Maryland construction independent contractor agreement template

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How Maryland construction independent contractor agreement Differ from Other States

  1. Maryland specifically follows the Workplace Fraud Act, requiring strict criteria to classify construction workers as independent contractors.

  2. Maryland mandates written agreements outlining the independent contractor relationship, unlike some states where verbal agreements suffice.

  3. Contractors in Maryland must provide workers' compensation unless exempt, whereas requirements vary in other states.

Frequently Asked Questions (FAQ)

  • Q: Is a written independent contractor agreement required in Maryland?

    A: Yes. Maryland law requires a clear, written agreement to establish independent contractor status in construction.

  • Q: What happens if a contractor misclassifies an employee in Maryland?

    A: Misclassification can result in fines, penalties, and liability for wages, taxes, and worker benefits under Maryland law.

  • Q: Does Maryland require workers’ compensation for independent contractors?

    A: Generally, independent contractors are not covered, but businesses must ensure proper classification and coverage when required.

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Maryland Construction Independent Contractor Agreement

This Maryland Construction Independent Contractor Agreement (the “Agreement”) is made and entered into as of this [Date of Agreement] by and between:

[Client Name], residing at [Client Address], hereinafter referred to as "Client,"

and

[Contractor Name], residing at [Contractor Address] or, if a business entity, with a principal place of business at [Contractor Business Address], hereinafter referred to as "Contractor."

Scope of Work

Option A: The Contractor shall perform the following construction work: [Description of Work, e.g., framing, electrical, plumbing, roofing, masonry] at the following location(s): [Project Site Address(es)] as further detailed in Exhibit A, attached hereto.

Option B: The Contractor shall perform the work as specified in the plans and specifications dated [Date] and prepared by [Architect/Engineer Name] which are incorporated herein by reference.

Option C: The Contractor shall provide the following construction services: [Description of Services], including but not limited to obtaining necessary permits.

Permits and Licenses

Option A: The Contractor is responsible for obtaining all necessary permits and licenses required to perform the work in compliance with Maryland law, including but not limited to those required by the Maryland Department of Labor Licensing and Regulation (DLLR) and the Maryland Home Improvement Commission (MHIC), if applicable.

Option B: The Client is responsible for obtaining the following permits: [List of Permits Client Will Obtain]. The Contractor is responsible for all other required permits and licenses.

Option C: The Contractor warrants that they hold all required licenses and certifications for the type of work being performed in Maryland, including MHIC License Number [MHIC License Number, if applicable]. Contractor will provide copies of licenses upon request.

Performance Standards and Schedule

Option A: The Contractor shall perform the work in a good and workmanlike manner, in accordance with all applicable codes, including the Maryland Building Code and local county/city building regulations, and safety standards, including OSHA and MOSH requirements.

Option B: The work shall commence on [Start Date] and be substantially completed by [Completion Date], subject to excusable delays. Milestones: [List of Milestones and Dates].

Option C: The Contractor shall adhere to the following work schedule: [Detailed Work Schedule, including Work Hours].

The contractor must adhere to Maryland safety regulations.

Materials, Tools, and Equipment

Option A: The Contractor shall supply all materials, tools, and equipment necessary to perform the work, unless otherwise specified.

Option B: The Client shall supply the following materials: [List of Materials Supplied by Client]. The Contractor shall be responsible for all other materials, tools, and equipment.

Option C: All materials used by the Contractor must be approved by the Client prior to installation. Quality standards for materials: [Description of Quality Standards].

Compensation and Payment

Option A: The Client shall pay the Contractor a lump sum of [Dollar Amount] for the complete performance of the work.

Option B: The Client shall pay the Contractor on a time and materials basis at a rate of [Hourly Rate] per hour plus the cost of materials.

Option C: The Client shall pay the Contractor according to the following milestone payment schedule: [Payment Schedule Linked to Milestones].

Payment will be made within [Number] days of receipt of a valid invoice. The invoice must include [Required Invoice Information]. Contractor must provide a lien waiver (as required under Maryland's mechanics' lien law, Real Property Article, Title 9) with each invoice.

Change Orders

Option A: Any changes to the scope of work must be documented in a written change order signed by both parties.

Option B: The change order shall include a detailed description of the change, the adjusted price, and the revised schedule.

Option C: All change orders must be approved by the Client in writing before the Contractor commences work on the change.

Independent Contractor Status

The Contractor is an independent contractor and not an employee of the Client.

The Contractor is solely responsible for all federal, state, and local taxes, licenses, and registrations, including Maryland business registration and potential MHIC licensing.

The Contractor is not entitled to any employee benefits from the Client.

Insurance

Option A: The Contractor shall maintain the following insurance coverage: general liability insurance with a minimum coverage of [Dollar Amount], workers’ compensation insurance (if required under Maryland law), and automobile liability insurance with a minimum coverage of [Dollar Amount].

Option B: The Contractor shall provide proof of insurance coverage to the Client upon request.

Option C: The Client may require builder's risk insurance to be maintained during the project.

Compliance with Laws

The Contractor shall comply with all applicable Maryland labor, wage, safety, environmental, and anti-discrimination laws.

The Contractor shall verify legal work status in line with federal and Maryland state law.

The Contractor shall comply with all MOSH workplace safety requirements.

Indemnification

The Contractor shall indemnify and hold harmless the Client from any and all claims, damages, and expenses arising out of the Contractor’s negligence or misconduct.

[Optional: Limitation of Liability Clause].

Intellectual Property

Option A: Any plans, methods, or proprietary materials created by the Contractor shall be owned by the Contractor.

Option B: Any plans, methods, or proprietary materials created by the Contractor shall be owned by the Client.

Option C: The Contractor grants the Client a license to use any plans, methods, or proprietary materials created by the Contractor for the specific project.

Dispute Resolution

Any disputes arising out of this Agreement shall be resolved through informal negotiation.

If negotiation fails, the parties agree to submit the dispute to mediation in Maryland.

If mediation fails, the parties may pursue arbitration or litigation in Maryland, governed by Maryland law.

Termination

Option A: The Client may terminate this Agreement for default if the Contractor breaches any material term of this Agreement.

Option B: The Client may terminate this Agreement for convenience upon [Number] days’ written notice to the Contractor.

Option C: In the event of termination, the Contractor shall be compensated for work performed up to the date of termination.

Final inspection and punch list requirements: [Description of Final Inspection and Punch List Process].

Home Improvement Contract Provisions (If Applicable)

If this Agreement constitutes a home improvement contract under Maryland law, the Client has the right to cancel this Agreement within three business days of signing it.

This Agreement contains all the terms and conditions of the agreement between the parties.

Confidentiality

[Include if Necessary: Terms of Confidentiality].

Warranty

The Contractor warrants their workmanship and materials for a period of [Number] years from the date of completion.

Assignment

The Contractor may not assign this Agreement without the prior written consent of the Client.

Project Records

The Contractor shall maintain accurate project records in compliance with Maryland state law.

Force Majeure

Neither party shall be liable for delays caused by events beyond their reasonable control, including but not limited to weather events common to Maryland.

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

[Client Signature]

[Client Printed Name]

[Contractor Signature]

[Contractor Printed Name]

[Contractor Company Name, if applicable]

[Contractor Contact Information, e.g. phone number, email]

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