Ordinance No. 9,814ORDINANCE NO. 9814
® AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, AUTHORIZING AND DIRECTING THE CITY MANAGER AND
CITY CLERK TO EXECUTE AND ATTEST TO A CONTRACT WITH DAN'S
PLUMBING, INC., FOR THE HILL TERRACE AND SHRECK WATER
SERVICE RELOCATION PROJECT; AUTHORIZING PAYMENT OF THE
SUM OF FORTY -FOUR THOUSAND NINE HUNDRED NINETY -NINE AND
92/100 DOLLARS ($44,999.92); MAKING OTHER PROVISIONS RELATED
THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
WHEREAS, the City Council of the City of Baytown did authorize the City Engineer to
advertise for bids for the Hill Terrace and Shreck Water Service Relocation Project to be
received on Friday, April 2, 2004; and
WHEREAS, notice to bidders as to the time and place, when and where the bids would
be publicly opened and read aloud was published pursuant to provisions of Texas Local
Government Code Annotated § 252.041; and
WHEREAS, all bids were opened and publicly read at City Hall at 2:00 o'clock p.m.,
Friday, April 2, 2004, as per published notice to bidders; NOW THEREFORE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City Council of the City of Baytown hereby accepts the bid of
Dan's Plumbing, Inc., for the Hill Terrace and Shreck Water Service Relocation Project,
according to the plans and specifications set forth by the City's Engineer for the sum of FORTY -
FOUR THOUSAND NINE HUNDRED NINETY -NINE AND 92/100 DOLLARS ($44,999.92);
and authorizes payment thereof, and the City Manager and the City Clerk of the City are hereby
authorized and directed to execute and attest to a contract with Dan's Plumbing, Inc., for the
above - described work, said contract containing the plans, specifications, and requirements of the
City's Engineer and appropriate bond requirements in accordance with the provisions of Texas
Government Code, Chapter 2253.
Section 2: That pursuant to the provisions of Texas Local Government Code
Annotated § 252.048, the City Manager is hereby granted general authority to approve any
change order involving a decrease or an increase in costs of TWENTY -FIVE THOUSAND
AND NO/ 100 DOLLARS ($25,000.00) or less, subject to the provision that the original contract
price may not be increased by more than twenty -five percent (25 %) or decreased by more than
twenty-five percent (25 %) without the consent of the contractor to such decrease.
Section 3: This ordinance shall take effect immediately from and after its passage by
the City Council of the City of Baytown.
is
• INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the
City of Baytown this the 10th day of June, 2004.
ATTEST:
GAAY" SPA,TH, City Clerk
APPROVED AS TO FORM:
4dNACIO RAMI EZ, SW, City Attorney
0 F:Xaren\Files\City Council\ Ordinances\ DansP lunrbinglncAwardHillTcrrace.doc
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CALVIN M[JNDINGER, Mayor
CITY OF BAYTOWN
STANDARD FORM OF AGREEMENT
BETWEEN OWNER AND CONTRACTOR
THIS AGREEMENT is entered into by and between the City of Baytown (the
OWNER") and c,.P the "CONTRACTOR") for the Water
Service Relocation Project
1. DEFINITIONS OF TERMS
101 CALENDAR DAY
The term calendar day means any day of the week or month, no days being
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excepted
1 02 CITY or OWNER
1 Whenever the word City or Owner is used, it shall mean and be understood as
referring to the City of Baytown, Texas, its officers, agents, representatives,
and employees
1 03 CONTRACT DOCUMENTS
The Contract Documents shall consist of the Signed Standard Form of
Agreement, Performance and Payment Bonds (when required), Addenda,
Plans, Specifications, Proposal, Notice to Bidders, Instructions to Bidders,
Scope of Work and all modifications thereof incorporated in any of the
documents before the execution of the Agreement.
104 CONTRACTOR
1 Whenever the word CONTRACTOR is used,it shall mean the person,persons,
partnership, or corporation who has agreed to perform the work embraced in
these Contract Documents, including any and all Specifications, all
Performance and Payment Bonds, and CONTRACTOR's Bid
105 EXTRA WORK
The term Extra Work as used in this contract shall be understood to mean and
include all work that may be required by the OWNER or the OWNER'S
REPRESENTATIVE if approved by the OWNER in writing prior to the
work being done by the CONTRACTOR to accomplish any change,alteration
or addition to the plans and specifications or any work order issued under this
Contract if the work is not reasonably implied by the specifications as
determined by the OWNER
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1.06 FINAL COMPLETION
The termfinal completion as the same pertains to the plans and specifications
or a work order shall mean that all work has been completed in accordance
with the plans and specifications or work order, all such work has been
inspected and satisfactorily completed as determined by the OWNER'S
REPRESENTATIVE, all payments to matenalmen and subcontractors have
Ibeen made for the work specified in the plans and specifications or work
order, all documentation and warranties, if any, have been subrrutted and all
closeout documents have been executed and approved by the OWNER'S
REPRESENTATIVE and the OWNER
107 INTERPRETATION OF PHRASES
Whenever the words directed,permitted, designated,required, cunsidered necessary,
prescribed, or words of like import are used, it is understood that the direction,
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requirement, permission, order, designation, or prescription of the OWNER is
intended Similarly, the words approved, acceptable, satisfactory, or words of like
import shall mean approved by, accepted by or satisfactory to OWNER
1 08 NONCONFORMING WORK
The tern nonconforming work shall mean the work or any part thereof rejected by the
OWNER'S REPRESENTATIVE or the OWNER as not conforming to the Contract
Documents
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l 09 OWNER'S REPRESENTATIVE
Whenever the words OWNER'S RF.PRESENTAT(TE or REPRESENTATIVE are
used, they shall mean and be understood as referring to the City Engineer or his
designee or the professional engineer designated by the City Council under whose
supervision the Specifications were prepared and who is hereby authorized to act for
the OWNER and inspect and issue instructions, but shall not directly supervise the
CONTRACTOR or persons acting on behalf of the CONTRACTOR.
110 PARTIES.
1 The term parties shall include the OWNER and the CONTRACTOR
111 PROJECT
The term project as used in this agreement shall be understood to mean and include all
that is required to obtain a final product that is acceptable to the OWNER The tern
work shall have like meaning This project includes all work required as outlined in the
Scope of Work If specified in the Scope of Work, the project shall be identified in
separate work orders issued by the Owner's Representative and may be required to be
performed after normal working hours if so stated by the OWNER in the work order
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112 SUBCONTRACTOR
The term subcontractor, as employed herein,includes only those hired by and having a
direct contract with the CONTRACTOR for performance of any work or service
relating in any way to the project The OWNER shall have no responsibility to any
subcontractor employed by CONTRACTOR for performance of work on the project
contemplated by this Agreement,and any said subcontractors shall look exclusively to
the CONTRACTOR for any payments due the subcontractor
1 13 WORK
The term work as used herein shall mean and include all that is required to obtain a
final product acceptable to the OWNER. The term project shall have like meaning.
This project includes all work required as outlined in the Scope of Work If specified
1 in the Scope of Work If specified in the Scope of Work, the work required herein
shall be specified in separate work orders issued by the Owner's Representative and
may be required to be performed after normal working hours if so stated by the
OWNER in the work order.
1 14 WORK ORDER
If specified in the Scope of Work, this contract shall be comprised of separate work
orders, which shall cover the OWNER'S annual project needs as contemplated at the
time of the execution of this Agreement, including emergency repairs. Each work
order shall be fully and finally completed within thirty (30) calendar days from its
issuance, unless otherwise expressly stated in the work order.
2.CONTRACT DOCUMENTS.
201 COMPLEMENTARY DOCUMENTS
The Contract Documents comprise the entire agreement between the OWNER and
the CONTRACTOR concerning the project The Contract Documents are
complementary, and what is called for by any one shall be as binding as if called for by
all.
202 PRIORITY OF DOCUMENTS
In case of conflict between any of the Contract Documents, priority of interpretation
shall be in the following order
2 02 01 Addenda to this Agreement,
202.02 This Signed Standard Form of Agreement,
2 02 03 Scope of Work,
2.02.04 Instructions to Bidders,
2 02 05 Notice to Bidders,
2 02 06 Plans,
2.0207 Specifications,
2 02 08 Performance and Payment Bonds, and
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2 02 09 Proposal
203 AMENDING CONTRACT DOCUMENTS
No amendments to this Agreement shall be effective and binding until it is reduced to
writing and signed by the duly authorized representatives of both parties.
204 ACCESSIBILITY OF THE CONTRACT DOCUMENTS
Where applicable, the CONTRACTOR will be furnished two (2) sets of Contract
Documents for its use during construction Specifications provided for use during
construction shall be furnished directly to the CONTRACTOR only
205 SPECIFICATIONS.
2.05.01 The CONTRACTOR shall distribute copies of the specifications to
suppliers and subcontractors as necessary. The CONTRACTOR shall
keep at least one copy of the specifications accessible at the work site
with the latest revisions noted thereon
2 05 02 All specifications and copies thereof furnished by the OWNER shall
not be reused on other work, and, with the exception of the signed
contract sets, are to be returned to OWNER on request, at the
completion of the work. Nothing herein shall be construed as granting
the CONTRACTOR, any subcontractor or supplier or other person or
organization performing or furnishing any of the work pursuant to this
Agreement any title or ownership rights in any of the drawings,
specifications or other documents(or copies thereof)prepared by the
OWNER'S REPRESENTATIVE.
3.OWNER'S REPRESENTATIVE.
301 RESPONSIBILITY AND AUTHORITY
I The project shall be administered by the OWNER'S REPRESENTATIVE, which
shall assume all duties and responsibilities and have the rights and authority assigned
either to it or the OWNER in the Contract Documents, including, but not limited to,
the following
3 01 01 The OWNER'S REPRESENTATIVE shall periodically review and
shall inspect the work ofthe CONTRACTOR as described in Section
302
3 01 02 The OWNER'S REPRESENTATIVE shall appoint from time to time
such subordinate supervisors or inspectors as the OWNER'S
REPRESENTATIVE may deem proper to inspect the work
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performed under this Agreement and ensure that said work is
performed in accordance with these Contract Documents
3 01 03 The CONTRACTOR shall regard and obey the directions and
instructions of OWNER'S REPRESENTATIVE, any subordinate
supervisors or inspectors appointed by the OWNER'S
REPRESENTATIVE provided such directions and instructions are
consistent with the obligations of this Agreement
3 01 04 Should the CONTRACTOR object to any orders by the OWNER'S
REPRESENTATIVE or any subordinate supervisor or inspector
appointed by the OWNER'S REPRESENTATIVE, the
CONTRACTOR may within two (2) calendar days from receipt of
such order make written appeal to the OWNER'S City Manager for
his decision.
3.02 INSPECTIONS The OWNER'S REPRESENTATIVE shall make visits to the site
at intervals appropriate to the various stages of construction, appropriate to verify
1 CONTRACTOR'S payment requests, and as OWNER'S REPRESENTATIVE
and/or OWNER deems necessary, in order to observe as an experienced and qualified
design professional the progress and quality of the Work Such visits and
1 observations by OWNER'S REPRESENTATIVE are not intended to be exhaustive
or to extend to every aspect of CONTRACTOR'S work in progress or to involve
detailed inspections of CONTRACTOR'S work in progress beyond the
responsibilities specifically assigned to OWNER'S REPRESENTATIVE by the
OWNER. Based on information obtained during such visits and such observations,
OWNER'S REPRESENTATIVE will determine if CONTRACTOR'S work is
proceeding in accordance with the Contract Documents, and OWNER'S
REPRESENTATIVE shall keep OWNER informed of the progress of the Work
303 LINES AND GRADES. Unless otherwise specified, all lines and grades, including
horizontal and vertical control data points to establish baselines and benchmarks for
locating the Work, shall be furnished by the OWNER'S REPRESENTATIVE,
however, construction staking shall be performed by the CONTRACTOR. Whenever
necessary, construction work shall be suspended to permit performance of this work,
and the CONTRACTOR shall be allowed no extra compensation therefor. The
CONTRACTOR shall give the OWNER'S REPRESENTATIVE ample notice ofthe
time and place where lines and grades will be needed. All stakes,marks, etc , shall be
1 carefully preserved by the CONTRACTOR, and in case of careless destruction or
removal by him or his employees, such stakes, marks, etc., shall be replaced at the
CONTRACTOR'S expense.
