Contract for Construction of Building with Owner's Architect to Direct Work and Approve Costs

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Contract for Construction of Building with Owner's Architect to Direct Work and Approve Costs Powered By Docstoc
					                     Contract for Construction of Building with Owner's
                        Architect to Direct Work and Approve Costs

        Agreement made on the (date), between (Name of Owner) of (street address, city,
state, zip code), referred to herein as Owner, and (Name of Contractor), a corporation
organized and existing under the laws of the state of ______________, with its principal office
located at (street address, city, state, zip code), referred to herein as Contractor.

1.     Specifications and Drawings
       A.     Any work mentioned in the specifications and not shown on the drawings, or
       shown on the drawings and not mentioned in the specifications, shall be of like effect as
       if shown or mentioned in both. Contractor shall examine the specifications and drawings
       and check all dimensions and notify Owner of any discrepancies between the
       specifications and drawings and any deficiencies, omissions, or errors in them before
       any work is done in accordance with the specifications and drawings.

       B.     Contractor shall be solely responsible for correct interpretation and use of all
       sizes and dimensions and proper joining of all new work required to match existing
       work. Contractor shall do all necessary cutting and fitting to make Contractor's work
       properly come together with and attach to existing work.

       C.      Contractor, before proceeding with the work, shall prepare or have prepared
       detail, arrangement, construction, fabrication, and other drawings not supplied by
       Owner and shall submit (number) prints of these drawings for Owner's approval.
       Promptly following return by Owner of any one set of the prints corrected or approved,
       Contractor shall supply Owner with (number) additional sets of prints with approved
       corrections for the use and records of Owner.

2.       Quality
         Unless otherwise provided in the specifications, all materials and equipment shall be
new. Workmanship and materials shall be of the best quality, and all fabrications shall be done
in a good and workmanlike manner and in accordance with the best shop practices. Contractor
shall, if required, furnish satisfactory evidence of the kind and quality of materials purchased by
Contractor. Contractor shall not substitute materials for those specified without the Owner
Architect's prior written approval.

3.     Cooperation
       Contractor shall perform the work so as to maintain traffic and Owner's operations as
nearly normal as possible and shall not interfere with such operations without receipt of written
authority from the Owner’s Architect. Contractor shall assist in keeping clear walks, roadways,
railroad sidings, all passageways, working space, and storage areas adjacent to the zone of
operations. Contractor shall cooperate with and shall not in any way interfere with other
contractors, their employees and agents.

4.    Contractor
      Contractor understands the nature, location, and scope of the work, the character of
equipment and facilities needed preliminary to and during the prosecution of the work, the
general and local conditions, and all other matters which can in any way affect the work and is
not relying on any representations or promises of Owner except those contained in this
Contract. Contractor understands that from time to time Owner may require Contractor to turn
over to Owner for acceptance portions of the work when they are designated by the Owner
Architect as being completed.

5.    Supervision and Labor
      A.     Contractor shall provide a competent Superintendent, satisfactory to the
      Owner’s Architect, authorized to act for Contractor. Contractor shall promptly
      remove from the work and Owner's premises any superintendent or employee of
      Contractor whose work is not satisfactory to the Owner’s Architect. The Superintendent
      shall not be changed except with the consent of the Owner’s Architect, unless the
      Superintendent proves to be unsatisfactory to Contractor and ceases to be in its

      B.     Contractor's Superintendent or a competent assistant superintendent shall be on
      the premises at all times during working hours and in responsible charge of the work on
      behalf of Contractor. Contractor's executive officers shall give the work such personal
      supervision as may be necessary in the opinion of Owner.

      C.     All labor shall be performed in a thorough and workmanlike manner in strict
      accordance with this Contract. Contractor shall enforce strict discipline and good order
      among Contractor's employees. Contractor shall exercise the necessary supervision
      and control to prevent Contractor's employees from violating any of Owner's rules and

6.     Authority of Owner’s Architect
       Owner shall provide a competent Architect, who shall have authority to direct all phases
of the work and to approve all authorized costs except as otherwise provided in this
Agreement. The Owner’s Architect shall have authority to reject work and material which does
not conform to the Contract. He shall also have authority to stop the work whenever such
stoppage may, in his opinion, be necessary to insure the proper execution of the Contract.

