Nevada construction service contract template

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How Nevada construction service contract Differ from Other States

  1. Nevada requires a written contract for any construction project exceeding $1,000, unlike some states with higher or no thresholds.

  2. Nevada law mandates that the contract must clearly disclose the contractor’s license number on the agreement.

  3. In Nevada, change orders must be in writing and signed by both parties to be valid, offering stricter requirements than many states.

Frequently Asked Questions (FAQ)

  • Q: Is a written contract required for all construction services in Nevada?

    A: Yes. Nevada law requires a written contract for construction services valued over $1,000, protecting both parties.

  • Q: Do I need to include the contractor’s license number in a Nevada contract?

    A: Yes. The contractor’s Nevada license number must be stated in the contract to comply with state regulations.

  • Q: Are oral changes to a Nevada construction contract enforceable?

    A: No. All contract changes in Nevada must be in writing and signed by both parties to be legally enforceable.

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Nevada Construction Service Contract

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

  • [Contractor Legal Name], a [Contractor Business Entity Type] with its principal place of business at [Contractor Address], holding Nevada State Contractors Board License Number [Contractor License Number] (hereinafter referred to as "Contractor"),
  • and
  • [Client Legal Name], residing at [Client Address] (hereinafter referred to as "Client").

WITNESSETH:

WHEREAS, Client desires to have certain construction services performed at the property located at [Property Address], Parcel Number [Parcel Number] (the "Property"); and

WHEREAS, Contractor is qualified and willing to perform such services;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

1. Project Scope

  • Option A: The Contractor shall perform the following construction services (the "Work") as described in Exhibit A, attached hereto and incorporated herein: [Detailed Description of Work]. This includes, but is not limited to, [List of specific tasks].
  • Option B: The Work shall be performed in accordance with the attached construction drawings and specifications, marked as Exhibit A and Exhibit B respectively, and any addenda issued prior to the execution of this Agreement. These documents are incorporated by reference.
    • These drawings/plans are dated [Date of Drawings] and were prepared by [Architect/Designer Name].
  • Option C: The Contractor shall provide all labor, materials, equipment, and supervision necessary to complete the Work as generally described below: [General Description of Work]. A detailed breakdown of specific tasks and materials is provided in Exhibit A.

2. Project Location

The Work shall be performed at the property located at: [Property Address], Parcel Number: [Parcel Number], in [City/County], Nevada.

3. Timeline

  • Option A: Commencement Date: The Work shall commence on or before [Start Date].
  • Option B: Substantial Completion Date: The Contractor shall achieve Substantial Completion of the Work on or before [Completion Date], subject to excusable delays as defined herein.
  • Option C: Milestones:
    • Milestone 1: [Description of Milestone] - Completion Date: [Date].
    • Milestone 2: [Description of Milestone] - Completion Date: [Date].
  • Option D: Permitted Work Hours: Work shall be performed during the hours of [Start Time] to [End Time], Monday through Friday, and [Start Time] to [End Time] on Saturdays, excluding Sundays and legal holidays, unless otherwise agreed upon in writing. This is subject to any local ordinances.
  • Option E: Substantial Completion Criteria: Substantial Completion shall be defined as the point when the Work is sufficiently complete in accordance with the Contract Documents so that the Client can occupy or utilize the Work for its intended purpose, as evidenced by a certificate of occupancy from [Local Building Authority Name] or similar approval, where applicable.

4. Contract Price and Payment

  • Option A: Total Contract Price: The total contract price for the Work shall be [Dollar Amount], inclusive of all labor, materials, equipment, and Contractor's overhead and profit.
  • Option B: Unit Pricing: Certain portions of the Work shall be compensated on a unit price basis, as detailed in Exhibit C. Unit prices are subject to adjustment based on actual quantities.
  • Option C: Payment Schedule:
    • Deposit: A deposit of [Dollar Amount] (not exceeding the maximum allowed by Nevada law) is due upon execution of this Agreement.
    • Progress Payments: Progress payments shall be made according to the following schedule:
      • [Percentage]% upon completion of [Milestone/Phase].
      • [Percentage]% upon completion of [Milestone/Phase].
      • Final Payment: The remaining balance shall be due upon Substantial Completion of the Work and Client's acceptance, subject to any deductions for incomplete or non-conforming work.
  • Option D: Change Orders: Any changes to the Work shall be documented in a written Change Order signed by both parties, specifying the scope of the change, the impact on the Contract Price, and the impact on the project schedule.
  • Option E: Invoicing and Lien Releases: The Contractor shall submit invoices to the Client [Frequency, e.g., weekly, bi-weekly, monthly]. Upon receipt of each payment, the Contractor shall provide the Client with a partial lien release for the amount paid, in accordance with Nevada Revised Statutes (NRS) 108. Upon final payment, the Contractor shall provide a final, unconditional lien release.

