South Dakota construction independent contractor agreement template

South Dakota Construction Independent Contractor Agreement

This South Dakota Construction Independent Contractor Agreement ("Agreement") is made and effective as of [Effective Date], by and between:

[Client Legal Business Name], residing at [Client Address], hereinafter referred to as "Client," and

[Contractor Legal Business Name], residing at [Contractor Address], holding South Dakota Contractor's Excise Tax License Number [Contractor License Number] (if applicable), hereinafter referred to as "Contractor."

Contact Information:

Client:

• Address: [Client Address]
• Phone: [Client Phone]
• Email: [Client Email]

Contractor:

• Address: [Contractor Address]
• Phone: [Contractor Phone]
• Email: [Contractor Email]

1. Scope of Work

• Option A: The Contractor shall perform the following construction services at the project location [Project Address and Legal Property Description]: [Detailed Description of Services, including site preparation, general or specialized construction, repair, remodeling, demolition, installation, clean-up, and compliance with agreed-upon plans and specifications].
• Option B: The Contractor shall perform the services as detailed in Exhibit A attached hereto and incorporated herein.
• Specific Tasks:
• [Task 1 Description]; Deadline: [Date]
• [Task 2 Description]; Deadline: [Date]
• Technical Standards: All work shall conform to applicable South Dakota building codes and municipal ordinances.

2. Contractor Qualifications

• The Contractor represents and warrants that they possess the necessary skills, qualifications, and experience to perform the services outlined in this Agreement.
• The Contractor shall provide the following documentation:
• Copy of valid South Dakota Contractor's Excise Tax License.
• Certificate of Insurance evidencing general liability insurance with minimum coverage of [Dollar Amount].
• Certificate of Insurance evidencing workers' compensation insurance, if required by South Dakota law for their operations.
• [Other required certifications, e.g., Electrical, Plumbing, HVAC].

3. Compensation

• Option A: Fixed Fee: The Client shall pay the Contractor a fixed fee of [Dollar Amount] for the satisfactory completion of the services.
• Option B: Hourly Rate: The Client shall pay the Contractor an hourly rate of [Dollar Amount] per hour for services rendered.
• Option C: Cost-Plus: The Client shall pay the Contractor for the actual cost of materials and labor, plus a markup of [Percentage].
• Payment Schedule: Payments shall be made according to the following schedule:
• [Percentage]% upon commencement of work.
• [Percentage]% upon completion of [Milestone Description].
• [Percentage]% upon final completion of the project.
• All invoices must include the South Dakota Contractor's Excise Tax number and comply with South Dakota tax regulations.

4. Permits and Inspections

• Option A: The Contractor shall obtain and pay for all necessary city, county, and state construction permits.
• Option B: The Client shall obtain and pay for all necessary permits.
• The Contractor shall coordinate all required inspections with the relevant authorities and notify the Client of inspection schedules.

5. Insurance

• The Contractor shall maintain, at its own expense, the following insurance coverage:
• General Liability Insurance: Minimum coverage of [Dollar Amount].
• Workers' Compensation Insurance: As required by South Dakota law.
• Automobile Liability Insurance: Minimum coverage of [Dollar Amount].
• The Client shall be named as an additional insured on the Contractor's general liability insurance policy.
• The Contractor shall provide proof of insurance to the Client prior to the commencement of work.

6. Site Safety and Compliance

• The Contractor shall comply with all applicable federal and South Dakota OSHA regulations regarding site safety.
• The Contractor is responsible for providing and ensuring the use of appropriate personal protective equipment (PPE) for all personnel on the job site.

7. Non-Exclusivity and Subcontracting

• The Contractor is an independent business and is responsible for all applicable taxes, insurance, and employee obligations.
• The Contractor shall not assign or subcontract any portion of the work without the prior written consent of the Client.
• If subcontracting is permitted, all subcontractors must enter into agreements compliant with South Dakota law and maintain adequate insurance.

8. Ownership of Work Product

• Upon final payment, all completed improvements shall become the property of the Client.
• Unused materials and excess inventory shall be the property of [Client/Contractor].

9. Lien Rights and Waivers

• The Contractor shall provide partial lien waivers upon receipt of each payment, and a final lien waiver upon final payment, in accordance with South Dakota Codified Laws Ch. 44-9.
• The Client is advised to familiarize themselves with their rights and protections under South Dakota mechanics’ lien laws.

10. Change Orders

• Any changes to the scope of work, cost, or schedule must be documented in a written change order signed by both parties.
• The change order shall clearly outline the changes to the original agreement and the corresponding adjustments to the compensation and schedule.

11. Warranties and Guarantees

• The Contractor warrants that all labor and materials will be free from defects for a period of [Number] year(s) from the date of completion.
• This warranty covers [Specifically covered items] and excludes [Specifically excluded items].
• To make a warranty claim, the Client must notify the Contractor in writing within the warranty period.

12. Dispute Resolution

• In the event of a dispute, the parties shall first attempt to resolve the matter through good-faith negotiation.
• If negotiation fails, the parties agree to submit the dispute to mediation in [City, South Dakota].
• If mediation fails, the parties agree to binding arbitration in [City, South Dakota], governed by South Dakota law.

13. Independent Contractor Status

• The Contractor is an independent contractor and is not an employee, agent, or partner of the Client.
• The Contractor is responsible for all applicable taxes, including South Dakota Contractor’s Excise Tax and federal self-employment taxes.

14. Default and Remedies

• Events of Default: Failure by either party to perform their obligations under this Agreement.
• Cure Period: The defaulting party shall have [Number] days to cure the default after written notice.
• Client Remedies: In the event of Contractor default, the Client may terminate the agreement and seek damages.
• Contractor Remedies: In the event of Client default, the Contractor may suspend work and seek payment for services rendered.

15. Termination

• This Agreement may be terminated upon:
• Completion of the project.
• Mutual written agreement of the parties.
• Early termination for cause by either party with [Number] days' written notice.
• Early termination for convenience by the Client with [Number] days' written notice.
• Upon termination, the Contractor shall be paid for all work completed and accepted up to the date of termination.

16. Compliance with Laws

The Contractor shall comply with all applicable federal and South Dakota statutes and regulations, including the South Dakota Contractor’s Excise Tax, state and local licensing requirements, labor laws, environmental regulations, and public safety rules.

17. Confidentiality

• Option A: This project involves sensitive information, and the Contractor agrees to maintain the confidentiality of all project-related information.
• Option B: No confidentiality provisions apply to this agreement.

18. Record-Keeping and Audit

• The Contractor shall maintain accurate records of all project-related expenses and activities.
• The Client or relevant authorities shall have the right to audit the Contractor's records for tax and regulatory compliance.

19. Equipment and Materials

The Contractor shall provide all equipment, materials, labor, and supervision necessary for the project, unless otherwise specified in this Agreement.

20. Inspection and Approval

The Client shall have the right to inspect, monitor, and approve completed work at each milestone or phase.

21. Severability

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

22. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral.

23. Notice

All notices required or permitted under this Agreement shall be in writing and delivered by [Method of Delivery, e.g., certified mail, email] to the addresses specified above.

24. Schedules and Attachments

• Exhibit A: Detailed Scope of Work
• Exhibit B: [Other relevant documents]

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

[Client Signature]

[Client Printed Name]

[Contractor Signature]

[Contractor Printed Name]