LIFETIME MASTER SERVICE AGREEMENT (CONTRACT PER PROJECT):
This Agreement governs all projects assigned by Contractor to Subcontractor after the Effective Date. Each project shall be evidenced by a Work Order issued by Contractor, which shall incorporate the terms of this Agreement by reference.
New Subcontractor Form / Expectations Agreement.
This Agreement is entered into in Jackson County, in the State of Oregon, by and between “Legacy Real Estate Development”, an Oregon LLC, hereafter referred to as “Legacy RED” or “Contractor”, and in the chartered Form tethered to this contract, hereafter referred to as “Subcontractor”, “”, or “Vendor” and, if applicable.
Contractor Name: Legacy Real Estate Development, LLC.
Address: PO Box 204 Medford, Oregon 97501
Phone: +1-541-944-1479
Email: LegacyRED.Management@gmail.com
Main Rules:
1. Do it right like it was your grandma’s house. How you perform is a reflection on Legacy RED’s reputation and we request you take that as seriously as we do.
2. Photos and Video walkthroughs at the end of each day work is done, in addition to whenever any issues arise.
3. Trash in trash out.
4. Direct Clients to Legacy RED for any inquiries. No undercuts.
5. Track time in and time out.
6. Account for protection (ram board, trucks not in driveways, furniture coverings, plastic barriers, temp framing, etc.
7. Subs responsible for materials.
8. This Contract pertains to all projects Contractor has with Legacy RED.
Boiler Plate Contract:
1. Insurance, Bond, License Proof. Subcontractor MUST submit proof of Insurance, Bond, and Contractor’s License in the State where work is to be performed via the tethered New Subcontractor Form / Expectations Agreement.
2. Subcontract Sum. Contractor agrees to pay Subcontractor for the full, timely, and satisfactory performance and completion of the work authorized by Contractor’s Representative.
3. Performance. Subcontractor agrees to furnish all supervision, management, services, labor, tools, equipment, materials, supplies, engineering, testing, invoices, receipts, and/or any other act or thing required to perform the Work. All Work is to be the highest quality and acceptable to Contractor, Owner and the government authorities. Work shall be installed in accordance with the Subcontract Documents.
4. Enumeration of Subcontract Documents. All written documents and messages affiliated with the project this document pertains to are fully a part of this Agreement. This Agreement represents the entire and integrated agreement between the parties and supersedes prior negotiations, representations or agreements. Contingent on the location of the project and SubContractor Licensing, the State where work and subs licensing is held, the law of that State will apply to the interpretation of all Subcontract Documents.
5. Changes in the Work. All extra or changed work must be authorized by prior written or email correspondence from Contractor’s Representative to be considered part of this Subcontract. Mark up on Change costs (invoiced material costs.plus labor to perform the scope change) may not exceed 15%. Third party work may be marked up no more than 10%. Any such additional work preauthorized in writing by Contractor’s representative shall be verified daily in writing by Subcontractor and note completed quantities, man-hours and equipment hours. Signing of the written verification by Contractor’s Representative will constitute verification of quantities and hours worked only and will in no way alter this Agreement or be construed as acceptance of any additional terms.
6. Payment. Legacy RED has the option to pay the subcontractor as requested, but retains the right for Final Application for Payment billing date to be the last day of the month. Final payment shall be made to Subcontractor by the 25th day of the following month after completion and acceptance of the Work and satisfaction of all conditions for final payment as provided in the Prime Contract, including written acknowledgement that all indebtedness connected with Subcontractor’s Work has been paid or satisfied, issuance of releases and waivers of liens for Subcontractor and lower-tier subcontractors and suppliers and issuance of final waiver and release of claims on the Project. Final payments shall constitute a waiver of all claims by Subcontractor relating to Subcontractor's Work, but shall in no way relieve Subcontractor of liability for faulty or defective work. Legacy RED only accepts Fixed Price Contracts, or Labor and Material Contracts.
7. Lower Tier Payment Provisions. Subcontractor shall include in all its subcontracts and purchase orders related to Subcontractor’s Work a payment clause that obligates Subcontractor to pay its subcontractors, of any tier, or material suppliers within 10 days of payment from Contractor for such work. Contractor reserves the right, but is in no way obligated, to make direct payment due to Subcontractor's lower-tier subcontractors, material suppliers, equipment lessors or any surety. Contractor reserves the right to determine the manner of payment, including the use of joint checks.
