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Item 1
CITY COUNCII
REPOIT
m
I
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i
Meeting Date:
General Plan Element:
General Plan Goal:
March 24,2026
Public Service and Facilities
Efficiently plan & manage infrastructure and facilities
ACTION
Job Order Contracts with Chasse Building Team, CORE Construction, GCON Inc., Sun Eagle
Corporation, and Wiilmeng Construction Inc. Adopt Resolution No. 13576 authorizing
Contracts 2026-006-GOS with Chasse Building Team, 2026-007-COS with CORE Construction,
2026-008-COS with GCON Inc., 2026-009-COS with Sun Eagle Corporation, and 2026-010-COS
with Wiilmeng Construction Inc., for citywide facility construction and maintenance services on
an as needed basis;
BACKGROUND
Chasse Building Team, CORE Construction, GCON Inc, Sun Eagle Corporation, and Wiilmeng
Construction Inc. are qualiBed general contractors that perform construction services including
new construction, building remodels, flooring, electrical, plumbing, HVAC, and other
construction trade work needed to support City facilities. Entering into job Order Contracts
OOC) with these five firms provides the City with a broad range of capabilities to efficiently
address facility construction and maintenance needs.
The purpose of this action is to establish contracts with Chasse Building Team, CORE
Construction, GCON Inc., Sun Eagle Corporation, and Wiilmeng Construction Inc. to perform
construction services for projects throughout the City. These agreements allow the City to issue
individual job Orders for construction services on an as needed basis.
Each contract authorizes individual job Orders up to $1,000,000 per single job Order, and the
total contract amount for citywide use per contractor is limited to $4,000,000 during the initial
two-year term. If extended, each one-year renewal period allows up to $2,000,000 per
contractor for Job Orders issued in that term. All funding associated with these Job Orders is
already budgeted, and this action does not request or commit any additional monies.
The term of Agreements 2026-006-COS, 2026-007-COS, 2026-d08-COS, 2026-009-COS, and
2026-OlO-COS will begin on the effective date of approval and will remain in place for an initial
two-year period, with the option to extend the contracts for up to three additional one-year
terms.
AcUonTakm.
Blueink Bundle ID: tLyqNRhn30
City Council Report j Job Order Contract with GCON, inc.
IMPACT ANALYSIS
The City has previously used these contractors for projects throughout the City, and by adding
the five job Order Contracts, it will allow the City of Scottsdale to have a wider range of options
as to which contractor to use instead of being forced to use one. Additionally, using the jOb
Order contracts will aid in the process of getting projects started and going more efficiently due
to having more contractors to reach out to for bids> availability, etc.
Available Funding
Authorization of these contracts commits no new funding. Any money that is going to be used
for projects using these job Order Contracts will be monies that are already budgeted and
available. No additional money is requested with these contracts.
OPTIONS & STAFF RECOMMENDATION
Recommended Approach
Adopt Resolution No. 13576 authorizing Contract nOs. 2026-006-COS, 2026-007-COS, 2026-
008-COS, 2626-OO9-COS, and 2026-blO-COS for materials of services with Chasse Building
Team, CORE Construction, GCQN Inc., Sun Eagle Corporation, and Willmeng Construction Inc.
for job order contracting for various construction trades in an amount not to exceed $1,000,000
for a single Job Order of approved budget monies.
Proposed Next Steps
Upon council approval, staff will move forward with using Chasse Building Team, CORE
Construction, GCON Inc., Sun Eagle Corporation, and Willmeng Construction Inc. on projects for
theCity.
Page 2 of 4
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City Council Report | Job Order Contract with GCON, Inc.
RESPONSIBLE DEPARTMENT(S)
Facilities Management
STAFF CONTACT(S)
Robert Franklin, Facilities Service Area Manager, RFranklin@scottsdaleaz.gov
APPROVED BY
iiud^^e
Steve Denning, Facilitiesljeputy Director
(480) 312-S756. sdenning(5)scottsdaleaz.gov
C3>1 \ o \
Date
Jeff Walther, Assistant City Manager
(480) 312-7954, jwalther@scottsdaleaz.pov
^/in/9fi
mc;t
Date
Page 3 of 4
Blueink Bundle ID: tLyqNRhnBO
City Council Report | Job Order Contract with GCON, Inc.
ATTACHMENTS
1. Resolution 13576
2. Contract 2026-006-COS
3. Contract 2026-607-COS
4. Contract 2026-008-COS
5. Contract 2026-009-COS
6. Contract 2026-010-COS
Page 4 of 4
Bluelnk Bundle ID:.tLyqNRhn30
RESOLUTION NO. 13576
A RESOLUTION OF THE COUNCIL OF THE CITY OF SCOTTSDALE, MARICOPA
COUNTY, ARIZONA, AUTHORIZING CONTRACT NO. 2026-006-COS WITH CHASSE
BUILDING TEAM, INC.. CONTRACT NO. 2026-007-COS WITH CORE
' CONSTRUCTION, INC., CONTRACT NO. 2026-008-COS WITH GCON INC
CONTRACT NO. 2026-009-COS WITH SUN EAGLE CORPORATION’ AND
CONTRACT NO. 2026-010-COS WITH WILLMENG CONSTRUCTION. INC.,’ EACH
FOR A TWO-YEAR CONTRACT TO PROVIDE JOB ORDER CONTRACTING
SERVICES IN AN AMOUNT NOT TO EXCEED FOUR MILLION DOLLARS
($4,000,000) PER CONTRACT.
WHEREAS, the City desires to enter into Job Order Contracts for general contractor services,
not to exceed $1,000,000 per Job Order, encompassed in Capital Improvement Projects located
throughout the City on an “as needed” basis; and
WHEREAS, the Contracts are for an initial term of two (2) years in an amount not to exceed Four
Million Dollars ($4,000,000) per Contract, with the option for three (3) additional one (1) year extensions
in an amount not to exceed Two Million Dollars ($2,000,000) per Contract after expiration of the initial
term; and
WHEREAS, Chasse Building Team, Inc., CORE Construction, Inc., GCON, Inc., Sun Eagle
Corporation, and Willmeng Construction, Inc. have been selected by the City and are qualified to render
the desired services.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Scottsdale as follows:
Section 1. The Mayor is hereby authorized and directed to execute Contract No. 2026-006-
COS with Chasse Building Team, Inc., Contract No. 2026-007-COS with CORE Construction. Inc.
Contract No. 2026-008-COS with GCON, Inc., Contract No. 2026-009-COS with Sun Eagle
Corporation, and Contract No. 2026-010-COS with Willmeng Construction, Inc. for job order contracting
services with a contract amount not to exceed Four Million Dollars ($4,000,000) for the initial two (2)
year term of each respective Contract.
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 City Council of the City of Scottsdale this
____________2026.
CITY OF SCOTTSDALE
an Arizona municipal corporation
day of
Ben Lane, City Clerk
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY
i__
Luis E Santaella, Interim City Attorney
By: Lydia Tulin, Assistant City Attorney
18961532
Lisa Borowsky, Mayor
Resolution 13576
Page 1 of 1
ATTACHMENT 1
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CITY OF SCOTTSDALE
JOB ORDER CONTRACT
N0.2026-006-COS
Contract No. 2026-006-COS
Solicitation #RFSQ-022025-236
(Revised 03/17/25)
Blueink Bundle ID: ZfTPyqJcyG
ATTACHMENT 2
Contract No. 2026-006-COS
Solicitation #RFSQ-022025-236
TABLE OF CONTENTS
RECITALS................. ......................... ............................. ................................................. 1
ARTICLE 1 - CONTRACTOR’S SERVICES AND RESPONSIBILITIES.................. .................1
ARTICLE 2 - CITY’S SERVICES AND RESPONSIBILITIES.................................................18
ARTICLE 3 - CONTRACT TIME AND JOB ORDER TIME.................................................... 21
ARTICLE 4- CONTRACT PRICE AND JOB ORDER PRICE............................. ..............23
ARTICLE 5 - CHANGES TO THE CONTRACT PRICE AND TIME.......................................25
ARTICLE 6 - PROCEDURE FOR PAYMENT..................................................................... 30
ARTICLE 7 - CLAIMS AND DISPUTES ........ ............................................. .........^ . ..34
ARTICLE 8 - SUSPENSION, TERMINATION AND CANCELLATION ......... .................36
ARTICLE 9 . INSURANCE AND BONDS.................................................. .................... 39
ARTICLE 10 - INDEMNIFICATION................................. .......................................... .....46
ARTICLE 11 - GENERAL PROVISIONS................ ......... ....................50
ARTICLE 12 - DEFINITIONS....................................................... ...................................... 61
EXHIBIT A - STATUTORY PERFORMANCE BOND
EXHIBIT B - STATUTORY PAYMENT BOND
(Revised 03/17/25)
Blueink Bundle ID:,ZfTPyc|JcyG
Contract No. 2026-006-COS
Solicitation No. RFSQ-022025-236
CITY OF SCOTTSDALE
CONTRACT NO. 2026-006-COS
THIS CONTRACT. (“Contract”) is entered into this
day of
2026,
(“Effective Date") between the City of Scottsdale, an Arizona municipal corporation (“City”) and
Chasse Building Team, Inc., an Arizona Corporation, ("Contractor”).
RECITALS
A.
The Mayor of the City of Scottsdale, Arizona, is authorized and empowered by the
provisions of the City Charter to execute contracts for construction and related services.
B.
The City intends to contract for construction and related services with Contractor for one
or more individual Job Orders.
C.
Contractor has represented to the City the ability to provide or procure the required
construction and related services and, based on this representation, the City engages
Contractor for these services.
FOR AND IN CONSIDERATION of the mutual covenants and considerations contained in this
Contract, it is agreed by the City and Contractor as follows:
ARTICLE 1 - CONTRACTOR'S SERVICES AND RESPONSIBILITIES
1.1. GENERAL SERVICES
A.
Contractor will furnish any and all labor, materials, equipment, transportation,
utilities, services and facilities specified in the individual Job Order for which it is
issued a Job Order Notice-to-Proceed for Work in accordance with this Contract.
The City may determine it is in its best interest to furnish materials and equipment
for an individual Job Order in accordance with the Job Order.
B.
The Work will be performed in a good, workmanlike and substantial manner and
to the satisfaction of the City Engineer and under the monitoring of the City
Engineer, or designee, with the care and skill of a qualified contractor in Scottsdale,
Arizona.
1. Minor design services may be required for some Job Orders. For those
Job Orders that may require minor design services. Contractor will seek
the sen/ices of an Arizona registered architect or engineering professional
to prepare plans for permitting. The procurement of minor design services
will be in accordance with the City’s procurement procedures and code. If
the services of a design professional are used, the design professional
must maintain at least $1,000,000 Professional Liability Coverage.
2. All documents prepared by Contractor are subject to review by the City.
Review by the City is for the benefit of the City only, is not intended to be
for the benefit of any other person and does not relieve Contractor from the
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Contract No. 2026-006-COS
Solicitation No. RFSQ-022025-236
professional liability associated with the documents they have prepared.
3. Contractor’s Representative shall be reasonably available to the City and
will have the necessary expertise and experience required to supervise the
Contract Services. A Contractor’s Representative will be assigned for each
Job Order. Contractor’s Representative will communicate regularly with the
City and will be vested with the authority to act on behalf of Contractor.
C. The City is a member of $AVE cooperative purchasing group. $AVE includes the
State of Arizona, Maricopa County, many Phoenix metropolitan area
municipalities, and many K-12 unified school districts. Under $AVE Cooperate
Purchasing Agreement, and with the concurrence of successful Respondents
under this solicitation, a member of $AVE may access a contract resulting from
this solicitation issued by the City. By signing the JOC Corltract, Contractor agrees
to allow other $AVE members the ability to purchase their needs and “use” this
cbntract for JOC requirements.
1^. GOVERNMENT APPROVALS AND PERMITS
A Unless otherwise provided. Contractor will obtain or assist the City in obtaining all
necessary permits, approvals and licenses required for the prosecution of the Work
from any government or quasi-govemment entity having jurisdiction over the
Project. Contractor is resppnsible for obtaining payment for the necessary
environmental permits or file the necessary environmental notices.
B.
Copies of these permits and notices must be provided to the City's Representative
before starting the permitted activity. This provision does not constitute an
assumption by the City of an obligation of any kind for violation of the permit or
notice requirerhents.
C.
The City is responsible for the City of Scottsdale review and permit(s) fees for
building and demolition permits. The City will pay City review fees for grading and
drainage, water, sewer, storm water management, and landscaping. The City will
also pay for City utility design fees for permanent services.
D.
Contractor is responsible for all other permits and review fees not specifically listed
in Article 1.2(C) above.
E.
Contractor is responsible for the cost of construction-related water meter{s), water
and sewer taps, fire lines and taps, and all water bills on the project meters until
Substantial Completion of the Project. Arrangements for construction water will be
Contractor's responsibility. Construction water does not include “test water”
required to complete new water line pressure tests.
F.
The M.A.G. Standard Specification 107.12 is modified to read as follows:
“Contractor, at its own expense, is responsible for the acquisition of any necessary
temporary easements for construction purposes, storage, maintenance, and
refuse haUI-off as indicated upon the plans, which are required in addition to
existing easements or rights-of-way secured by the City.”
(Revised 07/09/25)
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Contract No. 2026-006-COS
Solicitation No. RFSQ-022025-236
1.3. PRE-CONSTRUCTION CONFERENCE
A.
After issuance of a Job Order and before the commencement of any Work on any
individual Job Order, a pre-construction conference may be scheduled.
B.
The purpose of this conference is to establish a working relationship between
Contractor, design firms, utility firms, and various City departments. The agenda
will include critical elements of the work schedule, submittal schedule, level of
Record Drawings required, cost breakdown of major lump sum items, payment
application and processing, coordination with the utility firms involved, and
emergency telephone numbers for all representatives involved in the course of
construction.
C.
At a minimum, attendees will include Contractor Representative, who is authorized
to execute and sign documents on behalf of the firm, the job superintendent, and
Contractor’s safety officer.
D.
The Job Order Notice-to-Proceed date will be established.
E.
Contractor will provide a Baseline Project Schedule indicating duration, manpower
and equipment resources required to complete all major work activities. The City
and Design Team will review and comment on the Baseline Project Schedule.
Contractor will revise the Baseline Project Schedule to the satisfaction of the City’s
Representative. No work will begin until the City accepts the Baseline Project
Schedule.
F.
Contractor will submit a Schedule of Values based on the work and bids accepted
from selected Subcontractors. These values will reflect the actual labor time,
materials, profit and overhead for the Work or in accordance with Contractor’s price
book.
1.4. CONTROL OF THE WORK
Contractor will properly guard and protect all partially finished work and will be
responsible for the Work until the entire Job Order is completed and accepted by the
City. Any payment for completed portions of the Work will not release Contractor from
this responsibility: however, he will turn over the entire Work in full compliance with the
specifications or Job Order before final settlement is made. In case of suspension of
the Work for any cause whatever. Contractor is responsible for the Project and will take
all precautions necessary to prevent damage to the Project and will erect any necessary
temporary structures, signs, or other facilities at no cost to the City.
A.
After all Work under the Job Order is completed. Contractor will remove all loose
concrete, lumber, wire, reinforcing, debris and other materials not incorporated in
the Work from the site of the Project
B.
Unless the Job Order states that it is the responsibility of the City or a separate
contractor, Contractor will provide through itself or Subcontractors the necessary
supervision, labor, inspection, testing, start-up, material, equipment machinery,
temporary utilities, other temporary facilities, temporary fencing, roll-offs, and dust
(Revised 07/09/25)
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Contract No. 2026-006-COS
Solicitation No. RFSQ-022025-236
control to permit Contractor to complete the Work consistent with the Job Order.
C.
Contractor will perform all construction activities efficiently and with the requisite
expertise, skill and competence to satisfy the requirements of the Job Order.
Contractor will at all times exercise complete and exclusive control over the means,
methods, sequences and techniques of construction.
D.
Survey stakes and marks required for the completion of the construction shown on
the plans and described in the specifications will be furnished by Contractor.
E.
Contractor, its designee or Contractor’s Superintendent will be present at the Work
at all times that construction activities are taking place.
1. All elements of the Work, such as concrete work, pipe work, etc., will be
under the direct supervision of a foreman or his/her designated
representative on the Site who will have the authority to take actions
required to properly carry out that particular element of the Work.
2. In the event of noncompliance with Article 5.1, the City may require
Contractor to stop or suspend the Work in whole or in part.
F.
Where the Job Order requires that a particular product be installed or applied by an
applicator approved by the manufacturer, it is Contractor’s responsibility to ensure
the Subcontractor employed for that portion of the Work is pre-approved by the
manufacturer.
G.
Before ordering materials for or doing the Work. Contractor and each
Subcontractor will verify measurements at the Site and will be responsible for the
correctness of these measurements. No extra charge or compensation will be
allowed because of differences between actual dimensions and the dimensions
indicated on the drawings; differences, which may be found, will be submitted to
the City for resolution before proceeding with the Work.
H.
Contractor will take field measurements and verify field conditions and carefully
compare these field measurements, conditions and other information known to
Contractor with the Job Order before starting activities. Errors, inconsistencies or
omissions discovered will be immediately reported to the City.
I.
Contractor will establish and maintain all building and construction grades, lines,
levels, and benchmarks, and will be responsible for the accuracy and protection of
these items. This portion of the Work will be performed or supervised by an Arizona
licensed civil engineer or surveyor.
J.
Any person employed by Contractor or any Subcontractor who, in the opinion of the
City, does not perform his/her portion of the Work in a proper, skillful and safe
manner or is intemperate or disorderly will, at the written request of the City, be
removed from the Work by Contractor or Subcontractor employing this person, and
will not be employed again in any portion of the Work without the written approval of
the City. Contractor or Subcontractor will hold the City harmless from damages or
claims, which may occur in the enforcement of this Article.
(Revised 07/09/25)
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Page 4 of 66
Contract No. 2p26-006-COS
Solicitation No. RFSQ-022025-236
K.
Contractor assumes responsibility for the proper performance of the Work of
Subcontractors and any acts and omissions in connection with this performance.
Nothing in the Contract Documents is intended or considered to create any legal
or contractual relationship between the City and any Subcontractor or Sub-
Subcontractor. including but not iimited to any third-party beneficiary rights.
L.
Contractor will coordinate the activities of all Subcontractors. If the City performs
other work on the Project or at the Site with separate contractors under the City’s
control, Contractor agrees to reasonably cooperate and coordinate its activities
with those of the separate contractors so that the Project can be completed in an
orderly and coordinated manner without unreasonable disruption.
M.
On a daily basis, Contractor will prepare a Contractor’s Daily Report. The City’s
CPM Project Inspector or the Public Works Project Coordinator will provide a
sample report format to Contactor. The report will detail the activities that took
place during the course of the day, all equipment utilized and the number of hours
operated, and all personnel on the Site including Subcontractors. Unless
othen/vise arranged, the Daily Reports will be submitted on a daily basis to the
City’s CPM Inspector or the Public Work’s Project Coordinator. The Daily Reports
will also be made available to the City’s Representative upon request. Failure to
provide Daily Reports as arranged or requested above will result in the retention
of monthly progress payments until the Reports are brought up to date.
N.
In the event of noncompliance with this Artjcle 1.4, the City may require Contractor
to stop or suspend the construction in whole or in part. Any suspension due to
Contractor’s noncompliance wili not be considered a basis for an increase in the
Job Order Price or extension of the Job Order Time.
1.5. CONTROL OF THE WORK SITE
A.
Throughout all phases of construction, including suspension of the Work,
Contractor wiil keep the Site reasonably free from debris, trash and construction
wastes to permit Contractor to perform its construction services efficiently, safely
and without interfering with the use of adjacent land areas. Upon Substantial
Completion of the Work, or a portion of the Work, Contractor wiii remove ail debris,
trash, construction waste, materials, equipment, machinery and tools arising from
the Work or applicable portions of it to permit the City to occupy the Project or a
portion of the Project for its intended use.
B.
Dust Control. Contractor will take whatever steps, procedures or means required
to prevent abnornial dust conditions due to his construction operations in
connection with this Contract. The dust control measures will be maintained at all
times during construction of the Project(s) to the satisfaction of the City in
accordance with the requirements of the Maricopa County Health Department Air
Poiiution Controi Regulations and City of Scottsdale Supplement to M.A.G.
Standard Specifications together with applicable provisions of Federal and State
Law.
C.
Dust Control Coordinator. At any City construction site of 5 acres or more of
(Revised 07/09/25)
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Contract No. 2026-006-COS
Solicitation No. RFSQ-022025-236
disturbed surface area, subject to a permit issued by a Control Officer requiring
control of PM-10 emissions from dust generating operations, Contractor must have
at all times at the Site, at least one (1) Dust Control Coordinator trained in
accordance with the requirements of A.R.S. §49-474.05 during primary dust
generating operations that is related to the purposes for which the Dust Control
Permit was issued. The Dust Control Coordinator must have full authority to
ensure that dust control measures are implemented at the Site, including authority
to conduct inspections, deploy dust suppression resources, and modify or
shutdown activities as needed to control dust. The Dust Control Coordinator must
be responsible for managing dust prevention and dust control on the Site, including
the use of leaf blowers and street sweeping equipment. The Dust Control
Coordinator must have a valid Dust Training Certification Identification Card readily
accessible on the Site while acting as the Dust Control Coordinator.
The requirements described in the above Article do not apply if all three (3) of the
following circumstances are present:
1. The area of disturbed surface area is less than five (5) acres.
2. The previously disturbed areas are stabilized in accordance with the
requirements of any applicable County rules.
3. Contractor with the Dust Control Permit provides notice of the acreage
stabilized to the County Control Officer.
On sites with greater than one (1) acre of disturbed surface area. Contractor
holding a Dust Control permit issued by a County Control Officer, who is required
to obtain a single permit for multiple noncontiguous sites that is required to control
PM-10 emissions from dust generating operations must have at least one (1)
individual who is designated as a Dust Control Coordinator. The Dust Control
Coordinator must have a valid Dust Training Certification Identification Card readily
accessible on the Site while acting as the Dust Control Coordinator. The Dust
. Control Coordinator must be present on Site at all times during primary dust
generating activities that are related to the purposes for which the permit was
issued.
A Subcontractor who is engaged in dust generating operations at a Site that is
subject to a Dust Control Permit issued by a County Control Officer and that
requires the control of PM-10 emissions from dust generating operations must
register with the County Control Officer. The Subcontractor must have its
registration number readily accessible on the Site while conducting any dust
generating operations.
D.
Storage on Site. Only materials and equipment, which are to be used directly in
the Work, will be brought to and stored on the Site by Contractor. When equipment
is no longer required for the Work, it will be removed promptly from the Site.
Protection of construction materials and equipment stored at the Site from weather,
theft, damage and ail other adversity is solely the responsibility of Contractor.
E.
Waste Products. Contractor is responsible for the cost to dispose of all waste
products including excess earth material which will not be incorporated into the
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Work under this Contract. The waste product referred to will become the property
of Contractor. Contractor will provide for the legal disposal at an appropriate off
site location for all waste products, debris, etc., and will make necessary
arrangements for its disposal. Any disposal/dumping of waste products or unused
materials will conform to applicable Federal. State and Local Regulations.
F.
Contractor will supervise and direct the Work. Contractor will be solely responsible
for the means, methods, techniques, sequences and procedures of construction.
Contractor will employ and maintain on the Site a qualified supervisor or
superintendent who will have been designated in writing by Contractor as
Contractor’s Representative. The Contractor’s Representative will have full
authority to act on behalf of Contractor and all communications given to the
Representative will be as binding as if given to Contractor. The Representative
will be present on the Site at all times as required to perform adequate supervision
and coordination of the Work. Where appropriate all Provisions of M.A.G., Section
105.5, will be applicable.
G.
Abnormal Weather. In the event of abnormal weather conditions, such as
windstorms, rainstorms, etc.. Contractor will immediately inspect the Work and Site
and take all necessary actions to insure public access and safety are maintained.
H.
Damage to Property at the Site. Contractor will be responsible for any and all
damage or loss to property at the Site, except to the extent caused by the acts or
omissions of the City or its representatives, employees or agents and not covered
by insurance. The costs and expenses incurred by Contractor under this Article
will be paid as a Cost of the Work to the extent that these costs and expenses are
in excess of or are not covered by required insurance, and to the extent of any
deductibles, but they will not increase the Job Order Price.
I.
Damage to Property of Others. Contractor will avoid damage, as a result of
Contractor’s operations, to existing sidewalks, curbs, streets, alleys, pavements,
utilities, adjacent property, the work of separate contractors and the property of the
City. Contractor will repair any damage caused by the operations of Contractor,
and these costs will be paid as a Cost of the Work to the extent that the costs and
expenses are in excess of or are not covered by required insurance, and to the
extent of any deductible, but they will not increase the Job Order Price.
J.
Failure of Contractor to Repair Damage. Within ten (10) days written notice to
Contractor by the City, if Contractor fails to commence the repair of damage to
property as provided in Articles 1.5(H) and 1.5(1), and diligently pursue the repair,
then the City may elect to repair the damages at its own expense and to deduct
from payments due or to become due to Contractor, amounts paid or incurred by
the City in correcting the damage (provided Contractor has not commenced such
repair during the 10 day notice period).
