Nebraska construction independent contractor agreement template
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How Nebraska construction independent contractor agreement Differ from Other States
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Nebraska law emphasizes economic independence; contractors must control their work and have distinct business risk.
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Nebraska requires contractors to register with the Nebraska Department of Labor if they perform construction or repair work.
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The state has specific guidelines on worker classification, with harsh penalties for misclassifying employees as contractors.
Frequently Asked Questions (FAQ)
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Q: Does Nebraska require construction contractors to register with any authority?
A: Yes. Independent construction contractors must register with the Nebraska Department of Labor before commencing work.
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Q: How does Nebraska define independent contractor status for construction work?
A: Contractors must operate independently, bear business risk, and satisfy state economic independence criteria to qualify.
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Q: Are there penalties for misclassifying employees as independent contractors in Nebraska?
A: Yes. Nebraska imposes fines and may restrict business operations for misclassification within the construction industry.
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Nebraska Construction Independent Contractor Agreement
This Nebraska Construction Independent Contractor Agreement (the “Agreement”) is made and effective as of [Date] by and between:
- [Hiring Party Name], residing at [Hiring Party Address], and whose business entity status is a [Hiring Party Business Entity Type, e.g., LLC, Sole Proprietorship, Corporation] with Nebraska Business Registration Number (if applicable): [Hiring Party Registration Number] (the “Hiring Party”), and
- [Contractor Name], residing at [Contractor Address], and whose business entity status is a [Contractor Business Entity Type, e.g., LLC, Sole Proprietorship, Corporation] with Nebraska Business Registration Number (if applicable): [Contractor Registration Number], holding Nebraska Contractor Registration Number [Contractor Nebraska Registration Number](the “Contractor”).
1. Scope of Work
- Option A: The Contractor shall perform the following construction services for the Hiring Party: [Detailed Description of Services, e.g., Framing, Electrical, HVAC, Roofing, Masonry, Carpentry, Plumbing, Concrete Work] at the project site located at [Project Site Address], as described in and according to the architectural/engineering drawings and specifications attached hereto as Exhibit A (the “Work”).
- Option B: The Contractor shall perform the Work as described in Exhibit A, which includes a detailed scope of inclusions and exclusions. Deliverables, phases, and milestones for completion are defined as follows: [Detailed description of deliverables, milestones and completion criteria, including code compliance and inspection checkpoints].
- Option C: The work will be subject to interim inspections by [Inspection Entity], who will ensure compliance with Nebraska state and local building codes, and Nebraska Department of Labor standards.
2. Work Location and Schedule
- Option A: The Work shall be performed at [Project Site Address]. Site entry protocols are as follows: [Site Entry Protocols]. Working hours shall be between [Start Time] and [End Time], Monday through Friday, unless otherwise agreed upon in writing.
- Option B: The Work shall commence on [Start Date] and shall be substantially completed by [Completion Date], subject to adjustments for delays caused by Force Majeure events.
- Option C: Material storage and staging expectations are: [Description of Material Storage Expectations].
3. Compensation
- Option A: Fixed Price: The Hiring Party shall pay the Contractor a fixed price of [Dollar Amount] for the satisfactory completion of the Work. This price includes all labor, materials, and equipment, unless otherwise specified.
- Option B: Time and Materials: The Hiring Party shall pay the Contractor at an hourly rate of [Dollar Amount] per hour plus the cost of materials. The estimated cost of materials is [Dollar Amount]. The total estimated cost is [Dollar Amount].
- Option C: Cost-Plus: The Hiring Party shall pay the Contractor the actual cost of the Work plus a markup of [Percentage]%. A line-item budget is attached hereto as Exhibit B. Nebraska sales/use/excise tax treatment shall be as follows: [Sales Tax Description]. The parties acknowledge and agree that the contractor may have lien rights on the property and structures where work is performed, and lien rights notices are required as per Neb. Rev. Stat. § 52-125 to § 52-159.
- Option D: Payment Schedule: Payments shall be made as follows: [Payment Schedule, e.g., progress payments, retainage, upon milestone/inspection]. All invoices must be submitted according to the following protocols: [Invoice Submission Protocols]. The Hiring Party shall make payments within [Number] days of receipt of a valid invoice, in compliance with Nebraska statutory payment deadlines for construction projects. Lien waivers are required with each payment.
4. Contractor Status
- Option A: The Contractor is an independent contractor and not an employee of the Hiring Party. The Hiring Party shall not be responsible for withholding any federal, state, or local income taxes, social security taxes, unemployment taxes, or worker’s compensation insurance from payments made to the Contractor. The Contractor is responsible for all such taxes and insurance. The Contractor shall be issued a Form 1099-NEC.
- Option B: The Contractor acknowledges their responsibility to comply with all applicable federal, state, and local tax registration and payment requirements, including remitting withholding tax to the Nebraska Department of Revenue, if applicable. The Contractor is aware of and agrees to comply with Neb. Rev. Stat. § 48-115 et seq. regarding workers' compensation insurance.
