New York construction service contract template

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How New York construction service contract Differ from Other States

  1. New York law requires contractors to disclose specific consumer protection notices and estimated start and completion dates in residential contracts.

  2. In New York, retainage, liens, and payment timelines are regulated distinctly, with strict prompt payment statutes and mandatory lien waivers.

  3. New York mandates certain insurance coverages, such as Workers’ Compensation and Disability Benefits, which may differ from requirements in other states.

Frequently Asked Questions (FAQ)

  • Q: Is it mandatory to have a written construction contract in New York?

    A: For residential projects over $500, New York law generally requires a written contract outlining key project terms and consumer protections.

  • Q: What must be included in a New York construction contract?

    A: It should include scope of work, detailed payment schedule, start and finish dates, insurance details, dispute resolution, and statutory notices.

  • Q: Are there any special licensing requirements for contractors in New York?

    A: Yes, contractors must hold relevant state or local licenses, especially for home improvement, electrical, or plumbing work.

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New York Construction Service Contract

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

  • [Contractor Legal Name], a [State of Incorporation] corporation/limited liability company, with a business address of [Contractor Business Address], Contractor's License Number: [Contractor License Number], and represented by [Contractor Authorized Representative Name] (hereinafter referred to as "Contractor");
  • and
  • [Client/Owner Legal Name], residing/with a business address at [Client/Owner Business Address], (hereinafter referred to as "Owner").

1. Project Description

  • The Project shall be located at: [Project Address] with the following legal property description: [Legal Property Description].
  • Applicable Permit Numbers: [Permit Numbers] (if applicable).

2. Scope of Work

  • Option A: The Contractor shall perform all work described in Exhibit A attached hereto (the "Work").
  • Option B: The Contractor shall perform the following Work: [Detailed Description of Work], including specifications, plans, blueprints, and engineering requirements, and including/excluding the following tasks: [List of Included and Excluded Tasks, e.g., Demolition, Grading, Utility Installation, Structural Work].
  • All Work shall be performed in accordance with the New York Building Code, local zoning and land use restrictions, and NYC Department of Buildings (DOB) requirements (if applicable).

3. Permits and Inspections

  • Option A: Contractor shall be responsible for obtaining all necessary permits and inspections.
  • Option B: Owner shall be responsible for obtaining [Specific Permits], and Contractor shall be responsible for all other permits and inspections.
  • Required Permits: [List of Required Permits].
  • Required Inspections: [List of Required Inspections].

4. Project Timeline

  • Project Start Date: [Start Date].
  • Substantial Completion Date: [Substantial Completion Date].
  • Option A: Milestone Schedule: [Detailed Milestone Schedule].
  • Option B: The project shall be completed according to the following phases/critical path: [Description of Project Phases/Critical Path].
  • Liquidated Damages: In the event Contractor fails to achieve Substantial Completion by the Substantial Completion Date, Contractor shall pay Owner liquidated damages of [Dollar Amount] per day for each day of delay.

5. Contract Price and Payment

  • Option A: Lump Sum: The Contract Price is [Dollar Amount].
  • Option B: Unit Price: The Contract Price shall be determined by the unit prices set forth in Exhibit B attached hereto.
  • Option C: Guaranteed Maximum Price (GMP): The GMP is [Dollar Amount], subject to adjustments as provided herein.
  • Option D: Cost-Plus: The Contract Price shall be the actual cost of the Work plus a fee of [Percentage or Dollar Amount].
  • Payment Terms:
    • Progress Billing: Contractor shall submit monthly invoices for Work completed, supported by a schedule of values.
    • Retainage: Owner shall retain [Percentage] of each progress payment until Substantial Completion.
    • Allowances: The Contract Price includes the following allowances: [List of Allowances and Dollar Amounts].
    • Alternates: The Contract Price includes/excludes the following alternates: [List of Alternates and Dollar Amounts].
    • Final Payment: Final payment shall be due upon Final Completion and Owner's acceptance of the Work, contingent upon Contractor providing lien waivers from all subcontractors and suppliers.
    • Detailed Invoicing Requirements: Invoices must include [Specific Invoice Requirements].

6. Prevailing Wage (If Applicable)

  • Option A: This project is subject to New York Labor Law prevailing wage requirements. Contractor shall comply with all applicable prevailing wage laws.
  • Option B: This project is not subject to New York Labor Law prevailing wage requirements.

