Date post: | 27-Mar-2015 |
Category: |
Documents |
Upload: | christian-shaw |
View: | 217 times |
Download: | 2 times |
Contracts for Builders
Ross Kinzler Executive Director
Contracts Address Risks
What are your risks
You will order a home for big $ from a manufacturer based on What A promise or a contract
You will do work on property owned by others based on What A promise or a contract
You will arrange for others to do work on a home based on What A promise or a contract
Two Contracts to Discuss
Modular Home Purchase Contract Sub Contractor Agreement
What we are NOT going to cover Agreements between builder and
manufacturer Agreements between ldquoownerbuyerrdquo and
others There are particular risks here since they are
likely to directly affect you but you have little control
Modular Contract - Risks Addressed Buyer backing out Builder wanting out if buyer doesnrsquot perform The buyer really owns the land ndash dah Lot is build-able Scope of work ndash just what you are doing and
not doing Liability limitations Possession and control of the property
Risks Addressed - continued
Owner responsibilities Lien Notices ndash more later on this Security agreement for property Insurance for property Price changes during contract Default remedies
How to Use the Modular Contract Pick the Version
Standard Trade-in
Top Mistakes
No Blanks
2 Top Mistakes Messing up the financing condition ndash this is NOT
OPTIONAL if contract is conditioned on getting financing
a Minimum amount $________________ b Minimum term ___________ months c Maximum interest rate If checked here a fixed rate not more than
_______ per year If checked here 1048709 a variable rate loan in which the initial interest rate is not more than ____ per year which may change not earlier than ________ months and thereafter not more frequently than every _______ months and will not change by more than ____ per year at any change and not more than _____ per year in total
d Maximum monthly payments $___________e Maximum ldquopointsrdquo or origination fees of any description
________________________f Other special terms apply if checked here and a schedule is attached
Cash Deal
Make sure to check the box at the end of finance section
3 - Top Mistakes
Scope of Work ndash What are you doing
SCOPE OF THE WORK_____ HOME ONLY - Attach the Home on a foundation provided by
Owner in accordance with Builderrsquos procedures Owner understands that the Home is a modular home which will be constructed by __________________________________________ designated as model __________________________________ and delivered to and installed on the Ownerrsquos property as described in this Contract
_____ HOME PLUS ndash Attach the Home on the foundation and perform other Work and services as described on the Addenda
4 - Top Mistakes
Failure to identify who is in charge of projectPRIME (GENERAL) CONTRACTOR_____If checked here Builder is acting as Ownerrsquos
general contractor General Contractorrsquos License ___________
_____If checked here Builder is not acting as general contractor and Owner is either acting as the general contractor or has chosen to hire a general contractor As a condition to Builderrsquos obligation to perform under this Contact Owner will provide to Builder originals of all permits that are the responsibility of Owner to obtain under this Contract Owner acknowledges the construction and legal risks in assuming the role of general contractor
Having the Owner act as his own general contractor does not isolate you from liability
Example- placing the home on foundation done
by others - you will still be liable for failure
5 - Top Mistakes
Changing the contract by re-writing it
5 - Top Mistakes
Donrsquot do it Use Change Order
6 ndash Top Mistakes
Get enough detail in plans and specs Attach all relevant documents
ADDENDUM A
Plans and Specifications Included In Scope of Work
[The following become a part of this contract once completed and signed or initialed by the Owner ndash base model spec sheet factory order form floorplan print foundation print plot plan and any other documents required by lenders or other similar 3rd parties ]
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Contracts Address Risks
What are your risks
You will order a home for big $ from a manufacturer based on What A promise or a contract
You will do work on property owned by others based on What A promise or a contract
You will arrange for others to do work on a home based on What A promise or a contract
Two Contracts to Discuss
Modular Home Purchase Contract Sub Contractor Agreement
What we are NOT going to cover Agreements between builder and
manufacturer Agreements between ldquoownerbuyerrdquo and
others There are particular risks here since they are
likely to directly affect you but you have little control
Modular Contract - Risks Addressed Buyer backing out Builder wanting out if buyer doesnrsquot perform The buyer really owns the land ndash dah Lot is build-able Scope of work ndash just what you are doing and
not doing Liability limitations Possession and control of the property
Risks Addressed - continued
Owner responsibilities Lien Notices ndash more later on this Security agreement for property Insurance for property Price changes during contract Default remedies
How to Use the Modular Contract Pick the Version
Standard Trade-in
Top Mistakes
No Blanks
2 Top Mistakes Messing up the financing condition ndash this is NOT
OPTIONAL if contract is conditioned on getting financing
a Minimum amount $________________ b Minimum term ___________ months c Maximum interest rate If checked here a fixed rate not more than
