Construction Agreement

City of Glendale — Regular Meeting (2023-05-23)

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CONSTRUCTION AGREEMENT 
 
This Construction Agreement ("Agreement") is entered into and effective between the CITY OF 
GLENDALE, an Arizona municipal corporation ("City"), and Combs Construction Company, Inc., 
a(n) Arizona corporation, authorized to do business in Arizona (“Contractor") as of the _____ day 
of ____________, 20__. 
 
              RECITALS 
 
A. 
City intends to undertake a project for the benefit of the public and with public funds that 
is more fully set forth in the Notice to Contractors and the attached Exhibit A ("Project"); 
 
B. 
City desires to retain the services of Contractor to perform those specific duties and 
produce the specific work as set forth in the Project, the plans and specifications, the 
Information for Bidders, and the Maricopa Association of Governments (“MAG”) General 
and Supplemental Conditions and Provisions; 
 
C.         City and Contractor desire to memorialize their agreement with this document. 
 
             AGREEMENT 
 
In consideration of the Recitals, which are confirmed as true and correct and incorporated by 
this reference, the mutual promises and covenants contained in this Agreement, and other good 
and valuable consideration, City and Contractor agree as follows: 
 
1. 
Project. 
 
1.1 
Scope.  Contractor will provide all services and material necessary to assure the 
Project is completed timely and efficiently consistent with Project requirements, 
including, but not limited to, working in close interaction and interfacing with City 
and its designated employees, and working closely with others, including other 
contractors, providers or consultants retained by City. 
 
1.2  
Documents. The following documents are, by this reference, entirely incorporated 
into this Agreement and attached Exhibits as though fully set forth herein: 
 
(A) Notice to Contractors; 
(B) Information for Bidders; 
(C) MAG General Conditions, Supplemental General Conditions, Special and 
Technical Provisions; 
(D) Proposal; 
(E) Bid Bond; 
(F) Payment Bond; 
(G) Performance Bond; 
(H) Certificate of Insurance; 
(I) Appendix; and 
(J) Plans and Addenda thereto. 
 
Should a conflict exist between this Agreement (and its attachments), and any of 
the incorporated documents as listed above, the provisions of this Agreement 
shall govern. 
 
1.3       Project Team.

(A) 
Project Manager.  Contractor will designate an employee as Project 
Manager with sufficient training, knowledge, and experience to, in the 
City's opinion, to complete the project and handle all aspects of the 
Project such that the work produced by Contractor is consistent with 
applicable standards as detailed in this Agreement. 
(B) 
Project Team. 
 
(1) 
The Project manager and all other employees assigned to the 
project by Contractor will comprise the "Project Team." 
 
(2) 
Project Manager will have responsibility for and will supervise all 
other employees assigned to the project by Contractor. 
 
(C)       Sub-contractors. 
 
(1) 
Contractor may engage specific technical contractor (each a "Sub-
contractor") to furnish certain service functions. 
 
(2)        Contractor will remain fully responsible for Sub-contractor's   services. 
 
(3) 
Sub-contractors must be approved by the City, unless the Sub-
contractor was previously mentioned in the response to the 
solicitation. 
 
(4) 
Contractor shall certify by letter that contracts with Sub-
contractors have been executed incorporating requirements and 
standards as set forth in this Agreement. 
 
2. 
Schedule.  The Project will be undertaken in a manner that ensures it is completed in a 
timely and efficient manner.  If not otherwise stated in Exhibit A, the Project shall be 
completed by no later than within forty-two (42) consecutive calendar days from and 
including the date of receipt of the Notice to Proceed. 
 
3.        Contractor’s Work. 
 
3.1 
Standard.  Contractor must perform services in accordance with the standards of 
due diligence, care, and quality prevailing among contractors having substantial 
experience with the successful furnishing of services and materials for projects 
that are equivalent in size, scope, quality, and other criteria under the Project and 
identified in this Agreement. 
 
3.2       Licensing.  Contractor warrants that: 
 
(A) 
Contractor and Sub-contractors will hold all appropriate and required 
licenses, registrations and other approvals necessary for the lawful 
furnishing of services ("Approvals"); and 
 
(B) 
Neither Contractor nor any Sub-contractor has been debarred or otherwise 
legal1y excluded from contracting with any federal, state, or local 
governmental entity ("Debarment").

