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THIS CONSTRUCTION PROJECT MANAGEMENT AGREEMENT is entered into between Parcel Owner (hereinafter referred as the Owner), and CONSTRUCTION MANAGEMENT GROUP OF WASHINGTON LLC   (hereinafter referred as the Manager).  Owner understands that this agreement is for project management and administrative services.  This is not work performed by a General Contractor and Owner understands and acknowledges that Owner is working as an owner/builder in full control of the Project decisions and responsible for any risks and not with a General Contractor.

 

RECITALS:

WHEREAS, Owner intends to construct a single family home based on the uploading of attached floor plan (herein after referred as the Project) and desires to engage Manager to render general management services with respect thereto; and

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WHEREAS, Manager has expertise in connection with the management of construction projects and desires to manage the Project;

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NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter contained, the parties agree as follows:

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MANAGEMENT OF PROJECT. In connection with the uploaded floor plan, Owner hereby authorizes Manager, as an Independent Contractor licensed by the State of Washington, and Manager does hereby agree to undertake all construction management obligations and services with respect to this Agreement and Project requirements.

 

Owner hereby engages Manager to manage Project on behalf of Owner in accordance with the following:

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1. Manager shall provide Owner with the planning, budgeting, scheduling, expediting, coordinating and supervising necessary for the timely execution of the Project by all workers, suppliers of material, contractors, subcontractors and others (collectively, ‘Contractors’) supplying materials for services to the Project.

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2. Owner will sign off on all design requirements and/or any changes requested on the Project.

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3. Owner will sign off on all budgets and/or additions or changes to the budget as the Project progresses.  Manager will use the best effort to obtain and verify such estimate but does not warrant that the actual Project costs shall be exactly as stated.  However, Owner will be notified and all changes will be signed off on before work will commence.

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4. Manager shall take all reasonable steps on behalf of Owner to ensure the project is completed in a good and workmanlike manner in accordance with the design specifications and cost estimate of Project, subject to any changes.

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5. The detail of services to be provided by Manager for Owner are as set forth in Schedule “A” attached.

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6. The detail of obligation to be provided by Owner in order for Manager to complete their duties are set forth in Schedule “B”.

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7. In performing the duties under this Agreement, Manager shall be the limited agent of Owner for the purpose of obtaining, reviewing and discussing with Owner all quotes and bids by Contractors. Contracts, purchase orders and similar documents for the Project shall be in the name of Owner and signed by Owner. All agreements with subcontractors, workers for the purpose of performing work or service to the Project is entered into between the Owner and subcontractors and workers, not the Manager.

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8. Nothing in this Agreement shall prevent or restrict Manager from acting as a Contractor for the purpose of performing work or service to the Project, provided such shall be fully disclosed to Owner.

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9. Owner hereby indemnifies and holds harmless Manager and Manager’s employees from all debts, claims and liabilities incurred in the non-performance of functions under any agreements between Owner and subcontractors and workers.

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10. Manager’s fee shall be as outlined below: In addition to such fee, Owner shall pay 100% of Goods and Services Tax.

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COMPENSATION. Owner agrees to pay Manager the sum of $19,000.00. The payment schedule consists of a $1,000.00 REFUNDABLE start card deposit on the date of contract signing.  This will hold a spot on our schedule.  The second payment of $6,250.00 must be paid before we file your permit documents with the county.  After this 2nd payment is made, we will start gathering bids and putting together your budget sheet and the build schedule.  Your 3rd payment of $6,250.00 must be paid after you receive your framing inspection approval and then we will start shopping for deals and ordering finishes that you choose. Final payment is due upon occupancy permit issuance.

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TERM. This Contract will terminate automatically upon the county’s issuance of occupancy permit for said Project.

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WORKING HOURS. Time is of the essence for this Agreement. The parties acknowledge that the Manager will devote the time necessary to fulfill his/her obligations with a projected Project completion date of 180 days after we start the foundation pour.  If the Project runs shorter or longer, Manager will advise and consult with Owner as to the reason why and work to rectify the situation within Managers scope of responsibility. This is a PROJECTED date and extending this date does not nullify the agreement; a new projected and reasonable completion date will be assigned at that time.

 

INDEMNITY. To the fullest extent permitted by law,  Owner shall indemnify, defend and hold harmless Manager and Manager’s agents and employees from and against all claims, damages, losses and expenses, including, but not limited to, attorneys’ fees arising out of or resulting from the performance or non-performance of any contractual obligations with contractors and any agencies involved in the Project.

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REMEDIES. In addition to any and all other rights a party may have available according to law, if a party defaults by failing to substantially perform any provision, term or condition of this Agreement (including without limitation the failure to make a monetary payment when due), the other party may terminate the Agreement by providing written notice to the defaulting party. This notice shall describe with sufficient detail the nature of the default. The party receiving such notice shall have 10 days from the effective date of such notice to cure the default(s). Unless waived by a party providing notice, the failure to cure the default(s) within such time period shall result in the automatic termination of this Agreement.

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FORCE MAJEURE. If performance of this Agreement or any obligation under this Agreement is prevented, restricted, or interfered with by causes beyond either party's reasonable control ("Force Majeure"), and if the party unable to carry out its obligations gives the other party prompt written notice of such event, then the obligations of the party invoking this provision shall be suspended to the extent necessary by such event. The term Force Majeure shall include, without limitation, acts of God, plague, epidemic, pandemic, outbreaks of infectious disease or any other public health crisis, including quarantine or other employee restrictions, fire, explosion, vandalism, storm or other similar occurrence, orders or acts of military or civil authority, or by national emergencies, insurrections, riots, or wars, or strikes, lock-outs, work stoppages, or other labor disputes, or supplier failures. The excused party shall use reasonable efforts under the circumstances to avoid or remove such causes of non-performance and shall proceed to perform with reasonable dispatch whenever such causes are removed or ceased. An act or omission shall be deemed within the reasonable control of a party if committed, omitted, or caused by such party, or its employees, officers, agents, or affiliates.