_______ per year If checked here 1048709 a variable rate loan in which the initial interest rate is not more than ____ per year which may change not earlier than ________ months and thereafter not more frequently than every _______ months and will not change by more than ____ per year at any change and not more than _____ per year in total
d Maximum monthly payments $___________e Maximum ldquopointsrdquo or origination fees of any description
________________________f Other special terms apply if checked here and a schedule is attached
Cash Deal
Make sure to check the box at the end of finance section
3 - Top Mistakes
Scope of Work ndash What are you doing
SCOPE OF THE WORK_____ HOME ONLY - Attach the Home on a foundation provided by
Owner in accordance with Builderrsquos procedures Owner understands that the Home is a modular home which will be constructed by __________________________________________ designated as model __________________________________ and delivered to and installed on the Ownerrsquos property as described in this Contract
_____ HOME PLUS ndash Attach the Home on the foundation and perform other Work and services as described on the Addenda
4 - Top Mistakes
Failure to identify who is in charge of projectPRIME (GENERAL) CONTRACTOR_____If checked here Builder is acting as Ownerrsquos
general contractor General Contractorrsquos License ___________
_____If checked here Builder is not acting as general contractor and Owner is either acting as the general contractor or has chosen to hire a general contractor As a condition to Builderrsquos obligation to perform under this Contact Owner will provide to Builder originals of all permits that are the responsibility of Owner to obtain under this Contract Owner acknowledges the construction and legal risks in assuming the role of general contractor
Having the Owner act as his own general contractor does not isolate you from liability
Example- placing the home on foundation done
by others - you will still be liable for failure
5 - Top Mistakes
Changing the contract by re-writing it
5 - Top Mistakes
Donrsquot do it Use Change Order
6 ndash Top Mistakes
Get enough detail in plans and specs Attach all relevant documents
ADDENDUM A
Plans and Specifications Included In Scope of Work
[The following become a part of this contract once completed and signed or initialed by the Owner ndash base model spec sheet factory order form floorplan print foundation print plot plan and any other documents required by lenders or other similar 3rd parties ]
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
What are your risks
You will order a home for big $ from a manufacturer based on What A promise or a contract
You will do work on property owned by others based on What A promise or a contract
You will arrange for others to do work on a home based on What A promise or a contract
Two Contracts to Discuss
Modular Home Purchase Contract Sub Contractor Agreement
What we are NOT going to cover Agreements between builder and
manufacturer Agreements between ldquoownerbuyerrdquo and
others There are particular risks here since they are
likely to directly affect you but you have little control
Modular Contract - Risks Addressed Buyer backing out Builder wanting out if buyer doesnrsquot perform The buyer really owns the land ndash dah Lot is build-able Scope of work ndash just what you are doing and
not doing Liability limitations Possession and control of the property
Risks Addressed - continued
Owner responsibilities Lien Notices ndash more later on this Security agreement for property Insurance for property Price changes during contract Default remedies
How to Use the Modular Contract Pick the Version
Standard Trade-in
Top Mistakes
No Blanks
2 Top Mistakes Messing up the financing condition ndash this is NOT
OPTIONAL if contract is conditioned on getting financing
a Minimum amount $________________ b Minimum term ___________ months c Maximum interest rate If checked here a fixed rate not more than
_______ per year If checked here 1048709 a variable rate loan in which the initial interest rate is not more than ____ per year which may change not earlier than ________ months and thereafter not more frequently than every _______ months and will not change by more than ____ per year at any change and not more than _____ per year in total
d Maximum monthly payments $___________e Maximum ldquopointsrdquo or origination fees of any description
________________________f Other special terms apply if checked here and a schedule is attached
Cash Deal
Make sure to check the box at the end of finance section
3 - Top Mistakes
Scope of Work ndash What are you doing
SCOPE OF THE WORK_____ HOME ONLY - Attach the Home on a foundation provided by
Owner in accordance with Builderrsquos procedures Owner understands that the Home is a modular home which will be constructed by __________________________________________ designated as model __________________________________ and delivered to and installed on the Ownerrsquos property as described in this Contract
_____ HOME PLUS ndash Attach the Home on the foundation and perform other Work and services as described on the Addenda
4 - Top Mistakes
Failure to identify who is in charge of projectPRIME (GENERAL) CONTRACTOR_____If checked here Builder is acting as Ownerrsquos
general contractor General Contractorrsquos License ___________
_____If checked here Builder is not acting as general contractor and Owner is either acting as the general contractor or has chosen to hire a general contractor As a condition to Builderrsquos obligation to perform under this Contact Owner will provide to Builder originals of all permits that are the responsibility of Owner to obtain under this Contract Owner acknowledges the construction and legal risks in assuming the role of general contractor
Having the Owner act as his own general contractor does not isolate you from liability