8. Sales Tax. If Subcontractor’s invoices are subject to any sales tax, Subcontractor’s invoices to Contractor must state the sales tax as a separate line item. Subcontractor is responsible to collect and remit said sales tax to the proper taxing authority.
9. Scope of Work applicable to all Projects and Subcontracts:
A. Existing conditions. Subcontractor shall be knowledgeable of other contractors in place work. If damage occurs to other such property caused by Subcontractor, its subcontractors, of any tier, material suppliers, or anyone for whom Subcontractor is legally responsible, Subcontractor will replace at its expense.
B. Surveying. Subcontractor shall provide all layout for its Work. Contractor will provide primary benchmarks, building corners. Subcontractor is responsible for replacing (at its cost) all staking, flagging, and/or benchmarks damaged by its personnel in performing this scope of Work.
C. Clean up. Subcontractor shall be responsible for the cleanup of self-generated debris daily. All debris shall be removed from the Work area. No stockpiling of debris anywhere on the site or in the building will be tolerated. Should the Subcontractor violate the daily clean up policy, Contractor will exercise its right (24 hours after written notice to the Subcontractor) to hire an independent party to clean up all debris, at Subcontractor’s cost. Subcontractor must meet all government requirements applying to haul off debris, dust control, street cleaning, traffic control, and haul hours.
D. Schedule. Schedule is critical. All Work shall be completed in accordance with the Contractor’s direction. It is the Subcontractor’s responsibility to furnish adequate manpower and equipment to complete all Work within the time frame allotted to this scope of Work in the Construction Schedule. Should the Subcontractor fail to allocate adequate manpower and equipment to stay on schedule, Contractor shall have the right (48 hours after written notice to the Subcontractor) to call in a separate contractor to get the Work back on schedule and/or complete, at the sole cost of Subcontractor.
E. Re-mob. No re-mobilization charges will be accepted if any portion of this scope of Work is incomplete.
F. Supervision. Contractor reserves the right to approve Subcontractor’s on-site supervision. If Contractor determines that the Subcontractor’s on-site supervision is performing unsatisfactorily, Subcontractor shall immediately remove that person.
G. Hazardous Materials. Prior to any equipment or fuel or hazardous materials being brought onto the site, Subcontractor shall provide a written plan for contamination prevention, containment and cleanup of materials and spills arising out of Subcontractor’s Work. The written plans shall include: handling of the fuels to prevent contamination; storage of the fuels (how, where, etc.); maintenance of the equipment to prevent leaks; how a spill will be contained and cleaned up; and how any contaminated materials will be disposed. All plans and actions will be in accordance with the governing authorities. Subcontractor shall be responsible for all costs associated with any contamination caused in performing the obligations in this Paragraph.
H. Hoisting. Subcontractor is responsible for supplying, unloading, and staging its materials in the location of their eventual use.
10. Recoupment, Setoff and Back Charges. Contractor may deduct or withhold payment: (1) of any sums owed by Subcontractor to Contractor; (2) until Subcontractor submits evidence satisfactory to Contractor that lower tier subcontractors and suppliers have been paid; (3) when Subcontractor breaches any material provision of the Subcontract and/or (4) if any claim occurs or a lien is asserted against Contractor or the Project arising out of Subcontractor's performance of the Work. Contractor may retain an amount sufficient to protect Contractor from loss, damage or expense.
11. Rights and Obligations. The Contractor shall assume toward the Subcontractor all obligations and responsibilities that the Owner, under the Prime Contract assumes toward the Contractor, and the Subcontractor shall assume toward the Contractor all obligations and responsibilities which the Contractor, under the Subcontract Documents, assumes toward the Owner. The Contractor shall have the benefit of all rights, remedies and redress against the Subcontractor that the Owner, under the Subcontract Documents, has against the Contractor, and the Subcontractor shall have the benefit of all rights, remedies and redress against the Contractor that the Contractor, under the Subcontract Documents, has against the Owner, where applicable to this Subcontract. Where a provision of the Prime Contract contradicts a provision of this Agreement, this Agreement shall govern. Notwithstanding any contrary provision in the Subcontract Documents, Contractor will not assume or pursue any claims or relief from Owner or Architect on behalf of or for the benefit of Subcontractor. Subcontractor must pursue any such claims or relief directly. Subcontractor must resolve any disputes with Owner or Architect arising from Subcontractor Work or the Subcontract Documents at its own cost.
