PROBLEM 32

THE GENERAL BUILDING CONTRACT

Problem: Many variations are found in the general building contracts entered into for the erection of public school buildings. The degree to which these variations may affect the educational program is of vital concern to the superintendent of schools and his staff.

Contracts No. 1 and No. 2 have been used in two city school situations, the first under a well-organized system of administration, the second under an administrative organization less favorable to an adequate promotion of the educational program. The form of surety bond used in connection with Contract No. 2 is also shown.

PORT HENRY PUBLIC SCHOOLS

GENERAL CONTRACT No. 1

THIS AGREEMENT, made and entered into this... of........

...day

..1925, by and between the BOARD OF EDUCATION OF

THE SCHOOL DISTRICT OF PORT HENRY, STATE OF N. K., hereinafter designated as the first party, and..

hereinafter designated as the second party.

as Contractor,

WITNESSETH: That whereas, it has been determined by the BOARD OF EDUCATION OF THE SCHOOL DISTRICT OF PORT HENRY to

as per the plans and specifications therefor made by.. Architect, Port Henry, N. K., for said BOARD OF EDUCATION OF THE SCHOOL DISTRICT OF PORT HENRY, said plans and specifications being further designated by the title of.....

.School, and copies of

which said plans and specifications are now on file in the offices of the said BOARD OF EDUCATION OF THE SCHOOL DISTRICT OF PORT HENRY and of its Building Department, and which said plans and specifications are hereby referred to as a more definite and distinct description of the work to be performed under this contract, and which are made a part of this contract the same as though fully set forth herein;

NOW, THEREFORE, in consideration of the premises and the further consideration of the sum of..........

($..... ..) to be paid by the first party to the second party herein, as hereinafter provided, in full for the performance of all acts and things to be done and performed by said second party, the said second party, for himself, his heirs, executors, administrators, successors or assigns, hereby promises, covenants and agrees with the said first party that the said second party will honestly and faithfully do and perform the work herein referred to and will furnish all the labor and material necessary therefor in strict accordance with the said plans and specifications and in strict accordance with the terms of this contract and agreement, and upon the completion of said work as provided for by the terms of this contract that the said second party will deliver said work or building or structure herein provided for to the first party or its authorized agents.

And the said first party, for and in consideration of the performance of all the acts and things to be done and performed by the said second party as herein provided, agrees to pay the said second party in full for said work the sum hereinbefore specified.

A copy of the bid of the said second party is on file in the office of the Secretary of the said Board of Education of the School District of Port Henry and is hereby expressly referred to and made a part of this agreement.

IT IS HEREBY MUTUALLY UNDERSTOOD AND AGREED by and between the parties hereto as follows:

1. That the work provided for by this contract shall be actually commenced by said second party within.. calendar days from and after the execution of the same and shall

...

be completed within..... calendar days from and after the execution of this contract, time being of the essence hereof.

2. That the price to be paid said second party as hereinbefore provided shall be paid in legally executed and regularly issued warrants of the said first party, drawn on the appropriate fund or funds of said.... ..County, as required by law and the order of the said Board of Education of the School District of Port Henry, upon certificates issued by its Superintendent of Buildings and Grounds.

3. That the said first party, or its regularly appointed agent or superintendent, shall, at all times during the progress of said work, have free access thereto, and shall be allowed to examine the same, and all the material to be used therein, and if the same or any part thereof shall not be in strict accordance with said plans and specifications herein referred to, it shall refuse to accept and shall reject said defective work and material.

The whole of said work is to be done to the satisfaction and approval of said first party and its agents authorized to superintend the same, in strict accordance with the plans and specifications hereinbefore referred to.

4. That the second party is skilled in the trade or calling necessary to perform the work agreed to and done under this contract, and that the first party, not being skilled in such matters, relies upon the skill of said second party to do and perform the work and labor necessary in the most skillful and durable manner, and said second party guarantees the same, and the acceptance of the work does not operate as a release to said second party or his bondsmen from said guarantee.

