Agreement Between Contractor and School District Owner to Remodel School
Agreement made on the ___ day of __________, 20___, between _______________ of
________________________________ (street address, city, county, state, zip code) , referred to
herein as Contractor, and _____________ School District with its principal office located at
_________________________________________ (street address, city, county, state, zip code) ,
referred to herein as School District.
Whereas, Contractor is in the business of building and remodeling buildings,
including, but not limited to, carpentry, plumbing, electrical, heating, doors, windows, cabinets
and painting, and the necessary demolition of existing fixtures and structures in order to
accomplish any remodeling; and
Whereas, School District desires to engage Contractor to do remodeling work on
_____________________ (name of school) located at ________________________________
(street address, city, county, state, zip code) , hereinafter referred to as School;
Now, therefore, for and in consideration of the mutual covenants contained in this
agreement, and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
I. Description of Work to be Performed
Contractor will furnish all labor and materials for the remodeling of the School in
accordance with the attached _________________ (plans or blueprints) and the following
specifications: (E.g., specifications not clearly reflected in the plans or blueprints).
II. Time for Completion
Contractor agrees that the work under this Agreement shall be substantially completed
within ________working days after the effective date of this Agreement.
III. Amount of Compensation and Payment Schedule
School District agrees to pay Contractor for its performance of this Agreement, the sum
of $_____________ (the fixed compensation) and the actual cost of material furnished and labor
performed plus _____% (cost plus compensation) for profit, use of tools, equipment, and general
supervision, and any other overhead and fixed charges, and to make payments on account of the
contract price as follows:
A. On or about the _____day of each month during construction, a payment
equivalent to ______% of the fixed compensation and ____% of the cost plus
compensation .
B. On final completion of the work and settlement of all claims, the remainder of the
fixed compensation and cost plus compensation .
IV. Cost of Work -- Items Included
The cost of the work shall consist of the entire actual cost to Contractor of accomplishing
the work and shall include the following:
A. Salaries or wages of all labor, including services of superintendent, assistant
superintendents, field engineers, job supervisors, clerks, security personnel, truck drivers,
mechanics, laborers, and all others necessary for the proper conduct of the work and for
the time employed on the work, together with any social security and unemployment
insurance taxes in connection with such labor.
B. Disbursements made and obligations incurred for, or in connection with, the
furnishing, delivery, and installation of all materials, structural accessories, machinery,
equipment, and other items required to be furnished and done under and pursuant to this
agreement; also, for and in connection with the construction equipment and maintenance
of temporary offices or other work structures for contractor and owner, at the site of the
work and elsewhere as required; for providing storage facilities away from the site, if
required; and for or in connection with all insurance, bonds, fees, royalties, and permits.
C. Disbursements made and obligations incurred pursuant to subcontracts made and
entered into under and pursuant to this agreement, less all countercharges collected from
subcontractors.
D. All loading and unloading, demurrage, express, freight, and delivery charges,
including those on construction equipment and tools to and from the work; cost of
assembling, directing, moving, and dismantling construction equipment; cost of fuel,
power, light, and water used during construction; custom duties on materials, drawings,
or Contractor's equipment; cost of all telephone, telecopy, and similar charges incurred
by contractor at site of the work in connection with the work; cost of progress
photographs and negatives; cost of temporary fences, guardrails, or scaffolds; and rental
charges of necessary machinery and equipment, whether such machinery and equipment
is owned by Contractor or shall be rented from others, for such time as it is in actual
use on the work. The rate of such rentals including freight and delivery costs and all
operating expenses, except labor, shall be approved by owner before commitments are
made and shall in no event be higher than the standard of rates paid in the locality for
similar equipment.
E. Disbursements for materials or supplies furnished from Contractor's stock which
shall be charged to the work at a fair market price as determined by Contractor and
approved by School District.
F. Such travel and living expenses of Contractor's employees as may be necessary
and specifically approved by School District .
