Michigan construction service contract template

Michigan Construction Service Contract

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

Contractor: [Contractor Legal Name], a [State] [Business Type] with its principal place of business at [Contractor Address], Michigan Builder's License Number: [License Number] (“Contractor”), and

Owner: [Owner Legal Name], residing at [Owner Address] (“Owner”).

Project Name: [Project Name]

1. Project Location and Legal Description:

The construction project shall be located at [Project Address], Michigan, with the following legal description: [Legal Property Description].

2. Scope of Work:

The Contractor shall perform all work necessary to complete the following construction project (the “Work”):

• Detailed Description: [Detailed Description of Work, including but not limited to engineering, architectural, demolition, site preparation, labor, material specifications, Michigan Energy Code compliance, quality standards, manufacturer warranties, required subcontracted trades, and references to Michigan building codes and local ordinances]

3. Permits and Approvals:

• Option A: The Contractor shall be responsible for obtaining all necessary permits and approvals required for the Work.
• Option B: The Owner shall be responsible for obtaining all necessary permits and approvals required for the Work.
• List of specific permits: [List of specific permits to be obtained]

4. Project Schedule:

• Start Date: [Start Date]
• Substantial Completion Date: [Substantial Completion Date]
• Option A: Liquidated Damages: In the event of a delay in achieving Substantial Completion beyond the agreed-upon date, the Contractor shall pay to the Owner liquidated damages in the amount of [Dollar Amount] per day for each day of delay.
• Option B: No Liquidated Damages.
• Excusable Delays: The following events shall constitute excusable delays: [List of Excusable Delays, including Michigan weather impact and local inspection scheduling issues]

5. Contract Price and Payment Terms:

The Owner shall pay the Contractor for the satisfactory performance of the Work the following:

• Option A: Lump Sum Price: [Dollar Amount]
• Option B: Unit Price: As detailed in Exhibit A
• Option C: Cost-Plus: Cost of Work, plus [Percentage]%, not to exceed [Dollar Amount].

Payment Schedule:

• Milestone 1: [Description of Milestone 1] - [Dollar Amount]
• Milestone 2: [Description of Milestone 2] - [Dollar Amount]
• Final Payment: [Description of Final Milestone] - [Dollar Amount]

• Retainage: [Percentage]% (No more than 10% per Michigan Public Act 524)
• Michigan Sales and Use Tax: [Specify Responsibility for Michigan Sales and Use Tax]
• Acceptable Payment Methods: [List Acceptable Payment Methods]

6. Change Orders:

All changes to the Work must be authorized in writing via a Change Order, signed by both the Owner and the Contractor, detailing the scope of the change, the impact on the Contract Price, and the impact on the Project Schedule. Compliance with the Michigan Construction Lien Act applies to Change Orders.

7. Insurance and Bonding:

• Contractor shall maintain:
  • General Liability Insurance: Meeting Michigan minimums of [Dollar Amount]
  • Worker’s Compensation Insurance: As required by Michigan law.
• Option A: Performance Bond: Contractor shall provide a performance bond in the amount of [Dollar Amount].
• Option B: Payment Bond: Contractor shall provide a payment bond in the amount of [Dollar Amount].

8. Utilities, Job Site Access, and Safety:

• Responsibilities for Utilities: [Specify responsibilities for utilities]
• Job Site Access: [Specify job site access provisions]
• Safety Measures: [Detailed safety measures, including OSHA compliance and Michigan-specific workplace safety rules]

9. Material Handling and Waste Disposal:

• Material Handling and Onsite Storage: [Specify material handling and onsite storage procedures]
• Waste Disposal: [Specify responsibility for waste disposal]
• Hazardous Waste: [Specify hazardous waste handling procedures under Michigan EGLE requirements]
• Post-Construction Site Cleanup: [Specify post-construction site cleanup procedures]

10. Inspections, Punch List, and Completion:

• Inspection Procedures: [Detailed inspection procedures]
• Punch List Process: [Detailed punch list process]
• Substantial Completion Definition: [Definition of Substantial Completion]
• Final Completion Definition: [Definition of Final Completion]
• Acceptance Criteria: [Detailed acceptance criteria]
• Defect Remedy Response Times: [Response times for defect remedy as per Michigan law]

