Terms & Conditions for Example Project
Standard Construction Agreement
|Project Name||Example Project|
|Prepared By||Shaun Podenak|
LEGAL DUTIES OF CONTRACTOR AND OWNER IMPLIED BY LAW
- All work is to be completed in a workmanlike manner.
- When the work is completed the property shall be free and clear of liens of material suppliers and Subcontractors relating directly to the work of this Contractor.
- All work shall be in conformity with the building code.
- Construction shall follow plans and specifications for the work.
- The work will be performed in the proper sequence of construction.
- Neither party will unreasonably delay performance of the contract.
- Both parties will cooperate in the construction and performance of their respective duties.
- Parties warranty that information provided for the solicitation of bid proposals was not misleading.
- Parties shall do business in a manner consistent with the law and in good faith.
PARTIES TO THE AGREEMENT
Bid Unity, contractor license number (If Applicable), of 8267 Causeway Blvd B, Tampa, FL 33619 is the Contractor hereinafter referred to as Contractor.
(Name)________________________________ of (Address)________________________________________________________, is the counter party hereinafter referred to as Customer.
The work of this contract is to be performed on the property located at 8267 Causeway Blvd, Suite B, Tampa, FL 33619.
DELIVERY OF OFFICIAL CORRESPONDENCE AND NOTICES
Parties agree to accept service of written notices at the addresses above.
EFFECTIVE DATE OF THIS CONTRACT
The Effective Date of this Agreement shall be the date upon which the last of the parties whose execution of this Agreement is required in order to make this Agreement binding on the Customer and the Contractor, has executed this Agreement, and any Deposit required to be paid hereunder has been paid in full to Contractor.
NO PRIOR REPRESENTATIONS MADE BEFORE EXECUTION OF THIS AGREEMENT
This is the entire agreement between Contractor and Customer. Neither Contractor nor any of its agents has, at any time, made to Customer any representation, past or present, true or false, as to any material fact, upon which Customer has relied, nor upon which Contractor intended Customer to rely, in entering into this Agreement, except those which appear expressly herein. Both parties agree that this Agreement contains the entire agreement between the parties. This Agreement may not be amended except by a written Change Order or Addendum which is executed by both Contractor and Customer, and paid for as provided herein if applicable.
The Contract Documents shall be limited to this Agreement and its exhibits which include the following:
Contractor's Proposal 1009 establishing the project value of $57,286.03 and prepared by Shaun Podenak. Work which is not identified on the proposal is specifically excluded from the contract price. Preparation or modification of opening structure is specifically excluded from Contractor's scope of responsibility.
Specifications corresponding to the proposal as per Contractor's Product Submission to be approved in a written format by the Customer or owner's representative prior to the execution of the work by Contractor and Customer.
Construction Plans and Specifications which are referenced within Contractor's proposal.
Change Orders executed by both Customer and Contractor and paid for by Customer.
These constitute the only "Contract Documents." The Contractor shall not be obligated to construct any work or furnish any materials other than what is called for expressly in the Contract Documents. In the event the scope of work in the Plans differs from the Contractor's Proposal, Contractor'sProposal shall control over the Plans as to the scope of work. In the event products in the Specifications differ from the products approved by the Customer in Contractor's Product Submission, Customer's approval of Contractor's Product Submission shall control over the Specifications as to the products to be used in construction. In the event a Change Order is signed by both parties and funded by the Customer, the Change Order shall become a part of the Contract Documents.
The Draw Schedule for progress payments to the Contractor shall be in accordance with that Agreed Draw Schedule to be determined at a later date.
PAYMENT DUE DATE
Payment shall be due and owing upon completion of a scheduled draw activity. Payment shall be made to the Contractor within fifteen (15) days of notice of completion of a scheduled draw activity to be considered timely made. If payment is not timely made, then without notice to the Customer, the Contractor may elect any of its rights under the Default Clause of this Agreement. In the event the Customer refuses or fails to provide payment when due, then this shall constitute a material default for which the Contractor may have recourse to any of its rights under the Default Clause of this agreement.