304 PAYMENTS FOR WORK
The OWNER'S REPRESENTATIVE shall review CONTRACTOR'S applications
for payment and supporting data, determine the amount owed to the CONTRACTOR
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and approve, in writing, payment to CONTRACTOR in such amounts, such approval
of payment to CONTRACTOR constitutes a representation to the OWNER of
OWNER'S REPRESENTATIVE'S professional judgment that the work has
progressed to the point indicated to the best of his knowledge, information and behet
but such approval of an application for payment to CONTRACTOR shall not be
deemed as a representation by OWNER'S REPRESENTATIVE that OWNER'S
REPRESENTATIVE has made any examination to determine how or for what
purpose CONTRACTOR has used the monies paid on account of the Contract price.
4.COMMUNICATIONS.
401 The CONTRACTOR shall forward all communications, written or oral, to the
OWNER through the OWNER'S REPRESENTATIVE
4.02 WRITTEN NOTICE
Unless otherwise specified,written notice shall be deemed to have been duly served if
delivered in person to the individual or to a member of the firm or to an officer of the
I corporation for whom it is intended, or if delivered at or sent by telecopier, overnight
or facsimile transmission or if delivered or sent by certified or registered mail to the
last business address as indicated herein Each party will have the right to change its
business address by giving at least thirty (30) calendar days' written notice to the
other party of such change. Notice given by mail shall be deemed given three (3)
calendar days after the date of the mailing thereof
5. AWARD OF CONTRACT.
501 On or before the execution of this Agreement, the CONTRACTOR shall deliver to
the OWNER all documents, bonds, and certificates of insurance required herein.
502 The CONTRACTOR shall be prepared to perform the work in the most expedient
manner possible due to the commencement of the time for final completion
503 The work shall be commenced within ten(10)calendar days of the date specified in
the notice to proceed or work order In the event of any dispute, the records of the
OWNER shall be conclusive evidence as to the commencement date
504 Time is of the essence in this Agreement
6. WORK.
601 The CONTRACTOR shall complete and be responsible for all work as specified,
indicated, or described in the Contract Documents The CONTRACTOR shall
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complete and be responsible for all Extra Work as described in this Agreement. All
work done and all materials furnished shall be in strict conformity with this
Agreement,the Specifications,and other Contract Documents. In the event that
the CONTRACTOR fads to perform the work as required for final completion, the
OWNER may contract with a third party to complete the work and the
CONTRACTOR shall assume and pay the costs of the performance of the work
specified or contemplated by the Contract Documents
602 Unless otherwise stipulated, the CONTRACTOR shall provide and pay for all
materials, supplies, machinery, equipment,tools, superintendents,laborers,insurance,
fuel,transportation, and all other facilities and utilities necessary for the execution and
completion of the work specified or contemplated by the Contract Documents
603 PERMITS, FEES AND LEGAL COMPLIANCE.
6 03 01 The CONTRACTOR shall secure and pay all permits, fees, licenses,
and inspections necessary for the proper execution and completion of
the work. The CONTRACTOR will not, however,be required to pay
1 for any permit fees for permits to be issued by the City of Baytown,
which will be waived in conjunction with tins Agreement.
6 03 02 The CONTRACTOR shall give all notices required by law and comply
with all laws, ordinances, regulations, codes, rules and lawful orders
of all public authorities bearing on the performance of the work
604 TAXES. The OWNER qualifies for exemption from state and local sales tax
pursuant to the provisions of Article 20 4(F)of the Texas Limited Sales, Excise and
Use Tax Act. However, if any taxes are applicable to the Work,the CONTRACTOR
shall pay sales, consumer, use and similar taxes as legally required
605 SHOP DRAWINGS The CONTRACTOR shall submit to the OWNER'S
REPRESENTATIVE,with such promptness as to cause no delay in his own work or
in that of any other contractor, four checked copies, unless otherwise specified, of all
shop and/or setting drawings and schedules required for the work of the various
trades, and the OWNER'S REPRESENTATIVE shall pass upon them with
1 reasonable promptness, making desired corrections The CONTRACTOR shall make
any corrections required by the OWNER'S REPRESENTATIVE, file with him two
corrected copies and furnish such other copies as may be needed The OWNER'S
REPRESENTATIVE'S approval of such drawings or schedules shall not relieve the
CONTRACTOR from responsibility for deviations from drawings or specifications,
unless he has in writing called the OWNER'S REPRESENTATIVE'S attention to
such deviations at the time of submission, nor shall It relieve him from responsibility
for errors of any sort in shop drawings or schedules It shall be the
CONTRACTOR'S responsibility to fully and completely review all shop drawings to
ascertain their effect on his ability to perform the required contract work in
accordance with the plans and specifications and within the contract time
Such review by the OWNER'S REPRESENTATIVE shall be for the sole purpose of
determining the sufficiency of said drawings or schedules to result in finished
improvements in conformity with the plans and specifications, and shall not relieve the
CONTRACTOR of his duty as an independent contractor as previously set forth, it
being expressly understood and agreed that the OWNER'S REPRESENTATIVE
does not assume any duty to pass upon the propriety or adequacy of such drawings or
schedules, or any means or methods reflected thereby, in relation to the safety of
either person or property during CONTRACTOR'S performance hereunder
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7.TIME: COMPLETION DATES, EXTENSIONS, DELAYS.
7.01 The date of beginning and the date for final completion of work as specified in this
Agreement are essential conditions of this Agreement
7 02 The work will commence within ten(10)calendar days of the issuance of a notice to
1 proceed or a work order, whichever is applicable, and will be completed in full within
thirty(45)calendar days from the date so specified unless a different amount oftime
is authorized in writing by the OWNER In the event of any dispute, the records of
the OWNER shall be conclusive evidence as to the date specified on the notice to
proceed or work order
7.03 EXTENSIONS.
7 03 01 The CONTRACTOR has submitted its bid in full recognition of the
time required for the completion of this project taking into
consideration all factors, including, but not limited to, the average
climatic range and industry conditions
7 03 02 The CONTRACTOR has considered the liquidated damage provision,
and understands and agrees that it shall not be entitled to, nor will it
request an extension of time for final completion under this
Agreement, except if the work has been delayed by an act or neglect
of the other contractors, if any, employed by the OWNER or by
changes ordered in the work, or reductions thereto in writing.
7 03 03 Within seven (7) calendar days of any act or incident that the
CONTRACTOR reasonably believes may justify an extension of time
for final completion, the CONTRACTOR may apply in writing for an
extension of such time, submitting therewith all written justification as
may be required by OWNER. Thereafter, the OWNER'S
REPRESENTATIVE,within seven(7)calendar days after receipt of a
Iwritten request for an extension of time from the CONTRACTOR,
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which is supported by all requested documentation, shall then grant or
deny such written request.
7 04 DELAYS
7 04 01 The CONTRACTOR, in undertaking to complete the work within the
time herein fixed,has taken into consideration and made allowance for
all hindrances and delays incident to such work,whether growing out
of delays in securing material or workmen or weather or otherwise
7 04 02 No charge whatsoever shall be made by the CONTRACTOR for
hindrances or delays from any cause whatever, except where the work
is stopped by order of the OWNER, during the progress of any
portion of the work contemplated by the specifications, but the
OWNER'S REPRESENTATIVE may grant an extension of time for
1 the completion of the work, provided the OWNER is satisfied that
such delays or hindrances were due to the extraordinary causes or to
the acts of omission or commission by the OWNER
7.0403 It is agreed that the granting of such extensions of time shall in no
instance exceed the time actually lost by the CONTRACTOR for
reason of such causes, provided that the CONTRACTOR shall give
OWNER immediate notice in writing of the cause of the detention or
delay
7 04 04 In case the work is stop ped by an act of the OWNER, then the
expenses of the same, as determined by the OWNER'S
REPRESENTATIVE, shall be paid by the OWNER to the
CONTRACTOR
705 FINAL COMPLETION. The CONTRACTOR shall notify the OWNER'S
REPRESENTATIVE and OWNER when the CONTRACTOR believes that the work
for each change is finally completed as defined in section 1 06 herein If the
OWNER'S REPRESENTATIVE accepts the project as finally completed, the
CONTRACTOR shall be so notified and a certificate of final completion, as provided
herein, shall be issued Thereafter,the OWNER shall pay the balance due,if any and
less any retainage, which shall be held for a period of thirty(30) calendar days after
final completion At the expiration of the thirty (30) calender day period, the
OWNER'S REPRESENTATIVE may release any unclaimed retainage
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8.PAYMENT.
801 PAYMENT AMOUNT The CONTRACTOR agrees to perform the work for all of
the work under this Agreement and the OWNER agrees to pay the CONTRACTOR
based upon the unit prices enumerated in the OWNER'S Invitation to Bid,the total of
which shall not exceed the total amount bid, for the completed and accepted work as
set forth and adjusted in accordance with the terms of this Agreement.
802 PROCEDURE FOR PROGRESS PAYMENTS. The Contractor shall submit
applications to the Owner's Representative for progress payments as provided for
herein no more often than once a month Application for payment will be processed by
the OWNER'S REPRESENTATIVE
8 02 01 Subject to the terms of this paragraph and the other provision of this
Agreement, the OWNER shall make progress payment on account of
the agreed price on the basis of the CONTRACTOR's application for
payment as approved by the OWNER'S REPRESENTATIVE
Whenever the CONTRACTOR's application for payment includes
payment for work that is determined to be either(1)not in accordance
with this Agreement, the work write-up, specifications, or other
Contract Documents, or (2) defective, the OWNER may, in his sole
discretion, withhold progress payments whenever some work for
which payment has already been made under a prior progress payment
or a portion thereof, is determined to be either(1)not in accordance
with the Agreement, the work write-up, specifications or other
Contract Documents or(2) defective.
8 02 02 Subject to the foregoing, progress payments will be made, less the
normal retamage specified below and additional amounts as the
OWNER'S REPRESENTATIVE and/or OWNER may determine and
may withhold in accordance with this Agreement
8 02 03 The OWNER'S REPRESENTATIVE and/or OWNER may, at any
time, suspend progress payments on the work if,in the sole discretion
of the OWNER'S REPRESENTATIVE and/or OWNER, it
determines that the projected liquidated damages may exceed the
retainage
8.0204 The OWNER'S REPRESENTATIVE and/or OWNER may, at any
time, suspend progress payment if it believes that the CONTRACTOR
will not complete the work due to actual default or that the
CONTRACTOR has represented or done some act that indicates that
the CONTRACTOR will not complete the work within the dates
specified in this Agreement for final collection or that it will otherwise
not complete the work in accordance with this Agreement
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803 RETAINAGE From each approved statement, the OWNER shall retain until final
payment five percent(5%)if the total Contract Price at time of Contract execution is
Four Hundred Thousand Dollars($400,000.00)or more or ten percent(10%)if the
total Contract Price at time of Contract execution is less than Four Hundred
Thousand Dollars($400,000 00) The OWNER may also retain from each approved
statement any sums authorized under other terms of this Agreement
804 FINAL PAYMENT After final completion and acceptance of the work specified in
the plans and specifications or in a work order, if the contract is issued on a work
order basis, the OWNER shall pay the CONTRACTOR the remainder of the price
due under this Agreement less any sums withheld under other terms of this
Agreement
805 PAYMENT BASED ON ACTUAL WORK AND MATERIALS. Except as
provided in Section 8.04, if the actual amount of the work to be done and the
materials to be furnished differ from estimate and where the basis for payment is the
unit price method,then payment shall be for the actual amount of accepted work done
and materials furnished on the project
806 MAJOR ITEMS
In case the actual quantity of any major item should become as much as 20% more
than, or 20% less than the estimated or contemplated quantity for such items, then
either party to this Agreement, upon demand, shall be entitled to a revised
consideration upon the portion of the work above or below 20% of the estimated
quantity.
