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HomeMy WebLinkAboutPR 11686:HOUSING REHAB CONTRACTTO; From; Date: Re: Steve FiZzgibbon$, City IYanager Dale Watson, D/rector of Planning and Grants Planagement l~. . Plonday, February 2S, 2002 P.R. 11686 RECOM I~IEN DATION: [ recommend City Council adopt Proposed Resolution 11686 authorizing the award of bids and contracts for the Housing Programs Rehabilitation activities which include three (3) reconstruction of dilapidated homes awarded to Harold Collins, d.b.a. Collins Quality Construction and three (3) minor rehabilitation of homes awarded to Thomas Sheppard, d.b.a. Kitchens & Baths Unlimited. BACKGROUND: The Department of Housing and Urban Development awards annual Community Development Block Grant and HOME funds to the City for the primary benefit of Iow and moderate-income persons. The City is obligated to provide owner-occupied rehabilitation assistance to qualified homeowners. Harold Collins, d.b.a. Collins Quality Construction, upon a formal advertised bidding process, is the lowest responsible bidder for the reconstruction activities. Thomas Sheppard, d.b.a. Kitchens & Baths Unlimited is the lowest responsible bidder for the minor rehabilitation activities. BUDGETARY/FISCAL EFFECT: The City's 2000 Home Program will provide funding. STAFFING/EMPLOYEE EFFECT: Housing Administration staff will be responsible for administering the contracts. SUMMARY: I recommend City Council adopt Proposed Resolution 11686 authorizing the award of bids and contracts for the Housing Programs Rehabilitation activities. RESOLUTION NUMBER P.R. 11686 02/25/02 -- Housing/DW A RESOLUTION'APPROVING THE AWARD OF CONTRACTS WITH HAROLD COLLINS, D.B.A. COLLINS QUALITY CONSTRUCTION AND THOMAS SHEPPARD, D.B.A. KITCHENS & BATHS UNLIMITED FOR HOUSING REHABILITATION ACTIVITIES. WHEREAS, the Department of Housing and Urban Development awards annual Community Development Block Grant and HOME funds to the Oty for the primary benefit of Iow and moderate income persons. The City is obligated to provide owner-occupied rehabilitation assistance to qualified homeowners. WHEREAS, six residences were identified as needing repairs; now, therefore, BE 11' RESOLVED BY THE CITY COUNCIL OF THE CTrY OF PORT ARTHUR: THAT the Housing Programs Administrator of the City of Port Arthur, is hereby authorized to approve the award of the following three contracts to Harold D. Collins, d.b.a. Collins Quality Construction (a copy of said contracts are attached hereto as Exhibits "A", "B" and "C'~; Housinq RecQnstruction Activities 1031 E. 18m Street $48,248.49 1235 Nederland Avenue 2348 11m Street $49,682 $49,682 and, THAT the Housing Programs Administrator of the City of Port Arthur, is hereby authorized to approve the award of the following three contracts to Thomas Sheppard, d.b.a. Kitchens and Baths Unlimited (a copy of said contracts are attached hereto as Exhibits "D", "E" and "F'~; Housin. Hinor Rehabilitation Activities 649 W. Thomas Boulevard 2401 E. 19m Street 3500 E. 5m Street $7,497.56 $7,317 $6,184 THAT a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED this day of March, A.D., 2002 at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: MAYOR. COUNCILMEMBERS. NOES: MAYOR A~E~: APPROVED FOR AVAILABILI'I~ OF FUNDS: C1TY SECRETARY DIRECTOR OF FINANCE APPROVED FOR FORM: cI'rY AI-rORNEY APPROVED FOR ADMINISTRATION: " C~TY MANAGER DALE WATSON~ DEPARTMENT DIRECTOR DATE: CONTRACT NO: EXHIBIT ~A" CITY OF PORT ARTHUR HOUSING ASSISTANCE DIVISION CONTRACT FOR PROPERTY REHABILITATION AT: 1031 E. 18t" Street Port Arthur, Texas 77640 CONTRACT AMOUNT: $ 48,249.00 PAYMENT SCHEDULE: B THIS CONTRACT made and entered into on this day of 2002, by and between Harold D. Collins, d.b.a., Collins Quality Construction hereinafter referred to as the "Contractor" and Levi Bryant, hereinafter referred to as the "Owner". WITNESSETH: WHEREAS, the Owner desires to engage the Contractor to perform certain work on the premises commonly known as 1031 E. 18th Street, Port Arthur, Texas ; and, WHEREAS, the Owner desires to rehabilitate, renovate, and improve the aforesaid premises in accordance with all Building and Housing Codes of the City of Port Arthur; and WHEREAS, the undersigned Contractor has proposed to furnish labor, superintendent services, and materials in accordance with a payment schedule mutually agreed to herein; and, WHEREAS, the Owner desires to utilize the services provided by the City's Housing Assistance Division in connection with said project; and, WHEREAS, anywhere it appears in this Contract, the term "PAHAP" shall mean City of Port Arthur Housing Assistance Program. NOW, THEREFORE, the parties do mutually agree as follows: SECTION 1. Employment of Contractor: The Owner hereby engages the Contractor to perto¢-¢* ~ sen/ices and supply the materials hereinafter set forth. Page 2 - Housing Assistance Contract SECTION 2. Scope of Services: The Contractor shall furnish all of the labor, superintendent services and furnish all material necessary to make the improvements described in Plans and Specifications, attached hereto as Exhibit "A" and made a'part hereof for all purposes. SECTION 3. Time for Performance: The Contractor shall, within (10) working days from the date of the order to proceed, begin actual performance hereunder and all work to be performed by the Contractor shall be completed in accordance with Conditions, Plans, and Specifications within 50 working days thereafter. The Contractor further agrees to pay, as liquidated damages, the sum of $50.00 for each consecutive calendar day thereafter in excess of time provided. Notwithstanding the aforesaid, the Contractor is excused from the performance time requirement if, during the progress of the work, delay is authorized in writing by the PAHAP. To obtain a delay, Contractor must request any such delay in writing from the PAHAP, such requests shall contain the cause necessitating the delay. Delays may be authorized for any causes completely beyond the Contractor's control, and the time of completion shall be extended for such reasonable time as the PAHAP may decide. The PAHAP shall make final decisions on the granting extensions of time. SECTION 4. Subcontracting: The Contractor is as fully responsible to the Owner for the acts and omissions of his subcontractors and of persons either directly or indirectly employed by them, as he is for the acts and omissions of himself or persons directly employed by him. Nothing contained in the Contract document shall create any contractual relation between the subcontractor and the Owne Contractor shalI not subcontract any part of the work under this Contract or permit his subcontrs work to be further subcontracted without the prior written approval of the PAHAP. SECTION 5. Changes: It is agreed by the parties hereto that all changes shall be in writin:~ Page 3 - Housing Assistance Contract and signed by the parties to the Contract and the PAHAP. All chang, es ADDENDUM/AMENDMENT) must be submitted to the PAHAP during the first (1st) phase of the Contract, and the PAHAP must approve all changes prior to start of the w(~rk. Any exception to this shall be in writing from the PAHAP. No oral contract shall be enforceable. SECTION 6. Waiver and Liens: The Contractor shall submit to the Owner an Affidavit of all bills paid prior to final payment of the consideration set forth hereafter. SECTION 7. Compensation: The Owner agrees to compensate the Contractor $48,249.00 for the services, labor, superintendence and the materials provided herein. SECTION 8. Method of Payment: The Owner agrees to authorize payment to the Contractor in accordance with one of the following schedules, choice of schedule shall be at the sole discretion of PAHAP. The payment schedule for this job is Schedule B Schedule A Lump Sum (90%): Completion of entire work provided for under this Contract, ninety percent (90%) of the total price shall be remitted in one lump sum amount within (10) days after the PAHAP receives the Contractor's invoice and satisfactory affidavit of all bills paid. (See NOTE for payment of retainage); or Schedule'B Progress Payments: Based on compensation for the following phases of satisfactory completion, partial payments shall be made as follows: Forty-Five Percent (45%)of total contract amount if at least one half (112) of the work provided for unc',e' this Contract has been completed satisfactorily; and Forty-Five Percent (45%) of total contract amount if the second one half (~¢2 or one hundred pe*:~-: (100%) of the work provided for under this Contract has been completed satisfactorily. Final paym due to the Contractor wilt be paid within (10) days after receipt of the Contractors invoice and the release of liens by subcontractors, laborers and materials' suppliers for completed Page 4 - Housing Assistance Contact work; or, Schedule C Progress Payments: Application For Payment may be submitted'to the PAHAP by the Contractor, along with Certificates For Payment on account as provided in the Contract Documents for the period ending the last day of the month. Said Application For Payment must be submitted within 15 days following the end ofth~ period covered by the Applicati.on For Payment. Ninety Percent (90%) payment may be made for that portion requested in the Application For Pa~,ment, provided the amount requested is properly allocable to the work completed during the period covered. Application For Payment shall state the original contract amount, plus any authorized change order amounts, less the aggregate of previous payments. The amount requested will be paid up to ninety percent (90%), unless PAHAP has determined that additional corrections, defects in work, or unsettled claims warrant retaining an amount in excess of ten percent (lO%). NOTE: Contract Retainage Payment: Ten percent (10%) of each draw in Schedule B will be retained. The total of which will be equal to, but not exceed ten percent (10%) ofthetotal contract amount. A ten percent (10%) retainage shall be applied for Schedule A and each draw under Schedule C with the total not to exceed ten percent (10%) of the contract amount including approved change orders. Retainage will be held in escrow by the PAHAP for a period not to exceed thirty (30) days a,fter all work under this contract is completed unless all workmanship and materials are not satisfactorily completed and approved by the PAHAP. Upon receipt of Application For Payment from Contractor, PAHAP shall determine whether or not the contractor has satisfactorily completed the work. If either materials or workmanship are not satisfactory, the PAHAP shall advise Contractor immediately of defects. If the PAHAP and Owner deem it impractical to correct defect or work not done in accordance with this Contract and its attachments, an equitable deduction from the Contract amount, based solely upon the judgement of the PAHAP shall be made. SECTION 9. If the PAHAP shall determine, upon receipt of the Contractor's Application for Payment, that the work has been completed in accordance with the plans and specifications, it shs Within seven (7) days after receipt of said application, submit one Application For Payment to the Page 5 - Housing Assistance Contract Owner or if not completed as stated in the Application For Payment~ notify the Contractor in writing its reasons for withholding said request. SECTION '10. The submission of an Application for Payment will represent to the Owner, based on PAHAP's observations at the site as provided in Section 20 herein and the data comprising the Application For Payment, that the work has progressed to the point indicated; that, to the' best of PAHAP's knowledge, information and belief, the quality of work is in accordance with the Contract Documents, and that the Contracto~ is entitled to payment in the amount certified. SECTION 1'1. The PAHAP may decline to certify payment and may withhold its Certificate in whole or in part, only to the extent necessary to protect the Owner, if in its opinion the Contractor has not satisfied the contract as provided in Section 12. If the Contractor and PAHAP cannot agree on a revised amount, the PAHAP will authorize payment for the amount which is undisputed by PAHAP, the Owner and Contractor. The PAHAP may also decline to certify payment, or because of subsequently discovered evidence or subsequent observations, it may nullify the whole or any part of Application For Payment previously issued, to such extent as may be necessary in its judgement to protect the Owner from loss because of: 1. · Defective work not remedied; 2. Third party claims filed (or reasonable evidence indicating probable filing of such claims); 3. Failure of the Contractor to make payments properly to subcontractors or for labor, materials or equipment, but only if no bond has been furnished: 4, Reasonable evidence that the work cannot be completed by the Contractor for the u~- balance of the contract sum; 5. Damage to the Owner or another Contractor; 6. Reasonable evidence that the work will not be completed within the adjus Page 6 - Housing Assistance Contract contract time; or, ~ 7. Persistant or unreasonable failure to carry out the work in accordance with the contract documents. When the above grounds are removed, payment shall be made for amounts withheld because of them. SECTION 12. After the PAHAP has issued the Authorization For Payment, the Owner shall authorize payment in the manner and Within the time provided in the Contract Documents. SECTION 13. If the Owner should fail to authorize payment to the Contractor within the time provided in the contract without a showing of valid cause to be determined by the PAHAP, the PAHAP shall be authorized