New Jersey construction service contract template

New Jersey Construction Service Contract

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

• Contractor: [Contractor Legal Name], located at [Contractor Address], with New Jersey Contractor Registration Number [Contractor Registration Number] and phone number [Contractor Phone Number], hereinafter referred to as "Contractor,"
  • Subcontractor(s) (if applicable): [Subcontractor Legal Name], located at [Subcontractor Address], with New Jersey Contractor Registration Number [Subcontractor Registration Number]. (Attach list if multiple subcontractors)
• Client/Property Owner: [Client Legal Name], residing at [Client Address], phone number [Client Phone Number], hereinafter referred to as "Owner."

1. Project Description

The Contractor agrees to perform certain construction services (the “Work”) for the Owner on the property located at [Property Address], also identified as Block [Block Number], Lot [Lot Number] on the official tax map of [Municipality Name], New Jersey.

• Option A: The Work shall be performed in accordance with the attached plans and specifications, labeled Exhibit A.
• Option B: The Work shall consist of the following general description: [Detailed Description of Work].

2. Scope of Work

The Work includes, but is not limited to, the following:

• Demolition:
  • Option A: Included
  • Option B: Excluded
• Site Preparation:
  • Option A: Included
  • Option B: Excluded
• Materials:
  • Option A: Included
  • Option B: Excluded
• Labor:
  • Option A: Included
  • Option B: Excluded
• Equipment Rental:
  • Option A: Included
  • Option B: Excluded
• Disposal:
  • Option A: Included
  • Option B: Excluded
• Project Management:
  • Option A: Included
  • Option B: Excluded

• Included Work: [Detailed List of Included Work]
• Excluded Work: [Detailed List of Excluded Work]

All Work shall comply with the New Jersey Uniform Construction Code and all other applicable building codes and standards. All required permits are listed in Exhibit B.

3. Permits and Compliance

• The Contractor is responsible for obtaining the following permits: [List of Permits].
  • Option A: The Contractor shall be responsible for all fees associated with obtaining the necessary permits.
  • Option B: The Owner shall be responsible for all fees associated with obtaining the necessary permits.
• The Contractor shall comply with all applicable New Jersey environmental regulations, including but not limited to stormwater management, asbestos abatement (if applicable), and lead paint regulations (if applicable).

4. Pre-Construction

• Prior to commencement of Work, the Contractor shall:
  • Contact New Jersey One Call for utility mark-out.
  • Obtain all necessary permits.
  • Conduct a pre-existing condition survey of the property.

5. Work Schedule

The Work shall commence on [Start Date] and shall be substantially completed by [Substantial Completion Date]. Final completion shall be achieved by [Final Completion Date].

• The project will be completed in phases as described in Exhibit C.
• Milestone Dates: [List of Milestone Dates].

Substantial completion shall mean the Work is sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or utilize the Work for its intended purpose, and a Certificate of Occupancy is issued if required by NJ law. Final Completion shall mean the Work is completed, a final lien waiver is issued, and all punch list items have been completed to the Owner's satisfaction.

6. Working Conditions

• Working days/hours shall be [Days of the Week], from [Start Time] to [End Time].
• In the event of inclement weather, the work schedule shall be adjusted accordingly.
• The Contractor shall maintain a safe work site in compliance with all applicable OSHA and New Jersey worker safety standards. The Contractor is responsible for providing all necessary PPE and site security.

7. Contract Price

The total contract price for the Work is [Dollar Amount].

• Option A: Fixed Price.
• Option B: Guaranteed Maximum Price (GMP).
• Option C: Cost-Plus Fee, with a fee of [Percentage]% of the actual cost of the Work.

The Contract Price includes the following:

• Labor: [Dollar Amount]
• Materials: [Dollar Amount]
• Profit: [Dollar Amount]
• Overhead: [Dollar Amount]
• New Jersey Sales/Use Taxes: [Dollar Amount]
• Allowance (if applicable): [Dollar Amount] for [Description of Allowance]
• Contingency (if applicable): [Dollar Amount]

8. Payment Schedule

• A deposit of [Dollar Amount] shall be paid upon execution of this Agreement.
• Progress payments shall be made according to the following schedule: [Detailed Payment Schedule]. Each progress payment shall be supported by an invoice detailing the Work completed.
• Retainage: [Percentage]% of each progress payment shall be withheld as retainage, in accordance with the New Jersey Prompt Payment Act.
• Final payment, including release of retainage, shall be due upon final acceptance of the Work and receipt of unconditional lien waivers from all subcontractors and suppliers.

9. Change Orders

Any changes to the Scope of Work must be documented in a written Change Order signed by both parties. Each Change Order shall include a detailed description of the change, its impact on the Contract Price, and its impact on the Work Schedule.

