Commonwealth of Pennsylvania Rev.

133A2CC

CONSTRUCTION CONTRACT AGREEMENT

This Construction Contract Agreement (this “Agreement”) is made as of the 17 day of January, 2018 by
and between Anthony E Cummins, an individual located at 4998 Driftwood Road, San
Francisco, CA 94108 (“Owner”) and David C Ortiz an individual located at 2318 Garfield Road, Peoria,
IL 61604 ("Contractor"). Owner and Contractor may each be referred to in this Agreement individually as
a “Party” and collectively as the “Parties.”

WHEREAS, Contractor is a duly licensed general contractor in the State of Illinois, in good standing, with
contractor’s license number 1234567; and

WHEREAS, Owner owns the property located at 3790 Carriage Lane, Girardville, PA 17935 (the
“Property”) and desires to have certain work performed by Contractor at the Property.

NOW THEREFORE, in consideration of the mutual promises and for other good and valuable
consideration exchanged by the Parties as set forth in this Agreement, the Parties, intending to be legally
bound, hereby mutually agrees as follows:

1. Description of Work. Contractor shall perform the work described in Exhibit A (the “Work”), in
accordance with Owner’s contract plans and specifications, this Agreement and any Change Order, as
defined herein, (collectively, the "Contract Documents") at the Property.

2. Contract Price and Payments. Owner agrees to pay Contractor for the Work the total amount of
$10,000.00 USD (the “Contract Price”). Payment of this amount is subject to additions or deductions in
accordance with any mutually agreed to changes and/or modifications in the Work, and the other
documents to which this Agreement is subject. Payment for the Work will be by wire transfer, according to
the following schedule:

• $10,000.00 balance due upon completion of the Work.

3. Certificate of Completion. Upon completion of the Work, Contractor shall notify Owner that the Work
is ready for final inspection and acceptance. When Owner finds the Work acceptable and this Agreement
fully performed, Contractor shall issue Owner a “Certificate of Completion” stating that the Work has been
completed in accordance with the Contract Documents and the entire balance of the Contract Price is due
and payable. Owner shall make the final payment within 7 days after receiving a Certificate of
Completion. Owner by making final payment waives all claims except those rising out of: (a) any faulty
Work appearing after completion; (b) any Work that does not comply with the Contract Documents; and
(c) outstanding claims or liens. Contractor, by accepting final payment, waives all claims except those
previously made in writing, and which remain unsettled at the time of acceptance.

4. Materials and Labor. Contractor shall provide and pay for all labor and equipment, including tools,
construction equipment, machinery, transportation and all other facilities and services, and all materials
necessary for the completion of the Work. All materials shall be good quality and new, unless the
Contract Documents require or permit otherwise. Contractor may substitute materials only with the prior
written approval of Owner.

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5. Starting and Completion Dates. The Work under this Agreement shall begin on February 07, 2018,
and shall be completed by February 28, 2018.

6. Instructions. Owner shall give all instructions to Contractor, and shall furnish all necessary surveys for
the Work. Unless otherwise provided in the Contract Documents, Owner shall secure and pay for all
necessary easements, assessments or other approvals necessary for permanent structures or permanent
changes in existing structures or facilities which are necessary to complete the Work.

7. Licenses and Permits. Owner shall obtain all licenses and permits necessary for proper completion of
the Work. Contractor is responsible for the cost of any necessary permits or licenses.

8. Laws and Regulations. Contractor shall perform the Work in a workmanlike manner. Contractor shall
comply with all applicable federal, state, and local laws, regulations and ordinances, and any safety
requirements of Owner (the “Applicable Laws”) in the performance of the Work. Contractor shall promptly
notify Owner upon discovery of any variance between the Applicable Laws and the Construction
Documents.

9. Supervision of Construction. Contractor shall be solely responsible for and shall supervise and direct
all construction under this Agreement. Contractor shall provide competent and suitable personnel to
perform the Work and shall at all times maintain good discipline and order at the Property. Contractor will
at all times take all reasonable precautions for the safety of its employees and the public at the Property.
Contractor agrees to assume full responsibility for the acts, negligence, and/or omissions of its employees
and any subcontractors and their employees.

10. Record Documents. Contractor shall maintain in a safe place at the Property one record copy of all
drawings, specifications, addenda, written amendments, and the like in good order and annotated to
show all changes made during construction, which will be delivered to Owner upon completion of the
Work.

11. Utilities. Contractor shall pay for all permanent electric, water, phone, cable, sewer and gas service
as needed to perform the Work. Owner shall pay for the installation, connection and removal of all
temporary utilities on the Property during the performance of the Work. All temporary utilities shall
conform and adhere to the Applicable Laws.

