Arizona construction service contract template

Arizona Construction Service Contract

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

• Contractor: [Contractor Legal Business Name], a [State of Organization] [Business Type] with its principal place of business at [Contractor Address], holding Arizona Registrar of Contractors (ROC) License No. [Contractor ROC License Number], phone number [Contractor Phone Number], and represented by [Contractor Contact Person].
• Owner: [Owner Legal Business Name], residing at [Owner Address], phone number [Owner Phone Number], and represented by [Owner Contact Person].

1. Project Description

• The project (the “Project”) consists of [brief description of project], to be constructed at the following location: [Project Address], legally described as [Legal Property Description]. Reference recorded property plat if applicable: [Plat Reference].

2. Scope of Work

• The Contractor shall perform all work as described in Exhibit A (the “Scope of Work”), attached hereto and incorporated herein. The Scope of Work includes, but is not limited to:
  • Architectural Plans: [Architectural Plan Title]
  • Engineering Drawings: [Engineering Drawing Title]
  • Specifications: [Specification Document Title]
  • Materials: [List of Materials]
  • Building Methods: [Description of Building Methods]
  • Subcontractor Roles: [Description of Subcontractor Roles]
  • Deliverables: [List of Deliverables]

3. Permits and Approvals

• Option A: The Contractor shall be responsible for obtaining and paying for the following permits and approvals: [List of Permits Contractor Obtains].
• Option B: The Owner shall be responsible for obtaining and paying for the following permits and approvals: [List of Permits Owner Obtains].

• Compliance: Both parties shall comply with all applicable federal, state, county, municipal, and tribal codes, including the Arizona Building Code, local fire and safety codes, Maricopa County Rule 310 (Dust Control), and ADEQ requirements for SWPPP (if applicable).

4. Project Schedule

• The Project shall commence on [Start Date] and achieve substantial completion on or before [Substantial Completion Date].
• Phased Construction Milestones:
  • Milestone 1: [Milestone 1 Description] - Completion Date: [Milestone 1 Date] - Acceptance Criteria: [Milestone 1 Acceptance Criteria]
  • Milestone 2: [Milestone 2 Description] - Completion Date: [Milestone 2 Date] - Acceptance Criteria: [Milestone 2 Acceptance Criteria]
• Weather Delays: Delays due to inclement weather will be handled as follows: [Procedure for Weather Delays].
• Unforeseen Site Conditions: Process for addressing unforeseen site conditions: [Process for addressing unforeseen site conditions].
• Liquidated Damages:
  • Option A: For each day beyond the Substantial Completion Date that the Project remains incomplete, the Contractor shall pay the Owner liquidated damages in the amount of [Dollar Amount] per day.
  • Option B: Incentives for early completion: [Incentive for early completion].

5. Pricing and Payment

• The total price for the Project shall be [Dollar Amount].
• Itemized Cost Breakdown:
  • Labor: [Labor Cost]
  • Materials: [Material Cost]
  • Equipment: [Equipment Cost]
• Pricing Type:
  • Option A: Fixed Price.
  • Option B: Cost-Plus.
• Allowances: [Description of Allowances].
• Payment Schedule:
  • Option A: Lump Sum payment upon completion.
  • Option B: Progress Payments as outlined in Exhibit B (Schedule of Values).
• Retainage: [Percentage]% retainage will be withheld from each progress payment, as permitted by Arizona law.
• Invoicing Procedures: [Description of Invoicing Procedures].
• Interest on Late Payments: Late payments shall accrue interest at a rate of [Percentage]% per month, subject to Arizona usury limits.
• Lien Release Procedures: Lien releases will be provided upon each payment, in accordance with Arizona law.
• Preliminary 20-Day Lien Notice: Contractor to provide preliminary 20-day lien notice as required.

6. Contractor’s Obligations

• Subcontractors: All subcontractors shall be properly licensed in Arizona.
• Workers’ Compensation: The Contractor shall maintain workers’ compensation insurance as required by Arizona law.
• Liability Insurance: The Contractor shall maintain liability insurance with coverage levels of: [Coverage Levels].
• Bonding:
  • Option A: The Contractor shall provide performance and payment bonds in the amount of [Dollar Amount].
  • Option B: Bonding is not required for this project.
• Proof of Insurance: Contractor shall provide proof of insurance to the owner.

