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