Arizona construction independent contractor agreement template

Arizona Construction Independent Contractor Agreement

This Arizona Construction Independent Contractor Agreement (the “Agreement”) is made and entered into as of this [Date] by and between:

[Client Name], residing at [Client Address], with contact number [Client Phone Number] and email [Client Email], hereinafter referred to as “Client,”

and

[Contractor Name], residing at [Contractor Address] or, if a business entity, with its principal place of business at [Contractor Business Address], with contact number [Contractor Phone Number] and email [Contractor Email], Arizona contractor license number [Contractor License Number] (Verification Link: [Link to Arizona ROC License Verification]), hereinafter referred to as “Contractor.”

Scope of Work

Option A: The Contractor shall perform the following construction services for the Client: [Detailed Description of Services, e.g., Framing for a new single-family residence as per attached blueprints labeled Exhibit A], including all necessary labor, equipment, and materials, as further detailed in Exhibit A.

Option B: The Contractor shall perform the following construction services for the Client: [General Contracting for a bathroom remodel, including demolition, plumbing, electrical, and finishing], as per the specifications outlined in Exhibit B and conforming to all applicable codes.

The services shall be performed at the following project site: [Project Site Address].

Site access shall be granted during the following hours: [Days and Times].

The Contractor is responsible for cleanup and debris removal in accordance with Arizona environmental regulations.

Project Timeline and Milestones

Option A: The project shall commence on [Start Date] and shall be substantially completed by [Substantial Completion Date]. Final completion shall be achieved by [Final Completion Date].

Option B: Key project milestones include:

Milestone 1: [Milestone Description, e.g., Framing Completion] - Due Date: [Date]

Milestone 2: [Milestone Description, e.g., Plumbing Rough-In Inspection Passed] - Due Date: [Date]

The Contractor shall provide daily progress logs to the Client.

The Contractor is responsible for requesting and coordinating all required inspections.

Payment Terms

Option A: The Client shall pay the Contractor a fixed price of [Dollar Amount] for the completion of the services.

Option B: The Client shall pay the Contractor on a cost-plus basis, with a markup of [Percentage]% on all materials and subcontracts.

Option C: The Client shall pay the Contractor an hourly rate of [Dollar Amount] per hour.

Payment Schedule:

[Percentage]% upon commencement of the project.

[Percentage]% upon completion of [Milestone].

[Percentage]% upon substantial completion.

The remaining balance upon final completion.

All invoices shall include Arizona transaction privilege tax (“TPT”) as required by law. The Contractor's TPT license number is [Contractor's TPT License Number].

The Client shall withhold a retainage of [Percentage]% from each payment, up to a maximum of [Dollar Amount], to be released upon final completion and acceptance of the work.

All Change Orders must be in writing and signed by both parties to be valid.

Late payment penalties shall accrue at a rate of [Percentage]% per month on any overdue amounts.

Materials, Tools, and Equipment

Option A: The Contractor shall be responsible for purchasing and supplying all materials, tools, and equipment necessary for the completion of the services.

Option B: The Client shall provide all materials, and the Contractor shall provide all tools and equipment.

The Contractor shall be responsible for the storage and security of all materials and equipment on the project site.

All materials shall meet or exceed industry standards and applicable Arizona laws.

Compliance and Safety

The Contractor shall comply with all applicable Arizona workers’ compensation laws and shall maintain workers’ compensation insurance if employing others.

The Contractor shall comply with all OSHA and ADOSH (Arizona Division of Occupational Safety and Health) jobsite safety rules and regulations.

The Contractor is responsible for the actions of their employees and subcontractors.

Independent Contractor Relationship

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

The Contractor is responsible for all federal and state income taxes, social security (self-employment tax), Arizona TPT registration (if required), and any other applicable taxes.

The Contractor is not eligible for workers’ compensation or unemployment benefits from the Client.

The Contractor shall maintain all necessary business licenses and insurance as required by Arizona law, including general liability insurance with a minimum coverage of [Dollar Amount].

Indemnification and Insurance

The Contractor shall indemnify and hold harmless the Client from and against any and all claims, losses, damages, liabilities, costs, and expenses (including attorney’s fees) arising out of or related to the Contractor’s performance of the services, including property damage, bodily injury, or third-party claims.

The Contractor shall maintain insurance coverage that includes naming Client as additionally insured if appropriate.

Ownership of Work Product

Option A: The Client shall own all work product, plans, and intellectual property created by the Contractor in connection with the services.

Option B: The Contractor shall retain ownership of all work product, plans, and intellectual property, but grants the Client a perpetual, non-exclusive license to use such work product for the project.

Permits and Inspections

The Contractor is responsible for obtaining all necessary permits and for ensuring that all work passes all required governmental approvals.

Warranty and Defect Liability

The Contractor warrants that all work shall be performed in a workmanlike manner and shall be free from defects for a period of [Number] year(s) from the date of final completion.

The Contractor shall be responsible for repairing any defects that arise during the warranty period, at no additional cost to the Client.

This warranty does not cover damage caused by normal wear and tear, misuse, or acts of God.

Contract Changes

Any changes to the scope of work, timeline, or payment terms must be made in writing and signed by both parties.

Any changes that require Arizona ROC notification shall be the responsibility of [Contractor or Client].

Contract Suspension or Termination

The Client may suspend or terminate this Agreement for breach of contract by the Contractor, including non-performance, safety violations, or failure to pay subcontractors.

The Contractor may terminate this Agreement for breach of contract by the Client, including failure to make timely payments.

The terminating party shall provide [Number] days written notice to the other party.

Upon termination, the Contractor shall deliver all lien releases to the Client.

Arizona Mechanics' Liens

The Contractor acknowledges the Client's right to file a notice of right to lien pursuant to Arizona Revised Statutes.

The Contractor shall provide a preliminary 20-day notice as required by Arizona law.

The Contractor shall provide lien waivers and releases with each payment.

Dispute Resolution

Any disputes arising out of or related to this Agreement shall be resolved through negotiation, then mediation in Arizona.

If mediation is unsuccessful, the dispute shall be resolved through binding arbitration in Arizona in accordance with the Arizona Uniform Arbitration Act.

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

Records Retention and Audit

The Contractor shall maintain accurate records of all expenses and payments related to the project for a period of [Number] years.

The Client shall have the right to audit the Contractor’s records upon reasonable notice.

Confidentiality

The Contractor shall maintain the confidentiality of all business information and trade secrets of the Client.

Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Agreement due to causes beyond its reasonable control, including but not limited to acts of God, war, terrorism, fire, flood, heat, monsoon/rain, and supply chain interruption.

Compliance with Laws

The Contractor shall comply with all applicable Arizona laws and local city/county ordinances, including building codes, labor laws, and environmental standards.

Miscellaneous

Prevailing Party Attorney’s Fees: The prevailing party in any legal action arising out of or related to this Agreement shall be entitled to recover its reasonable attorney’s fees and costs.

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

Assignment: This Agreement may not be assigned by either party without the written consent of the other party.

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

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

____________________________

[Client Name]

____________________________

[Contractor Name]