Example- placing the home on foundation done
by others - you will still be liable for failure
5 - Top Mistakes
Changing the contract by re-writing it
5 - Top Mistakes
Donrsquot do it Use Change Order
6 ndash Top Mistakes
Get enough detail in plans and specs Attach all relevant documents
ADDENDUM A
Plans and Specifications Included In Scope of Work
[The following become a part of this contract once completed and signed or initialed by the Owner ndash base model spec sheet factory order form floorplan print foundation print plot plan and any other documents required by lenders or other similar 3rd parties ]
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Two Contracts to Discuss
Modular Home Purchase Contract Sub Contractor Agreement
What we are NOT going to cover Agreements between builder and
manufacturer Agreements between ldquoownerbuyerrdquo and
others There are particular risks here since they are
likely to directly affect you but you have little control
Modular Contract - Risks Addressed Buyer backing out Builder wanting out if buyer doesnrsquot perform The buyer really owns the land ndash dah Lot is build-able Scope of work ndash just what you are doing and
not doing Liability limitations Possession and control of the property
Risks Addressed - continued
Owner responsibilities Lien Notices ndash more later on this Security agreement for property Insurance for property Price changes during contract Default remedies
How to Use the Modular Contract Pick the Version
Standard Trade-in
Top Mistakes
No Blanks
2 Top Mistakes Messing up the financing condition ndash this is NOT
OPTIONAL if contract is conditioned on getting financing
a Minimum amount $________________ b Minimum term ___________ months c Maximum interest rate If checked here a fixed rate not more than
_______ per year If checked here 1048709 a variable rate loan in which the initial interest rate is not more than ____ per year which may change not earlier than ________ months and thereafter not more frequently than every _______ months and will not change by more than ____ per year at any change and not more than _____ per year in total
d Maximum monthly payments $___________e Maximum ldquopointsrdquo or origination fees of any description
________________________f Other special terms apply if checked here and a schedule is attached
Cash Deal
Make sure to check the box at the end of finance section
3 - Top Mistakes
Scope of Work ndash What are you doing
SCOPE OF THE WORK_____ HOME ONLY - Attach the Home on a foundation provided by
Owner in accordance with Builderrsquos procedures Owner understands that the Home is a modular home which will be constructed by __________________________________________ designated as model __________________________________ and delivered to and installed on the Ownerrsquos property as described in this Contract
_____ HOME PLUS ndash Attach the Home on the foundation and perform other Work and services as described on the Addenda
4 - Top Mistakes
Failure to identify who is in charge of projectPRIME (GENERAL) CONTRACTOR_____If checked here Builder is acting as Ownerrsquos
general contractor General Contractorrsquos License ___________
_____If checked here Builder is not acting as general contractor and Owner is either acting as the general contractor or has chosen to hire a general contractor As a condition to Builderrsquos obligation to perform under this Contact Owner will provide to Builder originals of all permits that are the responsibility of Owner to obtain under this Contract Owner acknowledges the construction and legal risks in assuming the role of general contractor
Having the Owner act as his own general contractor does not isolate you from liability
Example- placing the home on foundation done
by others - you will still be liable for failure
5 - Top Mistakes
Changing the contract by re-writing it
5 - Top Mistakes
Donrsquot do it Use Change Order
6 ndash Top Mistakes
Get enough detail in plans and specs Attach all relevant documents
ADDENDUM A
Plans and Specifications Included In Scope of Work
[The following become a part of this contract once completed and signed or initialed by the Owner ndash base model spec sheet factory order form floorplan print foundation print plot plan and any other documents required by lenders or other similar 3rd parties ]
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
What we are NOT going to cover Agreements between builder and
manufacturer Agreements between ldquoownerbuyerrdquo and
others There are particular risks here since they are
likely to directly affect you but you have little control
Modular Contract - Risks Addressed Buyer backing out Builder wanting out if buyer doesnrsquot perform The buyer really owns the land ndash dah Lot is build-able Scope of work ndash just what you are doing and
not doing Liability limitations Possession and control of the property
Risks Addressed - continued
Owner responsibilities Lien Notices ndash more later on this Security agreement for property Insurance for property Price changes during contract Default remedies
How to Use the Modular Contract Pick the Version
Standard Trade-in
Top Mistakes
No Blanks
2 Top Mistakes Messing up the financing condition ndash this is NOT
OPTIONAL if contract is conditioned on getting financing
a Minimum amount $________________ b Minimum term ___________ months c Maximum interest rate If checked here a fixed rate not more than
_______ per year If checked here 1048709 a variable rate loan in which the initial interest rate is not more than ____ per year which may change not earlier than ________ months and thereafter not more frequently than every _______ months and will not change by more than ____ per year at any change and not more than _____ per year in total
d Maximum monthly payments $___________e Maximum ldquopointsrdquo or origination fees of any description