12. Hazardous Materials. Except as otherwise provided in the Contract Documents, Contractor shall be
responsible for all Hazardous Materials brought to the Property by Contractor. Hazardous Materials shall
include radioactive materials, asbestos, polychlorinated biphenyls, petroleum products, crude oil,
flammable materials, chemicals or solvents known to cause cancer or reproductive toxicity, pollutants,
contaminants and toxic substances which are restricted, prohibited or regulated by any agency of
government in its manufacture, use, maintenance, storage, ownership or handling. If Contractor discovers
any Hazardous Materials on the Property, Contractor shall immediately notify Owner and may cease
working until the material or substance has been rendered harmless. Owner shall defend, indemnify and
hold harmless Contractor, any subcontractors, and their respective agents and employees from and
against all claims, damages, losses and expenses, including attorney’s fees, arising out of or resulting
from contact with the Hazardous Substance in performance of the Work resulting in bodily injury, illness
or death, or injury or property damage, provided such claim, damage, loss or expense is not the result of
any negligent act or omission by the party seeking such indemnity.

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13. Warranty. Contractor warrants that the Work shall be in accordance with the Contract Documents
and free from material structural defects. Contractor shall redo or repair any Work not in accordance with
the Contract Documents or any defects caused by faulty materials, equipment or workmanship for a
period of 10 year(s) from the date of completion of the Work.

14. Condition of the Property. Contractor agrees to keep the Property and adjoining driveways free and
clear of waste material and rubbish. Contractor shall confine the storage of materials and equipment and
the operations of employees to the Property, and shall not unreasonably encumber the Property with
materials or equipment. Contractor shall be fully responsible for any damage to the Property or areas
contiguous thereto resulting from the performance of the Work. At the completion of the Work, Contractor
shall remove all waste materials, rubbish and debris from and about the Property as well as all tools,
appliances, construction equipment and machinery, and surplus materials, and shall leave the Property
clean and ready for occupancy by Owner.

15. Inspection. Owner shall have a right to inspect the Work at any time and request that Contractor
promptly correct any Work that is defective or does not conform to the Contract Documents. If required,
the Work shall be inspected and certified by the appropriate state or local agency or health officer at each
necessary stage.

16. Right to Stop Work. If Contractor fails to correct any defective Work or repeatedly fails to perform the
Work in accordance with the Contract Documents, Owner shall have the right to order Contractor to stop
performing the Work, or any portion thereof, until the cause for such order is eliminated.

17. Subcontracts. Contractor shall furnish to Owner a list of names of subcontractors proposed to
perform principal portions of the Work. Contractor shall not employ any subcontractor to whom Owner
reasonably objects. A subcontractor, for the purposes of this Agreement, shall be a person with whom
Contractor has a direct contract for work at the Property. All contracts between Contractor and
subcontractor shall be in accordance with the terms of this Agreement and the Contract Documents.

18. Work Changes. Owner reserves the right to order changes to the Work in the nature of additions,
deletions or modifications, without invalidating this Agreement, and agrees to make corresponding
adjustments in the Contract Price and time of termination if applicable. All changes will be authorized in a
written “Change Order” signed by Owner and Contractor, which shall be incorporated by reference herein.

19. Other Contractors. Owner reserves the right to enter into other contracts in connection with the
Work. Contractor shall cooperate with all other contractors so that their work shall not be impeded, and
shall give them access to the Property as necessary to perform their contracts.

20. Indemnification. Contractor agrees to defend, indemnify and hold harmless Owner and its agents
and employees, from and against all claims, actions, liabilities, suits, demands, injuries, obligations,
damages, losses, settlements, judgments, fines, penalties, costs and expenses, including reasonable
attorneys' fees, arising out of any negligent act or omission by Contractor, a subcontractor or anyone
directly or indirectly employed by them in the performance of the Work resulting in bodily injury, illness or
death, or for property damage, including loss of use, unless caused by the sole negligence or willful
misconduct of Owner.

21. Contractor’s Insurance. Contractor agrees to maintain at its own expense during the entire period of
construction at the Property:

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 A. General Liability Insurance. Such general liability insurance as will protect Contractor from
claims for property damage and bodily injury, with limits of liability not less than $1,000.00 for
each occurrence.

Contractor shall name Owner as an additional insured. Proof of such insurance shall be filed by
Contractor with Owner within a reasonable time after execution of this Agreement.

22. Waiver of Subrogation. Owner and Contractor each waive any and all claims or rights to recovery
against the other Party for any loss or damage to the extent such loss or damage is covered by insurance
or would be covered by any insurance required under this Agreement. Owner and Contractor shall cause
each insurance policy carried by Owner or Contractor relating to the Property to include or allow a full
waiver of any subrogation claims.

23. Time of Essence. All times stated in this Agreement or in the Contract Documents are of the
essence. Contractor agrees that such times are reasonable for performing and completing the Work.

24. Extension of Time. The times stated in this Agreement may be extended for such reasonable time as
Contractor may determine when performance of the Work by Contractor is delayed by a Change Order,
labor disputes, fire, unusual delay in deliveries, abnormal adverse weather conditions, unavoidable
casualties, or other causes beyond Contractor’s control or which justify the delay.

