Hawaii construction service contract template

Hawaii Construction Service Contract

This Hawaii Construction Service Contract ("Contract") is made and entered into as of this [Date] by and between:

Contractor: [Contractor's Full Legal Name], a [State] [Corporation/LLC/Sole Proprietorship] with its principal place of business at [Contractor's Business Address] and Hawaii Contractor's License No. [Contractor's License Number], whose contact information is: Phone: [Contractor's Phone Number], Email: [Contractor's Email Address]. The Contractor's Responsible Managing Employee (RME) is [RME Name], and the Project Manager is [Project Manager Name].

Client: [Client's Full Legal Name], residing at [Client's Address] and/or located at [Project Address, if different from residence]. Client's contact information is: Phone: [Client's Phone Number], Email: [Client's Email Address].

1. Project Description and Scope of Work:

The Contractor agrees to perform the following work (the "Work") at the property located at [Project Address], Tax Map Key (TMK): [TMK Number]. The Work shall be performed in accordance with the following:

• Option A: Attached Exhibit A - Detailed Construction Specifications and Drawings.
• Option B: The Work shall consist of [Detailed Description of Work], including but not limited to: [List of specific tasks/deliverables].
• Option C: The Work shall be performed according to the plans and specifications prepared by [Architect/Engineer Name] dated [Date of Plans], incorporated herein by reference.

This Work is subject to all applicable building, zoning, fire, and health codes enforced in the State of Hawaii and [Name of County] County. This includes but is not limited to [Specific Hawaii Revised Statutes and County Codes].

The Work includes the following professional services:

• Option A: Architectural services provided by [Architect Name].
• Option B: Engineering services provided by [Engineer Name].
• Option C: Surveying services provided by [Surveyor Name].
• Option D: No professional services are included.

2. Permits and Approvals:

The following permits and approvals are required for the Work: [List of Required Permits and Approvals].

Responsibility for obtaining and paying for the required permits and approvals shall be as follows:

• Option A: The Contractor shall be responsible for obtaining all necessary permits and approvals.
• Option B: The Client shall be responsible for obtaining all necessary permits and approvals.
• Option C: The Contractor shall obtain the following permits: [List of Permits Contractor Obtains]. The Client shall obtain all other permits.

Payment Responsibility:

• Option 1: The Contractor is responsible for all permit fees.
• Option 2: The Client is responsible for all permit fees.
• Option 3: Permitting fees will be shared as follows: [Describe Cost-Sharing].

3. Materials and Labor:

The Contractor shall provide:

• Option A: Both labor and materials for the Work.
• Option B: Only labor for the Work. The Client shall provide all materials.
• Option C: Only materials for the Work. The Client shall provide all labor.

The Contractor is licensed in the State of Hawaii in accordance with HRS Chapter 444, and confirms all required licenses and registrations are current and valid. The Contractor’s license can be verified at [Hawaii DCCA website].

4. Price and Payment Terms:

The total price for the Work shall be:

• Option A: A lump sum of [Dollar Amount], subject to change orders as provided herein.
• Option B: Cost plus [Percentage]%, subject to a guaranteed maximum price of [Dollar Amount].
• Option C: Unit prices as set forth in Exhibit B.

Payment Schedule:

• Option A: Payments shall be made according to the following schedule of values: [Detailed Payment Schedule]. Payments are contingent on inspection approvals by [Inspector's Name/Agency] or milestones as follows: [Milestones].
• Option B: Payments shall be made in monthly installments based on the percentage of work completed.

Retainage:

• Option A: The Client shall retain [Percentage]% of each payment until final completion of the Work.
• Option B: No retainage shall be held.

Change Orders: All change orders must be in writing and signed by both parties prior to the commencement of the changed work.

Hawaii General Excise Tax (GET): The total price includes Hawaii GET at the current rate of [Percentage]%. If applicable, transient accommodations tax (TAT) at [Percentage]% is included on lodging or similar items per Hawaii law.

Invoices shall be submitted by the Contractor [Frequency, e.g., monthly] and are due within [Number] days of receipt, in compliance with Hawaii's Prompt Payment Law (HRS §444-25). The Contractor will provide lien releases upon payment.

5. Construction Timeline:

The Work shall commence on [Start Date] and shall be substantially completed on or before [Completion Date], subject to excusable delays as provided herein.

The Contractor's normal working hours are [Start Time] to [End Time], Monday through Friday, excluding holidays observed by the State of Hawaii.

Delays:

• Delays caused by weather, acts of God, or other circumstances beyond the Contractor's reasonable control shall extend the completion date by a period equal to the duration of the delay.
• The Contractor shall provide written notice of any delay within [Number] days of the commencement of the delay. All claims for extension must adhere to Hawaii-specific notice and documentation practices.

6. Lien Rights:

The Contractor reserves all lien rights in accordance with HRS Chapter 507 (Mechanic's and Materialman's Liens).

The Contractor shall provide preliminary notice of lien rights to the Client as required by law.

