Kentucky construction service contract template

Kentucky Construction Service Contract

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

[Contractor Full Legal Name], whose address is [Contractor Address] and Kentucky Contractor License Number (if applicable) is [Contractor License Number] (hereinafter referred to as "Contractor"), and

[Client/Owner Full Legal Name], whose address is [Client/Owner Address] (hereinafter referred to as "Owner").

1. Project Description and Location

The project (the “Project”) consists of [Brief Description of Project] and will be located at:

Project Address: [Project Address]

Legal Property Description: [Legal Property Description]

Site Maps/Plans: Attached as Exhibit A.

2. Scope of Work

The Contractor shall perform all architectural, engineering, and construction services necessary to complete the Project in accordance with the following:

Option A: The approved blueprints and specifications attached as Exhibit B.

Option B: The detailed Scope of Work outlined in Exhibit C.

Applicable Kentucky Building Code Standards: All work shall conform to the applicable Kentucky Building Code standards.

Materials, Equipment and Workmanship Standards: [Detailed Description of Materials, Equipment and Workmanship Standards].

Permit Procurement Responsibility:

Option A: Contractor shall be responsible for procuring all necessary permits, inspections, and other governmental approvals mandated by Kentucky law.

Option B: Owner shall be responsible for procuring all necessary permits, inspections, and other governmental approvals mandated by Kentucky law.

3. Project Schedule

Key Project Milestones:

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

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

Milestone 3: [Milestone 3 Description] - Completion Date: [Date]

Substantial Completion Definition: Substantial Completion shall mean the stage in the progress of the Work when the Work is sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or utilize the Work for its intended purpose.

Final Completion Definition: Final Completion shall mean completion of all Work in accordance with the Contract Documents, including the completion of all punch list items.

Client Review Procedures: [Description of Client Review Procedures].

Punch-List Creation and Rectification Timelines: [Timelines].

4. Contract Price and Payment

Total Contract Price: [Dollar Amount]

Detailed Line-Item Project Budget: (If required, attached as Exhibit D)

Allowance Items: [Description of Allowance Items and Amounts]

Unit Prices: (If used, list unit prices for specific items)

Payment Structure:

Option A: Fixed-Price

Option B: Guaranteed Maximum Price (GMP)

Option C: Cost-Plus [Fee Structure Description]

Progress Payment Schedule: Payments will be made according to the schedule outlined in Exhibit E, linked to the completion of specific milestones.

Retainage: [Percentage]%, compliant with Kentucky statutes (KRS section 371.405), to be released within [Number] days of final completion.

Final Payment Procedures: Final payment, less retainage, shall be due within [Number] days of final completion and Owner's acceptance of the work.

Kentucky Tax Obligations: Contractor is responsible for all applicable Kentucky sales taxes.

5. Permits and Compliance

Permits: [Party Responsible] is responsible for obtaining and paying for all required Kentucky permits, licenses, inspections, and utility connections.

Compliance: All work shall comply strictly with Kentucky building and safety codes, state OSHA requirements, and relevant local ordinances.

6. Change Orders

Change Order Procedures: All changes to the scope of work must be documented in a formal written change order, signed by both the Owner and the Contractor, adjusting the contract price and/or project schedule as necessary.

Required Signatures: Both Owner and Contractor signatures are required for a change order to be valid and enforceable under Kentucky law.

7. Jobsite Conditions

Jobsite Access: Owner shall provide reasonable access to the jobsite for the Contractor and its subcontractors.

Work Hour Regulations: Work hours shall comply with all applicable local ordinances: [Specify Allowed Working Hours].

Site Security: [Party Responsible] is responsible for site security.

Cleanup and Restoration: Contractor is responsible for daily cleanup and final restoration of the jobsite.

Safety Compliance: All work shall comply with Kentucky OSHA standards.

8. Owner Obligations

Timely Site Access: Owner shall provide timely access to the site.

Existing Data: Owner shall provide any existing geotechnical data and utilities information.

Approval Deadlines: Owner shall provide approvals in a timely manner, within [Number] days of submittal.

Coordination: Owner shall coordinate with other parties involved in the Project.

9. Subcontracting

Subcontractor Requirements: All subcontractors must be properly licensed, bonded, and insured under Kentucky law.

Subcontractor Payments: All payments to subcontractors shall comply with Kentucky prompt payment statutes.

