Explanation of Contract Types

Explanation of Contract Types

OVERVIEW: What Contract Type Should I Choose in CMiC Subcontract Module?

For more information visit the Legal-Contracts page on SwinNet

Contract Labor Agreement – is used for craft labor broker services / temporary labor.

Contact the Legal Department for the Contract Labor Agreement Terms and Conditions template.
Use Category Code: 71115

Design-Build Agreement – is used for design/build agreements with Architects and Engineers.

It is not to be used for Subcontractors who will actually design and perform a portion of the work for design-build type projects. Subcontractors should issue a Work Order with a Scope of Work attachment for Design-Build Services or Design-Assist Services and their trade specific Scope of Work attachment.
Contact the Legal Department for the Design Build Agreement Terms and Conditions template.
Use Category Code: 71145

Master Subcontract Agreement (MSA) – is the default standard agreement defining general terms and conditions for work with subcontractors. The MSA includes attachments setting forth company-wide standards for insurance, safety, billing, quality, etc. The MSA has a 5-year term and applies to all work for a Subcontractor.

When an MSA is in place, a Work Order is issued for each individual project which will include project specific requirements.
MSAs are issued from and stored in the CMiC Subcontractor Prequalification module.
MSA attachments are found on SwinNet / Legal pages.
MSAs and MSA attachments may not be altered without approval from Swinerton's Legal and Risk Department.

Professional Service Agreement (PSA) – used for services such as surveying, testing and inspections. Typically these agreements have non-standard insurance requirements that is included in the body of the agreement.

PSAs may not to be used for design services by design professionals (i.e. architects, engineers) except in very limited circumstances after discussion with the Legal and Risk Management Departments.
Be sure to obtain a copy of the professional company’s license for the work to be performed.
Contact the Legal Department about Master Professional Service Agreements (MPSA), Master Peer Review Professional Service Agreement and related Specific Project Pursuant (SPP) agreement. These agreements are not issued from CMiC. When entering a SPP commitment into CMiC, select Contract Type as "Professional Service Agreement". Click HERE to find out if a vendor has an MPSA.
Use Category Code: 71145

Purchase Agreement – is used only for purchasing specified materials for a project. We have two Puchase Order Agreements: (1) standard, basic agreement and (2) for large quantities of material purchase where the material is a significant part of our prime contract called Large/Solar Purchase Agreement.

Rental Ageements will now bypass the MSA/WO workflow and be approved by Risk Management prior to being approved by project team.
Purchase Agreement may not to be used for scope involving any jobsite labor except delivery of material.
Should be written to document unit prices, payment terms and delivery date, and to protect pricing for an agreed upon period of time.
Large/Solar Purchase Agreement is used for very large purchases (such as modules, inverters on solar projects), not necessarily limited to solar projects. This agreement has more extensive terms which gives us more control and remedies.
Use Category Code: 71130

Rental Agreement – should be used for equipment leased or rented for use on the project the is operated by Swinerton personnel. Does not include labor except that which is directly related to the rental agreement (i.e. weekly cleaning of portable toilets; delivery and set up of temp fencing).

PSAs will now bypass the MSA/WO workflow and be approved by Risk Management prior to being approved by project team.
Should document commitment to scheduled delivery, price, terms and rental duration or operated equipment.
If the rental equipment is acquired via a National Purchasing Agreement, the Terms and Conditions should make reference to the National Agreement date posted on SwinNet.
Not to be used for tower cranes. For tower cranes, utilize an Master Subcontract Agreement (MSA) and Work Order (WO) commitments. Alternatively, if it is not possible to utilize an MSA/WO, the Swinerton tower crane rental agreement (with and without operator) may be used.
Use Category Code: 71120

Short Form Subcontract Agreement (SFA) – is intended to be used only when we do work with a Subcontractor on a one-time basis (i.e. not a Subcontractor we do repeat work with) and the work fits the criteria below.

An SFA may be used for:
- Short term work where Subcontractor is on site 1-2 days.
- Cost of work does not exceed $20,000 including change orders.
- The scope of work is low risk. SFA should not be for work involving mechanical, electrical, plumbing, demolition, fire sprinklers, waterproofing, high voltage work, work involving cranes or water remediation. Please contact Legal and/or Risk Management Departments if you have questions.
- Subcontractor shall bill through Textura. Retention is optional.
The standard SFA terms may not be altered in any way without approval from the Legal and/or Risk Management Departments.
Operations Manager must approve use of this agreement.
Make sure to check on Subcontractor's license for work to be performed.
Use Category Code: 71140

Work Order to the Master Subcontract Agreement (WO) - Once an MSA is in place, a Work Order is used for each individual project. The Work Order defines any project specific requirements including scope of work, price and schedule.

All project specific Work Order attachments should be included.
Make sure to check on Subcontractor's license for the work to be performed.
Use Category Code: 71140

NO OTHER FORMS OF AGREEMENT ARE ACCEPTABLE WITHOUT WRITTEN APPROVAL OF CORPORATE COUNSEL. UNDER NO CIRCUMSTANCES SHOULD A VENDOR PROPOSAL BE SIGNED IN LIEU OF ISSUING A STANDARD COMPANY AGREEMENT FORM.