[ Builder's Company Name ] [ Builder's Business Address ] CONSTRUCTION CONTRACT THIS AGREEMENT, made and entered into this ____ day of _________, 19__, by and between [ Builder's Company Name ] and [ Trade Contractor's Company Name ], herein called the "Subcontractor," for all [ Trade Specific ] work associated with the construction of the [Owner's Name] residence located at [ Jobsite Address ]. WHEREAS, [ Builder's Company Name ] entered into a contract dated the ____ day of __________ 19__ with [ Owner's Name ], herein called the "Owner," for the construction of a residence according to the terms and conditions of said contract and the general specifications and supplements, addenda, general and special conditions, plans, drawings, and other documents made a part thereof, and any change orders or amendments, collectively referred to as the "general contract." WHEREAS, Subcontractor acknowledges that it is familiar with the general contract and agrees that the general contract is a part hereof and incorporated as a part of this subcontract. IT IS HEREBY AGREED AS FOLLOWS: WORK TO BE PERFORMED. Subcontractor agrees to provide all materials, labor, tools, equipment, supervision, supplies, and other items necessary or required to execute the work and perform all [ Trade Specific] work in accordance with the contract drawings, specifications, and any addenda contained in the general contract documents for the construction of the [ Owner's Name ] residence. The intent is to provide a complete [ Trade Specific] system that meets local code requirements including, but not limited to, provision and installation of the following: 1.________________________________________________________________________________ 2.________________________________________________________________________________ 3.________________________________________________________________________________ 4.________________________________________________________________________________ 5.________________________________________________________________________________ 6.________________________________________________________________________________ Continued Trade Contract, Page 2 CONTRACT PRICE. [ Builder's Company Name ] agrees to pay and [ Trade Contractor's Company Name ] agrees to accept as full compensation for performing all work according to the requirements of the contract and furnishing all materials, supplies, and equipment required to execute the work, the sum of [ Amount Spelled Out ] dollars ($[ Amount as Figure ]) subject to additions and deductions from such changes in the scope of work as agreed upon in writing through change orders to the contract. TERMS AND CONDITIONS OF THIS CONTRACT ARE ATTACHED. Builder: [ Builder's Company Name ] By: >_____________________________________________________ Authorized Signature/Title Date: _____________/________/_________ Subcontractor: [ Trade Contractor's Company Name ] By: >_____________________________________________________ Authorized Signature/Title Date: _____________/________/_________ Continued TERMS AND CONDITIONS OF CONSTRUCTION CONTRACT Between [ Builder's Company Name ] and [ Trade Contractor's Company Name ] Dated [ Date ] 1. GENERAL RESPONSIBILITIES a. Subcontractor shall comply with the General Conditions of the general contract for the construction of the [ Owner's Name ] residence and any interpretations as to the meaning thereof issued by the Owner. b. Subcontractor shall ensure that all [ Trade Specific ] fully comply with code requirements that are effective on the date contract is signed. Code modifications made after contract has been signed are not included. c. Subcontractor shall visit the construction site before starting work to understand access restrictions to the site. d. Subcontractor shall coordinate the installation of all [ Trade Specific ] work with other interfacing trades to ensure an unencumbered worksite. e. Subcontractor shall coordinate connection with the local [ Trade Specific ] utility. f. Subcontractor shall [ Additional Trade Specific Coordination ]. g. Subcontractor shall provide a qualified onsite supervisor whenever work is being performed. Supervisor will attend weekly coordination meetings to review scheduled versus actual progress, quality control, coordination of work, and jobsite safety. h. Subcontractor shall submit required shop drawings and manufacturers' cut sheets for all equipment and await receipt of approval of Owner or Architect prior to starting work. i. Subcontractor shall at all times keep the project site clean of dirt, debris, trash, and any waste materials arising from the performance of the subcontract. Subcontractor is responsible for removal of all debris created as a result of the work being performed and disposal at a site designated by [ Builder's Company Name ]. 