Kentucky construction independent contractor agreement template

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How Kentucky construction independent contractor agreement Differ from Other States

  1. Kentucky uses the 'ABC Test' to determine independent contractor status, which sets stricter classification standards than many states.

  2. Construction contractors in Kentucky may need to register with the Department of Revenue, a step not always required elsewhere.

  3. Kentucky mandates unique workplace safety and insurance provisions under state-specific statutes for construction work.

Frequently Asked Questions (FAQ)

  • Q: Does Kentucky require construction independent contractors to have insurance?

    A: Yes, Kentucky typically requires contractors to carry workers’ compensation and liability insurance, unless they qualify for exemptions.

  • Q: Is a written contract required for construction independent contractors in Kentucky?

    A: While not always legally required, a written contract is strongly recommended for clarity and legal protection in Kentucky.

  • Q: How does Kentucky determine if a worker is an independent contractor?

    A: Kentucky applies the 'ABC Test,' which evaluates control, business distinctness, and customary independence of the worker.

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Kentucky Construction Independent Contractor Agreement

This Kentucky Construction Independent Contractor Agreement (the "Agreement") is made and entered into as of [Date], by and between [Client Name], whose business address is [Client Address], (hereinafter referred to as "Client"), and [Contractor Name], whose business address is [Contractor Address], and whose Kentucky license number is [Contractor License Number] (if applicable), (hereinafter referred to as "Contractor").

Scope of Work

  • Option A: The Contractor shall perform the following construction work and services for the Client: [Description of Work, including type of project, specific tasks, location - including Kentucky county/city, project specifications, and reference to architectural or engineering plans as applicable. Specify materials to be used and who supplies and pays for them, and required equipment].
  • Option B: The Contractor shall perform all work as described in Exhibit A attached hereto and incorporated herein by reference.
  • Option C: The Contractor will provide [Specific trade, e.g. electrical, plumbing, roofing] services at the property located at [Property Address in Kentucky], according to the attached plans labeled [Plan Name/Version].

Project Schedule and Milestones

  • Option A: The Contractor shall commence work on [Start Date] and shall substantially complete the work by [Completion Date], subject to excusable delays.
  • Option B: The project will be completed in phases. Milestone dates and deliverables are as follows:
    • Milestone 1: [Milestone Description] - Completion Date: [Date]
    • Milestone 2: [Milestone Description] - Completion Date: [Date]
  • Option C: Work hours will be [Number] hours per day, between [Start time] and [End time], [Days of the week], subject to reasonable adjustments with client approval. Compliance with all applicable Kentucky Building Codes, local zoning ordinances, and safety regulations is required.

Compensation

  • Option A: The Client shall pay the Contractor a fixed sum of [Dollar Amount] for the complete performance of the work.
  • Option B: The Client shall pay the Contractor at the rate of [Dollar Amount] per hour for all work performed.
  • Option C: The Client shall pay the Contractor on a "cost plus" basis. The Contractor shall be reimbursed for all reasonable and documented costs of materials, labor, and equipment, plus a markup of [Percentage]%.
  • Option D: The Client shall pay the contractor on a unit price basis as follows: [Description of Unit] at $[Price] per unit.
  • Retainage: In accordance with KRS § 371.405, [Percentage]% retainage will be held.
  • Progress Payments: Progress payments will be made [Weekly/Bi-weekly/Monthly] upon submission of an invoice and approval by the Client, according to the following schedule: [Payment Schedule Description].
  • Late Payment Interest: Late payments will accrue interest at a rate of [Percentage]% per month, as permitted by the Kentucky Prompt Payment Act.

Independent Contractor Status

  • The parties intend that the Contractor is an independent contractor and not an employee of the Client. The Client shall not be responsible for withholding any taxes, including but not limited to federal income tax, Kentucky state income tax, Social Security, or Medicare. The Contractor is solely responsible for all such taxes and for complying with all applicable laws and regulations, including registering with the Kentucky Department of Revenue if required.
  • The Contractor is not entitled to any employee benefits from the Client, including but not limited to health insurance, paid time off, or retirement benefits.

Insurance

  • The Contractor shall maintain the following insurance coverage:
    • General Liability Insurance: [Dollar Amount] per occurrence.
    • Workers' Compensation Insurance: As required by Kentucky law if the Contractor has employees.
  • The Contractor shall provide the Client with certificates of insurance evidencing such coverage prior to the commencement of work. The Client shall be named as an additional insured on the Contractor's general liability policy.

