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Waterproofing Existing Steel lintels at the NW Facade of the Heritage Ctr. VILLAGE OF OAK BROOK CONTRACT FOR THE WATERPROOFING EXISTING STEEL LINTELS AT THE NORTHWEST FACADE OF THE HERITAGE CENTER BUILDING Full Name of Contractor: US Construction Efficiency Solutions, Inc. (US-CES) ("Contractor") Principal Office Address: 3 Grant Square#252, Hinsdale, Illinois 60521 Contact Person':Frank V. Gonzalez, President Telephone Number: (630)842-5551 TO: Village of Oak Brook("Village") 1200 Oak Brook Road Oak Brook, Illinois Attention: Rick Valent, Public Works Director Contractor warrants and represents that Contractor has carefully examined the Work Sites described below and has reviewed and understood all documents included, referred to, or mentioned in this bound set of documents. 1. Work A. Contract and Work. Contractor acknowledges, and agrees, that Contractor shall, at its sole cost and 5. Miscellaneous. Do all other things required expense, provide, perform, and complete, in the manner of Contractor by this Contract; and specified and described, and upon the terms and conditions set forth, in this Contract, all of the following, 6. Qualit . Provide, perform, and complete all all of which is herein referred to as the"Work": of the foregoing in a proper and workmanlike manner, consistent with the standards of 1. Labor, Equipment, Materials, and Supplies. recognized professional firms in performing Provide, perform, and complete, in the Work of a similar nature, in full compliance manner specified and described in this with, and as required by or pursuant, to this Contract, all necessary work, labor, services, Contract, and with the greatest economy, transportation, equipment, materials, efficiency, and expedition consistent supplies, information, data, and other means therewith, with only new, undamaged, and and items necessary for the Waterproofing first quality equipment, materials, and Existing Steel Lintels at the Northwest supplies. Facade of the Heritage Center Building, as specified in Exhibit A, attached hereto, B. Performance Standards. Contractor located 1112 Oak Brook Road, Oak Brook, acknowledges and agrees that all Work shall be fully Illinois 60523 ("Work Site"); provided, performed, and completed in accordance with the proposal dated October 7, 2022, attached hereto as 2. Permits. The Village will furnish all Exhibit A. In the event the quality of service becomes permits, licenses, and other governmental unacceptable, the Village reserves the right to cancel approvals and authorizations necessary in the contract after giving thirty(30) day written notice. connection therewith; C. Responsibility for Damage or Loss. Contractor 3. Bonds and Insurance. Procure and furnish proposes, and agrees, that Contractor shall be all bonds and all insurance certificates and responsible and liable for, and shall promptly and policies of insurance specified in this without charge to Village repair or replace, any damage Contract; done to, and any loss or injury suffered by, the Village, the Work, the Work Site, or other property or persons as 4. Taxes. Pay all applicable federal, state, and a result of the Work. localtaxes; 1 D. Inspection/Testing/Rejection. Village shall have All payments may be subject to deduction or the right to inspect all or any part of the Work and to setoff by reason of any failure of Contractor to reject all or any part of the Work that is, in Village's perform under this Contract. Each payment judgment, defective or damaged or that in any way fails shall include Contractor's certification of the to conform strictly to the requirements of this Contract value of, and partial or final waivers of lien and the Village, without limiting its other rights or covering, all Work for which payment is then remedies, may require correction or replacement at requested and Contractor's certification that all Contractor's cost, perform or have performed all Work prior payments have been properly applied to necessary to complete or correct all or any part of the the payment or reimbursement of the costs with Work that is defective, damaged, or nonconforming and respect to which they were paid. charge Contractor with any excess cost incurred thereby, or cancel all or any part of any order or this Contract. 3. Contract Term Work so rejected may be returned or held at Contractor's Contractor acknowledges and agrees that Contractor expense and risk. shall commence the Work within 15 days (weather permitting) following the Village's acceptance of this 2. Contract Price Contract provided Contractor shall have furnished to the Village all bonds and all insurance certificates specified Contractor acknowledges and agrees that Contractor in this Contract ("Commencement Date"). Contractor shall take in monthly payments for all Work and other further acknowledges and agrees that Contractor shall matters set forth under Section 1 above, including perform the Work diligently and continuously and shall overhead and profit; taxes, contributions, and premiums; complete the Work no later than December 31, 2022 and compensation to all subcontractors and suppliers, ("Time of Performance"). The Village may modify the the compensation set forth below. Time of Performance at any time upon 15 days prior written notice to the Contractor. Delays caused by the A. SCHEDULE OF PRICES Village shall extend the Time of Performance; provided, however, that Contractor shall be responsible for For providing, performing, and completing all completion of all Work within the Time of Performance, Work, the