Ohio construction independent contractor agreement template

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How Ohio construction independent contractor agreement Differ from Other States

  1. Ohio applies the ‘twenty-factor test’ to determine independent contractor status, which may vary from other states’ criteria.

  2. Ohio requires strict compliance with workers’ compensation exemptions, which can be more rigorous than in some other states.

  3. Contracts in Ohio must clearly outline responsibility for all licensing, insurance, and tax obligations per state-specific laws.

Frequently Asked Questions (FAQ)

  • Q: Is a written independent contractor agreement required by law in Ohio?

    A: While not always legally mandatory, a written agreement is strongly recommended to clearly define the relationship and responsibilities.

  • Q: Does the Ohio agreement need to specify workers’ compensation coverage?

    A: Yes, it should explicitly state which party is responsible for securing proper workers’ compensation coverage under Ohio law.

  • Q: Can an Ohio contractor be reclassified as an employee?

    A: Yes, if state guidelines are not met, authorities may reclassify contractors as employees, leading to penalties and owed benefits.

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Ohio Construction Independent Contractor Agreement

This Ohio Construction Independent Contractor Agreement is made and entered into as of this [Date] by and between:

  • [Client Name/Company Name], residing/located at [Client Address], hereinafter referred to as "Client,"

and

  • [Contractor Name/Company Name], residing/located at [Contractor Address], with Ohio registration/license number (if applicable): [Contractor License/Registration Number], hereinafter referred to as "Contractor."

Scope of Work

  • Option A: The Contractor shall perform the following construction services (the "Services"): [Detailed Description of Services, including specific tasks, project location with site address, blueprints/specifications reference, list of materials to be supplied by each party, equipment to be provided by each party, work hours, and safety protocols].
  • Option B: The Contractor shall perform services as detailed in Exhibit A, attached hereto and incorporated by reference.

Project Deliverables and Schedule

  • Option A: The Contractor shall complete the Services according to the following schedule: [Detailed Schedule of Milestones with Deadlines, Progress Reporting Timetable, and Approval/Sign-Off Procedures for Completed Work Stages].
  • Option B: The project deliverables, milestones, and construction schedule are detailed in Exhibit B, attached hereto and incorporated by reference.
  • Change Orders: All change orders or modifications to the Services must be in writing and signed by both parties, outlining the changed scope of work and any adjustments to the price or schedule. The process and pricing for handling change orders are: [Detailed Process for Change Orders, including pricing methodology].

Compensation

  • Option A: The Client shall pay the Contractor a total fee of [Dollar Amount] for the Services.
    • Payment will be made:
      • Per Project
      • Per Milestone
      • Time and Materials basis at an hourly rate of [Dollar Amount] per hour plus the cost of materials.
    • Payment Schedule: [Detailed Payment Schedule, including Down Payment Amount/Percentage, Progress/Percentage Payments, and Retainage Amount/Percentage, in accordance with Ohio law].
  • Option B: The compensation is detailed in Exhibit C, attached hereto and incorporated by reference.
  • Invoicing: The Contractor shall submit invoices to the Client [Frequency of Invoicing, e.g., weekly, bi-weekly, monthly]. Invoices shall include a detailed breakdown of work performed, materials used (if applicable), and expenses incurred.
  • Ohio Sales Tax: The Contractor is responsible for collecting and remitting Ohio sales tax on taxable materials, if applicable. The Client is responsible for providing a Direct Pay Permit if applicable.

Expenses

  • Option A: The Client shall reimburse the Contractor for the following pre-approved expenses: [List of Reimbursable Expenses, e.g., travel, lodging, permits].
  • Option B: No expenses will be reimbursed unless specifically agreed upon in writing by both parties.
  • All expenses must be supported by receipts and approved by the Client prior to reimbursement.

Lien Rights and Waivers

  • The Contractor acknowledges the provisions of Ohio Revised Code Chapter 1311 regarding mechanics' liens.
  • The Contractor shall provide a Notice of Furnishing to the Client and the relevant Ohio County Recorder, if required.
  • The Client shall have the right to request lien waivers or releases from the Contractor and any subcontractors upon receipt of each payment.
  • The Contractor agrees to provide full and unconditional lien waivers upon final payment.

Independent Contractor Relationship

  • The Contractor is an independent contractor and not an employee of the Client.
  • The Contractor is responsible for all self-employment taxes, insurance, and other expenses associated with operating their business.
  • The Contractor is solely responsible for compliance with all federal, Ohio, and local tax laws related to independent contractors.

Insurance and Licensing

  • Option A: The Contractor shall maintain the following insurance coverage:
    • General Liability Insurance: [Minimum Coverage Amount]
    • Property Damage Insurance: [Minimum Coverage Amount]
    • Workers' Compensation Insurance: [If applicable in Ohio, specify requirements even if self-employed, unless exempt]
    • Vehicle Insurance: [Minimum Coverage Amount]
  • Option B: The Contractor shall maintain insurance coverage as specified in Exhibit D, attached hereto and incorporated by reference.
  • The Contractor shall provide the Client with proof of insurance upon request and shall name the Client as an additional insured on the general liability policy, if required.
  • The Contractor shall maintain all required licenses and registrations with the Ohio Construction Industry Licensing Board (OCILB) or local authorities throughout the duration of the project and provide proof to the Client upon request.