V. Billing on Cost-Plus Work
Cost-plus billings shall be supported with proper bills and invoices for labor, materials,
subcontracts, and other items. Should Contractor claim that any instructions, by drawings or
otherwise, involve extra work under this Agreement, he or she shall promptly give written notice
of such claim to School District before proceeding to follow such instructions, and no such claim
shall be valid unless so made.
VI. Agreement between Contractor and School District as to Extra Work
If School District requires extra work not covered in the original contract, it shall
promptly give written notice to the Contractor. The cost of such extra work must be agreed upon
in writing before such extra work is commenced.
VII. Final Payment on Presentation of Affidavit of Payment of Invoices
On the completion of the remodeling of the School , in accordance with the plans and
specifications, Contractor shall furnish to School District evidence in the form of a Contractor's
affidavit that all invoices both for labor and materials have been paid in full, and on the
presentation of such affidavit, School District shall pay to Contractor the balance due under this
Agreement. School District by making payment waives all claims except those arising out of:
A. Faulty work appearing after substantial completion has been granted;
B. Work that does not comply with the contract documents;
C. Outstanding claims of lien; or
D. Failure of Contractor to comply with any special guarantees required by the
contract documents.
Contractor, by accepting final payment, waives all claims except those that he has previously
made in writing, and which remain unsettled at the time of acceptance.
VIII. Subcontractors
A. Contractor agrees to furnish School District , prior to the execution of this
Agreement, with a list of names of subcontractors to whom he proposes to award the
principal portions of the work to be subcontracted by him.
B. A Subcontractor, for the purposes of this agreement, shall be a person with whom
Contractor has a direct contract for work at the project site.
C. Contractor agrees not to employ a subcontractor to whose employment School
District reasonably objects, nor shall Contractor be required to hire a subcontractor to
whose employment he reasonably objects.
D. All contracts between Contractor and subcontractors shall conform to the
provisions of the contract documents, and shall incorporate in them the relevant
provisions of this agreement.
IV. Contents of Agreement
Contractor and School District agree that the specifications and the drawings, along with
this Agreement, form the entire Agreement between Contractor and School District , and that
they are as fully a part of the entire Agreement as if they were attached to or repeated in this
instrument.
V. Responsibilities of Contractor
Contractor's duties and rights in connection with the above-described project are as
follows:
A. Responsibility for and Supervision of Construction.
Contractor shall be solely responsible for all construction under this contract,
including the techniques, sequences, procedures, and means, and for coordination of all
work. Contractor shall supervise and direct the work to the best of his or her ability, and
give it all attention necessary for such proper supervision and direction.
B. Discipline and Employment.
Contractor shall maintain at all times strict discipline among his or her
employees, and Contractor agrees not to employ for work on the project any person unfit
or without sufficient skill to perform the job for which he or she was employed.
C. Furnishing of Labor, Materials, etc.
Contractor shall provide and pay for all labor, materials, and equipment,
including tools, construction equipment, and machinery, utilities, including water,
transportation, and all other facilities and services necessary for the proper completion of
work on the project in accordance with the contract documents.
D. Payment of Taxes; Procurement of Licenses and Permits.
Contractor shall pay all taxes required by law in connection with work on the
project in accordance with this agreement including sales, use, and similar taxes, and
shall secure all licenses and permits necessary for proper completion of the work, paying
the fees for such licenses and permits.
E. Compliance with Construction Laws and Regulations.
Contractor shall comply with all laws and ordinances, and the rules, regulations,
or orders of all public authorities relating to the performance of the work under and
pursuant to this agreement. If any of the contract documents are at variance with any such
laws, ordinances, rules, regulations, or orders, he shall notify School District promptly on
discovery of such variance.
F. Responsibility for Negligence of Employees and Subcontractors.
Contractor assumes full responsibility for acts, negligence, or omissions of all his
employees on the project, for those of his subcontractors and their employees, and for
those of all other persons doing work under a contract with him.
