HVAC Terms and Conditions

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									These HVAC Terms and Conditions are the rights and the obligations of the general
contractor and the subcontractor when the parties enter into a separate HVAC
subcontractor agreement. These terms and conditions contain general provisions in
respect to the rights and obligations of the contracting parties as well as terms and
conditions which are unique to the HVAC services to be performed by the
subcontractor. This document, in conjunction with a separate work agreement, may be
used by a contractor who is hiring a person or business to perform HVAC work.
                           HVAC TERMS AND CONDITIONS

1.       HAZARDOUS MATERIALS

In the event the Subcontractor encounters any hazardous materials while performing the Work,
the Subcontractor may stop the Work until such time a fee has been negotiated between the
General Contractor and the Subcontractor for the removal of the hazardous materials. Hazardous
materials shall mean any material that because of its quantity, concentration or physical chemical
characteristics may pose a real hazard to human health or the environment. Hazardous materials
shall include, but not be limited to, flammable and combustible material, toxic material,
corrosive material, aerosols, compressed gases, mercury, asbestos, bulk fuels, medical waste and
chemical, biological and radiological materials.

2.       REMOVAL OF DEBRIS

Upon completion of the Work, the Subcontractor agrees that it shall promptly remove all debris
and equipment from the Premises and leave the Premises in a good state of cleanliness.

3.       ARBITRATION

In the event a dispute arises under this Agreement, the General Contractor and the Subcontractor
hereby agree to attempt to resolve such dispute with a mutually agreed upon mediator. Such
mediation shall occur in the City of ______________. Any costs and fees other than attorney
fees shall be shared equally between the General Contractor and the Subcontractor. If it proves
impossible to arrive at a mutually satisfactory solution, the General Contractor and the
Subcontractor hereby agree to submit the dispute to binding arbitration in the same city or
region, conducted on a confidential basis pursuant to the laws of the governing jurisdiction.

Any decision or award as a result of any such arbitration proceeding shall include the assessment
of costs, expenses and reasonable attorney's fees and shall include a written determination of the
arbitrators. An award of arbitration shall be final and binding on the General Contractor and the
Subcontractor and may be confirmed in a court of competent jurisdiction. The prevailing party
shall have the right to collect from the other party its reasonable costs and attorney fees incurred
in enforcing this Agreement.

4.       FEES

In the event the General Contractor fails to make the payment of Fees to the Subcontractor as
contemplated in the Agreement, the Subcontractor shall have the right to cease all Work at the
Premises until such time the General Contractor makes all payments due and owing to the
Subcontractor. In the event the General Contractor fails to make any payment of fees due and
owing to the Subcontractor within ______ (___) days of such payment being due, the
Subcontractor shall have the right to breach the failure of such payment as a material breach of


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the Agreement and shall have the right to terminate the Agreement and not complete the Work
contemplated therein.

5.       COMPLIANCE WITH BUILDING REGULATIONS

The General Contractor agrees that the Subcontractor shall not be held liable or responsible for
the failure by the General Contractor to adhere to any relevant building codes, regulations or
ordinances. The Subcontractor shall not be held responsible or liable for any existing abnormal
or unusual conditions at the Premises.

6.       ADDITIONAL WORK

In the event any additional work required to be done by Subcontractor will be provided by the
Subcontractor upon written authorization of the General Contractor. The Subcontractor and the
General Contractor agree that payment to the Subcontractor of any additional work required to
be done shall be negotiated between the Subcontractor and the General Contractor prior to the
commencement of any additional work by the Subcontractor.

7.       ASSIGNMENT

The General Contractor and the Subcontractor agree that the Subcontractor may/may not assign
any of the Work contemplated herein to a third party with/without the prior written consent of
the other party.

8.       FORCE MAJEURE

Neither the General Contractor nor the Subcontractor is responsible for the failure to fulfil its
obligations under this Agreement or for delay in doing so if such failure or delay is due to
circumstances beyond its control, such as, but not limited to, acts of God, acts of government,
war, riots, strikes, accidents in transportation. The General Contractor and the Subcontractor
agree to immediately provide notice of any such circumstance and hereby undertakes to restore
the status quo as soon as is feasible.

9.       INSURANCE

The General Contractor will maintain at its sole cost and expense, fire insurance in an amount of
not less than ______________ ($______) Dollars. Such insurance coverage shall include
construction, vandalism and malicious mischief clauses. The insurance in place by the General
Contractor will name the General Contractor and its subcontractors as additional insureds under
the policy. In the event the General Contractor fails to obtain and maintain such insurance
coverage for the Work to be performed, the Subcontractor may at its sole option purchase such
insurance at the costs of the General Contractor.

