Virginia construction service contract template

Virginia Construction Service Contract

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

• [Contractor Legal Name], a [Entity Type, e.g., Corporation] organized and existing under the laws of Virginia, with its principal place of business at [Contractor Address], Virginia DPOR License Number [License Number] (hereinafter referred to as "Contractor"), and
• [Client/Owner Legal Name], residing at [Client/Owner Address] (hereinafter referred to as "Owner").

1. Project Scope and Location

• Option A: Detailed Description: The Contractor shall perform the following construction services (the "Work") at the property located at [Property Address, including city and county], Virginia, in accordance with the plans and specifications attached hereto as Exhibit A and incorporated herein by reference. Specifically, the work includes: [Detailed description of work, including specific references to drawings and specification sheets from Exhibit A].
• Option B: Summary Description: The Contractor shall perform the following construction services (the "Work") at the property located at [Property Address, including city and county], Virginia, as generally described as: [Summary Description of Work. E.g., "Complete renovation of kitchen and master bathroom."]. Detailed plans and specifications are attached as Exhibit A and are incorporated into this Agreement.
  • Architectural/Engineering Plans: The Work shall be performed in accordance with architectural and engineering plans and specifications dated [Date], prepared by [Architect/Engineer Name], attached hereto as Exhibit A.
  • Exclusions: The Work specifically excludes: [List of exclusions, e.g., landscaping, furniture, appliances].

2. Services to be Provided

• Option A: Itemized Services: The Contractor shall provide the following services:
  • Site Preparation: [Description of site preparation services].
  • Demolition: [Description of demolition services].
  • Structural Work: [Description of structural work services].
  • MEP Installations: [Description of MEP installations services].
  • Finish Work: [Description of finish work services].
• Option B: General Services: The Contractor shall provide all labor, materials, equipment, and supervision necessary to complete the Work as described in Section 1 and Exhibit A.

3. Project Schedule

• Option A: Milestone-Based Schedule: The Project shall be completed according to the following schedule:
  • Commencement Date: [Date].
  • Milestone 1: [Milestone Description] - Completion Date: [Date].
  • Milestone 2: [Milestone Description] - Completion Date: [Date].
  • Substantial Completion: [Date]. Substantial Completion is defined as the stage in the progress of the Work when the Work is sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or utilize the Work for its intended purpose.
  • Final Completion: [Date]. Final Completion is defined as the final completion of all Work in accordance with the Contract Documents.
• Option B: Critical Path Schedule: The Project shall be completed according to the critical path schedule attached hereto as Exhibit B.

4. Responsibilities of Parties

• Contractor Responsibilities:
  • Obtain all necessary permits and inspections from relevant Virginia state and local agencies, including but not limited to building permits and VDOT approvals.
  • Ensure that all workers and subcontractors are properly licensed, credentialed, and insured in Virginia.
  • Comply with all applicable Virginia laws and regulations, including the Virginia Uniform Statewide Building Code and Virginia Occupational Safety and Health (VOSH) regulations.
  • Provide all labor, materials, equipment, and supervision necessary to complete the Work in a good and workmanlike manner.
• Owner Responsibilities:
  • Provide the Contractor with reasonable access to the project site.
  • Provide timely approvals of shop drawings and other submittals.
  • Make payments to the Contractor in accordance with the payment schedule outlined in Section 6.
  • Provide necessary utilities to the site, including water and electricity.

5. Materials and Warranties

• Option A: Specified Materials: All materials used in the Work shall be of the quality specified in Exhibit A. Any substitutions must be approved in writing by the Owner.
• Option B: Owner Selection: The Owner shall select all materials to be used in the Work. The Contractor shall provide a list of available materials and associated costs.
  • Warranty: The Contractor warrants that all materials and workmanship will be free from defects for a period of one (1) year from the date of Substantial Completion. This warranty is in addition to any manufacturer's warranties.

6. Payment

• Option A: Fixed Price Contract: The total contract sum for the Work is [Dollar Amount].
  • Schedule of Values: Payments shall be made according to the following schedule of values, attached as Exhibit C.
  • Retainage: The Owner shall retain five percent (5%) of each progress payment until Final Completion.
  • Progress Payments: The Contractor shall submit invoices to the Owner on a [Monthly/Bi-weekly] basis. The Owner shall make payment within [Number] days of receipt of a valid invoice.
  • Final Payment: Final payment, including the release of retainage, shall be due upon Final Completion of the Work and the Contractor's submission of a final lien waiver and affidavit of payment to suppliers and subcontractors.
• Option B: Cost Plus Fee Contract: The Owner shall pay the Contractor the actual cost of the Work, plus a fee of [Dollar Amount or Percentage].
  • GMP (Guaranteed Maximum Price): The Guaranteed Maximum Price for the Work is [Dollar Amount].
  • Schedule of Values: The Contractor shall provide a detailed schedule of values for all work.
  • Retainage: The Owner shall retain five percent (5%) of each progress payment until Final Completion.
  • Progress Payments: The Contractor shall submit invoices to the Owner on a [Monthly/Bi-weekly] basis, supported by documentation of all costs incurred. The Owner shall make payment within [Number] days of receipt of a valid invoice.
  • Final Payment: Final payment, including the release of retainage, shall be due upon Final Completion of the Work, reconciliation of all costs, and the Contractor's submission of a final lien waiver and affidavit of payment to suppliers and subcontractors.

