Construction Contract
THIS CONSTRUCTION SERVICES CONTRACT is entered as of the date of estimate approval, by and between:
Fehr Strata Repairs Ltd.
Attn: Tyler Fehr
25430 73 Avenue, Langley, B.C. V4W 1V2
Phone: 604-618-5376
E-mail: office@fehrrepairs.com
(the “Contractor”)
AND:
(the “Client(s)”)
(Collectively, the “Parties”)
WHEREAS the Client(s) desire new construction and/or repair to the lands and premises located at the Place of Work.
WHEREAS the Contractor agrees to construct the home in accordance with the Contract Documents.
Definitions:
The following Definitions apply to all the Contract Documents:
“Change Order”: An agreement between the Contractor and the Client(s) to change the scope of the Work.
“Contract”: The Contract is the undertaking by the Parties to perform their respective duties, responsibilities, and obligations as prescribed in the Contract Documents and represents the entire agreement between the Parties.
“Contract Documents”: The Contract Documents consist of those documents listed under section (3) below and amendments agreed between the Parties.
“Subcontractor”: The subcontractor is a person or entity having a direct contract with the Contractor to perform a part or parts of the Work, or to supply Products worked to a special design for the Work.
“Supplier”: A Supplier is a person or entity having a direct contract with the Contractor to supply products not worked to a special design for the Work.
“Work”: The Work means the total construction and related services required by the Construction Documents.
“Place of Work”: The Place of Work is the designated site or location of the Work identified in section (1) below.
“Product”: Product or Products means material, machinery, equipment, and fixtures forming the Work, but does not include machinery and equipment used to prepare, fabricate, convey, or erect the Work, which are referred to as construction machinery and equipment.
“Cost of Work”: The Cost of Work is the amount stipulated in section (6) below.
“Price”: The Price is the amount stipulated in section (6) below.
“Value Added Taxes”: Value Added Taxes means such sum as shall be levied upon the Price and the Cost of Work by the Federal or any Provincial or Territorial Government and is computed as a percentage of the Price and the Cost of Work and includes the Goods and Services Tax, the Quebec Sales Tax and any similar tax, the payment or collection of which, is by the legislation imposing such tax an obligation of the Contractor.
1 - Place of Work
The Place of Work is listed on the estimate provided, as approved by The Client(s).
2 - Project and Work
2.1 The Construction Service Provider shall perform the Work required by the Contract Documents for the renovation of a new home, located at the Place of Work, do and fulfill everything indicated in this Contract.
3 - Contract Documents
3.1 The Contract Documents consist of the following:
A. This Contract between Contractor and Client(s);
B. Scope of Work according to estimate provided, as approved by The Client(s);
C. Construction Drawings if applicable
D. Additional documents signed by both Parties during the course of this Contract. Extras and deletions are to be documented on a Change Order Form and signed by both Parties.
4 - Scope of Work
4.1 The Work includes those things indicated as included on the agreed upon estimate, and excludes those things indicated as excluded or by owner on Appendix A hereto. The Client(s) agree the Contractor can replace any specified product or material with a like or better specified product or material at its sole discretion.
5 - Contractor’s Price
5.1 The Client(s) shall pay the Contractor the price as outlined in the approved estimate provided plus applicable taxes including GST (the “Price”) to perform the Work as outlined in the Contract Documents. Except that the Contractor may, at its sole discretion, in considering the overall cost of the work performed charge an amount less than the Price.
5.2 The Client(s) shall pay a non-refundable deposit of 50% of the total, as listed in the estimate approved by The Client(s), to the Contractor on signing this Contract to be applied to the final invoice.
5.3 The Client(s) and each of them agree with the Contractor that they are jointly and severally liable for payments that come due under this Contract.
6 - Payment Schedule
6.1 The Contractor will submit an invoice to the Client(s) intermittently during the course of construction that proportion of the Price as at the Contractor’s sole discretion relates to the proportion of the Work performed including work performed under Change Orders. The Client(s) will pay the invoice in full upon receipt of the invoice. The Client(s) will not withhold payment any amount from the invoiced amount on account of an offsetting claim, deduction or disputed amount.
6.2 The Client(s) will pay the Contractor by way of EFT, cheque or e-transfer. The Contractor does not accept payment by credit card.