11. Warranties:

• Labor and Materials: Contractor warrants the Work for a period of [Number] year(s) from the date of Substantial Completion (minimum 1 year under Michigan Occupational Code for residential work).
• Additional Warranties: [List any additional manufacturer or extended warranties]

12. Intellectual Property:

• Option A: Contractor-Supplied Plans: Contractor retains ownership of all intellectual property related to plans supplied by the Contractor. The owner is allowed to use these plans for [Specific Allowed Uses].
• Option B: Owner-Supplied Plans: Owner retains ownership of all intellectual property related to plans supplied by the Owner. Contractor has the right to reuse these plans for [Specific Allowed Uses].

13. Dispute Resolution:

• Negotiation: The parties shall first attempt to resolve any disputes through good faith negotiation.
• Mediation/Arbitration: If negotiation fails, the parties agree to [Choose one: Mediation/Arbitration] in [City, Michigan].
• Governing Law and Jurisdiction: This Agreement shall be governed by and construed in accordance with the laws of the State of Michigan. Exclusive jurisdiction shall be in the courts of Michigan.

14. Suspension and Termination:

• Valid Causes for Suspension/Termination: [List valid causes, e.g., breach, insolvency, failure to pay, force majeure as defined under Michigan law]
• Notice Requirements: [Specify notice requirements for suspension/termination]
• Final Accounting: [Specify final accounting procedures]
• Right to Withhold Payment: [Specify right to withhold payment for incomplete or defective work]

15. Michigan Construction Lien Act Compliance:

The Contractor shall comply with the Michigan Construction Lien Act, including providing the required Notice of Right to a Lien, waiver of liens upon payment, and furnishing sworn statements and lien waivers for all subcontractors and suppliers before each payment.

16. Indemnification:

Contractor shall indemnify and hold harmless the Owner from and against any and all claims, damages, losses, and expenses arising out of or resulting from the Contractor’s negligence in performing the Work, including but not limited to third-party property damage, personal injury, and environmental issues caused by Contractor negligence, following Michigan common law.

17. Licensing and Qualifications:

Contractor represents that it is duly licensed and qualified to perform the Work in the State of Michigan. Contractor’s Michigan Builder’s License Number: [License Number]. Owner can verify license through the Michigan Department of Licensing and Regulatory Affairs (LARA) databases.

18. Representations, Warranties, and Covenants:

Contractor represents, warrants, and covenants that it will:

• Not use unlicensed subcontractors.
• Comply with all current state and local construction regulations.
• Perform the Work in a workmanlike manner adhering to standard industry practices.

19. Confidentiality:

Contractor shall maintain the confidentiality of proprietary construction techniques, project information, and client data.

20. Insurance Notification:

Contractor shall promptly notify the Owner of any accidents or claims arising from the Work.

21. Attorney Fees and Interest:

In the event of a payment dispute or default, the prevailing party shall be entitled to recover reasonable attorney fees and statutory interest as provided by Michigan law.

22. Notices:

All notices shall be in writing and delivered by [Specify method of delivery] to the addresses listed above. Notice is effective upon [Specify effective date].

23. Amendments:

All amendments and change orders must be in writing and signed by both parties.

24. Governing Law:

This Agreement shall be governed by and construed in accordance with the laws of the State of Michigan.

25. Severability:

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

26. Mandatory Disclosures:

The following mandatory disclosures for residential projects are attached: [List attached disclosures, e.g., Right to Residential Building Codes, Consumer Financial Protection, and Notice of Cancellation rights]

27. Federal Compliance:

[Specify federal compliance requirements, if applicable]

28. Assignment:

Neither party may assign this Agreement without the express written consent of the other party.

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

Contractor:

[Contractor Legal Name]

By: [Contractor Signature]

Name: [Contractor Printed Name]

Title: [Contractor Title]

Owner:

[Owner Legal Name]

By: [Owner Signature]

Name: [Owner Printed Name]