10. Insurance

General Liability Insurance: Contractor shall maintain general liability insurance with a minimum coverage of [Dollar Amount] per occurrence.

Workers’ Compensation Insurance: Contractor shall maintain workers’ compensation insurance as required by Kentucky law.

Builder’s Risk Insurance: [Party Responsible] shall maintain builder’s risk insurance for the Project.

Additional Insured: The Owner shall be named as an additional insured on the Contractor's general liability policy.

Certificates of Insurance: Contractor shall provide certificates of insurance to the Owner before work commences.

11. Bonds (If Applicable)

Performance Bond: (If Required) Contractor shall provide a performance bond in the amount of [Dollar Amount].

Payment Bond: (If Required) Contractor shall provide a payment bond in the amount of [Dollar Amount].

12. Warranty

Warranty Standards: All work and materials shall conform to Kentucky standards and codes.

Warranty Period: [Number] year(s) from the date of substantial completion, consistent with KRS 411.250.

Warranty Claims Procedures: [Description of Warranty Claims Procedures].

13. Lien Rights and Waivers

Notice of Kentucky Mechanics’ Lien Laws: The Owner is advised of Kentucky's mechanics’ lien laws (KRS 376).

Lien Waiver Procedures: Contractor shall provide partial and final lien waivers along with each payment request.

14. Default and Remedies

Events of Default:

Contractor Default: [List of Contractor Default Events, e.g., non-conforming work, abandonment]

Owner Default: [List of Owner Default Events, e.g., non-payment]

Right to Cure: The defaulting party shall have [Number] days to cure the default.

Remedies: Remedies for default shall be governed by Kentucky contract law principles.

15. Termination

Termination for Cause: Either party may terminate this Agreement for cause (material breach, insolvency, regulatory enforcement).

Termination for Convenience: The Owner may terminate this Agreement for convenience upon [Number] days written notice.

Handling of Work in Progress and Materials: Upon termination, Contractor shall be compensated for work completed and materials on site.

16. Dispute Resolution

Negotiation: The parties agree to first attempt to resolve any disputes through good-faith negotiation.

Mediation: If negotiation fails, the parties agree to submit the dispute to mediation.

Governing Law and Venue: This Agreement shall be governed by the laws of the Commonwealth of Kentucky, and the exclusive venue for any litigation or arbitration shall be [County Name] County, Kentucky.

17. Indemnification

Indemnification: To the fullest extent permitted by Kentucky law, the Contractor shall indemnify and hold harmless the Owner from and against all claims, damages, losses, and expenses arising out of or resulting from the performance of the Work, but in accordance with KRS 371.180, the Contractor is not responsible for the Owner's own sole negligence.

18. Confidentiality

Confidentiality: All proprietary plans, pricing, and business data shall be kept confidential.

19. Compliance with Laws

Compliance: This Agreement complies with all relevant Kentucky commercial statutes, consumer protection regulations (where applicable), anti-corruption, fair labor, and anti-discrimination requirements.

20. Appendices

Exhibit A: Site Maps/Plans

Exhibit B: Blueprints and Specifications

Exhibit C: Detailed Scope of Work

Exhibit D: Detailed Line-Item Project Budget (If Required)

Exhibit E: Progress Payment Schedule

Exhibit F: [Required Kentucky Statutory Notices or Disclosures (e.g., “pre-lien” notice)]

21. Authorized Representatives

Contractor Representative: [Name], [Title], [Contact Information]

Owner Representative: [Name], [Title], [Contact Information]

22. Ownership of Documents

Ownership: All project documents, plans, and as-built drawings shall be owned by [Party Name].

23. Force Majeure

Force Majeure: Neither party shall be liable for delays caused by force majeure events, including weather-related delays, labor lockouts, and supply shortages.

24. Non-Collusion and Anti-Kickback

Representation: Contractor represents that this Agreement was entered into without collusion and without any agreement to pay or provide anything of value to obtain the Agreement.

25. Modification

Modification: This Agreement may be modified only in writing, signed by both parties.

26. Arbitration Notice

Notice:

[ ] Binding Arbitration: Disputes arising out of this contract will be resolved through binding arbitration.

[ ] Litigation: Disputes arising out of this contract will be resolved through litigation in a court of competent jurisdiction.

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]

[Client/Owner Title]