05 01 CONSTRUCTION CONTRACT

• Jurisdiction: Arkansas
• Library: Arkansas Form Book - Complete (2023 Ed.)

05-01 CONSTRUCTION CONTRACT

CONSTRUCTION AGREEMENT

THIS CONSTRUCTION AGREEMENT (this "Agreement") is entered into as of [date], by and between [owner name] an Arkansas [entity] ("Owner"), and [contractor name], an Arkansas [type of entity] ("Contractor"), and [guarantor name] ("Guarantor").

WHEREAS, Owner is developing [project description] in [county] County, Arkansas, known as the [project name] (the "Project");

WHEREAS, Contractor and Guarantor have requested that Owner allow Contractor to construct the Project and have guaranteed that the Project will not exceed the aggregate amount set forth in the construction budget attached hereto; and

WHEREAS, Owner has agreed to allow Contractor to construct the Project in accordance with the terms and subject to the conditions contained in this Agreement.

NOW, THEREFORE, in consideration of the premises, and the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows.

1. Definitions; General Terms.

1.1 Definitions. As used in this Agreement or any of the Contract Documents, the following terms shall have the following meanings.

(a) "Contract Documents" means this Agreement, the Plans and Specifications, the other documents listed in this Agreement, and any modifications or amendments thereto issued after execution of this Agreement.

(b) "Plans and Specifications" means the graphic and pictorial drawings showing the design, location, and dimensions of the Project, generally including plans, elevations, sections, details, schedules and diagrams, and the written requirements for materials, equipment, systems, standards and workmanship for the Work, and performance of related services, a copy of which are attached as EXHIBIT A hereto and incorporated herein.

(c) "Work" means the construction and services required by the Contract Documents, whether completed or partially completed, and includes all labor, materials, equipment and services provided or to be provided by Contractor to fulfill Contractor's obligations. The Work may constitute the whole or a part of the Project.

1.2 Ownership and Use of Plans and Specifications. The Plans and Specifications and all other documents, including those in electronic form, through which the Work to be executed by Contractor is described, are hereby conveyed to Owner by Contractor and shall remain the property of Owner. The Plans and Specifications and other documents prepared for use in construction of the Proj ect, and copies thereof furnished to Contractor, are for use solely with respect to the Project. Neither Contractor nor any Subcontractor, Sub-subcontractor or material or equipment supplier shall use the Plans and Specifications, or other documents, on other projects or for additions to this Project outside the scope of the Work without the specific written consent of Owner. Contractor, Subcontractors, Sub-subcontractors and material or equipment suppliers are authorized to use and reproduce applicable portions of the Plans and Specifications and other documents as appropriate to and for use in the execution of their Work under the Contract Documents and as may be required to satisfy governmental or regulatory requirements. Contractor represents and warrants that it has the sole and absolute right to use, reproduce and convey such Plans and Specifications without limitation or restriction of any kind and that by providing them to Owner for use with the Project, Contractor is not violating any intellectual property or other proprietary rights of any other person or entity. Contractor and Guarantor shall indemnify, defend and hold Owner harmless from and against any claim, loss or liability suffered or incurred by Owner in connection with the use of the Plans and Specifications.

2. Construction.

2.1 Contractor's Performance. Contractor shall fully execute the Work in accordance with the Contract Documents, except to the extent specifically indicated in the Contract Documents to be the responsibility of others. Contractor shall supervise and direct the Work, using Contractor's best skill and attention. Contractor shall be solely responsible for and have control over construction means, methods, techniques, sequences and procedures and for coordinating all portions of the Work pursuant to the Contract Documents, unless the Contract Documents give specific instructions concerning these matters. If the Contractor performs Work in violation of laws, statutes, ordinances, building codes, and rules and regulations, Contractor shall assume appropriate responsibility for such Work and shall bear the costs attributable to correction. Contractor agrees that [site superintendent name] shall be the site superintendent for the Work.

2.2 Labor and Materials. Unless otherwise provided in the Contract Documents, Contractor shall provide and pay for labor, materials, equipment, tools, construction equipment and machinery, water, heat, utilities, transportation and other facilities and services necessary for proper execution and completion of the Work, whether temporary or permanent and whether or not incorporated or to be incorporated in the Work. Contractor shall be responsible to Owner for acts and omissions of Contractor's employees, Subcontractors and their agents and employees, and other persons or entities performing portions of the Work for or on behalf of Contractor or any of its Subcontractors. All materials and equipment for use or incorporation in the Work shall be delivered and suitably stored at the site, unless otherwise approved in writing by Owner and provided that Contractor establishes procedures satisfactory to Owner to establish Owner's title to such materials and equipment or otherwise protect Owner's interest therein. Contractor shall confine operations at the site to areas permitted by law, ordinances, permits and the Contract Documents and shall not unreasonably encumber the site with materials or equipment.

2.3 Subcontractors. Contractor shall require each Subcontractor, to the extent of the Work to be performed by Subcontractor, to be bound by the terms of the Contract Documents and to assume toward Contractor all the obligations and responsibilities, including the responsibility for safety of Subcontractor's Work, which Contractor, by the Contract Documents, assumes toward Owner. Each subcontract agreement shall preserve and protect the rights of Owner and Construction Manager under the Contract Documents with respect to the Work to be performed by Subcontractors so that subcontracting thereof will not prejudice such rights, and shall allow to Subcontractor, unless specifically provided otherwise in the subcontract agreement, the benefit of all rights, remedies and redress against Contractor that Contractor, by the Contract Documents, has against Owner. Contractor shall require each Subcontractor to enter into similar agreements with Sub-subcontractors. Contractor shall make available to each proposed Subcontractor, prior to the execution of the subcontract agreement, copies of the Contract Documents to which Subcontractor will be bound, and, upon written request of Subcontractor, identify to Subcontractor terms and conditions of the proposed subcontract agreement which may be at variance with the Contract Documents. Subcontractors will similarly make copies of applicable portions of such documents available to their respective proposed Sub-subcontractors.

2.4 Permits. Contractor shall secure and pay for the building permit and other permits and governmental fees, licenses and inspections necessary for proper execution and completion of the Work which are customarily secured or which are legally required. Contractor shall comply with and give notices required by laws, ordinances, rules, regulations and lawful orders of public authorities, applicable to performance of the Work. Upon request by Owner or the Construction Manager, Contractor shall provide copies of all permits and licenses obtained in connection with the Work.

2.5 Correction of Work. Contractor shall promptly...