7.     Changes in the Work
       Upon written order of Owner, the work may be altered, increased, or decreased. In such
event, and if requested by the Owner’s Architect, Contractor shall furnish a written cost
estimate of the work to be added or omitted.

8.    Procurement of Materials
      Unless otherwise specified by Owner in writing, all purchasing shall be accomplished by
purchase order. Contractor shall submit all purchase orders to Owner for its prior approval.
Owner reserves the right to purchase any items directly on his own account. Each party shall
forward to the other, copies of all purchase orders on the same day they are issued.

9.    Completion of Work
       It is understood that time is of the essence and that, subject to the directions of the
Owner’s Architect, Contractor shall complete all authorized work in a minimum of time
consistent with good construction practices under the existing conditions or circumstances.

10.   Costs of Work
      Owner will pay Contractor for actual costs necessarily and reasonably incurred for the
proper performance of the work, such costs to include the following items:

       A.      Wages and salaries of Contractor's employees performing authorized work at the
       job site, or engaged elsewhere, including purchasing and expediting of procurement
       and delivery of materials and equipment, for such part of their time as is employed on
       this work. Wage and salary classifications and rates shall be as set forth in the attached
       Schedule A. Except as specifically set forth in this Agreement, wage and salary
       classifications and rates and any other compensatory agreements covering employees,
       and the methods of calculation of the same, must have the written approval of the
       Architect of the Owner before Contractor makes commitments relating to them.
       Contractor shall make no changes in any labor contracts or employment agreements
       relating to the work nor shall any overtime or holiday work be performed without the
       prior approval of the Owner’s Architect.

       B.     Cost of necessary materials, equipment, tools, supplies, fuel, freight charges and
       services, including telegrams and long distance telephone calls originating at
       Contractor's office, and cost of reproduction of specifications and drawings authorized
       by the Owner’s Architect. Cost of construction of temporary structures and facilities at
       the job site and the maintenance of the same, provided the prior written approval of the
       Owner’s Architect was obtained for their installation.

       C.     Traveling expenses directly chargeable to the work, provided the Owner
       Architect's prior approval was obtained. Use of automobiles shall be billed at the rate
       of (number) cents per mile.

       D.     Actual initial moving expenses to and final moving expenses from the job site of
       Contractor's key personnel necessary for prosecuting the work, provided the approval of
       the Owner’s Architect was obtained. Such initial moving expense of any employee shall
       not exceed the amount which would be incurred by his or her moving from Contractor's
       main office to the job site, and total moving expense for any employee shall not exceed
       twice such initial expense.

       E.     Reasonable rentals on construction equipment, tools, warehouses, and
       offices, whether rented from Contractor or others, in accordance with written rental
       agreements which must have the prior written approval of the Owner’s Architect, risk of
       loss of or damage to the same to be upon the lessor of the same; cost of transportation
       of construction equipment; costs of loading, unloading, installation, dismantling, and
       removal, as provided in the rental agreements. Rental shall not exceed the existing local
       standard rates, rental of equipment owned by Contractor to be at such rates or
       at ______% of the latest Associated Equipment Distributor's listing, whichever is lower.
      F.     When total rental charges for any item of rental equipment owned by Contractor
      or by a party controlled by Contractor equals the market value of such equipment at the
      time of rental by Owner, which value shall be mutually agreed upon before rental of
      the item, no further rental charge shall be made for additional continuous use of such
      equipment. Repair and replacement costs shall be excluded from the rental agreements
      and shall only be authorized as cost of work when they are minor, do not constitute a
      major overhauling, do not add materially to the life of the equipment, and have received
      the prior written approval of the Owner’s Architect. In no event shall a repair or
      replacement item exceed ____% of the market value of equipment at the time of rental
      or $_____________, whichever is lower.

