Real Estate Subcontractor Agreement
Real Estate Subcontractor Agreement
This Real Estate Subcontractor Agreement ("Agreement") is made and entered into on [Date] by and between [Your Company Name], with its principal place of business located at [Your Company Address] ("Contractor"), and [Subcontractor Name], with its principal place of business located at [Subcontractor Address] ("Subcontractor").
WHEREAS, the Contractor is engaged in the business of commercial real estate development and has entered into a contract dated [Original Contract Date] with [Client Name] ("Client") for the project known as [Project Name] located at [Project Location] ("Project");
WHEREAS, the Contractor desires to subcontract certain work to the Subcontractor, and the Subcontractor agrees to perform such work under the terms and conditions set forth in this Agreement;
NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
I. Scope of Work
A. General Services: The Subcontractor shall perform all necessary labor, services, and tasks to complete the electrical installation for the Project. This includes, but is not limited to, laying down all electrical wiring, installing electrical panels, outlets, and lighting fixtures, and ensuring that all electrical work complies with the local electrical code and standards.
B. Specific Tasks: The Subcontractor is responsible for the following specific tasks:
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Installation of electrical wiring throughout the Project building.
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Installation of a central electrical panel and two sub-panels on each floor.
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Installation of 100 electrical outlets and 50 lighting fixtures.
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Testing of all installed electrical components to ensure functionality and safety.
C. Quality and Compliance: All work performed by the Subcontractor must meet the quality standards and compliance requirements set forth by the National Electrical Code and local regulations. The Subcontractor agrees to rectify, at their own expense, any work found to be in violation of these standards within 14 days of notification by the Contractor.
D. Project Timeline: The Subcontractor agrees to commence work on [Date] and to complete all electrical installation services by [Date]. The Subcontractor shall coordinate with the Contractor to ensure work is completed in accordance with the overall project timeline.
II. Payment Terms
A. Total Compensation: The Contractor agrees to pay the Subcontractor a total amount of $75,000 for the satisfactory completion of all services outlined in the Scope of Work.
B. Payment Schedule: Payment will be made to the Subcontractor according to the following schedule:
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An initial payment of $15,000 upon commencement of work on [Date].
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A second payment of $30,000 upon completion of 50% of the specified tasks, to be verified by inspection by [Date].
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A final payment of $30,000 upon completion of all tasks, as specified in the Scope of Work, and a final inspection verifying that the work complies with all standards and regulations, no later than [Date].
C. Invoices: The Subcontractor shall submit invoices for payment according to the payment schedule. Each invoice must detail the work completed and corresponding to the payment period. The Contractor agrees to pay each invoice within 30 days of receipt, provided the work has been satisfactorily completed and verified.
D. Additional Work: Any additional work beyond the Scope of Work specified in Section I will require a written amendment to this Agreement, including agreement on additional compensation. Such amendments must be signed by both parties before additional work commences.
E. Late Payments: In the event of late payment by the Contractor beyond the 30-day period, interest shall accrue on the unpaid amount at a rate of 1.5% per month until payment is made in full.
F. Expenses: The Subcontractor is responsible for all costs and expenses related to the performance of the work outlined in the Scope of Work unless otherwise agreed upon in writing by the Contractor. This includes, but is not limited to, the cost of materials, tools, and labor.
III. Timeline
A. Commencement Date: The Subcontractor shall begin the execution of the specified services on [Date].
B. Completion Date: The Subcontractor agrees to complete all services outlined in the Scope of Work no later than [Date].
C. Delays: If the Subcontractor anticipates any delay in the completion of the project beyond the agreed completion date, they must notify the Contractor in writing at least 14 days before the completion date. The notification must include the reason for the delay and an estimated new completion date.
D. Penalties for Delay: In the event that the Subcontractor fails to complete the services within the agreed timeline without a valid reason, a penalty of $500 per day of delay may be applied, at the discretion of the Contractor.
IV. Quality and Standards
A. Compliance with Standards: The Subcontractor is required to ensure that all services performed adhere to the highest quality standards and comply with all relevant local, state, and federal regulations, including the National Electrical Code and local building codes.