1.6. SHOP DRAWINGS, PRODUCT DATA AND SAMPLES
A. Shop Drawings, Product Data, Samples and similar submittals are not Contract
Documents. The purpose of their submittal is to demonstrate for those portions of
the Work for which submittals are required the way Contractor proposes to
(Revised 07/09/25)
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conform to the information given and the design concept expressed in the Contract
Documents. Contractor will review, approve and verify that ali submittais meet the
intent of the Contract Documents.
B.
Three (3) copies of each Shop Drawing, Product Data, Sampie, and simiiar
submittals required by the Contract Documents will be delivered to the City in
compiiance with the approved scheduie so as to cause no delay in the Work or in
the activities of the City or of separate contractors. Submittals made by Contractor,
which are not required by the Contract Documents, may be returned without
action.
C.
Contractor will perform no portion of the Work requiring submittai and review of
Shop Drawings, Product Data, Samples, or similar submittals until the respective
submittal has been approved by the City. All Work will be in compliance with
approved submittals. Contractor will not be relieved of responsibility for any emors
or omissions in Shop Drawings, Product Data, Samples, or similar submittals by
the City's approval. Deviation from the original specifications will be specifically
noted on the submittal to the City and the City will be allowed seven (7) days to
approve or reject any deviations.
D.
By approving, verifying and submitting Shop Drawings, Product Data, Samples
and similar submittals. Contractor represents that Contractor has detennined and
verified materials, field measurements and field construction criteria, or will do so,
and has checked and coordinated the information contained within the submittals
with the requirements of the Work and of the Job Order.
E.
Contractor will not be relieved of responsibility for deviations from requirements of
the Job Order by the City's approval of Shop Drawings, Product Data, Samples or
similar submittals unless Contractor has specifically informed the City in writing of
the deviation at the time of submittal and the City has given written approval to the
specific deviation. Contractor will not be relieved Of responsibility for errors or
omissions in Shop Drawings, Product Data, Samples, or similar submittals by the
City’s approval.
F.
Contractor will direct specific attention. In writing or on resubmitted Shop Drawings,
Product Data, Samples, or similar submittals, to revisions other than those
requested by the City on previous submittals.
G.
Informational submittals upon which the City is not expected to take responsive
action may be so identified in the Contract Documents.
H.
When professional certification of performance criteria of materials, systems or
equipment is required by the Job Order, the City will be entitled to rely upon the
accuracy and completeness of the calculations and certifications.
1.7. QUALITY CONTROL, TESTING AND INSPECTION
A. Inspection. The City’s liispectors may be stationed on the Site to report to the
City’s Representative, or designee, as to the progress of the Work. The City’s
Representative, or designee^ may also report as to the manner in which the Work
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is being performed and report whenever it appears that material furnished or Work
performed by Contractor fails to fulfill the requirements of the specifications, this
Contract or the Job Order. The Inspector may direct the attention of Contractor to
any failure or infringement but this inspection will not relieve Contractor from any
obligation to furnish acceptable materials or to provide completed construction that
complies with the Contract or the Job Order in every way. The Inspector is for the
purpose of assisting the City’s Representative and should not be confused with an
Inspector with a City regulatory agency or with an inspector from a laboratory under
Article 1.8.
B.
in case of any dispute arising between the Inspector and Contractor as to material
furnished or the manner of performing the Work, the Inspector will have the
authority to reject materials or suspend the Work until the question and issue can
be referred to and decided by the City. Inspectors are not authorized to revoke,
alter, enlarge, relax, or release any requirements of the specifications, inspectors
will in no case act as foremen or perform other duties for Contractor or interfere
with the management of the Work by Contractor.
C.
Inspection or supervision by the City’s Representative, or designee, will not be
considered as direct control of an individual worker or the Work. The direct control
will be solely the responsibility of Contractor.
D.
The furnishing of these services for the City will not make the City responsible for
or give the City control over construction means, methods, techniques, sequenced
procedures or for safety precautions or programs or responsibility for Contractor’s
failure to perform the Work in compliance with the Contract Documents.
1.8. MATERIALS TESTING
All materials used in the Work will be new and unused, unless otherwise noted, and will
meet all quality requirements of the Job Order.
A.
All construction materials to be used on the Work or incorporated into the Work,
equipment, plant, tools, appliances or methods to be used in the Work may be
subject to the inspection and approval or rejection of the City. Any materials
rejected by the City will be removed immediately and replaced in a manner
acceptable to the City without increasing the Job Order Price.
B.
The procedures and methods used to sample and test material will be determined
by the City. Unless otherwise specified, samples and tests will be made in
compliance with the following: The City of Scottsdale Minimum Sampling
Frequency Guide, the City of Scottsdale Material Testing Manual and the standard
methods of AASHTO or ASTM, DSPM and MAG supplements.
C.
The City will select a pre-qualified City or Independent Testing Laboratory and will
pay for initial City Acceptance Testing.
1. When the first and subsequent tests indicate noncompliance with the Job
Order, the cost associated with that noncompliance will be incurred by
Contractor without increasing the Job Order Price.
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2. When the first and subsequent tests indicate noncompliance with the Job
Order, all retesting will be performed by the same testing agency. The cost
associated with the noncompliance will be incurred by Contractor without
increasing the Job Order Price.
3. Contractor will cooperate with the selected testing laboratory and all others
responsible for the testing and inspecting of the Work and will provide them
access to the Work at all times.
D.
At the option of the City, materials may be approved at the source of supply before
delivery is started.
E.
Code compliance testing and inspections required by codes or ordinances, or by
a plan approval authority, and which are made by a legally constituted authority,
will be incurred by Contractor without increasing the Job Order Price, unless
otherwise provided in the Job Order.
F.
Contractor’s convenience and quality control testing and inspections will be foe
sole responsibility of Contractor and incurred by Contractor without increasing the
Job Order Price..
G.
Ail soils and materials testing will be performed and paid for by the City. The City
will order tests and distribute test results for all construction areas. The City will
be responsible for ordering testing and will distribute test results within 24 hours of
receipt.
1.9. PROJECT RECORD DOCUMENT/AS BUILTS
A. During the construction period. Contractor will maintain at the Site a set of Blueline
or Blackiine Prints of the Construction Document drawings and Shop Drawings for
Project Record Document purposes.
1. Contractor will mark these drawings to indicate the actual installation where
the installation varies appreciably from foe original Construction
Documents. Contractor will give particular attention to information on
concealed elements, which would be difficult to Identify or measure and
record later. Items required to be marked include but are not limited to:
Dimensional changes to the drawings.
Revisions to details shown on drawings.
Depths of foundations below first floor.
Locations and depths of underground utilities.
Revisions to routing of piping and conduits.
Revisions to electrical circuitry.
Actual equipment locations.
Duct size and routing.
Locations of concealed Internal utilities.
Changes rnadehy Adjustment.
Details not on original Contract Drawings.
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2. Contractor will mark completely and accurately Project Record Documents,
prints of Construction Documents or Shop Drawings; whichever is the most
capable of indicating the actual physical condition. Where Shop Drawings
are marked, show cross-reference on the Construction Documents
location.
3. Contractor will mark sets of Project Record Drawings Prints with red
erasable colored pencil.
4. Contractor will note Request for Information (RFI) Numbers, American
Standards Institute (ASl) Numbers and Adjustment Numbers, etc., as
required to identify the source of the change to the Construction
Documents.
5. Contractor will at the time of Substantial Completion, submit Project Record
Drawing Prints and Shop Drawings to the City or its representative for
review and comment.
B. Immediately upon receipt of the reviewed Project Record Drawings from the City,
Contractor will correct any deficiencies or omissions to the drawings and prepare
the following for submission to the City;
1. A complete set of PDF electronic files of all Project Record Drawing Print
prepared in Microstation format compatible with City of Scottsdale CADD
requirements. If a Design Professional is contracted with, the Design
Professional will provide files of the original Construction Documents to
Contractor for use in preparing these final Project Record Documents, or
Contractor may contract with the Design Professional to revise and update
the electronic drawing files. Each drawing will be clearly marked with “As-
Built Document” and shall be certified by an Arizona Registered Land
Surveyor.
2. A complete set of As-Built reproducible mylars from the final Microstation
drawings and an electronic pdf file on CD are required.
3. The original copy of the Project Record Drawings with redline mark-ups.
1.10. PROJECT SAFETY
A. The Occupational Safety and Health Act (OSHA) and the City of Scottsdale loss
control procedures are the minimum standard for safety and environmental
protection and must be fully complied with at all times. All Work will be performed
in compliance with all applicable federal, state and local laws, ordinances, statutes,
rules and regulations including ADOSH policies and procedures. Contractor may
be required to attend a City safety briefing session at the pre-construction meeting.
The session will be attended by the Contract Administrator, the designated Risk
Management staff, and a Contractor’s Representative. Contractors that violate the
aforementioned rules and regulations may be subject to job shutdown and or
removal from City facilities.
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B.
The Risk Management Division makes avaiiable a packet which contains the City’s
OSHA compiiance guidelines, emergency evacuation, the City’s safety and health
plan, and other safety information.
C.
Contractor will conduct tailgate safety meetings regularly to ensure that safety on
the job is given priority.
D.
Contractor will contact the City’s Representative and the Risk Management
Division within twenty-four (24) hours of the occurrence of an accident or injury
arising out of Contractor’s Work under this Contract.
E.
Contractor employees are encouraged to abate or remedy any unsafe act or
condition, which may arise in the course of Contractor’s Work under this Contract.
F.
The City reserves the right to conduct safety audits at the Site and stop unsafe
acts at any time. In addition, the City will be notified within four (4) hours should
any OSHA inspection occur at a Site.
G.
Contractor recognizes the importance of performing the Work in a safe manner so
as to prevent damage, injury or loss to:
1. All individuals at the Site, whether working or visiting;
2. The Work, including materials and equipment incorporated into the Work
or stored on-Site or off-Site; and
H.
I.
J.
K.
3. All other property at the Site or adjacent to the Site.
Contractor assumes responsibility for implementing and monitoring all safety
precautions and programs related to the performance of the Work.
Contractor will, before commencing construction, designate a Safety
Representative with the necessary qualifications and experience to supervise the
implementation and monitoring of all safety precautions and programs related to
the Work. Unless otherwise required by the Contract Documents, Contractor’s
Safety Representative will be an individual stationed at the Site who may have
responsibilities on the Project in addition to safety.
Contractor must provide OSHA 300A Summary log information including total
recordable cases, total case rates, and lost workday incident rates for the past two
(2) calendar years. The Safety Representative shall make routine daily
inspections of the Site and shall hold weekly safety meetings with Contractor’s
personnel. Subcontractors and others as applicable.
Contractor will immediately report in writing any safety-related injury, loss, damage
or accident arising from the Work to City’s Representative and, to the extent
mandated by Legal Requirements, to all government or quasi-governmental
authorities having jurisdiction over safety-related matters involving the Project or
the Work.
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L.
Contractor’s responsibility for safety under this Article 1.10 is not intended in any
way to relieve Subcontractors and Sub-Subcontractors of their own contractual
and legal obligations and responsibility for:
1. Complying with all Legal Requirements, including those related to health
and safety matters; and
2. Taking all necessary measures to implement and monitor all safety
precautions and programs to guard against injury, losses, damages or
accidents resulting from their performance of the Work.
M.
Contractor and Subcontractors must agree to provide Material Safety Data Sheets
for all substances that are delivered to the City of Scottsdale, that come under the
Occupational Safety and Health Administration Toxic and Hazardous Substances
- Hazard Communication Standard, 29 CFR 1910.1200 Hazard Communication
(reference Occupational Safety and Health Standards, Subpart Z Toxic and
Hazardous Substances - Hazardous Communication Standard).
All Contractors and all Subcontractors using chemicals on City of Scottsdale
property shall use only the safest chemicals, with the least harmful ingredients.
These chemicals shall be approved for use by a City of Scottsdale representative
before bringing them on the property.
Contractor and all Subcontractors shall make every attempt to apply approved
chemicals with highly volatile organic compounds, outside of working hours.
Adequate ventilation will be used at all times during the application of these
approved chemicals.
In conjunction with the Occupational Safety and Health Standards, Subpart Z Toxic
and Hazardous Substances - Hazard Communication Standard, 29 CFR
1910.1200 Hazard Communication, Contractor and Subcontractors are informed
of the presence of (or possible presence of) chemicals in the area where the Work
requested will be performed. It is the responsibility of Contractor or all selected
Subcontractors to contact the City of Scottsdale for specific information relative to
the type of chemicals present and location of appropriate Material Safety Data
Sheets.
Unless included in the Work, if Contractor encounters onsite material which he
reasonably believes to contain asbestos, polychlorinated biphenyl (PCB), or other
hazardous substances or materials regulated by Public Health Laws, it will
immediately stop Work and report the condition to the City.
If the material is found to contain asbestos, PCB or other hazardous substances
or materials regulated by Public Health Laws, Contractor will not resume Work in
the affected area until the material has been abated or rendered harmless.
Contractor and the City may agree, in writing, to continue Work in non-affected
areas onsite. An extension of the Contract Time may be granted as provided in
Article 5.
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1.11. WARRANTY
The provisions of M.A.G., Section 108.8 will apply with the following additional
requirements;
1. Should Contractor fail to begin repairs or corrective work within fourteen
(14) calendar days after receipt of written notice from the City, the City may
perform the necessary work and Contractor agrees to reimburse the City
for the actual cost.
2. The warranty period on any part of the Work repaired or replaced will be
extended for a period pf pne (1) year from the date of the repair or
replacement.
3. This warranty will not apply to damage caused by normal wear and tear or
by acts beyond Contractor's control.
A.
Contractor’s warranty obligation excludes defects caused by abuse, alterations, or
failure to maintain the Work by persons other than Contractor or anyone for whose
acts Contractor may be liable.
B.
Contractor’s warranty obligation will be for one (1) year.
C.
Nothing in this warranty is intended to limit any manufacturer’s wamanty which
provides the City with greater warranty rights than those found In this Article 1.11
or the Contract Documents. Contractor will provide the City with all manufacturers’
warranties upon Substantial Completion of each Job Order.
1.12. CORRECTION OF DEFECTIVE WORK
A. Contractor agrees to correct any Work that is found to not be In conformance with
the Contract Documents, including that part of the Work subject to Article 1.11
above, within a period of one (1) year from the date of Substantial Completion of
the Woric or any portion of the Work, or within any longer period to the extent
required by the Contract Documents. All rembval/replacement work, as directed
by the City to Contractor, in compliance with this Contract, MAG standards and
City codes will have cost determinations by the City and be issued as a Job Order
Adjustment to the Project. A Progress Payment, or partial or entire use or
occupancy of the Project by the City will not constitute acceptance of Woric not in
accordance with the Contract Documents.
During the Work, Contractor shall take meaningful steps to begin correction pf any
nonconforming Work as notified by the City. This includes the correction, removal
or replacement of the nonconforming Work and any damage caused to other parts
of the Work affected by the nonconforming Work. If Contractor fails to begin the
necessary steps during the Work, the City, in addition to any other remedies
provided under the Contract Documents, may provide Contractor with written
notice that the City will commence correction of any nonconforming Work, at its
discretion, through its employees, agents pr other third parties.
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Contractor shall take meaningful steps to begin correction of nonconforming Work
subject to Article 1.11 above. These measures include but are not limited to timely
correction of the Work. If Contractor fails to initiate necessary measures for this
Work within seven (7) days of receipt of written notice from the City, the City, in
addition to any other remedies provided under the Contract Documents, may
provide Contractor with written notice that the City will begin correction of the
nonconforming Work, at its discretion, through its employees, agents or other third
parties.
B.
If the City does perform this corrective Work, Contractor will be responsible for all
reasonable costs incurred by the City in performing the correction without
increasing the Job Order Price.
C.
Contractor shall immediately respond to any nonconforming Work that creates an
emergency.
D.
The one (1) year period referenced in Article 1.11 above applies only to
Contractor’s obligation to correct nonconforming Work and is not intended to
constitute a period of limitations for any other rights or remedies the City may have
regarding Contractor’s other obligations under the Contract Documents.
1.13. SUBCONTRACTOR AND MAJOR SUPPLIER SELECTIONS
A.
Contractor shall select major Subcontractors and major Suppliers, subject to first
obtaining the City’s approval. 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 Contractor, but the City
must approve in writing the selection of all Subcontractors. In any case. Contractor
is solely responsible for the performance of the selected Subcontractors/Suppliers.
Contractor shall prepare a Subcontractor/Supplier selection plan and submit the
plan to the City for approval or Contractor may use the City’s plan as described in
Article 1.13(B). This Subcontractor selection plan will identify those Subcontractor
trades anticipated to be selected by qualifications only as provided in Article
1.13(B) and those Subcontractor trades anticipated to be selected by qualifications
and competitive bid as provided in Article 1.13(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.
B.
Selection by qualifications only - The City may approve the selection of a
Subcontractor(s) or Supplier(s) based only on their qualifications when Contractor
can demonstrate it is in the best interest of the Project.
1. Contractor will apply the 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 Contractor’s own selection plan approved by the City or the
City’s selection plan as provided in this Article 1.13(B).
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2. Contractor will negotiate costs for services/supplies from the
Subcontractor(s)/Supplier(s) under the approved qualifications only
method.
City Selection Plan:
3. Contractor may elect to comply with the following City procedures in its
selection of Subcontractor(s) or Suppliers(s) based oh qualifications pnly:
a. The Request for Qualifications (RFQ) will contein the best
description of the services or material desired; and
b. A statement that only unpriced statements of qualifications will be
considered; and
c. 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.
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 pemiitted 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 Contractor. The contents of unpriced statements of
qualifications will not be disclosed to uhautoorized persons.
(Revised 07/09/25)
RliioTnU Riinrilo TH* 7fTP\/nlrv/f^
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 shall be in writing, state the basis of the
determination and be retained by Contractor. Contractor will notify the
bidder of the determination and the bidder will not be given an opportunity
to amend its statement of qualifications further.
7. Contractor may conduct discussions with any bidder who submits an
acceptable or potentially acceptable statement of qualifications. During
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discussions, Contractor will not disclose any information derived from any
other bidder’s statement of qualifications.
8. Contractor will negotiate costs for services/supplies from the
Subcontractor(s)/Supplier(s) selected under this method.
C. Selection by qualifications and competitive bid - Contractor will apply the
City’s Subcontractor selection plan stated above or Contractor’s selection plan, if
previously approved by the City, in Contractor’s evaluation of the qualifications of
Subcontractor(s)/Supplier(s) and will provide the City with the selected process to
prequalify prospective Subcontractors/Suppliers. Selection may not be based on
price alone. All Work by 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 1.13(B) above. Contractor may
elect to comply with the following procedures in step 2 of its competitive bid
process.
1. Contractor 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. Contractor 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/Suppiiers will be allowed.
2. If the City objects to any nominated Subcontractor/Supplier or to any self-
performed Work for good reason. Contractor will nominate a substitute
Subcontractor/Supplier that is acceptable to the City.
3. Contractor will distribute Drawings and Specifications, and when
appropriate, conduct a pre-bid conference with prospective Subcontractors
and Suppliers. Contractor 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 Contractor desires to self-perform certain portions of the Work, it must
request to be one of the approved Subcontractor bidders for those specific
bid packages. Contractor’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 compliance with the Project Schedule or
cost, Contractor may self-perform Work without bidding or re-bidding the
Work. (For horizontal construction, as defined in A.R.S. § 34-101(16),
Contractor must self-perform not less than 45% of the Work as required by
A.R.S. § 34-603(0(3).)
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. Contractor will nominate a substitute Subcontractor or Supplier,
preferably if this option is still available, from those who submitted Subcontractor
bids for the Work affected. Once the substitute Subcontractors and Suppliers are
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consented to by the City, Contractor’s proposed price for the Work or portion of the
Work will be correspondingly adjusted to reflect any higher or lower costs from any
substitution. Under no circumstances wili the City’s objection or comment on any
Subcontractor or Supplier relieve Contractor of its sole responsibility for control
over the methods, means and processes by which the Work Is accomplished. The
City must approve in writing the selected Subcontractor Selection Plan before work
commences on any Job Order.
ARTICLE 2 - CITY’S SERVICES AND RESPDNSIBIUTIES
2.1
INFORMATION AND SERVICES
A. The City will furnish Contractor, at no cost to Contractor, the following information
or services for this Project:
1. One copy of data pertinent to the Work. However, Contractor will be
responsible for searching the records and requesting information required
for the Project.
2. All available data and information relative to policies, standards, criteria,
studies, etc.
3. Project funding and budget allocations and any changes affecting the
funding or budget allocations.
4. For purpose of deterrtiining the Job Order Price, any Plans and
Specifications.
5. For purpose of Project Record Drawing Prints, a CADD file of the
Construction Documents in Microstation format compatible with City of
Scottsdale CADD requirements.
2.2
CITY’S REPRESENTATIVE
A. The City’s Representative wili be responsible for providing City-supplied
information and approvals in a timely manner to permit Contractor to fulfill its
obligations under toe Contract Documents.
2.3
DESIGN PROFESSIONAL SERVICES
A.
The City may contract separately with one or more Design Professionals to provide
architectural or engineering design of the Project in accordance with the provisions
of A.R.S. §34-603.
B.
The City may contract with the Design Professional to provide some or all of the
following services during the performance of the Work:
1. The Design Professional may provide administration of toe Work. The City
and Contractor will endeavor to communicate through the Design
Professional. Communications by and with the Design Professional's
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consultants will be through the Design Professional.
2. The Design Professional may visit the Site at intervals appropriate to the
stage of construction to becorhe generally familiar with the progress and
quality of the completed Work and to determine in general if the Work is
being performed in accordance with the Contract Documents. The Design
Professional will keep the City informed of progress of the Work and will
endeavor to guard the City against defects and deficiencies in the Wprk.
3. Upon Contractor’s submittals, the Design Professional may review and
approve or take other appropriate action on submittals as Shop Drawings,
Product Data and Samples in accordance with Article 1.6.
4. All drawings produced for projects considered to be performed under
Contractor are the property of the City and are owned in whole by the City
for any and all future use and considerations.
2.4
CITY'S SEPARATE CONTRACTORS
The City is responsible for a|l Work performed on the Project or at the Site by separate
contractors under the City’s control. The City will contractually require its separate
contractors to cooperate with and coordinate their activities so as not to interfere with
Contractor in order to enable Contractor to timely complete the Work consistent with the
Contract Documents. Contractor agrees to reasonably cooperate and coordinate its
activities with those of the separate contractors so that the Project can be completed in
an orderly and coordinated manner without unreasonable disruption.
2.5
FURNISHING OF SERVICES AND INFORMATION
A.
The City will be responsible for the payment or waiver of the following:
1. City review and permit(s) fees for building, encroachment, and demolition
permits including City, State and County.
2. City review fees for grading and drainage, water, sewer and landscaping.
3. Utility design fees or permanent services fees are paid by the City, but all
submittals are the responsibility of Contractor.
4. Obtaining Nationwide 404 Permits.
5. City Development Fees.
B.
Unless expressly stated to the contrary in the Contract Documents, the City will
provide, at its owri cost and expense, for Contractor’s information the following:
1. To the extent available, surveys describing the property, boundaries,
topography and reference points for use during construction, including
existing service and utility lines;
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2. Temporary and permanent easements, zoning and other requirements and
eneumbrances affecting land use. necessary to permit the proper design
and construction of the Project and enable Contractor to perform the Work;
3. A legal description and street or physical address of the Site;
4. To the extent available, as-built record or historical drawings of any existing
structures at the Site;
5. To the extent available, environmental studies, reports and impact
statements describing the environmental conditions. Including hazardous
materials, in existence at the Site; and
6. To the extent available. Geotechnical studies describing subsurface
conditions and other surveys describing other latent or concealed physical
conditions at the Site.
The City will provide all City standards and guidelines, supplementary
conditions and special provisions that Will be included in the plans and
specifications for the Project. These may include but are hot limited to:
disposal of surplus material, special security provisions, investigation of
underground facilities, traffic controls and regulations, special quality control
testing and termite treatment requirements.
2.6 PROJECT MANAGEMENT SERVICES
A.
The City may contract separately with one or more Technical Consultant to
provide project management assistance for the Project. The Technical
Consultant’s contract as well as contracts with other firms hired by the City will be
furnished to Contractor. Contractor vwll not have any right, however, to limit or
restrict any Project modifications that are mutually acceptable to the City and
Technical Consultant.
B.
The Technical Consultant services will augment the City staffing resources to
effectively manage the objectives of the City and the Project with the goal of
managing the key Project communication, cost and time parameters.
C.
The Technical Consultant may provide pre-programming arid design standards.
D.
The city may contract with the Technical Consultant to provide any or all of the
services or functions of the City’s project manager during the performance of the
construction.
2.7 PERMIT REVIEW AND INSPECTIONS
For clarification, permitting activities are handled by the City of Scottsdale
Developmental Services, Fife and Planning Departments. Obtaining any permits and
submittals are the responsibility of the City.
(Revised 07/09/25)
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2.8 UTILITY COMPANY COORDINATION
Contractor will be responsible for coordinating utility design work for permanent service
to the Project and will ensure that the work takes place in a timely manner and does not
impact the Project schedule. Any utility design fees for permanent services to a Job
Order will be paid by the City In accordance with Article 2.6.
