Contractors Agreement

CONTRACTORS AGREEMENT

This agreement (the “Agreement”) made this _____ day of ______, ______by and between ______(the “Contractor”), and ______, (the “Owner”).

Witnesseth, that the Contractor and the Owner for the considerations named agree as follows:

1.  SCOPE OF WORK

The Contractor shall furnish all of the materials and perform all of the works shown on the drawings and/or described in the Scope of Work attached to this Agreement as “Exhibit A” (hereinafter referred to as the Scope of Work) as it pertains to the work to be performed on the property located at:

______

Contractor has received a Scope of Work from the Owner and has used said Scope of Work to arrive at the contract price listed in paragraph 3 of this Agreement. Contractor acknowledges that they have read and understand the Scope of Work that has been presented to them, and that the price quoted in paragraph 3 of this Agreement to perform the work as stated in the Scope of Work is for a complete job and that no other charges will be brought against the Owner for the work being requested.

2.  TIME OF COMPLETION

The work to be performed under this Contract shall be commenced on or before ______and shall be completed on or before ______(the “Date of Completion”). Time is of the essence.

Should the timeframe for the work to be performed under this Contract extend beyond the Date of Completion, the Contractor will be assessed a per diem penalty of ______

______($______) and the payment of the Contract Price defined in paragraph 3 of this Agreement to the Contractor will be reduced by an amount equal to the per diem penalty multiplied by the number of days that the timeframe for the work to be performed under this Contract extends beyond the Date of Completion.

Should the work to be performed under this Contract be completed to the satisfaction of the Owner prior to the Date of Completion, a per diem bonus of ______

($______) will be paid by the Owner to the Contractor and the total payment to the Contractor will equal the Contract Price defined in paragraph 3 of this Agreement plus a bonus amount equal to the per diem bonus multiplied by the number of days remaining from the actual date of completion to the original Date of Completion defined in this paragraph 2.

3.  THE CONTRACT PRICE

The Owner shall pay the Contractor for the material and labor to be performed under this contract the amount of $ ______(the “Contract Price”), subject to additions and deductions pursuant to authorized changes. This Contract Price may also be adjusted downward or upward as described in paragraph 2 of this Agreement.

4.  PAYMENT DRAWS

Payments of the contract price shall be disbursed as follows:

$ ______As a deposit to start work

$______upon COMPLETION of Draw #1

$______upon COMPLETION of Draw #2

$ ______upon 100% completion of entire job

The Draw Schedule is attached as Exhibit B to this Agreement.

5.  GENERAL PROVISIONS

a.  I, ______, the Contractor contract my services as an independent contractor to the Owner stated above.

b.  As an independent contractor, I will be responsible for payment of any federal and state payroll and self-employment taxes attributable to payments received for services performed by me for the Owner, and I will not be considered an employee for federal or state payroll tax purposes.

c.  I am not working under any supervision by the Owner and will set my own work hours and routine.

d.  I will provide my own materials, tools, and equipment, and will expect no reimbursement for any out-of-pocket expenses incurred by me in the performance of my services.

e.  All work shall be completed in a workmanship like manner and in compliance with all building codes and other applicable laws.

f.  To the extent required by law, all work shall be performed by individuals duly licensed and authorized by law to perform said work.

g.  Contractor may at its discretion engage subcontractors to perform work hereunder, provided Contractor shall fully pay said subcontractor and in all instances remain responsible for the proper completion of this Contract.

h.  Contractor shall furnish Owner appropriate releases or waivers of lien for all work performed or materials provided at the time the next periodic payment shall be due.

i.  If major repair items arise during the course of the renovation, the repairs are to be completed only upon approval of the Owner of the work and the price. All change orders shall be in writing and signed both by Owner and Contractor.

j.  Contractor warrants it is adequately insured for injury to its employees and others incurring loss or injury as a result of the acts of Contractor or its employees or subcontractors, and is covered under his/her own workmen’s compensation insurance.

k.  Contractor shall at its own expense obtain all permits necessary for the work to be performed.

l.  Contractor agrees to remove all debris and leave the premises in broom clean condition. The Contractor shall be responsible for any citations issued by local municipalities pertaining to bulk trash left in the front yard, back yard, alley ways, drive ways, etc.