The Customer shall make all payments when due under the terms of this agreement. In the event a payment, or any portion thereof, is not timely made, then the Customer shall owe to the Contractor interest on the past due payment at the maximum rate allowed by law, from the date when the payment was due until the date the payment is made, whether before or after litigation and the entry of a judgment. The right to past due interest on late or unpaid payments is cumulative to, and not in place of, the Contractor's other rights and remedies under this agreement. In the event the Contractor waives past due interest on any one or more occasions, such a waiver shall not constitute a waiver of the right to past due interest on any other occasions.
FORM OF PAYMENT
Payment shall be made in current US funds in the form of cash or a check.
Where the Customer prefers to use a credit card to make payment, a convenience fee of three percent shall be additive to the amount of the draw payment such that ninety-seven percent of the amount paid by Customer shall be equal to the amount of the required draw payment.
The due date of the final payment shall be the completion of punch list work items. In the event that Customer hinders Contractor's efforts to complete punch list items then Customer shall remit final payment immediately to Contractor. The responsibility of the Contractor to complete the punch list work items shall survive Customer providing final payment.
PUNCH LIST PROCESS
Upon notice from the Contractor of the substantial completion of the work of Contractor, Customer shall immediately make Payment of all amounts then due and owing, at which time Contractor shall furnish the work to Customer, and possession thereof to the Customer.
Within Fifteen (15) days after making such Final Payment, Contractor and Customer shall perform a "Final Walk Through" of the building, and at such Final Walk Through, Customer and Contractor shall prepare and sign, a written "Final Punch List Report", consisting of a Punch List of those work items identified in the Final Walk Through which do not conform to the Contract Documents or Change Order(s) or which require minor repair due to damage or incomplete work by the Contractor or its Subcontractor. A copy of the Final Punch List Report shall be furnished by the Contractor to the Customer. The Contractor shall have SIXTY (60) days from the date of the signing of the Final Punch List Report in which to perform work to conform any items on the Final Punch List Report to the requirements of this Agreement and the Contract Documents. Failure or refusal of Customer to schedule and attend the Final Walk Through with Contractor within fifteen (15) days, and to timely execute said Punch List, shall constitute the Customer's final, conclusive acceptance of the work and materials in their condition at the time of Contractor's notice of substantial completion. Customer shall permit access by the Contractor and his Subcontractor during regular business hours to the building for performance of any Punch List work. At no time shall any portion of the Total Price or the Final Payment on Completion be withheld by Customer(s) for any purpose, including for the purpose of forcing Contractor to perform any repairs, including without limitation those repairs provided for in the Punch List Report. Delivery of the Payments due to Contractor is a condition precedent to the duty to perform any work provided for in the Punch List Report and the duty to furnish the keys to and possession of the Work to the Customer. Delivery of the Final payment to Contractor is also a condition precedent to the initiation of any litigation against the Contractor for any cause of action related to the performance of the work provided for in the contract for construction.
Customer shall be provided warranty guarantees by Contractor and/or material supplier(s) for finish materials and workmanship upon completion of the project and final payment having been provided by the Customer. Contractor's warranty shall endure for one year beginning on the date of substantial completion.
