Time and Material Building and Construction Contract
(Owner to Supply Materials) Agreement made on the ________________________________________ (date),
between ________________________________________________ (Name of Owner) of _____________________________________________________________________ ________________________________________________________________________ ___________________________________ (street address, city, county, state, zip code), referred to herein as Owner, and _____________________________________________
(Name of Contractor), a corporation organized and existing under the laws of the state of
_________________________________________________ (state of incorporation), with its principal office located at ____________________________________________
________________________________________________________________________ ____________________________ (street address, city, county, state, zip code), referred
to herein as Contractor .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:
1. Description of Work
Contractor shall perform the following described work, in accordance with the
contract plans and specifications (the Contract Documents), at _____________________
________________________________________________________________________________________________________________________________________________ ________________________________________________________________________ (location of job, including street address, city, county, state, zip code): (Description of work to be performed) ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________2.Contract Price A.Owner agrees to pay Contractor at the rate of $________________ per
hour for the labor performed for the work described above.B. Payment of this amount is subject to additions or deductions in accordance
with the provisions of this contract and of the other documents to which this contract is
subject. C.Owner shall make progress payments (Progress Payments ) to Contractor,
on the basis of applications for payment submitted to (e.g., architect, engineer, or
Owner) __________________________________________ by Contractor as the work
progresses, and on the Sworn Certificate of Contractor for the same, in accordance with
(e.g., the hours of labor expended on a quarterly basis) __________________________
_______________________________________________________________________.
D.Progress Payments may be withheld if: i. Work is found defective and not remedied;ii. Contractor does not make prompt and proper payments to
subcontractors;iii.Contractor does not make prompt and proper payments for labor
furnished to it;iv.Claims or liens are filed on the job; or v.In the opinion of the (e.g., architect, engineer, or Owner)
____________________________________, Contractor's work is not
progressing satisfactorily.3. Final Payment A.Owner shall make final payment to Contractor within _____________
(number) days after the work is completed, if the contract is at that time fully performed,
and subject to the condition that final payment shall not be due until Contractor has
delivered to Owner a complete release of all liens arising out of the contract, or receipts
in full covering all labor and equipment for which a lien could be filed, or in the
alternative a bond satisfactory to Owner indemnifying him against any and all such liens.B.Owner by making payment waives all claims except those arising out of: i. Faulty work appearing after substantial completion has been
granted;ii.Work that does not comply with the contract documents;iii.Outstanding claims of lien; oriv.Failure of Contractor to comply with any special guarantees
required by the Contract Documents. C. Contractor, by accepting final payment, waives all claims except those
that it has previously made in writing, and which remain unsettled at the time of
acceptance.
4.Starting and Completion Dates
Construction under this contract shall begin on ____________________________ _____________ (date), and be completed by _____________________________ _______________ (date).
5.Contract Documents A.The Contract Documents on which the agreement between Owner, (e.g.,
architect or engineer) _______________________________________, and Contractor
is based, that contain the plans and specifications in accordance with which the work is to
be done, and that provide for the method of payment of the contract price are as follows: i.This agreement, with supplementary agreements and conditions
attached to this agreement;ii.The plans and specifications, with addenda attached to such plans
and specifications, issued before execution of this agreement, and any
amendments made after the effective date of this agreement; andiii. Work change orders issued, or to be issued. B. The Contract Documents together form the contract for the work
described in this agreement. The parties intend that the documents include provisions for all labor, materials, equipment, supplies, and other items necessary for the execution and
completion of the work, and all terms and conditions of payment. The documents also
include all work and procedures not expressly indicated in such documents necessary for
proper execution of the above-described project.C. The Contract Documents are to be separately executed in triplicate by
Owner and Contractor. Contractor, by executing the documents, represents that it has
inspected and is familiar with the work site and the local conditions under which the
work is to be performed.
6.Designation of (e.g. Architect or Engineer, if there is one active on the project)
________________________________________ The _____________________________________ (architect or engineer) for
above-described project is ________________________________________________
(name of architect or engineer), having an office at _____________________________
________________________________________________________________________ ___________________________________ (street address, city, county, state, zip code). 7.Responsibilities of Owner A.Owner shall furnish all necessary surveys for the work, and shall secure
and pay for easements for permanent structures or permanent changes in existing
structures or facilities on the work site, or which are necessary for its proper completion.B.Owner shall provide and pay for all materials necessary for the proper
completion of work on the project in accordance with the Contract Documents.C.Owner reserves the right to let other contracts in connection with the
project. Contractor shall cooperate with all other contractors to the effect that their work
shall not be impeded by its construction, and shall give such other contractors access to
the work site necessary to perform their contracts.8.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 its 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 its 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 LaborContractor shall provide and pay for all labor, 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. Procurement of Licenses and Permits. Contractor 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, Contractor shall notify Owner
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 its
employees on the project, for those of its subcontractors and their employees, and for
those of all other persons doing work under a contract with it.G.Furnishing of Samples and Shop Drawings. Contractor agrees to furnish at _____________________________________
(architect, engineer, or Owner)'s direction all samples and shop drawings for his
consideration and approval as to conformance with the specifications of the Contract Documents and his concepts of design called for in such specifications.
H. Clean-up. Contractor agrees to keep the work premises and adjoining ways free of waste
material and rubbish caused by its work or that of its subcontractors. Contractor further
agrees to remove all such waste material and rubbish on termination of the project,
together with all his or her tools, equipment, machinery, and surplus materials.
