Alabama construction service contract template

Alabama Construction Service Agreement

This Alabama Construction Service Agreement (the “Agreement”) is made and entered into as of this [Date], by and between [Contractor Full Legal Name], a [State] [Entity Type, e.g., corporation], with a principal place of business at [Contractor Address], Alabama, and holding Alabama General Contractor License Number [Contractor License Number] (hereinafter referred to as "Contractor"), and [Owner Full Legal Name], residing at [Owner Address], Alabama (hereinafter referred to as "Owner").

1. Project and Property Description

The Contractor agrees to perform certain construction services (the "Work") on the property located at [Property Address], Alabama, and legally described as follows: [Legal Description of Property].

Option A: The Work will be performed according to the plans and specifications attached hereto as Exhibit A (the “Plans”) and any addenda.

Option B: The Plans are being provided under separate cover, are dated [Date], and have been reviewed and approved by both Contractor and Owner.

2. Scope of Work

The Work to be performed by Contractor includes, but is not limited to, the following: [Detailed Description of Scope of Work, including specific materials, labor, and equipment to be provided. Reference architectural and engineering plans, project specifications, and all addenda. Explicitly state what is included or excluded.]

Option A: Exclusions from the Work: [List any specific exclusions from the scope of work, e.g., landscaping, demolition, etc.]

Option B: The Contractor is responsible for all labor and materials for the agreed upon project.

3. Permits, Codes, and Regulations

Contractor shall obtain all necessary permits and licenses required for the Work from the appropriate Alabama governmental authorities, including the [Specific permitting agency], and comply with all applicable federal, state, and local building codes, zoning laws, and environmental and safety regulations, including those specific to Alabama.

Option A: Owner shall be responsible for securing and paying for the following permits: [List specific permits Owner is responsible for.]

Option B: Owner is responsible for ensuring any HOA approvals needed.

4. Contractor Licensing and Subcontractors

Contractor represents and warrants that it is duly licensed as a general contractor in the State of Alabama under License Number [Contractor License Number], and that such license is current and in good standing.

Contractor may subcontract portions of the Work, provided that:

Each subcontractor is properly licensed and insured in the State of Alabama.

Contractor shall provide Owner with a list of all subcontractors prior to the commencement of any work by such subcontractors.

Subcontractor identification: [List of Subcontractors and their license numbers.]

5. Project Schedule and Completion

The Work shall commence on or about [Start Date] and shall be substantially completed on or about [Substantial Completion Date].

Option A: The project will have the following milestones:

[Milestone 1]: [Completion Date]

[Milestone 2]: [Completion Date]

[Milestone 3]: [Completion Date]

Option B: Liquidated damages will be assessed at a rate of [Dollar Amount] per day for each day beyond the substantial completion date that the project remains incomplete, not to exceed [Total Dollar Amount].

6. Site Access and Safety

Owner shall provide Contractor with reasonable access to the property during normal business hours for the purpose of performing the Work. Contractor shall be responsible for maintaining a safe work site in compliance with all applicable OSHA and Alabama Department of Labor regulations.

Option A: Work hours are restricted to [Start Time] to [End Time], Monday through Friday.

Option B: Contractor is responsible for securing the project site.

7. Payment Terms

The total contract price for the Work is [Dollar Amount].

Payments shall be made according to the following schedule:

[Payment 1]: [Dollar Amount] due upon signing of this Agreement.

[Payment 2]: [Dollar Amount] due upon completion of [Specific Milestone or Phase].

[Payment 3]: [Dollar Amount] due upon substantial completion of the Work.

[Final Payment]: [Dollar Amount] due upon final completion and acceptance of the Work.

Retainage: [Percentage]% retainage will be withheld from each progress payment, subject to Alabama’s statutory maximums.

Invoicing: Contractor shall submit invoices to Owner at [Invoice Frequency, e.g., monthly].

Lien Waivers: Contractor shall provide Owner with conditional lien waivers from all subcontractors and material suppliers with each progress payment request and final lien waivers upon final payment.

8. Bonds

Option A: Contractor shall furnish a performance bond and a payment bond in the amount of [Dollar Amount].

Option B: No Bonds will be required for this project.

9. Insurance

Contractor shall maintain the following insurance coverage:

Commercial General Liability Insurance: [Dollar Amount] per occurrence.

Workers' Compensation Insurance: As required by Alabama law.

Builder’s Risk Insurance: Covering the full insurable value of the Work.

Contractor shall provide Owner with certificates of insurance evidencing the required coverage.

10. Warranties

Contractor warrants that the Work will be performed in a workmanlike manner and free from defects for a period of one (1) year from the date of substantial completion, consistent with Alabama’s implied warranty of workmanship.

