Illinois construction service contract template

Illinois Construction Service Contract

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

[Contractor Full Legal Name], a [Business Entity Type, e.g., Sole Proprietorship, LLC, Corporation], with its principal place of business at [Contractor Address], holding Illinois Contractor License Number [Contractor License Number], and having a contact number of [Contractor Contact Number] (hereinafter referred to as “Contractor”);

and

[Client/Owner Full Legal Name], residing at [Client/Owner Address] (hereinafter referred to as “Owner”).

WHEREAS, Owner desires to have certain construction work performed at [Project Address], Illinois; and

WHEREAS, Contractor is qualified and desires to perform such work;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

1. Project Description and Scope of Work

The Contractor shall perform the following construction work (the “Work”):

Option A: As described in Exhibit A attached hereto, which includes detailed plans, specifications, and drawings.

Option B: The Work shall include, but not be limited to, the following: [Detailed Description of Work, including referenced Illinois statutes and building codes].

The Work shall be performed in accordance with all applicable Illinois building codes, municipal ordinances, and the following standards: [List of Standards, e.g., ANSI, ASTM].

Any changes to the scope of Work must be documented in writing and approved by both parties via a Change Order as described in Section 5.

2. Permits and Approvals

Option A: Contractor shall be responsible for obtaining all necessary permits and approvals required by applicable Illinois laws, including but not limited to [List of Required Permits, e.g., Municipal Building Permit, Environmental Clearances].

Option B: Owner shall be responsible for obtaining the following permits: [List of Owner-Responsibility Permits]. Contractor shall assist Owner as reasonably requested.

For residential work subject to the Illinois Home Repair and Remodeling Act, the Contractor shall comply with all requirements, including providing the Owner with the required pamphlet before any work begins.

3. Contractor’s License and Insurance

Contractor represents and warrants that it is duly licensed and qualified to perform the Work in the State of Illinois. Proof of a valid Illinois contractor's license is attached hereto as Exhibit B.

Contractor shall maintain the following insurance coverage, compliant with Illinois law, throughout the duration of this Agreement:

General Liability Insurance: [Amount] per occurrence.

Workers’ Compensation Insurance: As required by Illinois law.

Builder’s Risk Insurance: [Amount] (if applicable).

Proof of Insurance is attached hereto as Exhibit C.

Contractor shall ensure that all subcontractors maintain adequate insurance coverage as required by Illinois law.

4. Project Timeline and Milestones

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

The following milestones shall be achieved according to the following schedule:

Milestone 1: [Milestone Description] - Completion Date: [Date]

Milestone 2: [Milestone Description] - Completion Date: [Date]

Delays caused by weather, material shortages, or other events beyond the reasonable control of the Contractor shall extend the Completion Date by a period equal to the duration of such delay. Illinois-specific weather impacts will be considered.

5. Payment Terms

The total contract price for the Work shall be [Dollar Amount].

Option A: Payment shall be made in accordance with the following schedule:

[Percentage]% upon signing of this Agreement.

[Percentage]% upon completion of [Milestone Description].

[Percentage]% upon substantial completion of the Work.

[Percentage]% (Retainage, if any, in accordance with Illinois law) upon final completion and acceptance of the Work.

Option B: Payment shall be made on a [Lump Sum/Milestone/Percentage Completion] basis.

Any changes to the scope of Work shall be subject to a Change Order, which must be in writing and approved by both parties. Change Orders shall include the cost and time impact of the change.

Contractor shall provide Owner with lien waivers upon each payment, in accordance with Illinois law.

Late payments shall be subject to a late payment fee of [Percentage]% per month.

All applicable Illinois taxes are included in the contract price.

6. Materials and Supplies

Option A: Contractor shall supply all materials and supplies necessary for the completion of the Work.

Option B: Owner shall supply the following materials: [List of Materials Supplied by Owner].

All materials shall be of good quality and shall meet the specifications outlined in Exhibit A.

Contractor warrants that all materials supplied by Contractor shall be free from defects in materials and workmanship.

7. Change Orders

Any changes to the scope of Work, contract price, or schedule must be documented in a written Change Order.

Change Orders must be signed by both the Contractor and the Owner to be effective.

Each Change Order shall include a detailed description of the change, the cost of the change, and the impact on the project schedule.

All Change Orders must comply with Illinois requirements.

8. Mechanic’s Lien Provisions

Owner is hereby notified that Contractor has the right to file a mechanic’s lien against the property if Contractor is not paid for the Work performed, in accordance with Illinois law.

Contractor shall provide Owner with lien waivers upon each payment.

