Louisiana construction service contract template

Louisiana Construction Services Contract

This Louisiana Construction Services Contract (the "Contract") is made and entered into as of [Date], by and between:

• Contractor: [Contractor Name], a [Contractor Entity Type, e.g., Corporation] organized and existing under the laws of Louisiana, with its principal place of business at [Contractor Address], and Louisiana Contractor's License Number [Contractor License Number], Classification [Contractor License Classification] ("Contractor"), and
• Owner: [Owner Name], residing at [Owner Address] ("Owner").

1. Project Information

• Project Name: [Project Name]
• Project Location: [Project Address]. Legal Property Description (if applicable): [Legal Property Description]

2. Scope of Work

• The Contractor shall perform all work as described in Exhibit A (the "Scope of Work"), which is attached to and incorporated into this Contract. The Scope of Work includes, but is not limited to: [List of Included Work].
• The Scope of Work specifically excludes: [List of Excluded Work].
• The Scope of Work is based on the following drawings, blueprints, and specifications: [List of Drawings, Blueprints, and Specifications].

3. Permits, Inspections, and Notices

• Contractor Responsibility: The Contractor shall be responsible for obtaining and paying for all necessary permits and licenses required by applicable Louisiana state, parish, and municipal laws and regulations for the Project, except as otherwise agreed in writing.
• Inspection Requirements: The Contractor shall schedule and coordinate all required inspections by applicable governmental authorities.
• Notice Requirements: The Contractor shall provide all notices required by applicable Louisiana state, parish, and municipal laws and regulations.

4. Project Schedule

• Start Date: [Start Date]
• Substantial Completion Date: [Substantial Completion Date]
• Project Milestones:
  • [Milestone 1]: [Date]
  • [Milestone 2]: [Date]
  • [Milestone 3]: [Date]
• Consequences of Delay:
  • Option A: Liquidated Damages: If the Contractor fails to achieve Substantial Completion by the Substantial Completion Date, the Contractor shall pay Owner liquidated damages of [Dollar Amount] per day for each day of delay.
  • Option B: No Damages for Delay: The Contractor shall not be liable for any delay unless such delay was caused by Contractor's gross negligence or willful misconduct. In no event shall the Contractor be liable for any consequential damages.

5. Payment

• Payment Structure:
  • Option A: Lump Sum: The Owner shall pay the Contractor a total lump sum of [Dollar Amount] for the completed Scope of Work.
  • Option B: Cost-Plus: The Owner shall pay the Contractor the actual cost of the work plus a fee of [Percentage]% of the actual cost.
  • Option C: Time and Materials: The Owner shall pay the Contractor for time and materials based on the Contractor's hourly rates and the cost of materials.
  • Option D: Fixed Price per Unit: The Owner shall pay the Contractor a fixed unit price of [Dollar Amount] per [Unit] for the completed Scope of Work.
• Progress Payments: The Contractor shall submit applications for payment on a [Frequency, e.g., Monthly] basis. Each application for payment shall be accompanied by [Required Documentation, e.g., AIA forms, lien waivers].
• Retainage:
  • The Owner shall retain [Percentage]% of each progress payment as retainage. The total retainage shall be released to the Contractor upon Substantial Completion and final acceptance of the work, subject to the Contractor's providing final lien waivers.
  • Retainage shall be in compliance with Louisiana statutes (10% maximum for public works, up to completion)
• Final Payment: Final payment, consisting of all remaining amounts due to the Contractor, including the balance of the Contract Price and any retainage, shall be due within [Number] days of Substantial Completion, final acceptance of the Work, and the Contractor's delivery of unconditional final lien waivers.
• Applicable Taxes: Owner is responsible for all applicable Louisiana sales and use taxes.

6. Owner-Supplied Materials

• Owner shall supply the following materials: [List of Owner-Supplied Materials].
• Storage and Handling: The Owner shall be responsible for the storage and handling of Owner-supplied materials.
• Title Transfer: Title to Owner-supplied materials shall remain with the Owner until incorporated into the Work.
• Insurance Responsibility: The Owner shall be responsible for insuring Owner-supplied materials against loss or damage.

7. Change Orders

• All changes to the Scope of Work must be authorized in writing by both the Owner and the Contractor via a Change Order.
• Pricing Adjustment: The Change Order shall include an adjustment to the Contract Price and/or the Project Schedule, as applicable.
• Documentation: Each Change Order shall include a detailed description of the change, the adjusted Contract Price, and the adjusted Project Schedule.
• Statutory Notification: Contractor shall adhere to all statutory notification obligations regarding Change Orders.

8. Labor Requirements and Workforce Standards

• Contractor shall comply with all applicable Louisiana laws regarding labor and workforce standards, including fair labor and safety rules.
• Contractor shall use only properly licensed tradesmen and subcontractors.
• Compliance with Right to Work Laws: This project will comply with Louisiana's Right to Work laws.