7 - Construction Schedule
7.1 The Work is to commence on the agreed upon date, or as soon thereafter as permits and schedules reasonably allow. Substantial completion to be obtained once all consultants have signed off on the project and the municipality with jurisdiction at the Place of Work has completed the final inspection and occupancy is obtained. Construction shall be completed in a reasonable period of time having regard for all of the circumstances, however, the Contractor shall not be liable under any circumstances for delay regardless of whether cause in part or wholly by third parties or the Contractor and regardless of whether the delay is beyond the Contractor’s control.
8 - Insurance:
8.1 The Contractor carries General Liability Insurance with limits not less than $1,000,000.00 per occurrence.
8.2 The Contractor is in compliance with Work Safe BC for worker’s compensation insurance in British Columbia.
8.3 The Client(s) shall carry Course of Construction Insurance for the Work throughout the duration of the project. Please contact your home insurance provider for details. On request, the Client(s) shall provide to the Contractor a proof of coverage.
9 - Defects or Deficiencies
9.1 The Client(s) shall provide the Contractor with written notice of any defect or deficiency in the Work within (30) thirty days of invoice for such work, failing which the Work performed is deemed to be accepted as is where is by the Client(s).
10 - Warranty
10.1 To the extent applicable, the Contractor will provide a home warranty in compliance with the requirements of the Home Owner Protection Act, SBC 1998, c.31 and amendments thereto.
10.2 The Contractor shall promptly correct any defects or deficiencies in the Work, which appear during the warranty periods specified in the Contract Documents.
10.3 The Client(s) shall promptly give the Contractor written and dated notice of observed defects and deficiencies that occur during the warranty period.
10.4 The Contractor shall not be responsible for the warranty of work or products supplied by or paid for directly by the Client(s) for the Work.
10.5 The Contractor will pass on product warranties are issued by the manufactures for the benefit of the Client(s) as applicable.
10.6 Contractor’s warranty is labour only and does not cover any manufactured products, the Client(s) should any material warranty claim to the manufacturer of the subject material, if applicable.
11 - Construction Safety
11.1 The Client(s) agree the Contractor has exclusive control, possession and access to the Place of Work while the Work is being performed. Accordingly, the Client(s) must make an appointment to with the Contractor to attend the Place of Work and comply with the directions of the Contractor at all times while onsite.
11.2 The Contractor shall comply with all occupational health and safety regulations of WorkSafeBC in British Columbia.
11.3 The Contractor shall be responsible for initiating, maintaining and supervision of all safety precautions and programs in connections with the performance of the Work.
12 - Subcontractors, Suppliers and Consultants:
12.1 The Contractor may enter into contracts or written agreements with Subcontractors Suppliers, and consultants to require them to do the Work as provided in the Contract Documents.
13 - Clean Up
13.1 The Contractor shall maintain the Work in a tidy manner and free from the accumulation of waste products and debris other than that caused by the Client(s).
14 - Changes to the Work
14.1 The Client(s), without invalidating the Contract Documents may make changes to the Work consisting of additions, deletions or other revisions to the Work by a written and Change Order if the change agreed upon by the Contractor and the Client(s) and signed by both of them or approved via an exchange of text messages or electronic mail. The Construction Service Provider reserves the right to refuse a change to the Scope of Work at its sole discretion.
14.2 When a change in the Work is proposed, the Client(s) shall provide a notice describing the proposed change in the Work to the Contractor and ask for the Contractor’s cost and additional time estimate (a “Change Order”). The Contractor shall within a reasonable period of time present the anticipated additional cost and additional time to the Contract to perform the change.
14.3 When the Client(s) and Contractor sign a Change Order, it modifies and forms a part of this Contract and is effective immediately.
14.4 Upon receipt of a Change Directive the Contractor shall proceed with the change in the Work. The Client(s) shall be responsible to pay the Cost of Work of the Change Order and the associated Price or at the sole option of the Contractor, may be responsible to pay the estimated cost of the Change Order (if applicable). The Contractor may, at its option, require its estimated Cost of Work and Price associated with any Change Order be paid in full in advance before changing the Work.
15 - Concealed or Unknown Conditions
15.1 If the Client(s) or Contractor discover conditions at the Place of Work which are subsurface or otherwise concealed physical conditions which existed before the commencement of the Work which differ materially from those indicated in the Contract Documents or physical conditions of a nature which differ materially from those ordinarily found to exist and generally recognized as inherent in construction activities of the character provided for in the Contract Documents, then the observing party shall notify the other party in writing before the conditions are disturbed and in no event later than 5 working days after the first observance of the condition.
