Minnesota maintenance independent contractor agreement template
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How Minnesota maintenance independent contractor agreement Differ from Other States
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Minnesota law requires a written agreement for certain independent contractor relationships in the construction and maintenance industry.
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Minnesota mandates specific disclosures regarding tax and insurance obligations for independent contractors.
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Minnesota uses a nine-factor statutory test to determine independent contractor status for maintenance and construction workers.
Frequently Asked Questions (FAQ)
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Q: Is a written agreement legally required in Minnesota for maintenance contractors?
A: A written agreement is strongly recommended in Minnesota and often required by law for certain industries, including maintenance.
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Q: What specific disclosures must be included in a Minnesota maintenance independent contractor agreement?
A: The agreement should disclose tax obligations, insurance requirements, and clarify the independent contractor status per state law.
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Q: Does Minnesota require an employer to provide workers’ compensation for independent contractors?
A: No, as long as the individual is properly classified as an independent contractor under Minnesota law and not as an employee.
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Minnesota Maintenance Independent Contractor Agreement
This Minnesota Maintenance Independent Contractor Agreement (the “Agreement”) is made and entered into as of this [Date], by and between:
[Client Legal Name], located at [Client Address], with phone number [Client Phone Number] (hereinafter referred to as "Client"),
and
[Contractor Legal Name], located at [Contractor Address], with phone number [Contractor Phone Number] (hereinafter referred to as "Contractor").
1. Scope of Services
The Contractor shall provide the following maintenance services to the Client:
- Option A: Building Maintenance Services: Maintenance and repair of the building located at [Service Location Address], including but not limited to:
- Routine inspections of [Specify areas, e.g., HVAC, plumbing, electrical]
- Preventative maintenance on [Specify equipment, e.g., boilers, chillers, generators]
- Repairs to [Specify areas, e.g., drywall, flooring, roofing]
- Option B: Facility Maintenance Services: Maintenance and repair of the facility located at [Service Location Address], including but not limited to:
- Landscaping and grounds maintenance
- Janitorial services
- Snow removal
- Option C: Equipment Maintenance Services: Maintenance and repair of the equipment located at [Service Location Address], including but not limited to:
- [Specific equipment 1]
- [Specific equipment 2]
- [Specific equipment 3]
- Option D: Property Maintenance Services: Maintenance and repair of the property located at [Service Location Address], including but not limited to:
- General repairs and maintenance as needed.
- Regular inspections and reporting of property condition.
- Addressing tenant requests and concerns related to maintenance.
- Service Frequency: [Specify frequency, e.g., weekly, monthly, quarterly]
- Service Timing: [Specify timing, e.g., business hours, 24/7 availability]
- Access Requirements: [Specify access requirements, e.g., key access, security code, Client escort]
- Scope of Work Details: [Detailed description of each task, including specific deliverables and expected outcomes].
- Industry-Specific Standards: The Contractor shall comply with all applicable industry-specific standards, including but not limited to OSHA safety requirements, Minnesota Department of Labor and Industry standards, environmental regulations, and hazardous materials handling procedures.
- Local Ordinances: The Contractor shall comply with all applicable local ordinances of [City/County], Minnesota, including but not limited to property maintenance codes.
- Licensing: The Contractor shall possess and maintain all necessary licenses and registrations required by the State of Minnesota for the specific trades involved in the maintenance services, such as HVAC, plumbing, or electrical.
- Service Schedules: The Contractor shall adhere to the following service schedules: [Detailed schedule outlining specific dates and times for routine maintenance tasks].
- Response Time: The Contractor shall respond to urgent or emergency service requests within [Number] hours.
- Work Orders: The Contractor shall follow the Client's work order procedures, including [Detailed description of work order process].
- Reporting: The Contractor shall provide regular reports to the Client, including [List of reporting requirements].
- Documentation: The Contractor shall maintain detailed maintenance logs and documentation, including [List of required documentation].
2. Materials, Tools, and Equipment
- Option A: Client Supplies: The Client shall supply all necessary materials, tools, and equipment for the Contractor to perform the services.
- Option B: Contractor Supplies: The Contractor shall supply all necessary materials, tools, and equipment for the Contractor to perform the services.
- Reimbursement: The Contractor shall be reimbursed for the cost of materials at [Percentage]% of the actual cost.
- Maintenance of Tools and Equipment: The Contractor shall be responsible for maintaining all tools and equipment in good working order.
- Insurance: The Contractor shall maintain insurance coverage for all tools and equipment.
3. Compensation and Payment
- Option A: Hourly Rate: The Contractor shall be compensated at an hourly rate of [Dollar Amount].
- Option B: Per Project: The Contractor shall be compensated [Dollar Amount] per project.
- Option C: Retainer-Based: The Contractor shall be compensated with a retainer of [Dollar Amount] per [Time Period].
- Option D: Milestone-Based: The Contractor shall be compensated based on the following milestones: [List of Milestones and Associated Payments].
- Minimum Service Call Fee: The Contractor shall receive a minimum service call fee of [Dollar Amount].
- Overtime Rate: Overtime, if applicable, shall be paid at a rate of [Dollar Amount] per hour. The Contractor is responsible for complying with all applicable wage laws.
- Invoicing: The Contractor shall submit invoices to the Client [Frequency, e.g., weekly, monthly], with detailed documentation of the services provided.
- Payment Terms: The Client shall pay the Contractor within [Number] days of receipt of a valid invoice. If Client is a public entity, payment terms shall adhere to the Minnesota Prompt Payment Act.
