Montana construction service contract template

Montana Construction Service Contract

This Montana Construction Service Contract ("Agreement") is made and entered into as of [Date], by and between:

Contractor: [Contractor Legal Name], a [Contractor Entity Type, e.g., LLC] with a principal place of business at [Contractor Address], Montana Contractor Registration Number: [Contractor Registration Number], Phone: [Contractor Phone Number], Email: [Contractor Email Address].

Owner: [Owner Legal Name], residing at [Owner Address], Phone: [Owner Phone Number], Email: [Owner Email Address].

Project Name: [Project Name]

1. Scope of Work:

Option A: Contractor shall perform all work described in Exhibit A ("Scope of Work"), attached hereto and incorporated herein. This work includes, but is not limited to, [brief description of work].

Option B: Contractor shall perform the following specific tasks:

• [Task 1 Description]
• [Task 2 Description]
• [Task 3 Description]

The construction site is located at [Legal Property Description of Construction Site]. The project specifications, blueprints, and drawings are attached as Exhibit B. All materials used shall meet Montana building codes and specifications.

2. Project Schedule:

Option A: The project shall commence on [Start Date] and be substantially completed by [Substantial Completion Date]. Final completion shall be achieved by [Final Completion Date].

Option B: The project will be completed according to the milestone schedule outlined in Exhibit C ("Project Schedule").

Extensions to the schedule due to weather conditions (consistent with Montana climate patterns), unforeseen site conditions, or other force majeure events require written documentation and mutual agreement.

3. Payment Terms:

Option A: Fixed Price. The total contract price is [Dollar Amount].

• Payment Schedule:
• [Percentage]% upon signing this Agreement.
• [Percentage]% upon completion of [Milestone].
• [Percentage]% upon substantial completion.
• [Percentage]% upon final completion.

Option B: Time and Materials. Contractor shall be paid for labor at a rate of [Dollar Amount] per hour and for materials at cost plus [Percentage]%.

Option C: Cost-Plus. Contractor shall be paid for the actual costs incurred plus a fee of [Percentage]% of the total cost.

Retainage: Owner shall withhold [Percentage, no more than 5%] of each progress payment as retainage, in compliance with Montana Statute MCA 28-2-722.

Invoices shall be submitted [Frequency, e.g., monthly] and include itemized details. Late payments shall accrue interest at a rate of [Percentage]% per month. Contractor will provide lien waivers with each payment request. Applicable Montana state and local taxes are included in the total price.

4. Change Orders:

All changes to the scope of work, price, or schedule must be documented in a written change order, signed by both parties.

Each change order will include a detailed description of the change, the revised price, and any adjustments to the schedule.

5. Licensing, Bonding, and Insurance:

Contractor is duly licensed and registered in Montana, as required by Title 39, Chapter 9, MCA.

Contractor shall maintain the following insurance coverage:

• General Liability Insurance: [Dollar Amount]
• Workers' Compensation Insurance (as required by Montana law)
• Property Damage Insurance: [Dollar Amount]
• Builder's Risk Insurance: [Dollar Amount]
• Automobile Liability Insurance: [Dollar Amount]

Owner shall be named as an additional insured on Contractor's general liability policy, if required. Certificates of insurance shall be provided to Owner.

6. Warranties:

Contractor warrants that all work shall be performed in a workmanlike manner and free from defects for a period of one year from the date of substantial completion, as per Montana law.

Manufacturer warranties apply to materials as specified. Warranty claims shall be submitted to Contractor in writing, detailing the nature of the defect.

7. Site Conditions:

Contractor has inspected the site and is aware of existing conditions.

If unknown subsurface or hazardous conditions are discovered, Contractor shall notify Owner immediately, and the parties shall negotiate an equitable adjustment to the contract price and schedule.

8. Permits and Approvals:

Contractor is responsible for obtaining and paying for all necessary permits, licenses, and regulatory approvals, including Montana DEQ, fire, zoning, and local building authority requirements. [Specify which party is responsible for specific permits]

9. Compliance with Laws:

Contractor shall comply with all applicable Montana state and local building codes, accessibility requirements, occupational safety (including OSHA and Montana Department of Labor regulations), and environmental laws.