(1) 
City is under no obligation to ascertain or confirm the existence or 
issuance of any Approvals or Debarments or to examine 
Contractor's contracting ability. 
 
(2) 
Contractor must notify City immediately if any Approvals or 
Debarment changes during the Agreement’s duration and the 
failure of the Contractor to notify City as required will constitute a 
material default of this Agreement. 
 
3.3 
Compliance.  Services and materials will be furnished in compliance with 
applicable federal, state, county and local statutes, rules, regulations, ordinances, 
building codes, life safety codes, or other standards and criteria designated by 
City. 
 
 
Contractor must not discriminate against any employee or applicant for 
employment on the basis of race, religion, color sex or national origin.  Contractor 
must develop, implement and maintain non-discrimination policies and post the 
policies in conspicuous places visible to employees and applicants for 
employment.  Contractor will require any Sub-contractor to be bound to the same 
requirements as stated within this section. 
 
 
3.4      Coordination; Interaction. 
 
(A) 
If the City determines that the Project requires the coordination of 
professional services or other providers, Contractor will work in close 
consultation with City to proactively interact with any other contractors 
retained by City on the Project ("Coordinating Entities"). 
 
(B) 
Subject to any limitations expressly stated in the budget, Contractor will 
meet to review the Project, schedules, budget, and in-progress work with 
Coordinating Entities and the City as often and for durations as City 
reasonably considers necessary in order to ensure the timely work delivery 
and Project completion. 
 
(C) 
If the Project does not involve Coordinating Entities, Contractor will 
proactively interact with any other contractors when directed by City to 
obtain or disseminate timely information for the proper execution of the 
Project. 
 
3.5 
Hazardous Substances.  Contractor is responsible for the appropriate handling, 
disposal of, and if necessary, any remediation and all losses and damages to the 
City, associated with the use or release of hazardous substances by Contractor in 
connection with completion of the Project. 
 
 
3.6 
Warranties.  At any time within two years after completion of the Project, 
Contractor must, at Contractor’s sole expense and within 20 days of written 
notice from the City, uncover, correct and remedy all defects in Contractor’s work.  
City will accept a manufacturer’s warranty on approved equipment as satisfaction 
of the Contractor’s warranty under this subsection.  
 
3.7. 
Bonds.  Upon execution of this Agreement, and if applicable, Contractor must 
furnish Payment and Performance bonds as required under A.R.S. § 34-608.

4.        Compensation for the Project. 
 
4.1 
Compensation.  Contractor's compensation for the Project, including those 
furnished by its Sub-contractors will not exceed $1,427,306.90, as specifically 
detailed in the Contractor’s bid and set forth in Exhibit B ("Compensation"). 
 
4.2      Change in Scope of Project.  The Compensation may be equitably adjusted if the 
originally   contemplated scope of services as outlined in the Project is significantly 
modified by the City. 
a.         Adjustments to the Scope or Compensation require a written amendment to 
this Agreement and may require City Council approval. 
b.         Additional services which are outside the scope of the Project and not 
contained in this Agreement may not be performed by the Contractor 
without prior written authorization from the City. 
c.         Notwithstanding the incorporation of the Exhibits to this Agreement by 
reference, should any conflict arise between the provisions of this 
Agreement and the provisions found in the Exhibits and accompanying 
attachments, the provisions of this Agreement shall take priority and govern 
the conduct of the parties. 
 
5.        Billings and Payment. 
 
5.1      Applications. 
 
(A) 
The Contractor will submit monthly invoices (each, a "Payment 
Application") to City's Project Manager and City will remit payments based 
upon the Payment Application as stated below. 
 
(B) 
The period covered by each Payment Application will be one calendar 
month ending on the last day of the month. 
 
5.2      Payment. 
 
(A) 
After a full and complete Payment Application is received, City will 
process and remit payment within thirty (30) days. 
 
(B) 
Payment may be subject to or conditioned upon City's receipt of: 
 
(1) 
Completed work generated by Contractor and its Sub-contractors; 
and 
(2) 
Unconditional waivers and releases on final payment from Sub-
contractors as City may reasonably request to assure the Project 
will be free of claims arising from required performances under 
this Agreement. 
 
