Nebraska construction service contract template

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How Nebraska construction service contract Differ from Other States

  1. Nebraska requires contractors to be registered with the Nebraska Department of Labor, a requirement not universally enforced in every state.

  2. Nebraska law mandates prompt payment to contractors and subcontractors within specific timeframes, ensuring timely compensation.

  3. Mechanic’s lien procedures in Nebraska have unique filing deadlines and notice requirements compared to other states.

Frequently Asked Questions (FAQ)

  • Q: Is contractor registration required in Nebraska?

    A: Yes, contractors must register with the Nebraska Department of Labor before performing construction services in the state.

  • Q: Are mechanic’s liens allowed under Nebraska law?

    A: Yes, contractors and subcontractors can file mechanic’s liens in Nebraska if timely filed and proper notice is given.

  • Q: What payment terms should be included in a Nebraska construction service contract?

    A: Nebraska law emphasizes prompt payment. Clearly define payment schedules, due dates, and procedures for dispute resolution.

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Nebraska Construction Service Contract

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

Contractor: [Contractor Company Name], a [State of Incorporation] corporation, with a principal place of business at [Contractor Address], and Nebraska Contractor License Number [License Number], Nebraska Department of Labor Registration Number (if applicable) [Registration Number], hereinafter referred to as "Contractor,"

and

Owner: [Owner Name], residing at [Owner Address], hereinafter referred to as "Owner."

1. Project Description

The Contractor agrees to perform certain construction services (the "Work") for the Owner as described below:

  • Option A: The Work consists of [Detailed Description of Work], as further detailed in the plans and specifications attached hereto as Exhibit A.
  • Option B: The Work consists of the construction of a [Type of Project, e.g., single-family dwelling] at the property located at [Property Address], according to the plans and specifications prepared by [Architect/Engineer Name], dated [Date], attached hereto as Exhibit A.

Included Services:

  • [List of Included Services, e.g., Demolition, Framing, Plumbing, Electrical, HVAC, Roofing, Siding, Finish Carpentry, Painting]

Excluded Services:

  • [List of Excluded Services, e.g., Landscaping, Irrigation, Appliance Installation, Furniture Moving]

2. Contract Price and Payment Terms

The Owner agrees to pay the Contractor for the satisfactory performance of the Work, subject to additions and deductions as provided in this Agreement, the sum of [Dollar Amount] (the "Contract Price").

  • Option A: Lump Sum. The Contract Price is a fixed price for the completion of all Work.
  • Option B: Cost Plus. The Contract Price is based on the cost of the Work plus a fee of [Percentage or Dollar Amount]. The Contractor will provide the Owner with detailed invoices for all costs incurred.
  • Option C: Unit Price. The Contract Price is based on the unit prices set forth in Exhibit B, attached hereto.

Payment Schedule: Payments shall be made according to the following schedule:

  • [Detailed Payment Schedule, e.g., 10% upon signing, 20% upon completion of foundation, etc.]

Retainage:

  • [Percentage]% retainage will be withheld from each payment until substantial completion of the Work, in accordance with Nebraska statutes.

Invoicing: The Contractor shall submit invoices to the Owner no more frequently than [Frequency, e.g., monthly].

Payment Timeframe: The Owner shall pay the Contractor within [Number] days of receipt of a correct invoice.

Late Payment: Late payments shall accrue interest at the rate of [Percentage]% per month, or the maximum rate permitted by Nebraska law, whichever is less.

3. Project Schedule

The Contractor shall commence the Work on or before [Start Date], and shall substantially complete the Work on or before [Completion Date], subject to excusable delays as defined herein.

Milestones:

  • [Milestone 1]: [Date]
  • [Milestone 2]: [Date]
  • [Milestone 3]: [Date]

Weather Delays: In the event of delays caused by inclement weather conditions customary to Nebraska, the Completion Date shall be extended by the number of days of such delay.

Change Orders: All changes to the Work must be documented in a written change order signed by both parties.

4. Site Conditions and Access

The Work shall be performed at the property located at [Property Address].

The Owner shall provide the Contractor with reasonable access to the site.

Utilities:

  • Option A: The Owner shall be responsible for maintaining all utilities at the site during the Work.
  • Option B: The Contractor shall be responsible for arranging and paying for temporary utilities during the Work.

5. Materials and Equipment

All materials and equipment used in the Work shall be of good quality and new unless otherwise specified.

[Specific Materials and Brands to Be Used, If Any]

The Contractor reserves the right to substitute materials of equal or greater quality if the specified materials are unavailable.

6. Permits and Approvals

The Contractor shall be responsible for obtaining all necessary permits and approvals required for the Work, including submitting a notice of commencement to the State of Nebraska, if applicable.

  • Option A: The cost of permits and approvals shall be included in the Contract Price.
  • Option B: The Owner shall be responsible for paying the cost of permits and approvals.

7. Insurance

The Contractor shall maintain the following insurance coverage:

  • General Liability Insurance: [Dollar Amount] per occurrence.
  • Workers' Compensation Insurance: As required by Nebraska law, including coverage for subcontractors.
  • Builder's Risk Insurance: [Dollar Amount].
  • Vehicle Insurance: [Dollar Amount]

The Owner shall be named as an additional insured on the Contractor's General Liability Insurance policy.

8. Lien Rights

The Contractor shall have the right to file a construction lien against the property in accordance with the Nebraska Construction Lien Act.

The Contractor shall provide the Owner with a Notice of Right to Lien.

The Owner shall be entitled to receive lien waivers from the Contractor and all subcontractors and suppliers prior to making final payment.

9. Change Orders

Any changes to the Work must be documented in a written change order signed by both parties.

The change order shall include a detailed description of the change, the cost of the change, and the impact on the Project Schedule.

10. Warranty

The Contractor warrants that the Work will be performed in a good and workmanlike manner.

The Contractor provides a warranty of [Number] year(s) from the date of substantial completion against defects in workmanship and materials.

This warranty does not cover damage caused by normal wear and tear, misuse, or acts of God.

11. Default and Termination

Either party may terminate this Agreement for cause upon written notice to the other party.

Causes for termination include, but are not limited to, material breach of this Agreement, abandonment of the Work, or insolvency.

12. Dispute Resolution

Any disputes arising out of or relating to this Agreement shall be resolved through negotiation, mediation, or arbitration in [County Name] County, Nebraska, prior to resorting to litigation.

The laws of the State of Nebraska shall govern this Agreement.

13. Indemnification

To the fullest extent permitted by law, the Contractor shall indemnify and hold harmless the Owner from and against any and all claims, damages, losses, and expenses, including attorneys' fees, arising out of or resulting from the performance of the Work, provided that such claim, damage, loss, or expense is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself), but only to the extent caused by the negligent acts or omissions of the Contractor, its employees, or its subcontractors.

14. Notices

All notices required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally, sent by certified mail, return receipt requested, or sent by reputable overnight courier service to the addresses set forth above.

15. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

16. Severability

If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

17. Governing Law and Venue

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

18. Signatures

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

____________________________

[Contractor Name], Contractor

____________________________

[Owner Name], Owner

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