Owner Builder Subcontractor Agreement Template for United States

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Key Requirements PROMPT example:

Owner Builder Subcontractor Agreement

"I need an Owner Builder Subcontractor Agreement for a residential renovation project in California, where I'll be hiring an electrical contractor to rewire my entire house, with work starting March 2025 and requiring specific provisions for local permits and safety regulations."

Document background
The Owner Builder Subcontractor Agreement serves as a critical legal instrument in construction projects where property owners choose to act as their own general contractors. This document, commonly used throughout the United States, provides essential protection for both the owner-builder and subcontractor by clearly defining responsibilities, expectations, and legal obligations. The agreement typically includes detailed specifications about scope of work, payment terms, project timeline, insurance requirements, warranties, and compliance with local building codes and regulations. It's particularly important for risk management and ensuring clear communication between parties.
Suggested Sections

1. Parties: Identifies the owner-builder and subcontractor, including legal names and addresses

2. Background: Explains the context of the agreement and the project overview

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Work: Detailed description of the work to be performed by the subcontractor

5. Payment Terms: Details of compensation, payment schedule, and payment conditions

6. Timeline: Project schedule, milestones, and completion dates

7. Insurance Requirements: Mandatory insurance coverage and minimum limits

8. Warranties: Workmanship and material warranties provided by the subcontractor

9. Termination: Conditions and procedures for contract termination

Optional Sections

1. Change Orders: Process for modifying scope of work - recommended for complex projects likely to require modifications

2. Dispute Resolution: Procedures for resolving disagreements - recommended for high-value contracts or complex projects

3. Liquidated Damages: Predetermined damages for specific breaches - recommended when time is critical or specific performance metrics are required

4. Materials Supply: Responsibilities for material procurement - recommended when material supply responsibilities need clarification

Suggested Schedules

1. Schedule A - Scope of Work: Detailed specifications and drawings of the work

2. Schedule B - Payment Schedule: Detailed breakdown of payment milestones and amounts

3. Schedule C - Project Timeline: Detailed project schedule with milestones

4. Schedule D - Insurance Certificates: Copies of required insurance policies

5. Schedule E - Safety Requirements: Specific safety protocols and requirements

6. Schedule F - Material Specifications: Detailed specifications for materials to be used

7. Schedule G - Permits and Licenses: Copies of required permits and licenses

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Industries

Fair Labor Standards Act (FLSA): Federal law establishing minimum wage, overtime pay, recordkeeping, and youth employment standards affecting workers in the private sector and in government

Occupational Safety and Health Act (OSHA): Federal law ensuring safe and healthful working conditions by setting and enforcing standards and providing training, outreach, education and assistance

Immigration Reform and Control Act (IRCA): Federal law requiring employers to verify the identity and employment eligibility of their employees

Internal Revenue Code - Contractor Classification: Federal tax regulations governing the classification of workers as independent contractors versus employees

Americans with Disabilities Act (ADA): Federal law prohibiting discrimination against individuals with disabilities in all areas of public life, including construction requirements

State Contractor Licensing Laws: State-specific requirements for contractor licensing, registration, and certification

State Workers' Compensation Laws: State-specific requirements for providing workers' compensation insurance coverage

State Construction Lien Laws: State-specific regulations governing mechanics' liens and construction liens

State Insurance Requirements: State-mandated insurance coverage requirements for construction projects

State Labor Laws: State-specific regulations regarding wages, hours, and working conditions

Local Building Codes: Municipal and county regulations governing construction standards and building permits

Local Licensing Requirements: Municipal and county-specific contractor licensing and registration requirements

Zoning Regulations: Local laws governing land use and construction requirements for specific zones

Construction Industry Standards: Industry-specific standards and best practices for construction work

Insurance Requirements: Comprehensive requirements for general liability, professional liability, builder's risk, and workers' compensation insurance

State Contract Laws: State-specific laws governing contract formation, enforcement, and remedies

Uniform Commercial Code (UCC): Standardized state laws governing commercial transactions, including construction materials

Statute of Frauds: Legal requirement that certain contracts, including those involving construction, must be in writing to be enforceable

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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