A "Major Item" shall be construed to be any individual bid item incurred in the
proposal that has a total cost equal to or greater than five (5) per cent of the total
contract cost, computed on the basis of the proposal quantities and the contract unit
prices
807 REDUCTION IN SCOPE OR QUANTITY Reduction in the scope or quantity of
work on unit price items shall merely reduce the number of units The
CONTRACTOR shall never be entitled to anticipated or lost profits on the deleted or
reduced portion of a job whether bid on a unit price or lump sum basis
808 OTHER CHARGES The CONTRACTOR shall have the sole obligation to pay any
and all charges and fees and give all notices necessary to and incidental to the lawful
prosecution of the work hereunder The CONTRACTOR shall not, and shall have no
authority whatsoever to, obligate the OWNER to make any payments to another party
or make any promises or representations of any nature on behalf of the OWNER,
without their specific written approval
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8 09 CHANGES AND ALTERATIONS
8 09 01 No changes shall be made and no bills for changes, alterations,
modifications,deviations, and extra orders shall be recognized or paid
for except upon a written change order from the OWNER or the
OWNER'S REPRESENTATIVE
8 09 02 The CONTRACTOR further agrees that either before or after the
beginning of the work, the OWNER, acting solely through the
OWNER'S REPRESENTATIVE, may make such changes and
alterations as OWNER'S REPRESENTATIVE and/or OWNER sees
1 fit in the dimensions, plans or materials, or any part thereof, for the
work contemplated under this Agreement without affecting the
validity of this Agreement or the accompanying bonds. If such
changes or alterations diminish the quantity of work to be done,they
shall not constitute the basis for any claim for damages or anticipated
profits on the work that may be dispensed with. The CONTRACTOR
1 shall never be entitled to anticipated or lost profits on the deleted or
reduced portion of the project whether bid on a unit or lump sum
basis. If such changes increase the amount of work, and the increased
work can be fairly classified under the specifications, such increase
shall be paid according to the quantity actually done and at the unit
price established for such work under this Agreement;otherwise,such
additional work shall be paid for as provided under Extra Work. In
case the OWNER shall make such changes or alterations as shall make
useless any work already done or material already furnished or used in
said work, then the OWNER shall recompense the CONTRACTOR
for any material or labor so used and for any actual loss, other than
lost profits occasioned by such change due to actual expenses incurred
in preparation for the work as originally planned
8.0903 Changes and alterations that are authorized through change orders
may be made or approved by the OWNER provided that the change
order does not increase or decrease this Agreement by more than the
amount specified in the Ordinance passed by the City Council
approving this contract Any requests by the CONTRACTOR for a
change in original Payment Amount shall be made prior to the
beginning of the work covered by the proposed change or the right to
payment for Extra Work shall be waived
8.10 EXTRA WORK CHARGES
8 1001 The term"Extra Work"shall be understood to mean and include work
not covered or contemplated by the Contract Documents that may be
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required by the OWNER or the OWNER'S REPRESENTATIVE and
iapproved by the OWNER in writing prior to its being done by the
CONTRACTOR to accomplish any change, alteration, or addition to
the work as shown on the Specifications or Contract Documents
8 1002 It is agreed that the CONTRACTOR shall perform all Extra Work
under the direction of the OWNER'S REPRESENTATIVE when
presented with a written work order signed by the OWNER.
8 1003 No claim for Extra Work of any kind will be allowed unless, prior to
the work being done, it is ordered in writing by the OWNER In case
any orders or instructions appear to the CONTRACTOR to involve
Extra Work for which it should receive additional compensation or an
adjustment in the construction time, the CONTRACTOR shall make
written request to the OWNER for a written order from OWNER
authorizing such Extra Work
8 1004 It is agreed that the basis of compensation to the CONTRACTOR for
work either added or deleted by a Change Order or for which a claim
for Extra Work is made shall be determined by one or more of the
following methods:
Method A - By agreed unit prices, or
Method (B) - By agreed lump sum, or
Method (C) - If neither Method (A) nor Method (B) is
agreed upon before the Extra Work is
commenced,then the CONTRACTOR shall be
paid the "actual field cost" of the work.
8 1005 In the event said Extra Work is performed and paid for under Method
C), then the provisions of this paragraph shall apply and the "actual
field cost" is hereby defined to include the cost to the
CONTRACTOR of all applicable workmen, such as foreman,
timekeepers, mechanics and laborers, and materials, supplies, teams,
trucks, rentals on machinery and equipment, for the time actually
employed or used on such Extra Work, plus actual transportation
charges necessarily incurred,together with all power, fuel, lubricants,
water and similar operating expenses, also all necessary incidental
expenses incurred directly on account of such Extra Work, including
social security, old-age benefits and other payroll taxes, and a rateable
proportion of premiums on Performance and Payment Bonds, Public
Liability and Property Damage and Workers' Compensation, and all
other insurance as may be required by any law or ordinance, or
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directed by the OWNER The actual field costs to be paid to the
CONTRACTOR shall cover and compensate the CONTRACTOR for
the CONTRACTOR'S profit,overhead,general superintendence,field
office expenses, and all other elements of costs and expenses not
embraced within the actual field costs as herein defined Actual field
costs shall not exceed the prevailing market price therefor within
1
reasonable tolerances as determined by the OWNER'S
REPRESENTATIVE
i9.INDEPENDENT CONTRACTOR
901 In all activities or services performed hereunder, the CONTRACTOR is and at all
times shall remain an independent contractor, not an agent or employee of the
OWNER or the OWNER'S REPRESENTATIVE The CONTRACTOR, as an
independent contractor, shall be solely responsible for the final product contemplated
under this Agreement. Except for materials furnished by the OWNER, the
CONTRACTOR shall supply all materials, equipment and labor required for the
execution of the work on the project. The CONTRACTOR shall have ultimate
control over the execution of the work under this Agreement The CONTRACTOR
shall have the sole obligation to employ, direct,control, supervise, manage,discharge
iand compensate all of its employees and subcontractors and the OWNER and the
OWNER'S REPRESENTATIVE shall have no direct control of or supervision over
the employees of the CONTRACTOR's subcontractors except to the limited extent
iprovided for in this Agreement
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902 The work to be provided on this project shall include the furnishing of all labor,
materials, equipment, and other services necessary or reasonably incidental to the
performance of the work by the CONTRACTOR. It shall be the responsibility of the
i CONTRACTOR to furnish a completed work product that meets the requirements of
the OWNER Any additional work, material,or equipment needed to meet the intent
of this specification shall be supplied by the CONTRACTOR without claim for
additional payment, even though not specifically mentioned herein
9.03 The CONTRACTOR shall retain personal control and shall give its personal attention
i to the faithful prosecution and completion of the work and fulfillment of this
Agreement. The subletting of any portion or feature of the work or materials required
in the performance of this Agreement shall not relieve the CONTRACTOR from its
obligations to the OWNER under this Agreement The CONTRACTOR shall appoint
and keep on the project during the progress of the work a competent Project
Superintendent-Manager and any necessary assistants, all satisfactory to OWNER,to
act as the CONTRACTOR's representative and to supervise its employees and
subcontractors All directions given to the Project Superintendent-Manager shall be
binding as if given to the CONTRACTOR. Adequate supervision by competent and
reasonable representative of the CONTRACTOR is essential to the proper
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performance of the work, and lack of such supervision shall be grounds for
suspending the operations of the CONTRACTOR and is in breach of this Agreement
904 Unless otherwise stipulated, the CONTRACTOR shall provide and pay for all
materials,labor,tools,equipment,transportation, and other facilities necessary for the
performance and completion of the work.
10. DISORDERLY EMPLOYEES
The CONTRACTOR agrees to employ only orderly and competent persons, skillful in the
performance of the type of work required under this contract,to do the work Furthermore,
the CONTRACTOR agrees that whenever the OWNER or the OWNER'S
REPRESENTATIVE shall inform the CONTRACTOR in writing that any person or persons
performing any of the requisite work are, in the opinion of the OWNER or the OWNER'S
REPRESENTATIVE, incompetent,unfaithful or disorderly, such person or persons shall be
discharged and shall not again be employed to perform any work on the project without such
OWNER's or OWNER'S REPRESENTATIVE's prior written consent
11. NATURE OF THE WORK.
It is understood and agreed that the CONTRACTOR has, b careful examination satisfiedY
itself as to the nature and location of the work, the confirmation of the ground and soil, the
nature of any structures,the character, quality and quantity of the material to be utilized, the
character of equipment and facilities needed for and during the prosecution of the work,the
time needed to complete the work, CONTRACTOR's ability to meet all deadlines and
schedules required by this Agreement, the general and local conditions, and all other matters
that in any way affect the work under this Agreement
12. PROGRESS OF WORK.
1201 Unless otherwise specifically provided herein,the CONTRACTOR may prosecute its
work at such time and sessions, in such order of precedence, and in such manner as
shall be most conducive to the economy of the project, provided, however, that the
order and time of prosecution shall be such that the work shall be finally completed as
a whole, in accordance with this Agreement, the Specifications, and other Contract
Documents and within the time of completion designated in the proposals and
schedules agreed upon by the parties
12.02 Further, the parties shall be subject to the following
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12 02 01 The OWNER reserves the right to enter the property by such
employee(s) or agent(s) as it may elect for the purpose of inspecting
the work
12 02 02 The Project Superintendent/Manager shall coordinate its activities and
work with the OWNER If required by the Owner, the
CONTRACTOR shall provide a weekly schedule ofplanned activities,
which may be reviewed on a daily basis In the case of any completed
work or material that is to be covered over by other material, the
Project Superintendent/Manager shall provide notice to the OWNER
no later than twenty-four(24) hours before the anticipated cover-up
of the previously completed work or material In the event, however,
that such notice is provided on a Friday the OWNER will have until
the following Monday afternoon to approve the previously completed
work and its cover-up and the CONTRACTOR shall take no action
until such approval is given by OWNER
12 02 03 The CONTRACTOR shall submit, at such time as may reasonably be
requested by OWNER, further schedules that shall list the order in
which the CONTRACTOR proposes to carry on the work with dates
at which the CONTRACTOR will start the several parts of the work
and the estimated dates of completion of the several parts
12 02 04 The CONTRACTOR shall attend additional meetings called by the
OWNER or the OWNER'S REPRESENTATIVE upon twenty-four
24) hours' notice unless otherwise agreed by the parties
12 02 05 When the OWNER is having other work done, by its own force
approved by the OWNER'S REPRESENTATIVE, the OWNER'S
REPRESENTATIVE may direct the time and manner of work done
under this Agreement, so that conflicts will be avoided and the various
work being done by and for the OWNER shall be coordinated
13. SITE CONDITIONS AND MANAGEMENT.
1301 Where the CONTRACTOR is working around or in existing structures,it shall verify
conditions at the site, including,but not limited to, door openings and passages Any
items constructed or manufactured off-site or outside of buildings shall be done so
that they are not too bulky for existing facilities The CONTRACTOR shall provide
special apparatus as required to handle any such items. All special handling
equipment charges shall be at the CONTRACTOR'S sole cost and expense
1302 It is the intention of the OWNER'S REPRESENTATIVE to show on the plans the
approximate location of all underground utility lines and structures except service
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connections to buildings. To this end, owners of all known underground lines and
structures, including gas, water, electrical cables, telephone cables, sanitary sewers,
storm sewers, industrial pipelines, and appurtenances thereto have been contacted and
the information provided by them is shown on the plans. Where gas, water, and
sewer lines exist in the vicinity, the CONTRACTOR shall assume that service
connections exist to each building and exercise appropriate caution during excavation
It is the CONTRACTOR's responsibility to notify various owners in advance when
excavation is to be done in the vicinity of their underground lines and structures
Damage to such underground lines and structures, whether or not shown on the plans,
shall be the responsibility of the CONTRACTOR and he shall bear the cost of
necessary repair or replacement of damaged parts
1303 Throughout the progress of the work, the CONTRACTOR shall keep the working
area free from debris of all types, and remove from premises all rubbish, resulting
from any work being done by him At the completion of the work, the
CONTRACTOR shall leave the premises in a clean and finished condition Any
failure to do so may be remedied by the OWNER or its designee and charged back to
the CONTRACTOR.
14. LAYOUT OF WORK.
Except as specifically provided herein,the CONTRACTOR shall lay out all work in a manner
acceptable to the OWNER in accordance with applicable codes and ordinances of the city,
county and state The OWNER'S REPRESENTATIVE will review the CONTRACTOR'S
layout of all structures and any other layout work done by the CONTRACTOR, but this
review does not relieve the CONTRACTOR of the responsibility of accurately locatmg all
work in accordance with the specifications and Contract Documents
15. CONTRACTOR'S STRUCTURES.
15.01 Whenever the CONTRACTOR erects, installs, or uses additional structures on the
property for the storage, maintenance of materials or use of employees and
subcontractors, such structure shall not damage the property and the CONTRACTOR
shall maintain sanitary conditions in and about such structures at all times in a manner
satisfactory to the OWNER
1502 The CONTRACTOR shall provide and maintain necessary sanitary conveniences for
the use of laborers on the work Such conveniences shall be properly secluded from
public observation and shall be in a location approved by the OWNER'S
REPRESENTATIVE
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15 03 The OWNER may charge the CONTRACTOR for any damage or injury to the
jOWNER, its property or third persons as a result of the location or use of any of
CONTRACTOR'S structures
16. MATERIALS.
1601 Materials or work described in words which when so applied have well-known
technical or trade meamng shall be held to refer to such recognized standards All
work shall be done and all materials furnished in strict conformity with the Contract
Documents and recognized industry standards
16.02 Materials and supplies utilized in the final product that will be turned over to the
OWNER shall be new and of good quality Upon request,the CONTRACTOR shall
supply proof of quality and manufacturer
1603 No refurbished, reconditioned or other previously utilized materials or supplies will be
used without the signed authorization of OWNER.