ARTICLE 3 - CONTRACT TIME AND JOB ORDER TIME
3.1 Contract TIME
A
B.
The initial term of this Contract will be for two (2) years and will commence on the
Effective Date, with the option to extend for three (3) additional years in one (1)
year increments.
1. The option to extend may be exercised based on Contractor’s successful
performance and the needs of the City.
2. A Contract Modification will be processed for each extension and will
commence on or about the anniversary date of the Contract. Each extension
must be authorized by the Contract Administrator and Purchasing Director and
need not return to the City’s Council for approval.
The Contract will remain in full force and effect during the performance of any Job
Order.
3.2
JOB ORDER TIME
A.
Job Orders may be Issued at any time during the term of this Contract.
B.
Each individual Job Order will include a Job Order Notice-to-Proceed date.
Duration Of the Work as determined in accordance with this Article 3.2 and a
calculated Substantial Completion date.
C.
Contractor agrees that it will commence performance of the Work and achieve the
approved Job Order Time;
D.
Job Order Time may be subject to adjustment in accordance with Article 5.
3.3
SUBSTANTIAL COMPLETION
A.
Substantial Completion of each Job Order is when all construction has been
completed with the exception of final inspection punch list work and further defined
in Article 12. The purpose of granting or acknowledging Substantial Completion is
to stop Job Order Time.
B.
Before notifying the City in accordance with Article 3.3(C), Contractor will inspect
the Work and prepare and submit to the City a comprehensive list of items to be
completed or corrected. Contractor will proceed promptly to complete and correct
items on the list. Failure to include an item on the list does not alter the
(Revised 07/09/25)
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responsibility of Contractor to complete all Work in accordance with the Contract
Documents.
C.
Contractor will notify the City when it believes a Job Order, or to the extent
permitted in the Contract Documents, a portion of the Job Order, is substantially
complete.
D.
Within five (5) days of the City’s receipt of Contractor’s notice in accordance with
;>a1icle 3.3(C), the City and Contractor will jointly inspect the Work to confirm
Substantial Completion.
E.
Once Substantial Completion of the Work is confirmed in accordance with Article
3.3(D), the City will prepare and issue a Certificate of Substantial Completion that
will state:
1. The date of Substantial Completion of the Work or portion of the Work;
2. The remaining items of Work that have to be completed within thirty (30)
calendar days before Final Acceptance;
3. Provisions (to the extent not already provided in the Contract Documents)
establishing the City’s and Contractor’s responsibility for the Project’s
security, maintenance, utilities and insurance pending Final Acceptance.
F.
The City, at its option, may use a portion of the Work which has been determined
to be substantially complete provided, however, that:
1. Certificate of Substantial Completion has been issued for the portion of
Work addressing the items in Article 3.3(E)(2).
2. Contractor and the City have obtained the consent of their sureties and
insurers, and to the extent applicable, the appropriate government
authorities having jurisdiction over the Project, and
3. The City and Contractor agree that the City’s use or occupancy will not
interfere with Contractor’s completion of the remaining Work required under
Article 3.3(E).
3.4 PUNCH LIST PREPARATION
A minimum of seven (7) days before Substantial Completion, Contractor, in conjunction
with the City, will prepare a comprehensive list of Punch List items, which the City may
edit and supplement. Contractor will proceed promptly to complete and correct the
Punch List items. Failure to include an item on the Punch List does not alter the
responsibility of Contractor to complete all Work in accordance with the Contrad
Documents. Warranties required by the Contract Documents will not commence until
the date of Final Acceptance, unless othenwise provided in the Contract Documents.
Seven (7) days before the City issues its Final Acceptance Letter, Contractor will deliver
to the City all Operation and Maintenance Manuals necessary for the City to assume
responsibility for the operation and maintenance of that portion of the Work.
(Revised 07/09/25)
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3.5
FINAL ACCEPTANCE
Upon receipt of vwitten notice that the Work or identified portions of the Work is ready for
final inspection and acceptance, the City and Contractor will jointly inspect to verify that
the remaining items of Work have been completed as required under Article 3.3(E). The
City will issue a Final Acceptance Letter.
3.6
LIQUIDATED DAMAGES
A.
Contractor understands that if Substantial Completion is not attained within the Job
Order Time, as may be adjusted for each Job Order, the City will suffer damages,
based on the anticipated loss caused by the breach and the difficulty in determining
and accurately specifying the darpages. Contractor agrees that if Substantial
Completion is not attained within the Job Order Time as adjusted. Contractor will
pay ^e City the amount prescribed in Article 3.6(B) below as liquidated damages
for each Day that Substarrtiai Completion extends beyond the date determined by
the Job Order Time as adjusted.
B.
The following wjll be the liquidated damages for each Job Order unless a specific
amount has been determined for each individual Job Order.
LIQUIDATED DAMAGES
Original Job Order Amount
$00
From more than To and including Calendar Day or Fixed Date
Daily Charges
%
25,001
$25,000
$200
50,000
250
50,001
100,000
280
100,001
500,000
430
500,001
750,000
500
750,001
1,000,001
1,000.000
570
1,250,001
1,250,000
1,500,000
610
650
ARTICLE 4- CONTRACT PRICE AND JOB ORDER PRICE
4.1 CONTRACT PRICE
The fee for individual projects performed under this contract will be negotiated on a
project-by-prpject basis as Job Orders. The amount paid to the Contractor under this
contract for all Job Orders shall not exceed $4,000,000 for the initial two (2) year term
and $2,000,000 for any successive one (1) year contract extension.. The Contractor
agrees at its own cost and expense, to do all the Work as specified in the Contract
Documents and any Work Contingent to the Contract and necessary for the construction
of the improvements. The Contractor wiil completely construct the Work and install the
materials, free and clear of all claims, liens, and charges of any kind, in the manner and
under the conditions specified within the time or times stated in each Job Order.
A. In no event will any individual Job Order Price exceed $1,000,000. If the City opts
to extend this Contract in accordance with Article 3.1 (A), the Contract Modification
may increase the maximum amount, if necessary, at that time.
(Revised 07/09/25)
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B.
The Job Order Price is subject to Adjustments made in accordance with Article 5.
C.
Unless otherwise provided in the Contract Documents, the Job Order Price is
considered to include all sales, use, consumer and other taxes throughout the term
of this Contract, whether or not yet effective or merely scheduled to go into effect
D.
Contractor must secure and maintain, during the life of the Contract, State of
Arizona and City of Scottsdale Transaction Privilege (sales) Tax Licenses.
To obtain a State of Arizona Privilege (Sales) Tax License Application, please go
to the following website:
https://azdor.aov/transaction-privileae-tax/tDt-license/aDDlvinQ-tDt-license
To obtain a City of Scottsdale Transaction (Sales) Tax License Application, please
go to the following website:
https://www.scottsclaleaz.gov/taxes/resources
Contractor must demonstrate cfompliance with the E-Verify Program as provided
in Article 11.33 and as required by A.R.S. §41-1080, as amended, before Issuance
of any License by the City..
4.2 RESPONSIBIUTY FOR PRIVILEGE (SALES) TAXES
A. Contractor is responsible for payment of all applicable State of Arizona and City of
Scottsdale transaction privilege (sales) taxes due on construction income whether
or not these taxes are specifically separated in the bid amount. The taxes are to
be reported on either a progressive billing (accrual) basis or cash receipts basis,
depending on the method chosen at the time application was made for the
Privilege (sales) Tax License.
City Privilege (sales) tax exemptions/deductions may be applicable to certain
projects. Contractor is advised to consider this as it prepares its bid. Please
review, in detail. Sections 415,465, and 110 of the Scottsdale Revised City Code,
Appendix C to determine if exemptions/ deductions are applicable. For tax
guidance, please reference the City Code and other tax resources at the following
website:
httD://www.scottsdaleaz.Qov/taxes/
The State of Arizona has similar exemptions; please reference A.R.S. Title 42 at
the following website:
httD://www.azlea.state.az.us/ArizonaRevisedStatutes.asD?Title=42
For further questions regarding tax treatment, please contact the Arizona
Department of Revenue at 602-255-2060 and the City of Scottsdale Tax & Audit
Section at 480-312-2768.
(Revised 07/09/25)
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ARTICLE 5 - CHANGES TO THE CONTRACT PRICE AND TIME
5.1 DELAYS TO THE WORK
A.
Delays may be compensable, concurrent, excusable or non-excusable as defined
in Article 12.
B.
if Contractor Is delayed in the performance of the Work due to acts, omissions,
conditions, events, or circumstances beyond its control and due to no fault of its
own or those for whom Contractor is responsible, the Job Order Time for
performance may be reasonably extended by Job Order Adjustment.
C.
Contractor must request a Job Order Adjustment by written notice, including an
estimate of the probable effect of delay on progress of the Work. In the case of a
continuing delay, only one request is necessary.
D.
Written notice will be received within five (5) days of the commencement of the
cause of the delay. If written notice is received more than five (5) days after
commencement of the cause of the delay, the period of delay will be considered
to commence fourteen (14) days before the giving of any notice.
E.
If adverse weather conditions are the basis for a Job Order Adjustment request,
the requests shall be documented by data substantiating that weather conditions
were abnormal for the period of time and could not have been reasonably
anticipated, and that weather conditions had an adverse effect on the scheduled
construction.
F.
Permitting Contractor to proceed to complete any Work, or any part of the Work,
after the date to which the time of completion may have been extended, will in no
way act as a waiver on the part of the City of any of its legal rights.
G.
In the event Contractor incurs expenses related to a delay for which the City is
responsible. Contractor and the City will negotiate to determine the amount of any
damages. This provision is made in accordance with A.R.S. §34-609(E), as
amended, and is effective only if the delay caused by the City is unreasonable
under the circumstances and was not within the contemplation of the parties. 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.
H.
In addition to Contractor’s right to request a time extension for those events stated
in this Article 5.1, Contractor may also be entitled to an appropriate adjustment of
the Job Order Price provided, however, that the Job Order Price will not be
adjusted for those events stated in this Article that are beyond the control of both
Contractor and the City, including the events of war, acts of terrorism, floods, labor
disputes (but not including Contractor’s own work force and those of its
subcontractors), earthquakes, epidemics, excessive inclement weather conditions
not reasonably anticipated.
(Revised 07/09/25)
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5.2 DIFFERING SITE CONDITIONS
5.3
5.2.1. If Contractor encounters a Differing Site Condition(s), Contractor may be entitled
to an adjustment in the Job Order Price or Job Order Time(s) to the extent
Contractor’s cost or time of performance are the direct result of a Differing Site
Condition(s).
5.2.2. Upon encountering a Differing Site Condition, Contractor shall provide prompt
written notice to the City of the condition, which notice will not be later than seven
(7) days after the condition has been encountered. Final costs must be
submitted within thirty (30) days after notice is received by the City, unless
extended by written agreement of the parties. Contractor must give the City’s
Contract Administrator written notice of and an opportunity to observe such
condition before disturbing or altering the Differing Site conditions. The failure
of Contractor to give written notice and make the Claim as required by this Article
and Article 7.1.5 shall constitute a waiver by Contractor of any rights arising out
of or relating to such Differing Site Conditions.
5.2.3. In order for Contractor to obtain any additional compensation or time extensions
for Differing Site Conditions, Contractor must demonstrate that it encountered a
material difference at the Site, as defined in Article 12, that required it to expend
additional cost or time. Contractor wi|l also establish that it actually and
reasonably relied upon the representations found in the Contract Documents
concerning the Site conditions.
APPLICATION FOR EXTENSION OF TIME
5.3.1 If performance by Contractor is delayed for a reason set forth in Article 5,
Contractor may be allowed a reasonable extension of time in confomnanoe with
this Article. Before Contractor’s time extension request may be considered.
Contractor shall notify the City of the condition which allegedly has caused or is
causing the delay, arid shall submit a written application to the City identifying:
1.
2.
3.
4.
5.
Liquidated damage assessment rate, as specified in the Contract;
Original Job Order Price;
Original Job Order Time;
Any previous Job Order Adjustments granted (number and duration); and
The extension of time requested.
5.3.2 in addition, the application for extension of time shall set forth in detail:
1.
The nature of each alleged cause of delay in completing the Work;
1.
The date upon which each such cause of delay began and ended and the
number of dates attributable to each such cause;
(Revised 07/09/25)
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2.
A statement that Contractor waives all claims except for those delineated
in the application, and the particulars of any claims which Contractor does
not agree to waive. For time extensions for Substantial Completion and
final completion payments, the application shall include a detailed
statement of the dollar amounts of each claim Item reserved; and
3.
A statement indicating Contractor’s understanding that the time extension
is granted only for purposes of permitting continuation of Contract
performance and payment for Work perfonned and that the City retains its
right to conduct an investigation and assess liquidated damages as
appropriate in the future.
5.4
ERRORS, DISCREPANCIES AND OMISSIONS
A.
If Contractor observes errors, discrepancies or omissions in the Contract
Documents, It will promptly notify the City and request clarification. Contractor will
provide a copy of this notice to the City’s Representative.
B.
if Contractor proceeds vyith the Work affected by the errors, discrepancies or
omissions, vyithout receiving any clarifications, it does so at its own risk. Adjustments
involving these circumstances made by Contractor before clarification by the Design
Professional will be at Contractor’s risk.
5.5
CITY REQUESTED CHANGE IN WORK
A.
The City reserves Oie right to make, at any time during the progress of the Work,
any alterations as may be found necessary or desirable.
B.
These alterations and changes will not invalidate this Contract nor release the
surety and Contractor agrees to perform the Work as altered, the same as if it had
been a part of the original Job Order. Contractor will notify the surety of the
changes and will assure that the alterations and changes are adequately covered
by the surety bond.
C.
The City will request a proposal for a change In Work from Contractor, and an
Adjustment to the Job Order Price or Job Order Time will be made based on a
mutual agreed upon cost and time.
5.6
LEGAL REQUIREMENTS
The Job Order Price or Job Order Time will be adjusted to compensate Contractor for
the effects of any changes in the Legal Requirements enacted after the date of the
Contract affecting the performance of the Work.
5.7
JOB ORDER ADJUSTMENTS
A. In accordance with the City of Scottsdale Procurement Code, and related Rules
and Procedures, the City and Contractor will negotiate in good faith and as
expeditiously as possible the appropriate Job Order Adjustment(s). Upon reaching
an agreement, the parties yyill prepare and execute an appropriate Adjustment
(Revised 07/09/25)
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reflecting the terms of their agreement. The change in Work may or may not
include an Adjustment in the Job Order Price or Job Order Time.
B.
All changes in Work authorized by Job Order Adjustments will be performed under
the conditions of the Contract Documents. The decision to make an Adjustment
to the Job Order rests solely with the City and any decision to make a Job Order
Adjustment must be promptly complied with by Contractor, subject to the
provisions of Article 5.8.
C.
The execution of a Job Order Adjustment by Contractor shall constitute conclusive
evidence of Contractor's agreement to the ordered changes in the Work, the Job
Order Price, and the Job Order Time by Contractor. Contractor, by executing the
Job Order Adjustment, waives and forever releases any claim against the City for
any additional time or compensation for matters relating to, arising out of, or
resulting from the Work included within or affected by the executed Job Order
Adjustment of which Contractor knew or should have known.
5.8
UNILATERAL DETERMINATION OF JOB ORDER VALUE
If no mutual agreement occurs between the City and Contractor, the change in Job Order
Price, if any, shall be derived by determining the reasonable actual costs incurred or
savings achieved, resulting from revisions to the Work. Such reasonable actual costs
or savings shall include a component for direct job site overhead and profit but shall not
include home-office overhead or other indirect costs and components. The calculation
of actual costs shall conform to the markup schedule in Article 5.12 below. Any such
costs or savings shall be documented in the format and vvith such content and detail as
the City requires. Contractor shall promptly submit such documentation and other
backup as the City may require in evaluating the actual costs incumed.
5.9
ADDITIONAL JOB ORDER COST REQUIREMENTS
Contractor’s or Subcontractor’s submittals shall include the cost of materials, sales tax,
and the cost of all transport. The cost of items listed shall be directly related to the Job
Order Adjustment. Indirect costs not specifically related to the Job Order Adjustment
shall not be considered. Contractor’s or Subcontractor’s Direct Labor Costs shall be
limited to the hourly rate of directly involved workmen, employer confributions toward
Contractor standard benefits, pensions, unemployment or social security (if any), and
employer costs for paid sick and annual leave. Contractor’s or Subcontractor’s
Overhead shall include license fees, bond premiums, supervision, wages of timekeepers
and clerks, incidentals, home and field office expense, and vehicle expense directly
related to the Project, and all other direct Project expenses not included in Contractor’s
material, direct labor, and equipment costs.
5.9.1 The allowance for overhead and profit shall be limited to the following schedule:
1.
For Contractor, for any work performed by Contractor’s own forces, fifteen
(15%) percent of the Subtotal of Costs to Contractor.
2.
For Contractor, for any work performed by its Subcontractor, six (6%)
percent of the amount due to the Subcontractor.
(Revised 07/09/25)
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3.
For each Subcontractor or Sub-subcontractor involved, for any work
performed by their own forces, fifteen (15%) of their materials and direct
labor costs.
4.
For each Subcontractor, for work performed by its Sub-Subcontractor(s),
six (6%) percent of the amount due to the Sub-subcontractor.
5.10 LiMiTATION OF COMPENSABLE ITEMS
5.10.1 For Job Order Adjustment, the total cost or credit to the City shall be based on
the following schedule:
1. Contractor’s Materials Costs.
2. Contractor’s Direct Labor Costs.
3. Contractor’s Equipment Costs {includes owned/rented equipment).
4. Applicable Subcontractor Costs.
5. Subtotal of Costs to Contractor.
6. Contractor’s Overhead and Profit
7. Total Cost or Credit to the City.
5.11 FIELD ORDERS
A.
The City has authority to initiate Field Orders that do not materially and adversely
affect the Work, including the design, quality, performance and workmanship
required by the Contract Documents. Field Orders will be made by written order
and will be binding on the City and Contractor. Contractor will carry out any written
Field Orders promptly.
B.
Field Orders will not involve an adjustment in the Job Order Price or Job Order
Times unless or until it becomes a Job Order Adjustment.
C.
Contractor may make minor changes in the Work, provided, however that
Contractor will promptly infomn the City, in writing, of any changes and record the
changes, if appropriate, on the Project Record Documents maintained by
Contractor.
5.12 JOB ORDER PRICE ADJUSTMENTS
A. The increase or decrease in Job Order Price resulting from a change in the Work
will be determined by one or more of the following methods:
1. Unit prices stated in the Contract or as subsequently agreed to between
the parties;
(Revised 07/09/25)
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2. A mutually agreed upon accepted, lump sum, properly itemized and
supported by sufficient substantiating data to permit evaluation by the City;
and
3. Costs, fees and any other markups.
B.
If an increase or decrease cannot be agreed to as stated in Article 5.7(A), the cost
of the change of the Work will be determined by the reasonable expense and
savings in the performance of the Work resulting from the change, including a .
reasonable overhead and profit, as may be stated in the Contract Documents.
Contractor will maintain a documented, itemized accounting evidencing the
expenses and savings associated with these changes.
C.
If unit prices are stated in the Contract Documents, or are later agreed to by the
parties, but application of the unit prices will cause substantial inequity to the City
or Contractor because of differences in the character or quantity of the unit items
as originally contemplated, the unit prices will be equitably adjusted.
D.
If the City and Contractor disagree upon whether Contractor is entitled to be paid
for any services required by the City, the amount to be paid, other disagreements
over the Scope of Work, proposed changes to the Work, or the time required to
complete the Work, the City and Contractor will resolve the disagreements in
accordance with Article 7.
1. As part of the negotiation process. Contractor will furnish the City with a
good faith estimate of the costs to perform the disputed services, or the
additional time required in accordance with the City's interpretations.
2. if the parties are unable tO agree and the City expects Contractor to perfomri
the services in accordance with the City's interpretations. Contractor will
proceed to perform the disputed services, conditioned upon the City issuing
a written order to Contractor:
(a) directing Contractor to proceed; and
(b) specifying the City's Interpretation of the services that are to be
performed.
E.
Emergencies. In any emergency affecting the safety of persons or property.
Contractor will act, at its discretion, to prevent threatened damage, injury or loss.
Any change in the Job Order Price or Job Order Time(s) resulting from ehfiergency
work under this Article 5.8(E) will be determined as provided in this Article 5.
ARTICLE 6- PROCEDURE FOR PAYMENT
6.1 JOB ORDER PAYMENT REQUEST
A. At the pre-construction conference prescribed in Article 1.3, Contractor will submit
for the City's review and approval a Schedule of Values. The Schedule of Values
(Revised 07/09/25)
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will include values for all items comprising the Job Order Price and will serve as
the basis for monthly progress payments made to Contractor throughout the Work.
B.
At least five (5) working days before the date established for a progress payment.
Contractor will meet with the City’s Representative to review the progress of the
Work, as it will be reflected on the Contractor Payment Request.
C.
The Contractor Payment Request will constitute Contractor’s representation that
the Work has been performed consistent with the Job Order including any
Adjustment(s), has progressed to the point indicated in the Contractor Payment
Request, and that title to all Work will pass to City free and clear of all claims, liens,
encumbrances, and security interests upon the incorporation of the Work into the
Project
6.2 PARTIAL PAYMENTS
A:
B.
c.
Partial progress payment Will be made for Job Orders with Job Order Time greater
than 30 Days and may be made if the Job Order Time is less than 30 Days.
The Contractor Payment Request may request payment for equipment and
materials not yet incorporated into the Project if construction progress is in
reasonable conformance with the approved schedule.
For equipment and materials suitably stored at the Site, the equipment and
materials will be protected by suitable insurance and the City will receive the
equipment and materials free and clear of all liens and encumbrances.
1. For materials and equipment stored off the Site, the City must approve the
storage. The material and equipment must be stored within Maricopa
County and be accessible for the City’s inspection. Title to the materials
and equipment will include applicable insurance, bonding, storage and
transportation to the Site.
2. All bonds and insurance required for stored materials will be in the City’s
name.
6.3 PAYMENT OF JOB ORDER PRICE
I
A.
Payments should be provided on the City format for a Pay Application which is
based on the agreed upon Schedule of Values. Payment will be made no later
than fourteen (14) days after the Contractor Payment Request is certified and
approved, biit in each case less the total of payments previously made.
B.
The Contractor Payment Request shall be deemed approved and certified for
payment seven (7) days after the date of submission to the City by Contractor
unless before that time the City prepares and issues a specific written finding
setting forth those items in detail in the Contractor Payment Request that are not
approved for payment under the Contract. The finding will indicate the specific
amounts the City intends to withhold, the reasons and contractual basis for the
withholding, and the specific measures Contractor must take to rectify the City’s
(Revised 07/09/25)
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concerns. The City may withhold an amount from the progress payment sufficient
to pay the expenses the City reasonably expects to incur in correcting the
deficiency set forth in the written finding. Contractor and the City will attempt to
resolve the City’s concerns. If the parties cannot resolve the concerns. Contractor
may pursue its rights under the Contract Documents, including those under Article
7.
6.4
RETENTION ON JOB ORDER PAYMENTS
In compliance with A.R.S. §34-609, as amended, there is no retention for job-order-
contracting construction services contracts.
6.5
FINAL PAYMENT
A.
After receipt of a fmal Contractor Payment Request, the City will make final
payment as required by this Article 6.5, provided that Contractor has completed all
of the Work in conformance with the Job Order and Contract Documents and a
Final Acceptance Letter has been issued by the City.
B.
At the time of submission of its final Contractor Payment Request, Contractor will
provide the following information:
1. An affidavit that there are no claims, obligations or liens outstanding or
unsatisfied for labor, services, material, equipnient, taxes or other items
performed, furnished or incurred for or in connection with the Work which
will in any way affect the City’s interests; and
2. A general release executed by Contractor waiving, upon receipt of final
payment by Contractor, all claims, except those claims previously made in
writing to the City and remaining unsettled at the time of final payment.
6.6
PAYMENTS TO SUBCONTRACTORS OR SUPPLIERS
A.
Contractor will pay its Subcontractors or suppliers within seven (7) calendar days
of receipt of each progress payment from the City. Contractor will pay for the
amount of Work performed or niaterials supplied by each Subcontractor or supplier
as accepted and approved by the City with each progress payment No Contract
between Contractor and its Subcontractors and suppliers may materially alter the
rights of any Subcontractor or supplier to receive prompt payment as provided in
this Contract.
B.
If Contractor fails to make payments in accordance with these provisions, the City
may take any one or more of the following actions and Confractor agrees that the
City may take these actions:
1. To hold Contractor in default under this Contract;
2. Withhold future payments until proper payment has been made to
Subcontractors or suppliers in accordance with these provisions;
(Revised 07/09/25)
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c.
D.
Contract No. 2026-006-COS
Solicitation No. RFSQ-022025-236
3. Reject all future offers to perform work for the City for a period not to exceed
one (1) year from the Substantial Completion date of the Job Order at issue;
or
4. Terminate this Contract for cause.
Should the City fail or delay in exercising or enforcing any right, power, privilege,
or remedy under this Article 6.6, the failure or delay will not be considered a waiver,
release, or modification of the requirements of this Article or of any of the terms or
provisions of this Contract.
