Capital Project Information

Instructions for Under $40k Contracts

Agreement Between Contractor and Parish for Construction Projects Under $40,000 (Archdiocese of Chicago, 2016 Edition) Instructions for Parish

This following Contract form was intended to help Parishes of the Archdiocese of Chicago contract for the performance of construction projects under $40,000. Please read these instructions and the Contract in their entirety. To complete the Contract, please use the following steps:

  • Fill out the first page of the Agreement completely and accurately. The first page should be initialed by both the Contractor and Pastor. Please do not leave any spaces blank.

  • If the proposed scope of work cannot fit in the section identified on the opening page, or if there are drawings forming part of this project, you may attach such additions to this Agreement as long as they been reviewed and approved by the Pastor. All such additions must be initialed by both the Contractor and Pastor and should be attached to the Agreement at time of signature.

  • If/when the Contract is acceptable to both the Parish and Contractor, the Pastor and Contractor must sign off on the signature page. The Parish should retain its copy of the Contract and related Contract documents for no less than 10 years.

  • Under $40k AOC Agreement Contractor and Parish (PDF)

Proper Administration of the Agreement:

  • Once the Contract is signed, and before any work begins, please obtain a certificate of insurance from the contractor and review the lower left-hand corner to confirm it names both the Parish and “The Catholic Bishop of Chicago, an Illinois corporation sole and its successors” as additional insured parties.

  • Prior to issuing final payment to the Contractor, the Pastor should review the Work and confirm it is acceptable. In addition, the Parish should ensure it has first received the Contractor’s final application for payment, the Contractor’s sworn statement that all subcontractors have been paid and executed final waivers of lien. See Section 6 of the Contract for a full list of what the Contractor should provide the Parish before final payment.

  • If the Parish determines that the Contract price or any portion thereof should not be paid because of some problem with the Work, we are required under Illinois law to notify the Contractor within 25 days of the Contractor’s application for payment or such application will be deemed approved. Our notice should detail the amount at issue, our reasoning for non-payment and what action the Contractor should take to rectify the matter.

Please Note the Following:

  • Do not let the Contractor start work without a signed Contract.

  • Please ensure you have inserted all agreed upon terms, scopes of work, commencement/substantial completion dates and any other promises made by the Contractor into this Agreement before execution. Once the Contract is fully executed, you will not have the right to unilaterally change the deal, so it is important that everything you expect from the work to be performed is described in sufficient detail.

  • Industry best practices recommend that the Parish avoid payments for services not yet rendered. We do not recommend making down payments or advance payments to contractors. Making advance deposits for materials to be used on the project is acceptable as long as they are accompanied with bill of sale and respective waiver.

  • Please contact the Facilities and Construction (FAC) Department and/or the Office of Legal Services as soon as you determine that a Contractor’s application for payment should be not be paid or in the event of any dispute with the Contractor.