CONTRACT 5795 Public Works Contract CLOSEDAgreement No. 5795
PUBLIC WORKS CONTRACT
BETWEEN
THE CITY OF EL SEGUNDO AND
A-1 FENCE COMPANY
ON-CALL FENCE REPAIRS
PROJECT NO.: PW 19-21
This CONTRACT is entered into this 1St day of October, 2019, by and between the
CITY OF EL SEGUNDO, a general law city and municipal corporation ("the City") and
A-1 Fence Company, a California Corporation ("the Contractor").
1. WORK.
A. The Contractor will provide all work listed in the Contractor's Proposal,
attached as Exhibit "A" (the "Work"). The Contractor agrees to do additional
work arising from changes ordered by the City in accordance with the
Contract Documents.
B. The Contractor and the City agree to abide by the terms and conditions
contained in the Contract Documents.
C. The Contractor will furnish all of the labor; supplies and materials;
equipment; printing; vehicles; transportation; office space and facilities; all
tests, testing and analyses; and all matters whatsoever (except as
otherwise expressly specified to be furnished by the City) needed to perform
and complete the Work and provide the services required of the Contractor
by the Contract Documents.
D. "Contract Documents" means the Contractor's Proposal; this Contract;
Standard Specifications, attached as Exhibit "B"; Exhibits; Technical
Specifications; Notice to Proceed; Change Orders; Notice of Completion;
and all other documents identified in the Contract Documents which
together form the contract between the City and the Contractor for the Work.
The Contract Documents constitute the complete agreement between the
City and the Contractor and supersede any previous agreements or
understandings.
2. CONTRACT SUM. The City agrees to pay the Contractor a sum not to exceed Fifteen
Thousand dollars ($15,000.00) for the Work in the manner set forth in the Contract
Documents. The City may adjust this amount as set forth in the Contract Documents.
3. TIME FOR PERFORMANCE.
A. The term of this contract shall be for a period on ONE YEAR (the "Contract
Time.").
Agreement No. 5795
B. The Contract Time will commence when the City issues a notice to proceed.
The Contract Documents will supersede any conflicting provisions included
on the notice to proceed issued pursuant to this Contract.
C. The Contractor may not perform any Work until:
The Contractor furnishes proof of insurance as required by the
Contract Documents; and
The City gives the Contractor a written, signed, and numbered
purchase order and notice to proceed.
D. By signing this Contract, the Contractor represents to the City that the
Contract Time is reasonable for completion of the Work and that the
Contractor will complete the Work within the Contract Time.
E. Should the Contractor begin the Work before receiving written authorization
to proceed, any such Work is at the Contractor's own cost and risk.
4. PREVAILING WAGES. Pursuant to Labor Code § 1720, and as specified in 8
California Code of Regulations § 16000, the Contractor must pay its workers prevailing
wages. It is the Contractor's responsibility to interpret and implement any prevailing wage
requirements and the Contractor agrees to pay any penalty or civil damages resulting
from a violation of the prevailing wage laws. See Section 7-2 of the Standard
Specifications.
5. DISPUTES. Disputes arising from this contract will be determined in accordance with
the Contract Documents and Public Contracts Code §§ 10240-10240.13.
6. THIRD PARTY CLAIMS. In accordance with Public Contracts Code § 9201, the City
will promptly inform the Contractor regarding third -party claims against the Contractor,
but in no event later than ten (10) business days after the City receives such claims. Such
notification will be in writing and forwarded in accordance with the "Notice" section of the
Contract Documents. As more specifically detailed in the Contract Documents, the
Contractor agrees to indemnify and defend the City against any third -party claim.
7. TAXPAYER IDENTIFICATION NUMBER. The Contractor will provide the City with a
Taxpayer Identification Number.
8. PERMITS AND LICENSES. Unless otherwise provided, the Contractor, at its sole
expense, will obtain and maintain during the Contract Time, all necessary permits,
licenses, and certificates that may be required in connection with the Work.
9. OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps,
models, photographs and reports prepared by the Contractor under the Contract
2
Agreement No. 5795
Documents are the City's property. The Contractor may retain copies of said documents
and materials as desired, but will deliver all original materials to the City upon the City's
written notice.
10. INDEMNIFICATION. The Contractor agrees to indemnify, defend, and hold the City
harmless as set forth in the Contract Documents. The requirements as to the types and
limits of insurance coverage to be maintained by the Contractor as required by the
Contract Documents, and any approval of such insurance by the City, are not intended to
and will not in any manner limit or qualify the liabilities and obligations otherwise assumed
by the Contractor pursuant to the Contract Documents, including, without limitation, to the
provisions concerning indemnification.
11.INDEPENDENT CONTRACTOR. The City and the Contractor agree that the
Contractor will act as an independent contractor and will have control of all work and the
manner in which is it performed. The Contractor will be free to contract for similar service
to be performed for other employers while under contract with the City. The Contractor
is not an agent or employee of the City and is not entitled to participate in any pension
plan, insurance, bonus or similar benefits the City provides for its employees. Any
provision in this Contract that may appear to give the City the right to direct the Contractor
as to the details of doing the work or to exercise a measure of control over the work means
that the Contractor will follow the direction of the City as to end results of the work only.
12. AUDIT OF RECORDS. The Contractor will maintain full and accurate records with
respect to all services and matters covered under this Contract. The City will have free
access at all reasonable times to such records, and the right to examine and audit the
same and to make transcript therefrom, and to inspect all program data, documents,
proceedings and activities. The Contractor will retain such financial and program service
records for at least three (3) years after termination or final payment under the Contract
Documents.
13. NOTICES. All communications to either party by the other party will be deemed made
when received by such party at its respective name and address as follows:
The Citv
City of EI Segundo -Public Works
350 Main Street
EI Segundo, CA 90245
Attention: Arianne Bola
(310) 524-2364
abolaCelseau ndo.oro
The Contractor
A-1 Fence Company
2831 E. La Cresta Ave.
Anaheim, CA 92806
Attn: Erik Brown
(714) 630-6013 ext. 1004
erikOa1 fence.com
Any such written communications by mail will be conclusively deemed to have been
received by the addressee three (3) days after deposit thereof in the United States Mail,
postage prepaid and properly addressed as noted above. In all other instances, notices
will be deemed given at the time of actual delivery. Changes may be made in the names
Agreement No. 5795
or addresses of persons to whom notices are to be given by giving notice in the manner
prescribed in this paragraph.
14. NO THIRD PARTY BENEFICIARY. This Contract and every provision herein is for
the exclusive benefit of the Contractor and the City and not for the benefit of any other
party. There will be no incidental or other beneficiaries of any of the Contractor's or the
City's obligations under this Contract.
15. INTERPRETATION. This Contract was drafted in, and will be construed in
accordance with the laws of the State of California, and exclusive venue for any action
involving this Contract will be in Los Angeles County.
16. EFFECT OF CONFLICT. In the event of any conflict, inconsistency, or incongruity
between any provision of the Contract Documents, precedence will be as follows:
A. This Contract;
B. The Standard Specifications; and
C. Precedence of documents as determined in the Standard Specifications.
17. SEVERABILITY. If any portion of the Contract Documents are declared by a court of
competent jurisdiction to be invalid or unenforceable, then such portion will be deemed
modified to the extent necessary in the opinion of the court to render such portion
enforceable and, as so modified, such portion and the balance of this Contract will
continue in full force and effect.
18. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary
action has been taken by the Parties to authorize the undersigned to execute this Contract
and to engage in the actions described herein. This Contract may be modified by written
amendment. The City's city manager, or designee, may execute any such amendment on
the City's behalf.
19. ACCEPTANCE OF FACSIMILE SIGNATURES. The Parties agree that this Contract,
agreements ancillary to this Contract, and related documents to be entered into in
connection with this Contract will be considered signed when the signature of a party is
delivered by facsimile transmission. Such facsimile signature will be treated in all
respects as having the same effect as an original signature.
20. COVENANTS AND CONDITIONS. The parties agree that all of the provisions hereof
will be construed as both covenants and conditions, the same as if the words importing
such covenants and conditions had been used in each separate paragraph.
21. CAPTIONS. The captions of the paragraphs of this Contract are for convenience of
reference only and will not affect the interpretation of this Contract.
4
Agreement No. 5795
22. TIME IS OF ESSENCE. Time is of the essence for each and every provision of the
Contract Documents.
IN WITNESS WHEREOF the parties hereto have executed this contract the day
and year first hereinabove written.
CITY OF EL SEGUNDO
a general law city.
KenBe timan
Public Works Director
ATTEST;
Tracy Weaver
City Clerk
APPROVED AS TO FORK
Mark .Hensley
City Attorney
Insurance Reviewed by:
5
A-1 FENCE COMPANY
IN A rp
N
Title:
Taxpayer ID No.
Contractor State
" -) �
License No. '6."; , ,:
Contractor City Business
License No.
Agreement No. 5795
Alai:,
EXHIBIT A
FENCECOMPANY
2831 E. La Cresta Ave.
Anaheim, CA 92806 State License: 528260 Class: C-13, C-23, C-61/28
714-630-3390
FAX:714-630-6013
INFO@AIFENCE.COM
COMPANY
A-1 FENCE COMPANY
AGENCY
CITY OF EL SEGUNDO
STREET ADDRESS
2831 E. La Cresta Ave.
PROPOSAL DATE
9/30/19
CITY, STATE, ZIP
Anaheim, Ca 92806
JOB ADDRESS
350 MAIN STREET
CONTACT
ERIK BROWN
JOB CITY, STATE, ZIP
EL SEGUNDO, CA 90245
NUMBER
714-630-3390
CONTACT
310-524-2364
E-MAIL
i•': �.: 0.�.�......:..':....
info@alfence.com
SCOPE OF WORK PROPOSED
A-1 will provide on-call services for fence repairs and installations, as requested by the City. The
representative will review each request on site to identify the scope of work, materials required and the
time schedule required.
