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SUBCONTRACTOR ACCEPTANCE OF COMPANY TERMS AND CONDITIONS





Construction Quality Requirements

The work of all Subcontractors, their employees, and/or trades is expected to be performed in a good and workmanlike manner. Workmanlike quality is defined as workmanship which meets or exceeds those criteria indicated in the building codes, the Company Scope of Work and as defined by industry standards for each trade. Work is also to be performed consistent with the materials and installation methods identified in the construction plans. The Subcontractor is required to be familiar with the latest Company Scope of Work for its trade. A copy of the latest Scope of Work will be made available upon request.

Relationship With Client

Company may, in the course of business, introduce the Subcontractor to a Client with whom Company has a pre-existing relationship. The Subcontractor recognizes and affirms that the relationship between Company and the Client is important and valuable. The Subcontractor agrees not to solicit or accept business directly from the Client for a period of 90 days from the date of completion of any project initiated by Company with the Client. This provision shall apply whether the Subcontractor actually performs any work for Company on the Client's project or not.

Inspection Reports

The Subcontractor and a Company representative shall walk the job together and complete each section of the inspection report(s). The Subcontractor must correct any deficiency found during the inspection and the job must be 100% complete before payment will be made. The Subcontractor and a Company representative must sign-off on all sections of the inspection report(s) attesting that the job is correct and complete.

Punch List

The site superintendent shall inspect the work of each Subcontractor and will issue a punch-list of all items requiring correction as soon as the Subcontractor has completed its work. The Subcontractor is expected to immediately complete the punch-list so that it does not slow down overall construction of the home and/or the scheduling of the next trade contractor. Should the Subcontractor not return to complete its punch-list within a reasonable time, as determined by the Company, the site superintendent may otherwise arrange to complete the punch-list and the Subcontractor will be charged for this work. The job will not be considered to be complete and no payment shall be made until all punch-list items are completed and approved by the site superintendent.

Client Walk-Through

Any items found on the Client’s walk-through that require correction must be completed immediately upon notification. Time is of the essence for completing corrections on Client’s walk-through. If any Subcontractor does not return to correct its items listed on the walk-through list, then site superintendent may otherwise arrange to make the corrections and the Subcontractor will be charged for this work. The Subcontractor hereby agrees to reimburse Company for costs associated with such repairs.

Invoicing Procedure

Invoices must be turned into the site superintendent no later than Thursday at 5:00 p.m. Invoices will be approved and turned into the office on Friday. The Subcontractor or its representative must sign the purchase order before payment will be issued. The purchase order may be used in place of an invoice to request payment.

Work Order Number

No invoice shall be paid that does not include the work order number for the job. The pre-printed Work Order issued by Company may be used as an invoice.

Safety

The Subcontractor acknowledges that it has its own Safety and Hazard-Communication program for its employees and/or trade contractors. Subcontractor agrees to comply with OSHA and/or any other governmental agency’s safety rules and regulations. Should any citations, fines, and/or penalties, etc., be incurred by Company due to the negligence or oversight of the Subcontractor, the Subcontractor agrees to indemnify and reimburse Company for any and all penalties, fines, etcetera, incurred.

Insurance

Subcontractor acknowledges that a requirement of working for Company is that the Subcontractor have current Worker’s Compensation and General Liability Insurance in place at all times, naming Company as ADDITIONAL INSUREDS. The Subcontractor agrees to indemnify Company and to be responsible for any claims, expenses, or litigation arising from any claim made against Company due to any injury of the Subcontractor’s employee or trade contractor for any worker’s compensation claim. The Subcontractor also agrees to indemnify Company and be responsible for any claims, expenses, or litigation arising from any claim made against Company due to the workmanship, equipment, or materials supplied by the Subcontractor.

Cleanliness

The Subcontractor is responsible for leaving the work area clean and free of debris. If it is necessary for Company to remove debris left by the Subcontractor, the Subcontractor will be assessed a clean-up fee of $100.00. The site superintendent or other Company representative will designate an area for all building debris and trash. Such area may be a dumpster or a designated trash pile on the lot. Trash, such as lunch or snack trash, is not to be thrown on the floor of the house, in the basement or anywhere on the job site. All such trash must be placed in the designated trash receptacle. Port-a-johns are provided on all job sites. Any person found using sinks, tubs, commodes, ductwork, closets, etc., as a toilet will be fined $100.00 and will not be allowed back on any Company job sites, and the Subcontractor will be charged the entire cost of cleaning plus $250.00. It is the responsibility of the Subcontractor to impress on its employees and trade contractors that this offensive habit of using an inappropriate area as a toilet facility will not be tolerated. No smoking is allowed in any house after exterior sheathing is installed.

Drug-Free Workplace

Company maintains a drug-free workplace. The mis-use of any controlled substances (drugs) or alcohol on any Company job site is not permitted. Should the Subcontractor or its employees be found to be in possession of either drugs or alcohol on any job site, the Subcontractor will be requested to leave all Company job sites and will not be allowed to return to work until the problem is corrected to the satisfaction of Company. If it is necessary for the Site Superintendent to arrange for completion of the Subcontractor's work, Subcontractor will reimburse the Company for that expense.

Pricing and Change Orders<

All work is quoted and priced per model. Payment will be made per the price listed on the Work Order. Any changes will be priced per Change Order. No additional work will be considered, allowed, or paid other than that priced on the Work Order or Change Order. Should the Subcontractor be requested to perform any additional work following the issuance of the initial Work Order, the Subcontractor must request an additional Change Order from the site superintendent.

Damage to and/or Wasteful Use of Materials

Damage to materials and installed items such as, but not limited to, carpet, vinyl, fixtures, and cabinets, caused by negligence on the part of the Subcontractor or its employees, as determined by the Company, will result in back charges for the amount necessary to replace or repair the item. Wastefulness of materials by the Subcontractor, as determined by the Company, will result in the cost of such materials being deducted from payment due the Subcontractor.

Warranty

All work of the Subcontractor is to be guaranteed for a minimum of one (1) year from date of FIRST OCCUPANCY of the project. The Subcontractor agrees to abide by the warranty coverage requirements and time period as they pertain to its trade.



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