Texas construction service contract template

Texas Construction Service Contract

This Texas Construction Service Contract (the “Agreement”) is made and effective as of [Date], by and between:

Owner: [Owner Name], residing at [Owner Address], Contact Number: [Owner Phone Number], Email: [Owner Email]

Contractor: [Contractor Company Name], a [State] [Entity Type], with its principal place of business at [Contractor Address], Contact Number: [Contractor Phone Number], Email: [Contractor Email], Contractor License/Registration Number: [Contractor License Number]

1. Scope of Work

Option A: Detailed Description

The Contractor shall perform all work as described in Exhibit A (the "Work"), attached hereto and incorporated herein. The Work includes, but is not limited to: [Detailed Description of Work]. The project is a [Construction Type, e.g., Residential, Commercial] construction project located at [Project Site Address].

Option B: Reference to Plans and Specifications

The Contractor shall perform all work as described in the plans and specifications dated [Date], prepared by [Architect/Engineer Name], which are attached hereto as Exhibit A and incorporated herein.

Option C: Limited Scope of Work

The Contractor shall perform the following specific work: [Specific Description of Work] at the project site. All other work is excluded from this agreement.

2. Project Timeline

Option A: Specific Dates

The Work shall commence on [Start Date] and be substantially completed on or before [Substantial Completion Date]. Final Completion shall occur on or before [Final Completion Date]. Daily work hours shall be from [Start Time] to [End Time], subject to local noise ordinances.

Option B: Milestones

The Work shall be completed in accordance with the following milestones:

Milestone 1: [Description of Milestone] – Completion Date: [Date]

Milestone 2: [Description of Milestone] – Completion Date: [Date]

Milestone 3: [Description of Milestone] – Completion Date: [Date]

Option C: Time is of the Essence

Time is of the essence in the performance of this Agreement. The Contractor agrees to diligently pursue the Work to completion within the specified timeframe.

3. Permits, Inspections, and Approvals

Option A: Contractor Responsibility

The Contractor shall be responsible for obtaining and paying for all permits, inspections, and approvals required by applicable Texas laws, the Texas Department of Licensing and Regulation (TDLR) rules, and local jurisdictions, including but not limited to [List of Permits].

Option B: Owner Responsibility

The Owner shall be responsible for obtaining and paying for all permits, inspections, and approvals required by applicable laws and local jurisdictions, including but not limited to [List of Permits]. The Contractor shall cooperate with the Owner in obtaining such permits.

Option C: Shared Responsibility

The Owner shall obtain and pay for [List of Owner Responsibilities]. The Contractor shall obtain and pay for [List of Contractor Responsibilities].

All construction shall comply with the Texas Building Code, International Residential Code (IRC), and all relevant city/county ordinances.

4. Contract Price and Payment

Option A: Fixed Price

The Contract Price for the Work is [Dollar Amount].

Option B: Cost-Plus

The Contract Price shall be the actual cost of the Work plus a fee of [Percentage]% of the actual cost, or [Dollar Amount].

Option C: Unit Pricing

The Contract Price shall be determined based on the following unit prices:

[Item]: [Price per Unit]

[Item]: [Price per Unit]

The payment schedule is as follows: [Detailed Payment Schedule, including progress payments, retainage (typically 10% as per Texas Property Code), and final payment]. All payments are subject to Texas Prompt Payment Act (Texas Property Code Ch. 28). Lien waivers and releases are required with each payment.

5. Change Orders

Option A: Written Agreement Required

No changes to the Work shall be made except upon written order (a "Change Order") signed by both the Owner and the Contractor. Each Change Order shall include a detailed description of the change, the cost of the change, and any impact on the project timeline. No verbal agreements will be binding. Change order dollar thresholds per Texas Property Code §53.255 must be adhered to.

Option B: Contractor Initiated Change Orders

If the Contractor encounters unforeseen conditions that require a change to the Work, the Contractor shall promptly notify the Owner in writing. The Owner will then approve or deny the change.

Option C: Owner Initiated Change Orders

The Owner may request changes to the Work by providing a written request to the Contractor. The Contractor shall provide a written proposal outlining the cost and time impact of the change.

6. Owner's Responsibilities

Option A: Provision of Materials

The Owner shall provide the following materials: [List of Materials] by [Date].