1604 Where the product is to be turned over to the OWNER, the CONTRACTOR may
utilize substitutes of equal quality and function as provided for in the specifications
1605 The OWNER shall have full and final decision over the use of substitute materials and
supplies
16.06 The CONTRACTOR shall certify to the OWNER that all materials installed are free
from asbestos containing material
17. OBSERVATION, INSPECTIONS, TESTS.
1701 The OWNER and the OWNER'S REPRESENTATIVE reserve the right to enter the
property by such employee(s) or agent(s) as he may elect for the purpose of
inspecting the work In accordance therewith, the CONTRACTOR shall supply the
OWNER or the OWNER'S REPRESENTATIVE, upon request, with any keys or
information necessary for the OWNER or the OWNER'S REPRESENTATIVE to
have access to the property The OWNER and the OWNER'S REPRESENTATIVE
shall have the right to enter the property or location of the work for the purpose of
performing such collateral work as the OWNER or the OWNER'S
REPRESENTATIVE deems necessary or appropriate
1702 The OWNER and the OWNER'S REPRESENTATIVE shall have the right, at any
reasonable time, to observe and test the work The CONTRACTOR shall make
necessary arrangements and provide proper facilities and access for such observation
and testing at any location wherever the work or any part thereof is in preparation or
1 18-
progress The CONTRACTOR shall ascertain the scope of any observation that may
be contemplated by the OWNER or the OWNER'S REPRESENTATIVE and shall
give ample notice as to the time each part of the work will be ready for such
observation
1 1703 The OWNER or the OWNER'S REPRESENTATIVE may reject any work found to
be defective or not in accordance with the Contract Documents, regardless of the
state of its completion or the time or place of its discovery regardless of whether the
OWNER or the OWNER'S REPRESENTATIVE has previously accepted the work
through oversight or otherwise. Neither observations by the OWNER or the
OWNER'S REPRESENTATIVE nor inspections, tests, or approvals made by the
OWNER or the OWNER'S REPRESENTATIVE, or persons authorized under this
Agreement to make such inspections, tests, or approvals, shall relieve the
CONTRACTOR from its obligation to perform the work in accordance with the
1 requirements of the Contract Documents.
1704 The OWNER or the OWNER'S REPRESENTATIVE upon approval ofthe OWNER
may require the CONTRACTOR to remove, dismantle or uncover work completed
In the event that the CONTRACTOR has failed to perform the work as required by
the specifications, or drawings, or other Contract Documents, CONTRACTOR shall
assume and pay the costs of repair and restoration of the work required to be
removed, dismantled, or uncovered In the event that the CONTRACTOR has
performed the work correctly to specifications, OWNER shall assume and pay the
cost of restoration of the construction to the point that the OWNER has required the
work to be uncovered or dismantled.
18. WORK STOPPAGE.
18 01 The OWNER or the OWNER'S REPRESENTATIVE shall have the right to order
the work of the CONTRACTOR or any subcontractor wholly or partially stopped
immediately under any one or more of the following conditions
18 01 01 the work may be ordered stopped immediately if in the judgment of
the OWNER or the OWNER'S REPRESENTATIVE, any of the
materials furnished or the work being done is not in strict accordance
with this Agreement,
18 01 02 the work may be ordered stopped immediately until an objectionableYPPYYl
person or material is removed from the premises, or
18 01 03 the work may be ordered stopped immediately if any portion of the
work is being performed so as to create a hazardous condition
18 02 Such stoppage or suspension shall neither invalidate any of the CONTRACTOR's
performance obligations under this Agreement, including time of performance and
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1
deadlines therefor, nor will extra charge be allowed the CONTRACTOR by reason of
such stoppage or suspension.
19. REJECTED WORK.
19.01 The OWNER or the OWNER'S REPRESENTATIVE, in its discretion, may reject
any and all work that is found to be defective or deemed not in conformity with this
Agreement The OWNER or the OWNER'S REPRESENTATIVE may reject said
work or any portion thereof regardless of the stage of its completion or time or place
1 of discovery of such errors Further, the OWNER or the OWNER'S
REPRESENTATIVE may reject said work regardless of whether the OWNER or the
OWNER'S REPRESENTATIVE has previously accepted the work through oversight
or otherwise Neither observations by the OWNER or the OWNER'S
REPRESENTATIVE nor inspections, tests, certificates or approvals made by the
OWNER or the OWNER'S REPRESENTATIVE, or persons authorized under this
Agreement to make such inspections,tests, certificates or approvals, shall relieve the
CONTRACTOR from its obligation to perform the work in accordance with the
requirements of this Agreement and the other Contract Documents
1902 In the event that any work or any part thereof is rejected by the OWNER or the
OWNER'S REPRESENTATIVE, the CONTRACTOR shall, at its sole expense and
after receipt of written notice thereof from the OWNER or the OWNER'S
REPRESENTATIVE remove such material and rebuild or otherwise remedy such
work so that it shall be in full compliance with this Agreement and the other Contract
Documents, as follows
19 02 01 At the option of the OWNER, the CONTRACTOR may be required
to remedy such work so that it shall be in full compliance with this
Agreement As soon as possible but not later than seven(7)calendar
days after receipt of notice from the OWNER or the OWNER'S
REPRESENTATIVE or such other period of time specified by the
OWNER'S REPRESENTATIVE in writing, the CONTRACTOR
shall, at its sole expense, replace or repair all rejected work or
materials so as to conform with this Agreement.
19 02 02 If the OWNER or the OWNER'S REPRESENTATIVE in its
discretion deems it inexpedient to correct work damaged or not done
in accordance with this Agreement, an equitable deduction for the
Payment Amount may be made by the OWNER
1902.03 If the CONTRACTOR does not remove or replace any rejected work
within the time specified in Section 19 02 01,then the OWNER or the
OWNER'S REPRESENTATIVE may have the work removed,
replaced or repaired at the CONTRACTOR'S expense
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1 20. SUBCONTRACTORS
2001 The CONTRACTOR shall retain personal control and give its personal, utmost
attention to the faithful prosecution and completion of the work and fulfillment ofthis
Agreement The subletting of any portion or feature of the work or materials required
in the performance of this Agreement shall not relieve the CONTRACTOR from its
obligations to the OWNER under this Agreement.
1 2002 All subcontractors must be approved by the OWNER'S REPRESENTATIVE prior to
performing any work on the Project
2003 If the OWNER'S REPRESENTATIVE judges any subcontractor to be failing to
perform the work in strict accordance with the drawings and specifications, the
CONTRACTOR shall discharge the same, but this shall in no way release the
CONTRACTOR from its obligations and responsibility under this Agreement
2004 Every subcontractor shall be bound by the terms and provisions of this Agreement as
far as applicable to its work.
2005 The CONTRACTOR shall be fully responsible to the OWNER and the OWNER'S
REPRESENTATIVE for the acts and omissions of its subcontractors.
2006 Nothing contained herein shall create relations between any subcontractor and the
OWNER or the OWNER'S REPRESENTATIVE
2007 RESPONSIBILITY FOR PAYMENT OF SUBCONTRACTORS. The
CONTRACTOR shall be solely and exclusively responsible for compensating any of
the CONTRACTOR'S employees, subcontractors, matermalmen and/or suppliers of
any type or nature whatsoever. The CONTRACTOR shall further be exclusively
responsible for ensuring that no claims or liens of any type are filed against any
property owned by the OWNER ansing out of or incidental to the performance ofany
services performed pursuant to this Agreement In the event a statutory lien notice is
sent to the OWNER or the OWNER'S REPRESENTATIVE, the CONTRACTOR
shall, where no payment bond covers the work, upon written notice from the
OWNER or the OWNER'S REPRESENTATIVE, immediately obtain bond at the
CONTRACTOR'S sole expense and hold the OWNER harmless from any losses that
may result from the filing or enforcement of any said lien notice. In the event that the
CONTRACTOR defaults in the provision of the bond, the OWNER may withhold
such funds as are necessary to ensure the payment of such claim until litigation
determines to whom payment shall be made
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21. POSSESSION AND USE OF COMPLETED PORTIONS.
The OWNER shall have the right to take possession of and use any completed or partially
completed portions of the work, notwithstanding the time for completing the entire work or
such portions may not have expired, but such taking possession and use shall not be deemed
an acceptance of any work not completed in accordance with the Contract Documents
22. PERMITS AND CERTIFICATES
The CONTRACTOR shall secure and pay for all necessary permits, licenses and/or
certificates issued by the state, municipality or other authorities and submit the same to the
OWNER'S REPRESENTATIVE The OWNER may withhold any payments due under this
1 Agreement or that may become due under this Agreement until the necessary permits,licenses
and/or certificates are procured and delivered
23. FAULTY WORKMANSHIP.
Neither the final payment nor any acceptance nor certificate nor any provision of this
Agreement shall relieve the CONTRACTOR of any responsibility for faulty workmanship or
materials At the option of the OWNER, as provided in this Agreement,the CONTRACTOR
shall remedy any defects thereto and pay for any damage to other work resulting therefrom,
which may appear after final acceptance of the work
24. WARRANTY.
Upon acceptance of the work by the OWNER,the CONTRACTOR warrants for a period of
one(1) calendar year from the date thereof as follows:
24 01 The CONTRACTOR warrants to the OWNER that all materials provided to the
OWNER under this Agreement shall be new unless otherwise approved in writing by
the OWNER'S REPRESENTATIVE and that all materials and work will be of good
quality, free from faults and defects, and in conformance with this Agreement.
I 2402 All work not conforming to these requirements, including, but not limited to,
substitutions not properly approved and authorized, may be considered defective.
2403 This warranty is in addition to any rights or warranties expressed or implied by law
and consumer protection claims arising from misrepresentations by the
CONTRACTOR
2404 Where more than a one(1)year warranty is specified for individual products,work or
materials, the longer warranty shall govern.
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24 05 This warranty obligation shall be covered by any performance or payment bonds
tendered in compliance with this Agreement
25. DEFECTIVE WORK DISCOVERED DURING WARRANTY PERIOD.
If within one (1) calendar year after the date of acceptance by the OWNER of designated
equipment or within such longer period of time as may be prescribed by law or by the terms of
any applicable special warranty required by this Agreement, any of the work is found or
determined to be defective, including obvious defects, or otherwise not in accordance with
this Agreement, the Contractor shall correct it PROMPTLY
25.01 After receipt of written notice from the OWNER to begin corrective work, the
CONTRACTOR shall promptly begin the corrective work. This obligation shall
survive the termination of this Agreement The guarantee shall not constitute the
exclusive remedy of the OWNER, nor shall other remedies be limited to either
warranty or guarantee period
2502 If within seven(7)calendar days after the OWNER has notified the CONTRACTOR
of a defect,failure or abnormality in the work,the CONTRACTOR has not started to
make the necessary corrections or adjustments, the OWNER is hereby authorized to
make the corrections or adjustments, or to order the work to be done by a third party
The cost of the work shall be paid by the CONTRACTOR
2503 The cost of all materials,parts,labor,transportation, supervision, special instruments,
and supplies required for replacement or repair of parts and for correction of defects,
shall be paid by the CONTRACTOR or by the surety
2504 Thenone(1)calendar year warranty shall coverall work, equipment,and materials that
are part of this project,whether or not a warranty is specified in the individual section
prescribing that particular aspect of the work
26. LIQUIDATED DAMAGES.
26.01 It is expressly understood and agreed by the parties that time is of the essence to this
Agreement and that the date set for the final completion of the work described herein
is an essential condition of this Agreement It is further understood and agreed that
the date for final completion of the work is reasonable dates for the completion of the
project, taking into consideration all conditions, including, but not limited to, the
average climatic change and conditions and usual industrial conditions prevailing in
this locality
2602 If the CONTRACTOR should neglect, fail, or refuse to complete the work required
for final completion within the date specified in this Agreement, or any proper
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1
extension that is granted in writing by the OWNER, then the CONTRACTOR hereby
agrees, as a part of the consideration for the awarding of this Agreement, that the
OWNER may withhold permanently from the CONTRACTOR's total Payment
1
Amount the sum of FIVE HUNDRED AND NO/100 DOLLARS($500.00)for each
and every calendar day that the CONTRACTOR is in default after the date stipulated
for final completion, not as a penalty,but as liquidated damages for the breach of the
1
Agreement
2603 The amount of liquidated damages for the CONTRACTOR's failure to meet the
deadline for final completion is fixed and agreed on by the CONTRACTOR because
of the impracticability and extreme difficulty in fixing and ascertaining actual damages
