Hubbard Construction LLC

Customer Terms and Conditions

I. DEFINITIONS.

“Contractor” means Hubbard Construction LLC
“Customer” means the Property owner, agent, representative, employee, contractor, or subcontractor of the Property owner requesting Contractor to provide services, labor, and materials.
“Property” means the entire area of the real property and/or parcel of land for which the Customer contracted with the Contractor for Work.
“Work” means the labor, materials, improvements, goods, and/or services to be furnished by Contractor to the Property, residence, or customer as described in the Customer Work Authorization.
“Contract” means the entire residential construction agreement, construction agreement, or any other agreement between the Contractor and the Customer for Work, including the Customer Work Authorization and any associated invoices.
“Completion” means the final completion of the Work under the Contract, including any extras or change orders reasonably required or contemplated under the Contract, except warranty work, replacement, repair of the Work performed under the Contract.

II. GENERAL.

These Standard Terms and Conditions apply to all Contracts and agreements to provide services, labor, materials to any Property, residence, or customer, including but not limited to, new construction, repairs, renovations, remodels, maintenance, upgrades, replacements, renewals, consumable supplies and all general labor and materials related to or incident thereto. These Standard Terms and Conditions are hereby integrated into all of Contracts. Any Contract or agreement varying these Standard Terms and Conditions must be in writing and signed by both parties.
These Standard Terms and Conditions shall govern and control every order for services, goods, labor and/or materials placed with the Company. By entering into any Contract or agreement with Contractor, Customer acknowledges, accepts, and agrees to be bound by these Terms and Conditions.
Estimates of the Company are not binding and are valid for ten (10) days from date of issuance. Estimates are subject to change until they are accepted by the Company. They shall include only the services, labor and/or materials explicitly specified therein.
Contracts will be deemed binding on Contractor once it has accepted the Contract in writing. This shall apply to all amendments to or alterations of the Contract.
The Customer hereby acknowledges that the Customer and Contractor have jointly reviewed the Work to be carried out, as described in the Contract. The price for same shall be listed in the Contract, excluding however, any additional costs, expenses, or additional labor and materials that may be required to perform additional Work over and above the scope of the Work described in the Contract but discovered once the Contractor commenced the Work. By way of example only and not by way of limitation, such additional Work may include dismantling for purposes of making areas accessible where Work is to be performed; cleaning and disposal of waste materials in compliance with applicable laws and regulations, and the discovery of additional tasks that must be completed to undertake the Work described in the Contract.
If concealed or unknown physical conditions are encountered at the Property that differ materially from those indicated in the Contract or from those conditions reasonably foreseeable in similar circumstances, the Contract payment terms shall be increased accordingly. Should Customer request additional Work or any way request to increase the scope of Work contained in the Contract, Contractor shall charge Customer for such additional work in addition to the price noted in the Work Authorization and any subsequent change orders.
If the Contractor’s actual cost of materials increases during the Work by more than 10% from the time the Contractor and Customer enter into the Contract due to economic factors outside of the Contractor’s control, then Customer shall pay for the actual increase in price of materials. Company shall promptly furnish all such increases in price of materials to Customer in writing. By way of example only and not by way of limitation, such price increases may apply to the price of lumber, glass, concrete and steel.
All materials under the Contract between Contractor and Customer shall be supplied and installed by Contractor, unless explicitly agreed to in writing.
All labor under the Contract between Contractor and Customer shall be provided by Contractor, unless explicitly agreed to in writing. For the avoidance of doubt, this includes the hiring of all tradesmen, sub-contractors, contractors, and/or any other type of laborer under the Contract. No tradesman, sub-contractors, contractors and/or any other type of laborer are permitted on the Property while Work is ongoing by Company, unless hired by Company.
While Work is ongoing on the Property, Customer and/or Customer’s representative must ask for permission to enter the job site.
Payment Schedule shall be determined on a per job basis depending on the scope and timing of the Work. Payment Schedule shall be included and signed off on in the Work Authorization.

III. CHANGES IN THE WORK. Should the Customer, construction lender, or any public body or inspector direct any modification or addition to the Work covered by this contract, the parties shall adjust the contract price accordingly through a Contract Change Order form provided by Contractor.

