HRD SF Sample Construction Contract.pdf

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GENERAL CONSTRUCTION CONTRACT

(SINGLE FAMILY REHABILITATION)

THIS GENERAL CONSTRUCTION CONTRACT ("Contract") is entered into on this ____________ day of ______________________, 20 _________ between ___________________

, located at ____________________, Detroit Michigan ____________ (the “Owner”), and

___________________________ located at _______________________________________, (the

“Contractor”).

1. The Owner hereby employs the Contractor for the purpose of rehabilitating the structure located at

_______________________________, Detroit, Michigan (the "Premises") in accordance with the terms of this Contract and its’ attachments, which attachments are by this reference made a part hereof (herein referred to as “the Contract").

2. The total fixed price for the scope of work shall be ___________________________ $ _________) Dollars.

3. The parties hereto expressly agree that the City of Detroit shall be a third party beneficiary of this Contract with the right to enforce any of the provisions hereof. By executing this Contract, the owner authorizes as its' agent the City of Detroit Planning Development Department Housing Services Division ("PDD") to act as its agent with the power to, terminate or cancel this Contract pursuant to the terms herein.

4. Performance of Work: Contractor agrees to perform and satisfactorily complete the work in accordance to the Specifications and Itemized Cost Breakdown attached hereto as Exhibit A and incorporated herein by reference.

5. Issuance of a Notice to Proceed: No work shall commence by the Contractor until he/she has purchased a building permit for the total amount of the contract and received a written Notice to Proceed. The Contractor must provide PDD with a construction schedule or approved Specifications & Award Acceptance Document, occupant protection plan, State notification (accepted by the Owner and PDD) and all applicable permits within 7 calendar days after the expiration of the Owner’s three

(3) day rescission period commencing on the date set forth above.

6. Materials, Labor and Equipment: Unless otherwise stipulated, the Contractor shall provide and pay for all materials, labor, tools and equipment necessary for the completion of the work in accordance with this Contract. The owner will permit the Contractor, at no cost, to use existing utilities such as electricity, gas and water necessary to carry out and complete the work. Upon execution of this Contract, and not before the three (3) day right of rescission, the Contractor is authorized to purchase materials necessary to complete the work under this Contract.

7. Hold Harmless: Contractor shall indemnify, hold harmless, and defend the Owner, PDD and their agents, employees, or officers (hereinafter referred to as "Indemnitees") from and against any and all losses, claims, judgments, and causes of action, including legal fees and expenses, of any and every nature and description brought or recoverable against Indemnitees' by reason of any act or omission, intentional or otherwise, of Contractor, its agents, employees, officers, members, parties or affiliates, arising directly or indirectly from the nature of the work covered by this Agreement, including but not limited to, the removal, handling and disposal of hazardous material.

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8. Insurance: Before commencing work, the Contractor shall furnish the Owner and the PDD with certificates evidencing the following coverage to be in force through the term of this Contract:

TYPE AMOUNT

(a) Workman’s Compensation $250,000 each accident

(b) Comprehensive General Liability $250,000 per occurrence of property damage $250,000 per occurrence of bodily injury

(c) Automobile liability insurance covering all owned, non-owned or hired vehicles which complies with the provisions of the Michigan No-Fault Insurance Act, with minimum bodily injury limits of Five Hundred Thousand Dollars ($500,000.00) each person and Five Hundred Dollars ($500.00) each occurrence and minimum property damage limits of Five Hundred Dollars ($500.00) each occurrence.

If such insurance expires during the period of construction, the Contractor will not permit the coverage to lapse and a new certificate shall be furnished to PDD. Contractor accepts all liability should his/her insurance lapse.

9. Codes, Permits and Regulations: The Contractor shall obtain and pay for all permits and licenses, and shall give notices, pay all fees and comply with the current PDD Contractor Performance Standards previously provided to the Contractor and all laws, ordinances, codes, rules and regulations of the City of Detroit and current, State of Michigan, EPA and the Department of HUD bearing on the work. If the work of the Contractor and/or subcontractor performing work for the Contractor shall be done contrary to such laws, ordinances, rules and regulations, Contractor shall bear all costs arising from such failure to comply. If the property is deemed HISTORIC, the building permit must indicate such designation.

10. Protection of work and property: The Contractor shall continuously maintain adequate protection for all his/her work and shall protect the Owner(s) and adjacent property from damage, injury or loss arising in connection with this Contract.

Contractor shall compensate the Owner or adjacent property owner for any such damage or injury. Further, it shall be the responsibility of the Contractor to remove from the premises any and all debris or refuse, resulting from this Contract, leaving the same in a neat and orderly condition. Said removal of debris or refuse shall occur at regular intervals so that the job site is neat and free of hazards at the end of each workday. Materials and equipment that have been removed and replaced as part of the work shall belong to the Contractor unless otherwise specified.