5.3 
Review and Withholding.  City's Project Manager will timely review and certify 
Payment Applications. 
 
(A) 
If the Payment Application is rejected, the Project Manager will issue a 
written listing of the items not approved for payment. 
 
(B) 
City may withhold an amount sufficient to pay expenses that City 
reasonably expects to incur in correcting the deficiency or deficiencies 
rejected for payment.

(C) 
 Contractor will provide, by separate cover, and concurrent with the 
execution of this Agreement, all required financial information to the City, 
including City of Glendale Transaction Privilege License and Federal 
Taxpayer identification numbers. 
(D) 
City will temporarily withhold Compensation amounts as required by A.R.S. 34-
221(C).  
 
6.        Termination. 
 
6.1 
For Convenience.  City may terminate this Agreement for convenience, without 
cause, by delivering a written termination notice stating the effective termination 
date, which may not be less than fifteen (15) days following the date of delivery. 
 
(A) 
Contractor will be equitably compensated any services and materials 
furnished prior to receipt of the termination notice and for reasonable 
costs incurred. 
 
(B) 
Contractor will also be similarly compensated for any approved effort 
expended and approved costs incurred that are directly associated with 
Project closeout and delivery of the required items to the City. 
 
6.2 
For Cause.  City may terminate this Agreement for cause if Contractor fails to 
cure any breach of this Agreement within seven (7) days after receipt of written 
notice specifying the breach. 
 
(A) 
Contractor will not be entitled to further payment until after City has 
determined its damages.  If City's damages resulting from the breach, as 
determined by City, are less  
(B) 
than the equitable amount due but not paid Contractor for Service and 
Repair furnished, City will pay the amount due to Contractor, less City's 
damages. 
(C) 
If City's direct damages exceed amounts otherwise due to Contractor, 
Contractor must pay the difference to City immediately upon demand; 
however, Contractor will not be subject to consequential damages more 
than $1,000,000 or the amount of this Agreement, whichever is greater. 
 
7.        Insurance. 
 
7.1 
Requirements. Contractor must obtain and maintain the following insurance 
("Required Insurance"): 
 
(A) 
Contractor and Sub-contractors.  Contractor, and each Sub-contractor 
performing work or providing materials related to this Agreement must 
procure and maintain the insurance coverages described below 
(collectively, “Contractor's Policies"), until each Parties' obligations under 
this Agreement are completed. 
 
(B)       General Liability. 
 
(1) 
Contractor must at all times relevant hereto carry a commercial 
general liability policy with a combined single limit of at least 
$1,000,000 per occurrence and $2,000,000 annual aggregate.

(2) 
Sub-contactors must at all times relevant hereto carry a general 
commercial liability policy with a combined single limit of at least 
$1,000,000 per occurrence. 
 
(3) 
This commercial general liability insurance must include 
independent contractors' liability, contractual liability, broad form 
property coverage, products and completed operations, XCU 
hazards if requested by the City, and a separation of insurance 
provision. 
 
(4) 
These limits may be met through a combination of primary and 
excess liability coverage. 
 
(C) 
Auto.  A business auto policy providing a liability limit of at least 
$1,000,000 per accident for Contractor and 1,000,000 per accident for 
Sub-contractors and covering owned, non-owned and hired automobiles. 
 
(D) 
Workers' Compensation and Employer's Liability.  A workers' 
compensation and employer's liability policy providing at least the 
minimum benefits required by Arizona law. 
 
(E) 
Equipment Insurance.  Contractor must secure, pay for, and maintain all-
risk insurance as necessary to protect the City against loss of owned, non-
owned, rented or leased capital equipment and tools, equipment and 
scaffolding, staging, towers and forms owned or rented by Contractor or 
its Sub-contractors. 
 
(F) 
Notice of Changes.  Contractor's Policies must provide for not less than 30 
days' advance written notice to City Representative of: 
 
(1) Cancellation or termination of Contractor or Sub-contractor's Policies; 
 
(2) 
Reduction of the coverage limits of any of Contractor or and Sub-
contractor's Policies; and 
 
 
(3) 
Any other material modification of Contractor or Sub-contractor's 
Policies related to this Agreement. 
 
