Maryland construction service contract template

Maryland Construction Service Contract

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

• [Contractor Legal Name], a [State] [Business Type, e.g., Corporation], with a principal place of business at [Contractor Business Address], and a contact person of [Contractor Contact Person], telephone number [Contractor Phone Number], email address [Contractor Email Address], Maryland Home Improvement Commission (MHIC) License Number [Contractor MHIC License Number], or Maryland Board of Contractors License Number [Contractor Board License Number] (hereinafter referred to as "Contractor"), and
• [Owner Legal Name], residing at [Owner Address], with a contact person of [Owner Contact Person], telephone number [Owner Phone Number], and email address [Owner Email Address] (hereinafter referred to as "Owner").

1. Project Description

The Contractor agrees to perform the following construction services for the Owner:

• Option A: Detailed Description: A detailed description of the construction project is attached as Exhibit A, which includes, but is not limited to, the site location, scope of work, architectural and engineering drawings, specifications, materials, and products.
• Option B: Summary Description: Construction of [Brief Project Description] at the following location: [Project Address], parcel information [Parcel Information]. The scope of work includes [List Key Elements of Scope].
  • The project will use [Specify Key Materials and Products], conforming to [Specify Relevant Codes and Standards].

2. Permits and Approvals

The responsibility for obtaining and paying for all required permits and approvals is as follows:

• Option A: Contractor Responsibility: The Contractor shall be responsible for obtaining and paying for all necessary permits and approvals from state, county, and municipal authorities, including compliance with Maryland's building, zoning, and environmental regulations.
• Option B: Owner Responsibility: The Owner shall be responsible for obtaining and paying for all necessary permits and approvals. The Contractor shall assist in the application process.

3. Compliance Requirements

The Contractor shall comply with all applicable laws, regulations, and standards, including:

• Adherence to Maryland Occupational Safety and Health (MOSH) standards.
• Compliance with prevailing wage laws (if applicable).
• Lead paint or hazardous material abatement requirements (if applicable).
• All mandatory notice and posting requirements.
• Compliance with all designated state or local inspection procedures and timelines.

4. Insurance

The Contractor shall maintain the following insurance coverage:

• General liability insurance in the amount of [Dollar Amount].
• Workers’ compensation insurance as required by Maryland law.
• Builders risk insurance (if applicable) in the amount of [Dollar Amount].
• Vehicle insurance (if applicable).
• Option A: Bonding: A performance bond in the amount of [Dollar Amount].
• Option B: No Bonding: No performance bond is required.

Contractor shall provide Owner with certificates of insurance evidencing such coverage.

5. Contract Price and Payment

The Owner shall pay the Contractor the following contract price:

• Option A: Lump Sum: A lump sum of [Dollar Amount] for the complete performance of the work.
• Option B: Cost-Plus: Cost plus a fee of [Percentage]% of the total cost of the project.
• Option C: Unit Rate: Based on the following unit rates: [Detailed Unit Rate Schedule].

The payment schedule is as follows:

• [Payment Schedule Details, e.g., Deposit, Progress Payments, Final Payment, Retention]

Invoices shall be written and itemized. Late payments may accrue interest at a rate of [Percentage]% per month, as permitted by Maryland law.

6. Change Orders

All changes to the scope of work must be documented in a written change order, approved and signed by both parties, before the work begins. The change order shall include a detailed description of the change and the impact on the contract price and schedule.

7. Owner Responsibilities

The Owner shall provide the following:

• Site access.
• Utilities (specify which ones: [List Utilities]).
• Option A: Security: Site security.
• Option B: No Security: Contractor is responsible for site security.
• Any requisite preparation, specified as [Detail Owner's Preparatory Work].

8. Project Schedule

The anticipated commencement date is [Date] and the anticipated substantial completion date is [Date]. Time is of the essence. Remedies and notice processes for delays, acceleration, and allocation of risk for weather or force majeure are outlined in Exhibit B.

9. Site Conditions

The Contractor shall maintain a safe and secure work site. Waste and debris removal shall be the responsibility of [Contractor/Owner].

10. Quality Control

The Contractor shall perform the work in a good and workmanlike manner, in accordance with industry standards and Maryland building codes. The Owner shall have the right to inspect the work and reject nonconforming work. The Contractor shall have [Number] days to cure any defects.

11. Warranty

The Contractor warrants the work for a period of [Number] year(s) from the date of substantial completion. This warranty covers defects in workmanship and materials. Exclusions and manufacturer warranties are detailed in Exhibit C. This warranty meets the minimum standards set by the MHIC, if applicable.

12. Mechanic’s Lien Waivers

The Contractor shall provide the Owner with mechanic’s lien waivers from all subcontractors and suppliers prior to final payment, in accordance with Maryland Real Property Code.

13. Subcontractors

The Contractor may use subcontractors, but shall remain responsible for their performance. All subcontractors must be properly licensed in Maryland.

• Option A: Owner Approval: All subcontractors are subject to Owner approval.
• Option B: Contractor Discretion: Contractor has discretion in hiring subcontractors.

14. Dispute Resolution

Any disputes arising under this Agreement shall be resolved as follows:

• First, through negotiation.
• If negotiation fails, then through mediation in [City, Maryland].
• If mediation fails, then through binding arbitration in [City, Maryland], or litigation in [Specify Maryland Court].

This Agreement shall be governed by the laws of the State of Maryland.

15. Maryland Home Improvement Law (If Applicable)

(If this is a home improvement contract): This contract is subject to the Maryland Home Improvement Law. The Owner has a three-day right to cancel this contract. Notice of cancellation must be given in writing to the Contractor at [Contractor Address] within three business days of the date of this contract.

16. Force Majeure

Neither party shall be liable for delays or failures in performance due to events beyond their reasonable control, including but not limited to acts of God, war, strikes, and governmental regulations.

17. Termination

This Agreement may be terminated as follows:

• For convenience by either party with [Number] days written notice.
• For cause by either party for material breach, with [Number] days notice and opportunity to cure.
• By mutual agreement.

18. Limitation of Liability

The Contractor's liability for breach of this Agreement shall be limited to [Dollar Amount or Description of Limitation]. The Contractor shall not be liable for consequential damages. Indemnification obligations shall be construed in accordance with Maryland anti-indemnity statutes.

19. Confidentiality

Both parties agree to maintain the confidentiality of any trade secrets or confidential information disclosed during the course of this Agreement.

20. Compliance with Laws

The Contractor shall comply with all applicable federal, state, and local laws, including EEO and anti-discrimination laws.

21. Entire Agreement

This Agreement, including all exhibits, constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral.

22. Attachments

The following documents are attached and incorporated into this Agreement:

• Exhibit A: Detailed Project Description
• Exhibit B: Project Schedule Details
• Exhibit C: Warranty Details

23. Signature

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

____________________________
[Contractor Printed Name]
[Contractor Title]
[Date]

____________________________
[Owner Printed Name]
[Owner Title]
[Date]