The following is provided to advise you of some* of the existing mandatory procedures and clauses relative to our Subcontract Agreement so that you can adjust/modify your bidding process accordingly when submitting bids to our Company for a specific project.
a) Before the first payment is made to you, we must have an Affidavit (form is included in subcontract package) listing all suppliers you will be using on this project.
b) Before work is started, we must have a current Certificate of Insurance (listing Stiles Construction Co. as the "Certificate Holder"). This insurance certificate MUST (no exceptions) list the following coverages and amounts:
Statutory workers' compensation insurance and employer's liability not less than 100/500/100 in accordance with the requirements of the laws of the jurisdiction in which the work is to be performed (please be advised it is a company requirement that all Subcontractors, regardless of whether they are self-employed and have no employees or not, provide proof of workers' compensation insurance).
Broad form comprehensive general liability insurance covering personal injury, bodily injury and property damage liability with a combined single limit of not less than $1,000,000 incorporating premises/operations, XCC (explosion, collapse and underground hazard), products/completed operation hazard, contractual insurance, broad form property damage liability, independent contractor's liability and personal injury liability.
Comprehensive automobile liability insurance for owned, hired, and non-owned vehicles in an amount not less than $1,000,000 combined single limit bodily injury and property damage.
Subcontractor shall furnish certificates of insurance at time of execution of the Subcontract to Contractor. No "waivers" of any kind for any type of required (by Stiles Construction insurance will be accepted in lieu of the aforementioned certificates). Ten (10) days advance notice of cancellation or material change or intention of non-renewal shall be given Contractor showing applicable deductibles, if any, and a declaration stating if the policy excludes punitive damages, is on a claims made basis, or where limits are materially impaired by prior claims. The workers' compensation insurance shall similarly provide for advance notice to Contractor of cancellation or termination thereof. Certificate Holder (Contractor) shall be named as additional insured as respects to any and all projects performed in conjunction with the Certificate Holder (Contractor) under Subcontractor's insurance policy required hereunder except for workers' compensation. In addition, the insurance shall include contractual liability insurance covering the Subcontractor's obligations. In the event that Subcontract fails to maintain any insurance coverage required under this Subcontract, Contractor may terminate this Subcontract and charge Subcontractor; which would also pertain to any authorized sub-subcontractors retained by Subcontractor. The aforementioned insurance requirements are to be met by any authorized sub-subcontractor of the Subcontractor.
c) Letter of Guarantee (included in subcontractor package) is to be filled out and returned to our office ten (10) days after execution of the Subcontract.
d) A signed original Subcontract (with any changes initialed) must be in our office prior to commencement of work.
e) The Contractor shall make payments to the Subcontractor in current funds as the work progresses monthly. The Contractor shall pay to the Subcontractor an amount equal to ninety percent (90%) of the work done during the preceding calendar month, as estimated by the Contractor (provided that the Subcontractor has submitted the necessary supplier releases of lien in addition to all other precondition requirements being met).
f) The final payment shall be made thirty (30) days after the Contractor shall have received from the Owner the final payment under their Agreement, provided the Subcontractor and his surety shall have fulfilled and performed all of the covenants and conditions of the Subcontract.
*This document does not intend to list all Contract requirements; only those clauses and procedures which have recently been revised and incorporated
*This document is in no way to be construed as an agreement to enter into a contract and is provided only as an aid to your bidding process.
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