Subcontractor Requirements

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Insurance

Our insurance requirements are as follows:

· A current Worker's Compensation certificate.

· A current Automobile Liability certificate, the limit must be $1,000,000.

· A current General Liability certificate, the limit must be $1,000,000. For General Liability we MUST have BOTH K-Bar Construction, Inc. and the Owner of the project listed as Additional Insured. A copy of the endorsement is enclosed. The notice of cancellation is to be 30 days. A Primary/Non-Contributory statement on ISO Form B is also needed. ("This insurance is primary as respects to the Additional Insured. Any other insurance available to that person or organization is excess and non-contributing".)

All certificates must be in our office prior to working on the jobsite.

If you have any questions, please call Ruth McBride at (928) 537-1138.

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Payment Application

In order to process payments in a timely manner, K-Bar Construction, Inc. has implemented the following procedures:

· All Requests for Payment must be submitted via "Application for Payment" and received K-Bar Construction no later than 5:00p.m. (MST) on the 25th of the month. Note, work should be projected through the end of the month. Faxed copies are acceptable; however, the original must follow via mail.

· K-Bar Construction pays bills on a 30-day cycle; therefore, payment on approved Applications for Payment will be cut on the 25th of the following month.

· Applications for Payment received by K-Bar Construction after the 25th of the month will be considered to have been submitted in the next accounting period and paid as such.

There are no exceptions.

All Pre-Lien information and Waivers (Unconditional Progress or Finals for both your company and any sub/suppliers) must be received by the 15th of the month prior to release of payment.

No payments will be released without this information.

In order to provide payment in a timely manner for work in which you are contracted to complete and entitled, we do not alter the above procedures. A reminder that as a General Contractor, we are only entitled to payment by the owner for work in which we have been invoiced (invoices in our possession) by the 25th of the month.

K-Bar Construction, Inc. is committed a strong and prosperous relationship with all contractors who provide quality services for our jobs.

If you have any questions, please do not hesitate to contact the Accounts Payable Department for clarification. We look forward to working with you.

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General Conditions

                                                          

A.       SUBCONTRACTOR OBLIGATIONS: 

In connection with the Subcontractors’ performance of the Work under this Agreement, the Subcontractor agrees as follows:  

  1. The Subcontractor shall perform the Work in accordance with and subject to each of the provisions of the prime Contract to the full extent that each such provision is applicable to the work.  Subcontractor expressly agrees that if the Owner/Lessee and/or any Prime Contractor identified in the Subcontract Agreement requires the performance of any act or thing by or imposes any obligation on Contractor in connection with the performance completion of any part of the Work, the Subcontractor hereby also assumes such obligations, and the Subcontractor shall perform the same to the full extent that the Prime Contract requires of the Contractor.  The Contractor shall have the same right and remedies against the Subcontractor with respect to such obligations as the Owner/Lessee, and/or such Prime Contractor, has against the Contractor, with same force and effect as if each and every such obligation, right or remedy were set forth in full herein.
  2. The Subcontractor shall (i) pay for all materials, skill, labor and instrumentalities used, supplied and /or required in connection with performance of the Work and any all other obligations of Subcontractor under this contract, when and as bills or claims therefore become due, (ii) save and protect the premises on which the Work is being performed, the Owner/Lessor, the Prime Contractor (if any) and the Contractor from all claims and mechanics’ lien on account thereof, and (iii) furnish satisfactory evidence to the Contractor, when and if required, that Subcontractor has complied with the above requirements. This provision shall not be construed as a waiver of the right of the Subcontractor to file and enforce a lien claim against the Owner/Lessor in the event of the Contractor’s failure to pay the Subcontractor.
  3. The Subcontractor shall begin the Work contracted hereunder as directed by the Contractor, and shall carry out such Work with speed and dispatch so as not to delay the progress of completion of any other work of the Contractor or any other subcontractor in connection with the job in question. Contractor may charge back to the Subcontractor damages suffered by the Contractor caused by a delay of the Subcontractor in the performance of this contract. The Subcontractor shall clean up after the Subcontractor’s Work, and if this is not done expeditiously after notification by the Contractor, said cleanup may be done by the Contractor, and charged to the account of the Subcontractor. In the event that the Subcontractor delay’s the Contractor, the Subcontractor shall be notified in writing and have forty-eight (48) hours to perform under the terms of this contract, or the contract shall be immediately terminated at the option of the Contractor.
  4. The Subcontractor shall proceed with the work in the sequence directed by the Contractor and abide by the Contractor’s decision as to the allotment of all storage and working space on the project.
  5. No extension of the time for performance of this contract shall be recognized by the Contractor without the written consent of the Contractor.
  6. The Subcontractor shall pay for any expense or damage the Contractor or any other subcontractor may suffer or incur as a result of the Subcontractor’s failure through causes other than those specified in paragraph C (2) hereof to carry out provision or provisions of this Agreement.
  7. Before performing any of the Work, Subcontractor shall obtain and submit the Contractor insurance certificates from Subcontractor’s insurance carriers naming Contractor as an additional insured and indicating coverage with limits of liability as set forth in the Prime Contract; provided, however, that if the  required coverage and/or limits of liability required for such insurance under the Prime Contract are less than the following specified coverage’s and limits of liability, then Subcontractor’s insurance shall, at a minimum be of the following types and in the following minimum coverage amounts:

a.            Workmen’s compensation and occupational disease insurance, including employer’s liability, with minimum coverage of One Hundred Thousand and 00/100 Dollars ($100,000.00);

b.           Comprehensive general liability insurance which shall also cover Subcontractor’s indemnity obligations pursuant to paragraph A (8) hereof, although the existence of such insurance shall in no event limit the liability of Subcontractor under this contract. Limits of liability under such comprehensive general liability insurance shall not be less that One Million and 00/100 Dollar ($1,000,000.00) combined, single limit for each occurrence for bodily injury and property damage liability. The insurance shall include blanket (broad form) contractual liability coverage. If Subcontractor’s work includes blasting, or the grading of land, excavation, burrowing, backfilling, tunneling, drilling, pile driving, cotterdam or cassion work, or includes moving, shoring, underpinning, raising or demolition of any building or structure or removal or rebuilding of any structural support thereof, the comprehensive general liability insurance described herein shall not exclude injury to or destruction of property arising out of or caused by such work. Subcontractor’s comprehensive general liability insurance shall include the Owner/Lessee, the Architect, the Contractor and all others required under the Prime Contract and/or related documents as additional insureds and must provide premises operations coverage, and elevator, independent contractor’s broad form property damage, and contractual liability product and completed operation’s coverage, which shall be maintained in force for a period of five (5) years after completion of the project or for such longer period of time as is required under the Prime Contract and/or any other related contract documents, and must be endorsed as primary and non-contributory to any insurance carried by the Owner/Lessee, the Contractor or any other person named as an additional insured under such insurance. Any “XCU” (explosion, collapse or underground) or similar exclusions written in any policy must be deleted when applicable to operations performed by the Subcontractor. A waiver of subrogation in favor of the Contractor shall also be included.

c.            Automobile liability for bodily injury and property damage claims arising out of the ownership, maintenance or use of owned, hired and non-owned vehicles subject to the limits set forth in the Prime Contract but in no event less than One Million and 00/100 Dollars ($1,000,000.00).

d.            All insurance policies shall be issued by reputable insurance companies accepted to Contractor and authorized to do business under the laws of the state in which the Work will be performed. Such insurance policies shall provide that no material change in, or cancellation of, any such insurance shall be effective until after Contractor has been given not less than thirty (30) days’ prior written notice thereof. The insurance certificates provided by Subcontractor shall specifically state that coverage is provided for the indemnification obligations of Subcontractor pursuant to paragraph A (8) hereof, and all indemnity obligation of the Contractor pursuant to Prime Contract when Contractor’s indemnity obligation thereunder results in whole or in part directly from any act or omission of Subcontractor or any agent, employee, subcontractor or other representative of Subcontractor.

e.           In the event Subcontractor fail to obtain and maintain the insurance coverage’s required hereunder, or to provide the certificates of such insurance reference herein, then Contractor, in additional to and not in limitation of any other rights or remedies Contractor may have hereunder or otherwise at law or in equity, may, but shall not be obligated to, take any and all actions Contractor reasonably deems necessary to obtain the necessary coverage’s on Subcontractor’s behalf and charge all costs incurred to Subcontractor. This paragraph 8 shall survive the completion of the Work.