(G)       Certificates of Insurance. 
 
(1) 
Within ten (10) business days after the execution of the 
Agreement, Contractor must deliver to City Representative 
certificates of insurance for each of Contractor and Sub-
contractor's Policies, which will confirm the existence or issuance 
of Contractor and Sub-contractor's Policies in accordance with the 
provisions of this section, and copies of the endorsements of 
Contractor and Sub-contractor's Policies in accordance with the 
provisions of this section. 
(2) 
City is and will be under no obligation either to ascertain or 
confirm the existence or issuance of Contractor and Sub-
contractor's Policies, or to examine Contractor and Sub-
contractor's Policies, or to inform Contractor or Sub-contractor in 
the event that any coverage does not comply with the requirements 
of this section.

(3) 
Contractor's failure to secure and maintain Contractor Policies and 
to assure Sub-contractor policies as required will constitute a 
material default under this Agreement. 
 
 (H)      Other Contractors or Vendors. 
 
(1) 
Other contractors or vendors that may be contracted by Contractor 
within connection with the Project must procure and maintain 
insurance coverage as is appropriate to their particular agreement. 
 
(2) 
This insurance coverage must comply with the requirements set 
forth above for Contractor's Policies (e.g., the requirements 
pertaining to endorsements to name the parties as additional 
insured parties and certificates of insurance). 
 
 (I) 
Policies.  Except with respect to workers' compensation and employer's 
liability coverages, the City must be named and properly endorsed as 
additional insureds on all liability policies required by this section. 
 
 
(1) 
The coverage extended to additional insureds must be primary and 
must not contribute with any insurance or self insurance policies 
or programs maintained by the additional insureds. 
 
(2) 
All insurance policies obtained pursuant to this section must be 
with companies legally authorized to do business in the State of 
Arizona and acceptable to all parties. 
 
7.2      Sub-contractors. 
 
(A) 
Contractor must also cause its Sub-contractors to obtain and maintain the 
Required Insurance. 
 
(B) 
City may consider waiving these insurance requirements for a specific 
Sub-contractor if City is satisfied the amounts required are not 
commercially available to the Sub-contractor and the insurance the Sub-
contractor does have is appropriate for the Sub-contractor's work under 
this Agreement. 
 
(C) 
Contractor and Sub-contractors must provide to the City proof of Required 
Insurance whenever requested. 
7.3       Indemnification. 
 
(A) 
To the fullest extent permitted by law, Contractor must defend, indemnify, 
and hold harmless City and its elected officials, officers, employees and 
agents (each, an "Indemnified Party," collectively, the "Indemnified 
Parties"), for, from, and against any and all claims, demands, actions, 
damages, judgments, settlements, personal injury (including sickness, 
disease, death, and bodily harm), property damage (including loss of use), 
infringement, governmental action and all other losses and expenses, 
including attorneys' fees and litigation expenses (each, a "Demand or 
Expense"; collectively, "Demands or Expenses") asserted by a third-party 
(i.e. a person or entity other than City or Contractor) and that arises out of 
or results from the breach of this Agreement by the Contractor or the 
Contractor’s negligent actions, errors or omissions (including any Sub-

contractor or other person or firm employed by Contractor), whether 
sustained before or after completion of the Project. 
 
(B) 
This indemnity and hold harmless policy applies even if a Demand or 
Expense is in part due to the Indemnified Party's negligence or breach of a 
responsibility under this Agreement, but in that event, Contractor shall be 
liable only to the extent the Demand or Expense results from the 
negligence or breach of a responsibility of Contractor or of any person or 
entity for whom Contractor is responsible. 
 
(C) 
Contractor is not required to indemnify any Indemnified Parties for, from, 
or against any Demand or Expense resulting from the Indemnified Party's 
sole negligence or other fault solely attributable to the Indemnified Party. 
 
7.4 
Waiver of Subrogation.  Contractor waives, and will require any Subcontractor to 
waive, all rights of subrogation against the City to the extent of all losses or 
damages covered by any policy of insurance. 
 
