North Carolina construction independent contractor agreement template
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How North Carolina construction independent contractor agreement Differ from Other States
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North Carolina uses specific state and IRS criteria to define independent contractors and misclassification carries significant penalties.
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State law requires construction contractors to hold relevant North Carolina licenses, which must be referenced in agreements.
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North Carolina requires strict compliance with workers' compensation insurance rules, even for some independent contractors.
Frequently Asked Questions (FAQ)
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Q: Does a North Carolina construction contractor need a special license?
A: Yes. Most construction contractors must be licensed by the North Carolina Licensing Board for General Contractors.
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Q: How can I ensure someone is classified as an independent contractor in North Carolina?
A: Follow IRS and state guidelines; document independence, control, and project-based payment in the signed agreement.
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Q: Is workers' compensation required for independent contractors in construction?
A: If an independent contractor employs others, North Carolina law may require workers' compensation coverage for those employees.
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North Carolina Construction Independent Contractor Agreement
This Construction Independent Contractor Agreement (the “Agreement”) is made and entered into as of [Date], by and between:
[Hiring Party Full Legal Name], whose business address is [Hiring Party Business Address], phone number is [Hiring Party Phone Number], and license/registration number (if applicable) is [Hiring Party License/Registration Number] (hereinafter referred to as “Client”),
and
[Independent Contractor Full Legal Name], whose business address is [Independent Contractor Business Address], phone number is [Independent Contractor Phone Number], and license/registration number is [Independent Contractor License/Registration Number] (hereinafter referred to as “Contractor”).
Scope of Work:
Option A: The Contractor shall perform the following construction services (the “Work”) for the Client, as described in detail in [Referenced Document Name, e.g., Exhibit A - Project Specifications]: [Detailed description of services, including specific tasks, work methods, quality standards, etc.]. The Work shall comply with all applicable North Carolina codes and permitting requirements.
Option B: The Work shall consist of [General description of the work, e.g., carpentry, electrical, plumbing, etc.] at the project location identified below. Detailed specifications and drawings are attached as [Referenced Document Name, e.g., Appendix B - Construction Drawings]. The Contractor is responsible for ensuring the Work meets the minimum standards under the North Carolina State Building Code.
Materials:
Option A: The Contractor shall supply all materials necessary for the Work.
Option B: The Client shall supply all materials necessary for the Work.
Option C: The Contractor shall supply the following materials: [List of Materials]. The Client shall supply all other materials. Material substitutions require prior written approval from the Client per North Carolina construction practices.
Work Site Location:
The Work shall be performed at the following location (the “Project Site”): [Complete Address, including County and Municipality].
Site-Specific Instructions: [Any specific instructions regarding access, safety briefings, parking, etc.].
Project Schedule:
Option A: Notice to Proceed: The Client will provide the Contractor with a written Notice to Proceed on or before [Date].
Option B: Commencement Date: The Contractor shall commence the Work on or before [Date].
Completion Date: The Contractor shall substantially complete the Work on or before [Date].
Milestones:
Milestone 1: [Description of Milestone] - Completion Date: [Date]
Milestone 2: [Description of Milestone] - Completion Date: [Date]
Delays:
Weather Delays: Delays due to inclement weather will be handled according to standard North Carolina construction practices, requiring written notification to the Client within [Number] days of the event.
Force Majeure: Neither party shall be liable for delays caused by force majeure events.
Change Orders: Any changes or extensions to the schedule must be requested in writing and approved by the Client in a written change order.
Payment:
Option A: Fixed Price: The total fixed price for the Work is [Dollar Amount].
Option B: Unit Price: The unit prices for the Work are as follows: [List of unit prices for specific tasks/materials]. The total contract value is estimated to be [Dollar Amount], not to exceed [Dollar Amount].
Option C: Time and Materials: The Contractor shall be paid at a rate of [Dollar Amount] per hour, plus the cost of materials. The total contract value is estimated to be [Dollar Amount], not to exceed [Dollar Amount].
Payment Terms:
Progress Payments: The Client shall make progress payments to the Contractor based on the following schedule: [Description of payment schedule, e.g., monthly, upon completion of milestones].
Lien Waivers: The Contractor shall provide a North Carolina lien waiver with each invoice.
Final Payment: Final payment will be made within [Number] days of completion of the Work and acceptance by the Client.
Invoicing: The Contractor shall submit invoices to the Client at [Frequency, e.g., monthly].
Taxes: The Contractor is solely responsible for all federal and North Carolina state income tax, self-employment tax, and payroll tax obligations for their own labor and subcontractors. The Contractor is responsible for North Carolina sales and use tax compliance if applicable.
Ownership of Deliverables:
All physical work product, records, and as-built drawings created by the Contractor in connection with the Work shall be the property of the [Client or Contractor].
Excess Materials: Excess materials and leftover supplies shall be disposed of according to North Carolina environmental and waste disposal regulations. [Specify responsibility for cleanup].
Insurance:
The Contractor shall maintain the following insurance coverage:
Commercial General Liability insurance with a minimum limit of [Dollar Amount] per occurrence.
Workers’ Compensation insurance as required by North Carolina law.
Automobile insurance for any vehicles used on the Project Site.
The Contractor shall provide the Client with certificates of insurance evidencing the required coverage. The Client shall maintain [Description of Client's insurance coverage].
Indemnification:
The Contractor shall indemnify, defend, and hold harmless the Client from and against any and all claims, damages, or losses caused by the Contractor’s negligent acts or omissions. This indemnification is subject to the limitations of the North Carolina anti-indemnity statute.
Independent Contractor Status:
The Contractor is an independent contractor, and nothing in this Agreement shall be construed to create an employee, partner, or joint venture relationship. The Client shall not provide benefits to the Contractor. The Contractor is responsible for their own employees, agents, and subcontractors.
Licensing and Registration:
The Contractor warrants that they are duly licensed and registered to perform the Work in North Carolina, in accordance with North Carolina General Statutes Chapter 87 (if applicable) and all other applicable laws and regulations.
Subcontractors:
The Contractor shall not subcontract any portion of the Work without the prior written approval of the Client. The Contractor shall ensure that all subcontractors are properly licensed and insured.
Warranty:
The Contractor warrants that the Work shall be performed in a good and workmanlike manner and shall be free from defects for a period of [Number] year(s) from the date of completion, consistent with the minimum one-year implied warranty under North Carolina law. [Specify remedies for defective work and process for honoring warranties].
Change Orders:
Any changes to the Work must be documented in a written change order, approved by both the Client and the Contractor. The change order shall include adjustments to the fee and timeline.
Safety:
The Contractor shall comply with all applicable OSHA and North Carolina Department of Labor safety regulations. The Contractor shall report any accidents to the Client immediately.
Dispute Resolution:
Any disputes arising out of or relating to this Agreement shall be resolved as follows:
Negotiation: The parties shall first attempt to resolve the dispute through good faith negotiation.
Mediation: If negotiation fails, the parties shall submit the dispute to mediation in accordance with North Carolina statutes.
Arbitration/Litigation: If mediation fails, the parties may pursue arbitration or litigation in the courts of North Carolina.
Non-Solicitation/Non-Competition:
[Include or exclude non-solicitation and/or non-competition clauses here, ensuring they are enforceable under North Carolina law].
Confidentiality:
The Contractor shall maintain the confidentiality of the Client’s business practices, blueprints, and proprietary methods, consistent with North Carolina trade secret protections.
Termination:
Termination for Cause: The Client may terminate this Agreement for cause if the Contractor breaches this Agreement, fails to comply with applicable law or safety requirements, or is otherwise non-performing.
Termination for Convenience: The Client may terminate this Agreement for convenience upon [Number] days’ written notice to the Contractor.
Procedure: Upon termination, the Contractor shall cease work immediately and provide the Client with all documentation and materials. Final payment shall be made upon completion of a final inspection and punch list.
North Carolina Lien Law:
The Contractor shall comply with all applicable North Carolina lien law requirements, including providing preliminary notices where required.
Permits and Inspections:
The Contractor shall obtain all necessary permits and inspections required for the Work, in compliance with North Carolina and local regulations.
Governing Law and Venue:
This Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina. The venue for any legal action arising out of this Agreement shall be [County Name] County, North Carolina.
Review and Authority:
Both parties acknowledge that they have reviewed this Agreement, have had the opportunity to seek independent legal counsel, and are authorized to bind their respective organizations.
Additional Provisions:
[Include any additional industry-specific regulatory requirements, such as special insurance for roofing work, or environmental provisions for demolition/debris hauling].
Recordkeeping, retention, and access for audit or regulatory inspection consistent with North Carolina worksite practices are required.
Attachments:
Exhibit A: [Description of Exhibit, e.g., Project Specifications]
Exhibit B: [Description of Exhibit, e.g., Construction Drawings]
Miscellaneous:
Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral.
Amendment: This Agreement may be amended only by a written instrument signed by both parties.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
____________________________
[Hiring Party Printed Name]
[Hiring Party Title (if applicable)]
Date: [Date]
____________________________
[Independent Contractor Printed Name]
[Independent Contractor Title (if applicable)]
Date: [Date]