to make payment to the Contractor for the work for which the Authorization For Payment was issued. SECTION 14. No Certificate For Progress Payment nor any progress payment, nor any partial or entire use or occupancy of the project by the Owner, shall constitute an acceptance of any work not in accordance with the Contract Documents. SECTION 15. Disputes: The PAHAP shall, within a reasonable time, make decisions on all claims of the Owner or Contractor and/or all other matters relating to the execution and progress of the work or the interpretation of the Contract Documents. The PAHAP's decisions shall be final. SECTION 16. Workmanship: The work provided hereunder by the Contractor shall be executed as directed by the official construction manual and plans and specifications. Work shali be pedormed in a workmanlike manner in accordance with the standards of each trade applicable ~n:~ ~ - 7': comply with appropriate codes and its requirements. The Contractor hereby agrees that he is faro ¢~ with the construction and of the grade required by the specifications, unless otherwise agreed between the PAHAP and Contractor. Materials damaged in shipment shall be replaced at the Contra:::- ~- expense. Salvage lumber or material from the Owner's premises Page 7 - Housing Assistance Contract may only be reused provided it is structurally sound and is approv(Id for reuse by the PAHAP. Any salvaged materials not used in the construction shall be the property of the Contractor, unless otherwise stipulated. Contractor and/or Owner shall not use, or allow to be used, any paint containing more than % of 1 per centum lead weight (calculated at lead metal) in the total nonvolatile content of liquid paints. Lead paint removal is a dangerous task and safety precautions should be strictly enforced when workers are engaged in lead hazard abatementl The use of lead-based paint materials on any surface, interior or exterior, is strictly prohibited. Any alterations or deviations from said specifications shall be executed only upon written consent of Owner, Contractor, and PAHAP. No extra costs will be paid if Contractor has neglected to properly evaluate the extent of the rehabilitation work. Contractor, in all cases, shall leave the work in a finished condition as determined by acceptable building standards and the PAHAP. Repairs shall be made to all property, real or personal, damaged by the Contractor at no additional cost to the Owner. Where repair and/or replacement of an existing item is called for in the job specification s, the item or feature is to be placed in equal to new condition either by repairing or replacing (taking into consideration that in repairing, existing structures cannot be restored as new and that some lines and surfaces may not be completely level and true or without slight irregularities). All damaged, decayed, missing or rotted parts shall be replaced and loose parts shall be secured or replaced so that the finis"e¢ work shall match the adjacent work in design and dimension. Such repairs o; replacement shall be ~-: ::-- to blend with existing work so that the patch or replacement is inconspicuous. SECTION 17. Defects After Completion: The Contractor shall guarantee the work performed :-- ~ period of twelve (12) months from the date of final acceptance of all work required by the Page 8 - Housing Assistance Contract Contract except that the Contractor shall provide a two (2) year guaraqtee for roof work unless other,vise provided. Furthermore, the Contractor shall furnish the Owner, in care of the PAHAP, with all manufacturers' and suppliers' guarantees and warranties covering materials and equipment furnished under the Contract. Any defects that appear within this warranty period and arise from defective or improper materials or workmanship shall, upon notification of the PAHAP, be corrected or made good by the Contractor at his expense within (10) working days after receipt of notice. SECTION '18. Inspection of Wo~'k: PAHAP shall at all times have access to the work. If the specifications, plans, instructions, laws, ordinances, building code standards, or any public authority require any work to be specifically inspected, tested, or approved, the Contractor shall give the PAHAP timely notice of its readiness for inspection. If the inspection is by another authority other than the PAHAP, Contractor shall inform PAHAP of the time fixed for such inspection. Inspection of the work by authorized inspectors shall be facilitated by the Contractor during normal working hours. All work performed shall be subject to approval and acceptance by the PAHAP. Inspections by the PAHAP shall be made promptly and if any work should be covered up without approval or consent of the PAHAP, the Contractor may be required to uncover the work for examination and bear the cost thereof. If such work should be found not in accordance with this Contract, including incorporated Plans and Specificatie:~s, the Contractor shall pay such costs to remedy said nonconformance, provided, however, if the Contractor shafl pay the cost of remedying such work if owner desires to remedy same. At all times theContr~ shall permit the United State Government or its agents or assignees to examine and inspe~: rehabilitation work. SECTION 19. Permits and Licenses: All permits and licenses necessary for the completion execution of the work shall be secured and paid for by the Contractor. If the Contractor Page 9 - Housing Assistance Contract observes that the drawings, plans and/or specifications are at a variance with applicable laws, rules, ordinances, and/or regulations bearing on the conduct of the work, he shall promptly notify the PAHAP in writing. Any necessary changes shall be adjusted as provided for in the contract for changes in the work. If the Contractor knowingly performs work contrary to such laws, ordinances, and without notice from the PAHAP, he shall bear Ell costs arising therefrom. All work shall be performed in conformance with applicable local codes and requirements whether or not covered by the specifications and drawings for the work. SECTION 20. Insurance: Contractor shall procure and maintain statutory Worker's Compensation Insurance, Contractor's Injury Insurance in an amount not less than $100,000 for injuries, including accidental death, to any one person, and not less than $500,000 on account for one occurrence; Property Damage Insurance in an amount not less than $50,000 for each occurrence and $100,000 aggregate. Such insurance shall name the City of Port Arthur and Owner as additional named insured. Contractor shall not commence work under this Contract until he obtains all insurance required and has submitted satisfactory evidence to the City. SECTION 21: Contractor shall provide a performance bond if the contract is in excess of $100,000 and a payment bond if the contract is in excess of $25,000. SECTION 22. The Owner will permit the Contractor to use, at no cost, existing utilities, such as i: heat, power, and water, necessary to carry out the completion of the work. Owner will cooperate witr Contractor to facilitate the performance of the work, including the removal and replacement of covering, and furniture, if necessary. Contractor shall keep the premises clean and orderly during the course ofthe work and shallremo debris at the completion of said work. Materials and equipment that have been removed and replaced as part of the work shall belong to Contractor and shall be removed from the premises by Contractor. SECTION 23. Engineering or Construction Surveys: required under this Contract unless otherwise specified. Page 10 - Housing Assistance Contract The Contractor shall furnish all surveys as SECTION 24. Approved by PAHAP: This Contract must be approved bythe PAHAP before it becomes effective. SECTION 25. Indemnification: Tl~e parties hereto agree to indemnify and hold harmless the City of Port Arthur, its officers, agents and employees for any damages concerning the undertaking and execution of this Contract. The CONTRACTOR shall compIy with the requirements of all applicable laws, rules and regulations in connection with the services of said CONTRACTOR and shall exonerate, indemnify and hold harmless the City, its officers, agents and all employees from any and all liability, loss or damages arising out of non-compliance with such laws, rules and regulations; without limitation, the CONTRACTOR shall assume full contributions imposed or required under the Social Security, Worker's Compensation and Income Tax Laws with respect to the CONTRACTOR'S employees. The parties hereto agree to indemnify and hold harmless the City of Port Arthur from any and all liability, loss, damages, expenses or claims arising out of negligence of the CONTRACTOR or employees in connection with any ofthework performed or to be performed under this CONTRACT by the CONTRACTOR. SECTION 26. Default by Contractor: In case of default by the Contractor. the Owner may procu ~ :- e articles or services from other sources and hold the Contractor responsible for any excess ccs:s occasioned thereby. SECTION 27. Termination: In case the Contractor fails to furnish materials or execute v,,3- '-; accordance with the provisions of this Contract, or fails to proceed with or complete the work within tr-,e time limit specified in this Contract, or if the provisions of this Contract are otherwise violated by the Contractor, then in any case upon ten (10) days written notice to the Contractor, Page 11 - Housing Assistance Contract the Owner, in conjunction with the PAHAP, ~hall have the right to declare the Contractor in default in the performance of his obligations under this Contract. Said notice shall contain the reason(s) for the Owner's intent to declare the Contractor at fault, and unless within ten (10) days after servic~ of said notice, the violation shall cease or satisfactory arrangements shall be made for its correction, the Contractor, by written notice, may De declared in default and his right to proceed under this Contract terminated. In the event the Contractor is thus declared to be in default, the Owner, in conjunction with the PAHAP, will proceed to have the work completed. If the cost of completing the work exceeds the original contract amount, the difference will be the responsibility of the original Contractor and may be collected from retainage or unexecuted payments, or other remedies deemed necessary. The Contractor shall be responsible for any damages resulting to Owner by reason of default. SECTION 28. Notice: Notices to be given by the Owner and/or the PAHAP to the Contractor for the purpose of this Contract when mailed by regular mail or certified mail, or sent by messenger to the Contractor at: Harold D. Collins, d.b.a., Collins Quality Construction 2835 Gulfway Drive Port Arthur, Texas 77640 Same (Contractor's Address) (Contractor's Address) iContractor's Permanent Address) (Contractor's Name) SECTION 29. Assignment: The Contractor shall not assign the Contract without prior written conse.-: o: the Owner and PAHAP. The request for approval of assignment must be addressed in care c~ :-e PAHAP. SECTION 30. Effective Date of Contract: This Contract shall not become binding upon the parties concerned until properly signed by all parties and formal approval of the loan application has been given by the respective Federal Government Agency designated to make such approval. Page 12 - Housing Assistance Contract SECTION 31: Appendix I-Equal Opportunity Clause, Section 202, Executive Order 11246 (30 FR 12319-25). During the performance of this Contract the Contractor agrees as follows: 1. The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The Contractor will take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places available to employees and applicants for employment, notices to provide the provisions of this nondiscrimination clause. 2. The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, relation, sex or national origin. 3. The Contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the Contract Compliance Officer advisin9 the said labor union or worker's representatives of the Contractor's commitment under this sect ~. and shall post cow. the notice in a conspicuous place available to employees and applicants for employrr e":. Page 13 - Housing Assistance Contract 4. The Contractor will comply with all provisions of Execytive Order 11246 September 24, 1965, and of the rules, regulations and relevant orders of the Secretary of Labor. 5. The Contractor will furnish ali information and reports required by Executive Order 11246 and by rules, regulations and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts bythe Department and the Secretary of Labor for purposes of investigation to ascertain compliance with such ules, regulations and others. 