Per City requirements, all labor will be paid at prevailing wages, portal-to-portal unless directed
otherwise. Both options are shown.
A written estimate will be provided for each service request.
On -Call Requests:
Minimum charge 4 hours, two man crew paid at prevailing wages: $312.50 per hr.
Minimum charge 4 hours, two man crew paid at standard wages: $202.00 per hr,
Includes truck, standard tools, ladders, welder/generator.
This rate does not include materials or special equipment.
A-1 Fence Cmpw ny
�a
.....................
Date
C ; 'igh"ature �
"P
Acceptance of Proposal
d pL'\ r
�..:_.� � �.�:��...�.:�,�:��. Authoriziedl�bw.d{N �e�T.l�.le.)......................
The above prices, specification and conditions are satisfactory and are hereby accepted. You are
authorized to do the work as specified.
Date Accepted Authorized by (Name/Tit .......
' le)
Agreement No. 5795
EXHIBIT B
CITY OF EL SEGUNDO
PUBLIC WORKS DEPARTMENT
GENERAL PROVISIONS FOR CONTRACTS
LESS THAN $60,000 PURSUANT TO ESMC § 1-7C-4
0-0 STANDARD SPECIFICATIONS
0-1 GENERAL
Except as modified by these Standard Specifications, the provisions of the
latest edition of the "Standard Specifications for Public Works Construction"
("Greenbook") and its supplements prepared and promulgated by the Southern
California Chapters of the American Public Works Association and the
Associated General Contractors of America, constitute the Standard
Specifications for this project.
0-2 NUMBERING OF SECTIONS
The numbering contained within the Standard Specifications of the Contract
Documents is intended to correspond with Greenbook numbering.
`16►�7��I�I��[�L�
The following subsection is added to Subsection 1-2 of the Greenbook,.
1-2.1 ADDITIONAL DEFINITIONS
Acceptance — The date on which the City Council accepts the Work as
complete.
Architect, Design Engineers, Soils Engineer, Structural Engineers - Advisors
employed by the City.
Compensable Delay -- a delay entitling the Contractor to an adjustment of the
Contract Sum and an adjustment of the Contract Time in accordance with this
Agreement.
Due Notice - A written notification, given in due time, of a proposed action
where such notification is required by the contract to be given a specified
interval of time (usually 48 hours or two working days) before the
commencement of the contemplated action. Notification may be from Engineer
to Contractor or from Contractor to Engineer.
KHB20151022
Page 1 of 36
Agreement No. 5795
Engineer - The City Engineer, or designee, as defined in the Greenbook.
Unless otherwise provided, all correspondence and decisions made relative to
the contract will be by the City Engineer or his designated representative.
PCC — California Public Contract Code.
Prompt - The briefest interval of time required for a considered reply, including
time required for approval of a governing body.
Public Works Director — The City's Public Works Director, or designee.
❑ (Check if applicable) State Standard Specifications - State of California
Standard Specifications, dated July 1992, Business and Transportation
Agency, Department of Transportation
Working Days - A working day is defined as any day, except Saturdays,
Sundays, legal holidays and days when work is suspended by the Engineer, as
provided in Subsection 6-3 and days determined to be non -working in
accordance with Subsection 6-7, "Time of Completion."
1-3 ABBREVIATIONS
The following Subsection is added to Subsection 1-3 of the Greenbook.
1-3.1 The following abbreviations are added to Subsection 1-3 of the Greenbook:
AAN
American Association of Nurserymen
AGC
Associated General Contractors of America
AISC
American Institute of Steel Construction
APWA
American Public Works Association
ASME
American Society of Mechanical Engineers
IEEE
Institute of Electric and Electronic Engineers
NEC
National Electric Code
Green Book
The most current edition of the Standard Specification for Public
Works Construction, and subsequent supplements prepared by
Public Works Standards, Inc.
WATCH
Work Area Traffic Control Handbook
SPPWC
Standard Plans for Public Works Construction by the American
Public Works Association
SSPWC Standard Specifications for Public Works Construction by the
American Public Works Association
ASA American Standard Association
CITY City of EI Segundo
KHB20151022
Page 2 of 36
Agreement No. 5795
SECTION 2 — SCOPE AND CONTROL OF WORK
The following subsections 2-1.1 and 2-1.2 are added to the Greenbook.
2-1.1 ACCESS TO PROJECT SITE
Not later than the date designated in the City Notice to Proceed, the City will
provide access to the real property and facilities upon which the Work is to be
performed, including access to real property and facilities designated in the
Contract Documents for the Contractor's use.
2-1.2 OWNERSHIP AND USE OF CONTRACT DOCUMENTS.
The Contract Documents and all copies furnished to or provided by the
Contractor are the City's property and may not be used on other work.
2-3 SUBCONTRACTS
Subsection 2-3 Subcontractors of Greenbook is deleted in its entirety and
replaced with the following subsection.
2-3.1 GENERAL
Except as provided in PCC §§ 4100 et. seq., each bidder will file with its bid the
name and location of the place of business of each subcontractor who will
perform work or labor or render service to the prime contractor in or about the
construction of the work or improvement, or a subcontractor licensed by the
State of California who, under subcontract to the prime contractor, specifically
fabricates and installs a portion of the work or improvement according to
detailed drawings contained in the plans and specifications, in an amount in
excess of one-half of one percent of the prime contractor's total bid. Only one
subcontractor will be listed for each portion of the work, which portion will be
defined in the bid. In each instance, the nature and extent of the work to be
sublet will be described. The failure of the Contractor to specify a subcontractor,
or the listing of more than one subcontractor for the same portion of the work,
constitutes an agreement by the Contractor that it is fully qualified to perform
that portion itself and that it will perform that portion itself.
The Contractor must have the City Council's written consent to substitute a
subcontractor other than that designated in the original bid, to permit any
subcontract to be assigned or transferred, or to allow a subcontract to be
performed by other than the original subcontractor.
Subcontracting of work for which no subcontractor was designated in the
original bid, and which is more than one-half of one percent of the work, will be
allowed only in cases of public emergency or necessity, and then only after a
KH 620151022
Page 3 of 36
Agreement No. 5795
finding reduced to writing as a public record of the City Council setting forth the
facts constituting the emergency or necessity.
Violation of any of the above provisions will be considered a breach of the
Contract, and the City may terminate the Contractor's control over the Work,
cancel the contract, or assess the Contractor a penalty of not more than ten
percent of the subcontract involved.
All persons engaged in the work, including subcontractors and their employees
will be considered as employees of the Contractor. The Contractor will be solely
responsible for and have control over construction means, methods,
techniques, sequences, procedures, and the coordination of all portions of the
Work. The City will deal directly with, and make all payments to, the prime
Contractor.
When subcontracted work is not being prosecuted in a satisfactory manner, the
Contractor will be notified to take corrective action. The Engineer may report
the facts to the City Council. If the City Council so orders, and on receipt by the
Contractor of written instructions from the Engineer, the subcontractor will be
removed immediately from the Work. That subcontractor will not again be
employed on the Work.
If licensure or proper licensure is controverted, then proof of licensure pursuant
to this section must be made by production of a verified certificate of licensure
from the Contractors' State License Board which establishes that the individual
or entity bringing the action was duly licensed in the proper classification of
contractors at all times during the performance of any act or contract covered
by the action. Nothing in this subdivision requires any person or entity
controverting licensure or proper licensure to produce a verified certificate.
When licensure or proper licensure is controverted, the burden of proof to
establish licensure or proper licensure is on the licensee.
2-3.2 ADDITIONAL RESPONSIBILITY
Add the following to Subsection 2-3.2 Additional Responsibility:
The Contractor will submit experience statements for each subcontractor who
will perform contract work that amounts to more than ten percent (10%) of the
Work.
2-4 CONTRACT BONDS
The following paragraph is added to Subsection 2-4 of the Greenbook.
The Faithful Performance Bond and the Labor and Materials Bond must be paid
and in effect for one year after the acceptance of the job by the City in
KHB20151022
Page 4 of 36
Agreement No. 5795
accordance with the guarantee required by Subsection 6-8.1,
Subsection 2-5.1 of the Greenbook is replaced by the following subsection.
2-5.1 GENERAL
The Contractor will maintain the following at the Work site:
One as -built copy of the Plans and Specifications, in good order and
marked to record current changes and selections made during
construction. As -built plans must be submitted to the City representative
for approval before the City pays a final retention amount.
2. The current accepted Contract Schedule.
3. Shop Drawings, Product Data, and Samples.
4. Approved permits from other agencies, including Cal -OSHA permits for
trench shoring.
5. All other required submittals.
KHB20151022
The Plans, Specifications, and other Contract Documents will govern the
Work. The Contract Documents are intended to be complementary and
cooperative and to describe and provide for a complete project. Anything
in the Specifications and not on the Plans, or on the Plans and not in the
Specifications, will be as though shown or mentioned in both.
Payment for any items on the plans for which there is no specific bid
item will be included in the various items of work or in any item to which
it is appurtenant.
If the Contractor performs any work which it knows or should know
involves an error, inconsistency, or omission without notifying and
obtaining written consent from the Engineer, the Contractor will be
responsible for the resulting losses, including, without limitation, the
costs of correcting defective work.
Page 5 of 36
Agreement No. 5795
2-5.2 PRECEDENCE OF CONTRACT DOCUMENTS
The following paragraph is added to subsection 2-5.2 of the Greenbook:
As the figured dimensions shown on the plans and in the specifications of the
Contract may not in every case agree with scaled dimensions, the figured
dimensions will be followed in preference to the scaled dimensions, and plans
to a large scale will be followed in preference to the plans to a small scale.
Should it appear that the work to be done, or any of the matters relative thereto,
are not sufficiently detailed or explained in the Contract, the Contractor will
apply to the Engineer for such further explanations as may be necessary, and
will conform thereto as part of the Contract so far as may be consistent with the
terms thereof. Any items shown on drawings and not mentioned in the
specifications will be of like effect as if shown or mentioned in both.