Option B: Access to Site

The Owner shall provide the Contractor with reasonable access to the project site.

Option C: Timely Decisions

The Owner shall make timely decisions regarding the Work and respond promptly to the Contractor's requests for information.

7. Insurance and Indemnification

Option A: Contractor Insurance

The Contractor shall maintain the following insurance coverage:

General Liability Insurance: [Dollar Amount]

Workers' Compensation Insurance: As required by Texas statute or subcontract volume.

Builder’s Risk Insurance: [Dollar Amount]

Automobile Insurance: [Dollar Amount]

Option B: Indemnification

To the fullest extent permitted by law, the Contractor shall indemnify, defend, and hold harmless the Owner from and against all claims, damages, losses, and expenses arising out of or resulting from the performance of the Work, but only to the extent caused by the negligent acts or omissions of the Contractor, its employees, or subcontractors. This indemnity provision complies with Texas “fair notice” rules.

Option C: Owner Insurance

The Owner shall maintain adequate insurance coverage for the project, including but not limited to property insurance.

8. Subcontractors

Option A: Contractor's Responsibility

The Contractor is responsible for the acts and omissions of its subcontractors. The Contractor shall ensure that all subcontractors are properly licensed and insured.

Option B: List of Subcontractors

The following subcontractors will be used for the Work: [List of Subcontractors and their Scope of Work]. All subcontractors must adhere to the Texas Residential Construction Liability Act (RCLA).

Option C: Approval Required

The Contractor shall not subcontract any portion of the Work without the prior written consent of the Owner.

9. Termination

Option A: Termination for Cause

Either party may terminate this Agreement for cause upon [Number] days' written notice to the other party. Cause shall include, but not be limited to, a material breach of this Agreement.

Option B: Termination for Convenience

The Owner may terminate this Agreement for convenience upon [Number] days' written notice to the Contractor. In the event of termination for convenience, the Contractor shall be paid for all Work performed and expenses incurred up to the date of termination, plus reasonable profit.

Option C: Suspension of Work

The Owner has the right to stop work for non-compliance or unsafe behavior.

10. Dispute Resolution

Option A: Mediation and Arbitration

Any dispute arising out of or relating to this Agreement shall be resolved through mediation in [City, State], before resorting to binding arbitration in accordance with the rules of the American Arbitration Association. Venue for any arbitration or litigation shall be [County] County, Texas.

Option B: Negotiation

The parties agree to attempt to resolve any dispute through good-faith negotiation before resorting to other means of resolution.

Option C: Litigation

Any legal action arising out of or relating to this Agreement shall be brought in the courts of [County] County, Texas. Texas law shall govern the interpretation and enforcement of this agreement.

11. Mechanic's Liens

The Contractor shall comply with all applicable provisions of the Texas Property Code Ch. 53 regarding mechanic's liens, including providing all required notices and disclosures. The "Disclosure Statement" and "List of Subcontractors and Suppliers" must be provided on residential projects.

12. Warranty

Option A: Statutory Warranty

The Work shall be warranted in accordance with the Texas Residential Construction Liability Act (RCLA): 1-year workmanship, 2-year systems, 10-year structural.

Option B: Extended Warranty

The Contractor warrants the Work for a period of [Number] years from the date of substantial completion.

Option C: No Warranty

To the extent permitted by law, the Work is provided "as is" without any warranties, express or implied.

13. Environmental Compliance

The Contractor shall comply with all applicable environmental laws and regulations, including the Texas Health & Safety Code and stormwater discharge rules.

14. Other Provisions

Independent Contractor Status: The Contractor is an independent contractor and not an employee of the Owner.

Assignment: This Agreement may not be assigned by either party without the prior written consent of the other party.

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

Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Texas.

Electronic Communication: The parties agree that electronic communication and signatures are permitted by the Texas Uniform Electronic Transactions Act.

15. Required Statutory Notices

The following statutory notices are included as Exhibit B and incorporated herein: [List of Notices, e.g., Homestead Protection Disclaimers, Trust Fund Notice].

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

Owner:

____________________________

[Owner Name]

Contractor:

____________________________

[Contractor Company Name]

Exhibits:

Exhibit A: Scope of Work (Plans and Specifications)

Exhibit B: Required Statutory Notices