Alaska construction service contract template
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How Alaska construction service contract Differ from Other States
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Alaska requires contractors to include specific disclosures about licensing and bonding status that may not be required in other states.
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The state mandates unique lien waiver and release provisions, ensuring compliance with Alaska’s distinctive mechanics’ lien laws.
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Alaska construction contracts often require adherence to strict environmental and weather-related work clauses due to regional climate conditions.
Frequently Asked Questions (FAQ)
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Q: Is a written contract required for all construction projects in Alaska?
A: Written contracts are strongly recommended and often required, especially for residential projects over a certain dollar amount.
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Q: Do contractors need a state license to work in Alaska?
A: Yes, most contractors must be licensed with the Alaska Department of Commerce, Community, and Economic Development.
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Q: Can parties edit or add clauses to the Alaska construction service contract template?
A: Yes, parties are encouraged to customize the template to reflect the specific terms and requirements of their project.
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Alaska Construction Service Contract
This Alaska Construction Service Contract (the "Contract") is made and entered into as of [Date of Execution], by and between:
Contractor: [Contractor's Full Legal Name], a [State of Incorporation] corporation / [Entity Type, e.g., LLC] with its principal place of business at [Contractor's Business Address] and Alaska contractor's license number [Contractor's Alaska License Number]. Contact Information: [Contractor's Phone Number], [Contractor's Email Address].
Owner: [Owner's Full Legal Name], residing at [Owner's Business Address]. Contact Information: [Owner's Phone Number], [Owner's Email Address].
1. Project Description
The Contractor agrees to perform the following construction services (the "Work") for the Owner, as described in detail in Exhibit A, attached hereto and incorporated herein:
Option A: Detailed description of the Work to be performed. [Detailed Description of Work]
Option B: Reference to specific design drawings, engineering plans, and specifications prepared by [Architect's Name]/[Engineer's Name], dated [Date of Plans].
Option C: Scope of work including adherence to Alaska-specific building codes and the International Building Code as adopted by Alaska. [Specific Codes].
The Work shall be performed at the following location (the "Project Site"):
Physical Address: [Project Site Physical Address]
Legal Description: [Project Site Legal Description]
2. Contract Documents
The Contract Documents consist of this Contract, including all Exhibits and Addenda attached hereto, and the following documents:
Option A: The Plans and Specifications prepared by [Architect's Name]/[Engineer's Name], dated [Date of Plans].
Option B: Any addenda issued prior to the execution of this Contract.
Option C: List any additional documents. [List Additional Documents]
3. Timeline
The Work shall commence on [Project Commencement Date] and shall be substantially completed on or before [Project Completion Date], subject to extensions as provided herein.
Option A: Milestone deadlines:
Milestone 1: [Milestone 1 Description] - Completion Date: [Milestone 1 Completion Date]
Milestone 2: [Milestone 2 Description] - Completion Date: [Milestone 2 Completion Date]
Option B: Procedures for schedule extensions due to weather delays, permafrost issues, or seasonal work impediments common in Alaska:
Documentation of delay required within [Number] days.
Extension granted at Contractor’s request upon Owner’s review and approval.
4. Permits and Approvals
The Owner shall be responsible for obtaining the following permits and approvals: [List of Owner-Responsibility Permits].
The Contractor shall be responsible for obtaining the following permits and approvals: [List of Contractor-Responsibility Permits]. Including adherence to the Alaska Department of Environmental Conservation, wetlands/fish habitat regulations.
5. Contract Price and Payment
The total contract price for the Work is [Total Contract Price].
Option A: Payment Schedule:
Mobilization Payment: [Mobilization Payment Amount] due upon commencement of Work.
Progress Payments: Based on percentage of completion as outlined in Exhibit B.
Retainage: [Retainage Percentage]% retainage in accordance with Alaska Statutes.
Option B: Methodology for handling change orders:
All change orders must be in writing and signed by both parties.
Pricing for change orders shall be based on [Method for Pricing Change Orders, e.g., time and materials, fixed fee].
Option C: Applicable Alaska sales or use taxes: [Specify Tax Rate]
6. Verification and Approval
The Work shall be subject to verification and approval by the Owner or the Owner's representative.
Option A: Punch-list process: Contractor will create a punch list upon substantial completion and address any outstanding items in a timely manner.
Option B: Inspection procedures: The Owner will have [Number] days to inspect the completed work.