11. Assignment of Contract: The Contractor may not assign this Contract without written consent of the owner and the City.

The request for the assignment should be submitted to the PDD Representative, who will review the proposed request and provide a written approval or denial. Only assignments, as security will be permitted.

12. Responsibility of Contractors and subcontractors: The Contractor shall be held responsible for and warrants and guarantees, the execution and satisfactory completion of the work in accordance with the true intent of the specifications, and said work must be in compliance with the current version of PDD's Contractor Performance Standards previously provided to the Contractor. Contractor shall provide without charge all incidental items required as part of Contractor's work, even though not particularly specified or indicated. If Contractor has good reasons for objecting to the use of any materials, appliances or methods of construction as shown or specified, Contractor shall make a report of such objections to the Owner and the PDD's authorized Housing Rehabilitation Specialist ("Rehabilitation Specialist"). Contractor must then obtain a written Change Order approved by the Owner and the City prior to the start of work. The cost of any additional environmental clearance testing beyond one, will be the responsibility of the Contractor. The Contractor agrees to provide any and all protective gear and/or a safe environment for all inspectors to facilitate inspections as per OSHA and EPA regulations.

13. Fair Employment Practices: Contractor must abide by all federal, State and local regulations pertaining to fair employment practices. If the Contract exceeds Ten Thousand dollars ($10,000.00), the following conditions shall also apply:

(a) Contractor will not discriminate against any employee or applicant for employment because of race, color, creed, sex, age or national origin. The Contractor will take steps to ensure that employees are treated without regard to race, color, creed, sex, age or national origin. Such action shall include, but not be limited to, the

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rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause.

(b) Contractor will in all solicitation or advertisement for employees placed by or on behalf of the Contractor state that all qualified applicants will receive consideration for employment without regard to race, color creed, sex, age or national origin.

(c.) Contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice, to be provided, advising the labor union or worker(s) representative of the Contractor(s) commitments under Section 2020 of Federal Executive Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

(d.) Contractor shall comply with all provisions of Executive Order 11246 of September 24, 1965, and the rules, regulations, and relevant orders of the Secretary of Labor.

(e.) Contractor shall furnish all information and reports required by Executive Order 11246 of September 24, 1965 and by the rules, regulations and orders of the Secretary of Labor or the Secretary of Housing and Urban Development pursuant thereto, and will permit access to Contractor's books, records and accounts by the City of Detroit, the Secretary of Housing and Urban Development and the Secretary of Labor, for the purpose of investigations to ascertain compliance with such rules, regulations and orders.

(f.) Contractor shall comply with all provisions of the Section 3 clause, attached hereto as Exhibit B and incorporated herein by reference.

(g.) In the event of the Contractor’s noncompliance with the fair employment requirements of this Contract or with any of such rules, regulation or orders, this Contract may be canceled, terminated or suspended in whole or in part and the Contractor may be declared ineligible for further government contracts or federally assisted construction contracts in accordance with the procedures authorized in Executive Order 11246 of September 24, 1965 and such other sanctions as may be imposed and remedies invoked pursuant to Executive Order 11246 of September 24, 1965, or by rule, regulation or order of the Secretary of Labor, or as otherwise provided by Law.

(h) Contractor shall include the provisions of paragraphs (a) through (g) in every subcontract or purchase order unless exempted by rule, regulation, or order of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. Contractor will take such action with respect to any subcontractor or purchase order as PDD or the Department of Housing and Urban Development ("HUD") may direct as a means of enforcing such provisions, including sanctions for noncompliance, provided, however, that in the event that Contractor becomes a party to, or is threatened with, litigation with a subcontractor or vendor at the direction of HUD, the Contractor may request the United States to enter into such litigation to protect the interest of the Unites States.

14. Guarantees and Warranties: No payment to Contractor hereunder shall become due until the Contractor has furnished the Owner, in care of PDD, with all manufacturer’s and/or supplier’s written guarantees and warranties covering material and equipment furnished under this Contract. The Contractor guarantees the work performed for a period of eighteen (18) months from the final acceptance of all of the work required by this Contract.

15. Liens and Construction Approval: It is agreed that the PDD shall be the final arbiter of quality of workmanship, suitability of materials and completeness of work. Payment to the Contractor will be made only after the work has been certified satisfactorily completed by PDD and the Contractor has furnished the Owner, care of the PDD, a satisfactory release of liens or claims for liens by the Contractor, subcontractors, laborers and materials suppliers. The United States Government or its designee must be permitted to examine and inspect the rehabilitation work. Submitting false or forged documents will result in the termination of this Contract with notification being forwarded to the State of Michigan Licensing Bureau.

