Colorado construction service contract template

Colorado Construction Services Contract

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

• [Contractor Full Legal Name], with a principal place of business at [Contractor Address], Colorado contractor license number [Contractor License Number] (the “Contractor”), and
• [Owner Full Legal Name], residing at [Owner Address] (the “Owner”).

Project Title: [Project Title]

1. Project Description

• Option A: Detailed Description
  • The Contractor shall perform the following construction services (the “Work”) at the property located at [Project Address] (the “Project Site”) in accordance with the plans and specifications described in [List of Drawings and Specifications], which are attached hereto and incorporated herein by reference. The Work shall consist of [Detailed Description of Work]. This includes, but is not limited to, the following phases: [Phase 1, Phase 2, etc.]. All materials must meet the standards and brand specified in [Materials Specifications]. Change orders will be processed according to section 4 below, in compliance with Colorado's Construction Lien Law.
• Option B: Abbreviated Description
  • The Contractor shall perform the Work as described in Exhibit A, attached hereto and incorporated herein by reference, at the property located at [Project Address].

2. Permits and Approvals

• Option A: Contractor Responsibility
  • The Contractor shall be responsible for obtaining and paying for all necessary permits and approvals required by applicable Colorado building codes and local ordinances, including but not limited to permits from [List of Permitting Authorities]. The Contractor shall comply with all requirements of the Colorado Department of Regulatory Agencies (DORA).
• Option B: Owner Responsibility
  • The Owner shall be responsible for obtaining and paying for all necessary permits and approvals. The Contractor shall assist the Owner in obtaining such permits.
• Option C: Shared Responsibility
  • The Contractor shall obtain [Specific Permits], and the Owner shall obtain [Specific Permits]. Both parties shall cooperate to ensure compliance with Colorado building codes and local ordinances.

3. Project Schedule

• Option A: Fixed Dates
  • The Contractor shall commence the Work on or before [Start Date] and shall substantially complete the Work on or before [Completion Date].
• Option B: Milestone Based
  • The Contractor shall complete the Work in accordance with the following milestones:
    • Milestone 1: [Milestone Description] - Completion Date: [Date]
    • Milestone 2: [Milestone Description] - Completion Date: [Date]
  • Work hours are from [Start Time] to [End Time], Monday through Friday, excluding legal holidays and as allowed by local noise ordinances. Extensions due to weather (accounting for Colorado's climate), delays, and other unforeseen circumstances will be handled according to section 8 below, referencing Colorado's Right to Cure law. Liquidated damages for failure to meet the schedule will be [Dollar Amount per Day] per day.
• Option C: Time and Materials plus agreed period
  • The work shall be done under a time and materials basis as in section 4 with an approximate completion time of [Estimated completion time].

4. Contract Price and Payment

• Option A: Fixed Price
  • The total contract price for the Work shall be [Dollar Amount], inclusive of all labor, materials, and applicable taxes.
  • Breakdown:
    • Labor: [Dollar Amount]
    • Materials: [Dollar Amount]
    • Contingency: [Dollar Amount]
    • Alternates (if any): [Dollar Amount]
  • Payment shall be made according to the following schedule:
    • Initial Deposit: [Dollar Amount] due upon signing of this Agreement.
    • Progress Payments: [Percentage]% of the value of Work completed, payable upon submission of invoice and approval by Owner.
    • Final Payment: [Percentage]% due upon substantial completion of the Work and Owner's final acceptance.
  • Retainage: [Percentage]% will be withheld from each progress payment and released upon final completion and acceptance of the Work and submission of final lien waivers.
• Option B: Cost Plus Fee
  • The contract price shall be the actual cost of the Work plus a fee of [Percentage]% or [Dollar Amount].
  • Owner shall be provided with receipts and documentation of all costs.
• Option C: Time and Materials
  • The contract price shall be based on the Contractor's hourly rate of [Dollar Amount] per hour for labor and the actual cost of materials.
  • Contractor shall provide Owner with a written estimate of the total cost of the Work prior to commencement.

