Indiana construction independent contractor agreement template
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How Indiana construction independent contractor agreement Differ from Other States
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Indiana uses the ABC Test for worker classification, which can be stricter than some states' standards for independent contractors.
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Indiana law requires specific written confirmation of independent contractor status for construction work, unlike some states.
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Indiana mandates that contractors in construction carry their own workers’ compensation or explicitly waive coverage, which is not required everywhere.
Frequently Asked Questions (FAQ)
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Q: Is a written independent contractor agreement required in Indiana construction projects?
A: Yes, Indiana law requires a written agreement to clearly establish independent contractor status for construction work.
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Q: Can an independent contractor in Indiana be required to have workers’ compensation insurance?
A: Yes, Indiana law requires independent contractors in construction to have workers’ compensation or waive the coverage in writing.
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Q: Does Indiana require filing or registration of construction independent contractor agreements?
A: Generally, the agreement does not need to be filed, but it should be retained as proof of status and compliance.
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Indiana Construction Independent Contractor Agreement
This Construction Independent Contractor Agreement (the "Agreement") is made and entered into as of this [Date] by and between:
[Client Name], residing at [Client Address], hereinafter referred to as "Client,"
and [Contractor Name], whose business address is [Contractor Address], hereinafter referred to as "Contractor."
The Client desires to engage the Contractor to perform certain construction services, and the Contractor desires to perform such services, as an independent contractor.
1. Contractor Information and Licensing
Contractor's Full Legal Name: [Contractor Legal Name]
Contractor's Business Address: [Contractor Business Address]
Contractor's Phone Number: [Contractor Phone Number]
Contractor's Email: [Contractor Email]
Indiana Contractor License Number (if applicable, pursuant to IC 25-27.5): [Contractor License Number]
County/City Registration Number (if applicable): [Registration Number]
2. Scope of Work
Option A: General Description of Work: [General Description of Work]
Option B: Detailed Description of Work: See attached Exhibit A (Plans & Specifications).
The Contractor shall perform the following construction services: [Detailed description of services, e.g., framing, roofing, plumbing, electrical, etc.] in accordance with all applicable Indiana construction codes and OSHA safety regulations. Deliverable standards: [Detailed deliverable standards and quality expectations].
3. Project Site
Project Address: [Project Address]
Legal Description: [Property Legal Description]
Site Access Procedures: [Site Access Procedures]
Contractor shall adhere to all applicable Indiana location-based requirements, including permit requirements under IC 36-7-4.
4. Commencement and Completion Dates
Commencement Date: [Commencement Date]
Substantial Completion Date: [Completion Date]
Critical Milestones: [List of Milestones and Deadlines]
Daily Schedule: [Working Hours]
5. Payment
Option A: Lump Sum: Total Contract Price: [Total Contract Price]
Option B: Progress Payments: Payment Schedule: [Payment Schedule based on milestones or percentage completion]. See attached Exhibit B.
Option C: Time and Materials: Hourly Rate: [Hourly Rate], Materials Cost Plus [Markup Percentage]%.
Option D: Unit Price: Price per Unit: [Price per Unit], Unit Description: [Unit Description].
Invoicing Procedures: [Invoice Submission Details].
Retainage: [Retainage Percentage]%, if applicable, compliant with Indiana law.
Required Documentation for Payment: Lien waivers pursuant to IC 32-28-3, invoices, and progress reports.
6. Taxes
Contractor acknowledges responsibility for all applicable Indiana contractor taxes, including self-employment, income, and sales/use taxes. Contractor will receive IRS Form 1099-NEC. Contractor shall adhere to Indiana Department of Revenue guidelines.
7. Materials and Supplies
Option A: Client Responsibility: Client will provide all materials and supplies.
Option B: Contractor Responsibility: Contractor will provide all materials and supplies.
Option C: Mixed Responsibility: [Detailed Description of who is responsible for specific materials].
Responsibility for Procurement, Storage, and Quality: [Details]. Substitution or Approvals Process: [Process for material substitutions].
8. Subcontractors
Option A: Subcontractors Allowed: Contractor may hire subcontractors with Client's written approval.
Option B: Subcontractors Not Allowed: Contractor may not hire any subcontractors.
