Project Management Agreement

(757) 478-1280

1121 Chipping Court, Virginia Beach, VA 23455








Client _______________________________________________________________________________   Date (1st Mtg): _________________________________________________


Property (Residence) Address _________________________________________________________________________EHI No. ________________________________


This Project Management Agreement is entered into between the Client and EARLY HOME INSPECTION (EHI), a Virginia LLC (the Company or Consultant) including its project managers.


Project Management Type:                    [   ]   PICRA (Property Inspection Contingency Removal Addendum) Satisfaction

                                                                    [   ]   Move-In Preparation

                                                                    [X]   203-k Consultant


Project Manager: _____________________________________________________________________________________________________________________________


WHEREAS, the client, seeks the professional advice of EHI to facilitate repairs, maintenance and/or remodeling at the above property address.


WHEREAS, EHI desires to provide such advice and assistance to the Client under the terms and conditions of this Agreement.


For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:


CONSULTING SERVICES: In consideration of the terms and conditions set forth below, the Client hereby retains EHI as a consultant and technical advisor to perform the consulting services specifically set out in this Agreement, and EHI agrees to render such Services. Such services shall be limited to the Scope described in this agreement.


SCOPE:         For PICRA Satisfaction Consulting –

  • Provide initial estimate of PICRA list costs

  • Meet with contractors or sub-contractors to facilitate quotes

  • Review quotes and necessary submittals (license, bonding, insurance) with Client

  • Help prepare/review contracts for the Client who will be the General Contractor

  • Supply and install a temporary door lock, dead bolt (if necessary) and lock box to facilitate contractor/sub-contractor access to premises

  • Inspect adequacy and quality of contracted work

  • Obtain buyer or original home inspector (must have authority to sign for buyer) approval

  • Facilitate contractor/sub-contractor payments and obtain Lien Waivers


                       For Move-In Preparation Consulting –

  • Provide initial estimate of Client’s work list

  • Meet with contractors or sub-contractors to facilitate quotes

  • Review quotes and necessary submittals (license, bonding, insurance) with Client

  • Help prepare/review contracts for the Client who will be the General Contractor

  • Inspect adequacy and quality (workmanship) of contracted work.

  • Obtain buyer or original home inspector (must have authority to sign for buyer) approval

  • Facilitate contractor/sub-contractor payments and obtain Lien Waivers


                       For 203-k Consulting {per rules of the FHA Single Family Housing Policy Handbook (SF Handbook) 4000.1} –

  • Complete a feasibility study

  • Do a work write-up

  • Do draw inspections

  • Do change orders 

  • Do any necessary re-inspections


The parties agree that circumstances arising during the term of this contract may require changes to the services described above. The parties agree to negotiate any such changes and EHI’s remuneration for them in good faith, set item in writing and incorporate them into this contract as an attachment.


WORKMANSHIP DEFINITION: All workmanship shall conform to the guidelines found in the publication Residential Construction Performance Guidelines for Professional Builders and Remodelers, Fourth Edition 2011 National Association of Home Builders of the United States. If an item is not covered in that publication, standard industry practice shall govern.


TERM OF CONTRACT: This Agreement will become effective upon its execution and will continue until terminated in accordance with the provisions of this Agreement.


PROPERTY ACCESSIBILITY: It is the responsibility of the Client to make sure that the property is accessible to all contractors and sub-contractors as well as EHI during weekday normal working hours (8 am to 5 pm) and sometimes on Saturdays. Client represents and assures that all necessary approvals have been secured for entry onto the premises. Client further agrees to defend, indemnify and hold harmless EHI from demands or claims alleging a trespass upon the premises. As well, it is the client’s responsibility to ensure that all utilities are on.



