Standard Form of Agreement
Between Owner and Contractor
Where the basis of payment is a STIPULATED SUM
Agreement
Made as of the ___ day of _____________in the year of two thousand and Three.
Between the Owner:
(Name and Address)
and the Contractor:
(Name and Address)
________________________
4719 Western Avenue
Los Angeles, CA 90062
S J Construction, LLC
2111 E 51 SR St
Vernon, CA 90058
For the following Project:
(Include detailed description of Project, location, address and scope.)
Construction of approximately 12,990 SF, three story, 21 unit multi-family, low income
housing.
The Construction Manager is: Michael Phillips
(Name and Address)
2111 E 51 SR St
Vernon, CA 90058
The Owner and Contractor, Architect and Designer agree as set forth below.
Article 1
THE CONTRACT DOCUMENTS
The Contract Documents consist of this Agreement, Conditions of the Contract (General, Supplementary and other
Conditions). Drawings, Specifications, Addenda issued prior to execution of this Agreement, other documents listed
in this Agreement and Modifications issued after executor of this Agreement; these form the Contract, and are as
fully a part of the Contract as if attached to this Agreement or repeated herein. The Contract represents the entire and
integrated agreement between the parties hereto and supersedes prior negotiations, representations or agreements,
either written or oral. An enumeration of the Contract Documents, other than Modifications, appears in Article 9.
The A201-2007, General Conditions of Contract for Construction are hereby incorporated by reference and apply to
this Contract.
Article 2
THE WORK OF THIS CONTRACT
The Contractor shall execute the entire Work described in the Contract Documents, except to the extent specifically
indicated in the Contract Documents to be the responsibility of others, or as follows:
Exclusions:
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•
•
•
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All permit and city fees
All DWP, Socal Gas (if any) fees
All Inspection fees including deputy Inspections
All appliances
All bike racks (I think we can get these from Joe and return them to him after Occupancy)
All utility fees
All Architectural and Engineering fees
Article 3
DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION
3.1 The date of commencement is the date from which the Contract Time of Paragraph 3.2 is measured, and shall be
the date of the Agreement, as first written above, unless a different date is dated below or provisions is made for the
date to be fixed in a notice to proceed issued by the Owner.
Construction shall commence when the house will be delivered vacant to the contractor and permits issued by the
city of Los Angeles and shall be completed within 540 days after this date.
3.2 The Contractor shall achieve Substantial Completion of the entire Work no later than 540 calendar days from
start of construction, subject to adjustments of this Contract Time as provided in the Contract Documents.
Article 4
CONTRACT SUM
4.1 The Owner shall pay the Contractor in current funds for the Contractor’s performance of the Contract the
Contract Sum of Two Million Nine hundred Thirteen thousand Nine Hundred Twenty Dollars ($2,913,920), subject
to additions and deductions as provided in the Contract Documents.
4.2 The Contract Sum is based upon the following alternates, if any, which are described in the Contract
Property shall be turn-key. All finishes shall be selected and installed by contractor.
4.3 Unit prices, if any, are as follows:
See Exhibit ‘A’
4.4 Exclusions, if any, in the Contract Sum are as follows:
•
•
•
•
•
•
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All permit and city fees
All DWP/Edison, Socal Gas (if any) fees
All Inspection fees including deputy Inspections
All appliances
All bike racks
All utility fees
All Architectural and Engineering fees
Article 5
PROGRESS PAYMENTS
5.1 Based upon Applications for Payment submitted by the Contractor to the Construction Manager, and upon
Project Applications and Certificates for Payment issued by the Construction Manager and Architect, the Owner
shall make progress payments on account of the Contract Sum to the Contractor as provided below and elsewhere in
the Contract Documents.
5.2 The period covered by each Application for Payment shall be one calendar month ending on the last day of the
month, or as follows:
Application for payment shall be made no less than every two weeks, or in accordance with Owner’s lenders
policies.