5. Permits and Approvals

  • Option A: Responsibility: The [Contractor/Client] shall be responsible for obtaining and paying for all necessary permits, zoning approvals, utility mark-outs (pursuant to Nevada law), and government or HOA approvals required for the Work.
  • Option B: Compliance: The [Contractor/Client] shall provide proof of compliance with all applicable permits and approvals prior to commencing the relevant portion of the Work.
  • Option C: List of Permits:
    • Building Permit: Responsibility: [Contractor/Client].
    • Electrical Permit: Responsibility: [Contractor/Client].
    • Plumbing Permit: Responsibility: [Contractor/Client].

6. Insurance

  • Option A: Contractor's Insurance: The Contractor shall maintain the following insurance coverage throughout the duration of the Work:
    • General Liability Insurance: With a minimum coverage of [Dollar Amount] per occurrence.
    • Workers' Compensation Insurance: As required by Nevada law.
    • Builder's Risk Insurance: Covering the full replacement cost of the Work.
  • Option B: Client's Insurance: The Client shall maintain adequate property insurance coverage on the Property.
  • Option C: Proof of Insurance: The Contractor shall provide the Client with certificates of insurance evidencing the required coverage prior to commencing the Work.

7. Licenses and Compliance

  • Option A: Contractor's Licenses: The Contractor represents and warrants that it holds all necessary Nevada state and local licenses required to perform the Work, including Nevada State Contractors Board License Number [Contractor License Number].
  • Option B: Subcontractor Licenses: All subcontractors engaged by the Contractor shall also hold all necessary licenses and permits required to perform their respective portions of the Work.
  • Option C: Labor Laws: The Contractor shall comply with all applicable Nevada labor laws, including prevailing wage requirements for public works projects (NRS 338), minimum wage compliance, and OSHA safety requirements.

8. Subcontractors

  • Option A: Disclosure: The Contractor shall disclose the names of all subcontractors it intends to use on the project to the Client prior to commencing the Work.
  • Option B: Approval: The Client shall have the right to approve or disapprove the use of any proposed subcontractor. Approval shall not be unreasonably withheld.
  • Option C: Subcontractor Agreements: All subcontractors shall be bound by the terms and conditions of this Agreement to the extent applicable to their scope of work.
  • Option D: Independent Contractor Status: The Contractor shall ensure that all subcontractors are properly classified as either employees or independent contractors in accordance with Nevada law for wage/hour and liability purposes.

9. Site Conditions and Access

  • Option A: Site Access: The Client shall provide the Contractor with reasonable access to the Property for the purpose of performing the Work.
  • Option B: Staging and Storage: The Contractor shall be allowed to use reasonable portions of the Property for staging materials and equipment.
  • Option C: Site Security: The [Contractor/Client] shall be responsible for maintaining the security of the site and protecting the Work from theft or damage.
  • Option D: Hazard Remediation: If any hazardous materials are discovered on the Property, the Contractor shall immediately notify the Client and suspend Work until the materials are properly remediated in accordance with applicable environmental regulations. The cost of remediation shall be addressed in a separate Change Order.

10. Warranty

  • Option A: Workmanship Warranty: The Contractor warrants that all workmanship will be free from defects for a period of [Number] year(s) from the date of Substantial Completion, consistent with Nevada law (including NRS 624.623).
  • Option B: Materials Warranty: The Contractor shall pass through to the Client any manufacturer's warranties on materials used in the Work.
  • Option C: Warranty Claims: To make a warranty claim, the Client must notify the Contractor in writing within the warranty period, describing the nature of the defect.

11. Inspection and Acceptance

  • Option A: Inspection: The Client shall have the right to inspect the Work at reasonable times.
  • Option B: Punch List: Upon Substantial Completion, the Contractor and Client shall jointly conduct a final inspection and create a punch list of any remaining items to be completed or corrected.
  • Option C: Acceptance: The Client's acceptance of the Work shall be deemed to occur upon completion of all punch list items and written confirmation of acceptance.

12. Unforeseen Conditions

If unforeseen site conditions, such as latent defects or hazardous materials, are encountered during the Work, the Contractor shall immediately notify the Client and the parties shall negotiate a Change Order to address the necessary changes to the scope of Work, Contract Price, and project schedule.

13. Standards and Codes

All Work shall be performed in accordance with the Nevada Uniform Building Code (or other applicable local codes) and all other applicable Nevada and local building codes and ordinances. Any code-required changes during construction shall be addressed in a written Change Order.

