Tennessee construction service contract template

Tennessee Construction Service Contract

This Tennessee Construction Service Contract (the "Agreement") is made and entered into as of this [Date], by and between:

[Contractor Legal Name], a [State] [Entity Type, e.g., Corporation], with its principal place of business at [Contractor Address], holding Tennessee Contractor's License Number [License Number], hereinafter referred to as "Contractor," and

[Client Legal Name], residing at/with its principal place of business at [Client Address], hereinafter referred to as "Client."

Contractor's Contact Information:

• Authorized Representative: [Contractor Authorized Representative]
• Phone: [Contractor Phone Number]
• Email: [Contractor Email]

Client's Contact Information:

• Authorized Representative: [Client Authorized Representative]
• Phone: [Client Phone Number]
• Email: [Client Email]

Scope of Work

• Option A: The Contractor shall perform all work described in Exhibit A, attached hereto and incorporated herein, including all labor, materials, equipment, and services necessary to complete the project located at [Project Address], Parcel Number: [Parcel Number]. This includes adherence to the 2018 International Building Code, as amended and adopted by the State of Tennessee and [Local Municipality, if applicable].
• Option B: The Contractor shall perform the following specific tasks: [Detailed Description of Tasks], in accordance with the attached specifications and drawings.
• Deliverables shall include: [List of Deliverables, e.g., completed structure, as-built drawings, warranties].
• The project will be completed in the following phases: [Construction Phases].

Contractor Licensing and Insurance

• Option A: Contractor represents and warrants that it is duly licensed as required by Tennessee Code Annotated § 62-6-101 et seq., and possesses a valid Tennessee Contractor's License Number [License Number] classified as [Classification], which is appropriate for the value of this contract.
• Option B: Contractor represents and warrants it is in compliance with the Tennessee Home Improvement Contractors Act, if applicable.
• Contractor shall maintain the following insurance coverage:
• General Liability Insurance: [Amount]
• Workers' Compensation Insurance: As required by Tennessee law.
• Builder’s Risk Insurance: [Amount]

Subcontractors

• Option A: Contractor may subcontract portions of the work, but shall remain fully responsible for the acts and omissions of its subcontractors. All subcontractors must be properly licensed and insured in Tennessee. Contractor shall ensure that all subcontractors provide lien waivers.
• Option B: Contractor shall not subcontract any portion of the work without the prior written consent of the Client.

Payment Terms

• Option A (Lump Sum): The total contract price is [Dollar Amount].
• Option B (Cost-Plus): The contract price shall be the actual cost of the work plus a [Percentage]% fee.
• Option C (Unit Price): Payment will be based on the following unit prices: [List of Unit Prices].
• Payment Schedule:
• Deposit: [Dollar Amount] (not exceeding limits set by Tennessee law).
• Progress Payments: Based on the following schedule of values and completion milestones: [Detailed Payment Schedule].
• Retainage: [Percentage]% retainage will be withheld from each progress payment, not to exceed 5% per Tenn. Code Ann. § 66-34-103.
• Final Payment: Due upon substantial completion and acceptance of the work, subject to release of retainage as per Tennessee law. Contractor agrees to comply with the Tennessee Prompt Pay Act.

Client Responsibilities

• Option A: Client shall provide Contractor with access to the project site, all necessary plans and specifications, and shall ensure that all required permits (except those specified as Contractor’s responsibility) are obtained. Client shall provide utility connections.
• Option B: Client will be responsible for [Specific Client Responsibilities].

Project Management and Supervision

The Contractor shall provide competent supervision and project management to ensure the work is performed in a safe and workmanlike manner, in compliance with all applicable codes and regulations, including OSHA and Tennessee Department of Labor standards.

Compliance with Laws and Regulations

Contractor shall comply with all applicable federal, state, and local laws, ordinances, rules, and regulations, including but not limited to zoning regulations, building codes, fire safety regulations, environmental regulations, and accessibility requirements (ADA and TN statutes).

