SUB-CONTRACT AGREEMENT FOR THE CONSTRUCTION
This agreement seeks to obtain the best possible work for the owner, _______________, (Owner) by obtaining design and construction work from the craftsman, to re-establish an old world attitude of quality toward the work, and to provide flexibility for both on and off site design decisions by CES in association with the Sub-Contractor.
This agreement is made on this _____ day of _______________, 20___, between THE CENTER FOR ENVIRONMENTAL STRUCTURE (hereinafter called CES) acting as Management Contractor on behalf of the Owner, and the Sub-Contractor working as a craftsman hereinafter called CRAFTSMAN).
JOB DESCRIPTION ________________________
(Fuller details of the job description are given at the end of this Agreement)
This Agreement consists of:
• Part 1 - General Conditions
• Part 2 - Rules governing evolution of the work
• Part 3 - Special conditions
• Sub-Contractor's proposals
• Job Description
ARTICLE 1. PURPOSE
The purpose of the work is to build a building under conditions which permit craft, care, love of the building, love of work, and the life of the emerging building, to be created to the maximum extent possible. The nature of this subcontract is designed to make this possible, while protecting the interests of Owner, CES and Craftsman.
ARTICLE 2. DEFINITION OF THE WORK
The Craftsman will perform the work defined in the job description attached to this contract, and signed and dated by the parties. It is agreed that this work is defined and modified by the conditions of part 2, articles 7-11.
ARTICLE 3. PRICE AND PAYMENT SCHEDULE.
For performing the work specified in article 2, the craftsman will be paid a total price of £ ___________ (excluding VAT).
80% of the price will be paid to the Craftsman as progress payments based on work completed expressed as a percentage of total, as approved by CES.
15% of the price will be paid to the Craftsman at substantial completion that is, after completion of all the Craftsman's work, and after written acceptance by CES that the work is satisfactory and complete.
The final 5% of the price will be paid to the Craftsman after final completion of the construction contract, and after the defect and deficiency list of items has been satisfactorily completed and the construction contract is accepted by the Owner in writing.
ARTICLE 4. CRAFTSMAN RESPONSIBILITIES
The Craftsman is responsible for:
1) Ensuring compliance with applicable codes.
2) Adhering unequivocally to the price set forth in this contract.
3) Following good construction practice.
4) Providing employer’s liability and public liability insurance in the sum of £1,000,000.
5) Providing the Owner with a complete package of work as given in article 5.
6) All penetration of building components shall be neat, sleeved, and fire-stopped and shall not compromise structural integrity or watertightness of the structure.
7} Craftsman will clean up all dirt, blemishes and rubbish generated by his work, and take away, leaving the site clean of his work.
8) Craftsman will come back to repair or modify any items not adequately completed, at the direction of CES when the final ? and deficiency list is agreed between CES and Owner.
ARTICLE 5. CRAFTSMAN'S GOAL
The ultimate purpose of this agreement is to secure the Craftsman's work under conditions which make the Craftsman's work a work of beauty and pride and self-respect, and in which the Craftsman leaves behind work he is proud of, and can cherish in the future.
It is specifically understood that the Craftsman's goal is not only to be paid for his work, but that the beauty and satisfaction of the work itself provide part of the craftsman's reward. To this end, the Craftsman shall be treated as an artist who has some power and control over his work as necessary to allow the creation of a beautiful and fitting thing within limits accepted by CES.
ARTICLE 6. GUARANTEE.
Craftsman warranties his work for a period of 6 months and will repair or replace any item found defective within the warranty period.
RULES GOVERNING EVOLUTION OF THE WORK
ARTICLE 7. BASIC RULE
An essential condition governing this contract, is that the price remains fixed, and that changes made by CES, or by the Craftsman, are always made while keeping the price fixed.
ARTICLE 8. CRAFTSMAN'S OWN TIME FOR BEAUTIFUL EXTRAS
It is explicitly present in this agreement that in performance of article 5 (part 1), the Craftsman will spend some time over and beyond the call of duty, to make a few very nice details. The Craftsman will choose the time, location and nature of these details, and will do them with the intent to make a good job of the project. These details should be checked with the CES manager before performance.
