Free Service Agreement (Construction)

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Service Agreement (Construction)

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Your Service Agreement (Construction)

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Service Agreement (Construction) Page of
Page of

CONSTRUCTION CONTRACT

THIS CONSTRUCTION CONTRACT (the "Agreement") is dated this ________ day of ________________, ________.

Client

____________________________________________________
(the "Client")

Contractor

____________________________________________________
(the "Contractor")
  1. BACKGROUND
  2. The Client is of the opinion that the Contractor has the necessary qualifications, experience and abilities to provide services to the Client.
  3. The Contractor is agreeable to providing such services to the Client on the terms and conditions set out in this Agreement.

IN CONSIDERATION OF the matters described above and of the mutual benefits and obligations set forth in this Agreement, the receipt and sufficiency of which consideration is hereby acknowledged, the Client and the Contractor (individually the "Party" and collectively the "Parties" to this Agreement) agree as follows:

  1. Services Provided
  2. The Client hereby agrees to engage the Contractor to provide the Client with the following services (the "Services"):
    • _______________________________________________________________
      _______________________________________________________________.

  3. The Services will also include any other tasks which the Parties may agree on. The Contractor hereby agrees to provide such Services to the Client.
  4. Term of Agreement
  5. The term of this Agreement (the "Term") will begin on the date of this Agreement and will remain in full force and effect until the completion of the Services, subject to earlier termination as provided in this Agreement. The Term may be extended with the written consent of the Parties.
  6. Performance
  7. The Parties agree to do everything necessary to ensure that the terms of this Agreement take effect.
  8. Currency
  9. Except as otherwise provided in this Agreement, all monetary amounts referred to in this Agreement are in AUD (Australian Dollars).
  10. Payment
  11. The Contractor will charge the Client a flat fee of $__________ for the Services (the "Payment").
  12. The Contractor will invoice the Client when the Services are complete.
  13. Invoices submitted by the Contractor to the Client are due within 30 days of receipt.
  14. Reimbursement of Expenses
  15. The Contractor will be reimbursed from time to time for reasonable and necessary expenses incurred by the Contractor in connection with providing the Services.
  16. All expenses must be pre-approved by the Client.
  17. Confidentiality
  18. Confidential information (the "Confidential Information") refers to any data or information relating to the Client, whether business or personal, which would reasonably be considered to be private or proprietary to the Client and that is not generally known and where the release of that Confidential Information could reasonably be expected to cause harm to the Client.
  19. The Contractor agrees that they will not disclose, divulge, reveal, report or use, for any purpose, any Confidential Information which the Contractor has obtained, except as authorised by the Client or as required by law. The obligations of confidentiality will apply during the Term and will survive indefinitely upon termination of this Agreement.
  20. All written and oral information and material disclosed or provided by the Client to the Contractor under this Agreement is Confidential Information regardless of whether it was provided before or after the date of this Agreement or how it was provided to the Contractor.
  21. Ownership of Intellectual Property
  22. All intellectual property and related material, including any trade secrets, moral rights, goodwill, relevant registrations or applications for registration, and rights in any patent, copyright, trade mark, trade dress, industrial design and trade name (the "Intellectual Property") that is developed or produced under this Agreement, will be the sole property of the Client. The use of the Intellectual Property by the Client will not be restricted in any manner.
  23. The Contractor may not use the Intellectual Property for any purpose other than that contracted for in this Agreement except with the written consent of the Client. The Contractor will be responsible for any and all damages resulting from the unauthorised use of the Intellectual Property.
  24. Return of Property
  25. Upon the expiry or termination of this Agreement, the Contractor will return to the Client any property, documentation, records, or Confidential Information which is the property of the Client.
  26. Capacity/Independent Contractor
  27. In providing the Services under this Agreement it is expressly agreed that the Contractor is acting as an independent contractor and not as an employee. The Contractor and the Client acknowledge that this Agreement does not create a partnership or joint venture between them, and is exclusively a contract for service.
  28. Right of Substitution
  29. Except as otherwise provided in this Agreement, the Contractor may, at the Contractor's absolute discretion, engage a third party sub-contractor to perform some or all of the obligations of the Contractor under this Agreement and the Client will not hire or engage any third parties to assist with the provision of the Services.
  30. In the event that the Contractor hires a sub-contractor:
    • the Contractor will pay the sub-contractor for its services and the Payment will remain payable by the Client to the Contractor.
    • for the purposes of the indemnification clause of this Agreement, the sub-contractor is an agent of the Contractor.
  31. Autonomy
  32. Except as otherwise provided in this Agreement, the Contractor will have full control over working time, methods, and decision making in relation to provision of the Services in accordance with the Agreement. The Contractor will work autonomously and not at the direction of the Client. However, the Contractor will be responsive to the reasonable needs and concerns of the Client.
  33. Equipment
  34. Except as otherwise provided in this Agreement, the Contractor will provide at the Contractor’s own expense, any and all tools, machinery, equipment, raw materials, supplies, workwear and any other items or parts necessary to deliver the Services in accordance with the Agreement.
  35. No Exclusivity
  36. The Parties acknowledge that this Agreement is non-exclusive and that either Party will be free, during and after the Term, to engage or contract with third parties for the provision of services similar to the Services.
  37. Notice
  38. All notices, requests, demands or other communications required or permitted by the terms of this Agreement will be given in writing and delivered to the Parties at the following addresses:
    • ______________________
      ______________________________
    • ______________________
      ______________________________

    or to such other address as either Party may from time to time notify the other.

