Septic System Inspection Agreement (between home inspector and septic company)

This is an agreement (“Agreement”) between name of home inspector or inspector’s inspection company and name of person or company performing septic inspection, collectively referred to herein as “the parties.”     

1.    Septic System Inspection.  You will perform a complete inspection of the septic system at property address (“the property”) and provide us with a thorough written report (“report”) when you complete your inspection.  You understand that you will be working as a subcontractor for us.     

2.    Compensation. Upon receiving your report, we will pay you $__________.

3.    Prohibition on Bidding for Repairs.  You agree that you will not bid on any repairs that you recommend as a result of your inspection for a period of one year following the completion of your inspection.  You agree that you will not attempt to sell any other products or services to our client or to the property owner for a period of one year following the completion of your inspection.

4.    Insurance. You will, at your own expense, maintain in full force and effect the following insurance:

a.    auto insurance, as required by law, for any vehicle you use in the performance of any services under this Agreement;

b.    workers’ compensation coverage for your employees, if any participate in any way in your inspection.  If you are a sole proprietor, you represent that you have or have rejected such coverage.  You understand that you will not be covered by any workers’ compensation policy issued to us.  If you have employees, it is your responsibility to obtain workers’ compensation coverage for those employees.  If you fail to obtain such coverage, you will indemnify and hold harmless us, our agents, and our employees from and against any damages, claims and expenses arising out of or resulting from your work.  Upon request, you will execute such documents as are necessary to verify that you are an independent contractor and have obtained or waived other workers’ compensation coverage; and

c.    Errors and Omissions Insurance.  Your general liability insurance must be at least $300,000 per incident.

If you fail to obtain or keep such insurance in force and we suffer any loss because of such failure, you will indemnify and defend us for all such losses, including attorney’s fees and costs.

5.    Independent Contractor Status.  The parties agree that you are acting as an independent contractor—not an employee—and that nothing in this Agreement creates a joint venture, partnership, association, or other affiliation or relationship between the parties.  In no event will either party be liable for the debts or obligations of the other, except as specifically provided for in the Agreement.  We will treat you as an independent contractor for federal and state tax purposes.  To the extent required by law, we will issue a Form 1099 relating to compensation under this Agreement.  We will not withhold, on your behalf, any sums for income tax, unemployment insurance, Social Security, or any other withholding pursuant to any law or requirement of any governmental body, or make available any of the benefits afforded to our employees.  You shall be solely responsible for your own federal and state taxes on the compensation received from us, including Social Security taxes.  You will indemnify, defend, and hold us harmless from any and all loss, liability or expense arising from your failure to make such payments or withholding, if any.  If the Internal Revenue Service or any other governmental agency challenges your independent contractor status, we have the right to participate in any discussion or negotiation occurring with the agency. 

6.    Your Representations.  You represent that you are customarily engaged in an independent trade, occupation, profession, or business related to the services performed.  You represent that you have the right to enter into this Agreement without violating the rights of others or any applicable law, and that you have not and will not become a party to any agreement that conflicts with this Agreement.  You will indemnify, defend, and hold us harmless from any and all damages, claims and expenses arising out of or resulting from any claim that this Agreement violates any other agreements. 

7.    Not Assignable.  This Agreement may not be assigned by either party without the written consent of the other party.

8.    Expenses; Legal Action; Venue; Waiver of Jury.  In any legal action arising out of this Agreement, the losing party shall pay the prevailing party’s reasonable attorney’s fees and costs.  The parties waive trial by jury and agree that the exclusive venue for any such action shall be only in the county where we have our primary place of business.  You may not file suit against us unless you have first given us 30 (thirty) days’ written notice of the basis for the claim in sufficient detail for us to evaluate the claim. InterNACHI is not a party to this Agreement.  The exclusive venue for any action against InterNACHI will be in Boulder, Colorado, and the other terms of this paragraph 8 shall apply.    

9.    Governing Law. This Agreement shall be governed by the laws of the State of ______________.

10.  Reading; Review of Counsel.  The parties represent that they have carefully read every provision of this Agreement.  The parties further represent that each has had the opportunity to have qualified counsel review this Agreement.

11.  Voluntary Agreement.  The parties represent that each party enters into this Agreement of their own free will, free of any coercion or duress of any kind.

12.  Construction.  Both parties had an opportunity to have counsel review this Agreement.  Therefore, the fact that our lawyer drafted the Agreement shall not be considered in construing any ambiguity a Court may find in this document. 

13.  Entire Agreement; Modification.  This Agreement contains all the representations by each party to the other and expresses the entire understanding between the parties with respect to the transaction at issue.  The parties agree that all prior communications are merged into this Agreement, and that there are no terms or conditions other than those set forth herein.  No statement or promise by us or our agents shall be binding unless reduced to writing and signed by us.  No modifications of this Agreement shall be binding unless they are in writing and signed by the parties.


Independent Contractor                             (Date)


Independent Contractor’s EIN or SSN



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