________________________f Other special terms apply if checked here and a schedule is attached
Cash Deal
Make sure to check the box at the end of finance section
3 - Top Mistakes
Scope of Work ndash What are you doing
SCOPE OF THE WORK_____ HOME ONLY - Attach the Home on a foundation provided by
Owner in accordance with Builderrsquos procedures Owner understands that the Home is a modular home which will be constructed by __________________________________________ designated as model __________________________________ and delivered to and installed on the Ownerrsquos property as described in this Contract
_____ HOME PLUS ndash Attach the Home on the foundation and perform other Work and services as described on the Addenda
4 - Top Mistakes
Failure to identify who is in charge of projectPRIME (GENERAL) CONTRACTOR_____If checked here Builder is acting as Ownerrsquos
general contractor General Contractorrsquos License ___________
_____If checked here Builder is not acting as general contractor and Owner is either acting as the general contractor or has chosen to hire a general contractor As a condition to Builderrsquos obligation to perform under this Contact Owner will provide to Builder originals of all permits that are the responsibility of Owner to obtain under this Contract Owner acknowledges the construction and legal risks in assuming the role of general contractor
Having the Owner act as his own general contractor does not isolate you from liability
Example- placing the home on foundation done
by others - you will still be liable for failure
5 - Top Mistakes
Changing the contract by re-writing it
5 - Top Mistakes
Donrsquot do it Use Change Order
6 ndash Top Mistakes
Get enough detail in plans and specs Attach all relevant documents
ADDENDUM A
Plans and Specifications Included In Scope of Work
[The following become a part of this contract once completed and signed or initialed by the Owner ndash base model spec sheet factory order form floorplan print foundation print plot plan and any other documents required by lenders or other similar 3rd parties ]
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Modular Contract - Risks Addressed Buyer backing out Builder wanting out if buyer doesnrsquot perform The buyer really owns the land ndash dah Lot is build-able Scope of work ndash just what you are doing and
not doing Liability limitations Possession and control of the property
Risks Addressed - continued
Owner responsibilities Lien Notices ndash more later on this Security agreement for property Insurance for property Price changes during contract Default remedies
How to Use the Modular Contract Pick the Version
Standard Trade-in
Top Mistakes
No Blanks
2 Top Mistakes Messing up the financing condition ndash this is NOT
OPTIONAL if contract is conditioned on getting financing
a Minimum amount $________________ b Minimum term ___________ months c Maximum interest rate If checked here a fixed rate not more than
_______ per year If checked here 1048709 a variable rate loan in which the initial interest rate is not more than ____ per year which may change not earlier than ________ months and thereafter not more frequently than every _______ months and will not change by more than ____ per year at any change and not more than _____ per year in total
d Maximum monthly payments $___________e Maximum ldquopointsrdquo or origination fees of any description
________________________f Other special terms apply if checked here and a schedule is attached
Cash Deal
Make sure to check the box at the end of finance section
3 - Top Mistakes
Scope of Work ndash What are you doing
SCOPE OF THE WORK_____ HOME ONLY - Attach the Home on a foundation provided by
Owner in accordance with Builderrsquos procedures Owner understands that the Home is a modular home which will be constructed by __________________________________________ designated as model __________________________________ and delivered to and installed on the Ownerrsquos property as described in this Contract
_____ HOME PLUS ndash Attach the Home on the foundation and perform other Work and services as described on the Addenda
4 - Top Mistakes
Failure to identify who is in charge of projectPRIME (GENERAL) CONTRACTOR_____If checked here Builder is acting as Ownerrsquos
general contractor General Contractorrsquos License ___________
_____If checked here Builder is not acting as general contractor and Owner is either acting as the general contractor or has chosen to hire a general contractor As a condition to Builderrsquos obligation to perform under this Contact Owner will provide to Builder originals of all permits that are the responsibility of Owner to obtain under this Contract Owner acknowledges the construction and legal risks in assuming the role of general contractor
Having the Owner act as his own general contractor does not isolate you from liability
Example- placing the home on foundation done
by others - you will still be liable for failure
5 - Top Mistakes
Changing the contract by re-writing it
5 - Top Mistakes
Donrsquot do it Use Change Order
6 ndash Top Mistakes
Get enough detail in plans and specs Attach all relevant documents
ADDENDUM A
Plans and Specifications Included In Scope of Work
[The following become a part of this contract once completed and signed or initialed by the Owner ndash base model spec sheet factory order form floorplan print foundation print plot plan and any other documents required by lenders or other similar 3rd parties ]
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Risks Addressed - continued