Insurance. Subcontractor agrees to obtain and maintain, at its own expense, insurance coverage with limits set out below. Insurers must have a rating of A, VII or better in the most recent Best’s Key Rating Guide. Subcontractor’s agreements with lower tier subcontractors shall require general liability coverage for ongoing operations and completed operations consistent with subparagraph 12.a and additional insured coverage consistent with subparagraph 12.b. Copies of lower tier subcontractors’ Certificates of Insurance confirming the insurance requirements in this Article 12 shall be provided to Contractor prior to Subcontractor entering the job site. Approval, disapproval or failure to act by Contractor regarding any insurance supplied by the Subcontractor shall not relieve the Subcontractor of full responsibility or liability for damages and accidents. Neither shall the bankruptcy, insolvency or denial of coverage by any insurance company exonerate the Subcontractor from liability.
A. General Liability.
Subcontractor shall maintain General Liability Insurance with these minimum limits of liability:
$1,000,000 Each Occurrence.
$1,000,000 Personal Injury and Advertising Injury.
$2,000,000 Per Project Aggregate.
$2,000,000 Products and Completed Operations Aggregate.
The General Liability Insurance shall include:
Contractual Liability.
The subcontractor exception to the “your work” exclusion.
Residential Operations (meaning no exclusions for residential work).
Occurrence coverage (NOT Claims Made).
Subsidence (meaning no exclusion for subsidence or earth movement).
Underground Work (meaning no exclusion for underground work).
Waiver of Subrogation.
B. Additional Insured Coverage.
Contractor shall be added as additional insureds under the coverages described above, and such additional insured coverage shall be obtained on the following terms:
Additional insured coverage for Contractor for Products-Completed Operations shall continue in full force and effect for ten (10) years after the date of substantial completion of the Work.
The limits available to the additional insured will be no less than those available to the Subcontractor under primary and umbrella policies in excess of the minimums required.
The additional insured coverage must be primary, not contributory and not excess of any other insurance carried by or for the benefit of the additional insured.
C. Workers’ Compensation Insurance and Employee’s Liability. Subcontractor shall provide Workers’ Compensation Coverage under the State where the work is performed and their license is held will meet that State’s legal requirements.
D. Automobile Liability. Subcontractor shall provide automobile liability coverage with limits not less than a combined single limit of $1,000,000. This insurance shall provide primary coverage for any auto, including all owned, non-owned and hired vehicles and waive any rights of subrogation against the Additional Insureds identified above. Auto pollution liability coverage is required if any vehicles are hauling hazardous materials.
E. Professional Liability. If Subcontractor has design or engineering responsibility, Subcontractor shall provide professional liability coverage with minimum limits of $1,000,000 per claim and a deductible or self-insured retention no greater than $25,000 per claim. This insurance shall be maintained for ten (10) years following substantial completion of the Project. The retroactive date of such policy must be the date work commences under the Subcontract.
F. Pollution Liability. If Subcontractor’s work involves earthmoving or asbestos, lead, mold or pollutant abatement, Subcontractor shall purchase limits of $1,000,000 each occurrence (if written on an occurrence basis) or $2,000,000 each claim (if written on a claims-made basis, with a minimum extended reporting period of six years after the date of Substantial Completion of the Project). The policy must name as Additional Insureds identified above and be primary and not in excess of, any other insurance carried by or for the benefit of the Additional Insureds.
G. Cancellation of Insurance Policies. Subcontractor shall have the affirmative obligation to notify Contractor of any cancellation or non-renewal.
H. Certificate of Insurance Requirements. Subcontractor shall provide Contractor with a copy of an original Certificate of Insurance confirming the insurance required by this Subcontract Agreement was purchased and in effect prior to commencing work. The Certificate should identify Contractor as an additional insured. The Certificate shall include as attachments a copy of the endorsements or such other policy language demonstrating that the insurance policies comply with this Subcontract Agreement. Upon request, Subcontractor shall produce a complete copy of the insurance policies discussed in this Article 12 within 10 business days.
I. Breach of Agreement. Subcontractor’s failure to obtain or maintain the insurance required by the Subcontract shall be deemed to be a material breach.