  39. Indemnification
  40. Except to the extent paid in settlement from any applicable insurance policies, and to the extent permitted by applicable law, each Party agrees to indemnify and hold harmless the other Party, and its respective affiliates, officers, agents, employees, and permitted successors and assigns against any and all claims, losses, damages, liabilities, penalties, punitive damages, expenses, reasonable legal fees and costs of any kind or amount whatsoever, which result from or arise out of any act or omission of the indemnifying party, its respective affiliates, officers, agents, employees, and permitted successors and assigns that occurs in connection with this Agreement. This indemnification will survive the termination of this Agreement.
  41. Modification of Agreement
  42. Any amendment or modification of this Agreement or additional obligation assumed by either Party in connection with this Agreement will only be binding if evidenced in writing signed by each Party or an authorised representative of each Party.
  43. Time of the Essence
  44. Time is of the essence in this Agreement. No extension or variation of this Agreement will operate as a waiver of this provision.
  45. Assignment
  46. The Contractor will not voluntarily, or by operation of law, assign or otherwise transfer its obligations under this Agreement without the prior written consent of the Client.
  47. Entire Agreement
  48. It is agreed that there is no representation, warranty, collateral agreement or condition affecting this Agreement except as expressly provided in this Agreement.
  49. Enurement
  50. This Agreement will enure to the benefit of and be binding on the Parties and their respective heirs, executors, administrators and permitted successors and assigns.
  51. Titles/Headings
  52. Headings are inserted for the convenience of the Parties only and are not to be considered when interpreting this Agreement.
  53. Gender
  54. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.
  55. Governing Law
  56. This Agreement will be governed by and construed in accordance with the laws of the Australian Capital Territory.
  57. Severability
  58. In the event that any of the provisions of this Agreement are held to be invalid or unenforceable in whole or in part, all other provisions will nevertheless continue to be valid and enforceable with the invalid or unenforceable parts severed from the remainder of this Agreement.
  59. Waiver
  60. The waiver by either Party of a breach, default, delay or omission of any of the provisions of this Agreement by the other Party will not be construed as a waiver of any subsequent breach of the same or other provisions.

IN WITNESS WHEREOF the Parties have duly affixed their signatures under hand and seal on this ________ day of ________________, ________.

_______________________________
______________________ (Client)
_______________________________
______________________ (Contractor)
Service Agreement (Construction) Page of
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Last Updated January 12, 2024

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What is a Service Agreement?

A Service Agreement is a written or verbal contract between a general service provider and a client or customer. It outlines the terms and conditions of their professional relationship, including details of the service provided, the parties involved, billing information, and more. 

You can use LawDepot’s Service Agreement template for various purposes. Simply customise the document by answering our questionnaire, and we’ll generate a professional contract to suit your work. 

We also supply templates for specific services such as:

Why should I use a written Service Agreement?

Although oral agreements may be enforceable, a written contract is often easier to prove and enforce in court.

Not only that, but you can decrease your chances of legal disputes altogether by creating a contract. This way, you can clearly define the expectations of both the client and the contractor. So, if a conflict arises, the parties can refer to the contract to help find a solution. 

What’s more, a Service Agreement is evidence of the type of work relationship the parties have with each other. It’s crucial to differentiate contractors from employees, as they are treated differently by law.

Finally, depending on the nature of your business, it may be compulsory to create a Service Agreement that upholds international, national, and regional standards. As such, it’s crucial to check your local laws to confirm what’s required in your situation.

Is a Service Agreement legally enforceable?

Yes, Service Agreements are generally legally binding contracts, provided that they meet the essential elements of a valid contract

In Australia, service contracts are governed by common law principles and statutes, such as the Competition and Consumer Act 2010. In the end, a contract’s enforceability depends on the nature of the agreement, the specifics of the situation, and the applicable laws in Australia. 

Talk to a lawyer if you need to address a unique aspect of your contract.

How to write a Service Agreement

Create a Service Agreement by using our template. We’ll ask you for the following information:

1. Information about the service

First, specify how long services are needed (e.g., for a single job, a fixed term, or indefinitely) and where the work will be done (as this affects the laws that apply to your contract).

Next, clearly describe the service details (i.e., provide a scope of work). Remember: it’s crucial to be clear and specific when describing the tasks required. If possible, include important dates, project milestones, and a list of deliverables. 

With LawDepot’s Service Agreement, you can list each service detail as a separate paragraph and they appear as a bullet point list in the document. While creating your contract, you can check the document preview to ensure it appears as you like.