that the OWNER would in such an event sustain The amounts to be charged are
agreed to be the damages that the OWNER would sustain and may, at the option of
the OWNER,be retained from either current progress payment or from final payment
27. WITHHOLD PAYMENT AND CONTRACTOR'S PAYMENT.
27 01 Regardless of any bond, the OWNER'S REPRESENTATIVE may, on account of
subsequently discovered evidence, withhold payment or nullify the whole or part of
any acceptance or certificate to such extent as may be necessary to protect the
IOWNER from loss on account of
1 Defective work or work that is not in strict accordance with the terms of this
Agreement, the Specifications, or the other Contract Documents,
2 Claims filed or reasonable evidence indicating probable filing of claims, as
determined at the sole discretion of the OWNER,
3 Failure of the CONTRACTOR to make prompt payments to subcontractors
or for material or labor or matenalmen,
4 Claims filed or reasonable evidence, as determined at the sole discretion ofthe
OWNER, of damage to another contractor or a third party, including adjacent
property owners,
I5 Reasonable doubt, as determined at the sole discretion of the OWNER, that
the work can be completed for the unpaid balance of the contract amount,
6 Reasonable indication, as determined at the sole discretion of the OWNER,
that the work will not be completed within the contract time;
7.Liquidated damages and administrative charges, as determined b thegY
OWNER at its sole discretion,
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8 Charges made for repairs to the CONTRACTOR'S defective work or repairs
made by the OWNER to correct damage to other property,
1
9 Claims filed or reasonable evidence as determined at the sole discretion of the
OWNER indicating unremedied damage to property owned by the OWNER,
or
10 Other amounts authorized under this Agreement
2702 Whenever the CONTRACTOR and/or its surety is required to make a payment under
this Contract, it is expressly understood and agreed that such payment shall be due
within 15 days after receipt of an invoice therefore unless expressly stated otherwise
Payments required by CONTRACTOR and/or its surety,which are not timely made,
shall accrue interest at a rate of one percent per month
28. CHARGES FOR INJURY OR REPAIR.
1 28.01 The CONTRACTOR shall be liable and responsible for any damages incurred or
repairs made necessary by reason of its work and/or caused by it. Repairs of any kind
required by the OWNER or the OWNER'S REPRESENTATIVE will be made and
Icharged to the CONTRACTOR by the OWNER
28.02 The CONTRACTOR shall take the necessary precautions to protect any areas
adjacent to its work
1
2803 The work specified consists of all work, materials and labor required by the OWNER
or the OWNER'S REPRESENTATIVE to repair any damage to the property of the
OWNER, including,but not limited to, structures,roadways, curbs,parking areas and
sidewalks, to an equal or better condition than before such property was damaged
28 04 The CONTRACTOR shall at all times exercise reasonable precautions for the safety
I of employees and others on or near the work and shall comply with all applicable
provisions of Federal, State, and Municipal safety laws and building and construction
codes All machinery and equipment and other physical hazards shall be guarded in
accordance with the "Manual of Accident Prevention in Construction" of the
Associated General Contractors of America except where incompatible with Federal,
State, or Municipal laws or regulations The CONTRACTOR shall provide such
machinery guards, safe walkways, ladders, bridges, gangplanks, and other safety
devices. The safety precautions actually taken and their adequacy shall be the sole
responsibility of the CONTRACTOR, acting at his discretion as an independent
contractor
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29. PAYMENT OF EMPLOYEES AND FOR MATERIALS.
2901 Wage rates aid on this project shall not be less than specified in the schedule ofgPPJP
1
general prevailing rates of per diem rates attached hereto as Exhibit "A" and
incorporated herein for all intents and purposes Should the CONTRACTOR or any
of its subcontractors fail to pay the general prevailing rate to a worker performing
1 work on the project, the CONTRACTOR shall pay to the OWNER SIXTY AND
NO/100 DOLLARS($60 00)for each worker employed for each calendar day or part
of the day that the worker is paid less than the wage rates stipulated in this Contract
29.02 The CONTRACTOR and each of the subcontractors shall pay each of its employees
engaged in work on the project under this Agreement in full (less mandatory legal
1 deductions),in cash or by check readily cashable,without discount, no less than once
every two (2) weeks.
2903 The OWNER or OWNER'S REPRESENTATIVE may, prior to final acceptance of
the project, require the CONTRACTOR to execute an affidavit to legal form stating
that all bills for labor, materials, and incidentals incurred have been paid in full and
that there are no claims pending of which the CONTRACTOR has been notified
1 30. INSURANCE.
3 0,01 Throughout the term of this Agreement,the CONTRACTOR at its own expense shall
purchase, maintain and keep in force and effect insurance against claims for mjunes to
or death of persons or damages to property which may arise out of or result from the
CONTRACTOR'S operations and/or performance of the work under this Agreement,
whether such operations and/or performance be by the CONTRACTOR, its agents,
representatives, volunteers, employees or subcontractors or by anyone directly or
1
indirectly employed by any of them, or by anyone for whose acts any of them may be
liable.
I 3002 The CONTRACTOR's insurance coverage shall be primary insurance with respect to
the OWNER and his volunteers and agents Any insurance or self-insurance
maintained by the OWNER, its officials, employees or volunteers shall be considered
1 in excess of the CONTRACTOR's insurance and shall not contribute to it Further,
the CONTRACTOR shall include all subcontractors as additional insureds under its
policies or shall furnish separate certificates and endorsements for each subcontractor
All coverage's for subcontractors shall be subject to all of the requirements stated
herein.
3003 The following is a list of standard insurance policies along with their respective
minimum coverage amounts required in this contract
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1) Workers' Compensation Policy
i Statutory amounts required by Texas law
Employer's Liability $500,000
1 2) Commercial General Liability Policy
General aggregate of$1,000,000
Owners' and Contractors' Protective Liability of$500,000
Products and Completed Operations of$1,000,000
Personal and Advertising Injury of$1,000,000
Mmamum of$500,000 per occurrence
Coverage shall be at least as broad as ISO CG 00 01 10 93
No coverage exclusions shall be deleted from standard policy
without notification of individual exclusions being attached
for review and acceptance
I 3) Automobile Liability Policy
Combined single limits of$1,000,000
Coverage for"Any Auto "
3004 Prior to or upon the execution of this Agreement and before commencing any of the
work, CONTRACTOR shall file with the OWNER valid Certificates ofInsurance and
endorsements acceptable to the OWNER Such Certificates shall contain a provision
that coverages afforded under the policies will not be canceled, suspended,voided,or
reduced until at least thirty (30) days' prior written notice has been given to the
OWNER via certified mail, return receipt requested Prior to the end of each
coverage period during the term of this Agreement, new Certificates of Insurance
must be filed with the OWNER evidencing continuation of coverage
The CONTRACTOR shall also file with the OWNER valid Certificates of Insurance
covering all Subcontractors The OWNER reserves the right to reject any bid that
does not meet the minimum insurance requirements as outlined above
3005 The following are general requirements, which are applicable to all policies
30 05 01 All insurance coverage required herein, except for Workers'
Compensation Insurance, shall be written by a carrier with an A M.
Best Rating of B+or higher in accordance with the current Best Key
Rating Guide.
30 05 02 Only Insurance Carriers licensed and admitted to do business in the
State of Texas will be accepted.
30.0503 Deductibles shall be listed on the Certificate of Insurance and are
1 acceptable only on a per occurrence basis
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30.05 04 Claims-made policies will not be accepted.
30 05 05 The OWNS its officials agents, m 1R, and employeesoyees are to be added as
1
Additional Insureds" to all liability policies The coverage shall
contain no special limitation on the scope of protection afforded to the
OWNER, its officials, employees or volunteers
30.05.06 A waiver of subrogation in favor of the OWNER with respect to
Workers' Compensation Insurance must be included.
30.0507 Upon request, certified copies of all insurance policies and/or
certificates of insurance shall be furnished to the OWNER at no cost
to the OWNER
30 06 Certificates of Insurance shall be prepared and executed by the insurance company or
1 its authorized agent, and shall contain the following provisions and warranties
30.06.01 All endorsements and insurance coverages according to requirements
1 and instructions contained herein
30 06 02 The form of the notice of cancellation, termination or change in
coverage provisions to the OWNER'S REPRESENTATIVE
30 06 03 Original endorsements affecting coverage required by this Section 30
shall be furnished with the certificates of insurance
30 06 04 Upon request of and without cost to the OWNER or the OWNER'S
REPRESENTATIVE, insurance policies shall be furnished to
OWNER.
30 06 05 Upon request of and without cost to the OWNER, loss runs (Claims
listing) of any and/or all insurance coverages shall be furnished to
OWNER.
3007 The CONTRACTOR shall comply with Section 110 110 of Title 28 of the Texas
Administrative Code, which is incorporated herein as Exhibit"B" for all intents and
purposes However, it is expressly understood and agreed that in the event of a
conflict between the provisions of this Section 30 and the provision contained in
Exhibit "B," the more stringent shall control
31. PERFORMANCE AND PAYMENT BONDS.
1 31 01 The CONTRACTOR shall furnish separate performance and payment bonds each inPPPY
1
the sum of one hundred percent (100%) of the total contract price, in such forms as
the OWNER may approve and with sureties as the OWNER may approve, for this
purpose,guaranteeing faithful payment to all persons supplying labor and materials or
1
furnishing any equipment in the execution of the Agreement The cost of such a bond
shall be included in the CONTRACTOR'S proposed price
31.02 All performance, payment, and special bonds required herein shall remain in effect
throughout the term of this Agreement and for a period of one (1) year after the
completion of the work and shall be extended for any warranty work to cover the
warranty period
3103 If at any time during the execution of this Agreement or in the required period
thereafter, the bond or bonds become invalid or ineffective for any reason, the
CONTRACTOR shall promptly supply within ten (10) days such other bond or
bonds, which bond or bonds shall assure performance or payment as required. Such
replacement bond(s) shall be issued by a surety acceptable to the OWNER.
3104 The CONTRACTOR shall make such changes and alterations as the OWNER may
see fit in the work herein contemplated, or any part thereof without affecting the
validity of this Agreement and any work accompanying bond. If such changes or
alterations diminish the quantity of the work to be done, they shall not constitute the
1 basis for any claim for damages or anticipated profits on the work that may be
dispensed with In case that the OWNER makes changes or alterations as shall make
useless any work already done or material already used in said work, then the
OWNER shall recompense the CONTRACTOR for any material or labor so used and
for any actual loss occasioned by such change due to actual expenses incurred in
preparation for the work as originally planned
32. PROJECT UNDER CONTRACTOR'S CONTROL.
Any injury or damage caused to the CONTRACTOR or the project prior to and including the
date of final completion caused by an act of God, natural cause, a party or entity not privy to
this Agreement, or other force majeure shall be assumed and borne by the CONTRACTOR.
33. COMPLIANCE WITH LAW.
33 01 The CONTRACTOR'S work and materials shall comply with all state and federal
laws, municipal ordinances, regulations and direction of inspectors appointed by
proper authorities having jurisdiction including, without limitation, the following
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I
33 01 01 The CONTRACTOR shall perform and require all subcontractors to
perform the work in accordance with applicable laws, codes, ordinances,
and regulations of the State of Texas and the United States and in
compliance with OSHA and other laws as they may apply In the event any
of the conditions of the specifications violate the code for any industry,then
such code conditions shall prevail
33 0102 The CONTRACTOR shall follow all applicable state and federal laws,
municipal ordinances and guidelines concerning soil erosion and sediment
control throughout the project and warranty period
33 01 03 The CONTRACTOR agrees to abide by all federal, state or local
regulations relative to equal opportunity to all persons, without
discrimination as to race, color, creed, religion, national origin, sex, marital
status, age and status with regard to public assistance or disability
3302 If the CONTRACTOR observes that the plans and specifications are at variance with
applicable laws, rules and/or regulations, the CONTRACTOR shall promptly notify
the OWNER'S REPRESENTATIVE in writing If the CONTRACTOR performs
any work knowing it to be contrary to such laws, rules and regulations and without
notice to the OWNER'S REPRESENTATIVE, the CONTRACTOR shall bear all
1 costs arising therefrom.
34. SAFETY PRECAUTIONS.
1
3401 Safety precautions at the site are a part of the construction techniques and processes
for which the CONTRACTOR shall be solely responsible. The CONTRACTOR is
solely responsible for handling and use of hazardous materials or waste,and informing
employees of any such hazardous materials or waste
3402 The CONTRACTOR has the sole obligation to protect or warn any individual of
potential hazards created by the performance of the work set forth herein The
CONTRACTOR shall, at its on expense, take such precautionary measures for the
protection of persons, property and the work as may be necessary
3403 The safety of the public and convenience of traffic shall be regarded as prime
importance during construction.
