Vermont construction independent contractor agreement template
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How Vermont construction independent contractor agreement Differ from Other States
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Vermont applies a stricter 'ABC test' when determining independent contractor status, offering less flexibility than some other states.
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Vermont requires specific disclosures regarding worker classification in construction agreements, unlike certain other states.
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State law mandates contractors in Vermont to provide written notice of rights to independent contractors prior to starting work.
Frequently Asked Questions (FAQ)
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Q: Does Vermont law require a written agreement for independent contractors in construction?
A: Yes, Vermont law strongly encourages written agreements clarifying worker classification, rights, and obligations.
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Q: What is the 'ABC test' used in Vermont for independent contractors?
A: The ABC test presumes employee status unless the contractor meets all conditions proving independence under Vermont law.
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Q: Are there penalties for misclassifying contractors in Vermont?
A: Yes, misclassification can result in civil penalties, liability for wages and taxes, and possible criminal prosecution.
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Vermont Construction Independent Contractor Agreement
This Vermont Construction Independent Contractor Agreement (the “Agreement”) is made and entered into as of this [Date], by and between:
[Client Full Legal Name], residing at [Client Vermont Address] (“Client”), with contact number [Client Phone Number] and email address [Client Email Address];
and
[Contractor Full Legal Name], residing at [Contractor Vermont Address] or doing business as [Contractor Business Name], a [Contractor Business Structure: e.g., sole proprietorship, LLC, corporation] with Vermont business registration or trade license number [Contractor Vermont Business Registration/License Number, if applicable] (“Contractor”), with contact number [Contractor Phone Number] and email address [Contractor Email Address].
Scope of Work
Option A: The Contractor shall perform the following construction services for the Client, as detailed in Exhibit A (the "Work"): [Detailed Description of Work, including specific locations, Vermont parcel or permit references, material/product specifications, construction plans/blueprints references, work methods, standards, and Vermont building codes compliance. Be extremely specific.] For example: "Framing of a new 24' x 30' addition to the residence located at [Address] on parcel number [Parcel Number], in accordance with the approved building permit [Permit Number] and the attached blueprints, ensuring compliance with the Vermont Fire and Building Safety Code and local zoning bylaws."
Option B: The Work shall consist of [General Description of Work], and shall be further defined in subsequent written change orders executed by both parties.
Option C: The Contractor shall perform all tasks reasonably necessary and related to the services described in Exhibit A.
Timeline and Schedule
Option A: The Work shall commence on [Start Date] and shall be substantially completed by [Completion Date].
Option B: The Work shall commence on [Start Date] and shall be completed according to the schedule outlined in Exhibit B.
Option C: The Contractor will make a reasonable effort to complete on schedule but is not responsible for delays caused by weather, inspections, or other conditions beyond the Contractor's reasonable control. Changes to the schedule will be agreed to in writing.
Site access times: [Specific times for access to the property.]
Schedule Change Procedures: [Process to handle schedule changes due to weather conditions or other unforeseen circumstances.]
Payment
Option A: The Client shall pay the Contractor a total fixed fee of [Total Contract Price] for the completed Work.
Option B: The Client shall pay the Contractor on a cost-plus basis, with the Contractor billing for materials plus a [Percentage]% markup, and labor at a rate of [Hourly Rate] per hour.
Option C: The Client shall pay the Contractor according to the unit prices outlined in Exhibit C.
Payment Intervals: [Specify payment intervals: e.g., progress billing, milestone payments.]
Retainage: [Specify retainage percentage, if any, complying with Vermont law.]
Invoicing Procedures: [Describe how the contractor should submit invoices, what details must be included, and the submission address.]
Required Documentation: [List the documentation required with each invoice, such as lien waivers or inspection approvals.]
Vermont Sales and Use Taxes: [Clarify who is responsible for paying Vermont sales and use taxes, if applicable.]
Local Tax Withholdings: [Address any local tax withholdings that may apply.]
Penalties for Late or Non-Payment: [Specify any penalties for late or non-payment, compliant with Vermont law.]
Materials and Equipment
Option A: The Contractor shall provide all materials, tools, and equipment necessary to complete the Work.
Option B: The Client shall provide the following materials: [List of Client-Provided Materials]. The Contractor shall provide all remaining materials, tools, and equipment.
Option C: Materials will be discussed on a per project basis and outlined in change orders.
Storage: [Describe how materials will be stored on site.]
Environmental Disposal: [Address environmental disposal obligations, in accordance with Vermont regulations.]
Insurance for Loss or Theft: [Specify who is responsible for insuring materials against loss or theft.]
