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THIS DOCUMENT/ CONTRACT IS A SAMPLE CONTRACT ONLY As Contractual law differs among states, the Owner(s) should coordinate

all Contractual matters with his/her legal council, including any construction documents and Contracts. THIS AGREEMENT/CONTRACT made this (dd/mm/yyyy) ______________ by and between ____________________________________, herein called the contractor and the ____________________________________ Owner, herein called the owner. (List all owners that will form part of the construction project). The location of the project is (street address, city, state and zip code) ______________________________________ ______________________________________ ______________________________________ ______________________________________ The contractor and the owner mutually agree to the following conditions: Article A: Scope of Work The contractor, having reviewed all plans and specifications and visited the project site is satisfied that all cost associated with the work in this Contract are included in his/her bid. The contractor shall furnish all labor, materials, equipment, and services to complete all work required in accordance with the specifications and the Scope of Work and/or other documents which make up the total Contract Documents for this project. (Make sure that ALL Labor and Materials are included in the final contract price and that if there are extra costs associated, that you are contacted ahead of time and that both parties mutually agree in writing to any price changes). Article B: Contract Amount and Payments The Grantee shall pay the contractor for the performance of work in accordance with the terms and conditions of the Contract, subject to additions/ deductions as provided in the Contract Documents, the sum of $ ____________________ , ________________________________________ dollars and ___________ cents (written as) (If there are changes to the price, get that in writing and both parties sign this change, normally entitled a change order.) Payment is subject to any additions, deductions and retainage as provided for in the terms of the Contract. The contractor shall make only one draw every 30 days. Certified Payroll Reports shall be submitted weekly. Weekly payroll information shall include a completed U.S. Department of Labor Form WH-347 or its equivalent and a Statement of Compliance, U.S. Department of Labor Form

WH-348 or its equivalent. (To avoid any liens by subs or materialmen, make sure the contractor provides evidence of pay stubs to these individuals when the time comes each month). Each pay request shall be dated and received by the grantee at least ten (10) working days before the date of payment. Payment is subject to approval by the Contracting Officer or their representative. The contractor shall be entitled to payments in the amount equal to the total value of the work completed less [ten percent (10%) retainage and prior payments]. Final payment to the contractor shall be payable after the grantee or their representative has conducted a final inspection to confirm the quality and completeness of the work. The contractor agrees that within fifteen (15) days following receipt of final payment, all unpaid obligations in connection with the work and Contract will be paid. The contractor shall be required to certify to the Grantee that all obligations have been paid and will furnish evidence in the form of a signing Final Lien Release and Release of Interest form. (Any final payment has to be approved by you after you inspect the work and agree that it has been substantially completed per the contract terms and is in good workmanlike conditions). For any changes to the Scope of Work, the Contract Documents, additions or deletions, or any other changes a written Change Order must be presented to the Grantee. Only changes approved in writing by the owner, prior to work performed will be authorized for payment. Failure to secure a signed Change Order from the Contracting Officer may result in the contractor being held liable for the costs associated with said changes. (This is imperative do NOT agree to any change orders unless you approve them). Article C: Time The work shall start with the execution of the Notice to Proceed and shall be completed within ______ calendar days. The time by which the work shall be completed may be extended only with an approved change order signed by the Contracting Officer. (The Notice to Proceed starts the clock running on your project and can be filed in the conveyance office). The contractor shall correct any defects due to faulty materials or workmanship within three hundred sixty-five (365) days of Contract completion. If an additional warranty is provided, that warranty will become part of this Contract. If the work is not completed on or before the completion date as set forth in the Notice to Proceed or amended by an approved Change Order, the owner reserves the right to impose liquidated damages or to consider the Contract in default. In the event the contractor does not complete the work as set forth herein on or before the completion date, the owner has estimated to the best of their ability a fair and reasonable monetary amount as compensation insofar

