Hawaii construction independent contractor agreement template

Hawaii Construction Independent Contractor Agreement

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

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

and

[Contractor Name], residing at [Contractor Address], and if applicable, holding Hawaii Contractor's License No. [License Number], hereinafter referred to as "Contractor."

1. Scope of Work

The Contractor agrees to perform the following construction services for the Client:

Option A: Detailed description of services, tasks, phases, and technical specifications (e.g., site preparation, demolition, building, plumbing, electrical, carpentry, finish work). Include specific reference to plans or shop drawings, quality standards, and project communication protocols. [Detailed Description]

Option B: General description of services with reference to attached exhibits detailing the scope of work.

Excluded Services: The following services are specifically excluded from the scope of work: [List of Excluded Services]

2. Project Location

The project location is:

Property Address: [Property Address]

Tax Map Key (TMK): [TMK Number]

Specific Hawaii Considerations: Any relevant land use/zoning permissions, HOA requirements, or necessary access/right-of-way: [Description of Hawaii Considerations]

3. Permits, Licenses, and Approvals

Option A: The Contractor is responsible for obtaining and paying for all necessary permits, licenses, and approvals required under Hawaii laws and local ordinances. [List of Permits]

Option B: The Client is responsible for obtaining and paying for all necessary permits, licenses, and approvals.

Compliance: The Contractor shall comply with all applicable Hawaii building codes, environmental regulations, special cultural site preservation, endangered species protections, coastal management laws, and flood/hurricane readiness requirements.

4. Project Schedule

Start Date: [Start Date]

Completion Date: [Completion Date]

Expected Milestones: [List of Milestones]

Weather Delay Provisions: Consider Hawaii’s unique weather patterns and their potential impact on the schedule. [Weather Delay Clause]

Work Hour Restrictions: Adherence to local ordinances regarding work hours. [Work Hour Restrictions]

Progress Reporting: The Contractor will provide weekly/monthly progress reports to the Client: [Reporting Frequency]

Site Meetings: Regular site meetings will be held: [Meeting Schedule]

5. Compensation and Payment

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

Option B: Unit Price: The Contractor will be paid based on the following unit prices: [Unit Prices]

Option C: Hourly/Labor Rates: The Contractor will be paid at the following hourly rates: [Hourly Rates]

Line-Item Breakdown:

Labor: [Labor Cost]

Materials: [Material Cost]

Equipment: [Equipment Cost]

Mobilization/Demobilization: [Mobilization/Demobilization Cost]

Hawaii General Excise Tax (GET): [GET Amount]

Retainage (if applicable): [Retainage Percentage]

Payment Terms:

Invoicing Process: [Description of Invoicing Process]

Schedule: Payments will be made [Payment Schedule, e.g., upon milestone, monthly, completion]

Change Order Procedures: [Description of Change Order Procedures]

Lien Waivers: The Contractor will provide lien waivers with each payment request.

Late Payment Interest Rate: [Interest Rate] (within legal limits in Hawaii)

6. Independent Contractor Status

No Employment Relationship: This Agreement does not create an employment relationship between the Client and the Contractor.

Taxes: The Contractor is responsible for paying their own Hawaii GET, income taxes, and any other applicable taxes.

Insurance: The Contractor shall secure and maintain the following insurance coverages: worker’s compensation (if applicable), general liability, vehicle, and errors & omissions (if applicable).

Certificates of Insurance: The Contractor shall provide certificates of insurance to the Client, with mandatory client notification of cancellation or change in coverage.

7. Subcontractor Engagement

Compliance: Any subcontractors engaged by the Contractor must comply with Hawaii contractor licensing requirements, evidence insurance coverage, and fulfill payment/reporting duties.

Client Consent: The Contractor must obtain the Client's written consent prior to engaging any subcontractors.

8. Workplace Safety

HIOSH Compliance: The Contractor shall comply with all Hawaii Occupational Safety and Health Division (HIOSH) rules and OSHA/HIOSH training requirements.

Obligations: The Contractor is obligated to protect workers, third parties, and property.

Indemnification: The Contractor shall indemnify the Client for any non-compliance or injury related to workplace safety.

9. Material Procurement and Storage

Responsibility: [Who is responsible for material procurement, Client or Contractor?]

Delivery Schedule: [Material Delivery Schedule]

Local Sourcing: Preference for locally sourced materials (per Hawaii preference laws, if applicable).