Mechanics' Lien Rights

The Contractor acknowledges that Kentucky law provides for mechanics' lien rights. The Contractor shall comply with all applicable provisions of Kentucky Revised Statutes § 376.010–.285, including providing the Client with all necessary lien waivers and releases. The Contractor shall indemnify and hold harmless the Client from any and all claims, damages, or expenses arising out of or relating to any mechanics' liens filed by the Contractor or any of its subcontractors or suppliers.

Warranty

  • Option A: The Contractor warrants that all work performed under this Agreement will be performed in a workmanlike manner and free from defects for a period of [Number] year(s) from the date of completion.
  • Option B: The Contractor warrants materials used will be free from defects for [Number] year(s) from the date of purchase.
  • Option C: No warranty is offered by the contractor.

Site Safety

The Contractor is solely responsible for maintaining a safe work site and for complying with all applicable OSHA regulations, the Kentucky Occupational Safety and Health Program (KY OSH) requirements, and all other applicable safety codes and regulations.

Licensing

The Contractor represents and warrants that it is duly licensed and qualified to perform the work required under this Agreement in the Commonwealth of Kentucky. The Contractor shall maintain all necessary licenses and permits in good standing throughout the term of this Agreement. Contractor shall notify client immediately of any revocation or suspension.

Indemnification

The Contractor shall indemnify and hold harmless the Client from and against any and all claims, damages, losses, liabilities, costs, and expenses (including attorney's fees) arising out of or relating to the Contractor's performance of this Agreement, including but not limited to claims for property damage, bodily injury, or death, except to the extent caused by the Client's negligence or willful misconduct. This includes, but is not limited to, code violations or occupational injuries arising from contractor operations.

Permits and Approvals

  • Option A: The Contractor shall be responsible for obtaining and paying for all necessary permits, inspections, and approvals required for the work.
  • Option B: The Client shall be responsible for obtaining and paying for all necessary permits, inspections, and approvals required for the work.
  • Responsibility for correcting code violations or reinspection costs in Kentucky shall be borne by [Contractor/Client].

Change Orders

Any changes to the scope of work, schedule, or compensation must be documented in a written change order signed by both parties. All change orders must comply with Kentucky law.

Termination

  • Option A: This Agreement may be terminated by either party upon [Number] days' written notice to the other party.
  • Option B: This Agreement may be terminated immediately by the Client if the Contractor breaches any material term of this Agreement.
  • Option C: This Agreement may be terminated for convenience by the client with [Number] days written notice to the contractor.
  • Upon termination, the Contractor shall be entitled to payment for all work performed up to the date of termination, less any damages sustained by the Client as a result of the Contractor's breach. The contractor shall deliver all warranties, manuals, liens, etc. to the Client.

Default and Remedies

If either party defaults in the performance of its obligations under this Agreement, the other party shall have the right to pursue all available remedies under Kentucky law, including but not limited to specific performance, damages, and termination. Cure period shall be [Number] days.

Dispute Resolution

  • Option A: Any disputes arising out of or relating to this Agreement shall be resolved through binding arbitration in [Kentucky County] County, Kentucky, in accordance with the rules of the American Arbitration Association.
  • Option B: Any disputes arising out of or relating to this Agreement shall be resolved through mediation. If mediation is unsuccessful, the parties shall be free to pursue all available remedies in court.
  • Option C: Any disputes arising out of or relating to this Agreement shall be resolved through litigation in the Circuit Court of [Kentucky County] County, Kentucky.
  • Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Kentucky (referencing Kentucky Revised Statutes contract provisions).

Intellectual Property

Ownership of all intellectual property and work product created by the Contractor in connection with this Agreement shall be owned by [Client/Contractor/Jointly].

Confidentiality

The Contractor shall maintain the confidentiality of all Client information and proprietary construction techniques.

Recordkeeping and Audit

The Contractor shall maintain accurate records of all costs and expenses incurred in connection with this Agreement and shall provide the Client with access to such records upon request.

Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Agreement to the extent that such delay or failure is caused by a force majeure event, such as acts of God, war, labor disputes, or government action in Kentucky.

Compliance with Laws

The Contractor shall comply with all applicable federal, state, and local laws and regulations, including but not limited to equal opportunity laws, Kentucky prevailing wage statutes (if applicable for public work), and drug-free workplace policies.

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, sent by certified mail, or sent by email to the addresses set forth above.

Modification

This Agreement may be modified only by a written instrument 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.

Assignment

This Agreement may not be assigned by either party without the prior written consent of the other party.

Successors and Assigns

This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.

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

____________________________
[Client Name]
[Client Title]
[Date]

____________________________
[Contractor Name]
[Contractor Title]
[Kentucky Entity Number, if LLC or Corporation]
[Signatory Authorization, if applicable]
[Date]

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