Scope of Work & Additional Work
TSP Contracting agrees to perform the scope of work referenced on Work Authorization; owner agrees that any supplements or additions to work may be accomplished verbally or with written change order. Supplemental work includes betterment, owner selected changes, and/or enforcement of code or ordinances by municipality or building department.
Lump Sum Contract & Pricing
An estimate will be written to define the scope and pricing, if not based on time, equipment & materials. A copy of the same is available upon request. The estimated value for each line item multiplied by 40% for the replacement will equal the material cost of that item. If owner reduces the overall scope of work, overhead and profit originally calculated will still apply to the overall price. TSP Contracting at its option may utilize engineering to complete the same work in a more efficient manner or in order to achieve a savings to TSP Contracting.
Work Quality
All work involving restoration and/or repairs is for the damaged work only and for like kind & quality craftmanship and does not cover unaffected areas and does not cover restoring existing deficiencies. Estimate presumes original walls, floors and framing are plumb, square and straight. Construction does not result in “Perfect Finishes” such as found in manufacturing under a controlled environment. Our work will confirm to existing qualities. All construction debris will be removed from project and areas left in a swept and/or shop vacuumed quality cleaned conditions.
Contract Time
Time is the essence to this agreement and contractor will diligently pursue substantial completion of the work, but will not be held liable for delays due to deliveries, weather, owner or insurance carrier, scheduling or trade issues, property access or any other conditions beyond contractor’s control. Owner agrees harmless contractor for any delays to work. Owner further agrees not to cause delays to project for any reason and to provide clear and continuous access to the work site from 7:00 am – 5:30 pm unless otherwise noted. TSP Contracting may at their option place a “LOCK BOX” at the property and assumes no responsibility for unauthorized entry. Owner agrees to provide electricity, heat, water, and sanitary facilities. Substantial completion is the date when the property can be occupied for its intended use, not when the work is 100% satisfactory. Customer agrees to sign Certificate of Satisfaction upon project completion.
Invoice & Payment Method
If the insurance company does not pay TSP Contracting directly, Owner agrees to make payment to TSP Contracting for the Work, whether or not such Work is covered by insurance. TSP Contracting may invoice work for parts of work complete. Owner shall pay TSP Contracting the amount of each invoice no later than ten (10) days following Owner’s receipt of the invoice. Interest shall accrue on payments not received within such time at the lesser of (i) the maximum lawful interest rate or (ii) one and one-half percent (1 1⁄2%) per month. Any remaining balance of the Contract Price after the above payments are made shall be paid no later than ten (10) days following completion of the Work. At the completion of Final Walk Through, owner must pay TSP Contracting for all sums less correction items on list. Items addressed after Final Walk Through will be placed on a warranty list and will not be subject to subtractions from final payments subject to limited warranty below.
Limited Warranty
Conditioned upon payment in full of all amounts due TSP Contracting, TSP Contracting warrants that the Work will be free from defects for a period of one year from the first day the Work is occupied or is ready to be occupied (whichever occurs first) by Owner and shall assign to Owner all applicable warranties of manufactures, supplies or others. TSP Contracting’s warranty is limited to repair or replacement, at TSP Contracting’s option, of the defective work and specifically excludes any equipment or materials covered by manufacturer’s, suppliers’ or others’ warranties, and also specifically excludes incidental or consequential damages. This warranty specifically excludes cracking, etc. of any concrete, drywall, plaster, caulking, sealant, tile, granite countertops or any other product subject to movement of any kind. This warranty also excludes any loss caused by or consisting of any mold or microbial growth whether or not caused by TSP Contracting or their subcontractors or suppliers. Owner further agrees to hold TSP Contracting harmless from all claims for personal, professional, or property damage related to mold, microbial growth, fungi, mildew. Except as provided herein, there are no other expressed or implied warranties.
Certain Owner Obligations
Owner shall make customer selections within TSP Contracting deadlines or pay additional overhead fees to TSP Contracting and agrees to utilize the design center of contractor’s choice to do so. If owner fails to make timely selections, TSP Contracting can make selections on behalf of owner with standard items. Owner agrees to allow TSP Contracting to communicate with insurance company in order to facilitate the processing and payment of the claim. Owner agrees to quickly facilitate the processing and payment of the claim. Owner agrees to quickly facilitate the signing of any proof of loss and/or mortgage company inspections and or/endorsements to claim payments. Owner waives any right of recovery or subrogation against TSP Contracting to the extent of the Owner’s insurance company. Owner shall provide and maintain Property, Building, Personal Property, Builders Risk. “All Risk” and Premises Liability Insurance covering the Work, including all materials ands supplies on site but not yet installed. Owner agrees to make claim for defects in construction.
Hazardous or Other Conditions
TSP Contracting may halt the work upon any finding of hazardous substances or unsafe conditions. TSP Contracting will notify the owner upon the discovery of any such items. Owner must notify TSP Contracting of any known hazardous items at the site including; asbestos, chemicals, lead, or other and owner shall indemnify and hold harmless TSP Contracting form and against any and all claims arising from or related to the Conditions, and TSP Contracting shall be entitled to payment from Owner for all costs, expenses and damages, including reasonable attorneys’ fees and expenses, it incurs as a result of the Conditions. If conditions cause delay to project for more than 1 week, TSP Contracting may terminate this agreement. While TSP Contracting performs work related to and including the removal of mold and mold spores, owner agrees to hold TSP Contracting harmless from any and all claims for physical, personal, and/or mental damages related to or consisting of mold or microbial growth of any sort or manner.
Default
If Owner defaults in any of its obligation hereunder, Project X may, at its option, in addition to other remedies provided in this Contract or pursuant to applicable law or principles of equity, pursue one or more of the following remedies; suspend some or all of the Work until all defaults have been cured, upon three (3) days written notice to Owner, terminate some or all of TSP Contracting’s obligations under this Contract, and/or recover all amounts due under this Contract plus all expenses and reasonable attorneys’ fees and expenses incurred by TSP Contracting as a result of Owners’ breach of TSP Contracting’s enforcement of this Contract. In the event this Contract or TSP Contracting’s obligations are terminated by TSP Contracting pursuant to the terms of this Contract, TSP Contracting shall be paid for all Work performed through the date of termination in an amount that will compensate TSP Contracting for all costs incurred, plus thirty percent of those costs. TSP Contracting retains the right to file a Mechanics Lien for services rendered and hereby notifies owner that TSP Contracting will file said liens for protect TSP Contracting’s interest in the subject property. In such event, owner shall pay all interest charges and filing fees for the lien. Owner shall also pay TSP Contracting liquated damages of $100.00 for each owner delay.
Dispute Resolution
Any Controversy or claim arising out of relating to this Contract or work performed pursuant thereto shall be resolved by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association, and judgement upon the award may be entered in any court having jurisdiction. TSP Contracting shall be entitled to all reasonable attorneys’ fees and other legal associated costs. The Arbitration shall be conducted by the American Arbitration Association. Owner agrees not to libel or slander contractor for any reason whatsoever and that in doing so to any source, agrees to indemnify contractor to an amount equal to $5,000.00 unless it is proven that such libel & slander did not cause any damages. Owner and TSP Contracting further waive their right to trial by jury and can claims for consequential or punitive damages against each other.