Independent Contractor Status
The Contractor is an independent contractor and not an employee of the Client.
The Contractor is solely responsible for all applicable federal and Vermont taxes, including but not limited to income tax, self-employment tax, and payroll taxes, as well as compliance with Vermont and federal wage and hour laws.
The Contractor is responsible for obtaining and maintaining all required insurance, including worker’s compensation (if required under Vermont law), general liability coverage, and auto and equipment insurance. [Note: Under Vermont law, sole proprietors may elect to be covered by workers' compensation insurance.]
Permits and Licenses
Option A: The Contractor shall be responsible for obtaining all necessary permits and licenses required under Vermont law and local ordinances, including building permits and trade-specific licenses.
Option B: The Client shall be responsible for obtaining all necessary permits and licenses.
Option C: The Client is responsible for obtaining the building permit, and the Contractor will obtain all other permits necessary to complete the work.
Cooperation: Both parties shall cooperate in obtaining necessary permits and inspections.
Site Rules and Coordination
The Contractor shall adhere to all applicable OSHA and Vermont occupational safety regulations.
The Contractor shall comply with all local noise ordinances.
The Contractor is responsible for waste management and site clean-up.
The Contractor shall take reasonable measures to protect existing site features.
Lead Paint/Asbestos Mitigation: [Address any lead paint or asbestos mitigation procedures required.]
Sub-Contracting
Option A: The Contractor is permitted to sub-contract portions of the Work, provided that all sub-contractors are Vermont-licensed and insured.
Option B: The Contractor is not permitted to sub-contract any portion of the Work without the Client’s prior written consent.
Option C: The Contractor may sub-contract the following portions of work: [List the Subcontractable portions of the work].
The Contractor shall remain fully responsible for the work of all sub-contractors.
Ownership and Confidentiality
All plans, designs, project documents, and work product shall be owned by [Client/Contractor/Shared].
The Contractor shall maintain the confidentiality of all Client information and construction plans.
Compliance with Vermont data privacy rules: [Outline compliance with Vermont data privacy rules, if applicable.]
Warranties
The Contractor warrants that the Work will be performed in a workmanlike manner and free from defects for a period of [Warranty Period] from the date of completion.
The warranty covers [Specific Items Covered by Warranty].
Warranty claims process: [Outline the process for submitting and resolving warranty claims.]
Indemnification and Liability
The Contractor shall indemnify and hold harmless the Client from and against any claims, damages, or liabilities arising from the Contractor’s negligence or willful misconduct.
Limits on Liability: [Specify any limits on liability, compliant with Vermont law.]
Contractor’s Responsibility: [Detail the contractor’s responsibility for third-party injury or property damage on site.]
Contract Modification and Force Majeure
Any modification to this Agreement must be in writing and signed by both parties.
Force majeure events: [Define force majeure events, especially weather or supply chain disruptions.]
Claim or change order procedures: [Outline the procedures for submitting and processing claims or change orders.]
Termination
Causes for Termination: [List causes for termination, such as non-performance, safety violations, bankruptcy, or permit/inspection failures.]
Notice Period: [Specify the required notice period for termination, in compliance with Vermont law.]
Duties Upon Termination: [Outline the duties of both parties upon termination, including payment for completed work.]
Dispute Resolution
Option A: Any disputes arising under this Agreement shall be resolved through mandatory mediation in Vermont.
Option B: Any disputes arising under this Agreement shall be resolved through binding arbitration in Vermont.
Option C: Any disputes arising under this Agreement shall be resolved through litigation in Vermont state courts.
Venue/Legal Jurisdiction: Venue for any legal action shall be in [County Name] County, Vermont.
Compliance with Laws
The Contractor shall comply with all applicable Vermont statutes and local ordinances.
The Contractor acknowledges the importance of avoiding employee misclassification and shall comply with Vermont employment misclassification rules.
Required Records
The Contractor shall maintain all required records as per Vermont law.
Client audit rights: [Specify client's rights to audit contractor's records.]
Retention periods: [Define the retention periods for keeping records.]
Exhibits
Exhibit A: Scope of Work
Exhibit B: Project Schedule
Exhibit C: Unit Prices (if applicable)
Exhibit D: Insurance Certificates
Exhibit E: Payment Application Form
Vermont-Specific Notices
The Contractor acknowledges and agrees to comply with Vermont’s notice-of-construction-defect and right-to-cure statutes.
The Contractor shall comply with Vermont-specific contractor registration or notification requirements for residential work, if applicable.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
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[Client Full Legal Name], Client
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[Contractor Full Legal Name], Contractor