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Contracting Agreement Cost Plus Price
-----------------, referred to as Owner, and -------------------, referred to as Contractor, agree as follows:
Contractor shall perform the following services for Owner:
on the following estimated schedule:
on a "cost plus" basis as is defined herein.
Contractor shall be responsible for the following in addition to the workman like performance of the work stated above:
The materials used for the following areas:
shall meet the following respective specifications, or be equivalent to the following manufacturer's product lines described:
Provision of all permits required for the services to be performed above.
Contractor shall at least 7 days prior to commencement of work provide the names and addresses of all sub-contractors intended to be utilized in the construction. At the time of each payment of any portion of the contract price, the Contractor shall provide a lien waiver or certificate of payment for all work performed by each sub-contractor.
Provision of worker's compensation insurance, general liability insurance in a minimum amount of $ ------- (dollars).
Contractor shall be compensated for services herein on a cost plus basis. Cost shall be defined as follows:
(a) the materials, equipment and wages reasonably and necessarily incurred in the construction herein;
(c) actual cost of on site utilities, insurance;
(d) actual costs of sub-contract items.
For purposes of this agreement, "cost" of materials shall be defined as the purchase price for the same, assuming that any discounts for prompt payment were taken.
Contractor shall endeavor to purchase materials for construction at the most favorable prices generally available to those in the trade.
For the purposes of this agreement, "wages" shall include the sums paid to the workers, plus an allowance of 25% for worker's compensation, social security and other benefits. Wages shall not include the salary or draw of the principals of the Contractor, or general clerical and administrative workers.
Unless specifically required by the Owner, Contractor shall not utilize workers at overtime or other premium rates without the prior approval of the Owner. In the event that Contractor is required to do so in order to complete the project in a timely fashion, the Contractor shall only be entitled for reimbursement for the standard wage.
In the event of the return, credit or overage of any materials, the Contractor shall deduct the same from the next (or if there is no other from the retainage) payment period.
In addition to the costs described above, the Contractor shall receive profit and administrative fees, to be calculated as % of the direct costs stated above.
Contractor shall submit on a monthly basis, on the last day of each month, an itemized statement of costs. Owner shall pay % of the expenses plus the cost factor no later than the 10th day of the following month.
Contractor shall provide to Owner, upon Owner's request, an affidavit of "no liens" and payment for all workers, materialmen and sub-contractors prior to each payment.
Contractor shall be paid the retainage on the 10th day of the month after the completion of the work, including punch list items, and final inspection and the issuance of a certificate of occupancy for the structure. Prior to such payment, Contractor shall provide an affidavit of payment of all lienors or those who are entitled to file construction liens of any kind.
The Contractor shall daily remove all trash and debris from the premises.
Any disputes arising out of or related to this agreement shall be arbitrated under the rules of the American Arbitration Association before a single arbiter.
This agreement may be terminated by Owner upon substantial abandonment of the project, defined as at least 3 business days without substantial activity, except delays caused by:
a) bona fide weather disturbances;
c) shortages of material;
d) sub contractor delays not caused by the general contractor;
e) governmental delays except those caused by the fault of contractor or subcontractor; or,
persistent failure of workmanship to meet high quality standards for which adequate assurance of correction is not provided.
In any disputes related to this agreement, the adjudication body may assess reasonable counsel fees to the prevailing party.
This is the entire agreement between the parties and this agreement may only be altered in writing.
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