Contractor is not required to begin any modification or addition to the Work until both the Customer and the Contractor have signed a Contract Change Order. Parties must agree to the change in the contract price caused by such Contract Change Order. NO VERBAL CHANGES SHALL BE ALLOWED UNDER ANY CIRCUMSTANCE.
If the parties do not agree to the change in Contract price, the new Contract price shall be the sum total of the Contractor’s actual costs of all labor, equipment, subcontracts and materials, in addition to a Contractor’s fee of 20% of the total.
The parties may also increase the time within which the contract is to be completed through Contract Change Order.
Contractor shall promptly notify the Customer of (a) any latent physical conditions at the site differing materially from those indicated in the Contract, or (b) physical conditions previously unknown to the Customer which materially differ from those ordinarily encountered and generally recognized as inherent in work of a similar character to the Work in this Contract. Customer shall pay for any expenses incurred due to such conditions. Such conditions include but are not limited walls, ceilings, or floors that are not plumbed, level, flat or straight.
CONTRACTOR IS NOT RESPONSIBLE FOR DAMAGE RESULTING FROM PREEXISTING STRUCTURAL PROBLEMS. CONSTRACTOR IS UNDER NO OBLIGATION TO REPAIR ANY PRE-EXISTING STRUCTURAL ISSUES, UNLESS THE STRUCTURAL ISSUES HAVE BEEN IDENTIFIED PRIOR TO SIGNING AND INCLUDED IN THE SCOPE OF THE WORK.

IV. ESTIMATES. An estimate will define the scope and pricing on the Work Authorization form.

Customer understands and agrees that the estimate is not a final price and that any changes or additions to the work will change the final total price determined by Contractor.
Estimate presumes original walls, floors and framing are level, plumbed, square, and straight. Construction does not result in “Perfect Finishes” such as is found in manufacturing under a controlled environment. Contractor’s work will conform to existing standards and will be governed by references published by the National Association of Home Builders.

V. CUSTOMER’S RESPONSIBILITIES. Customer agrees to allow and provide Contractor and Contractor’s equipment access to the property.

VI. DELAYS. Contractor agrees to start and diligently pursue work through to completion, but shall not be responsible for delays for any of the following reasons:

failure of the issuance of all necessary building permits within a reasonable length of time,
funding of loans, disbursement of funds into funding control or escrow, acts of neglect or omission of Customer or Customer’s employees or Customer’s agent,
acts of God, stormy or inclement weather, strikes, lockouts, boycotts, or other labor union activities,
additional work ordered by Customer,
acts of public enemy, riots or civil commotion,
inability to secure material through regular recognized channels,
imposition of Government priority or allocation of materials,
failure of Customer to make payments when due,
or delays caused by inspection or changes ordered by the inspectors of authorized governmental bodies, or for acts of independent contractors, or holidays, or other causes beyond Contractor’s reasonable control.

VII. SUBCONTRACTORS. The Contractor may subcontract portions of this work to properly qualified subcontractors.

VIII. TAXES AND ASSESMENTS. Customer will pay for taxes and assessments of all descriptions associated with the Work.

IX. INSURANCE AND DEPOSITS. Contractor shall carry liability insurance to cover any damages to Customer’s property resulting from the acts of Contractor. Customer shall obtain and pay for liability insurance against injury to his own employees and persons under persons on the job site at Customer’s invitation. Customer shall also procure at its own expense and before the commencement of work hereunder “all-risk” insurance with course of construction, theft, vandalism and malicious mischief endorsements attached, the insurance to be in a sum at least equal to the contract price. The insurance shall name the Contractor and any subcontractors as additional insureds, and will be written to protect Customer, Contractor and subcontractors as their interests may appear.

Should Customer fail to procure such insurance, Contractor may do so at the expense of Customer, but is not required todo so. Customer and Contractor waive rights of subrogation against each other to the extent that any loss is covered by valid and collectible insurance. If the project is destroyed or damaged by accident, disaster, or calamity such as fire, storm, flood, landslide, subsidence or earthquake, Customer as extra work shall pay for work done by Contractor in rebuilding or restoring the project.

X. RIGHT TO STOP WORK. Contractor may stop work if Customer fails to timely pay under the terms of the Contract and this Agreement; Contractor may keep the job idle without penalty or liability until Customer delivers all due payments. Failure to make payment, within five (5) days of the due date, is a material breach of this Agreement and shall entitle Contractor to cease any further work.

XI. CANCELATION OF SERVICES. Contractor may cancel this agreement with 14 days written notice at any time and for any reason.