Contractor will include these prompt payment provisions in every subcontract,
including procurement of materials and leases of equipment for this Contract.
6.7 RECORD KEEPING AND FINANCE CONTROLS
A.
Records of Contractor's direct personnel payroll, reimbursable expenses related
to each Job Order and records of accounts between the City and Contractor will
be 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 of Scottsdale to Contractor, the City, its authorized
representative, or the appropriate federal or state agencies, reserve the right to
audit Contractor’s records to verify the accuracy arid appropriateness of all pricing
data, including data used to negotiate the Contract Documents. The City of
Scottsdale or its authorized representative will have access, during normal working
hours, to all necessary Contractor and Subcontractor facilities, and will be provided
adequate and appropriate workspace, in order to conduct audits in compliance
with the provisions of this Article. The City of Scottsdale will give Contractor or
Subcontractor reasonable advance notice of intended audits.
B.
The City reserves the right to decrease Job Order Price or payments made on this
Contract if, upon audit of Contractor’s records, the audit discloses Contractor has
provided false^ misleading, or inaccurate cost and pricing data.
C.
Contractor will include a similar provision in all of its contracts with Subconsultants
and Subcontractors providing services under the Contract Documents to ensure
the City, its authorized representative, or the appropriate federal or state agency,
has access to the Subconsultants’ and Subcontractors’ records to verify the
accuracy of cost and pricing data.
D.
The City reserves the right to decrease Job Order Price or payments made on this
Contract if the above provision is not included in Subconsultants' and
Subcontractors’ contracts, and one or more Subconsultants or Subcontractors do
not allow the City to audit their records to verify the accuracy and appropriateness
of pricing data.
E.
If an audit in accordance with this Article, discloses overcharges of any nature by
Contractor to the City in excess of 1% of the total contract billings, the actual cost
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F.
Contract No. 2026-006-COS
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of the City’s audit will be reimbursed to the City by Contractor. Any adjustments
or payments which must be made as a result of any audit or inspection of
Contractor’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.
This audit provision Includes the right to inspect personnel records as required by
Section 11.33.
ARTICLE 7- CLAIMS AND DISPUTES
7.1 REQUESTS FOR CONTRACT ADJUSTMENTS AND RELIEF
7.1.1
If either Contractor or the City believes that it is entitled to relief against the other
for any event arising out of or related to Contract Services, that party will provide
written notice to the other party of the basis for its claim for relief. The claims shall
set forth in detail all known facts and circumstances supporting the claim; firial
costs associated with any claim upon which notice has been given must be
submitted in writing to the City within thirty (30) days after notice has been
received.
7.1.2 This notice will, if possible, be made before incurring any cost or expense and in
accordance with any specific notice requirements contained in applicable sections
of the Contract.
7.1.3
In the absence of any specific notice requirement, written notice will be given within
a reasonable time, not to exceed ten (10) days, after the occurrence giving rise to
the claim for relief or after the claiming party reasonably should have recognized
the event or condition giving rise to the request whichever is later.
7.1.4 This notice will include sufficient information to advise the other party of the
circumstances giving rise to the claim for relief, the specific contractual adjustment
or relief requested and the basis of the request. ANY NOTICE OF CLAIM NOT
FILED WITH THE CITY WITHIN SUCH TIME AND IN COMPLIANCE WITH THE
PRECEEDING PROVISIONS SHALL BE CONSIDERED TO HAVE BEEN
WAIVED AND SHALL BE DISMISSED.
7.1.5
In the event Contractor seeks to make a claim for an increase in the Job Order
Price, as a condition precedent to any liability of the City therefore, unless
emergency conditions exist. Contractor shall strictly comply with the requirements
of this section and such claim shall be made by Contractor before proceeding to
execute any work for which a claim is made. Failure to comply with this condKion
precedent shall constitute a waiver by Contractor of any claims for compensation.
7.1.6 Contractor must continue its performance under this Contract regardless of the
existence of aiiy claims by Contractor.
7.1.7
In a claim by Contractor against the City for compensation in excess of the Job
Order Price, any liability of the City to Contractor shall be strictly limited and
computed in accordance with the Contract Documents and shall in no event
include indirect costs, such as home office overheads or consequential damages
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Contract No. 2026-006-COS
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of Contractor or any estimated costs or damages.
7.2
DtSPUTE AVOIDANCE AND RESOLUTION
7.2.1
The parties are fully committed to working with each other throughout the Project
and agree to communicate regularly with each other at all times so as to avoid or
minimize disputes or disagreements. If disputes or disagreements do arise, the
Contractor and the City each commit to resolving the disputes or disagreements in
an amicable, professional and expeditious manner so as to avoid unnecessary
losses, delays and disruptions to the Work.
7.2.2
The Contractor and the City Will first attempt to resolve disputes or disagreements
at the field level through discussions between the Contractor’s Representative and
the City’s Representative.
7.2.3
If a dispute or disagreement cannot be resolved through the Contractor’s
Representative and the City’s Representative, the Contractor’s Senior
Representative and the City’s Senior Representative, upon ttie request of either
party, will meet as soon as conveniently possible, but in no case later than thirty
(30) days after the request is made, to attempt to resolve the dispute or
disagreement. Before any meetings between the Senior Representatives, the
parties will exchange relevant information that will assist the parties in resolving
their dispute or disagreement.
7.2.4 The City and the Contractor agree to negotiate in good faith in accordance with
this Contract’s procedure for the recovery of damages related to expenses incurred
by the Contractor for a delay for which the City is responsible, that is unreasonable
under the circumstances, and that was not within the contemplation of the parties
to the Contract.
7.3
DUTY TO CONTINUE PERFORMANCE
Unless provided to the contrary in the Contract Documents, Contractor will continue to
perform the Work and the City will continue to satisfy its payment obligations to
Contractor, until final resolution of any dispute or disagreement between Contractor and
the City.
7.4
REPRESENTATIVES OF THE PARTIES
A. City’s Representatives
1. The City designates the individual listed below as the City’s Senior
Representative. This individual has the authority and responsibility for
avoiding and resolving disputes under Article 7.2.3:
City of Scottsdale
Attn: Robert Franklin
Facilities Service Area Manager
9191 E. San Salvador Dr
Scottsdale, AZ 85251
(480)312-5999
(Revised 07/09/25)
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Contract No. 2026-006-COS
Solicitation No. RFSQ-022025-236
2. The City will designate an individual for each Job Order as the City’s
Representative. This person will manage the Job Order.
B. Contractor’s Representatives
1. Contractor designates the individual listed below as Contractor’s Senior
Representative. This individual has the authority and responsibility for
avoiding and resolving disputes under Article 7.2.3:
Chasse Building Team, Inc.
Attn: Bany Chasse
230 S Siesta Lane
Tempe, AZ 85281
(480)425-7777
2. Contractor will designate an individual for each Job Order as Contractor’s
Representative.
ARTICLE 8 - SUSPENSION, TERMINATION AND CANCELLATION
8.1
CITY’S RIGHT TO STOP JOB ORDER SERVICES
A.
The City may, at its discretion and without cause, order Contractor in writing to
stop and suspend any Job Order. Immediately after receiving this notice.
Contractor will discontinue advancing the Job Order. The suspension will not
exceed one hundred eighty (180) consecutive days. If the City suspends the Job
Order for one hundred eighty-one (18l) consecutive Days or more, the suspension
will be considered a termination for convenience.
B.
Contractor may seek an adjustment of the Job Order Price or Job Order Time if its
cost or time to perform the Contract Services has been adversely impacted by any
suspension or stoppage of the Work by the City.
8.2
TERMINATION FOR CONVENIENCE
A.
Upon receipt of written notice to Contractor, the City has the right to terminate this
Contract or abandon any portion of any Job Order for which services have not
been performed by Contractor.
1. Contractor will estimate the value of the Work It has completed and submit
its appraisal to the City for evaluation. The City will have the right to inspect
the Work, to appraise the Work completed.
Contractor Will receive compensation for services performed to the date of
the termination. The fee will be an amount mutually agreed upon by
Contractor and the City. If there is no mutual agreement, the final
determination will be made in accordance With this Article.
2. The City will make the final payment within 60 days after Contractor has
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Contract No. 2026-006-COS
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delivered the last of the partially completed items and the final fee has been
agreed upon.
If the City terminates this Contract in compliance with this Article and
proceeds to complete the Job Order through its employees, agents or other
third parties, the City’s rights to use the Work product will be as stated in
Article 8.4(D).
B.
Upon termination of construction services during any Job Order, Contractor will
proceed with the following obligations;
1. Stop Work as stated in the notice;
2. Place no further subcontracts Or orders;
3. Terminate ail subcontracts to the extent they relate to the Work terminated;
4. Assign to the City all rights title and interest of Contractor under the
subcontracts terminated, in which case the City will have the right to settle or
to pay any termination settlement proposal arising out of those terminations;
and
5. Take any action that may be necessary for the protection and preservation
of the property related to the Contract that is in the possession of Contractor
and which the City has or may acquire an interest
6. Comply with the requirements of Article 6.5(B)(1) and (2).
C.
Contractor will submit complete termination inventory schedules no later than sixty
(60) days from the date of the notice of termination.
D.
The City will pay Contractor the following;
1. The direct value of its completed Work and materials supplied as of the date
of termination;
2. The reasonable costs and expenses attributable to the termination;
3. Contractor will be entitled to profit and overhead on completed Work but will
not be entitled to anticipated profit or anticipated overhead. If it appears
Contractor would have sustained a loss on the entire Work had the Job
Order been completed. Contractor will not be allowed profit and the City will
reduce the settlement to reflect the indicated rate of loss;
4. Contractor will maintain all records and documents for three (3) years after
final Settlement. These records will be maintained and subject to auditing as
required in Article 6.7; and
5. Take any action that may be necessary for the protection and preservation
of the property related to the Job Order(s) that is in the possession of
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Contract No. 2026-006-COS
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Contractor and in which the City has or may acquire an interest.
8.3
CANCELLATION FOR CAUSE
The City may also cancel this Contract or any part of it with seven (7) days notice for
cause in the event of any default by Contractor, or if Contractor 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 City’s Representative and failure to
provide the City, upon request, with adequate assurances of future perfomnance will
ail be causes allowing the City to cancel this Contract for cause. In the event of
cancellation for cause, the City will not be liable to Contractor for any amount as
damages, and Contractor will be liable to the City for any and all damages sustained
as a result of the default that caused the cancellation.
8.4
CITY’S RIGHT TO PERFORM AND CANCEL FOR CAUSE
A. If Contractor persistently fails to;
1. Provide a sufficient number of skilled workers;
2. Supply the materials required by the Contract Documents or Job Order(s);
3. Comply with applicable Legal Requirements;
4. Timely pay, without cause, Subconsultants or Subcontractors;
5. Perform the Contract Services wth promptness and diligence to ensure
that a Job Order is completed by the Job Order Time, as the times may be
adjusted; or
6. Perform other material obligations under the Contract Documents and/or
individual Job Orders;
Then the City, in addition to any other rights and remedies provided in the Contract
Documents or by law, will have the rights stated in Articles 8.2 and 8.3.
In the event the City cancels this Contract or any part of the services under any
Job Order, the City will notify Contractor in writing, and immediately upon receiving
this notice. Contractor will discontinue advancing the Work under this Contract or
the Job Order and proceed to close all operations of any affected Job Order or this
Contract.
B. If the City provides Contractor with a written order to provide adequate maintenance
of traffic, adequate cleanup, adequate dust control or to correct deficiencies or
damage resulting from abnormal weather conditions, and Contractor fails to comply
in a time frame specified, the City may have the Work accomplished by other
sources at Contractor’s expense and without an increase to the Job Order Price
C. Upon the occurrence of an event stated in Article 8.4(B), the City may provide written
notice to Contractor that it intends to cancel the Contract unless the problem cited
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Contract No. 2026-006-COS
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is cured, or commenced to be cured, within seven (7) days of Contractor’s receipt of
notice.
1. If Contractor fails to cure, or reasonably commence to cure, the problem,
then the City may give a second written notice to Contractor of its intent to
cancel within an additional seven (7) day period.
2. If Contractor, within this second seven (7) day period, fails to cure, or
reasonably commence to cure the problem, then the City may declare the
Contract cancelled for default by providing written notice to Contractor of
this declaration.
D. Upon declaring the Contract cancelled In accordance with Article 8.4(C), and for the
purpose of completing the Work, the City may for all Job Orders enter upon the
premises and take possession of all materials, equipment, scaffolds, tools,
appliances and other items, which have been purchased or provided for the
performance of the Work, all of which Contractor now transfers, assigns and sets
over to the City for this purpose, and to employ any person or persons to complete
the Work and provide all of the required labor, services, materials, equipment and
other items.
E. If through any cause, Contractor fails to fulfill in a timely and proper manner its
obligations under this Contract, or if Contractor violates any of the covenants.
Contracts, or stipulations of this Contract, the City may withhold any payments to
Contractor for the purpose of setoff until the exact amount of damages due the City
from Contractor is determined by a court of competent jurisdiction.
F. in the event of a cancellation. Contractor will not be entitled to receive any further
payments under the Contract Documents until the Work on all Job Orders is
completed in accordance with the Contract Documents. At that time. Contractor will
only be entitled to be paid for Wori< performed and accepted by the City before its
default.
G. If the City’s cost and expense of completing the Work exceeds the unpaid balance
of a Job Order Price, then Contractor will be obligated to pay the difference to the
City. These costs and expenses will include not only the cost of completing the
Work, but also losses, damages, costs and expense, including attorneys' fees and
expenses, incurred by the City in connection with the reprocurement and defense of
claims arising from Contractor’s default.
H. If the City cancels this Contract for cause and the cancellation is determined to have
been without legal right, the cancellation for cause will be considered to have been
a termination for convenience in accordance with the provisions of Article 8.2.
ARTICLE 9 - INSURANCE AND BONDS
9.1 INSURANCE REQUIREMENTS
A. At the same time as execution of this Contract, Contractor will furnish the City of
Scottsdale a Certificate of Insurance on a standard insurance industry ACORD
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Contract No. 2026-006-COS
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form. The ACORD form will be issued by an insurance company authorized to
transact business in the State of Arizona.
B.
Contractor, Subcontractors and Subconsuitants 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 Contractor, its 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 Contractor from liabilities that might arise out of the
performance of the Contract Services under this Contract by Contractor, its agents,
representatives, erhployees. Subcontractors or Subconsultants and Contractor is
free to purchase any additional insurance as may be determined necessary. The
City will not pay for higher limits, but if Contractor pays for insurance with higher
limits. Contractor will name the City as an additional insured on any additional
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 diate 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.
Self-Insured Retentions. 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.
9.2 MINIMUM SCOPE AND LIMITS OF INSURANCE
Contractor must provide coverage 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
$2,000,000
$2,000,000
$1,000,000
$2,000,000
(Revised 07/09/25)
Page 40 of 66
Fire Damage (Any one fire)
Medical Expenses (Any one person)
Contract No. 2026-006-COS
Solicitation No. RFSQ-022025-236
$100,000
OPTIONAL
B. Automobile Liabilitv-Anv Auto or Owned. Hired and Non-Owned Vehicles
Combined Single Limit Per Accident
For Bodily Injury and Property Damage
C.
Workers Compensation and Employers Liability
Workers Compensation
Employers Liability:
Each Accident
Disease - Each Employee
Disease - Policy Limit
D.
Coverage terms and Required Endorsements
$1,000,000
Statutory
$500,000
$500,000
$1,000,000
1. The City of Scottsdale, its officers, officials, agents, and employees are
additional insureds witii respect to liability arising out of activities performed
by, or on behajf of. Contractor including the City’s general supervision of
Contractor; products and completed operations of Contractor; and
automobiles owned, leased, hired, or borrowed by Contractor.
2. The City, its officers, officials, agents, and employees must be additional
insureds to the full limits of liability purchased by Contractor even if those
limits of liability are In excess of those required by this Contract.
3. Contractor’s insurance coverage 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 will be in excess pf the coverage provided by Contractor and
must not contribute to it.
4. Contractor's insurance must apply separately to each insured against
whom a claim is made or suit is brought, except with respect to the limits
of the insurer's liability.
5. Coverage provided by Contractor must not be limited to the liability
assumed under the indemnification provisions of this Contract.
6. All policies must contain a waiver of subrogation against the City, its
officers, officials, agents, and employees, for losses arising from Work
performed by Contractor for the City.
7. Workers’ Compensation arid Employers Liability Coverage: The insurer
must agree to waive all rights of subrogation against the City, its officers,
officials, agents, employees, arid volunteers for losses arising from Work
performed by Contractor for the City.
(Revised 07/09/25)
Page 41 of 66
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Contract No. 2026-006-COS
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8. If Contractor receives notice that any of the required policies of insurance
are materially reduced or cancelled, it will be Contractor’s responsibility to
provide prompt notice to the contract administrator of same to the City,
unless such coverage is immediately replaced with similar policies.
E. Builders Risk-Installation Insurance (Course of Construction)
To be provided if determined by the City as necessary with each Job Order.
Contractor bears all responsibility for loss to ail Work being performed and to
buildings under construction. Unless waived in writing by the City of Scottsdale,
Contractor will purchase and maintain in force Builders Risk-Installation insurance
on the entire Work until completed and accepted by the City. This insurance will
be Special Causes of Loss or Open Perils policy form, for the completed value, at
replacement cost equal to each Job Order contract price and all subsequent
modifications. Contractor’s Builders Risk-Installation insurance will be primary and
not contributory; and waive all rights of subrogation against the City; its officers,
officials and employees.
This Builders Risk-Installation insurance must name the City, Contractor and all
tiers of Subcontractors as respects their insurable interest at the date of loss. It
must contain a provision that subject insurance wii| not be canceled or materially
altered without at least thirty (30) days advance notice to the City. Conti-actor is
also required to give the City thirty (30) days advance written notice of the coverage
termination for each project. The City will also be named as a Loss Payee under
Builders Risk-Installation coverage.
This Builders Risk-Installation insurance must cover the entire Work including
reasonable compensation for architects and Contractor’s’ services and expenses
and other “soft costs” made necessary by an insured loss. Builders Risk-
Installation insurance must provide coverage from the time any covered property
comes under Contractor’s control and or responsibility, and continue without
interruption during course of construction, renovation and or instaliation, including
any time during which any project property or equipment is in transit, off site, or
while on site for future use or instaliation. Insured property nriust include, but not
be limited to, scaffolding, false work, and temporary buildings at the site. This
insurance must also cover the cost of removing debris, including demolition as may
be legally required by operation of any law, ordinance, regulation or code.
Contractor must also purchase and maintain Boiler and Machinery insurance with
the same requirements as Builders Risk-Installation insurance stated above if the
Work to be performed involves any exposures or insurable property normally
covered under a Boiler and Machinery insurance policy or made necessary as
required by law and or testing requirements in the performance of this Contract.
Contractor will be responsible for any and all deductibles under these policies and
Contractor waives all rights of recovery and subrogation against the City under
Contractor-provided Builders Risk-Installation insurance described in this Article.
The Builders’ Risk-Installation insurance must be endorsed so that the insurance
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Contract No. 2026-006-COS
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will not be canceled or lapse because of any partial use or occupancy by the City.
Builders’ Risk-Installation Insurance must be maintained until whichever of the
following first occurs: (i) finai payment has been made; or (ii) until no person or
entity, other than the City, has an insurable interest in the property required to be
covered.
By signing this Contract, all rights of subrogation are waived against the City, its
officers, officials, agents and employees.
9.3 OTHER INSURANCE REQUIREMENTS
The policies are to contain, or be endorsed to contain, the following provisions:
A.
Contractors Professional Liability: Contractor must carry Contractors Professional
Liability insurance to cover the residual, contingent, and passive design exposures
of Contractor.
1.
The City of Scottsdale, 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 Contractor, including the City’s
general supervision of Contractor; prpducts and completed operations of
Contractor.
2.
The City, its officers, officials, agents, and employees must be additional
insureds to the full limits of liability purchased by Contractor, eyen if those
limits of liability are in excess of those required by this Contract The
Commercial General Liability policy will be at least as broad as the
Insurance Service Office, Inc.’s CG 0 0 01 07 98.
B.
Contractors Professional Limits of Liability: Contractor must carry limits of
$1,000,000 each Project and $2,OOO,O0O in the Aggregate under a stand-alone
policy or included by endorsement under the Commercial General Liability policy.
Contractor, 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.
1.
Contractoi^s insurance coverage must be primary insurance with respect
to the City, its officers, officials, agents, and employees. Insurance or self-
insurance maintained by the City, its officers, officials, agents, and
employees must be in excess of Contractor’s insurance and will not
contribute to it
2.
Contractor’s insurance must apply separately to each insured against
whom a claim is made or suit is brought, except with respect to the limits
of the insurer’s liability. The coverage provided by Contractor and its
Subcontractors must not be limited to the liability assumed under the
indemnification provisions of this Contract.
(Revised 07/09/25)
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3. The policies must contain a waiver of subrogation against the City, its
officers, officials, agents, and employees for losses arising from Work
performed for the City.
C. Contractor, its successors and 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. Contractor must
submit a Certificate of Insurance evidencing the Commercial General Liability
insurance during this three (3) year period containing all the insurance
requirements including naming the City of Scottsdale, its agents, representatives,
officers, directors, officials and employees as Additional Insured as required.
9.4
SUBCONSULTANT’S AND SUBCONTRACTOR’S INSURANCE
Unless Contractor’s Subconsultants and Subcontractors can provide the same level of
coverage as detailed in Article 9.2 and name the City and Contractor as Additional
Insureds, Contractor’s certificates must include all Subcontractors and Subconsultants
as insureds under its policies or Contractor must maintain separate certificates and
endorsements for each Subcontractor and Subconsultant. All coverages for
Subcontractors and Subconsultants must be in the amounts shown in Article 9.2.
Certificates must contain a provision that the insurance will not be canceled or materially
altered without at least thirty (30) days advance notice to the City. The City must also
be named as a Loss Payee under the Builders Risk-Installation coverage.
9.5
NOTICE OF CANCELLATION
If Contractor receives notice that any of the required policies of insurance are materially
reduced or cancelled, it will be Contractor’s responsibility to provide prompt notice to \Ue
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, reduced in coverage or in limits until thirty (30) days written notice has first
been given in accordance with Article 11.24, herein.
9.6
ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers duly licensed or approved to conduct business
in the State of Arizona and with an A. M. Best rating of no less than B++6- The City in
no way warrants that the above required minimum insurer rating is sufficient to protect
Contractor from potential insurer insolvency. Failure to maintain insurance as required
may result in termination of this Contract at the City’s option.
9.7
VERIFICATION OF COVERAGE
A. Contractor 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 and endorsements for each
insurance policy are to be signed by a person authorized by that insurer to bind
coverage on its behalf.
(Revised 07/09/25)
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B.
C.
Contract No. 2026-006-COS
Solicitation No. RFSQ-022025-236
All certificates and endorsements are to be received and approved by the City
before Contract Services commence except for Builders Risk-Installation
Insurance, which will be received and approved as provided in Article 9.2(E). Each
insurance policy required by this Contract must be in effect at or before the earlier
of commencement of Contract Services under the Contract Documents or the
signing of this Contract except for Builders Risk-Installation Insurance which must
be in effect before commencement of the 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.
All Certificates of Insurance required by this Contract must be sent directly to the
City of Scottsdale, Attn; Purchasing Department, 9191 E. San Salvador Dr.
Scottsdale, AZ 85258. 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 Contractor’s Certificate and delay in contract execution.
Additional Certificates of Insurance submitted without referencing a Contract
number will be subject to rejection and returned or discarded.
9.8 APPROVAL
Any modification or variation from the insurance requirements in this Contract must be
approved by the Risk Management Division, whose decision is final. This action may
be made by administrative action.
9.9 BONDS AND OTHER PERFORMANCE SECURITY
A.
Before execution of each individual Job Order, Contractor must provide a
performance bond and a payment bond for all construction services, each in an
amount equai to the full amount of the agreed upon cost for that Job Order.
Contractor may, at its own option, provide Payment and Performance Bonds for
the entire Contract Price amount, but there shall be no obligation for the City to
reimburse Contractor for bond costs incurred, except on an actual cost basis as
each individual Job Order is issued. Bonds must be submitted in accordance with
Title 34, Chapter 6 of the Arizona Revised Statutes and must be in substantially
the same form as Exhibits A and B, attached to this Contract.
B.
Each bond must be executed by a surety company or companies holding a
Certificate of Authority to transact surety business in the State of Arizona, issued
by the Director of the Arizona Department of Insurance. A copy of the Certificate
of Authority must accompany the bonds. The Certificate must have been issued
or updated within two (2) years before the execution of this Contract.
C.
The bonds must be made payable and acceptable to the City of Scottsdale.
D.
The bonds must be written or countersigned by an authorized representative of the
surety and the bonds must have attached a certified copy of the Power of Attorney
of the signing official.
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1. If one Power of Attorney is submitted, it must be for twice the total Job
Order Price.
2. If two Powers of Attorney are submitted, each must be for the total Job
Order Price. Personal or individual bonds are not acceptable.