All subcontractors must meet Indiana licensing, insurance, and lien waiver provisions. Contractor remains liable for their performance.
9. Equipment
Option A: Contractor Provides All Equipment
Option B: Client Provides Some Equipment: List of Equipment Provided by Client: [List of Equipment]
Ownership, Usage, Maintenance, and Return of Client-Supplied Tools: [Detailed description]. Compliance with local Indiana equipment standards.
10. Insurance
Contractor shall maintain the following insurance policies with minimum limits:
General Liability: [Minimum Policy Limit]
Workers' Compensation: (Unless validly exempt per Indiana law: [Description of exemption requirements]) [Minimum Policy Limit]
Builder's Risk: [Minimum Policy Limit] (if applicable)
Automobile Insurance: [Minimum Policy Limit]
Contractor shall provide proof of coverage to Client.
11. Permits and Inspections
Contractor shall secure all necessary state, county, and municipal permits and inspections. Contractor shall comply with Indiana building codes, environmental and stormwater controls, and Indiana 811 rules.
12. Change Orders
All change orders must be in writing and approved by both Client and Contractor. Approval Protocols, Documentation Standards, and Pricing Mechanisms: [Details]. Compliance with Indiana consumer protection standards for written modifications.
13. Site Safety and Clean-Up
Contractor shall maintain a safe work site and comply with OSHA and Indiana Occupational Safety and Health Administration (IOSHA) regulations. Accident and incident reporting procedures: [Details]. Personal protective equipment responsibilities: [Details]. Contractor responsible for daily site clean-up.
14. Delays and Extensions
Option A: Standard Delay Clause: Standard construction delay clause applies.
Option B: Expanded Delay Clause: Addressing Indiana-specific force majeure events (e.g., weather events).
Documentation requirements for claims: [Details]. Handling of associated costs: [Details].
15. Warranties
Work Warranties and Defect Liability: [Timeframe and Standards] under Indiana law. Responsibility for correction or repair of defective work: [Details].
16. Lien Rights
Contractor shall provide pre-lien notices and waivers and adhere to Indiana lien statutes (IC 32-28-3). Both parties are advised of their statutory rights and obligations.
17. Independent Contractor Status
Contractor is an independent contractor and not an employee of Client. No benefits are provided. Contractor controls working methods. Both parties will comply with IRS and Indiana Department of Workforce Development requirements for worker classification.
18. Compliance with Laws
Contractor shall comply with all applicable Indiana labor, discrimination, non-retaliation, and immigration laws, including E-Verify compliance if required on public projects.
19. Confidentiality and Intellectual Property
Confidentiality, use of proprietary designs, assignment of intellectual property resulting from construction work, and restrictions against competing or soliciting the Client’s clients or employees (where enforceable under Indiana law): [Details].
20. Breach, Indemnification, and Limitation of Liability
Provisions for breach, damages, defect correction, indemnification, and limitations of liability, tailored to construction industry risks and Indiana legal caps: [Details].
21. Termination
Option A: Termination for Convenience: Client may terminate with [Number] days' written notice.
Option B: Termination for Cause: For material breach of this Agreement.
Notice periods, payment for work completed and materials on hand, and procedures for demobilization and site turnover: [Details].
22. Dispute Resolution
Dispute resolution process: Indiana-based mediation, followed by arbitration, and, if necessary, litigation in the county where the construction took place. Indiana law and courts are the governing jurisdiction.
23. Attachments
The following exhibits are attached and incorporated herein:
Exhibit A: Plans and Specifications
Exhibit B: Payment Schedule
Exhibit C: [Addenda]
24. Record-Keeping
Contractor shall preserve construction records, receipts, and daily logs in line with Indiana statute of limitations and best practices.
25. Miscellaneous
Severability, waiver, force majeure (with Indiana-specific events), non-assignment without consent, and full agreement/entire agreement clause: [Standard Boilerplate Language].
26. Consumer Protection
This Agreement meets or exceeds mandatory consumer protection requirements for construction services as set out in Indiana’s Home Improvement Contracts Act (if applicable).
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
_______________________________
[Client Name]
_______________________________
[Contractor Name]