J. Withholding Payments. Contractor may withhold payments to Subcontractor until a properly executed Certificate of Insurance is received by Contractor.
K. Waiver of Subrogation. Contractor and Subcontractor waive all rights against each other for damages caused by fire or other perils to the extent covered by insurance. Subcontractor shall require of its lower tier subcontractors to execute waivers of subrogation in favor of Subcontractor and Contractor. A waiver of subrogation shall be effective as to a person or entity despite whether: (i) the latter has a duty to indemnify, (ii) did not pay the insurance premium, or (iii) had an insurable interest in the property damaged.
L. Payment of Deductibles. Subcontractor shall be responsible for any deductibles or SIRs for the insurance coverages it is contractually obligated to provide under this Subcontract.
13. Indemnification. Subcontractor shall defend, indemnify and hold Contractor harmless against all claims, liabilities and damages alleged to arise out of Subcontractor’s Work. If any claims made against Contractor are alleged to be caused in whole or in part by Subcontractor or its subcontractors, of any tier, or material suppliers, Subcontractor shall, defend, indemnify and hold harmless Contractor to the extent such claims arise out of or result from the acts or omissions of Subcontractor, its subcontractors of any tier, or material suppliers or anyone whose acts are the legal responsibility of Subcontractor. Subcontractor shall not be obligated to defend, indemnify or hold Contractor harmless for claims which result from the sole fault of Contractor.
14. Subcontract Bond. A performance bond and labor and material payment bond in a form and written by a surety satisfactory to Contractor shall be furnished if requested by Contractor in the full Subcontract Sum. The undersigned agrees, if awarded contract, to execute and deliver to Legacy RED within five (5) days after receiving contract forms confirming award of project to purchase performance bond and labor and material payment bond in an amount equal to one hundred (100) percent of the contract sum if over minimum required twenty thousand ($20,000). The undersigned hereby authorizes said Surety Company to disclose any information to the Owner concerning the undersigned’s ability to supply a performance bond and labor and material payment bond in an amount equal to one hundred (100) percent of the contract sum.
15. Correction of Work and Warranty. Subcontractor shall replace, at its sole expense and to the satisfaction of Contractor, any work or materials adjudged defective or improperly installed during a period of one (1) year from completion and acceptance of the entire Project. Subcontractor warrants its Work against all deficiencies and defects in materials and/or workmanship. Subcontractor further warrants its Work will comply with all applicable building codes and standards including but not limited to Uniform Building Codes, state and local building codes and established journeyman quality standards. Subcontractor further warrants its Work to the same extent as warranted by Contractor to Owner in the Prime Contract. All work not conforming to these requirements, including substitutions not properly approved and authorized shall be considered defective. Subcontractor agrees to promptly make good without cost to Owner or Contractor any deficiencies and defects due to faulty material and/or workmanship.
16. Arbitration. All claims and disputes arising out of or relating to this Subcontract shall be determined by arbitration in the State where work is performed and the SubContractors Licensing is held under the Construction Industry American Rules of the American Arbitration Association then in force. The arbitration shall be administered by an arbitrator rather than the American Arbitration Association. The arbitrator shall be an attorney with at least 12 years’ experience in construction disputes. The parties will decide on an arbitrator within seven days of delivery of demand for arbitration. If no agreement is reached, the parties will apply to the Circuit Court for the county in which the Project is located to appoint the arbitrator. The arbitrator may authorize limited discovery as necessary to ensure a fair hearing. The arbitrator shall hold a hearing within 120 days of the initial demand for arbitration unless otherwise mutually agreed in writing by Contractor and Subcontractor. The arbitrator’s fees shall be paid equally by the parties.
17. Attorney’s Fees. If any dispute occurs arising from Subcontractor’s Work or this Agreement, each party shall pay their own attorney fees and costs. There is no right for any prevailing party attorney fees or costs.