7. Insurance

  • Contractor shall maintain the following insurance coverages:
    • Commercial General Liability Insurance: [Dollar Amount] per occurrence and [Dollar Amount] in the aggregate.
    • Worker's Compensation Insurance: As required by New York law.
    • Employer's Liability Insurance: [Dollar Amount].
    • Builder's Risk Insurance: [Dollar Amount].
    • Automobile Liability Insurance: [Dollar Amount].
  • Contractor shall provide Owner with a certificate of insurance evidencing the required coverages and naming Owner as an additional insured.

8. Bonding (If Applicable)

  • Option A: Contractor shall provide a performance bond and a payment bond, each in the amount of [Dollar Amount], compliant with New York statutes.
  • Option B: Bonding is not required for this project.

9. Site Safety

Contractor shall be solely responsible for site safety and shall comply with all applicable OSHA and New York State Department of Labor regulations, including the 240/241 Scaffold Law. Contractor shall also comply with all protocols for hazardous materials notification and disposal.

10. Change Orders

All changes to the Work must be in writing and signed by both parties. Change orders shall include a detailed description of the change, the price adjustment, and the time adjustment.

11. Contractor's License and Registration

Contractor warrants that it is duly licensed and registered to perform the Work in the State of New York and, if applicable, with the NYC DOB or other relevant authorities.

12. Warranties

Contractor warrants that the Work will be performed in a good and workmanlike manner and will be free from defects in materials and workmanship for a period of one (1) year from the date of Substantial Completion. Contractor shall pass through to Owner all manufacturer's warranties.

13. Subcontracting

  • Option A: Contractor may subcontract portions of the Work with Owner's prior written consent.
  • Option B: Contractor may subcontract portions of the Work without Owner's consent.
  • Contractor shall ensure that all subcontractors are licensed and insured.

14. Project Handover and Acceptance

Upon Substantial Completion, Contractor shall provide Owner with a certificate of Substantial Completion. Final acceptance shall occur upon Owner's inspection and approval of the Work.

15. Dispute Resolution

  • Option A: Any disputes arising out of this Agreement shall be resolved through mandatory mediation in [City, NY]. If mediation is unsuccessful, the dispute shall be resolved through binding arbitration in accordance with the rules of the American Arbitration Association.
  • Option B: Any disputes arising out of this Agreement shall be resolved in the courts of the State of New York, [County] County.
  • This Agreement shall be governed by the laws of the State of New York.

16. Indemnification

To the fullest extent permitted by law, Contractor shall indemnify and hold harmless Owner from and against any and all claims, damages, losses, and expenses arising out of or resulting from the performance of the Work, but only to the extent caused by the negligent acts or omissions of Contractor, its subcontractors, or their agents or employees.

17. Termination

  • Option A: Owner may terminate this Agreement for cause upon [Number] days written notice to Contractor.
  • Option B: Owner may terminate this Agreement for convenience upon [Number] days written notice to Contractor.
  • Upon termination, Contractor shall be entitled to payment for Work completed to the date of termination.

18. Mechanics' Lien

  • Contractor is hereby notified that Owner has the right to file a mechanics' lien against the property if Contractor is not paid for the Work.
  • Contractor shall provide Owner with a lien waiver upon each payment.

19. Equal Opportunity

Contractor is an Equal Opportunity Employer and shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, age, disability, or other protected characteristic.

20. Confidentiality

Contractor shall maintain the confidentiality of all Owner's proprietary information, including construction documents and other data.

21. Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Agreement to the extent that such delay or failure is caused by a force majeure event, including acts of God, war, terrorism, strikes, or government regulations.

22. Owner's Obligations

Owner shall provide Contractor with reasonable access to the site, timely information, prompt payment, necessary utilities, and timely approvals.

23. Assignability

This Agreement may not be assigned by either party without the prior written consent of the other party.

24. Entire Agreement

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

25. Severability

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

26. 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, or sent by overnight courier to the addresses set forth above.

27. Consumer Notices (Home Improvement Contracts Only)

  • THIS IS A HOME IMPROVEMENT CONTRACT AND YOU, THE OWNER, HAVE THREE (3) BUSINESS DAYS FROM THE DATE YOU SIGNED THIS CONTRACT TO CANCEL IT. IF YOU CANCEL, YOU MUST RETURN ANY MATERIALS DELIVERED TO YOU UNDER THIS CONTRACT.
  • Contractor's License Disclosure: [Contractor License Number].
  • Owner acknowledges receipt of a copy of this signed contract.

28. Accessibility and Safety

[Applicable if project subject to ADA or NYS accessibility requirements: This project is subject to the Americans with Disabilities Act and/or New York State accessibility requirements. Contractor shall comply with all applicable accessibility standards.]

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


_______________________________

[Contractor Authorized Representative Name]

Contractor


_______________________________

[Client/Owner Legal Name]

Owner

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