5. Licensing and Insurance
- Option A: The Contractor represents and warrants that they are duly licensed and registered to perform the Work in the State of Nebraska, holding Nebraska Contractor Registration Number [Contractor Nebraska Registration Number], and possess all required state and local licenses.
- Option B: The Contractor shall maintain the following insurance coverage: commercial general liability insurance with a minimum limit of [Dollar Amount] per occurrence, naming the Hiring Party as an additional insured; workers’ compensation insurance in compliance with Nebraska law; and commercial auto liability insurance with a minimum limit of [Dollar Amount], if applicable. Certificates of insurance shall be provided to the Hiring Party prior to the commencement of the Work. Proof of current and active coverage is required at all times.
- Option C: Contractor shall adhere to all OSHA/NE Dept. of Labor safety standards.
6. Materials and Equipment
- Option A: The Contractor shall be responsible for procuring and paying for all materials necessary to complete the Work, unless otherwise agreed upon in writing.
- Option B: The Contractor shall be responsible for providing all equipment necessary to complete the Work.
7. Subcontracting
- Option A: The Contractor shall not subcontract any portion of the Work without the prior written consent of the Hiring Party.
- Option B: Any subcontractors used by the Contractor must be duly licensed and registered in the State of Nebraska. The Contractor will maintain flow-down clause compliance.
8. Indemnification
- Option A: The Contractor shall indemnify, defend, and hold harmless the Hiring Party from and against any and all claims, losses, damages, liabilities, costs, and expenses (including attorney’s fees) arising out of or relating to the Contractor’s performance of the Work, except to the extent caused by the sole negligence of the Hiring Party. This indemnification shall be interpreted consistent with Nebraska law and will not extend to sole negligence of the indemnitee.
9. Warranty
- Option A: The Contractor warrants that the Work shall be performed in a good and workmanlike manner, free from defects in materials and workmanship for a period of [Number] year(s) from the date of substantial completion.
- Option B: The Contractor shall assign to the Hiring Party any manufacturer warranties for materials used in the Work.
10. Termination
- Option A: This Agreement may be terminated by either party upon [Number] days written notice to the other party for cause, including, but not limited to, breach of this Agreement.
- Option B: The Hiring Party may terminate this Agreement for convenience upon [Number] days written notice to the Contractor. In the event of termination for convenience, the Hiring Party shall pay the Contractor for all Work performed up to the date of termination, plus reasonable costs incurred by the Contractor as a result of the termination.
- Option C: Termination will follow the applicable Nebraska statutes for termination procedure if applicable.
11. Dispute Resolution
- Option A: Any dispute arising out of or relating to this Agreement shall be resolved through direct negotiation between the parties. If the parties are unable to resolve the dispute through negotiation, they shall attempt to resolve the dispute through mediation.
- Option B: If mediation is unsuccessful, the dispute shall be resolved by binding arbitration in [County Name] County, Nebraska, in accordance with the rules of the [Arbitration Organization, e.g., Nebraska Construction Industry Arbitration Board]. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.
- Option C: This Agreement shall be governed by and construed in accordance with the laws of the State of Nebraska. The exclusive venue for any legal action arising out of or relating to this Agreement shall be in the state or federal courts located in [County Name] County, Nebraska.
12. Compliance with Laws
- Option A: The Contractor shall comply with all applicable federal, state, and local laws, regulations, and ordinances, including, but not limited to, building codes, workplace safety laws, environmental laws, and anti-discrimination laws.
- Option B: The Contractor shall comply with all applicable Nebraska statutes related to construction projects, including those concerning lien rights (Neb. Rev. Stat. § 52-125 to § 52-159).
13. Confidentiality
- Option A: The Contractor shall maintain the confidentiality of any proprietary information provided by the Hiring Party, including, but not limited to, construction plans, specifications, and business information.
14. Force Majeure
- Option A: Neither party shall be liable for any delay or failure to perform its obligations under this Agreement to the extent that such delay or failure is caused by a Force Majeure event, including, but not limited to, acts of God, war, terrorism, fire, flood, strikes, or supply chain disruptions.
15. Lien Rights
- Option A: Contractor acknowledges that Nebraska construction lien laws (Neb. Rev. Stat. § 52-125 to § 52-159) apply to this project. The Contractor understands their obligations regarding preliminary notices and lien waivers. The Hiring Party will remit all payments within the required timeframes under state statute.
16. Final Inspection and Payment
- Option A: Upon completion of the Work, the Hiring Party shall conduct a final inspection. The Contractor shall promptly complete any punch-list items identified during the final inspection. Upon completion of all punch-list items, the Hiring Party shall issue a certificate of substantial completion and make final payment to the Contractor, including release of any retainage, in compliance with Nebraska construction project norms.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
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[Hiring Party Name]
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[Contractor Name]