The Contractor will provide waivers or releases upon payment.

7. Insurance:

The Contractor shall maintain the following insurance coverage:

• General Liability Insurance: [Dollar Amount] per occurrence.
• Workers' Compensation Insurance: As required by HRS §386.
• Builder's Risk Insurance: [Dollar Amount].
• Auto Insurance: [Dollar Amount].

Certificates of insurance shall be provided to the Client prior to the commencement of the Work.

Indemnification: To the fullest extent permitted by Hawaii law, the Contractor shall indemnify and hold harmless the Client from and against any claims, damages, losses, and expenses arising out of the Contractor's performance of the Work.

8. Subcontractors:

The Contractor may subcontract portions of the Work to licensed subcontractors.

The Contractor shall provide the Client with notice of any proposed subcontractors and shall obtain the Client's approval prior to hiring any subcontractor.

All subcontractors shall comply with all applicable Hawaii employment and wage laws, including HRS §§104 & 444.

The Contractor shall verify proper licensing and tax compliance of all subcontractors and suppliers.

9. Environmental Compliance:

The Contractor shall comply with all applicable local rules on hazardous materials, waste disposal, stormwater management, and cultural/historic site protection per SHPD and Coastal Zone Management.

The Contractor shall condition site access and control noise/dust to local standards.

10. Project Supervision and Inspection:

The Contractor shall provide adequate project supervision and quality assurance to ensure that the Work is performed in accordance with the Contract and all applicable codes and standards.

The Contractor shall coordinate with county inspections and shall correct any deficiencies identified during inspections.

11. Owner Obligations:

The Client shall provide the Contractor with access to the project site and shall ensure that the site is free from hazards.

The Client shall be responsible for obtaining all necessary utility connections.

12. Unforeseen Conditions:

If unforeseen conditions, such as subsurface or archaeological features, are discovered during the Work, the Contractor shall immediately notify the Client and shall suspend work in the affected area until a resolution is reached.

Any changes to the Work required as a result of unforeseen conditions shall be subject to a change order.

13. Termination:

Termination for Cause: Either party may terminate this Contract for cause if the other party breaches the Contract. The non-breaching party must provide written notice of the breach and an opportunity to cure the breach within [Number] days.

Termination for Convenience: The Client may terminate this Contract for convenience upon [Number] days' written notice to the Contractor. In the event of termination for convenience, the Client shall pay the Contractor for all work performed and materials supplied up to the date of termination, plus reasonable profit and overhead.

Termination for Non-Payment: If the Client fails to make payments when due, the Contractor may terminate this Contract after providing [Number] days written notice and an opportunity to cure.

14. Default and Damages:

In the event of default by the Contractor, the Client may be entitled to damages, including but not limited to the cost of completing the Work and any consequential damages permitted by Hawaii law.

Liquidated damages for delay, if any, shall be [Dollar Amount] per day.

15. Warranties:

The Contractor warrants that all Work shall be performed in a good and workmanlike manner and that all materials shall be of good quality.

For new homes, the warranty periods shall be:

• One year on labor.
• Two years on plumbing, electrical, and HVAC.

Warranty claims must be submitted in writing within the applicable warranty period.

16. Dispute Resolution:

Any disputes arising out of or relating to this Contract shall be resolved as follows:

• Option A: Mediation in Hawaii, facilitated by a mediator agreed upon by the parties.
• Option B: Arbitration in accordance with the Hawaii Uniform Arbitration Act. The arbitration shall take place in [Name of County] County.
• Option C: Litigation in the courts of the State of Hawaii, [Name of Circuit Court] Circuit.

17. Notice:

All notices required or permitted under this Contract 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 electronic mail (with confirmation of receipt) to the following addresses:

If to Contractor:

• Address: [Contractor's Business Address]
• Email: [Contractor's Email Address]

If to Client:

• Address: [Client's Address]
• Email: [Client's Email Address]

18. Other Provisions:

Hawaii Law: This contract is governed by Hawaii law, including privacy, record retention, and consumer protection requirements.

Assignment: This contract may not be assigned or delegated by either party without the written consent of the other party.

Entire Agreement: This Contract constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

Amendments: This Contract may be amended only by a written instrument signed by both parties.

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

DBE: [If applicable, add language addressing public works projects, Good Faith Effort for DBE participation, compliance with procurement statutes, and mandatory reporting for public entities].

Plans and Drawings: All plans, drawings, and documents are the property of [Architect or Contractor], with owner-use rights as agreed.

Local Requirements: [Add any local requirements applicable to the county or municipality where the work occurs, such as right-of-way management, utility coordination, or neighbor notification].

IN WITNESS WHEREOF, the parties have executed this Hawaii Construction Service Contract as of the date first written above.

[Contractor's Full Legal Name]

By: [Contractor's Signature]

Name: [Printed Name of Contractor]

Title: [Title of Contractor]

[Client's Full Legal Name]

By: [Client's Signature]

Name: [Printed Name of Client]