6. In the event of the Contractor's noncompliance with the nondiscrimination clauses of thisContract or with any of the said rules, regulations or orders, this Contract may be cancelled, terminated or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 or by rules, regulations or order of the Secretary of Labor or as otherwise provided by law. The Contractor will include the provisions of the sentence immediately preceding Paragraph 1 and the provisions of Paragraphs 1 through 7 in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 so that such provisions will be binding upon each subcontractor or vend or. The Contractor will take such action with respect to any subcontract or purchase order as Department may direct as a means of enforcing such provisions including sanction; noncompliance. Provided, however, that in the event a Contractor becomes involved in -- threatened with litigation with a subcontractor or vendor as a resuit of such direction b', Department. the Contractor may request the United States to enter i",t3 such litigation to p the interest of the United States. Page 14 - Housing Assistance Contract SECTION 32. Arbitration Procedures: In the event of a dispute thaI cannot be settled by PAHAP, both the contractor and the owner agree to submit the dispute or claim to the Mediation Service of Jefferson County, Inc. If a settlement is not reached,'the dispute or claim must enter into binding arbitration under the act known as the Uniform Arbitration Act pursuant to the commercial arbitration rules of the American Arbitration Association. SECTION 33. One-Time Assistance: The owner hereby acknowledges that PAHAP rehabilitation program is for one-time assistan(~e and that the owner is responsible for all future repairs and maintenance on the home. IMPORTANT NOTICE: You and your contractor are responsible for meeting the terms and conditions of this contract. If you sign this contract and you fail to meet the terms and conditions of this contract, you may lose your legal rights in your home. KNOW YOUR RIGHTS AND DUTIES UNDER THE LAW. Signed the__ day of ,2002. STATE O,F TEXAS COUNTY OF JEFFERSON Owner: Otherine Johnson ACKNOWLEDGEMENT Before me, the undersigned authority, on this day personally appes:ed known to me to be the persons whose name(s) subscribed to the foregoing instrument, and acknowledge to me that they executed the same lc' purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ds. ~ 2002. Notary Seal Notary Public, State of Page 15 - Housing Assistance Contract Signed this day of ,2002. STATE OF TEXAS COUNTY OF JEFFERSON Contractor: Harold D. Collins ACKNOWLEDGMENT Before me, the undersigned authority, on this day personally appeared (Contractor) owner(s) known to me to be the persons whose name(s) are subscribed to the foregoing instrument, and acknowledge to me that they executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of 2002, Notary Seal Notary Public - State of Texas Approved: City of Port Arthur By Housing Programs Administrator EXHIBIT ~B" CITY OF PORT ARTHUR HOUSING ASSISTANCE DIVISION CONTRACT FOR PROPERTY REHABILITATION AT: 1235 Nederland Avenue Port Arthur, Texas 77640 CONTRACT AMOUNT: $ 49,682.00 PAYMENT SCHEDULE: B DATE: CONTRACT NO: THIS CONTRACT made and entered into on this day of _, 2002, by and between Harold D. Collins, d.b.a., Collins Quality Construction hereinafter referred to as the "Contractor" and Otherine Johnson, hereinafter referred to as the "Owner". WITNESSETH: WHEREAS, the Owner desires to engage the Contractor to perform certain work on the premises commonly known as 1235 Nederland Avenue, Port Arthur, Texas ; and, WHEREAS, the Owner desires to rehabilitate, renovate, and improve the aforesaid premises in accordance with all Building and Housing Codes of the City of Port Arthur; and WHEREAS, the undersigned Contractor has proposed to furnish labor, superintendent services, and materials in accordance with a payment schedule mutually agreed to herein; and, WHEREAS, the Owner desires to utilize the services provided by the City's Housing Assistance Division in connection with said project; and, WHEREAS, anywhere it appears in this Contract, the term "PAHAP" shall mean City of Port Arthur Housing Assistance Program. NOW, THEREFORE, the parties do mutually agree as follows: SECTION 1. Employment of Contractor: The Owner hereby engages the Contractor to perform the services and supply the materials hereinafter set forth. Page 2 - Housing Assistance Contract SECTION 2. Scope of Services: The Contractor shall furnish all of the labor, superintendent services and furnish all material necessary to make the improvements described in Plans and Specifications, attached hereto as Exhibit "A" and made a'part hereof for all purposes. SECTION 3. Time for Performance: The Contractor shall, within (10) working days from the date of the order to proceed, begin actual performance hereunder and all work to be performed by the Contractor shall be completed in accordance with Conditions, Plans, and Specifications within 5__~0 working days thereafter. The Contractor further agrees to pay, as liquidated damages, the sum of $50.00 for each consecutive calendar day thereafter in excess of time provided. Notwithstanding the aforesaid, the Contractor is excused from the performance time requirement if, during the progress of the work, delay is authorized in writing by the PAHAP. To obtain a delay, Contractor must request any such delay in writing from the PAHAP, such requests shall contain the cause necessitating the delay. Delays may be authorized for any causes completely beyond the Contractor's control, and the time of completion shall be extended for such reasonable time as the PAHAP may decide. The PAHAP shall make final decisions on the granting extensions of time. SECTION 4. Subcontracting: The Contractor is as fully responsible to the Owner for the acts and omissions of his subcontractors and of persons either directly or indirectly employed by them, as he is for the acts and omissions of himself or persons directly employed by him. Nothing contained in the Contract document shall create any contractual relation between the subcontractor and the Owner. The Contractor shall not subcontract any part of the work under this Contract or permit his subcontracted work to be further subcontracted without the prior written approval of the PAHAP. SECTION 5. Changes: It is agreed by the parties hereto that all changes shall be in writing Page 3 - Housing Assistance Contract and signed by the parties to the Contract and the PAHAP. All changes ADDENDUM/AMENDMENT) must be submitted to the PAHAP during the first (l't) phase of the Contract, and the PAHAP must approve all changes prior to start of the work. Any exception to this shall be in writing from the PAHAP. No oral contract shall be enforceable. SECTION 6. Waiver and Liens: The Contractor shall submit to the Owner an Affidavit of all bills paid prior to final payment of the consideration set forth hereafter. SECTION 7. Compensation: The. Owner agrees to compensate the Contractor $49,682.00 for the services, labor, superintendence and the materials provided herein. SECTION 8. Method of Payment: The Owner agrees to authorize payment to the Contractor in accordance with one of the following schedules, choice of schedule shall be at the sole discretion of PAHAP. The payment schedule for this job is Schedule B Schedule A Lump Sum (90%): Completion of entire work provided for under this Contract, ninety percent (90%) of the total price shall be remitted in one lump sum amount within (10) days after the PAHAP receives the Contractor's invoice and satisfactory affidavit of all bills paid. (See NOTE for payment of retainage); or ScheduleB Progress Payments: Based on compensation for the following phases of satisfactory completion, partial payments shall be made as follows: Forty-Five Percent (45%)of total contract amount if at least one half (1/2) of the work provided for under this Contract has been completed satisfactorily; and Forty-Five Percent (45%) of total contract amount if the second one half (1/2) or one hundred percent (100%) of the work provided for under this Contract has been completed satisfactorily. Final payment due to the Contractor will be paid within (10) days after receipt of the Contractor's invoice and the release of liens by subcontractors, laborers and materials' suppliers for completed work; or, Schedule C Progress Payments: Page 4 - Housing Assistance Contact Application For Payment may be submitted to the PAHAP by the Contractor, along with Certificates For Payment on account as provided in the Contract Documents for the period ending the last day of the month. Said Application For Payment must be submitted within 15 days following the end of the period covered by the Application For Payment. Ninety Percent (90%) payment may be made for that portion requested in the Application For Payment, provided the amount requested is properly allocable to the work completed during the period covered. Application For Payment shall state the original contract amount, plus any authorized change order amounts, less the aggregate of previous payments. The amount requested will be paid up to ninety percent (90%), unless PAHAP has determined that additional corrections, defects in work, or unsettled claims warrant retaining an amount in excess of ten percent (10%). NOTE: Contract Retainage Payment: Ten percent (10%) of each draw in Schedule B will be retained. The total of which will be equal to, but not exceed ten percent (10%) of the total contract amount. A ten percent (10%) retainage shall be applied for Schedule A and each draw under Schedule C with the total not to exceed ten percent (10%) of the contract amount including approved change orders. Retainage will be held in escrow by the PAHAP for a period not to exceed thirty (30) days after all work under this contract is completed unless all workmanship and materials are not satisfactorily completed and approved by the PAHAP. Upon receipt of Application For Payment from Contractor, PAHAP shall determine whether or not the contractor has satisfactorily completed the work. If either materials or workmanship are not satisfactory, the PAHAP shall advise Contractor immediately of defects. If the PAHAP and Owner deem it impractical to correct defect or work not done in accordance with this Contract and its attachments, an equitable deduction from the Contract amount, based solely upon the judgement of the PAHAP shall be made. SECTION 9. If the PAHAP shall determine, upon receipt of the Contractor's Application for Payment, that the work has been completed in accordance with the plans and specifications, it shall, Within seven (7) days after receipt of said application, submit one Application For Payment to the Page 5 - Housing Assistance Contract Owner or if not completed as stated in the Application For Payment, notify the Contractor in writing its reasons for withholding said request. SECTION 10. The submission of an Application for Payment will represent to the Owner, based on PAHAP's observations at the site as provided in Section 20 herein and the data comprising the Application For Payment, that the work has progressed to the point indicated; that, to the' best of PAHAP's knowledge, information and belief, the quality of work is in accordance with the Contract Documents, and that the Contracto~ is entitled to payment in the amount certified. SECTION 11. The PAHAP may decline to certify payment and may withhold its Certificate in whole or in part, only to the extent necessary to protect the Owner, if in its opinion the Contractor has not satisfied the contract as provided in Section 12. If the Contractor and PAHAP cannot agree on a revised amount, the PAHAP will authorize payment for the amount which is undisputed by PAHAP, the Owner and Contractor. The PAHAP may also decline to certify payment, or because of subsequently discovered evidence or subsequent observations, it may nullify the whole or any part of Application For Payment previously issued, to such extent as may be necessary in its judgement to protect the Owner from loss because of: 1.. Defective work not remedied; 2. Third party claims filed (or reasonable evidence indicating probable filing of such claims); 3. Failure of the Contractor to make payments properly to subcontractors or for labor, materials or equipment, but only if no bond has been furnished; 4. Reasonable evidence that the work cannot be completed by the Contractor for the unpaid balance of the contract sum; 5. Damage to the Owner or another Contractor; 6. Reasonable evidence that the work will not be completed within the adjusted contract time; or, 7. Page 6 - Housing Assistance Contract Persistant or unreasonable failure to carry out the work in accordance with the contract documents. When the above grounds are removed, payment shall be made for amounts withheld because of them. SECTION '12. After the PAHAP has issued the Authorization For Payment, the Owner shall authorize payment in the manner and within the time provided in the Contract Documents. SECTION '13. If the Owner should fail to authorize payment to the Contractor within the time provided in the contract without a showing of valid cause to be determined by the PAHAP, the PAHAP shall be authorized to make payment to the Contractor for the work for which the Authorization For Payment was issued. SECTION '14. No Certificate For Progress Payment nor any progress payment, nor any partial or entire use or occupancy of the project by the Owner, shall constitute an acceptance of any work not in accordance with the Contract Documents. SECTION '15. Disputes: The PAHAP shall, within a reasonable time, make decisions on all claims of the Owner or Contractor and/or all other matters relating to the execution and progress of the work or the interpretation of the Contract Documents. The PAHAP's decisions shall be final. SECTION '16. Workmanship: The work provided hereunder by the Contractor shall be executed as directed by the official construction manual and plans and specifications. Work shall be performed in a workmanlike manner in accordance with the standards of each trade applicable and shall comply with appropriate codes and its requirements. The Contractor hereby agrees that he is familiar with the construction and of the grade required by the specificatidns, unless otherwise agreed between the PAHAP and Contractor. Materials damaged in shipment shall be replaced at the Contractor's expense. Salvage lumber or material from the Owner's premises Page 7 - Housing