Don't be a fool. Don't sign the contract.
The American Institute of Architects (I think that's their name) has a
standard language contract form for large projects like yours. It covers
just about all of the key issues, and isn't a one-sided ripoff contract like
the one presented to you by the general contractor. If you do a google
search, you can probably find it online, or find out where you can get it.
I think there is a modest cost for the conract form, but it's worth it.
"Doc" wrote in message
news
I'm in Florida working on getting post-hurricane repairs made to my house.
Replacement of the roof, drywall replacement in several rooms and full
house
carpet replacement.
I've found a General Contractor who says they can do the work. They left
an
agreement with me to sign before they'll begin any contact with the
Insurance company. I realize many of you aren't attornies but am hoping
some
have had experience with this sort of issue and see what you think about
some points on the agreement - under each I'll include any questions
concerns about the point. If you see something, by all means speak up. By
the way, sorry for the all caps, but I did this by OCR off my scanner. It
would take forever to type it all:
3. SHOULD DEFAULT BE MADE IN PAYMENT OF THIS AGREEMENT FOR MORE THAN
FIFTEEN DAYS, A LATE CHARGE EQUAL TO FIVE PERCENT OF THE AMOUNT DUE PLUS
INTEREST FROM THE DATE THEREOF AT A RATE OF ONE AND ONE-HALF (1 1/2)
PERCENT
PER MONTH (18 PER ANNUM) OR SUCH MAXIMUM AMOUNT ALLOWED BY LAW, AND IF
PLACED IN THE HANDS OF AN ATTORNEY FOR COLLECTION. ALL ALLOWABLE
ATTORNEY'S
FEES AND LEGAL AND FILING FEES SHALL BE PAID BY THE CUSTOMER.
I wonder about coordination of money from the Insurance company vs when
the
contractor is going to be doing the work. Do they normally not begin work
until the insurance company has agreed to the costs?
6. COMPANY RESERVES THE RIGHT TO REVOKE THIS PROPOSAL 90 DAYS FROM DATE
ACCEPTED. AFTER 90 DAYS, COMPANY RESERVES THE RIGHT TO REVISE ITS PRICE IN
ACCORDANCE WITH COSTS IN EFFECT AT THE TIME.
Is what they're saying is that they can back out any time up to 90 days or
that it's only good for 90 days?
7. THE COMPANY SHALL NOT BE LIABLE FOR FAILURE OF PERFORMANCE DUE TO
LABOR
CONTROVERSIES, STRIKES, FIRES, WEATHER, INABILITY TO OBTAIN MATERIALS FROM
USUAL SOURCES, OR ANY OTHER CIRCUMSTANCES BEYOND THE CONTROL OF THE
COMPANY,
WHETHER OF A SIMILAR OR DISSIMILAR NATURE.
I wonder what constitutes a "labor controversy"?
11. IF THIS AGREEMENT IS CANCELLED BY THE CUSTOMER, CUSTOMER SHALL PAY TO
THE COMPANY TWENTY-FIVE PERCENT (25) OF THE TOTAL AGREEMENT AMOUNT AS
LIQUIDATED DAMAGES, NOT AS A PENALTY, AND THE COMPANY AGREES TO ACCEPT
SUCH
AS A REASONABLE AND JUST COMPENSATION FOR SAID CANCELLATION. THE PARTIES
ACKNOWLEDGE AND AGREE THAT DAMAGES THE COMPANY MIGHT REASONABLY ANTIC-
IPATE IN THE EVENT OF A BREACH OF THIS AGREEMENT BY CUSTOMER(S) WILL BE
DIFFICULT TO ASCERTAIN AND THE AMOUNT STIPULATED HEREIN IS A REASONABLE
ESTIMATE OF SUCH DAMAGES.
What if they keep stalling on work and I get sick of waiting for them and
want to look for someone else?
12. PAYMENT SCHEDULE: DEDUCTIBLE DUE UPON INSURANCE PROVIDER APPROVAL.
FIFTY
PERCENT (50) OF THE TOTAL AGREEMENT AMOUNT DUE UPON DATE OF DELIVERY OF
APPLICABLE MATERIALS. BALANCE DUE UPON COMPLETION OF WORK. ALL PAYMENTS
MUST
BE MADE TO THE COMPANY. ONLY PAYMENTS MADE TO AND RECEIVED BY THE COMPANY
WILL BE CONSIDERED TO SATISFY THE PAYMENT OF THIS AGREEMENT. PAYMENT
SCHEDULE SHALL NOT BE AMENDED WITHOUT THE PRIOR WRITTEN APPROVAL OF THE
COMPANY.
