Minnesota construction service contract template

Minnesota Construction Service Contract

This Minnesota Construction Service Contract (the "Contract") is made and entered into as of this [Date] by and between:

Contractor: [Contractor Full Legal Name], a [State of Incorporation/Organization, e.g., Minnesota corporation] with its principal place of business at [Contractor Business Address], Minnesota, holding Minnesota Contractor License Number [Contractor License Number] and, if applicable, registered with the Minnesota Secretary of State under File Number [Minnesota Secretary of State File Number], reachable at [Contractor Phone Number] and [Contractor Email Address].

Owner/Client: [Owner/Client Full Legal Name], residing at [Owner/Client Business Address], reachable at [Owner/Client Phone Number] and [Owner/Client Email Address].

Contractor confirms active licensure with the Minnesota Department of Labor and Industry.

Scope of Work

Option A: The Contractor shall perform all labor and furnish all materials and equipment necessary to complete the construction of [Brief Description of Project] at the property located at [Project Address], also legally described as [Legal Property Description], in accordance with the architectural plans and specifications dated [Date], prepared by [Architect Name], and the engineering documents dated [Date], prepared by [Engineer Name], all of which are incorporated herein by reference and compliant with the Minnesota Building Code and applicable local ordinances, including all required permitting.

Option B: The Scope of Work is detailed in Exhibit A attached hereto, which includes a precise description of services, materials, and equipment to be provided, referencing specific sections of the architectural and engineering plans and all applicable Minnesota Building Code and local ordinance references.

Project Schedule

Option A: The Contractor shall commence work on [Start Date] and achieve substantial completion by [Completion Date]. The project schedule, including milestones for excavation, foundation, framing, mechanicals, and finishing, is outlined in Exhibit B attached hereto. Time extensions will be granted for delays caused by circumstances beyond the Contractor's reasonable control, including but not limited to weather delays typical in Minnesota.

Option B: A detailed project schedule is attached as Exhibit B, which includes specific deliverables for each milestone and accounts for potential weather delays common in Minnesota. The schedule will be updated monthly to reflect actual progress.

Permits and Compliance

Option A: The Contractor is responsible for securing all necessary Minnesota state and municipal permits and inspections required for the project.

Option B: The Owner/Client is responsible for obtaining and paying for all permits. The Contractor will provide all necessary information for permit applications.

The Contractor warrants that all work will comply with applicable Minnesota state and local building codes and regulations.

Owner/Client Responsibilities

The Owner/Client shall provide the Contractor with reasonable access to the project site, ensure that utilities are available as needed, and provide timely approvals for all selections and change orders.

Subcontractors and Suppliers

The Contractor may utilize subcontractors and materials suppliers, all of whom shall be properly licensed and certified as required by Minnesota law. The Contractor shall obtain lien waivers from all subcontractors and suppliers upon payment.

The Contractor shall provide the Owner/Client with a list of all subcontractors and suppliers upon request.

Payment

Option A (Lump Sum): The total contract price is [Dollar Amount].

Option B (Unit Price): The contract price will be determined based on the unit prices listed in Exhibit C attached hereto.

Option C (Cost-Plus-Fee): The contract price shall be the actual cost of the work plus a fee of [Percentage]%.

Payment Schedule: Payments shall be made according to the following schedule: [Payment Schedule Details]. Retainage of [Percentage]% will be withheld from each payment, in accordance with Minn. Stat. § 337.10, and released upon final completion and acceptance of the work.

Invoices: The Contractor shall submit invoices to the Owner/Client monthly. Invoices shall include a detailed breakdown of the work completed and materials provided.

Payment Method: Payments shall be made by [Method of Payment, e.g., check, wire transfer].

This contract is subject to the Minnesota "Prompt Payment Act" (Minn. Stat. §§ 337.10, 16A.1245, 471.425).

Allowances, Alternates, and Exclusions

Allowances: Allowances are included for the following items: [List of Allowances].

Alternates: The following alternates are available: [List of Alternates].

Exclusions: The following items are excluded from the scope of work: [List of Excluded Items].

Change Orders

All changes to the scope of work must be documented in writing and approved by both the Contractor and the Owner/Client. Change orders shall include a detailed description of the changes, the impact on the contract price, and the impact on the project schedule.

Sales Tax

The contract price includes/excludes applicable Minnesota sales tax. [Specify whether labor is included or excluded and mention specific exemptions]

Insurance

The Contractor shall maintain general liability insurance, worker's compensation insurance, and builder's risk insurance with coverage levels compliant with Minnesota statutes. The Contractor shall provide the Owner/Client with certificates of insurance upon request.

Withholding Payment/Stopping Work

The Owner/Client may withhold payment or stop work due to defective work or nonperformance by the Contractor. The Owner/Client must provide the Contractor with written notice of the reasons for withholding payment or stopping work.

Quality Standards and Warranties

The Contractor warrants that all work will be performed in a workmanlike manner and in accordance with industry standards. The Contractor shall provide a warranty for [Warranty Period] years on all labor and materials, as required by Minn. Stat. § 327A.02 for new residential construction (if applicable).

Unknown Site Conditions

If unknown site conditions or hazardous materials are discovered, the Contractor shall immediately notify the Owner/Client and suspend work until the conditions are addressed in compliance with Minnesota environmental and safety laws.

Prevailing Wage

If this project is publicly funded, the Contractor shall comply with Minnesota's prevailing wage statutes (Minn. Stat. §§ 177.41–177.44). [Specify whether prevailing wage applies].

Delays

The Contractor shall not be liable for delays caused by weather conditions, force majeure, or other circumstances beyond the Contractor's reasonable control. The Contract time will be extended by written change order for reasonable delays.

Dispute Resolution

Any disputes arising under this Contract shall be resolved through negotiation. If negotiation fails, the parties agree to attempt mediation or binding arbitration in [County Name] County, Minnesota. This Contract shall be governed by and construed in accordance with the laws of the State of Minnesota.

Default and Termination

The Owner/Client may terminate this Contract for cause if the Contractor fails to perform the work in accordance with the terms of this Contract. The Contractor may terminate this Contract for cause if the Owner/Client fails to make payments as required by this Contract. Either party may terminate this contract for convenience with [Number] days written notice. Upon termination, all outstanding payments and retainage shall be settled.

Remedies

Remedies for breach of this Contract shall include, but are not limited to, damages for incomplete, defective, or untimely work. Liquidated damages, if applicable, are specified in Exhibit D.

Mechanics Lien

The Contractor shall have the right to file a mechanics lien against the property in accordance with Minnesota law (Minn. Stat. §§ 514.011, 514.06). The Contractor shall provide the Owner/Client with a preliminary notice of lien rights as required by Minnesota law.

Documentation

The Contractor shall provide the Owner/Client with all documentation, as-built drawings, warranties, and operation and maintenance manuals upon completion of the project.

Confidentiality

All project information and proprietary plans shared during the engagement shall be kept confidential.

Compliance with Laws

The Contractor shall comply with all applicable Minnesota labor, safety, anti-discrimination, and environmental regulations.

Amendment

Any amendment to this Contract must be in writing and signed by both parties.

Entire Agreement

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

Both parties acknowledge that they have read, understood, and voluntarily agree to the terms of this Contract. It is recommended that each party consult with their own Minnesota legal counsel before signing.

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

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[Contractor Full Legal Name]

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[Owner/Client Full Legal Name]