Oregon construction service contract template

Oregon Construction Service Contract

This Oregon Construction Service Contract (the “Agreement”) is made and entered into as of this [Date] by and between [Contractor Legal Business Name], a [State] [Entity Type, e.g., LLC] with its principal place of business at [Contractor Address] (“Contractor”), and [Client Name], residing at [Client Address] (“Owner”).

Contractor’s CCB License Number: [CCB License Number]

1. Project Description

The Contractor agrees to provide construction services for the project described below (the “Project”):

• Location of Project: [Property Legal Address], Tax Lot Number: [Tax Lot Number]
• Nature of Work:
  • Option A: New Build
  • Option B: Remodel
  • Option C: Repair
  • Option D: Specific Trade Services (Describe): [Description of Specific Trade Services]

2. Architectural and Engineering Specifications

The Project shall be constructed in accordance with the following architectural and engineering specifications:

• References to Stamped Drawings: [Drawing References]
• Soil Reports: [Soil Report References]
• Structural Calculations: [Structural Calculation References]
• Materials Standards: [Material Standards References]
• Project Plans Approved by Permitting Authorities: [Permit Authority]

3. Contractor's Licenses, Bonding, and Insurance

Contractor represents and warrants that it is duly licensed, bonded, and insured in compliance with Oregon Construction Contractors Board regulations (ORS Chapter 701).

• Option A: Contractor provides proof of workers’ compensation insurance. Policy Number: [Policy Number]
• Option B: Contractor provides proof of general liability insurance. Policy Number: [Policy Number]

4. Consumer Protection Notices

Contractor acknowledges that it has provided the Owner with the state-mandated consumer protection notice and the “Information Notice to Owner About Construction Liens” as required under ORS 701.330 and ORS 87.093.

5. Deliverables and Warranties

Contractor warrants that all deliverables will be completed in a workmanlike manner, conforming to Oregon’s implied warranty of good workmanship standards.

• Warranty Duration: [Number] year(s) from the date of substantial completion.

6. Subcontractors

Contractor may utilize the following subcontractors:

• [Subcontractor Name 1], Scope of Work: [Subcontractor 1 Scope], CCB License Number: [CCB License Number 1], Liability Allocation: [Liability Allocation 1]
• [Subcontractor Name 2], Scope of Work: [Subcontractor 2 Scope], CCB License Number: [CCB License Number 2], Liability Allocation: [Liability Allocation 2]

7. Project Schedule

• Commencement Date: [Date]
• Substantial Completion Date: [Date]
• Anticipated Phases and Milestones: [Project Phases and Milestones]
• Provisions for Weather or Regulatory Delays: Delays due to inclement weather or regulatory actions will extend the completion date by a period equal to the duration of the delay. Contractor shall provide written notice of such delays within [Number] days.

8. Contract Price and Payment Terms

• Itemized Contract Price: [Dollar Amount]
  • Labor: [Dollar Amount]
  • Materials: [Dollar Amount]
  • Equipment: [Dollar Amount]
  • Permits: [Dollar Amount]
  • Disposal Fees: [Dollar Amount]
  • Overhead: [Dollar Amount]
  • Profit: [Dollar Amount]
  • Changes in Scope: Priced according to section 9 below.
  • Oregon State and Local Taxes: [Dollar Amount]
• Payment Terms:
  • Deposit: [Dollar Amount] (No more than the legal maximum if applicable).
  • Progress Billing Schedule: [Payment Schedule] (e.g., based on percentage completion or specific milestones).
  • Retainage: [Percentage]% (Subject to Oregon law ORS 701.620 if applicable).
  • Interest on Late Payments: [Percentage]% per month on overdue amounts.
  • Lien Waiver Requirements: Conditional lien waivers required with each progress payment, unconditional lien waivers required with final payment.
  • Final Payment/Tripartite Release Procedures: Final payment due within [Number] days of substantial completion and punch list sign-off.

