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Item 10 CITY COUNCII REPORT Is \ Meeting Date: General Plan Element: General Plan Goal: June 9,2026 Public Services & Facilities Provide a safe environment for all citizens, visitors and private interests ACTION Construction Manager at Risk Design-Phase Services Contract for Scottsdaie Airport Runway 3-21 Pavement Preservation Project. Adopt Resolution No. 13664 authorizing contract No. 2026-073- COS with J. Banicki Construction, Inc. in the amount of $23,677.43 to provide preconstruction phase services as Construction Manager at Risk (CMAR) for the Runway 3-21 Pavement Preservation Project at Scottsdale Airport. BACKGROUND The purpose of this action is to award a CMAR design-phase services contract No. 2026-073-COS with J. Banicki Construction, Inc. The CMAR will provide supplemental design, prepare cost estimates, conduct value engineering, perform constructability reviews, identify construction items that take a long time to purchase, prepare schedules, perform sub-contractor bidding and selection and prepare a Guaranteed Maximum Price (GMP) proposal. The development plan currently calls for the surface preparation and placement of a seal coat on Runway 3-21 pavement surface, which also includes Runway blast pads and paved shoulders. The project also consists of the removal of existing rubber deposits from the landing zones at both ends of Runway 3-21. The exact limits for rubber removal will be established during the design phase. Following the rubber removal, marking removal and surface preparation. Runway 3-21 will receive an application of an emulsified asphalt seal coat, crack repair, and the installation of new pavement markings. The contract to make these improvements will be brought forward to the City Council for consideration at a future date, most likely in the summer of 2026. The construction phase at this time is expected to iast approximately one week and the runway will be closed 24 hours/7 days per week. We anticipate closing the runway in October of 2026 The Aviation Department will be launching an extensive outreach program to keep ali of our tenants and users informed. Most of the tenants based at the airport will typically relocate their aircraft to another airport during the closures. Early outreach enables them to find a hangar or tie-down space that they will need to keep their operations running. 19178330 Blueink Bundle ID: CGmZSjWjEz City Council Report | Construction Manager at Risk - Airport Runway 3-21 Pavement Preservation Project at Scottsdale Airport The most recent runway rehabilitation project in the summer of 2021 was a 4-inch mill and overlay of the original runway section and a 3-inch mill and 5-inch overlay on the runway extension section. As part of the 2021 project, the 9-foot runway shoulders and 120-foot by 150-foot blast pads were reconstructed at both runway ends. This Project recommends that the runway's current condition be maintained. ANALYSIS & ASSESSMENT Recent Staff Action The Aviation and Purchasing Departments, were responsible for conducting the Request for Qualifications (RFQ) process that was used to select J. Banicki Construction, Inc. The RFQ was advertised in accordance with State and City Procurement Regulations. The RFQ was also posted on the City's Purchasing website. Three (3) firms submitted statements of qualification and all three (3) of those firms were short-listed and subsequently interviewed. A team of five (5) members including one (1) construction company executive and one (1) aviation engineer were assembled to complete evaluations and conduct the interviews. Using a points/rank based evaluation system and the interview process, the committee concluded that J. Banicki Construction, Inc. was the most qualified. Community Involvement The public was provided with the opportunity to comment on this proposed action at the Airport Advisory Commission meeting on May 20,2026. No negative comments were received, and the Airport Advisory Commission unanimously approved a motion to recommend to the City Council adoption of Resolution No. 13664 authorizing contract No. 2026-073-COS. RESOURCE IMPACTS Available Funding It is anticipated that Aviation Enterprise funds will be used to fund both the design and construction phases of this project. The total probable construction cost is $866,000. Aviation CIP Center 60004 (Rehab Runway 3/21 Pavement PA2403) will be used to record the financial activity for this contract. The City Council approved funding for this project during the FY 25/26 budget process and is included in the FY26/27 budget. Page 2 of 4 19178330 Blueink Bundle ID: CGmZSjWjEz City Council Report | Construction Manager at Risk - Airport Runway 3-21 Pavement Preservation Project at Scottsdale Airport Staffing, Workload Impact Existing Aviation Department staff will manage this project and shall not cause any negative workload impacts. OPTIONS & STAFF RECOMMENDATION Recommended Approach The Airport Advisory Commission and the Aviation Department recommend: Adopting Resolution No. 13664 authorizing contract No. 2026-073-COS with J. Banicki Construction, Inc. in the amount of $23,677.43 to conduct preconstruction phase services as Construction Manager at Risk (CMAR) for the Airport Runway 3-21 Pavement Preservation Project at Scottsdale Airport. Proposed Next Steps If the contract is authorized by City Council, the Aviation Department will direct the contractor to start the pre-construction phase of the project immediately. RESPONSIBLE DEPARTMENT(S) Aviation Department STAFF CONTACT(S) Rick Wielebski, Aviation Director, rwielebski(5)scottsdaleaz.gov Matthew Johnson, A.C.E., Director - Operations & Maintenance, mliohnson(5)scottsdaleaz.Eov APPROVED BY Page 3 of 4 19178330 Bluelnk Bundle ID: CGmZSjWjEz City Council Report | Construction Manager at Risk - Airport Runway 3-21 Pavement Preservation Project at Scottsdale Airport 5/20/26 Rick Wielebski, Aviation Director 480-312-8475, rwielebski(5)scottsdaleaz.eov Date 5/20/26 Judy Doyle, Deputy City Manager 480-312-2697. idovle(S)scottsdaleaz.gov Date 5/21/26 Greg Caton, City Manager 480-312-7759, gcaton(5)scottsdaleaz.gov Date ATTACHMENTS 1. Resolution No. 13664 2. Contract No. 2026-073-COS 3. Project Area Map 19178330 Blueink Bundle ID: CGmZSjWjEz Page 4 of 4 RESOLUTION NO. 13664 A RESOLUTION OF THE COUNCIL OF THE CITY OF SCOTTSDALE. MARICOPA COUNTY. ARIZONA AUTHORIZING CONSTRUCTION MANAGER AT RISK CONTRACT NO. 2026-073-COS WITH J. BANICKI CONSTRUCTION. INC. FOR PRECONSTRUCTION SERVICES FOR THE AIRPORT RUNWAY 3-21 PAVEMENT PRESERVATION PROJECT IN AN AMOUNT NOT TO EXCEED $23,677.43. WHEREAS, the City of Scottsdale desires to enter into Construction Manager at Risk Contract No. 2026-073-COS to provide preconstruction phase services for the Airport Runway 3-21 Pavement Preservation Project at Scottsdale Airport; and WHEREAS. J. Banicki Construction. Inc. has been selected through a competitive process (Solicitation 26RFSQ058) and is qualified to render the services desired by the City; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Scottsdale. Maricopa County. Arizona as follows: Section 1. The Mayor is hereby authorized and directed to execute Construction Manager at Risk Contract No. 2026-073-COS with J. Banicki Construction. Inc to provide preconstruction phase services for the Airport Runway 3-21 Pavement Preservation Project at Scottsdale Airport in an amount not to exceed Twenty-Three Thousand Six Hundred Seventy- Seven Dollars and Forty-Three Cents ($23,677.43). Section 2. The City Manager or designee is hereby authorized to execute such other documents and take such Other actions as necessary to carry out the intent of this Resolution. PASSED AND ADOPTED by the Council of the City of Scottsdale. Arizona, this 9“’ day of June 2026. ATTEST: CITY OF SCOTTSDALE, an Arizona municipal corporation By:. Ben Lane. City Clerk APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY By:. Lisa Borowsky. Mayor ri Luis E. Santaella. City Attorney By: Lydia Tulin, Assistant City Attorney 19181488 Page 1 of 1 Resolution No. 13664 € CITY OF SCOTTSDALE CONSTRUCTION MANAGER AT RISK PRECONSTRUCTION SERVICES CONTRACT PROJECT NO. 26RFSQ058 CONTRACT NO. 2026-073-COS Contract No. 2026-073-COS TABLE OF CONTENTS RECITALS............... .......... .................................;...... ................ ................................. ........ 1 ARTICLE 1 - BASIC PRECONSTRUCTION PHASE SERVICES............................................. 1 ARTICLE 2 - PERIOD OF SERVICES................................................................ ........... 13 ARTICLE 3 - CONTRACT AMOUNT AND PAYMENTS....... ........................ 14 ARTICLE 4 - CITY'S RESPONSIBILITIES................................. ........ ............................16 ARTICLE 5 - CONTRACT CONDITIONS.......................................... ........................ 16 ARTICLE 6 - INSURANCE......... ..... ................................. ...... ........................................... 28 ARTICLE 7 - FEDERAL AND STATE LAW........................................................................... 33 ARTICLE 8 - TERMS AND DEFINITIONS................ ................................................ ..........35 EXHIBIT A - SCOPE OF WORK EXHIBIT B - HOURLY RATE SCHEDULE EXHIBIT C - SUBMITTAL REQUIREMENTS FOR THE GMP EXHIBIT D - PRECONSTRUCTION PROPOSAL Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416V6 CMAR Des (Rev. 1.22.2026) Page i Contract No. 2026-073-COS CITY OF SCOTTSDALE CONSTRUCTION MANAGER AT RISK PRECONSTRUCTION SERVICES CONTRACT PROJECT NO. 26RFSQ058 CONTRACT NO. 2026-073-COS THIS CONTRACT, entered into this. day of. 20_, by the City of Scottsdale, an Arizona municipal corporation, (the “City”) J. Bahicki Construction, Inc., an Arizona corporation (the "Construction Manager at Risk" or “CMAR”). RECITALS A. The Mayor of the City of Scottsdale, Arizona, is authorized by provisions of the City Charter to execute Contracts for professional services and construction services. B. The City intends to construct the Runway 3-21 Pavement Preservation Project, as described in Exhibit A attached, and referred to in this Contract as the “Project,” located at 15000 N. Airport Drive, Scottsdale Arizona, 85260. C. To undertake the design of the Project, the City has entered into a Contract with Mead & Hunt, Inc. a AA/isconsin corporation, who is referred to as the “Design Professional.” D. The City desires to enter into this Contract with the CMAR for preconstruction phase services and CMAR represents that it is qualified and able to provide the required services identified in this Contract. Upon completion of the preconstruction phase services, at the City’s discretion, the City may enter into a separate construction contract with the CMAR for construction phase services. CONTRACT FOR AND IN CONSIDERATION of the parties’ mutual covenants and conditions, it is agreed between the City and the CMAR as follows: ARTICLE 1 - BASIC PRECONSTRUCTION PHASE SERVICES 1.0 GENERAL . A. The CMAR, to further the interests of the City, will perform the services required by, and in accordance with this Contract, to the satisfaction of the Contract Administrator, exercising the degree of care, skill and judgment a professional construction manager performing similar services in Scottsdale, Arizona would exercise at that time, under similar conditions. The CMAR will, at all times, perform the required services consistent with sound and generally accepted construction management and contracting practice and principles. The services being provided under this Contract will not alter any real property owned by the City. B. Initial Program Evaluation. The CMAR will provide an initial written evaluation of the City’s Project with recommendations as to the requirements of the Project and the Project’s budget. The City and the CMAR will identify an acceptable time frame by which the CMAR will provide initial program evaluation. Project Name: AIRPORT RUNWAY 3-21 PAVEMENT PRESERVATION PROJECT Project No: 26RFSQ058 11565416V6 CMAR Des (Rev. 1.22.2026) Page 1 of 40 Contract No. 2026-073-COS G. Project Meetings, The CMAR will attend Project Team meetings which may include, but are not limited to, monthly Project management meetings. Project workshops, special Project meetings, and Construction Documents rolling reviews. D. The CMAR will review and comment on the Design Professional’s design phase services, in a proactive manner and consistent with the intent of the Scope of Work and the most current Drawings and Specifications. The CMAR will promptly notify the City in writing whenever the CMAR discovers errors in any Drawings or Specifications or changes in the Scope of Work requiring an adjustment in the cost estimate. Project Schedule, Guaranteed Maximum Price (GMP) Proposals or in the Contract Time for the Work, to the extent they are established. E. The CMAR, when requested by the City with reasonable notice, will attend, make presentations and participate as may be appropriate, in public or community meetings related to the Project. The CMAR will provide drawings, schedule diagrams, budget charts and other materials describing the Project, when their use is required or appropriate in any public agency meetings. 1.1 CONSTRUCTION MANAGEMENT PLAN A. B. The CMAR will prepare a Construction Management Plan, which includes but is not limited to the CMAR’s professional opinions concerning: (1) Project milestone dates and the Project Schedule, including the broad sequencing of the design and construction of the Project, (2) plans for investigations, if any, to be undertaken to ascertain subsurface conditions and physical conditions of existing physical surface and subsurface facilities and underground utilities, (3) alternate strategies for fast-tracking or phasing the construction, (4) the number of separate subcontracts to be awarded to Subcontractors and Suppliers for the Project construction, (5) any Intergovei-nmerital Contracts (IGA’s), (6) permitting strategy, (7) safety and training programs, (8) construction quality control, (9) a commissioning program, (10) the cost estimate and basis of the model, (11) a matrix summarizing each Project Team member’s responsibilities and roles, and (12) goal compliance strategy. The CMAR will add detail to Its previous version of the Construction Management Plan to keep it current throughout the preconstruction phase, so that the Construction Management Plan is ready for implementation at the start of the construction phase. The update/revisions hriay take into account (a) revisions in Drawings and Specifications; (b) the results of any additional investigatory reports of subsurface conditions, drawings of physical conditions of existing surface and subsurface facilities and documents depicting underground utilities placement and physical condition, whether obtained by the City, Design Professional or the CMAR, (c) unresolved permitting issues, and significant issues, if any, pertaining to the acquisition of land and right of way, (d) the fast-tracking, if any, of the construction, or other chosen construction delivery methods, (e) the requisite number of separate bidding documents to be advertised, (f) the status of the procurement of long-lead time equipment (if any) or materials, arid (g) funding , issues identified by the City. Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416V6 CMAR Des (Rev. 1.22.2026) Page 2 of 40 Contract No. 2026-073-GOS 1.2 PROJECT SCHEDULE A. The fundamental purpose of the “Project Schedule” is to identify, coordinate and record the tasks and activities to be performed by ail of the Project Team members and then for the Project Team to utilize that Deliverable as a basis for managing and monitoring all member’s compliance with the schedule requirements of the Project. Each Project Team member is responsible for its compliance with the Project Schedule requirements. The CMAR will, however, develop and maintain the Project Schedule on behalf of and to be used by the Project Team based on input from the other Project Team members. The Project Schedule is subject to City approval. The Project Schedule will be consistent with the most recent revised/updated Critical Path Method. The Project Schedule will use the Critical Path Method technique, unless required otherwise in writing by the City. The CMAR will use scheduling software to develop the Project Schedule that is acceptable to the City. The Project Schedule will be presented in graphical and tabular reports as agreed upon by the Project Team. If Project Phasing as described below is required, the Project Schedule will indicate milestone dates for the phases once determined. The Project Schedule’s activities will directly correlate with the Schedule of Values specified in Article 1.4(A). B. The CMAR will include and integrate in the Project Schedule the services and activities required of the City, the Design Professional and the CMAR including all construction phase activities based on the input received from the City and the Design Professional. The Project Schedule will detail activities to the extent required to show; (1) the coordination between conceptual design and various design phase documents, (2) separate long-lead procurements, if any, (3) permitting issues, (4) land and right-of-way acquisition, if any, (5) bid packaging strategy and awards to Subcontractors and Suppliers, (6) major stages of . construction, (7) start-up and commissioning, and (8) City’s acceptance of the completed Work. The Project Schedule will include, by example and not limitation, proposed activity sequences and durations for procurement, construction and testing activities, milestone dates for actions and decisions by the Project Team, preparation and processing of Shop Drawings and Samples, delivery of materials or equipment requiring long-lead time procurement (if any), milestone dates for various construction phases, total float for all activities, relationships between the activities, the City’s occupancy requirements showing portions of the Project having occupancy priority, and proposed dates for Substantial Completion and when the Work would be ready for final acceptance. C. The Project Schedule will be updated and maintained by the CMAR throughout this Contract to assure that the schedule will not require major changes at the start of the construction phase to incorporate the CMAR’s plan for the performance of the construction phase Work. The CMAR will provide updates or revisions to the Project Schedule for use by the ProjectTeam, whenever required, but no less often than at the monthly Project Team meetings. The CMAR will include with these submittals a narrative describing its analysis of the progress achieved to-date vs. that planned, any concerns regarding delays or potential delays, and any recommendations regarding mitigating actions. Project Name; Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416V6 CMAR Des (Rev. 1.22.2026) Page 3 of 40 Contract No. 2026-073-COS D. Project Phasing (Optional). At the City's direction the CMAR will review the design and make recommendations for phased construction. If phased construction is considered appropriate and the City and Design Professional approve, the CMAR will review the design and make recommendations regarding the phased issuance of Construction Documents to facilitate phased construction of the Work. The . CMAR will take into consideration factors such as natural and practical lines of work severability, sequencing effectiveness, access and availability constraints, total time for completion, construction market conditions, labor and materials availability, and any other pertinent factors. 1.3 GENERAL DESIGN DOCUMENT REVIEWS A. The CMAR will evaluate periodically the availability of labor, nriaterials/equipment, building systems, cost-sensitive aspects of the design, and other factors that may impact the cost estimate, GMP Proposals or the Project Schedule. B. The CMAR will recommend, with City approval, those additional surface and subsurface investigations that, in its professional opinion, are required to provide the necessary information for the CMAR to construct the Project. C. The CMAR will meet with the Project Team as required to review designs during their development. The CMAR will familiarize itself with the evolving documents through the preconstruction phase. The CMAR will proactively advise the Project Team and make recommendations on factors related to construction costs and concerns pertaining to the feasibility and practicality of any proposed means and methods, selected materials, equipment and building systems and labor and material availability. The CMAR will also advise the Project Team on errors and omissions it has discovered in Drawings and Specifications related to proposed Site improvements, excavation and the foundation as well as other errors and omissions the CMAR has identified with respect to coordination of the Drawings and Specifications. The CMAR will recommend cost-effective alternatives. D. The CMAR will routinely conduct constructability and bidability reviews of the Drawings and Specifications as necessary to satisfy the needs of the Project Team. The reviews will identify discrepancies and inconsistencies in the Construction Documents especially those related to clarity, consistency, and coordination of the Work of Subcontractors and Suppliers as follows; 1. Constructability Reviews. The CMAR will evaluate whether; (a) the Drawings and Specifications are configured to enable efficient construction, (b) design elements are standardized, (c) construction efficiency is properly considered in the Drawings and Specifications, (d) module/preassembly design are prepared to facilitate fabrication, transport and installation, (e) the design promotes accessibility of personnel, material and equipment and facilitates construction under adverse weather conditions, (f) sequences of Work required by or inferable from the Drawings and Specifications are practicable, and (g) the design has taken into consideration, efficiency issues concerning; access and entrance to the Site, lay down and storage of materials, staging of Site facilities, construction parking, and other similar pertinent issues. Project Name; Airport Runway 3-21 Pavement preservation project Project No; 26RFSQ058 11565416V6 CMAR Des (Rey. 1.22.2026) Page 4 of 40 Contract No. 2026-073-COS 2. Bidabilitv Reviews. The CMAR will check cross-references and complementary Drawings and sections within the Specifications, and in general evaluate whether (a) the Drawings and Specifications are sufficiently clear and detailed to minimize ambiguity and to reduce scope interpretation discrepancies, (b) named materials and equipment are commercially available and are performing well or otherwise, in similar installations, (c) specifications include alternatives in the event a requirement cannot be met in the field, and (d) in its professional opinion, the Project is likely to be subject to differing Site conditions. 3. The results of the reviews will be provided to the City in formal, written reports clearly identifying all discovered discrepancies and inconsistencies in the Drawings and Specifications with notations and recommendations made on the Drawings, Specifications and other documents. If requested by the City, the CMAR will meet with the City and Design Professional to discuss any of the CMAR’s findings and review reports, 4. The CMAR’s reviews will be from a contractor's perspective, and though it will serve to reduce the number of Requests for Information (RFIs) and changes during the construction phase, responsibility for the Drawings and Specifications will remain with the Design Professional. E. Notification of Variance or Deficiency. It is the CMAR’s responsibility to assist the Design Professional in ascertaining that, in the CMAR’s professional opinion, the Construction Documents are in accordance with applicable laws, statutes, ordinances, building codes, rules and regulations. If the CMAR recognizes that portions of the Construction Documents are at variance with applicable laws, statutes, ordinances, building codes, rules and regulations, it will promptly notify the Design Professional and the City in writing, describing the apparent variance or deficiency. However, the Design Professional is ultimately responsible for compliance with those laws, statutes, ordinances, building codes, rules and regulations. F. Alternate Systems Evaluations. The Project Team will routinely identify and evaluate using value engineering principles, any alternate systems, approaches, or design changes that have the potential to reduce Project costs while still delivering a quality and functional product. Throughout this Contract and upon the City’s instruction the CMAR will provide value engineering at various stages throughout the Project. The Project Team, with approval by the City, will decide which alternatives will be incorporated into the Project. The Design Professional will have full responsibility for the incorporation of the alternatives into the Drawings and Specifications. The CMAR will include the cost of the alternatives into the cost estimate and any GMP Proposals. 1.4 COST ESTIMATES A. The CMAR will provide a Schedule of Values acceptable to the City including a detailed cost estimate and written review of the documents within fourteen (14) days after the CMAR’s receipt of the documents required for the preconstruction Project Name; Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 1156541 eve CMAR Des (Rev. 1.22.2026) Page 5 of 40 Contract No. 2026-073-COS phase. The Design Professional and the CMAR will reconcile any disagreements on the estimate to arrive at an agreed cost. If no consensus is reached, the City will make the final determination. B. If any estimate submitted to the City exceeds previously accepted estimates or the City’s Project budget, the CMAR will make appropriate recommendations on methods and materials to the City and the Design Professional that he believes will bring the Project back into the Project budget. Major milestones on the Project include 30%, 60%, 90% submittals consistent with the City of Scottsdale's Design Standards and Policies Manual. C. In between these milestone estimates, the CMAR will periodically provide a tracking report, which identifies the upward or downward movements of costs due to value engineering or scope changes. It will be the responsibility of the CMAR to keep the City and the Design Professional informed as to the major trend changes in costs relative to the City’s budget. D. If requested by the City, the CMAR will prepare a preliminary “cash flow” projection based upon historical records of similar type projects to assist the City in the financing process. 1.5 GUARANTEED MAXIMUM PRICE (GMP) A. At the end of the preconstruction phase or at a time determined by the City with reasonable notice, the City will request the CMAR to provide a GMP, or series of GMP’s if the CMAR determines phased construction would be in the City’s best ' interest. The approved form of GMP(s) is stated in Exhibit C. attached and by reference made a part of this Contract. 1. 2. 3. The CMAR guarantees to bring the completion of the construction of the Project within the GMP or the CMAR alone will be required to pay the difference between the actual cost and the GMP. Buy-out savings are any savings of the CMAR’S GMP at the conclusion of the selection of Subcontractors. Buy-out savings may be used during construction by the City as a City Project Contingency. Unused savings will be returned to the City. Any savings realized during construction may be incorporated into the construction of the Project to fund additional scope items. Unused savings will be returned to the City. B. The Cost of the Work (Direct Costs), plus the CMAR Indirect Costs, plus taxes, plus the City’s Project Contingency equals the Total GMP. The GMP is composed of the following actual costs, not-to-exceed cost reimbursable, fixed fee or lump sum amounts defined below: 1. The Cost of the Work (Direct Costs) is a negotiated cost and is a not-to- exceed amount defined by the individual work items and their associated negotiated unit prices as a part of the hard construction work as defined in Project Name: Airport Runway 3-21 Pavement preservation project Project No; 26RFSQ058 11565416V6 CMAR Des (Rev. 1.22:2026) Page 6 of 40 Contract No. 2026-073-COS Article 8. It includes direct labor costs, subcontract costs, costs of materials and equipment incorporated in the completed construction, costs of other materials and equipment, materials testing, and warranty of the work together with self-performed work that the CMAR established in the Sub contractor Selection Plan. The Cost of Work does not include the CMAR’s Indirect Costs. 2. The CMAR’s Indirect Costs include the General Conditions, Payment and Performance Bonds, Insurance, the CMAR Construction Fee and Taxes. a. The General Conditions Costs are a negotiated amount of project supervision and other indirect costs according to construction terms as defined in Article 8. These costs are not reflected in other GMP items. Costs may include, but are not limited to, the following: Project Manager, Superintendent, Full-time General Foremen, workers not included as direct labor costs engaged in support (e g. loading/unloading, clean-up, etc.) and administrative office personnel. Other costs may include: temporary office, building permit and licensing fees, fencing and other facilities, office supplies, office equipment, minor expenses, utilities, vehicles, fuel, sanitary facilities, and telephone services at the site. b. Payment Bonds, Performance Bonds and Insurance are actual costs applied to Cost of Work and General Conditions Costs as detailed in the GMP Proposal. c. The CMAR Construction Fee is a negotiated fixed fee that is proposed by the CMAR for the project as defined in Article 8. It is for management and related services of the CMAR Project. d. Taxes include all sales, use, consumer, and other taxes which are legally enacted when negotiations of the GMP were concluded, whether or not yet effective or merely scheduled to go into effect. Taxes are actual costs and are a not-to-exceed reimbursable amount. The successful CMAR must secure and maintain, during the life of the Contract, a combined State of Arizona and City of Scottsdale Transaction Privilege (sales) Tax Licenses. For information on how to obtain a combined State of Arizona and City of Scottsdale Privilege (Sales) Tax License, please go to the following websites: https://azdor.qov/transaction-privileae-tax/tpt-license/applvina- tpt-license The City’s Project Contingency is defined in Article 8. It,is to be used at the sole discretion of the City to cover any increases in Project costs that result from City directed changes or unforeseen Site conditions. The City’s Project Contingency will be added to the GMP amount provided by the Project name: Airport Runway 3-21 Pavement preservation project PROJECT No: 26RFSQ058 1156541 eve CMAR Des (Rev, 1.22.2026) Page 7 of 40 3. Contract No. 2026-073-COS CMAR, the sum of which will be the full contract price for construction. Taxes will be applied by the CMAR at the time of the City’s Project Contingency is an additional negotiated Construction Fee. The GMP is cumulative. The amount of any GMP amendment will be negotiated separately and will reflect the CMAR^s risk from that point forward in the Project. 1.6 GUARANTEED MAXIMUM PRICE (GMP) PROPOSALS A. The CMAR will present the GMP Proposal(s) for the entire Work (or portions of the . Work) in a format acceptable to the City as set forth in Exhibit C. attached, and by reference made a part of this Contract. The City may request a GMP Proposal for any portion of the Project at any time with reasonable notice during the preconstruction phase. Any GMP Proposals submitted by the CMAR will be based on and be consistent with the current updated/revised cost estimate at the time of the request, the associated estimates for construction costs, and will include ariy clarifications or assumptions upon which the GMP Proposal(s) are based. B. GMP Proposals for the entire Project will be the sum of the maximum Cost of the Work, and also include the CMAR’s Construction Fee, General Conditions Costs, Taxes, Insurance, Bonds, CMAR Indirect Costs, and City’s Project Contingency. C. The CMAR, in preparing any GMP Proposal, will obtain from the Design Professional, six (6) sets of signed, sealed, and dated plans and specifications (including all Addenda). The CMAR will prepare its GMP in accordance with the City’s request for GMP Proposal requirements based on the most current completed plans and s;pecifications at that time. The CMAR will mark the face of each document of each set of plans and specifications upon which its proposed GMP is based. The CMAR will send one set of those documents to the City’s Contract Administrator, keep one set, and return the third set to the Design Professional. D. The CMAR will include an updated/revised Project Schedule with any GMP Proposal(s) that reflects the Scope of Work shown in the current set of design documents upon which the GMP Proposal(s) is based. Any Project Schedule updates/revisions will continue to comply with the requirements of Article1.2. E. If the Construction Services Contract is negotiated as a not-to-exceed amount, all GMP savings resulting from a lower actual Project cost than anticipated by the CMAR will revert to the City. 1.7 GUARANTEED MAXIMUM PRICE (GMP) REVIEW AND APPROVAL A. The CMAR will meet with the City and the Design Professional to review any GMP Proposal(s) and review the written statement of its basis. In the event the City or Design Professional discovers inconsistencies or inaccuracies in the information presented, the CMAR will make adjustments as necessary to the GMP Proposal, its basis, or both. Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416V6 CMAR Des (Rev. 1.22i2026) Page 8 of 40 Contract No. 2026-073-COS B. C. D. Upon receipt of any GMP Proposal from the CMAR, the City may submit the same documents that were used by the CMAR in developing its GMP to an independent third party or to the Design Professional for review and verification. The third party or Design Professional will develop an independent estimate of the Cost of the Work and review the Project Schedule for the associated scope of the GMP Proposals. If the CMAR’s GMP Proposal is greater than that of the independent third party or Design Professional’s estimate, the City may require the CMAR to reconfirm its GMP Proposal. The CMAR will accept the independent third party’s or Design Professional’s estimate for the Cost of Work as part of its GMP Proposal or present a report identifying, explaining and substantiating the differences within seven (7) days of the City’s request. If design changes are required during the review and negotiation of GMP Proposals, the City will authorize and cause the Design Professional to revise the Construction Documents to the extent necessary to reflect the agreed-upon assumptions and clarifications contained in the final approved GMP Proposal. These revised Construction Documents will be furnished to the CMAR. The CMAR will promptly notify the Design Professional and the City in Writing if any revised Construction Documents are inconsistent with the agreed-upon assumptions and clarifications. The CMAR guarantees to complete the Project at a contract price that will not exceed the final approved GMP Proposal amount. The CMAR assumes the responsibility for paying any difference between the proposed and actual Cost of the Work. E. The CMAR may then be requested to, or at its own discretion, submit a revised GMP Proposal for consideration by the City. At that time the City may do one of the following, in its sole discretion; 1. Accept the CMAR original or revised GMP Proposal, if within the City’s budget, without comment. 2. Accept the CMAR original or revised GMP Proposal that exceeds the City’s budget, and indicate in writing to the CMAR that the Project Budget has been increased to fund the differences. 3. Reject the CMAR’s original or revised GMP Proposal in which event, the City may terminate this Contract and elect to not enter into a separate Contract with the CMAR for the construction phase associated with the Scope of Work reflected in the GMP Proposal. 1.8 SUBCONTRACTOR AND MAJOR SUPPLIER SELECTIONS A. The CMAR will select major Subcontractors and major Suppliers, subject to first obtaining the City’s approval. This may occur before or after submission of a GMP Proposal. Major Subcontractors may be selected based on qualifications or a combination of qualifications and price. Subcontractors must not be selected based on price alone. Except as noted below, the selection of major Subcontractors/Suppliers is the responsibility of the CMAR, but the City must Project Name: Airport Runway 3-21 Pavement preservation project Project No; 26RFSQ068 11565416V6 CMAR Des (Rev. 1.22.2026) Page 9 of 40 Contract No. 2026-073-COS B. approve in writing the selection of all Subcontractors. In any case, the CMAR is solely responsible for the performance of the selected Subcontractors/Suppliers. The CMAR will prepare a Subcontractor/Supplier selection plan and submit the plan to the City for approval or the CMAR may use the City’s plan as described in Article 1.8(B) and (C). This Subcontractor selection plan will identify those Subcontractor trades anticipated to be selected by qualifications only as provided in Article 1.8(B) and those Subcontractor trades anticipated to be selected by qualifications and competitive bid as provided in Article 1.8(C). This plan will also identify those Subcontractors that will not be selected through a formalized qualifications-based selection process. The Subcontractor selection plan must be consistent with the selection requirements included in this Contract. Selection bv qualifications only - The City may approve the selection of a Subcontractor(s) or Suppliers(s) based only on their qualifications when the CMAR can demonstrate it is in the best interest of the Project. 1. The CMAR will apply the approved Subcontractor selection plan approved by the City in the evaluation Of the qualifications of a Subcontractor(s) or Supplier(s) and provide the City with its review and recommendation. The selection plan will be the CMAR’s own selection plan approved by the City or the City’s selection plan as provided in this Article 1.8(B). 2. The CMAR will negotiate costs for services/supplies from the Subcontractors/Suppliers under the approved qualifications only method. 3. The CMAR may elect to comply with the following procedures in its selection of Subcontractor(s) or Suppliers(s) based on qualifications only: a. The Request for Qualifications (RFQ) will coritain the best description of the services or material desired; and b. A statement that only unpriced statements of qualifications will be considered; and G. State the requirements for the project, such as drawings and descriptive literature; and d. State the criteria for evaluating the qualifications; and e. A closing date and time for receipt of a statement of qualifications and the location where the statements should be delivered or mailed; and f. A statement that discussions may be held; and g. A statement that only statements of qualifications determined to be acceptable will be considered for award.. Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 115654i6\/6 CMAR Des (Rev. 1.22.2026) Page 10 of 40 7. Contract No. 2026-073-COS 4. The RFQ may be amended after the submission of the statements of qualifications. Any amendment will be distributed only to bidders who submitted statements of qualifications. Those bidders will be permitted to submit new unpriced statements of qualifications or to amend statements already submitted. 5. Statements of Qualifications will not be opened publicly but will be opened in the presence of the CMAR. The contents of unpriced statements of qualifications will not be disclosed to unauthorized persons. 6. Statements of Qualifications will be evaluated solely in accordance with the criteria stated in the RFQ and will be determined to be either acceptable for further consideration or unacceptable. A determination that the statement is unacceptable will be in writing, state the basis of the determination and be retained by the GMAR. The CMAR will notify the bidder of the determination and the bidder will not be given an opportunity to amend its statement of qualifications further. The CMAR may conduct discussions with any bidder who submits an acceptable or potentially acceptable statement of qualifications. During discussions, the CMAR will not disclose any information derived from any other bidder’s statement of qualifications. 8. The CMAR will negotiate costs for services/supplies from the Subcontractor/ Supplier selected under this method. Without first giving written notice to the City, no change in the recommended Subcontractors/ Suppliers will be allowed. C. Selection by qualifications and competitive bid - The CMAR will apply the City’s Subcontractor selection plan stated above if previously approved by the City in the CMAR’s evaluation of the qualifications of Subcontractors/Suppliers by providing the City with its process to prequalify prospective Subcontractors/Suppliers. Selection may not be based on price alone. All Work for major Subcontractors and major Suppliers will then be competitively bid to the prequalified Subcontractors unless a Subcontractor or Supplier was selected in accordance with Article 1.8(B) above. The CMAR may elect to comply with the, following procedures in step 2 of its competitive bid process. 1. The CMAR will develop Subcontractor and Supplier interest, submit the names of a minimum of three (3) qualified Subcontractors or Suppliers for each trade in the Project and solicit bids for the various Work categories. If there are not three (3) qualified Subcontractors/Suppliers available for a specific trade or there are extenuating circumstances, the CMAR may request approval by the City to submit less than three (3) names. Without first giving written notice to the City, no change in the recommended Subcontractors/ Suppliers will be allowed. 2. If the City objects to any nominated SubcOntractor/Supplier or to any self- performed Work for good reason, the CMAR will nominate a substitute Subcontractor/Supplier that is acceptable to the City. Project Name; Airport Runway 3-21 pavement preservation project Project No: 26RFSQ058 11565416\/6 CMAR Des (Rev; 1.22.2026) Page 11 of 40 Contract No. 2026-073-COS 3. The CMAR will distribute Drawings and Specifications, and when appropriate, conduct a pre-bid conference with prospective Subcontractors and Suppliers. The GMAR will then review the price bids submitted by Subcontractors and Suppliers and make its’ selection based on the responsive and responsible bidder with the lowest price. 4. If the CMAR desires to self-perform certain portions of the Work, It will request to be one of the approved Subcontractor bidders for those specific bid packages. The CMAR’s bid will be evaluated in accordance with the process identified in the Invitation for Bids. If events warrant and the City concurs that in order to insure cornpliance with the Project Schedule or cost, the CMAR may self-perform Work without bidding or re-bidding the Work. (For horizontal construction, as defined in A.R.S. § 34-101(16), the CMAR must self-perform not less than 45% of the Work as required by A.R.S. § 34-605(G)(2).) D. If after receipt of sub-bids or after award of Subcontractors and Suppliers, the City objects to any nominated Subcontractor/Supplier or to any self-performed Work for good reason, the CMAR will nominate a substitute Subcontractor or Supplier, preferably if this option is still available, from those who submitted Subcontractor bids for the Work affected. 1. Any higher costs due to the City’s rejection and substitution of a CMAR’s nominated Subcontractor/Supplier or to any self-performed Work will be reflected in the Total GMP. The CMAR’s proposed GMP for the Work or portion of the Work will be correspondingly adjusted to reflect the higher costs. The City at its sole discretion will either- a. Correspondingly increase the CMAR’s Total GMP; or b. Correspondingly decrease the City’s Project Contingency without change to the CMAR’s Total GMP. 2. Any lower costs due to the City’s rejection and substitution of a CMAR’s nominated Subcontractor/Supplier or to any self-performed Work will be added to the City’s Project Contingency. 3. Under no circumstances will the City’s objection or comment on any Subcontractor or Supplier relieve the CMAR of its sole responsibility for control over the methods, means and processes by which the Work is accomplished. 1.9 APPROVED ALTERNATES A. Plans and specifications may contain references to equipment or materials (patented or unpatented) or "approved alternate(s)’’. These references will be regarded as establishing a standard of quality, finish, appearance, performance or as indicating a selection or design based upon compatibility with existing equipment, materials, or details of construction inherent to the Project desigri. Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416V6 CMAR Des. (Rev. 1.22.2026) Page 12 of 40 Contract No. 2026-073-COS These references will not be construed as limiting the selection to a specified item, source,, or design detail. The use of an alternate or substitute item or source as an approved alternate will be permitted, subject to the provisions of this Article 1.9. B. The CMAR and the Contract Administrator will evaluate the information submitted, perform tests when necessary and make comparisons in order to approve or reject the Proposal. If rejected, the CMAR will give notice of rejection to the Bidder submitting the Proposal. C. The CMAR, if the Proposal is accepted, will issue a written addendum to the Invitation for Bid specifying the approved alternates and distribute the modification in the same manner as the original bidding documents. D. The Specifications may reference equipment or materials "or alternate". The reference to "or alternate" will be construed to mean "or approved alternate" in every instance. Use of an alternate or substitute item will be allowed only if approval was received as outlined in this Article. E. Construction Document references to equipment, materials, patented processes by manufacturer, trade name, make, or catalog number may be permitted, unless indicated that no substitutes or alternates may be permitted, subject to the following; 1. The CMAR will certify that the substitution will perform the functions and achieve the results called for by the general design, be similar and of equal substance, and be suited to the same use as that specified. 2. The submittal will state any required changes in the Construction Documents to adapt the design to the proposed substitution. 3. The submittal will contain an itemized estimate of all costs and credits that will result directly or indirectly from the acceptance of the substitution including cost of design, license fees, royalties, and testing. The submittal will also include any adjustment in the applicable Contract Time created by the substitution. Substitutions will only be considered if they do not extend the applicable Contract Time. ARTICLE 2 - PERIOD OF SERVICES 2.0 The CMAR will perform preconstruction and design phase services in this Contract in accordance with the terms and conditions of Article 1 and the most current update/revised Project Schedule. Failure on the part of the CMAR to adhere to the Project Schedule requirements for activities for which it is responsible will be sufficient grounds for termination of this Contract by the City. 2.1 If the date of performance of any obligation or the last day of any time period provided for falls on a Saturday, Sunday, or holiday for the City, then the obligation will be due and owing, and the time period will expire, on the first day next which is not a Saturday, Sunday or legal City holiday. Unless an exception is provided in this Contract, any performance Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 1156541 eve CMAR Des (Rev. 1.22:2026) Page 13 of 40 Contract No. 2026-073-COS required will be timely made if completed no later than 5:00 p.m. (Local time) on the day of performance. ARTICLE 3 - CONTRACT AMOUNT AND PAYMENTS 3.0 CONTRACT AMOUNT Based on the preconstruction phase services fee proposal submitted by the CMAR and accepted by the City (the “Preconstruction Proposal"), attached hereto as Exhibit D and incorporated herein by reference, the City will pay the CMAR the Contact Amount/GMP of $23,667.43 as follows: For the basic services, including but not limited to those described in Article 1, the CMAR will receive a GMP not to exceed; Construction Management Plan (Site Investigations. Phasing Options) $1,939.46 Project Coordination Meeting (Kickoff, 90% review, Onsite Meetings) $2,416.39 Estimates (GMP Cost Estimate, Conceptual Budget) $5,833.83 Design Document Review (VE Analysis, Constructability Review) $3,019.62 GMP Proposal (Clarifications, DBE Compliance, GMP Copies) $7,675.28 Scheduling (Design schedule, construction scheduling) $585.74 Vendor Outreach (pre qualification, vendor solicitation, etc.) $2,207.11 Total Contract Amount, not to exceed: $23,667.43 3.1 PAYMENTS A. Requests for monthly payments by the CMAR will be Subitiitted to the Contract Administrator on the City’s “Payment Request” form and will be accompanied by a progress report, detailed invoices, and receipts, if applicable. Any Payment Request, as defined in Article 8, will include, at a minimum, a narrative description of the tasks accomplished during the billing period, a listing of any Deliverables submitted, and copies of any Subcontractors’ requests for payment, plus similar narratives and listings of Deliverables associated with their Work. Payment for services negotiated as a lump sum will be made in accordance with the percentage of Work completed during the preceding month. Services negotiated as a not-to- exceed fee will be paid in accordance with the work effort expended on that service during the preceding month. B. The fees for the CMAR and any Subcontractors will be based upon rate schedule(s) attached as Exhibit B. C. In the event CMAR incurs expenses related to a delay for which the City is responsible pursuant to A.R.S. §34 609(E), as amended, the CMAR and the City will negotiate an equitable adjustment to the Project Schedule and/or Contract Amount. This provision does not void any other section of this Contract that requires notice of delays, provides for arbitration or other procedures for settlement or provides for liquidated damages. Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416V6 CMAR Des (Rev. 1.22.2026) Page 14 of 40 Contract No. 2026-073-COS D. The GMAR agrees that no charges or claims for costs or damages of any type will be made by it for any delays or hindrances beyond the reasonable control of the City during the progress of any portion of the services specified in this Contract. Any delays or hindrances wiil be solely compensated for by an extension of time for a reasonable period as. may be mutually agreed between the parties. It is agreed, however, that permitting the CMAR to proceed to complete any services, in whole or in part, after the date to which the time of compietion may have been extended, will in no way act as a waiver on the part of the City of any of its legal rights. E. if any service(s) executed by the CMAR is abandoned or suspended in whole or in part, for a period of more than one hundred and eighty (180) days through no fauit of the CMAR, the CMAR is to be paid for the services performed before the abandonment or suspension. If the City suspends the Work for one hundred and eighty-one (181) consecutive days or more, the suspension will be a Contract termination for convenience. ARTICLE 4 - CITY'S RESPONSIBILITIES 4.0 The City, at ho cost to the CMAR, wiil furnish the following information: A. One copy of data the City determines is pertinent to the Work. However, the CMAR wili be responsible for searching the records and requesting information it considers reasonably required for the Project. B. All available data and information pertaining to relevant policies, standards, criteria, studies, etc. C. The name of the City employee or City’s representative who will serve as the Contract Administrator during the term of this Contract is stated in Article 5.12(A). The Contract Administrator has the authority to administer this Contract and will monitor the CMAR’s compliance with all terms and conditions stated in this Contract. All requests for information from or decisions by the City on any aspect of the Work or Deliverables will be directed to the Contract Administrator. The Contract Administrator will provide the CMAR with prompt notice if the Contract Administrator observes any failure on the part of the CMAR to fulfill its contractual obligations, including any default or defect in the Project or non-compliance with the Drawings or Specifications. The Contract Administrator has the authority to authorize Change Orders up to the limits permitted by the City’s Procurement Code, as amended. 4.1 The City additionally will: A. Contract separately with one or more design professionals to provide Design Professional or engineering design services for the Project. The scope of services for the Design Professional will be provided to the CMAR for its information. The CMAR will have no right to limit or restrict any changes of these services that are otherwise mutually acceptable to the City and the Design Professionai. Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416V6 CMAR Des (Rev. 1.22.2026) Page 15 of 40 Contract No. 2026-073-COS B. Supply, without charge, all necessary copies of programs, reports, drawings, and specifications reasonably required by the CMAR except for those copies whose cost has been reimbursed by the City. C. Provide the CMAR with adequate information in its possession or control regarding the City’s requirements for the Project. D. Give prompt written notjce to the CMAR when the City becomes aware of any default or defect in the Project or non-conformance with the Drawings and Specifications. E. Notify the CMAR of changes affecting the budget allocations. 4.2 The City’s Contract Administrator will have authority to approve the Project Budget and Project Schedule, and render decisions and furnish information the Contract Adrhinistrator considers appropriate to the CMAR. ARTICLE 5 - CONTRACT CONDITIONS 5.0 PROJECT DOCUMENTS AND COPYRIGHTS A. City Ownership of Project Documents. All work products (electronically or manually generated) including but not limited to: cost estimates, studies, design analyses, original Mylar drawings. Computer Aided Drafting and Design (CADD) file diskettes, and other related documents or Deliverables which are prepared in the performance of this Contract (collectively referred to as “Project Documents”) are to be and remain the property of the City and are to be delivered to the Contract Administrator before the final payment is made to the CMAR; provided, however, the CMAR is entitled to retain one record copy of all documents. But in the event these Project Documents are altered, modified or adapted without the written consent of the CMAR, which consent the CMAR will not unreasonably withhold, the City agrees to hold the CMAR harmless to the extent permitted by law, from the legal liability arising out of or resulting from the City’s alteration, modification or adaptation of the Project Documents. B. CMAR to Retain Copyrights. The copyrights, patents, trade secrets or other intellectual property rights associated with the ideas, concepts, techniques, inventions, processes or works of authorship pre-existing to this Contract or developed or created by the CMAR, its Subcontractors or personnel, during the course of performing this Contract or arising out of the Project will belong to the CMAR. C. License to City for Reasonable Use. The CMAR grants, and will require its Subcontractors to grant a license to the City, and its agents, employees, and representatives for an indefinite period of time to reasonably use, make copies, and distribute as appropriate the Project Documents, works or Deliverables developed or created for the Project and this Contract. This license will also include the making of derivative works, subject to the hold harmless provisions described above. In the event that the derivative works require the City to alter or modify the Project Documents, then Article 5.13 applies. Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416V6 CMAR Des (Rev. 1.22.2026) Page 16 of 40 Contract No. 2026-073-COS D. Documents to Bear Seal. When applicable and required by state law, the CMAR and its Subcontractors will endorse, by an Arizona professional seal, all plans, works, and Deliverables prepared by them for this Contract, if any. 5.1 COMPLETENESS AND ACCURACY OF CMAR’S WORK The CMAR will be responsible for the completeness and accuracy of its reviews, reports, supporting data, and all other preconstruction phase Deliverables prepared or compiled in accordance with its obligations under this Contract and will at its sole expense correct its Work or Deliverables. The fact that the City has accepted or approved the CMAR’s Work or Deliverables will in no way relieve the CMAR of any of its responsibilities under this Contract, nor does this requirement to correct the Work or Deiiverable constitute a waiver of any claims or damages othenA/ise available by law or Contract to the City. 5.2 ALTERATION IN CHARACTER OF WORK A. In the event an alteration or modification in the character of the Work or Deliverable results in a substantial change in this Contract, materially increasing or decreasing the scope of services, cost of performance, or Project Schedule, the Work or Deliverable will be performed as directed by the City. But before any altered or modified Work begins, a Change Order or Contract Modification will be approved and executed by the City and the CMAR pursuant to the City’s Procurement Code, as,amended. This Change Order or Contract Modification will not be effective until approved by the City. The Contract Administrator has the authority to authorize Change Orders up to the limits permitted by the City’s Procurement Code, as amended. B. Additions to, modifications of, or deletions from the Project provided in this Contract may be made, and the compensation to be paid to the CMAR may accordingly be adjusted by mutual agreement of the contracting parties. C. No claim for extra Work done or materials furnished by the CMAR will be allowed by the City except as provided in this Contract, nor will the CMAR do any Work or furnish any material(s) not covered by this Contract unless the Work or material is first authorized in writing. Work or material(s) furnished by the CMAR without first obtaining written authorization will be at the CMAR’s sole responsibility, cost, and expense, and the CMAR agrees that without first obtaining written authorization, no claim for compensation for the Work or materials furnished will be made. 5.3 DATA CONFIDENTIALITY A. As used in the Contract, data means all information, whether written or verbal, including plans, photographs, studies, investigations, audits, analyses, samples, reports, calculations, internal memos, meeting minutes, data field notes, work product, proposals, correspondence and any other similar documents or information prepared by or obtained by the CMAR or others in the performance of this Contract. Project Name; Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416v6 CMAR Des (Rev. 1.22.2026) Page 17 of 40 \ Contract No. 2026-073-COS B. The parties agree that all data, including originals, images, and reproductions, prepared by, obtained by, or transmitted to the CMAR in connection with the CMAR’s performance of this Contract are confidential and proprietary information belonging to the City. C. Except for Subcontractors, Material and Equipment Suppliers, Consultants or other like parties necessary to complete the Work or as required by the City, the CMAR will not divulge data to any third party without first obtaining the written consent of the City. The CMAR will not use the data for any purposes except to perform the services required under this Contract. These prohibitions will not apply to the following data; 1. Data which is or becomes publicly available other than as a result of a violation of this Contract; 2. Data which was in the CMAR’s possession legally and without restriction before its performance under this Contract; 3. Data which was acquired by the CMAR in its performance under this Contract and which was disclosed to the CMAR by a third party, who to the best of the CMAR’s knowledge and belief, had the legal right to make the disclosure and the CMAR is not otherwise required to hold the data in confidence; or 4. Data which is required to be disclosed by the CMAR by virtue of law, regulation, or court. D. In the event the CMAR is required or requested to disclose data to a third-party, or any other information to which the CMAR became privy as a result of any other contract with the City, the CMAR will first notify the City, as provided in this Article, of the request or demand for the data. The CMAR will timely give the City sufficient facts, so that the City can have a meaningful opportunity to either give its consent or take any action that the City may consider appropriate to protect the data or other information from disclosure. E. The CMAR, unless prohibited by law, will promptly deliver, as stated in this Article, a copy of all data in its possession and control to the City within ten (10) calendar days after completion of services. All data will continue to be subject to the confidentiality provisions of this Contract. F. The CMAR assumes all liability for maintaining the confidentiality of the data in its possession and agrees to compensate the City if any of the provisions of this Article are violated by the CMAR, its employees, agents. Subcontractors, Suppliers, or Subconsultants. Solely for the purposes of seeking injunctive relief, it is agreed that a breach of this Article will be considered to cause irreparable harm that justifies injunctive relief in court. Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416v6 CMAR Des (Rev. 1.22.2026) Page 18 of 40 Contract No. 2026-073-COS 5.4 PROJECT STAFFING A. Before the start of any Work or Deliverable under this Contract, the CMAR will submit to the City an organization chart for the CMAR staff and Subcontractors and detailed resumes of key personnel listed in its response to the City’s Request for Qualifications or subsequent fee proposals (or any revisions), who will be involved in performing the services described in this Contract. Unless otherwise informed, the City acknowledges its acceptance of personnel to perform these services under this Contract. In the event the CMAR desires to change any key personnel from performing the services under this Contract, the CMAR will first submit the qualifications of the proposed substituted personnel to the City for approval. Key personnel will include, but are not limited to, principal-in-charge, contract administrator, superintendent, project director, or those persons specifically identified to perform services of cost estimating, scheduling, value engineering, and procurement planning. The City will approve all key personnel, and approval shall not be unreasonably withheld. B. The CMAR will maintain an adequate number of competent and qualified persons, as determined by the City, to ensure acceptable and timely completion of the scope of services described in this Contract throughout the period of those services. If the City objects, with reasonable cause, to any of the CMAR’s staff, the CMAR wjll take prompt corrective action acceptable to the City and, if required, remove the personnel from the Project and replace or add new personnel acceptable to the City, 5.5 INDEPENDENT CONTRACTOR The CMAR is and will be an independent contractor and not an employee or agent of the City and whatever measure of control the City exercises over the Work or Deliverable will be as to the results of the Work only. No provision in this Contract will give or be construed to give the City the right to direct the CMAR as to the details of accomplishing the Work or Deliverable. CMAR’s performance of the Work of this Contract will be in accordance with all applicable laws and ordinances. Upon request, the CMAR shall provide the required I.R.S. From W-9 which is available from the IRS website at www.IRS.gov under its forms section. 5.6 TERMINATION AND CANCELLATION A. The City has the right to terminate or cancel this Contract or abandon any portion of the Project for which services have not been performed by the CMAR. B. Termination for Convenience. The City reserves the right to terminate this Contract or any part of it for its sole convenience upon written notice given pursuant to this Contract. In the event of termination, the CMAR will immediately stop all Work and will immediately cause any of its Suppliers and Subcontractors to cease Work. Upon termination, the CMAR will deliver to the City all drawings, special provisions, field survey notes, reports, and estimates, entirely or partially completed, in any format, including but not limited to written or electronic media, and other Work and Deliverables entirely or partially completed, together with all unused materials supplied by the City. The CMAR will appraise the Work completed and submit an Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416V6 CMAR Des (Rev. 1.22.2026) Page 19 of 40 Contract No. 2026-073-COS C. appraisal to the City for evaluation. The City will have the right to inspect the CMAR's Work or Deliverables to appraise the Work completed. As compensation in full for services performed to the date of the termination, the CMAR will receive its fee for the percentage of services actually completed. This fee will be in the amount to be mutually agreed upon by the CMAR and the City, based on the agreed Scope of Work. If there is no mutual agreement, the Contract Administrator will determine the percentage of completion of each task detailed in the Scope of Work and the CMAR’s compensation will be based upon this determination. The City will make this final payment within sixty (60) days after the CMAR has delivered the last of the partially completed items. The CMAR will not be paid for any Work done after receipt of the notice of termination, nor for any costs incurred by the CMAR’s Suppliers or Subcontractors, which the CMAR could reasonably have avoided. Cancellation for Cause. The City may also cancel this Contract or any part of it by first giving seven (7) days written notice for cause in the event of any default by the CMAR, or if the CMAR fails to comply with any of the terms and conditions of this Contract. Unsatisfactory performance despite a reasonable opportunity to cure, as judged by the Contract Administrator, and failure to provide the City, upon request, with adequate assurances of future performance will all be causes allowing the City to cancel this Contract for cause. In the event of cancellation for cause, the CMAR will be entitled to amounts due and owing under this Contract for Work performed through the date of termination, but will also be liable to the City for any and all damages available under this Contract sustained by reason of the default which gave rise to the cancellation. In the event the CMAR is in violation of any applicable Federal, State, County or City law, regulation or ordinance, the City may cancel this Contract immediately upon giving notice and an opportunity to cure to the CMAR. In the event the City cancels this Contract or any part of the services contracted for, the City will notify the CMAR in writing, and immediately upon receiving this notice, the CMAR will discontinue advancing the Work under this Contract and proceed to close all operations, and the expenditure, if any, of costs resulting from the abandonment or cancellation. Upon termination, or cancellation or abandonment, and with the exception of one record copy the CMAR may retain, the CMAR will deliver to the City all drawings, special provisions, field survey notes, reports, and estimates, entirely or partially completed, in any format, including but not limited to written or electronic media, together with all unused materials supplied by the City. Use of incomplete data will be at the City's sole responsibility. If through any cause, the CMAR fails to fulfill in a timely and proper manner its obligations under this Contract, or if the CMAR violates any of the covenants. Contracts, or stipulations of this Contract, the City may withhold any payments to the CMAR for the purpose of setoff until the exact amount of damages due the City from the CMAR is determined by the parties or by a court of competent jurisdiction. The