2-5.5 ACCURACY OF PLANS AND SPECIFICATIONS
Although it is believed that much of the information pertaining to conditions and
existing utilities that may affect the cost of the Work will be shown on the Plans
or indicated in the Specifications, the City does not warrant the completeness
or accuracy of such information.
The Contractor will carefully study and compare each of the Contract
Documents with the others and with information furnished by the City and will
promptly report in writing to the Engineer any errors, inconsistencies, or
omissions in the Contract Documents or inconsistencies with applicable law
observed by the Contractor.
The Contractor will take field measurements, verify field conditions, perform soil
investigations, and carefully compare with the Contract Documents such field
measurements, conditions, and other information known to the Contractor
before commencing the Work. Errors, inconsistencies, or omissions discovered
at any time will be promptly reported in writing to the Engineer.
2-8 RIGHT-OF-WAY
The following subsection is added to Subsection 2-8 of the Greenbook.
2-8.1 ADDITIONAL WORK AREAS AND FACILITIES
When the Contractor arranges for additional temporary work areas and
facilities, the Contractor will provide the City with proof that the additional work
areas or facilities have been left in a condition satisfactory to the owner(s) of
said work areas or facilities before acceptance of the work.
KHB20151022
Page 6 of 36
Agreement No. 5795
2-9 SURVEYING
Subsection 2-9.3, Survey Service, is deleted in its entirety and replaced by the
following subsection:
2-9.3 SURVEY SERVICE
2-9.3.1 CONSTRUCTION SURVEYING
The Contractor will provide for all construction surveying required to layout,
monitor and complete the work. The surveying will be performed by a Land
Surveyor or Civil Engineer authorized to practice land surveying by the State
of California.
The Project Benchmark is shown on the plans. The Contractor will establish
all necessary control lines based on the plans and record information on file
with the County of Los Angeles Surveyor and the Engineer.
It is the responsibility of the Contractor to protect the survey control as shown
on the plans. If the survey control is destroyed or disturbed during construction,
the Contractor will provide for resetting them and file appropriate documents
with the County of Los Angeles at the direction of the Engineer.
Computations, survey notes, and other data used to accomplish the work will
be neat, legible and accurate. Copies of all computations, survey notes, and
other data (electronic format may be required) will be furnished to the Engineer
before beginning work that requires their use.
2-9.3.2 MEASUREMENT AND PAYMENT
Construction Survey — Unless a separate bid item is provided, payment will be
considered included in the other items of the bid and no additional payment will
be made therefore.
3-3.2.2 BASIS FOR ESTABLISHING COSTS
Subsection 3-3.2.2.3, Tool and Equipment Rental is modified where the second
and third paragraphs are replaced with "Regardless of ownership, the rates to
be used in determining the equipment usage costs will not exceed those listed
for the same or similar equipment in the California State Department of
Transportation publication of Labor Surcharge and Equipment Rates effective
for the period of usage."
3-3.2.3 MARKUP
Subsection 3-3.2.3, Mark Up, is deleted in its entirety and replaced by the
KHB20151022
Page 7 of 36
Agreement No. 5795
following subsection:
(a) Work by Contractor. The following percentages will be added to the
Contractor's costs and will constitute the markup for all overhead and
profits.
1) Labor ........................................... 20
2
Materials......................................15
3) Equipment Rental ........................15
4) Other Items and Expenditures., ... 15
To the sum of the costs and markups provided for in this subsection, 1
percent will be added as compensation for bonding. No other formula,
e.g., the Eichleay or other method, may be used to calculate daily
damages for office overhead, profit, or other purported loss.
(b) Work by Subcontractors. When all or any part of the extra work is
performed by a Subcontractor, the markup established in 3-3.2.3(a) will
be applied to the Subcontractor's actual cost of such work. A markup of
10 percent on the first $5,000 of the subcontracted portion of the extra
work and a markup of 5 percent on work added in excess of $5,000 of
the subcontracted portion of the extra work may be added by the
Contractor.
(c) In the event that City becomes liable to Contractor for compensable
delays, City agrees to pay Contractor the daily Contractor Delay
Damages set forth in the Bid Form or Contractor's actual daily delay
damages, whichever is less, for each day of Compensable Delay as
provided for.by these Contract Documents.
3-3.3 DAILY REPORTS BY CONTRACTOR
Add the following paragraph to subsection 3-3.3, Daily Reports by Contractor:
If disagreement continues regarding extra work, the Contractor may seek
compensation in accordance with the Claims procedure. Daily Reports required
by this subsection must be made part of the Claim as supporting data for the
Claim.
3-4 CHANGED CONDITIONS
Subsection 3-4, Changed Conditions, is deleted in its entirety and replaced with
the following subsection:
If the Contractor encounters concealed or unknown conditions that differ
materially from those anticipated or expected ("changed conditions"), the
KHB20151022
Page 8 of 36
Agreement No. 5795
Contractor will immediately notify the Engineer in writing of such changed
conditions (upon discovery and before disturbing such changed conditions), as
provided in Subsection 6-11, so that the Engineer can determine if such
conditions require design details that differ from those design details shown in
the Contract Documents. Notwithstanding the time period set forth in
Subsection 6-11.3, the Contractor is liable to the City for any extra costs
incurred as a result of the Contractor's failure to promptly give such notice.
Changed conditions include, without limitation, the following:
Subsurface or latent physical conditions differing materially from those
represented in the Contract Documents;
2. Unknown physical conditions of an unusual nature differing materially
from those ordinarily encountered and generally recognized as inherent
in work of the character being performed; and
3. Material differing from what is represented in the Contract which the
Contractor believes may be hazardous waste as defined in California
Health & Safety Code § 25117 that is required to be removed to a Class
I, II, or III disposal site in accordance with applicable law.
The Engineer will promptly investigate conditions that appear to be changed
conditions. The Engineer's decision, and any dispute regarding that decision,
will be made in accordance with Section 6-11 except that the Engineer will
render a decision promptly.
Any information provided pursuant to INFORMATION AVAILABLE TO
BIDDERS is subject to the following provisions:
The information is made available for the Bidders' convenience and is
not a part of the Contract.
2, The City has not determined the accuracy or completeness of such
information and all such information is made available to Bidders without
any representation or warranty by the City whatsoever as to its accuracy,
completeness, or relevancy.
3. Bidders will independently evaluate such information for their use and
will be solely responsible for use or interpretation of such information.
Any such use or interpretation will not be the basis of any claim against
the City.
3-5 DISPUTED WOR
Subsection 3-5 is deleted in its entirety and replaced by the following
i 11 1.i Wer,PHIM
Page 9 of 36
Agreement No. 5795
subsection.
If the Contractor and the City do not reach agreement on disputed work, the
City may direct the Contractor to proceed with the work. Any payment for the
disputed work will be determined pursuant to the claims procedures in these
Standard Specifications. Although not to be construed as proceeding under
extra work provisions, the Contractor will keep and furnish records of disputed
work as required by the Contract Documents.
4-1.3 INSPECTION REQUIREMENTS
Subsection 4-1.3, Inspection Requirements, is deleted in its entirety and
replaced by the following subsections.
4-1.3.1 GENERAL
Unless otherwise specified, inspection at the source of production for such
materials and fabricated items as bituminous paving mixtures, structural
concrete, fabricated metal products, cast metal products, welding, reinforced
and unreinforced concrete pipe, application of protective coatings, and similar
shop and plant operations is not required. A certificate of compliance, signed
by an authorized officer of the producer, certifying compliance with the contract
documents will be submitted for all of the following materials: steel pipe, sizes
less than 18 inches; vitrified clay pipe; asbestos cement pipe; cast iron pipe;
reinforced concrete pipe; non -reinforced concrete pipe; and PVC sewer and
water pipe; subject to sampling and testing by City.
Standard items of equipment, such as electric motors, conveyors, plumbing
fittings and fixtures, lumber, plywood, and so on, are subject to inspection at
the job site.
All other equipment items will be inspected and tested in accordance with the
contract documents.
The City does not provide full time inspection. The Contractor will provide
24-hour minimum notice for each inspection required by the work unless other
arrangements have been agreed upon, in writing, with the City Engineer. Any
inspection required outside of normal working hours and days, including
holidays, will be at the Contractor's cost at rates established by the City.
4-1.6 TRADE NAMES OR EQUALS
Whenever any material, product, equipment, or service is specified by brand,
trade, or proprietary name, the item so specified will be deemed to be followed
by the words "or equal."
Page 10 of 36
Agreement No. 5795
For the City's consideration of a proposed "equal" item, the Bidder must submit,
a minimum of ten (10) calendar days before the date of the bid opening,
documentation of the particulars of the proposed "equal item." At a minimum,
the submitted documentation will include:
• Written request with explanation of why the product should be
considered as an equal product.
■ Material specifications.
■ Technical specifications.
• Test data.
• Samples.
• Comparison chart of key specifications of the "equal" item against similar
specifications of the specified item.
• Work locations and reference telephone numbers of at least three (3)
locations where the proposed "equal" item has been recently installed
under similar conditions.
■ Warranty data.
The Bidder will be notified by the Engineer whether or not the proposed "equal"
product is acceptable to the City five (5) calendar days before the date of the
bid opening. Failure to submit all required documentation and/or submittal of
incomplete documents may result in the City's rejection of the proposed "equal"
product without further consideration.
5-2 PROTECTION
The following subsection is added to Subsection 5-2 of the Greenbook.
5-2.1 INCORRECT LOCATION OF UTILITIES
If the Contractor, while performing the Work, discovers utility facilities not
identified correctly or not shown in the contract plans or specifications by the
City, the Contractor will immediately notify the City and utility owner in writing.
5-4 RELOCATION
The following subsection is added to Subsection 5-4 of the Greenbook.