 

8.    The Subcontractor hereby assumes entire responsibility and liability for, and agrees to indemnify the Owner/Lessee, Contractor and their respective officers, agents, employees, partners, shareholders and representatives (collectively, the “ Indemnity Parties”) and hold the Indemnity Parties harmless for, form and against, any and all liability, loss, cost, damage, expense claim or claims and cause(s) of action of any kind or nature whatsoever (including claims due to death or injuries to persons or property), including but not limited to court costs and reasonable attorney’s fees, caused in whole or in part by, resulting in whole or in part from, or otherwise arising directly or indirectly out of, or directly or indirectly related to, this Agreement or Subcontractor’s performance of the Work hereunder. The Subcontractor, on demand, agrees to assume, on behalf of the Indemnified Parties, the defense of any action at law or inequity which may be brought against Contractor or any of the other Indemnified Parties in connection with any of the matters against which Subcontractor has indemnified such Indemnified Parties hereunder, and to pay on behalf of Contractor and all of such other Indemnified Parties in any such action. In the event that any such claims, losses, costs, expenses, liabilities,  damages or injuries arise, or any liability therefore is asserted or threatened against Contractor or any of the other Indemnified Parties. Contractor shall have the right to withhold from any payments due or to become due to the Subcontractor an amount sufficient in Contractor’s judgment to protect and indemnify Contractor and the other Indemnified Parties from and against any and all such claims, losses, costs, expenses, liabilities, damages or injuries, including but not limited to legal fees and disbursements, or contractor, in its discretion, may require Subcontractor to furnish a surety bond satisfactory to Contractor guaranteeing such protection, which bond shall be furnished by the Subcontractor within five (5) days after  written demand has been made therefore

     9.     Subcontractor shall not assign this contract or any rights or interests of Subcontractor hereunder (including without limitations any right to any payment hereunder), or delegate any duty or duties of Subcontractor hereunder, without first obtaining the written consent of the Contractor.

    10.    Subcontractor shall be bound to Contractor by terms of the Prime Contract and all general conditions, special conditions, specifications and addenda which constitute a part thereof; Subcontractor shall conform to and comply with all such drawings and specifications and addenda; Subcontractor shall furnish such shop drawings or samples as may be required; and Subcontractor shall assume toward Contractor all the obligations and responsibilities that the Contractor assumes in and by the aforesaid documents toward the Owner/Lessee, insofar as they are applicable to the portion or portions of the Work to be provided and/or performed by Subcontractor hereunder.

    11.    Subcontractor shall not employ any person whose employment on or in connection with this Agreement and/or the job referenced herein may be objectionable to Contractor, and Subcontractor shall discharge any such person when Contractor makes such objection known to Subcontractor.

    12.    The Subcontractor shall have the right to order in writing the omission or addition of portions of the Work and/or materials in connection therewith, when and as portions of the Work or any such materials may be omitted from or added to the Prime Contract for the project contemplated herein by the architect and/or Owner/Lessee. In any such event, the parties agree that fair and equitable deductions or increases (as applicable) shall be made in the contract price for such omitted or added Work or materials. No extra Work shall be performed or permitted by Subcontractor, nor shall any modification be made by Subcontractor to the Work to be performed by Subcontractor hereunder, without, in each case, the written consent of Contractor given prior to the commencement of any such other or additional Work or the provision to the project of any other or additional materials contemplated in connection therewith.

   13.      Subcontractor hereby warrants to Contractor and the Owner/Lessee that all materials and equipment furnished in connection with the Work to be performed by Subcontractor will be new unless otherwise expressly provided herein, and that all Work (i) will be good quality (ii) will be performed in a good and workmanlike manner, (iii) will be free from faults and defects, and (iv) will conform to the requirements of this Agreement and the applicable plans, drawings and specifications. All Work performed by Subcontractor that Contractor or the Owner/Lessee reasonably deems not to conform to the standards of this paragraph shall be considered defective. Subcontractor’s warranties under this paragraph will continue, and Subcontractor shall guarantee the Work for a period of one (1) year after the date of completion of such Work and final acceptance thereof by Contractor and the Owner/Lessee, unless a longer period for the survival of Contractor’s warranty is called for under the Prime Contract, in which event such longer period shall also apply to Subcontractor’s warranty herein.

