Dear Subcontractor,

Savant Construction is in the process of updating our current data base of subcontractors. Our goal is to verify that

all subcontractors providing bids have the ability to meet all required qualifications prior to providing any Bid

Submittals.

To this end, we are providing a package of documents for your review and acceptance. The enclosed information

will be required from all subcontractors whether or not your company has previously provided services to Savant

Construction and is required regardless of contract monetary value.

Please find enclosed the following items for your review and acceptance:

A sample of Savant Construction’s standard subcontract agreement to be used with all subcontractors

A sample of Savant Construction’s standard Letter of Intent

A list of all mandatory insurance requirements and sample certificate

o A copy of your certificate of insurance is required

Immigration Reform and Control Act – Letter of Compliance

Subcontractor Letter of Acceptance / Compliance

Prior to being considered to work for Savant Construction as a subcontractor, your company must sign and return

the following items.

Current W-9

Copy of your Contractor’s License

Certificate of Insurance (must include required endorsements)

Copy of your company IIPP (Injury & Illness Prevention Program)

Signed pages 11 & 12 of this packet

Upon receipt of the items, your company will then be added to the list of pre-qualified subcontractors. Once you

have been notified that one of your bids has been approved, we will provide a letter of intent as well as

instructions on how to proceed.

Thank you and we look forward to working with you on future projects.

Sincerely

Savant Construction, Inc.

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Sample

SUBCONTRACT AGREEMENT

This Agreement is made this XXXX day of XXXX , XXXX between SAVANT CONSTRUCTION INC.

(Contractor) and XXXXXXXXXXXXXXXXXXXXXXXXX (Subcontractor). The work described in Section 1

below shall be performed in accordance with the prime contract between SAVANT CONSTRUCTION INC.

And XXXXXXXXXXXXXXXXXX (Owner), financed by XXXXXXXXXXXXXXXXXXX and in accordance with all

plans, specifications and other contract documents attached to or incorporated into the prime

contract for the project known as XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX. Standard Savant Exhibits

that will be included in every subcontract issued are Trash Exhibit and Osha Notice and

Acknowledgement.

SECTION 1. SCOPE. Subcontractor agrees to furnish all labor, materials, equipment and other

facilities required to complete the following work:

SPEC - $0.00

SECTION 2. PRICE. Contractor agrees to pay subcontractor for the strict performance of his

work, the sum of: XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX DOLLARS AND 00/100 ($ 00,000.00)

subject to adjustments for changes in the work as may be directed in writing by Contractor.

Payment shall be made in progress payments, less retention, based on a percent of labor and

material which have been incorporated into the work of improvement; progress payments to

Subcontractor shall be made only with sums received by Contractor from Owner for work performed

by Subcontractor as reflected in Contractor's applications for payment. Final payment of the

balance owed to Subcontractor shall be due fourteen days after receipt by Contractor of final

payment from Owner for Subcontractor's work. Subcontractor agrees to furnish, if and when

required by Contractor, payroll affidavits, receipts, vouchers, notarized releases of claims

for labor, material and from his subcontractors, in form satisfactory to Contractor, prior to

receipt of any payment. Contractor may, at its option, make any payment or portion thereof by

joint check payable to Subcontractor and any of its subcontractors, suppliers and/or material

men.

SECTION 3. ENTIRE AGREEMENT. This Agreement represents the entire agreement between Contractor

and the Subcontractor and supersedes any prior written or oral representations. Subcontractor

and his subcontractors are bound by the prime contract and any contract documents incorporated

therein insofar as they relate in any way, directly or indirectly, to the work covered by this

Agreement.

SECTION 4. TIME/CONSTRUCTION SCHEDULE. Time is of the essence of this Agreement. Subcontractor

shall provide Contractor with scheduling information in a form acceptable to Contractor and

shall conform to Contractor's schedule (EXHIBIT N/A), including any changes made by Contractor

in the scheduling of work. Subcontractor shall coordinate its work with that of all other

contractors, subcontractors and suppliers so as not to delay or damage their performance.