(a)  No Employment Relationship

It is the express intention of the parties that Consultant is an independent contractor and not an employee, agent, joint venture member or partner of the Client.  Nothing in this Agreement shall in any way be interpreted or construed as creating or establishing the relationship of employer and employee between Consultant or any employee or agent of the Consultant.  Both parties acknowledge that Consultant is not an employee for state or federal tax purposes.  As an independent contractor, Consultant is not entitled to any employee benefits of/from the Client.  Consultant shall retain the right to perform services for others during the term of this Agreement so long as these services are not inconsistent or incompatible with Consultant’s obligations under this Agreement.


(b)  No Authority to Bind Client

Consultant has no authority to act, to enter into any contract, or to incur any liability on behalf of the Client.


(c)  Method of Performing Services

Consultant will determine the method, details and means of performing the above-described services. Client shall have no right to, and shall not, control the manner or determine the method of accomplishing Contractor’s services.  Contractor agrees to exercise the highest degree of professionalism and to utilize his/her expertise in providing such services.


(d)  Tools and Instrumentalities

Consultant will supply all tools and instrumentalities required to perform the Services.


(e)   State and Federal Taxes

As an independent contractor, Consultant is responsible for paying all required state and federal taxes and making contributions to the government-sponsored benefit programs.  In particular:

  • Client will not withhold FICA (Social Security) from Consultant’s payments;

  • Client will not make state or federal unemployment insurance contributions on Consultant’s behalf;             

  • Client will not withhold state or federal income tax from payment to Consultant; and

  • Client will not obtain workers’ compensation insurance on behalf of Consultant.

Consultant agrees to accept exclusive liability for complying with all applicable state and federal laws governing self-employed individuals including obligations such as payment of quarterly taxes, social security, disability and other contributions based on the fees paid to the Consultant under this Agreement. Consultant agrees to indemnify and hold Client harmless to the extent Client becomes obligated to pay any of the above taxes or incurs any similar liabilities.


(f)  Expenses

Consultant shall be responsible for all costs and expenses incident to the performance of Services for Client, including but not limited to, all costs of equipment provided by Consultant and all fees, fines, licenses, bonds or taxes required of or imposed against Consultant. Client shall be responsible for no expenses incurred by Consultant in performing Services for Client.


(g)  Indemnities

Consultant will indemnify Client and hold it harmless from and against, and at Client’s option defend against, all claims, damages, losses and expenses as they are accrued, including court costs and reasonable fees and expenses of attorneys, expert witnesses and other professionals, arising out of or resulting from:

(i)  any action by a third party against Client that is based on any claim that any of Consultant’s Services or their results, or Client’s use of their results, infringe a patent, copyright or other proprietary right or incorporates any misappropriated trade secrets;

(ii)  any action by a third party that is based on any negligent act or omission or willful conduct of Consultant or employees or contractors of Consultant and which results in: 

  • any bodily injury, sickness, disease or death;

  • any injury or destruction to tangible or intangible property (including computer programs and data) or any loss of use resulting therefrom;

  • or any violation of any statute, ordinance, or regulation; and

(iii)  any determination by a court or agency that Consultant is not an independent contractor.



Consultant certifies that s/he has no outstanding agreement or obligation that is in conflict with any of the provisions of this Agreement, or that would preclude Consultant from complying with the provisions hereof, and further certifies that Consultant will not enter into any such conflicting agreement during the term of this Agreement.  Moreover, Consultant represents and warrants that Consultant will not: 

  • use, rely upon or obtain any benefit from any Tainted Information (as hereinafter defined) in rendering Services to the Client

  • provide or disclose to Client any information which Consultant believes or has reason to believe may be Tainted Information; or

  • induce any other person to use, rely upon or disclose to Client Tainted Information in rendering Services to Client. 

“Tainted Information” shall mean any trade secret or other nonpublic technical or business information of any kind of a third party, including but not limited to designs, computer programs, techniques, interfaces, protocols, file structures, marketing plans, product plans, business strategies, financial information, forecasts, personnel information, customer lists, or information relating to research, design, development, manufacturing or pricing, which such third party has not intentionally made generally known or disclosed through official announcement of disclosure.


