SUBCONTRACTOR TERMS and CONDITIONS

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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 performance which meets or exceeds criteria indicated in the building codes and industry standards for each trade.

■ Workmanlike quality is also performance which meets or exceeds the Company Scope of Work.

■ Work is 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.

Pre-Start Inspection Report

■ The Subcontractor and the Site Superintendent shall walk the job together and complete a Pre-Start Inspection Report.

Exit Inspection Report

■ The Site Superintendent shall inspect the work of each Subcontractor upon work completion.

■ The Site Superintendent shall issue an Exit Inspection Report containing all items requiring correction.

■ The Subcontractor is expected to immediately respond to the Exit Inspection Report.

■ Non-response to the Exit Inspection Report shall compel the Site Superintendent to otherwise arrange to complete the work.

■ Non-response to the Exit Inspection Report shall result in the Subcontractor being charged for the cost of completing of the work.

■ Any such charge shall be deducted from any outstanding balance due the Subcontractor.

■ No payment shall be made until all Exit Inspection Report items are completed and approved by the Site Superintendent.

Damage to and/or Wasteful Use of Materials

■ Damage to materials and installed items caused by negligence of the Subcontractor or its employees will result in back charges.

■ Back charges for the amount necessary to replace or repair the materials or items will be determined by the Company.

■ Back charges will be deducted from the next or final payment due the Subcontractor.

■ Wastefulness of materials by the Subcontractor or its employees will be determined by the Site Supervisor.

■ Wastefulness of materials 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 any additional warranty coverage requirements and time period pertaining to its trade.

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 Subcontractor does not return to correct items on the walk-through list, Site Superintendent shall arrange to make corrections.

■ If Subcontractor does not return to correct items on the walk-through list, Subcontractor will be charged for this work.

■ The Subcontractor hereby agrees to reimburse Company for costs associated with such repairs.

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.

■ This provision shall apply 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.

Pricing and Change Orders

■ All pricing must clearly show charges for labor and charges for materials.

■ 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.

■ Any additional work following the issuance of the initial Work Order requires that the Subcontractor request a Change Order.

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.

Invoicing Procedure

■ The Subcontractor or its representative must sign the work order before payment will be issued.

■ The work order may be used in place of an invoice to request payment for completed and approved work.

■ Any request for payment must relate solely to a single project. Do not combine projects on the request.

■ For any subcontractor unable to provide proof of current Worker's Compensation Insurance:

■ 7.50% of the total invoice payment shall be retained by Company. (See INSURANCE for specific information)

Insurance

■ The Subcontractor shall have current General Liability Insurance acceptable to the Company in place at all times.

■ The Subcontractor shall have current Worker’s Compensation Insurance in place at all times.

■ For any subcontractor unable to provide proof of current Worker's Compensation Insurance:

■ 7.50% of the total invoice payment shall be retained by Company.

■ This amount shall be released upon the submission of a valid certificate of Worker's Compensation coverage.

■ If no such submission is made within 30 days of the end of the subcontractor's work on a project:

■ The Company shall permanently retain the withheld funds as an offset Worker's Compensation audit costs.

■ No accounting of the use of the withheld funds shall be provided to, or requested by, the subcontractor.

■ The Subcontractor shall name Company as ADDITIONAL INSUREDS on any such policy.

■ 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;

■ any claim made against Company due to any injury of the Subcontractor’s trade contractor;

■ any claim made against Company due to the workmanship, equipment, or materials supplied by the Subcontractor.

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.

■ It is possible that Company may incur citations, fines, and/or penalties due to the negligence of Subcontractor.

■ Upon such occurrence, Subcontractor agrees to indemnify and reimburse Company for any citations, fines, and penalties incurred.

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 will designate a dumpster or a trash pile on the lot for all building debris and trash.

■ Trash, such as lunch or snack trash, is not to be thrown into HVAC ductwork, in the crawlspace, or anywhere other than designated receptacles.

■ Portable toilets are provided on all job sites.

■ Any person found using sinks, tubs, commodes, ductwork, closets, etc., as a toilet will be fined $100.00.

■ Additionally, the individual will not be allowed back on any Company job sites.

■ The responsible Subcontractor will be charged the entire cost of cleaning, which may include replacement, plus $250.00.

■ Any such fines, charges, or replacement cost will be deducted from the next or final payment due the Subcontractor.

■ No smoking is allowed in any house after exterior sheathing is installed.

Drug-Free Workplace

■ Company maintains a drug-free workplace. The abuse of any controlled substances or alcohol on any Company job site is not permitted.

■ Should the Subcontractor or its employees abuse either drugs or alcohol on any job site, they will be requested to leave the job site.

■ Individuals will not be allowed to return to work until the problem is corrected to the satisfaction of Company.

■ To avoid impeding progress on the job site, Company may arrange for completion of the Subcontractor's work by others.

■ In such a circumstance, the Company may apply any amount due the Subcontractor to the cost of completing the work.

■ In the event of such application, the Company reserves all other cost recovery process rights.

Other

Subcontractor acceptance or rejection (required):

(initial)

I have read, understand, accept, and will comply with all Company Terms and Conditions

I do not accept these Company Terms and Conditions

Signing on behalf of Subcontractor

Date of acceptance