- Sales Tax: Contractor is responsible for determining and remitting any applicable Minnesota sales or use tax on services.
- Late Payment: Late payments shall be subject to interest at a rate of [Percentage]% per month.
- Expense Reimbursement: The Contractor shall be reimbursed for pre-approved expenses, with receipts.
- Required Documentation: All invoices must include: [List of required information].
4. Independent Contractor Status
The parties agree that the Contractor is an independent contractor and not an employee of the Client. This Agreement does not create an employer-employee relationship, partnership, joint venture, or agency between the parties. The parties acknowledge and agree to the following per Minnesota law (Minn. Stat. § 181.723 and related factors):
- The Contractor has the right to control the manner and means of performing the services.
- The Contractor is not entitled to employee benefits, including but not limited to health insurance, paid time off, and retirement plans.
- The Contractor is responsible for their own income and self-employment taxes.
- The Contractor shall maintain their own insurance, including workers' compensation coverage for any employees or self-exemption as permitted by Minnesota law.
- The Contractor is responsible for paying their own unemployment taxes.
- The Contractor shall comply with all applicable Minnesota Department of Revenue and IRS requirements, including providing the Client with a completed W-9 form.
5. Subcontracting
- Option A: Subcontracting Not Allowed: The Contractor shall not subcontract any of the services without the prior written consent of the Client.
- Option B: Subcontracting Allowed: The Contractor may subcontract services with prior written consent of the Client. All subcontracts must comply with applicable Minnesota statutory requirements for subcontractor payment and lien waivers if within the construction context.
6. Insurance
The Contractor shall maintain the following insurance coverage:
- General Liability Insurance: Minimum coverage of [Dollar Amount].
- Property Damage Insurance: Minimum coverage of [Dollar Amount].
- Auto Insurance: If vehicles are used, minimum coverage of [Dollar Amount].
- Workers' Compensation Insurance: Proof of workers' compensation insurance or proper exemption registration with the Minnesota Department of Labor and Industry.
7. Ownership and Confidentiality
- Ownership of Work Product: All work product, documentation, and maintenance records shall be the property of the Client.
- Data Confidentiality: The Contractor shall maintain the confidentiality of all Client data and information.
- Privacy: The Contractor shall comply with all applicable privacy laws, including the Minnesota Government Data Practices Act (or Minnesota Stat. § 13 if relevant), regarding the protection of personal data.
- Non-Disclosure: The Contractor shall not disclose any Client information to any third party.
8. Indemnification
The Contractor shall indemnify and hold harmless the Client from any and all claims, damages, losses, and expenses arising out of or relating to the Contractor's work or negligence, including but not limited to damage to property, bodily injury, or third-party claims. Indemnification is subject to Minnesota anti-indemnification statutes (Minn. Stat. § 337.02 for certain construction/maintenance contracts).
9. Liability Limitations and Warranties
- Liability Limitation: The Contractor's liability shall be limited to [Dollar Amount].
- Professional Standards: The Contractor shall perform the services in a professional manner, consistent with industry standards.
- Warranty: The Contractor warrants the workmanship for a period of [Number] days/months. Any express warranties provided, or required by local/county rules, shall be documented in a separate addendum to this Agreement.
10. Term and Termination
- Term: This Agreement shall commence on [Start Date] and continue until [End Date].
- Renewal: This Agreement may be renewed for an additional term of [Number] years upon mutual written agreement of the parties.
- Automatic Termination: This Agreement shall automatically terminate upon completion of the project.
- Termination for Convenience: Either party may terminate this Agreement for convenience upon [Number] days written notice to the other party.
- Termination for Breach: Either party may terminate this Agreement for breach if the other party fails to cure the breach within [Number] days of written notice.
- Obligations Upon Termination: Upon termination, the Contractor shall return all Client property, including keys, security cards, access codes, equipment, and materials. The Contractor shall also deliver all maintenance logs and documentation to the Client and transfer any pending work orders as directed by the Client.
11. Dispute Resolution
- Good Faith Negotiation: The parties shall first attempt to resolve any disputes through good faith negotiation.
- Mediation: If negotiation fails, the parties shall attempt to resolve the dispute through mediation.
- Arbitration: If mediation fails, the parties shall resolve the dispute through binding arbitration in accordance with the rules of the American Arbitration Association (AAA) in Minneapolis, Minnesota (if applicable).
- Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota.
- Jurisdiction: Any legal action arising out of or relating to this Agreement shall be brought in the courts of the State of Minnesota.
12. Modifications and Amendments
All modifications and amendments to this Agreement must be in writing and signed by both parties.
13. Permits and Authorizations
The Contractor shall obtain all necessary permits and authorizations required for the specific types of work performed, and comply with city inspection requirements and provide evidence to client.
14. Lien Waiver
The Contractor shall provide a lien waiver or notice of potential lien rights as required by Minnesota mechanics lien statutes if the work is within the mechanics lien scope.
15. Communication
All communication related to this Agreement shall be in writing and directed to the following authorized representatives:
- For the Client: [Client Authorized Representative Name], [Client Authorized Representative Email]
- For the Contractor: [Contractor Authorized Representative Name], [Contractor Authorized Representative Email]
16. Force Majeure
Neither party shall be liable for any delay or failure to perform its obligations under this Agreement due to a force majeure event, including but not limited to weather-related delays common in Minnesota. The parties shall reschedule performance as soon as reasonably practicable.
17. Background Checks
The Contractor shall conduct background checks on all personnel who will be working on the Client's property. The Contractor must comply with property management rules if working in multi-tenant or sensitive environments.
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]