Option A: Contractor offers an additional warranty for specific equipment as outlined in Exhibit B.

Option B: Any notification of defective work must be submitted in writing.

11. Delays and Extensions of Time

Contractor shall be entitled to an extension of time for delays caused by events beyond its reasonable control, including but not limited to acts of God, labor disputes, fire, unusual inclement weather specific to Alabama, or Owner-caused delays. Contractor must provide written notice of any delay within [Number] days of the event causing the delay.

Option A: Extensions of time will be calculated on a day-for-day basis.

Option B: Liquidated damages will not be assessed for excusable delays.

12. Allowances

The contract price includes the following allowances:

[Allowance 1 Description]: [Dollar Amount]

[Allowance 2 Description]: [Dollar Amount]

Any unused portion of an allowance shall be credited to Owner.

13. Change Orders

Any changes to the Work must be documented in a written change order signed by both Contractor and Owner. The change order shall include a detailed description of the change, the impact on the contract price, and the impact on the project schedule.

Option A: All change orders must be approved by owner within [Number] business days.

Option B: Contractor reserves the right to refuse change orders that are not in line with the original scope of work.

14. Dispute Resolution

Any disputes arising out of or relating to this Agreement shall be resolved through direct negotiation. If negotiation fails, the parties agree to attempt mediation in [City], Alabama. If mediation fails, either party may pursue arbitration or litigation in the state courts located in [County] County, Alabama, and governed by Alabama law.

Option A: Arbitration shall be binding.

Option B: Each party shall bear its own legal costs and expenses.

15. Termination

This Agreement may be terminated by either party for cause upon [Number] days written notice to the other party. Cause shall include, but not be limited to, material breach of this Agreement.

Option A: Owner may terminate this agreement for convenience with [Number] days notice.

Option B: Upon termination, Contractor shall be paid for all work performed and materials furnished to date.

16. Mechanics' Liens

Owner acknowledges that Contractor has the right to file a mechanics' lien against the property in the event of non-payment. Owner has the right to withhold payments for defective work or unpaid subcontractors, and will be notified of any mechanics lien rights under Alabama law. The Contractor must provide all statutory notices as needed.

Option A: Contractor waives the right to place a lien.

Option B: The owner will be notified of any intent to place a lien within [Number] days.

17. Confidentiality

Contractor and Owner agree to hold confidential any proprietary information or plans disclosed by the other party.

Option A: No photographs of the work shall be released.

Option B: Contractor may post a sign on the property.

18. Immigration Laws

Contractor shall comply with all applicable Alabama immigration laws and verify the legal work status of all personnel.

Option A: Subcontractors will be verified before being assigned to the project.

Option B: All staff will be subject to E-Verify.

19. Drug-Free Workplace Act

If the Project is a public project, Contractor shall comply with the Alabama Drug-Free Workplace Act.

20. Prompt Payment Act

Contractor shall ensure that all material suppliers and subcontractors are paid in accordance with Alabama’s Prompt Payment Act.

21. Taxes

Contractor shall be responsible for all applicable state and local taxes, including those required to be reported to the Alabama Department of Revenue.

22. Assignment

This Agreement may not be assigned or delegated by either party without the prior written consent of the other party.

23. Access to Records

For public projects, Owner reserves the right to access records and audit Contractor's books in accordance with Alabama public contract laws.

24. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

25. Severability

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

26. Alabama Consumer Protection and Home Builders Licensure Board (Residential Projects)

For residential projects, Contractor shall comply with all applicable Alabama consumer protection laws and Home Builders Licensure Board requirements, including required disclosures, right to cancel, and minimum contract content standards.

Option A: Owner has three (3) days to cancel this contract.

Option B: All requirements listed in Ala. Admin. Code r. 240-X-1-.10 have been met.

27. Notices

All notices required or permitted under this Agreement shall be in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States mail, registered or certified mail, postage prepaid, addressed to the other party at the address set forth above.

28. Governing Law

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

29. Exhibits

The following exhibits are attached to and incorporated into this Agreement:

Exhibit A: [Description of Exhibit, e.g., Plans and Specifications]

Exhibit B: [Description of Exhibit, e.g., Contractor's Insurance Certificate]

30. Non-Waiver

No waiver of any provision of this Agreement shall be effective unless in writing and signed by the waiving party.

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

[Contractor Full Legal Name]

By: [Contractor Signature]

Name: [Contractor Printed Name]

Title: [Contractor Title]

[Owner Full Legal Name]

By: [Owner Signature]

Name: [Owner Printed Name]