties shall attempt to resolve the dispute through direct negotiation.
• If negotiation is unsuccessful, the parties shall attempt to resolve the dispute through mediation in accordance with local Mediation Rules.
• If mediation is unsuccessful, the parties may pursue arbitration or litigation.

This Agreement shall be governed by and construed in accordance with the laws of the State of Alabama.

Venue for any legal action shall be in the appropriate state court in [County Name] County, Alabama.

Termination:

This Agreement may be terminated under the following circumstances:

• By mutual agreement of the parties.
• For cause (breach of contract, insolvency, failure to obtain necessary permits, safety violations).
• For convenience, upon [Number] days' written notice, subject to payment for work performed.

Upon termination, the Contractor shall be entitled to payment for all work performed up to the date of termination.

Final payment procedures, site demobilization, and deliverable handover requirements: [Specify procedures and requirements].

Indemnification:

To the fullest extent permitted by Alabama law (specifically referencing and adhering to Ala. Code § 8-1-41.1, Alabama’s anti-indemnity statute), the Contractor shall indemnify and hold harmless the Client from and against any and all claims, losses, damages, liabilities, and expenses (including attorney's fees) arising out of or resulting from the Contractor's acts or omissions in connection with the Work, except to the extent caused by the Client's negligence or willful misconduct.

Limitations of Liability: [Specify any limitations of liability as allowed by Alabama law].

Confidentiality:

The Contractor shall maintain the confidentiality of any sensitive client information, construction plans, or technologies used on-site.

Records Retention and Audit:

The Contractor shall maintain records related to the Work for a period of [Number] years.

If working on public contracts, the Client shall have the right to audit the Contractor's records to ensure compliance with Alabama Public Works Law.

Miscellaneous Provisions:

Notice: All notices required under this Agreement shall be in writing and delivered by [Method, e.g., certified mail, email] to the addresses listed above.

Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings.

Amendment: This Agreement may be amended only in writing and signed by both parties.

Force Majeure: Neither party shall be liable for any delay or failure to perform its obligations under this Agreement due to force majeure events, including weather emergencies, supply shortages, or other events beyond its reasonable control.

Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Counterparts: This Agreement may be executed in counterparts, each of which shall be deemed an original.

Execution: This Agreement may be executed in wet ink or electronically, in accordance with Alabama’s Uniform Electronic Transactions Act.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

____________________________

[Client/Owner Name]

____________________________

[Contractor Name]