   14.       If at any time notification of any claims has been made in connection with labor or materials furnished by Subcontractor or in connection with the Work to be performed by Subcontractor hereunder, or otherwise on account of any action of, or failure to act by, Subcontractor in the performance of Subcontractor’s obligations under this Agreement, Contractor, at Contractor’s option, may, but shall not be obligated to pay such amount or amounts as may be necessary to fully satisfy any such claim or claims and all costs and expenses in connection therewith, which sums shall, at Contractor’s election (i) be immediately reimbursed to Contractor by Subcontractor upon Contractor’s written demand therefore, or (ii) be withheld by Contractor from the amounts which would otherwise be payable to Subcontractor. Any such amounts withheld by Contractor from payments, which would otherwise have been made to Subcontractor hereunder, shall be deemed to have been paid to Subcontractor is satisfaction of Contractor’s obligation herein to pay Subcontractor for the work. Contractor’s right and remedies under this paragraph shall be in addition to and shall not limit any other rights or remedies of the Contractor herein or as provided by law.

   15.      In the event Subcontractor shall fail to correct, replace and/or re-execute faulty or defective work done and/or materials furnished in connection with the Work hereunder, when and as required by Contractor, or shall fail to complete or diligently proceed with the Work under this Agreement within the time provided for herein, or if Contractor or any other subcontractor shall be unable to proceed with its or their portion of the Project of which the Work is part because of any action or inaction by Subcontractor or any of its agents, employees, subcontractors or other representatives, or by any person or labor organization purporting or attempting to represent any agents, employee subcontractor or other representative of Subcontractor, the Contractor, may, but shall not be obligated to, immediately upon notice to Subcontractor of Contractor’s election to do so, (i) correct, replace and/or re-execute such faulty or defective work, or (ii) take over this contract and complete the Work and charge the cost thereof to Subcontractor, together with any damages suffered by Contractor, including but not limited to any damages resulting from any delay in the performance of the Work.

   16.      In the event of any breach of or default under this Agreement by Subcontractor, all material and equipment of Subcontractor shall be left at the site for use by Contractor in completing the Work contemplated herein. Notwithstanding the foregoing, Contractor shall have no obligation to safeguard or otherwise care for Subcontractor’s materials or equipment.

   17.      Subcontractor shall comply with all applicable Federal and State laws, codes and regulations, and all applicable municipal ordinances and regulations effective where the Work as to be performed under this Agreement, and shall pay (i) all costs and expenses connected with such compliance, (ii) all fees and taxes, including without limitation sales taxes, transaction privilege taxes, use taxes and similar taxes of any kind (unless waived in writing by Contractor) and (iii) all taxes imposed by any State or Federal Law for any employment insurance, pensions, old age retirement funds or any similar purpose. Subcontractor shall indemnify and hold harmless the Owner/Lessee, the Contractor, and all other subcontractors from and against any and all liability, loss cost, damage or expense, including but not limited to court costs and reasonable attorneys’ fees, occasioned by the failure of the Subcontractor to comply with the terms of this paragraph.

   18.      Contractor’s equipment shall be available to Subcontractor only at Contractor’s discretion and on mutually satisfactory terms.

   19.      Subcontractor shall pay all royalties and license fees, and at its cost, shall defend all suits or claims for infringement of any patent, copyright or other similar right involved in the Work of the Subcontractor under this Agreement. Subcontracrtor agrees to indemnify the Owner/Lessee, the Contractor and all other subcontractors and hold all such persons harmless from and against any and all liability, loss, cost, damage or expense, including but not limited to court costs and reasonable attorneys’ fees, arising out of or related to any such infringement or claim of infringement.

   20.      Subcontractor shall not discriminate among any persons on the basis of race, color, creed, or national origin.

   21.      Subcontractor shall abide by labor agreements applicable to Contractor insofar as they may apply to workmen employed by Subcontractor.

