Oklahoma construction independent contractor agreement template
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How Oklahoma construction independent contractor agreement Differ from Other States
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Oklahoma defines independent contractors more strictly using statutory guidelines, which may differ from other states' tests.
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Oklahoma requires explicit written agreements to clarify independent contractor status in the construction industry.
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Oklahoma does not require independent contractor registration with the Department of Labor, unlike some other states.
Frequently Asked Questions (FAQ)
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Q: Is a written independent contractor agreement required in Oklahoma construction?
A: Yes, written agreements are highly recommended and often required to clearly define worker status per Oklahoma regulations.
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Q: Can independent contractors in Oklahoma construction receive employee benefits?
A: No, independent contractors are not entitled to employee benefits such as workers’ compensation, health insurance, or overtime.
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Q: Does Oklahoma mandate specific language in construction contractor agreements?
A: Oklahoma does not mandate specific contract language, but agreements should clearly outline the work, payment, and independent status.
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Oklahoma Construction Independent Contractor Agreement
This Oklahoma Construction Independent Contractor Agreement (the “Agreement”) is made and effective as of [Date], by and between:
- [Client Name], residing at [Client Address] (“Client”), and
- [Contractor Name], a [Contractor Entity Type, e.g., Sole Proprietorship, LLC], with its principal place of business at [Contractor Address], and Oklahoma Contractor Registration/License Number [License Number] (“Contractor”).
1. Scope of Work
- Option A: Contractor shall perform the following construction services: [Detailed Description of Services, e.g., framing, roofing, plumbing, electrical, demolition, site preparation] at the project location described below. This includes but is not limited to: [Specific Tasks and Deliverables].
- Option B: Contractor shall perform all work as detailed in Exhibit A, attached hereto and incorporated by reference. This includes but is not limited to: [Specific Tasks and Deliverables].
- Option C: Contractor shall perform renovation services including demolition and remodeling as per architectural plans provided by the client.
2. Project Location
- Option A: The project location is [Project Address], Oklahoma. Contractor acknowledges and agrees to comply with all site-specific conditions and access procedures as communicated by the Client.
- Option B: The project locations are listed in Exhibit B, attached hereto and incorporated by reference, including applicable site-specific conditions and access procedures.
- Option C: Project location is subject to change based on client needs with 24 hours’ notice.
3. Deliverable Standards
- Option A: All work shall be performed in a good and workmanlike manner, consistent with industry best practices and in compliance with all applicable Oklahoma construction codes, including the Oklahoma Uniform Building Code. Specific technical specifications are as follows: [Detailed Technical Specifications].
- Option B: All work shall conform to the specifications outlined in Exhibit C, attached hereto and incorporated by reference, and shall be subject to inspection and approval by the Client or their designated representative.
- Option C: All work shall be in compliance with the 2021 International Building Code as adopted by the State of Oklahoma.
4. Project Timeline
- Option A: The project shall commence on [Start Date] and is projected to be completed on or before [Completion Date]. Key milestones are: [List of Milestones with Dates].
- Option B: The project timeline is detailed in Exhibit D, attached hereto and incorporated by reference, including start and completion dates, milestones, and task dependencies. Procedures for handling Oklahoma weather delays: [Delay Procedures].
- Option C: The project is expected to take [Number] weeks to complete contingent on weather, material availability, and unforeseen site conditions.
5. Payment Terms
- Option A: Client shall pay Contractor a fixed price of [Dollar Amount] for the completed work, payable as follows: [Payment Schedule, e.g., deposit, progress payments, final payment].
- Option B: Client shall pay Contractor on a cost-plus basis, with a markup of [Percentage]% on all direct costs, plus a fee of [Dollar Amount].
- Option C: Client shall pay Contractor at an hourly rate of [Dollar Amount] per hour for labor and reimburse Contractor for all reasonable and necessary material costs.
- Invoicing Procedures: Contractor shall submit invoices to Client [Frequency, e.g., weekly, bi-weekly, monthly] with supporting documentation. Payment is due within [Number] days of invoice receipt. Oklahoma sales tax [Does/Does Not] apply to labor. Payment method: [Payment Method].
6. Retainage
- Option A: Client shall withhold [Percentage]% of each progress payment as retainage. Retainage shall be released to Contractor upon final completion and acceptance of the work.
- Option B: No retainage shall be withheld.
- Option C: Retainage shall follow the guidelines per Oklahoma statutes (15 O.S. §§921-923).
7. Materials
- Option A: Contractor shall be responsible for purchasing and supplying all materials necessary for the project. Proof of local sourcing [Is/Is Not] required.
- Option B: Client shall be responsible for providing all materials.
- Option C: Responsibilities are divided as listed in Exhibit E.
8. Equipment and Tools
- Option A: Contractor shall provide all necessary equipment and tools to complete the work. Contractor is responsible for maintaining all equipment in safe working order and complying with OSHA and Oklahoma Department of Labor standards.