All payments shall be subject to Colorado's Prompt Payment Statute (C.R.S. § 24-91-101 et seq.). Penalties for late payment will be [Percentage]% per month. The disbursement process, withholding rights, proper invoice requirements, and dispute resolution for billing are all governed by Colorado law. Lien waivers shall be provided in accordance with C.R.S. § 38-22-119.

5. Change Orders

• All changes to the Work must be documented in a written change order signed by both the Contractor and the Owner.
• The change order shall include a detailed description of the change, the cost of the change, and any changes to the project schedule.
• Pricing methodology:
  • Option A: Agreed Fixed Price
  • Option B: Cost Plus Fee
  • Option C: Time and Materials
• The process for change orders or extra work, including documentation, pricing methodology, approval process, and compliance with Colorado’s Construction Trust Fund Statute, will be followed.

6. Materials

• The Contractor shall procure all materials necessary for the Work.
• All materials shall be new, unless otherwise specified, and shall meet the specifications outlined in the Project Description.
• Brand and grade of materials: [Specific Brands and Grades]
• Substitution of materials shall only be permitted with the prior written approval of the Owner.
• The Contractor is responsible for the storage and protection of all materials on the Project Site.

7. Safety

• The Contractor shall comply with all applicable Colorado safety statutes, OSHA regulations, environmental protection laws, dust and noise ordinances.
• The Contractor shall maintain a safe working environment and shall be responsible for the safety of all personnel on the Project Site.
• The Contractor shall implement and maintain a written safety plan.

8. Insurance

• The Contractor shall maintain the following insurance coverage:
  • Worker's Compensation Insurance: As required by Colorado law.
  • General Liability Insurance: [Dollar Amount] per occurrence.
  • Property Damage Insurance: [Dollar Amount] per occurrence.
  • Builder's Risk Insurance: Covering the full replacement value of the Work.
• The Contractor shall provide the Owner with certificates of insurance evidencing such coverage prior to the commencement of the Work meeting Colorado minimums.

9. Warranty

• The Contractor warrants that the Work will be performed in a good and workmanlike manner and that all materials will be free from defects for a period of [Number] year(s) from the date of substantial completion.
• Procedures for making claims: [Describe Claim Procedure]
• Coverage for defects: [Describe Coverage]
• Limitation of liability: Consistent with Colorado law.

10. Site Access and Coordination

• The Owner shall provide the Contractor with reasonable access to the Project Site.
• The Contractor shall coordinate its activities with the Owner and other contractors on the Project Site.
• The Contractor shall protect existing structures, utilities, landscaping, and traffic during the performance of the Work.
• The Contractor shall comply with all local restrictions, including water use and erosion controls.

11. Owner Responsibilities

• The Owner shall provide the Contractor with timely approvals of shop drawings, submittals, and change orders.
• The Owner shall provide the Contractor with access to site utilities.
• The Owner shall provide the Contractor with any necessary site surveys and design documents.
• The Owner shall be responsible for any delays caused by the Owner or its agents.

12. Subcontractors

• The Contractor may use subcontractors to perform portions of the Work.
• All subcontractors shall be licensed and insured per Colorado requirements.
• Subcontractor approval process: [Describe Approval Process]
• All subcontractors must comply with the Davis-Bacon Act where federally funded.

13. Lien Waivers

• The Contractor shall provide the Owner with lien waivers from all subcontractors and suppliers upon payment.
• Lien waiver procedures and waiver form requirements shall comply with C.R.S. § 38-22-119.
• The Contractor shall provide notice of right to withhold payment and notification to the owner of mechanic’s lien rights, including mandatory disclosure compliant with the Colorado mechanic’s lien statutes (C.R.S. § 38-22-101 et seq.).

14. Compliance with Laws

• The Contractor shall comply with all applicable federal, state, and local laws and regulations, including Colorado anti-discrimination and labor laws.
• Wage rates, prevailing wage (if public project), employment classification, and minimum wage requirements shall comply with Colorado law.

15. Unforeseen Conditions

• In the event of unforeseen conditions, such as concealed or hazardous materials or environmental contamination, the Contractor shall immediately notify the Owner.
• The parties shall negotiate in good faith to determine the appropriate course of action, consistent with Colorado statutes.