8. 
E-verify, Records and Audits. To the extent applicable under A.R.S. § 41-4401, the 
Contractor warrant their compliance and that of its subcontractors with all federal 
immigration laws and regulations that relate to their employees and compliance with the 
E-verify requirements under A.R.S. § 23-214(A). The Contractor or subcontractor’s breach 
of this warranty shall be deemed a material breach of the Agreement and may result in 
the termination of the Agreement by the City under the terms of this Agreement. The City 
retains the legal right to randomly inspect the papers and records of the other party to 
ensure that the other party is complying with the above-mentioned warranty. The 
Contractor and subcontractor warrant to keep their respective papers and records open 
for random inspection during normal business hours by the other party. The parties shall 
cooperate with the City’s random inspections, including granting the inspecting party 
entry rights onto their respective properties to perform the random inspections and 
waiving their respective rights to keep such papers and records confidential. 
 
9. 
No Boycott of Israel. The Parties agree that they are not currently engaged in, and agree 
that for the duration of the Agreement they will not engage in, a boycott of Israel, as that 
term is defined in A.R.S. §35-393. 
 
10. 
Conflict.  Contractor acknowledges this Agreement is subject to A.R.S. § 38-511, which 
allows for cancellation of this Agreement in the event any person who is significantly 
involved in initiating, negotiating, securing, drafting, or creating the Agreement on City's 
behalf is also an employee, agent, or consultant of any other party to this Agreement. 
 
 
11.Notices. 
 
11.1 
A notice, request or other communication that is required or permitted under this 
Agreement (each a "Notice") will be effective only if: 
 
 
(A)       The Notice is in writing, and 
 
(B) 
Delivered in person or by private express overnight delivery service 
(delivery charges prepaid), certified or registered mail (return receipt 
requested). 
 
(C) 
Notice will be deemed to have been delivered to the person to whom it is 
addressed as of the date of receipt, if:

(1) 
Received on a business day, or before 5:00 p.m., at the address 
for Notices identified for the Party in this Agreement by U.S. Mail, 
hand delivery, or overnight courier on or before 5:00 p.m.; or 
 
(2) 
As of the next business day after receipt, if received after 5:00 
p.m. 
 
(D) 
The burden of proof of the place and time of delivery is upon the Party 
giving the Notice. 
 
(E) 
Digitalized signatures and copies of signatures will have the same effect 
as original signatures. 
 
11.2    Representatives. 
 
(A) 
Contractor.  Contractor's representative ("Contractor's Representative") 
authorized to act on Contractor's behalf with respect to the Project, and 
his or her address for Notice delivery is: 
 
                                   Combs Construction Company, Inc. 
                                   Attn: Ryan Combs 
                                   P.O Box 10789 
                                   Glendale, AZ 85318 
 
(B) 
City.  City's representative ("City's Representative") authorized to act on 
City's behalf, and his or her address for Notice delivery is: 
 
                                  City of Glendale 
Attn:  David Beard 
                                  5850 West Glendale Avenue 
                                  Glendale, Arizona 85301 
 
With required copies to: 
 
City of Glendale 
City Manager 
5850 West Glendale Avenue 
Glendale, Arizona 85301 
 
City of Glendale 
City Attorney 
5850 West Glendale Avenue 
Glendale, Arizona 85301 
 
(C) 
Concurrent Notices. 
 
(1) 
All notices to City's representative must be given concurrently to 
City Manager and City Attorney. 
 
(2) 
A notice will not be considered to have been received by City's 
representative until the time that it has also been received by City 
Manager and City Attorney. 
 
(3) 
City may appoint one or more designees for the purpose of 
receiving notice by delivery of a  
written notice to Contractor identifying the designee(s) and their 
respective addresses for notices.

(D) 
Changes.  Contractor or City may change its representative or information 
on Notice, by giving Notice of the change in accordance with this section 
at least ten days prior to the change. 
 
12. 
Financing Assignment.  City may assign this Agreement to any City-affiliated entity, 
including a non-profit corporation or other entity whose primary purpose is to own or 
manage the Project. 
 
13.      Entire Agreement; Survival; Counterparts; Signatures. 
 
13.1 
Integration.  This Agreement contains, except as stated below, the entire 
agreement between City and Contractor and supersedes all prior conversations 
and negotiations between the parties regarding the Project or this Agreement. 
 
(A) 
Neither Party has made any representations, warranties or agreements as 
to any matters concerning the Agreement's subject matter. 
 