3. Upon the request of any person or entity appearing to be a potential
beneficiary of bonds covering payment of obligations arising under the
Contract Documents, Contractor must promptly furnish a copy of the bonds
or must permit a copy to be made.
E. All bonds submitted for this Project must be provided by a company which has
been rated ”A or better" by the A.M. Best Company.
ARTICLE 10 - INDEMNIFICATION
10.1 CONTRACTOR’S GENERAL INDEMNIFICATION
To the fullest extent permitted by law. Contractor, its successors, assigns and
guarantors, must 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, reasonable 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 acts, omissjons, negligence,
recklessness, or intentional wrongful conduct to the extent caused by Contractor or any
of Its owners, officers, directors, agents or 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 Contractor 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 Contractor 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 for Claims arising solely from the
negligent or willful acts or omissions of the City, be indemnified by Contractor from and
against any and all claims. It is agreed that Contractor will be responsible for primary
investigation, defense, and judgment costs where this indemnification is applicable, in
consideration of the award of this Contract, Contractor agrees to waive all rights of
subrogation against the City, its officers, agents, representatives, directors, officials, and
employees for losses arising from the work performed by Contractor for the City.
Insurance provisions in this Contract are separate and independent from the indemnity
provisions of this Article and will not be construed in any way to limit the scope and
magnitude of the indemnity provisions. The indemnity provisions of this paragraph shall
not be construed in any way to limit the scope and magnitude and applicability of the
insurance provisions.
10.2 INTELLECTUAL PROPERTY
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Contract No. 2026-006-COS
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A.
Contractor must pay all royalties and license fees associated with its performance
of services.
B.
Contractor must defend any action or proceeding brought against the City based
on any claim that the Work, or any part of the Work, or the operation or use of the
Work or any part of it. constitutes infringement of any United States patent or
copyright, now or subsequently issued. The City will give prompt written notice to
Contractor of any action or proceeding and vwll reasonably provide authority,
information and assistance in the defense of the action. Contractor shall indemnify
and. hold hamnless 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 Contractor in any action or proceeding.
Contractor agrees to keep the City informed of all developments in the defense of
these actions. The City may be represented by, and actively participate through,
its own counsel in any suit or proceedings if it so desires.
C.
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, Contractor
shall at its sole expense take reasonable steps to procure the right to operate or
use the Work. If Contractor cannot procure this right within a reasonable time.
Contractor will promptly, at Contractor’s option and at Contractor’s expense,
without an increase to the Job Order Price, (i) modify the Work so as to avoid
Infringement of any patent or copyright dr (ii) replace the Work with Work that does
not infringe or violate any patent or copyright.
D.
Articles 10.2(B) and 10.2(C) will not be applicable to any suit, claim or proceeding
based on infringement or violation of a patent or copyright
1. Relating solely to a particular process or product of a particular
manufacturer specified by the City and not offered or recommended by
Contractor to the City; of
2. Arising from modifications to the Work by the City or its agents after
acceptance of the Work.
E.
The obligations stated in this Article 10.2 will constitute the sole Contract between
the parties relating to liability for infringement of violation of any patent or copyright.
ARTICLE 11 ~ GENERAL PROVISIONS
11.1 MARSHALING AREA
Contractor shall contact the City of Scottsdale, Development Services to determine the
requirements for obtaining a permit for marshaling areas it proposes to use. Marshaling
areas must be fenced. Contractor will obtain written approval from the properly owner
for marshaling area use. This approval must contain any requirements, which are a
condition of this approval. Marshaling yard requirements according to M.A.G.
Subsection 107.6.1 and the City of Scottsdale Supplemental Specifications will apply.
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11^ CONTRACT DOCUMENTS
A.
Contract Documents are as defined in Article 12.
B.
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 specificaliy stated in the Contract Documents.
C.
in the event of any inconsistency, conflict, or ambiguity between or among the
Contract Documents, the Contract Documents will take precedence in the order in
which they are listed in the definition of Contract Documents in Article 12. As to
drawings and plans, given dimensions will take precedence over scaled
measurements, and large-scale plans over small-scale plans. Contract
specifications will take precedence over contract plans.
D.
The Contract Documents are intended to permit the parties to complete the Work
and all obligations required by the Contract Documents within the times and prices
agreed upon for each Job Order. The Contract Documents are intended to be
complementary and interpreted in harmony so as to avoid conflict, with words and
phrases interpreted in a manner consistent with construction and design industry
standards.
E.
This Contract, the Plans, Standard Specifications and Details, Special Provisions,
Performance Bond, Payment Bond, Certificates of Insurance, Job Orders and Job
Order Adjustments (if any) are by reference made a part of this Contract to the
same extent as if set forth in full.
F.
Work Product
1. 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 which are prepared or procured in the
performance of this Contract (collectively referred to as documents) are to
be and remain the property of the City and are to be delivered to the City
before the final payment is made to Contractor. In the event these
documents are altered, modified or adapted without the written consent of
Contractor or the Subconsultants, which consent Contractor or the
Subconsultants will not unreasonably withhold, the City agrees to hold
Contractor and the Subconsultants harmless to the extent permitted by law
from the legal liability arising out of the City’s alteration, modification or
adoption of the documents.
2. The copyrights, patents, trade secrets or other intellectual property rights
associated with the Ideas, concepts, techniques, inventions, processes or
works of authorship developed, created by Contractor, its Subconsultants
or personnel, during the course of performing this Contract or arising out of
the Project will belong to Contractor.
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11.3 MODIFICATIONS
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.
11.4 TIME IS OF THE ESSENCE
Time is of the essence with respect to the dates and times stated in the Contract
Documents.
11.5 COOPERATION AND FURTHER DOCUMENTATION
Contractor agrees to provide the City any other duly executed documents, as will be
reasonably requested by the City, to implement the intent of the Contract Documents.
11.6 ASSIGNMENT
Neither Contractor nor the City will, without the written consent of the other, assign,
transfer or sublet any portion of this Contract or part of the Work or the obligations
required by the Contract Documents.
11.7 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, acts of terrorism, epidemics, governmental regulations imposed after the fact,
fire, communication line failures, or power failures.
11.8 FUNDS APPROPRIATION
Multiterm Contracts for job-order-contracting Construction services are subject to A.R.S.
§34-607, as arnended. If the City Council does not appropriate funds to continue this
Contract and pay for charges, the City may terminate this Contract at the end of the
current fiscal period. The City agrees to give written notice to Contractor at least thirty
(30) days before the end of its current fiscal period and will pay Contractor for all
approved charges incurred through the end of the period.
11.9 CONSTRUCTION METHODS
If the City provides Contractor with a written order to provide adequate maintenance of
traffic, clean-up, dust control or to correct deficiencies or damage resulting from
abnormal weather conditions, and Contractor fails to comply in the time frame specified,
the City may have Work accomplished by other sources at Contractor’s expense, without
an increase in the Job Order Price.
11.10 UTIUTY RELOCATIONS FOR CONSTRUCTION METHODS
If any utility is relocated or rebuilt to accommodate Contractor’s construction methods
and available equipment, the expense will be borne by Contractor and will be replaced
to the original location before completion of the Job Order at the request of the City’s
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Project Coordinator at Contractor’s sole expense, without an increase in the Job Order
Price.
11.11 DAMAGED UTILITIES DURING CONSTRUCTION
Any utilities damaged during construction shall be replaced at Contractor’s expense,
without an increase in the Job Order Price, as per the requirements of the M.A.G.
Standard Specifications.
11.12 SUCCESSORS AND ASSIGNS
This Contract will extend to and be binding upon Contractor, its successors and assigns,
including any individual, company, partnership, or other entity with or into which
Contractor will merge, consolidate, or be liquidated, or any person, corpdratiorr,
partnership, or other entity to which Contractor 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.
11.13 CONFLICT IN LANGUAGE
Ali services and Work performed will conform to all applicable City of Scottsdale codes,
ordinances and requirements as outlined in the Contract Documents. If there is a conflict
in interpretation between provisions in this Contract and those in exhibits, the provisions
in this Contract will prevail.
11.14 THIRD PARTY BENEFICIARY
Nothing under the Contract Documents will be construed to give any rights or benefits
in the Contract Documents to anyone other than the City and Contractor, and all duties
and responsibilities undertaken in accordance with the Contract Documents will be for
the sole and exclusive benefit of the City and Contractor and not for the benefit of any
other or third party.
11.15 GOVERNING LAW
This Contract and all Contract Documents 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. Any action to enforce any
provision of this Contract or to obtain any remedy with respect to this Contract shall be
brought in the Superior Court of Maricopa County, Arizona, and for this purpose, each
party expressly and Irrevocably consents to the jurisdictioh and venue of that Court and
waives the right to have such action removed to Federal District Court
11.16 SEVERABILITY
If any provision of the Contract Documents or their application to any person or
circumstance is invalid, illegal or unenforceable to any extent, the remainder of the
Contract Documents 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
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Contract No, 2026-006-005
Solicitation No. RFSQ-022025-236
A.R.S. § 41-194.01, as amended, should the Attorney General give notice to the City
that any provisions of the 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 Contractor
shall, within ten (10) days after such notice, negotiate in good faith to resolve any issues
related to the severed provision(s).
11.17 LEGAL REQUIREMENTS
Contractor shall perform all Contract Services in accordance with all Legal
Requirements and will provide all notices applicable to the Contract Services as required
by the Legal Requirements.
11.18 INDEPENDENT CONTRACTOR
The services the Contractor provides to the City are that of an Independent Contractor,
hot an employee, or agent of the City. Upon request, the Contractor 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.
Any provisions in the Contract Documents that may appear to give the City the right to
direct Contractor as to the details of accomplishing the Work or to exercise a measure
of control over the Work means that Contractor will follow the wishes of the City as to
the results of the Work only. These results vnll coinply With all applicable laws and
ordinances.
11.19 CITY'S RIGHT OF CANCELLATION
This Contract |s subject to cancellation by the City of Scottsdale in accordance with the
provisions of A.R.S. § 38-511, as amended.
11.20 SURVIVAL
All warranties, representations and indemnifications by Contractor shall survive the
completion or termination of this Contract.
11.21 COVENANT AGAINST CONTINGENT FEES
Contractor warrants that no person has been employed or retained to solicit or secure
this Contract upon any contract or understanding for a commission, percentage,
brokerage, or contingent fee, and that no member of the City Council, or any employee
of the City of Scottsdale has any interest, financially, or otherwise, in the firm. For breach
or violation of this warranty, the City will have the right to annul this Contract without
liability, or at its discretion to deduct from the Contract Price or consideration, the full
amount of any commission, percentage, brokerage, or contingent fee;
11.22 NO WAIVER
The failure of either party to enforce any of the provisions of the Contract Documents,
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Contract No. 2026-006-COS
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or to require performance of the other party of any of its provisions, will not be construed
to be a waiver of those provisions, nor will It affect the validity of the Contract Documents
or any part of the Contract Documents, or the right of either party to enforce each and
every provision.
11^3 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.
11.24 NOTICE
All notices or demands required by this Contract must be giveri 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. Notice by electronic mail or facsimile will not be considered
notice.
To City:
City of Scottsdale
Attn: Robert Franklin
Facilities Service Area Manager
9191 E San Salvador Dr.
Scottsdale, Arizona 85258
To JOC Contractor:
Chasse Building Team, Inc.
Attn: Barry Chasse
230 S. Siesta
Lane Tempe, AZ
85281
J480)
_____
425-7777
11.25 ADDITIONAL CITY RIGHTS REGARDING SECURITY INQUIRIES
Projects may be completed in both secure and non-secure City facilities. All Contractor
and Subcontractor employees may be required to pass mandatory background checks
prior to the start of any Work and be issued access badges by City of Scottsdale
Municipal Security. In addition to the foregoing, the City reserves the light to: (1) have
an employee/prospective employee of Contractor be required to provide fingerprints and
execute any other documentation as may be necessary to obtain criminal Justice
information pursuant to A.R.S. § 41-1750(G)(4): (2) act on newly acquired information
whether or not that information should have been previously discovered; (3) unilaterally
change its standards and criteria relative to the acceptability of Contractor's employees
or prospective employees; and, (4) object, at any time and for any reason, to an
employee of Contractor performing Work (including supervision and oversight^ under
this Contract.
A. Provisions Applicable to all Contractor Contracts and Subcontracts. Contractor will
include the terms of this provision for employee background and security checks
and screening in all contracts and subcontracts for Work performed under this
Contract, including supervision and oversight.
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B. Materiality of Security Inquiry Provisions. The Security Inquiry provisions of this
Contract, as stated above, are material to the City’s entry into this Contract and
any breach by Contractor may, at the City’s sole option and unfettered discretion,
be considered to be a breach of contract of sufTicient magnitude to terminate this
Contract. Termination will subject Contractor to liability for its breach of contract.
11.26 HAZARDOUS MATERIALS
A.
Upon discovery of hazardous materials Contractor will comply with all applicable
laws/ordinances and regulations and take ail appropriate health and safety
precautions.
B.
Unless included in the Work, if Contractor encounters onsite, or as material to be
incorporated in the Work, any material which It reasonably believes to contain
asbestos, polychlorinated biphenyl (PCB), or other hazardous substances or
materials regulated by public health laws, it will immediately stop work and report
the condition to the City.
C.
If the material is found to contain asbestos, PCB or other hazardous substances or
materials regulated by public health laws. Contractor will not resume Work in the
affected area until the material has been abated or rendered harmless. Contractor
and the City may agree, in writing, to continue Work in non-affected areas onsite.
D.
An extension of Job Order Time may be granted in accordance with Article 5.
E.
Contractor will comply with all applicable laws/ordinances and regulations and take
ail appropriate health and safety precautions upon discovery.
F.
Despite the provisions of this Article 11.26, the City is not responsible for
hazardous conditions or materials introduced to ^e Site by Contractor,
Subcontractors or anyone for whose acts they may be liable. Contractor will
indemnify, defend and hold harmless the City and the City’s officers, directors,
employees and agents from and against all claims, losses, damages, liabilities and
expenses, including attorneys’ fees and expenses, arising out of or resulting from
those hazardous conditions or materials introduced to the Site by Contractor,
Subcontractors or anyone for whose acts they may be liable.
11.27 TRAFFIC CONTROL
A.
Complete street closures will not be permitted unless specified in the Special
Provisions or approved by the City. The timing and sequence of street closures
will be approved by the Traffic Engineering Director, or designee, at least fourteen
(14) days before the closure. This approval is necessary to provide coordination
with other roadway projects and special events.
B.
Adequate bam'cades and lighted warning signs must be installed and maintained
by Contractor throughout the duration of any Project. All traffic control must be in
accordance with the current version of the City of Scottsdale Supplement to MAG
Uniform Sitandard Specifications Section 401 or as required by the approved
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barricade plan unless otherwise specified in the Special Provisions.
C. Contractor will submit a construction schedule and a barricade plan to the City
Traffic Engineering Director, or designee, for approval or modification at least
seventy-two (72) hours before construction is initiated, and must wait to commence
construction until the plan is signed as accepted by the City Traffic Engineering
Director, or designee.
11.28 MATERIAL SOURCE
No material source has been designated by the City for use under ttiis Contract. MAG
Specification, Section 106 will apply as will ADOT Standard Specifications 1982, Section
106.1, 106.2, 106.7 & 106.8, which outline controls and Section 1001-1, -2, & -4
concerning approval of Contractor-Furnished Source and supplemental Contracts in
regards to environmental analysis and the liability for matenals testing costs.
Contractor and Subcontractor furnished material sources situated in the 100-year flood
plain of any stream or watercourse will not be allowed if located within 1.0 mile upstream
and 2.0 miles downstream of any highway structure or surfaced roadway crossing.
A Contractor and Subcontractor-furnished source will be defined as a material source,
which is neither an ADOT furnished source nor a commercial source, as defined in this
Contract.
A commercial source will be defined as a material source in which the ovimer or producer
has been regularly engaged for at least one (1) year during regular business hours on a
regular basis in the processing and selling of sand, rock, ready mixed Portland cement
concrete, asphaltic concrete and other similar products normally produced and sold to
all parties. The company must have an Arizona retail sales tax license.
The location of any new material source or existing non-commercial material source
proposed for use under this Contract must be reviewed by the appropriate agency
having flood plain management jurisdiction over the area of proposed source location.
Contractor and Subcontractor will obtain a letter from the agency addressed to the
Contract Administrator certifying that the proposed source location conforms to the
required conditions and the applicable Standard Specifications. Contractor will
familiarize himself with the nature and extent of the Contract Documents, work to be
performed, all local conditions, and federal, state and local laws, ordinances, rules and
regulations that in any manner may affect cost, progress or performance of the Work.
11.29 FAMILIARIZATION WITH APPLICABLE LAWS
Contractor will familiarize itself with the nature and extent of the Contract Documents,
work to be performed, all local conditions, and federal, state and local laws, ordinances,
rules and regulations that in any manner may affect cost, progress or performance of
the Work.
11.30 NATIVE PLANTS
Contractor agrees it will take whatever steps, procedures or means necessary to
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remove, move, displace and save all native plants within the contract work area In
accordance with the City of Scottsdale Revised Code, as amended, and ail applicable
state and county statutes, ordinances, codes and other policy requirements and
recognized methods, procedures, techniques and equipment for protection, salvage,
and handling of ail plants to be moved from the construction area. This is not a pay item
unless specified upon the Schedule of Bid Items.
11.31 ENDANGERED HARDWOODS
Contractor agrees any construction, building addition or alteration project which is
financed by monies of this state or its political subdivisions will not use endangered
tropical hardwood unless an exemption is granted by the Director of the State of Arizona,
Department of Administration.
11.32 CONSTRUCTION ACTIVITY
Contractor agrees that ail construction activity occurring on Site shall confomn to the
hour and noise requirements of the City of Scottsdale Revised Code, as amended.
11.33 COMPLIANCE WITH LOCAL, STATE AND FEDERAL LAWS
A. Contractor understands and acknowledges the applicability to it of the American with
Disabilities Act, the Immigration Reform and Control Act of 1086, 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 Cpntractor’s labor and
employment practices. Contractor agrees to comply with these laws in performing this
Contract and to permit the City to verily compliance. Contractor further agrees that
any violation of provision on the part of Contractor, its employees, agents or assigns
will constitute a material breach of this Contract.
Contractor 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. Contractor 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, Contractor warrants to the City that
Contractor and aii its Subcontractors wiii comply with ali Federal immigration
laws and regulations that relate to its eniployees and that Contractor and all its
Subcontractors now comply with the E-Verify Program under A.R.S. §23-214(A).
A breach of this warranty by Contractor or any of its Subcontractors will be considered
a material breach of this Contract and may subject Contractor 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 Contractor or
any Subcontractor who works on this Contract to ensure that Contractor or any
Subcontractor is complying with the warranty given above.
The City may conduct random verification of the employment records of Contractor
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and any of its Subcontractors to ensure compliance with this warranty. Contractor
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.
The City will not consider Contractor or any of its Subcontractors in material breach erf
this Contract if Contractor and its Subcontractors establish JaUhey 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 Prograrn" means the employment
verification pilot 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 Contractor enters into
with any and all of its Subcontractors who provide services under this Contractor 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. Contractor will take appropriate steps to assure that all Subcontractors
comply with the requirements of the E-Verify Program. Contractor’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.
B Compliance with Americans with Disabilities Act. Contractor acknowledges that, in
■ accordance with 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. Contractor will 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. Contractor
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 provision on the part of Contractor, its employees, agents or assigns will
constitute a material breach of this Contract.
Q Equal Employment Opportunity and Discrimination. For the duration of this Contract^
Contractor 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 includirig 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 Contractor compliance with the policies contained therein.
Contractor agrees that any violation of provision on the part of Contractor, its
employees, agents or assigns will constitute a material breach of this Contract.
Contractor will include the terms of this provision in all contracts and subcontracts for
work performed under this Contract, including supervision and oversight. The
Contractor will in all solicitations or advertisements for employees placed by or on
behalf of the Contractor, state that all qualified applicants will receive consideration for
employment without regard to race, color, religion, sex, sexual orientation, gender
identity, or national origin.
(Revised 07/09/25)
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D. 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, Contractor
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.
E. Advertising: No advertising or publicity concerning the City using Contractor’s services
shall be undertaken without prior written approval of such advertising or publicity by
the Contract Administrator and the City Attorney.
11.34 DATA CONFIDENTIALITY
A.
As used in this 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 Contractor in the performance of this
Contract
B.
The parties agree that all data, including originals, images, and reproductions,
prepared by, obtained by, or transmitted to Contractor in connection with
Contractor's performance of this Contract is confidential and proprietary
Information belonging to the City.
C.
Contractor will not divulge data to any third party without first obtaining the written
consent of the City. Contractor 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 provided Contractor has first given ^e required notice to the
City:
1. Data, which was known to Contractor before its perfonnance under this
Contract unless the data was acquired in connectiori with the Work
performed for the City;
2. Data which was acquired by Contractor in its performance under this
Contract and which was disclosed to Contractor by a third party, who to the
best of Contractor’s knowledge and belief, had the legal right to make
disclosures and Contractor is not otherwise required to hold the data in
confidence; or
3. Data, which is required to be disclosed by virtue of law, regulation, or court
order to which Contractor is subject.
D.
In the event Contractor is required or requested to disclose data to a third party, or
any other information to which Contractor became privy as a result of any other
contract with the City, Contractor will first notify ttie City as required in this Article
of the request or demand for the data. Contractor will give the City sufficient facts
so that the City can be given an opportunity to first give its consent or take any
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action the City may consider appropriate to protect the data or other information
from disclosure.
E.
Unless prohibited by law. within ten (10) days after completion of services for a
third party on real or personal property owned or leased by the City, Contractor will
promptly deliver, as stated in this Article, a copy of all data to the City. All data will
continue to be subject to the confidentiality requirements of this Contract.
F.
Contractor 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 vioiated by Contractor, its employees, agents or Subconsultants. Solely
for the purposes of seeking injunctive relief, it is agreed that a breach of this Article
will be corisidered to cause irreparable harm that justifies injunctive relief in court.
11.35 CONFLICT OF INTEREST
A.
To evaluate and avoid potential conflicts of interest, Contractor will provide written
notice to the City, as stated in this Article, of any woi1< or services performed by
Contractor for third parties that may involve or be associated with any real property
or personal property owned or leased by the City. The notice will be given seven
(7) business days before commencement of the Project by Contractor for a third
party, or seven (7) business days before an adverse actiori as defined below.
Written notice and disclosure will be sent to the City Senior Representative
identified in Article 7.4.
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
3. Using data to produce income for Contractor or its employees
independently of performing the services under this Contract, without first
obtaining the written consent of the City.
C.
Contractor represents that except for those persons, entities and projects identified
to the City, the services to be performed by Contractor 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.
Contractor’s failure to provide a written notice and disclosure of the information
stated in this Article on Conflicts of Interest will constitute a material breach of this
Contract.
E.
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
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eontract No. 2026-006-COS
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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.
11.36 COMMENCEMENT OF STATUTORY LIMITATION PERIOD AND STATUTE OF
REPOSE
A.
Before Final Completion. As to acts or failures to act occurring before the relevant
date of Final Completion, any applicable statute of limitations will commence to run
and any alleged cause of action will be considered to have accrued in any and all
events not later than the date of Final Completion.
B.
Between Punch List Preparation and Final Completion. As to acts or failures to
act occurring between the relevant date of Punch List Preparation and before Final
Completion, any applicable statute of limitation will begin to run and any alleged
cause of action will be considered to have accrued in any events not later than the
date of Final Completion.
C.
After Completion. As to acts or failures to act occurring after the date of Final
Completion, any applicable statute of limitations vtnil commence to run and any
aileged cause of action will be considered to have accrued in any and all events
not later than the date of any correction of the Work or failure to correct the Work
by the Contractor, or the date of actual commission of any other act or failure to
perform any duty or obligation by the Contractor or the City, whichever occurs last.
D.
Statute of Repose. The time period for the applicable Statute of Repose will
commence to run at the time specified in A.R.S. §12-552 as it is amended or
renumbered from time to time.
11.37 LOSS AND DAMAGES
All loss or damage arising out of the nature of the Work to be done or from the action of
the elements, or from any unforeseen circumstances. In the prosecution.of the same, or
from any unusual obstructions or difficulties which may be encountered in or during the
prosecution of the Work, or from any casualty whatsoever of every description, will be
sustained and borne by Contractor at its own cost and expense.
11.38 RIGHTS-OF-WAY
The M.A.G. Standard Specification 107.12 is modified to read as follows: “Contractor, at
its own expense, is responsible for the acquisition of any necessary temporary
easements for construction purposes, storage and maintenance purposes, which are
required in addition to existing easements or rights of way secured by the City as
indicated upon the plans."
