Michigan construction independent contractor agreement template

Michigan Construction Independent Contractor Agreement

This Michigan Construction Independent Contractor Agreement (the "Agreement") is made and effective as of [Date], by and between [Client Legal Name], located at [Client Address], phone number [Client Phone Number], email [Client Email] (the "Client") and [Contractor Legal Name], located at [Contractor Address], phone number [Contractor Phone Number], email [Contractor Email], Michigan license number [Contractor License Number] (the "Contractor").

WHEREAS, the Client desires to engage the Contractor to perform certain construction services; and

WHEREAS, the Contractor desires to perform such services as an independent contractor.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

1. Project Description

Option A: The Contractor shall perform the following services (the "Services") for the Client: [Detailed description of services, including project name, blueprints/drawings references, specifications (materials, equipment, methods), and inclusion/exclusion lists.]

Option B: The Services shall be those described in Exhibit A, attached hereto and incorporated herein.

Project Location: [Project Location(s)]. Access and usage rules for the work site are as follows: [Hours of work, material/equipment storage rules, site safety rules.]

2. Scope of Work

Option A: The scope of work shall include, but is not limited to: [Detailed list of specific tasks, deliverables, and responsibilities of the Contractor.]

Option B: The scope of work is fully detailed in Exhibit B, attached hereto and incorporated herein.

Project Schedule: Start Date: [Start Date]. Completion Date: [Completion Date]. Key Milestones: [List of milestones or deliverable deadlines.]

3. Independent Contractor Relationship

Option A: It is the express intention of the parties that the Contractor is an independent contractor. Nothing in this Agreement shall be construed as creating an employer-employee relationship, partnership, joint venture, or agency relationship between the Client and the Contractor.

Option B: The Contractor is not entitled to any benefits normally afforded to employees, including, but not limited to, workers' compensation, unemployment insurance, health insurance, or paid time off. The Contractor is solely responsible for all federal and Michigan income taxes, self-employment taxes, and any other applicable taxes.

4. Compensation and Payment

Option A: The Client shall pay the Contractor a fixed fee of [Dollar Amount] for the Services.

Option B: The Client shall pay the Contractor on a time and materials basis at a rate of [Dollar Amount] per hour, plus reimbursement for reasonable expenses.

Option C: Progress payments shall be made according to the following schedule: [Payment Schedule tied to milestones or completion stages.]

Retainage: [Percentage]% retainage will be withheld from each payment, to be released [Number] days after final completion and acceptance of the Services.

Invoice Requirements: The Contractor shall submit invoices to the Client [Frequency, e.g., monthly]. Invoices must include [Required invoice information, e.g., date, invoice number, description of services, hours worked, materials costs].

Late Payment Penalty: Payments not received within [Number] days of the invoice date shall be subject to a late payment penalty of [Percentage]% per month.

Lien Rights Notification: The Contractor is hereby notified of its right to file a construction lien under the Michigan Construction Lien Act (MCL 570.1101 et seq.) in the event of non-payment. The Client is obligated to provide Sworn Statements and Waivers as required by the Act.

5. Insurance

Option A: The Contractor shall maintain the following insurance coverage: [Type of insurance, e.g., General Liability] with a minimum coverage of [Dollar Amount], [Type of insurance, e.g., Auto Liability] with a minimum coverage of [Dollar Amount], and [Type of insurance, e.g., Workers’ Compensation] if required by law, with a minimum coverage of [Dollar Amount].

Option B: Contractor shall provide the Client with certificates of insurance evidencing such coverage prior to the commencement of the Services.

Indemnification: The Contractor agrees to indemnify and hold harmless the Client from and against any and all claims, losses, damages, liabilities, costs, and expenses (including attorney's fees) arising out of or relating to the Contractor's performance of the Services, to the extent caused by the negligence or willful misconduct of the Contractor. This indemnification is subject to Michigan law.

6. Licensing and Permits

The Contractor represents and warrants that it holds all necessary and valid Michigan builder’s, maintenance and alteration, or other specialty licenses as required under MCL 339.2401 et seq.

The Contractor shall be responsible for obtaining and paying for all required permits and inspections. Proof of current licensing must be provided to the Client upon request.

7. Warranty

Option A: The Contractor warrants that the Services 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: For residential projects, the warranty period shall be one year, as per MCL 570.151 et seq.

The Contractor's obligation under this warranty is limited to re-performing or repairing defective work. The Client shall notify the Contractor in writing of any defects within the warranty period.

8. Ownership of Work Product

All completed work, including plans and specifications, shall become the property of the Client upon payment.

The Contractor retains ownership of its confidential methods and trade secrets.

9. Subcontractors

Option A: The Contractor shall be solely responsible for hiring, paying, insuring, licensing, and supervising any subcontractors.

Option B: The Contractor shall notify the Client in writing of the names and contact information of any subcontractors used on the project. The Contractor will ensure all subcontractors comply with applicable legal requirements.

10. Change Orders

No changes to the scope of work, schedule, or price shall be made without a written change order signed by both parties.

All change orders must clearly describe the changes, the revised price, and the revised schedule.

11. Safety and Cleanup

The Contractor shall comply with all applicable safety regulations, including those of the Michigan Occupational Safety and Health Administration (MIOSHA).

The Contractor is responsible for site security, debris removal, daily clean-up, and the proper handling and disposal of hazardous substances or waste.

12. Materials and Equipment

Option A: The Client is responsible for procuring and delivering all materials and equipment.

Option B: The Contractor is responsible for procuring and delivering all materials and equipment.

All materials and equipment shall meet the quality standards specified by the Client.

Risk of loss or damage to materials and equipment shall be borne by [Client/Contractor] until acceptance by the Client.

13. Dispute Resolution

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

If negotiation is unsuccessful, the parties agree to submit the dispute to mediation or binding arbitration pursuant to the Michigan Uniform Arbitration Act.

The exclusive jurisdiction and venue for any legal action arising out of this Agreement shall be in the courts of [County Name] County, Michigan.

14. Termination

This Agreement may be terminated by either party upon [Number] days written notice if the other party breaches this Agreement.

The Client may terminate this Agreement for convenience upon [Number] days written notice.

Upon termination, the Contractor shall submit a final invoice for work completed up to the date of termination.

The Contractor shall provide the Client with all necessary lien waivers.

15. Compliance with Laws

The Contractor shall comply with all applicable state and federal laws, including employment, safety, anti-discrimination, and wage laws. The Contractor is responsible for complying with Michigan's Right-to-Work laws.

16. Required Documents

The following documents are attached to and incorporated into this Agreement:

• Written Sworn Statement per the Construction Lien Act
• Michigan Residential Builder's License disclosure (for residential projects)
• Certificates of Insurance
• W-9 Form

17. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written. This Agreement may be modified only in writing signed by both parties.

18. Severability

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

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

____________________________

[Client Legal Name]

By: ____________________________

[Client Signature]

Name: [Client Printed Name]

Title: [Client Title]

____________________________

[Contractor Legal Name]

By: ____________________________

[Contractor Signature]

Name: [Contractor Printed Name]

Title: [Contractor Title]