5. That the said second party further agrees that if the work to be done under this contract and agreement shall be abandoned, or if this contract shall be assigned by the second party, or if at any time the agent authorized to superintend said work shall be of the opinion, and shall so certify in writing to the said first party that the said work or any part thereof is unnecessarily or unreasonably delayed, or that the said second party is wilfully violating any of the conditions or covenants of this contract, or is executing this contract in bad faith, the said first party shall have the power to notify the second second party to discontinue all work or any part thereof under this contract, and thereupon the said second party shall cease to continue said work or such part thereof as said first party may designate, and the said first party shall thereupon have the power to place such and so many persons, and to obtain by con

tract, purchase or hire, such animals, carts, wagons, implements, tools, material or materials by contract or otherwise, as said first party may deem advisable, to work at and be used to complete the work herein described, or such part thereof as the agent authorized to superintend the same may deem necessary, and to use such material as they may find upon the line of said work and to charge the expense of such labor and material, animals, carts, wagons, implements and tools to the second party, and the expense so charged shall be deducted and paid by the first party out of such moneys as may be either due or may at any time thereafter become due to the said second party under and by virtue of this contract or any part thereof.

In case such expense is less than the sum which would have been payable under this contract, if the same had been completed by the said second party, the said second party shall be entitled to receive the difference, and in case such expense shall exceed the last said amount, then the said second party or his bondsmen shall pay the amount of such excess to the first party on notice from the said first party of the excess so due.

6. That upon notice of the completion of said work, the said first party or its Superintendent of Buildings and Grounds shall proceed without delay to examine same, and it if found to be in accordance with the aforesaid plans and specifications and this agreement, shall accept said work and shall notify the second party hereto, or his agents, of such acceptance. No work shall be deemed accepted merely by reason of its being affixed to the land.

7. That payments under this contract shall be made as follows: At the end of each calendar month the second party shall submit to the Superintendent of Buildings and Grounds of the said first party a statement of all of the materials actually placed in the building during the month, the labor expended thereon, and the cost thereof; whereupon, after verification and it is found to be correct, a certificate for the amount, less twenty-five per cent (25%) will be issued by the Superintendent of Buildings and Grounds; but no certificate will be issued until defective work and materials have been removed, replaced, and made good. The contractor shall be paid monthly, as the work progresses, the amount of such certificate. Thirty-five (35) calendar days from and after the completion and acceptance of the work, the balance of the contract price remaining unpaid will be paid under certificate issued by the Superintendent of Buildings and Grounds.

8. That the said second party shall furnish and deliver to the said first party upon the execution of this contract a good and

sufficient surety bond and undertaking, approved by the Board of Education of the School District of Port Henry from a surety bond company duly and legally licensed to transact business in the State of N. K., in the sum of ($.

.)

...

conditioned for the faithful performance of this contract by the second party, according to the terms and provisions herein.

9. That the said second party shall furnish and deliver to the said first party, upon the execution of this contract, a good and sufficient surety bond and undertaking, approved by the Board of Education of the School District of Port Henry, from a surety company duly and legally licensed to transact business in the State of N. K., in the sum of ($..

:)

in accordance with any law of the State of N. K., requiring the same and with an Act of Legislature of the State of N. K., entitled "An Act to secure the payment of the claims of persons employed by contractors upon public works, and the claims of persons who furnish materials, supplies, teams, implements or machinery used or consumed by such contractors in the performance of such works, and prescribing the duties of certain public officers with respect thereto," and any Act or Acts amendatory thereof.

10. That the first party shall at its own cost and expense take out and at all times during the prosecution of the work hereunder until final completion and acceptance thereof, maintain in full force and effect fire insurance upon all parts of the building which are the property of the first party, said insurance to be in such amount that at the end of each calendar month it shall be equal to fifty per cent (50%) of the value of all materials actually incorporated in the building, and the labor expended thereon, prior to the end of said calendar month, as verified and determined by the Superintendent of Buildings and Grounds of the Board of Education of the School District of Port Henry in accordance with the provisions of paragraph 7 hereof. Such insurance shall be made payable to the said first party.

In the event of a partial or total destruction by fire of any or all of the work herein provided for at any time prior to the completion and acceptance thereof, the second party shall promptly reconstruct all work so destroyed or injured, at his own cost and expense, except that said first party shall pay to said second party therefor in installments corresponding as near as may be to the schedule of payments provided for in paragraph 7 hereof, a sum equivalent to the moneys, if any, received by said first party from said insurance.