South Carolina construction independent contractor agreement template
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How South Carolina construction independent contractor agreement Differ from Other States
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South Carolina uses a specific statutory test focusing on the right to control and independence in contractor relationships, differing from the ABC test used in some other states.
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State law requires certain construction contractors to be licensed for specific trades, affecting contract enforceability if the contractor is unlicensed.
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South Carolina mandates compliance with strict workers’ compensation laws for construction contractors, even when classified as independent.
Frequently Asked Questions (FAQ)
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Q: Is a written independent contractor agreement required in South Carolina for construction projects?
A: While not legally required, a written agreement is strongly recommended to ensure both parties clearly understand their rights and obligations.
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Q: Do independent contractors in South Carolina construction projects need a license?
A: Yes, contractors performing certain trades or work exceeding specified thresholds must have the appropriate state license.
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Q: Are independent contractors responsible for their own workers’ compensation in South Carolina?
A: Generally, yes. Independent contractors must provide their own workers’ compensation or risk being classified as employees under state law.
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South Carolina Construction Independent Contractor Agreement
This South Carolina Construction Independent Contractor Agreement (the “Agreement”) is made and entered into as of this [Date] (the “Effective Date”), by and between: * [Client Name], residing at [Client Address] (the “Client”), and, if applicable, holding South Carolina Contractor's License number [License Number]. Contact details for the Client are: Phone: [Client Phone Number], Email: [Client Email Address]. and * [Contractor Name], residing at [Contractor Address], and/or doing business as [Business Name], with Federal Employer Identification Number (FEIN) [FEIN] or Social Security Number (SSN) [SSN], holding South Carolina Contractor's License number [License Number] (the “Contractor”). Contact details for the Contractor are: Phone: [Contractor Phone Number], Email: [Contractor Email Address].1. Scope of Services
* Option A: The Contractor shall perform the following construction services (the “Services”) for the Client: [Detailed description of services, including project phases, location, blueprints, technical specifications, permits, and deliverables]. * Option B: The Contractor shall perform the Services as detailed in Exhibit A, attached hereto and incorporated by reference. * The Services shall be performed at the following location: [Project Location]. * The Contractor shall perform the Services in a workmanlike manner in accordance with industry standards in South Carolina and in compliance with all applicable municipal, state, and South Carolina Building Code requirements.2. Materials and Equipment
* Option A: The Contractor shall provide all materials and equipment necessary to perform the Services. All materials shall meet the following quality standards: [Detailed standards]. * Option B: The Client shall provide all materials and equipment necessary to perform the Services. * Option C: The Contractor shall provide the following materials and equipment: [List of Contractor-Provided Materials], and the Client shall provide all other materials and equipment. * The Contractor is responsible for the proper storage and disposal of waste materials in compliance with OSHA and South Carolina DHEC regulations.3. Payment
* Option A: Fixed Price: The Client shall pay the Contractor a fixed price of [Dollar Amount] for the complete performance of the Services. * Option B: Time & Materials: The Client shall pay the Contractor at a rate of [Dollar Amount] per hour, plus the cost of all materials. The Contractor shall provide detailed invoices. * Option C: Cost-Plus: The Client shall pay the Contractor the cost of all materials and labor, plus a fee of [Percentage]%. * Progress payments shall be made according to the following schedule: [Detailed payment schedule tied to milestones or inspection approvals]. * Retainage: The Client shall retain [Percentage]% of each progress payment, as permitted by South Carolina law. * Final payment shall be due upon completion of all Services, subject to a completed punch list and receipt of lien releases from the Contractor and all subcontractors. * Invoices shall be submitted to [Invoice Submission Instructions]. * Late payments shall accrue interest at a rate of [Percentage]% per month, in accordance with the South Carolina Prompt Payment Act.4. Independent Contractor Status
* The Contractor is an independent contractor and not an employee of the Client. * The Contractor is solely responsible for all payroll taxes, self-employment taxes, workers’ compensation (the Contractor confirms they [are/are not] required to carry workers’ compensation insurance per South Carolina law), and unemployment insurance. * The Contractor shall provide proof of required insurance coverage upon request.5. Indemnification and Liability