      G.     Payroll taxes and insurance and contributions applicable to the wages and
      salaries of Contractor's employees performing authorized work under this Contract,
      exclusive of home office salaries; and sales, excise, or other taxes paid by Contractor
      on materials, equipment, supplies, and services chargeable to the Contract. The payroll
      taxes and insurance and contributions shall consist of the following items: (describe
      items of payroll taxes, insurance, and contributions, etc).

      H.   Cost of all subcontracts which have the prior written approval of the
      Owner’s Architect.

      I.     Cost of necessary licenses, permit fees, and bonds required by the Contract or
      by law and cost of insurance policies made reimbursable by the Contract.

      J.     Cost of reconstructing any work destroyed or damaged, not covered by
      insurance, and not caused by failure on the part of any officers or members of
      Contractor's firm, or of its other representatives having supervision or direction of the
      work in whole or in part, to exercise good faith or the standard of care which is normally
      exercised in the conduct of the business of a Contractor; but expenditures under this
      Article 10, Paragraph J must have the prior written approval of Owner.

11.   Items which are not Cost of Work
      A.     Contractor shall not be paid for expenses of operating Contractor's main or
      regular branch offices, for interest on capital employed or on money borrowed, or for
      overhead or general expenses of any kind incurred at Contractor's main or regular
      branch offices, including salaries of officers, owners or partners of Contractor.

      B.    Contractor shall not be paid for any illness or vacation pay for any of Contractor's
      employees except with the approval of the Owner.

12.   Contractor’s Fee
      A.     Contractor shall be paid a fee of $____________ as complete compensation for
      services in performing the Contract in its entirety, including administration, home, and
      branch office overhead and salaries, payroll taxes, and insurance and contributions
      applicable to the same and profit.
      B.    If a change made by Owner as provided in Article 7 substantially alters the
      scope of the work, Contractor's fee for work added or omitted shall be adjusted by an
      amount to be mutually agreed upon.

13.   Payment
      A.      Promptly after the first of each month during the progress of the work, Contractor
      shall furnish a full detailed written statement of all authorized costs incurred during the
      preceding calendar month in performing the work, supported by receipted bills for all
      labor and materials furnished, payments made to subcontractors and other authorized
      expenses, or such other proof of the correctness of the same as is satisfactory to
      Owner. If any bills are outstanding against Contractor for labor, materials or other costs,
      Owner may pay such bills and deduct the amount from the monthly statement. The
      Architect will promptly check the statement, and upon his written approval, Owner will
      pay Contractor the approved amount by the (number) day of the month,
      provided (number) copies of the statement have been delivered to the Owner
      Architect by the (ordinal number) day of the month.

      B.     The monthly statement shall also include an application for payment of 90% of
      Contractor's fee earned during the preceding month based upon the percentage of job
      completion as estimated by Contractor in Contractor's job progress reports and
      approved by the Owner and Architect. The remaining 10% of Contractor's fee shall be
      withheld until the work has been completed, inspected, tested, and finally accepted in
      writing by Owner and shall be paid within (number) days afterward.

      C.     No certificate or approval given, nor payment made to Contractor under this
      Contract, nor partial nor entire acceptance, use, or occupancy of the work by Owner
      shall constitute acceptance of work not in compliance with the Contract.