Not-To-Exceed Contract Price of notwithstanding any strike or other work stoppage by $19,500.00. employees of either Contractor or of the Village. TOTAL CONTRACT PRICE (in writing): 4. Financial Assurance Nineteen Thousand Five Hundred Dollars A. Bonds. If the total contract cost is $20,000.00 or more, the Contractor acknowledges and agrees that B. BASIS FOR DETERMINING PRICES Contractor shall provide a Performance Bond, on forms provided by, or otherwise acceptable to, the Village, from It is expressly understood and agreed that: a surety company acceptable to the Village, each in the penal sum of the Contract Price,within 10 days following 1. All prices stated in the Schedule of Prices the Village's acceptance of this Contract. are firm and shall not be subject to escalation or change; B. Insurance. Contractor acknowledges and agrees that Contractor shall provide certificates of insurance 2. The Village is not subject to state or local evidencing the minimum insurance coverages and limits sales, use, and excise taxes, that no such set forth in Exhibit B within 10 days following the taxes are included in the Schedule of Prices, Village's acceptance of this Contract. Such policies shall and that all claim or right to claim any be in form, and from companies, acceptable to the additional compensation by reason of the Village. The insurance coverages and limits set forth payment of any such tax is hereby waived Exhibit B shall be deemed to be minimum coverages and and released; limits and shall not be construed in any way as a limitation on Contractor's duty to carry adequate 3. All other applicable federal, state, and local insurance or on Contractor's liability for losses or taxes of every kind and nature applicable to damages under this Contract. The minimum insurance the Work are included in the Schedule of coverages and limits that shall be maintained at all Prices. times while providing, performing, or completing the Work are as set forth in Exhibit B. C. TIME OF PAYMENT C. Indemnification. Contractor acknowledges and It is expressly understood and agreed that the agrees that Contractor shall indemnify and save Village shall only make any final payments upon harmless the Village, its officers, officials, employees and completion of the work and final approval. volunteers, against all damages, liability, claims, losses, and expenses (including reasonable attorneys' fee) that 2 may arise, or be alleged to have arisen, out of 5/11-42.1-1; or (ii) a violation of either Section 33E-3 or Contractor's performance of, or failure to perform, the Section 33E-4 of Article 33 of the Criminal Code of 1961, Work or any part thereof, or any failure to meet the 720 ILCS 5/33E-1 et seq. representations and warranties set forth in Section 6 of this Contract. D. Qualified. Contractor has the requisite experience, ability, capital, facilities, plant, organization, D. Penalties. Contractor acknowledges and agrees and staff to enable Contractor to perform the Work that Contractor shall be solely liable for any fines or civil successfully and promptly and to commence and penalties that are imposed by any governmental or complete the Work within the Contract Price and quasi-governmental agency or body that may arise, or be Contract Time set forth above. alleged to have arisen, out of or in connection with Contractor's performance of, or failure to perform, the 7. AcknowledlZements Work or any part thereof. In submitting this Contract, Contractor 5. Firm Proposal acknowledges and agrees that: All prices and other terms stated in this Contract are A. Reliance. The Village is relying on all firm and shall not be subject to withdrawal, escalation, warranties, representations, and statements made by or change. Contractor in this Contract. 6. Contractor's Representations and Warranties B. Acceptance. If this Contract is accepted, Contractor shall be bound by each and every term, In order to induce the Village to accept this Contract, condition, or provision contained in this Contract. Contractor hereby represents and warrants as follows: C. Remedies. Each of the rights and remedies A. The Work. The Work, and all of its components, reserved to the Village in this Contract shall be shall strictly conform to the requirements of this cumulative and additional to any other or further Contract, including, without limitation, the performance remedies provided in law or equity or in this Contract. standards set forth in Subsection 1B of this Contract; and shall be fit, sufficient, and suitable for the purposes D. Time. Time is of the essence in the performance expressed in, or reasonably inferred from, this Contract of all terms and provisions of this Contract and, except and the warranties expressed herein shall be in addition where stated otherwise references in this Contract to to any other warranties expressed or implied by law, days shall be construed to refer to calendar days and which are hereby reserved unto the Village. time. B. Compliance with Laws. The Work, and all of its E. No Waiver. No examination, inspection, components, shall be provided,performed, and completed investigation, test, measurement, review, determination, in compliance with, and Contractor agrees to be bound decision, certificate, or approval by the Village, whether by, all applicable federal, state, and local laws, orders, before or after the Village's acceptance of this Contract; rules, and regulations, as they may be modified or nor any information or data supplied by the Village, amended from time to time, including without limitation, whether before or