New Jersey construction independent contractor agreement template

New Jersey Construction Independent Contractor Agreement

This Construction Independent Contractor Agreement (the “Agreement”) is made and entered into as of this [Date], by and between:

[Client Company Name], a [Client Company Type, e.g., LLC] with its principal place of business at [Client Business Address], hereinafter referred to as "Client,"

and

[Contractor Company Name or Individual Name], a [Contractor Company Type, e.g., Sole Proprietorship, LLC] with its principal place of business at [Contractor Business Address], hereinafter referred to as "Contractor."

Client's Phone: [Client Phone Number]

Client's Email: [Client Email Address]

Contractor's Phone: [Contractor Phone Number]

Contractor's Email: [Contractor Email Address]

Contractor's License Number(s) (if applicable in NJ): [Contractor License Number(s)]

Contractor's NJ Home Improvement Contractor Registration Number (if applicable): [Contractor NJ Home Improvement Contractor Registration Number]

WHEREAS, Client desires to engage Contractor to perform certain construction services; and

WHEREAS, Contractor desires to perform such services as an independent contractor;

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

1. Independent Contractor Status

Option A: Contractor is an independent contractor and not an employee, agent, partner, or joint venturer of Client. Client shall have no control over the manner in which Contractor performs the services, except as to the results of the work.

Option B: Contractor acknowledges they are an independent contractor under New Jersey law, specifically the ABC Test as it relates to NJ Unemployment Compensation Law and the Construction Industry Independent Contractor Act. Contractor certifies they: (A) are free from the control or direction over the performance of the services, both under the contract and in fact; (B) perform work that is either outside the usual course of the Client's business or is performed outside of the Client's places of business; and (C) are customarily engaged in an independently established trade, occupation, profession or business.

2. Scope of Work

Option A: Contractor shall perform the following construction services: [Detailed Description of Services, e.g., Framing, Electrical, Plumbing, HVAC, Finish Carpentry, Demolition]. This includes, but is not limited to, [List Specific Tasks], in accordance with the architectural plans and specifications dated [Date of Plans] and attached hereto as Exhibit A.

Option B: Contractor shall perform all work as described in the attached Exhibit A, which includes detailed specifications and drawings. Any deviation from Exhibit A must be approved in writing by Client.

Option C: Contractor shall provide labor and supervision to perform the following: [Detailed List of Services]. Client shall provide all materials.

3. Work Site Location

Option A: The work site is located at [Work Site Address].

Option B: The work site is located at [Work Site Address]. Contractor shall have access to the site during normal business hours, [Specify Hours], unless otherwise agreed upon. Contractor is responsible for securing all tools and equipment left on site overnight. Client will provide reasonable storage space for Contractor's materials.

Option C: Multiple work sites as directed by Client. Locations to be provided with reasonable notice.

4. Project Timeline and Deliverables

Option A: The project shall commence on [Start Date] and be completed by [Completion Date]. Key milestones include: [List Milestones and Dates].

Option B: Contractor shall adhere to the following schedule: [Detailed Schedule with Start Dates, Deadlines, Inspection Dates]. Any delays must be reported to Client immediately in writing.

Option C: Contractor will work [Number] hours per day, [Days of the Week], between the hours of [Start Time] and [End Time].

5. Materials, Equipment, and Labor

Option A: Contractor shall provide all materials, equipment, and labor necessary to complete the work. All materials shall be of good quality and meet industry standards.

Option B: Client shall provide all materials. Contractor shall provide all equipment and labor.

Option C: Client shall provide the following materials: [List of Materials]. Contractor shall provide all remaining materials and all equipment and labor. Contractor is responsible for the maintenance and repair of their own equipment. Contractor is responsible for ensuring the safety of all equipment and complying with all OSHA and New Jersey-specific regulations, including NJ PEOSH if applicable.

6. Insurance

Option A: Contractor shall maintain the following insurance coverage: General Liability insurance with a minimum coverage of [Dollar Amount] per occurrence; Commercial Auto insurance with a minimum coverage of [Dollar Amount] per occurrence; and Worker's Compensation insurance or proof of exemption from Worker's Compensation insurance under New Jersey law.

Option B: Contractor shall provide Client with certificates of insurance evidencing the required coverage prior to commencing work. Client shall be named as an additional insured on the General Liability policy.

Option C: If Contractor is exempt from Worker's Compensation insurance, Contractor warrants they are not an employee under NJ law and shall hold Client harmless from any liability arising from injury sustained by Contractor or Contractor's employees.

7. Licensing and Permits

Option A: Contractor is responsible for obtaining and maintaining all required licenses, registrations, and permits necessary to perform the work in New Jersey, including any applicable Home Improvement Contractor registration (N.J.A.C. 13:45A-16).

Option B: Client shall obtain and pay for the required building permits. Contractor shall comply with all applicable codes and regulations.

Option C: Contractor shall obtain all trade-specific permits (e.g., electrical, plumbing). Client shall obtain the primary building permit.

8. Payment Terms

Option A: Client shall pay Contractor a total of [Dollar Amount] for the completion of the work.

Option B: Client shall pay Contractor at a rate of [Dollar Amount] per [Unit, e.g., hour, square foot].

Option C: Client shall pay Contractor according to the following payment schedule: [Payment Schedule, e.g., 25% upon commencement, 25% upon completion of framing, 50% upon final completion]. Payments will be made within [Number] days of receipt of invoice.

Option D: Client shall retain [Percentage]% of each payment as retainage, to be paid upon final completion and acceptance of the work.

