Pennsylvania construction independent contractor agreement template

Pennsylvania Construction Independent Contractor Agreement

This Pennsylvania Construction Independent Contractor Agreement (the “Agreement”) is made and entered into as of this [Date], by and between [Client Name], residing at [Client Address] (the “Client”), and [Contractor Name], residing at [Contractor Address] and holding Pennsylvania Contractor Registration Number [Contractor PA Registration Number] (the “Contractor”).

1. Scope of Work

Option A: General Description

The Contractor shall perform the construction work described as follows: [Detailed Description of Work].

Option B: Specific Details

The work shall be performed at the following location: [Project Site Address].

Reference is made to the following blueprints and specifications, which are incorporated herein by reference: [Blueprints/Specifications Reference].

The work shall be performed in the following phases: [Work Phases].

Key milestones for project completion include: [Key Milestones].

Permitted work hours are: [Permitted Work Hours], in compliance with local ordinances.

2. Permits and Inspections

Option A: Contractor Responsibility

The Contractor is responsible for obtaining all necessary permits and scheduling inspections required by Pennsylvania state and local municipal codes.

Option B: Client Responsibility for Initial Permits

The Client will obtain the initial building permit. The Contractor is responsible for all subsequent inspections and permits required.

3. Materials and Equipment

Option A: Contractor Provides All

The Contractor shall provide all materials, labor, and equipment necessary to complete the work.

Option B: Shared Responsibility

The Contractor shall provide the following materials, labor, and equipment: [List of Contractor-Provided Items].

The Client shall provide the following materials: [List of Client-Provided Materials].

4. Quality, Workmanship, and Safety Standards

Option A: General Compliance

The Contractor shall perform all work in a good and workmanlike manner, in accordance with the Pennsylvania Uniform Construction Code (UCC) and relevant trade regulations.

Option B: Specific Standards

All work must adhere to the following specific standards: [List of Specific Standards].

The Contractor shall adhere to all OSHA and Pennsylvania Department of Labor & Industry safety rules and regulations.

5. Project Schedule

Option A: Completion Date

The project shall be substantially completed by [Date].

Option B: Milestone-Based Schedule

The project schedule, including milestones, is detailed in Exhibit A, attached hereto and incorporated herein.

Allowable delays include: [Allowable Delays, e.g., weather, change orders].

Liquidated damages for lateness shall be [Amount] per day.

6. Compensation and Payment

Option A: Lump Sum

The total compensation for the work shall be [Amount].

Option B: Progress Payments

The Contractor shall be paid in progress payments based on the following schedule: [Payment Schedule].

Invoicing procedure: [Invoicing Procedure].

Pennsylvania sales/use tax shall be handled as follows: [Sales/Use Tax Handling].

Retainage percentage shall be [Percentage], to be released upon [Conditions for Release].

Change order process: [Change Order Process].

Reimbursement of pre-approved expenses: [Reimbursement Terms].

Permitted deductions or withholdings: [Permitted Deductions].

7. Independent Contractor Status

The Contractor is an independent contractor and not an employee of the Client.

The Contractor is responsible for all federal and Pennsylvania state/local income tax, self-employment tax, and all insurance required by law.

The Contractor is not entitled to workers’ compensation coverage or employee benefits from the Client.

8. Insurance

Option A: Minimum Coverage

The Contractor shall maintain the following insurance coverage: general liability ([Amount]), builder’s risk ([Amount]), and contractor’s professional and auto liability ([Amount]).

Option B: Additional Insured

The Contractor shall maintain the following insurance coverage: general liability ([Amount]), builder’s risk ([Amount]), and contractor’s professional and auto liability ([Amount]).

The Contractor shall provide certificates of insurance naming the Client as an additional insured upon request.

9. Indemnification

The Contractor shall indemnify, defend, and hold the Client harmless for all losses or claims arising from the Contractor’s actions, negligence, violations of law, or non-compliance with environmental or safety laws.

10. Ownership of Work Product

Ownership of all work product (plans, reports, as-builts, intellectual property, site materials) transfers to the Client upon final payment.

11. Confidentiality

The Contractor shall maintain the confidentiality of all Client property and project information and shall not use such information for any other purpose.

12. Compliance with Laws

The Contractor shall comply with all applicable Pennsylvania and local building codes, construction licensing laws, HICPA requirements, and all other applicable laws and regulations.

13. Subcontractors

Option A: No Subcontractors

The Contractor shall not use any subcontractors without the prior written approval of the Client.

Option B: Subcontractor Requirements

All subcontractors must be pre-approved by the Client.

All subcontractors must provide proof of insurance and Pennsylvania licensure/registration.

The Contractor is responsible for payment to all subcontractors.

Subcontractors must adhere to the Pennsylvania Mechanic’s Lien Law for preliminary notice, lien release, and payment procedures.

14. Change Orders

All change orders must be in writing and approved by both the Client and the Contractor. The change order must include a description of the scope of the change, the price of the change, and the impact on the project schedule.

15. Site Access

The Client shall provide the Contractor with reasonable access to the project site.

16. Hazardous Materials

If hazardous materials are encountered at the project site, the Contractor shall immediately notify the Client. The handling and disposal of hazardous materials shall be performed in accordance with all applicable laws and regulations.

17. Workplace Compliance

The Contractor is responsible for all workplace compliance, proper licensing, payroll tax, employee classification, and safety training as required by Pennsylvania law.

18. Governing Law and Venue

This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. Venue for any disputes arising under this Agreement shall be in [County Name] County, Pennsylvania.

19. Dispute Resolution

Option A: Mediation

Any disputes arising under this Agreement shall be resolved first through negotiation and then, if necessary, through mediation.

Option B: Arbitration

Any disputes arising under this Agreement shall be resolved first through negotiation and then, if necessary, through binding arbitration in accordance with the rules of the American Arbitration Association.

20. Warranties

Option A: Statutory Warranty

The Contractor warrants that all work will be performed in a good and workmanlike manner and free from defects for a period of one year from the date of substantial completion, as required by the Pennsylvania Home Improvement Consumer Protection Act (HICPA).

Option B: Extended Warranty

The Contractor warrants that all work will be performed in a good and workmanlike manner and free from defects for a period of [Number] years from the date of substantial completion.

Procedures for claims and remediation of defects: [Warranty Claim Procedures].

21. Termination

Option A: Termination for Cause

Either party may terminate this Agreement for cause upon written notice to the other party.

Option B: Termination for Convenience

The Client may terminate this Agreement for convenience upon [Number] days’ written notice to the Contractor.

Final accounting, payment for work performed to date, and transfer of partially completed work and materials shall be handled as follows: [Termination Procedures].

22. Background Checks

If required by local ordinance, the Contractor shall ensure that background checks are performed on all workers.

23. Severability

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

24. Assignment

This Agreement may not be assigned by either party without the prior written consent of the other party.

25. Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Agreement due to causes beyond its reasonable control, including but not limited to acts of God, war, strikes, and weather conditions specific to Pennsylvania.

26. Entire Agreement

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

27. HICPA Compliance (If Applicable)

This contract complies with the Pennsylvania Home Improvement Consumer Protection Act (HICPA).

The Client has the right to cancel this contract within three (3) business days of signing it. See attached notice of cancellation form.

The Contractor is registered with the Pennsylvania Attorney General's Office.

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

[Client Name]

By: [Client Signature]

Title: [Client Title]

[Contractor Name]

By: [Contractor Signature]

Title: [Contractor Title]