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16. Orders and Cooperation from Owner: Contractor and Owner acknowledge and agree that no work shall be done to the Premises outside of the scope of this Contract unless Contractor obtains a written Change Order approved by PDD and Owner.

PDD shall not be liable for any work done outside the initial scope of this Contract or any Change Order approved thereafter.

Owner shall give no oral directives to the Contractor or any subcontractor. Instead, Owner shall direct all concerns to the Rehabilitation Specialist. The Owner will cooperate with the Contractor to facilitate the performance of the work, including the removal and replacement of rugs, floor coverings, and furniture as necessary and possible relocation of inhabitants. Refusal of the Owner to, in anyway, cooperate with the provisions of this Contract may result in immediate termination of this Contract.

17. Contract Changes: All changes in this Contract or the specifications contained herein shall be mutually agreed upon by the Owner, the Contractor, and PDD and shall be in writing and signed by the parties to this Contract and approved by PDD.

No work shall commence until all required signatures have been obtained on change order documents. The City of Detroit and PDD shall not be responsible or held liable for any changes made to the Contract without PDD's approval.

18. Time Limits: The Contractor shall complete all work under this Contract in strict compliance with the approved Construction Schedule or approved Specifications & Award Acceptance Document, attached hereto as Exhibit C and incorporated herein by reference. The Construction Schedule or approved Specifications & Award Acceptance Document shall be based on calendar days. Contractor must submit all requests for extensions of time in writing to the Rehabilitation Specialist at least five (5) days prior to the end of the Contract term, or any extension thereof, and shall be subject to the approval of PDD. In general, an extension of time will be granted by PDD only if the delay is unavoidable and substantial, not the fault of the Contractor or its subcontractors and can not be reasonably anticipated or adequately guarded against.

Contractor acknowledges that the time limits specified herein are of the essence and that the Owner will suffer injuries and damages if Contractor's work is not completed within said time limits. Accordingly, in the event Owner must incur additional relocation expenses as a result of avoidable and foreseeable delays caused by Contractor and/or its subcontractors, Contractor shall be liable to pay Owner Seventy Five and 00/100 ($75.00) Dollars per day as liquidated damages. The parties agree that this liquidated damages provision was reasonably calculated to cover the Owner's actual damages and is not a penalty clause.

The Contractor will not be liable for liquidated damages during any period for which time of completion has been extended by PDD. (Submit requests for extension on a “Contract Change Order Form”).

19. Disputes: PDD shall, be the final arbiter of all disputes regarding claims of the Owner or Contractor involving Scope of Services, change orders, timeliness of completion and payment. .

20. Termination of Contract: In case the Contractor fails to furnish materials or execute work in accordance with the provisions of this Contract; fails to proceed with the work within the time limits specified in this Contract; fails to submit a construction schedule or approved Specifications & Award Acceptance Document and deliver a building permit to PDD within seven (7) days after the expiration of the Owner’s three (3) day rescission period; or if the provisions of Contract are otherwise violated by the Contractor, the Owner and the City may issue to the Contractor, via certified mail, return receipt requested, a letter terminating the Contractor’s rights under this Contract. Thereafter, the Owner and the City may proceed to have the Project completed. Contractor shall be paid for all work completed up to the date of termination, subject to Sections 15 and 23 herein. A termination of this Contract for the above reasons may cause the Contractor to be ineligible to perform work in all PDD programs for a minimum of one (1) year or could result in permanent suspension, in the sole discretion of the City. The Owner and PDD shall have the right to pursue any and all remedies available at law or equity as a consequence of such breach.

21. Compensation: The Owner agrees to compensate the Contractor in the amount set forth in Section 2 above for the services and materials to be provided herein, or such lesser amount as is actually earned by the Contractor once the work is approved by a Rehabilitation Specialist.

22. Payment of Contract: Conditioned upon the Contractor’s strict adherence to Section 29 herein and subject to the provisions of Section 21 herein, the Owner shall cause Contractor to be paid the Contract price after the Project is satisfactorily completed according to the approved specifications and Contractor Performance Standards and the Contractor delivers to PDD the required Certificates of Acceptance from the Detroit Buildings and Safety Engineering Department and all required environmental Clearances. All final Certificates of Acceptance must be included with the request for payment. Any payment due to the Contractor will be paid after PDD accepts an approved Contractor’s invoice and has received: (i) a sworn statement and all required waivers of lien or releases from the Contractor, all subcontractors, laborers and material suppliers; (ii) a signed Owner Statement of Satisfaction and Authorization to Pay; (iii) All final Certificates of Acceptance; (iv) a signed Certificate of Completion (6245) by the assigned Rehabilitation Specialist; (v) All Environmental Clearance documents; (vi) a completed Contractor/Subcontractor Award Form, and all other required documents as determined by PDD