Assistance Contract may only be reused provided it is structurally sound and is approved for reuse by the PAHAP. Any ¢ salvaged materials not used in the construction shall be the property of the Contractor, unless otherwise stipulated. Contractor and/or Owner shall not use, or allow to be used, any paint containing more than ~ of 1 per centum lead weight (calculated at lead metal) in the total nonvolatile content of liquid paints. Lead paint removal is a dangerous task and safety precautions should be strictly enforced when workers are engaged in lead hazard abatement.' The use of lead-based paint materials on any surface, interior or exterior, is strictly prohibited. Any alterations or deviations from said specifications shall be executed only upon written consent of Owner, Contractor, and PAHAP. No extra costs will be paid if Contractor has neglected to properly evaluate the extent of the rehabilitation work. Contractor, in all cases, shall leave the work in a finished condition as determined by acceptable building standards and the PAHAP. Repairs shall be made to all property, real or personal, damaged by the Contractor at no additional cost to the Owner. Where repair and/or replacement of an existing item is called for in the job specifications, the item or feature is to be placed in equal to new condition either by repairing or replacing (taking into consideration that in repairing, existing structures cannot be restored as new and that some lines and surfaces may not be completely level and true or without slight irregularities). All damaged, decayed, missing or rotted parts shall be replaced and loose parts shall be secured or replaced so that the finished work shall match the adjacent work in design and dimension. Such repairs or replacement shall be made to blend with existing work so that the patch or replacement is inconspicuous. SECTION 17'. Defects After Completion: The Contractor shall guarantee the work performed for a period of twelve (12) months from the date of final acceptance of all work required by the Page 8 - Housing Assistance Contract Contract except that the Contractor shall provide a two (2) year guarantee for roof work unless otherwise provided. Furthermore, the Contractor shall furnish the Owner, in care of the PAHAP, with all manufacturers' and suppliers' guarantees and warranties covering materials and equipment furnished under the Contract. Any defects that appear within this warranty period and arise from defective or improper materials or workmanship shall, upon notification of the PAHAP, be corrected or made good by the Contractor at his expense within (10) working days after receipt of notice. SECTION '18. Inspection of Wo~'k: PAHAP shall at all times have access to the work. If the specifications, plans, instructions, laws, ordinances, building code standards, or any public authority require any work to be specifically inspected, tested, or approved, the Contractor shall give the PAHAP timely notice of its readiness for inspection. If the inspection is by another authority other than the PAHAP, Contractor shall inform PAHAP of the time fixed for such inspection. Inspection of the work by authorized inspectors shall be facilitated by the Contractor during normal working hours. All work performed shall be subject to approval and acceptance by the PAHAP. Inspections by the PAHAP shall be made promptly and if any work should be covered up without approval or consent of the PAHAP, the Contractor may be required to uncover the work for examination and bear the cost thereof. If such work should be found not in accordance with this Contract, including incorporated Plans and Specifications, the Contractor shall pay such costs to remedy said nonconformance, provided, however, if the Contractor shall pay the cost of remedying such work if owner desires to remedy same. At all times the Contractor shall permit the United State Government or its agents or assignees to examine and inspect the rehabilitation work. SECTION 19. Permits and Licenses: All permits and licenses necessary for the completion and execution of the work shall be secured and paid for by the Contractor. If the Contractor Page 9 - Housing Assistance Contract observes that the drawings, plans and/or specifications are at a varia[~ce with applicable laws, rules, ordinances, and/or regulations bearing on the conduct of the work, he shall promptly notify the PAHAP in writing. Any necessary changes shall be adjusted as provided for in the contract for changes in the work. If the Contractor knowingly performs work contrary to such laws, ordinances, and without notice from the PAHAP, he shall bear all costs arising therefrom. All work shall be performed in conformance with applicable local codes and requirements whether or not covered by the specifications and drawings for the work. SECTION 20. Insurance: Contractor shall procure and maintain statutory Worker's Compensation Insurance, Contractor's Injury Insurance in an amount not less than $100,000 for injuries, including accidental death, to any one person, and not less than $500,000 on account for one occurrence; Property Damage Insurance in an amount not less than $50,000 for each occurrence and $100,000 aggregate. Such insurance shall name the City of Port Arthur and Owner as additional named insured. Contractor shall not commence work under this Contract until he obtains all insurance required and has submitted satisfactory evidence to the City. SECTION 2'1: Contractor shall provide a performance bond if the contract is in excess of $100,000 and a payment bond if the contract is in excess of $25,000. SECTION 22. The Owner will permit the Contractor to use, at no cost, existing utilities, such as light. heat, power, and water, necessary to carry out the completion of the work. Owner will cooperate with the Contractor to facilitate the performance of the work, including the removal and replacement of rugs, covering, and furniture, if necessary. Contractor shall keep the premises clean and orderly during the course of the work and shall remove all debris at the completion of said work. Materials and equipment that have been removed and replaced as part of the work shall belong to Contractor and shall be removed from the premises by Contractor. SECTION 23. Engineering or Construction Surveys: required under this Contract unless otherwise specified. Page 10 - Housing Assistance Contract The Contractor shall furnish all surveys as SECTION 24. Approved by PAHAP: This Contract must be approved by the PAHAP before it becomes effective. SECTION 25. Indemnification: The parties hereto agree to indemnify and hold harmless the City of Port Arthur, its officers, agents and employees for any damages concerning the undertaking and execution of this Contract. The CONTRACTOR shall comply with the requirements of all applicable laws, rules and regulations in connection with the services of said CONTRACTOR and shall exonerate, indemnify and hold harmless the City, its officers, agents and all employees from any and all liability, loss or damages arising out of non-compliance with such laws, rules and regulations; without limitation, the CONTRACTOR shall assume full contributions imposed or required under the Social Security, Worker's Compensation and Income Tax Laws with respect to the CONTRACTOR'S employees. The parties hereto agree to indemnify and hold harmless the City of Port Arthur from any and all liability, loss, damages, expenses or claims arising out of negligence of the CONTRACTOR or employees in connection with any of the work performed or to be performed under this CONTRACT by the CONTRACTOR. SECTION 26. Default by Contractor: In case of default by the Contractor, the Owner may procure the articles or services from other sources and hold the Contractor responsible for any excess costs occasioned thereby. SECTION 27. Termination: In case the Contractor fails to furnish materials or execute work in accordance with the provisions of this Contract, or fails to proceed with or complete the work within the time limit specified in this Contract, or if the provisions of this Contract are otherwise violated by the Contractor, then in any case upon ten (10) days written notice to the Contractor, Page 11 - Housing Assistance Contract the Owner, in conjunction with the PAHAP, shall have the right to declare the Contractor in default in the performance of his obligations under this Contract. Said notice shall contain the reason(s) for the Owner's intent to declare the Contractor at fault, and unless within ten (10) days after service of said notice, the violation shall cease or satisfactory arrangements shall be made for its correction, the Contractor, by written notice, may t~e declared in default and his right to proceed under this Contract terminated. In the event the Contractor is thus declared to be in default, the Owner, in conjunction with the PAHAP, will proceed to have the work completed. If the cost of completing the work exceeds the original contract amount, the difference will be the responsibility of the original Contractor and may be collected from retainage or unexecuted payments, or other remedies deemed necessary. The Contractor shall be responsible for any damages resulting to Owner by reason of default. SECTION 28. Notice: Notices to be given by the Owner and/or the PAHAP to the Contractor for the purpose of this Contract when mailed by regular mail or certified mail, or sent by messenger to the Contractor at: Harold D. Collins, d.b.a., Collins Quality Construction (Contractor's Name) 2835 Gulfway Drive Port Arthur1 Texas 77640 Same (Contractor's Address) (Contractor's Address) .(Contractor's Permanent Address) SECTION 29. Assignment: The Contractor shall not assign the Contract without prior written consent of the Owner and PAHAP. The request for approval of assignment must be addressed in care of the PAHAP. SECTION 30. Effective Date of Contract: This Contract shall not become binding upon the parties concerned until properly signed by all parties and formal approval of the loan application has been given by the respective Federal Government Agency designated to make such approval. Page 12 - Housing Assistance Contract SECTION 31: Appendix I-Equal Opportunity Clause, Section 202, Executive Order 11246 (30 FR 12319-25). During the performance of this Contract the Contractor agrees as follows: 1. The Contractor will not discriminate against any employee or applicant for employment because of race, co[or, religion, sex or national origin. The Contractor will take affirmative action to ensure that applicants are employed and that employees are treated during employment without r~gard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places available to employees and applicants for employment, notices to provide the provisions of this nondiscrimination clause. 2. The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, relation, sex or national origin. 3. The Contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the Contract Compliance Officer advising the said labor union or worker's representatives of the Contractor's commitment under this section, and shall post copies of the notice in a conspicuous place available to employees and applicants for employment. Page 13 - Housing Assistance Contract 4. The Contractor will comply with all provisions of Executive Order 11246 September 24, 1965, and of the rules, regulations and relevant orders of the Secretary of Labor. 5. The Contractor will furnish all information and reports required by Executive Order 11246 and by rules, regulations and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the Department and the Sec'retary of Labor for purposes of investigation to ascertain compliance with such ules, regulations and others. 6. In the event of the Contractor's noncompliance with the nondiscrimination clauses of thisContract or with any of the said rules, regulations or orders, this Contract may be cancelled, terminated or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 or by rules, regulations or order of the Secretary of Labor or as otherwise provided by law. 6. The Contractor will include the provisions of the sentence immediately preceding Paragraph 1 and the provisions of Paragraphs 1 through 7 in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order as the Department may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, however, that in the event a Contractor becomes involved in or is threatened with litigation with a subcontractor or vendor as a result of such direction by the Department, the Contractor may request the United States to enter into such litigation to protect the interest of the United States. Page 14 - Housing Assistance Contract SECTION 32. Arbitration Procedures: In the event of a dispute that cannot be settled by PAHAP, both the contractor and the owner agree to submit the dispute or claim to the Mediation Service of Jefferson County, Inc. If a settlement is not reached, the dispute or claim must enter into binding arbitration under the act known as the Uniform Arbitration Act pursuant to the commercial arbitration rules of the American Arbitration Association. SECTION 33. One-Time Assistance: The owner hereby acknowledges that PAHAP rehabilitation program is for one-time assistanc~e and that the owner is responsible for all future repairs and maintenance on the home. IMPORTANT NOTICE: You and your contractor are responsible for meeting the terms and conditions of this contract. If you sign this contract and you fail to meet the terms and conditions of this contract, you may lose your legal rights in your home. KNOW YOUR RIGHTS AND DUTIES UNDER THE[ LAW. Signed the __ day of ,2002. STATE OF TEXAS COUNTY OF JEFFERSON Owner: Otherine Johnson ACKNOWLEDGEMENT Before me, the undersigned authority, on this day personally appeared known to me to be the persons whose name(s) are subscribed to the foregoing instrument, and acknowledge to me that they executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of 2002. Notary Public, State of Texas Notary Seal Page 15 - Housing Assistance Contract Signed this day of ,2002. STATE OF TEXAS Contractor: Harold D. Collins ACKNOWLEDGMENT COUNTY OF JEFFERSON Before me, the undersigned authority, on this day personally appeared .