5.3 N/A
5.4 Each Application for Payment shall be based upon the Schedule of Values submitted by the Contractor in
accordance with the Contract Documents. The Schedule of Values shall allocate the entire Contract Sum among the
various portions of the Work and be prepared in such form and supported by such data to substantiate its accuracy as
the Construction Manager or Designer may require. This schedule, unless objected to by the Construction Manager
or Designer, shall be used as a basis for reviewing the Contractor’s Applications for Payment.
5.5 Applications for Payment shall indicate the percentage of completion of each portion of the Work as of the end
of the period covered by the Application for Payment.
5.6 Subject to the provisions of the Contract Documents, the amount of each progress payment shall be computed as
follows:
5.6.1 Take that portion of the Contract Sum properly allocated to completed Work as determined by
multiplying the percentage completion of each portion of the Work by the share of the total Contract Sum allocated
to that portion of the Work in the Schedule of Values, less retainage of Zero percent (0%). Pending final
determination of cost to the Owner of changes in the Work, amount not in dispute may be included as provided in
Subparagraph 7.3.7 of the General Conditions;
5.6.2 N/A
5.6.3 Subtract the aggregate of previous payments made by the Owner; and
5.6.4 Subtract amount, if any, for which the Construction Manager or Designer has withheld or nullified a
Certificate for Payment as provided in Paragraph 9.5 of the General Conditions.
5.7 The progress payment amount determined in accordance with Paragraph 5.6 shall be further modified under the
following circumstances:
5.7.1 Add, upon Substantial Completion of the Work, a sum sufficient to increase the total payments to
_______________ percent (_____________%) of the Contract Sum, less such amounts as the Construction Manager
recommends and the Designer determines for incomplete Work and unsettles claims; and
5.7.2 Add, if final completion of the Work is thereafter materially delayed through no fault of the
Contractor, any additional amounts payable in accordance with Subparagraph 9.10.3 of the General Conditions.
5.8 Reduction or limitation of retainage, if any, shall be as follows:
N/A
5.9 The Contractor agrees that all work, materials and equipment covered by an Application for Payment will
transfer to the Owner free and clear of all liens, claims, security interests or encumbrances upon payment by the
Owner. The Contractor shall provide mechanic’s lien waivers and lien releases in accordance with the Civil
Code conditioned only upon receipt of payment from all persons who may be potential lien claimants with each
Application for Payment. The Owner's obligation to disburse the Final Payment may be conditioned upon
Contractor providing final unconditional lien releases from all persons who may be potential lien claimants.
5.10 In addition to providing lien releases, Contractor shall indemnify, defend and hold Owner harmless from and
against any and all liens and charges of every type, nature, kind or description which may at any time be filed or
claimed against the Project, or any portion thereof, or the improvements situated thereon, including attorneys’
fees, as a consequence, direct or indirect, of any act or omission of Contractor, his agents, servants, employees,
suppliers, subcontractors, or any or all of them. If any lien, stop notice or claim is recorded or served in
connection with the Work, Contractor shall, within 20 days and at its own expense, record or file, or cause to be
recorded or filed, in the office of the county recorder in which the lien or claim was recorded, or with the
person(s) on whom the stop notice was served, a bond executed by good and sufficient surety, and approved by
Owner, in a sum equal to one hundred fifty percent (150%) of the amount of such lien, stop notice or claim,
which bond shall guarantee the payment of any amounts which the claimant may recover on the lien, stop notice
or claim, together with the claimant’s costs or suit in the action if the claimant recovers therein. If Contractor
fails to cause any lien to be removed from the Project or any stop notices or other notices to be negated, Owner
may employ whatever means it may, in its sole discretion, to cause the lien to be removed, and the effect of any
stop notices or other notices to be negated. Contractor shall, upon demand, reimburse Owner for all costs,
including without limitation actual attorneys’ fees incurred by Owner in connection with any suit, lien or stop
notice. Owner may offset any such costs against amounts otherwise owing to Contractor hereunder.