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11.39 EXISTING TRAFFIC AND STREET SIGNS AND TRAFFIC SIGNAL EQUIPMENT
Contractor will use due care when excavating at or near intersections where traffic signal
underground conduit is iocated. Contractor wili notify the Transportation Maintenance
Traffic Signal Division (tel. 480.312.5620) at least forty-eight (48) hours in advance of
any work at the intersections. Contractor will be responsible for the installation and
maintenance of temporary overhead traffic signal cable as specified by the Traffic
Engineering Director when underground conduit Is to be severed by excavations at the
intersection. The Transportation Maintenance Manager will have all underground traffic
conduit iocated and will provide the necessary City Technicians to assist Contractor in
identifying wiring phases and direction of conduit runs upon twenty-four (24) hours’
notice from Contractor and at least one (1) day before Contractor’s scheduled wiring and
Installation of temporary cables. Contractor will be responsible for the wiring and
connection of all temporary cable within the pull boxes and terminal compartments. The
Transportation Maintenance Manager will provide a City technician to assist Contractor
vvith connecting field wiring within the traffic signal control cabinet. Contractor will
provide, at its expense, an off-duty uniformed Police Officer to direct traffic while the
traffic signal is turned off and the wiring is transfemed. Contractor will be responsible as
specified by the Traffic Engineering Manager for the repair and restoration of all traffic
signal overhead and underground items that have been damaged or modified. The City
does not permit the splicing of Magnetic Detector Loops.
11.40 CERTIFICATION OF USE OF BENCHMARKS
In compliance with the City’s Design Standards & Policies Manual (DS&PM), Sections
9-1.1 and 9-1.301, it is the City’s intent that Contractor must use both horizontal and
vertical benchmarks with City of Scottsdale published values for any survey on all public
works projects. These published values are available for public use at the following
website:
httDs://eservices.scottsdaleaz.Qov/maps/benchmarks. AT LEAST 1
HORIZONTAL AND 1 VERTICAL BENCHMARK MUST MATCH THE NORTHING,
EASTING OR ELEVATION VALUES PUBLISHED ON THE CITY’S WEBSITE. If
required by the City, Contractor must sign and submit with this Contract, the Certificate
of Use attached and by reference made a part of this Contract.
11.41 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. Contractor, its Subcontractors, Subconsultants and Suppliers, shall pay all
Federal, state and local taxes applicable to its operation and any persons employed by
Contractor, its Subcontractors, Subconsultants and Suppliers, except as may be
othen/vise provided In this Contract. Contractor 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 aind regulations and any other costs including
transaction privilege taxes, unemployment compensation Insurance, Social Security and
Worker’s Compensation.
11.42 ISRAEL BOYCOTT/FORCED LABOR PROVISIONS
By executing this contract, Contractor certifies that it is not currently engaged in and will
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Contract No. 2026-006-COS
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not for the duration of this contract engage in boycott activity proscribed by A.R.S. § 35-
393 ef seg, as amended.
Pursuant to A.R.S. § 35-394, as amended. Contractor 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 labor or any goods
or services produced by the forced labor of ethnic Uyghurs in the People's Republic
of China.
If Contractor becomes aware during the term of this Contract that Contractor is not in
compliance with this Article, Contractor shall notify the City within five (5) business days
after becoming aware of the noncompliance. Failure of (5ontractor to provide a written
certification that Contractor has remedied the noncompliance within one hundred eighty
(180) days after notifying the City of its noncdmpliance will result in automatic termination
of this Contract, unless an earlier contract termination, cancellation, or expiration date
applies!
ARTICLE 12 - DEFINITIONS
“Allowance" means an agreed amount by the City and Contractor for items which may be required
to complete the scope of work.
“As-built Document” - “As-built in construction Is equivalent to “as-is.” Drawings deemed “as-
built" are final drawings that include all changes made during the actual construction process.
These drawings represent the actual existing constructed conditions as opposed to designs or a
proposed condition. The As-built Documents should be per A R.S. § 32-152.
“Blueline or Blackline Prints” - Prints that allows comparison of document versions to show what
has been revised.
“City” means the City of Scottsdale, Arizona, an Arizona municipal corporation. Regulatory
activities handled by the City of Scottsdale Development Services, Planning and Fire
Departments or any other City department are not subject to the responsibilities of the City under
this Contract.
“City’s Representative” means the person designated In Article 7.4(A)(2).
"City’s Senior Representative" means the person designated In Article 7.4(A)(1).
“Construction Coordinator” means a City employee who coordinates the daily construction
activities with Contractor, and with their Inspection staff that performs quality control inspections,
enforces project plans and specifications and adopted City codes and ordinances.
“Construction Documents" means the plans, specifications and drawings prepared by the Design
Professional after correcting for permit review requirements and incorporating addenda and
approved Job Order Adjustments.
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“Gonstruction Fee” means Contractor’s home office overhead and profit, whether at Contractor’s
principal or branch offices. This includes the home office costs and any limitations or exclusions
that may be included in the General Conditions for the construction phase.
“Contract” or “Job Order Contract” means this fully executed Contract between the City and
Contractor.
“Contract Administrator" means the person designated in Article 7.4(A) or designee. The Contract
Administrator will serve as Contractor’s primary point of contact with the City, monitor Contractor’s
performance, review and approve invoices, establish delivery schedules, and in conjunction with
Purchasing ensure Certificates of Insurance are current, conform to the requirements of this
Contract, and are in the City’s possession. Contractor will direct any reports and/or special
requests to the Contract Administrator.
"Contract Documents” means the following items and documents in descending order of
precedence executed by the City and Contractor: (1) Change Orders; (2) Job Order Adjustments;
(3) Contract Modifications; (4) Job Orders; (5) this Contract including all exhibits and attachments;
(6) Contractor’s Proposal (if any); (7) Contractor Statement of Qualifications.
“Contract Modification” means a specific written concurrence between the City and Contractor for
changes to this Contract consistent with the City of Scottsdale Procurement Code, as amended.
“Contract Price” means the amount or amounts stated in Article 4 subject to any Contract
Modifications.
“Contract Services” means the services required by the Contract Documents.
“Contract Time(s)” means the time stated in Article 3, subject to Contract Modifications as
permitted by this Contract.
“Contractor” is Contractor selected by the City to provide or procure construction services as
detailed in this Job Order Contract
“Contractor Payment Request” means the City form used by Contractor to request progress
payments for Job Orders in accordance with Article 6.
“Contractor’s Representative” means the person described in Article 7.4(B)(2).
"Contractor’s Senior Representative" means the person described in Article 7.4(B)(1).
Day(s)’’ means calendar days unless otherwise specifically noted in the Contract Documents.
M
“Delay” means an unanticipated event or interference with the progress of a critical path work
activity being performed at the time that causes the completion date of the project to be extended.
Delays may be caused by the City, Contractor, third parties or Force Majeure events. Delays may
be excusable, compensable, non-compensable or concurrent.
“Delay, Compensable" means delay that results from the City’s actions or inactions that entitle
Contractor to both a time extension and delay damages.
“Delay, Concurrent” means two (2) or more delays, within the same timeframe, both of which
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would independently impact the Project Schedule. If one delay is caused by the City and the
other by Contractor, Contractor will generally be entitled to an excusable, non-compensable time
extension, to the degree the delays may “overlap."
“Delay, Excusable” means an unforeseeable delay caused by an event beyond the control and
without the fault or negligence of Contractor (Including its Suppliers and Subcontractors).
Excusable delays may be compensable or non-compensable, depending upon whether the terms
of the Contract or the law allows recovery of delay costs. Unless otherwise shown. It will generally
be presumed that these delays are non-compensable.
“Delay, Non-Excusable” means a delay within the control of Contractor, Its Suppliers and
Subcontractors, or a delay resulting from a risk taken by Contractor under the terms of the
Contract. Contractor will not be due any time extension or delay damages, and may be
responsible for paying to the City, actual or liquidated damages for the delay.
“Deliverables" means tiie work products prepared by Contractor in performing the scope of work
described in this Contract. Some Of the major deliverables to be prepar^ and provided by
Contractor may Include, but are not limited to; Construction Management Plan, Project Schedule,
Schedule of Values, alternative system evaluations, procurement strategies and plans, cost
estimates, constmctlon market surveys, cash flow projections. Subcontractor procurement plan,
Subcontractor Contracts, Subcontractor bid packages. Supplier Contracts, and others as
indicated in this Contract or required by the Project Team.
“Design Professional” means a qualified, licensed design professional who kirnishes design or
construction administration Services.
"Differing Site Conditions” comply with M.A.G. Standard Specifications, Subsection 102.4.
“Effective Date” means the date that this Contract takes effect and becomes operative and
enforceable. The Effective Date of this Contract shall be the date on which it is executed by the
City, as noted at the beginning of this Contract.
"Field Order” means a written field directive prepared and signed by the City, directing a change
in work that may or may not include an adjustment in contract price or contract time.
“Final Acceptance” means the completion of a Job Order as prescribed in Article 3.5.
“Infonnatlonal Submittals” — Submittals are required (common with construction projects) for the
architect and engineer to verify that the correct products arid quantities will be installed on a
project.
“Job Order” or “Projecf means a specific scope of Contract Services done pursuant to an
individual Job Order and includes a specific written Contract between the City and Contractor for
a Job Order including a Scope of Work, a Job Order Price, a Job Order Time and any special
conditions that may apply to be performed under this Contract The Job Order includes the plans,
technical specifications, special provisions and Contractor’s proposal either by reference or
inclusion.
“Job Order Adjustment” or “Adjustment” means a written order signed by an authorized
representative of the City and which approves changes in the Work required under a Job Order,
the Job Order Price, or the Job Order Time consistent with the City of Scottsdale Procurement
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Contract No. 2026-006-COS
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Code, as amended.
“Job Order Notice-to-Proceed,” (NTP) means a written notice given by the City to Contractor fixing
the date on which Contractor will start to perform Contractor's obligations under that individual
Job Order.
“Job Order Price" means the amount negotiated between Contractor and the City for an individual
Job Order that includes costs, overhead, bonding, insurance, profit and other costs as agreed to
and calculated on the Unit Prices, Cost-coefficient and Special Items as prescribed in Article 4.
“Job Order Time" or “Duration of the Work” means the number of Days from a Job Order Notice-
to-Proceed to Substantial Completion. The approved Job. Order Time will be made part of this
Contract by executing an individual Job Order for that specific Project
“Legal Requirements" means all applicable federal, state and local laws, codes, ordinances,
rules, regulations, orders and decrees of any government or quasi-government entity having
jurisdiction over a Project or Site, the practices involved in a Project or Site, or any Work.
“Liquidated Damages” means an amount Contractor will pay in compliance with Article 3.6.
"Musf arid “will” as used In this Contract are mandatory.
“Owner Agent,” “City’s Agent” or “Owner Representative” see “City’s Senior Representative.”
“Payment Requesf means a monthly progress payment request that is based on a monthly
estimate of the dollar value of the Work completed.
“Product Data" means illustrations, standard schedules, performance charts, instructions,
brochures, diagrams and other infonmation furnished by Contractor to illustrate materials or
equipment for some portion of the Work.
"Professional Certification” - Professional certification Is a designation which indicates that a
person is qualified to perform a job or task. Professional certification can be trade certification or
professional designation.
“Project Record Documents” means the documents created pursuant to Article 1.9.
“Project Record Drawing Prints” - Set of current design drawings used by construction contractor
for reference during construction. These drawings are typically marked up during the construction
process and are used to develop the subsequent “as-builf drawings.
“Punch Lisf means those minor items of Work to be completed before Final Acceptance which
do not prevent the Project from being used for the purpose for which it is intended and which will
not prevent the issuance of a Certificate of Occupancy^
“Samples” means physical examples, which illustrate materials, equipment or workmanship and
establish standards by which the Work will be judged.
“Schedule of Values (SOV)” means the Document specified in the construction phase, which
divides the Job Order Price into pay items, such that the sum of all pay items equals the Job Order
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Contract No. 2026-006-COS
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Price for the construction phase Work, or for any portion of the Work having a separate specified
Job Order Price. The SOV may or may not be output from the Progress Schedule depending on
whether the Progress Schedule is cost-loaded of not:
“Shop Drawings” means drawings, diagrams, schedules and other data specially prepared for the
Work by Contractor or a Subcontractor, Sub-subcontractor, manufacturer, supplier or distributor
to illustrate some portion of the Work.
“Site" means the; land or premises on which a Job Order Is located. Contractor will require all
Subcontractors to include the street address of the Job Order in their contracts.
“Specifications” means those sections 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^ or “Subconsultant” means any person or entity retained by Contractor as an
independent contractor to perform a portion of the Contract Services and must include material
men and suppliers. All Subcontractors must be selected in accordance with the selection plan
stated in Article 1.13.
“Substantial Completion” means 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 dr a portion of it for its
intended purposes. This may include, but is not limited to: (1) approval by the City Fire Marshall
and local authorities (Certificate of Occupancy); (2) issuance of elevator permit; (3) demonstration
to the City that all systems are in place, functional, and displayed to the City or its representative;
(4) installation of all materials and equipment; (5) City review and acceptance of all systems; (6)
City review and acceptance of draft O&M manuals and record documents; (7) City operation and
maintenance training completed; (8) HVAC test and balance corhpleted [provide minimum 30
days before projected substantial completion]; (9) completed landscaping and site work; and (10)
final cleaning.
“Supplier” means a manufacturer, fabricator, supplier, distributor, material man or vendor having
a direct contract with Contractor or any Subcontractor to furnish materials or equipment to be
incorporated in the construction phase work by Contractor or any Subcontractor.
“Work" means the entire completed construction or the various separately identifiable parts pf 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 services and documents as required
by the Contract Documents for the construction phase.
[END OF TEXT- SIGNATURE PAGE TO FOLLOW]
(Revised 07/09/25)
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Contract No. 2026-006-COS
Solicitation No. RFSQ-022025^236
CITY OF SCOTTSDALE, ARIZONA
CONTRAa NO. 2026-006-COS
CONTRACT._________________
This Contract has been properly executed by the parties above named, on the date and year written above, to
be retained by the City Clerk.
Contractor agrees that this Contract, as awarded, is for the stated Work and understands that payment for the
Work will be made on the basis of the indicated amount, per the terms and conditions of this Contract.
CITY OF SCOTTSDALE, an
Arizona municipal corporation
By:____________________
Lisa Borowsky, Mayor
ATTEST:
Ben Lane, City Clerk
RECOMMENDED:
CONTRACTOR:
Chasse Building Team, Inc., an Arizona Corporation
By:.
darrifClmsi'i
.^2619:48 MST
Name: Barry Chasse
Title:
Owner
3/9/26 06:57 MST
Robert Franklin
Contract Administrator
3/9/26 09:47 MST
Jenn Myers, MPA, CPPO, NIGP-CPP, CPPB
Purchasing Director
(ImfWookf.
3/10/26 09:42 MST
George Woods
Safety & Risk Management Director
APPROVED AS TO FORM:
Xif/kTulk
3/10/26 09:54 MST
Luis E. Santaella, Interim City Attorney
By: Lydia Tulin, Assistant City Attorney
(Revised 07/09/25)
Page 66 of 66
Contract No. 2026-006-COS
Solicitation No. RFSQ-022025-236
EXHIBIT A
STATUTORY PERFORMANCE BOND
PURSUANT TO TITLE 34, CHAPTER 6,
OF THE ARIZONA REVISED STATUTES
(Penalty of this bond must be 100% of the Contract Amount)
KNOW ALL MEN BY THESE PRESENTS:
ThaL _____________________________ (hereinafter called the Principal) as Principal, and
___________________________, a corporation organized and existing under the laws of the State of
_____________ with its principal office in the City of____________
^_________ , (hereinafter called
the Surety), as Surety, are held and firmly bound unto the City of Scottsdale, County of Maricopa, State of
Arizona in the amount of___________________________ Dollars ($
_________ ), for the payment
whereof, the said Principal and Surety bind themselves, and their heirs, administrators, executors
successors and assigns, jointly and severally, firmiy by these presents.
WHEREAS, the Principal has entered into a certain written contract with the City of Scottsdale, dated the
___ day of_______________2026, for Bid No. (bid number), Project NO. (project number), (jjroject
name), which contract is hereby referred to and made a part hereof as fully and to the same extent as if
copied at length herein.
NOW THEREFORE, the condition of this obligation is sUch, that If the Principal faithfully performs and fulfills
all of the undertakings, covenants, terms, conditions and Contracts of the contract during the original term
of the contract and any extension of the contract, with or without notice to the surety, and during the life of
any guaranty required under the contract, and also performs and fulfils all of the undertakings, covenants,
terrns, conditions and Contracts of all duly authorized modifications of the contract that may hereafter be
made, notice of which modifications to the surety being hereby waived, the above obligation is void.
Otherwise it remains in full force and effect.
PROVIDED HOWEVER, that this Bond is executed pursuant to the provisions of Title 34, Chapter 6,
Arizona Revised Statutes, and all liabilities on this Bond will be determined in accordance with the
provisions of Title 34, Chapter 6, Arizona Revised Statutes, to the extent as if it were copied at len^ in
this Contract. The prevailing party in a suit on this bond will recover as part of the judgment reasonable
attorney fees that may be fixed by a Judge of the Court. The performance under this bond is limited to the
construction to be performed under the contract and does not Include any design services, preconstruction
services, financial services, maintenance services, operations services or any other related services
included in the contract.
WITNESS our hands the
. day of.
,2026.
PRINCIPAL
BY:
SURETY
(SEAL)
AGENCY OF RECORD
AGENCY ADDRESS
(Revised 03/17/25)
Page 1 of 1
Contract No. 2026-006-COS
Solicitation No. RFSQ-022025-236
EXHIBIT B
STATUTORY PAYMENT BOND
PURSUANT TO TITLE 34. CHAPTER 6.
OF THE ARIZONA REVISED STATUTES
(Penalty of this bond must be 100% of the Contract Amount)
KNOW ALL MEN BY THESE PRESENTS:
That,
(hereinafter called the Principal), as Principal, and
.a corporation organized and existing under the laws of the
_, with its principal office in the City of
State of____________
(hereinafter called the Surety), as Surety, are held and firmly bound unto the City of Scottsdale,
County of Maricopa, State of Arizona, in the amount of__________
^________________Pollars
($________________), for the payment whereof, the said Principal and Surety bind themselves,
and their heirs, administrators, executors, successors and assigns, jointly and severally, firmly by
these presents.
WHEREAS, the Principal has entered Into a certain written contract with the City of Scottsdale
dated the_____ day of ■____________, 2026, for Bid No. (bid number), Project No.
(project number), (project name), which contract is hereby referred to and made a part hereof as
fully and to the same extent as if copied at length herein.
NOW, THEREFORE, the condition of this obligation is such that if the Principal promptly pays all
monies due to all persons supplying labor or materials to the Principal or the Principal's
subcontractors in the prosecution of the work provided for in the contract, this obligation is void.
Otherwise It remains in full force and effect.
PROVIDED, HOWEVER, that this bond is executed pursuant to the provisions of Titie 34, Chapter
6, of the Arizona Revised Statutes, and all liabilities on this bond will be determined in accordance
with the provisions, conditions and limitations of Title 34. Chapter 6, Arizona Revised Statutes, to
the same extent as If they were copied at length In this Contract.
The prevailing party in a suit on this bond will recover as a part of the judgment reasonable
attorney fees that may be fixed by a Judge of the Court.
WITNESS our hands the
day of.
. 2026.
PRINCIPAL
BY:
SURETY (SEAL)
AGENCY OF RECORD
AGENCY ADDRESS
(Revised 03/17/25)
Page 1 Of 1
I
if
1.
i
Contract No. 2026-007>COS
Solicitation #RFSQ-022025-236
CITY OF SCOTTSDALE
JOB ORDER CONTRACT
NO. 2026-007-COS
(Revised 03/17/25)
ATTACHMENT 3
nl...T...-|.
Tr». »
/in. .M —
Contract No. 2026-007-COS
Solicitation #RFSQ-022025-236
TABLE OF CONTENTS
RECITALS............................................................... ........................ ......................... ....... 1
ARTICLE 1 - CONTRACTOR’S SERVICES AND RESPONSIBILITIES..................................1
ARTICLE 2 - CITY’S SERVICES AND RESPONSIBILITIES........
..... .....18
ARTICLE 3 - CONTRACT TIME AND JOB ORDER TIME...................................................21
ARTICLE 4- CONTRACT PRICE AND JOB ORDER PRICE...............................................23
ARTICLE 5 - CHANGES TO THE CONTRACT PRICE AND TIME.......... .....25
ARTICLE 6 - PROCEDURE FOR PAYMENT........ ..................... ................... 30
ARTICLE 7 - CLAIMS AND DISPUTES................................ ............................................ 34
ARTICLE 8 - SUSPENSION, TERMINATION AND CANCELLATION................... ......... 36
ARTICLE 9 - INSURANCE AND BONDS.................................. .......................................39
ARTICLE 10 - INDEMNIFICATION.............................. ......................... .........................46
ARTICLE 11 - GENERAL PROVISIONS...............
.......... .................................. . 50
ARTICLE 12 - DEFINITIONS........................... ............................................................... 61
EXHIBIT A - STATUTORY PERFORMANCE BOND
EXHIBIT B - STATUTORY PAYMENT BOND
(Revised 03/17/25)
Contract No. 2026-007-COS
Solicitation No. RFSQ-G22025-236
CITY OF SCOTTSDALE
CONTRACT NO. 2026-007-COS
THIS CONTRACT, (“Contract") Is entered into this_____^day of_
2026.
(“Effective Date”) between the City of Scottsdale, an Arizona municipal corporation (“City”) and
CORE Construction, Inc., an Arizona Corporation, ("Contractor").
RECITALS
A.
The Mayor of the City of Scottsdale, Arizona, is authorized and empowered by the
provisions of the City Charter to execute contracts for construction and related services.
B.
The City intends to contract for construction and related services with Contractor for one
or more individual Job Orders.
C.
Contractor has represented to the City the ability to provide or procure the required
construction and related services and, based on this representation, the City engages
Contractor for these services.
FOR AND IN CONSIDERATION of the mutual covenants and considerations contained in this
Contract, it is agreed by the City and Contractor as follows:
ARTICLg 1 - CONTRACTOR'S SgRVlCgS AND RESPONSIBILITIES
1.1. GENERAL SERVICES
A.
Contractor will furnish any and all labor, materials, equipment, transportation,
utilities, services and facilities specified in the individual Job Order for which It is
issued a Job Order Notice-to-Proceed for Work in accordance with this Contract.
The City may determine it is In Its best Interest to furnish materials and equipment
for an individual Job Order in accordance with the Job Order.
B.
The Work will be performed in a good, workmanlike and substantial manner and
to the satisfaction of the City Engineer and under the monitoring of the City
Engineer, or designee, with the care and skill of a qualified contractor in Scottsdale,
Arizona.
1. Minor design services may be required for some Job Orders. For those Job
Orders that may require minor design Services, Contractor will seek the
services of an Arizona registered architect or engineering professional to
prepare plans for permitting. The procurement of minor design services will
be in accordance With the City’s procurement procedures and code. If the
services of a design professional are used, the design professional must
maintain at least $1,000,000 Professional Liability Coverage.
2. All documents prepared by Contractor are subject to review by the City.
Review by the City is for the benefit of the City only, is not intended to be
for the benefit of any other person and does not relieve Contractor from the
(Revised 07/09/25)
Page 1 of 66
Contract No. 2026-007-COS
Solicitation No. RFS(l-022025-236
professional liability associated with the documents they have prepared.
3. Contractor’s Representative shall be reasonably available to the City and
will have the necessary expertise and experience required to supervise the
Contract Services. A Contractor’s Representative will be assigned for each
Job Order. Contractor’s Representative will communicate regularly with the
City and will be vested with the authority to act on behalf of Contractor.
C. The City is a member of $AVE cooperative purchasing group. $AVE includes the
State of Arizona, Maricopa County, many Phoenix metropolitan area
municipalities, and many K-12 unified school districts. Under $AVE Cooperate
Purchasing Agreement, and with the concurrence of successful Respondents
under this solicitation, a member of $AVE may access a contract resulting from
this solicitation issued by the City. By signing the JOC Contract, Contractor agrees
to allow other $AVE members the ability to purchase their needs and “use” this
contract for JOC requirements.
1.2. GOVERNMENT APPROVALS AND PERMITS
A.
Unless otherwise provided. Contractor will obtain or assist the City in obtaining all
necessary permits, approvals and licenses required for the prosecution of the Work
from any government or quasi-government entity having jurisdiction over the
Project. Contractor is responsible for obtaining payment for the necessary
environmental permits or file the necessary environmental notices.
B.
Copies of these permits and notices must be provided to the City's Representative
before starting the permitted activity. This provision does not constitute an
assumption by the City of an obligation of any kind for violation of the permit or
notice requirements.
C.
The City is responsible for the City of Scottsdale review and permit(s) fees for
building and demolition permits. The City will pay City review fees for grading and
drainage, water, sewer, stonn water management, and landscaping. The City will
also pay for City utility design fees for permanent services.
D.
Contractor is responsible for all other permits and review fees not specifically listed
in Article 1.2(C) above.
E.
Contractor is responsible for the cost of construction-related water meter(s), water
and sewer taps, fire lines and taps, and all water bills on the project meters until
Substantial Completion of the Project. Arrangements for construction water will be
Contractor’s responsibility. Construction water does not include "test water”
required to complete new water line pressure tests.
F.
The M.A.G. Standard Specification 107.12 is modified to read as follows:
“Contractor, at its own expense, is responsible for the acquisition of any necessary
temporary easements for construction purposes, storage, maintenance, and
refuse haul-off as indicated upon the plans, which are required in addition to
existing easements or rights-of-way secured by the City.”