m.  In the event the Owner shall fail to pay any periodic or installment payment due hereunder, Contractor may cease work without breach pending payment or resolution of any dispute.

n.  All disputes hereunder shall be resolved by binding arbitration in accordance with rules of the American Arbitration Association.

o.  Contractor shall not be liable for any delay due to circumstances beyond its control including strikes, casualty, inclement weather, acts of God or general unavailability of materials.

p.  Contractor expressly holds Owner harmless for any injuries he/she might incur or any injuries his or her employees or subcontractors might incur while performing said contract unless caused by the gross negligence of Owner.

q.  Contractor warrants all work for a period of 1 year following completion.

r.  The Contractor recognizes that while the Scope of Work is intended to address all known repairs, additional minor repairs are likely to arise. Contractor will handle these during the course of the job with no charge to the contract price or term.

6.  OTHER ITEMS

a.  Any materials that Owner agrees to provide will be outlined in the Scope of Work.

b.  Contractor agrees to have any associates or employees sign a hold harmless/liability waiver prior to allowing them on work site.

c.  Contractor agrees to deal with subcontractors referred by Owner including ______(windows), ______(electrical), ______(carpeting), and ______(HVAC). Outside of the Contract Price, the Owner will pay an amount equal to 10% of the subcontractor invoices to Contractor for coordinating these tasks.

7.  CONTRACTOR INSURANCE AND LICENSCING INFORMATION

a.  Contractor is licensed in the State of ______and the Contractor’s license number is ______.

b.  Contractor is insured with ______(telephone number ______).

c.  The Contractor shall provide a copy of their license and insurance certificate to the Owner prior to commencing any work on the property.

IN WITNESS WHEREOF, the said Parties have hereunto executed this Agreement:

______

Contractor

______

Owner

“Exhibit A”

SCOPE OF WORK

Property Address: ______

Work to be completed by Contractor:

General

·  All work is to be performed in a professional manner. The Owner acknowledges that the home is an older home, and that not all items will be perfect, however the finished product will be functional and safe.

·  All materials are to be approved by the Owner. A “Materials List” and materials to be used are attached to this Scope of Work. Materials to be used will be in parentheses.

·  Remove all trash and debris. Maintain neat yards and porch throughout rehab.

·  All baseboard trim (G15) is to be installed ½” from the subfloor surface to accommodate for installation of new carpeting.

Flooring

·  Contractor is to remove all existing carpeting, padding and vinyl floor coverings. All subfloors are to be repaired as needed so as to have a proper surface for installing new flooring.

·  New vinyl flooring is to be installed using the vinyl tiles outlined on the Approved Materials Sheet (G11, G12). The tiles are to be installed on a new luan subfloor. Additional adhesive is to be used with the titles to insure they stick.

Doors

·  Trim and adjust all doors (G14) to insure proper operation and locking. (Doors must be cut down for carpet installation. Owner uses upgraded carpet and pad. Leave 1 ¼” clearance.) All doors are to have door stops to protect walls.

Painting

·  Prep walls for professional painting. Remove all curtains, mini-blinds, brackets, nails, etc. Fill/patch and sand holes. Walls need to be finished professionally. Do not paint before walls are prepped and approved by Owner.

·  Remove all cable wires, telephone wires, jacks, etc…

·  All painting will be two coats of Duron Builders Masterpiece paint (no substitutions allowed). Clean and prep all surfaces before painting (skim as necessary). Surfaces should be professionally finished. Paint colors are as follows:

1.  Exterior (trim): Bright White Gloss

2.  Exterior (foundation): Exterior Flat White

3.  Interior (bathroom): Bright White Semi-gloss on walls and trim

4.  Interior (kitchen): Antique White Semi-gloss on walls, White Semi-gloss on trim.

5.  Interior (walls): Antique White Flat,

6.  Interior (trim and doors): White Semi-gloss

7.  Interior (ceilings): Flat White

·  Owner prefers smooth ceilings; however, texturing may be used for problem areas upon receiving approval from Owner.

·  Replace all brass doorknobs and strike plates. Owner will provide new lockset/deadbolts to be installed on exterior doors.

