Rhode Island construction service contract template

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How Rhode Island construction service contract Differ from Other States

  1. Rhode Island imposes specific licensing requirements for contractors and subcontractors, ensuring compliance prior to work commencement.

  2. State law mandates inclusion of detailed mechanics’ lien rights and a homeowner's right to cancel within three business days.

  3. Construction contracts in Rhode Island must comply with unique state insurance and bonding standards that differ from most other states.

Frequently Asked Questions (FAQ)

  • Q: Is a written contract required for all construction projects in Rhode Island?

    A: Yes, for projects over $1,000, a written contract is required, detailing project scope, price, and timelines.

  • Q: Are there any cancellation rights for homeowners in Rhode Island construction contracts?

    A: Yes, homeowners have the right to cancel the contract within three business days of signing, per Rhode Island law.

  • Q: Do contractors need a license to perform construction work in Rhode Island?

    A: Yes, all contractors and subcontractors must be licensed with the Rhode Island Contractors’ Registration and Licensing Board.

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Rhode Island Construction Service Contract

Contract Title: [Contract Title]

Effective Date: [Date]

1. Parties

  • Contractor:
    • Name: [Contractor Name]
    • Address: [Contractor Address]
    • Phone: [Contractor Phone]
    • Email: [Contractor Email]
    • Rhode Island Contractor Registration Number: [Contractor Registration Number] (If Applicable)
    • Rhode Island License Number: [Contractor License Number] (If Applicable)
  • Client:
    • Name: [Client Name]
    • Address: [Client Address]
    • Phone: [Client Phone]
    • Email: [Client Email]

2. Project Description

  • Project Location: [Property Address and Legal Description] (Rhode Island)
  • Scope of Work: Detailed description of all work to be performed. Include drawings, specifications, and reference to attached plans/architectural/engineering documents. Identify any subcontracted work and Rhode Island-licensed subcontractors.
    • Option A: Detailed itemized list.
    • Option B: Reference to Exhibit A (Scope of Work document).
    • Option C: Cost-plus arrangement using an open book accounting system with invoices submitted regularly, inclusive of all receipts, labor breakdowns, and subcontractors utilized.

3. Rhode Island Codes and Permits

  • The Contractor shall comply with all current Rhode Island building codes, state and local permitting requirements, inspection schedules, and zoning regulations.
    • Option A: Contractor responsible for obtaining all necessary permits.
    • Option B: Client responsible for obtaining permits. (Specify which permits).
    • Option C: Shared responsibility (clearly define each party's responsibilities).

4. Project Schedule

  • Start Date: [Date]
  • Estimated Completion Date: [Date]
  • Milestone Deadlines: [List Milestone Deadlines]
  • Change Orders: All changes to the schedule must be in writing and signed by both parties.
    • Contractor will notify the owner of delays within [NUMBER] days.

5. Materials and Workmanship

  • All materials, products, equipment, and standards of workmanship shall meet Rhode Island or local municipal standards. Specify brands, models, or grades as required.

6. Contract Price and Payment Schedule

  • Contract Price: [Dollar Amount]
    • Option A: Fixed Price
    • Option B: Cost-Plus (specify fee and any guaranteed maximum price)
    • Option C: Time and Materials (specify hourly rates and material markups)
    • Option D: Unit Price (specify price per unit of work completed)
  • Payment Schedule:
    • Deposit: [Dollar Amount] due upon signing.
    • Milestone Payments: [List Milestone Payments and Corresponding Completion Requirements]
    • Retainage: [Percentage] of each payment retained until substantial completion, in compliance with Rhode Island Prompt Payment law.

7. Invoicing

  • Invoices must be detailed and include all required information. Reference Rhode Island sales tax and applicable public works/prevailing wage requirements.

8. Bonding and Insurance

  • Contractor shall maintain liability insurance and workers’ compensation coverage per Rhode Island law. Provide proof of coverage with Rhode Island-compliant endorsements.
    • Option A: Specify minimum coverage amounts.
    • Option B: Reference Exhibit B (Insurance Requirements document).

9. Client Obligations

  • The Client shall provide site access, utility provision, and any pre-construction deliverables. Include required property surveys or environmental assessments in accordance with Rhode Island requirements.

10. Permitting and Inspections

  • Clarify responsibilities for permitting and inspections. Ensure compliance with Rhode Island Department of Labor and Training, local fire safety, accessibility, and energy code requirements.

11. Unforeseen Conditions

  • Procedures for identifying unforeseen conditions, hazardous materials (including lead, asbestos, or soil contamination), and the required notification and remediation protocols.

12. Change Orders

  • Procedure for modifications to the scope of work, with written signed change orders detailing timeline, cost, and regulatory approval process.

13. Warranties

  • Standards for workmanship, warranties covering the Rhode Island-mandated one-year minimum for new construction or major renovations, and any manufacturer warranties.

14. Punch List and Final Inspection

  • Punch list procedures, final inspection, and acceptance processes, with reference to applicable municipal sign-off or certificate of occupancy requirements.

15. Substantial and Final Completion

  • Requirements for lien releases or waivers. Comply with Rhode Island’s mechanics’ lien statutes for notice of commencement and rights of parties to file or contest claims.

16. Termination

  • Termination provisions, covering for-cause and for-convenience scenarios, required notice periods, cure rights, and Rhode Island statutory obligations for pre-termination dispute resolution or notice.

17. Dispute Resolution

  • Dispute resolution procedures, including mandatory negotiation, mediation, and binding arbitration or litigation, specifying Rhode Island state law and the exclusive jurisdiction of Rhode Island courts.
    • Option A: Mediation followed by arbitration.
    • Option B: Mediation followed by litigation.
    • Option C: Binding Arbitration.

18. Labor Standards

  • Compliance with all applicable Rhode Island and federal labor standards, including OSHA safety requirements, child labor laws, anti-discrimination, and prevailing wage statutes for public projects.

19. Site Safety and Environmental Protection

  • Contractor’s obligations regarding site safety, security, temporary facilities, and Environmental Protection Agency (EPA) stormwater management or erosion control plans required under Rhode Island law.

20. Risk Allocation and Indemnification

  • Allocation and transfer of risk during construction, indemnity language in favor of both parties as permitted by Rhode Island law, and process for indemnification against third-party claims.

21. Confidentiality

  • Confidentiality obligations if any proprietary design or client information is disclosed.

22. Ownership of Documents

  • Ownership of plans, drawings, and intellectual property upon contract completion or termination.

23. Disclosures

  • All mandatory disclosures required under Rhode Island Home Improvement statutes or consumer protection laws, including the three-day right of rescission if applicable.

24. Force Majeure

  • Force majeure, suspension, and delay procedures, including defined causes, documentation requirements, and remedies for each party.

25. Assignment

  • Process for handling assignment or subcontracting of the contract, requiring owner consent where necessary.

26. Signatures

  • Contractor Signature: _________________________ Date: [Date]
  • Client Signature: _________________________ Date: [Date]
  • Notary Public: (if required)

27. Local Requirements

  • Compliance with any local historical preservation requirements or additional municipal regulations specific to the Rhode Island project location.

28. Severability and Integration

  • All provisions are severable and this agreement constitutes the full agreement between the parties.

29. Modification

  • All modifications to this agreement must be in writing and signed by both parties.

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