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SUBCONTRACTOR AGREEMENT

TERMS OF PAYMENT

 Upon starting this project you agree to all the terms on this work order.

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  1. Procoat Painting will pay the Subcontractor upon successful completion of the work and receipt of the final payment from the project’s owner.

  2. If damages are made by Subcontractor and the agreed upon final payment is reduced to cover the damages, Procoat Painting LLC will deduct this cost from payment to the subcontractor.

  3. The Primary Subcontractor is responsible for any and all touch-up and error corrections due to poor craftsmanship. Upon refusal to correct the errors, ProCoat Painting LLC will charge Primary Subcontractor $350 per each day needed for an Alternative Subcontractor to rectify the issues. This charge will be taken out of future job(s) completed by the Primary Subcontractor.

 

INSURANCE REQUIREMENTS

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The Subcontractor, at its own expense, shall obtain and maintain in full force and effect, without interruption during the term of the Agreement, the following minimum levels of insurance and provide a certificate of insurance and appropriate supporting endorsement forms to the Contractor. Company requires proof of General Liability and Workman’s Compensation Insurance from all Subcontractors before payment will be issued. Subcontractor may email proof of coverage to Procoat Painting and list Company as additional insured.


  1. Checks will only be made to the company or individual under which the insurance is held.

  2. Should insurance coverage expire, Subcontractor must notify Procoat Painting immediately that insurance is no longer valid.

  3. In the event Subcontractor cannot supply current insurance certificates after work has been 
completed, Procoat Painting will withhold a 20% service charge from payment to cover additional time and processing for Procoat Painting insurance audits.

 

LIABILITY

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  1. In the event of a claim of losses, damages, or harm caused by either party, each party agrees to limit the extent of the claim to the damage caused as a directresult of negligent acts, errors, or omissions by the employees, representatives, or agents of the offending party. 


  2. If Subcontractor damages materials or property during a project, Subcontractor agrees to compensate Procoat Painting LLC or to fix damages to the satisfaction of the project owner at their own expense.

 

COMMERCIAL GENERAL LIABILITY

Written on an occurance basis to include the following:

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  1. $1,000,000 per occurrence limit, $2,000,000 general aggregate and $2,000,000 aggregate for products and completed operations; and $1,000,000 personal and advertising injury

  2. Additional insured status applying to both ongoing and completed operations. (latest edition of form CG 2010 & CG 2037 or equivalent) Copies of these endorsements to be included with Certificate of Insurance. 

  3. Per Project Aggregate Limit applies 

  4. Waiver of Subrogation in favor of Contractor

  5. No exclusions or modifications limiting coverage for contractual, damage to work performed by subs, residential work or XCU. 

  6. Coverage to be maintained for two years after job is complete

 

COMMERCIAL AUTOMOBILE LIABILITY INSURANCE

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in the amount of $1,000,000 combined single limit including coverage for owned, hired, and non-owned automobiles.

 

WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY INSURANCE

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to include the following:

  1. Coverage A (Workers Compensation) – Statutory

  2. Coverage B (Employer’s Liability) - $500,000 each accident and disease

  3. Waiver of subrogation in favor of Contractor

The Subcontractors’ insurance coverage shall be primary insurance as respect work on this project for Contractor, its directors, officers, and employees.  Any insurance or self-insurance maintained by Contractor shall be excess of the Subcontractor’s insurance and shall not contribute with it.  The Subcontractor, in its agreements with subcontractors, shall require subcontractors to obtain insurance meeting the minimum limits and incorporating the contractual requirements that are prescribed by this Section. The Subcontractor hereby waives and relinquishes any right of subrogation against Contractor and its agents, representatives, employees, and affiliates they might possess for any policy of insurance provided under this Section or under any State or Federal Worker’s Compensation, or Employer’s Liability Act.  Subcontractor shall require its insurer to notify Contractor thirty (30) days prior to the effective date of any cancellation or material change in any of the required policies.

To the extent that the Subcontractor utilize deductibles in conjunction with the insurance required by this Agreement, all deductible expenses will be assumed by the Subcontractor and will be considered as the subcontractors’ expenses and not part of the normal expenses associated with this Agreement.  Insurance shall be placed with insurers with a Best’s rating of no less than A- or better.

 

INDEMNIFICATION

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To the fullest extent permitted by law, Subcontractor shall defend, indemnify and hold harmless Contractor, its parent and affiliates, their respective officers, directors, employees and agents, from and against any and all losses, damages, injuries, causes of action, claims, demands and expenses, including reasonable legal fees and expenses, sustained by any person or property in consequence of any defects or deficiencies in the services, latent or otherwise, and any nonconformity such services with applicable federal, state, county and local laws, ordinances, regulations and codes.  Such indemnification shall survive the termination or expiration of this Agreement.

 

NON-EXCLUSIVENESS

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  1. Neither Procoat Painting LLC nor Subcontractor is under any obligation to have exclusive rights to each other’s services during the Agreement. Company may hire additional subcontractors for any trade at any time. Subcontractor may work for any other company at anytime.

 

JOBSITE CONDUCT

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  1. Please understand that Procoat Painting LLC is a professional organization and, as a Subcontractor, each of your employees is also representing Procoat Painting LLC. A large portion of our reputation is determined by the subcontractors that we use; therefore, we expect professional workmanship from every worker at all times.

  2. Subcontractor is asked not to use any profanity or dirty language at any time on the job or around homeowners. This includes slogans or logos on clothing. 


  3. Subcontractor will not use any negative language about clients, Procoat Painting, other companies, or other co-workers or employees. 


  4. Subcontractor will not smoke inside any homeowners’ house, and agrees to not leave cigarette butts on any homeowner’s property. Cigarette butts will be disposed of in an appropriate manner. 


  5. Subcontractor agrees not to play loud, obnoxious, or crude radio stations at jobsites whether a current residence or vacant home. If working nearby a homeowner, please 
request permission to listening to radio. 


  6. Subcontractor agrees to leave job sites clean and orderly, properly disposing of food and drinks 
and construction-related trash to designated trash area on each project. 


  7. Subcontractors and their employees shall maintain a professional appearance.

  8. Subconractors wear Procoat Painting T-Shirts at all times while on site.

  9. Subcontractors are to have Procoat Painting Magnets displayed on their vehicles while on site. No other company logos should be displayed.

  10. Remove all trash at the end of each day

  11. Maintain a clean work site with all trash in bags at all times.

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