18. Vendor. This contract renders the signee as an official Vendor of the Contractor. This Contract or the most recently signed version of this contract applies to any and all projects underway in pre, during, or post-construction phases between subcontractor and Contractor. Any project that Contractor joins via Owner signing our Contract, even after work commencement by subcontractor now falls under this contract and any previously signed contracts between Subcontractor and Owner are rendered null and void if all work to that point falls under the scope of the Claim and Subcontractor will be paid under the same parameters as outlined in this contract. If work commenced and completed does not fall under the Claim’s purview, then Subcontractor’s Contract with Owner remains enacted prior to the date of Owner signing with Legacy RED. Any work from that point forward falls under Legacy RED. As a Vendor, Obsidian Solutions is entitled to 11% of the Mitigation Subcontractor’s Gross Revenue per Project as our Contractor fee and is to be withheld at final payment. Repair Vendor is 6%. As a Vendor you must operate within the structure of this Contract and any other Charters to this document such as Legacy REDs’ Expectations Agreements. The Subcontractor will not get the Client into Contract when Legacy RED sends them a project because the Subcontractor is in Contract with Legacy RED via this document and other coordinating Charters, and Legacy RED will get the Client in Contract for Work Authorization for the Vendor. Be advised that if you do not perform coverage confirmation before executing work, you release your right to any payment for services rendered. Legacy RED must have homeowner approval after submitted estimate if Contractor is performing work outside of the scope of coverage. Discounts at Legacy REDs’ discretion.
19. NDA. The purpose of this Agreement Clause is to ensure the confidentiality of proprietary information shared between Legacy RED and the Subcontractor during their business relationship. The Subcontractor acknowledges that during the course of its engagement with Legacy RED, it will have access to confidential and proprietary information belonging to Legacy RED. This information includes, but is not limited to, business strategies, financial data, customer lists, and technical know-how ("Confidential Information"). The Vendor agrees to maintain the confidentiality of all such information and not to disclose it to any third party without the prior written consent of Legacy RED. The Vendor further agrees not to use any Confidential Information for any purpose other than as necessary to fulfill its obligations under its agreement with Legacy RED. This includes not using the Confidential Information for its own benefit or the benefit of any third party. Upon termination of the business relationship, the Subcontractor agrees to return all materials containing Confidential Information to the Company and to not retain any copies thereof. The obligations of confidentiality shall survive the termination of this Agreement for a period of 100 years. This Agreement constitutes the entire understanding between the parties regarding the confidentiality of the information and supersedes all prior discussions and agreements. Any amendments to this Agreement must be in writing and signed by both parties. This pertain to all charters and documents signed between Legacy RED and Subcontractor.
20. Where applicable law requires a state contractor’s or builder’s license for the performance of work, and Legacy RED does not yet hold the necessary license in that jurisdiction, Subcontractor/Vendor agrees to act as the duly licensed contractor of record for such projects. Subcontractor/Vendor hereby authorizes Legacy RED to market, negotiate, and administer projects in that jurisdiction under Subcontractor/Vendor’s active license, provided that:
Subcontractor/Vendor remains the contractor of record and shall maintain all required supervision, control, and compliance with applicable licensing statutes;
Legacy RED shall operate as Subcontractor/Vendor’s authorized representative for purposes of project management, client communications, billing, and coordination;
Nothing herein shall relieve Subcontractor/Vendor of its obligations to maintain its license in good standing and in full compliance with applicable law; and
Both parties agree to indemnify and hold harmless the other for any claims or penalties arising from misrepresentation or non-compliance with licensing requirements, except to the extent caused by that party’s own acts or omissions.
21. Tethered. This Contract is expressly incorporated into, and made part of the New Project Form / Work Authorization executed by the Subcontractor all information, representations, and acknowledgments provided therein constitute a single, binding agreement between the Client and Legacy RED. In the event of any inconsistency, the terms of this Contract shall govern. The signing of the New Project Form / Work Authorization and checking of “YES” confirms you understand that by checking "YES” below and signing the New Subcontractor Form / Expectation Agreement, Subcontractor acknowledges and agrees that: 1. Subcontractor has been provided access to, and have had the opportunity to review, the Expectations Agreement and this Contract. 2. Subcontractor expressly confirms that Subcontractor has read, understood, and accepts the terms of the Expectations Agreement and Contract. 3. By Subcontractors signature on the New Subcontractor Form / Expectations Agreement, Subcontractor agrees that the New Subcontractor Form / Expectations Agreement and Contract together constitute a single, binding contract between Subcontractor and Legacy RED, 4. Subcontractor further acknowledges that all information provided by Subcontractor in this New Subcontractor Form / Expectations Agreement is true, complete and executes the Agreement on the date electronically submitted and onwards until mutual termination.