Mississippi construction service contract template
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How Mississippi construction service contract Differ from Other States
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Mississippi mandates that construction contracts over $50,000 must be handled by a licensed contractor, while thresholds differ in other states.
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Mississippi’s lien laws require preliminary notice within 30 days after first furnishing labor or materials, which may vary elsewhere.
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Certain Mississippi public works projects require contractors to participate in the state’s E-Verify employment compliance program, unlike some states.
Frequently Asked Questions (FAQ)
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Q: Is a written contract required for construction services in Mississippi?
A: While not always mandatory, a written contract is strongly recommended for projects over $50,000 to protect all parties.
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Q: Are there specific licensing requirements for contractors in Mississippi?
A: Yes, contractors for projects exceeding $50,000 must be licensed by the Mississippi State Board of Contractors.
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Q: What rights do subcontractors have under Mississippi construction contracts?
A: Subcontractors have lien rights if they provide notice within 30 days of starting work, protecting their ability to secure payment.
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Mississippi Construction Service Contract
This Mississippi Construction Service Contract (the "Agreement") is made and entered into as of this [Date], by and between:
Contractor: [Contractor Full Legal Name], whose address is [Contractor Address], and Mississippi Contractor License Number is [Contractor License Number] (hereinafter "Contractor"), and
Owner: [Owner Full Legal Name], whose address is [Owner Address] (hereinafter "Owner").
1. Project Description
Option A: The Contractor shall perform the following construction work: [Detailed Description of Work] at the property located at [Project Address], Parcel Number: [Parcel Number], Legal Description: [Legal Property Description].
Option B: The Contractor shall perform the work as described in Exhibit A, attached hereto and incorporated herein by reference, at the property located at [Project Address], Parcel Number: [Parcel Number], Legal Description: [Legal Property Description].
2. Scope of Work
Option A: The Scope of Work includes, but is not limited to:
- Architectural plans and drawings attached as Exhibit B.
- Materials specifications outlined in Exhibit C.
- Work phases as detailed in Exhibit D.
- Compliance with the Mississippi Building Code and all applicable municipal permit requirements.
Option B: The Scope of Work shall also include:
- Site preparation, including [Description of Site Prep].
- Demolition of existing structures, if any [Description of Demolition].
- Environmental remediation, if applicable [Description of Remediation]; Compliance with Mississippi Building Code, OSHA construction safety standards, and local zoning regulations.
3. Permits and Approvals
Option A: The Contractor is responsible for obtaining the following permits: [List of Permits]. Timeline for obtaining approvals: [Permit Timeline].
Option B: The Owner is responsible for obtaining the following permits: [List of Permits]. Timeline for obtaining approvals: [Permit Timeline].
Responsibility for inspections: [Party Responsible].
4. Project Schedule
Option A:
- Project Start Date: [Start Date].
- Substantial Completion Date: [Substantial Completion Date].
- Final Completion Date: [Final Completion Date].
Option B:
- Project milestones and deadlines are outlined in Exhibit E.
- Owner approval deadlines: [Approval Deadlines].
- Circumstances for justified extensions (e.g., adverse weather): [Description of Circumstances].
5. Contract Sum and Payment
Option A: Fixed-Price Contract: The Contract Sum is [Dollar Amount].
- Payment schedule: [Payment Schedule].
- Retainage: 10% (as per Mississippi law).
- Invoicing procedure: [Invoicing Procedure].
Option B: Cost-Plus Contract: The Contract Sum shall be the cost of the Work plus a fee of [Percentage or Fixed Amount].
Option C: Time-and-Materials Contract: The Contractor shall be paid on an hourly basis at a rate of [Dollar Amount] per hour for labor, plus the cost of materials.
- Detailed schedule of values: [Schedule of Values].
- Applicable Mississippi sales/use taxes: [Description of Tax Responsibilities].
6. Owner-Supplied Items
Option A: The Owner shall supply the following items: [List of Items].
Option B: The Contractor is responsible for supplying all materials, labor, and equipment necessary for the completion of the Work, meeting minimum quality standards [Quality Standards].
7. Change Orders
All changes to the Scope of Work must be in writing and signed by both parties.
- Requirements for Mississippi lien law compliance: [Lien Law Compliance Requirements].
- Notice periods: [Notice Periods].
- Adjustment of time/cost: [Adjustment Procedures].
8. Insurance
The Contractor shall maintain the following insurance policies:
- General liability insurance: [Coverage Limits].
- Workers’ compensation insurance (as required by the Mississippi Workers’ Compensation Act).
- Builders’ risk insurance: [Coverage Limits].