SECTION 5. CLEAN UP. Subcontractor shall provide all necessary labor and disposal services

required to keep their work area broom clean and free of trash and debris daily. Should

subcontractor fail to perform this portion of the agreement, after written notice from

contractor, contractor shall have the right to correct said deficiencies and charge the cost

thereof to subcontractor.

SECTION 6. DELAY. In the event that Subcontractor's work is delayed for any reason, including

acts of the Contractor, Subcontractor's sole remedy shall be an extension of time equal to the

period of delay, provided Subcontractor has given Contractor written notice of the commencement

of delay within 48 hours of its occurrence. In the event that Contractor, in its sole

discretion, should seek compensation from the Owner as a result of any delay, Subcontractor

shall be entitled to any equitable portion of any amount recovered by Contractor, minus an

aliquot share of the cost of pursuing said claim. This provision shall not be construed to

require the Contractor to pursue any delay claim against the Owner or any other party.

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Sample

SECTION 7. CHANGES IN WORK. Subcontractor shall make no changes in the work covered by this Agreement

without written direction from the Contractor. Subcontractor shall not be compensated for any change

which is made without such written direction. No changes in the work covered by this Agreement shall

exonerate any surety of any bond given in connection with this Agreement.

SECTION 8. CLAIMS. If any dispute shall arise between Contractor and Subcontractor regarding

performance of the work, or any alleged change in the work, Subcontractor shall timely perform the

disputed work and shall give written notice of a claim for additional compensation for the work

within ten (10) days after commencement of the disputed work. Subcontractor's failure to give

written notice with the ten (10) day period constitutes an agreement by Subcontractor that it will

receive no extra compensation for the disputed work.

SECTION 9. INSPECTION AND PROTECTION OF WORK. Subcontractor shall make the work accessible at all

reasonable times for inspection by the Contractor. Subcontractor shall, at the first opportunity,

inspect all material and equipment delivered to the job site by others to be used or incorporated in

the Subcontractor's work and give prompt notice of any defect therein. Subcontractor assumes full

responsibility to protect the work done hereunder until final acceptance by the Architect, Owner, and

Contractor.

SECTION 10. LABOR RELATIONS. Subcontractor shall maintain labor relations policies in conformity with

the directions of the Contractor and shall comply with those labor agreement(s) applicable to the

work performed under this Agreement, to the extent required by the Contractor. If the Contractor is

bound to any collective bargaining agreement(s) which require that the work performed under this

Subcontract be performed pursuant to the terms and conditions of such agreement(s), Subcontractor

shall perform such work in conformity with the terms and conditions of such agreement(s).

SECTION 11. TERMINATION. (I)Should Subcontractor fail to rectify any contractual deficiencies,

including failure to pay its creditors or staff the job with appropriate man power, Contractor shall

have the right to take whatever steps he deems necessary to correct said deficiencies and charge the

cost thereof to Subcontractor, who shall be liable for the full cost of Contractor's corrective

action, including reasonable overhead, profit and attorneys' fees. (ii)Contractor may at any time

and for any reason terminate Subcontractor's services hereunder at Contractor's convenience; in the

event of termination for convenience, Subcontractor shall recover only the actual cost of work

completed to the date of termination plus ten percent (10%) of the actual cost of the work for

overhead and profit. Subcontractor shall not be entitled to any claim or lien against Contractor or

Owner for any additional compensation of damages in the event of such termination.

