8 - contract review & construction projects · 8 - contract review & construction projects...

8 - CONTRACT REVIEW & CONSTRUCTION PROJECTS

Risk Management and Insurance Manual - March 2018 8.1


801 Contract Review Policy

The purpose of this policy is to insure that all of the various entities that are part of the Diocese of Charlotte are following the same procedures when making agreements with outside Contractors/Vendors.

In addition, it is to insure that the liability present under the contract is assumed by the proper party and in particular that the Bishop of Charlotte and the Diocese of Charlotte does not agree to any unnecessary hold harmless or otherwise unnecessary provisions.

These procedures must be followed by all Diocesan entities. The following Contracts / Agreements are to be sent to the Diocesan Properties & Risk Management Office, reviewed by the Legal Department, and signed by the Chancery:

All contracts with architects and engineers

All long term building, grounds and space lease agreements of 1 year or more

Equipment or Vehicle lease agreements of 1 year or more

All financing and debt related agreements

All other contracts with vendors or service providers which exceed $5,000

802 Submission Requirements

The following documents must be submitted to the Diocesan Properties and Risk Management Office, reviewed by the Legal Department, and signed by the Chancery prior to the commencement of any work.

802.1 For Service / Vendor Agreements < $10,000

Proposal of services clearly outlining the scope of work and total cost

Certificate of Insurance listing Bishop of Charlotte, Diocese, and location as additionalinsured (See Section 813 for certificate wording and Sample COI (Form 8.F))

802.2 For Service / Vendor Agreements > $10,000 < $25,000

Proposal of services clearly outlining the scope of work and total cost

Owners Addendum to the Service Agreement (Form 8.B)

Certificate of Insurance listing Bishop of Charlotte, Diocese, and location as additionalinsured

802.3 For Construction and Renovation Projects > $50,000 that have an Architect

Standard AIA Agreements

Owners Required Changes to the Standard AIA Agreements (Form 8.D)

Owners Addendum to the Construction Contract (Form 8.C)

Certificate of Insurance listing Bishop of Charlotte, Diocese, and location as additionalinsured

Performance and Payment Bonds are required on projects > $500,000 per section 814.



802.4 Construction and Renovation Projects > $10,000 that do NOT have an Architect

Construction Agreement Between Owner and Contractor (Form 8.A)

Certificate of Insurance listing Bishop of Charlotte and location as additional insured

803 Construction Agreement Between Owner and Contractor - (Form 8.A)

When to use: For those construction and renovation projects that do not have an architect you may use the Construction Agreement between Owner and Contractor (Form 8.A) –UNALTERED.

Contractors must provide a Certificate of Insurance. No contracts will be signed without this. The Certificate of Insurance should include the participating parish/school/agency organization and the Bishop of Charlotte as an “Additional Named Insured.” Thirty (30) days' written notice of cancellation or any material change in policy must be given to the Diocese. All Certificates of Insurance should be submitted to the Director of the Diocesan Properties & Risk Management Office.

804 Owners Addendum to the Service Agreement - (Form 8.B)

When to use: The Owners Addendum to the Service Agreement (Form 8.B) is to be used for all service / vendor work and minor maintenance under $25,000 that does not require a full contract, but is agreed to by Purchase Order or Contractor's Bid Proposal.

805 Owners Addendum to the Construction Contract - (Form 8.C)

When to Use: The Owners Addendum to the Construction Contract (Form 8.C) is to be submitted along with all construction, renovation, and remodeling contracts > $10,000.

Note: For small contractor projects that are less than $10,000, it is not a requirement for a parish/school/agency to utilize the Owners Addendum to the Construction Contract (Form 8.C). However, the parish/school/agency must still verify that these contractors have liability insurance covering their construction operations at the parish/school/agency as defined and required above.

By attaching the Owners Addendum to the Construction Contract (Form 8.C) to the contract, your parish/school/agency will satisfy insurance requirements. The parish/school/agency should always verify that the contractor has named the Bishop of Charlotte c/o the parish/school/agency as an Additional Insured on their general liability insurance policy. It is not adequate for the parish/school/agency to obtain a Certificate of Insurance that names the parish/school/agency as a “certificate holder.” As a “certificate holder,” the parish/school/agency has no legal rights under a contractor's insurance policy.

Note: Since a contractor will have to make a specific request to their insurance company to get the parish/school/agency and the Bishop of Charlotte named as an Additional Insured, it is important to inform them of this requirement well in advance.



806 Owners Required Changes to the Standard AIA Contracts - (Form 8.D)

When to use: The Owners Required Changes to the Standard AIA Contracts (Form 8.D) is to be submitted along with all the construction, renovation, and remodeling projects on which Standard AIA documents are used. The required contract shall be a standard contract prepared by the American Institute of Architects, (AIA). Two of the most common standard contracts are the AIA Document A201 and the AIA Document A101. There are, however many other AIA contracts that may apply.

