HW6 Standard Terms and Conditions
Design-Build Subcontract Agreement Overview
1. Contract Documents
Contract Documents are available for Subcontractor's examination.
In case of conflict, the Agreement governs over other Contract Documents.
Subcontractor is bound to Mortenson under the Agreement concerning all aspects of Work.
Subcontractor must thoroughly examine the Contract Documents and site conditions before entering the Agreement.
2. Scope of Work
Subcontractor is responsible for all Work outlined in the Agreement and must perform it satisfactorily.
3. Subcontract Price
Mortenson will pay the agreed fixed Subcontract Price to Subcontractor for satisfactory performance.
Changes to this price are allowed only as per provisions in the Agreement.
4. Taxes and Contributions
Subcontractor is liable for all taxes related to the Work including payroll, sales, and other applicable taxes.
5. Laws and Permits
Subcontractor is not required to obtain the primary building permit unless specified.
All other required permits, licenses, and fees for the Work are Subcontractor's responsibility.
Work must comply with applicable laws, codes, regulations, and requirements.
6. Time of Completion
6.1 Timely Work Initiation
Work begins after notification from Mortenson or when the Project is ready.
6.2 Schedule Compliance
Work must be completed according to the construction schedule provided by Mortenson.
6.3 Delays
If delays are due to causes beyond the Subcontractor's control, extensions may be granted subject to prior written claims.
7. Payments
7.1 Payment Conditions
No payments are made until Mortenson receives a fully executed Agreement and necessary insurance and bonds.
7.2 Schedule of Values
Subcontractor must submit a schedule of values before the first payment application.
This schedule serves as a basis for payment calculations.
7.3 Monthly Payment Applications
Applications for payment are due on the 25th of each month, calculated based on work performed with specific deductions for retainage.
Supporting documentation must be provided for verification of work and quantities.
7.4 Timely Payments
Monthly progress payments will be made within seven days of Mortenson receiving payment from the Owner, considering no defaults by Subcontractor.
7.5 Title of Work
Subcontractor guarantees that title to all work and materials will pass to the Owner upon payment.
7.6 Final Payment
Final payments occur after Work completion and acceptance, contingent upon no outstanding claims or liens.
8. Prosecution of Work
8.1 Efficient Work Practices
Subcontractor must perform Work diligently and without delays, enabling the general progress of the project.
8.2 Damage Responsibilities
Subcontractor is liable for any damages resulting from delays caused by their actions.
8.3 Material Orders
Timely orders are required to prevent delays, with documentation submitted as necessary.
8.4 Access to Site
Mortenson controls access and delivery timing at the site.
8.5 Cleanup Requirements
Cleanup must occur daily; failure may result in Mortenson hiring a third party at Subcontractor's expense.
8.6 Protection of Work
Subcontractor is responsible for protecting materials and equipment during the project.
8.7 As-Built Drawings
As-built conditions must be recorded weekly if required.
8.8 Layout and Control Points
Subcontractor handles layout and control after initial points set by Mortenson, maintaining accuracy.
8.9 Submission of Documents
Required documentation related to design must be submitted in the specified form to Mortenson.
8.10 Dependency on Other Work
Subcontractors must assess dependencies and report unsuitable conditions.
8.11 Integration Responsibilities
Subcontractor is responsible for all aspects and integration of work components.
8.12 Equipment Substitutions
Substitutions of materials require Mortenson's prior written approval.
8.13 Appointed Representatives
A superintendent and project manager must be appointed to oversee Work and represent Subcontractor.
8.14 Work Records
Timely and accurate records must be maintained and submitted daily.
9. Labor Practices
Subcontractor must avoid labor disruptions and comply with applicable labor agreements.
10. Tools and Equipment
Subcontractor provides all necessary tools; Mortenson’s tools are available at discretion. Subcontractor assumes responsibility for all associated damages.
11. Safety Measures
Compliance with safety regulations is mandatory; Subcontractor is responsible for its safety program and employee protection, aiming for zero accidents.
11.2 Reimbursement for Safety Incidents
Subcontractor must reimburse Mortenson for costs due to safety violations.
12. Changes to Work
Mortenson may order changes through written directives, with procedures outlined for adjusting costs and proposals for changes.
13. Inspection Rights
Mortenson and Owner may inspect work as needed, with inspections not precluding Subcontractor’s responsibility for quality.
14. Performance Issues
Subcontractor's default triggers Mortenson’s rights to complete work or terminate the agreement.
15. Termination Rights
Mortenson can terminate for convenience, with conditions outlined for Subcontractor’s obligations.
16. Insurance Requirements
16.1 Overall Insurance Responsibilities
Subcontractor must maintain various forms of required insurance, ensuring compliance with limits stated in the Agreement.
16.2 Specific Coverage Requirements
Minimum coverages required include Workers' Compensation, General Liability, and Professional Errors & Omissions.
17. Indemnity
Additional specifics on indemnity obligations are referenced and detailed in the attached agreement.
18. Bonds
Subcontractor is required to provide performance and payment bonds covering the project and its commitments.
19. Patent Infringement Responsibilities
Subcontractor responsible for royalties and defending against patent claims.
20. Warranty Obligations
Subcontractor warrants that work complies with agreements and outlines correction responsibilities.
21. Dispute Resolution
Disputes may be resolved through arbitration or other administrative processes specified in the Contract Documents.
22. Assignment and Subcontracting
Assignments and subcontractor agreements are subject to Mortenson’s written consent; subcontractors are bound to all provisions.
23. Equal Opportunity Commitment
Subcontractor agrees to comply with non-discrimination employment practices as required by law.
24. Assignment upon Owner Termination
Subcontractor consents to assignment of agreements upon Owner’s contract termination conditions outlined.
25. Design Responsibilities
Approval required for any design consultants; Subcontractor is integrally responsible for design quality.
26. Miscellaneous Terms
26.1 Waiver Notice
Any waiver of breach must be in writing and does not extend to future breaches.
26.2 Independent Contractor Status
Subcontractor is an independent contractor, not an agent of Mortenson.
26.3 Terms Validity
If any term is void, other terms remain effective.