   22.      In the event the contract herein is based upon a unit price, it is understood and agreed that any quantities and amounts mentioned are approximate only and may be more or less at the same unit price, and subject to final determination based upon final pay quantities as received by the Contractor according to conditions that may be stipulated in the plans and specifications, or upon such quantities and amounts as may be determined by the Contractor.

   23.      In the event of any dispute arising out of this agreement, the dispute shall be resolved by submission to arbitration through the American Association, Phoenix, AZ. for the resolution in accordance with its Construction Rules before one arbitrator only. The Arbitrator shall have the authority to award reasonable attorney’s fees and costs to the prevailing party. The award of the Arbitrator may be confirmed by an application for judgment before the Maricopa County Superior Court or any other court with jurisdiction over the dispute.

   24.      Subcontractor shall pay attorney’s fees incurred by the Contractor in enforcement of the provisions of this Agreement or the collection of damages for its breach.

   25.      Subcontractor is solely responsible for the prevention of accidents on or in the vicinity of its Work, whether or not Contractor has established a safety program for the project. Subcontractor shall establish a safety program implementing safety measures, policy and standards which conform to those required or recommended by any government and quasi-governmental authorities having jurisdiction and by Contractor and the Owner/Lessee and include but are not limited to safety requirements imposed by the contract documents. Subcontractor shall comply with all reasonable recommendation of insurance companies having interests in the project, and shall stop any part of the work, which Contractor deems unsafe until corrective measures satisfactory to Contractor have been taken. Subcontractor shall immediately inform Contractor of any dangerous conditions observed by Subcontractor, whether caused by Subcontractor or caused by others on the project, and shall immediately report to Contractor steps taken by Subcontractor to correct any such condition caused by Subcontractor. Contractors’ failure to stop unsafe practices engaged in by Subcontractor shall not relieve Subcontractor of the responsibility therefore. Subcontractor shall notify Contractor immediately following any accident, and shall promptly confirm the notice in writing and provide Contractor a detailed written report thereof. Subcontractor shall indemnify the Owner/Lessee and Contractor and hold such parties harmless for, from and against any and all liability, loss costs, damages or expense, including but not limited to court costs, reasonable attorney’s fees and any fines, levies or assessments by any governmental or quasi-governmental agency, arising out of or relating to any failure by Subcontractor to comply with any such safety requirements, or Subcontractor’s negligent failure to notice a dangerous or unsafe condition on the job site and promptly take steps to either correct the condition or bring that condition to the attention of Contractor. The indemnification described here incorporates the terms and conditions of the indemnification described in paragraph A (8) above.

  B.    CONTRACTOR OBLIGATIONS:

     The Contractor agrees as follows:

1.        The Contractor hereby employs Subcontractor to do the Work described herein, subject to the terms and provisions set forth herein.

2.        For the full, faithful, and prompt performance of the Subcontractor’s obligations under this Agreement, and the completion of the Work in accordance with the terms of this Agreement, Contractor agrees to pay Subcontractor the Contract Sum described in subcontract agreement hereto. Estimated billings based upon the percentage of the Work actually completed (as determined by any inspection or inspections Contractor reasonably deems necessary), less retainage as set forth above, shall be paid ten(10) days after Contractors receives payment. .Contractor obligation to make any periodic or other payments hereunder shall be conditioned upon the compliance by Subcontractor with the following requirements:

a.        Subcontractor shall have all completed portions of the Work billed in a professional manner, and all invoices for such completed portions of the Work shall be on a form acceptable to Contractor and shall be submitted no late than 25th day of each month.

b.       Subcontractor shall supply Contractor with (i) an unconditional lien release(s) or a joint check agreement from each of Subcontractor’s suppliers, and (ii) Subcontractor’s own conditional lien release with respect to the Work in question.

c.        If applicable, Subcontractor shall supply Contractor with certified payroll reports as required pursuant to the Davis-Bacon Act, showing that all employees have been paid the required wage. A subcontractor that is self-employed and has performed the Work personally must complete the proper form with respect thereto.