From an insurance and indemnification standpoint, many elements of the standard documents are written in favor of the contractor and/or sub-contractor. Fortunately, the contracts can be altered to make them more equitable for parishes/schools/agencies.

The Owners Required Changes to Standard AIA Contracts (Form 8.D) is to be attached to EVERY AIA contract and signed by the GC as accepted. Please note the changes are only intended to address insurance and indemnification concerns. Other areas of the contract should be reviewed on behalf of the parish/school/agency by the Diocesan Attorney and the Diocesan Properties & Risk Management Office.

807 Contracts with Architects and Engineers

American Institute of Architects (AIA) Standard Documents shall be used when retaining the services of Architects and Engineers. Proof of Professional Liability Insurance will be required. The Architect is required to supply the Diocese with a Certificate of Insurance indicating a minimum of $1,000,000 Professional Liability Insurance with Errors and Omissions Provisions in place.

808 Service and Minor Maintenance Contracts

The Small Contractor / Worker Hold Harmless / Indemnity Agreement (Form 8.E) is to be used for all service work and minor maintenance under $25,000 that does not require a full contract, but it agreed to by Purchase Order or Contractor’s Bid Proposal.

809 Expenditure Approval

All major expenditures incurred by parishes, schools, or agencies (either project, or non-project related) are to be approved by the Chancellor.

Major Expenditures are defined as follows:

1. Non-recurring expenditures or expenditures that reoccur on an annual basis where thepayment exceeds:

$5,000 for entities with total revenues LESS than $500,000

$10,000 for entities with total revenues ABOVE $500,000

2. Multiple payments for a single project when the total of the project exceeds:





3. Recurring expenditures (lease payments, etc.) when the total commitment for the entirelease or ongoing payments exceeds:



810 Submission and Approval of Construction and Renovation Projects

The Diocese has well-established procedures for all construction and renovation projects, which addresses the necessary planning as well as the actual construction process. All parishes, schools and agencies wishing to construct a new building or renovate an existing facility must follow these Diocesan procedures.

The following is a brief overview of the process to follow for approval for new construction and renovation projects:

1. Conceptual Design Authorization Phase – The Pastor shall seek competitive proposalsfrom approved Architect/Civil Engineer to provide “Conceptual Design Services”Proposals for the project being considered. The Pastor should then send a letter to theDirector of Diocesan Properties & Risk Management addressed to the Chancellor,describing the project being considered, why the project is necessary, how this projectwill benefit the parish/school/agency, the availability of funds to pay for the project, andto request approval to retain an approved Architect/Civil Engineer to begin theprogramming, conceptual design, and budgeting phase. The Director will review therequest, obtain additional information if needed, then will provide writtenrecommendation to the Chancellor for consideration. After review and approval by theDiocesan Attorney, written approval to proceed with the Conceptual Design Phase willbe provided to the pastor from the Chancellor along with the necessary signatures onthe Conceptual Design Proposal.

Note: The conceptual design documents should include only the necessary drawings needed to convey the overall intent of the project to the Chancery and Diocesan Building Commission (when required) as well as serve as a means to obtain a budget for the project.

2. If the estimated cost of the project exceeds $50,000, then under the direction andguidance of the Diocesan Planning Office, parishes are to prepare/update their ParishPlan through the process of completing and submitting the Diocesan parish profile.

3. For projects involving design of liturgical space, the Pastor is to contact the Office ofWorship for review and approval of the plans prior to meeting with the DiocesanBuilding Commission. Whenever liturgical space is included in the project, theguidelines developed by the U.S. Conference of Catholic Bishops must be followed.

Note: The Bishop of Charlotte is the official and final interpreter regarding liturgical matters.

4. Under the direction and guidance of the Diocesan Finance Office, theparish/school/agency is to prepare a financial plan, which includes the cost of theproject, how the project will be funded, and how the debt service will be repaid.Required forms to complete may be obtained from the Director of Diocesan Properties& Risk Management.



5. When the conceptual design phase is complete, the parish has an updated Parish Plan,and the financial plan is in place, the Pastor is to then send a letter to the Director ofDiocesan Properties & Risk Management, addressed to the Chancellor, to request anofficial meeting with the Diocesan Building Commission for the next available monthlymeeting. At this meeting, the parish/school/agency will present all the aboveinformation for commission review and approval. If approved by the Bishop ofCharlotte, written preliminary approval will be provided to the Pastor from theChancellor.

Note: Not all projects must come before the Diocesan Building Commission. Contact the Director of Properties to determine if this step is required.

6. If fundraising is required, the Pastor is to contact the Diocesan Development Office toplan and direct a capital campaign.

