TERMS & CONDITIONS
The following Additional Terms and Conditions are hereby incorporated into the original agreement or contract for work by Client/Promisor and the Company/Payee (the “Main Agreement”). All references to “Main Agreement” shall be deemed to incorporate these Additional Terms and Conditions. Should any item in these Additional Terms and Conditions conflict with any item of the Main Agreement, the terms of the Main Agreement shall be controlling and supersede these Additional Terms and Conditions:
Article 1
Contingencies, Commencement, and Completion
Our ideals are simple: Deliver innovative, original home designs of exceptional quality while providing a pleasant buying experience for the customer. These ideals have helped our company grow for the past 18+ years. Our dedication to quality and the consumer experience set us apart from the competition. When you entrust our builders to create your home, remodel, or addition, it is our goal that you would always experience attentive, personalized, and transparent service before, during, and after construction. From the moment you begin the journey of building your home or addition, or remodeling your home, we’ll provide you with an exceptional experience that will keep you inspired, excited, and informed every step of the way.
1. The Main Agreement is not contingent on Client obtaining a construction loan. Client shall provide notice in a timely manner to Company if the Main Agreement is contingent on Client obtaining a construction loan. If no such loan or authorization to commence work is obtained on or before the contingency deadline, neither the Client nor the Company shall have any further obligations under the Main Agreement.
2. Work on the Construction Project will commence no later than 45 days after the Effective Date of the Main Agreement, or after Company receives notice from Client of approval. Contingent upon weather, the Construction Project is scheduled to be completed within 30 days of the Start of Project Date, unless modified by change order as defined herein.
Article 2
Change Orders
From time to time during the performance of work under the Main Agreement, there may be changes required or requested to the scope of work, price, and time for completion, under the Main Agreement. All such proposed changes will be submitted to the other Party in writing containing the following information: proposal date, the change requested, explanation of how that will affect the cost or time of completion and signed by the proposing party. When both parties have signed to acknowledge their approval of such a proposal, it will be designated as a “Change Order” and will then be incorporated into the Main Agreement and is binding on both parties.
Article 3
Additional Provisions
1. Company will obtain, at its own cost, all necessary permits and permissions to perform the work required for the Construction Project.
2. Company will maintain, throughout the duration of the Main Agreement, all legally required licensure and permissions to perform the work required for the Construction Project. To the extent it is permitted by law, Company may subcontract portions of work to properly qualified and, if required, licensed subcontractors upon advance notice to Client and ensuring that prompt and proper payment is made to such subcontractors as will avoid any liens being placed on the Property.
3. Client will provide Company, and its employees, agents, and subcontractors, reasonable access to the Property for purposes of conducting work on the Construction Project.
4. During the course of work on the Construction Project, Client or Client’s designated agent, will have access to the Property for purposes of inspection, appraisal, and work evaluation. Such access and inspections will be conducted at reasonable times, with advance notice to Company when reasonably practicable, and in a manner not to obstruct the progress of construction. Company will be responsible to properly dispose of all construction materials and debris from the Property from the Commencement Date until the date of completion outlined in this proposal.
5. “Hazardous Materials” means any substance commonly referred to, or defined in any Law, as a hazardous material or hazardous substance (or other similar term), including but not be limited to, chemicals, solvents, petroleum products, flammable materials, explosives, asbestos, urea formaldehyde, PCB’s, chlorofluorocarbons, freon or radioactive materials. Company will be responsible to comply with legal regulations regarding the removal and disposal of Hazardous Materials at its own cost unless otherwise specified in the Main Agreement. Company will indemnify Client for any damages resulting from improper handling or disposal of Hazardous Materials at or from the Property from the Commencement Date until the date a certificate of occupancy is issued to the Client.
6. Utility services to the Property during the time of construction will be arranged for and paid by the Client. In the event there is no access to electrical services, the Client shall be responsible for any additional charges associated with alternative power sourcing (i.e., operational costs associated with running generators, solar power sourcing, etc.)
7. In the event of destruction of the Property, in whole or in part, from the Commencement Date until the date of completion outlined herein, either party will have the right to terminate the Main Agreement contingent upon the payment in-full to the Company for work completed, unless damage and/or destruction was due to Company’s gross negligence.
8. Company will not be deemed in breach of the Main Agreement or have liability to Client for failure to perform obligations under the Main Agreement if the failure is due in whole or in substantial part to strikes, acts of God, unavailability of specified labor or materials, war, acts of terror, or other causes beyond the reasonable control of Company.
Article 4
Substantial Completion and Punch List
Company will provide notice to Client when the Construction Project is substantially complete. Client will inspect the Construction Project within 24 hours after receiving such notice and deliver to Company a “punch list” of deficiencies found on the Construction Project. Company will promptly correct the matters identified on the punch list. The Client may withhold from final payment to the Company a reasonable estimate of the cost to correct the punch list items, until such items are corrected.
