What Contracts Might a Construction Business Need?

The following agreements are common, but not every company needs every document. Each agreement should match the company’s actual operations rather than being copied from an unrelated project or downloaded as a generic template.

Customer or Prime Construction Contracts

This is the agreement between the contractor and the customer, owner, developer, or upstream contracting party. It should clearly address the scope of work, contract price, payment schedule, start and completion expectations, change orders, delays, insurance, warranties, termination, dispute resolution, and other project-specific risks.

Subcontractor Agreements

A written subcontract should define the subcontractor’s scope, schedule, payment terms, change-order process, insurance obligations, safety responsibilities, indemnification requirements, cleanup duties, warranty obligations, and what happens if work is delayed or defective. It should also coordinate with the prime contract where appropriate.

Independent Contractor and Compliance Documents

Calling someone a subcontractor does not automatically make the relationship compliant. Minnesota construction companies may also need documentation addressing the state’s 14-factor independent contractor test, required registrations or licenses, tax information, insurance, workers’ compensation, and evidence that the subcontractor operates an independent business.

Change Orders and Extra-Work Authorizations

Change orders help document work that was not included in the original scope. A good process identifies the change, cost, schedule impact, and required approval before the additional work proceeds. Informal texts or jobsite conversations can create confusion if the written contract requires a different process.

Purchase Orders and Supplier Agreements

Contractors that regularly order materials may benefit from written terms addressing price, delivery, substitutions, damage, shortages, returns, credit, payment timing, and what happens when tariffs or supply-chain changes affect the project.

Equipment Rental and Use Agreements

Equipment agreements can address rental charges, authorized operators, maintenance, damage, loss, transportation, insurance, and responsibility for downtime. These issues may arise whether equipment is rented from a third party or shared between related businesses.

Employment Agreements and Workplace Policies

Construction businesses with employees may need offer letters, confidentiality provisions, compensation agreements, handbook policies, vehicle or equipment-use rules, safety expectations, and agreements addressing company property or information. The right documents depend on the employee’s role and applicable law.

Confidentiality, Non-Solicitation, and Intellectual Property Agreements

Some companies need to protect customer lists, pricing methods, estimating systems, designs, processes, or other proprietary information. Any restrictive agreement should be tailored to the business and reviewed for enforceability rather than used as a one-size-fits-all form.

Operating Agreements and Owner Agreements

An LLC operating agreement or other owner agreement can define ownership, voting, distributions, management authority, buyout rights, deadlock procedures, and what happens if an owner dies, becomes disabled, leaves the company, or stops participating.

Commercial Leases and Property Agreements

A construction business may lease office, warehouse, shop, yard, or storage space. The lease should address permitted use, maintenance, improvements, signage, insurance, environmental obligations, vehicles, equipment, and responsibility for damage.

Warranty and Maintenance Agreements

Builders and contractors may use separate warranty or maintenance agreements to define post-completion obligations, notice requirements, exclusions, access, repair procedures, and the difference between warranty work and owner maintenance.