Delaware construction service contract template

Delaware Construction Service Contract

This Delaware Construction Service Contract ("Agreement") is made and entered into as of [Effective Date], by and between:

[Owner Name], residing at [Owner Address], hereinafter referred to as "Owner,"

and

[Contractor Name], a [Contractor Entity Type] with its principal place of business at [Contractor Address], Delaware Contractor License Number [Contractor License Number], hereinafter referred to as "Contractor."

1. Project Description

The project consists of [brief summary of work] at the property located at [Project Address], Parcel Number: [Parcel Number], and further described as follows: [Detailed Project Description including site-specific requirements and Delaware location information, zoning information].

2. Scope of Work

The Contractor shall perform the following work (the "Work"):

• Option A: Provide all labor, materials, equipment, and supervision necessary to complete the Work as described in Exhibit A.
• Option B: Provide labor only, with the Owner responsible for procuring all materials.
  • Material Procurement Details: [Owner specifies material procurement process]

3. Permits and Approvals

• Option A: The Contractor shall be responsible for obtaining all necessary permits and approvals from Delaware authorities, including the [Specific Delaware Authority, e.g., Department of Land Use], related to the Work. The costs associated with such permits and approvals shall be [Responsible Party, e.g., Contractor or Owner]’s responsibility.
• Option B: The Owner shall be responsible for obtaining all necessary permits and approvals. The Contractor shall cooperate with the Owner in obtaining such permits and approvals.

4. Work Schedule

The Contractor shall commence the Work on [Start Date] and shall diligently pursue the Work to completion no later than [Completion Date], subject to excusable delays as defined herein.

• Project Milestones:
  • Milestone 1: [Milestone Description] - Completion Date: [Date]
  • Milestone 2: [Milestone Description] - Completion Date: [Date]

5. Deliverables and Acceptance

The Contractor shall provide the following deliverables: [List of Deliverables]. Acceptance of the Work shall be determined by [Party Responsible for Inspection, e.g., Owner, Third-Party Inspector, Delaware State Inspector] upon completion of a final inspection and the creation of a punch list, if necessary. Final acceptance shall comply with Delaware occupancy standards.

6. Site Access and Security

The Contractor shall have access to the project site during reasonable hours and shall be responsible for maintaining the security of the site during the Work. Work hours shall comply with local noise ordinances. [Specific details regarding site access, security, work hours, laydown areas, material storage].

7. Price and Payment

The total contract price is [Dollar Amount].

• Payment Schedule:
  • Payment 1: [Percentage or Dollar Amount] upon signing of this Agreement.
  • Payment 2: [Percentage or Dollar Amount] upon completion of [Specific Task/Milestone].
  • Final Payment: [Percentage or Dollar Amount] upon final acceptance of the Work.
• Retainage: [Percentage] retainage will be withheld from each progress payment and released in accordance with Delaware's Construction Payment Law.

8. Taxes

The Contractor is responsible for all applicable Delaware taxes, including gross receipts or local taxes. [Specific details regarding sales tax exemption, if applicable].

9. Insurance

The Contractor shall maintain the following insurance policies:

• General Liability Insurance: [Dollar Amount] per occurrence.
• Builder's Risk Insurance: [Dollar Amount].
• Auto Liability Insurance: [Dollar Amount].
• Workers' Compensation Insurance: As required by Delaware law.

The Contractor shall provide certificates of insurance to the Owner prior to commencement of the Work and shall indemnify the Owner against any claims arising from the Work, consistent with Delaware statutes.

10. License Verification

The Contractor warrants that it is duly licensed in the State of Delaware to perform the Work and shall maintain such license throughout the term of this Agreement.

11. Prevailing Wage (If Applicable)

• Option A: This project is subject to Delaware prevailing wage laws. The Contractor shall comply with the prevailing wage rates as determined by the Delaware Department of Labor.
• Option B: This project is not subject to Delaware prevailing wage laws.

12. Change Orders

All change orders must be in writing and signed by both parties. Change orders shall include a detailed description of the change, the reason for the change, and the cost of the change.

• Change Order Pricing: [Method for determining change order pricing].

13. Delays

• Excusable Delays: Delays caused by force majeure, weather conditions constituting abnormal weather in Delaware according to precedent, or governmental delays shall be excusable delays.
• Inexcusable Delays: Delays caused by the Contractor shall be inexcusable delays.

14. Retainage and Final Payment

Retainage shall be released in accordance with Delaware’s Construction Payment Law. Final payment is contingent upon submission of a completed Delaware Notice of Completion and receipt of all lien releases.

15. Mechanics’ Lien Rights

The Contractor shall comply with Delaware mechanics’ lien laws, including providing preliminary notice, waiver and release forms, and final lien waivers.

16. Indemnification

The Contractor shall indemnify, defend, and hold harmless the Owner from and against any and all claims, damages, losses, and expenses arising out of or resulting from the performance of the Work, except to the extent caused by the sole negligence of the Owner, in accordance with Delaware law.

17. Warranties

The Contractor warrants that the Work will be performed in a good and workmanlike manner, in accordance with industry standards.

• Warranty Period: [Number] year(s) from the date of completion.

18. Dispute Resolution

Any disputes arising out of or relating to this Agreement shall be resolved through:

• Option A: Mediation in Delaware.
• Option B: Binding arbitration in Delaware.
• Option C: Litigation in the courts of the State of Delaware.

Delaware law and venue shall govern all contract matters.

19. Hazardous Materials

The Contractor shall be responsible for handling any hazardous materials encountered during the Work in compliance with Delaware Department of Natural Resources and Environmental Control (DNREC) requirements.

20. Submittals and Record Keeping

The Contractor shall be responsible for providing all necessary submittals and maintaining accurate records of the Work.

21. Subcontractor Payment

The Contractor shall comply with Delaware’s Prompt Payment Act in paying its subcontractors and suppliers.

22. Termination

• For Convenience: The Owner may terminate this Agreement for convenience upon [Number] days written notice to the Contractor.
• For Cause: Either party may terminate this Agreement for cause upon [Number] days written notice to the other party. Permissible causes include persistent failure to comply with Delaware building codes.

23. Default and Remedies

If either party defaults under this Agreement, the non-defaulting party shall have all remedies available at law or in equity, including the right to suspend work, withhold payment, and pursue claims for damages or injunctive relief under Delaware law.

24. Confidentiality

[Specify Confidentiality Terms, if applicable]

25. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written. All modifications to this contract must be in writing and signed by both parties.

26. Notice

All notices under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally, sent by certified mail, return receipt requested, or sent by reputable overnight courier service to the addresses set forth above.

27. Severability

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

28. Governing Law

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

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

____________________________

[Owner Name]

____________________________

[Contractor Name]

Exhibit A: Detailed Scope of Work

[Detailed description of the Work, including specific tasks, phases, materials, techniques, equipment, brand/model specifications, and Delaware building code references.]