Lien Rights and Releases

Contractor hereby notifies Client that Contractor has lien rights under Tennessee law. Contractor and its subcontractors have the right to file a mechanic's and materialmen's lien against the property if they are not paid for their work or materials. Client shall receive pre-lien notices as required by Tennessee law. Contractor shall provide partial and final lien waivers upon receipt of payment.

Change Orders

No changes to the scope of work or contract price shall be made without a written change order signed by both Contractor and Client. The change order shall clearly describe the change, the effect on the contract price and schedule, and must be approved by the Client prior to implementation.

Force Majeure

Neither party shall be liable for delays or failures in performance caused by events beyond their reasonable control, including but not limited to acts of God, weather events, labor disputes, supply chain disruptions, and governmental actions. The affected party shall promptly notify the other party of such event and take reasonable steps to mitigate the impact.

Substantial and Final Completion

• Substantial Completion: Occurs when the work is sufficiently complete in accordance with the contract documents so that the Client can occupy or utilize the project for its intended purpose.
• Final Completion: Occurs when all work is fully completed in accordance with the contract documents, including punch list items and receipt of Certificate of Occupancy.

Inspections and Acceptance

The work shall be subject to inspections by the Client and any applicable governmental authorities. Upon completion, the Client shall conduct a final walk-through with the Contractor to create a punch list of any remaining items to be completed.

Performance and Payment Bonds

• Option A: Contractor shall provide a performance bond and a payment bond in the amount of [Dollar Amount].
• Option B: Bonds are not required for this project.

Residential Construction (If Applicable)

This contract is subject to the Tennessee Home Improvement Act and the Tennessee Consumer Protection Act. Client has the right to cancel this contract within three (3) business days of signing it. Contractor shall provide Client with all required disclosure statements.

Warranty

Contractor warrants that the work shall be free from defects in workmanship for a period of [Number] year(s) from the date of substantial completion. This warranty is in addition to any manufacturer warranties.

Termination

• Option A (For Cause): Either party may terminate this contract for cause if the other party materially breaches the terms of this contract.
• Option B (For Convenience): Client may terminate this contract for convenience upon written notice to Contractor, subject to payment for all work performed and reasonable termination costs.

Indemnification

Contractor shall indemnify and hold harmless Client from and against any and all claims, losses, damages, liabilities, costs, and expenses arising out of or relating to Contractor's performance of the work, except to the extent caused by the negligence or willful misconduct of Client. This clause shall comply with Tennessee’s anti-indemnity statutes (Tenn. Code Ann. § 62-6-123).

Dispute Resolution

This contract shall be governed by and construed in accordance with the laws of the State of Tennessee. Any disputes arising out of or relating to this contract shall be resolved through negotiation, mediation, and, if necessary, arbitration in [County Name] County, Tennessee, before resorting to litigation.

Confidentiality

Both parties agree to hold confidential any proprietary information disclosed by the other party in connection with this contract.

Intellectual Property

Ownership of all plans, drawings, and specifications shall remain with [Owner of Intellectual Property].

Record Keeping

Contractor shall maintain accurate records of all costs and expenses incurred in connection with the work and shall make such records available to Client upon request.

Safety

Contractor shall comply with all applicable safety regulations, including OSHA standards, and shall maintain a safe work environment. Contractor will also comply with a drug-free workplace policy if mandated.

Severability

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

Entire Agreement

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

Notices

All notices required or permitted under this contract shall be in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States mail, certified or registered, postage prepaid, addressed to the other party at the address set forth above.

Non-Waiver

No waiver of any provision of this contract shall be effective unless in writing and signed by the waiving party.

Special Owner Requirements

[List any special owner requirements, such as MWBE/DBE participation or special insurance requirements].

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

[Contractor Legal Name]

By: [Contractor Authorized Representative Name]

Title: [Contractor Authorized Representative Title]

[Client Legal Name]

By: [Client Authorized Representative Name]

Title: [Client Authorized Representative Title]