ENTIRE AGREEMENT & SEVERABILITY: This Agreement contains the entire agreement between the Client and the Company. This document supersedes any and all representations, both oral and written, among the parties. This Agreement may be modified, altered or amended only in writing and signed by both the parties. Any provision of this Agreement which proves to be invalid, void or illegal shall in no way affect, impair or invalidate any other provision of this Agreement and all such other provisions shall remain in full force and effect.


NO WARRANTY OR GUARANTEE: Any inspections, studies, write-ups or reports are not intended; nor shall they be used or treated by the Client or anyone else, as a guarantee or warranty expressed or implied, regarding the adequacy, performance or condition of any aspect of the Residence. The Client acknowledges and agrees that the Company/Consultant is not an insurer of any inspected or non-inspected conditions at the Residence. The Client acknowledges that the Company/Consultant has explained that home warranty plans are available which offer valuable protection against certain unforeseen repair expenses.


LATENT AND FUTURE DEFECTS: Any Inspection, study, write-up or report is not a technically exhaustive one and cannot be considered an evaluation of every aspect of the Residence. The Client acknowledges and agrees that any Inspection, study, write-up or report will not reveal every existing deficiency and future condition affecting the Residence. The Company/Consultant is not responsible for the non-discovery of any latent defects in the Residence, or any problems that may occur or become evident after the date of any Inspection, study, write-up or report. Latent defects in the Residence include, but are not limited, to: cracking, leaking, surface dislocations, or landslides resulting from, without limitation, water leaks, land subsistence, or other geological problems. The Company/Consultant is not responsible for future defects, failures and repairs. The Company/Consultant shall have a reasonable opportunity, weather permitting, to access the Residence to evaluate any situation prior to any corrective action being taken by the CLIENT. However, immediate "first aid" should be undertaken by the CLIENT as needed.


FEE:  [   ]   PICRA Satisfaction                                   $525 Minimum    Plus Visits > 7 @ $75 Each        $1,275 Maximum

         [   ]   Move-In Preparation                               $525 Minimum    Plus Visits > 7 @ $75 Each        $1,275 Maximum

         [X]   203-k Consultant                                     $100                       Feasibility Study

                                                                                     $400 - $1,000       Work Write-Up:               

   $400         Repairs < $7,500                                            

   $500         Repairs from $7501 to $15,000                  

   $600         Repairs from $15,001 to $30,000              

   $700         Repairs from $30,001 to $50,000              

   $800         Repairs from $50,001 to $75,000              

   $900         Repairs from $75,001 to $100,000            

   $1,000      Repairs > $100,001                                       

                                                                                    $175                       Draw Inspection Each

                                                                                    $100                       Change Order

                                                                                    $50                         Re-Inspection (Client should charge-back contractor)

          [   ]   IRS Rate for Mileage Greater Than 30 Round Trip:

2017 = $0.535/mile

This Property = $ ______________/Trip                                            BACK TO PAGE TOP


If payment is not received more than 7 days after the date of inspection, there will be a late payment penalty in the amount of $50.00, and will accrue interest at the rate 1.5% monthly (18% per annum) from the date of delinquency until paid. The Client also agrees to pay all attorney fees and associated costs for the Company to collect the amount due. Remedy for nonpayment shall be adjudicated in small claims court. Deposit: $__________________ Credit:____$ XXXX____; Due 1st Mtg. = $ XXXX


LIMITS OF LIABILITY: The CLIENT agrees that the limit of liability is the fee amount charged for Consultant’s services, and is unrelated to the costs of repairing or correcting any defects in the Residence. The Company/Consultant assumes no liability for the cost of repairing or replacing any reported or unreported defect or deficiency or listed items for remodel in the Residence, either current or arising in the future, or for any property damage, consequential damage, or bodily injury of any nature. Any Inspection, study, write-up or report are conducted and prepared for the sole, confidential and exclusive use of the Client. Consequential and third party damages are excluded; and the client indemnifies the Company/Consultant from all such claims.