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ARBITRATION. Any controversies or disputes arising out of or relating to this Agreement shall be resolved by binding arbitration in accordance with the then-current Commercial Arbitration Rules of the American Arbitration Association. The parties shall select a mutually acceptable arbitrator knowledgeable about issues relating to the subject matter of this Agreement. In the event the parties are unable to agree to such a selection, each party will select an arbitrator and the two arbitrators in turn shall select a third arbitrator, all three of whom shall preside jointly over the matter. The arbitration shall take place at a location that is reasonably centrally located between the parties, or otherwise mutually agreed upon by the parties. All documents, materials, and information in the possession of each party that are in any way relevant to the dispute shall be made available to the other party for review and copying no later than 30 days after the notice of arbitration is served. The arbitrator(s) shall not have the authority to modify any provision of this Agreement or to award punitive damages. The arbitrator(s) shall have the power to issue mandatory orders and restraint orders in connection with the arbitration. The decision rendered by the arbitrator(s) shall be final and binding on the parties, and judgment may be entered in conformity with the decision in any court having jurisdiction. The agreement to arbitration shall be specifically enforceable under the prevailing arbitration law. During the continuance of any arbitration proceeding, the parties shall continue to perform their respective obligations under this Agreement.

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GOVERNING LAW. This Agreement shall be construed in accordance with the laws of the State of Washington.

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WAIVER OF CONTRACTUAL RIGHT. The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Agreement.

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NOTICE. Any notice or communication required or permitted under this Agreement shall be sufficiently given if delivered in person or by certified mail, return receipt requested, to the address set forth in the opening paragraph or to such other address as one party may have furnished to the other in writing.

 

SEVERABILITY. If any provision of this Agreement will be held to be invalid or unenforceable for any reason, the remaining provisions will continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision will be deemed to be written, construed, and enforced as so limited.

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ENTIRE AGREEMENT. This Agreement contains the entire agreement of the parties, and there are no other promises or conditions in any other agreement whether oral or written concerning the subject matter of this Agreement. This Agreement supersedes any prior written or oral agreements between the parties.  Change orders may be issued as the Project progresses and all change orders will be signed by Owner.

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AMENDMENT. This Agreement may be modified or amended in writing, if the writing is signed by the party obligated under the amendment.

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ASSIGNMENT. Either party may assign or transfer this Agreement without the prior written consent of the non-assigning party.

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BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of Owner and Owner's successors or assigns, and shall be binding upon and inure to the benefit of Manager and Manager's heirs, personal representatives, successors or permitted assigned. The parties have hereunto set their hands the day and year first above written.

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ATTORNEYS' FEE. If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys' fees in addition to any other relief to which that party may be entitled.

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Schedule “A”

Manager's duties shall include the following:

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1. Consult and advise Owner on aspects of the Project;

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2. Review agreements which Owner may desire to enter into with respect to the Project;

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3. Preparation of permit paperwork and submission to the county after receiving approval from Owner;

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4. Preparation of budgets, timelines, reports, scheduling, evaluations, cost estimates, bid packages in connection with the selection of contractors, materials, and issuance of permits;

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5. Confirm invoices and work with Owner to issue payments for contractors, subcontractors, suppliers and other ordinary expenses related to the Project;

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6. Arrange for scheduled deliveries to ensure materials arrive.

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Schedule “B”

Owners duties shall include, without limitation, the following:

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1. Review and approve or deny in a timely manner all agreements brought forth by Manager in which Owner may desire to enter into with respect to the Project, namely but not limited to, subcontractor agreements, design, materials and product purchases;

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2. Review and approve or deny in a timely manner all budgets, timelines, reports, scheduling, evaluations, cost estimates, bid packages in connection with the selection of contractors, materials, and issuance of permits brought forth by Manager in order to keep the Project moving forward;

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3. Approve invoices to issue payments for contractors, subcontractors, suppliers and other ordinary expenses related to the Project;

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4. Take all necessary safety precautions and hold appropriate insurance such as Builders Risk Insurance, General Liability and Professional Liability Insurance.

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5.  Walkthroughs - After every step in the build you will have a walk-through to inspect the contractors work.  This is when you'll measure the door and window openings, check for missing caulk around trim inside and outside, look for holes in drywall, etc.  The county will ensure during their inspections that the building is solid and meets building codes but design inspection is up to you.

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6.  Deliveries - There are times when a contractor will need something, like more grout for tiling or another 2x10 board in order to finish a job.  Typically a General Contractor will run to the store and grab it but in this case, you're acting as the GC so you're responsible for that.

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7. Coordinate Utility Installation -  Responsible for finding and hiring dirt work people to dig utility trenches as well as coordinate with the plumber, electrician, Public Works department so that your home is connected to a septic system, water, power, gas, propane, telephone, internet, etc.

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8.  Jobsite Cleanup - The owner is responsible for cleaning up construction debris and garbage left on the jobsite in order to provide a proper work environment for contractors.

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Owner understands that this agreement is for project management and administrative services.  This is not work performed by a General Contractor and Owner understands and acknowledges that Owner is working as an owner/builder and not with a General Contractor.