Annual Subcontractor Agreement

SUBCONTRACTOR’S AGREEMENT

This SUBCONTRACTOR’S AGREEMENT (“Subcontract”), made on , is by and between the Contractor and Subcontractor identified below.

Contractor has entered into a contract (“Prime Contract”) with the Owner to provide labor, material, and equipment and perform all work necessary to complete the residence, structure, or improvements on the Jobsite as described in the drawings and specifications signed by both Owner and Contractor (the “Project”).

Description of Work

Subcontractor shall provide all labor, material, equipment, and work necessary to complete the portion of the Project described as follows in strict compliance with this Subcontract: (the “Work”).

The Work is based upon the following drawings and specifications or other documents:

With the following specific additions or deletions:

Subcontractor shall apply for and obtain the following permits and regulatory approvals from the local municipal/county government, the cost thereof shall be included as part of the Work:

Contractor shall obtain apply for and obtain any permits necessary for the Project and the Work not listed above.

Time and Scheduling Work

Estimated Start Date:

Estimated Date of Substantial Completion of the Work:

Subcontractor shall not deliver any materials to the Jobsite or commence work until notified to do so by Contractor. Working days are defined as Monday through Friday, holidays excluded.

Subcontract Price

Contractor shall pay Subcontractor the following amount:

The fixed-price of Dollars ($) subject to any Change Orders.

Time and material rates and prices in accordance with the Schedule of Labor and Materials attached as an Exhibit to this Subcontract subject to any Change Orders.

Any amounts not paid when due shall bear interest at the rate of 1 ½ % per month until paid.

Schedule of Payments

Contractor shall Pay Subcontractor according to the following schedule:

Subcontractor shall submit an application for each Progress Payment no later than days following the end of each payment period. Such applications shall be itemized and supported by substantiating receipts and other records.

List of Exhibits

Such Exhibits are made part of this Subcontract whether or not attached.

Sole Agreement: As of the date entered above, this Subcontract, including the Terms and Conditions, constitutes the entire agreement between the parties pertaining to the Work. No other agreement or understanding, oral or written, expressed or implied, exists between the parties pertaining to the Work. This Contract may only be modified only by a written agreement signed by both parties.

Each party has caused this Subcontract to be executed by its authorized representative to be effective as of the date indicated above.

TERMS AND CONDITIONS

1. Delay in Commencing the Work: If Subcontractor is not called upon to commence work within four (4) months from the Estimated Start Date, Subcontractor may elect at Subcontractor’s sole discretion, to refuse to perform under this Subcontract.

2. Asbestos and Hazardous Materials. The disturbance, removal, or abatement of asbestos or other hazardous materials is not provided for by the terms of this Subcontract, and in the event that asbestos or other hazardous material is encountered or disturbed in order to complete the Work, it will be treated as Extra Work under Paragraph 12 of this Subcontract.

3. Arbitration, Validity, and Damages. Any controversy or claim arising out of or related to this Subcontract, or the breach thereof, shall be settled in the county where the Jobsite is located by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association.

4. Reservation of Rights of Dispute. In the event that the Subcontractor is required to, or deems it appropriate to proceed with and complete any work which is the subject of a dispute between the Contractor and the Subcontractor as to whether such work should be classified as an Incidental Change or Extra Work, Subcontractor may proceed with such work and thereafter or contemporaneously file for arbitration.

5. Attorneys’ Fees. If any party to this Subcontract brings a cause of action against the other party arising from or relating to this Subcontract, the prevailing party in such proceeding shall be entitled to recover reasonable attorney fees and costs.

6. Removal of Debris. Upon completion of the Work, the Subcontractor agrees to remove all of its debris and surplus materials from Jobsite and leave the Jobsite in a neat and broom clean condition.

7. Failure to Make Payments. A failure by the Contractor to make a scheduled progress payment by more than ten (10) days from the due date shall be deemed a material breach of this Subcontract.

8. Retention. Contractor is authorized to withhold retention from Subcontractor only to the extent that Owner withholds funds from Contractor for the Work performed by Subcontractor.

9. Items Not Responsibility of Subcontractor. Unless specifically included in the Subcontract, Subcontractor shall not be held responsible for any existing violations of applicable building regulations or ordinances.

10. Excusable Delays. If the Subcontractor is delayed in the performance of the Work by conditions that could not be reasonably foreseen by Subcontractor or out of the reasonable control of Subcontractor, Contractor shall grant Subcontractor a reasonable extension of time.

11. Compliance with Rules and Regulations. Both Contractor and Subcontractor shall comply with all applicable federal, state, county, and municipal rules and regulations including but not limited to OSHA safety requirements.

12. Extra Work. Subcontractor shall provide additional work not specified in this Subcontract upon written authorization by the Contractor in a change order specifying the additional work.

13. Incidental Change: The Contractor may direct the Subcontractor to perform incidental changes in the Work not involving adjustments in the Payments or time of completion.

14. Protection of Work. To the extent noted in this Paragraph 14, Subcontractor will protect its own work until completion and the Contractor’s acceptance of Subcontractor’s work.

15. Concealed Conditions. In the event Subcontractor encounters rock, ground water, underground structures, utilities, or other conditions unknown to Subcontractor and not reasonably foreseeable by Subcontractor, then Subcontractor shall immediately stop work and call Contractor’s attention to such concealed conditions in writing.

16. Insurance. Subcontractor shall maintain general liability, workers compensation and builder's risk insurance.

17. Interpretation: The Subcontract and the Exhibits are intended to supplement one another. In the event of a conflict, the specifications shall control the drawings, and the Subcontract shall control both.

If a portion of this Subcontract is found to be invalid, such provision shall be deemed severed, and this Agreement shall continue in full force and effect.

This Contract shall be interpreted and governed in accordance with the laws of the State where the Jobsite is located.