CHAPTER V THE CONTRACTOR AND THE SUBCONTRACTOR Character of Work Sublet Contractors engage as their direct employees certain mechanics and laborers to install and erect some of the materials required on the work. They do not all have similar organizations of workmen. Each determines the lines of work his organization is to perform. Work frequently done by men in their employ includes erection of structural steel, laying of brick, placing of foundations, and the activities of various other trades. Contractors do not as a general rule directly engage machanics and laborers for every trade required in their construction work. There are concerns which specialize in certain branches of construction work and have organizations of workmen specially skilled in such trades as the manufacture and installation of elevators; the furnishing and setting of limestone, granite, and marble; the fabrication and installation of ornamental ironwork; the supplying of materials and labor necessary for roofing and sheet metal work, painting, plastering, etc. The general contractor (the contractor who has the main contract with the owner) sublets work of this kind to firms having such organizations. Such subcontractors fre- · quently furnish both the material required and the labor needed for its installation or erection at the site. Subcontractors' Proposals When the plans and specifications call for a class of work usually given to specially skilled organizations, the general contractor sends an invitation to bid to several subcontractors 51 performing that trade. These subcontractors study the plans and specifications detailing the work in the particular trade, ascertain the quantities of material required, and prepare and submit bids for the trades in the same manner as the general contractor does for the entire job. The contractor tabulates the proposals when received from the subcontractors for comparison of the bids for each trade. Architect's Approval The contract between the general contractor and the owner sometimes provides that no work is to be sublet without the approval of the architect or owner. In such instances the general contractor notifies the architect of his selection of a subcontractor before actually entering into a contract with the latter, and requests the architect to approve the letting of the work to that particular subcontractor. Under a lump-sum contract between the owner and the contractor, the architect is interested in the quality of work done by the subcontractor and not in the amount paid him, unless the specifications provide an "allowance" for a particular trade. An "allowance" is a sum stated in the specifications as the amount a contractor is to include in his bid as the value of certain particular work, the details of which have not been definitely decided upon by the owner. When a decision is finally reached, an adjustment is made in the contractor's contract price, based on the relation of the value of work finally . furnished to the amount stipulated in specifications as an "allowance." If the subletting of a contract is in connection with work done under a cost-plus contract with the owner, all the bids. received from subcontractors are tabulated and submitted to the architect. The tabulation shows the name of each bidder, the amount of his bid, and the time he will require to execute the work. The general contractor should make his récommen dations as to which of the bidders he considers should be awarded the contract. After the architect's approval has been obtained, the subcontractor is notified and the contract between him and the contractor prepared. Forms and Provisions of Subcontracts A form of lump-sum subcontract and one of a cost-plus subcontract in use by two large general contractors are given in the Appendix (Forms C and D). The following provisions, not listed in the order of their importance, represent features to be considered in drawing subcontracts: I. Parties to the contract. 2. Clear description of work to be performed by subcontractor, with definite reference to particular plans, drawings, and pages of specifications which describe work in detail. 3. The sum to be paid to subcontractor, the method for determining and the time for making payments. 4. Percentage of work performed to be retained by contractor until subcontractor has completed entire work. 5. Provision outlining basis for pricing additional work ordered or work omitted. 6. Date when work is to begin and when it is to be completed. 7. Sum to be paid by subcontractor as liquidated damages for each day's delay in completing work. 8. Responsibility for losses caused to owner by delay. 9. Conditions under which extension of time for completion will be granted. 10. Work to be done to satisfaction of architect, owner, and contractor; architect's decision to be final on interpretation of drawings and specifications. II. Contractor's right to inspect mills, shops, etc., where the material is, or where work is being done. 12. Field conditions: class of men to be employed (to avoid strikes in the field); compliance with municipal and other ordinances and regulations; furnishing of equipment required to install work; clearing away rubbish; relation to other trades with which subcontractor's work comes in contact; removal of faulty or defective work. 13. Contractor's right to terminate subcontractor's employment and conditions under which work is to be taken over. 14. Retention of any balances due subcontractor when claims are filed against him. 15. Waiver of lien clauses. 16. Indemnification against losses arising out of subcontractor's work (personal damages, property damages, patent infringements, etc.). 17. Period for which work is guaranteed against defective material and unskilful workmanship. 18. Procedure if work is abandoned by owner. 19. Arbitration clause. 20. Contract binding on heirs, successors, etc. Copies of Subcontracts A sufficient number of copies of these subcontracts are prepared to make sure that the job superintendent and the heads of all departments interested in the subcontract are informed of its having been let. At least the following number of copies should be written -one each for the subcontractor, for the job, for the purchasing and contracting department, for the inspection and expediting department, and for the accounting department. The copies for the job and the inspection and expediting department contain all details except those referring to prices. These two departments are interested only in knowing who is to furnish the material or work, the kind contracted for, and the date the material is to arrive or the work done at the site of the work. The copies for other departments are complete in all details. Signed Plans and Specifications tract. The subcontractor should sign the plans and specifications for the purpose of identifying the work included in his conOne set of the signed plans and specifications is retained by him and the other by the general contractor. The copy signed by the subcontractor should be filed in the accounting department with the signed contract. Changes in Plans and Specifications The contracts with the subcontractors provide the method of determining the amounts to be added to the subcontractor's price for any additional work ordered, or the amount to be deducted from it resulting from directions to omit portions of the work. A notice of the contemplated change is sent to the subcontractor. Whenever the architect requests that a change be made in the original plans or specifications, or both, that affects work being done by him, such as elevators, marble work, etc., the subcontractor is requested to furnish an estimate of the amount to be added to his contract price if the additional work is ordered to proceed, and to state if its execution will require an extension of time beyond the date fixed in his contract for the completion of his entire contract. If the architect orders the additional work, the subcontractor is likewise instructed and an order, called a “change order," is issued to him. This change order gives the amount to be added to his contract price, a description of the work covered by the order, and a statement that it is to be executed under the same terms and conditions as the work included in the original contract. If the change in plans results in the omission of work and thereby reduces the sum to be paid to the subcontractor, an order, called a "deduction order," is sent to him. This deduction order gives the same information as appears on a change |