7. In order to request final approval from the Chancellor, all of the following financialrequirements must be satisfied:

a. The capital campaign goal must be achievedb. 50% of the total project cost is to be on hand in checking, savings and/or

investment accountsc. 80% of the total project cost is to be from a combination of cash and realizable

pledges receivable, with the remaining 20% of the project cost being eligible fora loan from the diocese

8. After final approval is granted and all financial goals are met, the Pastor is to submit anAIA contract between Owner and Architect to the Diocesan Director of Properties &Risk Management for review and subsequent recommendation to the Chancellor. Thearchitect is required to supply the Diocese with a Certificate of Insurance indicating thatthe firm has a minimum of $1,000,000 Professional Liability insurance with errors andomissions provisions in place. After review and approval by the Diocesan Attorney, theChancellor will submit the contract to the Bishop for signature.

9. Upon completion of the permit and construction documents, the Pastor is to submit theconstruction drawings to the Diocesan Director of Properties & Risk Management witha letter, addressed to the Chancellor, requesting permission to seek bids from threeDiocesan-approved General Contractors. After successful review, the DiocesanDirector of Properties & Risk Management will make formal recommendation to theChancellor requesting approval to bid the project. Written approval will be provided tothe Pastor to proceed.

10. Once bids are received, the Architect will review the bids and prepare a writtentabulation and recommendation to the Pastor. If the project is within budget, then thePastor should contact the Chancellor in writing by submitting a letter to the DiocesanDirector of Properties & Risk Management, addressed to the Chancellor, with anoverview of the three bids, to request permission to award the project to the selectedGeneral Contractor. Written approval will be provided to the Pastor to proceed.

11. The Pastor is to then submit an AIA contract between Owner and Contractor to theDiocesan Director of Properties & Risk Management for review and subsequentrecommendation to the Chancellor. After review and approval by the DiocesanAttorney, the Chancellor will submit the contract to the Bishop for signature.



12. On projects over $50,000 the following additional documents MUST be attached to theAIA Owner / Contractor Agreement - AIA form A201 General Conditions to the Contract,the Owners Addendum to the Construction Contract (Form 8.C), and the OwnersRequired Changes to Standard AIA Contracts (Form 8.D). These documents willbecome part of the approved Construction Agreement.

13. On projects over $500,000 the general contractor is required to supply the Diocese witha Performance and Payment Bond for the full cost of the project. After review andapproval by the Diocesan Attorney, the Chancellor will submit the contract to the Bishopof Charlotte for signature. Written approval will be provided to the Pastor to proceed bythe Chancellor.

14. Once contracts have been approved and signed by the Bishop, no changes may bemade to the signed contract without a formal AIA change order, which must besubmitted to the Director of Properties and signed by the Chancellor.

15. The Pastor is to make payments only on receipt of a Certificate of Payment form (AIADocument G702) from the architect. A copy of each Certificate of Payment is to besent to the Diocesan Properties & Risk Management Office, along with copies of thearchitect’s invoices as they are paid by the parish/school/agency.

Note: The Bishop is the only person who may commit a parish/school/agency of the Diocese to any debt. Therefore, all contracts are to be in the Bishop of Charlotte’s name and sent to the Chancellor for legal review and the Bishop’s signature.

811 Bidding Requirements

The following guidelines are to be followed when hiring an outside vendor/contractor to perform renovations, repairs, maintenance or improvements to any Diocesan owned properties:

811.1 All projects where the total expenditure is greater than $5,000:

Written bids from at least three vendors/contractors are to be obtained prior to selecting a vendor/contractor. The vendor/contractor is to be selected on the basis of price, reputation, and commitment to finish the project within the time constraints. If the project is not awarded to the lowest bidder, justification of the vendor/contractor selected must be documented, and submitted to the Properties Dept. After review and approval by the Diocesan Attorney, the Chancellor will sign the agreement, if required by Section 808.

811.2 All projects where the total expenditure is less than $5,000:

If the estimated project cost is less than $5,000, a vendor/contractor may be selected without obtaining competitive bids. However, selection of the vendor/contractor for hire is to be based on prior competitive bids submitted to the parish/school/agency and the quality of previous projects performed for the parish/school/agency. A written scope of work and detailed estimate of the project cost is to be obtained from the selected vendor/contractor and signed by the Pastor prior to commencement of the work.



812 Use of Volunteers

As a general rule, the use of volunteers to perform construction services is discouraged. Personal safety, availability of required warrantees, lack of required insurance levels, as well as worker qualification issues, is a significant concern. Additionally, volunteer worker availability cannot be readily integrated into contractor scheduling. While the use of volunteers on construction projects is not absolutely forbidden, the Pastor should use good common sense and sound judgment before allowing volunteers to do any construction work. Please also see “Section 5: Volunteer Workers” for additional guidelines.