The Subcontractor agrees that it will prior to the commencement of the Work and throughout the
duration of the Work obtain and maintain Worker’s Compensation Insurance for the
Subcontractor’s employees. The Subcontractor shall maintain adequate coverage against any

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claims which may be made against the Subcontractor for Worker’s Compensations,
unemployment insurance and taxes. The Subcontractor must maintain public liability, property
damage and builder’s risk insurance in the aggregate amount of _____________ ($__________)
Dollars for the duration of the Agreement, with the General Contractor.

10.      INDEMNIFICATION

The General Contractor hereby agrees to indemnify and hold the Subcontractor, its affiliates,
successors and assigns and its employees, harmless from and against any and all claims which
may arise out of the General Contractor’s Work at the Premises or from the conduct of the
General Contractor’s business at the Premises. The General Contractor further agrees to
indemnify and hold the Subcontractor, its affiliates, successors and assigns and its employees
harmless from and against any and all claims arising from any breach or default in the
performance of any of the obligations on the General Contractor’s part to be performed under the
terms of this Agreement or arising from any negligence of the General Contractor or any of the
General Contractor’s agents, subcontractors or employees and from and against all costs,
including reasonable attorney fees, expenses and liabilities incurred in the defense of any such
claim or any action or legal proceeding brought thereon.

11.      GOVERNMENTAL COMPLIANCE

The General Contractor shall be liable and responsible for and shall ensure at all times that the
General Contractor and its employees and subcontractors comply will all local, state and federal
laws.

The General Contractor shall at all times while the Work is being performed at the Premises,
ensure that clean drinking water and suitable toilet facilities are available for use.

12.      MATERIAL

The amount Fees payable under this Agreement are subject to increase if the cost of Materials
increases by more than __________ (_____%) percent over the amount quoted to the General
Contractor by the Subcontractor between the date of this Agreement and delivery of such
Materials to the Premises for the Work. In the event of such increases, and upon written
documentation establishing the extent of the increase, the Fees will be equitably adjusted.

13.      SAFETY

At all time while performing the Work, the Subcontractor and any of its employees shall:

         (a) wear hard hats, safety boots or shoes, long pants and shirts; and

         (b) wear safety glasses when performing tasks where the risk of eye injury is probable.




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The Subcontractor agrees to accept responsibility for the prevention of accidents to workers
engaged upon or in the vicinity while performing the HVAC installation services at the Premises.
The Subcontractor agrees to adhere to all federal, state, municipal and local laws, rules,
regulation, codes, standards, notices and requirements concerning safety while performing
HVAC installation services and shall be solely responsible for the training of the Subcontractor’s
employees and its sub-subcontractors employees as required to comply with federal and state
statues.

14.      UTILITIES

In the event the Subcontractor requires trenching, excavating, tunnelling or boring to perform the
HVAC installation services at the Premises, then prior to commencing the Work the
Subcontractor will be solely responsible for identifying and locating all existing underground
utilities that may interfere with the Work to insure that such services are not damaged by the
Subcontractor’s operations.

The Subcontractor will take all reasonable measures necessary to identify and avoid damaging
the services.

In the event underground utilities are identified, which may interfere with the HVAC installation
services of the Subcontractor, then the Work shall not commence without first obtaining the
written permission from the General Contractor.

The Subcontractor is responsible to protect the work of other trades from damage caused by the
HVAC installation services and shall be responsible for the repair of such damage.

15.      ADDITIONAL COSTS AND TAXES

The General Contractor shall pay to the Subcontractor any amounts incurred by the
Subcontractor for any and all taxes which may be applicable to the cost of the HVAC System,
including but not limited to, the delivery of the HVAC System to the Premises, the recycling,
handling and/or disposal of any refrigerants and any additional costs incurred for refrigerant tax
if applicable to the jurisdiction where the HVAC System is located.

Any repair or replacement of non-maintainable parts of the HVAC System including but not
limited to, duct work, piping, insulating material, electrical wiring, structural supports and other
non-moving parts and accessories, shall not be included in the Fees payable to the Subcontractor
under this Agreement.

16.      LIMITED LIABILITY

The Subcontractor shall be limited in its liability; either expressed or implied, and shall be
limited to the replacement of any defective equipment or parts which may be in violation of any
local, state, provincial or federal building codes of the applicable jurisdiction at the time of the
performance            of         the         Work          by           the          Subcontractor.



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