34 03 01 During normal construction, the CONTRACTOR shall not hinder or
inconvenience travel of streets or intersecting alleys for more than two
blocks at any one time The CONTRACTOR shall use warning signs
as necessary to adequately protect the traffic If the OWNER or other
appropriate entity approves a street closure,the CONTRACTOR shall
furnish and maintain at each end of the closed section, at all
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intersecting streets within the section, and in all intersecting streets at
a distance of one block on each side of the work, properly worded
signs and barricades announcing the closure to the public The
CONTRACTOR shall not be allowed to start any operation that will
close a street or streets until the required barricades are in place
Barricades and warning signs shall meet the specifications as shown in
the plans and/or specifications. Warning lights shall be kept burning
from sunset to sunrise When a street is to be closed, the
CONTRACTOR must notify the OWNER'S Engineering and Public
Works Departments 48 hours in advance of the closure
34 03 02 The CONTRACTOR shall remove, as soon as practicable,
I accumulated rubbish, surplus dirt, etc , from the construction site,
thereby opening each block for public use. Use by the public,
however, of any portion of a street where work has been done, shall
not constitute in itself acceptance of the work done therein Backfill
and shape trenches across street intersections or driveways to permit
safe usage at night If trenches must be left open for any length of
time, the CONTRACTOR shall span with wooden mats or bridges to
permit traffic flow and prevent injury to the public When driveways
are cut, the OWNER may direct the immediate placement of mats for
ingress and egress of vehicles if, in the OWNER'S
REPRESENTATIVE or OWNER'S opinion, undue hardship to
property owners would otherwise result
3403.03 The CONTRACTOR shall not block ditches inlets fire hydrants,etc
The CONTRACTOR shall provide temporary drainage where
necessary or as directed by the OWNER'S REPRESENTATIVE or
the OWNER.
34 03 04 When persons or equipment are working in streets open to moving
traffic, or if otherwise ordered by the OWNER'S
REPRESENTATIVE, the CONTRACTOR shall furnish flagmen for
direction of traffic to protect both the moving traffic and the
contractor's operations The flagmen shall wear an orange fluorescent
vest over their normal work clothes
34.04 The CONTRACTOR shall be held responsible for all damages to property, personal
injuries and/or death due to failure to use safety devices of any type or nature that
may be required to protect or warn any individual of potential hazards created by the
performance of the work, and when any property damage is incurred, the damaged
portion shall immediately be replaced or compensated for by the CONTRACTOR at
its own cost and expense
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34.05 The CONTRACTOR shall indemnify, hold harmless,and defend the
OWNER, its officers, agents and employees, including the
OWNER'S REPRESENTATIVE, (hereinafter in this subsection
collectively referred to as "OWNER")from any liability of whatever
nature caused by the CONTRACTOR'S failure to comply with
applicable federal, state, or local regulations that touch upon or
concern the maintenance of a safe and protected working
environment and the safe use and operation of machinery and
equipment in that working environment no matter where fault or
responsibility lies. Such indemnity shall indemnify and protect the
OWNER from the consequences of the OWNER'S own negligence,
when that negligence is the concurring cause of the injury, death or
damages and from the consequences of the CONTRACTOR'S joint
or sole negligence. It is the expressed intention of the parties hereto,
both the CONTRACTOR and the OWNER, that the indemnity
provided for in this paragraph is an indemnity by the
CONTRACTOR to indemnify, protect and defend the OWNER from
the consequences of the OWNER'S own negligence where that
inegligence is a concurring cause of the injury, death or damage and
from the CONTRACTOR's own negligence where that negligence is
the sole or concurring cause of the injury, death or damage.
Furthermore, the indemnity provided for in this paragraph shall
have no application to any claim, loss, damage, cause of action, suit
and liability where the iniurv, death or damage results from the sole
negligence of the OWNER unmixed with the fault of any other person
or entity.
35. INDEMNITY.
35.01 The CONTRACTOR agrees to and shall indemnify, hold harmless
and defend, the OWNER, its officers, agents and employees,
including the OWNER'S REPRESENTATIVE, (hereinafter in this
article 35 and all sections hereunder collectively referred to as
OWNER"), from and against any and all claims, losses, damages,
causes of action, suits and liability of every kind, including all
expenses of litigation, court costs, and attorneys' fees for iniury to or
death of any person, or for damage to any property, arising out of or
in connection with the work done by the CONTRACTOR under this
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Contract, where such iniuries, death or damages are caused by the
sole or ioint negligence of the CONTRACTOR or the Joint negligence
of the OWNER and any other person or entity. It is the expressed
intention of the parties hereto, both the CONTRACTOR and the
OWNER, that the indemnity provided for in this paragraph is an
indemnity by the CONTRACTOR to indemnifv, protect and defend
the OWNER from the consequences of the OWNER'S own
negligence,where that negligence is a concurring cause of the iniury,
death or damage and from the consequences of the
CONTRACTOR'S own negligence,where that negligence is the sole
or concurring cause of the injury, death, or damage. Furthermore,
the indemnity provided for in this paragraph shall have no
application to the OWNER for any claim, loss, damage, cause of
action, suit and liability where the iniury, death or damage results
from the sole negligence of the OWNER, unmixed with the fault of
any other person or entity.
35.02 The CONTRACTOR shall indemnify, protect and defend the
OWNER from the consequences of the OWNER'S concurrent
negligence in accordance with Section 35.01 for all work done by the
CONTRACTOR, includine, but not limited to, the followine specific
instances:
1 35.02.01 In the event the OWNER is damaeed due to the act,
omission, mistake, fault or default of the
CONTRACTOR, then the CONTRACTOR shall
indemnify and hold the OWNER AND THE OWNER'S
REPRESENTATIVE harmless for such damage.
35.02.02 The CONTRACTOR, shall indemnify and hold the
OWNER harmless from any claims of material
suppliers, mechanics, laborers, or other subcontractors.
35.02.03 The CONTRACTOR shall indemnify and hold the
OWNER harmless from any and all iniuries to or claims
of adiacent property owners caused by the
CONTRACTOR, its agents, employees and
representatives.
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35.02.04 The CONTRACTOR shall be responsible for any
damage to the floors, walls, etc., caused by the
CONTRACTOR, its agents, employees and
representatives or their equipment during installation.
35.02.05 The CONTRACTOR shall also be responsible for all
subcontractors hired by it.
35.03 IN THE EVENT THAT ANY ACTION OR PROCEEDING IS
BROUGHT AGAINST THE OWNER BY REASON OF ANY OF
THE INDEMNITIES PROVIDED FOR HEREIN, INCLUDING,
BUT NOT LIMITED TO, THOSE INCLUDED IN ARTICLES 34,
35 AND 37 OF THIS AGREEMENT, THE CONTRACTOR
FURTHER AGREES AND COVENANTS TO DEFEND THE
ACTION OR PROCEEDING BY LEGAL COUNSEL
ACCEPTABLE TO THE OWNER.
35.04 The indemnities provided for herein, including, but not limited to,
those contained in articles 34, 35 and 37, will survive the expiration
or termination of this Agreement.
1 36. RELEASE
By this Agreement, the OWNER does not consent to litigation and expressly revokes any
consent to litigation that it may have granted by the terms of this Agreement, any charter, or
applicable state law The CONTRACTOR assumes full responsibility for the work to be
performed and releases, relinquishes, and discharges the OWNER, its officers, agents and
employees from all claims, demands and causes of action of every kind and character for any
injury to, including, but not limited to, death of any person (whether third persons, the
CONTRACTOR, or employees of either of the parties) This release includes the cost of
defense of any claim and any loss of or damage to property(whether property of the parties
or of third parties) that is caused by or alleged to be caused by, ansing out of, or in
connection with the CONTRACTOR'S work to be performed under this Agreement whether
or not said claims, demands, and causes of action are covered in whole or in part by
insurance
1 37. ROYALTIES AND LICENSING FEES.
The CONTRACTOR shall pay all royalties and license fees, and shall provide for the use of
any design, device, material or process covered by letters patent or copyright by suitable legal
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agreement with the patentee or owner The CONTRACTOR warrants that the
products hereby incorporated into the proiect and/or any product used in
association with the proiect does not infringe upon or violate any patent,
copyrieht, trade secret or any other proprietary right of any third party; in
the event of any claim by any third party against the OWNER or its
officers, agents, and/or employees, including the OWNER'S
REPRESENTATIVE, (hereinafter in this section collectively referred to as
OWNER") the OWNER shall notify the CONTRACTOR and the
CONTRACTOR shall defend such claim, in the OWNER'S name, but at
the CONTRACTOR'S expense, and shall indemnify, hold harmless, and
defend the OWNER from and against any and all claims, damages,,losses,
causes of action, suits, and liability of every kind, including, but not limited
to, all expenses of litigation, court cost, and attorneys' fees, for iniury,
death, or damage to any third party arisine out of or in connection with the
product(s) used in the performance of this Contract and regardless of
whether such claim by and any resulting iniury, death, or damage to third
parties is caused in part by the acts and/or omissions of the OWNER It is
the expressed intention of the parties hereto, both the CONTRACTOR and
the OWNER, that the indemnity provided for in this paraeraph is an
indemnity by the CONTRACTOR to indemnify, protect and defend the
OWNER(i) from the consequences of the OWNER'S acts and/or omissions,
where the OWNER'S acts and/or omissions are the concurring cause of the
infringement upon or violation of any patent, copyright, trade secret, or
other proprietary right and any resulting iniury, death, or damage of any
third party in connection with the products provided,incorporated,or used
in the proiect under this Contract and/or GO from the consequences of the
CONTRACTOR'S acts and/or omissions, where the CONTRACTOR'S
acts and/or omissions are the sole or concurring cause of the infringement
upon or violation of any patent, copyright, trade secret, or other
proprietary right and any resultine Wury, death, or damage of any third
party in connection with the products provided,incorporated,or used in the
proiect under this Contract. Furthermore, the indemnity provided for in
this paraeraph shall have no application to the OWNER for any claim,loss,
damage, cause of action, suit, and liability where the infringement upon or
violation of any patent, copyright, trade secret or other proprietary rights
and resultine iniury, death, or damage results from the sole acts and/or
omissions of the OWNER, unmixed with the fault of any other person or
entity. If the material, design, service, product or process specified or required by the
OWNER'S REPRESENTATIVE is an infringement,the CONTRACTOR shall be responsible
3 5-
for such loss, unless he promptly gives such information to the OWNER'S
REPRESENTATIVE
38. ABANDONMENT.
3801 In case the CONTRACTOR should abandon,fail or refuse to resume work within ten
10) days after written notification from the OWNER or the OWNER'S
REPRESENTATIVE, or if the CONTRACTOR fails to comply with the orders of the
1 OWNER or the OWNER'S REPRESENTATIVE, when such orders are consistent
with the Contract Documents,then, and in that case,where performance and payment
bonds exist, the sureties on these bonds shall be notified in writing and directed to
complete the work, and a copy of said notice shall be delivered to the
CONTRACTOR
3802 After receiving said notice of abandonment, the CONTRACTOR shall not remove
from the work any machinery, equipment,tools, materials, or supplies then on thejob,
but the same,together with any materials and equipment under contract for the work,
may be held for use on the work by the OWNER or the surety on the performance
bond, or another contractor in completion of the work,and the CONTRACTOR shall
not receive any rental or credit therefor, it being understood that the use of such
equipment and materials will ultimately reduce the cost to complete the work and be
reflected in the final settlement
1
39. BREACH OF CONTRACT.
The OWNER shall have the right to declare the CONTRACTOR in breach of this Agreement
for cause when the OWNER determines that this Agreement is not being performed according
to its understanding of the intent and meaning of this Agreement Such breach shall not in any
way invalidate, abrogate or terminate the CONTRACTOR's obligation under this Agreement