Protection: Protection of on-site resources.

Recycling/Waste Management: [Description of Recycling/Waste Management Procedures]

Hazardous Substances: Handling of hazardous substances in compliance with applicable regulations.

Cultural Artifacts: Procedures for handling discovered cultural artifacts.

10. Change Orders

Procedure: All change orders must be mutually agreed upon and documented in writing, clearly stating the scope, price impact, and time extension.

Signatures: Change orders must be signed by both the Client and the Contractor.

11. Worksite Access and Conditions

Access: [Description of Worksite Access]

Staging: [Description of Staging Area]

Utilities: [Arrangements for Utilities]

Water Runoff/Drainage: Compliance with Hawaii Environmental Rules regarding water runoff and drainage.

Noise/Dust/Pollution Mitigation: [Noise/Dust/Pollution Mitigation Plan]

Environmental/Cultural Surveys: [Requirement for Environmental/Cultural Surveys, if applicable]

12. Documentation and Reporting

Daily Logs: [Requirement for Daily Logs]

Photo Documentation: [Requirement for Photo Documentation]

Inspection Scheduling: [Procedure for Inspection Scheduling]

Lien Waivers/Releases: [Requirements for Lien Waivers/Releases]

DCCA Reporting: Compliance with Hawaii Department of Commerce & Consumer Affairs (DCCA) reporting and contractor licensing board requirements.

13. Risk Allocation

Indemnity: [Indemnity Provisions]

Liability: [Liability for Third-Party Claims]

Limits on Damages: [Limits on Damages]

Insurance: Minimum insurance coverages: [Specify Minimum Coverages]

14. Inspection and Acceptance

Procedure: [Procedure for Inspection and Acceptance of Work]

Punch List: [Procedure for Creating and Addressing Punch List]

Defect Correction: [Procedure for Defect Correction]

Warranty: Warranty Terms (typically one year unless otherwise agreed): [Warranty Period and Terms]

Final Acceptance: Process for final acceptance, close-out, and release of retention.

15. Confidentiality

Confidential Information: The Contractor agrees to keep confidential all site data, plans, and Client's proprietary information.

16. Termination

Grounds:

Mutual Agreement

Breach

Delay/Failure to Perform

Insolvency

Loss of License

Notice: [Notice Period Required for Termination]

Compensation: Compensation for work performed (quantum meruit).

Final Payment: [Procedure for Final Payment]

Removal: Removal of tools and materials.

Liens: Obligation to clear liens.

17. Dispute Resolution

Negotiation:

Mediation:

Arbitration: Arbitration in Hawaii per the Hawaii Uniform Arbitration Act.

Jurisdiction/Venue: Jurisdiction/venue in Hawaii courts under Hawaii state law.

18. Compliance with Laws

Tax Laws: Compliance with all Hawaii tax, labor, and contractor registration laws, including General Excise Tax (GET) filings and use tax.

Labor Laws: Compliance with Hawaii laws prohibiting unlicensed contracting, discrimination, and unfair labor practices.

Documentation: The Contractor shall provide Form W-9 and submit all required GET statements.

19. Assignment/Transfer and Subcontracting

Limitations: Limitations on assignment/transfer and subcontracting.

Client Consent: Prior written Client consent is required.

20. Force Majeure

Definition: Natural disasters, earthquakes, hurricanes, pandemic/health orders, and other events beyond reasonable control.

Duties: Delay notification and mitigation duties.

21. Governing Law

State of Hawaii: This Agreement shall be governed by the laws of the State of Hawaii.

Amendments: Any changes to this Agreement must be in writing and signed by both parties.

22. Exhibits

Project-Specific Plans: [List of Attached Plans]

Permit Copies: [List of Attached Permits]

Insurance Certificates: [Attached Insurance Certificates]

Performance/Payment Bond Requirements: [Performance/Payment Bond Requirements, if applicable]

Proof of License: [Attached Proof of License]

23. Optional Clauses

Publicity/Use of Project Images: [Clause Regarding Publicity/Use of Project Images]

Background Check Requirements: [Clause Regarding Background Check Requirements]

Site Security Protocols: [Clause Regarding Site Security Protocols]

Communication Escalation Steps: [Clause Regarding Communication Escalation Steps]

Periodic Client Walk-Throughs: [Clause Regarding Periodic Client Walk-Throughs]

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

____________________________

[Client Name]

____________________________

[Contractor Name]