2. COMMENCEMENT AND PROGRESS OF WORK a. Subcontractor agrees to comply with and perform the subcontracted work in conformance with project plans and specifications and applicable state, county, and municipal codes, ordinances, and statutes according to the requirements of the construction schedule or schedules as [ Builder's Company Name ] may from time to time develop and submit to Subcontractor. Within three (3) calendar days after being notified by [ Builder's Company Name ], Subcontractor shall commence actual construction on such parts of the scope of work as [ Builder's Company Name ] may designate and to thereafter continue diligently in the performance of the work. All work shall be performed in full cooperation with [ Builder's Company Name ] and other subcontractors. b. Upon request, Subcontractor shall prepare and submit to [ Builder's Company Name ] for approval a progress schedule to meet the dates as shown by [ Builder's Company Name ]'s then-current construction schedule and showing the order in which Subcontractor proposes to carry on the work and the dates on which it will start and complete salient features of the subcontracted work. c. If in the opinion of [ Builder's Company Name ] Subcontractor falls behind the progress schedule, Subcontractor shall take steps as may be necessary to improve the subcontract progress, and [ Builder's Company Name ] may require Subcontractor to increase the number of shifts and/or overtime work, days of work, and/or increase equipment and/or tools being used, and to submit such revised schedule demonstrating the manner in which the agreed rate of progress will be regained. 3. PAYMENT PROCEDURES a. Payment will be made to Subcontractor for work performed under this subcontract as measured and certified as being completed by [ Builder's Company Name ]. Before any payment is due, Subcontractor must provide [ Builder's Company Name ] with a written estimate of the total amount of work completed and a signed statement that all completed work fully conforms to contract requirements. b. Upon application, partial payments for work performed under this subcontract will be made by [ Builder's Company Name ], and will equal the value of the work performed by Subcontractor, less the sum of previous payments. c. Subcontractor will receive partial payments fifteen (15) days after invoice has been received by [ Builder's Company Name ]. d. Upon completion of all contracted work, Subcontractor will be paid the remaining amount due Subcontractor under this subcontract. Final payment shall release [ Builder's Company Name ] from any further obligations whatsoever in respect to this subcontract. Subcontractor shall, as a condition to receipt of final payment, provide to [ Builder's Company Name ] a full release from any and all claims, liens, and demands whatsoever for all matters growing out of, or in any matter connected with this subcontract. 4. LAWS AND REGULATIONS Subcontractor, its employees and representatives, shall at all times comply with all applicable laws, ordinances, statutes, rules, and regulations, federal and state, county and municipal, and particularly those relating to wages, hours, fair employment practices, nondiscrimination, and working conditions. Subcontractor shall procure and pay for all permits, licenses, and inspections required by any governmental authority for any part of the work under this subcontract and shall furnish any bonds, security, or deposits required by such authority to permit performance of the work. 5. INSURANCE a. Subcontractor, at its own expense, shall procure, carry, and maintain on all of its operations workers' compensation and employer's liability insurance covering all of its employees, public liability and property damage insurance, and automotive public liability and property damage insurance. Coverage limits shall be in accordance with the requirements of the general contract. Subcontractor is required to name [ Builder's Company Name ] and Owner as additional insureds on Subcontractor's general liability policy. b. Subcontractor shall provide to [ Builder's Company Name ] prior to commencement of work a certificate from the insurance companies that such insurance is in force and will not be canceled without thirty (30) days written notice to [ Builder's Company Name ]. Continued 6. INDEMNIFICATION Subcontractor shall indemnify and hold harmless [ Builder's Company Name ] and Owner against any claims, damages, losses, and expenses, including legal fees, arising out of or resulting from performance of subcontracted work to the extent caused in whole or in part by the Subcontractor or anyone directly or indirectly employed by the Subcontractor. 7. SAFETY a. Subcontractor and all of its employees shall follow all applicable safety and health laws and requirements pertaining to its work and the conduct thereof, but not limited to, compliance with all applicable laws, ordinances, rules, regulations, and orders issued by a public authority, whether federal, state, or local, including the Federal Occupational Safety and Health Administration, and any safety measures required by [ Builder's Company Name ] or Owner. b. Safety of Subcontractor's employees, whether or not in common work areas, is the responsibility of Subcontractor. c. Subcontractor agrees to instruct all its employees to inform [ Builder's Company Name ] immediately of any unsafe condition or practice whether or not in common work areas. 