SECTION 12. INDEMNIFICATION. To the fullest extent permitted by law, Subcontractor shall defend and

indemnify and hold harmless Contractor and Owner and their agents and employees from claims, demands,

costs, attorney fees, causes of action and liabilities of every kind whatsoever arising out of or in

connection with Subcontractor’s work performed for Contractor and any claims against Contractor or

its agents or employees by any employees of sub-contractor, anyone directly or indirectly employed by

any of them or anyone for whose acts any of them maybe liable, the indemnification obligation under

this paragraph shall not be limited in any way by any limitation on the amount or type of damages,

compensation or benefits payable by or for subcontractor under worker’s compensation acts, disability

benefit acts or other employee benefit acts. This defense and indemnity shall extend to claims

occurring after this agreement is terminated as well as while it is in force. The defense indemnity

shall apply regardless of any active and/or passive negligent act or omission of the Contractor,

Architect, or Owner, or their agents or employees. The defense and indemnity set forth in this

section shall not be limited by any insurance requirements, or by any other provision of this

Agreement. All work done at a site or in preparing or delivering materials or equipment to the site

shall be at the sole risk of Subcontractor until the work is accepted by contractor.

SECTION 13. INSURANCE. Prior to commencement of any work, and until all obligations under this

contract are fulfilled, subcontractor and any lower tier subcontractor shall, at its sole expense

Maintain not less than the following coverage and limits of insurance which shall be maintained under

forms of policies and from insurance companies satisfactory to owner. Insurance shall be placed with

insurers with a A.M. Best Rating of not less than A-VII and insurers and must be licensed to do

business in the jurisdiction in which the project is located.

1. Workers’ Compensation Insurance in compliance with applicable Federal and State Laws. A waiver

Subrogation endorsement in favor of the general contractor and owner is required.

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Sample

2. Employers Liability Insurance with a limit not less than $1,000,000 per accident or disease in the

jurisdiction where you operate.

3. Commercial General Liability Insurance on an ISO occurrence form CG0001 or its equivalent with

limits of insurance not less than:

$1,000,000 Each occurrence

$1,000,000 Personal & advertising injury

$2,000,000 General aggregate

$2,000,000 Products-completed operations aggregate

Coverage shall include:

- Per project general aggregate endorsement.

- Explosion, collapse and underground coverage.

- Coverage for claims arising out of subsidence or earth movement.

4. Automobile Liability Insurance with limits not less than $1,000,000 each accident and insuring

liability Arising out of the ownership, maintenance or use of any owned, hired, borrowed or non-owned

vehicles.

5. Pollution Liability Insurance is required for any environmental consulting or pollution

remediation work, covering claims arising from the release or removal of any hazardous construction

materials or pollutants. The limits of coverage shall not be less than $1,000,000 per occurrence. If

contractor is responsible for transporting hazardous materials or waste, they will furnish evidence

of Pollution Automobile Liability coverage in the form of a MCS 90 endorsement and the ISO form CA

9948. (Pollution Liability Broadened Coverage for Business Auto).

6. Professional Liability coverage is required if subcontractor or their consultants provide

design/build services to the project. The Limits of liability shall not be less than $1,000,000 per

claim, and if coverage is written a claims-made basis, shall be maintained for a minimum of 3 years

following project completion. Renewal or replacement policies shall maintain a retroactive date that

is prior to the start of this project and shall provide for an extended reporting period of not less

than 12 months.

7. Riggers Liability coverage is required if subcontractors work involves cranes or other rigging of

property. Adequate limits of coverage will be provided to protect the full insurable replacement

value for loss or damage to property being lifted, hoisted or rigged.

8. Installation floater coverage shall be maintained by all subcontractors to insure against loss or

damage to their tools, equipment, temporary jobsite structures, jobsite materials stored offsite or

in transit to the jobsite, and to their work at site.

9. Evidence of insurance on the above insurance requirements shall be provided on a Certificate of

Liability Insurance (Accord form 25-s) providing not less than 30 days notice of cancellation by

deleting “endeavor to” and “but failure to mail such notice shall impose no obligation or liability

of any kind upon the company, its agents or representatives” certificates of insurance, and required

endorsements, shall be provided for 2 years following completion of the project.

10.Additional insured endorsement to the Commercial General Liability Policy is required and will

name contractor and project owner as additional insured on ISO form CG2010 1185 (or its equivalent)

and provide such insurance is primary coverage and any coverage carried by owner or contractor is

excess insurance and will not contribute with this insurance.

