Colorado construction independent contractor agreement template

Colorado Construction Independent Contractor Agreement

This Colorado Construction Independent Contractor Agreement (the "Agreement") is made and entered into as of [Date] by and between:

Client: [Client Full Legal Name], with a business address at [Client Business Address] and whose registered business name/trade name (if any) as filed with the Colorado Secretary of State is [Client Registered Business Name]. Primary contact information is [Client Phone Number], [Client Email Address].

Contractor: [Contractor Full Legal Name], with a business address at [Contractor Business Address] and whose registered business name/trade name (if any) as filed with the Colorado Secretary of State is [Contractor Registered Business Name]. Primary contact information is [Contractor Phone Number], [Contractor Email Address] and contractor license/registration number is [Contractor License/Registration Number].

1. Statement of Work

Option A: The Contractor shall perform the following construction services: [Detailed Description of Services, including Scope of Work, Specifications, Quality and Material Standards, Blueprint References, Required Permits, Inclusion/Exclusion of Demolition, Site Preparation, Job Cleanup, Disposal].

Option B: The Contractor shall perform the services described in Exhibit A, attached hereto and incorporated herein.

2. Project Timeline

Option A: The project shall commence on [Start Date] and be completed by [Completion Date].

Option B: The project shall adhere to the milestone schedule attached as Exhibit B.

Working hours/site access rules: [Specify Working Hours/Site Access Rules]

Allowable delays: [Specify Allowable Delays, e.g., Weather Delays per Standard Colorado Practice]

3. Project Location and Site Conditions

Site Location: [Project Site Address].

Site Conditions and Client-Provided Utilities: [Specify Site Conditions and Client-Provided Utilities].

OSHA-compliant site safety requirements: [Specify OSHA-compliant Site Safety Requirements]

4. Compensation

Option A: Fixed Price: The total fixed price for the services is [Dollar Amount].

Option B: Time and Materials: The Contractor shall be paid at a rate of [Dollar Amount] per hour, plus the cost of materials.

Option C: Cost-Plus: The Contractor shall be reimbursed for all costs incurred, plus a [Percentage]% markup.

Payment Schedule: [Specify Payment Schedule, e.g., Mobilization, Progress Draws, Substantial and Final Completion].

Retainage: Retainage shall be [Percentage]%, in compliance with Colorado law.

Allowable Withholding: [Specify Allowable Withholding].

Payment Method: [Specify Payment Method, e.g., Check, Wire Transfer].

Invoice Submission Requirements: [Specify Invoice Submission Requirements, including Required Lien Waivers/Affidavits].

Late Payment Interest: Late payments shall accrue interest at the rate allowed under Colorado Revised Statutes.

5. Taxes, Fees, and Deductions

Contractor Responsibility: The Contractor shall pay all required federal, state, and local taxes, including Colorado sales/use tax where applicable.

No Employment Taxes Withheld: No employment taxes will be withheld by the Client. Contractor acknowledges Colorado Department of Revenue guidelines for independent contractors.

6. Contractor Status

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

No Benefits: The Contractor is not entitled to workers' compensation, health insurance, or unemployment benefits from the Client.

Contractor Responsibility: The Contractor is responsible for their own insurance, taxes, and compliance with Colorado Department of Labor standards regarding misclassification and the Colorado Employment Security Act.

7. Insurance

Required Insurance: The Contractor shall maintain the following insurance coverages:

General Liability Insurance: Minimum coverage of [Dollar Amount].

Commercial Automobile Insurance: (If Applicable) [Specify Coverage].

Workers' Compensation Insurance: (If Engaging Employees/Sub-Contractors) or Formal Exemption/Waiver per Colorado law.

Builder's Risk Insurance: [Specify if Builder's Risk Insurance is Required and Who is Responsible for Obtaining It].

8. Compliance with Laws and Regulations

Compliance: The Contractor shall comply with all local, state, and federal building codes, the Colorado Construction Defect Actions Reform Act (CDARA), environmental regulations, required municipal permits, and inspection protocols.

Licensing: The Contractor shall maintain all necessary licenses or registrations for specialty trades as mandated by the Colorado Department of Regulatory Agencies.

9. Subcontracting

Option A: Subcontracting Permitted: Subcontracting is permitted with the Client's prior written approval.

Option B: Subcontracting Not Permitted: Subcontracting is not permitted.

Subcontractor Requirements: All subcontractors must provide proof of insurance and licensing and be treated as independent contractors.

