PROJECTS SERVICES                                                                                 CONTRACT AGREEMENT (01/19/25)

¤ All Estimates/Proposals/Offer-of-work/Specifications express a rough order-of-magnitude /working number / no-less-than-value and serve as a discussion starting point for work proposed based on our understanding of Client's intent. Any representation is our best attempt to forecast anticipated costs based on initial conversations and correspondences by either phone, email and/or preliminary non-binding site visit.  At no time does this document/statement/guess guarantee final cost or completion date. All Estimate/Proposals are non-binding, do not have an expectation of accuracy, is not intended to be solely relied on to make decisions, and may not reflect the actual conditions that will be met during the performance of work.

¤ Total time committed to a Free Estimate/Proposal/Offer is < 1 hour, including site visit. A more detailed estimate, price breakdown, required specifications, subcontractors’ quotes, mockups, schematics, and/or owners' renderings are available for an additional fee and may be more accurate.

¤ A “Lump Sum / Hard Bid” tender can be requested by Client. Client to provide specifications, drawings, selections, and include General Contractor or its designated Affiliates (GC) in the design process from the beginning. GC to charge 1% of bid amount as a fee payable when bid is submitted to Client regardless of award. GC to credit the fee if awarded work. (In other words, unless Client requests, provides all the specifications, includes GC in the design process and agrees to pay 1% of bid as a fee before award or project, all work, including pre-construction activities, default to a time-and-material/Cost-plus-reimbursement arrangement when performed).

¤ Estimate is based on costs typically associated with this type of project, principals' years of construction experience and/or previous projects costs and/or cursory material cost and/or labor productivity rates and/or estimates of other specialty subcontractors.

¤ Calculations represented are of approximate areas, volume, counts, and scope. Additional counts may be needed to complete the work.

¤ Estimate/Proposal/Scope Email/ any documents detailing work to be delivered serves as the scope basis of this agreement / contract. Changes or additions to original scope are to be handled as Scope Modification Requests (Change Orders) or simply permitting Time & Material to accrue in the completion of the additional/change scope.

¤ Schedule production labor rates are based on optimal conditions with working hours between 10am to 4pm, 6 hours per day, 5 days a week. Optimal "Goldilocks" conditions are: Appropriate weather for type of work, no labor shortage due to skills or availability, timely delivery of all necessary materials supplied, availability of all prerequisite materials in proximity, timely decisions from Client, no comeback delays of any type, and no holidays/world events. Any variation will impact project duration.

¤ STANDARD EXCLUSIONS (defaults to Time & Material if/when done): Procurement, Design, Mobilization, Access, Staging, furnishing removal & reinstall, Fabrications, Customization and Modifications of any standard off-the-shelf product or material, Final paint color /finishes, Thresholds/Transitions details, Demobilization, Equipment rental, Concealed conditions, Burdens/Site Management fees, Ferry fares, Mileage, Special disposals, and WST.

¤ Client consents to audio and/or video/text recording of meetings, site work, phone calls, and other communications related to the project used solely for: Project documentation and communication, Safety and performance reasons, and Potential dispute resolution reference. This agreement serves as a notification to all parties. Voice recordings shall not be shared with third parties without explicit written consent.

¤ Client has the right to, either for cause or convenience, terminate work, iterates any design schemes and changes before and during work. Client directs the approach, level, and extent of work. Client can stop the work at any time for any reason. Client can elect to procure any and all materials required (GC to be reimbursed for incidentals, overhead, and handling fee-for-service on items procured by Client but installed by GC)

¤ GC to disclose concealed or differing site conditions after discovery.

¤ Unconventional, non-standard or atypical or concealed conditions found on site are excluded from estimate/proposal or agreement. ALL corrective action on the conditions discovered will be addressed on an hourly basis.

¤ All unspecified, unknown, or undefined scope necessary to complete project or work will be performed on a Time-and-Material/Cost-plus-reimbursement basis.

¤ WASHINGTON LEAD DISTURBANCE protocol will be enacted if Lead is found in houses built pre 1978. ASBESTOS TESTING and DISTURBANCE protocol will be enacted if Asbestos is found on property.

¤ WA State LNI Disclosure Statement Notice to Clients for contractor to be filled with agreement. 

¤ Electrical and Plumbing work requiring licensed technicians is excluded from estimate unless specified.

¤ This agreement serves as notification that permit(s) may be required for work proposed. Client is responsible for all costs associated with permitting, regulatory, jurisdictional compliances and inspections. GC to apply, schedule and manage permit(s) process or jurisdictional requirements upon written request from Client for a 10% management fee. If no written request from client and no fee was paid to GC and a permit(s) is later found to be required, Client to pay for all fees, penalties, and back charges associated with permit(s) or jurisdictional requirements.  If no permit was applied by Client, or requested in writing and fee paid to GC to apply on Client’s behalf, Client holds GC harmless of all fines, penalties and corrective requirements triggered by permit(s). GC will not be liable for ANY permit(s) or jurisdictional fees of any kind unless expressly requested and specified in writing AND a management fee paid by Client.