- Option B: Client shall provide access to certain equipment and tools as specified in Exhibit F.
- Option C: Rental of specialized equipment will be billed to the client at cost plus 10% administration fee.
9. Insurance
- Option A: Contractor shall maintain general liability insurance with a minimum coverage of [Dollar Amount], builder’s risk insurance (if applicable), commercial auto insurance (if vehicle use is involved), and Oklahoma-required workers’ compensation insurance (unless properly waived or exempt). Client shall be named as an additional insured on the general liability policy. Contractor shall provide certificates of insurance to Client prior to commencement of work.
- Option B: Contractor confirms that they are an independent contractor and have filed the necessary paperwork with the State of Oklahoma to be exempt from worker’s compensation insurance.
- Option C: Contractor maintains the following coverage levels: General Liability [Dollar Amount], Commercial auto [Dollar Amount].
10. Independent Contractor Status
Contractor is an independent contractor and not an employee of Client. Contractor is responsible for all federal, Oklahoma state, and local taxes, including self-employment taxes. Contractor is not entitled to any employee benefits, including unemployment or workers’ compensation (unless mandated by law). Client will issue a Form 1099-NEC to Contractor.
11. Permits and Licensing
- Option A: Contractor is responsible for obtaining all necessary permits, inspections, and licenses required for the project under Oklahoma state and local construction rules.
- Option B: Client is responsible for obtaining all necessary permits, inspections, and licenses required for the project under Oklahoma state and local construction rules.
- Option C: Contractor will obtain all permits and invoice the client for the expenses incurred.
12. Subcontractors
Contractor shall not subcontract any portion of the work without the prior written approval of Client. Any subcontractors used by Contractor shall be properly licensed and insured and shall comply with all applicable Oklahoma labor and hiring laws.
13. Lien Rights and Waivers
Contractor acknowledges that they have the right to file a mechanic’s and materialman’s lien under Oklahoma law if not paid. Contractor shall provide partial and final lien waivers upon receipt of progress and final payments.
14. Change Orders
Any changes to the scope of work, project timeline, or payment terms must be documented in a written change order signed by both Client and Contractor. The change order shall include a detailed description of the change, the adjusted cost or timeline, and the reason for the change.
15. Warranties
- Option A: Contractor warrants that all work will be free from defects in workmanship for a period of [Number] year(s) from the date of completion. Contractor also warrants that all materials will be of good quality and suitable for their intended purpose.
- Option B: Contractor provides a warranty as per Exhibit G.
- Option C: All warranties are limited to the manufacturer’s warranty on supplied materials.
16. Indemnification
Contractor shall indemnify and hold harmless Client from and against any and all claims, damages, losses, and expenses arising out of or relating to Contractor’s performance of the work, including property damage, injury, code violations, and third-party claims, to the extent caused by Contractor’s negligence or willful misconduct.
17. Right of Access
Client shall have the right to access the worksite for inspections at reasonable times. State or municipal authorities shall also have the right to access the worksite for inspections as required by law.
18. Safety and Compliance
Contractor shall comply with all applicable OSHA and Oklahoma state occupational safety requirements. Contractor shall maintain a drug-free workplace and require the use of personal protective equipment. Contractor shall report any incidents or accidents to Client immediately.
19. Dispute Resolution
Any disputes arising out of or relating to this Agreement shall be resolved through informal negotiation. If the parties are unable to resolve the dispute through negotiation, they shall submit the dispute to mediation or arbitration in Oklahoma, consistent with the Oklahoma Arbitration Act. Venue and governing law: Oklahoma.
20. Termination
- Option A: Client may terminate this Agreement for convenience upon [Number] days’ written notice to Contractor. Client shall pay Contractor for all work completed up to the effective date of termination.
- Option B: Client may terminate this Agreement for cause if Contractor breaches any material term of this Agreement and fails to cure the breach within [Number] days’ written notice.
- Option C: Contractor may terminate this agreement given 60 days’ notice, if the client is delinquent on payment.
21. Ownership of Work
Ownership of all completed work, plans, drawings, and intellectual property arising from this Agreement shall vest in Client upon payment.
22. Compliance with Laws
Contractor shall comply with all applicable Oklahoma and federal laws, including but not limited to equal employment opportunity, anti-discrimination, and E-Verify (if required).
23. Force Majeure
Neither party shall be liable for any delay or failure to perform its obligations under this Agreement due to a force majeure event, including natural disasters, tornados, or government-mandated work stoppages in Oklahoma.
24. Confidentiality
Contractor shall maintain the confidentiality of any technical or business information not publicly available and shall not disclose such information to any third party.
25. Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written.
26. Severability
If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
27. Amendment
This Agreement may be amended only by a written instrument signed by both Client and Contractor.
28. Authorized Signatories
This agreement is only valid if signed by [Client Name] and [Contractor Name].
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
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[Client Name], Client
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[Contractor Name], Contractor