(Contractor) owner(s) known to me to be the persons whose name(s) are subscribed to the foregoing instrument, and acknowledge to me that they executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of 2002. Notary Seal Notary Public - State of Texas Approved: City of Port Arthur By Housing Programs Administrator EXHIBIT ~C" CITY OF PORT ARTHUR HOUSING ASSISTANCE DIVISION CONTRACT FOR PROPERTY REHABILITATION AT: 2348 11th Street Port Arthur, Texas 77640 CONTRACT AMOUNT: $ 49,682.00 PAYMENT SCHEDULE: B DATE: CONTRACT NO: THIS CONTRACT made and entered into on this day of 2002, by and between Harold D. Collins, d.b.a., Collins Quality Construction hereinafter referred to as the "Contractor" and Etta Lee West, hereinafter referred to as the "Owner". WITNESSETH: WHEREAS, the Owner desires to engage the Contractor to perform certain work on the premises commonly known as 2348 11th Street, Port Arthur, Texas ; and, WHEREAS, the Owner desires to rehabilitate, renovate, and improve the aforesaid premises in accordance with all Building and Housing Codes of the City of Port Arthur; and WHEREAS, the undersigned Contractor has proposed to furnish labor, superintendent services, and materials in accordance with a payment schedule mutually agreed to herein; and, WHEREAS, the Owner desires to utilize the services provided by the City's Housing Assistance Division in connection with said project; and, WHEREAS, anywhere it appears in this Contract. the term "PAHAP" shall mean City of Port Arthur Housing Assistance Program. NOW, THEREFORE, the parties do mutually agree as follows: SECTION 1. Employment of Contractor: The Owner hereby engages the Contractor to perforn- --~ services and supply the materials hereinafter set forth. Page 2 - Housing Assistance Contract SECTION 2. Scope of Services: The Contractor shall furnish all of the labor, superintendent services and furnish all material necessary to make the improvements described in Plans and Specifications, attached hereto as Exhibit "A" and made a'part hereof for all purposes. SECTION 3. Time for Performance: The Contractor shall, within (10) working days from the date of the order to proceed, begin actual performance hereunder and all work to be performed by the C~ntractor shall be completed in accordance with Conditions, Plans, and Specifications within 50 working days thereafter. The Contractor further agrees to pay, as liquidated damages, the sum of $50.00 for each consecutive calendar day thereafter in excess of time provided. Notwithstanding the aforesaid, the Contractor is excused from the performance time requirement if, during the progress of the work, delay is authorized in writing by the PAHAP. To obtain a delay, Contractor must request any such delay in writing from the PAHAP, such requests shall contain the cause necessitating the delay. Delays may be authorized for any causes completely beyond the Contractor's control, and the time of completion shall be extended for such reasonable time as the PAHAP may decide. The PAHAP shall make final decisions on the granting extensions of time. SECTION 4. Subcontracting: The Contractor is as fully responsible to the Owner for the acts and omissions of his subcontractors and of persons either directly or indirectly employed by them, as he is for the acts and omissions of himself or persons directly employed by him. Nothing contained ir, Contract document shall create any contractual relation between the subcontractor and the Owner Contractor sha',] not subcontract any part of the v/ork under this Contra~ o' permit his subcontr~-: work to be furiher subcontracted without the prior written approval of the PAHAP. SECTION 5. Changes: It is agreed by the parties hereto that all changes shall be in writing Page 3 ~ Housing Assista'nce Contract and signed by the parties to the Contract and the PAHAP. All changes ADDENDUM/AMENDMENT) must be submitted to the PAHAP during the first (1st) phase of the C~ntract, and the PAHAP must approve all changes prior to start of the work. Any exception to this shall be in writing from the PAHAP. No oral contract shall be enforceable. SECTION 6. Waiver and Liens: The Contractor shall submit to the Owner an Affidavit of all bills paid prior to final payment of the consideration set forth hereafter. SECTION ?. Compensation: The Owner agrees to compensate the Contractor $49,682.00 for the services, labor, superintendence and the materials provided herein. SECTION 8. Method of Payment: The Owner agrees to authorize payment to the Contractor in accordance with one of the following schedules, choice of schedule shall be at the sole discretion of PAHAP. The payment schedule for this job is Schedule B Schedule A Lump Sum (90%): Completion of entire work provided for under this Contract, ninety percent (90%) of the total price shall be remitted in one lump sum amount within (10) days after the PAHAP receives the Contractor's invoice and satisfactory affidavit of all bills paid. (See NOTE for payment of retainage); or Schedule B Progress Payments: Based on compensation for the following phases of satisfactory completion, partial payments shall be made as follows: Forty-Five Percent (45%)of total contract amount if at least one half (1/2) of the work provided for u~ ::sc this Contract has been completed satisfactorily; and Forty-Five Percent (45%) of total contract amount if the second one half (1/2) or one hundred pere=~% !100%) oithe work provided for under this Contract has been completed satisfactorily. Final pay~ e: due to the Contractor will be paici within (10) days after receipt of the Contractor's invoice and the re;aa se of liens by subcontractors, laborers and materials' suppliers for completed Page 4 - Housing Assistance Contact work; or, Schedule C Progress Payments: Application For Payment may be submitted to the PAHAP by the Contractor, along with Certificates For Payment on account as provided in the Contract Documents for the period ending the last day of the month. Said Application For Payment must be submitted within 15 days following the end of the period covered by the Applicat!on For Payment. Ninety Percent (90%) payment may be made for that portion requested in the Application For Payment, provided the amount requested is properly allocable to the work completed during the period covered. Application For Payment shall state the original contract amount, plus any authorized change order amounts, less the aggregate of previous payments. The amount requested will be paid up to ninety percent (90%), unless PAHAP has determined that additional corrections, defects in work, or unsettled claims warrant retaining an amount in excess of ten percent (10%). NOTE: Contract Retainage Payment: Ten percent (10%) of each draw in Schedule B will be retained. The total of which will be equal to, but not exceed ten percent (10%) of the total contract amount. A ten percent (10%) retainage shall be applied for Schedule A and each draw under Schedule C with the total net to exceed ten percent (10%) of the contract amount including approved change orders. Retainage will be held in escrow by the PAHAP for a period not to exceed thirty (30) days after all work under this contract is completed unless all workmanship and materials are not satisfactorily completed and approved by the PAHAP. Upon receipt of Application For Payment from Contractor, PAHAP shall determine whether or not the contractor has satisfactorily completed the work. If either materials or workmanship are not satisfactory, the PAHAP shall advise Contractor immediately of defects. If the PAHAP and Owner deem it impractical to correct defect or work not done in accordance with this Contract and its attachments, an equitable deduction from the Cor~?ect amount, based solely upon the judgement of the PAHAP shall be made. SECTION 9. If the PAHAP shall determine, upon receipt of the Contractor's Application for Payment, that the work has been completed in accordance with the plans and specifications, it VVithin seven (7i c!~7s after receiot of said application, submit one Appticat :~ For Payment to Page 5 - Housing Assistance Contract Owner or if not completed as stated in the Application For Payments, notify the Contractor in writing its reasons for withholding said request. SECTION '10. The submission of an Appiication for Payment will represent to the Owner, based on PAHAP's observations at the site as provided in Section 20 herein and the data comprising the Application For Payment, that the work has progressed to the point indicated; that, to th~ best of PAHAP's knowledge, ,i~formation and belief, the quality of work is in accordance with the Contract Documents, and that the Contractor' is entitled to payment in the amount certified. SECTION '11. The PAHAP may decline to certify payment and may withhold its Certificate in whole or in part, only to the extent necessary to protect the Owner, if in its opinion the Contractor has not satisfied the contract as provided in Section 12. If the Contractor and PAHAP cannot agree on a revised amount, the PAHAP will authorize payment for the amount which is undisputed by PAHAP, the Owner and Contractor. The PAHAP may also decline to certify payment, or because of subsequently discovered evidence or subsequent observations, it may nullify the whole or any part of Application For Payment previously issued, to such extent as may be necessary in its judgement to protect the Owner from loss because of: 1. ~ Defective work not remedied; 2. Third party claims filed (or reasonable evidence indicating probable filing of such claims); 3. Failure of the Contractor to make payments properly to subcontractors or for labor, materials or equipment, but only if no bond has been furnished: 4. Reasonable evidence that the work cannot be completed by the Contractor for the u~- balance of the contract sum; 5. Damage to the Owner or another Contractor: 6. Reasonable evidence that the work will not be completed within the adj~:~_ Page 6 - Housing Assistance Contract contract time; or, 7. Persistant or unreasonable failure to carry out the work in accordance with the contract documents. When the above grounds are removed, payment shall be made for amounts withheld because of them SECTION '12. After the PAHAP has issued the Authorization For Payment, the Owner shall a~Jthorize payment in the manner and within the time provided in the Contract Documents. SECTION '13. If the Owner should fail to authorize payment to the Contractor within the time provided in the contract without a showing of valid cause to be determined by the PAHAP, the PAHAP shall be authorized to make payment to the Contractor for the work for which the Authorization For Payment was issued. SECTION '14. No Certificate For Progress Payment nor any progress payment, nor any partial or entire use or occupancy of the project by the Owner, shall constitute an acceptance of any work not in accordance with the Contract Documents. SECTION '15. Disputes: The PAHAP shall, within a reasonable time, make decisions on all claims of the Owner or Contractor and/or all other matters relating to the execution and progress of the work or the interpretation of the Contract Documents. The PAHAP's decisions shall be final. SECTION '16. Workmanship: The work provided hereunder by the Contractor shall be executed as directed by the official construction manual and plans and specifications. Work sh~ii be performed in a workmanlike manner in accordance with the standards ofe=_:htradeapplicableand ~ comply with appropriate codes and its requirements. The Contractor hereby agrees that he is far- with the construction and of the grade required by the specifications, unless otherwise agreed between the PAHAP and Contractor. Materials damaged in shipment shall be replaced at the Contra:::'s expense. Salvage lumber or material from the Owner's premises Page 7 - Housing Assistance Contract may only be reused provided it is structurally sound and is approve~d for reuse by the PAHAP. Any salvaged materials not used in the construction shall be the property of the Contractor, unless otherwise stipulated. Contractor and/or Owner shall not use, or allow to be used, any paint containing more than ~ of 1 per centum lead weight (calculated at lead metal) in the total nonvolatile content of liquid paints. Lead paint removal is a dangerou~ task and safety precautions should be strictly enforced when workers are engaged in lead hazard abatement~ The use of lead-based paint materials on any surface, interior or exterior, is strictly prohibited. Any alterations or deviations from said specifications shall be executed only upon written consent of Owner, Contractor, and PAHAP. No extra costs will be paid if Contractor has neglected to properly evaluate the extent of the rehabilitation work. Contractor, in all cases, shall leave the work in a finished condition as determined by acceptable building standards and the PAHAP. Repairs shall be made to all property, real or personal, damaged by the Contractor at no additional cost to the Owner. Where repair and/or replacement of an existing item is called for in the job specifications, the