New Hampshire construction independent contractor agreement template
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How New Hampshire construction independent contractor agreement Differ from Other States
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New Hampshire law uses a specific seven-factor test to determine independent contractor status, which is more detailed than in many other states.
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Construction contracts in New Hampshire must explicitly address compliance with state workers' compensation laws for independent contractors.
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New Hampshire requires clearer delineation of control and direction in the agreement to satisfy state-level misclassification standards.
Frequently Asked Questions (FAQ)
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Q: Is a written contract required for construction independent contractors in New Hampshire?
A: While not legally mandated, a detailed written contract is highly recommended to clarify roles and reduce misclassification risks.
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Q: How does New Hampshire determine if a worker is an independent contractor?
A: New Hampshire uses a seven-factor legal test, primarily focusing on the degree of control, independence, and business integration.
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Q: Do independent contractors in construction need workers’ compensation coverage in New Hampshire?
A: Yes, if they have employees, they must carry coverage. Sole proprietors may be exempt, but proper contractual language is required.
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New Hampshire Construction Independent Contractor Agreement
This New Hampshire Construction Independent Contractor Agreement (the "Agreement") is made and entered into as of this [Date] by and between:
- [Client Legal Name], residing at [Client Address], hereinafter referred to as "Client,"
- and
- [Contractor Legal Name], residing at [Contractor Address], or if a business entity, with its principal place of business at [Contractor Business Address], hereinafter referred to as "Contractor."
1. Scope of Services
- Option A: General Description: The Contractor shall perform the following construction services for the Client: [Detailed description of services, including phases of construction, e.g., site preparation, foundation, framing, etc.].
- Option B: Project Location: The services shall be performed at the following location: [Project Address].
- Option C: Deliverables: Specific deliverables include: [List of deliverables, e.g., completed framing, installed plumbing fixtures, etc.].
- Option D: Timelines and Milestones: The project shall adhere to the following timelines and milestones: [Detailed schedule with specific completion dates for each phase].
2. Compliance with Laws and Regulations
- Option A: Building Codes: The Contractor shall ensure all work complies with current New Hampshire building codes and all applicable local ordinances.
- Option B: Permits:
- The [Client/Contractor] shall be responsible for obtaining and paying for all necessary construction and zoning permits.
- The [Client/Contractor] shall provide evidence of all required permits to the other party.
- Option C: Inspections: The Contractor shall schedule and coordinate all necessary inspections required by the Town/City of [Town/City Name] and the State of New Hampshire.
3. Compensation
- Option A: Payment Model:
- Lump Sum: The Client shall pay the Contractor a lump sum of [Dollar Amount] for the completion of the services.
- Unit Price: The Client shall pay the Contractor based on the following unit prices: [List of unit prices for specific tasks].
- Cost-Plus: The Client shall reimburse the Contractor for all costs incurred plus a [Percentage]% markup.
- Time and Materials: The Client shall pay the Contractor at an hourly rate of [Dollar Amount] per hour plus reimbursement for materials.
- Option B: Billing Milestones: The Contractor shall submit invoices according to the following milestones: [Description of billing milestones, e.g., upon completion of framing, upon completion of plumbing].
- Option C: Retainage: The Client shall retain [Percentage]% of each payment until final completion and acceptance of the work.
- Option D: Payment Due Date: Payments are due within [Number] days of receipt of invoice.
- Option E: Late Payment Interest: Late payments shall accrue interest at a rate of [Percentage]% per month.
4. Materials, Tools, and Equipment
- Option A: Provision of Materials:
- The Client shall provide all materials.
- The Contractor shall provide all materials.
- Option B: Provision of Tools and Equipment: The Contractor shall provide all tools and equipment necessary to perform the services.
- Option C: Storage and Security: The Contractor is responsible for the safe storage and security of all materials, tools, and equipment on site.
5. Independent Contractor Status
- Option A: Acknowledgment: The parties acknowledge that the Contractor is an independent contractor and not an employee of the Client.
- Option B: Taxes: The Contractor is responsible for paying all self-employment taxes and other applicable taxes.
- Option C: Business Registration: The Contractor represents that they are properly registered to conduct business in the State of New Hampshire, if required (e.g., through the Secretary of State).
6. Insurance
- Option A: General Liability: The Contractor shall maintain general liability insurance with a minimum coverage of [Dollar Amount].
- Option B: Workers' Compensation: If required by New Hampshire law, the Contractor shall maintain workers' compensation insurance.
- Option C: Auto Insurance: The Contractor shall maintain auto insurance with minimum coverage of [Dollar Amount].