G. Warranty of Fitness of Equipment and Materials.
Contractor represents and warrants to owner and to School District that all
equipment and materials used in the work, and made a part of the structures on such
work, or placed permanently in connection with such work, will be new unless otherwise
specified in the contract documents, of good quality, free of defects, and in conformity
with the contract documents. It is agreed between the parties to this agreement that all
equipment and materials not so in conformity will be considered defective.
H. Clean-up.
Contractor agrees to keep the work premises and adjoining ways free of waste
material and rubbish caused by his work or that of his subcontractors. Contractor further
agrees to remove all such waste material and rubbish on termination of the project,
together with all his tools, equipment, machinery, and surplus materials. Contractor
agrees, on terminating his work at the site, to conduct general clean-up operations,
including the cleaning of all glass surfaces, paved streets and walks, steps, and interior
floors and walls.
I. Safety Precautions and Programs.
Contractor has the duty of providing for and overseeing all safety orders,
precautions, and programs necessary to the reasonable safety of the work. In this
connection, contractor shall take reasonable precautions for the safety of all employees
and other persons whom the work might affect, all work and materials incorporated in the
project, and all property and improvements on the construction site and adjacent to the
construction site, complying with all applicable laws, ordinances, rules, regulations, and
orders.
J. Contractor's Liability Insurance.
Contractor agrees to keep in force (at School District’s expense as provided in
Paragraph IV-B above) during the entire period of construction on the project such
liability insurance as will protect him from claims, under workers' compensation and
other employee benefit laws, for bodily injury and death, and for property damage,
that may arise out of work under this Agreement, whether directly or indirectly by
contractor, or directly or indirectly by a subcontractor. The minimum liability limits of
such insurance shall not be less than the limits as are normal under this type of
Agreement or by law for that type of damage claim. Such insurance shall include
contractual liability insurance applicable to Contractor's obligations under this
agreement. Proof of such insurance shall be filed by Contractor with owner within a
reasonable time after execution of this Agreement.
V. Responsibilities of Contractor
A. School District’s agrees to maintain in force its own liability insurance during the
construction on this project, and reserves the right to purchase such additional insurance
as in its opinion is necessary to protect it against claims arising out of the Contractor's
operation, without diminishing Contractor's obligation to carry the insurance
specified in this agreement on Contractor's part to be carried.
B. Property Damage Insurance on Work Site.
School District agrees to maintain at his expense, during construction of the
project, property damage insurance on the work at the site to its full insurable value,
including interests of School District , Contractor, and subcontractors, against fire,
vandalism, and other perils ordinarily included in extended coverage. Losses under such
insurance will be adjusted with and made payable to owner as trustee for the parties
insured as their interests appear. School District shall file a copy of all such policies with
Contractor within a reasonable time after construction begins under and pursuant to this
Agreement.
VI. Waiver of Work Site Property Damage Claims to Extent of Insurance Coverage.
School District and Contractor waive all claims against each other for fire damage or
damages from other perils covered by insurance provided above. Contractor agrees to obtain
waivers of such claims by all subcontractors.
VII. Correcting Work
When it appears to Contractor during the course of construction that any work does not
conform to the provisions of the contract documents, Contractor shall make necessary
corrections so that such work will so conform, and in addition will correct any defects caused by
faulty materials, equipment, or quality of performance in work supervised by him or by a
subcontractor, appearing within _____ days from the date of issuance of a certificate of
substantial completion, or within such longer period as may be prescribed by law or as may be
provided for by applicable special guaranties in the contract documents.
VIII. Loss by Unforeseeable Event -- School District Solely Liable
If before completion the work should be wholly or partially destroyed by fire, defective
soil, earthquake, or act of God that contractor could not have reasonably foreseen and provided
against, then the loss occasioned by such event or happening shall be sustained solely by School
District .
