Sample Agreement and Conditions Document

8/9/2019 Sample Agreement and Conditions Document

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SAMPLE AGREEMENT AND CONDITIONS DOCUMENT

The Construction Work of this contract is between _____Contractor'sName______,____License Number______, ______Contractor's Address________, AND

_______Owner's Name_______, _____Owner's Address_________, for completion of_____Tpe of Work________!

"! Description of Work and Contract #rice

"!" Contractor a$rees to furnish all labor, materials, supplies,e%uipment, ser&ices, machiner,tools, and other facilities re%uired for the prompt and efficient completionof work describedto construct, accordin$ to the Drawin$s and (pecifications, a house located at____#ro)ect's(treet Address___!

"!* Drawin$s and (pecifications were prepared b____Desi$ner+Architect+#lan (er&ice____!Contractor will pro&ide additional asbuilt sketches and depictions thatdescribe workperformed!

"!- The Work will be done in strict accordance with applicable codes andordinances and to thefull satisfaction and acceptance of the Owner for the sum of ____Dollars andCents______ to bepaid in accordance with the #ament (chedule pro&isions of the lender'sconstruction loandocuments .or state other terms/!

*! Owner's 0esponsibilities

*!" The Owner will full de&elop Drawin$s and (pecifications withConstruction 1ana$er orArchitect prior to issuance of permit in a manner which allows Contractorninet .23/ das tocomplete biddin$ process! The Owner will pro&ide full information re$ardin$re%uirements forWork includin$ all co&enants and restrictions which appl to site! Codealterations or chan$esmade b inspectin$ a$enc durin$ appro&al process will be considered Chan$esaccordin$ to#ara$raph 4!

*!* The Owner will furnish the Contractor with a le$al sur&e anddescription of the pro)ectsite, and obtain and pa for the necessar permits, appro&als, easements, and&ariancesre%uired for Work!

*!- The Owner will furnish all necessar documents for water ser&ice,electrical ser&ice,


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natural $as or propane, sewer or septic, telephone, and tele&ision cable, andobtain and pafor installation of utilit ser&ices to pro)ect site when re%uired b #ermitApplication andWork (chedule!

*!- The Owner will be full ac%uainted with the Work and has bud$etauthorit to authori5epament to Contractor in accordance with the #ament (chedule pro&isions ofthe lender'sconstruction loan documents, to make Chan$es in the Work b mutual a$reementin writin$ withthe Contractor, to render decisions promptl consistent with Work (chedule andfurnishinformation e6peditiousl!

*!7 The Owner will communicate with Trade Contractors and (uppliersthrou$h the Contractor!

-! Contractor's 0esponsibilities

-!" The Contractor will carefull stud all Drawin$s and (pecificationsand will at oncereport to the Owner an error, inconsistenc or omission the Contractor madisco&er! TheContractor will do no Work without Drawin$s, (pecifications, or Chan$e Orderwith Owner'swritten appro&al!

-!* The Contractor will super&ise and direct the Work usin$ the mostprofessional skilland attention, and be solel responsible for all construction methods,techni%ues, se%uences,and procedures for completin$ all Work! The Contractor will coordinate TradeContractors and(uppliers to be in harmon with one another, and conform to #ro)ect (chedule!

-!- The Contractor will pro&ide and pa for all labor, materials,e%uipment, tools,e%uipment, machiner, transportation, facilities, and ser&ices necessar forthe propere6ecution and completion of the Work, e6cept as pro&ided in #ara$raph 2!

-!7 All materials and products furnished for the Work will be new and freefrom faults,defects, and conform to the Drawin$s and (pecifications, unless otherwisespecified b Owner!

8n the e&ent there are an discrepancies from the Drawin$s and (pecifications,the Contractorwill arran$e for the correction of such discrepancies and will notif theOwner on completionof the work performed to eliminate an such discrepancies! All Work not soconformin$ tothese standards will be considered defecti&e! 8f re%uired b the Owner, theContractor willfurnish satisfactor e&idence to the kind and %ualit of materials andproducts! The


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Contractor will make no de&iation from the Drawin$s and (pecifications unlessre%uested bthe Owner to do so! The Contractor will cause an Work to conform strictl tothe Drawin$sand (pecifications unless the Contractor recei&es written authori5ation fromthe Ownerdescribin$ in detail what Chan$es are to be made! 1inor de&iations ma be madeb theContractor from the Drawin$s and (pecifications as are normal in standardpractices of theconstruction industr and the practical application of materials!

