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i � Contract Project Name Page 3 of 5 �.1 A Change Order is any change to the original plans and/or specifications. All change orders need to be agreed upon in writing, including cost, additional time considerations,approximate dates when the work will begin and be completed, a legal description of the location where the work will be done and signed by both parties. NO extra work will be started or special order items ordered until the extra work/change order sheet has been signed by all parties,contractor, owner and subcontractor (If applicable)and payment in full for the additional work to be done or special order item(s)ordered. There will be a 20%fee added to all extra work change order sheets for additional scheduling and administration by contractor. ARTICLE 9. INSURANCE 9.1 The Owner will purchase and maintain property insurance to the full and insurable value of the project, in case of a fire,vandalism,malicious mischief or other instances that may occur. 9.2 The Contractor shall purchase and maintain needed Workman's Compensation and Liability insurance coverage as required by law and deemed necessary for his own protection. ARTICLE lO. GENERAL PROVISIONS 10.1 If conditions are encountered at the construction site which are subsurface or otherwise concealed phvsical conditions or unknown physical conditions of an unusual nature,which differ naturally from those ordinarily found to exist and e�nerally recognized as inherent in construction activities,the Owner will promptly investigate such conditions and, if they differ materially and cause an increase or decrease in the Contractor's cost of,and/or time required for, performance of any part of the work,will negotiate with the Contractor an equitable adjustment in the contract sum,contract time or both. 10.2 'The Owner bears all responsibilities for markin�the location of existing water lines and septic tank before construction. It is unkno��n,by all parties, if any underground obstructions other than those stated in the text of this contract e�cists. If any such obstructions are found and must be removed from the site work area,the movement of which obstructions causes an increase in the cost of the contract,then those costs shall be incurred by the property owner. This provision shall not apply to anticipated roots of trees. It is acknowledged that there has been no soil stabilization test done on the subject site. If a test is requested by the owner or by local authorities(for example,the Building Deparhnent),Bianco Construction Co. shall have such a test performed by a licensed engineer. All costs involved in this testing shall be the responsibility of the property Owner. 10.3 Existin�Conditions: We make no representation of existin�conditions and assume no responsibilitv of condition for any of the Owners' equipment that may or may not be relocated or affected by our work,unless such conditions are caused by an act of negligence on our part. 10.4 It is acknowledged that hidden structural defects.termite damage,wood rot, fault_y wiring, substandard plumbing, sub-standard electrical or other defective components of the existin� house may need to be updated or replaced in order to properly complete the above-quoted work, and further acknowledge that the expense, if any,will be the responsibility of the property owner. 10.5 Deliveries/Performance: it is acknowledged that Bianco Construction shall install a yard sign,to facilitate delivery of materials. Bianco Construction shall have the right to photograph its work and use the photographs for promotional purposes in brochures and in other advertising media. Bianco Construction shall not advertise client names or addresses unless prior approval has been obtained from the client. We shall add client names to the current past client list to be provided to potential clients,on request. 10.6 Utilities: Bianco construction will use the owner furnished utilities electric and water for the construction of the project,it is understood that the owner shall beaz the costs of those utilities above and beyond the price agreed upon in this contract ARTICLE 11. ARBITRATION OF DISPUTES 11.1 Any controversy or claim arising out of or relating to this contract, or the breach thereof,shall be settled by arbitration administered by the American Arbitration Association under its Conshuction Industry Arbitration Rules,and judgment on the awazd rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. ARTICLE 12. WARRANTY 12.1 At the completion of this project,Contractor shall execute an instrument to Owner warranting the project for 1 year against defects in workmanship or materials utilized. The manufacturers warranty will prevail. ARTICLE 13. TERMINATION OF THE CONTRACT 13.1 Should the Owner or Contractor fail to carry out this contract,with all of its provisions,the following options and stipulations shall apply: 13.1.1 If the Owner or the Contractor shall default on the contract,the non-defaulting parly may declare the contract is in default and proceed against the defaulting party for the recovery of all damages incurred as a result of said breach of contract, including a reasonable attorney's fee. In the case of a defaulting Owner,the Earnest money herein mentioned shall be applied to the legally ascertained damages. 3 Initialed by: Owner Contractor