Option E: Late payments shall accrue interest at a rate of [Percentage]% per month, as allowed by the New Jersey Prompt Payment Act (N.J.S.A. 2A:30A-1). Contractor retains lien rights under the New Jersey Construction Lien Law. Upon final payment, Contractor shall provide a release of lien.

9. Taxes and Benefits

Option A: Contractor is solely responsible for the payment of all federal, state, and local taxes, including sales, use, and business taxes, arising from this Agreement. Client will issue a Form 1099 to Contractor as required by law.

Option B: Contractor is not entitled to any employee benefits from Client, including but not limited to health insurance, retirement benefits, or paid time off.

10. Change Orders

Option A: Any changes to the scope of work must be documented in a written change order signed by both parties. The change order shall include a description of the change, the adjusted price, and any changes to the project timeline.

Option B: Contractor shall notify Client immediately of any unforeseen site conditions or scope expansions. No additional work shall be performed without a signed change order.

11. Work Quality and Compliance

Option A: Contractor shall perform all work in a workmanlike manner and in compliance with all applicable building codes and regulations, including the NJ Uniform Construction Code.

Option B: Contractor warrants that all work will meet or exceed industry standards and be free from defects in workmanship and materials.

Option C: Client shall have the right to inspect the work at any time. Contractor shall correct any deficiencies identified by Client at Contractor's expense.

12. Documentation Requirements

Option A: Contractor shall maintain daily logs, time records, and records of material deliveries and use.

Option B: Contractor shall immediately report any accidents or incidents to Client and shall comply with all New Jersey construction workplace safety rules.

Option C: Client shall have the right to inspect and audit Contractor's records related to this Agreement.

13. Subcontracting and Assignment

Option A: Contractor shall not subcontract any portion of the work without the prior written consent of Client.

Option B: If subcontracting is permitted, Contractor shall ensure that all subcontractors are properly licensed and insured in New Jersey and provide proof of such to Client. Contractor shall remain fully liable for the performance of all subcontractors. Contractor must ensure all sub-contractors are also registered in NJ.

14. Confidentiality

Option A: Contractor shall not disclose any confidential information about Client or the project to any third party.

Option B: Contractor shall not use Client's intellectual property, drawings, or proprietary methods outside of this project.

15. Ownership of Work and Intellectual Property

Option A: Upon acceptance and final payment, all rights and title to the finished work shall transfer to Client.

Option B: Contractor retains ownership of any proprietary methods or tools not specifically assigned to Client.

16. Warranties

Option A: Contractor warrants the work for a period of [Number] year(s) from the date of completion.

Option B: Contractor shall promptly remedy any defects in workmanship or materials that arise during the warranty period. Contractor shall pass on to Client all manufacturer and supplier warranties for materials.

17. Indemnification

Option A: Contractor shall indemnify and hold harmless Client from any and all claims, damages, liabilities, costs, and expenses, including attorney's fees, arising out of or related to Contractor's work, except to the extent caused by Client's own negligence or willful misconduct.

Option B: Contractor shall indemnify Client from third-party claims, injuries, property damage, and regulatory violations arising from Contractor’s work.

18. Termination

Option A: Client may terminate this Agreement for cause if Contractor breaches any material term of this Agreement, including but not limited to default, delays, quality failures, or safety violations. Client shall provide written notice of termination and allow Contractor [Number] days to cure the breach.

Option B: Client may terminate this Agreement for convenience upon [Number] days written notice to Contractor.

Option C: Upon termination, Contractor shall be entitled to payment for all work completed to date, less any damages incurred by Client as a result of Contractor's breach. Contractor shall promptly demobilize and clean up the work site.

19. Dispute Resolution

Option A: Any disputes arising out of or related to this Agreement shall be resolved through negotiation and mediation.

Option B: If mediation is unsuccessful, the dispute shall be resolved through binding arbitration in accordance with the rules of the American Arbitration Association.

Option C: Any legal action arising out of or related to this Agreement shall be brought in the state or federal courts located in [County Name] County, New Jersey. This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey. Contractor waives the right to bring action in any other state.

20. Compliance with Laws

Option A: Contractor shall comply with all applicable federal, state, and local laws, including but not limited to anti-discrimination statutes, prevailing wage requirements on public projects (N.J.S.A. 34:11-56.25 et seq.), immigration/work authorization laws, and environmental and hazardous materials regulations.

Option B: Contractor certifies that they are not debarred from performing work on public contracts in New Jersey.

21. Health and Safety

Option A: Contractor shall comply with all applicable OSHA and PEOSH standards and shall provide all necessary personal protective equipment for its employees.

Option B: Contractor shall maintain a substance abuse policy and shall report any accidents or violations to Client immediately.

22. Force Majeure

Option A: Neither party shall be liable for any delay or failure to perform its obligations under this Agreement due to events beyond its reasonable control, including but not limited to acts of God, severe weather, government acts, material shortages, or other unforeseeable circumstances.

23. Notices

Option A: All notices required or permitted under this Agreement shall be in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States mail, certified or registered, postage prepaid, addressed to the party at the address set forth above.

24. Miscellaneous

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

Option B: This Agreement may be amended only by a written instrument signed by both parties.

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

Option D: 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. Electronic signatures shall be valid and binding.

25. Additional Project-Specific Requirements

Option A: [List any additional project-specific requirements, such as LEED certification requirements, local union participation or neutrality obligations, or neighborhood impact mitigation measures.]

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

____________________________

[Client Company Name]

By: ____________________________

[Client Name]

[Client Title]

____________________________

[Contractor Company Name or Individual Name]

By: ____________________________

[Contractor Name]

[Contractor Title]