-!4 The Contractor will pa all sales, business, consumer, use, and othersimilar ta6esre%uired b law!

-!9 The Contractor will pro&ide all notices to compl with all laws,ordinances, rules,re$ulations, and orders of an public authorit bearin$ on the performance ofthe Work!

The Contractor will also compl with an conditions, co&enants, andrestrictions whichma be applicable to the #ro)ect!

-!: The Contractor will emplo a competent (uperintendent to supplnecessar assistance,and be in attendance at the #ro)ect site durin$ the pro$ress of the Work toinsure correctperformance of the Work! The (uperintendent will be satisfactor to the Ownerand not bechan$ed e6cept with Owner's consent, unless the (uperintendent pro&es to beunsatisfactorto the Contractor and is in his emplo! The Owner will at all time deal withthe Contractor'semploees, Trade Contractors, and (uppliers throu$h the (uperintendent! The(uperintendentwill represent the Contractor and all communication $i&en to the(uperintendent will bebindin$ as if $i&en to the Contractor! All si$nificant communications will beconfirmedin writin$! The Contractor will be responsible to and answer directl to theOwner for theacts or omissions of the Contractor and of all of the Contractor's emploees,TradeContractors, and (uppliers, as well as the wa$es of all emploees and allother personsdirectl or indirectl emploed or retained b the Contractor in connection

with the Work!

-!; The Contractor will correct an defects in workmanship and+or materialsperformed orsupplied b the Contractor for the Work or which fails to compl with theDrawin$s and(pecifications, whether obser&ed on or after completion and whether or notfabricated,installed, or completed within the time allotted to the Owner b the lender,i!e!, si6 .9/


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months .or ;, "3, "* dependin$ on our situation/ from date of start! TheContractor willbear all costs and financial responsibilit for the failure to complete andha&eappro&ed the construction within the si6 .9/ month period .or ;, "3, "*dependin$ on oursituation/!

-!2 The Contractor a$rees to clean #ro)ect site and remo&e debris from thepremises aftereach phase of construction! uildin$ ?reen= philosoph!

7! #ament (chedule

7!" The Contract price will be paid to the Contractor in accordance withthe re%uiredpament schedule and incorporated b this reference are the lender'sdisbursementre%uirements to which the Contractor and Owner a$ree to submit .or state otherterms/!

7!* With re$ard to a final inspection and Certificate of Occupanc fromthe >uildin$Department, the Contractor a$rees to indemnif and hold harmless the Ownera$ainst anand all mechanics' or material men's liens attachin$ to the propert! 8f anliensattachin$ to the propert ha&e been recorded, then the Owner ma use an orthe entireamount of the final pament to remo&e such liens! Nothin$ in this subpara$raphwilllimit the Contractor's liabilit in #ara$raph "- of this Contract!

7!- The Contractor a$rees to complete Work in a lienfree condition forthe Owner! Anpament made prior to total completion of the Work will not be construed ase&idence ofacceptance of an part of the Work nor a wai&er of an claim b the Ownerarisin$ outof fault workmanship or materials or for failure of the Contractor to complstrictl

with the Drawin$s and (pecifications!

7!7 The Owner ma withhold "3@ of contract price or an pament which mabe necessarin the Owner's reasonable discretion to protect the Owner from loss becauseof

7!7!" Defecti&e Work not remedied


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7!7!* Thirdpart claims filed, or reasonable e&idence indicatin$ a probablefilin$ ofsuch claims

7!7!- Bailure of the Contractor to make paments promptl to TradeContractors, (uppliers,or for labor, materials, or e%uipment

7!7!7 0easonable doubt that the Work can be completed for the unpaid balanceof thecontracted sum

7!7!4 0easonable indication that the Work will not be completed within thecontractedtime

7!7!9 nsatisfactor e6ecution of the Work b the Contractor!

7!4 Binal pament b the Owner will not constitute a wai&er or an claims bthe Owner

includin$ claims for unsettled liens, fault or defecti&e work, failure of theWork tocompl with the re%uirements of the Drawin$s and (pecifications, an $uaranteeor warrantre%uired b the Work!

