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Home Owner Contract

 
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Old 06-19-2012, 09:56 AM   #1
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Home Owner Contract


I was going to bid this job, and I was handed this gem.....Wow

The guy Homeowner/ Invester would have all the control.

I would never sign this

Look it over and let me know your thoughts.



Quote:

INDEPENDENT CONTRACTOR SERVICES AGREEMENT
(NON-EMPLOYEE COMPENSATION CONTRACT)

This agreement is entered into on this day of , 20 by and between

CONTRACTOR COMPANY ("Contractor") and **************, LLC, a Connecticut limited liability company ("Client") for services to be rendered at X

Contractor will commence work on or before , 20 and will perform same on a daily basis.

Contractor must notify Client on a daily basis in the event that they will not be working on the property. This work shall be completed on or before , 20

Contractor and Client hereby agree to the following:

1. Independent Contractor:

Contractor and Client intend this Agreement to be one of independent contractor and client. Accordingly, Contractor retains the sole right to control or direct the manner in which the services prescribed herein are to be performed. Subject to the foregoing, Client retains the right to inspect, to stop work, to prescribe alterations, and generally to supervise the work to insure its quality and conformity with that specified in this Agreement. Contractor and Client understand that it is the Contractor's sole and complete responsibility to pay all employment taxes, including Federal and State withholding taxes and Social Security, and to obtain insurance, including worker's compensation coverage and public liability insurance and property damage insurance arising out of or relating to this Agreement. Contractor warrants that upon signing of this agreement that Contractor has obtained all stated and necessary insurance and that it will be kept in full force and effect until the completion of the work contracted for herein. Terms of this agreement shall apply to and encompass all services rendered by any/all sub-contractors performing services on behalf of the contractor. To the fullest extent permitted by law, the Contractor shall indemnify and hold harmless the Client, Client’s representatives, agents and employees from all claims, losses, damages and expenses, including attorney’s fees arising out of or resulting from the performance of the work, provided that such claim, loss, damage or expense is caused in whole or in part by any negligent act or omission of the Contractor, anyone directly employed by them or anyone whose acts they are liable for, and attributes to bodily injury, sickness, disease or death, mold growth, or to injury to or destruction of tangible property (other than the work itself) including any resulting loss of use, regardless of whether or not it is caused in part by a party indemnified above.

2. Services Provided:

Contractor agrees to perform the services listed in this contract (as contained in Exhibit "A", attached hereto and made a part hereof by reference) on behalf of the Client. Services must be performed up to satisfactory standards as approved by the Client.

3. Project Cost Estimate:

Pre-construction estimates for construction costs and coordination are Dollars, ($ ) for the services rendered. The Contractor will make every effort possible to keep costs of construction within stated budget and in an event the costs surpass estimates, the Contractor will follow the rules of change orders, stated in this document.

4. Taxes and Building Permits:

The Contractor understands and agrees that he shall be responsible for all taxes, fees and expenses imposed directly or indirectly for its work, labor, material and services required to fulfill this contract. The Contractor is responsible for all permits pertaining to the law, ordinances and regulations where the work is performed. Copies of all permits and approvals shall be submitted to the Client prior to start of work.

5. Inspections:

Contractor is responsible for arranging all building inspections, meeting with the Inspectors, and passing all required building inspections. Contractor will be responsible for the cost of any re-work resulting from a failed inspection.

6. Clean-up:

Contractor will be responsible for cleaning up the job on a daily basis, including all generated construction debris, drink cans, food wrappers, and/or any other trash. If it becomes necessary, the Contractor will be back charged for appropriate clean up by deducting clean up costs from payments. A special emphasis will be put on clean up at the end of each working week to allow for viewings by
7. Client Approval: Client will approve Contractor services on the following basis:

a. The services meet all governing building codes.
b. All required building permit inspections have been completed and passed.

c. All work will be completed up to Client’s standards and subject to Client’s approval

d. The services have been completed including all final punch list items.

8. Invoicing and Payments: See payment schedule as contained in Exhibit "B", attached hereto and made a part hereof by reference. All payments shall be made upon reaching established Benchmarks and Milestones listed in the payment schedule, Exhibit “B”.