Owner responsibilities Lien Notices ndash more later on this Security agreement for property Insurance for property Price changes during contract Default remedies
How to Use the Modular Contract Pick the Version
Standard Trade-in
Top Mistakes
No Blanks
2 Top Mistakes Messing up the financing condition ndash this is NOT
OPTIONAL if contract is conditioned on getting financing
a Minimum amount $________________ b Minimum term ___________ months c Maximum interest rate If checked here a fixed rate not more than
_______ per year If checked here 1048709 a variable rate loan in which the initial interest rate is not more than ____ per year which may change not earlier than ________ months and thereafter not more frequently than every _______ months and will not change by more than ____ per year at any change and not more than _____ per year in total
d Maximum monthly payments $___________e Maximum ldquopointsrdquo or origination fees of any description
________________________f Other special terms apply if checked here and a schedule is attached
Cash Deal
Make sure to check the box at the end of finance section
3 - Top Mistakes
Scope of Work ndash What are you doing
SCOPE OF THE WORK_____ HOME ONLY - Attach the Home on a foundation provided by
Owner in accordance with Builderrsquos procedures Owner understands that the Home is a modular home which will be constructed by __________________________________________ designated as model __________________________________ and delivered to and installed on the Ownerrsquos property as described in this Contract
_____ HOME PLUS ndash Attach the Home on the foundation and perform other Work and services as described on the Addenda
4 - Top Mistakes
Failure to identify who is in charge of projectPRIME (GENERAL) CONTRACTOR_____If checked here Builder is acting as Ownerrsquos
general contractor General Contractorrsquos License ___________
_____If checked here Builder is not acting as general contractor and Owner is either acting as the general contractor or has chosen to hire a general contractor As a condition to Builderrsquos obligation to perform under this Contact Owner will provide to Builder originals of all permits that are the responsibility of Owner to obtain under this Contract Owner acknowledges the construction and legal risks in assuming the role of general contractor
Having the Owner act as his own general contractor does not isolate you from liability
Example- placing the home on foundation done
by others - you will still be liable for failure
5 - Top Mistakes
Changing the contract by re-writing it
5 - Top Mistakes
Donrsquot do it Use Change Order
6 ndash Top Mistakes
Get enough detail in plans and specs Attach all relevant documents
ADDENDUM A
Plans and Specifications Included In Scope of Work
[The following become a part of this contract once completed and signed or initialed by the Owner ndash base model spec sheet factory order form floorplan print foundation print plot plan and any other documents required by lenders or other similar 3rd parties ]
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
How to Use the Modular Contract Pick the Version
Standard Trade-in
Top Mistakes
No Blanks
2 Top Mistakes Messing up the financing condition ndash this is NOT
OPTIONAL if contract is conditioned on getting financing
a Minimum amount $________________ b Minimum term ___________ months c Maximum interest rate If checked here a fixed rate not more than
_______ per year If checked here 1048709 a variable rate loan in which the initial interest rate is not more than ____ per year which may change not earlier than ________ months and thereafter not more frequently than every _______ months and will not change by more than ____ per year at any change and not more than _____ per year in total
d Maximum monthly payments $___________e Maximum ldquopointsrdquo or origination fees of any description
________________________f Other special terms apply if checked here and a schedule is attached
Cash Deal
Make sure to check the box at the end of finance section
3 - Top Mistakes
Scope of Work ndash What are you doing
SCOPE OF THE WORK_____ HOME ONLY - Attach the Home on a foundation provided by
Owner in accordance with Builderrsquos procedures Owner understands that the Home is a modular home which will be constructed by __________________________________________ designated as model __________________________________ and delivered to and installed on the Ownerrsquos property as described in this Contract
_____ HOME PLUS ndash Attach the Home on the foundation and perform other Work and services as described on the Addenda
4 - Top Mistakes
Failure to identify who is in charge of projectPRIME (GENERAL) CONTRACTOR_____If checked here Builder is acting as Ownerrsquos
general contractor General Contractorrsquos License ___________
_____If checked here Builder is not acting as general contractor and Owner is either acting as the general contractor or has chosen to hire a general contractor As a condition to Builderrsquos obligation to perform under this Contact Owner will provide to Builder originals of all permits that are the responsibility of Owner to obtain under this Contract Owner acknowledges the construction and legal risks in assuming the role of general contractor
Having the Owner act as his own general contractor does not isolate you from liability
Example- placing the home on foundation done
by others - you will still be liable for failure
5 - Top Mistakes
Changing the contract by re-writing it
5 - Top Mistakes
Donrsquot do it Use Change Order
6 ndash Top Mistakes
Get enough detail in plans and specs Attach all relevant documents
ADDENDUM A
Plans and Specifications Included In Scope of Work