813 Insurance Coverage Required

All contractors and service providers are required to carry three types of insurance (regardless of the size of the contract) and provide a Certificate of Insurance, see Sample COI (Form 8.F) for reference, substantiating the insurance in place. The Certificate of Insurance is to be provided for the additional insured as follows:

Bishop Peter J. Jugis Roman Catholic Diocese of Charlotte c/o (Parish / School / Agency name)

The following types of insurances are required:

Workers' Compensation Insurance on all his/her employees; he/she will also require allthe Subcontractors to carry Worker's Compensation on all their employees. Contractorwill indemnify the Owner against any claims made by any employees, subcontractors,or anyone employed directly or indirectly by any of them. This indemnification is notlimited to compensation paid under any Workers' Compensation policy.

General / Commercial Liability Insurance in an amount of not less than $2,000,000 peroccurrence. Such insurance should include the Bishop, all Subcontractors, and anyonedirectly or indirectly employed by any of them, or by anyone for whose acts any of themmay be liable. Said general liability insurance should include claims for damagesbecause of bodily injury, sickness or disease, or death of any person other than theContractor's employees, claims for damages insured by usual personal injury liabilitycoverage which are sustained by any person as a result of an offense directly orindirectly related to the employment of such person by the Contractor or by any otherperson, and claims for damages, other than to work itself, because of injury to ordestruction of tangible property, including loss of use resulting there from.

Automobile Liability Insurance, covering any and all kinds of motor vehicles, in anamount of not less than $2,000,000 per occurrence. Such insurance should include·any and all claims for damages because of bodily injury or death of any person orproperty damage arising out of the ownership, maintenance, or use of a motor vehicle.

814 Additional Insurance Requirements

Architects & Engineers – Any Architect or Engineer involved in planning or design work for the Diocese will be required to show evidence of Professional Errors and Omissions coverage for the project. The Architect or Engineer is required to supply the Diocese with a Certificate of



Insurance indicating that the firm has a minimum of $1,000,000 Professional Liability insurance with errors and omissions provisions in place provided to the Bishop of Charlotte c/o the parish/school/agency.

Performance & Payment Bonds – All large construction contracts with a total cost of $500,000 or more must provide to the Diocese a Performance and Payment Bond equal to the value of the project.

ADDITIONAL INSURED: CONTRACTOR agrees to provide a Certificate of Insurance to the Diocese which will name the

Bishop of Charlotte and the Parish/School/Agency as an additional insured on CONTRACTORS liability policy for claims arising

out of CONTRACTORS, subcontractors or sub-subcontractors operations or made by CONTRACTORS, subcontractors or

sub-subcontractors, employees, agents, guests, customers, invitees or subcontractors. CONTRACTOR must verify its liability

insurance policy is primary in the event of a covered claim or cause of action against the Diocese.

CONSTRUCTION AGREEMENT BETWEEN OWNER AND CONTRACTOR

____________________________________ Hereinafter called the Owner, agrees to pay Parish/School/Agency

____________________________________ Hereinafter called the Contractor, the sum of Contractor

$___________________________________ for the following work: _____________________________________________

___________________________________________________________________________________________________

___________________________________________________________________________________________________

Partial payment requests will be considered based on a maximum of 90% of materials on the job or in place and labor already accomplished.

The work should be completed by this date __________________ and the Contractor shall provide the warranties or other documents prior to payment:

The Contractor should begin the work within seven (7) days of the date of this contract unless other provisions have been made. He should carry the work forward expeditiously with adequate, qualified workers and should achieve substantial completion within the contract time.

Neither the final certificate of payment, nor any provisions in the project by the Owner should constitute an acceptance thereof if not in the contract, nor partial or entire use of accordance with the contract or relieve the Contractor of liability in respect to any express warranties or faulty workmanship/materials within a period of one year.

The Contractor should indemnify and hold harmless the Bishop of Charlotte, the Parish / School / Agency Listed Above, its agents, and employees from and against all claims, damages, losses, and expenses, including, but not limited to, attorneys' fees arising out of or resulting from the performance of the work, which is caused in whole or in part by the negligent act or omission of the Contractor, any Subcontractor, or anyone directly or indirectly employed by any of them. In case any action is brought therefore against the Owner or any of its agents, employees or Subcontractors, the Contractor should assume full responsibility for the defense thereof; upon Contractor's failure to do so on proper notice, the Owner reserves the right to defend such action and to charge all costs thereof to the Contractor. The carrying of the insurance required herein should not relieve the Contractor of the duty of indemnity in the event that such insurance should be inadequate, for any reason, to protect the Owner in full.

The Contractor should at all times carry the following insurance coverage:

BUILDER'S RISK INSURANCE: A Builder's Risk and Boiler and Machinery Coverage will be obtained by OWNER to cover

the project. Any payment under Builder's Risk or Boiler and Machinery Coverages will be made jointly to OWNER and CONTRACTOR. Further, OWNER and CONTRACTOR agree that any payment under Builder's Risk or Boiler and Machinery Coverages will be placed into a joint account until such funds are reinvested in the construction project.