9. Insurance Requirements

• General Liability Insurance: The Contractor shall maintain general liability insurance with a minimum coverage of [Dollar Amount] per occurrence.
• Builder’s Risk Insurance:
  • Option A: The Contractor shall maintain builder’s risk insurance covering the full insurable value of the Project.
  • Option B: The Owner shall maintain builder’s risk insurance covering the full insurable value of the Project.
• Workers' Compensation Insurance: The Contractor shall maintain workers' compensation insurance as required by Louisiana law.
• Additional Insured: The Owner shall be named as an additional insured on the Contractor's general liability insurance policy.
• Bonding Requirements:
  • Option A: The Contractor shall provide a payment bond and a performance bond in the amount of [Dollar Amount].
  • Option B: Bonding requirements waived

10. Warranty and Correction Period

• Minimum Warranty: The Contractor warrants that the Work will be free from defects in materials and workmanship for a period of one (1) year from the date of Substantial Completion, as required by Louisiana Civil Code Art. 2762.
• Residential Work: For residential work, the Contractor shall comply with the requirements of the Louisiana New Home Warranty Act.
• Latent Defect Repair: The Contractor shall be responsible for the repair of latent defects for the period prescribed by applicable Louisiana law.

11. Dispute Resolution

• Initial Negotiation: The parties shall attempt to resolve any disputes arising out of or relating to this Contract through good faith negotiation.
• Mediation: If the parties are unable to resolve the dispute through negotiation, they shall attempt to resolve the dispute through mediation.
• Arbitration/Litigation:
  • Option A: Arbitration: Any dispute arising out of or relating to this Contract that cannot be resolved through negotiation or mediation shall be submitted to binding arbitration in accordance with the rules of the American Arbitration Association.
  • Option B: Litigation: Any dispute arising out of or relating to this Contract that cannot be resolved through negotiation or mediation shall be resolved in the state or federal courts located in [Parish Name] Parish, Louisiana.

12. Compliance with Laws

• The Contractor shall comply with all applicable Louisiana building codes, fire safety regulations, environmental regulations, and OSHA regulations.
• Contractor acknowledges and will comply with Louisiana Revised Statute 9:2771 for reliance on plans and specifications.

13. Pay-If-Paid/Pay-When-Paid Clauses

• Option A: Pay-If-Paid: Subcontractor agrees that Contractor's receipt of payment from Owner is a condition precedent to Contractor's obligation to make payment to Subcontractor.
• Option B: Pay-When-Paid: Contractor agrees to pay Subcontractor within a reasonable time after Contractor's receipt of payment from Owner.

14. Mechanics' and Materialmen's Liens

Contractor agrees to comply with the Louisiana Private Works Act, including providing preliminary notice and lien waivers as required. Owner reserves the right to require the contractor to file a notice of contract in the mortgage records.

15. Termination

• Termination for Cause: Either party may terminate this Contract for cause upon [Number] days' written notice to the other party.
• Termination for Convenience: The Owner may terminate this Contract for convenience upon [Number] days' written notice to the Contractor.
• Compensation: Upon termination, the Contractor shall be entitled to compensation for all work performed and materials provided up to the date of termination.

16. Indemnification

• To the fullest extent permitted by Louisiana 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.
• This indemnification clause is subject to the limitations set forth in Louisiana Revised Statute 9:2780 regarding anti-indemnity laws.

17. Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Contract due to causes beyond its reasonable control, including, but not limited to, acts of God, hurricanes, floods, and other natural disasters.

18. Recordkeeping

• The Contractor shall maintain accurate records of all costs incurred in connection with the Work.
• The Owner shall have the right to inspect the Contractor's records, especially for cost-plus contracts.

19. Assignment and Subcontracting

• The Contractor shall not assign this Contract without the prior written consent of the Owner.
• The Contractor shall ensure that all subcontractors are properly licensed and insured in Louisiana.

20. Intellectual Property

All intellectual property rights in the plans and drawings shall remain with the [Architect/Engineer/Owner].

21. Statutory Notices

• Lead Paint Disclosure: If the Project involves work on a pre-1978 structure, a Lead Paint Disclosure is attached as Exhibit B.
• Right to Cancel (if applicable): [State any applicable owner's right to cancel.]

22. Risk of Loss

The Contractor shall bear the risk of loss for the Work until Substantial Completion and acceptance by the Owner.

23. Governing Law

This Contract shall be governed by and construed in accordance with the laws of the State of Louisiana.

24. Severability

If any provision of this Contract is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

25. Entire Agreement

This Contract constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

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

____________________________
[Contractor Name]

By: ____________________________
[Contractor Representative Name], [Title]

____________________________
[Owner Name]

Acknowledgment (Optional, but recommended for certain agreements):

STATE OF LOUISIANA

PARISH OF [Parish Name]

On this [Day] day of [Month], [Year], before me, the undersigned authority, personally appeared [Contractor Representative Name] and [Owner Name], known to me (or satisfactorily proven) to be the persons whose names are subscribed to the foregoing instrument, and acknowledged that they executed the same for the purposes therein contained.

____________________________
Notary Public

My commission expires: [Date]