16. Termination

• Option A: Termination for Cause
  • Either party may terminate this Agreement for cause upon written notice to the other party.
  • Cause shall include, but not be limited to, material breach of this Agreement.
• Option B: Termination for Convenience
  • The Owner may terminate this Agreement for convenience upon written notice to the Contractor.
  • Compensation for completed work, reconciliation of payments, removal of equipment and personnel, and procedures for the release of retained funds and lien waivers shall be as defined below.

Upon termination, the Contractor shall be entitled to compensation for all Work completed and materials purchased prior to the date of termination. Notice requirements, compensation for completed work, reconciliation of payments, removal of equipment and personnel, and procedures for the release of retained funds and lien waivers must be followed.

17. Force Majeure

• Neither party shall be liable for any delay or failure to perform its obligations under this Agreement due to a force majeure event, including but not limited to acts of God, weather, acts of nature, wildfires, government orders, or material shortages.
• Documentation obligations and rights to extension shall be as defined by Colorado law.

18. Project Documentation

• The Contractor shall maintain accurate and complete project documentation, including plans, as-builts, daily logs, inspections, and approvals.
• Timelines for turnover to the owner, and electronic submission if required by local authority, shall be as follows: [Describe Timeline].

19. Indemnification

The Contractor shall indemnify, defend, and hold harmless the Owner from and against any and all claims, losses, damages, liabilities, and expenses arising out of or relating to the Contractor's performance of the Work. Taking into account proportional liability and insured limits as interpreted under Colorado law.

20. Quality Assurance

• The Owner shall have the right to inspect the Work at any time.
• The Contractor shall correct any non-conformities at its expense.
• Acceptance process, certificate of substantial and final completion, and dispute procedures for punch list work shall be as follows: [Describe Acceptance Process].

21. Dispute Resolution

Any disputes arising out of or relating to this Agreement shall be resolved through alternative dispute resolution processes, including negotiation, mediation, and arbitration in Colorado.

22. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado. Venue shall be in Colorado courts. Severability and enforceability shall be per Colorado contract law.

23. Confidentiality

The parties agree to hold confidential all proprietary or project information disclosed by one party to the other. Data security shall account for Colorado privacy requirements and public project disclosure laws.

24. Notice

All notices and communications shall be in writing and shall be deemed to be duly given when delivered personally, sent by certified mail, or sent by email to the addresses set forth above. Compliance with Colorado’s Uniform Electronic Transactions Act where relevant.

25. Local Ordinances

The Contractor shall comply with all applicable local HOA, municipal, and county-specific ordinances affecting construction activities in Colorado, including mountain, wildfire zone, and water regulations.

26. Financial Solvency and Bonds

The Contractor shall provide evidence of its financial solvency, bonds (performance, payment, warranty), and surety requirements as dictated by Colorado’s statutory provisions for public and private projects.

27. Residential Disclosures (If Applicable)

If this is a residential project, the Contractor shall provide the disclosures and notices required under Colorado’s Homeowner Protection Act (C.R.S. § 13-20-806), right to pre-lien notice, and mandatory pamphlets about homeowner rights.

28. Energy Codes and Green Building (If Applicable)

This project is subject to [List Applicable Codes] energy codes, green building, or sustainable construction requirements per Colorado statutes or local codes.

29. Intellectual Property

The Contractor reserves intellectual property rights in plans, drawings, and other project documents. The owner’s right to use such documents for alterations or future work is defined as follows: [Describe Owner's Rights].

30. Assignment

Neither party may assign this Agreement without the prior written consent of the other party. Procedures for transfer of warranties and maintenance manuals to owner upon completion are as follows: [Describe Transfer Process].

31. Contractor Obligations

The Contractor shall comply with all local, county, state, and federal laws applicable to the Work in Colorado, with specific reference to laws and codes relevant to the project’s location and scope.

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

Contractor:

____________________________
[Contractor Full Legal Name]

By: ____________________________
[Contractor Printed Name]
[Contractor Title]

Owner:

____________________________
[Owner Full Legal Name]