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Chapter 87 Contractors Article 1 General Contractors

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REFRIGERATION CONTRACT

THIS REFRIGERATION CONTRACT (“Contract”), effective as of the date of the last party to sign below, is between having an address at ("Contractor") and having an address at ("Owner").

For valuable consideration the parties hereby agree as follows:

1. SCOPE OF WORK: Refrigeration work involves the use of hand tools, instruments and gauges, measuring tools, fastening devices and refrigeration supplies to construct, fabricate, erect, install, maintain, service and repair the following: refrigeration equipment, producing systems, rooms and insulated spaces; temperature insulation; air-conditioning units, systems or coolers; ducts; blowers; registers; and humidity and thermostatic controls of air, liquid and/or gas temperatures. Refrigeration services may also include the following: complying with blueprints and specifications to install motors, compressors, evaporators and other components; connecting ducts, refrigerant lines and piping; making power hookups; and constructing, installing, re-installing, repairing, replacing, re-setting, altering, converting, or moving heat producing systems (electric or gas), combustion plants, and ventilation systems in any building, structure or appurtenance thereto. Contractor shall provide all labor and materials, and perform all refrigeration work described above and/or as described in the plans and specifications signed by both Owner and Contractor ("Project”). Such plans and specifications are hereby made a part of this Contract and may contain pictures, diagrams or measurements of the work area together with a description of the work to be done, materials to be used, and the equipment to be used or installed.

2. WORK SITE: The Project shall be constructed on the property of Owner located at particularly described as and more (hereafter "the Work Site"). Owner hereby authorizes Contractor to commence and complete the usual and customary excavation and grading on the Work Site as may be required in the judgment of the Contractor to complete the Project. Unless called for in the plans or specifications, no landscaping, finish grading, filling or excavation is to be performed at the Work Site by the Contractor.

3. TIME OF COMPLETION: Contractor shall commence the work to be performed under this Contract on or before and shall substantially complete the work on or before Contractor shall not be liable for any delay due to circumstances beyond its control including strikes, casualty, acts of God, illness, injury, or general unavailability of materials.

4. PERMITS: Contractor shall apply for and obtain such permits and regulatory approvals as may be required by the local municipal/county government, the cost thereof shall be included as part of the Project price.

5. INSURANCE: Contractor shall maintain general liability and workers compensation insurance.

6. CHANGES TO SCOPE OF WORK: Owner may make changes to the scope of the work, including changes to the plans and specifications, from time to time during the construction of the Project. However, any such change or modification shall only be made by written "Change Order" signed by both parties. Such Change Orders shall become part of this Contract. Owner agrees to pay any increase in the cost of the Project as a result of a Change Order. In the event the cost of a Change Order is not known at the time a Change Order is executed, the Contractor shall estimate the cost thereof and Owner shall pay the actual cost whether or not it is in excess of the estimated cost.

7. CONTRACT PRICE:

{COST PLUS}

Owner agrees to pay Contractor the actual cost to Contractor of materials plus the sum of $ for performing the services set forth in the scope of the work. Contractor shall be paid as follows:

OR

{FIXED FEE}

Owner agrees to pay Contractor the sum of $ for performing the services set forth in the scope of the work. Contractor shall be paid as follows:

Contractor shall furnish Owner appropriate releases or waivers of lien for all work performed or materials provided at the time the next periodic payment shall be due.

8. LATE PAYMENT/DEFAULT: A failure to make payment for a period in excess of ten (10) days from the due date shall be deemed a material breach of this Contract. If payment is not made when due, Contractor may suspend work on the job until such time as all payments due have been made without breach of the Contract pending payment or resolution of any dispute. Owner agrees to pay a late charge of 1% of all payments that are more than ten (10) days late plus interest at the rate of 1% per month.

9. DESTRUCTION AND DAMAGE: If the Project is destroyed or damaged for any reason, except where such destruction or damage was caused by the sole negligence of the Contractor or its subcontractors, Owner shall pay Contractor for any additional work done by Contractor in rebuilding or restoring the Project to its condition prior to such destruction or damage. If the estimated cost of replacing work already accomplished by Contractor exceeds 20 percent of the Contract price, either the Contractor or Owner may terminate this Contract. Upon termination by either party, Contractor shall be excused from further performance under this Contract and Owner shall pay Contractor a percentage of the Contract price in proportion to the amount of work accomplished prior to the destruction or damage.

10. ASSIGNMENT: Neither party may assign this Contract, or payments due under the Contract, without the other party's written consent. Any such assignment shall be void and of no effect.