- Option D: Proof of Insurance: The Contractor shall provide the Client with a certificate of insurance evidencing the required coverage.
7. Site Access and Safety
- Option A: Work Hours: The Contractor shall adhere to the following work hours: [Specify work hours].
- Option B: Site Access: The Contractor shall have reasonable access to the project site to perform the services.
- Option C: Safety: The Contractor shall maintain a safe, clean, and OSHA-compliant workplace.
8. Ownership and Liens
- Option A: Ownership of Work Product: All work product and improvements shall become the property of the Client upon completion and payment.
- Option B: Mechanic's Liens: The Contractor retains the right to file a mechanic's lien in accordance with New Hampshire RSA 447. The contractor agrees to provide lien waivers as payments are received.
9. Inspection and Acceptance
- Option A: Right to Inspect: The Client shall have the right to inspect the work at any time.
- Option B: Correction of Defects: The Contractor shall correct any defective or nonconforming work at their own expense.
- Option C: Acceptance: The Client's acceptance of the work shall be in writing.
10. Subcontracting
- Option A: Approval Required: The Contractor shall not subcontract any portion of the services without the prior written approval of the Client.
- Option B: Subcontractor Compliance: The Contractor shall ensure that all subcontractors are properly licensed and insured.
11. Change Orders
- Option A: Written Documentation: Any changes to the scope of services, timelines, or compensation must be documented in a written change order signed by both parties.
- Option B: Authorization: No work shall commence on any change order until it has been authorized by the Client.
12. Dispute Resolution
- Option A: Negotiation: The parties shall first attempt to resolve any disputes through good-faith negotiation.
- Option B: Mediation: If negotiation fails, the parties agree to submit the dispute to mediation in [City, New Hampshire].
- Option C: Arbitration: If mediation fails, the parties agree to submit the dispute to binding arbitration in [City, New Hampshire] in accordance with the rules of the American Arbitration Association.
- Option D: Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of New Hampshire.
13. Termination
- Option A: Termination for Cause: The Client may terminate this Agreement for cause if the Contractor breaches any material term of this Agreement.
- Option B: Termination for Convenience: The Client may terminate this Agreement for convenience upon [Number] days' written notice to the Contractor.
- Option C: Contractor Default: The Client has the right to terminate this agreement if the contractor is in default, including but not limited to failure to provide services as stated in this agreement.
14. Warranties
- Option A: Workmanship: The Contractor warrants that all work shall be performed in a workmanlike manner and free from defects for a period of [Number] year(s) from the date of completion.
- Option B: Materials: The Contractor warrants that all materials used shall be of good quality and free from defects.
15. Indemnification
- Option A: Contractor Indemnification: The Contractor shall indemnify and hold harmless the Client from and against any and all claims, damages, losses, and expenses arising out of or relating to the Contractor's performance of the services. This indemnification shall be interpreted and enforced in accordance with New Hampshire law.
16. Confidentiality
- Option A: Non-Disclosure: The Contractor shall keep confidential all client information, project details, and proprietary plans/designs.
17. Force Majeure
- Option A: Definition: Neither party shall be liable for any delay or failure to perform its obligations under this Agreement due to causes beyond its reasonable control, including but not limited to acts of God, war, strikes, or government regulations.
18. Compliance with Laws
- Option A: All Applicable Laws: The Contractor shall comply with all applicable New Hampshire labor, safety, environmental, and anti-discrimination laws.
19. Representations and Warranties
- Option A: Authority: Each party represents and warrants that it has the authority to enter into this Agreement.
- Option B: Licensing: The Contractor represents and warrants that it is properly licensed to perform the services in the State of New Hampshire, if required. Specifically [List any required licenses, e.g., electrician, plumber].
20. Required Documentation
- Option A: Lien Waivers: The Contractor shall provide lien waivers upon receipt of payment.
- Option B: Progress Reports: The Contractor shall provide regular progress reports to the Client.
- Option C: Permits: The Contractor shall provide copies of all required permits and approvals.
21. Integration, Amendment, and Severability
- Option A: Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written.
- Option B: Amendment: This Agreement may be amended only by a written instrument signed by both parties.
- Option C: Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
22. Local Requirements
- Option A: Town/City Specific Regulations: The Contractor is responsible for complying with all town/city-specific permitting, utility company coordination, and stormwater/environmental compliance obligations for the Town/City of [Town/City Name].
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
____________________________
[Client Printed Name]
____________________________
[Client Signature]
____________________________
[Contractor Printed Name]
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[Contractor Signature]