XII. CERTAIN CUSTOMER OBLIGATIONS.

Customer shall make its materials and product selections within Contractor’s deadlines. If Customer fails to do so, it shall pay additional overhead fees to Contractor.
If Customer fails to make timely selections, Contractor may make selections on behalf of Customer with standard items.
Customer waives any right of recovery or subrogation against Contractor to the extent of Customer’s insurance coverage.
Customer shall obtain and maintain Property, Building, Personal Property, Builders Risk, “All Risk” and Premises Liability Insurance covering the Work, including all materials and supplies on site but not yet installed and already installed material.
Customer agrees to make claim for defects in construction pursuant to the Missouri Construction Defect Claims Act. Customer agrees to remove cash, jewelry, firearms, collectibles, or any valuable items prior to the first day of the Work.
If Customer reduces or removes any line items from the Contract’s overall scope of work, the overhead and profit calculated for the entire job will still be applied to Contractor’s overall scope and will be paid directly to Contractor.
Liquidated Damages. If Customer hires another contractor to complete the Work that Contractor has been hired to complete after the signing of this Contract, the Customer will be held financially responsible for paying Contractor no less than, but not limited to $5,000.00 for their time, administrative cost, overhead, profit, etc., in addition to any legal or administrative costs. This amount is agreed upon as a reasonable forecast of the harm that might be caused by the breach, considering the anticipated or actual loss caused by the breach and the difficulties of proof of loss.

XIII. CLEAN UP. Contractor will remove from Customer’s property all debris and surplus material created by the operation and leave it in a neat and broom-clean condition.

XIV. WARRANTIES. Contractor warrants against defects in original materials or workmanship for a period of one (1) years following Completion. In addition, Contractor warrants the basic structural components of the Work (i.e. foundation, concrete or wood floor system, loadbearing members of external walls and interior partitions, and roof trusses and rafters) against defects in original materials or workmanship for a period of one (1) year following Completion. Contractor will repair or replace, at its option and at no charge to Owner, any work considered defective by industry guidelines, provided notice of defect is given by Owner to Contractor within the applicable warranty period.

XV. COMPLIANCE WITH LAWS. In connection with the performance by Contractor of duties pursuant to this Agreement, Contractor shall obtain and pay for all permits and comply with all federal, state, county and local laws, ordinances and regulations.

XVI. LIMITATION OF LIABILITY. Contractor’s liability is limited to the total amount paid for services rendered. Customer hereby agrees to release, hold harmless, defend (pay attorneys’ fees, expert fees, arbitration costs and court costs) and indemnify Contractor from any and all damages, claims for injuries or damages of whatsoever nature, known or unknown, growing or arising out of or connected/related with the Work, or claims or actions that arise from: a) conditions that pre-existed the specific loss or event Contractor was hired to address; b) the premature removal of equipment or termination of work against Contractor recommendations; c) any refusal to allow Contractor to perform any procedures Contractor recommends; and d) mysterious disappearances of personal property. Problems that may occur for which Contractor will be released, indemnified, defended and held harmless may include, but are not limited to; mold, bacteria, structural damage, personal injury to any party, indoor air quality contamination, and environmental illnesses (including allergies, asthma and alleged toxic effects). The Customer further understands and acknowledges that upon execution and signing of this Work Authorization they assume full risk and responsibility for all losses, damages, assessments, penalties, charges, expenses, costs, injuries not covered under Workers Compensation, and/or liabilities that they may hereafter incur or discover which in any way arise out of or relate to the Work.

XVII. ATTORNEYS FEES, JURISDICTION, AND VENUE. The Agreement shall be governed by, and construed in accordance with, the laws of Missouri. Venue of any disputes arising from any Agreements is mutually agreed upon to be in Platte County, Missouri. The prevailing party shall be entitled to reasonable attorney’s fees and other legal associated costs.

XVIII. ASBESTOS AND HAZARDOUS WASTE. Unless the contract specifically calls for the removal, disturbance, or transportation of asbestos or other hazardous substances, the parties acknowledge that such work requires special procedures, precautions, and/or licenses. Contractor may halt work upon any finding of hazardous substances or unsafe conditions. Contractor will notify Customer upon the discovery of any such items. Customer shall notify Contractor of any known hazardous items at the site including; asbestos, chemicals, lead, or other and Customer shall indemnify and hold harmless Contractor from and against any and all claims arising from or related to the Conditions, and Contractor shall be entitled to payment from Customer for all costs, expenses and damages, including reasonable attorneys’ fees and expenses, it incurs as a result of the Conditions. If conditions cause delay to project of more than one week, Contractor may terminate this agreement. While Contractor performs work related to and including the removal of mold, mold spores, lead, and asbestos, Customer agrees to hold Contractor harmless from all claims for physical, personal, and/or mental damages related to or consisting of mold, microbial growth, lead, asbestos, etc. of any sort or manner. Said additional Work shall be treated as an extra under the contract.

XIX. SEVERABILITY. In the event any provision of this Agreement is deemed invalid or unenforceable by any court of competent jurisdiction the same shall be deemed severed from the remainder of this Agreement and shall not cause the invalidity or unenforceability of the remainder of this Agreement. If such provision is deemed invalid due to its scope or breadth, such provision shall be deemed valid to the extent of the scope or breadth permitted by law.