25. Early Termination for Breach of Contract.

A. Contractor's Termination. Contractor may, on 30 days’ written notice to Owner, terminate this
Agreement before the completion of the Work when for a period of 30 days after a progress
payment is due, through no fault of Contractor, Owner fails to make the payment. On such
termination Contractor may recover from Owner payment for all Work completed and for any loss
sustained by Contractor for materials, equipment, tools or machinery to the extent of actual loss
thereon, plus loss of a reasonable profit.
B. Owner's Termination. Owner may, on 30 days’ notice to Contractor, terminate this Agreement
before the completion of the Work, and without prejudice to any other remedy Owner may have
when Contractor defaults in the performance of any provision of this Agreement, or fails to carry
out performance of the Work in accordance with the provisions of the Contract Documents.

26. Disputes. Any dispute arising from this Agreement shall be resolved through binding arbitration
conducted in accordance with the rules of the American Arbitration Association.

27. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original and all of which together, shall constitute one and the same document.

28. Headings. The section headings herein are for reference purposes only and shall not otherwise affect
the meaning, construction or interpretation of any provision of this Agreement.

29. Notices. Any notice or communication given or made to any Party under this Agreement shall be in
writing and delivered by hand, sent by overnight courier service or sent by certified or registered mail,
return receipt requested, to the address stated above or to another address as that Party may
subsequently designate by notice and shall be deemed given on the date of delivery.

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30. Assignment. No Party hereto shall have the right to assign its rights or delegate its duties hereunder
without the written consent of the other Party, which consent shall not be unreasonably withheld.

31. Binding Effect. This Agreement shall be binding and enure to the benefit of the Parties and their
respective legal representatives, heirs, administrators, executors, successors and permitted assigns.

32. Governing Law. This Agreement and the rights and obligations of the Parties hereto shall be
governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without
regard to its conflicts of laws provisions.

33. Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable in whole
or in part, the remaining provisions shall not be affected and shall continue to be valid, legal and
enforceable as though the invalid, illegal or unenforceable part had not been included in this Agreement.

34. Entire Agreement. This Agreement contains the entire agreement between the Parties hereto with
respect to the subject matter hereof, and supersedes all prior negotiations, understandings and
agreements.

35. Amendments. This Agreement may not be amended or modified except by a written agreement
signed by the all of the Parties.

36. Waiver. No Party shall be deemed to have waived any provision of this Agreement or the exercise of
any rights held under this Agreement unless such waiver is made expressly and in writing. Waiver by any
Party of a breach or violation of any provision of this Agreement shall not constitute a waiver of any other
subsequent breach or violation.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

Anthony E Cummins
Owner Signature Owner Full Name

David C Ortiz
Contractor Signature Contractor Full Name

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 Exhibit A

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 Cost/Cost-Plus: In a cost-plus contract, the
GENERAL INSTRUCTIONS owner reimburses the contractor for all costs
incurred during the construction such as
WHAT IS A CONSTRUCTION materials and labor. The owner also pays an
CONTRACT AGREEMENT? agreed upon profit margin, usually a flat fee or
percentage of total costs.
A Construction Contract Agreement is a written
document between a property owner and a Unit Price: A unit price arrangement involves
general contractor, specifying the construction, the parties placing a price on every unit, or
renovations, alterations, or other work to be relevant piece of work, such as, by item, by
done on the property owner’s home or land. This cubic yard, by linear foot, or per hour.
document outlines which parties will be
engaged, the price to be paid, the rights of each WHAT SHOULD BE INCLUDED?
party, and the date construction will commence
and be completed.
A simple document will identify the following
WHEN IS IT NEEDED? basic elements:

You should use a Construction Contract • Owner

Agreement if you are on either end of the • General contractor
process of building, renovating or altering a
• License number
building or structure. Perhaps you’ve finally
decided to build your dream home and start • Worksite
living happily ever after. Happily ever after might • Description of work
have to wait because of unreasonable contractor • Contract price and payments
delays or unexpected, excessively high costs. Or • Contract documents:
maybe you are a local contractor looking to grow • Materials and labor
your business and take on bigger construction • Starting and completion dates
projects. Either way, you’ll want to make sure • Licensing and permits
you have an agreement in writing to act as the
• Subcontracts
blueprint until construction is completed to iron
out the wrinkles. • Work changes
• Warranties
This agreement allows the parties to put into
writing the exact nature and details of the work OTHER NAMES
to be performed, and the responsibilities of each
party throughout the course of construction. In A Construction Contract Agreement may also be
addition, it also details the payment terms of the called:
project. In general, there are three different
types of pricing arrangements: • Construction Agreement
• Construction Contract
Lump Sum: Also known as the traditional “fixed
• Construction Management Agreement
price” contract, it is the most common pricing
arrangement for construction contracts. In a • Service Agreement for Construction
lump sum contract, the parties agree on a fixed • Construction Services Contract
price, based on the contractor’s appraisal of • Contract for Construction
costs of a complete and final design. Lump sum • Construction Contractor Agreement
contracts take into consideration all materials, • Contractor Agreement
subcontracts, labor, indirect costs, profit, and
more.

Construction Contract Agrement (Rev. 133A2CC)