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Subcontract#: 1706-1050
<br /> Hoffman shall have the right to make joint check payments to Subcontractor and its second tier Subcontractors or suppliers if Hoffman
<br /> deems such action necessary to adequately protect its interests or the interests of Owner.
<br /> If Subcontractor defaults in its obligations to make payments to its second tier subcontractors or suppliers,Hoffman may,after notice
<br /> to the Subcontractor,make such payments directly to such second tier subcontractors or suppliers and deduct the amounts of such payments from
<br /> • Subcontractor's Final Payment. However,nothing contained in this Agreement shall be understood to create a contractual relationship between
<br /> Hoffman and any of Subcontractor's second tier subcontractors or suppliers.
<br /> If Hoffman overpays Subcontractor,Subcontractor shall repay Hoffman within five(5)days of Hoffman notifying Subcontractor of the
<br /> overpayment. Any overpayment not timely reimbursed to Hoffman shall bear interest at the rate of 12%per annum.
<br /> t t. Deduction for Cost of Bondt. Hoffman shall be entitled to deduct 1%from each payment or pay estimate paid to Subcontractor to
<br /> reimburse Hoffman for bonds,association fees or dues,and overhead costs incurred by Hoffman upon the Project.
<br /> 12. jpsurance. Subcontractor's Insurance. Subcontractor will purchase and maintain the insurance described in this Paragraph 12.
<br /> 12.1. Prior to commencing Work,Subcontractor shall,at its sole expense,procure and maintain insurance of the types,and in the form and
<br /> amounts described below from Insurer(s)authorized to transact business in the state where Work or operations will be performed by Subcontractor.
<br /> Such insurance and required coverage in forms acceptable to General Contractor shall be placed with admitted insurers that maintain an A.M.Best's
<br /> rating of not less than A-VII,unless otherwise approved by the General Contractor.The insurance requirements described below shall be maintained
<br /> uninterrupted for the duration of the Project,including any warranty periods,and shall protect Subcontractor,and others for whom and/or to whom
<br /> Subcontractor may be liable, for liabilities in connection with work performed by or on behalf of Subcontractor, its agents, representatives,
<br /> employees or subcontractors.
<br /> Insurance Requirements:
<br /> A. Commercial General and Umbrella Liability Insurance. Subcontractor shall maintain commercial general liability("CGL")and, if
<br /> necessary,commercial umbrella insurance,with a limit of not less than$2,000,000 per occurrence,bodily injury or property damage liability;
<br /> $2,000,000 per offense, personal and advertising injury liability; $2,000,000 products-completed operations aggregate; and $2,000,000
<br /> general aggregate applicable to claims other than products-completed operations.To the extent that Subcontractor's CGL and any commercial
<br /> umbrella insurance are subject to aggregate limits,the policy shall be endorsed so as to apply such aggregate limits separately to the Project.
<br /> Coverage afforded under Subcontractor's CGL and any commercial umbrella insurance shall be provided on an occurrence basis and shall be
<br /> subject to the terms of the Insurance Services Office("ISO")Commercial General Liability Coverage Form CG 0001,or a substitute form
<br /> providing coverage at least as broad as the ISO form specified.There shall be no limitations or exclusions of coverage beyond those contained
<br /> in the standard coverage form and coverage shall include liability arising from premises,operations, independent contractors, products-
<br /> completed operations including construction defect,contractual liability or personal injury and advertising injury.
<br /> General Contractor,its officers,directors and employees and Project Owner(s)shall be included as additional insureds under Subcontractor's
<br /> CGL, and any commercial umbrella insurance, with respect to liabilities arising out of both the ongoing and completed operations of
<br /> Subcontractor.Such additional insured coverage shall be subject to the terms of ISO additional insured endorsement forms CG 2010(ongoing
<br /> operations)and form CG 2037(products-completed operations),or substitute form(s)providing equivalent coverage.
<br /> Additional insured coverage afforded by Subcontractors CGL,and any commercial umbrella insurance,shall be primary and non-contributing
<br /> with respect to any insurance or self-insurance available to General Contractor or Project Owner.Such primary and non-contributory insurance
<br /> shall be subject to the terms of ISO form CG 2001(Primary and Noncontributory—Other insurance Condition)or its equivalent.Any other
<br /> insurance or self-insurance maintained by General Contractor or Project owner shall be excess of,and non-contributory with,the coverage
<br /> afforded by Subcontractors CGL and commercial umbrella insurance,if any.
<br /> In addition to procuring and maintaining CGL,and any commercial umbrella insurance,for the duration of the contract,Subcontractor agrees
<br /> to continue to procure and maintain the products-completed operations liability insurance coverage for a minimum of three(3)year(s)after
<br /> the date that the Work is substantially complete. All terms and conditions of such coverage shall be maintained during this completed
<br /> operations period,including the required coverage limits and the requirement to provide General Contractor and Project Owner with coverage
<br /> as an additional insured for completed operations.
<br /> B. Commercial Automobile and Umbrella Liability Insurance. Subcontractor shall maintain automobile liability and, if necessary,
<br /> commercial umbrella insurance,with a limit of not less than$1,000,000 each accident.Such insurance shall cover liability for bodily injury
<br /> and property damage arising from the use or operation of any auto,including those owned,hired or otherwise operated or used by or on behalf
<br /> of Subcontractor.The coverage shall be subject to the terms of ISO Business Auto Coverage Form CA 0001 (1990 edition or later),or a
<br /> substitute form providing equivalent coverage.
<br /> C. Workers'Compensation and Employers Liability Insurance.Subcontractor shall maintain workers'compensation coverage providing
<br /> statutory benefits.Subcontractor shall additionally maintain employer's liability insurance,and if necessary,commercial umbrella insurance,
<br /> with a limit of not less than:$1,000,000,bodily injury by accident-each accident;$1,000,000,bodily injury by disease-policy limit;and
<br /> $1,000,000, bodily injury by disease each employee. Workers' Compensation coverage must extend to every employee, including
<br /> owners/officers of a closely held corporation and/or individuals operating as a sole proprietorship or partnership.Workers Compensation must
<br /> provide coverage in the state where the Project is located.
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