Sample Contract |
July 17, 2007 |
CONTRACT |
| between (Clients' names) (Clients) and Saga Construction and Woodworking (Saga) for remodeling and (other work) at (client address) , (town) . |
| Saga undertakes to be the general contractor for the project, using the plans designed by (architect) as the basis. The contract will be on a time and material basis: clients will be billed shortly after the 1st and 15th of each month for the actual cost of labor, material, subcontracts, services and rentals (receipts and invoices to be supplied with each bill), plus a 20% contracting fee. There will be a target price of the estimate amount plus a contingency allowance. This allowance is to protect Saga from cost overruns; cost increases due to unforseeable conditions, acts of God, or Clients' request will be additions to the target price. If the final cost is less (because of deletions or good estimating), the Clients will pay the cost amount plus one half of the difference between the cost and the target price. Should the final cost exceed the target price, Clients will pay one half of any costs above the target. If the final cost of contract items is within $5000 of the target price there will be no cost splitting (as described above) by either party. Saga will provide with each billing, or as needed, an accounting of costs in relation to the estimate and updated estimates. Saga undertakes to advise Clients as to cost increases or decreases as a result of contemplated changes in plan. |
| Change orders: changes or additions to the contracted plans, if they have an impact on costs, whether the result of the Clients' volition or required by unforseen conditions, will be estimated by Saga and the work will be billed at a 30% higher labor rate and a 5% higher contracting fee. |
| Labor billing: a spreadsheet accounting for the hours of Saga personnel will accompany each bill; clients will be billed for time spent directly on the project, including such things as getting a building permit, meeting with subcontractors, or picking up material, but not things such as travel time, lunch break, or evening phone conversations. Workers will usually take a paid 15 minute break forenoon and afternoon. Labor rates: Charles $45/hr., and John $22.50/hr (current as of 7/16/07). Clients will by billed for non-reusable materials such as dust masks, some saw blades, protective plastic, but not tools or supplies that can be returned or retained for future use. |
| All work will be done in such a way that it complies with local building codes, and will be warranteed according to State standards |
| Schedule for the project: begin (date) , proceed without pause or delay, except for holidays, severe weather, or factors beyond Saga's control; completion of the work is expected by (date) ; 50% of the value of incomplete work may be withheld at the time of the next to the last payment (retainage). |
| Saga is licensed, bonded and insured; all subcontractors will supply notice of insurance and lien waivers on request; client will not be responsible for accident or injury on the job site. |
| Saga's normal work day will be 8:30-4:30, Mon - Fri. Saturday work, if needed, only with Clients' approval. There will be no smoking in the house. |
| Saga will attempt to protect, as much and as long as feasible, the existing house from dust, cold, debris, noise, etc. with temporary walls, plastic sheeting, etc. General clean-up and debris removal will be Saga's responsibility, except final thorough cleaning, which Clients may wish to subcontract. |
| Clients are encouraged to communicate as much and as forthrightly as possible their desires, annoyances, standards of quality, preferred methods so that Saga can comply most efficiently. |
| Notes: An annotated, signed and dated copy of the blueprint and the estimate spreadsheet will constitute additional documentation of the scope of the work. |
Saga Charles Pederson |