(B) 
Representations, statements, conditions, or warranties not contained in 
this Agreement will not be binding on the parties. 
 
(C) 
Any solicitation, addendums and responses submitted by the Contractor are 
incorporated fully into this Agreement as Exhibit A.  Any inconsistency 
between Exhibit A and this Agreement will be resolved by the terms and 
conditions stated in this Agreement. 
 
13.2     Interpretation. 
 
(A) 
The parties fairly negotiated the Agreement's provisions to the extent they 
believed necessary and with the legal representation they deemed 
appropriate. 
 
(B) 
The parties are of equal bargaining position and this Agreement must be 
construed equally between the parties without consideration of which of the 
parties may have drafted this Agreement. 
 
(C) 
The Agreement will be interpreted in accordance with the laws of the State of 
Arizona. 
 
13.3 
Survival.  Except as specifically provided otherwise in this Agreement each 
warranty, representation, indemnification and hold harmless provision, insurance 
requirement, and every other right, remedy and responsibility of a Party, will survive 
completion of the Project, or the earlier termination of this Agreement. 
 
13.4 
Amendment.  No amendment to this Agreement will be binding unless in writing 
and executed by the parties.  Any amendment may be subject to City Council 
approval. 
 
13.5 
Remedies.  All rights and remedies provided in this Agreement are cumulative and 
the exercise of any one or more right or remedy will not affect any other rights or 
remedies under this Agreement or applicable law. 
 
13.6 
Severability.  If any provision of this Agreement is voided or found unenforceable, 
that determination will not affect the validity of the other provisions, and the voided 
or unenforceable provision will be reformed to conform to applicable law. 
 
13.7 
Counterparts.  This Agreement may be executed in counterparts, and all counterparts 
will together comprise one instrument.

14. 
Dispute Resolution.  Any controversy or claim arising out of or relating to this contract, or 
the breach thereof, shall be settled by arbitration administered according to the American 
Arbitration Association’s Commercial Arbitration Rules, and judgment on the award 
rendered by the arbitrator may be entered in any court having jurisdiction thereof. 
 
15. 
Exhibits.  The following exhibits, with reference to the term in which they are first referenced, 
are incorporated by this reference. 
 
Exhibit A Project 
Exhibit B Compensation

The parties enter into this Agreement as of the date shown above. 
 
 
 
 
City of Glendale, 
an Arizona municipal corporation 
 
 
_____________________________________ 
 
By:  Kevin R. Phelps 
Its:  City Manager 
 
ATTEST: 
 
 
________________________________ 
Julie K. Bower, City Clerk   (SEAL) 
 
 
 
APPROVED AS TO FORM: 
 
 
__________________________________ 
Michael D. Bailey, City Attorney 
 
Combs Construction Company, Inc. 
an Arizona corporation 
 
 
 
 
 
 
 
 _____________________________________ 
 By:  Ryan Combs 
 Its:  President 
 
 
 
 
 
WOMEN-OWNED/MINORITY BUSINESS [   ] YES   [    ] NO 
CITY OF GLENDALE TRANSACTION PRIVILEGE TAX NO. ________________________ 
FEDERAL TAXPAYER IDENTIFICATION NO. ____________________________________

EXHIBIT A 
                         CONSTRUCTION AGREEMENT 
 
                        PROJECT 
 
 
This project involves the reconstruction of approximately 17,500 square yards of apron pavement 
along the shade structure taxilanes. The reconstruction of the project area includes demolishing 
the existing taxilane pavement, lowering the catch basins, installing valley gutters and paving 
back new asphalt pavement. The intention of this work is to address degradation and drainage 
issues with the existing taxilanes within the project area.

EXHIBIT B 
              CONSTRUCTION AGREEMENT 
 
               COMPENSATION 
 
 
METHOD AND AMOUNT OF COMPENSATION 
 
By bid, including all services, materials and costs. 
 
NOT-TO-EXCEED AMOUNT 
 
The total amount of compensation paid to Contractor for full completion of all work required by 
the Project during the entire term of the Project must not exceed $1,427,306.90. 
 
DETAILED PROJECT COMPENSATION 
 
As shown in detail in the Bid Schedule 
 
Base Bid           $1,427,306.90