North Dakota construction service contract template
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How North Dakota construction service contract Differ from Other States
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North Dakota requires specific lien waiver language and timing obligations not commonly found in other states.
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State law mandates unique licensing requirements for contractors that must be incorporated into the service agreement.
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Change order processes and retainage limits are governed by North Dakota statutes, requiring distinct contract provisions.
Frequently Asked Questions (FAQ)
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Q: Is a written contract required for all construction projects in North Dakota?
A: A written contract is highly recommended and required for projects above certain monetary thresholds per state regulations.
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Q: Does the contract need to reference contractor licensing in North Dakota?
A: Yes. It is essential to disclose contractor licensing status and include related compliance language in the contract.
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Q: What lien rights do contractors and subcontractors have under North Dakota law?
A: North Dakota law gives strong lien rights but requires strict notice and waiver compliance, which must be addressed in contracts.
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North Dakota Construction Service Contract
This Construction Service Contract (the "Agreement") is made and entered into as of this [Date], by and between:
- Contractor: [Contractor Name], a [State] [Business Type] with its principal place of business at [Contractor Address], North Dakota License Number: [Contractor License Number], Phone: [Contractor Phone], Email: [Contractor Email] (hereinafter referred to as "Contractor"),
and
- Client: [Client Name], residing at [Client Address], Phone: [Client Phone], Email: [Client Email] (hereinafter referred to as "Client").
1. Project Description
- Option A: The Contractor shall perform the following construction services (the "Work") at the property located at [Property Address] in accordance with the attached drawings and specifications (Exhibit A): [Detailed Scope of Work - Demolition, Site Prep, Materials, Labor, Trades, Timeline].
- Option B: The Work shall consist of [Summary of Work] as described in Exhibit A. The site address is [Property Address].
2. Permits and Approvals
- Option A: The Contractor shall be responsible for obtaining all necessary permits and approvals required by the City/County of [City/County Name] and the State of North Dakota, including but not limited to building permits, electrical permits, and plumbing permits.
- Option B: The Client shall obtain the following permits: [List of Permits Client Obtains]. The Contractor is responsible for all other permits.
3. Project Schedule
- Option A: The Work shall commence on or before [Start Date] and shall be substantially completed on or before [Completion Date], subject to excusable delays as defined herein. The anticipated project schedule is detailed in Exhibit B.
- Option B: The Work will proceed according to the following milestones:
- Milestone 1: [Milestone Description], Completion Date: [Date]
- Milestone 2: [Milestone Description], Completion Date: [Date]
4. Project Deliverables and Acceptance
- Option A: The Contractor shall provide the following deliverables: [List of Deliverables]. Acceptance shall be based on compliance with the specifications outlined in Exhibit A and inspection by the Client. The Client has the right to inspect the work and withhold final acceptance until corrections are made.
- Option B: The Client shall have [Number] days to inspect the Work upon notification of completion.
5. Materials
- Option A: The Contractor shall supply all materials necessary to complete the Work, except for [List of Materials Provided by Client]. All materials shall be of good quality and in accordance with industry standards. Any substitutions must be approved by the Client in writing.
- Option B: The Client will provide all materials. The Contractor is responsible for verification of materials prior to installation.
6. Site Access and Restrictions
- Option A: The Contractor shall have reasonable access to the property during normal working hours, Monday through Friday, [Start Time] to [End Time]. Access restrictions are as follows: [List of Restrictions, e.g., Parking, Noise].
- Option B: The Client will provide the Contractor with keys/access codes to the property.
7. Safety
- Option A: The Contractor shall comply with all applicable OSHA and North Dakota Department of Labor and Human Rights safety requirements. All workers shall have appropriate safety training.
- Option B: The Client will provide a safety orientation to the Contractor and all subcontractors prior to the commencement of work.
8. Subcontractors
- Option A: The Contractor may subcontract portions of the Work. All subcontractors must be properly licensed in North Dakota. The Contractor shall be responsible for the acts and omissions of its subcontractors. The following subcontractors will be used: [List of Subcontractors and their Trades].
- Option B: The Contractor shall not subcontract any portion of the Work without the prior written consent of the Client.
9. Contract Price and Payment
- Option A: The total contract price for the Work is [Dollar Amount]. Payment shall be made according to the following schedule: [Payment Schedule - e.g., Milestone Payments, Percentage Completion]. A retainage of [Percentage]% will be withheld until final acceptance of the Work, not exceeding statutory maximum.
- Option B: The total contract price is based on a time and materials basis at a rate of [Dollar Amount] per hour for labor, plus the cost of materials.
10. Change Orders
- Option A: Any changes to the scope of Work must be documented in a written change order, signed by both the Contractor and the Client. The change order shall include a description of the change, the revised price, and any adjustments to the project schedule.
- Option B: All change orders must be approved by the Client in writing prior to the commencement of the changed work.
11. Insurance
- Option A: The Contractor shall maintain the following insurance coverage:
- General Liability Insurance: [Dollar Amount] per occurrence
- Workers' Compensation Insurance: As required by North Dakota law
- Builder's Risk Insurance: [Dollar Amount]
- Option B: The Contractor is responsible for providing proof of insurance prior to commencement of work.