2. Party details

Provide the contractor and client’s name and address. You can also specify whether each party is an individual or a corporation (which affects the format of the signatures at the end of the document). 

3. Payment

Contractors can charge either a flat fee (payment due in full at a certain time) or a specific rate (e.g. hourly, daily, weekly). Factors that may affect a contractor's rate of pay include:

  • The length of the project (whether it is a one-off project or ongoing)
  • The skills required for the job (some contractors charge different rates for different skills)
  • The scope of the project (additional projects may be added or removed)

Contractors may also require clients to pay a deposit before they begin any work. Usually, a deposit is within 10 to 50% of the total contract amount. However, this amount may vary depending on the stability of the client's financial situation and the degree of trust between the parties. The service provider might also prefer a deposit if there is a presence of rivals who may try to entice the client away with competitive prices.

To encourage clients to pay on time, contractors can set a reasonable time period for a client to pay an invoice (e.g., within 15 to 30 days of receipt). If payments aren't made within this time frame, contractors can charge contractual interest (typically no more than 10% per annum on the overdue amount). 

Finally, LawDepot’s Service Agreement asks if you want to specify who will pay the superannuation guarantee contributions. Contractors who operate as a partnership or a company are required to pay the superannuation of their employees. However, sole traders are occasionally entitled to superannuation payments from their clients.

If a person works under a contract that is mostly or entirely for their labour, they are likely entitled to superannuation contributions. For example, imagine a pet sitter is hired to watch a client's dog while they’re away on vacation. The sitter is paid entirely for their labour (the time they spent taking care of the animal) and is therefore entitled to superannuation payments.

If you're unsure of the contractor's superannuation status, consult your local taxation office.

4. Terms and conditions

LawDepot’s Service Agreement asks you to address terms regarding early termination, reimbursed expenses, intellectual property ownership, and the duty of confidentiality.

Early termination

You can choose to allow either party to end the contract early. If so, you must specify how many days before termination that written notice should be given. For instance, one week's notice is generally accepted for most short-term contracts. But if a contract is ongoing, it's best practice to provide at least 15 to 30 days' notice.

If you have done any work or made any investment by the time the client issues the termination notice, you will be entitled to payment for such work or investment. LawDepot’s Service Agreement addresses this situation as such:

In the event that this Agreement is terminated by the Client prior to completion of the Services but where the Services have been partially performed, the Contractor will be entitled to pro rata payment of the Payment to the date of termination provided that there has been no breach of contract on the part of the Contractor.

Reimbursed expenses

Contractors may ask the client to reimburse them for reasonable, work-related expenses. It's common to establish the terms for reimbursement in your contract to avoid surprising the client with extra costs at the end.

You could include a term in your contract that requires the client to pre-approve expenses that meet specific guidelines. For example, if a client hires a handyman to do home repairs and electrical work on several rental properties in different locations, they may include a term in the Service Agreement stating travel, accommodation, and food expenses will be reimbursed up to a certain limit.

Intellectual property

Typically, any intellectual property created by an independent contractor is considered to be the contractor's property, unless otherwise specified in the Service Agreement. If the client holds the rights to the intellectual property, the contractor will only be allowed to use it for the purposes described in the contract.

Confidentiality

You can choose to impose the duty of confidentiality on a contractor indefinitely, until the end of the agreement, or not at all. The duty of confidentiality requires a contractor to refrain from sharing any confidential information (any data relating to the client that could be considered private or proprietary) for any purpose, unless the contractor is authorised by the client or required by law.

5. Final details

If your situation requires a term that we haven’t already addressed in the template, you can write your own unique clause. In this case, we’ll provide tips on how to phrase it. 

Then, preview the document to see how your answers fit into the document and read through the other boilerplate clauses included in the template. If needed, you can use the document editor to delete or change items to suit your purposes.

What happens if one party breaches the Service Agreement?

A breach of contract occurs when either the client or the service provider fails to uphold their end of the agreement. 

One reason a contractor might take a deposit is to protect against a situation where a client suddenly cancels without notice. Often, the existence of a signed contract is enough to ensure both parties act fairly and reasonably, whatever the circumstances. If not, a signed Service Agreement will assist a lawyer in upholding your contractual rights.

How do I cancel a Service Agreement?

Unforeseen events may require one party to back out of the agreement. This isn’t ideal, but you can prepare for it by including an early termination clause in your Service Agreement. This clause outlines what should happen if either party needs to cancel the contract early.

Related Documents:

  • Business Plan: Outline your business goals and plans for achieving them.
  • Demand Letter: Request payment for an outstanding debt or demand another party take action on something.
  • Hold-Harmless Agreement: Protect another party from liabilities, losses, claims, or damages during the length of a contract.
  • Independent Contractor Agreement: Outline the terms of a working relationship between an independent contractor and a client.
  • Contract Addendum: Alter one or more terms in an existing contract, while the original document remains in effect.
Create your free Service Agreement today
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