Page 297 - TCDB combined Book

Chapter 5 CONSTRUCTION 275

Subcontractors:

Subcontract Agreements should be clearly defined and mutually accepted prior to
commencement of any work. The form of Contract or Purchase Order should stipulate all
conditions, scope of work and payment terms, including a scheduled start and completion date.
The use of industry accepted Standard Contract Documents is preferred over creative, modified
or other forms of agreement. There are National Association recognized forms specifically
designed for this purpose and recommend there use whenever possible. Before finalizing
Contract Agreements with subcontractors we recommend the following items be addressed.

Workers Compensation Insurance coverage

Liability Insurance Coverage

Capabilities to handle all aspects of Project at hand (financial, Labor, experience etc.)

References from previous Projects (for new Subcontractors)

Defined Scope of Work Schedule and payment terms

Responsible contact person identified for general administration and site-coordination.

Restriction on sub-letting any portion of work without your written permission and
approval.

Purchases:

Prior to commencing on-site work all major purchases and buy- outs should be identified
and arranged. The form of Agreement or Purchase Order should clearly define the scope of
supply and include all conditions. Payment terms, delivery period required including the allotted
time for Shop drawings, sample approval or Mock-Up should be addressed.

Preparation of a complete buy-out sheet including responsibility for items to be purchased
by the Office (o) Site-Supervisor (s) and Project Manager (p) clearly defined. Prior to finalizing
any purchases or buy-outs they should be reviewed and expedited on the basis of the overall
budget amounts. Delaying purchases and buy-outs to stay within budget on every single line item
will not be practical on most projects and could result in costly delays to the project. Individuals
responsible for purchases and buy-outs should be given the parameters for "when to shop and
when to buy."