item or feature is to be placed in equal to new condition either by repairing or replacing (taking into consideration that in repairing, existing structures cannot be restored as new and that some lines an:t surfaces may not be completely level and true or without slight irregularities). Ail damaged, decayed, missing or rotted parts shall be replaced and loose parts shall be secured or replaced so that the finished work shall match the adjacent work in design and dimension. Such repairs or replacement shall be ~- ~ ~:: to blend with existing work so that the patch or replacement is inconspicuous. SECTION 17, Defects After Completion: The Contractor shall guarantee the work performec : per!ed ::tv:z::,~ f~12) months from the date of final acceptance of all work required by the Page 8 - Housing Assistance Contract Contract except that the Contractor shall provide a two (2) year guarantee for roof work unless otherwise provided. Furthermore, the Contractor shall furnish the Owner, in care of the PAHAP, with all manufacturers' and suppliers' guarantees and warranties covering materials and equipment furnished under the Contract. Any defects that appear within this warranty period and arise from defective or improper materials or workmanship shall, upon notification of the PAHAP, be corrected or made good by the Contractor at his expense within (10) working days after receipt of notice. SECTION 18. Inspection of Work: PAHAP shall at all times have access to the work. If the specifications, plans, instructions, laws, ordinances, building code standards, or any public authority require any work to be specifically inspected, tested, or approved, the Contractor shall give the PAHAP timely notice of its readiness for inspection. If the inspection is by another authority other than the PAHAP, Contractor shall inform PAHAP of the time fixed for such inspection. Inspection of the work by authorized inspectors shall be facilitated by the Contractor during normal working hours. Ail work performed shall be subject to approval and acceptance by the PAHAP. Inspections by the PAHAP shall be made promptly and if any work should be covered up without approval or consent of the PAHAP, the Contractor may be required to uncover the work for examination and bear the cost thereof. If such work should be found not in accordance with this Contract, including incorporated Plans and Specifications, the Contractor shall pay such costs to remedy said nonconformance, provided, however, if the Contractor shall pay the cost of remedying such work if owner desires to remedy same. At all times the Contr.:tot shall permit the United State Government or its agents or assignees to examine and inspec: :ne rehabilitation work. SECTION 19. Permits and Licenses: All permits and licenses necessary for the completion an:: execution cf t!*,~ work shs!! ~.~ s~c.::::: :.-.:; paid for by the Contractor. If the Contractor Page 9 - Housing Assistance Contract observes that the drawings, plans and/or specifications are at a varia,nce with applicable laws, rules, ordinances, and/or regulations bearing on the conduct of the work, he shall promptly notify the PAHAP in writing. Any necessary changes shall be adjusted as provided for in the contract for changes in the work. If the Contractor knowingly performs work contrary to such laws, ordinances, and without notice from the PAHAP, he shall bear' all costs arising therefrom. All work shall be performed in conformance with applicable local codes and requirements whether or not covered by the specifications and drawings for the work. SECTION 20. Insurance: Contractor shall procure and maintain statutory Worker's Compensation Insurance, Contractor's Injury Insurance in an amount not less than $100,000 for injuries, including accidental death, to any one person, and not less than $500,000 on account for one occurrence; Property Damage Insurance in an amount not less than $50,000 for each occurrence and $100,000 aggregate. Such insurance shall name the City of Port Arthur and Owner as additional named insured. Contractor shall not commence work under this Contract until he obtains all insurance required and has submitted satisfactory evidence to the City. SECTION 21: Contractor shall provide a performance bond if the contract is in excess of $100,000 and a payment bond if the contract is in excess of $25,000. SECTION 22. The Owner will permit the Contractor to use, at no cost, exist ng utilities, such as ~ heat, power, and water, necessary to carry out the completion of the work. Owner will cooperate wit,~ :*~ Contractor to facilitate the performance of the work. including the remova! and replacement of '-Ts covering, and furniture, if necessary. Contractor shall keep the premises clean and orderly during the course of the work and shall remo,,.e ai, debris at the completion of said work. Materials and equipment that have been removed and replaced as part of the work shall belong to Contractor and shall be removed from the premises by Contractor. Page 10 - Housing Assistance Contract SECTION 23. Engineering or Construction Surveys: The Contractor shall furnish all surveys as required under this Contract un]ess otherwise specified. SECTION 24. Approved by PAHAP: This Contract must be approved by the PAHAP before it I~ecomes effective. SECTION 25. Indemnification: Tt~e parties hereto agree to indemnify and hold harmless the City of Port Arthur, its officers, agents and employees for any damages concerning the undertaking and execution of this Contract. The CONTRACTOR shall comply with the requirements of all applicable laws, rules and regulations in connection with the services of said CONTRACTOR and shall exonerate, indemnify and hold harmless the City, its officers, agents and all employees from any and all liability, loss or damages arising out of non-compliance with such laws, rules and regulations; without limitation, the CONTRACTOR shall assume full contributions imposed or required under the Social Security, Worker's Compensation and Income Tax Laws with respect to the CONTRACTOR'S employees. The parties hereto agree to indemnify and hold harmless the City of Port Arthur from any and all liability, loss, damages, expenses or claims arising out of negligence of the CONTRACTOR or employees in connection with any of the work performed or to be performed under this CONTRACT by the CONTRACTOR. SECTION 26. Default by Contractor: In case of default bythe Contractor. th9 Owner mayprocu~ articles or services from other sources and hold the Contractor responsible for any excess occasioned thereby. SECTION 27. Termination: !~ cas~ th~ Contractor fails to furnish mst~ri~ls or execute wot-' accordance with the provisions of this Contract, or fails to proceed with or complete the work withi. time limit specified in this Contract, or if the provisions of this Contract are otherwise violated by the Contractor, then in any case upon ten (10) days written notice to the Contractor, Page 11 - Housing Assistance Contract the Owner, in conjunction with the PAHAP, shall have the right to declare the Contractor in default in the performance of his obligations under this Contract. Said notice shall contain the reason(s) for the Owner's intent to declare the Contractor at fault, and unless within ten (10) days after service of said notice, the violation shall cease or satisfactory arrangements shall be made for its correction, the Contractor, by written notice, may I~e declared in default and his right to proceed under this Contract terminated. In the event the Contractor is thus declared to be in default, the Owner, in conjunction with the PAHAP, will proceed to have the work completed. If the cost of completing the work exceeds the original contract amount, the difference will be the responsibility of the original Contractor and may be collected from retainage or unexecuted payments, or other remedies deemed necessary. The Contractor shall be responsible for any damages resulting to Owner by reason of default. SECTION 28. Notice: Notices to be given by the Owner and/or the PAHAP to the Contractor for the purpose of this Contract when mailed by regular mail or certified mail, or sent by messenger to the Contractor at: Harold D. Collins, d.b.a., Collins Quality Construction (Contractor's Name/ 2835 Gulfway Drive Port Arthur, Texas 77640 Same (Contractor's Address) (Contractor's Address) (Contractor's Permanent Address) SECTION 29. Assignment: The Contractor shall not assign the'Contract without prior written conse-: the Owner and PAHAP. The request for approval of assignment must be addressed in care -: PAFIAP. SECTION 30. Effective Date of Contract: This Contract shall not become binding upon the par~ies concerned until properly signed by all parties and formal approval of the loan application has been given by the respective Federal Government Agency designated to make such approval. Page 12 - Housing Assistance Contract SECTION 31: Appendix I-Equal Opportunity Clause, Section 20~, Executive Order 11246 (30 FR 12319-25). During the ~erformance of this Contract th'e Contractor agrees as follows: 1. The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The Contractor will take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places available to employees and applicants for employment, notices to provide the provisions of this nondiscrimination clause. 2. The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, relation, sex or national origin. 3. The Contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the Contract Compliance Officer advising the said labor union or worker's representatives of the Contractor's commitment under this section, and shall post co:) ~ :~ the notice in a conspicuous place available to employees and applicants for employment Page 13 - Housing Assistance Contract 4. The Contractor will comply with all provisions of Executive Order 11246 September 24, 1965, and of the rules, regulations and relevant orders of the Secretary of Labor. 5. The Contractor will furnish ali information and reports required by Executive Order 11246 and by rules, regulations and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the Department and the Secretary of Labor for purposes of investigation to ascertain compliance with such ules, regulations and others. 6. In the event of the Contractor's noncompliance with the nondiscrimination clauses of thisContract or with any of the said rules, regulations or orders, this Contract may be cancelled, terminated or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 or by rules, regulations or order of the Secretary of Labor or as otherwise provided by law. The Contractor will include the provisions of the sentence immediately preceding Paragraph 1 and the provisions of Paragraphs 1 through 7 in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order ~s Department may direct ~s a moans of enforcing such provisions including sanctio~ noncompliance. Provided, however, that in the event a Contractor becomes involved in :- s threatened with litigation with a subcontractor or vendor as a result of such direction b', Department the Contracto~ ma~, request the United States to ente~ i,~to such litigation to ? the interest of the United States. Page '14 - Housing Assistance Contract SECTION 32. Arbitration Procedures: In the event of a dispute that,cannot be settled by PAHAP, both the contractor and the owner agree to submit the dispute or claim to the Mediation Service of Jefferson County, Inc. If a settlement is not reached,'the dispute or claim must enter into binding arbitration under the act known as the Uniform Arbitration Act pursuant to the commercial arbitration rules of the American Arbitration Association. SECTION 33. One-Time Assistance: The owner hereby acknowledges that PAHAP rehabilitation program is for one-time assistance and that the owner is responsible for all future repairs and maintenance on the home. IMPORTANT NOTICE: You and your contractor are responsible for meeting the terms and conditions of this contract. If you sign this contract and you fail to meet the terms and conditions of this contract, you may lose your legal rights in your home. KNOW YOUR RIGHTS AND DUTIES UNDER THE LAW. Signed the __ day of ,2002. STATE OF TEXAS COUNTY OF JEFFERSON Owner: Etta Lee West ACKNOWLEDGEMENT Before me, the undersigned authority, on this day personally appea red known to me to be the persons whose name(s) are subscribed to the foregoing instrument, and acknowledge to me that they executed the same for ?e purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the da: -: 2002. Notary Seal Notary Public, State of Texss Page 15 - Housing Assistance Contract Signed this day of ,2002. STATE OF TEXAS Contractor: Harold D. Collins ACKNOWLEDGMENT COUNTY OF JEFFERSON Before me, the undersigned authority, on this day personally appeared .(Contractor) owner(s) known to me to be the persons whose name(s) are subscribed to the foregoing instrument, and acknowledge to me that they executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the __day of 2002. Notary Seal Notary Public - State of Texas Approved: City of Port Arthur By Housing Programs Administrator ~xnIBIT "D" CONTRACT FOR IMPROVEMENTS (~VITH TRANSFER OF LIEN) STATE OF TEXAS § COUNTY OF JEFFERSON § This Contract for Improvements is made between Lillian M. Ix Blanc of Jefferson County, Texas ('.'Owner"), and Thomas W. Sheppard, d.b.a., Kitchens and Baths Unlimited ("Contractor"), and provides for a transfer of lien to The City of Port Arthur, a municipal corporation located in Port Arthur, Jefferson County, Texas ("Lender"). Construction of Improvements. Contractor agrees to furnish and pay for all labor and materials needed to construct the following improvements (the "improvements") on or before 20 days after the date hereof, in a good and workmanlike manner according to the plans and specifications agreed upon by Owner and Contractor and approved by Lender (hereinafter called the "Plans") and in accordance with the terms and provisions of this Contract and Contract # by and between Owner and Contractor (the "Construction Contract"), the terms and provisions of which are incorporated herein by reference: Repairs to Owner-occupied residence known as the Lot 43 & 44 & S. 60' of Lot 45 Block Lincoln Park ADJ 24.05' X 155' 2. Description of Property. The Improvements shall be constructed upon the following property (the "property"): See Exhibit "A" attached hereto and made a part hereof by this reference. 