COMMERCIAL GENERAL LIABILITY INSURANCE: While CONTRACTOR is performing operations at the Parish / School /

Agency, CONTRACTOR will maintain commercial general liability insurance in the amount of not less than two million dollars ($2,000,000) per occurrence. It is further agreed that the CONTRACTOR agrees to protect, defend, indemnify, and hold harmless the Parish/School/Agency against and from any claim or cause of action arising out of or from any negligence or other actionable fault of the CONTRACTOR, or its employees, agents, members, or officers.

AUTOMOBILE LIABILITY INSURANCE: CONTRACTOR will maintain automobile liability insurance for any owned autos,

hired autos or non-owned autos used in connection with the contractor's business. Automobile liability coverage will be maintained by the CONTRACTOR in the minimum amount of two million dollars ($2,000,000) combined single limit.

WORKER'S COMPENSATION INSURANCE: CONTRACTOR will maintain worker's compensation insurance as required by

law.

Risk Management and Insurance Manual – March 2018 Form 8.A

Risk Management and Insurance Manual – March 2018 Form 8.A (2)

SUBCONTRACTORS: CONTRACTOR is required to verify that all subcontractors maintain general liability insurance,

worker's compensation insurance and automobile liability insurance. Furthermore, CONTRACTOR agrees to indemnify and defend the Diocese for any claim or cause of action, whatsoever which was caused by the negligence, or other actionable fault of an uninsured subcontractor.

NO WAIVER OF SUBROGATION: OWNER does not waive or limit any rights of recovery against the CONTRACTOR,

subcontractor or sub-subcontractor for any damages. OWNER and CONTRACTOR, subcontractor and sub-subcontractor do waive the right of recovery against each other for any damages covered under Property, Builders Risk or Boiler and Machinery coverage for which either party is responsible if that party does not have liability insurance to cover such damages and liability insurance has been maintained as required by this document.

CONTRACT OVERRIDE AND SEVERABILITY PROVISION: CONTRACTOR and Diocese agree that this addendum

overrides any and all portions of previous agreements between CONTRACTOR and Diocese that contain language in contradiction with this contract. If any portion of this Addendum to Construction Contract is deemed or is determined to be in conflict with local or state or national statutes, both CONTRACTOR and Diocese agree that the portion of the Addendum to Construction Contract which is in conflict with the statute will be stricken from the Addendum to Construction Contract with the remainder of the Addendum to Construction Contract remaining binding for both parties.

Each of the above listed policies will contain a requirement that, in the event of change or cancellation, ten (10) days' prior written notice will be sent by mail to the Owner.

The Contractor should be responsible for initiating, maintaining, planning, and supervising all safety precautions and programs in connection with the work.

The Contractor will not discriminate against any employee, applicant for employment, or Subcontractor because of race, creed, color, sex, handicap, or national origin.

If the Contractor: Is adjudged as bankrupt; makes a general assignment for the benefit of his creditors; has a receiver appointed on account of his insolvency; persistently or repeatedly refuses or fails, except in cases for which extension of time is provided to supply enough properly skilled workers or proper materials; fails to make prompt payment to Subcontractors or for materials or labor, persistently disregards laws, ordinances, rules, regulations, or orders of any public authority having jurisdiction; or otherwise is guilty of a substantial violation of a provision of the Contract documents, Then the Owner may, without prejudice to any right or remedy, and after giving the Contractor and his surety, if any, seven days' written notice, terminate the employment of the Contractor and the contract will be deemed null and void.

Signed and agreed to:

___________________________________________ ___________________________

Bishop Peter J. Jugis Date

Roman Catholic Diocese of Charlotte

___________________________________________ ___________________________

Contractor (Print Name) Date

___________________________________________ ___________________________

Signature Date

Risk Management and Insurance Manual – March 2018 Form 8.B

OWNERS ADDENDUM TO THE SERVICE AGREEMENT

GENERAL LIABILITY INSURANCE: While Contractor / Service Provider is performing operations at Parish / School

/ Agency, Contractor / Service Provider shall maintain general liability insurance in the amount of not less than two (2) million dollars ($2,000,000) per occurrence. It is further agreed that the Contractor / Service Provider agrees toprotect, defend, indemnify, and hold harmless the Parish / School / Agency and the Diocese of Charlotte against andfrom any claim or cause of action arising out of or from any negligence or other actionable fault of the Contractor / Service Provider, or its employees, agents, members, or officers.

WORKER’S COMPENSATION INSURANCE: Contractors / Service Providers shall maintain worker’s

compensation insurance as required by law.

