FIXED CONTRACT AMOUNT
ARTICLE 1. CONTRACT DOCUMENTS1.1. The contract documents consist of this agreement, general conditions, construction documents, specifications, allowances, finish schedules, construction draw schedule, information disclosure statement, all addenda issued prior to execution of this agreement and all change orders or modifications issued and agreed to by both parties. All documents noted herein shall be provided to the Contractor by the Owner. These contract documents represent the entire agreement of both parties and supersede any prior oral or written agreement.
ARTICLE 2. SCOPE OF WORK2.1. The Owner agrees to purchase and the Contractor agrees to construct the structure mentioned in the invoice and fixtures attached thereto in according to the construction documents, allowances, finish schedules, all addenda, change orders, modifications and specifications set forth in the specification booklet.
ARTICLE 3. TIME OF COMPLETION3.1. The approximate commencement date of the project shall be:
- Window Screens: 1-2 weeks
- Security Doors: 4-6 weeks
- Screen Doors: 2-4 weeks
- Home Repair: 2-4 weeks
- Awnings: 4-6 weeks
ARTICLE 4. THE CONTRACT PRICE4.1. The purchase price of the project shall be the price as listed in the invoice, which are subject to additions and deductions pursuant to authorized change orders and allowances. Closing costs shall be paid by the Owner. 4.2. The Owner and the Contractor acknowledge that the Owner will pay the sum agreed upon in the invoice (usually 50% down for custom orders of any kind), upon signing of this contract and before construction begins as a deposit and part of the purchase price of the project.
ARTICLE 5. PROGRESS PAYMENTS5.1. The Owner will make payments to the contractor pursuant to the attached construction draw schedule as work required by said schedule is satisfactorily completed. Owner shall make draw payments to contractor within 3 days after request by contractor. Should the owner fail to make payment, contractor may charge a penalty of 10% annually upon the unpaid amount until paid. 5.2. If payment is not received by the Contractor within 3 days after delivery of payment demand for work satisfactorily completed, contractor shall have the right to stop work or terminate the contract at his option. Termination by Contractor under the provisions of this paragraph shall not relieve the Owner of the obligations of payments to Contractor for that part of the work performed prior to such termination. Termination by Owner under the provisions of this paragraph shall not relieve the Owner of the obligations of payments to Contractor for that part of the work performed prior to such termination.
ARTICLE 6. DUTIES OF THE CONTRACTOR6.1. All work shall be in accordance to the provisions of the plans and specifications. All systems shall be in good working order. 6.2. All work shall be completed in a workman like manner, and shall comply with all applicable national, state and local building codes and laws. 6.3. All work shall be performed by licensed individuals to perform their said work, as outlined by law. 6.4. Contractor shall remove all construction debris and leave the project in a broom clean condition. 6.5. Upon satisfactory payment being made for any portion of the work performed, Contractor shall furnish a full and unconditional release from any claim or mechanics’ lien for that portion of the work for which payment has been made.
ARTICLE 7. OWNER7.1. The Owner shall communicate with subcontractors only through the Contractor. 7.2. The Owner will not assume any liability or responsibility, nor have control over or charge of construction means, methods, techniques, sequences, procedures, or for safety precautions and programs in connection with the project, since these are solely the Contractor’s responsibility.
ARTICLE 8. CHANGE ORDERS AND FINISH SCHEDULES8.1. A Change Order is any change to the original plans and/or specifications. All change orders need to be agreed upon in writing, including cost, additional time considerations, approximate dates when the work will begin and be completed, a legal description of the location where the work will be done and agreed by both parties. 50% of the cost of each change order will be paid prior to the change, with the final 50% paid upon completion of the change order. A 12% fee shall be added to all change orders and overages in excess of initial allowances. Additional time needed to complete change orders shall be taken into consideration in the project completion date. 8.2. Any delays or changes in finish selection schedules will delay the projected completion date.
ARTICLE 9. INSURANCE9.1. The Owner will keep in force a Builder’s Risk Insurance Policy on the said property to protect both owner’s and contractor’s interests until construction is completed. 9.2. The Owner will purchase and maintain property insurance to the full and insurable value of the project, in case of a fire, vandalism, malicious mischief or other instances that may occur. 9.3. The Contractor shall purchase and maintain needed Workman’s Compensation and Liability insurance coverage as required by law and deemed necessary for his own protection.
ARTICLE 10. GENERAL PROVISIONS10.1. If conditions are encountered at the construction site which are subsurface or otherwise concealed physical conditions or unknown physical conditions of an unusual nature, which differ naturally from those ordinarily found to exist and generally recognized as inherent in construction activities, the Owner will promptly investigate such conditions and, if they differ materially and cause an increase or decrease in the Contractor’s cost of, and/or time required for, performance of any part of the work, will negotiate with the Contractor an equitable adjustment in the contract sum, contract time or both.
ARTICLE 11. HAZARDOUS MATERIALS, WASTE AND ASBESTOS11.1. Both parties agree that dealing with hazardous materials, waste or asbestos requires specialized training, processes, precautions and licenses. Therefore, unless the scope of this agreement includes the specific handling, disturbance, removal or transportation of hazardous materials, waste or asbestos, upon discovery of such hazardous materials the Contractor shall notify the Owner immediately and allow the Owner/Contractor to contract with a properly licensed and qualified hazardous material contractor. Any such work shall be treated as a Change Order resulting in additional costs and time considerations.
ARTICLE 12. ARBITRATION OF DISPUTES12.1. Any controversy or claim arising out of or relating to this contract, or the breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its Construction Industry Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
ARTICLE 13. WARRANTY13.1. The completion of the project will serve as the start of any warranties. The owner will use a paid invoice to serve as the instrument warrantying the current project for 1,4 or 10 years against defects in workmanship or materials utilized. The manufacturer’s warranty will prevail where applicable. No legal action of any kind relating to the project, project performance or this contract shall be initiated by either party against the other party after 10 years beyond the completion of the project or cessation of work. For more information on 1, 4 and 10 year Contractor warranty information visit http://www.cslb.ca.gov/ or visit www.mikesmobile.com for specific warranty information. Steel Security Doors are handmade and by nature may exhibit minor inconsistencies. Rust issues are not covered by any warranty. Swelling of door frame due to seasonal changes caused by weather are not covered. Warranties do not cover any damage by a human or animal, intentional or unintentional, vandalism, changes in weather or any other outside circumstance to the workmanship of the door and installation.
ARTICLE 14. TERMINATION OF THE CONTRACT14.1. Should the Owner or Contractor fail to carry out this contract, with all of its provisions, the following options and stipulations shall apply:
14.1.1. If the Owner or the Contractor shall default on the contract, the non-defaulting party may declare the contract is in default and proceed against the defaulting party for the recovery of all damages incurred as a result of said breach of contract, including a reasonable attorney’s fee. In the case of a defaulting Owner, the Earnest money herein mentioned shall be applied to the legally ascertained damages.
14.1.2. In the event of a default by the Owner or Contractor, the non-defaulting party may state his intention to comply with the contract and proceed for specific performance.
14.1.3. In the case of a defaulting Owner, the Contractor may accept, at his option the earnest money as shown herein as liquidated damages, should earnest money not cover the expenses to date, the Contractor may make claim to the Owner for all work executed and for proven loss with respect to equipment, materials, tools, construction equipment and machinery, including reasonable overhead, profit and damages applicable to the property less the earnest money.