North Dakota construction independent contractor agreement template

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How North Dakota construction independent contractor agreement Differ from Other States

  1. North Dakota imposes specific requirements for defining independent contractor status, emphasizing control and business autonomy more than some states.

  2. State law mandates a written agreement outlining the contractor relationship, which helps avoid worker misclassification disputes.

  3. Unemployment insurance laws in North Dakota have unique criteria for independent contractors not present in many other states.

Frequently Asked Questions (FAQ)

  • Q: Is a written agreement required for construction independent contractors in North Dakota?

    A: Yes, North Dakota recommends a written contract to clearly establish the independent contractor relationship and avoid misclassification.

  • Q: Do independent contractors need to register their business in North Dakota?

    A: Yes, independent contractors typically must register with the Secretary of State if operating under a business name other than their own.

  • Q: Are independent contractors in North Dakota eligible for workers’ compensation?

    A: No, independent contractors are generally not covered under workers’ compensation unless they choose to obtain their own coverage.

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North Dakota Construction Independent Contractor Agreement

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

[Client Full Legal Name], residing at [Client Address], and if applicable, with a business registration number of [Client Business Registration Number] (hereinafter referred to as "Client").

and

[Contractor Full Legal Name], residing at [Contractor Address], and if applicable, with a business registration number of [Contractor Business Registration Number] (hereinafter referred to as "Contractor").

Scope of Work

Option A: General Scope: Contractor shall perform all work necessary to complete the project described as [Brief Project Description].

Option B: Detailed Scope: Contractor shall perform the following specific tasks:

  • [Task 1, e.g., Framing of exterior walls]
  • [Task 2, e.g., Installation of roofing materials]
  • [Task 3, e.g., Electrical wiring according to NEC standards]

The work shall be performed at the following location(s): [Project Address(es)]. Reference plans and specifications dated [Date of Plans] prepared by [Architect/Engineer Name]. All work is subject to inspections by [Inspector Name/Authority].

Schedule and Timeline

Option A: Fixed Timeline: The work shall commence on [Start Date] and be substantially completed by [Substantial Completion Date], and finally completed by [Final Completion Date].

Option B: Milestones: The work shall be completed according to the following milestones:

  • [Milestone 1, e.g., Foundation complete by: Date]
  • [Milestone 2, e.g., Framing complete by: Date]

Construction Hours: Work shall be performed between the hours of [Start Time] and [End Time], Monday through Friday, excluding holidays.

Delays: Contractor shall notify Client immediately of any delays. Delays due to weather conditions typical for North Dakota (e.g., blizzards, extreme cold) will be considered, and adjustments to the schedule will be mutually agreed upon in writing.

Compensation

Option A: Fixed Price: Client shall pay Contractor a fixed price of [Dollar Amount] for the completion of the work.

Option B: Time and Materials: Client shall pay Contractor at an hourly rate of [Dollar Amount per Hour] plus the cost of materials.

Option C: Unit Pricing: Client shall pay contractor based on the following unit prices:

  • [Unit 1, e.g., Framing per board foot: Dollar Amount]
  • [Unit 2, e.g., Roofing per square foot: Dollar Amount]

Progress Payments: Payments shall be made according to the following schedule: [Payment Schedule, e.g., Monthly based on percentage of completion certified by the Client/Architect].

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

Invoicing: Contractor shall submit invoices to Client every [Frequency, e.g., week, month].

Lien Waivers: Contractor shall provide lien waivers for each payment received, covering all labor and materials supplied.

Sales Tax: Contractor is responsible for collecting and remitting all applicable North Dakota sales/use tax.

Independent Contractor Status

Contractor acknowledges and agrees that they are an independent contractor and not an employee of Client.

Contractor is solely responsible for all self-employment taxes, including federal and state income taxes and social security taxes.

Contractor is responsible for obtaining and maintaining their own workers' compensation insurance (or a waiver if legally permissible under North Dakota law) and general liability insurance.

Contractor is responsible for complying with all applicable North Dakota licensing and building permit requirements.

Insurance

Contractor shall maintain the following insurance policies with minimum coverage amounts as specified:

  • General Liability Insurance: [Dollar Amount] per occurrence.
  • Auto Liability Insurance: [Dollar Amount] per occurrence.
  • Workers Compensation: As required by North Dakota law, or a legal waiver where permissible.

Contractor shall name Client as an additional insured on their general liability policy. Contractor to provide Client with certificates of insurance before commencement of work.

Compliance with Laws

Contractor shall comply with all applicable North Dakota building codes, local ordinances, safety and health laws (including OSHA standards), state-specific licensing, and environmental requirements.

Materials, Tools, and Equipment

Option A: Contractor Provided: Contractor shall provide all materials, tools, and equipment necessary to perform the work.

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

Quality Standards: All materials shall meet or exceed industry standards and shall be of good quality.

Site Access: Contractor shall adhere to any site access protocols or security measures required by Client.

Subcontracting

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

Contractor shall be solely responsible for the payment and compliance of any subcontractors they hire.

Contractor must notify the client in writing before hiring any subcontractors, including the names, addresses, and license numbers of all subcontractors.

Warranties

Contractor warrants that all 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.

Contractor shall promptly remedy any defects in workmanship or materials that are discovered during the warranty period.

Change Orders

Any changes to the scope of work shall be documented in a written change order signed by both Client and Contractor.

Change orders shall include adjustments to the contract price and/or schedule as necessary.

Indemnification

Contractor shall indemnify and hold harmless Client from any and all claims, losses, damages, liabilities, costs, and expenses (including attorney's fees) arising out of or related to Contractor's performance of the work, including but not limited to property damage, personal injury, and third-party claims, to the extent caused by the Contractor's negligence.

Dispute Resolution

Any disputes arising out of or relating to this Agreement shall be resolved through negotiation.

If negotiation fails, the parties shall attempt mediation.

If mediation fails, the parties may pursue arbitration or litigation in a court of competent jurisdiction in [County Name] County, North Dakota. North Dakota law shall govern this agreement.

Documentation

Contractor shall maintain accurate and complete records of all work performed, including daily logs, permits, inspections, lien releases, and proof of insurance or licensing, in formats acceptable under North Dakota regulations.

Inspection and Acceptance

Client shall have the right to inspect the work at any time.

Client shall have the right to reject any work that does not conform to the requirements of this Agreement.

Upon completion of the work, a punch list shall be created, and Contractor shall promptly complete all items on the punch list.

Ownership

Client shall retain ownership of all plans, drawings, and specifications.

Contractor hereby assigns to Client all rights to Contractor's work product relating to the project.

Termination

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

Option B: Termination for Cause: Either party may terminate this Agreement for cause if the other party breaches the Agreement.

Upon termination, Contractor shall be entitled to payment for all work performed up to the date of termination.

North Dakota Construction Lien Law

Contractor acknowledges Client’s right to receive notice of right to claim a lien, tracking of payments, and dispute resolution over unpaid balances according to North Dakota Construction Lien Law.

Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Agreement due to causes beyond its reasonable control, including but not limited to acts of God, weather events common to North Dakota (e.g., blizzards), supply chain disruptions, and governmental regulations.

Anti-Discrimination

Contractor shall comply with all applicable anti-discrimination and equal opportunity laws.

Confidentiality

Contractor shall maintain the confidentiality of any proprietary information disclosed by Client in connection with this Agreement.

Entire Agreement

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

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of North Dakota.

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

____________________________

[Client Full Legal Name]

____________________________

[Contractor Full Legal Name]

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