Iowa construction service contract template
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How Iowa construction service contract Differ from Other States
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Iowa requires contractors to be registered with the Iowa Division of Labor, which is not standard in all states.
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Iowa law mandates specific lien notice procedures for residential projects, differing from many states’ requirements.
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Iowa enforces unique prompt payment rules, including specific timelines for payments and penalties for late payments.
Frequently Asked Questions (FAQ)
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Q: Does Iowa require contractors to be licensed or registered?
A: Yes, most contractors performing construction work in Iowa must register with the Iowa Division of Labor.
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Q: Are lien waivers mandatory in Iowa construction contracts?
A: Lien waivers are not mandatory, but parties often include them to secure payment and minimize legal disputes.
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Q: Is a written contract required for construction services in Iowa?
A: A written contract is strongly recommended and may be required for certain types of residential projects in Iowa.
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Iowa Construction Services Agreement
This Construction Services Agreement is made and entered into as of [Date] by and between:
[Contractor's Full Legal Name], a [State] [Entity Type, e.g., Corporation], with a business address at [Contractor's Iowa Business Address], Iowa Contractor License Number: [License Number], hereinafter referred to as "Contractor,"
and
[Client's Full Legal Name], residing at/with a business address at [Client's Iowa Business Address], hereinafter referred to as "Client."
1. Project and Scope of Work
Option A: The Contractor agrees to perform the following construction services (the “Work”) at the following project site (the “Project Site”): [Detailed Description of Project Site Location].
- The Work shall consist of the following: [Detailed Description of Construction Phases, Project Plans, Specifications, Blueprints, Materials, Equipment, and Subcontracted Work].
- All Work shall be performed in accordance with attached Exhibit A: [List and attach relevant Drawings, Architectural Plans, Engineering Documents, and Environmental Reports].
Option B: The Work shall be performed according to the attached specifications. Any deviation from said specifications must be agreed to in writing by both parties.
- Referenced Standards: All work shall conform to Iowa industry standards for workmanship and quality, specifically including [Iowa State Building Code, Local Codes].
- Required Compliance Inspections and Certifications: [List all required inspections and certifications].
2. Contractor's Representations and Warranties
Option A: Contractor warrants that it is duly licensed and registered with the Iowa Division of Labor, as required by Iowa Code §91C.
- Contractor further warrants that it maintains valid commercial general liability insurance and workers' compensation insurance.
- Contractor confirms compliance with all applicable bonding and surety obligations under Iowa law.
Option B: Contractor is responsible for obtaining all permits required by [Applicable Municipal Regulation] as described in [Iowa Code Chapter 103A (State Building Code)].
3. Project Timeline and Schedule
Option A: The Work shall commence on [Start Date] and shall be substantially completed on or before [End Date].
- Intermediate milestones are as follows: [List of milestones with corresponding dates].
- Liquidated Damages: In the event of delay, Contractor shall pay Client liquidated damages in the amount of [Dollar Amount] per day.
Option B: Force Majeure: Neither party shall be liable for delays caused by acts of God, government regulation, strikes, or other events beyond their reasonable control.
- Change Orders: Any changes to the scope of Work must be documented in a written change order, approved by both parties, detailing the adjusted price and timeline.
- Change Order Process: [Describe the detailed process including approval requirements and pricing].
4. Compensation and Payment
Option A: The total contract price for the Work is [Dollar Amount].
- Deposit: A deposit of [Dollar Amount] is due upon execution of this Agreement.
- Payment Schedule: Payments shall be made according to the following schedule: [Detailed payment schedule, e.g., milestone-based or time-based].
- Progress Payment Procedures: [Describe progress payment request and approval process].
- Lien Waiver Requirements: Contractor shall provide Client with lien waivers upon each payment, as required by Iowa Code Chapter 572.
Option B: Retainage: Client shall withhold [Percentage] as retainage, to be released upon final completion and acceptance of the Work, according to Iowa Code §573.12.
- Contract Price Increases: The contract price may be adjusted due to material price escalation, according to Iowa market practices.
- Dispute Resolution: Any pricing disagreements shall be resolved through [Mediation, Arbitration, or Litigation].
5. Site Safety and Compliance
Option A: Contractor is responsible for site safety and compliance with OSHA/Iowa Occupational Safety and Health Act regulations.
- Site Security: Contractor shall maintain site security and prevent unauthorized access.
- Waste Removal: Contractor is responsible for proper waste removal and disposal.
- Environmental Controls: Contractor shall implement and maintain appropriate environmental controls.
Option B: Injury Prevention: Contractor shall implement and enforce a comprehensive injury prevention program.
- Reporting: Contractor is responsible for all Iowa-specific incident reporting requirements.
6. Insurance and Indemnification
Option A: Contractor shall maintain the following insurance coverage: commercial general liability insurance with a minimum limit of [Dollar Amount], and workers' compensation insurance as required by Iowa law.
- Named Insureds: Client shall be named as an additional insured on Contractor's commercial general liability policy.
- Certificate of Delivery Timeline: Contractor shall provide Client with certificates of insurance within [Number] days of the execution of this Agreement.