after the Village's acceptance of this if applicable, the Prevailing Wage Act, 820 ILCS Contract; nor any order by the Village for the payment of 130/0.01 et seq.; any other prevailing wage laws; any money; nor any payment for, or use, possession, or statutes requiring preference to laborers of specified acceptance of, the whole or any part of the Work by the classes; any statutes prohibiting discrimination because Village; nor any extension of time granted by the Village; of, or requiring affirmative action based on, race, creed, nor any delay by the Village in exercising any right color, national origin, age, sex, or other prohibited under this Contract; nor any other act or omission of the classification; and any statutes regarding safety or the Village shall constitute or be deemed to be an acceptance performance of the Work. Further, Contractor shall of any defective, damaged, or nonconforming Work, nor have a written sexual harassment policy in compliance operate to waive or otherwise diminish the effect of any with Section 2-105 of the Illinois Human Rights Act representation or warranty made by Contractor; or of during the course of the work. any requirement or provision of this Contract; or of any remedy, power, or right of the Village. C. Not Barred. Contractor is not barred by law from contracting with the Village or with any other unit F. Severability. It is hereby expressed to be the of state or local government as a result of (i) a intent of the parties to this Contract that should any delinquency in the payment of any tax administered by provision, covenant, agreement, or portion of this the Illinois Department of Revenue unless Contractor is Contract or its application to any Person or property be contesting, in accordance with the procedures held invalid by a court of competent jurisdiction, the established by the appropriate Revenue Act, its liability remaining provisions of this Contract and the validity, for the tax or the amount of tax, as set forth in 65 ILCS enforceability, and application to any Person or property 3 shall not be impaired thereby, but the remaining ascertained by the Department of Labor and made provisions shall be interpreted, applied, and enforced so available on the Department's Official website, or as to achieve, as near as may be, the purpose and intent determined by the court on review, shall be paid for each of this Contract to the greatest extent permitted by craft or type of worker needed to execute this contract or applicable law. to perform such work, and it shall be mandatory upon the contractor to whom the contract is awarded and upon G. Amendments and Modifications. No amendment any subcontractor under him, to pay not less than the or modification to this Contract shall be effective until it specified rates to all laborers, workers and mechanics is reduced to writing and approved and executed by the employed by them in the execution of this contract. corporate authorities of the parties in accordance with all applicable statutory procedures. L. Conflicts of Interest. Contractor represents and certifies that, to the best of its knowledge, (1) no elected H. Assignment. Neither this Contract, nor any or appointed Village official, employee or agent has a interest herein, shall be assigned or subcontracted, in personal financial interest in the business of the whole or in part, by Contractor except upon the prior Contractor or in this Agreement, or has personally written consent of the Village. received payment or other consideration for this Agreement; (2) as of the date of this Agreement, neither I. Governing Law; Venue. This Contract shall be Contractor nor any person employed or associated with governed by, construed and enforced in accordance with Contractor has any interest that would conflict in any the internal laws, but not the conflicts of laws rules, of manner or degree with the performance of the the State of Illinois. Venue for any action arising out of obligations under this Agreement; and (3) neither or due to this Contract shall be in the Circuit Court for Contractor nor any person employed by or associated DuPage County, Illinois. with Contractor shall at any time during the term of this Agreement obtain or acquire any interest that would J. Certified Payrolls. Contractor shall, in conflict in any manner or degree with the performance of accordance with Section 5 of the Illinois Prevailing Wage the obligations under this Agreement. Act, 820 ILCS 130/5, submit to the Department of Labor on a monthly basis, a certified payroll. The certified M. Exhibits and Other Agreements. If any conflict payroll shall consist of a complete copy of those records exists between this Agreement and any exhibit attached required to be made and kept by the Prevailing Wage hereto or any other Agreement between the parties Act. The certified payroll shall be accompanied by a relating to this transaction, the terms of this Agreement statement signed by the Contractor or subcontractor shall prevail. which certifies that: (1) such records are true and accurate; (2) the hourly rate paid is not less than the N. No Disclosure of Confidential Information by general prevailing rate of hourly wages required by the the Consultant. The Consultant acknowledges that it Prevailing Wage Act; and(3) Contractor or subcontractor shall, in performing the Services for the Village under is aware that filing a certified payroll that he or she this Agreement, have access, or be directly or knows to be false is a Class A misdemeanor. A general indirectly exposed, to Confidential Information. The