Oklahoma construction service contract template

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How Oklahoma construction service contract Differ from Other States

  1. Oklahoma requires contractors working on projects over $50,000 to hold a valid state-issued license, unlike some states with higher thresholds.

  2. Oklahoma law governs prompt payment to contractors, typically within 28 days, whereas other states may set shorter or longer deadlines.

  3. Mechanic’s lien rights in Oklahoma include specific pre-lien notice requirements not present in all other states, affecting enforceability.

Frequently Asked Questions (FAQ)

  • Q: Is a written construction service contract required in Oklahoma?

    A: While not always legally required, a written contract is strongly recommended to detail rights and responsibilities for all parties.

  • Q: Do Oklahoma construction contracts require specific disclosures?

    A: Yes, certain residential contracts must disclose licensure status and provide homeowner protection notices as per state regulations.

  • Q: Can contractors file a mechanic’s lien in Oklahoma without prior notice?

    A: Pre-lien notice is required for most residential projects in Oklahoma to preserve lien rights. Commercial projects may have different rules.

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Oklahoma Construction Service Contract

This Oklahoma Construction Service Contract ("Contract") is made and entered into as of [Date], by and between:

Contractor: [Contractor Full Legal Name], with a business address at [Contractor Business Address], phone number [Contractor Phone Number], Oklahoma Construction Industries Board License Number (if applicable) [Contractor License Number].

Client (Owner): [Client Full Legal Name], with a business address at [Client Business Address], phone number [Client Phone Number].

1. Project Description

Project Location: [Project Exact Location]

Property Legal Description: [Property Legal Description]

Intended Use: [Project Intended Use]

Scope of Work: [Detailed Scope of Work broken down by trade, phases, materials, methods, and quality standards].

Reference Documents: This Contract includes all attached construction documents, including architectural/engineering plans, permits, and any applicable Oklahoma code compliance certificates (collectively, "Construction Documents"). The Contractor shall perform the Work in accordance with the Construction Documents.

2. Permits and Approvals

The following approvals from Oklahoma state, county, or municipal authorities are required:

[Permit/Approval Type]: Responsibility: [Contractor/Client]; Payment: [Contractor/Client]

[Permit/Approval Type]: Responsibility: [Contractor/Client]; Payment: [Contractor/Client]

3. Project Schedule

Start Date: [Start Date]

Substantial Completion Date: [Substantial Completion Date]

Final Completion Date: [Final Completion Date]

Milestones:

[Milestone Description]: Completion Criteria: [Completion Criteria]

4. Work Conditions

Working Hours: [Working Hours]

Site Access: [Site Access Protocols]

Jobsite Safety: The Contractor shall comply with all applicable Oklahoma Occupational Safety and Health regulations.

Waste Removal: The Contractor is responsible for removal of waste, hazardous materials, and environmental protections per Oklahoma Department of Environmental Quality rules.

5. Payment Terms

Total Contract Price: [Total Contract Price]

Option A: Fixed Price of [Dollar Amount].

Option B: Cost-Plus Fee. Cost of Work plus a fee of [Percentage]% or [Dollar Amount].

Option C: Time and Materials. Billed at hourly rates of [Rates] plus cost of materials.

Schedule of Values: [Schedule of Values]

Payment Schedule: [Milestone or Progress Payment Schedule]

Required Documentation: Pay applications, lien waivers, and Oklahoma sales/use tax compliance documentation for materials.

Retainage:

Option A: Retainage of [Percentage]% will be withheld from each progress payment.

Option B: No Retainage will be withheld.

Retainage Release: Partial and final retention release shall be in accordance with Oklahoma statutes.

6. Change Orders

All changes to the Scope of Work must be documented in a written Change Order, detailing pricing, timing, and specifications.

Approval: Change Orders must be approved by both the Contractor and Client.

Dispute Resolution: Disputes regarding Change Orders shall be resolved in accordance with Oklahoma construction industry customs and laws.

7. Responsibilities

Materials: [Contractor/Client] is responsible for providing and paying for materials.

Equipment: [Contractor/Client] is responsible for providing and paying for equipment.

Labor: The Contractor is responsible for providing all labor.