5-4.1 RESPONSIBILITY OF UTILITY REMOVAL OR RELOCATION
The City will be responsible to arrange for the removal, repair, or relocation of
existing utilities located within the project limits if such utilities are not correctly
identified in the contract plans or specifications by the City. The City will have
the sole discretion to perform repairs or relocation work or permit the Contractor
to do such repairs or relocation.
KHB20151022
Page 11 of 36
Agreement No. 5795
5-5 DELAYS
The following paragraphs are added to Subsection 5-5 of the Greenbook.
Actual loss, as used in this Subsection, will be understood to include no items
of expense other than idle time of equipment and necessary payments for idle
time of workers, cost of extra moving of equipment, and cost of longer hauls.
Compensation for idle time of equipment and idle time of workers will be
determined by Subsection 5-5.1 and no markup will be added in either case for
overhead and profit. The cost of extra moving of equipment and the cost of
longer hauls will be paid for as extra work.
The following subsection is added to Subsection 5-5 of the Greenbook.
5-5.1 CALCULATING IDLE TIME
Equipment idle time will calculated in accordance with Subsection 3-3.2.2 and
based upon the actual normal working time during which the delay condition
exists, but in no case will exceed 8 hours in any one day. The days for which
compensation will be paid will be the calendar days, excluding Saturdays,
Sundays and legal holidays, during the existence of the delay.
Worker idle time will be calculated in accordance with Subsection 3-3.2.2.
6-1 CONSTRUCTION SCHEDULE AND COMMENCEMENT OF WORK
Section 6-1, Construction Schedule and Commencement of Work, is deleted in
its entirety and replaced by the following subsections.
Fre-Construction Meetinq:
After contract award, the City will arrange for a pre -construction meeting to
discuss the construction of the project. City will invite utility agencies and the
contractor will arrange for all of its sub -contractors to attend the meeting.
6-1.1 CONTRACT SCHEDULE
After notification of award and before starting any work, the Contractor will
submit a Contract Schedule to the Engineer for review, as required by these
Specifications within fifteen (15) calendar days of award.
6-1.2 CONTENT OF CONTRACT SCHEDULE
The Contract Schedule, and any updated Contract Schedule, will meet the
following requirements:
KHB20151022
Page 12 of 36
Agreement No. 5795
1. Schedules must be suitable for monitoring progress of the Work.
2, Schedules must provide necessary data about the time for the
Engineer's decisions.
3. Schedules must be sufficiently detailed to demonstrate adequate
planning for the Work.
4. Schedules must represent a practical plan to complete the Work within
the Contract Time.
5. Schedules must show the critical path method for completing the Work.
The Engineer's review of the form and general content of the Contract
Schedule and any updated Contract Schedules is only for the purpose of
determining if the listed requirements are satisfied, nothing more.
6-1.3 EFFECT OF CONTRACT SCHEDULE
The Contract Schedule, and any updated Contract Schedules, will represent a
practical plan to complete the Work within the Contract Time. Extension of any
schedule beyond the Contract Time will not be acceptable. Schedules showing
the Work completed in less than the Contract may be acceptable if judged by
the Engineer to be practical. Acceptance of such a schedule by the Engineer
will not change the Contract Time. The Contract Time, not the Contract
Schedule, will control in determining liquidated damages payable by the
Contractor and in determining any delay.
If a schedule showing the Work completed in less than the Contract Time is
accepted, the Contractor will not be entitled to extensions of the Contract Time
for Excusable Delays or Compensable Delays or to adjustments of the Contract
Sum for Compensable Delays until such delays extend the completion of the
Work beyond the expiration of the Contract Time.
The Contractor will plan, develop, supervise, control, and coordinate the
performance of the Work so that its progress and the sequence and timing of
Work activities conform to the current accepted Contract Schedule. The
Contractor will continuously obtain from Subcontractors information and data
about the planning for and progress of the Work and the delivery of equipment,
will coordinate and integrate such information and data into updated Contract
Schedules, and will monitor the progress of the Work and the delivery of
equipment. The Contractor will act as the expeditor of potential and actual
delays, interruptions, hindrances, or disruptions for its own forces and those
forces of Subcontractors. The Contractor will cooperate with the Engineer in
developing the Contract Schedule and updated Contract Schedules.
The Engineer's review and comments about any schedule or scheduling data
will not relieve the Contractor from its sole responsibility to plan for, perform,
and complete the Work within the Contract Time. Review and comments about
any schedule will not transfer responsibility for any schedule to the Engineer or
KHB20151022
Page 13 of 36
Agreement No. 5795
the City nor imply their agreement with (1) any assumption upon which such
schedule is based or (2) any matter underlying or contained in such schedule.
The Engineer's failure to discover errors or omissions in schedules that have
been reviewed, or to inform the Contractor that the Contractor, Subcontractors,
or others are behind schedule, or to direct or enforce procedures for complying
with the Contract Schedule will not relieve the Contractor from its sole
responsibility to perform and complete the Work within the Contract Time and
will not be a cause for an adjustment of the Contract Time or the Contract Sum.
The Contractor will perform the Work in accordance with the currently accepted
Contract Schedule.
6-1.4 COMMENCEMENT OF CONTRACT TIME
The Contract Time will commence when the City issues a Notice to Proceed.
The Work will start on the date specified in the Notice to Proceed and within a
maximum of fifteen (15) calendar days after the date of the Notice to Proceed,
and be diligently prosecuted to completion with the time provided in the
Specifications.
6-4 DEFAULT BY CONTRACTOR
The language in subsection 6-4 is deleted in its entirety and replaced with the
following subsections.
6-4.1 GENERAL
Should the Contractor fail to begin delivery of material and equipment, to
commence the Work within the time specified, to maintain the rate of delivery
of material, to execute the Work in the manner and at such locations as
specified, or fail to maintain the Work schedule (as determined by the current
accepted Contract Schedule) which will ensure the City's interest, or if the
Contractor is not carrying out the intent of the Contract, the City may serve
written notice upon the Contractor and the Surety on its Faithful Performance
Bond demanding satisfactory compliance with the Contract.
6-4.2 TERMINATION OF CONTRACTOR'S CONTROL OVER THE WORK
The City may terminate the Contractor's control over the Work without liability
for damages when, in the City's opinion, the Contractor is not complying in good
faith, has become insolvent, or has assigned or subcontracted any part of the
Work without the City's consent. Should such termination occur, the Contractor
will be paid the actual amount due based on Contract Unit Prices or lump sums
bid and the quantity and quality of the Work completed at the time of
termination, less damages caused to the City by the Contractor's action or
Page 14 of 36
Agreement No. 5795
inaction.
In the event of such termination of control, the City may do any one, or
combination of, the following:
1. Serve written notice upon the Surety on its Faithful Performance Bond
demanding satisfactory compliance with the Contract. In such event the
Surety will, within 5 days, assume control and perform the Work as
successor to the Contractor;
2, The City may perform the Work itself and deduct the cost thereof from
any payment due to the Contractor;
3. The City may replace the Contractor with a different contractor to
complete the work and deduct the cost thereof from any payment due to
the Contractor.
Nothing herein will waive, or serve as a limitation upon, any additional remedy
the City may have under these Contract Documents or applicable law.
6-6 DELAYS AND EXTENSIONS OF TIME
Subsection 6-6 is deleted in its entirety and replaced with the following
subsections.
6-6.1 GENERAL
If delays are caused by unforeseen events beyond the control of the Contractor,
such delays will entitle the Contractor to an extension of time as provided
herein, but the Contractor will not be entitled to damages or additional payment
due to such delays except as otherwise provided herein. Excusable delay may
include: war, earthquakes exceeding 3.5 on the Richter Scale, government
regulation, labor disputes outside the contemplation of the parties, strikes
outside the contemplation of the parties, fires, floods, changes to the Work as
identified herein, or other specific events that may be further described in the
Specifications.
Delays to the project caused by labor disputes or strikes involving trades not
directly related to the project, or involving trades not affecting the project as a
whole will not warrant an extension of time.
The City will not grant an extension of time for a delay by the Contractor's
inability to obtain materials unless the Contractor furnishes to the Engineer
documentary proof. The proof must be provided in a timely manner in
accordance with the sequence of the Contractor's operations and accepted
construction schedule.
Should delays be caused by events other than those included herein, the
KHB20151022
Page 15 of 36
Agreement No. 5795
Engineer may, but is not required to, deem an extension of time to be in the
City's best interests.
6-6.2 EXTENSIONS OF TIME
If granted, extensions of time will be based upon the effect of delays to the
critical path of the Work as determined by the current accepted Contract
Schedule. Delays to minor portions of the Work that do not affect the critical
path will not be eligible for extensions of time.
6-6.3 PAYMENT FOR DELAYS TO CONTRACTOR
Any payment for compensable delay will be based upon actual costs as set
forth in Subsection 5-5 excluding, without limitation, what damages, if any, the
Contractor may have reasonably avoided. The Contractor understands that this
is the sole basis for recovering delay damages and explicitly waives any right
to calculate daily damages for office overhead, profit, or other purported loss,
using different formulas including, without limitation, the Eichleay Formula.
6-6.4 WRITTEN NOTICE AND REPORT
If the Contractor desires payment for a delay or an extension of time, it will give
the Engineer written notice of such request not later than the time limit set forth
in the Proposal for submitting a claim after the event or occurrence giving rise
to a delay claim. Failure to submit a written request within such amount of time
will result in the Contractor waiving its delay claim.
Any claim for payment or an extension of time must be in the form required by
the "Claims" sections of these Specifications.
In no event will the City grant the Contractor an extension of time if the delay is
within the Contract Time as identified by the Contract Documents.