Change Orders. No additional work, labor or materials requested by Customer, or required by the action of any governmental agency, or made necessary by the discovery of hidden or undisclosed conditions on the Property, or made necessary by defects in surveys, tests, plans and/or specifications supplied by the Customer or defects in the Property if supplied by the Customer, and which is not provided for herein or in the Plans and Specifications, shall not be furnished or performed by Contractor, unless and until Customer and Contractor execute a written and dated Change Order, which shall describe the additional work, labor or materials, and which shall provide for the immediate payment of additional compensation to the Contractor therefor or a credit to the Customer, as may be applicable, and which shall provide for a change in the date of completion. Contractor shall furnish the Change Order to the Customer, and the Customer shall immediately execute the Change Order and return the signed Change Order to the Contractor, and shall simultaneously therewith pay to Contractor any additional funds due thereunder in the full value of the Change Order. If a reduction in the Purchase Price shall be required by any Change Order, then such reduction shall be and become a credit against the Purchase Price on the Closing Statement and shall be applied to reduce the Purchase Price or final payment due upon completion of the Punch List. All Change Orders shall be and are amendments to this Agreement. All Change Orders shall include a THIRTY-FIVE PERCENT (35%) overhead and profit charge to Contractor above the cost of any labor and materials to Contractor of such Change Order. In addition, for each Change Order there shall be paid to Contractor an administration fee of $200.00, regardless of whether the Change Order calls for an increase or decrease in the Purchase Price provided for herein. No Change Order shall be effective to amend this Agreement unless and until the Change Order is signed and dated by both parties, and the additional price for said Change Order is paid in full. Should the additional materials or labor required for performance of a Change Order be delayed in delivery, and/or should a Change Order for any reason result in delay in performance of other work, Contractor shall be entitled to stop or suspend work, and shall be paid an additional fee for restart of work, and any increases in cost of work due to delay, and the Completion Date shall be extended by a time period equal to such delays.
LIMITATIONS OF CONTRACTORS RISK
Customer shall be responsible for the risk of loss during construction and shall maintain builder's risk insurance as the Customer determines to be necessary. Additionally, Customer is responsible for providing security measures to protect materials stored on the project site as the Customer determines to be necessary.
In the event of a loss during construction Customer or Contractor may terminate this Contract. In either event Contractor shall be entitled to payment for all completed work including work in process and anticipated profits thereon but shall not be entitled to profits on other incomplete work. Customer shall reimburse Contractor for incurred costs which are not otherwise recoverable by Contractor. Customer shall indemnify Contractor from damage resulting from both the event of loss and from Customer's decision to terminate this contract or to extend the time line for completion of the project including but not limited to costs of storage and handling which Contractor may reasonably incur.
TERMINATION OF THIS AGREEMENT
Within fifteen (15) days of either party providing notice to the other of the decision to terminate the contract as result of a loss during construction or party's decision to terminate this agreement for reasons of convenience, Contractor shall provide in good faith a "Preliminary Loss Settlement Statement" to Customer. Statement is to include all amounts expected to become due to Contractor. Statement shall include itemized amounts due for completed work and work in process under the contract together with scheduled values for either liquidation or purchase of project materials for the Customer's determination. Customer shall provide written instruction to Contractor within fifteen (15) days of receipt of Statement including delivery instructions for Customer's materials and the Customer's intent to purchase or return project materials. In the event that Customer fails to respond or does not provide a delivery address, Contractor shall return materials to reduce the amount owed by Customer and shall make the determination to either store or discard materials on behalf of the Customer. There shall become due to Contractor $200.00 for each return of materials processed by Contractor. Contractor is not responsible for storage of materials. Customer is responsible for all restocking charges incurred.
Within fifteen (15) days of Customer's response to "Preliminary Loss Settlement Statement" Contractor will provide Customer with "Final Termination Settlement Statement" listing the amounts then to become due to Contractor payable by Customer. If final values are not precisely known for any cost items then the estimated value will be presented, noted as such, and shall become due to Contractor. When the value becomes known to Contractor that information will be shared with Customer and the difference refunded by Contractor or paid by Customer.
Contractor is not responsible for the security of the project site and therefore disclaims all responsibility for damages to work in place in any stage of completion which is not caused by Contractor's agents. Further, Contractor disclaims all responsibility for theft, or other clamaty befalling materials or work in place at the Customer's project site. Customer is responsible for the security of locations of storage and or staging of materials on the project site and not the Contractor.
Contractor's agents shall document the condition of the work at each day. These records shall be relied upon to absolve Contractor's agents from responsibility for damage prior to installation of materials. When materials are damaged by others then that shall be reported to Customer with documentation of the materials having been installed in an acceptable condition. Replacement of materials damaged by others shall not be done by Contractor until a Change Order is approved by the Customer.
Contractor shall maintain in force at all times General Liability insurance with coverage at or above $1,000,000 per occurrence, $2,000,000 aggregate of claims. Worker's Compensation insurances shall be maintained for all employees and shall meet or exceed statutory requirements.