B. Inspections: The Contractor reserves the right to inspect the work performed by the Subcontractor at any stage. If any part of the work is found to be unsatisfactory, the Subcontractor is required to correct the work at their own expense within 7 days of notification.
C. Materials and Equipment: The Subcontractor agrees to use only high-quality materials and equipment approved by the Contractor for all work performed under this Agreement. All materials and equipment shall meet or exceed industry standards.
V. Licenses and Permits
A. Subcontractor’s License: The Subcontractor warrants that they hold all necessary licenses and certifications required to perform the electrical installation services in the jurisdiction where the Project is located and will maintain these licenses and certifications throughout the term of this Agreement.
B. Permits: The Subcontractor is responsible for obtaining any permits required for the execution of the work described in the Scope of Work. All costs associated with obtaining these permits shall be borne by the Subcontractor.
C. Compliance with Laws: The Subcontractor shall ensure that all work performed under this Agreement complies with all applicable laws, ordinances, regulations, and codes. The Subcontractor shall promptly correct, at their own expense, any violation of such laws or regulations that occurs because of their failure to comply with this provision.
D. Notification of Violations: If the Subcontractor becomes aware of any violations of laws, ordinances, regulations, or codes related to the work performed under this Agreement, they must immediately notify the Contractor in writing.
VI. Insurance and Liability
A. Insurance Coverage: The Subcontractor shall maintain, at their own expense, the following minimum insurance coverages: General Liability Insurance with a limit of not less than $1,000,000 per occurrence and Workers' Compensation Insurance in compliance with the applicable state laws. Proof of such insurance shall be provided to the Contractor prior to the commencement of work.
B. Liability for Damages: The Subcontractor shall be liable for any damages or injuries caused by their negligence or failure to comply with the terms of this Agreement. The Subcontractor agrees to indemnify and hold the Contractor harmless from any claims, damages, losses, and expenses, including reasonable attorneys' fees, arising out of such negligence or failure.
VII. Termination
A. Termination for Cause: Either party may terminate this Agreement if the other party breaches any of its terms and fails to cure such breach within 30 days of written notification.
B. Termination for Convenience: The Contractor may terminate this Agreement at any time for convenience with 14 days written notice to the Subcontractor. In such an event, the Subcontractor shall be compensated for all work performed up to the date of termination, subject to the terms of this Agreement.
C. Effect of Termination: Upon termination, the Subcontractor shall immediately cease all work under this Agreement. Any provisions of this Agreement that by their nature should survive termination will remain in effect after termination, including confidentiality obligations and liability for prior conduct.
VIII. Dispute Resolution
A. Negotiation and Mediation: In the event of a dispute arising under this Agreement, the parties agree to first attempt to resolve the dispute through good faith negotiation. If the dispute cannot be resolved through negotiation, the parties agree to mediation before a mutually agreed-upon mediator.
B. Arbitration: If mediation fails to resolve the dispute, the parties agree to submit the dispute to binding arbitration. The arbitration shall be conducted in accordance with the rules of the American Arbitration Association, and the decision of the arbitrator(s) shall be final and binding on both parties.
IX. Confidentiality
The Subcontractor agrees not to disclose or use any confidential information provided by the Contractor without prior written consent, except as necessary to perform under this Agreement. This obligation shall survive the termination of this Agreement.
X. Miscellaneous Provisions
A. Assignment: This Agreement may not be assigned by the Subcontractor without the prior written consent of the Contractor.
B. Amendments: No amendment to this Agreement shall be effective unless it is in writing and signed by both parties.
C. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the state in which the Project is located.
D. Notices: All notices required or permitted under this Agreement shall be in writing and shall be deemed given when delivered personally or three days after being sent by registered or certified mail to the address specified in this Agreement.
Signatures
This Agreement is entered into and becomes effective as of the date first above written.
Contractor
[Name]
[Position]
[Date]
Subcontractor
[Name]
[Position]
[Date]