* The Contractor shall indemnify and hold harmless the Client from and against any and all claims, losses, damages, liabilities, and expenses (including attorney's fees) arising out of or relating to the Contractor’s performance of the Services. * The Contractor shall maintain the following insurance coverage: * General liability insurance in the amount of [Dollar Amount]. * Automobile liability insurance in the amount of [Dollar Amount]. * Workers’ compensation insurance as required by South Carolina law. * Option A: The Client shall be listed as an additional insured on the Contractor’s general liability policy. * The Contractor waives all rights of subrogation against the Client. * The Contractor's liability shall be limited to the amount of [Dollar Amount]. * The Contractor is responsible for correcting any defects in workmanship for a period of [Number] years following completion of the Services.6. Change Orders
* Any changes to the scope of Services, timeline, or cost must be authorized in writing via a change order signed by both parties. * The change order shall detail the specific changes and their impact on the project.7. Mechanic's Liens
* The Contractor has the right to file a mechanic's lien in accordance with the South Carolina Mechanic’s Lien Law in the event of non-payment. * The Client has the right to require conditional and final lien waivers upon progress and final payments. * In the event of a disputed amount, the Contractor shall take reasonable steps to prevent the filing of an improper lien.8. Compliance with Laws
* The Contractor shall comply with all applicable federal, state, county, and municipal laws and regulations in South Carolina, including building permits, environmental and safety regulations, and licensing requirements.9. Confidentiality and Non-Solicitation
* Option A: The Contractor shall keep all project plans and client data confidential. * Option B: The Contractor shall not solicit the Client's employees or customers for a period of [Number] years following completion of the Services.10. Subcontractors
* The Contractor may use subcontractors to perform portions of the Services, provided that the subcontractors are properly licensed, insured, and in compliance with all applicable laws. * The Contractor shall ensure that all subcontractor agreements are consistent with the terms of this Agreement. * The Contractor shall provide proof of subcontractor licensing and insurance upon request.11. Project Supervision and Site Access
* The Contractor shall be responsible for supervising the performance of the Services. * The Contractor shall adhere to all worksite rules and safety regulations. * The Client shall have the right to inspect the worksite upon reasonable notice.12. Delays
* In the event of delays due to unforeseen site conditions or force majeure events, the Contractor shall notify the Client as soon as reasonably possible. * The parties shall work together in good faith to mitigate the impact of any delays.13. Dispute Resolution
* The parties shall attempt to resolve any disputes through negotiation and direct dialogue. * If a resolution cannot be reached, the parties agree to submit the dispute to mediation or arbitration in the state of South Carolina, per location of the project. * This Agreement shall be governed by and construed in accordance with the laws of the State of South Carolina.14. Notices
* All notices and other communications shall be in writing and shall be deemed to have been duly given when delivered personally, sent by certified mail, or sent by email with read receipt to the following addresses: * To the Client: [Client Address], [Client Email Address] * To the Contractor: [Contractor Address], [Contractor Email Address]15. Term and Termination
* This Agreement shall commence on the Effective Date and shall continue until the Services are completed, unless terminated earlier as provided herein. * 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. In such event, the Contractor shall be compensated for all Services performed up to the date of termination. * Upon termination, the Contractor shall promptly return all Client property and documentation.16. Ownership of Documents
* The Client shall retain ownership of all construction documents, plans, and intellectual property created in connection with the Services.17. Record-Keeping and Audit
* The Contractor shall maintain accurate records of all costs and expenses incurred in connection with the Services. * The Client shall have the right to audit the Contractor’s records upon reasonable notice.18. Anti-Discrimination
* The Contractor shall comply with all applicable anti-discrimination, Equal Employment Opportunity, and immigration laws.19. Amendment and Waiver
* This Agreement may be amended only by a written instrument signed by both parties. * No waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom the waiver is sought to be enforced.20. Entire Agreement
* This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written. IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. ____________________________ [Client Name] ____________________________ [Contractor Name] Witness: ____________________________ Witness: ____________________________