7. Change Orders

All changes to the Work must be documented in writing and approved by both the Contractor and the Owner. Change orders shall include a detailed description of the change, the cost of the change, and any changes to the project schedule. All change orders must comply with Virginia Code Section 2.2-4330.

Pricing for Change Orders: Change orders shall be priced based on: [Choose one: Time and Materials, Fixed Fee, Unit Pricing].

8. Allowances and Alternates

Allowances: The following allowances are included in the contract sum: [List of allowances and dollar amounts].

Alternates: The following alternates are available for consideration: [List of alternates and associated costs].

9. Delay and Damages

• Option A: Liquidated Damages: If the Contractor fails to achieve Substantial Completion by the date specified in Section 3, the Contractor shall pay the Owner liquidated damages of [Dollar Amount] per day for each day of delay.
• Option B: Actual Damages: In the event of delay, the Owner's recovery will be limited to actual damages.
• Force Majeure: Neither party shall be liable for delays caused by events beyond their reasonable control, including but not limited to acts of God, labor strikes, or acts of government.

10. Insurance and Bonding

• The Contractor shall maintain the following insurance coverage:
  • Commercial General Liability Insurance: [Dollar Amount] per occurrence.
  • Workers' Compensation Insurance: As required by Virginia law.
  • Builder's Risk Insurance: Covering the full replacement cost of the Work.
• The Contractor shall provide a performance and payment bond in the amount of [Dollar Amount].
• The Owner shall be named as an additional insured on the Contractor's Commercial General Liability policy.

11. Mechanic's Lien

The Contractor shall comply with all applicable provisions of Virginia's mechanic's lien statutes (Code of Virginia Title 43). The Contractor shall provide the Owner with a list of all subcontractors and suppliers. The Contractor shall provide the Owner with lien waivers from all subcontractors and suppliers upon payment. The Owner has the right to withhold funds pending proof of payment to subcontractors and suppliers.

12. Prevailing Wage

If this project is subject to prevailing wage regulations (e.g., state-funded projects), the Contractor shall comply with all applicable requirements.

13. Dispute Resolution

• Option A: Mediation and Arbitration: Any disputes arising out of or relating to this Agreement shall be resolved through mediation in Virginia. If mediation is unsuccessful, the dispute shall be resolved through binding arbitration in accordance with the rules of the American Arbitration Association.
• Option B: Litigation: Any disputes arising out of or relating to this Agreement shall be resolved in the courts of competent jurisdiction in [City/County], Virginia, and shall be governed by the laws of the Commonwealth of Virginia.

14. Recordkeeping and Audit

The Contractor shall maintain accurate and complete records of all costs incurred in connection with the Work. The Owner shall have the right to audit the Contractor's records upon reasonable notice.

15. Quality Assurance and Inspections

The Contractor shall perform regular inspections of the Work to ensure quality. The Owner and relevant governmental agencies shall have the right to inspect the Work at any time.

16. Warranty

The Contractor warrants that the Work will be free from defects in materials and workmanship for a period of one (1) year from the date of Substantial Completion.

17. Differing Site Conditions

If the Contractor encounters differing site conditions that were not reasonably foreseeable, the Contractor shall notify the Owner in writing within [Number] days. The parties shall then negotiate an equitable adjustment to the contract sum and/or schedule.

18. Safety

The Contractor shall comply with all applicable safety regulations, including those promulgated by OSHA and VOSH. The Contractor shall be responsible for maintaining a safe work environment.

19. Assignment and Subcontracting

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

20. Termination

• Option A: Termination for Cause: The Owner may terminate this Agreement for cause if the Contractor materially breaches this Agreement. The Contractor shall have [Number] days to cure the breach.
• 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 Owner shall pay the Contractor for all Work performed to date, plus reasonable demobilization costs.

21. Indemnification

To the fullest extent permitted by law, the Contractor shall indemnify and hold harmless the Owner from and against any and all claims, losses, damages, liabilities, and expenses (including attorneys' fees) arising out of or relating to the Contractor's performance of the Work, except to the extent caused by the sole negligence or willful misconduct of the Owner.

22. Confidentiality

The Contractor shall maintain the confidentiality of all proprietary information provided by the Owner.

23. Entire Agreement

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

24. Amendments

This Agreement may be amended only by a written instrument signed by both parties.

25. Severability

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

26. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia.

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

Contractor:

[Contractor Legal Name]

By: [Authorized Signatory Name]

Title: [Title]

Date: [Date]

Owner:

[Client/Owner Legal Name]

By: [Signature]

Name: [Client/Owner Typed Name]

Date: [Date]

Exhibit A: Plans and Specifications

Exhibit B: Project Schedule (if applicable)

Exhibit C: Schedule of Values