5.11 FINAL PAYMENT
Final payment, constituting the entire unpaid balance of the Contract Sum, shall be made by the Owner to the
Contractor when (1) the Contract has been fully performed by the Contractor except for the Contractor’s
responsibility to correct nonconforming Work as provided in Subparagraph 12.2.2 of the General Conditions and to
satisfy other requirements, if any, which necessarily survive final payment; and (2) a final Project Certificate for
Payment has been issued by the Construction Manager and Designer; such final payment shall be made by the
Owner not more than 30 days after the issuance of the final Project Certificate for Payment or as agreed upon by
Owner’s lender, or as follows:
Within thirty (30) days after issuance of the final Project Certificate for Payment and acceptance of the Work by
Owner and as agreed upon by Owner’s lender, Owner shall pay the Contractor all amounts remaining to be paid
under the Contract, provided, however, that Contractor shall have first delivered to Owner the following: a
statement from Contractor warranting that all payments have been made to all subcontractors and materialmen; final
unconditional lien releases from all subcontractors and materialmen that may not have been previously delivered to
Owner. If there shall remain any minor items of work to be done at such time, Contractor and Owner shall list such
items and Contractor shall complete such work within a reasonable time, but no greater than 60 days, unless
otherwise agreed to in writing by Owner.
Article 6
DISPUTE RESOLUTION
6.1 Binding Dispute Resolution
For any Claim subject, but not resolved by mediation pursuant to Section 15.3 of AIA Document A201-2007, the
method of binding dispute resolution shall be Arbitration pursuant to Section 15.4 of AIA Document A201-2007.
Article 7
MISCELLANEOUS PROVISIONS
7.1 Where reference is made in this Agreement to a provision of the General Conditions or another Contract
Document, the reference refers to that provision as amended or supplemented by other provisions of the Contract
Documents.
7.2 Payments due and unpaid under the Contract shall bear interest from the date payment is due at the rate stated
below, or in the absence thereof, at the rate prevailing from time to time at the place where the Project is located.
(Insert rate of interest agreed upon, if any.)
12% APR interest for invoices not paid after 7 calendar day;
7.3 Temporary facilities and services:
Included in contractor bid.
7.4 Other Provisions:
(Here list special provisions affecting the Contract.)
Owner agrees that owner, or any other person employed by owner, shall NOT duplicate the design of this house for
any other site.
Article 8
TERMINATION OR SUSPENSION
8.1 The Contract may be terminated by the Owner or the Contractor as provided in Article 14 of AIA Document
A201-2007;
8.2 The Work may be suspended by the Owner as provided in Article 14 of AIA Document A201-2007.
Article 9
ENUMERATION OF CONTRACT DOCUMENTS
9.1 The Contract Documents, except for Modification issued after execution of the Agreement, are enumerated as
follows:
9.1.1 The Agreement is this executed Standard Form of Agreement Between Owner and Contractor and design
documents approved by the City of Los Angeles Depart of Building and Safety.
9.1.5 The Drawings are as follows, and are date________________________ unless a different date is shown
below:
(Either list the Drawings here or refer to an exhibit attached to this Agreement)
DOCUMENT
TITLE
PAGES
Printed Drawings – Permit Set
Article 10
INSURANCE AND BONDS
The Contractor shall purchase and maintain insurance and provide bonds as set forth in Article 11 of AIA Document
A201-2007.
Type of Insurance
General Liability
Worker’s Compensation
Automobile Liability
Limit of Liability
$2,000,000 each occurrence
$1,000,000.00 each employee, $1,000,000.00 each
accident
$2,000,000 bodily injury and property damage each
occurrence and in the annual aggregate
This Agreement entered into as of the day and year first written above and is executed in at least four original copies
of which one is to be delivered to the Contractor, one each to the Construction Manager and the Designer for use in
the administration of the Contract, and the remainder to the Owner.
OWNER
CONTRACTOR
(Signature)
(Signature)
Michael Phillips, AIA, RA, CCM
(Printed name and title)
(Printed name and title)