City and the CMAR agree to the full performance of the covenants contained in this Contract, except that the City reserves the right, at its discretion and without cause, to terminate or abandon any or all services provided for in this Contract, or Project Name; Airport Runway 3-21 Pavement preservation project Project No; 26RFSQ058 11565416v6 CMAR Des (Rev. 1.22.2026) Page 20 of 40 Contract No. 2026-073-COS abandon any portion of the Project for which services have been performed by the CMAR. 5.7 D. The CMAR, upon termination, canceilation, or abandonment, will promptly deliver to the City ail reports; estimates and other Work or Deliverables entirely or partially completed, together with all unused materials supplied by the City. E. The CMAR will appraise the Work completed and submit an appraisal to the City for evaluation. The City will have the right to inspect the CMAR’s Work or Deliverables to appraise the Work completed. F. The CMAR will receive compensation in full for services satisfactorily performed to the date of termination or cancellation. The fee will be paid in accordance with Article 3.1 of this Contract and will be an amount mutually agreed upon by the CMAR and the City. If there is no mutual agreement, the final determination will be made in accordance with Article 5.8. In no event will the fee exceed that stated in Article 3.0, except a modified pursuant to this Contract. The City will make the final payment within sixty (60) days after the CMAR has delivered the last Of the partially or othenwise completed work items and the final fee has been agreed upon. G. If the City improperly cancels this Contract for cause, the cancellation for cause will be converted to a termination for convenience in accordance with the provisions of Article 5.6(B). FUNDS APPROPRIATION 5.8 If the City Council does not appropriate funds to continue this Contract and pay for Contract charges, the City may terminate this Contract at the end of the current fiscal period. The City agrees to give written notice to the CMAR at least thirty (30) days before the end of its current fiscal period and will pay the CMAR for all approved charges incurred through the end of the period. DISPUTES 5.9 In any unresolved dispute arising out of an interpretation of this Contract or the duties required under this Contract, the final determination at the administrative level will be made by the Contract Administrator. WITHHOLDING PAYMENT The City, in compliance with Title 34 of the Arizona Revised Statutes, reserves the right to withhold funds from the City’s progress payments up to the amount equal to the claims the City may have against the CMAR, until such time as a settlement on those claims has been reached. 5.10 RECORDS/AUDIT A. Records of the CMAR’s direct personnel payroll, reimbursable expenses related to this Project and records of accounts between the City and the CMAR will be Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416V6 CMAR Des (Rey. 1.22.2026) Page 21 of 40 Contract No. 2026-073-COS B. C. kept on a generally recognized accounting basis and will be available for three (3) years after completion of the Project. From the Effective Date of this Contract and until three (3) years after the date of final payment by the City to the CMAR, The City, its authorized representative, or the appropriate federal agency, reserve the right to audit the CMAR’s records to verify the accuracy and appropriateness of all pricing data, including data used to negotiate this Contract and any Change Orders. The City reserves the right to decrease the Contract Amount or payments made on this Contract if, upon audit of the CMAR’s records, the audit discloses the CMAR has provided false, misleading, or inaccurate cost and pricing data. If an audit in accordance with this Article, discloses overcharges, of any nature, by the CMAR to the City in excess of one percent (1%) of the total contract billings, the actual cost of the City’s audit will be reimbursed to the City by the CMAR. Any adjustments or payments which must be made as a result of any audit or inspection of the CMAR’s invoices or records will be made within a reasonable amount of time (not to exceed 90 days) from presentation of the City’s findings to the CMAR. The CMAR will include a provision similar to this Article 5.10 in all of its Contracts with Subconsultants, Subcontractors, and Suppliers providing services under this Contract to ensure the City, its authorized representative, or the appropriate federal agency, has access to the records of its Subconsultants, Subcontractors, and Suppliers to verify the accuracy of cost and pricing data. The City reserves the right to decrease the Contract Amount or payments made on this Contract if the above provision is not included in Subconsultant, Subcontractor, and Supplier contracts and one or more of those parties do not allow the City to audit their records to verify the accuracy and appropriateness of pricing data. This audit provision includes the right to inspect personnel records as required by Article 7. 5.11 INDEMNIFICATION To the fullest extent permitted by law, the CMAR, its successors, assigns and guarantors, up the assertion of a claim, will defend, indemnify and hold harmless the City of Scottsdale, its agents, representatives, officers, directors, officials and employees from and against all allegations, demands, proceedings, suits, actions, claims, damages, losses, expenses, including but not limited to, attorney fees, court costs, and the cost of appellate proceedings, and all claim adjusting and handling expense, investigation and litigation, for bodily injury or personal injury (including death), or loss or damage to tangible or intangible property caused, or alleged to be caused, in whole or in part, related to, arising from or out of, or resulting from any negligence, recklessness, or intentional wrongful conduct to the extent caused by the CMAR or any of its owners, officers, directors, agents, employees performing work or services under this Contract, including but not limited to, any Subcontractor or anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable and any injury or damages by any of the CMAR employees. This indemnity includes any claim or amount arising out of, or recovered under, the Worker’s Compensation Law or arising out of the failure of the CMAR to conform to any federal, state, or local law, statute, ordinance, rule, regulation, or court decree. It is the specific intention of the parties that the City shall, in all instances, except Project Name; Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416V6 CMAR Des (Rev. 1.22.2026) Page 22 of 40 Contract No. 2026-073-COS for Claims arising solely from the negligent or willful acts or omissions of the City, be indemnified by the CMAR from and against any and all claims. It is agreed that the CMAR will be responsible for primary investigation, defense, and judgment costs where this indemnification is applicable. In consideration of the award of this contract, the CMAR agrees to waive all rights of subrogation against the City, its officers, agents, and employees for losses arising from the work performed by the CMAR for the City. Insurance provisions in this Contract are separate and independent from the indemnity provisions of this Section and shall not be construed in any way to limit the scope and magnitude of the indemnity provisions. Nothing in this paragraph shall limit the responsibility of the CMAR’s insurer to pay the City for valid claims that are covered by the CMAR’s insurance policy. The indemnity provisiohs of this Section shall not be construed in any way to limit the scope and magnitude and applicability of the insurance provisions. 5.12 NOTICES A. All notices or demands required by this Contract must be given to the other party in writing, delivered by hand or by registered or certified mail at the addresses stated below, or to any other address the parties may substitute by giving written notice as required by this section. To City: Copy to: City of Scottsdale Purchasing Department 9191 E. San Salvador Scottsdale, Arizona 85258 To CMAR: City of Scottsdale Matthew Johnson, Contract Administrator 15000 N Airport Drive, Suite #100 Scottsdale, Arizona 85260 To Design Professional: J. Banicki Construction, Inc. 4720 E. Cotton Gin Loop Phoenix, Arizona 85040 Mead & Hunt, Inc. 8800 E. Raintree Dr., Ste 285 Scottsdale. AZ 85260______ B. Notice by facsimile or electronic (e-mail) wijl not be considered adequate notice as required in this Contract. 5.13 INTELLECTUAL PROPERTY A. The CMAR will pay all royalties and license fees associated with its performance of services under this Contract. B. The CMAR will defend any action or proceeding brought against the City based on any claim that the Work, or any part of it, or the operation or use of the Work or any part of it, constitutes infringement of any United States patent or copyright, issued now or at some later date.. The City will give prompt written notice to the CMAR Of any action or proceeding and will reasonably provide authority. Project Name: Airport Runvvay 3-21 Pavement preservation project Project No:,26RFSQ058 1156541 eve CMAR Des (Rev. 1.22.2026) Page 23 of 40 Contract No. 2026-073-COS C. information and assistance in the defense of the action. The CMAR will defend, indemnify and hold harmless the City from and against all damages, expenses, losses, royalties, profits and costs, including but not limited to attorneys’ fees and expenses awarded against the City or the CMAR in any action or proceeding. The CMAR agrees to keep the City informed of ail developments in the defense of the actions. The City may be represented by, and actively participate through its own counsel in any suit or proceedihgs if it so desires. If the City is enjoined from the Operation or use of the Work, or any part of the Work, as the result of any patent or copyright suit, claim, or proceeding, the CMAR will at its sole expense take reasonable steps to procure the right to operate or use the Work. If the CMAR cannot procure this right within a reasonable time, the CMAR wili promptly, at the CMAR’s option and at the CMAR’s expense, (a) modify the Work so as to avoid infringement of any patent or copyright or (b) replace the Work with Work that does not infringe or vioiate any patent or copyright. Articles 5.13(B) and 5.13(C) above will not be applicable to the extent any suit, claim or proceeding based on infringement or violation of a patent or copyright (a) relating solely to a particular process or product of a particular manufacturer specified by the City and not offered or recommended by the CMAR to the City or (b) arising from modifications to the Work by the City or its agents after acceptance of the Work, or (c) relating to the copyrights of any specification, drawing, or any Design documents provided by the City, the Design Professional, any Consultant retained by the City, or by a Subcontractor or Supplier. E. The obligations stated in this Article 5.13 will constitute the soie Contract between the parties relating to liability for infringement or violation of any paterit or copyright. 5.14 CONFLICT OF INTEREST D. A. To evaluate and avoid potential conflicts of interest, the CMAR Will provide written notice to the City, as stated in this Article, of any Work or services performed by the CMAR for third parties that may involve or be associated with any real property or personal property owned or leased by the City. This notice will be given seven (7) business days before the start of the Project by the CmAR for a third-party or seven (7) business days before an adverse action as defined below. Written notice and disclosure will be sent to the Contract Administrator identified in Article 5.12(A). B. Actions that are considered to be adverse to the City under this Contract include but are not limited to: 1. Using data as defined in this Contract acquired in connection with this Contract to assist a third party in pursuing administrative or judicial action against the City; 2. _ Testifying or providing evidence on behalf of any person in connection with an administrative or judicial action against the City; and Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416v6 CMAR Des (Rev. 1.22.2026) Page 24 of 40 Contract No. 2026-073-COS 3. Using data to produce income for the CMAR or its employees independently of performing the services under this Contract, without first obtaining the written consent of the City. C. The CMAR represents that except for those persons, entities and projects identified to the City, the services to be performed by the CMAR under this Contract are not expected to create an interest with any person, entity or third-party project that is or may be adverse to the interests of the City. D. The CMAR’s failure to provide a written notice and disclosure of the information as stated in this Article on Conflicts of Interest Will constitute a material breach of this Contract. E. City’s Right of Cancellation. Pursuant to A.R.S. § 38-511, as amended, the City may cancel any contract or agreement, without penalty or obligation, if any person significantly involved in initiating, negotiating, securing, drafting, or creating the contract on behalf of the City’s departments or agencies is, at any time while the contract or any extension of the contract is in effect, an employee of any other party to the contract in any capacity or a contractor to any other party to the contract with respect to the contract’s subject matter. The cancellation will be effective when all other parties to the contract receive the City’s written notice unless the notice specifies a later time. 5.15 CONTRACTOR'S LICENSE Before any award of this Contract, the CMAR must provide to the City’s Capital Project Management Office, its Contractor’s License Classification and number and its Federal Tax I.D. number and Federal W-9 Form. 5.16 SUCCESSORS AND ASSIGNS This Contract will extend to and be binding upon the CMAR, its successors and assigns, including any individual, company, partnership, or other entity with or into which the CMAR will merge, consolidate, or be liquidated, or any person, corporation, partnership, or other entity to which the CMAR will sell its assets. Except that services covered by this Contract may not be assigned or sublet in whole or in part without first obtaining the written consent of the Purchasing Director and Contract Administrator. 5.17 FORCE MAJEURE Neither party will be responsible for delays or failures in performance resulting from acts beyond their control. These acts include, but are not limited to, acts of God, riots, acts of war, epidemics, labor disputes not arising out of the actions of the CMAR, governmental regulations imposed after the fact, fire, communication line failures. Or jaoWer failures. 5.18 TAXES AND INDEMNIFICATION The fee listed in this Contract includes any and all taxes applicable to the activities under this Contract. The City will have no obligation to pay additional amounts for taxes of any type. CMAR, its Subcontractors, Subconsultants and Suppliers, shall pay all Federal, Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 1156541 eve CMAR Des (Rev; 1:22.2026) Page 25 of 40 Contract No. 2026-073-COS state and local taxes applicable to its operation and any persons empioyed by the CMAR, its Subcontractors, Subconsultants and Suppliers, except as. may be otherwise provided in this Contract. The CMAR shall, and also require its Subcontractors, Subconsultants and Suppliers to hold the City harmless from any responsibility for taxes, damages and interest, if applicable, contributions required under Federal, and/or state and local laws and regulations and any other costs including transaction privilege taxes, unemployment compensation insurance. Social Security and Worker’s Compensation. 5.19 NON-WAIVER PROVISION The failure of either party to enforce any of the provisions of this Contract or to require performance by the other party of any of the provisions of this Contract will not be construed to be a waiver of these provisions, nor will it affect the validity of this Contract or any part of it, or the right of either party to enforce each and every provision. 5.20 GOVERNING LAW AND VENUE This Contract will be considered to be made under and will be construed in accordance with and governed by the laws of the State of Arizona, without regard to the conflicts or choice of law provisions. An action to enforce any provision of this Contract or to obtain any remedy will be brought in the Superior Court, Maricopa County, Arizona. Such action must be fiied, tried and remain in this Court for any and all proceedings. For this purpose, each party expressly and irrevocably consents to the jurisdiction and venue of that Court and waives the right to have such action removed to Federal District Court. 5.21 SURVIVAL All warranties, representations and indemnifications by the CMAR will survive the completion or termination of this Contract. 5.22 MODIFICATION The Contract Documents may not be changed, altered, or amended in any way except as consistent with the City of Scottsdale Procurement Code, as amended. 