Contractor agrees, on terminating its 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. Indemnity and Hold Harmless Agreement.Contractor agrees to indemnify and hold harmless Owner and (e.g., architect or
engineer, if there is one active on the project) _________________________________,
and their agents and employees, from and against any and all claims, damages, losses,
and expenses, including reasonable attorneys' fees in case it shall be necessary to file an
action, arising out of performance of the work in this contract, that is (a) for bodily
injury, illness, or death, or for property damage, including loss of use, and (b) caused in
whole or in part by Contractor's negligent act or omission, or that of a subcontractor, or
that of anyone employed by them or for whose acts Contractor or subcontractor may be
liable.J. 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. 9.Extension of Time The times stated in this agreement or in the contract documents may be extended
by a change order from Owner for such reasonable time as he may determine, when in his
opinion Contractor is delayed in work progress by changes ordered, labor disputes, fire,
prolonged transportation delays, injuries, or other causes beyond Contractor's control or
which justify the delay. 10.Subcontractors A. Contractor agrees to furnish Owner, prior to the execution of this
agreement, with a list of names of subcontractors to whom it to award the principal
portions of the work to be subcontracted by Contractor.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
Owner reasonably objects, nor shall Contractor be required to hire a subcontractor to
whose employment it 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. 11.Insurance A. Contractor's Liability Insurance. Contractor agrees to keep in force at its own expense during the entire period of
construction on the project such liability insurance as will protect it 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 __________________________
(insert dollar amount). 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.B.Property Damage Insurance on Work Site. Owner agrees to maintain at his or her expense during construction of the project
property damage insurance on the work at the site to its full insurable value, including
interests of Owner and Contractor, against fire, vandalism, and other perils ordinarily
included in extended coverage. Losses under such insurance will be adjusted with and
made payable to Owner and Contractor, as their interests may appear. Owner shall file a
copy of all such policies with Contractor within a reasonable time after construction
begins under and pursuant to this agreement.C. Waiver of Damage Claims to Extent of Insurance Coverage. Owner and Contractor waive all claims against each other for fire damage or
damages from other perils covered by insurance provided in Paragraph B of this
Section. Contractor agrees to obtain waivers of such claims by all subcontractors. 12.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 her or by a subcontractor, appearing within ___________________ (period of time) from the date of any issuance of a certificate of substantial completion,
or within such longer period as may be prescribed by law. 13. Work Changes
A. Owner reserves the right to order work changes in the nature of additions,
deletions, or modifications, without invalidating this agreement, and agrees to make
corresponding adjustments in the contract price and time for completion.B. All changes will be authorized by a written change order signed by
Owner. The change order will include conforming changes in the agreement and
completion time.C. Work shall be changed, and the contract price and completion time shall
be modified only as set out in the written change order.D. Any adjustment in the contract price resulting in a credit or a charge to
Owner shall be determined by mutual agreement of the parties, or by arbitration, before starting the work involved in the change. 14.Termination A.Contractor's Termination. Contractor may, on ________ (number) days written notice to Owner, terminate
this agreement before the completion date specified in this agreement when for a period
of _________ (number) days after a Progress Payment is due, and through no fault of
Contractor, Owner fails to make the payment. On such termination, Contractor may
recover from owner payment for all work completed and for any loss sustained by
Contractor for equipment, tools, or machinery to the extent of actual loss, provided it can
prove such loss.B. Owner's Termination. Owner may, on ___________ (number) days notice to Contractor, terminate this
agreement before the completion date specified in this agreement, and without prejudice
to any other remedy he may have, when Contractor defaults in performance of any
provision in this agreement, or fails to carry out the construction in accordance with the
provisions of the contract documents. On such termination, Owner may take possession
of the work site and all materials, equipment, tools and machinery on the work site, and finish the work in whatever way he or she deems expedient. If the unpaid balance on the
contract price at the time of such termination exceeds the expense of finishing the work,
Owner will pay such excess to Contractor. If the expense of finishing the work exceeds
the unpaid balance at the time of termination, Contractor agrees to pay the difference to
Owner.C. On any such default by Contractor, Owner may elect not to terminate this
agreement, and in such event he or she may make good the deficiency of which the
default consists, and deduct the costs from the Progress Payment then or to become due
to Contractor. 15.No Waiver The failure of either party to this Agreement to insist upon the performance of any
of the terms and conditions of this Agreement, or the waiver of any breach of any of the
terms and conditions of this Agreement, shall not be construed as subsequently waiving
any such terms and conditions, but the same shall continue and remain in full force and
effect as if no such forbearance or waiver had occurred.16. Governing Law This Agreement shall be governed by, construed, and enforced in accordance with
the laws of the State of _________________________________. 17.Notices Any notice provided for or concerning this Agreement shall be in writing and
shall 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.
18.Mandatory Arbitration
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.
19.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. 20.Modification of Agreement Any modification of this Agreement or additional obligation assumed by either
party in connection with this Agreement shall be binding only if placed in writing and
signed by each party or an authorized representative of each party. 21.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. WITNESS our signatures as of the day and date first above stated. ____________________________________ (Name of Contractor) __________________________________ By: ________________________________ ______________________________________________________________________(Printed Name & Signature of Owner) (Name and Office in Corporation)