8. INSPECTION AND ACCEPTANCE OF COMPLETED WORK The materials and work shall at all times be subject to inspection by Owner and [ Builder's Company Name ]. Owner and [ Builder's Company Name ] shall be afforded full and free access to the construction site for the purpose of inspection and to determine the general progress of the work. In the event that any of the work or materials are found to be improper or defective by Owner or [ Builder's Company Name ], Subcontractor shall upon notification in writing from [ Builder's Company Name ] proceed to replace or correct the defective material or workmanship at its own cost and expense. If Subcontractor fails to correct the defective work, [ Builder's Company Name ], at its option, may replace and correct the same and deduct the cost of correcting the defective work from Subcontractor's payments. 9. CHANGE ORDER PROCEDURES [ Builder's Company Name ] may order additional work, and Subcontractor will perform such changes in the work as directed in writing. Any change or adjustment to the subcontract price as a result of changes in the scope of work shall be as specifically stated in the change order. If Subcontractor encounters conditions it considers different from those described in subcontract documents or plans, it is required to issue written notice to [ Builder's Company Name ] before proceeding. Subcontractor's failure to issue notice shall constitute waiver of any claims for additional compensation. Only [ Builder's Company Name ]'s project superintendent is authorized to issue change orders to Subcontractor. If Subcontractor and [ Builder's Company Name ] cannot agree upon a price for the changes in the work, [ Builder's Company Name ] may direct Subcontractor to execute the changes, and Subcontractor will be paid based on the actual cost to Subcontractor plus a reasonable markup for profit and overhead expenses. Continued 10. DISPUTE RESOLUTION Any dispute between the Subcontractor and [ Builder's Company Name ] arising out of or related to this subcontract that is not informally resolved shall be settled by arbitration under the procedures contained in the general contact. Any Subcontractor claims for additional compensation or damages due to acts or omissions of Owner shall be submitted to [ Builder's Company Name ], who will submit the claim to the Owner on behalf of Subcontractor. Resolution procedures will be those contained in the general contract. 11. TRADE CONTRACTOR'S STATUS AS INDEPENDENT CONTRACTOR The relationship between [ Builder's Company Name ] and Subcontractor is that of independent contractor. Subcontractor has the status of an employer as defined by the Unemployment Compensation Act of the state in which this contract is to be performed and all similar acts of the national government including all Social Security Acts. Subcontractor will withhold from its payrolls as required by law or government regulation and shall have full and exclusive liability for the payment of any and all taxes and contributions for unemployment insurance, workers' compensation, and retirement benefits that may be required by federal or state governments. 12. WARRANTY a. Subcontractor warrants its work under this subcontract against all deficiencies and defects in material and/or workmanship. All materials and equipment furnished shall be new and installed in conformance with code requirements. Subcontractor agrees to repair or replace at its expense and pay for any damages resulting from any defective materials or workmanship that appear within one (1) year after the closing date. b. Subcontractor shall remedy, at its expense, any defects due to faulty materials or workmanship and pay for any damages caused to other work within seven (7) working days after being notified by [ Builder's Company Name ] or Owner. c. [ Builder's Company Name ] retains the right to perform remedial work not completed within the established time frame and charge the cost to Subcontractor. 13. TERMINATION OR SUSPENSION a. If Subcontractor fails to carry out the work in accordance with this subcontract and fails within seven (7) days after receiving written notice to make correction, [ Builder's Company Name ] will issue a second letter of noncompliance and notify Subcontractor of its intent to terminate the subcontract. If Subcontractor fails to make the necessary corrections within three (3) working days after receipt of the second letter, [ Builder's Company Name ] may terminate the subcontract. b. [ Builder's Company Name ] may, without cause, order Subcontractor in writing to suspend, delay, or interrupt the work in whole or in part for a period of time. An adjustment in subcontract price shall be made to cover the cost of performance, including profit on the increased cost, caused by the suspension, delay, or interruption.