4! Chan$e Orders

4!" The Owner reser&es the ri$ht to perform portions of the Work on the#ro)ect b priora$reement with the Contractor! The Owner will be credited an amount e%ual tothe sumallowed in the pament schedule for the portion of Work performed b theOwner!

4!* The Owner ma order chan$es, modifications, additions, and+ordeletions to the Work!An such chan$es will not in&alidate the Contract! The time for the #ro)ectcompletionand the #ro)ect cost will be ad)usted b mutual a$reement in writin$ bContractor andOwner!

4!- Chan$es to the Work will onl be made b written order si$ned b theOwner andContractor!

9! Arbitration and Termination

9!" Arbitration

9!"!" Disputes between Owner and Contractor will be settled b mutuala$reement! 8f adispute cannot be settled within ten ."3/ das, the matter will proceed tobindin$arbitration accordin$ to procedures of the American Arbitration Associationafter


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notice and demand!

9!"!* 8f the Owner fails to be$in or complete portion of Work on the #ro)ectwhichb prior a$reement would be Owner's responsibilit, the Contractor ma, afterfi&e .4/das written notice, be$in or complete that portion of the Work! TheContractor willbe credited an amount e%ual to the sum allowed in the pament schedule for theportionof Work to be performed b the Owner!

9!"!- 8f the #ro)ect is stopped for a period of ten ."3/ das throu$h no actor faultof the Contractor, then the Contractor ma, after fi&e .4/ das writtennotice, recei&epament from the Owner for all work performed, and proceed to bindin$arbitration afternotice and demand!

9!"!7 8f the Contractor fails to correct defecti&e work or persistentlfails tosuppl materials or labor or e%uipment sufficient to perform Work, the Ownerma,after fi&e .4/ das written notice, order the Contractor to stop Work untilthe causefor such order has been eliminated!

9!* Termination

9!*!" 8f the Owner fails to make pament under the terms of this Contract,throu$hno fault of the Contractor, the Contractor ma, after ten ."3/ das writtennotice,terminate the Contract! The Owner will pa for work completed and an pro&enloss withrespect to materials, labor, or e%uipment, and reasonable profit applicable tothe Work!

9!*!* 8f the Contractor fails to carr out the Work in accordance to theA$reement andConditions (tatement, and Drawin$s and (pecifications, the Owner ma, afterten ."3/ daswritten notice, terminate the Contract, and finish the Work b whate&er methodthe Ownerdetermines! 8f the cost of completin$ the Work e6ceeds the balance due underthe terms of

the Contract, the difference is to be paid to the Owner b the Contractor!

9!*!- An Arbitration or Termination matters described in the Contract willbe submitted to the American Arbitration Association accordin$ to its rules!

:! #ro)ect (chedule

:!" Work commences when >uildin$ #ermit is issued, weather conditions arefa&orable to


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e6ca&ate, and Contractor's schedule allows!

:!* The Contractor will continue the Work in a timel fashion, andmaintain pro$ressdili$entl to completion with sufficient labor and material on site at alltimes!

:!- 8f at an time the Contractor is delaed in performin$ the Work bOwner re%uestedchan$es or additions, the #ro)ect (chedule will be e6tended b the same amountof time ascaused b the additional Work!

:!7 The Contractor will be e6cused from performance of Work due to riots,strikes, naturaldisasters, accidents, and an Act of ?od! 8n the e&ent that an such e&entpre&ents theContractor from performin$ Work, the Owner will not ha&e the ri$ht toterminate theContract!

:!4 The Date of (ubstantial Completion or Desi$nated #ortion of #ro)ect isthe date whenconstruction is sufficientl complete in accordance with the Drawin$s and(pecificationsso the Owner can occup or utili5e the #ro)ect for the use it is intended!

;! 8ndemnification

;!" The Contractor will indemnif and hold harmless the Owner and theOwner's a$ents andemploees from all claims, dama$es, losses and e6penses, includin$ lawer'sfees,relatin$ to the performance of the Work, pro&ided that an such claim, dama$e,loss ore6pense is attributable to bodil in)ur, sickness, disease, or death orin)ur of anperson or to dama$e to propert, includin$ loss of use, caused b a ne$li$entact of theContractor, a Trade Contractor or (upplier, or anone emploed b them!