contractor may rely upon the certification of a lower tier Consultant shall hold confidential all Confidential subcontractor, provided that the general contractor does not knowingly rely upon a subcontractor's false Information and shall not disclose or use such certification. Upon seven business days' notice, Confidential Information without the express prior Contractor and each subcontractor shall make available written consent of the Village. The Consultant shall for inspection and copying at a location within this State use reasonable measures at least as strict as those the during reasonable hours, the records required to be made Consultant uses to protect its own confidential and kept by the Act to: (i) the Village, its officers and information. Such measures shall include, without agents; (ii) the Director of Labor and his deputies and limitation, requiring employees and subcontractors of agents; and (iii) to federal, State, or local law the Consultant to execute a nondisclosure agreement enforcement agencies and prosecutors. before obtaining access to Confidential Information. K. Prevailing Wage. Pursuant to Section 4 of the Illinois Prevailing Wage Act, 820 ILCS 130/4, Contractor agrees and acknowledges that not less than the applicable rate of prevailing of wages, as found or 4 IN MITNESS \N'}IERF.OF thr- partic.,, horeto VILLAGE OF OAK BROOK, an Illinois have eullw,+ t} is Agree ent to he ext,cuted. munu•ipal corporation ellr,csfi�c nn 2022. ATTEST: }fir' 41(, 1'ru< ,Village C''le rk Grey Sufrq, Village Atanaagrsr ATTEST: US-CES.INC. // ,,// Its: Elizabeth H.Gonzalez Its: Frank V.Gonzalez 5 EXHIBIT A (PROPOSAL DATED OCTOBER 7; 2022) 6 EXHIBIT B (INSURANCE REQUIREMENTS) Certificates of Insurance shall be presented to the Village upon execution of this contract and vendor shall not commence work until it provides and receives acceptance of insurance certificates from the Village as required by this exhibit. Each contractor performing any work pursuant to a contract with the Village of Oak Brook and each permittee working under a permit as required pursuant to the provisions of Title 1 of Chapter 8 of the Code of Ordinances of the Village of Oak Brook (hereinafter referred to as "Insured") shall be required to carry such insurance as specified herein. Such contractor and permittee shall procure and maintain for the duration of the contract or permit insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work under the contract or permit, by either the contractor, permittee, or their agents, representatives, employees or subcontractors. A contractor or permittee shall maintain insurance with limits no less than: A. General Liability- $2,000,000 per occurrence for bodily injury,personal injury and property damage; B. Automobile Liability (if applicable) - $1,000,000 combined single limit per accident for bodily injury and property damage; C. Worker's Compensation and Employer's Liability -Worker's Compensation limits as required by the Labor Code of the State of Illinois and Employer's Liability limits of$1,000,000 per accident. Any deductibles or self-insured retention must be declared to and approved by the Village. The policies shall contain, or be endorsed to contain, the following provisions: D. General Liability and Automobile Liability Coverage - (1)The Village, its officers,officials, employees and volunteers are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of the Insured; premises owned, occupied or used by the Insured. The coverage shall contain no special limitations on the scope of protection afforded to the Village, its officers, officials, employees, volunteers,or agents. (2)The Insured's insurance coverage shall be primary insurance as respects the Village, its officers, officials, employees, volunteers and agents. Any insurance or self-insurance maintained by the Village, its officers, officials, employees, volunteers or agents shall be in excess of the Insured's insurance and shall not contribute with it. (3)Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Village, its officers, officials, employees, volunteers or agents. (4)The Insured's insurance shall apply separately to each covered party against whom claim is made or suit is brought except with respect to the limits of the insurer's liability. E. Worker's Compensation and Employer's Liability Coverage The policy shall waive all rights of subrogation against the Village, its officers, officials, employees, volunteers and agents for losses arising from work performed by the insured for the Village. Each insurance policy shall be endorsed to state that coverage shall not be suspended,voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail has been given to the Village. Each insurance policy shall name the Village, its officers, officials and employees, volunteers and agents as additional Insureds. Insurance is to be placed with insurers with a Best's rating of no less than A:VII. 7 Each Insured shall furnish the Village with certificates of insurance and with original endorsements effecting coverage required by this provision. The certificate and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on forms approved by the Village and shall be subject to approval by the Village Attorney before work commences. The Village reserves the right to require complete, certified copies of all required insurance policies, at any time. Each insured shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. 8 tJS*'CES US Construction Efficiency Solutions,Inc Mr. Rick Valent Director of Public Works Village of Oak Brook 3003 Jorie Boulevard Oak Brook, IL 60523 Re: Proposal for waterproofing existing lintels at northwest fagade. 