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23. Prohibition Against Kickbacks: The Contractor warrants and represents that neither it nor any of its officers, members, partners, owners, agents, representatives, employees, or parties in interest has in any way colluded, conspired, connived or agreed, directly or indirectly with any other bidder, firm, or person to submit a collusive or sham bid in connection with the project for which the Contractor’s bid has been submitted, or to refrain from bidding on such project, nor has it in any other manner, directly or indirectly, sought by agreement or collusion, or communication or conference with any other bidder, firm, or person to fix any overhead, profit or cost element of the bid price, to make any other unlawful agreement, or to secure any advantage against the City or any person interested in the proposed Contract. The price or prices quoted in the bid of the Contractor are not tainted by any collusion, conspiracy, connivance or unlawful agreement on the part of the bidder or any of its agents, representatives, owners, employees, or parties in interest, including the undersigned.

24. No Interest of Public Officials: The parties hereto have no knowledge of any member, officer, legislator, employee of the City of Detroit or PDD or any public official of any other locality, who has the authority to make decisions regarding this project, has any direct or indirect interest in this Contract or any subcontract or the proceeds thereof for work to be performed on the project.

25. Payment and Performance Bond: If the total cost of this Contract exceeds $100,000, the Contractor shall purchase and deliver to PDD 100% payment and performance bonds, naming PDD and the Owner as the beneficiaries thereof, for the work described herein.

26. Death of Owner: If Owner dies or is otherwise incapacitated, either PDD or the Contractor shall have the right to terminate this Contract, unless a legal representative of the Owner’s estate is duly appointed within sixty (60) days of Owner's death or incapacity. Upon such termination, the Contractor shall be entitled to payment for all work completed and approved by PDD, in accordance with the procedure for payment set forth herein. If a legal representative is duly and timely appointed and said legal representative identifies, within thirty (30) days of his or her appointment, an income-qualified heir to the property approved by PDD for funding, in PDD's sole discretion, said legal representative may continue this Contract for the benefit of said income-qualified heir. In the event the legal representative fails to identify an income-qualified heir within the time limit stated above, this Contract shall automatically terminate, and PDD shall pay all amounts owed to the Contractor, in accordance herewith.

27. Owner Misconduct: If the Owner, or anyone related to or associated with the Owner, engages in conduct, the effect of which is to prevent or unduly interfere with the Contractor’s performance of the work required hereunder, and/or is causing or has intentionally caused the destruction of work that has been completed, PDD may immediate termination this Contract.

Further, if in the event the Contractor submit evidence of the Owner’s alleged misconduct and request PDD to conduct an inquiry into the same. Within fifteen (15) business days of such submission, PDD shall notify the Contractor and the Owner, in writing, of the results of its inquiry. If PDD determines, in its sole discretion, that the Owner has violated the provisions of this paragraph, the Contractor may terminate this Contract upon giving ten (10) days written notice to PDD and the Owner. Upon such termination, the Contractor shall be compensated for all work completed on the Project and approved by PDD in accordance with the terms of this Contract. If PDD determines that the Owner’s conduct is not in violation hereof, any subsequent termination by the Contractor on the basis of the Owner’s misconduct shall be deemed a violation of this contract.

Failure of PDD to render a decision within fifteen (15) days after receipt of the Contractor’s request for an inquiry shall be deemed a determination that the Owner is guilty of the alleged misconduct.

28. Lead-Based Paint Requirements: The Contractor shall comply with and cause its subcontractors to comply with all applicable provisions of the Lead-Based Paint Poisoning Prevention Act of 1971, the Housing and Community Development Act of 1992, including but not limited to, Sections 1012 and 1013 of Title X thereof, being the Residential Lead-Based Paint Hazard Reduction Act of 1992, and all regulations promulgated by the HUD pursuant thereto, particularly the regulations appearing in title 24 of the Code of Federal Regulations as part 35 (24CFR35), entitled Requirements for Notification, Evaluation and Reduction of Lead-Based Paint Hazards in Federally Owned Residential Property and Housing Receiving Federal Assistance. The Contractor shall cooperate with the City in all respects to insure that the Project is being carried out in compliance with the foregoing requirements and with all other applicable OSHA, EPA and HUD requirements.

29. This Contract includes the following Exhibits which are made a part hereof:

A. Specifications and Itemized Cost breakdown B. Section 3 Clause

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C. Construction Schedule or Specifications & Award Acceptance Document

30. Subject to conditions of termination of contract, a breach of any of the terms or conditions of this Contract or of the attachments hereto, shall be a termination hereunder giving either party, or PDD, as the third party beneficiary, the right to terminate the Contract and/or the right to pursue any and all other remedies at law or in equity.

IN WITNESS HEREOF the parties hereto on the date first above written duly executed this Contract.

WITNESS OWNER

________________________________ BY: ________________________________

CONTRACTOR

________________________________ ITS: ________________________________