Subcontractors: The Contractor is responsible for all subcontractors.

Insurance:

The Contractor shall maintain workers' compensation insurance as required by Oklahoma law.

The Contractor shall maintain liability insurance with minimum coverage of [Dollar Amount].

The Contractor shall maintain builder’s risk coverage. Certificates shall name [Parties] as additional insureds.

8. Licensing and Registration

The Contractor shall comply with all applicable Oklahoma statutes relating to construction licensing and registrations, including holding a valid Oklahoma Construction Industries Board license as required by trade.

For residential projects, the Contractor acknowledges compliance with the Homebuilders and Remodeling Act.

9. Lien Provisions

The Contractor shall provide preliminary lien notices to the Owner according to Oklahoma’s pre-lien notification laws (§42 O.S. 142.1 et seq.).

The Owner has the right to withhold payment until proper lien waivers are provided.

Oklahoma mechanics’ lien rights, procedures for contesting or enforcing liens, and timelines for recording/releases shall apply.

10. Defective Work and Warranty

Defective Work: The Contractor shall correct any defective work.

Warranty Period: [Number] year(s) from the date of Substantial Completion.

Scope of Warranty: Covers materials and labor.

Remedies for Breach: Shall include state-mandated consumer protections for residential construction (if applicable).

11. Dispute Resolution

Disputes shall be resolved through:

Option A: Negotiation

Option B: Non-binding mediation

Option C: Arbitration

Governing Law: The laws of the State of Oklahoma shall govern this Contract.

Venue: The venue for any legal action shall be the county where the project is located.

12. Compliance with Codes

The Contractor shall comply with all Oklahoma environmental, safety, and building codes and ordinances.

The Contractor shall remedy any code violations at no extra cost to the Owner.

13. Termination

Termination for Cause: Either party may terminate the Contract for cause, including nonpayment, breach of safety rules, or material default.

Termination for Convenience: The Owner may terminate the Contract for convenience with [Number] days' written notice.

Payment upon Termination: The Contractor shall be paid for work performed to date plus reasonable demobilization expenses.

14. Subcontractors and Suppliers

All subcontractors and suppliers must be licensed and insured to Oklahoma standards.

The Contractor is responsible for coordinating all subcontractors and suppliers on site.

15. Indemnification

The Contractor shall indemnify the Owner, architect/engineer, and any lender for losses arising from Contractor negligence, willful misconduct, or code violations, subject to the limits of Oklahoma’s anti-indemnification statute.

16. Force Majeure

Neither party shall be liable for delays caused by force majeure events, including extreme Oklahoma weather, acts of God, strikes, government actions, or material shortages.

The affected party shall provide prompt notification and mitigate damages.

17. Confidentiality

The Contractor shall maintain confidentiality regarding project plans, proprietary construction methods, or Owner data.

18. Unforeseen Conditions

Procedures for handling unforeseen conditions (e.g., discovery of hazardous materials or archaeological finds) shall comply with Oklahoma statutes and regulations.

19. Intellectual Property

The Owner shall have the right to use project plans and records.

20. Owner-Provided Items

[Description of Owner-Provided Materials/Utilities/Site Access]. The consequences of Owner-caused delays are [Consequences].

21. Equal Opportunity

The Contractor shall comply with Oklahoma anti-discrimination and equal opportunity laws.

22. Notices

All notices must be in writing and delivered by [Mail/Email/Certified Delivery] to the addresses listed in this Contract.

23. General Provisions

Severability: If any provision of this Contract is held invalid, the remaining provisions shall remain in effect.

Merger Clause: This Contract constitutes the entire agreement between the parties.

Amendments: All amendments must be in writing and signed by both parties.

24. Oklahoma-Specific Disclosures

[Oklahoma-specific consumer protection disclosures and any required statutory notices (e.g., right to cancel, disclosures for residential projects)]

25. Compliance with Law

This Contract shall conform to all applicable Oklahoma statutes and local ordinances and shall be modified as required by subsequent changes in Oklahoma law.

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

Contractor:

____________________________

[Contractor Full Legal Name]

____________________________

Signature

Client (Owner):

____________________________

[Client Full Legal Name]

____________________________

Signature

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