These General Conditions of Contract are accepted and agreed upon by, the Contractor, and, the owner(s) of the Project described in the Proposal and Contract for Building and Home Repair.
A. START DATE; COMPLETION DATE. Priority Energy LLC (“Contractor”) shall perform the work and complete it in a timely manner. Time is of the essence of this Contract. Owner acknowledges Contractor may be delayed at any time in the progress of the above described work (“Work”) by changes directed by Owners (“Change Orders”), Owner’s failure to make timely progress payments, fire, adverse weather conditions not reasonably anticipated, unavoidable casualties, or any other causes beyond the Contractor’s control, then the completion date will be extended for a reasonable period of time as the parties may determine by their written agreement.
B. CONTRACTOR’S RESPONSIBILITIES. The Contractor will supervise and be solely responsible for all construction means, methods, techniques, and procedures for the Work only. Unless specifically agreed in writing, the Contractor will provide and pay for all labor, materials, equipment, tools, construction equipment and machinery, transportation and other facilities and services necessary for execution and completion of the Work. If this Contract is a contract for the repair of an existing structure, the Owner will provide water, heat, and utilities necessary to complete the Work. The Contractor warrants that all of the materials used in performing the Work will be new unless otherwise specified and that all Work will be of good quality and in conformance with applicable building codes and laws. Other than as necessary by the subcontractors, the Contractor will obtain and pay for all building permits, licenses, and inspections necessary for completion of the Work. The Contractor will comply with all laws, ordinances, rules, regulations and lawful orders of any public authority having jurisdiction over performance of the Work. The Contractor will keep the Project free from the accumulation of waste and rubbish caused by the Work and, upon completion of the Work, will remove all its waste material from the Project as well as all of its tools, equipment and surplus materials.
C. SUBCONTRACTORS. The Owner shave have sole and absolute discretion as to who it hires for additional Subcontracted Work or Ancillary Work (a subcontractor is defined to be any person or entity who has a direct contract with and authority from the Owner or Contractor to perform any portion of the Work), and shall be solely responsible for the conduct and performance of such subcontractors.
D. QUALITY OF WORK. The Contractor will complete the Work according to the plans, specifications, and other documents that comprise this Contract or in the absence thereof, in a good and workmen like manner. Upon substantial completion of the Work all Work that in the Owner’s reasonable opinion is not yet complete or which fails to meet Contract requirements will be specified in a punch list executed by the Owner and the Contractor and will be promptly corrected by the Contractor, and all costs or damages to other portions of the Project resulting from such defective work or correction thereof will be paid by the Contractor. If the Contractor does not make such corrections to the Work, the Owner may do so at the expense and for the account of the Contractor up to the total costs of the Contract above (“Contract Amount”) performed by Owner and set forth above. The Contractor warrants that the Work will be free from defects in materials and workmanship for a period of one year from the date of final payment under this Contract. The Contractor will obtain for the Owner’s benefit, and assign to Owner, all manufacturer’s warranties applicable to materials or equipment installed by the Contractor or any of its subcontractors. This warranty does not limit the Contractor’s liability at law for defects in the Work.
E. MECHANICS’ LIENS. The Contractor will timely pay all material suppliers for their respective performance of any of the Work so as to prevent mechanics’ or materialmens’ liens from being filed against the real property where the work is being performed (“Project”). The Contractor will indemnify, defend, and hold harmless the Owner for any such liens that are filed against the Project (provided the Owner is not in default in the payment of any amounts due to the Contractor hereunder) and this indemnity will survive termination of this Contract.
F. INDEMNIFICATION; PROTECTION OF PROPERTY AND PERSONS. The Contractor will indemnify, defend and hold harmless the Owner from and against all claims, damages, losses and expenses, including but not limited to reasonable attorneys’ fees (1) for bodily injury, sickness, disease or death or to injury to or destruction of tangible property (other than the Work itself) including the loss of use resulting therefrom arising out of or resulting from any negligent act or omission of the Contractor, anyone directly employed by the Contractor, regardless of whether or not such claim, loss or expense is caused in part by a party indemnified hereunder, or (2) arising out of or relating to injury to any employee of the Contractor, any material supplier of Contractor’s, or any of their respective employees of Contractor, which occurs as a result of, or is in any manner related to execution of the Work or which occurs or results from the use by the Contractor or suppliers or any of their respective employees of materials, equipment, instrumentalities or other property in connection with the Work, regardless of the owner thereof and all regardless of whether the Owner may be liable or claimed to be liable for the same. The Contractor will reimburse the Owner for all costs and disbursements, including reasonable attorneys’ fees paid or incurred to enforce the provisions of this paragraph. The Contractor furthermore agrees to obtain, maintain, and pay for such general liability coverage and endorsements as will ensure the provisions of this paragraph.
G. INSURANCE. The Contractor has, and will continue to maintain, insurance coverage sufficient to protect the Contractor from the claims of workers under the Workers’ Compensation Act and other employee benefit acts for damages because of bodily injury, including death, and from claims for damages, other than to the Work itself, to property which may arise out of or result from the Contractor’s work under this Contract, whether such operations are conducted by itself or anyone directly employed by the Contractor. The Contractor shall obtain and maintain liability insurance sufficient to protect the Owner against claims that arise from any operations under this Contract, which, upon request of Owner, such insurance policy will name the Owner as an additional insured.
H. DEFAULTS. If the Owner fails to make any required payment for a period of 30 days after it is due, the Contractor may, upon 2 additional days’ written notice to the Owner, terminate this Contract and recover from the Owner payment for all Work performed and for all materials furnished to the Project and for use of all construction equipment and machinery in the performance of the Work, including reasonable profit and damages applicable to the Work. If the Contractor (1) is judged to be bankrupt or insolvent, (2) makes a general assignment for the benefit of its creditors, or if a trustee or receiver is appointed for the Contractor or for any of its property, (3) fails to supply sufficient skilled workers or suitable materials or equipment for the Project, (4) knowingly disregards laws, ordinances, rules, regulations or orders of any public body or public official having jurisdiction, or (5) otherwise violates any provision of this Contract, the Owner may, without prejudice to any other right or remedy the Owner may have by law, and after giving the Contractor 7 days’ prior written notice, terminate the services of the Contractor, take possession of the Project and all materials thereon, and finish the Work by whatever method the Owner may deem expedient. In such case, the Contractor will not be entitled to receive any further payment until the Work is finished. If the unpaid balance of the Contract Price exceeds all costs to the Owner of completing the Work, then the Contractor will be paid for all Work performed by the Contractor to the date of termination. If such costs to the Owner of completing the Work exceed such unpaid balance, the Contractor will pay the difference to the Owner immediately upon the Owner’s demand for such payment up to the amount of the Contract Price. The costs to the Owner of completing the Work will include (but not be limited to) any costs incurred in retaining another contractor or other subcontractors, any additional interest or fees which the Owner must pay by reason of a delay in completion of the Work, reasonable attorneys’ fees and expenses, and any other damages, costs and expenses the Owner may incur by reason of completing the Work or any delay thereof. The obligations of the parties to pay each other, if any, pursuant to this paragraph shall survive termination of the Contract.
I. GOVERNING LAW RESTRICTED ASSIGNMENT. This Contract is governed by the laws of the State of Illinois. Neither the Owner nor the Contractor may assign this Contract without the express written consent of the other party.