9. Change Orders

All change orders must be submitted in writing using the form attached as Exhibit A. Changes will be priced based on [Pricing Method, e.g., time and materials, fixed fee] and may impact the project schedule. Referencing ORS 701.425 if applicable on residential contracts.

10. Permits and Inspections

Contractor is responsible for obtaining and posting all required permits and coordinating inspections with the city/county.

• List of required permits: [List of Permits]

11. Site Access and Work Hours

• Site Access: Contractor shall have reasonable access to the project site during normal business hours.
• Work Hours: [Work Hours]

12. Hazardous Materials

Procedures for handling hazardous materials (such as asbestos or lead paint) in accordance with Oregon Health Authority and DEQ regulations, including allocations of risk and notification requirements.

• [Describe Procedure for Hazardous Materials Discovery]

13. Safety and Jobsite Security

Contractor is responsible for maintaining a safe work environment in compliance with OSHA standards.

• Responsibilities for Injuries, Theft, or Property Damage: [Allocation of Responsibilities]

14. Insurance and Bonding

Contractor shall maintain insurance and bonding as required by Oregon law.

• Limitations and Exclusions: [Limitations and Exclusions]
• Certificate and Notice Procedures: Certificates of insurance to be provided upon request, with [Number] days' notice of cancellation or modification.

15. Indemnification

Comprehensive indemnification and hold harmless clauses tailored to Oregon law, including restrictions on indemnity for one party’s sole negligence, as limited by ORS 30.140.

• [Specific Indemnification Language]

16. Dispute Resolution

Any disputes arising under this Agreement shall be resolved as follows:

• Prioritizing Mediation: The parties agree to attempt to resolve any disputes through mediation in accordance with Oregon statutes such as ORS 36.600 et seq.
• Arbitration/Litigation: If mediation is unsuccessful, the parties may pursue arbitration or litigation.
• Jurisdiction and Governing Law: Jurisdiction shall be in the county where the project is located and governed by Oregon law.

17. Termination and Suspension

Termination and suspension rights and processes, including for default, force majeure, lack of payment, or suspension by regulatory authority, with cure notice periods and demobilization cost calculation.

• [Detailed Termination and Suspension Clauses]

18. Assignment

Assignment/subcontracting restrictions, consistent with “anti-assignment” language if desired, and compliance with prevailing wage laws on public projects.

• [Assignment Restrictions Clause]

19. Notices

All notices under this Agreement shall be in writing and sent to the following addresses:

• Contractor: [Contractor Address]
• Owner: [Client Address]

20. Construction Liens

Detailed terms on construction liens, statutory notice requirements, owner’s right to withhold payment until delivery of conditional/unconditional lien waivers, and placement and release of any mechanics’ liens as per ORS Chapter 87.

• [Detailed Liens Clause]

21. Documentation

Documentation and retention of as-built drawings, operation manuals, warranties for equipment or materials, and final punch list completion.

• [Document Retention Details]

22. Client Responsibilities

Description of client furnished materials or access responsibilities, owner’s inspections and approvals, and any limitations on the scope due to zoning, easements, or environmental restrictions.

• [Client Furnished Materials/Access]

23. Nonperformance and Remedies

Provisions for nonperformance, default, and remedies, including specific Oregon penalty provisions and limitations of damages, if any.

• [Nonperformance Clause]

24. Defective Work

Clause that addresses the handling of disputes relating to defective or non-conforming work, including right to withhold payment or require correction, and Oregon’s statute of repose limitations.

• [Defective Work Clause]

25. Energy and Sustainability Codes

Acknowledgment of compliance with Oregon energy and sustainability codes if applicable, such as the Oregon Reach Code for green construction projects.

• [Energy Code Compliance Clause]

26. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral. Any modifications to this Agreement must be in writing and signed by both parties.

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

____________________________
[Contractor Printed Name]
[Contractor Title/Authority]

____________________________
[Client Printed Name]