¤ Client to remove and store all personal furnishings before work start. (GC is available to assist, if needed, on an hourly basis).

¤ GC is NOT responsible for loss, breaks and handling damage done on existing used Client items due to poor condition when item is being reinstalled for the Client’s benefit.

¤ GC is not responsible for owner procured/provided items that are provided in a damaged condition, missing or incomplete, improperly specified /selected /sized, requiring pre-requisite work or upgrades, even after prior review, especially when GC is not familiar with or licensed for said product /process /installation or has not been part of the design/procurement process.

¤ All labor QUALITY LEVELS default to matching existing adjoining styles, forms, consistencies, and finishes surrounding install if grade/quality/expectation is not expressly specified in a design document and/or paid for as an upgrade.

¤ Clients acknowledges that using novel or personalized approaches as design-as-you-go, requesting multiple design /construction conversations /changes either before or after install, applying cut-and-fit targeted demo to “salvage”, reuse, reduce and recycle or using second use /repurposed items WILL RESULT IN HIGHER OVERALL labor, rework, repair and/or retrofit costs and may be inconsistent with existing fit and finishes.

¤ Manufacturer warranty on new materials apply. Labor warranty is excluded on Client provided items for GC to install due to not knowing the condition of item.

¤ Unless explicitly requested by homeowner, GC to remove all items brought on site for safety and to prevent collateral damage when completed with tasks/project.

¤ A material deposit is required to start work. Confirmation of schedule can only be determined after deposit is made.

¤ All invoices: Startup deposit invoices, progress invoices, and final invoices for past work ARE DUE UPON RECEIPT (No exceptions). Unpaid Invoices accrue at a rate of 2.3% monthly after receipt. A 10-day grace period can be granted upon request.

¤ GC to provide copies of all material receipts, timesheets and any documentation related to billing upon Client's request on a time-and-material/Cost-plus-reimbursement type of project.

¤ No more than 10% of any labor invoice(s) for past work may be retained at any time until completion. All legal actions, liens, judgements, collections and transactional costs incurred in the pursuit of collecting payment or recovering non-payment will be the sole responsibility of Client. (If damages or defects are found in the build, a claim can be made to GC’s Liability Insurance, GC’s bond or additional previously purchased Performance/Bond Insurance bought by client or alternatively, GC can elect to correct work in lieu of profit after full payment is made)

¤ GC to use prevailing wage rates or insurance prevailing wage rates from project local area when working on Government or Property loss/build-back insurance claim projects.

¤ All billable labor time tracking to start and end from the Vashon Construction office location. All timesheets brakes/stops to be round up to the next 5-minute increment. All on-island mileage and ferry fares for off-island workers in the service of the project will be documented and added to invoice. The cost of the ferry fares will be pro-rated to the hours spent per shift, per day.

¤ GC reserves the right to procure project items, materials and equipment rentals through various wholesalers of his choosing that simplify procurement process, expedite delivery at work site, provides adequate substitutions, facilitate installations, provides better margins, and integrates with current project management and billing platforms,

¤ GC reserves the right to add a handling "Fee-For-Service" on specific homeowner directly paid third-party invoices, Client-provided materials and/or Client procured services performed under GC's purview/dominion during the project and affecting ongoing contracted work. Direct payment from Client to third parties for work/material under GC's purview/dominion during project prevents GC from making an overhead fee.

¤ GC reserves the right to add up to 15% hazard premium on work/hours spent directly dealing with rodent excrement, carcasses, or performed in confined spaces (crawl and attic spaces) and/or reaching extreme heights.

¤ GC reserves the right to add a 25% acceleration premium on invoice requiring expediting, schedule compression, or acceleration (weekend/after business hours work/overtime/emergencies).

¤ GC reserves the right to add up to 18% marginal profit category on all labor costs, subcontractors invoice, materials, rentals, burdens, site management, overheads, and fees. If profit category or “line-item” is contested by Client, any warranty defaults to the absolute lowest level or is limited or void, to the extent of the law. Conversely, if profit category or “line-item” is applied to invoice or requested by client, a 2-year limited labor warranty is provided with a 6-month maintenance follow-up upon request. (No profit = Limited warranty to the absolute lowest limit of the law and/or void in all possibilities for any non-compliance). In the event project total actual cost falls under estimated value for the prescribed work estimated, GC reserves the right to round up to the estimated value as final billing instead.

¤ All overhead, site management, procurement, transportation, WST, and other regulatory fees to be added at invoicing.