10. Materials and Change Orders

Materials Procurement and Storage: [Specify Materials Procurement and Storage Procedures].

Change Orders: All scope, schedule, or cost modifications must be documented in written change orders approved by both parties, referencing Colorado best practices for written change orders.

11. Ownership and Lien Waivers

Ownership of Work Product: All work product, construction improvements, and related intellectual property shall be owned exclusively by [Specify Owner].

Lien Waivers: The Contractor shall execute mechanic's lien waivers or releases at each progress payment and final payment in compliance with Colorado lien laws (C.R.S. Title 38, Article 22).

Mechanic’s Lien Disclosure: AS REQUIRED BY COLORADO LAW, SUPPLIERS, SUBCONTRACTORS OR OTHER PERSONS FURNISHING LABOR OR MATERIALS FOR CONSTRUCTION ON YOUR PROPERTY MAY FILE A LIEN AGAINST YOUR PROPERTY IF THEY ARE NOT PAID IN THE FUTURE, EVEN THOUGH YOU MAY HAVE PAID YOUR CONTRACTOR. ACCORDINGLY, YOU MAY, AS PROTECTIONS AGAINST SUCH LIENS, PAY SUCH SUPPLIERS, SUBCONTRACTORS AND OTHER PERSONS FURNISHING LABOR OR MATERIALS FOR CONSTRUCTION ON YOUR PROPERTY DIRECTLY, OR OBTAIN WAIVERS OF LIEN FROM SUCH SUPPLIERS, SUBCONTRACTORS AND OTHER PERSONS FURNISHING LABOR OR MATERIALS FOR CONSTRUCTION ON YOUR PROPERTY.

12. Warranty

Warranty Terms: The Contractor warrants compliance with minimum statutory warranties required under Colorado law (typically one year minimum for workmanship and materials; longer if agreed).

Warranty Claims: [Specify Procedures for Warranty Claim Submission and Resolution].

13. Confidentiality

Option A: Confidentiality Required: The Contractor shall maintain the confidentiality of any proprietary information or plans.

Option B: No Confidentiality Requirement: No confidentiality requirement.

Public Nature: Contractor acknowledges the public nature of construction improvements and plans required for permitting and inspection.

14. Liability and Indemnification

Liability: The Contractor shall be liable for nonperformance, code violations, defective work, property damage, and personal injury.

Indemnification: The Contractor shall indemnify and hold harmless the Client from any claims, losses, or damages arising out of the Contractor's performance of this Agreement, to the extent allowed under Colorado law.

15. Termination

Termination for Cause: The Client may terminate this Agreement for cause (e.g., breach, safety violation, regulatory violation).

Termination for Convenience: The Client may terminate this Agreement for convenience upon [Number] days' written notice.

Termination Process: [Specify Termination Process, including Final Payments, Submission of As-Builts, Final Lien Waivers, Final Inspection, and Punch List Completion].

16. Dispute Resolution

Dispute Resolution Protocol: The parties shall attempt to resolve any disputes through direct negotiation, escalation to mediation, followed by binding arbitration or litigation in Colorado courts.

Venue: Venue for any legal action shall be in [County Name] County, Colorado.

Governing Law: This Agreement shall be governed by the laws of the State of Colorado.

Notice of Claims: Written notice of claims, requests for extensions, or demands for arbitration must be given within statutory time limits under Colorado law.

17. Force Majeure

Force Majeure: Neither party shall be liable for any delay or failure to perform its obligations under this Agreement due to force majeure events, including extreme weather, wildfire, or government shutdown.

Schedule and Cost Adjustments: [Specify Procedures for Schedule and Cost Adjustments Due to Force Majeure Events].

18. Regulatory Compliance Warranty

Compliance: The Contractor warrants compliance with Colorado anti-discrimination statutes, immigration verification (E-Verify or equivalent as required by C.R.S. 8-2-122), and prohibition of unlawful employment practices.

19. Prevailing Wage/Public Project Requirements

Option A: Prevailing Wage Requirements Apply: This project is subject to prevailing wage requirements.

Option B: Prevailing Wage Requirements Do Not Apply: This project is not subject to prevailing wage requirements.

20. Record-Keeping and Audits

Record-Keeping: The Contractor shall maintain accurate records of all costs and expenses incurred in connection with this Agreement.

Audits: The Client shall have the right to conduct reasonable audits/inspections of the Contractor's records as allowed under Colorado law.

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

Client:

____________________________

[Client Full Legal Name]

Contractor:

____________________________

[Contractor Full Legal Name]