Contracts (cont’d)

A201 General Conditions

– Instruments of service: studies, models, sketches, drawings, specs, etc.
– Contractor and subs can reproduce instruments of service solely for project

– Contractor can request evidence of owners financial ability to fulfill contract prior to start of project only
– Afterwards only if there is a failure of payment, change in contract sum, or written concern of contractor on owners ability
– Owner pays for approvals, easements, assessments, and charges
– Owner provides surveys describing physical characteristics, legal boundaries/description and utilities
– Owner to give one copy of the contract documents to contractor
– Owner may carry out work and deduct from payments if contractor fails to carry out work within 10 days of written notice

– Contractor shall before starting work review contract docs and compare to existing conditions
– Contractor not required to verify contract docs are in accordance with applicable laws, statutes, ordinances, etc.
– Contractor solely responsible for construction means, methods, techniques, sequences, procedures and coordination of work
– Contractor may only make substitutions with consent of owner after evaluation by architect
– Contractor will pay for permits, fees, licenses and inspections
– Contractor shall notify owner and architect of concealed conditions that differ from contract docs within 21 days
– Contractor shall immediately stop work in area where archeological or wetland conditions are encountered
– Allowances shall cover materials, equipment delivered, taxes, unloading costs, installation, overhead, profit, and adjusted by change order
– Contractor to furnish to owner through the architect name and qualifications of proposed superintendent
– Owner or architect may object superintendent within 14 days
– Contractor to provide schedule of work and submittal schedule
– Contractor to maintain one set of contract docs and submittal docs at site marked with current field changes
– Shop drawings, product data, samples, etc. are NOT contract docs
– Contractor to review, approve, verify, field measure and coordinate submittals with contract docs
– Contractor shall not perform work that requires architect approval of shop drawings, product data, samples, etc.
– Contractor not relieved of responsibility for deviations from contract docs even with architect approval of shop drawings unless specifically stated
– Without notice architect approval does not apply to any revisions
– Contractor responsible for any necessary cutting, fitting and patching required to complete work
– If contractor fails to clean up owner may do so and be entitled reimbursement
– Contractor shall provide owner and architect to work in progress

– Architect shall visit site at appropriate intervals to be familiar with progress and quality
– Architect to keep owner reasonably informed of known deviations and defects but not responsible for errors or omissions
– Owner and contractor shall communicate through the architect
– Architect shall review applications for payment and issue certificates for payment
– Architects responsibility to check submittals for conformance with info given and design per contract docs
– Architect shall prepare change orders and construction change directives
– Architect will inspect project to determine date of substantial completion
– Architect will provide a project representative to assist in architects responsibilities on site
– Architect has final decision on matters of aesthetic effect expressed in contract docs

– Subs have direct contract with contractor
– Contractor shall issue a list of subs and owner or architect may object within 14 days
– If sub is rejected that is capable of doing work contract sum and time will be adjusted accordingly

– Owner can perform work with own forces or separate contractors
– Owner shall coordinate each separate contractor

– Change orders are prepared by the architect and signed by owner, contractor and architect
– Construction change directive prepared by architect director change prior to agreement on cost and/or time change
– Contractor shall promptly proceed with construction change directive upon receipt and advise architect on method of sum/time adjustment
– If contractor does not respond on method of sum/time adjustment architect shall determine
– Architect has authority to order minor changes in work

– If delays caused by circumstances outside of contractors control time shall be extended by change order

– Contractor shall submit to architect ten days before established progress payment an itemized application for payment per the schedule of values
– Architect will issue to owner a certificate for payment with a copy to the contractor within seven days
– Certificate for payment does that represent that the architect has made exhaustive inspection, reviewed means & methods, etc
– Architect may withhold in whole or portion as necessary to protect owner if: defective work, claims, failure to pay subs, work cannot be completed within sum/time or damages
– Owner shall make payments to contractor once architect issues certificate for payment
– Certificate for payment does not constitute acceptance of work
– Substantial completion is when work is sufficiently complete per the contract documents
– At substantial completion contractor shall issue a comprehensive list of items to be completed/corrected (punchlist) prior to final payment
– Architect will make an inspection to determine whether work is substantially complete
– Owner may occupy any partially completed portion if consented by insurer, public authorities and contractor
– Once contractor gives notice for final inspection the architect will inspect will issue final certificate for payment
– Neither final payment or retainage will be given until submits to architect an affidavit of payments, certificates of insurance, written statements, consent of surety, etc.
– Final payment shall constitute a waiver of claims

– Contractor shall provide for safety and protection on site
– Contractor shall designate a member (usually the superintendent) whose duty shall be the prevention of accidents
– In an emergency at contractor’s discretion shall act to prevent damage, injury or loss

– Contractor shall purchase and maintain insurance to protect contractor from claims
– Certificates of insurance shall be filed with owner prior to start of work
– Owner shall purchase and maintain liability insurance
– Owner shall purchase and maintain builder’s risk “all-risk” in the amount of contract sum plus subsequent modifications
– Property insurance shall cover stored materials off site and in transit
– Partial occupancy or use shall anot commence until insurance company have consented in writing
– The owner and contractor shall waive rights against each other, subs and architects for damages caused by or other causes covered by property insurance
– Owner can require performance bond and payment bond covering the project and payment obligations

– One-year period for correction of work performed between substantial and final completion
– Owner can accept nonconforming work and reduce contract sum accordingly

– Any additional testing, inspection or approvals beyond contract documents shall be at owner’s expense
– If additional testing, inspections or approvals reveals failure to comply with contract documents contractor shall pay
– Unpaid payments shall bear interest
– Claims must be made within time period specified by law but in any case not more than 10 years after substantial completion

– Contractor shall terminate contract if work si stopped for 30 consecutive days through no fault of contractor
– Owner may terminate contract if contractor fails to supply properly skilled labor, fails to pay subs, disregards laws or in breach of contract documents
– Owner upon certification by the initial decision maker and after having given contractor’s surety seven days notice can terminate contract
– Unpaid balance exceeds costs of finishing project shall be paid by contractor
– Owner may without cause order contractor in writing to suspend, delay or interrupt work in whole or part
– Owner may terminate contract for owner’s convenience

– Architect will serve as the initial decision maker, unless noted otherwise, and claims shall be referred to initial decision maker
– Initial decision maker shall review claims within ten days of receipt and take the following actions: request additional data, reject, approve, compromise or advise
– Claims shall be resolved by mediation administered by the American Arbitration Association in accordance with its Construction Industry Mediation Procedures
– Parties shall share mediator’s fees
– If parties select arbitration it shall be administered by the American Arbitration Association in accordance with is Construction Industry Arbitration Rules

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