11.Furnishing insurance certificates and additional endorsements to owners shall in no way limit or

relieve subcontractor of their duties and responsibilities in this agreement. If higher limits or

other forms of insurance are required by owner, contractor will immediately comply with such

requirements. Subcontractor shall furnish certified copies of their insurance policies upon request

from the owner.

SECTION 14. CLAIMS RESOLUTION. Any claims resolution procedure incorporated in the prime contract

shall be deemed incorporated in this Agreement, and shall apply to any disputes arising hereunder.

In the absence of a claims resolution procedure in the prime contract, the parties hereto shall be

obligated to submit any and all claims, except those which have been waived by the making or

acceptance of final payments, to the binding arbitration which shall be in accordance with the

applicable law in any court having jurisdiction.

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Sample

SECTION 15. WARRANTY. Subcontractor warrants to Owner, Architect and Contractor that all materials

and equipment furnished shall be new, free from faults and defects and of good quality.

Subcontractor hereby warrants its work against all deficiencies and defects for the period required

by the prime contract or the longest period permitted by the law of this State, whichever is less.

SECTION 16. SPECIAL PROVISIONS:

CONTRACTORS ARE REQUIRED BY LAW TO BE LICENSED AND REGULATED BY THE CONTRACTORS STATE LICENSE BOARD.

ANY QUESTIONS CONCERNING A CONTRACTOR MAY BE REFERRED TO THE REGISTRAR OF THE BOARD, WHOLE ADDRESS

IS: Contractors State License Board, P. O. Box 26000, Sacramento, CA 95826.

SECTION 17. DAMAGES CAUSED BY DELAYS: If Subcontractor should default in performance of the work

described in Section 1 or should otherwise commit any act which causes delay to the prime contract

work, Subcontractor shall be liable for all losses, costs, expenses, liabilities and damages,

including consequential damages and liquidated damages, sustained by the Contractor, or for which

Contractor may be liable to Owner or any other party because of the Subcontractor’s default.

SECTION 18. LENDER INFORMATION:

Dated: Dated:

CONTRACTOR SUBCONTRACTOR

SAVANT CONSTRUCTION, INC XXXXXXXXXXXXXXXXXXXXXXXXXXX

By: By:

Print Name: XXXXXXXXXXXXX Print Name:

Address: PO Box 636 Address: XXXXXXXXXXXXXXXXXXXXX

Chino, CA 91708 XXXXXXXXXXXXXXXXXXXX

Contractor’s License No. 596646 Contractor’s License No. XXXXXX

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Sample

EXHIBIT ____

Job Name

TRASH DISPOSAL AND JOBSITE CLEAN UP POLICY:

As outlined in the specifications and included in your subcontract agreement,

all contractors are to provide the necessary labor and disposal services required

to keep their work area broom clean and free of trash and debris daily. In an

effort to simplify the coordination of this effort and control the costs for all

parties, Savant will furnish dumpsters on our jobsite for subcontractors use and

charge the cost of these services to each contractor as outlined below:

CONCRETE: $ 700.00

MASONRY: 2,100.00

STONE & PRECAST: 700.00

STRUCTURAL STEEL: 700.00

ROUGH CARPENTRY: 931.00

ROOF STRUCTURE: 931.00

FINISH CARPENTRY: 175.00

INSULATION: 350.00

ROOFING: 700.00

SHEET METAL: 350.00

OVERHEAD DOORS: 175.00

ALUM. STOREFRONT, GLASS & GLAZING: 175.00

METAL STUD & DRYWALL: 931.00

LATH & PLASTER: 2,100.00

CERAMIC, QUARRY TILE: 350.00

ACOUSTIC CEILINGS: 700.00

FRP & MARLITE: 175.00

RESILIENT FLOORING, CARPET: 175.00

PAINTING: 350.00

FIRE PROTECTION: 175.00

PLUMBING: 700.00

HVAC: 700.00

ELECTRICAL: 2,100.00

These prices were determined using a base cost of $700.00 per dumpster.