[The following become a part of this contract once completed and signed or initialed by the Owner ndash base model spec sheet factory order form floorplan print foundation print plot plan and any other documents required by lenders or other similar 3rd parties ]
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Top Mistakes
No Blanks
2 Top Mistakes Messing up the financing condition ndash this is NOT
OPTIONAL if contract is conditioned on getting financing
a Minimum amount $________________ b Minimum term ___________ months c Maximum interest rate If checked here a fixed rate not more than
_______ per year If checked here 1048709 a variable rate loan in which the initial interest rate is not more than ____ per year which may change not earlier than ________ months and thereafter not more frequently than every _______ months and will not change by more than ____ per year at any change and not more than _____ per year in total
d Maximum monthly payments $___________e Maximum ldquopointsrdquo or origination fees of any description
________________________f Other special terms apply if checked here and a schedule is attached
Cash Deal
Make sure to check the box at the end of finance section
3 - Top Mistakes
Scope of Work ndash What are you doing
SCOPE OF THE WORK_____ HOME ONLY - Attach the Home on a foundation provided by
Owner in accordance with Builderrsquos procedures Owner understands that the Home is a modular home which will be constructed by __________________________________________ designated as model __________________________________ and delivered to and installed on the Ownerrsquos property as described in this Contract
_____ HOME PLUS ndash Attach the Home on the foundation and perform other Work and services as described on the Addenda
4 - Top Mistakes
Failure to identify who is in charge of projectPRIME (GENERAL) CONTRACTOR_____If checked here Builder is acting as Ownerrsquos
general contractor General Contractorrsquos License ___________
_____If checked here Builder is not acting as general contractor and Owner is either acting as the general contractor or has chosen to hire a general contractor As a condition to Builderrsquos obligation to perform under this Contact Owner will provide to Builder originals of all permits that are the responsibility of Owner to obtain under this Contract Owner acknowledges the construction and legal risks in assuming the role of general contractor
Having the Owner act as his own general contractor does not isolate you from liability
Example- placing the home on foundation done
by others - you will still be liable for failure
5 - Top Mistakes
Changing the contract by re-writing it
5 - Top Mistakes
Donrsquot do it Use Change Order
6 ndash Top Mistakes
Get enough detail in plans and specs Attach all relevant documents
ADDENDUM A
Plans and Specifications Included In Scope of Work
[The following become a part of this contract once completed and signed or initialed by the Owner ndash base model spec sheet factory order form floorplan print foundation print plot plan and any other documents required by lenders or other similar 3rd parties ]
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
2 Top Mistakes Messing up the financing condition ndash this is NOT
OPTIONAL if contract is conditioned on getting financing
a Minimum amount $________________ b Minimum term ___________ months c Maximum interest rate If checked here a fixed rate not more than
_______ per year If checked here 1048709 a variable rate loan in which the initial interest rate is not more than ____ per year which may change not earlier than ________ months and thereafter not more frequently than every _______ months and will not change by more than ____ per year at any change and not more than _____ per year in total
d Maximum monthly payments $___________e Maximum ldquopointsrdquo or origination fees of any description
________________________f Other special terms apply if checked here and a schedule is attached
Cash Deal
Make sure to check the box at the end of finance section
3 - Top Mistakes
Scope of Work ndash What are you doing
SCOPE OF THE WORK_____ HOME ONLY - Attach the Home on a foundation provided by
Owner in accordance with Builderrsquos procedures Owner understands that the Home is a modular home which will be constructed by __________________________________________ designated as model __________________________________ and delivered to and installed on the Ownerrsquos property as described in this Contract
_____ HOME PLUS ndash Attach the Home on the foundation and perform other Work and services as described on the Addenda
4 - Top Mistakes
Failure to identify who is in charge of projectPRIME (GENERAL) CONTRACTOR_____If checked here Builder is acting as Ownerrsquos
general contractor General Contractorrsquos License ___________
_____If checked here Builder is not acting as general contractor and Owner is either acting as the general contractor or has chosen to hire a general contractor As a condition to Builderrsquos obligation to perform under this Contact Owner will provide to Builder originals of all permits that are the responsibility of Owner to obtain under this Contract Owner acknowledges the construction and legal risks in assuming the role of general contractor
Having the Owner act as his own general contractor does not isolate you from liability
Example- placing the home on foundation done
by others - you will still be liable for failure
5 - Top Mistakes
Changing the contract by re-writing it
5 - Top Mistakes
Donrsquot do it Use Change Order
6 ndash Top Mistakes
Get enough detail in plans and specs Attach all relevant documents
ADDENDUM A
Plans and Specifications Included In Scope of Work