9. Change orders: Contractor understands and agrees that no change orders or contract additions will be made unless agreed to in writing by Client. If any additional work is performed and not covered in this contract, the Contractor proceeds at his own risk and expense. No alterations, additions, or small changes can be made in the work or method of the performance, without the written change order signed by the Client and Contractor.

10. Cancellation: Client reserves the right to cancel any of the services in this contract which have not been completed by contractor within the specified time frame. Client also reserves the right to cancel, at any time, any of services in this agreement which have not yet been started by the Contractor. No compensation will be due for tasks not completed.

11. Penalties: Contractor agrees to a reduction in payment, or if any payment has already been made, Contractor agrees to reimburse to Client the sum of $ each week Contractor delays completion beyond ,

20 Completion date shall be adjusted for change orders as agreed between Contractor and Client.

12. Warranty: Contractor warrants all services for one year after completion, If any item develops a problem within one year of completion, Contractor agrees to repair it within three (3) business days of being notified by Client, at no additional expense to Client.

13. Waiver: Failure of Client to insist upon strict compliance of any of the provisions of this agreement shall not constitute a waiver of any violation, nor shall any partial payment outside of the "payment schedule" be deemed as a waiver of any of the Client's rights to strict compliance with any of the terms of this agreement.

14. Address: Contractor herewith provides to Client the true and correct residence address, home phone number, and Federal Employer Identification Number or Social Security Number.

15. Arbitration: In the event of a dispute between the parties to this AGREEMENT, whether or not resulting in litigation, or if any action at law or in equity, including an action for declaratory relief or arbitration, is brought to enforce or interpret the provisions of this AGREEMENT, the prevailing party (as determined by the court, agency or other authority before which such suit or proceeding is commenced) shall, in addition to such other relief as may be awarded, be entitled to recover attorney’s fees, expenses and costs of investigation as actually incurred (including, without limitation, attorneys’ fees, expenses and costs of investigation incurred in appellate proceedings, costs incurred in establishing the right to indemnification, or in any action or participation in, or in connection with, any case or proceeding under Chapter 7, 11 or 13 of the Bankruptcy Code, 11 United States Code Section 101 et seq., or any successor statutes).

16. Time is of the essence of this AGREEMENT.

17. Any rule of construction to the effect that any ambiguity is to be resolved against the drafting parties shall not be applied to the interpretation of this AGREEMENT.
INDEPENDENT CONTRACTOR SERVICES AGREEMENT
(NON-EMPLOYEE COMPENSATION CONTRACT)

18. Entire Agreement: There are no other agreements, promises or understandings between these parties except as specifically set forth herein. This legal and binding Agreement will be construed under Connecticut Law, will not be recorded and if not understood, parties should seek competent legal advice.

19. Special Stipulations: The following stipulations, if in conflict with any of the preceding, shall control:
The Contractor and any/all sub-contractors rendering services on behalf of the contractor waives his/her right to hold the client liable for any and all injuries occurring as a result of services rendered.
IN WITNESS WHEREOF, all of the parties hereto affix their hands and seals.
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Old 06-19-2012, 10:00 AM   #2
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Re: Home Owner Contract


Looks like a generic off the shelf subcontractor agreement to me. Unless I'm missing something.

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Old 06-19-2012, 10:32 AM   #3
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Re: Home Owner Contract


Too many loopholes. The HO will have you doing backwards cartwheels and flips before he decides to pay up.
Pass.
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Old 06-19-2012, 10:38 AM   #4
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Re: Home Owner Contract


Looks like boiler plate stuff to me too.

If you think the job is a good fit for you, mention to the cust that ultimately you don't think this will be the contract that will be in place in its entirety for the job regardless of whom he hires. If he see's that's the case figure a way to re - up with him as you're the guy for the job.

Urge him to call your references - and talk again.

Like we say......
Don't compare prices, compare references
Don't compare contracts, compare references

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Old 06-19-2012, 10:40 AM   #5
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Re: Home Owner Contract


I'd cross off anything to do with backcharges for a messy site, or the penalties for delays.

Most everything else is simply the daily risk that contractors take in written form.