Demolition contractors are responsible for their own dumpsters and trash

disposal services. Subcontractors will provide all labor necessary to dispose of

debris daily. Should subcontractors fail to perform this work, Savant will

furnish the necessary labor and back-charge the subcontractor.

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Sample

Exhibit ____

OSHA Notice and Acknowledgment for ______________________

Savant Construction, Inc. (Savant) is increasingly aware of heightened OSHA activity on its jobsites. All

Subcontractors should be aware of the potential for OSHA inspections and citations at all times as well.

While some of the safety infractions cited may seem minor or insignificant, they still require much time

and attention to address. All Subcontractors should be aware that as the General Contractor on the

project, Savant may be considered under applicable law to be the Controlling Employer for safety

purposes and therefore is frequently subject to the same citations issued to any Subcontractors.

It is the policy of Savant that all citations with monetary fines issued to Savant will be back-charged to

the responsible Subcontractor, in addition to any fines assessed directly to the Subcontractor. It is also

Savant’s policy that any legal costs incurred with Savant’s choice of legal counsel to defend citations or

mitigate fines issued to Savant will also be back-charged to the responsible Subcontractors. All

Subcontractors should be aware that citations issued to Savant can impact future project awards to

Savant and therefore to Subcontractors.

It is Savant’s expectation that all applicable safety policies be adhered to at all times by all

Subcontractors on its jobsites. All Subcontractors should re-double their efforts to train and equip their

employees to operate at the highest level of safety possible, which means all Subcontractors should be

fully trained in the safety issues that affect their scope of work particularly. The proper use of safety

caps for exposed rebar and concrete forming stakes, as well as the proper use of high reach lifts, are two

topics for special attention, based on recent citation experiences.

As an acknowledgment and acceptance of these policies, Savant requires that the Safety Director and a

Corporate Officer/Company Owner sign and date this subcontract attachment.

__________________________________________________

Subcontractor Name

__________________________________________________ ________________________

Safety Director – Print and Sign Name Date

__________________________________________________ ________________________

Corporate Officer or Company Owner - Print and Sign Name Date

_____________________

Title

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RE:  Letter of Intent    Dear Subcontractor,  Thank you for your proposal.  I am pleased to inform you that your proposal has been accepted pending review or your city business  license, contractor’s  license and certificate of  insurance.   Once  these are verified and we have a certificate of insurance that meets Savant’s requirements in place, a subcontract agreement will be  sent  to you.   This  letter  serves as your notice  to proceed pending our  review and receipt of the above.  Please  send  us  copies  of  your  city  business  license,  contractor’s  license  and  certificate  of  insurance immediately.   Also, please send us 6  sets of submittals and/or  shop drawings  (if  required) before  the start of the job.  You are not authorized to order materials or enter the jobsite until this information is received and accepted  in writing by Savant.    If you have any questions regarding  these requirements, please contact our office.   Please provide us with a  list of contacts for your company that  includes cell phone numbers and e‐mail addresses for the job foreman and all employees working on this project.  Sincerely,  SAVANT CONSTRUCTION, INC.    Project Manager 

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Savant Construction Insurance Requirements Prior to commencement of any work, and until all obligations under this contract are fulfilled, subcontractor and any lower tier subcontractor shall, at its sole expense maintain not less than the following coverage and limits of insurance which shall be maintained under forms of policies and from insurance companies satisfactory to owner. Insurance shall be placed with insurers with an A.M. Best rating of not less than A-VII and insurers and must be licensed to do business in the jurisdiction in which the project is located. 1. Workers’ Compensation Insurance in compliance with applicable Federal and State Laws. A waiver of subrogation endorsement in favor of the

general contractors and owner is required. 2. Employers Liability Insurance with a limit not less than $1,000,000 per accident or disease in the jurisdiction where you operate.

