APPENDIX 3 - CONTRACT AGREEMENT BETWEEN OWNER AND CONTRACTOR
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1 APPENDIX 3 - CONTRACT AGREEMENT BETWEEN OWNER AND CONTRACTOR THIS AGREEMENT made this day of, 201* BETWEEN: (the "Owner") AND (the "Contractor") In consideration of the mutual covenants and agreements herein contained and subject to the terms and conditions set out, the PARTIES AGREE AS FOLLOWS: 1.1 Scope of Contract Work ARTICLE 1 SCOPE OF CONTRACT WORK The Contractor agrees to perform the Contract Work described in Schedule A in accordance with the terms, conditions and stipulations set out in the Contract Documents, and do and fulfill everything indicated by the Contract Documents. The Contractor shall provide such services, labour and material consistent with, covered by or properly inferable from the Contract Documents or from prevailing custom or trade usage as being required to produce the intended result, whether or not specifically called for. 1.2 Schedule The Contractor shall commence the Contract Work in accordance with a "Notice to Proceed" executed by the Owner indicating the commencement date for the Contract Work (the "Commencement Date"). The Contractor shall complete the Contract Work within weeks of the Commencement Date. 1.3 Contract Price The Contract Price is $ (the "Contract Price") plus applicable HST. All other taxes and duties are included in the Contract Price. Provided that the Contractor is not in default under this Contract, the Owner agrees to make payments to the Contractor in accordance with the provisions for payment set out in this Contract. All costs, charges and outlays of any kind whatsoever in respect of the Contract Work are included in the Contract Price, including for greater certainty, the cost of all labour, material and supplies, payments to suppliers and Contractors of any tier, wages and salaries to employees, statutory remittances and deductions, Workplace Safety and Insurance Board deductions, payments required for permits, licences and approvals required to be obtained by the Contractor. Page 1 of 10
2 1.4 Standard of Care The Contractor shall, at its own cost and risk, perform the Contract Work in compliance with all Laws and Regulations, in compliance with the Contract Documents, and in accordance with the standards, methods and practice which demonstrate the degree of skill and care, diligence and prudence and foresight which would reasonably and ordinarily be expected from a qualified, skilled and experienced person engaged in a similar type of undertaking. 1.5 The Contractor agrees to assign the following Key Personnel to the Project: Role Project Executive Project Manager Name The Construction Manager may not remove such personnel from the Project, and any replacement must be approved by the Owner. 2.1 Contract Documents The following are the Contract Documents: ARTICLE 2 CONTRACT DOCUMENTS (a) (b) (c) (d) The Articles of Agreement; Schedule 1 entitled "Definitions"; Schedules: Schedule A Scope of Contract Work Schedule B Insurance Requirements All documents signed by the Owner and the Contractor amending, modifying or supplementing the Contract Documents. In the event of discrepancies or conflicts between Contract Documents, the following order of priority from the highest to lowest, shall apply: (a) (b) (c) (d) All documents signed by the Owner and the Contractor amending, modifying or supplementing the Contract Documents; The Articles of Agreement; Schedule 1 entitled "Definitions"; Schedules in the following order: Schedule A- Scope of Contract Work Schedule B Insurance Requirements Page 2 of 10
3 2.2 Contract Documents Supersede The Contract Documents constitute the entire agreement between the parties with respect to the matters dealt with herein and supersede all prior negotiations, representations or agreements, whether written or oral, relating in any manner to the Contract Work. 2.3 Definitions and Interpretations In addition to words defined in the text of the Contract Documents, the definitions and interpretations set out in Schedule 1 to this Contract shall apply to all of the Contract Documents. 3.1 Applications for Payment ARTICLE 3 PAYMENT The Contractor shall submit its application for payment upon total completion of the Contract Work to the Owner. The amount claimed shall be for the Contract Price, subject to any holdback required under the Construction Lien Act (Ontario). Upon submission of an application for payment, the Owner shall have the right to inspect the Contract Work (or retain a third party to do so on its behalf) and identify any deficiencies in the Contract Work. The Contractor shall immediately repair any deficiencies at its own expense. 3.2 Contents of Application for Payment An application for payment shall be accompanied by the following supporting documentation: a statutory declaration signed by the Contractor stating that:.1 it has not engaged any subcontractors; and.2 it has received no notice of lien under applicable lien legislation and is aware of no liens that may still be preserved against the Contractor a Workplace Safety and Insurance Board Certificate stating that the Contractor is in good standing with the Workplace Safety and Insurance Board and that all assessments have been paid by the Contractor to the date of such certificate. 3.3 Payment of Amount Claimed Payment in respect of the Contract Work in the amount claimed shall be made to the Contractor on the 1 st day of the next complete month following the application for payment. For example, if the application for the payment is made on the 20 th day of October, payment will be made by the 1st day of December. Notwithstanding the foregoing, the Owner shall not be required to make any payment until all deficiencies identified by it have been rectified. Page 3 of 10