(Revised 07/09/25)
Page 2 of 66
DiMATnl/ DiinHIa Tn> UnAch^lPt iMnA
Contract No. 2026-007-COS
Solicitation No. RFSQ-022025-236
1.3. PRE-CONSTRUCTION CONFERENCE
A.
After issuance of a Job Order and before the commencement of any Work on any
individual Job Order, a pre-construction conference may be scheduled.
B.
The purpose of this conference is to establish a working relationship between
Contractor, design firms, utility firms, and various City departments. The agenda
will include critical elements of the work schedule, submittal schedule, level of
Record Drawings required, cost breakdown of major lump sum items, payment
application and processing, coordination with the utility firms involved, and
emergency telephone numbers for all representatives involved in the course of
construction.
C.
At a minimum, attendees will include Contractor Representative, who is authorized
to execute and sign documents on behalf of the firm, the job superintendent, and
Contractor's safety officer.
D.
The Job Order Notice-to-Proceed date will be established.
E.
Contractor will provide a Baseline Project Schedule indicating duration, manpower
and equipment resources required to complete all major work activities. The City
and Design Team will review and comment on the Baseline Project Schedule.
Contractor will revise the Baseline Project Schedule to the satisfaction of the City’s
Representative. No work will begin until the City accepts the Baseline Project
Schedule.
F.
Contractor will submit a Schedule of Values based on the work and bids accepted
from selected Subcontractors. These values will reflect the actual labor time,
materials, profit and overhead for the Work or in accordance with Contractor’s price
book.
1.4. CONTROL OF THE WORK
Contractor will properly guard and protect all partially finished work and will be
responsible for the Work until the entire Job Order Is completed and accepted by the
City. Any payment for completed portions of the Work will not release Contractor from
this responsibility; however, he will turn over the entire Work in full compliance with the
specifications or Job Order before final settlement is made. In case of suspension of the
Work for any cause whatever. Contractor is responsible for the Project and will take all
precautions necessary to prevent damage to the Project and will erect any necessary
temporary structures, signs, or other facilities at no cost to the City.
A.
After all Work under the Job Order is completed, Contractor will remove all loose
concrete, lumber, wire, reinforcing, debris and other materials not incorporated in
the Work from the site of the Project.
B.
Unless the Job Order states that it is the responsibility of the City or a separate
contractor. Contractor will provide through itself or Subcontractors the necessary
supervision, labor, inspection, testing, start-up, material, equipment, machinery,
temporary utilities, other temporary facilities, temporary fencing, roll-offs, and dust
(Revised 07/09/25)
Page 3 of 66
I. PS. .. .11 . »l“v.
Contract No. 2026-007-COS
Solicitation No. RFSQ-022025-236
control to permit Contractor to complete the Work consistent with the Job Order.
C.
Contractor will perform all construction activities efficiently and with the requisite
expertise, skill and competence to satisfy the requirements of the Job Order.
Contractor will at all times exercise complete and exclusive control over the means,
methods, sequences and techniques of construction.
D.
Survey stakes and marks required for the completion of the construction shown on
the plans and described in the specifications will be furnished by Contractor.
E.
Contractor, its designee or Contractor’s Superintendent will be present at the Work
at all times that construction activities are taking place.
1. All elements of the Work, such as concrete work, pipe work, etc., will be
under the direct supervision of a foreman or his/her designated
representative on the Site who will have the authority to take actions
required to properly carry out that particular element of the Work.
2. In the event of noncompliance with Article 5.1, the City may require
Contractor to stop or suspend the Work in whole or in part.
F.
Where the Job Order requires that a particular product be installed or applied by an
applicator approved by the manufacturer, it is Contractor’s responsibility to ensure
the Subcontractor employed for that portion of the Work is pre-approved by the
manufacturer.
G.
Before ordering materials for or doing the Work, Contractor and each
Subcontractor will verify measurements at the Site and will be responsible for the
correctness of these measurements. No extra charge or compensation will be
allowed because of differences between actual dimensions and the dimensions
indicated on the drawings; differences, which may be found, will be submitted to
the City for resolution before proceeding with the Work.
H.
Contractor will take field measurements and verify field conditions and carefully
compare these field measurements, conditions and other information known to
Contractor with the Job Order before starting activities. Errors, inconsistencies or
omissions discovered will be immediately reported to the City.
I.
Contractor will establish and maintain all building and construction grades, lines,
levels, and benchmarks, and will be responsible for the accuracy and protection of
these items. This portion of the Work will be performed or supervised by an Arizona
licensed civil engineer or surveyor.
J.
Any person employed by Contractor or any Subcontractor who, in the opinion of the
City, does not perform his/her portion of the Work in a proper, skill^l and safe
manner or is intemperate or disorderly will, at the written request of the City, be
removed from the Work by Contractor or Subcontractor employing this person, and
will not be employed again in any portion of the Work without the written approval of
the City. Contractor or Subcontractor will hold the City harmless from damages or
claims, which may occur in the enforcement of this Article.
(Revised 07/09/25)
Page 4 of 66
Contract No, 2026-007-COS
Solicitation No. RFSCl-022025-236
K.
Contractor assumes responsibility for the proper performance of the Work of
Subcontractors and any acts and omissions in connection with this performance.
Nothing in the Contract Documents is intended or considered to create any legal
or contractual relationship between the City and any Subcontractor or Sub-
Subcontractor, including but not limited to any third-party beneficiary rights.
L.
Contractor will coordinate the activities of all Subcontractors. If the City performs
other work on the Project or at the Site with separate contractors under the City’s
control, Contractor agrees to reasonably cooperate and coordinate its activities
with those of the separate contractors so that the Project can be completed in an
orderly and coordinated manner without unreasonable disruption.
M.
On a daily basis. Contractor will prepare a Contractor’s Daily Report The City’s
CPM Project Inspector or the Public Works Project Coordinator will provide a
sample report format to Contactor. The report will detail the activities that took
place during the course of the day, all equipment utilized and the number of hours
operated, and all personnel on the Site including Subcontractors. Unless otherwise
arranged, the Daily Reports will be submitted on a daily basis to the City’s CPM
Inspector or the Public Work’s Project Coordinator. The Daily Reports will also be
made available to the City’s Representative upon request. Failure to provide Dally
Reports as arranged or requested above will result in the retention of monthly
progress payments until the Reports are brought up to date.
N.
In the event of noncohripliance with this Article 1.4, the City niay require Contractor
to stop or suspend the construction in whole or in part. Any suspension due to
Contractor’s noncompliance will not be considered a basis for an increase in the
Job Order Price or extension of the Job Order Time.
1.5. CONTROL OF THE WORK SITE
A.
Throughout all phases of construction, including suspension of the Work,
Contractor will keep the Site reasonably free from debris, trash and construction
wastes to permit Contractor to perform its construction services efficiently, safely
and without interfering with the use of adjacent land areas. Upon Substantial
Completion of the Work, or a portion of the Work, Contractor will remove all debris,
trash, construction waste, materials, equipment, machinery and tools arising from
the Work or applicable portions of it to permit the City to occupy the Project or a
portion of the Project for its intended use.
B.
Dust Control. Contractor will take whatever steps, procedures or means required
to prevent abnormal dust conditions due to his construction operations in
connection with this Contract. The dust control measures will be maintained at all
times during construction of the Project(s) to the satisfaction of the City In
accordance with the requirements of the Maricopa County Health Department Air
Pollution Control Regulations and City of Scottsdale Supplement to M-A.G.
Standard Specifications together with applicable provisions of Federal and State
Law.
C.
Dust Control Coordinator. At any City construction site of 5 acres or more of
(Revised 07/09/25)
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Contract No. 2026-007-COS
Solicitation No. RF5Q-022025-236
disturbed surface area, subject to a permit issued by a Control Officer requiring
control of PM-10 emissions from dust generating operations, Contractor must have
at all times at the Site, at least one (1) Dust Control Coordinator trained in
accordance with the requirements of A.R.S. §49-474.05 during primary dust
generating operations that is related to the purposes for which the Dust Control
Permit was issued. The Dust Control Coordinator must have full authority to ensure
that dust control measures are implemented at the Site, including authority to
conduct inspections, deploy dust suppression resources, and modify or shutdown
activities as needed to control dust. The Dust Control Coordinator must be
responsible for managing dust prevention and dust control on the Site, including the
use of leaf blowers and street sweeping equipment. The Dust Control Coordinator
must have a valid Dust Training Certification Identification Card readily accessible
on the Site while acting as the Dust Control Coordinator.
The requirements described in the above Article do not apply if all three (3) of the
following circumstances are present:
1. The area of disturbed surface area is less than five (5) acres.
2. The previously disturbed areas are stabilized in accordance with the
requirements of any applicable County rules.
3. Contractor with the Dust Control Permit provides notice of the acreage
stabilized to the County Control Officer.
On sites with greater than one (1) acre of disturbed surface area. Contractor
holding a Dust Control permit issued by a County Control Officer, who is required
to obtain a single permit for multiple noncontiguous sites that is required to control
PM-10 emissions from dust generating operations must have at least one (1)
individual who is designated as a Dust Control Coordinator. The Dust Control
Coordinator must have a valid Dust Training Certification Identification Card readily
accessible on the Site while acting as the Dust Control Coordinator. The Dust
Control Coordinator must be present on Site at all times during primary dust
generating activities that are related to the purposes for which the permit was
issued.
A Subcontractor who is engaged in dust generating operations at a Site that is
subject to a Dust Control Permit issued by a County Control Officer and that
requires the control of PM-10 emissions from dust generating operations must
register with the County Control Officer. The Subcontractor must have its
registration number readily accessible on the Site while conducting any dust
generating operations.
D.
Storage on Site. Only materials and equipment, which are to be used directly in
the Work, will be brought to and stored on the Site by Contractor. When equipment
is no longer required for the Work, it will be removed promptly from the Site.
Protection of construction materials and equipment stored at the Site from weather,
theft, damage and all other adversity is solely the responsibility of Contractor.
E.
Waste Products. Contractor is responsible for the cost to dispose of all waste
products including excess earth material which will not be incorporated into the
(Revised 07/09/25)
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Contract No. 2026-007-COS
Solicitation No. RFSQ-022025-236
Work under this Contract. The waste product referred to will become the property
of Contractor. Contractor will provide for the legal disposal at an appropriate off
site location for all waste products, debris, etc., and will make necessary
arrangements for its disposal. Any disposal/dumping of waste products or unused
materials will conform to applicable Federal, State and Local Regulations.
F.
Contractor will supervise and direct the Work. Contractor will be solely responsible
for the means, methods, techniques, sequences and procedures of construction.
Contractor will employ and maintain on the Site a qualified supervisor or
superintendent who will have been designated in writing by Contractor as
Contractor’s Representative. The Contractor’s Representative will have full
authority to act on behalf of Contractor and all communications given to the
Representative will be as binding as if given to Contractor. The Representative will
be present on the Site at all times as required to perform adequate supervision and
coordination of the Work. Where appropriate all Provisions of M.A.G., Section
105.5, will be applicable.
G.
Abnormal Weather. In the event of abnormal weather conditions, such as
windstorms, rainstorms, etc.. Contractor will immediately inspect the Work and Site
and take all necessary actions to insure public access and safety are maintained.
H.
Damage to Property at the Site. Contractor will be responsible for any and all
damage or loss to property at the Site, except to the extent caused by the acts or
omissions of the City or its representatives, employees or agents and not covered
by insurance. The costs and expenses incurred by Contractor under this Article
will be paid as a Cost of the Work to the extent that these costs and expenses are
in excess of or are not covered by required insurance, and to the extent of any
deductibles, but they will not increase the Job Order Price.
I.
Damage to Property of Others. Contractor will avoid damage, as a result of
Contractor’s operations, to existing sidewalks, curbs, streets, alleys, pavements,
utilities, adjacent property, the work of separate contractors and the property of the
City. Contractor will repair any damage caused by the operations of Contractor,
and these costs will be paid as a Cost of the Work to the extent that the costs and
expenses are in excess of or are not covered by required insurance, and to the
extent of any deductible, but they will not increase the Job Order Price.
J.
Failure of Contractor to Repair Damage. Within ten (10) days written notice to
Contractor by the City, if Contractor fails to commence the repair of damage to
property as provided in Articles 1.5(H) and 1.5(1), and diligently pursue the repair,
then the City may elect to repair the damages at its own expense and to deduct
from payments due or to become due to Contractor, amounts paid or incurred by
the City in correcting the damage (provided Contractor has not commenced such
repair during the 10 day notice period).
1.6. SHOP DRAWINGS, PRODUCT DATA AND SAMPLES
A. Shop Drawings, Product Data, Samples and similar submittals are not Contract
Documents. The purpose of their submittal is to demonstrate for those portions of
the Work for which submittals are required the way Contractor proposes to
(Revised 07/09/25)
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Contract No. 2026-007-COS
Solicitation No. RFS(l-022025-236
conform to the information given and the design concept expressed in the Contract
Documents. Contractor will review, approve and verify that ail submittals meet the
intent of the Contract Documents.
B.
Three (3) copies of each Shop Drawing, Product Data, Sample, and similar
submittals required by the Contract Documents will be delivered to the City in
compliance with the approved schedule so as to cause no delay in the Work or in
the activities of the City or of separate contractors. Submittals made by Contractor,
which are not required by the Contract Documents, may be returned without
action.
C.
Contractor will perform no portion of the Work requiring submittal and review of
Shop Drawings, Product Data, Samples, or similar submittals until the respective
submittal has been approved by the City. All Work will be in compliance with
approved submittals. Contractor will not be relieved of responsibility for any errors
or omissions in Shop Drawings, Product Data, Samples, or similar submittals by
the City's approval. Deviation from the original specifications will be specifically
noted on the submittal to the City and the City will be allowed seven (7) days to
approve or reject any deviations.
D.
By approving, verifying and submitting Shop Drawings, Product Data, Samples
and similar submittals, Contractor represents that Contractor has determined and
verified materials, field measurements and field construction criteria, or will do so,
and has checked and coordinated the information contained within the submittals
with the requirements of the Work and of the Job Order.
E.
Contractor will not be relieved of responsibility for deviations from requirements of
the Job Order by the City's approval of Shop Drawings, Product Data, Samples or
similar submittals unless Contractor has specifically informed the City in writing of
the deviation at the time of submittal and the City has given written approval to the
specific deviation. Contractor will not be relieved of responsibility for errors or
omissions in Shop Drawings, Product Data, Samples, or similar submittals by the
City’s approval.
F.
Contractor will direct specific attention, in writing or on resubmitted Shop Drawings,
Product Data, Samples, or similar submittals, to revisions other than those
requested by the City on previous submittals.
G.
Informational submittals upon which the City is not expected to take responsive
action may be so identified in the Contract Documents.
H.
When professional certification of performance criteria of materials, systems or
equipment is required by the Job Order, the City will be entitled to rely upon the
accuracy and completeness of the calculations and certifications.
1.7. QUALITY CONTROL, TESTING AND INSPECTION
A. Inspection. The City’s Inspectors may be stationed on the Site to report to the City’s
Representative, or designee, as to the progress of the Work. The City’s
Representative, or designee, may also report as to the manner in which the Work
(Revised 07/09/25)
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Contract No. 2026-007«COS
Solicitation No. RFS(l-022025-236
is being performed and report whenever it appears that material furnished or Work
performed by Contractor fails to fulfill the requirements of the specifications, this
Contract or the Job Order. The Inspector may direct the attention of Contractor to
any failure or infringement but this inspection will not relieve Contractor from any
obligation to furnish acceptable materials or to provide completed construction that
complies with the Contract or the Job Order in every way. The Inspector is for the
purpose of assisting the City’s Representative and should not be confused with an
Inspector with a City regulatory agency of with an inspector from a laboratory under
Article 1.8.
B.
In case of any dispute arising between the Inspector and Contractor as to material
furnished or the manner of performing the Work, the Inspector will have the
authority to reject materials or suspend the Work until the question and issue can
be referred to and decided by the City, inspectors are not authorized to revoke,
alter, enlarge, relax, or release any requirements of the specifications. Inspectors
will in no case act as foremen or perform other duties for Contractor or interfere
with the management of the Work by Contractor.
C.
Inspection or supervision by the City’s Representative, or designee, will not be
considered as direct control of an individual worker or the Work. The direct control
will be solely the responsibility of Contractor.
D.
The furnishing of these services for the City will not make the City responsible for
or give the City control over construction means, methods, techniques, sequenced
procedures or for safety precautions or programs or responsibility for Contractor’s
failure to perform the Work in compliance vrith the Contract Documents.
1.8. MATERIALS TESTING
All materials used In the Work will be new and unused, unless otherwise noted, and will
meet all quality requirements of the Job Order.
A.
All construction materials to be used on the Work or incorporated into the Work,
equipment, plant, tools, appliances or methods to be used in the Work may be
subject to the inspection and approval or rejection of the City. Any materials
rejected by the City will be removed immediately and replaced in a manner
acceptable to the City without increasing the Job Oi^er Price.
B.
The procedures and methods used to sample and test material will be determined
by the City. Unless otherwise specified, samples and tests will be made in
compliance with the following: The City of Scottsdale Minimum Sampling
Frequency Guide, the City of Scottsdale Material Testing Manual and the standard
methods of AASHTO or ASTM, DSPM and MAG supplements.
C.
The City will select a pre-quaiified City or Independent Testing Laboratory and will
pay for initial City Acceptance Testing.
1. When the first and subsequent tests indicate noncompliance with the Job
Order, the cost associated with that noncompliance will be incurred by
Contractor without increasing the Job Order Price.
(Revised 07/09/25)
Page 9 of 66
D.
E.
F.
Contract No. 2026-007-COS
Solicitation No. RFS(i-022025-236
2. When the first and subsequent tests indicate noncompliance with the Job
Order, all retesting will be performed by the same testing agency. The cost
associated with the noncompliance will be incurred by Contractor without
Increasing the Job Order Price.
3. Contractor will cooperate with the selected testing laboratory and all others
responsible for the testing and inspecting of the Work and w|ll provide them
access to the Work at ail times.
At the option of the City, materials may be approved at the source of supply before
delivery is started.
Code compliance testing and inspections required by codes or ordinances, or by
a plan approval authority, and which are made by a legally constituted authority,
will be incurred by Contractor without increasing the Job Order Price, unless
otherwise provided in the Job Order.
Contractor’s convenience and quality control testing and inspections will be the
sole responsibility of Contractor and incun-ed by Contractor without increasing the
Job Order Price..
G. All soils and materials testing will be performed and paid for by the City. The City
will order tests and distribute test results for all construction areas. The City will be
responsible for ordering testing and will distribute test results vvithin 24 hours of
receipt.
1.9. PROJECT RECORD DOCUMENT/AS BUILTS
A. During the construction period. Contractor will maintain at the Site a set of Blueline
or Biackline Prints of the Construction Document drawings and Shop Drawings for
Project Record Document purposes.
1. Contractor will mark these drawings to indicate the actual Installation where
the installation varies appreciably from the original Construction
Documents. Contractor will give particular attention to information on
concealed elements, which would be difficult to identify or measure and
record later, items required to be marked include but are not limited to:
Dimensional changes to the drawings.
Revisions to details shown on drawings.
Depths of foundations below first floor.
Locations and depths of underground utilities.
Revisions to routing of piping and conduits.
Revisions to electrical circuitry.
Actual equipment locations.
Duct size and routing.
Locations of concealed internal utilities.
Changes made by Adjustment.
Details not on original Contract Drawings.
(Revised 07/09/25)
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m
B.
Contract No, 2026-007-COS
Solicitation No. RFS(l-022025-236
2. Contractor will mark completely and accurately Project Record Documents,
prints of Construction Documents or Shop Drawings; whichever is the most
capable of indicating the actual physical condition. Where Shop Drawings
are marked, show cross-reference on the Construction Documents
location.
3. Contractor will mark sets of Project Record Drawings Prints with red
erasable colored pencil
4. Contractor will note Request for Information (RFl) Numbers, American
Standards Institute (ASI) Numbers and Adjustrnent Numbers, etc., as
required to identify the source of the change to the Construction
Documents.
5. Contractor will at the time of Substantial Completion, submit Project Record
Drawing Prints and Shop Drawings to the City or its representative for
review and comment.
Immediately upon receipt of the reviewed Project Record Drawings from the City,
Contractor will correct any deficiencies or omissions to the drawings and prepare
the following for submission to the City:
1. A complete set of PDF electronic files of all Project Record Drawing Print
prepared in Microstation format compatible with City of Scottsdale CADD
requirements. If a Design Professional is contracted with, the Design
Professional will provide files of the original Construction Documents to
Contractor for use in preparing these final Project Record Documents, or
Contractor may contract with the Design Professional to revise and update
the electronic drawing files. Each drawing will be clearly marked With “As-
Built Documenf and shall be certified by an Arizona Registered Land
Surveyor.
2. A complete set of As-Built reproducible mylars from the final Microstation
drawings and an electronic pdf file on CD are required.
3. The original copy of the Project Record Drawings with redline mark-ups.
1.10. PROJECT SAFETY
A. The Occupational Safety and Health Act (OSHA) and the City of Scottsdale loss
control procedures are the minimum standard for safety and environmental
protection and must be fully complied with at aii times. Ali Work will be performed
in compliance with all applicable federal, state and local laws, ordinances, statutes,
rules and regulations including ADOSH policies and procedures. Contractor may
be required to attend a City safety briefing session at the pre-construction meeting.
The session will be attended by the Contract Administrator, the designated Risk
Management staff, and a Contractor’s Representative. Contractors that violate the
aforementioned rules and regulations may be subject to job shutdown and or
removal from City facilities.
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Contract No. 2026-007-COS
Solicitation No. RFSCl-022025-236
B.
The Risk Management Division makes available a packet which contains the City’s
OSHA compliance guidelines, emergency evacuation, the City’s safety and health
plan, and other safety information.
C.
Contractor virill conduct tailgate safety meetings regularly to ensure that safety on
the job is given priority.
D.
Contractor will contact the City’s Representative and the Risk Management
Division within twenty-four (24) hours of the occurrence of an accident or injury
arising out of Contractor’s Work under this Contract.
E.
Contractor employees are encouraged to abate or remedy any unsafe act Or
condition, which may arise in the course of Contractor’s Work under this Contract.
F.
The City reserves the right to conduct safety audits at the Site and stop unsafe
acts at any time, in addition, the City will be notified within four (4) hours should
any OSHA inspection occur at a Site.
G.
Contractor recognizes the irnportance of performing the Work in a safe manner so
as to prevent damage, injury or loss to;
1. All individuals at the Site, whether working or visiting;
2. The Work, including materials and equipment incorporated into the Work
or stored on-Site or off-Site; and
3. All other property at the Site or adjacent to the Site.
H.
Contractor assumes responsibility for implementing and monitoring all safety
precautions and programs related to the performance of the Work.
I.
Contractor will, before commencing construction, designate a Safety
Representative with the necessary qualifications and experience to supervise the
implementation and monitoring of all safety precautions and programs related to
the Work. Unless otherwise required by the Contract Documents, Contractor’s
Safety Representative will be an individual stationed at the Site who may have
responsibilities on the Project in addition to safety.
J.
Contractor must provide OSHA 300A Summary log information including total
recordable cases, total case rates, and lost workday incident rates for the past two
(2) calendar years. The Safety Representative shall make routine dajly
inspections of the Site and shall hold weekly safety meetings with Contractor’s
personnel. Subcontractors and others as applicable.
K.
Contractor will immediately report in writing any safety-related injury, loss, damage
or accident arising from the Work to City’s Representative and, to the extent
mandated by Legal Requirements, to all government or quasi-govemmental
authorities having jurisdiction over safety-related matters involving the Project or
the Work.
(Revised 07/09/25)
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Contract No. 2026-007-COS
Solicitation No. RFSQ-022025-236
L.
Contractor’s responsibility for safety under this Article 1.10 is not intended in any
way to relieve Subcontractors and Sub-Subcontractors of their own contractual
and legal obligations and responsibility for:
1. Complying with all Legal Requirements, including those related to health
and safety matters; and
2. Taking all necessary measures to implement and monitor all safety
precautions and programs to guard against injury, losses, damages or
accidents resulting from their performance of the Work.
M.
Contractor and Subcontractors must agree to provide Material Safety Data Sheets
for all substances that are delivered to the City of Scottsdale, that come under the
Occupational Safety and Health Administration Toxic and Hazardous Substances
- Hazard Communication Standard, 29 CFR 1910.1200 Hazard Communication
(reference Occupational Safety and Health Standards, Subpart Z Toxic and
Hazardous Substances - Hazardous Communication Standard).
All Contractors and all Subcontractors using chemicals on City of Scottsdale
property shall use only the safest chemicals, with the least harmful ingredients.
These chemicals shall be approved for use by a City of Scottsdale representative
before bringing them on the property.
Contractor and all Subcontractors shall make every attempt to apply approved
chemicals with highly volatile organic compounds, outside of working hours.
Adequate ventilation will be used at all times during the application of these
approved chemicals.
In conjunction with the Occupational Safety and Health Standards, Subpart Z Toxic
and Hazardous Substances - Hazard Communication Standard, 29 CFR
1910.1200 Hazard Communication, Contractor and Subcontractors are informed
of the presence of (or possible presence of) chemicals in the area where the Work
requested will be performed. It is the responsibility of Contractor or all selected
Subcontractors to contact the City of Scottsdale for specific information relative to
the type of chemicals present and location of appropriate Material Safety Data
Sheets.
