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Subcontract Agreement(Short Form)
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Article 5
(a) Should Subcontractor at any time fail to prosecute and complete the Work in accordance with the Progress Schedule or as herein provided or
fail to diligently and continuously perform his Work, or if in the opinion of Contractor the Work of Subcontractor cannot be completed in the time
period set forth, or if Contractor is notified or Subcontractor's failure to pay for any material or labor used on the Project, or in the event of a
strike or stoppage or Work resulting from a dispute involving or affecting the labor employed by Subcontractor or his Subcontractors, or if
Subcontractor fails to perform any of the requirements herein, then such event shall be deemed a default and Contractor shall notify
Subcontractor to correct such default and shall specify in such notice the action to be taken and a reasonable date by which the default shall be
(b) If a default occurs and is not corrected on or before the date specified in the notice to Subcontractor, Contractor shall be entitled to exercise
either or both of the following remedies as well as any other remedies available, including but not limited to binding and consolidated arbitration
in accordance wit the terms of the General Contract or through litigation in a court of law.
(1) Contractor may immediately take any action necessary to correct such default, including specifically the right to provide labor, overtime
labor and materials and may deduct the cost of correcting such default from payment due, or that may become due to Subcontractor.
(2) Contractor may terminate this Subcontract and the employment of Subcontractor, take possession of Subcontractor's materials, tools and
equipment used in performing such Work, and employ another Subcontractor or use the employees of Contractor to finish the remaining
Work to be performed hereunder. Contractor may deduct the costs of completing the remaining work from the unpaid contract price, and
if the cost of completing the remaining Work exceeds the unpaid Contract amount, Subcontractor shall pay to Contractor such excess
costs, including but not limited to overhead and attorney's fees.
Contractor, in any such event may also refrain from making any further payments under this Subcontract to Subcontractor until the entire project shall
be fully finished and accepted by Owner, at which time, if the unpaid balance of the amount to be paid under this Subcontract shall exceed the
expense incurred by Contractor to Subcontractor, but if such expenses and damages shall exceed such unpaid balance Subcontractor shall promptly
pay the difference to Contractor if Contractor does not terminate the right of Subcontractor to proceed, Subcontractor shall continue with the balance
of the Work. If Owner is damaged by reason of any breach by Subcontractor of this Subcontract the Subcontractor shall, subject to any defenses and
offsets to which Subcontractor may be entitled under this Subcontract, pay Owner such damages.
Article 6
(a) In consideration of the sum of One Dollar ($1.00) paid by Contractor to Subcontractor, receipt of which is hereby acknowledged, for the
indemnification hereinafter set forth. Subcontractor agrees to indemnify and save Contractor and Owner harmless against and from any and all
claims arising from the conduct, management or performance of the Work, including without limitation, any and all claims arising from any
condition or the Work arising from any breach or default of the part of Subcontractor in the performance of any covenant or agreement on his
part to be performed, pursuant to the terms of this Subcontract or arising from any act or negligence of Subcontractor or any of his agents,
Subcontractors, servants, employees or licensees , or arising from any accident, injury or damage whatsoever caused by any person, firm or
corporation, brought thereon, and in case any action or proceeding is defended against Contractor, shall defend against such action or
proceeding by counsel satisfactory to Contractor and Owner, unless such action or proceeding is defended against by counsel for any carrier of
public liability insurance referred by herein.
(b) Prior to commencing work, Subcontractor shall procure and maintain in force at Subcontractor's expense until the completion and final
acceptance of the Work, the following insurance from companies satisfactory to Contractor in the indicated amounts. Workers' Compensation
Insurance (Statutory Maximum at Job Site location) and Employees Liability Insurance, Comprehensive General Liability Insurance
($1,000,000.00 combined single limit) including premises-operation, independent contractors, products completed operations hazard with
contractual coverage and Comprehensive Automobile Liability Insurance ($1,000,000.00 combined single limit) and shall furnish to Contractor
duplicate of original copies of insurance certificates evidencing compliance with the foregoing insurance requirements, naming Contractor as
additional insured. All policies shall provide for ten (10) day cancellation or change notice to Contractor in the event of any change in or
cancellation of said policies. The indemnification obligations under Section 5a shall not be limited in any way by any limitation on the amount or
type of damages, compensation or benefits payable by or for Subcontractor under Workers' Compensation Acts, Disability Benefit Acts or Other
Employee Benefits Acts. Contractor and Subcontractor waive all rights against each other for damages by fire or other perils covered by
property insurance set forth in the General Contract except for proceeds of insurance held by Owner as trustee. Mallen Construction Inc. shall
be named additional insured on the certificate of insurance.
Article 7
INDEMNIFICATION. To the fullest extent permitted by law, Subcontractor shall indemnify and hold harmless Owner, Architect, Architect's
Consultants, and Contractor from all damages, losses, or expenses, including attorneys fees, from any claims or damages for bodily injury, sickness,
disease, or death, or from claims for damages to tangible property, other than the Work itself. This indemnification shall extend to claims resulting
from performance of this Subcontract and shall apply only to the extent that the claim or loss is caused in whole or in part by any negligent act or
omission of Subcontractor or any of its agents, employees, or subcontractors. This indemnity shall be effective regardless of whether the claim or loss
is caused in some part by a party to be indemnified. The obligation of Subcontractor under this Article shall not extend to claims or losses that are
primarily caused by Architect or Architect's consultant's performance or failure to perform professional responsibilities. Subcontractor agrees to hold
Mallen Construction, Inc. harmless in the event of damages or injuries due to any negligence of their part, and that they will pay all legal and defense
costs associated with any damage or injury claims.
Article 8
WARRANTY. Subcontractor warrants its work against all deficiencies and defects in materials and/or workmanship and agrees to satisfy same
without cost to Owner or Contractor for a period of one (1) year from the date of Substantial Completion of the Project or per Contract Documents,
whichever is longer.
Article 9
Mallen Construction, Inc. is a FEDERAL CONTRACTOR AND AN EQUAL
In witness whereof, the parties have executed this Agreement under Seal, the day and year first written above.
Mallen Construction, Inc.
Subcontractor Firm Name Contractor Firm Name
Subcontractors Federal Tax ID Number:
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