Indiana construction service contract template
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How Indiana construction service contract Differ from Other States
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Indiana’s mechanic’s lien laws require strict compliance with specific notice and filing deadlines, differing from many other states.
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Indiana mandates unique contractor licensing requirements that can affect the validity and enforceability of construction contracts.
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Retainage on public projects in Indiana cannot exceed 10%, and contractors must follow particular state escrow procedures.
Frequently Asked Questions (FAQ)
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Q: Is a written construction service contract required by law in Indiana?
A: While Indiana law does not always require a written contract, it is strongly recommended for clear terms and dispute prevention.
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Q: What is the mechanic’s lien notice period in Indiana?
A: Contractors must generally file a notice of intention to hold a lien within 60 days (residential) or 90 days (commercial) of last labor.
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Q: Are there specific contractor licensing requirements in Indiana?
A: Yes, building contractors must comply with state and sometimes municipal licensing laws. Always verify requirements for your project.
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Indiana Construction Services Contract
This Indiana Construction Services Contract (the "Agreement") is made and entered into as of this [Date of Execution], by and between:
[Contractor Full Legal Name], whose business address is [Contractor Business Address], and if applicable, Indiana Contractor License Number [Contractor License Number], hereinafter referred to as "Contractor,"
and
[Client/Owner Full Legal Name], whose business address is [Client/Owner Business Address], hereinafter referred to as "Owner."
1. Project Description
The project location is: [Full Property Address], and the legal description (if available) is: [Legal Description].
Scope of Work: The Contractor shall perform the following services: [Detailed Description of Services, Phases, Deliverables, Construction Methods]. This includes but is not limited to:
Option A: General Contracting
Option B: Subcontracting (Specific Trade: [Specific Trade])
Option C: Design-Build
Option D: Specialty Trade Work (Specific Trade: [Specific Trade])
Anticipated Subcontractors/Consultants:
[Subcontractor/Consultant Name], License Number: [License Number], Contact: [Contact Information], Scope: [Scope of Work]
2. Licensing and Registration
Contractor warrants that it is properly licensed, bonded, and insured in the State of Indiana and is in compliance with all applicable Indiana Construction Industry Licensing Board requirements and registration with the Indiana Secretary of State. Contractor shall maintain current and valid registrations and licenses throughout the project duration.
Contractor's insurance certificates are attached as Exhibit [Exhibit Letter].
3. Project Schedule
Start Date: [Start Date]
Substantial Completion Date: [Substantial Completion Date]
Project Completion Date: [Project Completion Date]
Project Milestones and Timeline are detailed in Exhibit [Exhibit Letter].
Changes and extensions must be approved in writing via a Change Order (see Section 5).
4. Permitting Obligations
Responsibility for obtaining all required state, county, city, and township permits, notices, and inspection scheduling under Indiana Code Title 36 and local ordinances rests with:
Option A: Contractor
Option B: Owner
Contractor shall provide Owner with copies of all permits obtained.
5. Payment Terms
Total Contract Price: [Total Contract Price]
Option A: Fixed Price
Option B: Cost-Plus (with [Percentage]% markup)
Option C: Time & Materials (hourly rates: [Hourly Rates])
Option D: Guaranteed Maximum Price (GMP) of [GMP Amount]
Schedule of Values for Progress/Milestone Payments is detailed in Exhibit [Exhibit Letter].
Retainage: [Retainage Percentage]% retainage will be withheld from each payment, subject to Indiana law.
Change Orders: All change orders must be submitted in writing and approved by both parties. A Change Order Form is attached as Exhibit [Exhibit Letter].
Lien Waivers: Contractor shall provide lien waivers from all subcontractors and suppliers with each payment request.
Indiana Sales Tax: [Statement Regarding Applicability of Indiana Sales Tax and Tax Exemption Procedures]
6. Indiana Mechanics' Lien Notice
IMPORTANT NOTICE: Indiana law (Indiana Code § 32-28-3) requires that the Owner be notified that a mechanic's lien may be placed upon the property if the Contractor is not paid. The Owner has the right to withhold payments from the Contractor until the Owner receives a full and unconditional waiver of mechanic's lien rights from all subcontractors and suppliers furnishing labor, services, or materials to the project.
