SUBCONTRACTOR’S AGREEMENT
This SUBCONTRACTOR’S AGREEMENT (“Subcontract”), made on _______________________ , is by
and between the Contractor and Subcontractor identified below.
Contractor Subcontractor
Name*
Address
Representative(s)
License
Fed. Tax ID
Phone
Facsimile
e-mail
*Indicate if an individual or business entity (e.g., corporation, limited liability company, partnership, joint venture, etc…)
Jobsite
Address of the
Jobsite
Legal Description
of the Jobsite
Owner Architect/Engineer
Name
Address
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
1.
2.
3. 4.
5.
6.
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.
Contractor
By:________________________________
Name (printed)_______________________
Title (printed)________________________ Subcontractor
By:________________________________
Name (printed)_______________________
Title (printed)________________________
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. Subcontractor shall
make such election by delivering written notice of
intent to cease performance to the Contractor’s
representative. If Contractor can demonstrate that such
delay was due to actions taken by Owner; acts of God;
fire, explosions, casualty losses, strikes, boycotts or
other labor disputes; lockouts; hazardous material
disturbance, abatement, or removal; or acts of
government body (“Excusable Event”), Contractor
shall notify Subcontractor of the Excusable Event in
writing within seven (7) days of receipt of
Subcontractors notice to cease performance, and
Contractor shall have a reasonable extension of time.
If Contractor does not demonstrate that the delay was
caused by an Excusable Event within the seven (7)
day period, Subcontractor is relieved of all
responsibility to perform under this Subcontract and
shall be held harmless by Contractor of any liability
associated with Subcontractor’s refusal to perform.
Immediately following the above mentioned seven (7)
day period, where such delay was not caused by an
Excusable Event, Contractor will immediately pay
Subcontractor: (1) for any materials and equipment it
purchased in anticipation of performing the Work that
Subcontractor can document and support with receipts
and other records, plus a 10% handling fee, and
Subcontractor shall deliver to Contractor the above
mentioned materials and equipment in good condition;
and (2) liquidated damages in the sum of 10% of
Subcontractor’s anticipated profits.
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. Subcontractor may stop work upon
discovering asbestos or other hazardous material, until
the terms of the Extra Work are negotiated.
Subcontractor, at Subcontractor’s sole option, can
require Owner or Contractor to be responsible for the
removal or abatement of asbestos or any other
hazardous materials found on the Jobsite.
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, and judgment upon the award rendered
by the Arbitrator(s) may be entered in any court
having jurisdiction thereof. However, a party may
bring a claim under the jurisdiction of the small claims court without waiving the right to arbitrate, and if a
counterclaim in excess of the jurisdiction of the Small
Claims Court is filed in the Municipal or Superior
Court, then the party filing in the Small Claims Court
may demand arbitration pursuant to this Paragraph 3
of this Subcontract in lieu of litigating in the
Municipal or Superior Court.
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, if it deems it
appropriate, but is not required to, proceed with such
work, and thereafter or contemporaneously, file for
arbitration as provided in this Paragraph 3 of this
Subcontract, to determine whether such work is in fact
an Incidental Change or Extra Work (including
payment terms for such Extra Work) without waiving
any said rights.
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. Upon
Contractor’s material breach of this Subcontract,
Subcontractor may suspend work on the job until such
time as all payments due have been made without
breaching this Subcontract, pending payment or
resolution of any dispute. If a payment is more than
thirty (30) days late, Subcontractor has the option to
justifiably refuse to complete the balance of this
Subcontract, be considered excused from further
performance, and not be considered in breach of this
Subcontract. Subcontractor may then institute an
arbitration proceeding as described in Paragraph 3 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. In no event shall
Contractor withhold more than ten (10) percent of
payments due Subcontractor. All retentions must be
paid to Subcontractor within thirty-five (35) days of
the date the Subcontractor substantially completes the
Work.
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, whether cited by the appropriate
authority or not. Subcontractor is not responsible for
any abnormal or unusual preexisting condition.
Correction by the Subcontractor of any such violations
or abnormal conditions shall be considered Additional
Work and dealt with according to Paragraph 12 of this
Subcontract.
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,
including, but not limited to, actions taken by Owner;
acts of God; fire, explosions, casualty losses, strikes,
boycotts or other labor disputes; lockouts; hazardous
material disturbance, abatement, or removal; and acts
of government body, then 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 in a
good and workmanlike manner only that labor and
materials specified in this Subcontract. Subcontractor
will only provide additional work not specified in this
Subcontract (“Extra Work”) upon written
authorization by the Contractor in a change order
specifying the additional work (“Change Order”).
Such Change Order shall also contain the amount of
additional compensation for the Extra Work in
addition adjustments in the scheduled time for
completing the Work.
However, in the event that an emergency exists,
then Subcontractor may proceed upon the verbal
authorization of the Contractor or the Contractor’s job
superintendent, and upon Subcontractor’s request,
Contractor shall provide Subcontractor written
confirmation of the verbal authorization within
seventy-two (72) hours.
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. Incidental changes shall be
consistent with the scope and intent of the Work. The Contractor shall initiate an Incidental Change by
issuing a written order to the Subcontractor.
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.
If Subcontractor’s work is damaged or destroyed
during the course of the Work, and such damage or
destruction is the result of Subcontractor’s negligence,
then Subcontractor shall repair or replace the damaged
or destroyed work at Subcontractor’s expense. If such
damage or destruction was not the result
Subcontractor’s negligence, Subcontractor shall repair
or replace the damage or destroyed work as Extra
Work and Contractor shall compensate Subcontractor
in accordance with the terms of Paragraph 12 of this
Subcontract.
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. The Contractor and
Subcontractor shall then agree on an equitable
adjustment on the Subcontract time and price in
writing prior to Subcontractor resuming the Work.
16. Insurance. Subcontractor shall maintain general
liability, workers compensation and builder's risk
insurance.
Contractor shall also 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
work is displayed on the drawings but not called for in
the specifications, or if the work is called for in the
specifications but not displayed on the drawings,
Contractor shall be required to perform the work as
though it were called for and displayed in both
documents.
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.
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