Health and Safety

  • The Contractor shall comply with all applicable OSHA standards, Ohio regulations, and site-specific safety protocols.
  • The Contractor shall provide and ensure the use of personal protective equipment (PPE) by all personnel on the job site.
  • The Contractor shall maintain a safe working environment and follow all applicable safety regulations.
  • The Contractor shall immediately report any accidents or incidents to the Client and the appropriate authorities.

Warranties

  • The Contractor warrants that the Services will be performed in a workmanlike manner and free from defects for a period of [Number] year(s) from the date of completion.
  • The Contractor warrants that all materials supplied by the Contractor will be of good quality and free from defects.
  • In the event of a warranty claim, the Contractor shall promptly repair or replace any defective work or materials at no cost to the Client.
  • This warranty is in addition to any warranties implied by Ohio law.

Confidentiality

  • Option A: The Contractor shall maintain the confidentiality of all client and project information.
  • Option B: This agreement does not contain any specific confidentiality provisions.
  • The Contractor shall not disclose any confidential information to any third party without the Client's prior written consent.

Ownership

  • The Client shall own all project materials, plans, completed work, and intellectual property created in connection with the Services.

Subcontracting

  • Option A: The Contractor may not subcontract any portion of the Services without the Client's prior written consent.
  • Option B: The Contractor may subcontract the following portions of the Services: [Specify which portions can be subcontracted].
  • The Contractor shall ensure that all subcontractors comply with all applicable Ohio laws, insurance requirements, and the terms of this Agreement.

Liability and Indemnification

  • The Contractor shall indemnify and hold harmless the Client from any and all claims, losses, damages, liabilities, and expenses arising out of or relating to the Contractor's performance of the Services, including but not limited to damage to property, injuries, third-party claims, code violations, and environmental hazards.
  • The Contractor’s liability is limited to the total amount of compensation paid by Client to Contractor.

Termination

  • This Agreement may be terminated by either party for the following reasons:
    • Completion of the Services.
    • Mutual agreement in writing.
    • Termination for cause (breach of contract, non-payment, non-performance) with [Number] days' written notice.
    • Early cessation due to government orders or site hazards.
  • Upon termination, the Contractor shall cease all work and deliver all project materials to the Client.
  • Final payment shall be made upon completion of a final inspection and punch list completion, and the Contractor’s provision of final lien releases.
  • Upon termination, the Contractor will cooperate with the Client to ensure a smooth transition of the Services.

Force Majeure

  • Neither party shall be liable for any delay or failure to perform its obligations under this Agreement due to force majeure events, including but not limited to acts of God, weather, labor disruptions, supply shortages, or government actions.
  • In the event of a force majeure event, the affected party shall promptly notify the other party and shall use commercially reasonable efforts to mitigate the delay or failure.

Dispute Resolution

  • Any disputes arising out of or relating to this Agreement shall be resolved through the following process:
    • Amicable negotiation.
    • Non-binding mediation.
    • Arbitration or litigation.
  • This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio.
  • Venue for any legal action shall be in [County Name] County, Ohio.
  • [Option to include a waiver of jury trial]

Compliance with Laws

  • The Contractor shall comply with all applicable federal, Ohio, and municipal codes, including construction licensing, prevailing wage requirements for public projects (Ohio Revised Code Chapter 4115), and proof of eligibility to work for all on-site workers.

Client Inspection Rights

  • The Client shall have the right to inspect the worksite upon reasonable notice to the Contractor.
  • The Client shall comply with all safety procedures during inspections.
  • The Contractor shall maintain a clean and safe site during and after construction.

Records Retention

  • The Contractor shall maintain accurate project records and documentation for a period of [Number] years.
  • The Client shall have the right to audit the Contractor's records upon reasonable notice.

Contractor Status

  • The Contractor represents that it is a registered business with the State of Ohio, if applicable.
  • The Contractor represents that it is in good standing with all applicable regulatory agencies.
  • The Contractor shall notify the Client of any changes in its business status.

Notices

  • All notices under this Agreement shall be in writing and shall be deemed to be duly given when delivered personally, sent by certified mail, or sent by email to the addresses set forth above.

Disclosures and Consents

  • The Contractor represents that all employees have been properly screened and consented to performing the work.
  • [Include any required disclosures under Ohio law, such as lead paint disclosures if working on pre-1978 buildings, and any local city or county additional contract requirements.]

Entire Agreement

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

Severability

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

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.

____________________________
[Client Name/Company Name]

____________________________
[Contractor Name/Company Name]

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