Montana construction independent contractor agreement template

Montana Construction Independent Contractor Agreement

Date: [Date]

This Construction Independent Contractor Agreement (the "Agreement") is made and entered into as of the date above, by and between:

[Client Name], residing at [Client Address] (the "Client"), and

[Contractor Name], residing at [Contractor Address] (the "Contractor").

1. Scope of Work

Option A: General Description

The Contractor shall perform the following construction services: [Detailed Description of Services, e.g., Framing, Roofing, Excavation] at the project location: [Project Address]. This includes, but is not limited to, providing all labor, materials, equipment, and supervision necessary to complete the services in accordance with Montana construction codes and building regulations.

Option B: Detailed Specifications

The Contractor shall perform the work as described in Exhibit A attached hereto, which includes detailed specifications, deliverables, construction phases, quality standards, materials, equipment, technical specifications, and completion criteria with reference to Montana construction codes and building regulations.

2. Project Location and Site Requirements

Option A: Specific Location Details

The project is located at [Project Address]. The Contractor is responsible for understanding and adhering to all site requirements, accessibility and usage restrictions, and environmental or safety conditions, as outlined in Exhibit B, and in compliance with Montana law.

Option B: Site Visit Required

Prior to commencing work, the Contractor shall conduct a site visit to become familiar with the project location and all applicable site requirements. The Contractor acknowledges that any conditions discovered during the site visit shall be considered in their bid and performance of the work.

3. Work Schedule and Completion

Option A: Fixed Timeline

The project shall commence on [Start Date] and be substantially completed by [Completion Date]. Milestones and progress reporting requirements are as follows: [Detailed Milestones and Reporting Schedule].

Option B: Milestone Based

The project shall be completed in accordance with the following milestones:

Milestone 1: [Milestone Description], due [Date]

Milestone 2: [Milestone Description], due [Date]

Substantial completion is defined as [Definition of Substantial Completion]. Delays due to weather or unforeseen site conditions will be handled according to standard Montana construction practices and require written notice within [Number] days.

4. Payment

Option A: Lump Sum

The Client shall pay the Contractor a lump sum of [Dollar Amount] for the complete performance of the work. The payment schedule is as follows: [Payment Schedule].

Option B: Per Milestone

The Client shall pay the Contractor according to the following milestone schedule:

Milestone 1: [Milestone Description]: [Dollar Amount]

Milestone 2: [Milestone Description]: [Dollar Amount]

Option C: Time and Materials

The Client shall pay the Contractor at a rate of [Dollar Amount] per hour for labor and the actual cost of materials. All materials costs require receipts.

Itemized Payment Details:

Documentation required for each payment includes lien waivers as per Montana Code Annotated. Retainage, if any, shall be [Percentage]%. Allowable reimbursable costs are limited to [List of Allowable Costs]. Montana sales or use tax obligations are the responsibility of [Responsible Party], if applicable. Invoices shall be submitted [Frequency, e.g., weekly, bi-weekly]. Payment is due within [Number] days of invoice receipt, referencing the Montana Prompt Pay Act. Procedures for payment disputes are as follows: [Dispute Resolution Procedures].

5. Independent Contractor Status

The Contractor is an independent contractor and not an employee of the Client. The parties agree that no employment relationship is created by this Agreement. The Contractor is solely responsible for all state and federal taxes, unemployment and workers’ compensation insurance (with certificate or exemption reference as per Montana’s Independent Contractor Exemption Certificate for construction work), and all business licensing compliance in Montana. The contractor's ICEC number is [ICEC Number].

6. Subcontracting

Option A: Allowed with Approval

The Contractor may subcontract portions of the work with the prior written approval of the Client. All subcontractors must comply with Montana’s licensing laws for subcontractors.

Option B: Not Allowed

The Contractor shall not subcontract any portion of the work without the express written consent of the Client.

7. Permits and Inspections

Option A: Contractor Responsibility

The Contractor is responsible for obtaining all necessary building permits and scheduling inspections required for the project.

Option B: Client Responsibility

The Client is responsible for obtaining all necessary building permits and scheduling inspections required for the project. The Contractor shall cooperate with the Client in this process.

Environmental Compliance:

Responsibility for Montana DEQ environmental compliance, if relevant, rests with [Responsible Party].

8. Construction Defects and Liability

The Contractor is liable for construction defects, code violations, or failure to meet project specifications, referencing Montana construction defect remedies and notification periods. The notification period for defects is [Number] days from substantial completion.

9. Safety

The Contractor shall comply with all Montana safety laws (including the Montana Safety Culture Act), OSHA, and site-specific safety protocols. The Contractor is responsible for providing all necessary personal protective equipment (PPE) for their employees.

10. Lien Rights

The Contractor agrees to waive lien rights upon payment. The Client shall provide notice of lien per Montana statutes. Procedures for handling disputed payments or disputed portions of work are as follows: [Dispute Procedures].

11. Confidentiality

The Contractor shall maintain the confidentiality of any trade secrets, proprietary construction methods, or Client project information.

12. Insurance and Indemnification

The Contractor shall maintain general liability insurance in the amount of [Dollar Amount], and property damage insurance in the amount of [Dollar Amount]. The Contractor shall provide evidence of coverage to the Client. The Contractor shall indemnify and hold harmless the Client from any and all claims, losses, damages, liabilities, costs, and expenses arising out of or relating to the Contractor's performance of this Agreement.

13. Change Orders

Any changes to the scope of work, schedule, or price must be documented in a written change order signed by both parties. The change order shall specify the required documentation, authorization, pricing methodology, and impact on the project schedule.

14. 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 fire, flood, severe weather (relevant to Montana), or other acts of God. In such event, the affected party shall provide written notice to the other party within [Number] days.

15. Termination

Option A: For Cause

Either party may terminate this Agreement for cause upon [Number] days written notice. Grounds for termination include, but are not limited to, breach of contract, failure to perform the work in a timely and workmanlike manner, or failure to make payments when due.

Option B: For Convenience

The Client may terminate this Agreement for convenience upon [Number] days written notice to the Contractor. In such event, the Client shall pay the Contractor for all work performed and materials purchased up to the date of termination.

Termination procedures shall include final accounting, demobilization, return of advance payments, and completion of outstanding work.

16. Dispute Resolution

Any disputes arising out of or relating to this Agreement shall be resolved first through direct negotiation. If negotiation fails, the parties agree to submit the dispute to mediation. If mediation fails, the parties agree to submit the dispute to binding arbitration or court action, designating Montana law and courts as governing, with venue in [Montana County] County, Montana.

17. Compliance with Laws

The Contractor shall comply with all applicable Montana construction, environmental, labor, and licensing statutes, including Montana’s contractor registration requirements and contractor’s duty to maintain “good standing.”

18. Special Provisions

[Special Provisions, e.g., Federal or Tribal Lands Requirements]

19. Notices

All notices required under this Agreement shall be in writing and delivered to the addresses set forth above.

20. Project Documentation Retention

Project documentation will be retained as per the Montana Board of Contractors' requirements.

21. Signatures

This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Electronic signatures shall be compliant with Montana’s Uniform Electronic Transactions Act.

Client:

____________________________

[Client Name]

Contractor:

____________________________

[Contractor Name]