4 ARTICLE 4 Other Matters 4.1 Permits, Licences and Approvals The Contractor shall be responsible to obtain all permits required in connection with the Contract Work, the cost of which is included in the Contract Price. The Contractor will provide the Owner with copies of all permits obtained in connection with the Contract Work. The Contractor shall give the required notices in a timely fashion and comply with all applicable Laws and Regulations. 4.2 Site Safety The Contractor shall provide, erect and maintain proper warning signals, signs, lights, barricades, fences, flag persons and police supervision, if required, on and in respect to the Contract Work and shall take all other necessary precautions for the protection of the work and the safety of the public, the works and other persons carrying out the Contract Work, all in conformance with the Occupational Health & Safety Act. The Contractor shall be responsible for receiving and safeguarding materials delivered to or for the Contract Work and the Owner shall not be in any way responsible therefor. 4.3 Insurance The Contractor shall comply with the insurance requirements set out in Schedule "B" to this contract. 4.4 Construction Liens In the event that a construction lien (other than a lien by the Contractor) is registered arising from the performance of the Contract Work, the Contractor shall promptly, and in any event within ten (10) Working Days, at its sole expense, vacate or discharge the lien from title to the premises. If the lien is merely vacated, the Contractor shall undertake the Owner's defence of any subsequent lawsuit commenced in respect of the lien at the Contractor's sole expense. In the event that the Owner determines, acting reasonably, that the Contractor is not satisfactorily defending the Owner's interests, the Owner shall defend the claim and the Trade Contractor shall indemnify the Owner for all costs thereof, including, without limitation, legal fees on a solicitor and client basis In the event that the Contractor fails or refuses to vacate or discharge a construction lien, within the time prescribed above, the Owner shall, at its option, be entitled to take all steps necessary to vacate and/or discharge the lien, and all costs incurred by the Owner in so doing (including, without limitation, legal fees on a solicitor and client basis) shall be for the account of the Contractor, and the Owner may deduct such amounts from amounts otherwise owing to the Contractor. 4.5 Dust and Mud Control The Contractor will be solely responsible for controlling dust nuisance resulting from their operations, both within the right-of-way and elsewhere. The Contractor shall apply water and/or calcium for the prevention of dust nuisance or hazard to the public. Should the Contractor refuse or neglect to carry out proper dust control, the Owner may authorize the Page 4 of 10
5 Contract Work to be carried out by other persons, and the cost of such Contract Work shall be deducted from any payments to the Contractor. 4.6 Confidentiality All information provided by or obtained from the Owner in any form in connection with this Contract: i. is the sole property of the Owner and must be treated as confidential; ii. iii. must not be disclosed without prior written authorization from the Owner; and shall be returned by the Contractor to the Owner immediately upon the request of the Owner. Confidential Information shall not include: i. information generally available to the public other than as a result of a breach of these confidentiality obligations; ii. iii. iv. information that becomes available to either party through no breach of any contract or law; information that either party develops independent of the information provided to it by the other party; or information that is required to be disclosed by applicable Laws and Regulations. 4.7 Warranty The warranty period under this Contract is one year from the date the Owner makes payment for the Contract Work. The Owner shall promptly give the Contractor notice of any observed defects or deficiencies which occur during the one year warranty period. The Contractor shall correct promptly, at the Contractor's expense, defects or deficiencies in the Work which appear during the one year warranty period. The Contractor shall pay for any damage resulting from corrections made under this paragraph. 4.8 Extended Warranties Any warranties beyond that contemplated in Section 4.7 shall be specifically set out in the Contract Documents. Such extended warranties shall be issued by the warrantor for the benefit of the Owner. The Contractor's responsibility shall be to obtain such extended warranties from the warrantor. Page 5 of 10