- Automobile liability insurance: [Coverage Limits].
- Additional insured endorsements: [Description of Endorsements].
- Waiver of subrogation: Included.
9. Compliance with Laws
The Contractor shall comply with all applicable Mississippi Labor Laws, wage requirements, and ensure all subcontractors are properly licensed by the Mississippi State Board of Contractors.
10. Subcontractors
The Contractor shall be responsible for hiring, supervising, and paying subcontractors.
- Written subcontracts complying with Mississippi requirements.
- Lien waivers/releases at each payment.
11. Lien Rights
The Contractor shall comply with Mississippi lien rights procedures.
- Requirements for preliminary notice.
- Timing and form of lien waivers/releases.
- Contractor shall defend/indemnify Owner against mechanic’s liens caused by failure to pay materialmen or laborers.
12. Bonding Requirements
Option A: Performance and payment bonds are required.
- Referencing current forms and thresholds under Mississippi statutes.
Option B: Bonding requirements are not applicable to this project.
13. Warranty
The Contractor warrants the Work against defects for a period of one (1) year from the date of Substantial Completion, meeting or exceeding Mississippi statutory minimums.
- Covered defects: [Description of Defects].
- Warranty period: One (1) year.
- Processes for claims and remedial work: [Claims and Remedial Work Procedures].
14. Hazardous Materials
Procedures for dealing with hazardous materials and compliance with state/federal environmental laws, including Mississippi Department of Environmental Quality rules on asbestos, lead, etc.: [Hazardous Materials Procedures].
15. Site Access and Safety
Site access, utilities, storage, jobsite safety, surrounding property protection, and local noise/dust/traffic ordinances as enforced by Mississippi authorities: [Site Access and Safety Procedures].
16. Mississippi Statutes and Regulations
The Contractor shall comply with all applicable Mississippi statutes and administrative regulations, including the Mississippi Public Procurement Review Board requirements if a public project.
17. Default and Termination
Grounds and processes for default, cure periods, termination for cause or convenience, rights and obligations upon early termination, and settlement of outstanding obligations or incomplete work in compliance with Mississippi law: [Default and Termination Procedures].
18. Remedies and Damages
Remedies and damages for breach—specify types of recoverable damages, attorney fees if allowed, limitations on liability, allocation of risk for delay, defects, or third-party claims: [Remedies and Damages Procedures].
19. Dispute Resolution
Dispute resolution starting with good-faith negotiation, mediation per the Mississippi Rules for Mediation, arbitration under the American Arbitration Association’s Construction Industry Rules if chosen, and specify exclusive venue and governing law as Mississippi, with reference to the local circuit court if needed: [Dispute Resolution Procedures].
20. Intellectual Property
Allocation of intellectual property in plans, specifications, proprietary methods, granting rights consistent with Mississippi custom and any architect/engineer involvement: [Intellectual Property Allocation].
21. Confidentiality
Requirements for confidentiality of commercial, project, and proprietary information, especially if public records law or bid data are involved: [Confidentiality Requirements].
22. Force Majeure
Force majeure events with definitions relevant to regional risks (hurricanes, floods, labor disruptions, material shortages), including notification and mitigation duties: [Force Majeure Procedures].
23. Mississippi Tax Rules
Address compliance with Mississippi Department of Revenue tax rules on construction contracts, clarify use tax obligations, and any economic development/tax incentive program compliance if applicable: [Tax Compliance Procedures].
24. Equal Opportunity
Equal employment opportunity, DBE/MBE participation provisions if required by funding source: [Equal Opportunity Provisions].
25. Project Records
The Contractor will maintain all official records logs, daily reports, and make them available for Owner or Mississippi regulatory inspection as required: [Project Records Requirements].
26. Project Closeout
Requirements for project closeout, including final clean-up, delivery of as-built drawings, release of liens, certificate of occupancy, and all warranty and operations manuals needed for code compliance and future maintenance: [Project Closeout Procedures].
27. Post-Completion Maintenance
Clarify which party is responsible for post-completion maintenance, call-backs, and follow-up work under Mississippi standards: [Post-Completion Responsibilities].
28. Audit Rights
Reserve right for audit or inspection by the Client or state regulatory authorities if state funds or public contracts are involved.
29. 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 amended only by a writing signed by both parties. No waiver of any provision of this Agreement shall be effective unless in writing and signed by the waiving party. All elements of this agreement are adjustable or optional depending on project characteristics as permitted under Mississippi law. 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.
[Contractor Full Legal Name]
By: [Contractor Signature]
[Contractor Printed Name]
[Owner Full Legal Name]
By: [Owner Signature]
[Owner Printed Name]