9. Risk Allocation

Contractor shall be responsible for site safety and shall comply with all applicable Illinois OSHA regulations.

Contractor shall indemnify and hold Owner harmless from any and all claims, losses, damages, and expenses arising out of or relating to the Work, except to the extent caused by the negligence or willful misconduct of Owner.

Responsibility for pre-existing site conditions, hazardous materials, or utilities location shall be as follows: [Specify Responsibility].

10. Right to Stop Work, Access to Premises, and Owner Responsibilities

Contractor shall have the right to stop Work if Owner fails to make timely payments as required by this Agreement.

Owner shall provide Contractor with reasonable access to the premises for the purpose of performing the Work.

Owner shall be responsible for providing the following utilities: [List of Utilities, e.g., Water, Electricity].

Owner shall be responsible for securing any necessary consents from adjacent property owners.

11. Subcontractors and Suppliers

Contractor may use subcontractors and suppliers to perform portions of the Work.

Contractor shall ensure that all subcontractors are licensed and insured in accordance with Illinois statutes.

Contractor shall provide Owner with a list of all subcontractors and suppliers upon request.

12. Project Supervision and Inspections

Contractor shall provide adequate supervision of the Work.

Owner shall have the right to inspect the Work at reasonable times.

Progress meetings shall be held [Frequency].

Owner and Contractor shall sign off on milestones upon completion.

13. Warranty

Contractor warrants that the Work shall be free from defects in workmanship for a period of [Number] year(s) from the date of substantial completion.

For new residential construction, there is a one-year statutory implied warranty of habitability under Illinois law.

Contractor shall promptly correct any defects in workmanship that are discovered during the warranty period.

14. Remedies for Breach

If either party breaches this Agreement, the non-breaching party shall have the right to terminate this Agreement upon written notice.

The non-breaching party shall be entitled to damages for breach of contract, including but not limited to direct damages and consequential damages.

Responsibility for defective or delayed work shall be as follows: [Specify Responsibility].

Refund procedures shall be as follows: [Specify Refund Procedures].

15. Dispute Resolution

Any disputes arising out of or relating to this Agreement shall be resolved through [Negotiation/Mediation/Non-Binding Arbitration/Submission to Courts], in accordance with Illinois law.

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

Venue for any legal action shall be in the county where the project is located.

Allocation of attorney’s fees and dispute costs shall be as permitted by Illinois law.

16. Prompt Payment Act Compliance

For public projects or large contracts, the Contractor shall comply with the Illinois Prompt Payment Act.

17. Consumer Rights Disclosures

For home repair or small residential jobs, the Contractor shall comply with all mandatory consumer rights disclosures per Illinois state law, including providing the required pamphlet and verbal estimate disclosures under the Home Repair and Remodeling Act.

18. Data Privacy and Security

Contractor shall comply with all applicable Illinois data privacy and security laws, including the Illinois Biometric Information Privacy Act (if applicable).

19. Environmental and Safety Compliance

Contractor shall comply with all applicable environmental and safety requirements per Illinois Environmental Protection Agency rules and local municipal codes. Contractor shall adhere to Responsible Jobsite Safety Practices.

20. Final Documentation

Upon completion of the Work, Contractor shall provide Owner with the following final documentation:

As-built drawings.

Completion certificates.

Warranty documents.

Lien waivers.

Permits final signoffs.

User/maintenance manuals.

21. Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Agreement due to any cause beyond its reasonable control, including but not limited to acts of God, war, strikes, severe weather (including Illinois-specific events), or government shutdowns.

Suspension and resumption procedures shall be as follows: [Specify Procedures].

Both parties shall have a duty to mitigate delays.

22. Assignment

Neither party may assign this Agreement without the prior written consent of the other party.

23. Non-Waiver of Statutory Rights

No provision of this Agreement shall be deemed to waive any rights granted to Owner or Contractor under Illinois law.

24. Record-Keeping and Audit

Contractor shall maintain accurate records of all costs and expenses incurred in connection with the Work.

If a public body is a party, Contractor shall comply with the Illinois Freedom of Information Act.

25. Notices

All notices required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally or sent by certified mail, return receipt requested, to the addresses set forth above. Electronic notices accepted per Illinois Electronic Commerce Security Act.

26. Amendments

This Agreement may be amended only by a written instrument signed by both parties.

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. Entire Agreement

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

29. Execution

This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

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

[Contractor Full Legal Name]

By: [Contractor Signature]

[Contractor Printed Name]

[Contractor Title]

[Client/Owner Full Legal Name]

By: [Client/Owner Signature]

[Client/Owner Printed Name]