as liquidated damages are concerned. It is agreed that the contractor shall pay the owner the sum of $__________ per day for each calendar day that The contractor takes to complete its work after the completion date established in the Notice to Proceed, or its amendment. This completion date may be extended by an approved Change Order. (It is a normal provision that if the contractor is delayed in the work, NOT because of acts of God, but because workers have not shown up at the site, etc., then you can include an amount to penalize any late work). Article D: Default The owner may declare the contractor in default for any of the reasons listed in this Contract and may terminate in whole or part any portion of this Contract. The contractor will receive written notification of such determination of default, and if the Contract is terminated the owenr may require the contractor to transfer title and deliver immediately to the Contracting Officer all completed work, including where applicable all reports, working papers and documents. The owner may withhold payments due the contractor in any amount determined by the Contracting Officer necessary to protect the owner against loss. In the event the contractor terminates this Contract or any portion thereof, the owner reserves the right to contract services similar to or equal to those terminated. State contractual law shall govern the rights and remedies provided for in this Contract. Failure to exercise any rights or remedies, as set forth in this Contract or by law shall not be construed as a waiver by the owner in regards to default. The following are sample reasons for default Failure to begin work as noted in the Notice To Proceed Failure to provide sufficient labor, equipment, or materials to ensure the scope of work is completed within the terms of the Contract Unsatisfactory performance Work stoppage without approval of the owner Failure to remove and replace any work rejected by the owner as unsatisfactory Failure to resume work that had been suspended with fifteen (15) days of notification to begin work Insolvency or bankruptcy Any assignment of this Contract to benefit creditors Failure or refusal, within fifteen (15) days of payment, by the Grantee to The contractor to provide proof of payment for materials, labor, and Certified Payroll Reports as requested by the Contracting Officer Failure to protect, repair, replace or correct any damage or injury to owners property

Breach of any other article(s) of this Contract (make sure to include these default provisions and any others that you may feel are reasonable can be included in the contract terms). Article E Subcontracts, Termination and Assignments This Contract shall not be assignable by either party without the prior written consent of the other party. Should a subcontractor perform any work, the contractor shall submit to the owner the names of all persons that have or will have a Contract. The owner reserves the right to reject any subcontractors. The contractor may not assign its right to payment under this Contract. The contractor may terminate the Contract if work is stopped for a period of Forty-Five (45) days through no act or fault of the contractor or a subcontractor. The contractor may, with seven (7) days written notice to the owner or the Contracting Officer, terminate the Contract and recover from the owner payment for work executed and for proven losses with respect to materials and labor. (This provision is important to inform the contractor that YOU are in charge of the project remember, YOU are the one that pays the bills and as such, you are entitled to know what subs are working at your site, for what price, etc. If you do not approve of a sub, let the contractor know immediately). The owner, or the Contracting Officer, may terminate the Contract for the following reasons Insufficient number of properly skilled workers or approved materials Failure to make payments for materials or labor used in the performance of the Contract Violation of laws, ordinances, and/or regulations Breaching any provision of the Contract The owner or the Contracting Officer has the right to terminate the Contract within ten (10) days by providing written notice to the contractor. Such notice of termination shall also be forwarded to the contractors surety. The owner shall have the immediate right to take possession of the site and all materials owned by the contractor on said site. The owner may accept assignment of subcontractors. The owner has the right to finish the work by whatever means or methods. After termination of the Contact by the owner, the contractor shall not be entitled to receive further payment until the work is finished. If the unpaid balance of the Contract sum exceeds the cost of finishing the work, including compensation for professional services, such excess cost shall be paid to the contractor. If total costs exceed the unpaid balance, the contractor shall pay the