EVIDENCE OF INSURANCE: Contractor / Service Provider agrees to provide evidence of the above insurance

coverage to the Parish / School / Agency. Contractor agrees to provide a Certificate of Insurance to the Diocese

which will name the Bishop of Charlotte and the Parish/School/Agency as an additional insured on Contractors

liability policy for claims arising out of Contractors, subcontractors or sub-subcontractors operations or made by

Contractors, subcontractors or sub-subcontractors, employees, agents, guests, customers, invitees or

subcontractors. Contractor must verify its liability insurance policy is primary in the event of a covered claim or

cause of action against the Diocese.

NO WAIVER OF SUBROGATION: Owner does not waive or limit any rights of recovery against the Contractor /

Service Provider for any damages resulting from the negligent acts of the Contractor / Service Provider associatedwith the contract. O w n e r and Contractor / Service Provider agree that Contractor / Service Provider’s financialresponsibility is limited to the amount of Contractor / Service Provider’s liability insurance in the event Contractor / Service Provider causes damage or loss to Parish / School / Agency.

CONTRACT OVERRIDE AND SEVERABILITY PROVISION: Contractor / Service Provider and Owner agree that

this addendum overrides any and all portions of previous agreements between Contractor / Service Provider andOwner that contain language in contradiction with this contract. If any portion of this Addendum to Service Contractis deemed or is determined to be in conflict with local or state or national statutes, both Contractor / Service Providerand Owner agree that the portion of the Addendum to Service Contract which is in conflict with the statute will bestricken from the Addendum to Service Contract with the remainder of the Addendum to Service Contract remainingbinding for both parties.

CONTRACTOR/SERVICE PROVIDER: OWNER:

SIGNATURE: SIGNATURE:

Peter J. Jugis, Bishop of the Roman Catholic Diocese of Charlotte

NAME NAME

DATE DATE

START DATE OF CONTRACT (Understood to be date signed if left blank):

Instruction to Parish (Parish Use Only): This Addendum to Service Contract stands on its own as a legal contract between Diocese and Contractor / Service Provider

should this addendum not be incorporated or attached to a contract.

Risk Management and Insurance Manual – March 2018 Form 8.C

OWNERS ADDENDUM TO THE CONSTRUCTION CONTRACT

BUILDER'S RISK INSURANCE: A Builder's Risk and Boiler and Machinery Coverage will be obtained by OWNER

to cover the project. Any payment under Builder's Risk or Boiler and Machinery Coverages will be made jointly to OWNER and CONTRACTOR. Further, OWNER and CONTRACTOR agree that any payment under Builder's Risk or Boiler and Machinery Coverages will be placed into a joint account until such funds are reinvested in the construction project.COMMERCIAL GENERAL LIABILITY INSURANCE: While CONTRACTOR is performing operations at the Parish

/ School / Agency, CONTRACTOR will maintain commercial general liability insurance in the amount of not less than two million dollars ($2,000,000) per occurrence. It is further agreed that the CONTRACTOR agrees to protect, defend, indemnify, and hold harmless the Parish/School/Agency against and from any claim or cause of action arising out of or from any negligence or other actionable fault of the CONTRACTOR, or its employees, agents, members, or officers.AUTOMOBILE LIABILITY INSURANCE: CONTRACTOR will maintain automobile liability insurance for any owned

autos, hired autos or non-owned autos used in connection with the contractor's business. Automobile liability coverage will be maintained by the CONTRACTOR in the minimum amount of two million dollars ($2,000,000) combined single limit.WORKER'S COMPENSATION INSURANCE: CONTRACTOR will maintain worker's compensation insurance as

required by law.ADDITIONAL INSURED: CONTRACTOR agrees to provide a Certificate of Insurance to the Diocese which will

name the Bishop of Charlotte and the Parish/School/Agency as an additional insured on CONTRACTORS liability policy for claims arising out of CONTRACTORS, subcontractors or sub-subcontractors operations or made by CONTRACTORS, subcontractors or sub-subcontractors, employees, agents, guests, customers, invitees or subcontractors. CONTRACTOR must verify its liability insurance policy is primary in the event of a covered claim or cause of action against the Diocese.SUBCONTRACTORS: CONTRACTOR is required to verify that all subcontractors maintain general liability

insurance, worker's compensation insurance and automobile liability insurance. Furthermore, CONTRACTOR agrees to indemnify and defend the Diocese for any claim or cause of action, whatsoever which was caused by the negligence, or other actionable fault of an uninsured subcontractor.NO WAIVER OF SUBROGATION: OWNER does not waive or limit any rights of recovery against the

CONTRACTOR, subcontractor or sub-subcontractor for any damages. OWNER and CONTRACTOR, subcontractor and sub-subcontractor do waive the right of recovery against each other for any damages covered under Property, Builders Risk or Boiler and Machinery coverage for which either party is responsible if that party does not have liability insurance to cover such damages and liability insurance has been maintained as required by this document.CONTRACT OVERRIDE AND SEVERABILITY PROVISION: CONTRACTOR and Diocese agree that this

addendum overrides any and all portions of previous agreements between CONTRACTOR and Diocese that contain language in contradiction with this contract. If any portion of this Addendum to Construction Contract is deemed or is determined to be in conflict with local or state or national statutes, both CONTRACTOR and Diocese agree that the portion of the Addendum to Construction Contract which is in conflict with the statute will be stricken from the Addendum to Construction Contract with the remainder of the Addendum to Construction Contract remaining binding for both parties.