KHB20151022
Page 16 of 36
Agreement No. 5795
6-7.2 WORK DAYS AND WORKING HOURS
City Hall is open from Monday thru Thursday 7am -6pm. It is closed every
Friday and the following holidays:
New Year's Day -
Tuesday, January 1, 2019
Martin Luther King, Jr. Day-
Monday, January 21, 2019
President's Day -
Monday, February 18, 2019
Memorial Day -
Monday, May 27, 2019
Independence Day -
Thursday, July 4, 2019
Labor Day -
Monday, September 2, 2019
Veterans' Day -
Monday, November 11, 2019
Thanksgiving -
Thursday, November 28, 2019
Christmas Eve -
Tuesday, December 24, 2019
Christmas -
Wednesday, December 25, 2019
New Year's Eve -
Tuesday, December 31, 2019
Working on Fridays when City Hall is closed is acceptable. If the Contractor,
however, requests an inspection a day when City Hall is closed, then the
Contractor will have to reimburse the City for the costs of inspection. The
Contractor must request such an inspection at least 48 hours in advance. City
inspections during hours when City Hall is closed are subject to inspection
overtime fees to be paid for by the Contractor. Friday work that does not require
inspection can be done without an inspection fee and must be discussed with
City staff before its occurrence. If the Contractor does construction on a Friday
or a day when City Hall is closed, that day is counted as a project working day.
On workdays, Contractor's activities will be confined to the hours between 7:00
a.m. and 4:00 p.m.
Please see Section 6-7.5 below for weekend and holiday work restrictions.
6-7.4 NIGHT WORK
The following paragraph is added to Section 6-7 of the Greenbook:
The City will not permit Work between the hours of 4 p.m. and 7 a.m. of the
following day unless specifically provided for in the bid documents or unless
the Contractor receives prior written approval.
6-7.5 WEEKEND AND HOLIDAY WORK
The Engineer may, but is not required to, allow the Contractor to work on
Saturdays, Sundays and City Holidays.
KH 620151022
Page 17 of 36
Agreement No. 5795
Subsection 6-8 of the Greenbook is deleted in its entirety and replaced by the
following:
The Work will be inspected by the Engineer for acceptance upon the Engineer
receiving the Contractor's written assertion that the Work is complete.
If, in the Engineer's judgment, the Work is complete and is ready for
acceptance, the Engineer will accept the Work on behalf of the City in the
manner prescribed by the City. The Engineer will recommend approval of the
Notice of Completion to the City Council. This will be the date when the
Contractor is relieved from responsibility to protect the Work.
All work will be guaranteed by the Contractor against defective workmanship
and materials furnished by the Contractor for a period of 1 year from the date
the Work was completed. The Contractor will replace or repair any such
defective work in a manner satisfactory to the Engineer, after notice to do so
from the Engineer, and within the time specified in the notice. If the Contractor
fails to make such replacement or repairs within the time specified in the notice,
the City may perform this work and the Contractor's sureties will be liable for
the cost thereof.
6-8.1 GENERAL GUARANTY
The Contractor will remedy any defects in the work and pay for any damage to
other work resulting therefrom, which will appear within a period of one year
from the date of final acceptance of the work unless a longer period is specified.
The owner will give notice of observed defects with reasonable promptness.
Subsection 6-9, Liquidated Damages, of the Greenbook is deleted in its entirety
and replaced by the following subsections.
6-9.1 FAILURE TO COMPLETE WORK ON TIME
If all the work called for under the contract is not completed before or upon the
expiration of the Contract Time, the City will sustain damage. Since it is and will
be impracticable to determine the actual damage which the City will sustain in
the event of and by reason of such delay, it is therefore agreed that the
Contractor will pay to the City the sum specified in the Proposal for each and
every calendar day beyond the time prescribed to complete the work not as a
penalty, but as a predetermined liquidated damage. The Contractor agrees to
pay such liquidated damages as are herein provided, and in case the same are
not paid, agrees that the City may deduct the amount thereof from any money
KH 620151022
Page 18 of 36
Agreement No. 5795
due or that may become due to the Contractor under the contract.
Unless otherwise specified, liquidated damages will be $250 per calendar day.
6-11 DISPUTES AND CLAIMS: PROCEDURE
6-11.1 GENERAL
Consistent with PCC § 10240.6, "Claim" means a written demand or assertion
by the Contractor that seeks an adjustment or interpretation of the terms of the
Contract Documents, payment of money, extension of time, or other relief with
respect to the Contract Documents, including a determination of disputes or
matters in question between the City and the Contractor arising out of or related
to the Contract Documents or the performance of the Work, and claims alleging
an unforeseen condition or an act, error, or omission by the City, the Engineer,
their agents or employees. "Claim" does not mean, and the Claims procedures
herein do not apply, to the following:
1. Claims respecting penalties for forfeitures prescribed by statute or
regulations, which a government agency is specifically authorized to
administer, settle, or determine.
2. Claims respecting personal injury, death, reimbursement, or other
compensation arising out of or resulting from liability for personal injury
or death.
1 Claims respecting a latent defect, breach of warranty, or guarantee to
repair.
4. Claims respecting stop notices.
If a Claim is subject to the Change Order procedures, the Claim arises upon
the issuance of a written final decision denying in whole or in part the
Contractor's Change Order Request. If a Claim is not subject to the Change
Order Procedures, the Claim arises when the Contractor discovers, or
reasonably should discover, the condition or event giving rise to the Claim.
6-11.2 FORM
A Claim must include the following:
A statement that it is a Claim and a request for a decision.
2. A detailed description of the act, error, omission, unforeseen condition,
event or other condition giving rise to the Claim.
1 If the Claim is subject to the Change Order procedures, a statement
demonstrating that a Change Order Request was timely submitted and
denied.
KHB20151022
Page 19 of 36
In
5
Q
Agreement No. 5795
A detailed justification for any remedy or relief sought by the Claim,
including to the extent applicable, the following:
a) If the Claim involves extra work, a detailed cost breakdown
claimed. The breakdown must be provided even if the costs
claimed have not been incurred when the Claim is submitted.
b) To the extent costs have been incurred when the Claim is
submitted, the Claim must include actual cost records (including,
without limitation, payroll records, material and rental invoices)
demonstrating that costs claimed have actually been incurred.
c) To the extent costs have not yet been incurred at the time the
Claim is submitted, actual cost records must be submitted on a
current basis not less than once a week during any periods costs
are incurred. A cost record will be considered current if submitted
within seven (7) calendar days of the date the cost reflected in
the record is incurred. At the Engineer's request, claimed extra
costs may be subject to further verification procedures (such as
having an inspector verify the performance of alleged extra work
on a daily basis).
If the Claim involves an error or omission in the Contract Documents:
a) An affirmative representation that the error or omission was not
discovered before submitting a bid for the Contract; and
b) A detailed statement demonstrating that the error or omission
reasonably should not have been discovered by the Contractor,
its Subcontractors and suppliers, before submitting a bid for the
Contract.
If the Claim involves an extension of the Contract Time, written
documentation demonstrating the Contractor's entitlement to a time
extension.
7. If the Claim involves an adjustment of the Contract Sum for delay, written
documentation demonstrating the Contractor's entitlement to such an
adjustment.
8. A personal certification from the Contractor that reads as follows:
KHB20151022
"I, , BEING THE (MUST BE AN
OFFICER) OF (CONTRACTOR NAME),
DECLARE UNDER PENALTY OF PERJURY UNDER CALIFORNIA
Page 20 of 36
Agreement No. 5795
LAW, AND DO PERSONALLY CERTIFY AND ATTEST THAT I HAVE
THOROUGHLY REVIEWED THE ATTACHED CLAIM FOR
ADDITIONAL COMPENSATION OR EXTENSION OF TIME, AND
KNOW ITS CONTENTS, AND SAID CLAIM IS MADE IN GOOD FAITH;
THE SUPPORTING DATA IS TRUTHFUL AND ACCURATE; THAT
THE AMOUNT REQUESTED ACCURATELY REFLECTS THE
CONTRACT ADJUSTMENT FOR WHICH THE CONTRACTOR
BELIEVES CITY IS LIABLE; AND, FURTHER, THAT I AM FAMILIAR
WITH CALIFORNIA PENAL CODE § 72 AND CALIFORNIA
GOVERNMENT CODE § 12650, ET SEQ., PERTAINING TO FALSE
CLAIMS, AND FURTHER KNOW AND UNDERSTAND THAT
SUBMITTING OR CERTIFYING A FALSE CLAIM MAY LEAD TO
FINES, IMPRISONMENT, AND OTHER SEVERE LEGAL
CONSEQUENCES."
6-11.3 CLAIMS SUBMITTED TO ENGINEER
Within thirty (30) calendar days after the circumstances giving rise to a Claim
occur, the Contractor will submit its Claim to the Engineer for a decision.
Regardless of any Claim submittal, or any dispute regarding a Claim, unless
otherwise directed by the Engineer, the Contractor will not cause any delay,
cessation, or termination of the Work, but will diligently proceed with the
performing the Work in accordance with the Contract Documents. Except as
otherwise provided, the City will continue to make payments in accordance with
the Contract Documents.
6-11.4 CLAIM IS PREREQUISITE TO OTHER REMEDY
The Contractor certifies that it is familiar with PCC § 10240.2 and understands
and agrees that submitting a Claim in accordance with these Specifications is
an express condition precedent to the Contractor's right to otherwise pursue a
claim whether through alternative dispute resolution or by litigation. Should the
Contractor fail to submit a claim in accordance with these Specifications,
including the time limits set forth herein, it will waive any right to a remedy,
whether in law or equity, it might otherwise have pursuant to the Contract
Documents or applicable law.
6-11.5 DECISION ON CLAIMS
The Engineer will promptly review Claims submitted by the Contractor in
accordance with these Specifications. Should the Engineer require additional
supporting evidence to evaluate the claim, the Engineer will request such
additional information in writing. Any such requested data will be furnished not
later than ten (10) calendar days after the Contractor receives the Engineer's
request.