If so directed by Customer on "Insurance Information Request" form, Contractor will list Customer as additionally insured on policies and direct insurance carrier to provide a minimum of fifteen (15) days notice of pending cancellation to Customer in the event of pending policy cancellation and Contractor will direct insurance carrier to provide proof of insurance to Customer.
OWNER'S WARRANTY OF INFORMATION PROVIDED
Customer warrants all information furnished to the Contractor to be true and accurate. If any survey of the Property, or any or all of the plans and specifications for the project are supplied by the Customer or by persons engaged by or acting on behalf of the Customer, then the Customer warrants that said survey, plans and/or specifications are accurate, properly prepared and/or designed in accordance with all applicable provisions of all building codes and sound, professional design practices, that all plans and specifications are "constructable", and that they are ready for submission for issuance of a building permit. In the event any survey, plans or specifications furnished by Customer to Contractor is/are determined not to be accurate, properly prepared, designed, and/or constructable, then any additional cost incurred by the Contractor in completing work which is caused by any such defect in any of the foregoing shall constitute a Change Order for which Customer shall be responsible.
In some cases information cannot be known in advance and is not incorporated into the contract value. In these instances the Customer shall provide a change order including costs additional to amounts budgeted by the Contractor for the unforeseen condition.
This agreement only covers one installation of the materials by Contractor. Should Contractor be requested to repair or reinstall any materials due, partly or in whole, directly or indirectly, to the action or omission of any other party including without limitation an owner, contractor, laborer, supplier, or design professional, such will be extra work under this agreement and will be charged at the Contractor's cost of the additional work plus margin. The margin will be the same proportion as was used to determine the proposal value of the related work type.
OWNER'S WARRANTY OF PROJECT SITE
In the event the Customer furnishes the Job Site upon which the work called for herein shall be performed, then the following warranties are made by Customer to Contractor. Customer warrants that it owns the Job Site, and that it has the right to engage Contractor to perform the construction called for herein upon the Job Site. Customer warrants to Contractor that the Job Site is properly subdivided, zoned for, and legally entitled to be used for, the construction provided for herein. the construction provided for herein, that the soils and substrata of the Job Site are of sufficient bearing capacity and composition, such that they will accommodate the construction provided for herein, that the Job Site has legal access to a public street, and that there is no restrictive covenant, easement, or other agreement, recorded or unrecorded, which precludes the use of the Job Site for the Work planned, or which precludes the construction provided for herein.
The Proposal may provide Allowance Values for certain items included in the plans and specifications, or required for the purpose of completing the construction. The term "Allowance" as used shall mean the maximum amount of funds, taken from the Total Purchase Price, which Contractor shall apply toward the Allowance Items listed on the Proposal. The Contractor shall notify the Customer of the need for Allowance selections, and set a date therefor. In the event that Customer fails to designate in writing its selections as to each of the Allowance Items to Contractor at such time or within FIVE (5) days thereafter, the Contractor may itself designate in writing, to the Customer, all selections of all Allowance Items not made by the Customer, and shall not be obligated to spend more than the maximum amount of funds set for each Allowance Item as listed on the Proposal, and the Customer shall be bound by such designation by Contractor.
In the event Customer chooses an Allowance Item at a cost which exceeds the amount set in the Allowance Schedule, the Customer shall immediately execute and pay for a Change Order for the difference in cost of the Allowance Item selected by the Customer, over the maximum amount of funds which the Customer may apply toward the Allowance Item, as listed on the attached "Allowance Schedule". The Change Order shall identify the item selected and the additional cost over and above the allowed amount for such item.
In the event additional work becomes necessary through no fault of the Contractor, or in the event additional materials should be required in order to remedy on site conditions discovered after the date of execution of this agreement, whose cost will be in excess of the amount provided in the Allowance Schedule for such items, then the Customer shall immediately execute and pay for a Change Order for the difference in cost of the Allowance Item. Failure to pay for a Change Order shall render the Change Order null and void.