[The following become a part of this contract once completed and signed or initialed by the Owner ndash base model spec sheet factory order form floorplan print foundation print plot plan and any other documents required by lenders or other similar 3rd parties ]
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Cash Deal
Make sure to check the box at the end of finance section
3 - Top Mistakes
Scope of Work ndash What are you doing
SCOPE OF THE WORK_____ HOME ONLY - Attach the Home on a foundation provided by
Owner in accordance with Builderrsquos procedures Owner understands that the Home is a modular home which will be constructed by __________________________________________ designated as model __________________________________ and delivered to and installed on the Ownerrsquos property as described in this Contract
_____ HOME PLUS ndash Attach the Home on the foundation and perform other Work and services as described on the Addenda
4 - Top Mistakes
Failure to identify who is in charge of projectPRIME (GENERAL) CONTRACTOR_____If checked here Builder is acting as Ownerrsquos
general contractor General Contractorrsquos License ___________
_____If checked here Builder is not acting as general contractor and Owner is either acting as the general contractor or has chosen to hire a general contractor As a condition to Builderrsquos obligation to perform under this Contact Owner will provide to Builder originals of all permits that are the responsibility of Owner to obtain under this Contract Owner acknowledges the construction and legal risks in assuming the role of general contractor
Having the Owner act as his own general contractor does not isolate you from liability
Example- placing the home on foundation done
by others - you will still be liable for failure
5 - Top Mistakes
Changing the contract by re-writing it
5 - Top Mistakes
Donrsquot do it Use Change Order
6 ndash Top Mistakes
Get enough detail in plans and specs Attach all relevant documents
ADDENDUM A
Plans and Specifications Included In Scope of Work
[The following become a part of this contract once completed and signed or initialed by the Owner ndash base model spec sheet factory order form floorplan print foundation print plot plan and any other documents required by lenders or other similar 3rd parties ]
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
3 - Top Mistakes
Scope of Work ndash What are you doing
SCOPE OF THE WORK_____ HOME ONLY - Attach the Home on a foundation provided by
Owner in accordance with Builderrsquos procedures Owner understands that the Home is a modular home which will be constructed by __________________________________________ designated as model __________________________________ and delivered to and installed on the Ownerrsquos property as described in this Contract
_____ HOME PLUS ndash Attach the Home on the foundation and perform other Work and services as described on the Addenda
4 - Top Mistakes
Failure to identify who is in charge of projectPRIME (GENERAL) CONTRACTOR_____If checked here Builder is acting as Ownerrsquos
general contractor General Contractorrsquos License ___________
_____If checked here Builder is not acting as general contractor and Owner is either acting as the general contractor or has chosen to hire a general contractor As a condition to Builderrsquos obligation to perform under this Contact Owner will provide to Builder originals of all permits that are the responsibility of Owner to obtain under this Contract Owner acknowledges the construction and legal risks in assuming the role of general contractor
Having the Owner act as his own general contractor does not isolate you from liability
Example- placing the home on foundation done
by others - you will still be liable for failure
5 - Top Mistakes
Changing the contract by re-writing it
5 - Top Mistakes
Donrsquot do it Use Change Order
6 ndash Top Mistakes
Get enough detail in plans and specs Attach all relevant documents
ADDENDUM A
Plans and Specifications Included In Scope of Work
[The following become a part of this contract once completed and signed or initialed by the Owner ndash base model spec sheet factory order form floorplan print foundation print plot plan and any other documents required by lenders or other similar 3rd parties ]
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
4 - Top Mistakes
Failure to identify who is in charge of projectPRIME (GENERAL) CONTRACTOR_____If checked here Builder is acting as Ownerrsquos
general contractor General Contractorrsquos License ___________
_____If checked here Builder is not acting as general contractor and Owner is either acting as the general contractor or has chosen to hire a general contractor As a condition to Builderrsquos obligation to perform under this Contact Owner will provide to Builder originals of all permits that are the responsibility of Owner to obtain under this Contract Owner acknowledges the construction and legal risks in assuming the role of general contractor
Having the Owner act as his own general contractor does not isolate you from liability
Example- placing the home on foundation done
by others - you will still be liable for failure
5 - Top Mistakes
Changing the contract by re-writing it
5 - Top Mistakes
Donrsquot do it Use Change Order
6 ndash Top Mistakes
Get enough detail in plans and specs Attach all relevant documents
ADDENDUM A
Plans and Specifications Included In Scope of Work
[The following become a part of this contract once completed and signed or initialed by the Owner ndash base model spec sheet factory order form floorplan print foundation print plot plan and any other documents required by lenders or other similar 3rd parties ]
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Having the Owner act as his own general contractor does not isolate you from liability