11. INTERPRETATION:

(a) Interpretation of Documents. The Contract, plans, and specifications are intended to supplement one another. In the event of a conflict, the specifications shall control the plans, and the Contract shall control both. If work is displayed on the plans but not called for in the specifications, or if the work is called for in the specifications but not displayed on the plans, Contractor shall be required to perform the work as though it were called for and displayed in both documents.

(b) Entire Agreement. This Contract constitutes the entire agreement of the parties. No other agreements, oral or written, pertaining to the work to be performed under this Contract exists between the parties. This Contract may only be modified by a written agreement signed by both parties.

(c) Governing Law. This Contract shall be interpreted and governed in accordance with the laws of the State of Alabama.

12. ATTORNEYS' FEES AND COSTS: If any party to this Contract brings a cause of action against the other party arising from or relating to this Contract, the prevailing party in such proceeding shall be entitled to recover reasonable attorney fees and court costs.

13. PERFORMANCE:

(a) Contractor may, at its discretion, engage licensed subcontractors to perform work pursuant to this Contract provided Contractor shall remain fully responsible for the proper completion of the Project.

(b) All work shall be completed in a workman-like manner and in compliance with all building codes and applicable laws. To the extent required by law, all work shall be performed by individuals duly licensed and authorized by law to perform said work.

(c) Contractor agrees to remove all debris and leave the premises in broom clean condition.

14. WARRANTY: Contractor's warranty shall be limited to defects in workmanship within the scope of work performed by Contractor and which arise and become known within one (1) year from the date hereof. All said defects arising after one (1) year and defects in material are not warranted by Contractor. Contractor hereby assigns to Owner all warranties on materials as provided by the manufacturer of such materials.

CONTRACTOR:

Signature

Print Name & Title

Date

License Number

Name and Address of License Holder

OWNER:

Signature

Print Name

Date

Enter text

What the Chapter 87 Contractors Article 1 General Contractors covers

Chapter 87 Contractors Article 1 General Contractors is a regulatory framework that defines licensing, scope of work, minimum qualifications, and permit requirements for general contractors. It sets standards for contracting practices, insurance and bonding, recordkeeping, and inspection access. The chapter is used by municipal or county offices to register contractors, evaluate applications, and enforce compliance. This guide explains the document's purpose, required information, common pitfalls, filing and signature options, and practical steps to complete and retain records in line with applicable electronic signature laws.

Why this document matters for contractors and project owners

A correctly completed Chapter 87 filing ensures a contractor meets local licensing standards and avoids administrative delays. It documents authority to perform work, establishes insurance and bond status, and creates a compliance record for inspections and permitting.

Why this document matters for contractors and project owners

Who completes and relies on Chapter 87 records

Local permitting offices, licensed contractors, project owners, and compliance officers all interact with Chapter 87 filings during license issuance, renewal, and inspections.

  • Permitting offices verifying license, insurance, and bond documentation for permit issuance.
  • General contractors submitting licensing applications, renewals, or change notices to comply with local rules.
  • Project owners and property managers checking contractor standing before contract award or payment release.

Accurate filings reduce inspection holds and contractual disputes; consistent recordkeeping supports audits and helps demonstrate regulatory compliance.

Core elements to include in a professional Chapter 87 filing

A complete filing combines identity data, proof of insurance and bonding, license history, scope of work, project references, and signatures. Each element supports permit processing, public safety review, and enforcement actions.

Applicant Identity

Legal business name, DBA, tax ID, and primary contact information to validate the entity applying for the contractor license.

License Details

Existing license numbers, classification of work, expiration dates, and any disciplinary history or suspensions affecting standing.

Insurance & Bonds

Certificate of insurance with policy numbers, coverage limits, and surety bond details required by local code.

Scope of Work

Detailed description of services to be performed and any specialty trades or subcontracted work that fall under the license.

Project References

Representative project list with dates, client contacts, and project values to demonstrate experience and capability.

Signatures & Dates

Authorized signatures, titles, and effective dates confirming legal obligation and applicant intent to comply.

Step-by-step: completing and submitting a Chapter 87 filing

Follow these sequential actions to prepare a complete filing and reduce review delays.

  • 01
    Gather documents: Collect license, insurance, bond, and identification documents.
  • 02
    Complete form: Fill every required field using exact legal names and MM/DD/YYYY dates.
  • 03
    Review for accuracy: Verify numbers, dates, and contact details before submitting.
  • 04
    Submit and track: File with the authority and retain confirmation and audit trail.

Recommended digital workflow settings for online completion

Configure a concise e-filing workflow that validates key fields, enforces authentication, and preserves an audit trail.