Even though an inspection, study, write-up or report may have been a material factor in the client's decision to purchase the residence, the client agrees that should the company/consultant be found liable for any loss or damages resulting from a failure to perform any of the company's/consultant’s obligations, including but not limited to negligence, breach of contract, or any other legal theory or cause of action, the liability of the company shall be limited solely to fee amount charged for services rendered.


COMPLAINTS (Regarding any Inspection, study, write-up or report) - Limitation of Actions: If you believe you have a claim against us, you agree to provide us with the following: (1) written notification of adverse conditions within seven days of discovery; and (2) immediate access to the premises. Failure to comply with these conditions releases us from liability. As well, all claims and legal action regarding or arising from the property condition and any Inspection, study, write-up or report must be filed and initiated by Client no later than one (1) year following the date of the Report. A failure to do so will result in a loss of any and all legal rights. The client waives any rights to any statutes of limitation greater than one year.


MEDIATION and/or ARBITRATION CLAUSE: Providing we are BBB Accredited and in good standing, Client and EHI agree to submit any dispute arising under this agreement, with the exception of disputes alleging criminal or statutory violations, to the Better Business Bureau of Greater Hampton Roads to be resolved through mediation and/or binding arbitration. Mediators are volunteers and are Supreme Court Certified. Decisions reached in mediation are mutually agreed upon between disputing parties. In accordance with the BBB Rules of Binding Arbitration, the Arbitrator’s decision will be final and binding on both Client and EHI, and judgment on the decision may be entered in any court having jurisdiction. This Agreement to Arbitrate affects important legal rights. Neither Client nor EHI will be able to go to court for disputes that must be arbitrated. Further information about BBB arbitration may be obtained by contacting the BBB at 757-531-9400.


Should the BBB decline arbitration for any reason, any controversy or claim arising out of, or relating to this Agreement, or breach thereof, either directly or indirectly shall be settled by binding arbitration administered by the American Arbitration Association in the state of Virginia using its Commercial Arbitration Rules. Any decision and judgment award rendered may be entered in any court having jurisdiction hereto. In this scenario, each party agrees to pay its own costs of arbitration. (This excludes payment of the arbiter's fees which are to be paid by the client.)


CODE COMPLIANCE: It is understood that the Company’s consulting services do not include a review for compliance with regulatory requirements (Virginia Uniform Statewide Building Code or other codes, regulations, laws, ordinances, etc.).


WALK-THROUGH INSPECTION BY CLIENT: The Client is advised that conditions at the Residence may change between the date of any final Inspection and the date on which the Client closes on the sale/purchase of the Residence. Consequently, the Client is advised and encouraged to personally conduct, or to arrange for an independent third party to conduct a pre-closing "Walk-Through Inspection" of the Residence. This pre-closing Walk-Through Inspection should include, but not be limited to, the heating/cooling systems and the landscape sprinkler system - weather permitting.


HOLD HARMLESS AGREEMENT: CLIENT agrees to hold any and all real estate agents involved in the sale/purchase of the property harmless and keep them exonerated from all loss, damage, liability or expense occasioned or claimed by reasons of acts or neglects of the COMPANY/CONSULTANT or his employees or visitors or of independent contractors engaged or paid by the COMPANY/CONSULTANT for additional services for the subject home.


Also, CLIENT agrees to hold the COMPANY/CONSULTANT harmless and keep them exonerated from all loss, damage, liability or expense occasioned or claimed by reasons of referrals to third-parties. The COMPANY/CONSULTANT does not warrant or guarantee the work of any third party.


RULE OF CONSTRUCTION: No rule of construction requiring interpretation against the drafting Party hereof shall apply in the interpretation of this Agreement.