¤ Financing is available through third party lenders/partners. GC reserved the right to start the payment collection process and report unpaid invoices to Credit Reporting Agencies after a 30-day delinquency.

¤ STANDARD OF CARE: GC shall perform services with the degree of skill ordinarily exercised by competent professionals under similar circumstances, based on conditions and information known at the time services are rendered, not what might later become apparent with hindsight. GC shall not be liable for information not actually known to GC at the time services are rendered. The selection and application of standard means and methods necessary to complete the work shall not be held against GC if such approaches result in higher costs than anticipated, as selection of appropriate techniques is based on professional judgment to complete work expeditiously or to reduce risk and not cost minimization.

¤ Client agrees that the GC is competent in his trade and that limited misunderstandings, misinterpretation or divergences leading to early-course corrections and causing to rearrange, reorder, adapt, amend, refashion, overhaul, permutate, retrofit, revise or REWORK on a limited basis is par for the course and is to be expected, up to 2% of the aggregate value of project, in any given circumstances, when performing work on a time-and-material/ cost-plus-reimbursement basis without explicit drawings or design documentation.

¤ Client is welcome to request and pay for additional Builder’s Performance bond insurance rider from a third-party insurer before project starts. (a Performance bond insurance covers Construction defects and unsatisfactory installations).

¤  A General Liability insurance (for accidental property loss) of 1 million dollars is provided during project.

¤ All warranty, defects, and damage claims not covered by either:  (1) General Liability insurance of 1 million (provided by GC), (2) GC’s WA State $30,000 bond, (3) waiving /use of profit category to correct, or (4) additionally Client purchased builder’s Performance bond Rider, is to be covered by Client on a Time -and-Material/ cost-plus-reimbursement basis or as required by law. (Meaning, in ALL circumstances, the totality of GC’s out-of-pocket materials, equipment rentals, labor burden, and overhead costs accrued during a “Time & Material/ cost-plus-reimbursement” project to be ultimately covered by the Client. GC insists on breaking even with all out-of-pocket costs accrued in completing project. If there is a claim/damages/defects, there is insurance either provided by GC or additionally offered to be purchased here. If client is unsatisfied, GC can elect to use profit category sums to correct. Alternatively, client can terminate agreement at any time for any reason if unsatisfied during duration of project and pay GC out-of-pocket costs.

¤ GC has the right to review, cure or remedy ALL issues, defects, or claims brought by Client prior ANY other options granted to Client under the law or before claims made to GC’s Liability, Bond or separately purchased builder’s Performance/bond rider insurance policies.

¤ All warranties become void upon ANY other unauthorized person(s) (whether licensed or unlicensed) performing modifications, penetrations, and/or appendages to contracted work herein without express authorization from GC or its affiliates at any time while warranty is in effect.

¤ At no time will there be an expectation of project completion or an implied promise of finalization other than the time it takes to complete desired work on a Time and Material/Cost-plus-reimbursement basis.

¤ GC reserves the right to reorganize or suspend work, reschedule labor, or opt out of continuing to work until invoice payment is paid in full on invoices for previously performed work and material delivered/used on site.

¤ LATE PAYMENT COLLECTION PROCESS: Regardless of conditions of work, scheduling timeline, or completion level, 10 days after an original invoice is sent, a Follow-up invoice with a fee will be sent with interest charges commencing. If payment remains outstanding 20 days after Follow-up invoice, GC will exercise his right to report late payment to credit bureau, start the mechanical lien process as a Washington State registered contractor to file a mechanic's lien on the property, start accruing labor and other legal expenses in the pursuit of payment.  All costs associated with the late payment collection process will be added to the invoice’s amount due.

¤ DISPUTE RESOLUTION PROCESS: 

¤ GC has the right to assign these terms and conditions to a third party of it’s choosing to assist or have them jointly participate in the collection of payment.

¤ Mediation /Binding Arbitration: If payment remains outstanding or claim is made, the matter will proceed, at the GC’s discretion, to mediation and/or binding arbitration. Certified/Accredited Mediator and/or Arbitrator will be selected by GC. Arbitration decision will be binding on both parties.

¤ Legal Action: If arbitration fails to resolve the dispute, GC or client reserves the right to pursue legal action. Venue for any legal proceedings shall be in Washington State courts, Puget sound area.

¤ Costs and fees: Client to pay all costs associated with collection efforts in the pursuit of payment. This includes but is not limited to: Mechanical Liens, Filing fees, Attorney fees, Arbitration costs, Court costs, Collection agency fees, Interest charges.

¤ Any ambiguity or error in the interpretation of this Agreement shall be construed according to the plain meaning of the language used, and not be interpreted against the party who drafted this Agreement

¤ These terms are deemed accepted upon a deposit made, design service delivered and/or commencement of work on site.