KHB20151022
Page 21 of 36
Agreement No. 5795
The Engineer will render a decision not later than 30 calendar days after either
receiving the Claim or the deadline for furnishing additional supporting data,
whichever is later. If the Claim amount is more than $50,000, the time period
will be extended to 60 days. If the Engineer fails to render a decision within the
time period established herein, then the Claim will be deemed denied. The
Engineer's decision will be final and binding unless appealed in accordance
with these Specifications.
The Engineer's decision on a Claim will include a statement substantially as
follows:
"This is a decision pursuant to the General Specifications of your contract. If
you are dissatisfied with the decision, and have complied with the procedural
requirements for asserting claims, you may have the right to alternative dispute
resolution or litigation. Should you fail to take appropriate action within thirty
(30) calendar days of the date of this decision, the decision will become final
and binding and not subject to further appeal."
6-11.6APPEAL OF ENGINEER'S DECISION
Should the Contractor dispute the Engineer's decision, then the Contractor
must appeal that decision to the City's Public Works Director within thirty (30)
calendar days of receiving the Engineer's decision.
The Public Works Director will address disputes or claims within thirty (30)
calendar days after receiving such request and all necessary supporting data.
The Public Works Director's decision on the dispute or claim will be the City's
final decision.
If the Contractor disputes the Public Works Director's decision, then the
Contractor must demand alternative dispute resolution in accordance with this
Section and the PCC within thirty (30) calendar days of the City's final decision.
6-11.7 MEDIATION
If the City and the Contractor agree, disputes between the parties may be
submitted to non-binding mediation. If the parties cannot agree to an alternative
form of mediation, then mediation will be administered by the American
Arbitration Association ("AAA") under its Construction Industry Mediation
Rules, unless the use of such rules are waived by mutual stipulation of both
parties.
The parties may, but are not required to be, represented by counsel in
mediation.
The requirement for mediation will not alter or modify the time limitations
KHB20151022
Page 22 of 36
Agreement No. 5795
otherwise provided for claims and no conduct or settlement negotiation during
mediation will be considered a waiver of the City's right to assert that claim
procedures were not followed.
6-11.8 ARBITRATION
If the City and Contractor do not agree to mediation, then a disputes will be
submitted to neutral non-binding (except as provided herein) arbitration.
Arbitration will be conducted in accordance with PCC § 10240.3. Any decision
rendered by an arbitrator will be consistent with PCC § 10240.8.
The exclusive venue for any arbitration will be in Los Angeles County.
The expenses and fees of the arbitrators and the administrative fees, if any, will
be divided among the parties equally. Each party will pay its own counsel fees,
witness fees, and other expenses incurred for its own benefit.
6-11.9 WHEN ARBITRATION DECISION BECOMES BINDING
The decision rendered by the arbitrator will become binding upon the parties
unless appealed to the Los Angeles County Superior Court pursuant to PCC §
10240.12 within thirty (30) calendar days of the decision. If subsequent litigation
results in an award to the party appealing the arbitration that is less than or
equal to that of the arbitration decision, or if the litigation results in a decision
in favor of the nonappealing party, then the party appealing the arbitration will
pay the nonappealing party's attorney's fees and court costs.
6-11.10 APPEAL TO SUPERIOR COURT; WAIVER OF JURY TRIAL
Should a party timely object to the arbitration decision, it may file a petition with
the Los Angeles County Superior Court in accordance with California Code of
Civil Procedure ("CCP") §§ 1285, et seq. Notwithstanding the limitations set
forth in CCP § 1286.2, the court may vacate, correct, or adjust an arbitration
award, and enter judgment in accordance with CCP § 1287.4, for any legal or
equitable basis including, without limitation, error of law. The court will apply
the substantial evidence standard of review when considering the appeal of an
objecting party.
BY EXECUTING THESE CONTRACT DOCUMENTS, THE CONTRACTOR
AGREES TO HAVE DISPUTES OR CONTROVERSY CONCERNING THE
CONSTRUCTION, INTERPRETATION, PERFORMANCE, OR BREACH OF
THESE CONTRACT DOCUMENTS, INCLUDING CLAIMS FOR BREACH OF
CONTRACT OR ISSUES OF BAD FAITH DECIDED IN ACCORDANCE WITH
THIS SECTION 6-11. BOTH THE CITY AND THE CONTRACTOR WAIVE
THEIR RIGHT TO A JURY TRIAL FOR THESE DISPUTES OR ISSUES.
KHB20151022
Page 23 of 36
Agreement No. 5795
7-2 LABOR
The following subsections are added to Subsection 7-2 of the Green Book.
7-2.3 PREVAILING WAGES
The Contractor will post at appropriate conspicuous points at the site of the
project a schedule showing determinations of the Director of Industrial
Relations of the prevailing rate of per diem wages. It will be the Contractor's
responsibility to obtain copies of the prevailing rate of per diem wages. One
source that may be used is the California Department of Industrial Relations
website which is currently located at www.dir.ca.gov, or by calling the Prevailing
Wage Unit at (415) 703-4774.
Attention is directed to Labor Code §§ 1777.5, 1777.6 and 3098 concerning the
employment of apprentices by the Contractor or any subcontractor.
Labor Code § 1777.5 requires the Contractor or subcontractor employing
tradesmen in any apprenticeship occupation to apply to the joint apprenticeship
committee nearest the site of the public works project and which administers
the apprenticeship program in that trade for a certificate of approval. The
certificate will also fix the ratio of apprentices to journeymen that will be used
in the performance of the contract. The ratio of apprentices to journeymen in
such cases will not be less than one to five except:
a) When employment in the area of coverage by the joint apprenticeship
committee has exceeded an average of 15 percent in the ninety (90)
calendar days before the request for certificate, or
b) When the number of apprentices in training in the area exceeds a ratio
of one to five, or
c) When the trade can show that it is replacing at least 1/30 of its
membership through apprenticeship training on an annual basis
state-wide or locally, or
d) When the Contractor provides evidence that the Contractor employs
registered apprentices on all of his contracts on an annual average of
not less than one apprentice to eight journeymen.
The Contractor is required to make contributions to funds established for the
administration of apprenticeship programs if the Contractor employs registered
apprentices or journeymen in any apprenticeable trade on such contracts and
if other contractors on the public works site are making such contributions.
The Contractor and any subcontractor will comply with Labor Code §§ 1777.5
KHB20151022
Page 24 of 36
Agreement No. 5795
and 1777.6 in the employment of apprentices.
Information relative to apprenticeship standards, wage schedules and other
requirements may be obtained from the Director of Industrial Relations,
ex -officio the Administrator of Apprenticeship, San Francisco, California, or
from the Division of Apprenticeship Standards and its branch offices.
7-2.4 RECORD OF WAGES PAID: INSPECTION
Every Contractor and subcontractor will keep an accurate certified payroll
records showing the name, occupation, and the actual per diem wages paid to
each worker employed in connection with the Work. The record will be kept
open at all reasonable hours to the inspection of the body awarding the contract
and to the Division of Labor Law Enforcement. If requested by the City, the
Contractor will provide copies of the records at its cost.
7-3 LIABILITY INSURANCE
Subsection 7-3, Liability Insurance, of the Greenbook is deleted in its entirety
and replaced by the following subsections.
7-3.1 GENERAL
Contractor must procure and maintain for the duration of the contract the
following insurance coverages and limits against claims for injuries to persons
or damage to property that may arise from or in connection with the
performance of the work covered by this agreement by the Contractor, its
agents, representatives, employees or subcontractors:
COVERAGE PER
OCCURRENCE
Comprehensive General
Liability
Business Auto
Workers' Compensation
ISO FORM COMBINED
SINGLE
LIMIT
CL 00 02 01 85 or 88 $2,000,000
CA 00 01 01 87 $1,000,000
Statutory
Contractor will provide endorsements or other proof of coverage for contractual
liability.
Combined single limit per occurrence will include coverage for bodily injury,
personal injury, and property damage for each accident.
If Commercial General Liability Insurance or other form with a general
aggregate limit is used, the policy will be endorsed such that the general
aggregate limit will apply separately to this contract and a copy of the
KHB20151022
Page 25 of 36
Agreement No. 5795
endorsement provided to the City.
Liability policies will contain, or be endorsed to contain the following provisions:
GENERAL LIABILITY AND AUTOMOBILE LIABILITY:
The City, its officers, officials, employees, agents, and volunteers will be
covered as insureds as respects: liability arising out of activities performed by
or on behalf of the Contractor; products and completed operations of the
Contractor; premises owned, occupied or used by the Contractor; or
automobiles owned, leased, hired or borrowed by the Contractor. The coverage
will contain no special limitations on the scope or protection afforded to the City,
its officers, officials, employees, agents, or volunteers.
The Contractor's insurance coverage will be primary insurance as respects the
City, its officers, officials, employees, agents, and volunteers. Any insurance or
self-insurance maintained by the City, its officers, officials, employees, agents,
and volunteers will be excess of the Contractor's insurance and will not
contribute with it.
The insurer will agree in writing to waive all rights of subrogation against the
City, its officers, officials, employees and volunteers for losses arising from
work performed by the Contractor for the City.
Any failure to comply with reporting provisions of the policies will not affect
coverage provided to the City, its officers, officials, employees, agents and
volunteers.
The Contractor's insurance will apply separately to each insured against whom
claim is made or suit is brought, except with respect to the limits of the insurer's
liability.
WORKERS' COMPENSATION:
The insurer will agree to waive all rights of subrogation against the City, its
officers, officials, employees and volunteers for losses arising from work
performed by the Contractor for the City.
ALL COVERAGES:
Each insurance policy required by this subsection will be endorsed to state that
coverage will not be suspended, voided, cancelled by either party, reduced in
coverage or in limits except after thirty (30) calendar days written notice by
certified mail, return receipt requested, has been given to:
KHB20151022
CITY CLERK
City of EI Segundo
Page 26 of 36
Agreement No. 5795
350 Main Street
EI Segundo, CA 90245
Notwithstanding the foregoing, the endorsement may state that insurance may
be cancelled upon ten (10) calendar day notification for non-payment of
premium. The Contractor will provide the City with updated proof of insurance
should the Contract Time extend beyond the policy expiration date.