·  All outlet and switch plate covers are to be replaced. Use oversized switch plate and outlet covers throughout home in ivory. Use ivory oversized switch plate covers in bathroom. (G1, G2, G3)

·  Rough window sills must be sanded and smooth prior to painting.

·  All floors that will be painted or tiled will be done toward the end of the job. It is important that the floors appear new upon completion

Interior

·  Spray all mold (including basement) with diluted bleach. Let dry. Spray again.

Work to be completed by OTHER contractors:

Demolition

1)  Remove all trash from house

2)  Remove fence in front yard

3)  Remove all trash in front and back and cut down overgrown trees and shrubs

4)  Cut down tree at rear stairwell

5)  Repair subfloors in home

6)  Remove aluminum siding and prep house for vinyl siding installation

7)  Remove decking on front of home and concrete steps on side of home

Exterior

1)  Remove fencing

2)  Cut down hedges

3)  Paint trim (see colors above)

4)  Install new gutters

5)  Install new vinyl siding (E8)

6)  Install new vinyl double hung windows and wrap with aluminum

7)  Repair rotted wood on porch and repaint porch

8)  Repair cracks in foundation and repoint, paint foundation white (see colors above)

9)  Point up bricks

10)  Install new grey indoor-outdoor carpeting on porch

11)  Install new handrail at steps

12)  Repair cracks in sidewalk

13)  Tear up and repour new concrete driveway

14)  Replace trim around door

15)  Install new mailbox, light fixture, and address numbers (E6 or E7, G5, E5)

16)  Tear off and install new roof with shingles (E9)

17)  Provide roofing certification upon completion of work

18)  Clean yard and put mulch in flower beds

19)  Remove deck and install new deck per Owner’s drawing. All wood is to be treated decking lumber.

20)  Install storm door (E1)

21)  Snake drain in well at basement door

22)  Remove clothesline

23)  Paint rear wall with exterior white (same color as foundation mentioned above)

24)  Paint Old shed with Rustoleum (Barn Red) and replace hinges on doors

25)  Wire brush all rust from railings and paint with black Rustoleum

Garage

1)  Clean and paint floor with grey floor paint

2)  Remove old wooden shelves

3)  Replace handle and lock on garage door

4)  Install new garage door opener

Heating and Air Conditioning

1)  Remove old boiler

2)  Remove oil tank

3)  Remove radiators and all piping. Fill in holes where necessary

4)  Install new ductwork throughout home- Owner is to approve location of ducts

5)  Install new 75,000 BTU Furnace, and 10 seer Air conditioning unit

6)  Recharge freon in central air compressor

Plumbing

1)  Repair leak under kitchen sink

2)  Install new electric, 40 gallon, hot water heater

3)  Remove galvanized water lines and replace with copper

4)  Install new faucets in kitchens (K3) and baths (B1)

5)  Replace diverter in first floor bathroom

6)  Check water pressure throughout home

7)  Provide certification for plumbing system upon completion of work

8)  Install new sump pump

9)  Snake sewer lines

10)  Check all drains throughout home

11)  Install new gas line for stove

12)  Install new laundry tub in basement

13)  Install washer hookup in closet in first floor bathroom

14)  Install new toilets in bathrooms (B6, B7)

15)  Install new 24” vanity in second floor bathroom (B3)

16)  Install new 30” vanity in master bathroom

17)  Pump septic tank

18)  Install new well pump

Electrical

1)  Upgrade main panel to 100 amp with circuit breakers

2)  Install new main line to home

3)  Install GFI outlets in kitchens and bathrooms per code

4)  Hardwire smoke detectors in all bathrooms

5)  Check all outlets to make sure they are properly grounded

6)  Install the following light fixtures to include the proper bulbs

a.  Exterior front wall light (G5)

b.  Two wall sconces in living room

c.  Dining room chandelier (G10)

d.  Kitchen fluorescent

e.  Upstairs hall - two pack fixtures (G4)

f.  Bathroom - medicine cabinet light fixture combo

g.  Clubroom - recessed lighting

h.  Bedrooms - two pack lighting (G4)

i.  Master Bedroom - Ceiling fan (G7)

j.  Exterior motion detector

7)  All wiring is to be in walls, not in wire molding

8)  Doorbell and chime

9)  Range hood and outlet