A contract is/should be a 2 way street, so if you have any concerns write them in. If the homeowner is unwilling to bend on your "dealbreakers" then guess what.....
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Old 06-19-2012, 06:47 PM   #6
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Re: Home Owner Contract


If I wanted the job I wouldn't sign that contract. We have one that already meets all State requirements and is a bit more balanced. I don't think that one would hold up in court.

I'd guess that this guy figures he has been burnt before and this is his shield now. I would recommend he review our standard contract, verify our insurance coverage and call our references.

Good Luck
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Old 06-19-2012, 07:59 PM   #7
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Re: Home Owner Contract


One major thing with this is the following clause "This work shall be completed on or before , 20".... That is the same as "time is of the essence" which is supporting an action for breach of contract if the work is not completed on that day ...

You should change that to "The parties agree that time is not of the essence in the completion of the work described in this contract and all parties shall act to complete the work described within a reasonable time table" and have them sign it.

The rest is mambo jumbo, read it and change what you not comfortable with, i.e the permit section, change that the HO will pay for the permit... because you don't know how much it will cost, so you cannot put a price tag on it or just make a note that Permit fee is excluded from the contract.

I don't know how big this job is and the cost involved, but if the job is for a lot of money, show this contract to your lawyer...
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Old 06-19-2012, 08:31 PM   #8
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Re: Home Owner Contract


I got the feeling the HO was burned before playing GC. And that can happen when they dont know enough and know just enough to be dangerous.

I dont like things like this because your never going to get enough cushion money to absorb delays from the HO interference. (which will be daily). And apparently you will be waiting for approval on anything unexpected without pay in which they will then say your the contractor and the unforeseen is par for the course.
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Old 06-19-2012, 09:26 PM   #9
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Re: Home Owner Contract


Buh bye
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Old 06-20-2012, 06:22 AM   #10
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Re: Home Owner Contract


Love the contractor must make repairs within 3 days after being notified...that's funny.
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Old 06-20-2012, 04:50 PM   #11
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Re: Home Owner Contract


I would pass on that one.
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Old 06-20-2012, 05:03 PM   #12
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Re: Home Owner Contract


run run run don't look back or pull your contract out if he don,t sign run like hell
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Old 06-20-2012, 05:12 PM   #13
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Re: Home Owner Contract


I personally wouldn't do it. That screams red flag to me, BIG red flag.
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Old 06-20-2012, 06:39 PM   #14
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Re: Home Owner Contract


sometimes a lot of contracts look the same.... and sometimes there are pitfalls in a contract that can burn you badly and this is just 1 of those contracts.

say for instance he delays approving an extra that is so important for me to finish closing up a wall .....

from what I understand the guy won't budge on the contract.
so I did some digging and check on the contractor and found out that he's involved in several litigations with contractors.

I spoke to 1 today and he's 1 pissed off puppy...... what caught him was that satisfaction level is up to the home owner. and he wants him to knock 1800 bucks or he says take me to court.

I'm walking away from this p o s.

a contract should be fair for both parties not just 1.
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Old 06-20-2012, 06:41 PM   #15
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Re: Home Owner Contract


How did you get with this guy originally ?
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Old 06-20-2012, 06:47 PM   #16
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Re: Home Owner Contract


They must be planning on showing up for dinner (and hopefully calling ahead to let you know).

14. Address: Contractor herewith provides to Client the true and correct residence address, home phone number, and Federal Employer Identification Number or Social Security Number.
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Old 06-20-2012, 06:56 PM   #17
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Re: Home Owner Contract


I'd write up a contract so vile and against the HO that it would almost be illegal. Plop that in front of them and tell them to sign it. Just to see there reaction. And then look them in the eye and tell that that is just what they shove in front of you.
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Old 06-20-2012, 06:57 PM   #18
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Re: Home Owner Contract


Give him one of these and wish him luck.
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Old 06-20-2012, 09:09 PM   #19
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Re: Home Owner Contract


Quote:
Originally Posted by Leo G View Post
I'd write up a contract so vile and against the HO that it would almost be illegal. Plop that in front of them and tell them to sign it. Just to see there reaction. And then look them in the eye and tell that that is just what they shove in front of you.

I like that Leo


Or.....I could change it slightly so it looks like his--- but it favors ME
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Old 06-20-2012, 09:11 PM   #20
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Re: Home Owner Contract


I like Leo's plan

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