1112 Oak Brook Road, Oak Brook, IL 60523 US-CES Project No. 22-1007 Dear Mr. Valent, U.S. Construction Efficiency Solutions, Inc. (US-CES) is pleased to submit the proposal for the flashing installation for the existing steel lintels at the northwest facade, as detailed below. US-CES, with the assistance of the Village Public Works representative, will select the lintel areas that appear to have the most severe water leakage infiltration penetrating the northwest facade. We will begin the flashing restoration at these locations and move forward to the lesser water infiltration problem, provided the total fee noted below is not exceeded. The repairs are limited to the fee and are not to be exceeded. If the total fee mentioned below is exhausted and additional repairs are necessary, US-CES will inform the Village Public Works department, and the Village shall determine when to proceed with the additional work. SCOPE OF SERVICES US-CES shall provide the labor, materials, and equipment necessary to perform the following: Flashing installation over existing lintels (see photos 1 and 2 for location): ■ Remove existing masonry bricks over the steel lintel. ■ Scrape corrosion off the existing lintels. ■ Coat existing lintels with heavy-duty anti-corrosion paint. ■ Install stainless steel drip edge above of the angle's legs. ■ Install self-adhesive membrane existing steel lintel and S.S. drip edge. ■ Install end dams at each end and a termination bar with 16" O.C. stainless steel fasteners and seal the top of the termination bar. ■ Reinstall the same brick where salvage is possible and/or install new bricks (ones that closely match existing bricks)with mortar. Includes installing weep vents at 24-inches O.C. US-CES—U.S.Construction Efficiency Solutions,Inc. Proposal:Waterproof Existing Lintels 3 Grant Square,#252,Hinsdale,IL 60521 at the Northwest Facade P:630-842-5551,W:www.us-bes.com Heritage Center,Oak Brook,IL 10/07/2022 Page 1 of 5 Note: US-CES shall do its best to protect the landscaping as reasonably as possible. Please understand that some might be damaged due to the close proximity to the facade. Although we do not expect any landscape damages, we shall not be responsible if they occur. Area of waterproofing existing lintels. Photo 1: View of the northwest facade. Area of waterproofing existing lintels. Photo 2: Close-up view of a portion of the northwest facade. US-CES—U.S.Construction Efficiency Solutions,Inc. Proposal:Waterproof Existing Lintels 3 Grant Square,#252,Hinsdale,IL 60521 at the Northwest Facade P:630-842-5551,W:www.us-bes.com Heritage Center,Oak Brook,IL 10/07/2022 Page 2 of 5 Area in box, is known as end-dam. Installed to prevent rainstorm water from penetrating the masonry side wall. Photo 3: Example of an existing lintel with self-adhesive waterproofing flashing over the steel and attached to backup masonry. Bricks are installed after completion of the flashing system. WORK ITEM UNITS OF NO. WORK DESCRIPTION MEAS. TOTAL PRICE Northwest Facade I• Performance and Payment Bond Lump Sum $800.00 II. Mobilization and General Provisions Lump Sum $2,800.00 III. Site Protection Lump Sum $1,800.00 E. Scope of Work for Repairs Removal of brick over existing lintels, install waterproofing 1 over steel, reinstall the same brick and/or new closely matching brick masonry with mortar. Install weep vents 24" O.C. Lump Sum $14,100.00 Tota 1 $19,500.00 NOTICE TO PROCEED If this proposal meets with your approval, please provide us with your written authorization by signing the Authorization Page, where indicated, and return it to us. OTHER TERMS Refer to the attached "General Terms and Conditions,"which are hereby incorporated into and are a part of this proposal. US-CES—U.S.Construction Efficiency Solutions,Inc. Proposal:Waterproof Existing Lintels 3 Grant Square,#i 252,Hinsdale,IL 60521 at the Northwest Facade P:630-842-5551,W:www.us-bes.com Heritage Center,Oak Brook,IL 10/07/2022 Page 3 of 5 Schedule US-CES can begin the restoration work within about three to four weeks of receiving written authorization to proceed, subject to weather conditions. Schedule: The work can be completed within about 10 to 12 weeks, weather permitting. Note: Fee is valid for 30 days. HOME - PAYMENT SCHEDULE Payments can be made to US-CES by check as specified below: Retainer fee of one-half at the signing of this proposal............................$9,750.00 (Mobilization,Protection, and Materials) Final fee at the completion of work......................................................$9,750.00 TotalFee.....................................................................................$19,500.00 We are excited about the possibility of working with you on this important project and look forward to hearing from you soon. Please call if you have any questions or comments about this proposal. Sincerely, U.S. Construction Efficiency Solutions, Inc. Frank V. Gonzalez, AIA, ALA, GGP President Architect Licenses:Illinois, New York,&Florida Illinois Licenses:Public Adjusters, Roofing Contractor&Home Inspector Chicago Licenses:General Contractor&Brick/Concrete Contractor(Class A) WickRight Certified Installer US-CES—U.S.Construction Efficiency Solutions,Inc. Proposal:Waterproof Existing Lintels 3 Grant Square,#252,Hinsdale,IL 60521 at the Northwest Facade P:630-842-5551,W:www.us-bes.com Heritage Center,Oak Brook,IL 10/07/2022 Page 4 of 5 Attached: Proposal Acceptance Sheet& Terms and Conditions of Service below. ACCEPTED BY: Client: Mr. Rick Valent, Director of Public Works, Village of Oak Brook Heritage Center: Proposal for waterproofing existing lintels at northwest facade Location: 1112 Oak Brook Road, Oak Brook, IL 60523 Approved By: (Signature) Title as Agent for Client (If Applicable) (Printed) (Date) US-CES—U.S.Construction Efficiency Solutions,Inc. Proposal:Waterproof Existing Lintels 3 Grant Square,#252,Hinsdale,IL 60521 at the Northwest Facade P:630-842-5551,W:www.us-bes.com Heritage Center,Oak Brook,IL 10/07/2022 Page 5 of 5 GENERAL CONDITIONS 1. Nature of Work: U.S.Construction Efficiency Solutions, Inc.