All liability insurance will be on an occurrence basis. Insurance on a claims
made basis will be rejected. Any deductibles or self-insured retentions will be
declared to and approved by City. The insurer will provide an endorsement to
City eliminating such deductibles or self-insured retentions as respects the City,
its officials, employees, agents, and volunteers.
Except for Workers Compensation Insurance, Contractor will furnish to City
certificates of insurance and endorsements on forms acceptable to the City's
City Attorney, duly authenticated, giving evidence of the insurance coverages
required in this contract and other evidence of coverage or copies of policies
as may be reasonably required by City from time to time. Endorsements must
be supplied on ISO Form No. CG 20 10 11 85, or equivalent.
Certificate/endorsement for Workers Compensation Insurance will be furnished
on State Comp Fund or other industry standard form. Except for worker's
compensation insurance, all insurance required herein will be placed with
insurers with a Best's Rating of not less than A:VII. Worker's compensation
insurance policies will meet the requirements of California law.
All subcontractors employed on the work referred to in this contract will meet
the insurance requirements set forth for Contractor. Contractor will furnish
certificates of insurance and endorsements for each subcontractor at least five
days before the subcontractor entering the job site, or Contractor will furnish
City an endorsement including all subcontractors as insureds under its policies.
Except as provided in Subsection 6-10, the Contractor will save, keep and hold
harmless the City, its officers, officials, employees, agents and volunteers from
all damages, costs or expenses in law or equity that may at any time arise or
be claimed because of damages to property, or personal injury received by
reason of or in the course of performing work, which may be caused by any
willful or negligent act or omission by the Contractor or any of the Contractor's
employees, or any subcontractor. The City will not be liable for any accident,
loss or damage to the work before its completion and acceptance, except as
provided in Subsection 6-10.
The cost of such insurance will be included in the various items of work in the
Contractor's bid and no additional compensation for purchasing insurance or
additional coverage needed to meet these requirements will be allowed.
KHB20151022
Page 27 of 36
Agreement No. 5795
In the event that any required insurance is reduced in coverage, cancelled for
any reason, voided or suspended, Contractor agrees that City may arrange for
insurance coverage as specified, and Contractor further agrees that
administrative and premium costs may be deducted from payments due to the
Contractor. Contractor will not be allowed to work until alternate coverage is
arranged.
Coverage will not extend to any indemnity coverage for the active negligence
of the additional insured if the agreement to indemnify the additional insured
would be invalid under Civil Code § 2782(b).
7-3.2 INDEMNIFICATION AND DEFENSE
In addition to the provisions of Subsection 7-3 of the Greenbook as between
the City and Contractor, Contractor will take and assume all responsibility for
the work as stated herein or shown on the plans.
The Contractor will bear all losses and damages directly or indirectly resulting
to it, to the City, its officers, employees, and agents, or to others on account of
the performance or character of the work, unforeseen difficulties, accidents,
traffic control, job site maintenance, or any other causes whatsoever.
The Contractor will assume the defense of and indemnify and save harmless
the City of EI Segundo, its officers, employees, and agents, from and against
any and all claims, losses, damage, expenses and liability of every kind, nature,
and description, directly or indirectly arising from the performance of the
contract or work, regardless of responsibility for negligence, and from any and
all claims, losses, damage, expenses, and liability, howsoever the same may
be caused, resulting directly, or indirectly from the nature of the work covered
by the contract, regardless of responsibility for negligence, to the fullest extent
permitted by law. In accordance with Civil Code § 2782, nothing in this
Subsection 7-3.2 or in Subsection 7-3 of the Standard Specifications will
require defense or indemnification for death, bodily injury, injury to property, or
any other loss, damage or expense arising from the sole negligence or willful
misconduct of the City, or its agents, servants or independent contractors who
are directly responsible to the City, or for defects in design furnished by such
persons. Moreover, nothing in this Subsection 7-3.2 or in Subsection 7-3 will
apply to impose on the Contractor, or to relieve the City from, liability for active
negligence of the City.
The City does not, and will not, waive any rights against the Contractor which
it may have by reason of the aforesaid hold harmless agreements because of
the acceptance by the City, or deposit with City by Contractor, of any insurance
policies described in Subsection 7-3 of the Special Provisions. This hold
harmless agreement by the Contractor will apply to all damages and claims for
damages of every kind suffered, or alleged to have been suffered by reasons
ia:r-W11 INFA
Page 28 of 36
Agreement No. 5795
of any of the aforesaid operations of Contractor, or any subcontractor,
regardless of whether or not such insurance policies are determined to be
applicable to any of such damages or claims for damages.
No act by the City, or its representatives in processing or accepting any plans,
in releasing any bond, in inspecting or accepting any work, or of any other
nature, will in any respect relieve the Contractor or anyone else from any legal
responsibility, obligation or liability he might otherwise have.
7-5 PERMITS
The following paragraph will be added to Subsection 7-5 of Greenbook:
The Contractor will apply for permits required by the City. These permits will be
issued on a "no -fee" basis. However, the Contractor must pay for and obtain all
other permits from other governmental and utility agencies necessitated by
their operations.
All bonding fees, (overweight and oversized vehicle permit fees) inspection
permit fees or other fees charged or required for such permits must be paid by
the Contractor. These costs will be included in the bid item provided. If no bid
item is included, costs will be included in the various items of work, and no
additional payment will be allowed.
7-8.1 CLEANUP AND DUST CONTROL
Subsection 7-8.1, Cleanup and Dust Control, of the Greenbook is deleted in its
entirety and replaced by the following subsections.
7-8.1.1 GENERAL
On any construction project requiring trenching within public streets and for
which total trenching is in excess of 500 feet, the Contractor will be required to
sweep the worksite utilizing a pick-up type street sweeper a minimum of once
daily.
7-8.1.2 WATERING
Water for dust control caused by Contractor's operations or the passage of
traffic through the work will be applied as necessary or as directed by the
Engineer. Water for the above or other purposes may be obtained from any
approved source. If the Contractor chooses to use a City fire hydrant upon
placing deposits and fees as described in this contract, the Engineer will cause
a meter to be installed. All water used from the hydrant will be metered and
charged to the Contractor at the prevailing rate plus the current daily meter
rental rate. The Contractor will be charged a $15 reconnect fee if the Contractor
KHB20151022
Page 29 of 36
Agreement No. 5795
wishes to move the meter to a different hydrant. Costs of water to be used will
be included in the cost of various bid items.
7-8.6 WATER POLLUTION CONTROL
The following requirements are added to establish storm water and urban runoff
pollution prevention controls.
(a) Storm or construction generated water containing sediment such as,
construction waste, soil, slurry from concrete/asphalt concrete saw
cutting operations, clean up of concrete transit mixers or other pollutants
from construction sites and parking areas will be retained or controlled
on site and will not be permitted to enter the storm drain system.
(b) Temporary sediment filtering systems such as sandbags, silt fences, or
gravel berms will be utilized to trap sediment so that only filtered water
enters the City's storm drain system. Proper clean up and disposal of
settled sediment and the filtering system will be the responsibility of the
Contractor.
(c) Discharge of concrete transit mixer wash water on to approved dirt areas
(sub -grade area designated for new concrete construction for example)
is acceptable. Discharge on to private property, parkway areas, or the
street is not permitted.
(d) Plastic or other impervious covering will be installed where appropriate
to prevent erosion of an otherwise unprotected area, along with any
other runoff control devices deemed appropriate by the City.
(e) Excavated soil stored on the site will be covered in a manner that
minimizes the amount of sediments running into the storm drain system,
street or adjoining properties.
(f) No washing of construction or other industrial vehicles and equipment
will be allowed adjacent to a construction site. During the rainy season
(October 15 to April 15), Contractor will keep at the construction site
sufficient materials and labor to install temporary sediment filtering
systems and other water pollution prevention control measures. These
control measures will be in place and maintained by the Contractor on a
daily basis on days when construction is not in progress due to rain.
(h) All costs associated with water pollution control will be borne by the
Contractor. Any expense incurred by the City to expeditiously respond
to storm drain contamination resulting from Contractor's failure to
implement water pollution control measures will be charged to the
Contractor.
KHB20151022
Page 30 of 36
we
Usti]
7-10.1
Agreement No. 5795
PROTECTION AND RESTORATION OF EXISTING IMPROVEMENTS
The following requirements are added to Section 7-9:
Where existing traffic striping, pavement markings, and curb markings are
damaged or their reflectively reduced by the Contractor's operations, such
striping or markings will also be considered as existing improvements and the
Contractor will replace such improvements.
Relocations, repairs, replacements, or re -establishments will be at least equal
to the existing improvements and will match such improvements in finish and
dimensions unless otherwise specified.
PUBLIC CONVENIENCE AND SAFETY
The following requirement is added to Section 7-10:
Unless otherwise specified all traffic control will be performed in accordance
with the Work Area Traffic Control Handbook (WATCH) Latest Edition,
published by Building News, 3055 Overland Avenue, Los Angeles, CA 90034,
telephone 310-474-7771.
TRAFFIC AND ACCESS
The Contractor will notify the occupants of all affected properties at least 48
hours before any temporary obstruction of access. Vehicular access to property
line will be maintained except as required for construction for a reasonable
period of time. No overnight closure of any driveway will be allowed except as
permitted by the Engineer.
At least one (1) twelve (12) foot wide traffic lane will be provided for each
direction of travel on all streets at all times except as permitted by the Engineer.
The traffic lanes will be maintained on pavement, and will remain unobstructed.
All work requiring that a lane be closed or a lane moved right or left will be
noticed to the traveling public by use of City approved lighted arrow boards.
Clearances from traffic lanes will be five (5) feet to the edge of any excavation
and two (2) feet to the face of any curb, pole, barricade, delineator, or other
vertical obstruction.