3. Commercial General Liability Insurance on an ISO occurrence form CG0001 or its equivalent with limits of insurance not less than:

$1,000,000 Each Occurrence

$1,000,000 Personal & Advertising Injury

$2,000,000 General Aggregate

$2,000,000 Products – Completed Operations Aggregate

Coverage Shall Include:

Per project general aggregate endorsement

Explosion, collapse and underground coverage

Coverage for claims arising out of subsidence or earth movement 4. Automobile Liability Insurance with limits not less than $1,000,000 each accident and insuring liability arising out of the ownership,

maintenance or use of any owned, hired, borrowed or non-owned vehicles. 5. Pollution Liability Insurance is required for any environmental consulting or pollution remediation work, covering claims arising from the

release or removal of any hazardous construction material or pollutants. The limits of coverage shall not be less than $1,000,000 per occurrence. If contractor is responsible for transporting hazardous materials or waste, they will furnish evidence of Pollution Automobile Liability coverage in the form of a MCS 90 endorsement and the ISO form CA 9948. (Pollution Liability Broadened Coverage for Business Auto).

6. Professional Liability coverage is required if subcontractor or their consultants provide design/build services to the project. The limits of liability shall not be less than $1,000,000 per claim, and if coverage is written a claims-made basis, shall be maintained for a minimum of 3 years following project completion. Renewal or replacement policies shall maintain a retroactive date that is prior to the start of this project and shall provide for an extended reporting period of not let less than 12 months.

7. Riggers Liability coverage is required if subcontractors work involves cranes or other rigging of property. Adequate limits of coverage will be provided to protect the full insurable replacement value for loss or damage to property being lifted, hoisted or rigged.

8. Installation floater coverage shall be maintained by all subcontractors to insure against loss or damage to their tools, equipment, temporary jobsite structures, jobsite, materials stored offsite or in transit to jobsite, and to their work at site.

9. Evidence of insurance on the above insurance requirements shall be provided on a Certificate of Liability Insurance (Accord form 25-s) providing not less than 30 days notice of cancellation by deleting “endeavor to” and “but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives” certificates of insurance, and required endorsements, shall be provided for 2 years following completion of the project.

10. Additional insured endorsement to the Commercial General Liability Policy is required and will name contractor and project owner as additional insured on ISO form CG20 10 11 85 (or its equivalent) and provide such insurance is primary coverage and any coverage carried by owner or contractor is excess insurance and will not contribute with this insurance.

11. Furnishing insurance certificates and additional endorsements to owners shall in no way limit or relieve subcontractor of their duties and responsibilities in this agreement. If higher limits or other forms of insurance are required by owner, contractor will immediately comply with such requirements. Subcontractor shall furnish certified copies of their insurance policies upon request from the owner.

12. Please see attached sample certificate and endorsements.

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Subcontractors Certification of Employees Authorization to Work in the United States In compliance with the Immigration Reform and Control Act of 1986 (“IRCA”), Savant is committed to entering into agreements with subcontractors who employ only those individuals that are authorized to live and work in the United States. Therefore, we require you certify that the Employment Eligibility Verification process has been completed and that your employees on this project are eligible to live and work in the United States. I certify that the verification process has been complied with and all employee documents are genuine and accurate. ______________________________ ______________________________ Signature Printed Name ______________________________ _______________________________ Title Company

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Letter of Acceptance After reviewing the items listed below please initial to acknowledge that you have read, understand and accept the terms set forth in this packet. _____ - Subcontract Agreement and Standard Exhibits Sample _____ - Letter of Intent Sample _____ - Insurance Requirements & Sample Certificate _____ - Certificate of Insurance naming Savant Construction as additional insured _____ - Immigration Reform and Control Act verification _____ - Proposals are to include acknowledgement that subcontractor is in compliance with “Bidders Requirements”

on Savant Construction’s web site. Please sign this form to indicate acceptance and compliance with items listed above and send back to Savant along with a Certificate of Insurance listing Savant Construction, Inc., 13830 Mountain Avenue, Chino, CA as additional insured for all operations. _____________________________ ____________________________ Company Name Signature & Date _____________________________ Name & Title

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