A Construction License Agreement is a legal document that gives permission to a contractor or developer to temporarily access or use part of another person’s property during construction. This can include placing scaffolding, swinging a crane arm, or crossing into a neighbor’s land for equipment or worker access. It’s a crucial agreement that protects both parties from legal disputes and sets clear terms for the temporary use of space.
Why is a Construction License Agreement Important?
Legal Protection
When a construction project encroaches on or impacts a neighboring property, the property owner has legal rights. Without a Construction License Agreement, the builder could face trespassing claims or even lawsuits. This agreement makes the temporary use legal.Clear Terms for Use
The agreement outlines the area being used, how long the access will last, what type of work will occur, and how the property will be protected. It also includes terms for liability, insurance, and property restoration.Prevents Future Disputes
By documenting everything in writing, it avoids misunderstandings or conflicts between the contractor and the property owner. It also ensures that both parties agree on how and when the construction access ends.Insurance and Liability Coverage
The agreement often requires the contractor to carry insurance and take responsibility for any damage caused. This offers peace of mind to the neighboring property owner and keeps the project moving without legal delays.Supports Permitting and Compliance
In some cities, permits may not be issued without proof of a Construction License Agreement if the project affects public or private property. Having this document shows that your project meets legal requirements.
Common Situations That Require a Construction License Agreement
Swinging a crane or boom over a neighbor’s land
Installing scaffolding or safety netting that extends beyond the property line
Excavating near a shared wall or fence
Accessing a neighbor’s driveway or yard for equipment or materials
Temporary use of rooftop space in urban construction projects
What Should Be Included in a Construction License Agreement?
A well-drafted agreement should include:
Description of the property and affected area
Duration of the license
Type of access or use allowed
Hours of work
Insurance and indemnity clauses
Restoration or repair terms
Compensation, if applicable
Termination conditions
Construction License Agreement vs. Easement
A Construction License Agreement is different from an easement. A license is temporary and revocable, while an easement is usually permanent and recorded on the title. Licenses are better suited for short-term needs like construction, while easements are used for long-term access like driveways or utility lines.
Final Thoughts
If your construction project requires the use of neighboring land or airspace, don’t risk moving forward without a proper Construction License Agreement. It’s essential to protect yourself legally and keep your project on schedule.
For help drafting or reviewing your agreement, trust Crangle Law Firm. Our experienced legal team understands construction law and can help you avoid costly mistakes. Let Crangle Law Firm guide you through the legal details so you can build with confidence.