One four (4) foot wide paved pedestrian walkway will be maintained in the
parkway area on each side of all streets. The clearance from the pedestrian
walkway to any traffic lane will be five (5) feet. Pedestrians and vehicles will be
protected from all excavations, material storage, and/or obstructions by the
placement of an adequate number of lighted barricades (minimum two (2)) at
KHB20151022
Page 31 of 36
Agreement No. 5795
each location, one (1) at each end of the obstruction or excavation), which will
have flashing lights during darkness. Barricades will be Type I or Type II per
Section 7-3 of the WATCH Manual and lights will be Type A per Section 7-6 of
the "Work Area Traffic Control Handbook" (WATCH).
7-10.2 STREET CLOSURES, DETOURS, BARRICADES
Street closures will not be allowed except as specifically permitted by the
Engineer.
The Contractor will prepare any traffic control or detour plans that may be
required as directed by the Engineer. Lane transitions will not be sharper than
a taper of thirty (30) to one (1).
Temporary traffic channelization will be accomplished with barricades or
delineators. Temporary striping will not be allowed unless specifically permitted
by the Engineer. The Contractor will prepare any plans that may be required
for temporary striping to the satisfaction of the Engineer. In no event will
temporary striping be allowed on finish pavement surfaces, which are to
remain.
Where access to driveway or street crossings need to be maintained, minimum
1 1/4 inch thick steel plating will be used to bridge the trench. All steel plating
will have temporary asphalt concrete 1:12 minimum sloped ramps to assist
vehicles to cross comfortably over the plates and have a non-skid surface.
Plates subject to vehicle high traffic speeds and in residential areas will be
secured by welding at the discretion of the Engineer.
7-10.5 PROTECTION OF THE PUBLIC
It is part of the service required of the Contractor to make whatever provisions
are necessary to protect the public. The Contractor will use foresight and will
take such steps and precautions as his operations warrant to protect the public
from danger, loss of life or loss of property, which would result from interruption
or contamination of public water supply, interruption of other public service, or
from the failure of partly completed work or partially removed facilities. Unusual
conditions may arise on the Project which will require that immediate and
unusual provisions be made to protect the public from danger or loss of life, or
damage to life and property, due directly or indirectly to prosecution of work
under this contract.
Whenever, in the opinion of the Engineer, an emergency exists against which
the Contractor has not taken sufficient precaution for the public safety,
protection of utilities and protection of adjacent structures or property, which
may be damaged by the Contractor's operations and when, in the opinion of
the Engineer, immediate action will be considered necessary in order to protect
KHB20151022
Page 32 of 36
Agreement No. 5795
the public or property due to the Contractor's operations under this contract,
the Engineer will order the Contractor to provide a remedy for the unsafe
condition. If the Contractor fails to act on the situation immediately, the
Engineer may provide suitable protection to said interests by causing such work
to be done and material to be furnished as, in the opinion of the Engineer, may
seem reasonable and necessary.
The cost and expense of said labor and material, together with the cost and
expense of such repairs as are deemed necessary, will be borne by the
Contractor. All expenses incurred by the City for emergency repairs will be
deducted from the progress payments and the final payment due to the
Contractor. Such remedial measures by the City will not relieve the Contractor
from full responsibility for public safety.
7-15 HAZARDOUS MATERIAL
The following Subsection will be added to Section 7 of the Greenbook:
For any excavation, which extends more than four feet below existing grade,
the Contractor will promptly, and before the conditions are disturbed, notify the
Engineer, in writing, of 1) any material that the Contractor believes may be
hazardous waste, as defined in Health and Safety Code § 25117, which is
required to be removed to a Class I, Class II, or Class III disposal site in
accordance with provisions of existing law, 2) subsurface or latent physical
conditions at the site differing from those indicated, or 3) unknown physical
conditions at the site of any unusual nature, different materially from those
ordinarily encountered and generally recognized as inherent in work of the
character provided for in the Contract Documents.
After receiving notice from the Contractor, the Engineer will promptly
investigate any condition identified by the Contractor as being hazardous. The
rights and obligations of the City and the Contractor with regard to such
conditions (including, without limitation, the procedures for procuring change
orders and filing claims) will be specified by the provisions of Subsection 3-4
(Changed Conditions) of the Greenbook.
If a dispute arises between the City and the Contractor whether the conditions
materially differ, involve hazardous waste, or cause a change in the
Contractor's cost or time required for performance of the work, the Contractor
will not be excused from any scheduled completion date provided for by the
contract, but will proceed with all work to be performed under the contract. The
Contractor will retain all rights provided by Subsection 3-5, Disputed Work, of
the Greenbook.
If the Engineer determines that material called to the Engineer's attention by
the Contractor is hazardous waste, or if the Engineer otherwise discovers the
KHB20151022
Page 33 of 36
Agreement No. 5795
existence of hazardous waste, the Contractor will be responsible for removal
and disposal of the hazardous waste by qualified personnel and appropriate
equipment in the manner required by law as directed by the Engineer, subject
to the provisions of Section 3 (Changes in Work) of the Greenbook.
9-2 LUMP SUM WORK
Subsection 9-2, Lump Sum Work, of the Greenbook is deleted in its entirety
and replaced by the following:
Items for which quantities are indicated as "Lump Sum," "L.S.," or "Job" will be
paid for at the price indicated in the Proposal. Such payment will be full
compensation for all costs for labor, equipment, materials and plant necessary
to furnish, construct and install the lump sum item of work, complete, in place,
and for all necessary appurtenant work, including, but not limited to, all
necessary cutting, patching, repair and modification of existing facilities, and
clean up of site.
Contractor will furnish three copies of a detailed schedule, which breaks down
the lump sum work into its component parts and cost for each part, in a form
and sufficiently detailed as to satisfy Engineer that it correctly represents a
reasonable apportionment of the lump sum. This schedule is subject to
approval by Engineer as to both the components into which the lump sum item
is broken down, and the proportion of cost attributable to each component.
This schedule will be the basis for progress payments for the lump sum work.
9-3.2 PARTIAL AND FINAL PAYMENTS
The text of Subsection 9-3.2 of the Standard Specifications is deleted and
replaced with the following:
The closure date for the purpose of making partial progress payments will be
the last working day of each month. The Contractor will prepare the partial
payment invoice with measurement of the work performed through the closure
date and submit it to the CITY for approval.
When work is complete, the Contractor will determine the final quantities of the
work performed and prepare the final progress payment, and submit it to the
Engineer for approval.
It will take a minimum of thirty-five (35) calendar days from the date of
approving the Contractor's invoice to make the payment to the Contractor.
However, payments will be withheld pending receipt of any outstanding reports
required by the contract documents, or legal release of filed Stop Payment
Notices against the Contractor. In addition, the final progress payment will not
KH 620151022
Page 34 of 36
Agreement No. 5795
be released until the Contractor returns the control set of Plans and
Specifications showing the as -built conditions.
The full five percent (5%) retention will be deducted from all progress
payments. The Contractor will make a payment request for the retained
amount, for approval by the City, upon field acceptance of the work by the City
Engineer. The City Engineer upon field acceptance and receipt of the final as -
built plans and any other reports or documents required to be provided by the
Contractor will process a recommendation to the City Council for acceptance
of the work. Not less than thirty-five (35) calendar days from the City Council
acceptance of the work, the Contractor's final payment will be made provided
Stop Payment Notices or other claims have not been filed against the
Contractor and/or the City by material suppliers, sub -contractors, other
governmental agencies, and private property owners. Until these Stop
Payment Notices are released and claims are resolved the stop payment/claim
amount will be withheld from the final payment.
The Contractor, however, may receive interest on the retention for the length
of construction, or receive the retention itself as long as the retention is
substituted with escrow holder surety or equal value.
At the request and expense of the Contractor, surety equivalent to the retention
may be deposited with the State Treasurer, or a State or Federally chartered
bank, as the escrow agent, who will pay such surety to the Contractor upon
satisfactory completion of the contract.
Pursuant to PCC § 22300, the Contractor may substitute securities for retention
monies held by the City or request that the City place such monies into an
escrow account. The Contractor is notified, pursuant to PCC § 22300, that any
such election will be at the Contractor's own expense and will include costs
incurred by the City to accommodate the Contractor's request.
Progress payment paid by the City as contemplated herein, will be contingent
upon the Contractor submitting, in addition to any additional documents, an
updated Contract Schedule in the form prescribed by these Contract
Documents. Failure of the Contractor to submit an acceptable updated Contract
Schedule will result in the City withholding partial payment, without liability to
the City, until such an acceptable updated Contract Schedule is submitted.
Nothing herein will allow the Contractor to suspend or slow progress of the
Work.
A City Council resolution established a Project Payment Account, encumbered
money in the current budget, and assigned that money to the Project Payment
Account which is the sole source of funds available for payment of the Contract
Sum. Contractor understands and agrees that Contractor will be paid only from
this special fund and if for any reason this fund is not sufficient to pay
KHB20151022
Page 35 of 36
Agreement No. 5795
Contractor, Contractor will not be entitled to payment. The availability of money
in this fund, and City's ability to draw from this fund, are conditions precedent
to City's obligation to make payments to Contractor.
9-3.3 DELIVERED MATERIALS
Materials and equipment delivered or stored, but not incorporated into the work,
will not be approved for progress payments.
100-1 TERMINATION OF AGENCY LIABILITY
Before receiving final payment, the Contractor will execute a "Release on
Contract" form which will operate as, and will be a release to the City, the City
Council, and each member of the City Council and their agencies, from all
claims and liability to the Contractor for anything done or furnished for, or
relating to, the work or for any act of neglect of the City of any person relating
to or affecting the work, except the claim against the City for the remainder, if
any there be, of the amounts kept or retained as provided in Subsections 9-3
of the Standard Specifications and except for any unsettled claims listed on
said form which have been filed in compliance with the requirements for making
claims.
- END OF SECTION -
KHB20151022
Page 36 of 36