IX. Termination by Either Party
Either party to this contract may terminate it by giving the other party _____days' written
notice of the intention to so terminate. If this contract is terminated under this clause by either
party, School District shall pay Contractor for all materials actually used in the construction and
for all labor, plus ____% of the cost of the materials actually used in the construction, and _____
% of the labor up until the time of the termination of the contract and shall not be obligated to
Contractor for any other payments. Contractor, in case the contract is terminated, shall likewise
be under no other obligation to School District .
X. Governing Law
This agreement shall be governed by, construed, and enforced in accordance with the
laws of the State of __________.
XI. Attorney’s Fees
If any action is filed in relation to this agreement, the unsuccessful party in the action
shall pay to the successful party, in addition to all the sums that either party may be called on to
pay, a reasonable sum for the successful party's attorney' fees.
XII. Mandatory Arbitration
Notwithstanding the foregoing, and anything herein to the contrary notwithstanding, any
dispute under this Agreement shall be required to be resolved by binding arbitration of the
parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator
and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said
dispute. The arbitration shall be governed by the rules of the American Arbitration Association
then in force and effect.
XIII. Entire Agreement
This Agreement shall constitute the entire agreement between the parties and any prior
understanding or representation of any kind preceding the date of this Agreement shall not be
binding upon either party except to the extent incorporated in this Agreement.
XIV. Modification
Any modification of this Agreement or additional obligation assumed by either party in
connection with this Agreement shall be binding only if evidenced in writing signed by each
party or an authorized representative of each party.
XV. Notices
Any notice provided for or concerning this Agreement shall be in writing and be deemed
sufficiently given when sent by certified or registered mail if sent to the respective address of
each party as set forth at the beginning of this Agreement.
XVI. Assignment of Rights
The rights of each party under this Agreement are personal to that party and may not be
assigned or transferred to any other person, firm, corporation, or other entity without the prior,
express, and written consent of the other party.
XVII. Title to Material
Title to the material to be furnished by Contractor shall be and remain in Contractor until
all sums of money called for are fully paid. In case of default in payment of any of the
installments provided for in this agreement, Contractor is authorized to enter the School and the
premises on which the School is located and take possession of and remove material at any time
after the default.
XVIII. Cancellation at Option of Parties upon Destruction of School
This Agreement may be cancelled, without previous notice, at the option of either party if
is destroyed by fire or other catastrophe or is so substantially damaged that it is impracticable to
continue use of School . Notwithstanding the foregoing, such cancellation by School District
may only be made if all payments described in Paragraph III above are current.
XIX. Contractor not an Insurer
It is agreed by and between the parties that Contractor is not an insurer; that the
payments specified in this Agreement are based solely on the value of the materials and other
construction costs, including labor, and that it is impracticable and extremely difficult to fix the
actual damages, if any, that may proximately result from a failure of Contractor to adequately
perform the remodeling. Therefore, the parties hereby agree that in the case of Contractor’s
failure to adequately perform the remodeling and a resulting loss to School District , Contractor’s
liability under this Agreement shall be limited to correction or replacement costs and in no event
shall Contractor be liable for special, incidental or consequential damages regardless of the
claim or the form of the action or suit, whether in contract, negligence or tort, and regardless of
whether any such resulting loss results from any aspect of the remodeling, including, but not
limited to demolition, installation, and/or clean-up.
XX. Miscellaneous Provisions
A. The provisions of this Agreement shall be binding upon and inure to the benefit of
the heirs, personal representatives, successors and assigns of the parties.
B. No waiver of any provision of this Agreement shall be deemed, or shall
constitute, a waiver of any other provision, whether or not similar, nor shall any waiver
constitute a continuing waiver. No waiver shall be binding unless executed in writing by
the party making the waiver.
C. Neither party shall hold the other responsible for damages or delay in
performance caused by acts of God, strikes, lockouts, accidents, to other events beyond
the control of the other.
D. Contractor intends to render its services under this Agreement in accordance with
generally accepted professional practices for the intended use of the School and makes no
warranty either express or implied.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.
___________ SCHOOL DISTRICT
By _____________________________ _________________________
(Name and Office) CONTRACTOR