7. Site Access and Work Conditions

• The Owner shall provide the Contractor with reasonable access to the Project site.
• Hours of Work: The Contractor shall conduct work during the following hours: [Hours of Work], subject to local ordinances.
• Dust/Noise/Vibration Mitigation: The Contractor shall take reasonable steps to mitigate dust, noise, and vibration.
• Hazardous Materials: Hazardous materials will be handled as follows: [Description of Hazardous Materials Handling].

8. Change Orders

• All change orders must be in writing and signed by both parties prior to the commencement of the changed work.
• The change order shall specify the change in the Scope of Work, the adjustment to the contract price, and any adjustment to the Project schedule.

9. Warranty

• The Contractor warrants that the work will be free from defects in materials and workmanship for a period of two (2) years from the date of Substantial Completion, in accordance with A.R.S. § 12-1361.
• Major Structural Defects: Warranty period for major structural defects is six (6) years.
• Warranty Limitations: [Description of Warranty Limitations].
• Warranty Claims: Procedures for warranty claims: [Procedures for warranty claims].

10. Owner’s Duties

• The Owner represents and warrants that they have the right to enter into this Agreement and authorize the work to be performed.
• The Owner shall provide the Contractor with access to utilities as needed.
• The Owner shall make timely design decisions.
• The Owner shall pay for permits in a timely manner (if responsible per Section 3).

11. Insurance and Risk Allocation

• Builder’s Risk Insurance:
  • Option A: The Contractor shall procure and maintain builder’s risk insurance.
  • Option B: The Owner shall procure and maintain builder’s risk insurance.
• Indemnity: Indemnity and hold harmless clauses are subject to A.R.S. § 32-1159.

12. Default and Termination

• Breach Events: [Definition of Breach Events].
• Notice and Cure: The non-breaching party shall provide written notice of the breach and allow [Number] days to cure.
• Termination for Cause: [Procedures for Owner-Initiated or Contractor-Initiated Termination for Cause].
• Termination for Convenience: [Procedures for Owner-Initiated or Contractor-Initiated Termination for Convenience].

13. Liability

• Limitations on Consequential/Incidental Damages: [Description of Limitations on Consequential/Incidental Damages].

14. Dispute Resolution

• The parties shall attempt to resolve any disputes through negotiation.
• If negotiation fails, the parties shall participate in mediation in Arizona with an Arizona-licensed mediator.
• If mediation fails, the parties may pursue arbitration per A.R.S. § 12-133 or court litigation.
• Venue: Venue for any legal action shall be in the county where the Project is located.
• Governing Law: This Agreement shall be governed by the laws of the State of Arizona.

15. Contractor’s License

• The Contractor’s ROC license must be in good standing for this Agreement to be valid.

16. Notices

• All notices shall be in writing and sent to the addresses listed above.
• Required notices to be served consistent with ROC and A.R.S. requirements (e.g., 20-day Lien Notice, Notice and Opportunity to Cure for defects per A.R.S. § 12-1363).

17. Compliance with Laws

• The Contractor shall comply with all applicable Arizona labor laws, OSHA standards, and equal opportunity employment laws.
• E-Verify Participation: The contractor confirms their participation in E-Verify.

18. Records and Audit

• The Contractor shall maintain accurate records of all costs incurred in connection with the Project.
• The Owner shall have the right to audit the Contractor’s records.

19. Force Majeure

• Neither party shall be liable for delays due to events outside their control (fire, flood, government order, etc.).

20. Assignment

• The Contractor may not assign this Agreement without the Owner’s written consent.

21. Entire Agreement

• This Agreement constitutes the entire agreement between the parties.

22. Arizona Homeowner Protection Act

• If this is a residential or home improvement project, the Arizona Homeowner Protection Act applies. Disclosures regarding ROC complaint process, insurance, and cancellation rights are attached in Exhibit C.

23. Signature

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

Contractor:

By: [Contractor Printed Name]

Title: [Contractor Title]

[Contractor Legal Business Name]

Date: [Date]

Owner:

By: [Owner Printed Name]

Title: [Owner Title]

[Owner Legal Business Name]

Date: [Date]