Contractor:

Name: __________ Signature: Date: __________

(Print)

Owner:

Bishop Peter J. Jugis Signature: Date: __________Roman Catholic Diocese of Charlotte

START DATE OF CONTRACT (Understood to be date signed if left blank): _______________________________

Instruction to Parish (Parish Use Only): This Addendum to Construction Contract stands on its own as a legal contract betweenDIOCESE and CONTRACTOR should this addendum not be incorporated or attached to a contract.

Risk Management and Insurance Manual – March 2018 Form 8.D

OWNERS REQUIRED CHANGES TO STANDARD AIA CONTRACTS

Please check the box next to the AIA document that is being utilized. Checked boxes will denote the deletion and/or modification of the corresponding AIA contract as shown below.

Owner and Contractor agree that the deletions and/or changes outlined will be binding and alter the corresponding AIA contract that is referenced. Both Owner and Contractor agree the Addendum will supersede any other contractual language.

AIA Document A201 - 1987 edition - General Conditions of the Contract for Construction

o 10.1.4 - Delete second from last sentence (beginning with “regardless of whether or not...”)

o 11.3.1 - Delete second half of first sentence (beginning after semicolon with “This insurance shall...”)

o 11.3.2 - Delete entire paragraph




AIA Document A201 - 1997 edition - General Conditions of the Contract for Construction

o 10.3.3 - Delete the word “sole” from the last sentence


o 11.4.1 - Delete the last sentence only (beginning with “This insurance shall ...”)

o 11.4.2 - Delete second half of first sentence (beginning after semicolon with “This insurance shall...”)




AIA Document A201-2007 edition - General Conditions of the Contract for Construction

o 11.3.1 - Add sentence to end ”While the interests of all parties are covered, only the Owner will benamed as an insured”.

o 11.3.2 - Delete second half of last sentence “and the Owner and Contractor should be namedinsureds.” Add sentence to end of paragraph “Owner and Contractor agree only the Owner will be an insured on the policy.”

o 11.3.3 - Add sentence to end “This paragraph does not apply to the extent Owner, Contractor,subcontractor, sub-subcontractor, architect, architects consultants, or an agent of any of the above has liability insurance to cover damages sustained by Owner or Contractor.”




Risk Management and Insurance Manual – March 2018 Form 8.D (2)

AIA Document A107 - 1987 edition - Abbreviated Form of Agreement Between Owner and Contractor for

Construction Projects of Limited Scope

o 17.2 - Delete last sentence only (beginning with “The Contractor shall ...”)

o 17.3 - Delete last sentence only (beginning with “This insurance shall ...”)

o 17.6 - Delete entire paragraph

AIA Document A107 - 1997 edition - Abbreviated Standard Form of Agreement Between Owner and

Contractor for Construction Projects of Limed Scope

o 15.2.2 - Delete the word “sole” from the last sentence


o 16.4.1 - Delete last sentence only (beginning with “this insurance shall ...”)


AIA Document A107 - 2007 edition - Standard Form of Agreement Between Owner and Contractor for a

Project of Limited Scope

o 17.3.1 - Replace last sentence with “While the interests of all parties are covered, only the Ownerwill be named as an insured.”

o 17.3.3 - Add sentence to end of paragraph “This paragraph does not apply to the extent Contractor,subcontractor, sub-subcontractor, architect, architects consultants, or an agent of any of the above has liability insurance to cover damages sustained by Owner”

AIA Document A141 - 2004 edition (Exhibit A) - Standard Form of Agreement Between Owner and Design

Builder

o A.11.4.7 - Waivers of subrogation - Delete this section

AIA Document A201/CMA - 1992 edition - Standard Form of Agreement Between Owner and Architect

Where the Construction Manager is NOT a Constructor

o 10.1.4 - Delete the phrase “in whole or in part” in the second line from the bottom of paragraph

o 11.3.1 - Delete last sentence only

o 11.3.2 - Delete “this insurance should include interests of the Owner, Construction Manager,Contractor, Subcontractors, and Sub-subcontractors in the Work and the Owner and Contractor should be named insureds” beginning in the fifth line of the paragraph






Risk Management and Insurance Manual – March 2018 Form 8.D (3)

AIA Document A191 - Electronic Format - 1996 edition - Standard Form of Agreements Between Owner

and Design/Builder

o 7.2.1 - Delete last sentence only (beginning with “The Design/Builder shall ...”)

o 7.3.1 - Delete last sentence only (beginning with “This insurance shall ...”)


o 7.3.4 - Delete last two sentences (beginning with “This insurance shall ...”)