3. Contract Price. Owner agrees to pay, or cause to be paid, to Contractor for the construction of the improvements, the amount of $7,497.56 (the"Contract Price"), which is to be advanced by Lender to Contractor at the request and for the benefit of Owner, in accordance with the Loan Agreement of even date herewith by and between Lender, Contractor, and Owner (hereinafter called the "Loan Agreement") and this Contract and the Construction Contract (the "Loan Proceeds"). Lender shall advance to Contractor for the benefit of Owner and as the principal of the Note all of the Loan Proceeds due Contractor under the terms of the Loan Agreement and this Contract, until the full principal amount of the Note has been advanced. Contractor shall not make draw requests more often than once each week, and Lender shall not be obligated to pa3' any dra~x request which is less than ONE THOUSAND AND NO/t00 DOLLARS (SI.000.00) except the last draw request. Owner and Lender shall have no obli?,ti,,~r: t,> pa} C(~nn'aztor hereunder or to make advances to Contractor under the Note durin~ an>, period in which Contractor is in default t:nder this Contract. 4. Note Payable to Lender. In consideration of the advance of the Loan Proceeds stated in paragraph 3 above to Contractor by Lender, Owner has executed and delivered to Lender, a promissory note (s) in the sum of $7,497.56 (the "Note" 1 with Deferral and Forgiveness Provisions). 5. Lien to Secure Note. To secure the payment of the amount advanced to Contractor by Lender at the request of Owner, as evidenced by the Note, and the interest payable to Lender, Owner gives and grants to Contractor, and Contractor transfers and assigns to Lender, a lien as provided by the constitution and laws of the State of Texas on the above-described property, together with all the improvements now or later constructed on the property', and all easements, rights, and appurtenances thereto, all of which shall be deemed to be and remain'a part of the property covered by this Contract. The Note shall also be secured by a Deed of Trust to be executed by. Owner that will renew and extend the lien created by this Contract. 6. Transfer of Liefl. Contractor transfers and assigns to Lender, and to Lender's successors and assigns, all of Contractor's rights in this Contract, and Lender is subrogated to all the rights and equities of Contractor hereunder. 7. Completion by Contractor, But Not Lender. Contractor shall be obligated to complete all work performed hereunder in accordance with the Plans. Lender shall have no obligation for the performance of the construction of the improvements hereunder and shall not in any manner be considered as a guarantor of performance by Contractor. Contractor agrees to indemnify and hold Lender harmless against all claims for completion of the improvements. 8. Partial Lien. In the event the improvements are not completed by Contractor according to the Plans, and, for whatever reason, it is determined that Lender does not have a lien to the extent of the full amount of the Contract Price, then Lender shall have a valid lien for the Contract Price less the amount reasonably necessary to complete the improvements according to the Plans, or in such event Lender, at its option, shall have the right to complete the Lmprovements, and the lien shall be valid for the Contract Price. 9. Alterations and Extras. No alterations shall be made in the work shown or described by the plans and specifications, nor shall any extra work or materials be charged or paid for, unless a separate estimate for such extra work is submitted in writing ['7 Contractor to Owner and agreed to in writing by them before the extra work is started. The additional amount to be paid for all extra work and materials so agreed to and furnished shall be a part of the indebtedness secured by the lien created by this Contract. Lender, at its option and subject to the execution of such additional loan documents as it might require, may advance all or any part of such additional amount. If Lender elects not to advance such additional amonnt, Ox',. re:' ;22!'. pay Contractor in cash upon completion of such extra work and Contractor shall have a !:...:2 ?n the property and all improvements for the payment of such amount, which lien Contractor agrees shall be subordinate to the lien retained and transferred to Lender in this Contract. All extra ':,ork done or materials furnished without such agreement shall be considered as performed u.7.de7 the original contract and no extra pay shall be deemed earned hereunder or allowed. ,o,.~',,-.,~..,,.1~ ,,,,d.._ReIeases. Ugon reouest. Contracto? sha!t ~ -'-~<~ Or'net or Lende' proper receipts and releases from any and all subcontractors, workers, and suppliers so that no liens may be fixed upon the property except the express lien created by this Contract. 2 11. No Work Commenced. This Contract is executed, acknowledged and delivered before any labor has been performed and before any material has been furnished for the construction of the improvements. 12. Conflicts. It is expressly agreed by and between Owner and Contractor that the terms and provisions of the Loan Agreement to the extent they conflict with the terms and provisions of this Contract or Construction Contract shall govern over and supersede atiy conflicting provision of this Contract or the Construction Contract, including, but not limited to, the provisions of this Contract providing for payments to Contractor for the construction of the improvements. All payments .made to the Contractor for the construction of the improvements shall be made as set out hereiri and in the Loan Agreement and Construction Contract. Owner shall not be in breach of this Contract or the Construction Contract because of compliance with the terms of the Loan Agreement where such document conflicts with this Contract or the Construction Contract. In the event of any conflict between the terms and provisions of the Construction Contract and this Contract, then the provisions of the Constmction Contract shall prevail. 13. Subordination by Contractor. For the same consideration referred to in Paragraph 4 hereof, Contractor hereby agrees that any and all liens, rights and interests (including, without limitation, all mechanic's and materialman's liens under the Constitution or statutes of the State of Texas) owned, claimed or held, and all to be owned, claimed or held by the Contractor in and to the above-described property and the improvements, whether now or hereafter constructed thereon, are and shall be in all things second, subordinate and inferior to all liens and security interests now existing or hereafter created by this Contract and/or otherwise created for the benefit of Lender, its successors and assigns, as security for the Note. Executed this the day of ,2 CONTRACTOR: Thomas W. Sheppard, d.b.a., Kitchens and Baths Unlimited 914 Griesb¥ Drive Port Neches, TX 77651 BORROWER: IMPORTANT NOTICE: You and your contractor are responsible for meeting the terms and conditions of this contract. Lillian M. LeBlanc If you sign this contract and you fail to meet the terms and conditions of this contract, you may lose yonr legal ownership rights hi yonr home. KNOW YOUR RIGHTS AND DUTIES UNDER THE LAW. Approved: City of Port Arthur By Housing Programs Administrator ACKNOWLEDGEMENT THE STATE OF TEXAS § COUNTY OF JEFFERSON § by This instrument was acknowledged before me on the day of ,2 , Notary Public, State of Texas THE STATE OF TEXAS § COUNTY OF JEFFERSON § This instrument was acknowledged before me on the __ day of by ,2 STATE OF TEXAS § COUNTY OF JEFFERSON § Notary Public, State of Texas by This instrument was acknowledged before me on the day of ,2 Notary. Public, State of Texas 4 EXHIBIT "A" Lots 43 & 44 & S 60' of Lot 45 Block Lincoln Park ADJ 24.05' X 155', also known as 649 W. Thomas Blvd. I':X H IBIT "E~ q C©NTP, ACT FOR hMPROVEMq~NTS (WITH TRANSFER OF LIEN) STATE OF TEXAS § COUNTY OF JEFFERSON § This Contract for Improvements is made between Emorose T. Jackson of Jefferson County, Texas ("Owner"), and Thomas W. Sheppard, d.b.a., Kitchens and Baths Unlimited_ ("Contractor"), and provides for a transfer of lien to The City of Port Arthur, a municipal corporation located in Port Arthur, Jefferson County, Texas ("Lender"). Construction of Improvements. Contractor agrees to furnish and pay for all labor and materials needed to construct the following improvements (the "improvements") on or before 20 days after the date hereof, in a good and workmanlike manner according to the plans and specifications agreed upon by Owner and Contractor and approved by Lender (hereinafter called the "Plans") and in accordance with the terms and provisions of this Contract and Contract# bY and between Owner and Contractor (the "Construction Contract"), the terms and provisions of which are incorporated herein by reference: Repairs to Owner-occupied residence known as the South 95' of Lot 6, Block 341, City of Port Arthur Addition 2. Description of Property. The knprovements shall be constructed upon the following property (the "property"): See Exhibit "A" attached hereto and made a part hereof by this reference. 3. Contract Price. Owner agrees to pay, or cause to be paid, to Contractor for the construction of the improvements, the amount of $7.317.00 (the"Contract Price"), which is to be advanced by Lender to Contractor at the request and for the benefit of Owner, in accordance with the Loan Agreement of even date herewith by and between Lender, Contractor. and Owner (hereinafter called the "Loan Agreement") and r~s Contract and the Construction Contract [rbe "Loan Proceeds"). Lender shall advance to Contractor for the benefit of Owner and as the principal of the Note all of the Loan Proceeds due Contractor under the terms of the Loan Agreement and this Contract, until the full ~principal amount of the Note has been advanced. Contractor shall not make draw requests more often than once each week, and Lender shall not be obligated to pay any draw request which is less than ONE THOUSAND AND NO/100 DOLLARS ($I.000.00) except the last draw request. Owner and Lender shall have no obligation to pay Contractor hereunder or to make advances to Contractor under the Note during ~:i~3 period in '~, i~c~ Con~r,~c[or is i~l de~hulr under this Contract. 4. Note Payable to Lender. In consideration of the advance of the Loan Proceeds stated in paragraph 3 above to Contractor by Lender, Owner has executed and delivered to Lender, a promissory note (s) in the sum of $7,317.00 (the "Note" i with Deferral and Forgiveness Provisions). 5. Lien to Secure Note. To secure the payment of the amount advanced to Contractor by Lender at the request of Owner, as evidenced by the Note, and the interest payable to Lender, Owner gives and grants to Contractor, and Contractor transfers and assigns to Lender, a lien as provided by the constitution and laws of the State of Texas on the above-described property, together with all the improvements now or later constructed on the property, and a.ll easements, rights, and appurtenances thereto, all of which shall be deemed to be and remain a part of the property covered by this Contract. The Note shall also be secured by a Deed of Trust to be executed bY.0wner that will renew and extend the lien created by this Contract. 6. Transfer of Lien. Contractor transfers and assigns to Lender, and to Lender's successors and assigns, all of Contractor's rights in this Contract, and Lender is subrogated to all the rights and equities of Contractor hereunder. 7. Completion by Contractor, But Not Lender. Contractor shall be obligated to complete all work performed hereunder in accordance with the Plans. Lender shall have no obligation for the performance of the construction of the improvements hereunder and shall not in any manner be considered as a guarantor of performance by Contractor. Contractor agrees to indemnify and hold Lender harmless against all claims for completion of the improvements. 8. Partial Lien. In the event the improvements are not completed by Contractor according to the Plans, and, for whatever reason, it is determined that Lender does not have a lien to the extent of the full amount of the Contract Price, then Lender shall have a valid lien for the Contract Price less the amount reasonably necessary to complete the improvements according to the Plans, or in such event Lender, at its option, shall have the right to complete the improvements, and the lien shall be valid for the Contract Price. 9. Alterations and Extras. No alterations shall be made in the work shown or described by the plans and specifications, nor shall any extra work or materials be charged or paid for, unless a separate estimate for such extra work is submitted in writing by Contractor to Owner and agreed to in writing by them before the extra work is started. The additional amount to be paid for all extra work and materials so agreed to and furnished shall be a part of the indebtedness secured by the lien created by this Contract. Lender, at its option and sub. iect to the execution of such additional loan documents as it might require, may advance all or any .ran of such additional arno:mt If Lender elects not t> advance s'.:ch additions.! amount, Owner s'.