Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.8 - Types of Construction Contracts

Current through Register Vol. 47, No. 3, July 24, 2024
The term "construction contract" is defined as an agreement
				  under the terms of which an individual, corporation, partnership or other
				  entity agrees to furnish the necessary building or structural materials,
				  supplies, equipment or fixtures and to erect the same on the project site for a
				  second party known as a sponsor Nonexclusive examples of the types of
				  construction contracts include: lump-sum contracts; cost plus contracts; time
				  and material contracts; unit price contracts; guaranteed maximum or upset price
				  contracts; construction management contracts; design built contracts; and
				  turnkey contracts.
The following is a nonexclusive list of activities and items
				  which could fall within the meaning of a construction contract or are generally
				  associated with new construction, reconstruction, alteration, or expansion of a
				  building or structure. The list is provided merely for the purpose of
				  illustration. It should not be used to distinguish machinery and equipment from
				  real property or structures since such a determination is factual. See rules
				  219.11(423) and 219.12(423) for details.
Ash removal equipment (installed as distinguished from
				  portable units)
Automatic sprinkler systems (fire protection)
Awnings and Venetian blinds which become attached to real
				  property
Boilers (installed as distinguished from portable
				  units)
Brick work
Builder's hardware
Burglar alarm and fire alarm fixtures
Caulking materials work
Cement work
Central air conditioner installation
Coal handling equipment (installed as distinguished from
				  portable units)
Concrete work
Counters, lockers (installed as distinguished from portable
				  units), and prefabricated cabinets
Drapery installation
Electric conduit work and items relating thereto
Electric distribution lines
Electric transmission lines
Floor covering which is permanently installed-see rule
				  701-1648.
				  (422,423) for an exception to this regarding carpeting
Flooring work
Furnaces, heating boilers and heating units
Glass and glazing work
Gravel work (excluding landscaping)
Installation of modular homes on foundations
Lathing work
Lead work
Lighting fixtures
Lime work
Lumber and carpenter works
Macadam work
Millwork installation
Mortar work
Oil work
Paint booths and spray booths (installed as distinguished
				  from portable units)
Painting work
Paneling work
Papering work
Passenger and freight elevators
Piping valves and pipe fitting work
Plastering work
Plumbing work
Prefabricated cabinets, counters, and lockers (installed as
				  opposed to portable units)
Putty work
Refrigeration units (central plants installation as
				  distinguished from portable units)
Reinforcing mesh work
Road construction (concrete, bituminous, gravel, etc.)
Roofing work
Sheet metal work
Sign installation (other than portable sign
				  installation)
Steel work
Stone work
Stucco work
Tile work-ceiling, floor and walls
Underground gas mains
Underground sewage disposal
Underground water mains
Vault doors and equipment
Wallboard work
Wall coping work
Wallpaper work
Water heater and softener installation
Weather stripping work
Wire net screen work
Wood preserving work