AIA Document B101 – 2007 edition - Standard Form of Agreement Between Owner and Architect



o 8.2.4 - Add the following: “Both parties agree the method of binding dispute resolution will be“Litigation in a court of competent jurisdiction.”

AIA Document B141 - 1987 edition - Standard Form of Agreement Between Owner and Architect


AIA Document B141 -1997 edition - Standard Form of Agreement Between Owner and Architect with

Standard Form of Architects Services


o 1.3.7.4 - Delete entire paragraph

AIA Document B151-1997 edition - Abbreviated Standard Form of Agreement Between Owner and

Architect


Contractor:

Name: Signature: ______________________ Date: __________

(Print)

Owner:

Peter J. Jugis, Bishop Signature: ______________________ Date: __________

START DATE OF CONTRACT (Understood to be date signed if left blank):

_________________________________________________________________________________

Instruction to Parish (Parish Use Only): This Addendum to Construction Contract stands on its own as a legal contract betweenDIOCESE and CONTRACTOR should this addendum not be incorporated or attached to a contract.

Roman Catholic Diocese of Charlotte

SMALL CONTRACTOR / WORKER HOLD HARMLESS / INDEMNITY AGREEMENT(RETURN COMPLETED FORM TO PARISH/SCHOOL/AGENCY)

PARISH/SCHOOL/AGENCY: (Understood to include the Diocese of Charlotte)

CONTRACTOR/WORKER:

DATE: __________________ DURATION OF PROJECT:

TYPE OF PROJECT:

The above-named Contractor/Worker agrees to defend, protect, indemnify and hold harmless the above-named Parish/School/Agency and the Diocese of Charlotte against and from all claims arising from the negligence or fault of the above-named Contractor/Worker or any of their agents, family members, officers, volunteers, helpers, partners, organizational members or associates which arise out of the above-named Project at the above-named Parish/School/Agency.

Contractor/Worker agrees to provide a Certificate of Insurance to the Parish/School/Agency, which provides evidence of general liability coverage of not less than one million dollars ($1,000,000) per occurrence. Contractor/Worker also agrees to have the Parish/School/Agency named as an ”Additional Insured” on its general liability policy for the Date – Duration Of The Project in the relationship to the Type Of Project for claims which arise out of Contractor/Worker operations or are brought against the Parish/School/Agency by Contractor/Workers’ employees, agents, partners, family members, officers, volunteers, helpers, organizational members or associates. Contractor/Worker also agrees to ensure that its liability insurance policy will be primary in the event of a covered claim or cause of action against the Parish/School/Agency.

If and only if Contractor/Worker fails to comply with the above (second) paragraph, then the above Contractor/Worker agrees to protect, defend, hold harmless, and fully indemnify the above-named Parish/School/Agency for any claim or cause of action whatsoever arising out of or related to the Project during the above identified Date – Duration Of The Project that is brought against the Parish/School/Agency by the above-named Contractor/Worker or his employees, agents, partners, family members, officers, volunteers, helpers, organizational members or associates, even if such claim arises from the alleged negligence of the Parish/School/Agency, its employees, or agents, or the negligence of any other individual or organization. If any sentence or paragraph of this agreement is held invalid, it is agreed that the balance thereof, should continue in full legal force and effect.

NO WAIVER OF SUBROGATION: Parish/School/Agency does not waive any rights of recovery against the Contractor/Worker, subcontractor or sub-subcontractor for any damages. Parish/School/Agency and Contractor/Worker, subcontractor or sub-subcontractor do waive the right of recovery against each other for any damages covered under the Property Builders Risk or Boiler & Machinery coverage for which either party is responsible if that party does not have liability insurance to cover such damages and liability insurance has been maintained as required by this document.

Contractor/Worker and Parish/School/Agency agree that this addendum overrides any and all portions of previous agreements between Contractor/Worker and Parish/School/Agency that contain language in contradiction with this contract.

Contractor:

Name: ________________________ Signature: ______________________ Date: __________(Print)

Parish / School / Agency

Name: Signature: ______________________ Date: __________

Risk Management and Insurance Manual – March 2018 Form 8.E

..............................................................................................................................................................................................................................................................

..................................................................................................................................................................................................

Risk Management & Insurance Manual - March 2018 Form 8. F

SAMPLE

krebersole

Highlight

krebersole

Highlight

krebersole

Highlight

krebersole

Highlight

krebersole

Highlight

krebersole

Highlight

krebersole

Highlight