5.23 SEVERABILITY If any provision of this Contract or its application to any person or circumstance is invalid, illegal or unenforceable to any extent, the remainder of the Contract and the application of the Contract will not be affected and will be enforceable to the fullest extent permitted by law. In accordance with the provisions of A.R.S. § 41-194.01, should the Attorney General give notice to the City that any provisions of this Contract violates state law or the Arizona Constitution, or that it may violate a state statute or the Arizona Constitution, and the Attorney General submits the offending provision to the Arizona Supreme Court, the offending provision(s) shall be immediately severed and struck from the Contract and the City and the CMAR shail, within ten (10) days after such notice, negotiate in good faith to resolve any issues related to the severed provision(s). Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416v6 CMAR Des (Rev. 1.22.2026) Page 26 of 40 Contract No. 2026-073-COS 5.24 ENTIRE AGREEMENT The Contract Documents form the entire Contract between the City and Contractor. No oral representations or other Contracts have been made by the parties except as specifically stated in the Contract Documents. 5.25 TIME IS OF THE ESSENCE Time of each of the terms, covenants, and conditions of this Contract is expressly made of the essence. 5.26 THIRD PARTY BENEFICIARY All duties and responsibilities undertaken in compliance with this Contract are for the sole and exclusive benefit of the City and the CMAR and not for the benefit of any other party. In no event will any contractual relationship be created or be construed to be created as between any third-party and the City as a result of this Contract. 5.27 COOPERATION AND FURTHER DOCUMENTATION The CMAR agrees to provide the City any other properly executed documents as may be reasonably requested by the City to implement the intent of this Contract. 5.28 CONFLICT IN LANGUAGE The performance of all services. Work or Deliverables pursuant to this Contract will conform to, all applicable City of Scottsdale codes, ordinances and requirements as outlined In this Contract and consistent with the Scope of Work described herein. If there , is a conflict in interpretation between provisions in this Contract and any Exhibits, the provisions in this Contract will prevail. 5.29 ATTORNEY’S FEES In the event either party brings any action for any relief, declaratory or otherwise, arising out of this Contract, or on account of any breach of default, the prevailing party will be entitled to receive from the other party reasonable attorney’s fees and reasonable costs and expenses, determined by the court sitting without a jury, which will be considered to have accrued on the commencement of the action and will be enforceable whether or not the action is prosecuted to judgment. 5.30 HEADINGS The headings used in this Contract, or any other Contract Documents, are for ease of reference only and will not in any way be construed to limit or alter the meaning of any provision. 5.31 COOPERATIVE USE OF CONTRACT In addition to the City of Scottsdale, this Contract may be extended for use by other rnunicipalities, government agencies, and governing bodies, including the Arizona Board Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416\/6 CMAR Des (Rev. 1.22.2026) Page 27 of 40 Contract No. 2026-073-GOS of Regents, and political subdivisions of this State. Any such usage by other entities must be in accord with the ordinances, charter, and/or rules and regulations of the respective entity and the approval of the CMAR. ARTICLE 6 - INSURANCE 6.0 INSURANCE REQUIREMENTS A. Concurrently with the execution of this Contract, the CMAR must furnish the City a standard insurance industry ACORD form. The ACORD form must be issued by an insurance company authorized to transact business in the State of Arizona, or one that is named on the List of Qualified Unauthorized Insurers maintained by the Arizona Department of Insurance. B. The CMAR, Subcontractors and Subconsultants must procure and maintain until all of their obligations have been discharged, including any warranty periods under this Contract are satisfied, insurance against claims for injury to persons or damage to property, which may arise from or in connection with the performance of the Work by the CMAR, his agents, representatives, , employees, or Subcontractors. C. The insurance requirements are minimum requirements for this Contract and in no way limit the indemnity covenants contained in this Contract. D. The City in no way warrants that the minimum limits contained in this Contract are sufficient to protect the CMAR from liabilities that might arise out of the performance of the seh/ices contracted for under this Contract by the CMAR, his agents, representatives, employees, Subcontractors or Subconsultants and the CMAR is free to purchase any additional insurance as may be determined necessary. The City will not pay for higher limits, but if the CMAR pays for insurance with higher limits, the CMAR will name the City as an additional insured on any of this insurance. E. Claims Made. In the event any insurance policies required by this Contract are written on a “claims made” basis, coverage shall continue uninterrupted throughout the term of this Contract by keeping coverage in force using the Effective Date of this Contract as the retroactive date on all “claims made” policies. The retroactive date for exclusion of claims must be on or before the Effective Date of this Contract, and can never be after the Effective Date of this Contract. Upon completion or termination of this Contract, the “claims made” coverage shall be extended for an additional three (3) years using the original retroactive date, either through purchasing an extended reporting option; or by continued renewal of the original insurance policies. Submission of annual Certificates of Insurance, citing the applicable coverages and provisions specified herein, shall continue for three (3) years past the completion or termination of this Contract. F. Deductibles and Self-Insured Retentions. The policies stated in this Article may provide coverage which contains deductibles or self-insured retention amounts. Any deductibles or self-insured retention are not applicable to the policy limits provided to the City. The CMAR is solely responsible for any deductible or self- Project Name; Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 1156541 eve CMAR Des (Rev. 1.22.2026) Page 28 of 40 Contract No. 2026-073-COS insured retention amount. The City, at its option, may require the CMAR to secure payment of any deductible or self-insured retention by a surety bond or irrevocable and unconditional Letter of Credit. Any self-insured retentions and deductibles must be declared to and approved by the City. If not approved, the City may require that the insurer reduce or eliminate any self-insured retentions with respect to the City, its officers, officials, agents, employees, and volunteers. 6.1 MINIMUM SCOPE AND LIMITS OF INSURANCE The CMAR must provide coverage at least as broad and with limits of liability not less than those stated below. A. Commercial General Liability-Occurrence Form General Aggregate Products-Completed Operations Aggregate Personal & Advertising Injury Each Occurrence Fire Damage (Any ohe fire) Medical Expense (Any one person) $2,000,000 $2,000,000 $2,000,000 $2,000,000 $100,000 Optional CMAR must maintain “occurrence” form Commercial General Liability insurance with a limit of not less than $2,000,000 for each occurrence, $2,000,000 Products and Completed Operations Annual Aggregate, and a $2,000,000 operations, independent contractors, products completed operations, personal injury arid advertising injury. If any Excess insurance is utilized to fulfill the requirements of this paragraph, the Excess insurance must be “follow form” equal or broader in coverage scope than Underlying insurance. B. Automobile Liabilitv-Anv Auto or Owned. Hired and Non-Owned Vehicles C. Combined Single Limit Per Accident For Bodily Injury and Property Damage $1,000,000 CMAR must maintain Business/Automobile Liability insurance with a limit of $1,000,000 each accident on CMAR owned, hired, and non-owned vehicles assigned to or used in the performance of the CMAR’s work or services under this Contract. If any Excess insurance is utilized to fulfill the requirements of this paragraph, the Excess insurance must be “follow form” equal or broader in coverage scope than underlying insurance. Workers’ Compensation and Employers Liability Workers’ Compensation Employers Liability: Each Accident Disease - Each Employee Disease - Policy Limit Statutory $500,000 $500,000 $1,000,000 CMAR must maintain Workers Compensation insurance to cover obligations imposed by federal and state statutes having jurisdiction of CMAR employees Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416v6 CMAR Des (Rev. 1.22:2026) Page 29 of 40 Contract No. 2026-073-COS D. engaged in the perfornriance of work or services under this Contract and must also maintain Employers’ Liability insurance of not less than $500,000 for each accident, $500,000 disease for each employee and $1,000,000 disease policy limit. The insurer must agree to waive all rights of subrogation against the City, its officers, officials, agents, employees, and volunteers for losses arising from Work performed by the CMAR for the City. coverage Terms and Required Endorsements 1. The Commercial General Liability and Automobile Liability policies are to contain, or be endorsed to contain, the following provisions: The City,, its officers, officials, agents, and employees are to be named as additional insureds with respect to liability arising out of activities performed by, or on behalf of, the CMAR including the City's general supervision of CMAR; products and completed operations of CMAR; and automobiles owned, leased, hired, or borrowed by CMAR. 2. Except for Contractors Professional Liability and Workers Compensation insurance, for all insurance policies required under this Contract, the City, its officers, officials, agents, and employees must be additional insureds to the full limits of liability purchased by the CMAR even if those limits of liability are in excess of those required by this Contract. 3. Except for Contractors Professional Liability and Workers Compensation insurance, all insurance policies required under this Contract, including any excess insurance policies, must be primary insurance with respect to the City, its officers, officials, agents, and employees. Any insurance or self- insurance maintained by the City, its officers, officials, agents, and employees must be in excess of the coverage provided by the CMAR and must not contribute to it. 4. For all insurance policies required under this Contract, insurance coverage must 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. 5. For all insurance policies required under this Contract, insurance coverage must not be limited to the liability assumed under the indemnification provisions of this Contract. 6. All insurance policies required under this Contract must contain a waiver of subrogation against the City, its officers, officials, agents, and employees, for losses arising from Work performed by the CMAR for the City. 7. For all insurance policies required under this Contract, if the CMAR receives notice that any of the required policies of insurance are materially reduced or cancelled, it will be CMAR’s responsibility to provide prompt notice to the Contract Adrtiinistrator for the City, unless such coverage is immediately replaced with similar policies. Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416\/6 CMAR Des (Rev. 1.22.2026) Page 30 of 40 Contract No. 2026-073.GO.S 8. Unless CMAR’s Subconsultants and Subcontractors can provide the same level of coverage as detailed in this Article 6;1 and name the City and CMAR as Additional Insureds, GMAR’s certificates must include all Subcontractors and Subconsultants as insureds under its policies or CMAR must nriaintain separate certificates and endorsements for each Subcontractor and Subconsultant. All coverages for Subcontractors and Subconsultants must be in the amounts shown in this Article 6.1, except for the General Liability Each Occurrence limit, which shall be $1,000,000. Certificates must contain a provision that the insurance will hot be canceled or materially altered without at least thirty (30) days advance notice to the City. 9. The CMAR, its successors or assigns, is required to maintain Commercial General Liability insurance as specified in this Contract for a minimum period of three (3) years following completion and acceptance of the Work. The CMAR must submit Certificates of Insurance evidencing the Commercial General Liability insurance during this three (3) year period containing all the insurance requirements stated in this Contract including naming the City of Scottsdale, its agents, representatives, officers, directors, officials and employees as Additional Insured as required. 10. The Commercial General Liability policy will be at least as broad as the Insurance Service Office, Inc.’s GG 0 0 01 07 98. 11. The CMAR’s Insurance rriust contain broad form contractual liability coverage and must not exclude liability arising out of explosion, collapse, or underground property damage hazards (“XCU”) coverage. 6.2 OTHER INSURANCE REQUIREMENTS The policies are to contain, or be endorsed to contain, the following provisions: A. Contractors Professional Liability. The CMAR must carry Contractors Professional Liability insurance to cover the residual, contingent, and passive design exposures of the CMAR. B. Contractors Professional Limits of Liability. The CMAR must carry limits of $1,000,000 each Project and $2,000,000 in the Aggregate under a stand-alone policy or included by endorsement under the Commercial General Liability policy. The CMAR, its successors:and or assigns, is required to maintain this Professional Liability insurance as specified in this Contract for a minimum period of three (3) years following completion and acceptance of the Work. Certificates of Insurance citing that applicable coverage is in force and contains the provisions required by this Contract must be submitted for the three (3) year period. In the event the Professional Liability insurance policy is written on a “c|airris made” basis, coverage will extend for three (3) years past completion and acceptance of the work or services, and the CMAR, orthe Design Professional will submit Certificates of Insurance as evidence the required coverage is in effect. The Design Professional must annually submit Certificates of Insurance citing that the applicable coverage is in force and contains the required provisions for a 3 year Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416v6 CMAR Des (Rev. 1.22.2026) Page 31 of 40 Contract No. 2026-073-COS period. If there is no Professional Liability work or service as a part of this Contract, the City will waive the Professional Liability insurance requirement in writing. 6.3 NOTICE OF CANCELLATION If the CMAR receives notice that any of the required policies of insurance are materially reduced with respect to the minimum limits required under this Contract. It will be CMAR’s responsibility to provide prompt notice to the City’s Contract Administrator, unless such coverage is immediately replaced with similar policies. Each insurance policy required by the insurance provisions of this Contract must provide the required coverage and must not be suspended, voided, canceled by either party, except after first giving thirty (30) days written notice, by certified mail, return receipt requested to: Matthew Johnson Aviation Department 15000 N. Airport Drive, Suite #100 Scottsdale, Arizona 85260 6.4 ACCEPTABILITY OF INSURERS Insurance is to be placed with insurers properly licensed or approved unlicensed companies in the State of Arizona and with an A. M. Best’s rating of no less than B++6. The City in no way warrants that the above required minimum insurer rating is sufficient to protect the CMAR from potential insurer insolvency. Failure to maintain insurance as required may result in termination of this Contract at the City’s sole discretion. 6.5 VERIFICATION OF COVERAGE A. The CMAR must furnish the City Certificates of Insurance (ACORD form or equivalent approved by the City) and with original endorsements effecting coverage as required by this Contract. The certificates for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. Any policy endorsements that restrict or limit coverages must be clearly noted on the Certificate of Insurance. B. All certificates and endorsements are to be received and approved by the City before the Project commences, except for Builder’s Risk-Installation Insurance. Each insurance policy required by this Contract must be in effect on or before the earlier of the start the Project or the signing of this Contract, except for Builder’s Risk-Installation Insurance which, if required by the City, must be in effect before the start of Work and remain in effect for the duration of the Project. Failure to maintain the insurance policies as required by this Contract or to provide evidence of renewal is a material breach of contract. C. All Certificates of Insurance required by this Contract must be sent directly to the City of Scottsdale, Capital Project Management. The Project number and Project description must be included on the Certificates of Insurance. The City reserves the right to require complete, certified copies of all insurance policies required by this Contract, at any time. Failure to provide a Certificate of Insurance with the appropriate verbiage will result in rejection of CMAR’s Certificate and Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416V6 CMAR Des (Rev. 1.22.2026) Page 32 of 40 Contract No. 2026-073-COS delay in contract execution. Additional Certificates of Insurance submitted without referencing a Contract number will be subject to rejection and returned or discarded. 