Example- placing the home on foundation done
by others - you will still be liable for failure
5 - Top Mistakes
Changing the contract by re-writing it
5 - Top Mistakes
Donrsquot do it Use Change Order
6 ndash Top Mistakes
Get enough detail in plans and specs Attach all relevant documents
ADDENDUM A
Plans and Specifications Included In Scope of Work
[The following become a part of this contract once completed and signed or initialed by the Owner ndash base model spec sheet factory order form floorplan print foundation print plot plan and any other documents required by lenders or other similar 3rd parties ]
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
5 - Top Mistakes
Changing the contract by re-writing it
5 - Top Mistakes
Donrsquot do it Use Change Order
6 ndash Top Mistakes
Get enough detail in plans and specs Attach all relevant documents
ADDENDUM A
Plans and Specifications Included In Scope of Work
[The following become a part of this contract once completed and signed or initialed by the Owner ndash base model spec sheet factory order form floorplan print foundation print plot plan and any other documents required by lenders or other similar 3rd parties ]
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
5 - Top Mistakes
Donrsquot do it Use Change Order
6 ndash Top Mistakes
Get enough detail in plans and specs Attach all relevant documents
ADDENDUM A
Plans and Specifications Included In Scope of Work
[The following become a part of this contract once completed and signed or initialed by the Owner ndash base model spec sheet factory order form floorplan print foundation print plot plan and any other documents required by lenders or other similar 3rd parties ]
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
6 ndash Top Mistakes
Get enough detail in plans and specs Attach all relevant documents
ADDENDUM A
Plans and Specifications Included In Scope of Work
[The following become a part of this contract once completed and signed or initialed by the Owner ndash base model spec sheet factory order form floorplan print foundation print plot plan and any other documents required by lenders or other similar 3rd parties ]
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
7 ndash Top Mistakes Other Construction - Getting enough detail in
Addendum B including pricing if appropriate
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
8 ndash Top Mistakes
Addendum C - Included items or Allowance Select one or the other or cross out
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
9 ndash Top Mistakes
Get Initials on non-signature pages
_______________Initials
Page 2 of 9
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
10 ndash Top Mistakes
If you use an arbitration clause you may want to delete the Jury Trial Waiver
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Modular Contractor Q amp A
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Sub Contractor Agreement
This is a new form Modified since last discussed at Spring
Seminar last year It is a template
Take to your attorney to square up with your business practices
One size probably doesnrsquot fit all This is a member benefit and will be revised from
time to time based upon member input
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Sub Contractor Agreements
Why A modular home requires a variety of contractors
to complete You donrsquot want the lsquotailrsquo wagging the dog You donrsquot want subrsquos employees deemed to be
yours You want to establish standards
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Would You Contract with these Guys
Bill Gates Paul Allen
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
This contract is between businesses You as builder and your sub contractor Not between you and your customerrsquos
subcontractors
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Comments
As you read this contract you realize all of the areas where your customerrsquos sub can get you in trouble Why not control those issues
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Agreement Basic Theory
One General Agreement that might go on for years One Scope of WorkProject Schedule for each job Acceptance Report to Verify end of each job
Job
job job
Job
job
Agreement
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Topics Covered
Who providesprotects materials Payments and liens
Payments subject to Scope of Work Completion ndash When is a job done Job changes ndash builder must approve Clean up Performance to industry standards
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Topics Covered
Safety and OSHA compliance Extensive provision on default
Builder can step in If builder takes over sub shall give permits and materials to
builder Permits and Laws
Sub is responsible for their own compliance Insurance
General Liability ndash builder to be additional insured
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Topics
Sub warrants their work All work to be done to meetexceed UDC
Mutual Indemnification Tools Availability for meetings Confidentiality Sub wonrsquot solicit project owner Conduct amp Appearance
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Topics
Independent contractor relationship ndash not employeremployee
Builder owns plans amp specs Governing law Dispute resolution - options
Courts Arbitration
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Items You Might Add
Insurance ndash consult with your insurance agent for additional coverage they might want
Severability Clause Compliance with Immigration Laws Modify Scope of WorkProject Schedule to
add more information Modify Acceptance Report
Sub Contractor Agreement Questions
Sub Contractor Agreement Questions