      D.      When the work is completed, Contractor shall apply to the Architect for final
      acceptance and payment and furnish in form approved by Architect a certificate that
      Contractor has paid in full all bills and claims arising under the Contract, except those
      listed in the certificate and agreed to by Owner, and that Contractor has paid in full for
      all labor and materials for which a lien could be filed. The certificate shall include a
      release by Contractor of all claims against Owner, its officers and employees, arising
      out of this Contract, except such claims as may be excepted by Contractor and agreed
      to by Owner, and except claims of third persons as may be unknown to Contractor. If
      any lien for labor or materials has been filed against Owner's premises, or if any notice
      of lien has been given to Owner, Contractor shall furnish in favor of Owner a complete
      release of the same from the lienors. Also, if requested by Owner, Contractor shall
      furnish lien waivers or releases from all subcontractors and others who furnished labor
      or materials toward the performance of the work, or receipts in full in lieu of the same.
      Final acceptance and payment shall constitute a release and waiver of all claims by
      Owner, except those arising from unsettled liens, from defective work appearing after
      final payment, or from failure to comply with the specifications.
14.    Discount, Rebates, and Returns
       All discounts, rebates and refunds shall accrue to Owner and Contractor shall
take the necessary steps to secure them.

15.     Records, Accounting, and Inspection
        Contractor shall keep full and detailed records and accounts in a manner approved by
Owner. Contractor shall afford Owner's authorized personnel and independent auditors, if any,
full access to the work and to all of Contractor's books, records, correspondence, instructions,
drawings, receipts, vouchers, and other documents relating to work under this Contract, and
Contractor shall preserve all such records for (number) years after final payment.

16.    Disposal of Surplus Materials
       All sales of surplus materials, equipment, supplies, and scrap must have the prior
written approval of the Owner and Architect. All returns from such sales shall belong to

17.   Continuance of Work
      In case of any dispute, Contractor shall continue to prosecute the work pending
determination of the dispute, unless requested by Owner to suspend work.

18.    Unloading
       Contractor shall unload all rail and truck deliveries and shall transport to and
unload at the job site all materials and equipment intended for the work, whether or not
furnished by Owner. Contractor shall use designated routes and places for hauling,
unloading, and storing materials, and they shall at all times be unloaded promptly to
keep tracks and roadways as clear as possible and to avoid demurrage charges.

19.    Protection of Work and Property
       Contractor shall protect all materials, equipment, and completed and partially completed
work from loss and damage, including theft and dama
Shared By:
Description: A building and construction contract must fulfill the same requirements as any other type of contract. Such a contract generally provides not only for the construction of the project, but also for many matters that are incidental to the project. Thus, it may provide for the carrying of liability, workers' compensation, and fire insurance policies, designating which party is responsible for obtaining particular insurance. A building and construction contract will typically specify the duties, responsibilities, and liabilities of each of the parties, as well as those of any employed architect or engineer. The amount and method of compensation is, of course, an important part of such a contract. Where a building contract refers to the plans and specifications and makes them a part of itself, the contract is to be construed as to its terms and scope together with the plans and specifications. Where the plans and specifications are by express terms made a part of the contract, the terms of the plans and specifications will control with the same force as if they were physically incorporated in the very contract itself.
PARTNER William Glover
I received my B.B.A. from the University of Mississippi in 1973 and my J.D. from the University of Mississippi School of Law in 1976. I joined the firm of Wells Marble & Hurst in May 1976 as an Associate and became a Partner in 1979. While at Wells, I supervised all major real estate commercial loan transactions as well as major employment law cases. My practice also involved estate administration and general commercial law. I joined the faculty of Belhaven College, in Jackson, MS, in 1996 as Assistant Professor of Business Administration and College Attorney. While at Belhaven I taught Business Law and Business Ethics in the BBA and MBA programs; Judicial Process and Constitutional Law History for Political Science Department); and Sports Law for the Department of Sports Administration. I am now on the staff of US Legal Forms, Inc., and drafts forms, legal digests, and legal summaries. I am a LTC and was Staff Judge Advocate for the Mississippi State Guard from 2004-2008. I now serve as the Commanding Officer of the 220th MP BN at Camp McCain near Grenada, MS. I served on active duty during Hurricanes Dennis (July, 2005), Katrina (August, 2005) and Gustav in 2008. I played football at the University of Mississippi in 1969-1971 under Coach John Vaught. I am the author of the Sports Law Book (For Coaches and Administrators) and the Sports Law Handbook for Coaches and Administrators (with Legal Forms),