6 ARTICLE 5 GENERAL 5.1 Notices Wherever in this Contract provision is made for the giving, making or issuing of any notice, endorsement, consent, request, approval certificate, report or determination by any person (a Notice ) unless otherwise specified, such Notice will be in writing and will be duly given if signed by or on behalf of a duly authorized officer of the person giving the Notice, and (i) personally delivered to, or (ii) sent by facsimile transmission to addresses set out below. Any party may change its address or facsimile number for Notice to another address or facsimile number by prior Notice to the other party. OWNER CONTRACTOR Any Notice will be deemed to have been received if sent by personal delivery, when delivered; and, if sent by facsimile, on the Day of transmittal if sent during normal business hours, and otherwise on the next following Business Day. 5.2 General Governing Law - This Contract and all Contract Work carried out under it will be governed by and construed in all respects in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein No Amendment - No amendment, modification or supplement to this Contract will be binding unless it is in writing and signed by the duly authorized representative(s) of each of the parties Time of Essence - Time shall be of the essence in this Contract and every part hereof and of the Contract Documents. In the event of any extension of time by a party for the performance of an obligation by the other party under this Contract, time shall continue to remain of the essence hereof notwithstanding such extension Assignment - The Contractor shall not be entitled to transfer or assign this Contract, directly or indirectly, either in whole or in part to any person without the prior written consent of the Owner Relationship of the Parties - Nothing herein shall be construed so as to make the Contractor a partner, agent or joint venture with or of the Owner Succession - This Contract shall enure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors, permitted transferees and permitted assigns. Page 6 of 10
7 IN WITNESS WHEREOF the Owner and the Contractor have executed this Contract. [OWNER] [CONTRACTOR] Per: Name: Title: I have authority to bind the Corporation Per: Name: Title: I/We have authority to bind the Corporation Page 7 of 10
8 SCHEDULE 1 DEFINITIONS AND INTERPRETATIONS DEFINITIONS 1. For the purposes of this Contract and all Schedules, the following terms when capitalized have the following meanings: 1.1 Agreement" or Contract means the undertaking by the parties to perform their respective duties, responsibilities, and obligations as set out in the Contract Documents and represents the entire Contract between the parties. 1.2 Business Day means any day other than a Saturday, a Sunday, a statutory holiday in the Province of Ontario or any day on which banks are not open for business in the City of Toronto, Ontario. 1.3 "Contract Documents" means those documents listed in Article A-2 Contract Documents and amendments agreed upon by the parties. 1.4 Contract Work means the scope of work described in Schedule "A" to this Contract, and all labour, materials and services necessary to complete the Contract Work, and all items set forth in, required by or reasonable inferable from and/or necessary to produce the results intended by the Contract Documents in order to fully complete the Contract Work. 1.5 Laws and Regulations means any and all requirements under or prescribed by the common law and the law of equity and any enactments, statutes, regulations, laws, court orders or judgments, decrees, writs, administrative interpretations, ordinances, orders in council, by-laws, codes (including design and construction codes), orders, injunctions, directives, guidelines, rules or policies of any governmental authority affecting, applicable to or otherwise relating to any of the parties, the Place of Work, the Contract Work, or any part thereof or the use thereof. 1.6 Place of Work means the designated site of the Contract Work, being: [Insert site location] # Street Unit City Province Postal Code Page 8 of 10
9 SCHEDULE A THE CONTRACT WORK Subject to Section 1.1 of this Contract, the Contract Work shall consist of the following, which Contract Work is to be performed for the Contract Price: Contract Work [INSERT DESCRIPTION OF CONTRACT WORK] Page 9 of 10
10 SCHEDULE B INSURANCE REQUIREMENTS Insurance a) General Liability Insurance: The Contractor shall obtain General Liability Insurance in its name and will add the Owner as an additional insured to the General Liability Insurance policy. The limits of this insurance are set at Five Million Dollars ($5,000,000.00) inclusive per occurrence for bodily injury and property damage including loss of use thereof and Ten Million in Aggregate. The policy will remain in effect from the effective date of this contract and terminate upon final payment. b) Automobile Insurance: The Contractor shall maintain automobile insurance acceptable to the Owner with a third party liability limit of not less than Two Million Dollars ($2,000,000.00) inclusive per occurrence. c) Such policies shall: i) Be issued by an insurance company licensed to conduct business in the Province of Ontario. ii) Constitute primary coverage and not merely coverage in excess of, or co-coverage with, any insurance otherwise available to the Owner. iii) Contain cross-liability and severability of interest provisions. iv) Be endorsed to provide the Owner with at least thirty (30) days prior written notice of any cancellation or adverse change in coverage other than cancellation for non-payment of premium, in which case the advance notice time shall be ten (10) days. v) Name the Owner as an additional insured. d) Upon request, the Contractor shall provide the Owner with a certificate of the insurance coverage described in paragraph (a) and (b). Page 10 of 10
APPENDIX 3 - CONTRACT AGREEMENT BETWEEN OWNER AND CONTRACTOR ARTICLE 1 SCOPE OF CONTRACT WORK
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