Fillable Printable Agency Contract Template for Alabama

Agency Contract Template for Alabama

Alabama Building Commission July 1, 2004

Page 1 of 2

SAMPLE

AGENCY AGREEMENT

AGREEMENT between

(hereinafter called the “Contractor”

and

(hereinafter called the “Owner”) entered into this day of 20 .

RECITALS

1. Contractor and Owner entered into a Construction Cont ract (hereinafter called

the “Contract”) dated for performance of the work described

therein. A copy of said Contract is attached hereto as Exhibit A.

2. Pursuant to Specification Section , SALES AND USE TAX SAVINGS, of the

Contract, Contractor and Owner desire to enter into an agreement whereby certain

purchases under the Contract can be made through Owner as a means of taking

advantage of Owner’s status of being exempt from sales and use taxes.

AGREEMENT

1. Owner does hereby appoint Contractor as agent for Owner to purchase for, and

in the name of the Owner, all materials, supplies, equipment, and other items which

Contractor and its subcontractors require for performance of the Contract. The

purchase of any materials, supplies, equipment, or other items which are required

for the performance of the Contract are expressly made outside the authority granted

hereunder.

2. Owner will be liable for the payment of all purchases made hereunder.

3. Specification Section , SALES AND USE TAX SAVINGS, of the Contract is

incorporated by reference and made a part of this Agency Agreement establishing

general provisions, procedures, and forms that are applicable to the Contractor’s

performance hereunder.

4. As the Owner’s agent the Contractor will purchase materials, supplies,

equipment, and other items utilizing the specified purchase order forms. For items

so purchased, vendors will render statements and invoices to the Contractor as the

Owner’s agent. The Contractor will review a nd approve the invoices, as appropriate,

and forward the invoices to Owner for payment. By approving and forwarding such

invoices to the Owner for payment, the Contractor certifies the validity and accuracy

of the invoices and that, to the best of his knowledge, the items covered by the

invoices are of the quality and quantity specified in the Contract.

Alabama Building Commission July 1, 2004

Page 2 of 2

Name of Firm Name of Owner

5. The Contract provides that the Contractor will perform the work under the

Contract for the Contract sum of $ , which includes the costs

of all materials, supplies, equipment, and other items to be purchased hereunder, plus

sales and use taxes thereon. Payments made by Owner to vendors pursuant to this

Agency Agreement shall also constitute payments against the Contract sum of

$ . However, said amount due Contractor under the

Contract shall be reduced by the sum of any savings of sales and use tax and 50

percent of any cash discounts earned on the purchases made hereunder. In the

event that Contractor pays for materials, supplies, equipment, or other items that

should have been purchased and/or paid for by the Owner under this Agency

Agreement, the Owner may, at its discretion, also reduce the said amount due as

Contract sum by the amount of sales tax that was due and or paid.

6. Contractor shall maintain separate accounting records of all transactions carried

out under this Agency Agreement. Such records shall be open to Owner during

normal business hours of Contractor for a period of two (2) years after completion

of the project.

7. The authority granted to Contractor hereunder may be revoked by Owner at

any time upon written notice delivered to Contractor at his offices located at

during normal

business hours.

8. Any costs of administration to be incurred by Contractor in conjunction with this

Agency Agreement are included in the Contract sum cited in Article 5 above.

CONTRACTOR OWNER

By:

Attest to:

Name and Title Name and Title