Option B: Indemnification: Contractor shall indemnify and hold harmless Client from and against any and all claims, losses, damages, liabilities, costs, and expenses (including attorney's fees) arising out of or relating to the Contractor's performance of the Work.
7. Subcontractors and Suppliers
Option A: The following subcontractors and suppliers will be used for the Work: [List of subcontractors and suppliers].
- Registration: All subcontractors must be registered with the State of Iowa.
- Management: Contractor is responsible for managing, paying, and ensuring the performance of all subcontractors.
Option B: The Contractor shall provide all Iowa-specific notices as required for work performed by subcontractors, where applicable.
8. Project Documentation
Option A: Contractor shall maintain daily logs, progress reports, and inspection approvals.
- Client Review: Client shall have the right to review all project documentation.
- Acceptance Procedures: Upon completion, Client shall conduct a final inspection and provide written acceptance of the Work.
Option B: Defect Procedures: A process for addressing defects noted upon substantial or final completion must be agreed upon by both parties.
9. Warranty
Option A: Contractor warrants the Work for a period of [Number] year(s) from the date of substantial completion.
- Coverage: The warranty covers defects in workmanship and materials.
- Exclusions: The warranty does not cover damage caused by normal wear and tear, misuse, or acts of God.
Option B: Claims Process: Any warranty claims must be submitted in writing within the warranty period.
10. Material Supply
Option A: Contractor shall be responsible for supplying all materials necessary for the Work.
- Substitutions: Any material substitutions must be approved in writing by Client.
- Shortages: Contractor shall notify Client immediately in the event of material shortages or delays.
Option B: Iowa-specific notice requirements are applicable for substitutions of materials.
11. Jobsite Access and Security
Option A: Client shall provide Contractor with reasonable access to the Project Site.
- Utilities: Client shall be responsible for providing utilities to the Project Site.
- Parking: Contractor shall be responsible for providing parking for its employees and subcontractors.
Option B: Restoration: Contractor shall restore the premises to its original condition upon completion of the Work.
12. Compliance with Laws
Option A: Contractor shall comply with all relevant Iowa environmental, safety, and accessibility codes, including stormwater drainage, lead/asbestos abatement, and ADA compliance.
- All work shall be performed in compliance with [Iowa environmental, safety, and accessibility codes].
13. Unforeseen Conditions
Option A: In the event of unforeseen conditions (e.g., hidden site defects, hazardous materials), Contractor shall notify Client immediately.
- Client shall be entitled to extra time or compensation under Iowa law.
14. Contract Suspension and Termination
Option A: Either party may suspend or terminate this Agreement for cause, upon written notice to the other party.
- Notice and Cure Periods: The non-breaching party shall provide the breaching party with a reasonable opportunity to cure the breach.
- Settlement of Payment: Upon termination, Client shall pay Contractor for all Work performed up to the date of termination.
Option B: If Client terminates this Agreement, Client has the right to hire replacement contractors.
- Material Pick-up: Contractor shall remove all remaining materials upon request by Client.
15. Intellectual Property
Option A: Contractor retains ownership of all plans and intellectual property created in connection with the Work.
- License: Client shall have a limited license to use the plans for modifications of the Project.
16. Confidentiality
Option A: Contractor shall maintain the confidentiality of Client's information.
- Disclosure: Contractor shall comply with Iowa open records law if Client is a public entity.
17. Title and Liens
Option A: Client is responsible for ensuring clear title to the Project Site.
- Liens: Contractor shall disclose any prior liens, claims, or encumbrances on the property.
18. Iowa Mandated Disclosures
Option A: Contractor shall provide Client with a "Notice of Commencement of Work" and "Mechanic's Notice and Lien Registry" information, as required by Iowa Code §572.13A.
19. Dispute Resolution
Option A: Any disputes arising out of or relating to this Agreement shall be resolved through [Mediation, Arbitration, or Litigation].
- Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Iowa.
- Venue: Any legal action shall be brought in a court of competent jurisdiction in [County Name] County, Iowa.
Option B: Contractor shall comply with Iowa's right-to-cure process for construction defects (Iowa Code Ch. 686).
20. Compliance with Laws
Option A: Both Contractor and Client shall comply with all applicable federal, state, and local laws and regulations.
21. General Provisions
Option A: Assignment: This Agreement shall not be assigned by either party without the prior written consent of the other party.
- Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals.
- Amendments: Any amendments to this Agreement must be in writing and signed by both parties.
- Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
- Waivers: No waiver of any provision of this Agreement shall be effective unless in writing and signed by the waiving party.
Option B: Notices: All notices 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 reputable overnight courier service, to the addresses set forth above.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
____________________________
[Contractor's Full Legal Name]
By: [Contractor's Signature]
Title: [Contractor's Title]
____________________________
[Client's Full Legal Name]
By: [Client's Signature]
Title: [Client's Title]
Attachments:
- Exhibit A: [Drawings, Architectural Plans, Engineering Documents, Environmental Reports]
- Contractor's Certificate of Registration
- Proof of Insurance
- Lien Disclosures
Please review all attachments before signing the agreement.