As part of the performance of this contract the craftsman will provide _____ crew-days of labour and a __________ materials allowance to undertake any extras directed by CES. A crew is ________________________________________________. These extras are specifically over and above the performance of the base task defined in the job description, and are intended to provide small extras which will make the job better and more beautiful.
ARTICLE 10. SUBSTITUTIONS.
CES shall have the right to make substitutions within the basic job description, reducing some portion of the work, to pay for an increase in other portions. Substitutions to be negotiated with Craftsman, and not to increase total price of sub-contract.
ARTICLE 11. FLEXIBILITY DURING CONSTRUCTION.
There is an essential base condition to this contract: In order to make the best building possible, it is not always possible to define the work exactly, ahead of time. The use of working drawings as a precise determination of construction responsibility does not allow the proper life to appear in the building, and is specifically eschewed by this agreement. The purpose of this agreement is to give CES and the Craftsman the necessary flexibility during construction, while protecting the Owner in regard to price.
In order to protect the Owner from unacceptable cost overruns, the parties have agreed that the work will be done for a fixed budget, and that the Owner will have the work specified in this subcontract performed for a definite fixed sum.
In order to protect the Craftsman from having to perform more than he can fairly do under the fixed sum contract, the Craftsman has the right to re-arrange the work after negotiation with CES. When CES makes requests not covered or anticipated in the job description, and which clearly costs more, CES and Craftsman will then negotiate to reduce work or material or labour in one portion of the subcontract, to make up for the new needs. The Owner accepts this arrangement as the necessary consequence of a more flexible approach to building, and a fixed price contract. It means that some items may be built to a reduced specification or not built at all.
The essential purpose of this contract, is to produce a fair and balanced solution of this base condition, in a way which is fair to all parties. It must be emphasized that all parties, CES, Owner and Craftsman, have an interest in making sure that this condition is fairly met. The parties agree to this condition and accept it as essential to all performance of the work.
ARTICLE 12. SCHEDULE.
CES will give Craftsman 15 days notice prior to start of job, and Craftsman will commence work on the specified day. Work is to be completed within _____ week/s hereafter.
ARTICLE 13. CHANGES REQUESTED BY CES WHICH REQUIRE ADDITIONAL COMPENSATION
This sub-contract agreement, as written, only covers those items of work defined in the signed job description, or explicitly dealt with under the items of flexibility section (article 11). Items of extra work outside the range of flexibility, which arise as a result of requests made by CES, shall be negotiated and charged separately to the Owner.
ARTICLE 14. UNANTICIPATED WORK CAUSED BY REMODEL CONDITION UNANTICIPATED CONDITIONS OR OWNER'S REQUESTS
Extra work which arises during performance of the job, whether as a result of unforeseen remodel conditions or as a result of requests made by the Owner, shall be negotiated and charged separately to the Owner.
ARTICLE 15. COORDINATION WITH CES REPRESENTATIVE.
Craftsman is directly responsible to CES representative only, and may not act upon requests made by the Owner, unless these are channelled through CES.
Signed _______________________________ Craftsman
Signed _______________________________ for CES
SUB-CONTRACTOR'S PROPOSALS AND BID PRICE
The enclosed documents show our current understanding of the _____________ job for the ____________ project.
The maximum amount allocated for this item is £ ____________. It is imperative that you make a proposal and bid which is less than or equal to this amount. If you cannot meet this budget or better it, you may propose a reduction of scope or change of specifications.
Please submit a detailed proposal and bid for this job on our enclosed subcontract forms. We shall award this contract to the sub-contractor who defines the most attractive proposal. We strongly recommend that you discuss with us, and negotiate in detail, the nature of your proposal, before making your written submission.
COMPLETENESS OF PROPOSAL
This list may not be complete. It is the Craftsman's responsibility to study the base job in detail, and to include in his proposal everything necessary to do a complete job.
The description below gives our current understanding of the particulars for the _________________ job for the _____________________________________ project.
On top of base job, job-price must also include _______ crew-days of labour under CES control, for architectural extras to be defined by CES.
Work to be done between ___________________________.