14. Indemnification

To the fullest extent permitted by law, the Contractor shall indemnify, defend, and hold harmless the Client from and against any and all claims, damages, losses, and expenses arising out of or resulting from the Contractor's 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 subcontractors. This provision shall not be construed to require indemnification for the sole negligence of the Client, as prohibited by NRS 339.005.

15. Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Agreement if such delay or failure is due to a Force Majeure event, including but not limited to acts of God, fire, earthquake, flood, extreme weather (including heat and dust storms), supply chain disruptions, governmental action, or labor disputes. The affected party shall promptly notify the other party of the Force Majeure event and shall use commercially reasonable efforts to mitigate the effects of the event.

16. Suspension and Termination

  • Option A: Suspension: The Client may suspend the Work for any reason upon written notice to the Contractor. The Contractor shall be entitled to an equitable adjustment to the Contract Price and project schedule to compensate for the costs and delays resulting from the suspension.
  • Option B: Termination by Client: The Client may terminate this Agreement for cause if the Contractor materially breaches this Agreement, including but not limited to non-performance, failure to comply with applicable laws or regulations, or insolvency. The Client shall provide the Contractor with written notice of the default and an opportunity to cure the default within [Number] days.
  • Option C: Termination by Contractor: The Contractor may terminate this Agreement for cause if the Client materially breaches this Agreement, including but not limited to non-payment. The Contractor shall provide the Client with written notice of the default and an opportunity to cure the default within [Number] days.
  • Option D: Upon termination, the Contractor shall be entitled to payment for all Work performed and materials furnished to the date of termination, plus reasonable costs incurred as a result of the termination. The Contractor shall provide the Client with all necessary lien releases.

17. Mandatory Notices

The Contractor shall provide the Client with all mandatory notices required by Nevada law, including the "Notice to Owner" regarding lien rights (NRS 624), the Contractor's right to record a mechanics' lien, and any required consumer protections for residential jobs.

18. Dispute Resolution

Any disputes arising out of or relating to this Agreement shall be resolved through negotiation, mediation, or, if those methods are unsuccessful, binding arbitration in [County Name] County, Nevada, in accordance with the rules of the American Arbitration Association. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada.

19. Client Responsibilities

The Client shall be responsible for timely selection of materials, providing access to the Property, making necessary utility arrangements, and complying with any applicable HOA rules.

20. Change Orders

All changes to the Work shall be documented in a written Change Order signed by both parties, specifying the scope of the change, the impact on the Contract Price, and the impact on the project schedule, as required by Nevada law.

21. Confidentiality

Both parties agree to hold confidential any proprietary information or pricing disclosed during the course of this Agreement.

22. Ownership of Documents

The Contractor retains all copyrights to the construction documents and specifications. The Client shall have the right to use the documents for the purpose of constructing the Work, but shall not reproduce or reuse them for any other purpose without the Contractor's written consent.

23. Deliverables

Upon completion of the Work, the Contractor shall provide the Client with the following deliverables:

  • Record drawings ("as-built" documents).
  • Operation and maintenance manuals for any installed equipment.
  • Warranty certificates for materials and equipment.

24. Required Legal Disclosures

The following legal disclosures, warnings, and notices are attached to this Agreement, as mandated by Nevada law for consumer protection: [List of Attached Disclosures]. (e.g., Three-day cooling-off period disclosure, if applicable).

25. Taxes and Fees

The Contract Price includes Nevada sales/use taxes.

26. Bond Requirements

[If applicable:] The Contractor shall provide a payment and performance bond in the amount of [Dollar Amount], issued by a surety company licensed to do business in Nevada. The bond shall be conditioned on the faithful performance of the Work and the payment of all claims for labor and materials.

27. Assignment

Neither party may assign this Agreement without the written consent of the other party. Any assignment shall be subject to compliance with all applicable Nevada subcontractor licensing laws.

28. Notices

All notices 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.

29. Limitations of Liability

[Specify any limitations of liability in compliance with Nevada law. Example: "In no event shall the Contractor be liable for consequential, incidental, indirect, or punitive damages."]

30. Mechanics' Liens

The Contractor shall comply with all applicable Nevada laws regarding mechanics' liens, including providing the Client with partial and final lien releases upon payment.

31. Miscellaneous

  • Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written.
  • Amendment: This Agreement may be amended only by a written instrument signed by both parties.
  • Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
  • Waiver: No waiver of any provision of this Agreement shall be effective unless in writing and signed by the waiving party.
  • Counterparts: 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.

32. Acknowledgment

The Client acknowledges that they have received a copy of this Agreement, the attached notices, and educational materials regarding lien rights as mandated by Nevada law.

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


____________________________

[Contractor Legal Name]

By: [Contractor Signature]

Name: [Contractor Printed Name]

Title: [Contractor Title]


____________________________

[Client Legal Name]

[Client Signature]

Name: [Client Printed Name]

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