difference to the owner. (Once the work is substantially completed, you can require that the contractor file a Lien Release Statement in the conveyance office. This certifies that NO liens will be filed against your property). Article F Contract Documents The Contract may consists of all or part of the following ITEM GRANTEE CONTRACTOR CONTRACT Drawings Wage Rates Scope of Work Specifications General Conditions Special Conditions Article G. Insurance and Bonds The contractor and all subcontractors shall furnish the owner insurance certificates covering general liability, workers compensation, and automobile or vehicles insurance from a company or companies licensed in the state in which the project is located. All insurance certificates must be delivered to the Contracting Officer before work begins. All insurance certificates and policies shall not be cancelled or allowed to expire until at least thirty (30) days prior written notice has been given to the owner. All insurance certificates and policies shall identify the owner as the Certificate Holder. The owner, at its discretion may purchase other insurance for self-protection. All contractor and subcontractor employees must sign-in each day at the place designated by the owner while on site. The owner has the right to require the contractor to furnish bonds covering faithful performance of the Contract and payment of obligations arising from work performed in connection with this Contract as stipulated in the bidding documents or specifically required in the Contract Documents. The owner may require a 100% Performance and Payment Bond, to protect the owner from liens and unacceptable work performance by the contractor. The owner, at its discretion, may elect alternative forms of surety. Contracts under $100,000 may not require surety. Article H Assurances The contractor Will give the awarding agency (owner), the Comptroller General of the

United States, and if appropriate, the State, through any authorized representative, access to and the right to examine all records, books, papers, or documents related to the assistance; and will establish a proper accounting system in accordance with generally accepted accounting standards or agency directives Will provide and maintain competent and adequate engineering supervision at the construction site to ensure that the completed work conforms to approved plans and specifications and will furnish progress reports and such other information as may be required by the assistance awarding agency or State Will comply with all Federal statues relating to non-discrimination; these include but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (P.O. 88-352) which prohibits discrimination on the basis of race, color or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. 1681-1683, and 1685-1686) which prohibits discrimination on the basis of sex; (c) Section 504 of the rehabilitation acts of discrimination on the basis of handicaps; (d) the U.S.C. 61016107) which prohibits discrimination on the basis of age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 93-255), as amended, relating to non-discrimination on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism; (g) 523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. 290 dd-3 and 290 ee-3), as amended, relating to confidentiality of alcohol and drug abuse patient records; (h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601 et seq.), as amended, relating to non-discrimination in the sale, rental or financing of housing; (i) any other non-discrimination provisions in the specific statute(s) under which application for Federal assistance is being made; and (j) the requirements on any other non-discrimination Statue(s) which may apply to the application Will comply with the provisions of the Hatch Act (5 U.S.C. 1501-1508 and 7324-7328), which limits the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds Will comply, as applicable, with the provisions of the Davis-Bacon Act (40 U.S.C. 276a to 276 a-7), the Copeland Act (40 U.S.C. 276c and 18 U.S.C. 874) The Contract Work Hours and Safety Standards Act (40 U.S. 327-333), regarding labor standards for federally assisted construction sub agreements Will cause to be performed the required financial and compliance audits in accordance with the Single Audit Act of 1984

Will comply with all applicable requirements of all other Federal laws, Executive Orders, regulations and policies governing this program. (these provisions are for more complex contracts, but again, any that you feel you would like to include, as long as they are reasonable, can be part of the contract terms). Article I Disputes Disputes, claims, and disagreements between the contractor and the owner in relation to this Contract or breach shall be subject to proceedings of the appropriate courts of jurisdiction. This instrument, together with all the above articles, is the Contract. IN WITNESS WHEREOF, THE PARTIES HERETO HAVE CAUSED THIS INSTRUMENT TO BE EXECUTED IN TWO ORIGINAL COUNTERPARTS AS OF THE DAY AND YEAR WRITTEN ABOVE AND SIGN BELOW. Contractor of Record ________________________________________________ Address _________________________________________________ City _________________________________________________ State and Zip Code _________________________________________________ _________________________________________________________________ Contractors Signature and Title _________________________________________________________________ Witness ________________________________ ___________________________ Employer Identification Number Date Head Start Grantee _________________________________________________ _________________________________________________________________ Contracting Officers Signature ________________________________ _________________________ Witness Date THIS CONTRACT IS TO BE USED AS A SAMPLE ONLY NOTE: you can state in your contract that any disputes are subject to either mediation or arbitration as long as both parties are in agreement, that can be included as well. Many parties do this to avoid high litigation costs.