Field Configuration
Signers Role-based order and required fields enforced
Authentication Email verification or SMS code for signer identity
Templates Reusable form template with locked mandatory fields
Notifications Automated email reminders and completion alerts

How electronic submission and eSigning typically proceed

Electronic workflows follow a standard sequence from upload to final audit-ready copy.

  • Upload: Sender uploads the completed form and attachments.
  • Place fields: Define signature, date, and conditional fields on the document.
  • Send: Send signer links or assign recipient emails.
  • Complete: Signer authenticates, signs, and receives final PDF with audit trail.

Delivery and technical considerations for eSubmission

Confirm supported file formats, authentication methods, and integration endpoints before electronic filing.

  • File formats: PDF, Word DOCX, and compatible Excel exports
  • Authentications: Email verification, SMS code, or higher-assurance methods
  • Integrations: CRM, ERP, and project platforms supported

Choose a workflow that preserves an audit trail, supports required authentication, and exports a tamper-evident signed PDF for your records.

Comparison: eSignature providers for Chapter 87 filings

Pricing and core capabilities vary across eSignature providers; signNow appears first for comparison. Confirm feature availability and contract terms with each vendor before procurement.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Real-world examples of digital completion and compliance

These brief cases show how electronic workflows support contractor filings and document management in practice.

Martin Properties

Tim Martin streamlined contractor on-boarding with online forms and signatures.

  • Signatures validated on mobile and desktop.
  • The team reduced turnaround time and maintained compliance by retaining audit trails and certificate-of-completion records for each project, improving record retrieval for inspections and owner review.

Optica Ventures LLC

Brian Fitzgibbons improved application accuracy using templates.

  • Templates enforced mandatory fields.
  • Using standardized templates helped reduce errors, ensured consistent insurance and bond attachments, and simplified licensing renewals across multiple jurisdictions for repeat projects.

Practical tips for accurate, efficient Chapter 87 filings

Adopt standardized templates, verify identity, and keep an auditable trail to reduce rework and meet regulatory expectations.

Standardize templates
Use a consistent template that locks mandatory fields and includes checklists for attachments to prevent omissions and speed reviews.
Validate identity
Confirm authorized signers using formal verification and maintain documentation demonstrating authority to bind the contractor entity.
Preserve audit trails
Store signed PDFs with metadata and timestamps to support inspections, dispute resolution, and internal audits.
Schedule renewals
Track license and insurance expirations proactively to avoid work stoppages or permit suspensions due to lapsed credentials.

Common errors that delay approval

  • Incomplete insurance details or expired policies often trigger immediate rejection and resubmission requirements.
  • Using inconsistent business names between license, tax ID, and insurance documents prevents automated verification.
  • Missing signatures or incorrectly formatted dates cause administrative holds and requests for corrected documents.
  • Failing to include required bond documentation for high-value projects leads to denial of permit issuance.

Key security and compliance features for electronic filings

Encryption in transit: TLS 1.2/1.3
Encryption at rest: AES-256
Audit trail: Timestamped action history
Certifications: SOC 2 Type II
Regulatory support: ESIGN and UETA compliance
Healthcare readiness: HIPAA available with BAA

Penalties and legal risks from incomplete or incorrect filings

Permit denial: Processing delayed or refused
License suspension: Administrative disciplinary action possible
Contract disputes: Enforceability questions if signatures are absent
Tax penalties: 1099-related fines for incorrect reporting
Inspection stops: Work may be halted pending correction
Insurance gaps: Claims risk if coverage not current

Time-sensitive dates to monitor

Track filing, renewal, and tax dates to maintain active contractor standing and avoid penalties.

License renewal frequency:

Typically every 1–3 years; varies by jurisdiction

Insurance renewal:

Match policy expiration to license cycle to avoid suspension

Tax reporting:

Provide W-9 on request; 1099-NEC due to recipients and IRS by Jan 31

Permit application turnarounds:

Local review times vary; plan for multi-week reviews

Bond expiry:

Ensure bond covers the full project and warranty period

Key processing milestones from submission to project start

A typical milestone sequence helps set expectations for review and issuance timelines.

01

Application Submitted

Authority receives the complete filing and starts intake review

02

Completeness Review

Clerical and attachment checks identify missing items

03

Technical Review

Inspections or plan review assess safety and code compliance

04

Permit Issued

Permission granted and project may commence on the noted start date

Frequently asked questions about Chapter 87 filings and eSigning

Answers to common questions about form completion, signatures, notarization, and recordkeeping for contractor filings.


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