Article 5
Warranties
1. Company warrants and represents that it is duly licensed to perform the work under this Construction Agreement, and will perform such work in a workmanlike manner, in compliance with all applicable laws, regulations, codes, restrictive covenants, and homeowners’ association requirements, with new materials meeting the standards set for in the Main Agreement, including plans and specifications incorporated therein. Unless otherwise stated in the Main Agreement, Company shall perform all work pursuant to applicable laws, regulations, and codes. Client bears all responsibility to share with Company any additional restrictions, regulations, or codes that differ from the applicable restrictions, regulations, or codes as publicly promulgated by the county, city, or municipality where the worksite is located.
2. Client represents that they are the legal owner of the Property or otherwise has full legal authority to enter into the Main Agreement without approvals from any other person or entity, that the requested work as outlined in the plans and specifications are in compliance with all applicable laws, regulations, codes, restrictive covenants, and homeowners’ association requirements, and that Client has the financial ability to pay the compensation to the Company, and any reasonable adjustments thereto via change orders, when due and that Client will make such payments.
3. Both Parties will execute and deliver to the other or to third parties any and all documents necessary to effectuate the provisions of the Main Agreement, including construction permits, certificate of occupancy, and any other documents.
Article 6
General Terms
1. The Main Agreement may not be assigned by either Party without written consent of the other Party and such consent is not to be unreasonably withheld. Any notice required or permitted under the terms of the Main Agreement shall be provided to the contact information, above.
2. If any provision of the Main Agreement is found to be invalid, illegal, or unenforceable, the remaining portions shall remain in full force and effect and the invalid, illegal, or unenforceable portions of the Main Agreement shall be rewritten by a judge or arbitrator to achieve the parties desired outcome pertaining to the stricken verbiage.
3. The Main Agreement is governed and is to be interpreted under the laws of the State of Tennessee.
4. Any controversy or claim arising out of or relating to the Main Agreement, or the breach thereof, shall be settled by arbitration, to be held exclusively in Nashville, Tennessee, and administered by the American Arbitration Association in accordance with its Construction Industry Arbitration Rules and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
5. The Main Agreement will be binding upon and inure to the benefit of the Parties and, if applicable, to their trustee, successor, executor or administrator, or heirs.
6. In the event of conflict between the documents incorporated into the Main Agreement, the specifications will take precedence over the plans, and the plans will take precedence over this document.
7. The Main Agreement, and the documents incorporated herein, and any change orders created per the process outlined in Section 2.1, represent the entire agreement between the Parties and can only be modified in writing signed and dated by both Parties.
8. If any part of this Contract is reliant upon the financial participation of any 3rd Party (subcontractor, relative, construction loan, etc.) and such 3rd Party fails to deliver on their portion of the agreement by the specified deadline, this Contract shall be null and void. Should 3rd Party contribute their portion after the specified deadline, a new contract shall then be issued in CHANGE ORDER format.
9. Should Company have to pursue, enforce, or attempt to enforce any of its rights under this Agreement, whether in an event of Client breach or otherwise, Client agrees to pay all attorney’s fees and associated costs actually incurred by the Company.
Article 7
Indemnification
Client/Representative shall indemnify, defend, and hold harmless Company, its officers, directors, employees, subcontractors and each of them from and against any and all claims, demands, actions, judgments, costs, and expenses, including attorney’s fees thereof arising from any acts of negligence, gross negligence, or misconduct, whether it be intentional or unintentional, of the Client, its suppliers, associates, employees, agents or contractors, including but not limited to Company’s reliance upon any schematics, specifications, blueprints, or provisions of local or state code.
Article 8
Termination
1. Termination by the Company for Nonpayment. If the Client fails to make payment as provided in the Main Agreement for a period of 30 days or more, the Company may, upon seven additional days’ notice to the Client, terminate the Main Agreement and recover from the Client payment for all work performed and costs incurred by Company, including reasonable overhead and profit, costs incurred by reason of such termination, and damages, including attorney’s fees in pursuing Company’s rights under the Main Agreement.
2. Termination by the Company for Hostile Work Environment. Should the Client, Client’s agents, or Client’s invitees to the worksite, whatever the relation to Client that may be, engage in conduct (physical, verbal, written, or otherwise) which Company deems to be hostile in nature, endangers Company, Company’s agents, subcontractors, or others, Company will provide written notice to Client. Should that behavior not cease within a reasonable amount of time or reoccur during the duration of the work, Company shall have the right to terminate the Main Agreement and have the same rights is Article 8, Section 1 above in recovering amounts due, owed, and incurred.
3. Termination by the Client for Cause. The Client may terminate the Main Agreement if the Company:
a. repeatedly refuses or fails to supply enough properly skilled workers or proper materials;
b. repeatedly disregards applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of a public authority; or
c. otherwise is guilty of substantial breach of a provision of the Main Agreement.
4. Termination by the Client for Convenience. The Client may, at any time, terminate the Main Agreement for the Client’s convenience and without cause pursuant to this section. The Client shall pay the Company for work executed; and costs incurred by reason of such termination, including costs attributable to termination of subcontracts; and a termination fee, if any, as follows:
a. A convenience cancellation fee of 20% of the total contract price in addition to funds already paid for work and materials already completed in order to cover overhead, Company administrative time, and time, costs, and other expenses related to obligations in the event of early termination.