Option C: Reference to third-party compliance: [Name of third party].
7. Site Conditions
The Contractor shall be responsible for inspecting the Project Site and shall be responsible for any unforeseen site conditions, including but not limited to:
Option A: Permafrost.
Option B: Groundwater.
Option C: Unanticipated subsurface conditions.
8. Insurance
The Contractor shall maintain the following insurance coverage:
General Liability Insurance: [Amount]
Builder's Risk Insurance: [Amount]
Automobile Liability Insurance: [Amount]
Workers' Compensation Insurance: In accordance with the Alaska Workers’ Compensation Act.
9. Licensing and Bonding
The Contractor represents and warrants that it is duly licensed and bonded in the State of Alaska, in compliance with the Alaska Department of Commerce, Community, and Economic Development contractor licensing statutes (AS 08.18).
Option A: Contractor will provide proof of license and bond upon request.
Option B: All subcontractors must also be licensed and bonded in Alaska.
10. Cultural Resources and Hazardous Materials
In the event of the discovery of cultural resources or hazardous materials, the Contractor shall immediately cease work and notify the Owner.
Option A: Tribal and environmental notification protocols will be followed.
11. Lien Waivers
The Contractor shall provide lien waivers from all subcontractors and suppliers prior to final payment.
Option A: Early notice of non-payment: all parties must provide a written notice within [Number] days.
12. Warranty
The Contractor warrants that the Work will be free from defects in materials and workmanship for a period of [Warranty Period] from the date of substantial completion.
Option A: Minimum statutory warranty period required by Alaska statutes.
Option B: Exclusions for owner-caused defects.
13. Termination
This Contract may be terminated under the following circumstances:
Option A: Default by either party.
Option B: Force majeure, including Alaska-specific natural disasters such as earthquakes and floods.
Option C: Mutual agreement.
Option D: Convenience of the owner
14. Limitation of Liability
The Contractor's liability under this Contract shall be limited to the total contract price.
15. Indemnification
To the fullest extent permitted by Alaska law, the Contractor shall indemnify and hold harmless the Owner from and against any and all claims, damages, losses, and expenses arising out of or resulting from the performance of the Work.
16. Safety and Environmental Protection
The Contractor shall comply with all applicable safety and environmental protection regulations, including but not limited to US and Alaska state OSHA requirements, and Army Corps of Engineers or Coast Guard regulations if construction is near navigable waters.
17. Equal Employment and Local Hire
The Contractor shall comply with all applicable equal employment, local hire, and Alaska Native employment requirements, if triggered by state or federal funding.
18. Recordkeeping and Audit Rights
Both parties shall maintain accurate records related to the Work and shall have the right to audit such records.
19. Dispute Resolution
Any dispute arising out of or relating to this Contract shall be resolved through:
Option A: Negotiation.
Option B: Mediation.
Option C: Binding arbitration in [City, Alaska] under Alaska law.
20. Notices
All notices required or permitted under this Contract shall be in writing and shall be deemed to have been duly given when delivered personally, sent by certified mail, return receipt requested, or sent by email to the addresses set forth above.
21. Confidentiality
The Contractor shall maintain the confidentiality of all proprietary information of the Owner.
22. Suspension of Work
The Contractor may suspend work due to non-payment, unsafe conditions, or force majeure.
23. Federal Compliance
If federal funding or federal lands are involved, the Contractor shall comply with all applicable federal compliance and flow-down clauses, including Davis-Bacon prevailing wage requirements.
24. Governing Law
This Contract shall be governed by and construed in accordance with the laws of the State of Alaska.
25. Amendments
This Contract may be amended only by a written instrument signed by both parties.
26. Counterparts and Electronic Signatures
This Contract may be executed in counterparts, and electronic signatures shall be deemed to be original signatures.
IN WITNESS WHEREOF, the parties have executed this Contract as of the date first written above.
Contractor:
By: [Contractor's Signature]
Name: [Contractor's Printed Name]
Title: [Contractor's Title]
Owner:
By: [Owner's Signature]
Name: [Owner's Printed Name]
Exhibits:
Exhibit A: Scope of Work
Exhibit B: Payment Schedule
Exhibit C: Insurance Certificates
Exhibit D: Performance and Payment Bonds (if applicable)
Exhibit E: Affidavits of Legal Access or Notices Required Under Local Municipal Regulations (if applicable)