Arkansas construction service contract template

Arkansas Construction Service Contract

This Arkansas Construction Service Contract (the “Agreement”) is made and entered into as of this [Date] by and between [Contractor Full Legal Name], a [Contractor Entity Type, e.g., Arkansas corporation] with its principal place of business at [Contractor Address], Arkansas Business Registration Number [Contractor Business Registration Number], and Arkansas Contractor License Number [Contractor License Number] (hereinafter referred to as "Contractor"), and [Client Full Legal Name], a [Client Entity Type, e.g., individual] residing at/with its principal place of business at [Client Address] (hereinafter referred to as "Client").

1. Scope of Work

Option A: Contractor shall perform all construction services as described in Exhibit A (the “Scope of Work”), which is attached hereto and incorporated herein by reference. The Scope of Work includes, but is not limited to, construction of a [Construction Type, e.g., residential dwelling] at the following location: [Property Address, including Lot, Block, and Legal Description as per Arkansas Property Records].

Option B: The Scope of Work is as detailed in the architectural and engineering drawings and specifications attached as Exhibit B and any subsequent amendments agreed to in writing by both parties.

This includes: [List Specific Details, e.g., site preparation, demolition, utility connections, permit acquisition, inspections, and post-construction cleanup].

All work shall conform to Arkansas and nationally recognized standards for construction methods and materials.

2. Responsibilities of the Parties

Option A: Contractor shall be responsible for obtaining and paying for all necessary local, county, and state permits, licenses, building inspections, and Certificates of Occupancy as required by Arkansas law and municipal regulations. Client shall provide reasonable access to the property for Contractor to perform such tasks.

Option B: Client shall be responsible for obtaining and paying for all necessary local, county, and state permits, licenses, building inspections, and Certificates of Occupancy as required by Arkansas law and municipal regulations. Contractor shall cooperate with Client in obtaining such permits.

Contractor shall comply with all requirements of the Arkansas Contractors Licensing Board.

3. Schedule

Option A: The anticipated project start date is [Start Date]. Substantial completion is anticipated by [Substantial Completion Date].

Option B: The project schedule is detailed in Exhibit C, which includes phased milestones with specific dates or criteria.

Procedures for submitting and approving extensions or delays are outlined in Exhibit C, referencing Arkansas weather delay protocols where relevant.

4. Payment Terms

Option A: The contract price is a lump sum of [Dollar Amount].

Option B: The contract price is a unit price agreement, as detailed in Exhibit D.

Option C: The contract price is cost-plus [Percentage]%, subject to a guaranteed maximum price of [Dollar Amount].

Progress payments will be made according to the schedule in Exhibit E, based on milestones, inspections, or time.

Retainage will be [Percentage]%, released as per Arkansas statutory maximums and procedures.

All payments are subject to Arkansas sales or use tax.

Contractor shall provide lien waivers for each payment per Arkansas Code § 18-44-101 et seq.

5. Change Orders

All change orders must be in writing and signed by both parties.

Pricing adjustments will be determined by [Pricing Method, e.g., time and materials, agreed fixed price].

Contractor shall provide supporting documentation for all change orders.

Dispute resolution for change orders will follow the procedures outlined in Section 11.

6. Insurance and Bonding

Contractor shall maintain commercial general liability insurance with a minimum policy limit of [Dollar Amount] and workers’ compensation insurance as required by Arkansas law.

Contractor shall provide proof of builder’s risk insurance if applicable.

Contractor shall ensure that all subcontractors maintain appropriate insurance coverage.

Contractor shall provide any surety bonds mandated by Arkansas statutes for the project type and value.

Certificates of insurance shall name Client as an additional insured where appropriate.

7. Safety and Regulatory Compliance

Contractor shall adhere to all current versions of OSHA construction standards, Arkansas Department of Labor rules, and local building codes, including the Arkansas Fire Prevention Code.

Contractor shall comply with all applicable environmental regulations, including those related to stormwater, hazardous materials, asbestos, and lead.

Contractor shall submit a safety plan to Client prior to commencement of work.

8. Warranties

Contractor warrants that all labor and materials will be free from defects for a period of [Number] year(s) from the date of substantial completion, unless a longer period is dictated by Arkansas law or project specifications.

Procedures for making warranty claims are as follows: [Detailed Procedures].

This warranty excludes: [List Exclusions].

Contractor shall pass through to Client any applicable manufacturer warranties.

9. Project Inspections and Completion

Client shall have the right to inspect the project at reasonable times.

Contractor shall cooperate with all inspections by Arkansas regulatory authorities.

Upon substantial completion, a punch list will be created and completed by Contractor within [Number] days.

Substantial and final completion will be certified in writing by [Party Responsible for Certification].

Contractor shall submit all required documentation for project closeout, including affidavits of final payment and lien waivers.

10. Subcontractor Requirements

Contractor shall only use qualified subcontractors who are licensed and registered in Arkansas.

Contractor shall be responsible for the acts and omissions of its subcontractors.

All subcontract agreements shall flow down the terms of this Agreement.

Client approval of subcontractors is required [if applicable/for certain trades].

11. Dispute Resolution

The parties shall attempt to resolve any disputes through negotiation.

If negotiation fails, the parties agree to participate in mediation or arbitration in accordance with the Arkansas Construction Industry Arbitration Rules.

Venue for any litigation shall be in the courts of [Arkansas County Name] County, Arkansas.

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

12. Termination

Option A: Client may terminate this Agreement for cause (material breach, non-payment, insolvency) upon [Number] days written notice.

Option B: Client may terminate this Agreement for convenience upon [Number] days written notice.

In the event of termination for convenience, Client shall compensate Contractor as mandated by Arkansas law.

Contractor shall demobilize and secure the site upon termination.

13. Default and Breach Remedies

The non-breaching party shall have the right to cure any breach within [Number] days of written notice.

Contractor shall have the right to file a mechanics’ and materialmen's lien under Arkansas law for non-payment.

Liquidated damages for late completion shall be [Dollar Amount] per day, as substantiated under Arkansas case law.

Contractor shall indemnify Client for any third-party claims arising out of Contractor’s negligence.

Both parties have a duty to mitigate damages.

14. Compliance with Arkansas Laws

Contractor shall comply with all applicable Arkansas tax and employment laws.

Contractor shall properly classify all workers and pay prevailing wages if required by public project rules.

Contractor shall be registered with the Arkansas Department of Workforce Services for unemployment and workers’ comp where necessary.

15. Confidentiality

Option A: The parties agree to hold confidential all non-public information relating to the site and project.

Option B: The parties agree to hold confidential all proprietary construction methods.

16. Integration Clause

This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter hereof. No amendment or modification of this Agreement shall be valid unless in writing and signed by both parties. Conflicting provisions default to Arkansas law.

17. Additional Considerations

Contractor shall comply with procedures for handling hazardous materials per Arkansas Department of Environmental Quality guidelines.

Contractor shall comply with utility notification requirements ("One Call" system compliance).

Contractor shall adhere to weather contingency protocols for Arkansas’s typical severe weather seasons.

Exhibits:

* Exhibit A: Scope of Work

* Exhibit B: Architectural and Engineering Drawings and Specifications

* Exhibit C: Project Schedule

* Exhibit D: Unit Price Agreement (if applicable)

* Exhibit E: Payment Schedule

* Exhibit F: Insurance Certificates

* Exhibit G: List of Subcontractors

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

Contractor:

[Contractor Full Legal Name]

By: [Contractor Signature]

Name: [Contractor Printed Name]

Title: [Contractor Title]

Client:

[Client Full Legal Name]

By: [Client Signature]

Name: [Client Printed Name]