Hi, We are a small general contractor who normally does business
with property management companies to improve the spaces their tenants are about to occupy. History has shown, repeatedly, that when we do work directly for the tenant that things can sour quickly. We have completed $3,000 of a $9,000 contract
on a 'hand shake' (don't get me started on how angry I am about that!), anyway, before continuing we are trying to hash out a contract before completing the remaining work. We are already getting an uneasy feeling from the customer with statements like saying, "well, that should have been included so you should include it for the same price". We created a general short form contract, to which they provided the following "addendum". I responded with the additions that are in CAPS. They have now responded with the following statement:
"The changes to Section 1 and Section 2 are acceptable. The change to Section 3 is not acceptable, as the contractor’s insurance must in all circumstances be primary to DPI’s insurance, which is non-contributory."
Here is the Addendum. Please review Section 3 and let me know what you think.
NOT ENOUGH ROOM IN QUESTION BOX FOR WHOLE ADDENDUM....
3. Notwithstanding anything contained in Section 14 or elsewhere in the Contract to the contrary, Contractor shall at all times carry comprehensive general liability insurance, including but not limited to coverage for product liability, contractual liability, and business operations, with limits of not less than $1,000,000 per occurrence/ $2,000,000 annual aggregate for bodily injury and property damage; employer's liability of not less than $1,000,000 each incident; workers' compensation as required by statute; and riggers liability and automobile liability insurance for any owned or leased automobiles with limits of not less than $1,000,000 per occurrence for bodily injury and property damage. Owner shall be named as an additional insured on the liability policies. Contractor’s insurance, and its contractors’ and subcontractors’ insurance shall be primary and Owner’s insurance will not contribute with any such Contractor or its contractor’s and subcontractor’s insurance for any reason OTHER THAN WILLFUL MISCONDUCT OR GROSS NEGLIGENCE ON BEHALF OF THE OWNER AND/OR OWNER AFFILIATES
. Further, Contractor for itself and for its insurance company shall waive all rights of subrogation against Owner and all Owner Affiliates under any Workers' Compensation policy. As a condition of the execution of the Contract by Owner, evidence of the coverage described herein in a form reasonably acceptable to Owner shall be provided to Owner by Contractor prior to commencement of any work on Owner’s premises by Contractor or anyone. In no event shall Contractor’s liability be limited by insurance maintained by Contractor, required hereunder or otherwise.