10. Insurance and Licensing

• The Contractor shall maintain the following insurance coverage:
  • General Liability Insurance: [Dollar Amount]
  • Workers' Compensation Insurance: As required by New Jersey law.
  • Builder’s Risk Insurance: [Dollar Amount] (if applicable)
• The Contractor shall provide the Owner with certificates of insurance evidencing the required coverage prior to commencement of Work.
• The Contractor represents that it is duly licensed and registered as a contractor in the State of New Jersey.

11. Subcontractors

The Contractor shall obtain the Owner’s written approval prior to engaging any subcontractors. The Contractor shall be responsible for the work of its subcontractors. The Contractor shall ensure that all subcontractors are properly licensed and insured and comply with the New Jersey Home Improvement Contractor Act, if applicable.

12. Materials

All materials used in the Work shall be of good quality and suitable for their intended purpose.

• Option A: The Contractor shall use the following specified brands and grades of materials: [List of Specified Materials].
• Option B: The Contractor may substitute materials of equal or better quality with the Owner's written approval.
• Preference shall be given to locally sourced materials where feasible.

13. Site Conditions

• The Owner shall provide the Contractor with reasonable access to the property.
• The Contractor shall be responsible for providing temporary utilities and facilities as necessary for the Work.
• The Contractor shall be responsible for proper waste disposal in compliance with all applicable regulations.
• The Contractor shall take reasonable precautions to protect existing structures and landscaping.

14. Project Supervision and Acceptance

The Contractor shall provide competent supervision of the Work. The Owner shall have the right to inspect the Work at reasonable times. Upon completion of the Work, the Owner shall conduct a final inspection and prepare a punch list of any remaining items. The Work shall be deemed accepted upon completion of all punch list items and issuance of a Certificate of Occupancy (if required).

15. Warranty

The Contractor warrants that the Work will be performed in a workmanlike manner and free from defects for a period of [Number] year(s) from the date of substantial completion. This warranty includes [Specify Coverage].

• Option A: The warranty shall be in accordance with New Jersey’s implied warranties for new construction and home improvement.
• Option B: The Contractor shall provide a separate written warranty detailing the scope and limitations of the warranty coverage.

16. Delays and Extensions

The Contractor shall be entitled to an extension of time for delays caused by:

• Inclement weather.
• Force majeure.
• Owner-caused delays.

The Contractor shall provide written notice to the Owner within [Number] days of any delay and shall provide documentation supporting the request for an extension of time.

17. Claims and Liens

In the event of a dispute, the parties shall first attempt to resolve the dispute through good faith negotiation. If negotiation is unsuccessful, either party may pursue mediation or arbitration. The Contractor shall have the right to file a construction lien against the property in accordance with the New Jersey Construction Lien Law.

18. Termination

• For Cause: Either party may terminate this Agreement for cause upon written notice if the other party materially breaches this Agreement and fails to cure such breach within [Number] days of receiving notice.
• For Convenience: The Owner may terminate this Agreement for convenience upon written notice to the Contractor. In such event, the Owner shall pay the Contractor for all Work performed and materials purchased up to the date of termination, plus reasonable profit and overhead.

19. Dispute Resolution

Any dispute arising out of or relating to this Agreement shall be resolved through:

• Option A: Negotiation.
• Option B: Mediation, with venue in [County Name] County, New Jersey.
• Option C: Binding Arbitration, in accordance with the rules of the American Arbitration Association, with venue in [County Name] County, New Jersey.

20. Compliance with Laws

The Contractor shall comply with all applicable federal, state, and local laws and regulations, including but not limited to the New Jersey Uniform Construction Code, the New Jersey Consumer Fraud Act, and all applicable labor and employment laws.

21. Indemnification

To the fullest extent permitted by law, the Contractor shall indemnify and hold harmless the Owner 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.

22. Ownership of Documents

All plans, specifications, and other documents prepared by the Contractor in connection with the Work shall be the property of the Contractor. The Owner shall have the right to use such documents for the purpose of completing the Work.

23. Hazardous Materials

If hazardous materials are encountered during the Work, the Contractor shall immediately stop Work and notify the Owner. The Contractor shall be responsible for complying with all applicable regulations regarding the handling and disposal of hazardous materials.

24. Site Clean-Up

Upon completion of the Work, the Contractor shall remove all debris and equipment from the property and restore the property to its original condition.

25. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral.

26. Amendments

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

27. Severability

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

28. Notices

All notices under this Agreement shall be in writing and shall be delivered by certified mail, return receipt requested, to the following addresses:

• To Contractor: [Contractor Address]
• To Owner: [Client Address]

29. Consumer Fraud Act Disclosures

The Owner acknowledges receipt of the following disclosures required by the New Jersey Consumer Fraud Act: [List of Required Disclosures].

30. Cancellation Rights

The Owner may have the right to cancel this Agreement within [Number] business days of signing, as provided by the New Jersey Consumer Fraud Act or Home Improvement Practices Regulations. See attached notice of cancellation rights.

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

____________________________
[Contractor Legal Name]

____________________________
[Client Legal Name]