;!* 8n all claims a$ainst the Owner or an of the Owner's a$ents oremploees, anemploee of the Contractor, an Trade Contractor or (uppliers, or anoneemploed bthem, or anone for whose acts an of them ma be liable, the indemnificationobli$ation

will not be limited in an wa b an limitation on the amount or tpe ofdama$es,compensation or benefits paable b or for the Contractor, an TradeContractor or(upplier under Worker's Compensation Act, Disabilit >enefits Act, or anotheremploment benefit act!

;!- All dama$e or loss to an propert in whole or in part b the Contractor,an Trade


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Contractor or (upplier, or anone emploed b an of them, or b anone, forwhose actsan of them ma be liable, will be remedied b the Contractor!

2! 8nsurance

2!" The Contractor will procure and maintain, durin$ the entire term ofthe #ro)ect, thefollowin$ insurance policies

2!"!" Worker's Compensation and


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Work contracted independentl b the Owner, the Owner a$rees that the Ownerwill pa alladditional premiums re%uired for additional insurance to Contractor on demand!

2!9 The Owner, at the Owner's option, ma purchase and maintain otherinsurance as theOwner ma deem appropriate!

"3! #re&ention of Liens

"3!" The Contractor a$rees to pa, when due, all claims for labor and+ormaterials furnishedfor Work, and to pre&ent the filin$ of an liens b mechanics or material men,orattachments, $arnishments or suits in&ol&in$ the title of the propert onwhich the Work isperformed! The Contractor a$rees, within fifteen ."4/ das after writtendemand is mailed tothe Contractor, at the address stated in this Contract b nited (tates mail,to cause the

effect of an such suit or lien to be remo&ed from the premises! 8n the e&entthe Contractorhas a dispute with a Trade Contractor, (upplier, or person supplin$ labor ormaterials tothe #ro)ect, the Contractor will bond the Owner a$ainst an loss from an suchclaim of liensand then ha&e the ri$ht to prosecute the claim of lien to a completion at theContractor'ssole cost and e6pense! 8n the e&ent the Contractor can cause lien to beremo&ed from anpolic of title insurance which the Owner ma obtain co&erin$ the realpropert sub)ect tothis Contract, then the Contractor will ha&e no obli$ation to bond a$ainstmechanic's lienand the Owner will accept title insurance polic as sufficient securit to theOwner topermit the Contractor to liti$ate claim of lien, without the necessit ofpostin$ a bond!

""! Work (afet

""!" The Contractor will be responsible for establishin$, super&isin$, andmaintainin$all safet precautions and pro$rams in connection with Work performed on the#ro)ect!

""!* The Contractor and Owner will compl with all federal, state, and local

laws andre$ulations applicable to the #ro)ect!

""!- The Contractor will take all reasonable steps to pre&ent dama$es,in)ur, orloss to

""!-!" All emploees performin$ the Work and all other persons who ma beaffected


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""!-!* All of the Work and materials, e%uipment, or products to be used onthe #ro)ect,whether in stora$e or on or off the site, and in the care, custod or controlof theContractor, or an Trade Contractor or (upplier

""!-!- All propert on the site or ad)acent to the site includin$ trees,shrubs, lawns,lots, pa&ements, roadwas, utilities, and structures not desi$nated forremo&al, relocation,or replacement!

"*! Assi$nment and (ubcontractin$

"*!" The Contractor will not assi$n an portion of the Work to an personor otherContractor howe&er, the Contractor will ha&e the ri$ht to subcontractportions of the Workto Trade Contractors of the Contractor's choosin$ without the necessit ofobtainin$

permission, either written or oral, from the Owner!

"*!* The Contractor will pa each Trade Contractor, on receipt of pamentfrom the Owner,amounts he ma determine appropriate, but consistent with lender'sre%uirements or of thisContract!

"-! ?uarantees

"-!" The Contractor $uarantees the Owner, and the Owner's successors ininterest, a$ainstan loss or dama$e arisin$ from an defect in materials furnished orworkmanship performedunder this Contract for a period of one .9/ ears from the date of Certificateof Occupancissued b the >uildin$ Department

"-!* Nothin$ in this Contract will dero$ate the Contractor's liabilit forpatent orlatent defects under applicable law!This a$reement is made .date/!(i$nature of Owner________________________(i$nature of Contractor______________________

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Sample Agreement and Conditions Document