40. TERMINATION.
4001 If this Agreement is terminated for cause, the OWNER shall have the right but shall
not be obligated to complete the work either itself or by others; and to this end, the
OWNER shall be entitled to take possession of and use such equipment and materials
as may be on the job site and to exercise all rights, options and privileges of the
CONTRACTOR under its subcontracts, purchase orders or otherwise, and the
CONTRACTOR shall promptly assign such rights, options, and privileges to the
OWNER If the OWNER elects to complete the work itself or by others,pursuant to
the foregoing, then the CONTRACTOR will reimburse the OWNER for all costs
incurred by the OWNER'S REPRESENTATIVE, (including, without limitation,
applicable, general and administrative expenses, and field overhead, and the cost of
36-
II
necessary equipment, materials and field labor) in correcting work by the
tCONTRACTOR that fails to meet the requirements of the Contact Documents
4002 After receipt of a notice of termination, whether with or without cause, the
CONTRACTOR shall, in good faith and to the best of its ability, do all things
necessary in light of such notice to assure the efficient and proper close-out of the
terminated work (including, but not limited to, the protection of the OWNER'S
property) Among other things the CONTRACTOR shall, except as otherwise
directed or approved by the OWNER, do the following
a) Stop the work on the date and to the extent specified in the notice of
termination,
b) Place no further orders or subcontracts for services, equipment, or material,
except as may be necessary for completion of such portion of the work as is
not terminated;
c) Immediately terminate all orders and subcontracts to the extent that they
relate to the performance of the work terminated by the notice of termination,
d) Assign to the OWNER, in the manner and to the extent directed by it, all of
the right, title and interest of the CONTRACTOR under the orders or
subcontracts so terminated in which case,the OWNER shall have the right to
settle or pay any or all claims arising out of the termination of such orders and
subcontracts,
e) With the approval of the OWNER, settle all outstanding liabilities and all
claims arising out of such termination, orders and subcontracts,
f) Deliver to the OWNER, when directed by the OWNER, all documents and all
property, which if the work had been completed,the CONTRACTOR would
have been required to account for or deliver to the OWNER, and transfer title
to such property to the OWNER to the extent not already transferred,and/or
g) Take actions necessary or as otherwise directed by the OWNER'S
REPRESENTATIVE or the OWNER for the protection and preservation of
the work
40.03 In the event of such termination, there shall be an equitable reduction of the Payment
Amount to reflect the reduction in the work. Costs incurred after the effective date of
the notice of termination shall not be treated as reimbursable costs unless they relate
to carrying out the unterminated portion or taking close-out measures
3 7-
41. TERMINATION FOR CAUSE.
4101 Without prejudice to any other legal or equitable right or remedy that the OWNER
would otherwise possess hereunder or as a matter of law,the OWNER,upon giving
the CONTRACTOR five(5)days' prior written notice, shall be entitled to terminate
this Agreement in its entirety at any time for the following•
41 01 01 If the CONTRACTOR becomes insolvent, commits any act of
bankruptcy, makes a general assignment for the benefit of creditors,or
becomes the subject of any proceeding commenced under any statute
or law for the relief of debtors,
41 01 02 If a receiver, trustee or liquidator of any of the property or income of
the CONTRACTOR shall be appointed,
41.0103 If the CONTRACTOR shall fail to prosecute the work or any part
thereof with diligence necessary to ensure its progress and completion
as prescribed by the time schedules,
4101.04 If within five (5) calendar days after written notice thereof from the
OWNER or the OWNER'S REPRESENTATIVE, the
CONTRACTOR shall fail to remedy any defective work or work that
does not conform to the requirements of this Agreement,
specifications, and other Contact Documents, or any other default
under any of the terms,provisions, conditions,or covenants contained
to this Agreement or any other current agreement between the
CONTRACTOR and another OWNER for similar construction work
on other property; or
41 01 05 If the CONTRACTOR shall fail for any reason other than the failure
by the OWNER to make payment called upon when due.
4102 In the event of such termination for cause, the CONTRACTOR shall only be paid its
reimbursable costs incurred prior to the effective date of the termination and shall not
be entitled to receive any further progress payment hereunder and shall be further
subject to any claim that the OWNER'S REPRESENTATIVE or the OWNER may
have against the CONTRACTOR under the provisions of this Agreement or as a
matter of law, including the refund of any overpayments of reimbursable costs or
progress payments.
42. TERMINATION FOR CONVENIENCE.
42.01 The performance of the work may be terminated at any time in whole or in part, by
the OWNER'S REPRESENTATIVE for its convenience Any such termination shall
3 8-
1
be effected by delivery to the CONTRACTOR of a written notice (notice of
termination)specifying the extent to which performance of the work is terminated and
the date upon which termination becomes effective. If, for whatever reason, this
contract is terminated for cause, which is later determined not to exist, the parties
agree that the contract will be deemed to be terminated for convenience.
4202 In the event of termination for convenience,the CONTRACTOR shall only be paid its
reimbursable costs incurred prior to the effective date of the termination notice and
shall not be entitled to receive any further progress payment hereunder and shall be
further subject to any claim the OWNER may have against the CONTRACTOR under
other provisions of this Agreement or as a matter of law, including the refund of any
overpayment of reimbursable costs and/or progress payment
43. COMPLETION AFTER ABANDONMENT OR TERMINATION.
43.01 In the event that the CONTRACTOR has abandoned the project or the OWNER has
terminated the contract for cause and where there is no performance bond provided or
where there is a surety but such surety,within seven(7)calendar days after the notice
demanding completion is sent, fails to commence the completion and diligent
prosecution of the work in compliance with this Agreement, then the OWNER may
AT ITS OPTION provide for completion of the work in either of the following
elective manners.
4301 01 The OWNER may employ such force of men and use such machinery,
equipment, tools, materials, and supplies as said OWNER may deem
necessary to complete the work and charge the expense of such labor,
machinery, equipment, tools, materials, and supplies to said
CONTRACTOR, and expense so charged shall be deducted and paid
by the OWNER out of such monies as may be due, or that may
thereafter at any time become due to the CONTRACTOR under and
by virtue of this Agreement In case such expense is less than the sum
which would have been payable under this contract, if the same had
been completed by the CONTRACTOR, then said CONTRACTOR
and/or its surety hereby waives any and all privileges, rights, and
claims to receive the difference In case such expense is greater than
the sum which would have been payable under this contract, if the
same had been completed by said CONTRACTOR, then the
CONTRACTOR and/or its surety shall, within seven (7) calendar
days, pay the amount of such excess to the OWNER
43 01 02 The OWNER, under sealed bids, after notice published as required by
law at least twice in a newspaper having general circulation in the city,
may let the contract for the completion of the work under substantially
the same terms and conditions which are provided in this contract In
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case any increase in cost to the OWNER under the new contract as
compared to what would have been the cost under this contract, such
increase shall be charged to the CONTRACTOR and the surety shall
be and remain bound therefor However, should the cost to complete
any such new contract prove to be less than what would have been the
cost to complete under this contract, the CONTRACTOR and/or its
surety hereby waives any and all privileges, rights and claims to such
excess
4302 In the event of abandonment by the CONTRACTOR, the CONTRACTOR shall
assign to the OWNER,in the manner and to the extent directed by the OWNER,all of
the right, title, and interest of the CONTRACTOR in and to any and all materials
located on the property and any subcontracts for work to be performed on the
property, in which case the OWNER shall have the right to settle or pay all claims
arising out of the termination of such orders and subcontracts
1
44. DAMAGES.
4401 Without prejudice to any other legal or equitable right or remedy that the OWNER
would otherwise possess hereunder or as a matter of law, the OWNER upon giving
the CONTRACTOR five (5) days' prior written notice shall be entitled to damages
for breach of contract, upon but not limited to the following occurrences
44 01 01 If the CONTRACTOR shall fail to remedy any default after written
notice thereof from the OWNER or the OWNER'S
REPRESENTATIVE; or
t44 01 02 If the CONTRACTOR shall fail for any reason other than the failure
by the OWNER to make payments called upon when due, or
4401.03 If the CONTRACTOR commits a substantial default under any of the
terms, provisions, conditions or covenants contained in this
Agreement
45. INVALIDITY.
If any provision of this Agreement shall be held to be invalid, illegal or unenforceable by a
court or other tribunal of competent jurisdiction, the validity, legality and enforceability ofthe
remaining provisions shall not in any way be affected or impaired thereby The parties shall
use their best efforts to replace the respective provisions or provisions of this Agreement with
the legal terms and conditions approximating the original intent of the parties
40-
46. ENTIRE AGREEMENT.
It is understood that this Agreement contains the entire agreement between the parties and
1 supersedes any and all prior agreements, arrangements or understandings between the parties
relating to the subject matter There are no oral understandings, statements, promises or
inducements contrary to the terms of this Agreement This Agreement cannot be changed or
1 terminated orally No verbal agreement or conversation with any officer, agent,
representative or employee of the OWNER, either before or after the execution of this
Agreement, shall affect or modify any of the terms or obligations hereunder
i
47. AMENDMENT.
No amendments to this Agreement shall be effective and binding until they are reduced to
writing and signed by duly authorized representatives of both parties
48. TEXAS LAW.
This Agreement has been made under and shall be governed by the laws of the State of Texas
49. PLACE OF PERFORMANCE.
The place of making and the place of performance for all purposes shall be Baytown, Harris
County, Texas.
50. NON-WAIVER
50.01 Failure of any party, at any time, to enforce a provision of this Agreement shall in no
way constitute a waiver of that provision, nor in any way affect the validity of this
Agreement or part hereof or the right of the OWNER or the OWNER'S
REPRESENTATIVE thereafter to enforce each and every provision hereof. No term
of this Agreement shall be deemed waived or breach excused unless the waiver shall
be in writing and signed by the party claimed to have waived the same Furthermore,
any consent to or waiver of a breach will not constitute consent to or waiver of or
excuse of any other different or subsequent breach
5002 Nothing contained in this Agreement or any of the Contract Documents shall be
deemed to limit or waive the sovereign immunity of the Owner
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51. HEADINGS.
The article headings are used in this Agreement for convenience and reference purposes only
1 and are not intended to define, limit or describe the scope or intent of any provision of this
Agreement and shall have no meaning or effect upon its interpretation
52. GENDER AND NUMBER
Words of any gender used in this Agreement shall be held and construed to include any other
gender, and words in the singular number shall be held to include the plural, and vice versa,
unless context requires otherwise
53. CONSTRUCTION OF AGREEMENT.
The parties agree that this Agreement shall not be construed in favor of or against any party
on the basis that the party did or did not author this Agreement
54. AUTHORITY TO ENTER CONTRACT.
Each party has the full power and authority to enter into and perform this Agreement,and the
person signing this Agreement on behalf of each party has been properly authorized and
empowered to enter into this Agreement The persons executing this Agreement hereby
represent that they have authorization to sign on behalf of their respective corporations and/or
business entities
55. AGREEMENT READ.
The parties acknowledge that they have read,understand and intend to be bound by the terms
and conditions of this Agreement.
56. ASSIGNMENT.
5601 CONTRACTOR may not assignor otherwise transfer this Agreement or any rights or
obligations hereunder without the prior written consent of the OWNER
56 02 NT TCORAC OR hereby assigns to OWNER any and all claims for overcharges
associated with this Project,which apse under the antitrust laws of the United States
42-
CONTRACTOR shall require all subcontractors to make the same assignment to the
OWNER prior to performing any work under this Contract
57. SUCCESSORS AND ASSIGNS.
This Agreement shall inure to the benefit of and be binding upon the CONTRACTOR and its
successors and assigns
58. MULTIPLE ORIGINALS.
It is understood and agreed that this Agreement be executed in a number of identicalgTmay
counterparts each of which shall be deemed an original for all purposes
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple
copies, each of which shall be deeme be an original, but all of which shall constitute but one and
the same Agreement on the day o 2006,the date of execution by
the City Manager of the City of Bayto
1 oma G;nrr P h-ab' -
Company Name)
Si na re)
Ty CAQNEs
Printed Name)
P1EM6F,
Title)
0
TObyti
CITY OF OWN
A,:
GAR JA SON, City Manager
TTES
Lorri Coo d , y erk
APPROVED AS TO FO
1 fMACIO R,AMIREZ,S ., ity Attorney
STATE OF TEXAS
1 COUNTY OF RABBIS
Before me on this day personally appeared inhi er
capacity as Glhz^6?<, of on behalf of such
corporation or other business entity,
J( known to me,
proved to me on the oath of or
proved to me through his/her current
description ofidentificatzon card or
other document issued by the federal government or any state government that
contains the photograph and signature of the acknowledging person)
check one)
to b he person whose name is subscribed to the foregoing instrument, and acknowledged to me that
h sh executed that instrument for the purposes and consideration therein expressed
Craven under my hand and seal of office this day of 2006
I11111/ '
G P NSF,°,i li i f .///AL
o aY Pie` T-No Public in and for the State of
texasz
N9re My commission expires-
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Exhibit "A"
wee Rates
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w A-n liocument xetnevat Page 1 of 3
LNERAL DECISION. TX20030133 02/24/2006 TX133
ate: February 24, 2006
eneral Decision Number: TX20030133 02/24/2006
State: Texas
lonstruction Type. Residential
county•
Harris County in Texas.
odification Number Publication Date
0 01/06/2006
1 02/24/2006
ELEV0031-002 01/01/2005
Rates Fringes
Elevator Mechanic. . . . . . . . . . . $ 28 40 12 115+A
1 A = Under 5 Years Employment, 6% BHR; Over 5 Years
Employment, 8% BHR. PAID Holidays. New Year's Day,
Memorial Day, Independence Day, Labor Day, Veterans' Day,
Thanksgiving Day, the Friday after Thanksgiving Day, and
Christmas Day.