-.nll pay Contractor in cz~.sh u?on completion of st:cf: extra work and Contractor shall have a lien on the property and all improvements for the payment of such amount, which lien Contractor agrees shall be subordinate to the lien retained and transferred to Lender in this Contract. All extra work done or materials furnished without such agreement shall be considered as performed under the original contract ~i:d :-._ a: ;~z'. shall be deem. ed earned hereunder or allowed. R~celr~.~ ' ' a-~· R~l~as~.~ ~ U?~, ..... t'tr~.:est Contractor shall ~_:rr.!sh Owner or Lender' proper receipts and releases fi'om any and all subcontractors, workers, and suppliers so that no liens may be fixed upon the properts' except the express lien created by this Contract. 11. No Work Commenced. This Contract is executed, acknowledged and delivered before any labor has been performe.d and before any material has been furnished for the construction of the improvements. 12. Conflicts. It is expressly agreed by and between Owner and Contractor that the terms and provisions of the Loan Agreement to the extent they conflict with the terms arid provisions of this Contract or Construction Contract shall govern over and supersede any conflicting provision of this Contract or the Construction Contract, including, but not limited to, the provisions of this Contract providing for payments to Contractor for the construction of the improvements. Ail payments made to the Contractor for the construction of the improvements shall be made as set out herein and in the Loan Agreement and Construction Contract. Owner shall not be in breach of this Contract or the Construction Contract because of compliance with the terms of the Loan Agreement where such document conflicts with this Contract or the Construction Contract. In the event of any conflict betxveen the terms and provisions of the Construction Contract and this Contract, then the provisions of the Construction Contract shall prevail. 13. Subordination by Contractor. For the same consideration referred to in Paragraph 4 hereof, Contractor hereby agrees that any and all liens, rights and interests (including, without limitation, all mechanic's and materialman's liens under the Constitution or statutes of the State of Texas) owned, claimed or held, and all to be owned, claimed or held by the Contractor in and to the above-described property and the improvements, whether now or hereafter constructed thereon, are and shall be in all things second, subordinate and inferior to all liens and security interests now existing or hereafter created by this Contract and/or other~vise created for the benefit of Lender, its successors and assigns, as security for the Note. Executed this the day of ,2 CONTRACTOR: Thomas W. Sheppard, d.b.a., Kitchens and Baths Unlimited 914 Grigsb¥ Drive Port Neches, TX 77651 BORROWER: IMPORTANT NOTICE: Yon and your contractor are responsible for meeting the terms and conditions of this contract. If you sign this contract and you fail to meet the terms and conditions of this contract, you may lose 3'our legal ownership rights in your home. KNOW YOUR RIGHTS .&ND DUTIES UNq)ER TIt~E LAW. Emorose T. Jackgon 3 Approved: City of Port Arthur By Housing Programs Administrator ACKNOWLEDGEMENT THE STATE OF TEXAS § COUNTY OF JEFFERSON § by This instrument was acknowledged before me on the __ day of ,2 Notary Public, State of Texas THE STATE OF TEXAS § COUNTY OF JEFFERSON § by This instrument was acknowledged before me on the __ day of ,2 STATE OF TEXAS COUNTY OF JEFFERSON Notary Public, State of Texas by This instrument was acknowledged before me on the __ da3' of ,2 Notary Public, State of Texas EXHIBIT "A" South 95' of Lot 6, Block 341, City o,f Port Arthur Addition, also known as 2401 E. 19~' Street 5 STATE OF TEXAS COUNTY OF JEFFERSON EX]~IBIT "F" CONTRACT FOR IMPROVEMENTS (WITH TRANSFER OF LIEN) This Contract for Improvements is made between Patricia A. Broo~ of Jefferson County, Texas ("Owner'.'), and Thomas W. Sheppard, d.b.a., Kitchens and Baths Unlimited_ ("Contractor"), and provides .for a transfer of lien to The City of Port Arthur, a municipal corporation located in Port Arthur, Jefferson County, Texas ("Lender"). Construction of Improvements. Contractor agrees to furrdsh and pay for all labor and materials needed to construct the following improvements (the "improvements") on or before 20 days after the date hereof, in a good and workmanlike manner according to the plans and specifications agreed upon by Owner and Contractor and approved by Lender (hereinafter called the "Plans") and in accordance with the terms and provisions of this Contract and Contract# .by and between Owner and Contractor (the "Construction Contract"), the terms and provisions of which are incorporated herein by reference: Repairs to Owner-occupied residence known as the Lot 9, Block 517, Model Addition to the City of Port Arthur 2. Description of Property. The improvements shall be constructed upon the following property (the "property"): See Exhibit "A" attached hereto and made a part hereof by this reference. 3. Contract Price. Owner agrees to pay, or cause to be paid, to Contractor for the construction of the improvements, the amount of $6.184.00 (the"Contract Price"), which is to be advanced by Lender to Contractor at the request and for the benefit of Owner, in accordance with the Loan Agreement of even date herewith by and between Lender, Contractor, and Owner (hereinafter called the "Loan Agreement") and this Contract and the Construction Contract (the "Loan Proceeds% Lender shall advance to Contractor for the benefit of Owner and as the princip,~.l of the Note ail of the Loan Proceeds due Contractor under the terms of the Loan Agreement and this Contract. until the full principal amount of the Note has been advanced. Contractor shall not make draw requests more often than once each week, and Lender shall not be obligated to pa)' any draw request which is less than ONE THOUSAND AND NO/100 DOLLARS (S 1,000.00) except the last draw request. Owner and Lender shall have no obligation to pa}' Contractor hereunder or to make advances to Contractor under the Note during any period ir,. which Contractor is in det'ault under this Contract. 4. Note Payable to Lender. In consideration of the advance of the Loan Proceeds stated in paragraph 3 above to Contractor by Lender, Owner has executed and delivered to Lender, a promissory note (s) in the sum of $6.184.00 (the "Note" 1 with Deferral and Forgiveness Provisions). 5. Lien to Secure Note. To secure the payment of the amount advanced to Contractor by Lender at the request of Owner, as evidenced by the Note, and the interest payable to Lender, Owner gives and grants to Contractor, and Contractor transfers and assigns to Lender, a lien as provided by the constitution and laws of the State of Texas on the above-described property, together with all the improvements now or later constructed on the property, and all easements, rights, and appurtenances thereto, all of which shall be deemed to be and remain'a part of the property covered by this Contract. The Note shall also be secured by a Deed of Trust to be executed by Owner that will renew and extend the lien created by this Contract. 6. Transfer of Lien. Contractor transfers and assigns to Lender, and to Lender's successors and assigns, ali of Contractor's rights in this Contract, and Lender is subrogated to all the rights and equities of Contractor hereunder. 7. Completion by Contractor, But Not Lender. Contractor shall be obligated to complete all work performed hereunder in accordance with the Plans. Lender shall have no obligation for the performance of the construction of the improvements hereunder and shall not in any manner be considered as a guarantor of performance by Contractor. Contractor agrees to indemnify and hold Lender harmless against all claims for completion of the improvements. 8. Partial Lien. In the event the improvements are not completed by Contractor according to the Plans, and, for whatever reason, it is determined that Lender does not have a lien to the extent of the full amount of the Contract Price, then Lender shall have a valid lien for the Contract Price less the amount reasonably necessary to complete the improvements according to the Plans, or in such event Lender, at its option, shalI have the right to complete the improvements, and the lien shall be valid for the Contract Price. 9. Alterations and Extras. No alterations shall be made in the work shown or described by the plans and specifications, nor shall any extra work or materials be charged or paid for, unless a separate estimate for such extra work is submitted in writing by Contractor to Owner and agreed to in writing by them before the extra work is started. The additional amount to be paid for all extra work and materials so agreed to and furnished shall be a part of the indebtedness secured by the lien created by this Contract. Lender, at its option and subiect to the execution of such additional loan documents as it might require, may advance all or an7 part of such additional :<mount. I~' Lender elects no:. to advance st~ch additional amount. O',vre7 s!:ar, pay Contractor in :ash u?oa completion ,~t' st:clx exn'a v, ork and Contractor shall l~ave a lie:-. 5~ 2re property and all improvements l-bt the payment of such amount, which lien Contractor agrees shall be subordinate to the lien retained and transferred to Lender in this Contract. Ali extra v. o:k done or materials furnished without such agreement shall be considered as pertbrmed under t?,e original contract and no extra pay sbal! be deemed earned hereunder or allowed. Receim and Releases. Lpon reoue<t Contractor sba!! f:r:-:<"t Owner or Lender proper receipts and releases from an.',' and all subcontractors, workers. :tzd suppliers so that no liens may be fixed upon the property except the express lien created by this Contract. 2 11. No Work Commenced. This Contract is executed, acknowledged and delivered before any labor has been performed and before any material has been furnished for the construction of the improvements. 12. Conflicts. It is expressly agreed by and between Owner and Contractor that the terms and provisions of the Loan Agreement to the extent they conflict with the terms and provisions of this Contract or Construction Contract shall govern over and supersede any conflicting provision of this Contract or the Construction Contract, including, but not limited to, the provisions of this Contract providing for payments to Contractor for the construction of the improvements. ,~/11 payments .made to the Contractor for the construction of the improvements shall be made as set out hereir/and in the Loan Agreement and Construction Contract. Owner shall not be in breach of this Contract or the Construction Contract because of compliance with the terms of the Loan Agreement where such document conflicts with this Contract or the Construction Contract. In the event of any conflict bet~veen the terms and provisions of the Construction Contract and this Contract, then the provisions of the Construction Contract shall prevail. 13. Subordination by Contractor. For the same consideration referred to in Paragraph 4 hereof, Contractor hereby agrees that any and all liens, rights and interests (including, without limitation, all mechanic's and materialman's liens under the Constitution or statutes of the State of Texas) owned, claimed or held, and all to be owned, claimed or held by the Contractor in and to the above-described property and the improvements, whether now or hereafter constructed thereon, are and shall be in ail things second, subordinate and inferior to ali liens and security interests now existing or hereafter created by this Contract and/or otherwise created for the benefit of Lender, its successors and assigns, as security for the Note. Executed this the __ day of ,2 CONTRACTOR: Thomas W. Sheppard, d.b.a., Kitchens and Baths Unlimited 914 Grigsb¥ Drive Port Neches. TX 77651 BORROWER: IMPORTANT NOTICE: You and your contractor are responsible for meeting the terms and conditions of this contract. Patricia A. Brooks If you sign this contract and you fall to meet the terms and conditions of this contract, you may lose 3'our legal ownership rights in your home. KNOW YOUR RIGHTS ANT) DUTIES UNDER THE LAW. 3 Approved: City of Port Arthur By Housing Programs Administrator ACKNOWLEDGEMENT THE STATE OF TEXAS § COUNTY OF JEFFERSON § by This instrument was acknowledged before me on the day of ,2 Notary Public, State of Texas THE STATE OF TEXAS § COUNTY OF JEFFERSON § This instrument was acknowledged before me on the __ da3, of by ,2 STATE OF TEXAS COUNTY OF JEFFERSON Notary Public, State of Texas by This instrument was acknowledged before me on the day of ,2 Notary Public, State of Texas 4 ACKNOWLEDGEMENT THE STATE OF TEXAS § COUNTY OF JEFFERSON § by This instrument was acknowledged before me on the day of ,2 Notary Public, State of Texas THE STATE OF TEXAS § COUNTY OF JEFFERSON § by. This instrument was acknowledged before me on the __ day of ,2 STATE OF TEXAS § COUNTY OF JEFFERSON § Notary Public, State of Texas This instrument was acknowledged before me on the by' day of ,2 Notary Public, State of Texas 4 EXHIBIT "A" Lot 9, Block 517, Montrose Addition, also known as 3500 E. 5~ Street. 5