(US-CES)or("Contractor'),by and through its subsidiaries and affiliates,shall furnish the labor and materials necessary to perform the work described herein or in the referenced contract documents. 2. Expiration:The proposal is subject to change unless acceptance is made within thirty(30)days of date hereof. 3.Structural:Contractor shall not be responsible for providing engineering,consulting or architectural services. It's is the Customer's responsibility to retain a licensed architect or engineer to determine proper design and code compliance. Contractor is not responsible for structural integrity and design,including compliance with codes. If plans,specifications or other design documents have been furnished to Contractor,Customer warrants that they are sufficient and conform to all applicable laws and building codes. Contractor is not responsible for loss,damage or expense due to defects in plans or specifications or building code violations unless such damage results from a deviation by Contractor from the contract documents. Customer warrants all structures to be in sound condition capable of withstanding normal building and/or roofing construction equipment and operations. Contractor is not responsible for location of roof drains,adequacy of drainage or ponding on roof.Customer shall indemnify,defend, and hold harmless Contractor for any claims or damages resulting from defects in plans or specifications or building code violations unless such damage results from a deviation by Contractor from the contract documents. 4.Asbestos and Toxic Materials: This proposal and contract is based upon Customer's representation the work to be performed by Contractor not involving asbestos-containing or toxic materials and Customer represents that such materials will not be encountered or disturbed during the course of performing the building work.Contractor is not responsible for expenses,claims or damages arising out of the presence,disturbance or removal of asbestos containing or toxic material. In the event such materials are encountered,Contractor shall be entitled to reasonable compensation for all additional expenses incurred as a result of the presence of asbestos-containing or toxic materials at the work site.Customer shall indemnify,defend,and hold harmless Contractor for any claims or damages resulting from the discovery or disturbance of any asbestos-containing or toxic materials. S. Credit:All orders are subject to approval of Contractor's credit department.Contractor reserves the right to cancel this Contract if such credit review is not satisfactory in Contractor's sole discretion. 6. Late Charges: Payments shall be made as stated and TIME IS OF THE ESSENCE.A service charge of 2%per month(24% annualized)and interest at the rate of 1.5%per month(18%annualized)will be charged from the original due date or completion date,which is earlier,for all amounts not paid within thirty(30)days. 7. Non-Payment: If Customer does not make payment,Contractor shall be entitled to recover from Customer all costs of collection incurred by Contractor, including attorney's fees and litigation expenses.Collection matters may be processed through litigation, arbitration or lien at the discretion of the Contractor. 8. Insurance:Contractor shall carry,automobile liability,commercial general liability and other such insurance as required by law. Contractor will furnish a Certificate of Insurance,evidencing the types and amounts of its coverage,upon request. Customer shall purchase and maintain builder's risk and property insurance,upon the full value of the entire Project,included labor,material and equipment furnished by the Contractor,covering fire,extended coverage,windstorm,malicious mischief,vandalism and theft on the premises to protect against loss or damage to material and equipment and partially completed work until the job is completed accepted and Contractor's equipment is removed from premises. 9. Additional Insured:Customer and Contractor agree that naming of Customer or other parties as an additional insured,if such coverage is mutually agreed to not requiring Customer approval,is intended to apply to claims made against the additional insured to the extent of the claim is due to the negligence of Contractor and is not intended to make the Contractor's insurer liable for claims that are due to the fault of the additional insured. 