|
<br />
<br />
<br /> Proposal prepared for City of Lake Elmo
<br />Shop Floor | Lake Elmo, MN
<br />Page 3 of 4
<br />
<br />Terms of Agreement
<br />1. The Work. Contractor agrees to perform, and Owner agrees to accept, the work described per the attached Proposal.
<br />2. Contract Price. Owner agrees to pay to Contractor for the Work in the sum identified in the attached Proposal.
<br />3. Payment Terms. Invoice upon Completion, Due Net 30 Days, No Retainage. At Contractor’s option, monthly
<br />progress invoices for projects exceeding 45 days or that require vendor down payment(s), Due Net 30 Days,
<br />No Retainage. Payment due but unpaid shall bear interest at the legal rate.
<br />4. Insurance. Contractor shall secure and maintain insurance policies and limits per the attached sample
<br />insurance certificate. Owner shall secure, name contractor as additional insured, and maintain policies of
<br />property (builder’s risk) and general liability insurance which include coverage for the Work. The parties waive
<br />all rights against each other and any of their agents and employees for damages caused by the other to the
<br />extent such damages are covered by any of the insurance policies required herein. Prior to the
<br />commencement of the Work, each party shall deliver to the other certificates of insurance evidencing the
<br />existence of the required insurance.
<br />5. Claims for Consequential Damages. The Contractor and Owner waive claims against each other for
<br />consequential damages arising out of or relating to this Contract. This mutual waiver includes damages
<br />incurred by the Owner for rental expenses, for losses of use, income, profit, financing, business and
<br />reputation, and for loss of management or employee productivity or of the services of such persons; and
<br />damages incurred by the Contractor for principal office expenses including the compensation of personnel
<br />stationed there, for losses of financing, business and reputation, and for loss of profit except anticipated profit
<br />arising directly from the Work.
<br />6. Covenant/Completion of the Work. Contractor shall complete the Work per the schedule outlines. If the
<br />progress of the Work is delayed by inclement weather, delays in delivery of materials, acts of God or other
<br />casualties or causes beyond Contractor’s control, then the time to commence and/or complete the Work
<br />herein shall be extended accordingly along with applicable damages, if any.
<br />7. Indemnification. Contractor, shall indemnify and hold harmless the Owner, its agents and employees, from
<br />and against any claims, damages, losses and expenses, arising out of or resulting from the performance of
<br />the Work, but only to the extent caused solely by the negligent acts or omissions of Contractor, its
<br />subcontractors, anyone directly or indirectly employed by Contractor. Owner agrees to indemnify and hold
<br />harmless the Contractor and Design Consultants, and all Subcontractors and Subsubcontractors of
<br />Contractor, harmless from all claims for bodily injury, property damage to the extent that such claims are
<br />caused by a negligent act or omission of the Owner, its subcontractors, anyone directly or indirectly employed
<br />by the Owner and arise from the Owner’s operations under this Agreement.
<br />8. Warranty. The Contractor warrants to the Owner that all materials and equipment furnished under this
<br />Agreement will be new, unless otherwise specified, and that all Work will be of good quality, free from
<br />improper workmanship, and defective materials, and in conformance with the Drawings and Specifications.
<br />The Contractor agrees to correct all Work performed by it under this Agreement which proves to be defective
<br />in material and workmanship within a period of one year from the Date of Substantial Completion. The giving
<br />of the warranty in this Section shall not be construed to limit or modify any other legal rights or remedies of the
<br />Owner, but shall be in addition to such rights and remedies.
<br />9. Permits. Party responsible to obtain and pay for the building permit and any other permits and governmental
<br />fees, licenses and inspections necessary for proper execution and completion of the Work will be per the
<br />attached Proposal.
<br />10. Condition of Site. Owner shall provide Contractor with information regarding the condition of the site prior to
<br />commencement of construction, including surveys, soils reports and information regarding underground
<br />utilities, tanks or other buried equipment or obstructions. Contractor shall not be responsible for damage to
<br />known or not known private underground utilities, tanks or other buried equipment or obstructions not clearly
<br />disclosed to Contractor prior to commencement of the Work.
<br />11. Existing Conditions. When bound by existing conditions for any work consisting of “replacement in kind” the
<br />contractor endeavors to achieve such results with commercially available materials, but does not guarantee
<br />exact replication nor warrant that the replacement will meet current codes.
|