Client \# \_\_\_\_\_\_\_\_\_\_\_\_\_\_

# sample homeowner/contractor provisions

1\. HOLD HARMLESS. Contractor shall agree to defend, indemnify, and hold
harmless the Owner and \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(lender), and the (City/State/County) from liability and claim for
damages because of bodily injury, death, property damage, sickness,
disease or less and expense arising from Contractor's Performance under
this agreement to install or construct housing rehabilitation to be paid
for out of the proceeds of the Owner's rehabilitation loan. Contractor
is acting in the capacity of an independent Contractor with respect to
the Owner.

2\. LIEN WAIVERS. Contractor agrees to protect, defend, and indemnify
Owner from any claims for unpaid work. Labor, or materials with respect
to Contractor's Performance. Final payment shall not be due until the
Contractor has delivered to the Owner complete release of all liens for
work completed arising out of Contractor's Performance or a receipt in
full covering all labor and materials for which a lien could be filed or
a bond satisfactory to the Owner indemnifying him against any lien.

3\. CONTRACT AMOUNT AND PAYMENT SCHEDULE. Payments will be scheduled as
follows, subject to the Owner's acceptance of work done:

Percent of Work Done (Amount) Project Completion Date Payment

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_

Total \_\_\_\_\_\_\_

4\. TIME FOR PERFORMANCE. Owner shall provide written authorization to
Contractor to commence work. Contractor agrees to start work within
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ calendar days after receipt of a
written Notice to Proceed. If Contractor fails to commence work within
thirty (30) days of the date of the Owner's notification to commence,
Owner shall have the right to terminate this Agreement. Such notice of
termination shall be in writing.

Contractor agrees to complete work on or before
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (date) (not to exceed
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_ from the
date work commences). If completion is delayed for reasons beyond the
Contractor's control, Contractor shall provide timely notice to the
Owner of the reasons for such delay. If such good cause is claimed by
the Contractor, it shall be Contractor's obligation to substantiate its
claim by adequate documentation.

> In the event Contractor shall fail to complete work within the agreed
> upon period and fails to provide evidence of good cause for such
> delay, Owner shall have the right to declare Contractor in default. In
> such event, Owner shall be responsible for providing written notice to
> Contractor by registered mail of such default. If Contractor fails to
> remedy such default within fifteen (15) calendar days of such notice,
> Owner shall have the right to select a substitute Contractor. If the
> expense of finishing the work exceeds the unpaid balance on this
> Contract, the Contractor shall pay the difference to the Owner.

5\. CHANGE ORDERS. Owner and Contractor expressly agree that no material
changes or alterations in the description of work or price provided
above shall be made unless in writing and mutually agreed to by both
parties and authorized by the (City/State/County).

6\. PERMITS AND CODES. Contractor agrees to secure and pay for all
necessary permits and licenses required for Contractor's Performance and
to adhere to applicable local codes and requirements whether or not
covered by the specifications and drawings for the work, including any
Contractor registration requirements.

7\. WARRANTY. For good and valuable consideration, Contractor hereby
agrees to provide a full one-year warranty to the Owner, which shall
extend to subsequent owners of the property to be improved. The warranty
shall provide that improvements hardware, and fixtures of whatever kind
or nature installed or constructed on said property by the Contractor
are of good quality and free from defects in workmanship or materials or
deficiencies subject to the warranty contained in this paragraph
provided. Contractor and Owner agree, however, that the warranty set
forth in this paragraph shall apply only to such deficiencies and
defects as to which Owner or subsequent owners shall have given written
notice to the Contractor, as its principal place of business, within one
(1) year from the date of Contractor's request for final payment,
stating that all work under contract has been completed.

8\. SCOPE OF WORK. Contractor acknowledges that it has prepared the
Contractor's Proposal and that such proposal is accurate and consistent
as to the name of Contractor, scope of work that the Contractor will
undertake, and price. Contractor acknowledges the performance
requirement established in the write up and warrants that all work
undertaken will conform to said specifications.

9\. REMOVAL OF DEBRIS. Upon completion of work. Contractor agrees to
remove all construction debris and surplus material from the property
and leave the property in a neat and broom clear condition.

10\. SUBCONTRACTORS. Contractor agrees that all the warranties contained
herein shall apply to all work performed under the Contract, including
that performed by any Subcontractors.

11\. RESOLUTION OF DISPUTES. All claims or disputes between the Owners
and Contractor arising out of or related to the work shall be decided by
arbitration in accordance with the construction industry arbitration
rules of the American Arbitration Association then obtaining, unless the
parties mutually agree otherwise. The Owner and Contractor shall submit
all disputes or claims, regardless of the extent of the work's progress,
to the American Arbitration Association/Better Business Bureau unless
the parties mutually agree otherwise. Notice of the demand for
arbitration shall be filed in writing with the other party to this
Agreement, and shall be made within a reasonable time after the dispute
has arisen. The award rendered by the arbitration shall be final, and
judgment may be entered upon it in accordance with applicable law in any
court having jurisdiction thereof. If the arbitrator's award is in a sum
which is less than that which was offered in settlement by the
Contractor, the arbitrator may award costs and attorney's fees in favor
of the Contractor. If the award of the arbitrator is in a sum greater
than that which was offered in settlement by the Owner, the arbitrator
may award costs and attorney's fees in favor of the Owner.

12\. PROHIBITION OF KICKBACKS. The Contractor nor any of its officers,
partners, owners, agents, representatives, employees, or parties in
interest has in any way colluded, conspired, connived or agreed,
directly or indirectly with any other Bidder, firm, or person to submit
a collusive or sham Bid in connection with the Contractor for which the
attached Bid has been submitted or to refrain from bidding in connection
with such Contract, or has in any manner, directly or indirectly, sought
by agreement or collusion or communication or conference with any other
Bidder, firm, or person to fix any overhead, profit, or cost element of
the Bid price or the Bid price of any other Bidder, or to secure through
any collusion, conspiracy, connivance, or unlawful agreement, any
advantage against the (City/State/County) or any person interested in
the proposed Contract; and

The price or prices quoted are fair and proper and are not tainted by
any collusion, conspiracy, connivance or unlawful agreement on the part
of the Bidder or any of its agents, representatives, owners, employees,
or parties in interest, including this affiant.

13. INTEREST OF MEMBERS, OFFICERS, EMPLOYEES OF PUBLIC BODY MEMBERS OF
    LOCAL GOVERNING BODY, OR OTHER PUBLIC OFFICIALS. No member, officer,
    or employee of the Public Body, or its designees or agents, no
    member of the governing body of the locality in which the program is
    situated, and no other public official of such locality or
    localities who exercises any functions or responsibilities with
    respect to the program during his tenure or for one (1) year
    thereafter, shall have any interest, direct or indirect, in any
    contract or subcontract, or the proceeds thereof, for work to be
    performed in connection with the program assisted under the
    Agreement.

14. PROHIBITION OF BONUS OR COMMISSION. The assistance provided under
    this Agreement shall not be used in payment of any bonus or
    commission for the purpose of obtaining county approval of the
    application for such assistance.

15. ACKNOWLEDGMENT. The above warranties are in addition to, and not in
    limitation of, any and all other rights and remedies to which the
    Owner, or subsequent owners, may be entitled, at law or in equity,
    and shall survive the conveyance of title, delivery of possession of
    the property, or other final settlement made by the Owner and shall
    be biding on the undersigned notwithstanding any provision to the
    contrary contained in any instrument heretofore, and thereafter
    executed by the Owner.