NO CONFLICT OF INTEREST: EHI certifies that their consultants have no interest, present or contemplated, in this property or its improvement and no benefits derived from its sale or improvements. To the best of our knowledge and belief, all statements and information are true and correct.


REFERRALS: EHI will occasionally refer other companies to the client. While EHI has no financial interest in those companies, EHI does have a working relationship with some beyond just a referral. EHI periodically hires others to assist in inspections/consultations or to provide services to complement EHI offerings. EHI’s business relationship with companies they hire is strictly to aid EHI’s clients. The following companies work closely with EHI to achieve EHI’s clients’ needs: Pro-Tect Incorporated, Walker-Baldwin Properties, Sadler Building Corporation, Jodat Inspections.


Other companies may be referred; however, EHI’s experience with them may be limited. Clients should do their own due diligence on all referrals. EHI makes no expressed or implied warranties to any referral’s capabilities, workmanship standards or quality.


WAIVER: No waiver by the Client of any breach of this Agreement shall be a waiver of any preceding or succeeding breach. No waiver by the Client of any right under this Agreement shall be construed as a waiver of any other right.

CLIENT USE ONLY: Any Inspection, study, write-up or report conducted under this agreement are for your use only. You give us permission to discuss our observations with real estate agents, owners, repair persons, or other interested parties. You will be the sole owner of any Inspection, study, write-up or report and all rights to them. We are not responsible for use or misinterpretation by third parties, and third parties who rely on it in any way do so at their own risk and release us (including employees and business entities) from any liability whatsoever. If you or any person acting on your behalf provide any inspection, study, write-up or report done by EHI to a third party who then sues you and/or us, you release us for any liability and agree to pay our costs and legal fees in defending any action naming us. Our inspections, studies, write-ups or reports are in no way a guarantee or warranty, express or implied, regarding the future use, operability, habitability or suitability of the home/building or its components. We disclaim all warranties, express or implied, to the fullest extent allowed by law.


ACCEPTANCE OF TERMS AND CONDITIONS: By signing this contract via personal delivery, email, electronic acceptance or USPS, you are agreeing to all terms and conditions as noted in this contract. 


DISCLOSURES: I/we authorize the distribution of any Inspection, study, write-up or report to the following:

[  ]   Buyer/s

[  ]   Buyer’s Real Estate Agent/s

[  ]   Seller/s

[  ]   Seller’s Real Estate Agent/s

[  ]   PICRA Satisfaction Agent/Company

[  ]   Move-In Preparation Agent/Company

[  ]   Contractor or Sub-Contractors

[  ]   Originating Home Inspector

[  ]   Other __________________________



ASSIGNMENT: You may not assign this Agreement.


TERMINATION OF AGREEMENT: Either party may terminate this Agreement on 7 days written notice to the other party.


SIGNING: If there is more than one Client, whether or not present, you are signing on behalf of all of them, and you represent that you are authorized to do so.






CONSULTANT: Early Home Inspection, LLC __________________________________________________________   Date __________________________________

                                                                            Consultant – Timothy J. Early, Virginia DPOR License Number 3380000765 NRS

                                                                                                                                 Virginia Contractor License Number 2705048550

                                                                                                                                 203-k Consultant P1882



CLIENT:______________________________________________________________________________________________   Date __________________________________


CO-CLIENT:__________________________________________________________________________________________   Date ___________________________________


MAILING ADDRESS: ___________________________________________________________________________________________________________________________


E-MAIL ADDRESSES: __________________________________________________________________________________________________________________________


PHONE NUMBERS:                   Home -     ________________________________________

                                                     Work -      ________________________________________

                                                     Mobile -    ________________________________________


Payment Is Due Upon Receipt

Cash, Check, Debit or Credit Cards

(Visa, MC, Discover, Am. Express)

Money Order, Apple Pay, Samsung Pay or Google Pay

Please make check payable to: Early Home Inspection