Tuesday, January 23, 2007

More Contract Clauses

In my last post, I included some clauses for consideration when putting together a contract for a renovation project.

These clauses are in no specific order, but all offer additional protection for both parties:


1. PEOPLE AUTHORIZED TO MAKE DESIGN DECISIONS AFFECTING THE COST OF THE WORK: The following people are authorized to make design decisions which affect the Cost of the Work: _____________________________________ _____________________________________ (Please fill in line(s) above at time of signing Agreement)

2. CONFLICT OF DOCUMENTSIf any conflict should arise between the plans, specifications, addenda to plans, and this Agreement, then the terms and conditions of this Agreement shall be controlling and binding upon the parties to this Agreement.

3. MATCHING EXISTING FINISHESWhere Contractor's work involves the matching of existing finishes or materials, Contractor will use his best efforts to match existing finishes and materials. However, Contractor does not guarantee an exact match due to such factors as discoloration due to the aging process, difference in dye lots, and difficulty of exactly matching certain finishes, colors, and planes.

4. OWNER’S SEPARATE CONTRACTORS: Contractor to supervise, coordinate, and otherwise specified charge 20% profit and overhead on Owner's separate Subcontractors who are working on site at same time as Contractor.


5. CONTRACTOR NOT TO BE RELIED UPON AS ARCHITECT, ENGINEER, OR DESIGNER:

Contractor is not an architect, engineer, or designer. Contractor is not being hired to perform any of these services. To the extent that Contractor makes any suggestions in these areas, Owner acknowledges and agrees that Contractor’s suggestions are merely options that Owner may want to review with the appropriate design professional for consideration. Contractor’s suggestions are not a substitute for professional engineering, architectural, or design services, and are not to be relied on as such by Owner. Contractor is not responsible for ascertaining whether details in Owner’s plans conform to all applicable building and planning codes. Contractor is not responsible for the cost of correcting errors and omissions by Owner’s design professionals and separate contractors.

6. INSURANCE Owner shall pay for and maintain “Course of Construction” or “Builder’s Risk” or any other insurance that provides the same type of coverage to the Contractor’s completed work and work in progress during the course of the project, including profit and overhead. It is Owner’s express responsibility to insure dwelling, all materials delivered to the worksite, and all work in progress against all damage caused by theft, vandalism, fire and Acts of God such as earthquakes or floods. Owner shall increase insurance on property to reflect the value at completion of project. Owner shall name Contractor as a “loss payee” on the homeowners policy. Owner shall provide Contractor with a property binder or a certificate of property insurance.

7. ENTIRE AGREEMENT, SEVERABILITY, AND MODIFICATION This Agreement represents and contains the entire agreement between the parties. Prior discussions or verbal representations by the parties that are not contained in this Agreement are not a part of this Agreement. In the event that any provision of this Agreement is at any time held by a Court to be invalid or unenforceable, the parties agree that all other provisions of this Agreement will remain in full force and effect. Any future modification of this Agreement must be executed in writing in order to be valid and binding upon the parties.

8. ADDITIONAL LEGAL NOTICES REQUIRED BY STATE OR FEDERAL LAW

REGISTRATION: All home improvement contractors and subcontractors shall be registered. Any inquiries about a contractor or subcontractor relating to a registration should be directed to: Director, Home Improvement Contractor Registration One Ashburton Place Room 1301, Boston MA 02108Tel: (617) 727-8598 (This is required in Massachusetts-check your state laws).

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