10. Changes in the Work and Extra Work:Customer shall be entitled to order changes in the work and agrees the total contract price may be adjusted accordingly and result in additional time needed for substantial completion.Contractor shall not be required to perform any change for additional work without a written request from the Customer. In addition,if any additional service work is determined to be necessary during the course of repairs without requiring Customer approval,Contractor will notify Customer.This work shall be completed on a time and materials basis as an extra unless otherwise noted.The hourly labor billing rate of$120.00 per man per hour plus a daily$210.00 truck and equipment fee will be invoiced. Materials will be invoiced at cost plus 20%and travel time will be billed portal to portal. US-CES—U.S.Construction Efficiency Solutions,Inc. CLIENT'S TERMS AND CONDITIONS Existing Building:Restoration&Renovation Page 1 of 3 11. Back Charges:No back charges or claims for payment of services rendered or materials and equipment furnished by Customer to Contractor shall be valid unless previously authorized in writing by Contractor and unless written notice is given to Contractor within ten(10)days of the event,act or omission which is the basis of back charge. 12. Availability of Site:Contractor shall be provided with direct access to the work site for the passage of truck and materials and direct access to the jobsite(i.e. building and roof).Contractor shall not be required to begin work until underlying areas are ready and acceptable to receive Contractor's work and sufficient areas of work area are available and free from dirt,snow,ice,water or debris to allow continuous full operation until job completion and Contractor shall not be responsible for any delay in completion of the job as a result of such work site not being ready.The expense of snow, ice,water or debris removal and any extra trips by Contractor to the job as a result of the job not being ready for building repair application after Contractor has been notified to proceed will be charged as an extra,not requiring prior approval from Customer. 13. SITE CONDITIONS: Customer shall be responsible for the condition of the property as of the date of the contract is executed. Customer shall be responsible for interior air quality,including controlling mechanical equipment,HVAC units,intake units,wall vents, windows, doors and other openings to prevent fumes and odors from entering the home. Customer shall hold Contractor harmless for claims from third parties relating to fumes and odors that are emitted during the normal roofing process. Contractor shall not be responsible for additional costs due to the existence of utilities, wet insulation, deteriorated deck or other subsurface or latent conditions that are not disclosed in writing to Contractor.The raising, disconnection or re-connection of any mechanical equipment on the building that may be necessary to Contractor to perform the building work shall be performed by others or treated as an extra. 14. Working Hours: This proposal is based upon the performance of all work during Contractor's regular working hours. Extra charges will be made for overtime and all work performed other than during Contractor's regular working hours,if required by Customer. 15. Electrical Conduit:Contractor's price is based upon Customer's representation that there not being electrical conduit or other materials embedded within work areas(i.e.building and roof)assembly unless expressly identified on the face of this proposal. Customer will indemnify Contractor from any personal injury,damage,claim,loss or expense resulting from the presence of electrical conduit,shall render the conduit harmless so as to avoid injury to Contractor's personnel,and shall compensate Contractor for additional time,labor. 16. Interior Protection:Customer acknowledges that interior,facade, roof work(i.e.all construction work)of an existing building may cause disturbance,dust or debris to fall into the interior and possibly,if glue, hot asphalt or pitch is used,drippage may occur depending on deck conditions.Customer agrees to remove or protect property directly below the work areas in order to minimize potential interior damage. Contractor shall not be responsible for disturbance,damage,cleanup,or loss to interior property that Customer did not remove or protect prior to commencement of construction work operations.Customer shall notify tenants of construction work and the need to provide protection above,underneath,or sides of areas to be repaired.Customer agrees to hold Contractor harmless from claims of tenants who were not so notified and did not provide protection. 17. Fumes and Emissions:Owner/Customer and Contractor acknowledge that,orders and emissions from construction repair products will be released and noise will be generated as part of the roofing and/or construction repair operations performed by Contractor. Customer shall be responsible for interior air quality, including controlling mechanical equipment, HVAC units,intake units,wall vents,windows,doors and other openings to prevent fumes and odors from entering the building. Customer shall hold Contractor harmless from claims from third parties relating to fumes and odors that are emitted during the norming work area repair and construction process. 18. Damages and Delays: Contractor will not be responsible for damage done to Contractor's work by others. Any repairing of the same by Contractor will be charged at regular scheduled rates over and above the amount of this proposal.Contractor shall not be responsible for loss,damage or delay caused by circumstances beyond its reasonable control, including but not limited to acts of God,weather accidents,fire,vandalism,strikes,jurisdictional disputes,failure or delay of transportation,shortage of or inability to obtain materials,equipment or labor,changes in the work and delays caused by others. In the event of these occurrences, Contractor's time for performance under this proposal shall be extended for a time sufficient to permit completion of the work.This contract assumes that Contractor will be able to complete the project in one continuous phase without work stoppages due to other trades. Stoppages due to other trades or circumstances beyond Contractor's control are subject to down time and re-mobilization charges of up to$1,500.00 per occurrence.While all precautions will be taken,Contractor shall not be liable for interior water damage,cracked ceilings,roof mounted air conditioners,mechanical equipment,electrical lines or damaged shrubs,flowers, US-CES—U.S.Construction Efficiency Solutions,Inc. CLIENT'S TERMS AND CONDITIONS Existing Building:Restoration&Renovation Page 2 of 3 landscaping,and furniture. Contractor is not responsible for telecommunication and/or satellite television service and repair costs resulting from normal construction repair procedures. 