Is this normal? Btw, it's not quite what the contractor's rep said when he
came to do a preliminary look-see. He said on the roof that they get 1/3
when they get the materials, 1/3 when they "start driving nails" and 1/3
when I was happy with the job.
15. DURING THE DURATION OF THE WORK, THE CUSTOMER'S HOMEOWNERS INSURANCE
WILL BE RESPONSIBLE FOR ANY INTERIOR DAMAGE AS LONG AS THE COMPANY HAS
TAKEN
APPROPRIATE ACTION TO PROTECT THE ROOF DURING THE REPAIR OF THE ROOF.
When could this be an issue?
17. THE COMPANY IS NOT RESPONSIBLE FOR PRE-EXISTING CONSTRUCTION
DEFICIENCIES THAT MANIFEST THEMSELVES DURING THE CONSTRUCTION PROCESS,
I.E.
NAIL POPS, WOODROT, DECKING DEFLECTION, ETC. IF A CONSTRUCTION PROBLEM IS
POINTED OUT PRIOR TO CONSTRUCTION AND COMPANY IS NOTIFIED IN WRITING,
COMPANY WILL TRY TO ASSIST CUSTOMER TO CORRECT THE PROBLEM(S) ON A TIME
AND
MATERIAL BASIS.
They seem to be referring largely to decks here which isn't an issue in my
case, but what is a "nail pop"? Any way it could apply to a roofing job?
19. COMPANY ACCEPTS NO LIABILITY TO INDEMNIFY OR HOLD CUSTOMER HARMLESS
FOR
DAMAGES TO PERSONS OR PROPERTY, EXCEPT THOSE THAT ARE THE DIRECT RESULT OF
COMPANY'S NEGLIGENT ERROR OR OMISSION WHICH OCCUR DURING PERFORMANCE OF
THE
COMPANY'S WORK. COMPANY DISCLAIMS ANY AND ALL LIABILITY FOR DAMAGES TO
PERSONS OR PROPERTY RESULTING FROM MOLD GROWTH WITHIN ANY PART OF THE
BUILDING ENVELOPE DUE TO MOISTURE ENTERING THE BUILDING ENVELOPE PRIOR TO
COMPANY'S COMPLETION OF INSTALLATION OF THE ROOF SYSTEMS/MEMBRANE, SIDING,
WINDOW AND GUTTER SYSTEMS OR AS THE RESULT OF DAMAGE TO OR PENETRATION OF
THE INSTALLED ROOF SYSTEMS/MEMBRANE, SIDING, WINDOW AND GUTTER SYSTEMS BY
OTHERS. CUSTOMER UNDERSTANDS AND AGREES THAT COMPANY SHALL HAVE NO
RESPONSIBILITY AT ANY TIME AFTER COMPLETION OF THE WORK FOR DAMAGES OF ANY
KIND TO PERSONS OR PROP
ERTY LOCATED BELOW THE INSTALLED ROOF SYSTEMS/MEMBRANE, SIDING, WINDOW AND
GUTTER SYSTEMS, WHETHER OR NOT SUCH DAMAGES RESULT FROM (A) LEAKS OR
WEATHER-ORIENTED SOURCES OR (B) MOLD GROWTH.
Any problems here?
20. THE COMPANY'S MONETARY DAMAGE LIABILITY FOR ANY CLAIM OF PROPERTY
DAMAGE
ARISING OUT OF THE COMPANY'S PERFORMANCE OR NON-PERFORMANCE OF THIS
AGREEMENTSHALL NOT EXCEED THE TOTAL AGREEMENT AMOUNT.
I'm fuzzy on what's considered "the total agreement amount".
23. FLORIDA LAW APPLIES TO THIS AGREEMENT. ANY LEGAL PROCEEDING RELATING
TO
THIS AGREEMENT SHALL BE FILED EXCLUSIVELY WITH THE COUNTY OR CIRCUIT COURT
OF ORANGE COUNTY, FL. THE RIGHT TO JURY TRIAL IS WAIVED.
The right to a jury trial is waived? Could this come back to bite me? I
wonder under what circumstances it could become an issue.
24. THIS AGREEMENT IS COMPOSED OF THIS BACK PAGE, THE FRONT SIDE OF THE
AGREEMENT AND A SEPARATE PAGE WHICH CONTAINS A MANDATORY FLORIDA
DISCLOSURE
REGRADING CONSTRUCTION LIEN LAW. AND ALL MATTERS INCORPORATED HEREIN BY
REFERENCE AND SHALL BE CONSIDERED THE ENTIRE AGREEMENT BY THE PARTIES.
Any thoughts?
What I'm looking for is if you feel these seem like normal, reasonable
provisions or if you see anything that's questionable.
Thanks for all shared wisdom.