12. Bonding
- Option A: The Contractor shall provide a performance bond in the amount of [Dollar Amount].
- Option B: No bonding is required for this project.
13. Warranty
- Option A: The Contractor warrants that the Work will be performed in a workmanlike manner and free from defects for a period of one (1) year from the date of substantial completion.
- Option B: The manufacturer's warranty applies to all materials. The contractor provides a [Number] day warranty on labor.
14. Waste Disposal
- Option A: The Contractor shall be responsible for the proper handling, removal, and disposal of all construction waste and debris in accordance with all applicable federal, state, and local laws and regulations, including North Dakota Department of Environmental Quality guidelines.
- Option B: The Client will provide a designated waste disposal area.
15. Inspections
- Option A: The Contractor shall be responsible for scheduling and coordinating all necessary inspections.
- Option B: The Client will schedule all inspections.
16. Unforeseen Conditions
- Option A: If unforeseen site conditions are encountered, such as soil contamination or hazardous materials, the Contractor shall immediately notify the Client. The contract price and schedule may be adjusted accordingly, subject to written agreement between the parties.
- Option B: The Client is responsible for conducting a site assessment and disclosing any known issues prior to the commencement of work.
17. Immigration Verification
The Contractor shall ensure that all employees and subcontractors comply with all applicable immigration verification requirements under North Dakota and federal law.
18. Anti-Discrimination
The Contractor shall comply with all applicable North Dakota anti-discrimination laws in employment and provision of services.
19. Project Suspension and Delay
- Option A: In the event of excusable delays, such as weather, force majeure, or supply chain disruptions, the Contractor shall be entitled to an extension of the project schedule. The Contractor shall notify the Client in writing within [Number] days of the occurrence of the delay.
- Option B: Excusable delays will be handled on a case-by-case basis and must be documented in writing.
20. Termination
- Option A: Either party may terminate this Agreement for cause, such as material breach of contract. The non-breaching party shall provide written notice of termination, allowing the breaching party [Number] days to cure the breach.
- Option B: The Client may terminate this Agreement for convenience upon written notice to the Contractor. In the event of termination for convenience, the Client shall pay the Contractor for all Work performed and materials purchased up to the date of termination, plus reasonable overhead and profit.
21. Remedies for Breach
- Option A: In the event of a breach of this Agreement, the non-breaching party shall be entitled to all available remedies at law or in equity, including but not limited to damages, specific performance, and injunctive relief. Any liquidated damages must comply with North Dakota law.
- Option B: The Contractor's liability shall be limited to the amount of the contract price.
22. Indemnification
The Contractor shall indemnify and hold harmless the Client from and against any and all claims, losses, damages, liabilities, and expenses arising out of or relating to the Contractor's performance of the Work, except to the extent caused by the sole negligence or willful misconduct of the Client, consistent with North Dakota anti-indemnity statutes.
23. Dispute Resolution
- Option A: Any disputes arising out of or relating to this Agreement shall be resolved through negotiation, followed by mediation, and if necessary, binding arbitration in accordance with the rules of the American Arbitration Association. The venue for arbitration shall be in [City], North Dakota.
- Option B: Any disputes arising out of or relating to this Agreement shall be resolved in the state courts of [County] County, North Dakota. North Dakota law will govern.
24. Compliance with Laws
The Contractor shall comply with all applicable federal, state, and municipal construction and contracting laws, including North Dakota Century Code Chapter 43-07 (contractor licensing), Title 48 (public improvement contracts), prevailing wage statutes (for public work), and local building ordinances.
25. Mechanic's Liens
The Contractor shall provide the Client with appropriate waivers and releases of mechanic's liens upon payment for the Work, in accordance with North Dakota Century Code Chapter 35-27.
26. Project Records
The Contractor shall maintain comprehensive project records, including change orders, daily logs, and safety reports. The Client shall have the right to audit these records.
27. Notices
All notices required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally or sent by certified mail, return receipt requested, to the addresses set forth above.
28. Assignment
The Contractor shall not assign this Agreement or any of its rights or obligations hereunder without the prior written consent of the Client.
29. Entire Agreement
This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.
30. Exhibits
The following exhibits are attached to and incorporated into this Agreement:
- Exhibit A: Drawings and Specifications
- Exhibit B: Project Schedule
31. Workers' Compensation Insurance
The Contractor shall maintain current Workers’ Compensation Insurance coverage as required by North Dakota law.
32. Public Health Law Compliance
The Contractor shall comply with all applicable COVID-19 or other public health laws and regulations in effect at the time of the Work.
33. Local Hiring (If Applicable)
If this is a public project, the Contractor shall comply with all applicable local hiring, apprenticeship, or disadvantaged/minority contractor participation requirements.
34. Severability
If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
35. Confidentiality (If Applicable)
The Contractor shall maintain the confidentiality of any proprietary construction methods or sensitive project data disclosed by the Client.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[Contractor Name]
By: [Contractor Signature]
Name: [Contractor Printed Name]
Title: [Contractor Title]
[Client Name]
By: [Client Signature]
Name: [Client Printed Name]