19. Right to Stop Work:The failure of Customer to make proper payment to Contractor when due shall, in addition to all other rights,constitute a material breach of contract and shall entitle Contractor at its discretion,to suspend all work and shipments, including furnishing warranty, until full payment is made or terminate this contract.The contract sum to be paid Contractor shall be increased by the amount of Contractor's reasonable costs of shutdown,delay and start-up. 20. Warranty:The acceptance of this proposal by the Customer signifies Customer's agreement that this warranty shall be and is the exclusive remedy against Contractor,whether in contract,tort or otherwise,for all defects in workmanship furnished by Contractor for a period of one-year.A manufacturer's warranty shall be furnished to Customer with manufacturer's warranty. It is expressly agreed that in the event of any defects in the materials furnished pursuant to this contract or any other claim which is includible in the manufacturer's warranty,Customer shall have recourse only against the manufacturer.Customer shall have no right to make a claim under any warranty until such time as it has made full payment to Contractor,including any applicable late charges. 21. Tolerances:All materials and work shall be furnished in accordance with normal industry tolerances for color,variation, thickness,and size,weight,amount,finish,and texture and performance standards.Specified quantities are intended to represent an average over the entire construction work area. 22: Mold:Contractor and Customer are committed to acting promptly so that building repair leaks are not a source of potential interior mold growth.Customer will make periodic inspections for signs of water intrusion and act promptly; including notice to Contractor if Customer believes there are building leaks,to correct the condition. Upon receiving notice,Contractor will make repairs promptly so that water entry through the repair area installed by Contractor is not a source of moisture.Contractor is not responsible for indoor air quality,mold,mildew or any alleged injury resulting there from.Owner/Customer shall hold harmless and indemnify Contractor from claims due to poor indoor air quality and resulting from a failure by Owner/Customer to maintain the interior and exterior of the building in a manner to avoid the growth of mold. 23. Dispute Resolution: If a dispute shall arise between Contractor and Customer with respect to any matters or questions arising out of or relating to this Contract or the breach thereof,such dispute shall be decided by arbitration administered and in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association.This agreement to arbitrate shall be specifically enforceable under the prevailing arbitration law.The award rendered by the arbitrators shall be final and judgment may be entered upon it in any Court having jurisdiction thereof.Any legal claim against Contractor,including a claim alleging any breach of this contract or negligence by Contractor must be initiated no later than one(1)year after Contractor completed area of repair installation unless such time is extended by applicable warranty.Collection matters,including a mechanic's lien foreclosure, may be processed through litigation or arbitration at the sole discretion of the Contractor. 24. Permits&Taxes:Customer authorizes Contractor to obtain any permits as may be necessary for work to be performed at the purchaser's expense.Customer shall pay all taxes required by law in connection with work on the project in accordance with this contract including sales, use and similar taxes,and shall secure all licenses necessary for proper completion of the work,paying the fees therefore. 25. Reimbursable Expenses:Contractor shall be reimbursed at cost plus 20%for any out of pocket expenses incurred.Such expenses include but are not limited to building materials delivery and rubbish removal(dumpster)service fuel surcharges. 26. Material References: Contractor is not responsible for the actual verification of technical specifications of product manufacturers; i.e., R-value or ASTM or UL compliance,but rather the materials used are represented as such. 27. Complete Agreement:These terms and conditions and the proposal/contract documents to which they are attached contain the complete agreement of the parties and supersede any other communications,whether written or oral,unless the terms are expressly incorporated in the Proposal or these terms and conditions or separately agreed to in a writing signed by Contractor. No addition to or variation from such terms and conditions shall be binding unless expressly agreed to in writing by Contractor. END OF TERMS AND CONDITIONS US-CES—U.S.Construction Efficiency Solutions,Inc. CLIENT'S TERMS AND CONDITIONS Existing Building:Restoration&Renovation Page 3 of 3