6.6 APPROVAL Any variation from the requirements in this Article 6 must be approved by the City’s Risk Management Division, whose decision yvill be final. Said amendment will not require a formal contract modification but may be made by administrative action. ARTICLE 7 - FEDERAL AND STATE LAW 7.0 COMPLIANCE WITH FEDERAL, STATE, AND LOCAL LAWS The CMAR understands and acknowledges the applicability to it of the American with Disabilities Act, the Immigration Reform and Control Act of 1986, the Drug Free Workplace Act of 1989, Fair Labor Standards Act, Age Discrimination in Employment Act, Family and Medical Leave Act, National Labor Relations Act, Occupational Safety and Health Act, and other local, state or federal law governing CMAR’s labor and employment practices. CMAR agrees to comply with these laws in performing this Contract and to permit the City to verify compliance. CMAR further agrees that any violation of provision on the part of CMAR, its employees, agents or assigns will constitute a material breach of this Contract. CMAR will also comply with A.R.S. §34-301, “Employment of Aliens on Public Works Prohibited,” and A.R.S. §34-302, “Residence Requirements for Employees,” as amended. CMAR will include the terms of this provision in all contracts and subcontracts for Work performed under this Contract, including Supervision and oversight. Under the provisions of A.R.S. §41-4401, the CMAR warrants to the City that the CMAR and aii its subcontractors wiii compiy with ali Federal Immigration laws and regulations that relate to its employees and that the CMAR and all its Subcontractors now comply with the E-Verify Program under A.R.S. §23-214(A). A breach of this warranty by the CMAR or any of its Subcontractors will be considered a material breach of this Contract and may subject the CMAR or Subcontractor to penalties up to and including termination of this Contract or any subcontract. The City retains the legal right to inspect the papers of any employee of the CMAR or any Subcontractor who works on this Contract to ensure that the CMAR or any Subcontractor is complying with the warranty given above. The City may conduct random verification of the employment records of the CMAR and any of its Subcontractors to ensure compliance with this warranty. The CMAR agrees to indemnify, defend, and hold the City harmless for, from and against all losses and liabilities arising from any and all violations of these statutes related to the performance of the Work. The City will not consider the CMAR or any of its Subcontractors in material breach of this Contract if the CMAR and its Subcontractors establish that they have complied with the employment verification provisions prescribed by 8 USCA §1324(a) and (b) of the Federal Immigration and Nationality Act and the E-Verify requirements prescribed by A.R.S. §23- 214(A), as amended. The “E-Verify Program” means the employment verification pilot Project Name: Airport Runway 3-21 Pavement preservation project Project No; 26RFSQ058 11565416\/6 CMAR Des (Rev. 1.22.2026) Page 33 of 40 Contract No. 2026-073-COS program as jointly administered by the United States Department of Homeland Security and the Social Security Administration or any of its successor programs. The provisions of this Article must be included in any contract the CMAR enters into with any and all of its Subcontractors who provide services under this Contract or any subcontract. “Services” are defined as furnishing labor, time or effort in the State of Arizona by a contractor or subcontractor. Services include construction or maintenance of any structure, building or transportation facility or improvement to real property. The CMAR will take appropriate steps to assure that all Subcontractors comply with the requirements of the E-Verify Program. The CMAR’s failure to assure compliance by all its’ subcontractors with the E-Verify Program may be considered a material breach of this Contract by the City. 7.1 EQUAL EMPLOYMENT OPPORTUNITY For the duration of this Contract, CMAR represents and warrants it will comply with all applicable local, state and federal laws governing equal employment opportunities, or prohibiting employment or other discrimination based on any protected characteristic including but not limited to actual or perceived race, color, religion, sex, age, disability, national origin, sexual orientation, gender identity, or U.S. military status. City of Scottsdale Revised Code, Chapter 15 mandates CMAR compliance with the policies contained therein. CMAR agrees that any violation of provision on the part of CMAR, its employees, agents or assigns will constitute a material breach of this Contract. The CMAR will include the terms of this provision in all contracts and subcontracts for work performed under this Contract, including supervision and oversight. The CMAR will, in all solicitations or advertisements for employees placed by or on behalf of the CMAR, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin. 7.2 NO PREFERENTIAL TREATMENT OR DISCRIMINATION In accordance with the provisions of Article II, Section 36 of the Arizona Constitution, the City will not grant preferential treatment to or discriminate against any individual or group on the basis of race, sex, color, ethnicity or national origin. To avoid the appearance of impropriety, CMAR shall not make any donation to the City, of any goods or services during the term of this Contract, unless it has specifically been approved by the City Manager or designee. 7.3 COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT CMAR acknowledges that, pursuant to the Americans with Disabilities Act (ADA), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor, must be accessible to the disabled public. CMAR shall provide the services specified in this Contract in a manner that complies with the ADA and any and all other applicable federal, state and local disability rights legislation; provided, however, that CMAR shall not be responsible for violations that occur based on the drawings, specifications, or other Design Documents provided by the City, the City’s consultants, or the Design Professional. CMAR agrees not to discriminate against disabled persons in the provision of services, benefits or activities provided under this Contract and further agrees that any violation of this prohibition on the part of CMAR, its employees, agents, or assigns will constitute a material breach of this Contract. Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 1156541 eve CMAR Des (Rev. 1.22,2026) Page 34 of 40 Contract No. 2026-073-GOS 7.4 NO BOYCOTT OF ISRAEL By submitting a quote/proposal/bid and/or entering into a contract with the City, CMAR certifies that it is not currently engaged in and will not for the duration of this contract engage in boycott activity proscribed by A.R.S. § 35-393 etseq, as amended. 7.5 FORCED LABOR PROHIBITIONS Pursuant to A.R.S. § 35-394, as amended, CMAR warrants and certifies that it does not currently, and agrees for the duration of this Contract that it will not use: 1) The forced labor of ethnic Uyghurs in the People's Republic of China. 2) Any goods or services produced by the forced labor of ethnic Uyghurs in the People's Republic of China. 3) Any contractors, subcontractors or suppliers that use the forced iabor or any, goods or services produced by the forced labor of ethnic Uyghurs in the People's Republic of China. If CMAR becomes aware during the term of this Contract that CMAR is not in compliance with this Section, CMAR shall notify the City within five (5) business days after becoming aware of the noncompliance. The failure of CMAR to provide a written certification that CMAR has remedied the noncompliance within one hundred eighty (180) days after notifying the City of its noncompliance will result in automatic termination of this Contract, unless an earlier contract termination, cancellation, or expiration date applies. ARTICLE 8 - TERMS AND DEFINITIONS Addenda - Written or graphic instruments issued before the submittal of the GMP Proposal(s), which clarify, correct, or change the GMP Proposal(s) requirements. Allowance - means an agreed amount by the City and the CMAR for items or services which may be required to complete the Scope of Work. Alternate Systems Evaluations - Alternatives for design, means, and methods or other scope of work considerations that are evaluated Using value engineering principles and have the potential to reduce construction costs while still delivering a quality and functional Project that meets City requirements. Change Order - A written order signed by an authorized representative of the City and CMAR and which approves changes in the total compensation or time allowed for completion of services consistent with the City of Scottsdale Procurement Code, as amended. City (“Owner”) - means the City of Scottsdale, an Arizona municipal corporation. Regulatory activities handled by the City of Scottsdale Development Services, Planning and Fire Departnients or any other City department are not subject to the responsibilities of the City under this Contract. CMAR (“Construction Manager at Risk”) - means a project delivery method in which: (a) There is a separate contract for design services with one or more Design Professional and a separate contract for construction services, except that Project Name; Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416v6 CMAR Des (Rev. 1.22.2026) Page 35 of 40 Contract No. 2026-073-COS instead of a single contract for construction services, the City may elect separate contracts for preconstruction services during the preconstruction phase, for construction during the construction phase and for any other construction services. (b) The contract for preconstruction services may be entered into at the same tjme as the contract for design services with the Design Professional or at a later time. (c) Design and construction of the project may be either; (i) Sequential with the entire design complete before construction commences. (ii) Concurrent with the design produced in two or more phases and construction of some phases commencing before the entire design is complete. (d) Finance services, maintenance services, operations services, preconstruction services and other related services may be included. City’s Project Contingency - means a fund to cover cost growth during the Project used at the discretion of the City usually for costs that result from the City’s direct changes or unforeseen site conditions. The amount of the City’s Project Contingency may be set solely by the City and will be in addition to the project costs included in the CMAR’s GMP package. The City’s Project Contingency is an amount to cover changes initiated by the City, which may be incorporated into the GMP as an Allowance at the City’s discretion. Contract (the "Contract”) - This written document signed by the City and the CMAR covering the preconstruction phase of the Project, and including other documents itemized and referenced in or attached to and made part of this Contract. Contract Administrator - means the person designated in Article 5.12. Construction Documents - The plans, specifications, and drawings prepared by the Design Professional after correcting for permit review requirements and incorporating Addenda and approved Change Orders, and the Preconstruction Contract and the CMAR Construction Contract. CMAR Construction Fee - The CMAR’s administrative costs, home office overhead, and profit, whether at the CMAR’s principal or branch offices. This includes the administrative costs and home office costs and any limitations or exclusions that may be included in the General Conditions for the construction phase. Contract Amount - The final approved not-to-exceed budget for this Contract as identified in Article 3.0. Contract Documents - means the following items and documents in descending order of precedence executed by the City and the CMAR; (i) all written modifications. Addenda, and Charige Orders; (ii) the CMAR Construction Contract; (iii) this Preconstruction Contract, including all exhibits and attachments; (iv) written Supplementary Conditions; (v) Construction Documents; (vi) GMP Plans and Specifications. Contract Time(s1 - The number of days or the dates related to the contract time for the Preconstruction Phase Services Contract. Project Name; Airport Runway 3-21 Pavement preservation project Project No; 26RFSQ058 i:i565416\/6 CMAR Des (Rev. 1.22.2026) Page 36 of 40 I Contract No. 2026-073-COS Cost of the Work (Direct Costs) - The direct costs necessarily incurred by the CMAR in the proper performance of the Work. The Cost of the Work must include direct labor costs, subcontract costs, costs of materials and equipment incorporated in the completed construction, costs of other materials and equipment, whether provided by CMAR or a third party, materials testing, and warranty work together with self-performed work that the CMAR established in the Sub-Contractor Selection Plan. The Cost of the Work will not include the general conditions, CMAR’s construction fee, taxes, bonds, or insurance costs. Day - Calendar day(s) unless otherwise specifically noted in the Contract Documents. Deliverables - The work products prepared by the CMAR in performing the Scope of Work described in Exhibit A of this Contract. Major Deliverables to be prepared and provided by the CMAR during the preconstruction phase may include but are not limited to; Construction Management Plan, Project Schedule, Schedule of Values, alternative system evaluations, procurement strategies and plans, cost estimates, construction market surveys, cash flow projections, GMP Proposals, Subcontractor procurement plan, Subcontractor Contracts, Subcontractor bid packages. Supplier Contracts, and others as indicated in this Contract or required by the Project Team. Design Team or Design Professional - refers to licensed design professionals that have been selected to work on the Project by the City. The Design Team has a services contract to furnish the design and may or may not provide professional inspections for the Project. The Design Team is led by Brad Mikulecky PE, a licensed Professional Engineer. Drawings (Plans) - Documents which visually represent the scope, extent, and character of the Work to be furnished and performed by the CMAR during the construction phase and which have been prepared or approved by the Design Professional and the City. Drawings include documents that have reached a sufficient stage of completion and released by the Design Professional solely for the purposes of review or use in performing constructability or biddability reviews and in preparing cost estimates (e.g. conceptual design Drawings, preliminary design Drawings, detailed design Drawings at 30%, 60%, 90% or 100%), but “not for construction”. Drawings do not include shop drawings. Effective Date of this Contract - The date specified in this Contract on which the Contract becomes effective, but if no date is specified, the date on which the City executes this Contract. General Conditions Costs - The negotiated amount of project supervision and other indirect costs according to construction terms. These costs are not reflected in other GMP items. Costs may include, but are not limited to, the following: Project Manager, Superintendent, Full-time General Foremen, workers not included as direct labor costs engaged in support (e.g. loading/unloading, clean-up, etc.) and administrative office personnel. Other costs may include: temporary office, fencing and other facilities, office supplies, office equipment, minor expenses, utilities, vehicles, fuel, sanitary facilities, and telephone services at the site. GMP Plans and Specifications - The plans and specifications provided in accordance with Article 1.6(C) upon which the Guaranteed Maximum Price Proposal is based. Guaranteed Maximum Price or “GMP” means the sum of the maximum price of the Work as given in the GMP proposal; the CMAR’s Direct Costs including the Subcontractor Costs of Work and the CMAR’s Cost of Work, the CMAR Indirect Costs including the CMAR’s Construction Fee; Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416v6 CMAR Des (Rev. 1.22.2026) Page 37 of 40 Contract No. 2026-073-COS General Conditions, Taxes, Payment and Performance Bonds, Insurance Costs, and City’s Project Contingency as more fully described in Article 1.5 of this Contract. Guaranteed Maximum Price (GMPI Proposal - The offer or proposal of the CMAR submitted on the prescribed form stating the GMP prices for the entire Work (which includes Cost of the Work, General Conditions, Taxes, Bonds, Insurance) or