d.       Subcontractor shall have supplied Contractor with Subcontractor’s Federal Employer Identification Number or Social Security Number, as applicable, and Subcontractor’s State Contractor’s License Number.

e.        Subcontractor shall have supplied Contractor with all insurance certificates required under paragraph A (7) hereof.

f.         If applicable, Subcontractor shall have obtained and provided to Contractor performance and payment bonds with sureties and in a form acceptable to Contractor.                                                                                                                                                                

In order to receive retention amounts at such time as the project of which the Work is part has been completed and approved and final payment has been received by Contractor, Subcontractor shall have satisfied the following additional conditions:

a.        Subcontractor shall have completed all punch list items, and all the completion thereof by Subcontractor shall have been approved by Contractor.

b.       Subcontractor shall have provided warranty materials acceptable to Contractor and supplied Contractor with all applicable owner’s manuals, instructions and the like.

c.        Subcontractor shall have properly invoiced Contractor for all retention amounts on forms acceptable to Contractor. Retention payments will not be processed unless and until Contractor has received an invoice therefore.

3.    Contractor shall include in all periodic estimates to the Owner/Lessee the value of all work, labor, and materials of the Subcontractor incorporated into the project covered by this Agreement for which estimates have been furnished by the Subcontractor and approved by the Contractor, and shall pay Subcontractor the amount received by Contractor on account of Subcontractor’s work to extent of Subcontractor’s interest therein:

4.        Except in cases in which Contractor’s failure to pay is excused as a result of any breach of, or default under, this Agreement by Subcontractor, Contractor’s failure to pay Subcontractor any sums to which Subcontractor is entitled under this Agreement, when and as such sums are due, shall, in addition to and not in limitation of any other right of Subcontractor herein, cause Subcontractor to become entitled to (i) suspend all work and shipments during the continuance of such default on the part of the Contractor and (ii) an extension of the time for performance of the Work hereunder for a period equal to the period of such suspension. Subcontractor acknowledges, however, that Contractor may withhold payment if there is a breach of or default under this Agreement by Subcontractor or if Subcontractor shall fail to pay for any material and/or labor.

  

C.        OTHER AGREEMENTS:

                 In addition to the agreements set forth herein, Contractor and Subcontractor agree as follows:                

1.        For purposes of this Agreement, the following terms shall have the following definitions:

1.1     “Contract Sum” means the fixed maximum sum payable to Subcontractor for the Work, as set forth on the FRONT page of this Subcontract agreement.

1.2     “Contract Time” means the time for performance of the Subcontractor’s Work hereunder, which shall in no event be completed later than the completion date set forth in the project schedule.

1.3     “Prime Contract” means the contract for constriction by contractor of all or part of the construction project referenced herein, which contract has been entered into between Contractor and the Owner/Lessee, or, if Contractor is acting as a subcontractor for any other contractor.

1.4     “Prime Contractor” shall, in a case in which Contractor is acting as subcontractor for any other contractor which has entered into a contract for the construction of all or any part of the construction project referenced herein, means such other contractor with whom Contractor has entered into any such subcontract agreement.

2.        If either Contractor or Subcontractor is delayed in the performance of any of its duties hereunder as a result of by changes ordered in the work, or by labor disputes, fire, unusual delay in transportation, adverse weather conditions which could not reasonably have been anticipated, unavoidable casualties, or any other similar causes not reasonably in the control of the party who has been so delayed, then the Contract Time shall be extended by the duration of the delay actually and approximately caused thereby.

3.        This Agreement constitutes the entire agreement among the parties and supersedes all prior and contemporaneous agreements and understandings of the parties with respect to the subject matter hereof. No supplement, modification or amendment of this Agreement shall be binding and enforceable unless executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver, and no waiver shall be binding unless executed in writing by the party making the waiver.

4.        This Agreement shall be binding upon, inure to the benefit of, and be enforced by and against the respective heirs, executors, administrators, personal representatives, successors and permitted assigns of any parties to this Agreement.

5.       Capitalized terms defined in this Agreement hereto, and not otherwise defined herein shall have the meanings for such terms set forth in the agreement, which incorporated herein as fully as though the terms thereof were set forth in their entirely herein.

 

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