10. Delays:

Contractor shall not be liable for delays caused by weather, government action, labor shortages, or supply issues common in Montana.

Contractor shall provide written notice to Owner of any excusable delay within [Number] days of its occurrence.

11. Submittals:

Contractor shall provide all required submittals (shop drawings, schedules, safety plans) to Owner for review.

Owner shall review and approve or reject submittals within [Number] days.

12. Subcontractors:

Option A: Contractor shall not use subcontractors without the prior written approval of Owner.

Option B: Contractor may use the following subcontractors: [List of Approved Subcontractors].

Contractor shall ensure that all subcontractors provide necessary lien releases and insurance.

13. Safety and Security:

Contractor is responsible for maintaining a safe and secure construction site.

Owner has the right to inspect the work for quality and regulatory compliance.

14. Indemnification:

To the fullest extent permitted by Montana law, specifically MCA 28-2-2111, Contractor shall indemnify and hold harmless Owner from and against any and all claims, damages, losses, and expenses arising out of or resulting from Contractor's negligence or willful misconduct in the performance of the work. This indemnification shall not apply to the extent caused by the Owner's sole negligence.

15. Cleanup:

Contractor shall maintain the site in a clean and orderly condition and shall remove all debris upon completion of the work.

Contractor shall protect adjacent premises and restore the site to its original condition as required by local ordinances.

16. Dispute Resolution:

Any dispute arising out of or relating to this Agreement shall be resolved through the following process:

• Negotiation: The parties shall first attempt to resolve the dispute through good faith negotiation.
• Mediation: If negotiation fails, the parties shall submit the dispute to mediation.
• Arbitration/Litigation: If mediation fails, the parties may pursue binding arbitration or litigation in Montana state courts. Montana law shall govern this agreement.

17. Termination:

Option A: Termination for Cause. Owner may terminate this Agreement for cause upon written notice to Contractor, if Contractor materially breaches this Agreement, becomes bankrupt, fails to perform the work in a timely manner, or violates safety regulations. Contractor shall have [Number] days to cure the breach.

Option B: Termination for Convenience. Owner may terminate this Agreement for convenience upon [Number] days' written notice to Contractor.

Upon termination, Contractor shall be paid for all work completed or partially completed, less any damages incurred by Owner as a result of Contractor's breach.

18. Assignment:

Contractor shall not assign this Agreement or subcontract a substantial portion of the work without the prior written consent of Owner.

19. Right to Repair:

The parties shall comply with Montana's "Right to Repair" act, if applicable.

Owner shall provide Contractor with written notice of any defects and allow Contractor a reasonable opportunity to remedy the defects before pursuing any claim or litigation.

20. Owner's Access:

Owner shall have reasonable access to the construction site for inspection purposes.

Owner shall provide Contractor with reasonable notice prior to any site visits.

21. Intellectual Property:

Any unique designs, plans, or proprietary materials shall remain the intellectual property of [Owner/Contractor].

22. Mechanic's Lien Law:

The parties shall comply with Montana's mechanic's lien laws (MCA 71-3-521 et seq.).

Contractor shall provide Owner with a preliminary notice as required by law.

23. Recordkeeping:

Contractor shall maintain accurate records of all costs incurred in connection with the project.

Owner shall have the right to audit Contractor's records related to cost-plus contracts or reimbursable expenses.

24. Material Breach, Damages and Remedies:

[List of acts constituting material breach] shall be considered a material breach of this agreement.

Damages and remedies will be determined according to Montana law.

25. Entire Agreement:

This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings.

Any amendments to this Agreement must be in writing and signed by both parties.

26. Governing Law:

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

27. Signatures:

Contractor:

____________________________

[Contractor Legal Name]

[Contractor Title]

Date: [Date]

Owner:

____________________________

[Owner Legal Name]

Date: [Date]