DEFAULT, NOTICE OF DEFAULT, AND CURING OF DEFAULT
In the event either party hereto shall fail to perform any obligation under this Agreement the performance of which is the duty of that party, or shall perform any act prohibited herein, then the same shall constitute a default hereunder. Upon the occurrence of any such default, the party asserting said default shall furnish written notice to the defaulting party, in the manner specified herein for delivery of notices, specifying the default, whereupon the defaulting party shall have seven (7) calendar days in which to cure said default. In the event such default is not cured within said curative period, the party asserting such default shall have the remedies provided for by law and equity for such default, including, without limitation, those set forth hereinafter. In the event Customer shall remain in default after notice and the passage of the time period provided for herein in which to cure said default, the Contractor shall have, in addition to all other remedies provided for herein and at Florida law, the right to immediately suspend all work under this Agreement, and to remove its forces, equipment, materials and tools from the Property, all without liability to Customer for so doing, and without such suspension and removal being deemed to be the "abandonment" of construction as that term is employed in Section 489.129, Florida Statutes. In the event Customer does not cure its default, Contractor may thereafter, in addition to all other remedies at law and in equity, terminate the construction agreement and recover payment from Customer for the reasonable value of all actions taken and/or construction performed to the date of the suspension of progress under this Agreement, and the reasonable profits which would have been earned by substantial completion of construction of the work called for in the Contract Documents. In the event Customer does cure its default after notice and the passage of the time period provided for herein in which to cure said default, Contractor may recommence construction upon the Property, upon the execution of a Change Order providing for extension of the Completion Date a sufficient time, the payment of a Re-mobilization Fee payable to Contractor for the additional costs incurred in re-mobilization of equipment, materials and labor, for recommencement of construction, and an additional charge for the increase in cost of construction, if any has occurred as a result of rising material and/or labor prices, incurred by the suspension and recommencement of construction; and an additional charge, if any, for the cost of renewing the building permit, should the permit expire during the period in which the Customer remains in default. No suspension of work under this clause shall be deemed to constitute abandonment of the work or breach of contract of the Contractor.
OWNER COVENANT NOT TO INTERFERE WITH CONSTRUCTION
Customer acknowledges that construction of the work called for in the plans and specifications will be solely conducted by the Contractor and its representatives and Subcontractor, and Customer agrees not to interfere with or interrupt any workmen at the construction site. Any personal inspections by Customer or its agents shall be made at times designated by Contractor and upon written permission of Contractor which shall not be unreasonably withheld. Customer agrees that unless otherwise provided for in writing in this Agreement, all Work shall be done by Contractor only, and Customer shall not perform or undertake any work on the Property, itself or with its own forces or Subcontractor, prior to substantial completion and Final Payment to Contractor.
ACTS OF GOD
Unexpected and Unforeseen Events or Acts of God Preventing Contractor Performance. Customer and Contractor agree that there may occur events which are unexpected or unforeseen, which are not brought about by the actions or acquiescence of either party to this Agreement, and which frustrate, delay, render impracticable, or render it impossible for the Contractor to perform its duties under this Agreement. These events include delay of the completion of work, or the prevention of performance of work, or the destruction of the Residence, due to fire, accident, vandalism, earthquake, earth subsidence, hurricane, tornado, windstorm, rainstorm, flooding, lightning, or other meteorological phenomenon, or similar cause; delay of the completion of work or the prevention of performance of work due to theft of materials or equipment, labor strikes, warfare, materials shortages, labor strikes, the refusal to issue, or delay of any governmental agency in issuing, any required permit or approval, or in performing any required inspection beyond the time period usually required for the issuance or performance thereof; the imposition of moratoria upon land development by government; litigation filed against the Customer or the Contractor having the effect of preventing or delaying the construction of the Residence; and Acts of God. Customer and Contractor agree that all of the foregoing are unexpected and unforeseen acts, which shall, if they occur, frustrate and render impossible the strict and timely performance by the Contractor under this Agreement. It shall not be an Act of God, under this Agreement, for the Customer to become insolvent, become unable to finance or continue to finance the construction, or refuse to perform any clause of this Agreement, or for one or more of the Customer(s) to pass away. Should an Act of God as defined herein occur, Contractor and Customer may elect to execute a Change Order, if possible, amending and modifying this Agreement so as to permit completion of construction in a manner or upon a time schedule other than as strictly expressed herein, or either party may terminate this Agreement, whereupon all sums then due to Contractor for work completed to the date of termination shall be due and payable to Contractor immediately.
