Pennsylvania construction service contract template

Pennsylvania Construction Service Contract

This Pennsylvania Construction Service Contract (the “Agreement”) is made and entered into as of this [Date] by and between:

• [Contractor Full Legal Name], a [State of Incorporation/Organization] [Entity Type, e.g., corporation, LLC], with a principal place of business at [Contractor Address], Pennsylvania Contractor Registration Number [Contractor Registration Number], and license number [Contractor License Number] (hereinafter referred to as "Contractor"),

and

• [Client Full Legal Name], residing at [Client Address] (hereinafter referred to as "Owner").

1. Project Description

• Option A: The Contractor shall perform construction services for the [Project Name], which involves [Construction Scope: new build, renovation, repair] at the following location: [Site Location with Legal Property Description].

• Option B: The project encompasses the work as detailed in the approved design plans and specifications dated [Date], referenced as [Drawing Numbers], and prepared by [Architect/Engineer Name].

• The project shall comply with the current Pennsylvania Building Code and all applicable municipal ordinances.

2. Permits and Approvals

• Option A: The Contractor shall be responsible for obtaining and paying for all necessary Pennsylvania state and local permits and approvals required for the project, including but not limited to building permits, zoning permits, and inspections.

• Option B: The Owner shall be responsible for obtaining and paying for all necessary Pennsylvania state and local permits and approvals required for the project, including but not limited to building permits, zoning permits, and inspections. The Contractor will assist the Owner in obtaining these permits.

• Responsibility for compliance with Pennsylvania municipal ordinances lies with [Contractor/Owner].

3. Scope of Work

• Option A: The Contractor shall perform all work as described in Exhibit A, attached hereto and incorporated herein, which details all included and excluded tasks, materials, labor, and equipment.

• Option B: The Scope of Work includes the following:

• [Specific Task 1]

• [Specific Task 2]

• [Specific Task 3]

• The Contractor will utilize the following designated subcontractors: [List of Subcontractors]. All submitt mitals and shop drawings must be approved by the Owner/Architect prior to implementation.

4. Construction Schedule

• Option A: The construction schedule is detailed in Exhibit B, attached hereto and incorporated herein, outlining the commencement date, substantial completion date, and timelines for each project phase.

• Option B: The project shall commence on [Commencement Date] and achieve substantial completion by [Substantial Completion Date].

• The Contractor shall provide written notice of any potential delays according to Pennsylvania change order procedures.

5. Contract Price and Payment

• Option A: The contract price is a fixed sum of [Dollar Amount].

• Option B: The contract price is cost-plus [Percentage]%.

• Option C: The contract price is based on unit prices as outlined in Exhibit C.

• The payment schedule is as follows:

• [Milestone 1: Description and Payment Amount]

• [Milestone 2: Description and Payment Amount]

• [Milestone 3: Description and Payment Amount]

• Retainage shall be [Percentage]%, in compliance with the Pennsylvania Contractor and Subcontractor Payment Act. All invoices must be submitted to [Invoice Recipient] and must include [Invoice Requirements]. Payment disputes will be resolved according to Pennsylvania law. Prompt payment deadlines will be followed.

6. Pennsylvania Consumer Protection (HICPA)

• Option A: This project is subject to the Pennsylvania Home Improvement Consumer Protection Act (HICPA). The Contractor’s HICPA registration number is [HICPA Registration Number]. The HICPA notice is attached as Exhibit D.

• Option B: This project is not subject to the Pennsylvania Home Improvement Consumer Protection Act (HICPA) because [Reason for Exemption, e.g., new construction].

7. Change Orders

• All changes to the scope of work, contract price, or construction schedule must be documented in a written change order signed by both the Contractor and the Owner.

• Pricing for change orders shall be determined by [Method, e.g., time and materials, agreed lump sum]. Time adjustments shall be [Method, e.g., day-for-day extension].

8. Materials

• All materials shall meet the following standards: [List of Standards].

• Specified brands are [List of Brands] or performance requirements are [List of Performance Requirements]. If applicable, materials must comply with Pennsylvania Department of Transportation (PennDOT) standards.

• The Contractor is responsible for handling or replacing defective materials. Sustainable material use will be prioritized [If applicable, e.g., for public contracts or green standards].

9. Insurance

• The Contractor shall maintain the following insurance coverage:

• General liability insurance with a minimum coverage of [Dollar Amount].

• Workers’ compensation insurance in compliance with the Pennsylvania Workers’ Compensation Act.

• Builder’s risk insurance with a coverage of [Dollar Amount].

• Auto liability insurance with a minimum coverage of [Dollar Amount].