portions of the Work to be performed during the construction phase. The GMP Proposal(s) are to be developed in compliance with Article 1.6 of this Contract. Indirect Costs- include the General Conditions, Payment and Performance Bonds, Insurance and Taxes. Legal Requirements - means all applicable federal, state and local laws, codes, ordinances, rules, regulations, orders and decrees of any government or quasi-governmental entity having jurisdiction over the Project or Site, the practices involved in the Project or Site, or any Work. Notice-to-Proceed - A written notice given by the City to the CMAR fixing the date on which the CMAR will start to perform the CMAR’s obligations under the Construction Services Contract. Payment Request - The form that is accepted by the City and used by the CMAR in requesting progress payments or final payment and which will include any supporting documentation as is required by the Contract Documents or the City, and is based on a monthly estimate of the dollar value of the Work completed. Preconstruction Services - means advice given during the preconstruction phase. Preconstruction Services will be contracted for between the City and the CMAR, as required by A.R.S. §34-603. Services may include the following; design review, project scheduling, constructability reviews. Alternate Systems Evaluation, cost estimates, GMP preparation, and subcontractor bid phase services. Project - The Scope of Work as described in the Recital above and Exhibit A attached. Project Team - Preconstruction phase services team consisting of the Design Professional, the CMAR, the Contract Administrator, the City’s representatives and other stakeholders who are responsible for making decisions regarding the Project. Samples - Physical examples that illustrate materials, equipment, or workmanship representative of a part of the construction phase Work and which establish the standards by which that portion of the construction phase Work will be judged. Schedule of Values (SOV) - means the Document specified in the construction phase, which divides the Contract Price into pay items, so that the sum of all pay items equals the Contract Price for the construction phase Work, or for any portion of the Work having a separate specified Contract Price. The SOV may or may not be output from the Progress Schedule depending on whether the Progress Schedule is cost-loaded or not. Shop Drawings - means drawings, diagrams, schedules and other data specially prepared for the Work by the CMAR or a Subcontractor, Sub-subcontractor, manufacturer, supplier, or distributor to illustrate some portion of the Work. Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416v6 CMAR Des (Rev. 1.22.2026) Page 38 of 40 Contract No. 2026-073-COS Site - means the land or premises on which the Project is located generally described as approximately 24 acres located at Scottsdale Airport. 15000 N. Airport Drive, Scottsdale, AZ. The CMAR will include in its contract with Subcontractors the street or physical address of the construction site. Specifications - The section(s) of the Contract Documents for the construction phase consisting of written technical descriptions of materials, equipment, construction systems, standards, and workmanship as applied to the Work and certain applicable administrative details. Subcontractor - means any person or entity retained by the CMAR as an independent, contractor to perform a portion of the Work and must include material, workers, and suppliers. All subcontractors must be selected in accordance with the selection plan stated in Article 1.8. Subconsultant - A person, firm, or corporation having a Contract with the CMAR to furnish services required as its independent professional associate or consultant with respect to the Project. I Substantial Completion. - When the Work, or when an agreed upon portion of the Work, is sufficiently complete so that the City can occupy and use the Project or a portion of the Project for its intended purposes. This may include, but is not limited to: (a) approval by the City Fire Marshall and local authorities (Certificate of Occupancy); (b) issuance of elevator permit; (c) demonstration to the City that.all systems are in place, functional, and displayed to the City or its representative; (d) installation of all materials and equipment; (e) City review and acceptance of all systems; (f) City review and acceptance of draft O&M manuals and record documents; (g) City operation and maintenance training completed; (h) HVAC test and balance completed [provide minimum 30 days before the projected substantial completion]; (i) completed landscaping and Site work; and (j) final cleaning. Supplier - A manufacturer, fabricator, supplier, distributor, materialmen or vendor having a direct contract with the CMAR or with any Subcontractor to furnish materials or equipment to be incorporated in the construction phase Work by the CMAR or any Subcontractor. Work - The entire completed construction or the various separately identifiable parts of the construction, required to be furnished during the construction phase. Work includes and is the result of performing or furnishing labor and furnishing and incorporating materials, resources and equipment into the construction, and performing or furnishing sen/ices and documents as required by the Contract Documents for the construction phase. [END OF TEXT- SIGNATURE PAGE TO FOLLOW] Project Name: Airport Runway 3-21 Pavement preservation project Project No: 26RFSQ058 11565416v6 CMAR Des (Rev. 1.22.2026) Page 39 of 40 Contract No. 2026-073-COS THE CITY OF SCOTTSDALE, by its Mayor and City Clerk have subscribed their names this_____day of____________________ , 20___. CITY OF SCOTTSDALE, an Arizona municipal corporation ATTEST: By: Lisa Borowsky, Mayor By:. Ben Lane, City Clerk CONSTRUCTION MANAGER AT RISK: J. Banicki Construction, Inc., an Arizona corporation By:. Print Name & Title: REVIEWED BY: By-. Matthew Johnson, City Contract Administrator By-Lw Jer II My^A. MPA,WO, NIGP-CPP, CPPB Purchasing Direct GeorgeTTroods, Safety & Ris^anagement Director APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY Luis ErSantaella, City Attorney By: Lydia Tulin, Assistant City Attorney Project Name; Airport Runway 3-21 Pavement preservation project Project No; 26RFSQ058 11565416v6 CMAR Des (Rev. 1.22.2026) Page 40 of 40 Contract No. 2026-073-COS EXHIBIT A SCOPE OF WORK Preconstruction Phase Services: Preconstruction phase services for the Project rnay include but are not limited to the following: • Review the improvement plans as prepared by Mead & Hunt to assist in the development of phasing plan and schedule and to identify long lead items. • Provide construction schedule and identify long lead items • Provide detailed cost estimating • Provide construction constructability reviews • Provide the CMAR’s GMP(s) Construction Phase Services: Future construction elements may be delivered via one or more construction phase services contracts and the CMAR will assume the risk and be responsible for delivering the project using a Guaranteed Maximum Price (GMP). The CMAR will be responsible for construction means and methods to meet the Project goals. The CMAR is expected to develop and follow a subcontractor selection plan, as described in Article 1.8, that solicits bids from prequalified subcontractors to perform the work. Construction Phase Services will be determined throughout the design/preconstruction phase of the Project. Project Name: Airport Runway 3-21 Pavement preservation project Project No; 26RFSQ058 11565416V6 CMAR Des (Rev. 1.22.2026) Page 1 of 1 Contract No. 2026-073-COS EXHIBIT B HOURLY RATE SCHEDULE The schedule of hourly labor rates for employees of the CMAR and its Subcontractors or Subconsultants are as follows; Title/Name Direct Rate ($/Hr) Total Rate ($/Hrl Project Director / Mike Abraham Pre Con-Manager / Eric Rotner Chief Estimator/ Michael Lambesis Project Manager/ James Matthews $176.17 $107.11 $116.98 $88.13 $264.26 $160.67 $175.47 $132.30 Note: Any changes in Project Staffing will require City of Scottsdaie approvai. ■s Project Name: Airport Runway 3-21 Pavement preservation.project Project No: 26RFSQ058 11565416v6 CMAR Des (Rev. 1.22:2026) Page 1 of 1 Contract No. 2026-073-COS EXHIBIT C SUBMITTAL REQUIREMENTS FOR THE GMP GMP submittal, one copy for review. Two (2) copies will be requested by the Capital Project Management prior to contract execution. GMP Cost Model Exhibit Contents; 1. Scope of Work 2. Summary of the GMP . 3. Schedule of Values - Direct and Indirect cost summary: Unit prices and quantity take-offs using the City’s standard pay items; Details of all Allowances and unit price work shown and specified in the detailed design documents; All fixed equipment, site improvements, and utility and equipment installations; Field Office overhead; Home Officer overhead; Bonds, taxes, insurance; The CMAR Contractor’s fee (percentages for self-performed work and subcontractor work when different). 4. List of Plans and Specifications used for GMP Proposal 5. List of clarification and assumptions 6. Subcontractor Bids on Subcontractor Letterhead 7. Project Schedule showing critical path construction items A. Scope of Work will consist of a brief description of the work to be performed by CMAR and major points that the CMAR and the City must be aware of pertaining to the scope, (normally one paragraph is sufficient.) B. A summary of the GMP with a total for each of the components of the GMP as listed in its definition in Article 1 as shown in the table below: C. Schedule of Values - spread sheet with the estimated bid or cost organized by subcontract categories. Allowances, bid contingency, general conditions costs, taxes, bonds, insurances, and the CMAR’s construction phase fee. The supporting document for the spreadsheet must be provided in an organized manner that correlates with the schedule of values. The backup information shall consist of the request for bids, bids received, and clarification assumptions used for the particular bid item listed on the schedule of values, if applicable: material costs, equipment costs, labor costs, hourly labor rates, and total cost. Labor costs shall include the employee classification, benefits, payroll taxes and other payroll burdens. The total cost for any portion of the work to be performed by subcontractors shall include subcontractor overhead and profit. Production rates, transportation and other facilities and services necessary for the proper execution of the work, whether temporary or permanent, and whether or not incorporated or to be incorporated into the work. Copies of quotations from subcontractors and suppliers. Memoranda, narratives, consultant’s reports and all other information used by the CMAR Contractor to arrive at the GMP. The GMP must include all assumptions, descriptions and a breakdown of all Allowances. Project Name: AIRPORT RUNWAY 3-21 PAVEMENT RESTORATION PROJECT Project No:26RFSQ058 11565416v6 CMAR Des (Rev. 1.22.2026) PAGE l OF 3 Contract No. 2026-073-COS EXHIBIT C GMP SUMMARY AMOUNT COST OF THE WORK - DIRECT COSTS AMOUNT A B Sub-Contractors' Cost of the Work (Labor, Materials, Equipment, Warranty, Insurance, Profit) $ CMAR Self-Performed Cost of the Work (Labor, Materials, Equipment, Warranty) $ C Total Cost of the Work (A+B) $ INDIRECT COSTS AMOUNT D General Conditions (Negotiated Amount) E $ F Total Cost of the Work + General Conditions Fee (C+D) $ G CMAR Construction Fee (% of E or Negotiated Fixed Fee) $ H Payment and Performance Bonds (On E. Total Cost of the Work + General Conditions Fee) $ Insurance (Additional CMAR's Insurance not provided in the Total Cost of the Work) $ I Subtotal Direct + Indirect Costs (E+F+G+H) $ J Taxes (Actual Reimbursable limited by Not to Exceed) $ K Project Subtotal (l+J) $ L CITY’S PROJECT CONTINGENCY (As determined by the City) ■$. M TOTAL GMP (Not to Exceed) (K+L) $ D. A list of the Plans and Specifications with latest issuance date including all Addenda used in preparation of the GMP proposal. The plans used for the GMP must be date stamped and signed by CMAR, Design Consultant, and Project Manager using the format below. Plans Used for Preparation of GMP No. CMAR Date Design Consultant Date Project Manager Date Project Name; AIRPORT RUNWAY 3-21 PAVEMENT RESTORATION PROJECT Project No:26RFSQ058 11565416v6 CMAR Des (Rev. 1.22.2026) Page 2 of 3 Contract No. 2026-073-COS EXHIBIT C E. A list of the clarifications and assumptions made by the GMAR in the preparation of the GMP proposal, to supplement the information contained in the documents. F. All Subcontractor Bids for the Project on the Subcontractor’s Letterhead. G. A Critical Path Method diagram construetion schedule. NOTE: The submittal package must be kept as simple as possible all on 8^/4 x 11 sheets. Color or shading must be kept to a minimum. If used, make sure the color or shading will not affect the reproduction of the submittal in black and white. Final GMP submittal will consist of the following: 1. Two (2) Copies of the GMP (perforated as requested by Bids & Specifications) Velo or 3- hole punched. 2. One copy of the plans and technical specifications used to arrive at the GMP (signed by Design Consultant, CMAR and Project Manager). Project Name: AIRPORT RUNWAY 3-21 PAVEMENT RESTORATION PROJECT Project No;26RFSQ058 11565416v6 CMAR Des (Rev. 1.22.2026) Page 3 OF 3 Banlck! Construction A STERLING COMPANY Contract No. 2026-073-GOS 3. Banicki Construction, Inc. 4720 E. Cotton Gin Loop STE, 240 Phoenix, AZ 85040 480-921-8016 (phone) 480-921-9456 (fax) April 21, 2026 City of Scottsdale Aviation Department 15000 N. Airport Drive, Ste 100 Scottsdale, AZ 85260 Attention: Matt Johnson Reference: Runway 3-21 Pavement Restoration Project Subject: Preconstruction Services Proposal Matt, Per your request, attached is our proposal for preconstruction services on the above referenced project for the total amount not to exceed $23,677.43 The following are included in our proposal: 1. The cost of 90% plan review and one GMP preparation is included. The cost of preparing additional GMPs will be included in the cost of each additional GMP as needed. 2. The cost of the CPM schedule for one GMP's is included. CPM schedules for additional GMPs will be included in the cost of each GMP as needed. 3. The cost to perform a conceptual budget for the total project based on the current level of designed plans. If you have any questions or comments, please contact me at (602)527-5145. Respectfully submitted, __ _ EricRotner ' Vice President J. Banicki Construction, INC. Exhibit D Page 1 of 2 Contract No. 2026-073-COS Scope of Services / PreconstrucUon Services Tasks April 21, 2026 ' f , Banicki Construction A Sterling Construction Company Firm Position / Description Name Rate Labor Banicki Proj. Dir. Mike $264.26 Pre Con Mgr, Eric $160.67 Sr. Est. Michael $175.47 Project Manager James $132.20 Total Labor Construction Management Plan Determine Project Milestone Dates & Project Schedule Perform S»e Investigation Evaluate Phasing Options Determine Anticipated Trades Determine Safety & Training Programs Assist the Development of Safety Plan Develop Quality Control Plan Analysis (or SWPPP and Dust Control Plans Assist with DBE Goal Compliance Project Coordination Meetings Kickoff Meeting Weekly / Bi-Weekly Meetings 90% Design Review Meeting GMP Review Meetings Onsite Focused Meetings Cost Estimates Conceptual Budget for Entire Scope of Work GMP Cost Estimate Provide Miscellaneous Cost Estimates Design Document Review Document Distribution & Collection Value Engineering Analysis Constructability Review Plan & Specification Review 90% Design Review Report Miscellaneous Design Review on Changes GMP Proposal Cost Estimate Setup & Pricing Narratives - Scope, Clarifications & Assumptions Summarization of Quotes including Detailed Analysis & Quotes DBE Compliance Documentation Preparat'ion of Electronic & Hard Copies Project Schedule Preliminary Design Schedule Preliminary Constmction Schedule Design & Construction Schedule Updates Vendor Outreach, Prequalification & Solicitation Prequalification Process - Outreach & Review of Vendor Quallficatbns Outreach Documentation & Results Communication Development of Scope Narrative & Schedule of Values per Trade Vendor Solicitation & Quote Analysis for Selection Subtotal 0.5 0 0 0.5 0 0 0 0 0 0 0.5 0 0 0 0.5 0 1.5 0.5 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7 0.5 2 0.5 0.5 1 1 1 0 0.5 7.5 0.5 4 1 1 1 12 6 4 2 8 2 0 2 2 1 1 12 2 1 1 0 8 2 1 1 0 5 2 1 1 1 0.5 0 0 0 0.5 0 0 0 0 0 0.5 0.5 0 0 0 0 20 10 B 2 8 1.5 0.5 2 2 1 1 32 24 0 4 0 4 0 0 0 0 8 2 2 2 2 4.5 0 0 0.5 0 1 1 1 1 0 7.5 0.5 4 1 1 1 0 0 0 0 2.5 0 0.5 1 1 0 0 $1,939.46 $80 $321 $212 $168 $161 $161 $162 $1 $80 $2,416.39 $234 $1,171 $293 $425 $293 $5,633.83 $2,851 $2,311 $672 $3,019.62 $585 $154 $804 $804 $336 $336 1 $7,675.28 0 $4,533 1 0 0 0 2 0 1 1 0 0 0 0 0 $293 $863 $0 $1,987 $585.74 $161 $293 $132 $2,207.11 $672 $512 $512 $512 2.5 53.5 69 17.5 $23,677.43 Pre-Constructlon Summary Labor Equipment $23,677.43 $0 Pre-Constructlon Total $23,677.43 Exhibit D Page 2 of 2 % S3 IS' RUNWAY 3-21 PAVEMENT PRESERVATION PROJECT AREA MAP r mi it Wlk H r f f! mi t -''1 rui il * lL yj t'» #1 <r lki\ ‘r* iisi. Ifii >-* H t ‘ir’ um ifmrSS""* .; .ij., i46?ft.ftg*.aitti5tfas: