North Carolina construction service contract template

North Carolina Construction Service Contract

This North Carolina Construction Service Contract (the “Agreement”) is made and entered into as of this [Date], by and between [Contractor's Full Legal Name, including Inc., LLC, etc.], a [State] [Business Type] with its principal place of business at [Contractor's Full Business Address] and North Carolina General Contractor's License Number [License Number] (hereinafter referred to as “Contractor”), and [Owner's/Client's Full Legal Name], residing at [Owner's/Client's Full Address] (hereinafter referred to as “Owner”).

Property Description

The project will be located at [Property Address] with the following legal description: [Legal Description].

Scope of Work

Option A: Contractor shall perform the following work: [Detailed Description of Work, including Phases, Tasks, Materials (Brand, Grade, Substitutes, Lead Times), Equipment, and Labor. Identify all necessary drawings, blueprints, or specifications by date and version.].

Option B: The scope of work is detailed in Exhibit A, attached hereto and incorporated by reference.

Approved construction plans and all permits are listed in Exhibit B, attached hereto and incorporated by reference.

Permits and Compliance

Option A: Contractor is responsible for securing all necessary building permits, inspections, and ensuring compliance with all applicable state and local regulatory codes, including but not limited to erosion and sedimentation control, stormwater regulations, and ADA compliance (if applicable).

Option B: Owner is responsible for securing all necessary building permits. Contractor shall assist in the process.

Contract Time

Option A: The project shall commence on [Start Date] and be substantially completed on or before [Completion Date].

Option B: Time is of the essence. Contractor shall diligently pursue completion of the project.

Critical Milestones:

[Milestone 1]: [Date]

[Milestone 2]: [Date]

[Milestone 3]: [Date]

Workdays and Hours: [Days of Week], [Start Time] - [End Time].

Procedures for weather delays, force majeure, and unanticipated site conditions shall be as follows: [Detailed Procedures].

Contract Price and Payment Terms

Option A: Lump Sum - The contract price is [Dollar Amount].

Option B: Cost-Plus - The contract price shall be the actual cost of labor and materials, plus a fee of [Percentage]%.

Option C: Unit Price - The contract price shall be determined based on the unit prices listed in Exhibit C, attached hereto and incorporated by reference.

Schedule of Values: [Detailed Schedule of Values].

Progress Payment Intervals: [e.g., Monthly, Bi-Weekly].

Lien Waivers: Contractor shall provide unconditional lien waivers for each payment received, as required by North Carolina’s lien laws (G.S. §44A).

Retainage: [Percentage]% (Not to exceed 5% per N.C. law) will be retained from each payment until final completion and acceptance of the work.

Prompt Payment: Owner shall make payments to Contractor within [Number] days of receipt of invoice. Late payment penalties will be assessed at a rate of [Percentage]% per month, consistent with North Carolina law.

Change Orders

All change orders must be in writing and signed by both Contractor and Owner. The change order shall include details on pricing, time extensions, and compliance with North Carolina law on contract modifications. The process is further defined as follows: [Detailed Change Order Process].

Site Access and Conditions

Option A: Owner shall provide Contractor with reasonable access to the site.

Option B: Contractor is responsible for all site access arrangements.

Staging Area: [Description of Staging Area].

Utility Usage: [Details on Utility Usage and Payment Responsibility].

Storage: [Details on Storage Arrangements].

Sanitation: [Details on Sanitation Arrangements].

Site Safety and Compliance

Contractor shall maintain site safety standards in compliance with OSHA/NCDOL regulations. This includes protocols for hazardous materials, debris disposal, site cleanup, and protection of existing structures. Specific procedures are: [Detailed Safety Procedures].

Insurance

Contractor shall maintain the following insurance coverage:

General Liability: [Dollar Amount]

Workers’ Compensation: As required by N.C. Gen. Stat. §97-93.

Automobile Liability: [Dollar Amount]

Builder’s Risk: [Dollar Amount]

Contractor shall provide a certificate of insurance to Owner prior to commencement of work. Subrogation waivers shall be included.

Warranties

Contractor warrants workmanship and materials for a period of [Number] year(s) commencing on [Warranty Start Date] and ending on [Warranty End Date]. Coverage scope and exclusion criteria are as follows: [Detailed Warranty Scope and Exclusions]. This warranty meets or exceeds minimum industry standards and any requirements imposed by North Carolina law.

Subcontractors

Contractor may hire subcontractors, subject to Owner’s approval. Contractor shall provide Owner with a list of subcontractors and notice of contracting with unlicensed trades as required by North Carolina statute. Contractor is responsible for subcontractor compliance with contract obligations and licensure. Subcontractor payment terms are: [Detailed Subcontractor Payment Terms].

Inspection and Acceptance

Owner has the right to inspect the work at reasonable times. Upon completion of the work, Owner shall conduct a final inspection and provide Contractor with a punch list of any deficiencies. Final acceptance shall occur upon completion of all punch list items. This process follows North Carolina’s building inspection requirements.

Owner's Responsibilities

Owner shall provide timely site access, provision of utilities (as agreed), and security. Consequences of owner-caused delays, price increases, or work suspension shall be as follows: [Detailed Consequences]. Owner decision response timelines are: [Number] days.

Indemnification

Contractor shall indemnify Owner against liability for property damage, injury, environmental harm, code violations, or third-party claims arising from Contractor’s negligence, subject to limitations under North Carolina law. The specific terms are: [Detailed Indemnification Terms].

Termination

Option A: Default/Breach - This Agreement may be terminated by either party for default/breach, with cure notice and remedy windows per N.C. law.

Option B: For Cause - This Agreement may be terminated by Owner for cause, subject to written notice and an opportunity for Contractor to cure.

Option C: For Owner Convenience - Owner may terminate this Agreement for convenience upon written notice to Contractor.

Rights to payment, cost recovery, and lien filing in the event of early termination shall be governed by North Carolina’s claim of lien laws under Chapter 44A.

Dispute Resolution

Escalation steps: [Detailed Escalation Steps].

Mediation: The parties agree to mediate any disputes arising out of this Agreement in accordance with the North Carolina Rules for Mediated Settlement Conferences.

Venue: Any litigation or arbitration shall be conducted in [County Name] County, North Carolina, and shall be governed by North Carolina state law.

Compliance with North Carolina Law

Contractor shall comply with all applicable North Carolina statutes affecting construction, including the North Carolina General Contractor Licensing Act (Chapter 87), the Residential Construction Agreements Act (G.S. §22B-20), E-Verify and immigration requirements for labor, and all relevant local ordinances.

Notice to Owner

Contractor provides the following Notice to Owner regarding statutory lien rights and pre-lien information (per G.S. 44A-11.2): [Verbatim Statutory Notice to Owner].

For residential projects, Owner is hereby notified of the North Carolina "Homeowners Recovery Fund."

Waiver of Consequential Damages

To the extent enforceable under N.C. law, Owner and Contractor mutually waive consequential damages arising out of or relating to this Agreement.

Liquidated Damages

If Contractor fails to achieve substantial completion by the agreed-upon date, Contractor shall pay Owner liquidated damages in the amount of [Dollar Amount] per day for each day of delay, subject to North Carolina’s legal standard for enforceability.

Document Retention and Confidentiality

Contractor shall retain all project-related documents for a period of [Number] years. Confidentiality agreements for proprietary plans or data shall be as follows: [Detailed Confidentiality Terms]. Unlawful use of construction documents is prohibited.

Green Building/Energy Efficiency

Option A: This project shall comply with the following green building/energy efficiency requirements: [Detailed Requirements].

Option B: Not applicable.

Representations and Certifications

Contractor makes the following representations and certifications relating to North Carolina regulatory requirements: [Detailed Representations and Certifications].

Lead/Asbestos Disclosure

If the property was built before 1978, the following lead/asbestos disclosure applies: [Detailed Disclosure].

Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral. This Agreement and any amendments must be in writing and signed by authorized representatives.

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

[Contractor's Full Legal Name]

By: [Contractor's Printed Name]

Title: [Contractor's Title]

[Owner's/Client's Full Legal Name]

By: [Owner's/Client's Printed Name]