• The Contractor shall provide certificates of insurance naming the Owner as an additional insured before work commences.

10. Subcontractors

• The Contractor shall verify the qualifications and worker status of all subcontractors and ensure they possess valid Pennsylvania contractor licenses, if required.

11. Site Safety

• The Contractor is responsible for site safety and compliance with OSHA/Pennsylvania Labor and Industry safety regulations, including accident reporting, traffic control, signage, fencing, and hazardous materials handling.

12. Warranty

• The Contractor warrants the work against defects in workmanship and materials for a period of [Number] year(s) from the date of substantial completion. This warranty covers [Scope of Coverage, e.g., labor, materials, structural].

• Warranty claims must be submitted in writing to the Contractor at [Warranty Claim Contact Information]. Exclusions from this warranty include [List of Exclusions].

13. Lien Rights

• The Owner is hereby notified that the Contractor has the right to file a mechanics’ lien against the property in accordance with Pennsylvania’s Construction Lien Law. The Contractor will provide statutory notices and waivers of lien upon payment. For public projects, payment bonds will be required as per Pennsylvania statutes.

14. Dispute Resolution

• Any disputes arising under this Agreement shall be resolved through good faith negotiation. If negotiation fails, the parties agree to [Mediation/Arbitration] under Pennsylvania law. The venue for any unresolved matters shall be the courts of [County Name] County, Pennsylvania.

15. Force Majeure

• Neither party shall be liable for delays caused by events beyond their reasonable control, including but not limited to acts of God, war, strikes, or governmental regulations (force majeure). The affected party shall provide prompt written notice and shall be entitled to a reasonable extension of time.

16. Termination

• Option A: Termination for Cause: Either party may terminate this Agreement for cause upon [Number] days written notice if the other party materially breaches this Agreement.

• Option B: Termination for Convenience: The Owner may terminate this Agreement for convenience upon [Number] days written notice.

• Option C: Termination upon Owner’s Default: If the Owner fails to make payments as outlined, the Contractor may terminate the agreement upon [Number] days written notice.

• Upon termination, the Contractor shall be entitled to payment for all work performed to date and for reasonable costs incurred as a result of the termination.

17. Cleanup

• The Contractor shall be responsible for cleanup, debris removal, and post-project site restoration in accordance with Pennsylvania Environmental Protection statutes. Hazardous/regulated waste will be managed appropriately.

18. Equal Opportunity and Prevailing Wage

• If public funding is involved, the Contractor shall comply with all applicable equal employment opportunity, anti-discrimination, and prevailing wage requirements, including the Pennsylvania Prevailing Wage Act.

19. Confidentiality

• The parties agree to keep confidential any proprietary plans or methods. The Contractor shall obtain the Owner’s approval before publicizing project photos or details.

20. Intellectual Property

• [Option A: Owner Ownership]: All design rights, drawings, and BIM data created by the Contractor or its consultants shall be the property of the Owner.

• [Option B: Contractor Ownership]: All design rights, drawings, and BIM data created by the Contractor or its consultants shall remain the property of the Contractor, subject to the Owner's right to use them for the Project.

21. Unforeseen Conditions

• Procedures for resolving unforeseen site conditions, encountering hazardous materials, or existing structure defects shall be governed by Pennsylvania construction standards.

22. Completion Documentation

• The Contractor shall provide as-built drawings, operation manuals, warranty certificates, and Pennsylvania code inspection approvals before final payment.

23. Pennsylvania Business and Licensing Obligations

• Both parties acknowledge and affirm their understanding of Pennsylvania-specific business and licensing obligations, including penalties for operating unregistered or unlicensed.

24. Record Retention

• The Contractor and Owner shall retain project records for [Number] years in compliance with Pennsylvania law and possible audit requirements.

25. Representations and Warranties

• All representations and warranties made by the Contractor and Owner are clearly stated and legally compliant, with remedies and liabilities for false statements.

26. General Provisions

• This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings. No oral modifications shall be binding. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. This Agreement may not be assigned by either party without the prior written consent of the other party. All notices required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally or sent by certified mail, return receipt requested, to the addresses set forth above. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania.

27. Custom Provisions

• [Include any provisions specific to this project, such as utility work, environmental remediation, multi-prime contracting peculiar to Pennsylvania public work, and any county or municipality-specific requirements.]

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

[Contractor Full Legal Name]

By: [Contractor Signature]

Name: [Contractor Printed Name]

Title: [Contractor Title]

[Client Full Legal Name]

By: [Client Signature]

Name: [Client Printed Name]

Title: [Client Title, e.g., Owner]