COMMENCEMENT OF THE WORK
Contractor shall commence work within a reasonable time after the date of issuance of all building and other permits and approvals required in order to commence construction, by all agencies having jurisdiction, including if applicable any Property Owner's Association or Condominium Association.
Prior to performance of the contract, Customer or Owner's Representative is required to approve, in written format, the specific products selected for use by Contractor and presented in the form of "Contractor's Product Submission". The purpose of this communication between Contractor and Customer is to establish expected standards for the quality of the products to be used in construction and not to agree specifically on which products shall be used in construction. Substitutions to the Contractor's Product Submission are subject to the provisions of this Agreement.
RIGHT TO SUBSTITUTE COMPARABLE MATERIALS
Contractor reserves the right to substitute building materials, appliances, equipment, fixtures or other items in the [building] which may be necessitated by government agencies, job conditions, design changes deemed necessary by the architect, lending institutions, by the availability of materials, colors, brand names, or by material shortages, strikes, or similar situations, which in Contractor's judgment require such changes, without prior notification to the buyer; provided, however that any substitute materials shall be of similar or better quality to those specified in the Contract Documents.
PERFORMANCE GUIDELINES FOR WORKMANSHIP
Contractor warrants that all work performed under this Agreement shall be performed utilizing good workmanship and in conformity with the Building Code. Contractor further warrants that all glass material furnished shall meet or exceed the minimum industry standards as published by the Glass Association of North America (GANA) for bowing, warping, deflection, and size tolerance.
TIME OF ESSENCE
Time is of the essence of this Agreement except where otherwise agreed.
In the event that any provision of this Agreement is found by a court of competent jurisdiction to be invalid or unenforceable, for any reason whatsoever, the remaining provisions hereof shall remain in full force and effect
ELECTION OF ARBITRATION FOR DISPUTE RESOLUTION
All claims, disputes and other matters in question between the Contractor and Customer arising out of, or relating to, the Contract Documents or breach thereof, shall be decided by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association then obtaining unless the parties mutually agree otherwise. The place of arbitration will be Hillsborough County, State of Florida, United States of America. This contract, by its terms, is accepted and therefore deemed to be entered into in Hillsborough County, Florida, and shall be interpreted, governed, and construed according to the laws of the State of Florida. Parties consent to service of process by certified mail, return receipt requested, or by any other manner provided by Florida law. The parties hereby waive the right to contest jurisdiction and venue of said arbitration located in Hillsborough County Florida on the grounds of inconvenience or otherwise.
This Agreement may be executed in two or more counterparts, each of which together shall be deemed an original, but all of which together shall constitute one and the same instrument. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf" signature page were an original thereof.
HEADINGS FOR CONVENIENCE
Headings are provided throughout Contract for convenience only and shall be disregarded when construing the intent of the parties.
ELECTION TO MASTER SERVICE AGREEMENT
Parties agree to enter into this "Standard Construction Agreement" which shall contain the terms, conditions, and specifications governing all constrution projects that are or that may in the future be commenced by and between Parties. In addition to this "Standard Construction Agreement", for each project, parties agree to enter into a project specific agreement.
Project specific agreements shall require all of the following component parts:
- A written proposal by Bid Unity containing the following:
- The place where the work is to be performed.
- The scope of work to be performed.
- The proposed price for the described work.
- Where approval of the proposal includes specification or modification to the proposal's content or the terms of agreement for that specific project those changes must be accepted in writing by Bid Unity.
- Terms agreed upon in within project specific agreements shall control and superseed the terms of this "Standard Construction Agreement".
|Contracting Entity||Bid Unity|
|Date||March 18, 2019|