7. Insurance and Bonding
Contractor shall maintain the following minimum insurance coverage:
General Liability: [Amount]
Auto Liability: [Amount]
Workers' Compensation: As required by Indiana law
Builder's Risk: [Amount] (if applicable)
Umbrella: [Amount]
Owner shall be included as an additional insured on Contractor's general liability policy.
Contractor shall provide performance and payment bonds if required:
Option A: Bonds Required (Amount: [Bond Amount])
Option B: Bonds Not Required
8. Compliance with Laws and Regulations
Contractor shall comply with all relevant Indiana state and local building codes, ordinances, ADA requirements, zoning regulations, environmental regulations, and OSHA/IOSHA safety standards.
9. Materials, Site Access, and Safety
Contractor-supplied materials: [List of Contractor-Supplied Materials]
Owner-supplied materials: [List of Owner-Supplied Materials]
Site Access: [Terms of Site Access for Contractor]
Site Security and Safety Procedures: [Detailed Procedures], including handling of hazardous materials according to IDEM standards.
10. Project Management and Communication
Regular Site Meetings: [Frequency and Schedule]
Daily Reports: Contractor shall provide daily reports to Owner.
Reporting Requirements for Progress, Incidents, and Inspections: [Detailed Requirements]
11. Warranty
Contractor warrants that all work will be performed in a workmanlike manner and free from defects for a period of [Warranty Period] from the date of substantial completion. This warranty covers both labor and materials.
Warranty Claim Procedures: [Detailed Procedures]
12. Indiana Home Improvement Contract Act (If Applicable)
If this project is a home improvement contract as defined by the Indiana Home Improvement Contract Act, the Owner has the right to cancel this contract within three (3) business days of signing it. [Additional Disclosures Required by the Act]
13. Force Majeure
Neither party shall be liable for delays or failure to perform due to causes beyond its reasonable control, including but not limited to acts of God, war, strikes, fire, floods, or unusually severe weather conditions typical to Indiana.
14. Default and Termination
Events of Default: [List of Events of Default by Contractor and Owner]
Cure Period: [Number] days to cure a default.
Right to Suspend Work: [Circumstances Under Which Contractor Can Suspend Work]
Termination: [Rights and Obligations of Parties Upon Termination]
15. Assignment and Subcontracting
Contractor shall not assign this Agreement or subcontract any portion of the work without the prior written consent of the Owner.
16. Dispute Resolution
Any disputes arising under this Agreement shall be resolved as follows:
First, through good faith negotiation.
Second, if negotiation fails, through mediation in [Indiana County Name] County, Indiana.
Third, if mediation fails, through binding arbitration in [Indiana County Name] County, Indiana, under the Indiana Uniform Arbitration Act.
This Agreement shall be governed by and construed in accordance with the laws of the State of Indiana.
17. Indemnification
[Indemnification and Hold Harmless Provisions Compliant with Indiana Anti-Indemnity Statutes]
18. Confidentiality
[Confidentiality Clauses for Proprietary Information]
19. Intellectual Property
[Ownership of Plans, Specs, and Construction Data]
20. Employment Laws
Contractor shall comply with all applicable Indiana statutes on employment law, including immigration status verification affidavits and E-Verify participation (if applicable).
21. Exhibits
The following exhibits are incorporated into and made a part of this Agreement:
Exhibit A: Construction Drawings
Exhibit B: Specifications
Exhibit C: Change Order Form
Exhibit D: Schedule of Values
Exhibit E: Lien Waiver Form
Exhibit F: Certificates of Insurance
Exhibit G: List of Subcontractors
Exhibit H: Indiana Statutory Notices
22. Amendments
Any amendments to this Agreement must be in writing and signed by both parties.
23. Severability
If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
24. Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written, relating to the subject matter of this Agreement.
25. Waiver
No waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom the waiver is sought to be enforced.
[Optional Clauses]
Liquidated Damages: [Terms for Liquidated Damages]
Early Completion Incentives: [Terms for Early Completion Bonuses]
Escalation Clauses for Material Pricing: [Terms for Price Escalation Adjustments]
Weather Delay Procedures: [Procedures for Handling Weather Delays]
Unknown Site Conditions: [Procedures for Handling Unknown Site Conditions]
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[Contractor Full Legal Name]
By: [Contractor's Signature]
Name: [Contractor's Printed Name]
Title: [Contractor's Title]
[Client/Owner Full Legal Name]
By: [Owner's Signature]
Name: [Owner's Printed Name]