FTX0669-001 01/01/2005
Rates Fringes
Sprinkler Fitter, Fire. . . . . . . . .$ 22_62------------10.50
SHEE0054-008 04/01/2005
Rates Fringes
Sheetmetal Worker (Excluding
HVAC Work) 22-13-------------8 25
SUTX2005-030 12/15/2005
Rates Fringes
Bricklayer. .15 00
Plasterer 16.60
Tile setter. . . 14 08
Acoustical Ceiling Installer. $ 12 50
Carpenter (Includes
Batt/Blown Insulation,
Formwork & Overhead Door
Installation. . . . . . 12.06 1.41
Carport Structural Supports
Installer. . . . . . . . . . . . . . . . . . . . .$ 11.46 2.61
Cement Manson/Concrete Finisher$ 13 68 75
Drywall Finishers 12 00
rywall Hanger 12 71
Electrician(Incl. Low Voltage
Wiring and Installation of
Alarms) 17.05 6.32
Gutter and Siding Installer $ 18 59 1.41
HVAC Mechanic (Duct, Pipe &
p.//frwebgate.access.gpo.gov/cgi-bin/getdoc cgi?dbname=Davis-Bacon&docid=TX20030I33 3/9/2006
wAis vocument xetneval Page 2 of 3
Installation of System) 12.82
Ironworker
Ornamental. . . . . . . . . . . . . . . . . .$ 16.29
Reinforcing 11 25 2.35
Structural 17.21
Laborers:
Common. . . . . . . . . . . . . . . . . . . .$ 8. 88 1 10
1 Landscape and Irrigation . .$ 9.02
Mason Tender Brick.9 97 68
Mason Tender Cement 9.46 68
1
Pipelayer. . . . . . . . . . . . . . . . . . $ 10 06
Plaster Tender 11. 10
Painter:
Brush, Roller, and Spray. . . .$ 11.41
Parking Lot Striping . . . . .$ 14.21
Plumbers (Excluding HVAC Pipe) $ 17.96 1. 15
Power Equipment Operator
Backhoe. . 13.55 69
Bulldozer 12.67 69
Forklift. 12.54
Front End Loader 12.00 69
Grader. . . . . . .
1
G 13 67
Roofers. 10.00
Sheet Metal Worker (HVAC Duct
Only) . . 12.76 1 95
1 Soft Floor Layers, Carpet and
Vinyl. . . . . . . . 14 50
Truck drivers. . . . . . . . . . . . . . . . . $ 13 43
IE-L--E-R-S--D - Receive rate prescribed for craft performing
operation to which welding is incidental.
Unlisted classifications classifications needed for work not included within
he scope of the classifications listed may be added after
ward only as provided in the labor standards contract clauses
29CFR 5.5 (a) (1) (ii) ) .
I---t--e--l-i-s-t-i-n-gnh above, the "SU" designation means that rates
listed under the identifier do not reflect collectively
Iargained wage and fringe benefit rates. Other designations
ndicate unions whose rates have been determined to be
prevailing.
WAGE DETERMINATION APPEALS PROCESS
Has there been an initial decision in the matter? This can
be:
an existing published wage determination
a survey underlying a wage determination
a Wage and Hour Division letter setting forth a position on
a wage determination matter
a conformance (additional classification and rate) ruling
On survey related matters, initial contact, including requests
or summaries of surveys, should be with the Wage and Hour
egional Office for the area in which the survey was conducted
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WAIS Document Ketneval Page 3 of 3
ecause those Regional Offices have responsibility for the
avis-Bacon survey program If the response from this initial
contact is not satisfactory, then the process described in 2 )
nd 3. ) should be followed.
ith regard to any other matter not et ripe for the formalYP
rocess described here, initial contact should be with the
ranch of Construction Wage Determinations. Write to:
Branch of Construction Wage Determinations
Wage and Hour Division
U S Department of Labor
200 Constitution Avenue, N.W
Washington, DC 20210
If the answer to the question in 1. ) is yes, then an
interested party (those affected by the action) can request
teview
and reconsideration from the Wage and Hour Administrator
See 29 CFR Part 1.8 and 29 CFR Part 7) . Write to:
Wage and Hour Administrator
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
Ihe request should be accompanied by a full statement of the
nterested party's position and by any information (wage
payment data, project description, area practice material,
1tc. )
that the requestor considers relevant to the issue.
If the decision of the Administrator is not favorable an
interested party may appeal directly to the Administrative
eview Board (formerly the Wage Appeals Board) . Write to-
Administrative Review Board
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
All decisions by the Administrative Review Board are final.
END OF GENERAL DECISION
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l28 TAC§110 110
1 EXHIBIT "B"
Article B-1 Workers' Compensation Insurance Coverage.
A Definitions
Certificate of coverage (certificate)--A copy of a certificate of insurance, a certificate of
authority to self-insure issued by the commission, or a coverage agreement (TWCC-81,
TWCC-82, TWCC-83, or TWCC-84), showing statutory workers' compensation insurance
coverage for the person's or entity's employees providing services on a project, for the
duration of the project
Duration of the project--includes the time from the beginning of the work on the project until
the CONTRACTOR's/person's work on the project has been completed and accepted by the
governmental entity
I Persons providing services on the project(subcontractor in 406 096)--includes all persons or
entities performing all or part of the services the CONTRACTOR has undertaken to perform
on the project, regardless of whether that person contracted directly with the
CONTRACTOR and regardless of whether that person has employees This includes,without
limitation,independent contractors, subcontractors,leasing companies,motor carriers,owner-
operators, employees of any such entity, or employees of any entity which furnishes persons
to provide services on the project Services include,without limitation, providing,hauling,or
delivering equipment or materials, or providing labor,transportation, or other services related
to a project Services do not include activities unrelated to the project, such as food/beverage
vendors, office supply deliveries, and delivery of portable toilets
B The CONTRACTOR shall provide coverage, based on proper reporting of classification
codes and payroll amounts and filing of any coverage agreements, which meets the statutory
requirements of Texas Labor Code, Section 401 011(44) for all employees of the
1
CONTRACTOR providing services on the project, for the duration of the project.
C The CONTRACTOR must provide a certificate of coverage to the governmental entity prior
to being awarded the contract.
D If the coverage period shown on the CONTRACTOR'S current certificate of coverage ends
I during the duration of the project,the CONTRACTOR must, prior to the end ofthe coverage
period, file a new certificate of coverage with the governmental entity showing that coverage
has been extended
E The CONTRACTOR shall obtain from each person providing services on a project, and
provide to the governmental entity
1-
28 TAC§110 110
1) a certificate of coverage, prior to that person beginning work on the project, so the
governmental entity will have on file certificates of coverage showing coverage for all
persons providing services on the project, and
2) no later than seven days after receipt by the CONTRACTOR, a new certificate of
coverage showing extension of coverage, if the coverage period shown on the current
certificate of coverage ends during the duration of the project
F The CONTRACTOR shall retain all required certificates of coverage for the duration of the
project and for one year thereafter.
I v The CONTRACTOR shall notify the governmental entity in writing by certified mail or
personal delivery, within 10 days after the CONTRACTOR knew or should have known, of
any change that materially affects the provision of coverage of any person providing services
1 on the project
H. The CONTRACTOR shall post on each project site a notice, in the text, form and manner
prescribed by the Texas Workers'Compensation Commission,informing all persons providing
services on the project that they are required to be covered, and stating how a person may
verify coverage and report lack of coverage
I The CONTRACTOR shall contractually require each person with whom it contracts to
1
provide services on a project, to
1) provide coverage, based on proper reporting of classification codes and
payroll amounts and filing of any coverage agreements, which meets the
statutory requirements of Texas Labor Code, Section 401 011(44) for all of
its employees providing services on the project, for the duration ofthe project,
2) provide to the CONTRACTOR, prior to that person beginning work on the
project, a certificate of coverage showing that coverage is being provided for
all employees of the person providing services on the project,for the duration
of the project;
3) provide to the CONTRACTOR, prior to the end of the coverage period, a
new certificate of coverage showing extension of coverage, if the coverage
period shown on the current certificate of coverage ends during the duration
of the project;
4) obtain from each other person with whom it contracts, and provide to the
CONTRACTOR
a) a certificate of coverage, prior to the other person beginning
work on the project, and
1 28 TAC§110 110
b) a new certificate of coverage showing extension of coverage,
prior to the end of the coverage period,if the coverage period
shown on the current certificate of coverage ends during the
duration of the project,
5) retain all required certificates of coverage on file for the duration of the
project and for one year thereafter,
6) notify the governmental entity in writing by certified mail or personal delivery,
within 10 days after the person knew or should have known, of any change
that materially affects the provision of coverage of any person providing
services on the project, and
7) contractually require each person with whom it contracts, to perform as
required by paragraphs (1)-(7), with the certificates of coverage to be
provided to the person for whom they are providing services
J BY signingsi this contract or providing or causing to be provided a certificate of coverage,the8
CONTRACTOR is representing to the governmental entity that all employees of the
CONTRACTOR who will provide services on the project will be covered by workers'
compensation coverage for the duration of the project, that the coverage will be based on
proper reporting of classification codes and payroll amounts, and that all coverage agreements
will be filed with the appropriate insurance carrier or, in the case of a self-insured, with the
commission's Division of Self-Insurance Regulation Providing false or misleading information
I
may subject the CONTRACTOR to administrative penalties, criminal penalties,civil penalties,
or other civil actions
1
K The CONTRACTOR's failure to comply with any of these provisions is a breach of contract
by the CONTRACTOR which entitles the governmental entity to declare the contract void if
the CONTRACTOR does not remedy the breach within ten days after receipt of notice of
breach from the governmental entity
Article B-2 Required Notice.
The CONTRACTOR shall post a notice on each project site informing all persons providing
1 services on the project that they are required to be covered, and stating how a person may verify
current coverage and report failure to provide coverage This notice does not satisfy other posting
requirements imposed by the Act or other commission rules This notice must be printed with a title in
at least 30 point bold type and text in at least 19 point normal type, and shall be in both English and
Spanish and any other language common to the worker population The text for the notices shall be
the following text provided by the commission on the sample notice,without any additional words or
rchanges
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28 TAC §110 110
REQUIRED WORKERS' COMPENSATION COVERAGE
The law requires that each person working on this site or providing services related to
this construction project must be covered by workers'compensation insurance This
includes persons providing, hauling, or delivering equipment or materials, or
providing labor or transportation or other service related to the project, regardless of
the identity of their employer or status as an employee
iCall the Texas Workers' Compensation Commission at 512-440-3789 to receive
information on the legal requirement for coverage, to verify whether your employer
has provided the required coverage, or to report an employers failure to provide
coverage.
Article B-3 Required Contract Provision.
The CONTRACTOR shall include in all contracts to provide service on the project the following
language
By signing this contract or providing or causing to be provided a certificate of
coverage, the person signing this contract is representing to the governmental entity
that all employees of the person signing this contract who will provide services on the
project will be covered by workers' compensation coverage for the duration of the
project,that the coverage will be based on proper reporting of classification codes and
payroll amounts, and that all coverage agreements will be filed with the appropriate
insurance carrier or, in the case of a self-insured, with the commission's Division of
Self-Insurance Regulation Providing false or misleading information may subject the
contractor to administrative penalties,criminal penalties, civil penalties, or other civil
actions
Article B-4 Applicability.
1 I The coverage requirement in this Exhibit`B" does not apply to sole proprietors,partners,and
corporate officers who meet the requirements of the Act,406.097(c), and who are explicitly excluded
from coverage in accordance with the Act,.406 097(a) (as added by House Bill 1089, 74th
Legislature, 1995, 120). This subsection applies only to sole proprietors, partners, and corporate
executive officers who are excluded from coverage in an insurance policy or certificate of authority to
self-insure that is delivered, issued for delivery, or renewed on or after January 1, 1996
II The coverage requirement in this Exhibit "B" does not apply to motor carriers who are
required pursuant to Texas Civil Statutes, Article 6675c, to register with the Texas Department of
28 TAC§110 110
Transportation and who provide accidental insurance coverage pursuant to Texas Civil Statutes,
Article 6675c,.40).
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