15.2 The Client(s) and the Contractor will promptly investigate such conditions and make a finding. If the finding is that the condition differs materially and this would justify and increase or decrease in the Cost of Work, the Client(s) shall issue appropriate instructions for a change in the Work in the form of a Change Order. Work related to deterioration, rust, rot, water ingress and the investigation thereof will be performed on the basis of Cost of Work plus 25% basis.
16 - Permitting
16.1 It is the Client(s) sole responsibility to obtain building permits for the Work. If the Contractor assists the Client(s) in obtaining a building permit the Client(s) expressly relieves the Contractor of any liability associated with its involvement in the permitting process, even if by the Contractor’s negligence, the Client(s) suffer damage, loss and expense. The Client(s) expressly agree that the Contractor has no duty to advise the Client(s) regarding whether the Scope of Work or the Work meets the applicable building code and laws applicable to the Place of Work.
17 - Assignment
17.1 The Client(s) shall not assign this Contract without the written consent of the Contractor, which the Contractor may at its sole discretion refuse.
18 - Dispute Resolution
18.1 The signing Parties agree that in the event that there is a dispute as to the interpretation of this agreement, or as to the extent and makeup of the Work, then the Parties shall, prior to seeking legal remedies or filing a claim with the court, make prompt and reasonable efforts to meet and settle the dispute.
18.2 Every reasonable effort to resolve the dispute shall be made by both Parties, in good faith.
19 - Default by Client(s)
19.1 If payment of any of the amounts to be paid to the Contractor are not made within the time specified by the Contract Documents or if the Client(s) defaults on any of the other covenants or agreements, or the Client(s) or any of them become insolvent, enter into an assignment for the benefit of creditors or bankruptcy, or the Client(s) advise that they are unable to pay the total amount of the Cost of Work or the Price, the Contractor may at its sole discretion cease work and treat the Contract as repudiated forthwith on the occurrence of such default, and the Contractor may recover payment for the Work already completed plus damages, including loss of profit together with interest thereon at the same rate of interest as on overdue payments.
20 - Interest
20.1 Should the Client(s) fail to make payments as they become due under the terms of this Contract or in an award by arbitration or court, interest at the prime rate as determined by the Royal Bank of Canada plus 4% per annum on such unpaid amounts shall also become due and payable until the date of payment.
21 - Jurisdiction
21.1 The Parties agree this Contract is governed by and should be construed in accordance with the laws of British Columbia.
22 - Representation by the Client(s)
22.1 The Client(s) by their execution of the agreement confirm to the Contractor that they are all of the Client(s) of the lands and have the power and capacity to enter into this agreement and have the means available to pay the Contractor the Price and Cost of Work in accordance with the terms of this agreement.
22.2 The Client(s) agree that the Contractor will receive instructions and notifications with respect to this Contract only from <name of person> (the “Representative”) and the Contractor may proceed on the basis of instructions and notifications from the Representative without consulting all Client(s).
22.3 The Client(s) shall indemnify and hold harmless the Contractor, the Construction Service Provider’s agents and employees from and against claims, demands, losses, costs, damages, actions, suits, or proceedings arising out of the Contractor’s performance of the Contract which is attributable to a lack or defect in title or an alleged lack or defect in title to the Place of Work.
22.4 The Client(s) shall advise the Contractor forthwith of their/its inability to pay the Price and Cost of Work in accordance with this Contract.
23 - General Terms
23.1 This document may be executed in counterparts and conveyed by facsimile or electronically and these documents taken together will be deemed to form the Contract.
24.2 The Client(s) warrant that they do not rely on any precontractual representation by the Contractor except those incorporated in writing into this Contract.
24.3 The Client(s) will not assign this Contract without the written consent of the Contractor.
24.4 This Contract shall constitute the entire agreement between the Contractor and the Client(s).
24.5 If any part of this Contract is found to be unenforceable by a court of competent jurisdiction the offending section shall be struck, and the balance of the Contract will stand as written. The laws of British Columbia will govern this Contract and its interpretation.
24.5 The Parties agree that they have received or have had the opportunity to receive independent legal advice regarding the contents of this Contract and enter into this agreement willfully without duress, coercion, or undue influence.
24.6 This Contract shall ensure to and be binding upon the parties hereto, their heirs, administrators, executors, successors and assigns.
Version 1.1 October 16, 2023