Unless included in the Work, if Contractor encounters onsite material which he
reasonably believes to contain asbestos, polychlorinated biphenyl (PCB), or other
hazardous substances or materials regulated by Public Health Laws, it will
immediately stop Work and report the condition to the City.
If the material is found to contain asbestos, PCB or other hazardous substances
or materials regulated by Public Health Laws, Contractor will not resume Work in
the affected area until the material has been abated or rendered harmless.
Contractor and the City may agree, in writing, to continue Work in non-affected
areas onsite. An extension of the Contract Time may be granted as provided in
Article 5.
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Contract No. 2026-007-COS
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1.11. WARRANTY
A.
The provisions of M.A.G.. Section 108.8 will apply with the following additional
requirements:
1. Should Contractor fail to begin repairs or corrective work \Anthin fourteen
(14) calendar days after receipt of written notice from the City, the City may
perform the necessary work and Contractor agrees to reimburse the City
for the actual cost
2: The warranty period on any part of the Work repaired or replaced will be
extended for a period of one (1) year from the date of the repair or
replacement.
3. This warranty will not apply to damage caused by normal wear and tearor
by acts beyond Contractor’s control.
Contractor’s warranty obligation excludes defects caused by abuse, alterations, or
failure to maintain the Work by persons other than Contractor or anyone for whose
acts Contractor may be liable.
B.
Contractor's warranty obligation will be for one (1) year.
C.
Nothing in this warrarity is intended to limit any manufacturer’s warranty which
provides the City with greater warranty rights than those found in this Article 1.11
or the Contract Documents. Contractor will provide the City with all manufacturers’
Warranties upon Substantial Completion of each Job Order.
1.12. CORRECTION OF DEFECTIVE WORK
A. Contractor agrees to correct any Work that is found to not be in conformance with
the Contract Documents, including that part of the Work subject to Article^ 1.11
above, within a period of one (1) year from the date of Substantial Completion of
the Work or any portion of the Work, or vtrithin any longer period to the eident
required by the Contract Documents. All removal/replacement work, as directed
by the City to Contractor, in compliance with this Contract, MAG standards and
City codes will have cost determinations by the City and be issued as a Job Order
Adjustment to the Project. A Progress Payment, or partial or entire use or
occupancy of the Project by the City will not constitute acceptance of Work not in
accordance with the Contract Documents.
During the Work, Contractor shall take meaningful steps to begin correction of any
nonconforming Work as notified by the City. This includes the correction, removal
of replacement of the nonconforming Work and any damage caused to other parts
of the Work affected by the nonconforming Work. If Contractor fails to begin the
necessary steps during the Work, the City, in addition to any other remedies
provided under the Contract Documents, may provide Contractor with written
notice that the City will commence correction of any nonconforming Work, at its
discretion, through its employees, agents or other third parties.
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Contract No. 2026-007-COS
Solicitation No. RFSQ-022025-236
Contractor shall take meaningful steps to begin correction of nonconforming Work
subject to Article 1.11 above. These measures include but are not limited to timely
correction of the Work. If Contractor fails to initiate necessary measures for this
Work within seven (7) days of receipt of written notice from the City, the City, in
addition to any other remedies provided under the Contract Documents, may
provide Contractor with written notice that the City will begin correction of the
nonconforming Work, at its discretion, through its employees, agents or other third
parties.
B.
If the City does perform this corrective Work, Contractor will be responsible for all
reasonable costs Incurred by the City in performing the correction without
increasing the Job Order Price.
C.
Contractor shall immediately respond to any nonconforming Work that creates an
emergency.
D.
The one (1) year period referenced in Article 1.11 above applies only to
Contractor’s obligation to correct nonconforming Work arid is not intended to
constitute a period of limitations for any other rights or remedies the City may have
regarding Contractor’s other obligations under the Contract Documents.
1.13. SUBCONTRACTOR AND MAJOR SUPPLIER SELECTIONS
A.
Contractor shall select major Subcontractors and major Suppliers, subject to first
obtaining the City’s approval. 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 Contractor, but the City must
approve in vyriting the selection of ail Subcontractors. In any case, Contractor is
solely responsible for the performance of the selected Subcontractors/Suppliers.
Contractor shall prepare a Subcontractor/Supplier selection plan and submit the
plan to the City for approval or Contractor may use the City’s plan as described in
Article 1.13(B). This Subcontractor selection plan will identify those Subcontractor
trades anticipated to be selected by qualifications only as provided in Article
1.13(B) and those Subcontractor trades anticipated to be selected by qualifications
and competitive bid as provided in Article 1.13(C). This plan will also identify those
Subcontractors that will not be selected through a formalized qualifipations-based
selection process. The Subcontractor selection plan must be consistent with the
selection requirements included in this Contract.
B.
Selection by qualifications only - The City may approve the selection of a
Subcontractor(s) or Supplier(s) based only on their qualifications when Contractor
can demonstrate it is in the best interest of the Project.
1. Contractor will apply the 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 Contractor’s own selection plan approved by the City or the
City’s selection plan as provided in this Article 1.13(B).
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Contract No. 2026-007-COS
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2. Contractor will negotiate costs for services/supplies from the
Subcontractor(s)/Supplier(s) under the approved qualifications oniy
method.
City Seiection Plan:
3. Contractor may elect to comply with the following City procedures in its
selection of Subcontractor(s) or Suppliers(s) based on qualifications only:
a. the Request for Qualifications (RFQ) will contain the best
description of the services or material desired; and
b. A statement that only unpriced statements of qualifications will be
considered; and
c. 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.
4. The RFQ may be amended after the submission of the statements of
qualifications. Any amendment wiil 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 wiil not be opened publicly but will be opened
in the presence of Contractor. 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 unacceptabie. A determination that the statement
is unacceptable shall be in writing, state the basis of the determination and
be retained by Contractor. Contractor will notify the bidder of the
determination and the bidder will not be given an opportunity to amend its
statement of qualifications further.
7. Contractor may conduct discussions with any bidder who submits an
acceptable or potentially acceptable statement of qualifications. During
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c.
Contract No. 2026-007-COS
Solicitation No. RFSCi-022025*236
discussions. Contractor wiii not disclose any information derived from any
other bidder’s statement of qualifications.
8. Contractor will negotiate costs for services/supplies from the
Subcontractor(s)/Supplier(s) selected under this method.
Selection by qualifications and competitive bid - Contractor will apply the City's
Subcontractor selection plan stated above or Contractor’s selection plan, if
previously approved by the City, in Contractor’s evaluation of the qualifications of
Subcontractor(s)/Supplier(s) and will provide the City with the selected process to
prequalify prospective Subcontractors/Suppliers. Selection may not be based oh
price alone. All Work by major Subcontractors and major Suppliers will ttien be
competitively bid to the prequalified Subcontractors unless a Subcontractor or
Supplier was selected in accordance with Article 1.13(B) above. Contractor may
elect to comply with the following procedures In step 2 of its cornpetitive bid
process.
1. Contractor 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. Contractor 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/Suppliens will be allowed.
2. If the City objects to any nominated Subcontractor/Supplier or to any self-
performed Work for good reason, Contractor will nominate a substitute
Subcontractor/Supplier that is acceptable to the City
D.
3. Contractor will distribute Drawings and Specifications, and when
appropriate, conduct a pre-bid conference with prospective Subcontractors
and Suppliers. Contractor 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 Contractor desires to self-perform certain portions of the Work, it must
request to be one of the approved Subcontractor bidders for those specific
bid packages. Contractor’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 compliance with the Project Schedule or
cost, Contractor may self-perfomi Work without bidding or re-bidding the
Work. (For horizontal construction, as defined in A.R.S. § 34-101(16),
Contractor must self-perform not less than 45% of the Work as required by
A.R.S. § 34-603(l)(3).)
if after receipt of sub-bids or after award of Subcontractors and Suppliers, the City
objects to any nominated Subcontractor/Suppiier or to any self-performed Work for
good reason. Contractor will nominate a substitute Subcontractor or Supplier,
preferably if this option is still available, from those who submitted Subcontractor
bids for the Work affected. Once the substitute Subcontractors and Suppliers are
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Contrart No, 2026-007-COS
Solicitation No. RFSQ-022025-236
consented to by the City, Contractor’s proposed price for the Work or portion of the
Work will be correspondingly adjusted to reflect any higher or lower costs from any
substitution. Under no circumstances will the City’s objection or comment on any
Subcontractor or Supplier relieve Contractor of its sole responsibility for control
over the methods, means and processes by which the Work is accomplished. The
City must approve in writing the selected Subcontractor Selection Plan before work
commences on any Job Order.
ARTICLE 2 - CITY’S SERVICES AND RESPONSIBILITIES
2.1
INFORMATION AND SERVICES
A. The City will furnish Contractor, at no cost to Contractor, the following information
or services for this Project:
1. One copy of data pertinent to the Work. However, Contractor will be
responsible for searching the records and requesting information required
for the Project.
2. All available data and information relative to policies, standards, criteria,
studies, etc.
3. Project funding and budget allocations and any changes affecting the
funding or budget allocations.
4. For purpose of detemnining the Job Order Price, any Plans and
Specifications.
5. For purpose of Project Record Drawing Prints, a CADD file of the
Construction Documents in Microstation format compatible with City of
Scottsdale CADD requirements.
2.2
CITY’S REPRESENTATIVE
A. The City’s Representative will be responsible for providing City-supplied
information and approvals in a timely manner to permit Confractor to fulfill Its
obligations under the Contract Documents.
2.3
DESIGN PROFESSIONAL SERVICES
A.
B.
The City may contract separately with one or more Design Professionals to provide
architectural or engineering design of the Project in accordance with the provisions
of A.R.S. §34-603.
The City may contract with the Design Professional to provide some or ail pf the
following services during the performance of the Work:
1. The Design Professional may provide administration of the Work. TheCity
and Contractor will endeavor to communicate through the Design
Professional. Communications by and with the Design Professional's
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Contract No, 2026-007-COS
Solicitation No. RFSCl-022025-236
consultants will be through the Design Professional.
2. The Design Professional may visit the Site at intervals appropriate to the
stage of construction to become generally familiar with the progress and
quality of the completed Work and to determine in general jf the Work is
being performed in accordance with the Contract Documents. The Design
Professional will keep the City informed of progress of the Work and will
endeavor to guard the City against defects and deficiencies in the Work.
3. Upon Contractor's submittals, the Design Professional may review and
approve or take other appropriate action on submittals as Shop Drawings,
Product Data and Samples in accordance with Article 1.6.
4. All drawings produced for projects considered to be performed under
Contractor are fte property of the City and are owned In whole by the C|ty
for any and all fiiture use and considerations.
2.4 CITY’S SEPARATE CONTRACTORS
The City is responsible for all Work performed on the Project or at the Site by separate
contractors under the City's control. The City will contractually require Its separate
contractors to cooperate with and coordinate their activities so as not to interfere with
Contractor in order to enable Contractor to timely complete the Work consistent with the
Contract Documents. Contractor agrees to reasonably cooperate and coordinate its
activities with those of the separate contractors so that the Project can be completed in
an orderly and coordinated manner without unreasonable disruption.
2.5 FURNISHING OF SERVICES AND INFORMATION
A.
The City will be responsible for the payment or waiver of the following:
1. City review and permit{s) fees for building, encroachment, and demolition
permits including City, State and County.
2. City review fees for grading and drainage, water, sewer and landscaping.
3. Utility design fees or permanent services fees are paid by the City, but all
submittals are the responsibility of Contractor.
4. Obtaining Nationwide 404 Permits.
5. City Developrrient Fees.
B.
Unless expressly stated to the contrary in the Contract Documento, the City will
provide, at its own cost and expense, for Contractor’s information the following:
1. To the extent availabie, surveys describing the property, boundaries,
topography and reference points for use during construction, including
existing service and utility lines;
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Contract No. 2026-007-COS
Solicitation No. RFSCl-022025-236
2. Temporary and permanent easements, zoning and other requirements and
encumbrances affecting land use, necessary to permit the proper design
and construction of the Project and enable Contractor to perform the Work;
3. A legal description and street or physical address of the Site;
4. To the extent available, as-built record or historical drawings of any existing
structures at the Site;
5. To the extent available, environmental studies, reports and impact
statements describing the environmental conditions, including hazardous
materials, in existence at the Site; and
6. To the extent available. Geotechnical studies describing subsurface
conditions and other surveys describing other latent or concealed physical
conditions at the Site.
The City will provide all City standards and guidelines, supplementary
conditions and special provisions that will be included in the plans and
specifications for the Project. These may include but are not limited to: disposal
of surplus material, special security provisions, investigation of underground
facilities, traffic controls and regulations, special quality control testing and
termite treatment requirements.
2.6 PROJECT MANAGEMENT SERVICES
A.
The City may contract separately with one or more Technical Consultants to
provide project management assistance for the Project. The Technical
Consultant’s contract as well as contracts with other firms hjred by the City Will be
furnished to Contractor. Contractor will not have any right, however, to limit or
restrict any Project modifications that are rriutually acceptable to the City and
Technical Consultant.
The Technical Consultant services will augment the City staffing resources to
effectively manage the objectives of the City and the Project with the goal of
managing the key Project communication, costand time parameters.
B.
C.
The Technical Consultant may provide pre-programming and design standards.
D.
The City may contract with the Technical Consultant to provide any or all of the
services or functions of the City’s project manager during the performance of the
construction.
2.7 PERMIT REVIEW AND INSPECTIONS
For clarification, permitting activities are handled by the City of Scottsdale
Developmental Services, Fire and Planning Departments. Obtaining any permits and
submittals are the responsibility of the City.
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Solicitation No. RFSQ-022025-236
2.8 UTILITY COMPANY COORDINATION
Contractor will be responsible for coordinating utility design work for permanent service
to the Project and will ensure that the work takes place in a timely manner and does not
impact the Project schedule. Any utility design fees for permanent services to a Job
Order will be paid by the City in accordance with Article 2.6.
ARTICLE 3 - CONTRACT TIME AND JOB ORDER TIME
3.1
CONTRACT TIME
A.
The initial term of this Contract will be for two (2) years and will commence on the
Effective Date, with the option to extend for three (3) additional years in one (1)
year increments.
1. The option to extend may be exercised based on Contractor’s successful
performance and the needs of the City .
2. A Contract Modification will be processed for each extension and will
commence on or about the anniversary date of the Contract. Each extension
must be authorized by the Contract Administrator and Purchasing Director and
need not return to the City’s Council for approval.
B.
The Contract will remain in full force and effect during the performance of any Job
Order.
3.2
JOB ORDER TIME
A.
Job Orders may be issued at any time during the term of this Contract.
B.
Each individual Job Order will include a Job Order Notice-to-Proceed date^
Duration of the Work as determined in accordance with this Article 3.2 and a
calculated Substantial Completion date.
C.
Contractor agrees that it will commence performance of the Work and achieve the
approved Job Order Time.
D.
Job Order Time may be subject to adjustment in accordance with Article 5.
3.3
SUBSTANTIAL COMPLETION
A.
Substantial Completion of each Job Order is when all construction has been
completed with the exception of final inspection punch list work and further defined
in Article 12. The purpose of granting or acknowledging Substantial Completion is
to stop Job Order Time.
B.
Before notifying the City in accordance with Article 3.3(C), Contractor will inspect
the Work arid prepare and submit to the City a comprehensive list of items to be
completed of corrected. Contractor will proceed promptly to complete and correct
items on the list. Failure to include an item on the list does not alter the
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Contract No. 2026-007-COS
Solicitation No. RFSQ-022025-236
responsibility of Contractor to complete all Work in accordance with the Contract
Documents.
C.
Contractor will notify the City when it believes a Job Order, or to the extent
permitted in the Contract Documents, a portion of the Job Order, is substantially
complete.
D.
Within five (5) days of the City’s receipt of Contractor’s notice in accordance with
Article 3.3(C), the City and Contractor will jointly inspect the Work to confirm
Substantial Completion.
E.
Once Substantial Completion of the Work is confirmed in accordance vnth Article
3.3(D), the City will prepare and issue a Certificate of Substantial Completion that
will stdte:
1. The date of Substantial Completion of the Work or portion of the Work;
2. The remaining items of Work that have to be completed within thirty (30)
calendar days before Final Acceptance;
3. Provisions (to the extent not already provided in the Contract Documents)
establishing the City’s and Contractor’s responsibiiity for the Project’s
security, maintenance, utilities and insurance pending Final Acceptance.
F.
The City, at its option, may use a portion of the Work which has been determined
to be substantially complete provided, however, that
1. Certificate of Substantial Completion has been issued for the portion of
Work addressing the items in Article 3.3(E)(2).
2. Contractor and the City have obtained the consent of their sureties and
insurers, and to the extent applicable, the appropriate government
authorities having jurisdiction over the Project, and
3. The City and Contractor agree that the City’s use or occupancy will not
interfere with Contractor’s completion of ttie remaining Work required under
Article 3.3(E).
3.4 PUNCH LIST PREPARATION
A minimum of seven (7) days before Substantial Completion, Contractor, in conjunction
with the City, will prepare a comprehensive list of Punch List items, which the City may
edit and supplement. Contractor will proceed promptly to complete and correct the
Punch List Items. Failure to include an item on the Punch List does not alter the
responsibility of Contractor to complete all Work in accordance with the Contract
Documents. Warranties required by the Contract Documents will not commence until the
date of Final Acceptance, unless otherwise provided in tiie Contract Documents. Seven
(7) days before the City issues its Firlal Acceptance Letter, Contractor will deliver to the
City all Operation and Maintenance Manuals necessary for the City to assume
responsibility for the operation and maintenance of that portion of the Work.
(Revised 07/09/25)
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3.5 FINAL ACCEPTANCE
Upon receipt of written notice that the Work or identified portions of the Work is ready for
final inspection and acceptance, the City and Contractor will jointly inspect to verify that
the remaining items of Work have been completed as required under Article 3.3(E). The
City will issue a Final Acceptance Letter.
3.6 LIQUIDATED DAMAGES
A.
Contractor understands that if Substantial Completion is not attained within the Job
Order Time, as may be adjusted for each Job Order, the City will suffer damages,
based on the anticipated loss caused by the breach and the difficulty in determining
and accurately specifying the damages. Contractor agrees that if Substantial
Compietion is not attained within the Job Order Time as adjusted. Contractor will
pay the City the amount prescribed in Article 3.6(B) below as liquidated damages
for each Day that Substantial Completion extends beyond the date determined by
the Job Order Time as adjusted.
B.
The following will be the liquidated damages for each Job Order unless a specific
amount has been determined for each individual Job Order.
LIQUIDATED DAMAGES
Onginal Job Order Amount
From more than To and including Calendar Day or Fixed Date
$00
25,001
Daily Charges
%
Di
$25,000
$200
50,000
250
50,001
100,001
100,000
280
500,000
430
500,001
750,001
750,000
500
1,000,001
1,000,000
570
1,250,001
1,250,000
1,500,000
610
650
ARTICLE 4- CONTRACT PRICE AND JOB ORDER PRICE
4.1 CONTRACT PRICE
The fee for individual projects performed under this contract will be negotiated on a
project-by-project basis as Job Orders. The amount paid to the Contractor under this
contract for all Job Orders shall not exceed $4,000,000 for the initial two (2) year term
and $2,000,000 for any successive one (1) year contract extension.. The Contractor
agrees at its own cost and expense, to do ail the Work as specified in the Contract
Documents and any Work contingent to the Contract and necessary for the construction
of the improvements. The Contractor will completely construct the Work and install the
materials, free and clear of all claims, liens, and charges of any kind, in the manner and
under the conditions specified within the time or times stated in each Job Order.
A. In no event will any individual Job Order Price exceed $1,000,000. If the City opts
to extend this Contract in accordance with Article 3.1(A), the Contract Modification
may increase the maximum amount, if necessary, at that time.
(Revised 07/09/25)
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I
B.
The Job Order Price is subject to Adjustments made in accordance with Articles.
C.
Unless otherwise provided in the Contract Documents, the Job Order Price is
considered to include all sales, use, consumer and other taxes ttiroughoutthe term
of this Contract, whether or not yet effective or merely scheduled to go into effect.
D.
Contractor must secure and maintain, during the life of the Contract, State of
Arizona and City of Scottsdale Transaction Privilege (sales) Tax Licenses.
To obtain a State of Arizona Privilege (Sales) Tax License Application, please go
to the following website:
httDs://azdor:aov/transaction-Drivileae-tax/tpt-license/aDPlvinq-tpt-license
To obtain a City of Scottsdale Transaction (Sales) Tax License Application, please
go to the following website:
https://www.scottsdaleaz.gov/taxes/resources
Contractor must demonstrate compliance with the E-Verify Program as provided
in /Article 11.33 and as required by A.R.S. §41-1080, as amended, before issuance
of any License by the City.
4.2 RESPONSIBILITY FOR PRIVILEGE (SALES) TAXES
A. Contractor is responsible for payment of all applicable State of Arizona and City of
Scottsdale transaction privilege (sales) taxes due on construction income whether
or not these taxes are specifically separated in the bid amount. The taxes are to
be reported on either a progressive billing (accrual) basis or cash receipts baSis,
depending on the method chosen at the time application was rnadefor the Privilege
(sales) Tax License.
City Privilege (sales) tax exemptions/deductions may be applicable to certain
projects. Contractor is advised to consider this as it prepares its bid. Please review,
in detail. Sections 415, 465, and 110 of the Scottsdale Revised City Code,
Appendix C to determine if exemptions/ deductions are applicable. For tax
guidatice, please reference the Cjty Code and other tax resources at the following
website:
httD://www.scottsdaleaz.qov/taxes/
The State of Arizona has similar exemptions; please reference A.R.S. Title 42 at
the following website:
http://www.azled.state:az.us/ArizonaRevisedStatutes.asp?Title=42
For further questions regarding tax treatment, please contact the Arizona
Department of Revenue at 602-255-2060 and the City of Scottsdale Tax & Audit
Section at 480-312-2768.
(Revised 07/09/25)
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B.
C.
D.
E.
ARTICLE 5 - CHANGES TO THE CONTRACT PRICE AND TIME
5.1 DELAYS TO THE WORK
A. Delays may be compensable, concurrent, excusable or non-excusable as defined
in Article 12.
If Contractor is delayed in the performance of the Work due to acts, omissions,
conditions, events, or circumstances beyond its control and due to no fault of its
own or those for whom Contractor is responsible, the Job Order Time for
performance may be reasonably extended by Job Order Adjustment.
Contractor must request a Job Order Adjustment by written notice, including an
estimate of the probable effect of delay on progress of the Work. In the case of a
continuing delay, only one request is necessary.
Written notice will be received within five (5) days of the commencement of the
cause of the delay. If written notice is received more than five (5) days after
commencement of the cause of the delay, the period of delay will be considered to
commence fourteen (14) days before the giving of any notice.
If adverse weather conditions are the basis for a Job Order Adjustment request,
the requests shall be documented by data substantiating that weather conditions
were abnormal for the period of time and could not have been reasonably
anticipated, and that weather conditions had an adverse effect on the scheduled
construction.
Permitting Contractor to proceed to complete any Work, or any part of the Work,
after the date to which the time of completion may have been extended, will in no
way act as a waiver on the part of the City of any of its legal rights.
In the event Contractor incurs expenses related to a delay for which the City is
responsible. Contractor and the City will negotiate an equitable adjustment to the
Job Order Price and/or Job Order Time. This provision is made in accordance with
A.R.S. §34-609(E), as amended. 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.
In addition to Contractor’s right to request a time extension for those events stated
in this Article 5.1, Contractor may also be entitled to an appropriate adjustment of
the Job Order Price provided, however, that the Job Order Price will not be
adjusted for those events stated in this Article that are beyond the control of both
Contractor and the City, including the events of war, acts of terrorism, floods, labor
disputes (but not including Contractor’s own work force and those of its
subcontractors), earthquakes, epidemics, excessive inclement weather conditions
not reasonably anticipated, and other acts of God..
F.
G.
H.
{Revised 07/09/25)
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5.2 DIFFERING SITE CONDITIONS
5.2.1. If Contractor encounters a Differing Site Condition(s). Contractor rnay be entitled
to an adjustment in the Job Order Price or Job Order Time(s) to the extent
Contractor’s cost or time of performance are the direct result of a Differing Site
Condition(s).
5.2.2. Upon encountering a Differing Site Condition, Contractor shall provide prompt
written notice to the City of the condition, which notice will not be later than seven
(7) days after the condition has been encountered. Final costs must be submitted
within thirty (30) days after notice is received by the City, unless extended by
written agreement of the parties. Contractor must give the City’s Contract
Administrator written notice of and an opportunity to observe such condition
before disturbing or altering the Differing Site conditions. The failure of Contractor
to give written notice and make the Claim as required by this Article and Article
7.1.5 shall constitute a waiver by Contractor of any rights arising out of or relating
to such Differing Site Conditions.
5.2.3. in order for Contractor to obtain any additional compensation or time extensions
for Differing Site Conditions, Contractor must demonstrate that it encountered a
material difference atthe Site, as defined in Article 12, that required it to expend
additional cost or time. Contractor will also establish that it actually and
reasonably relied upon the representations found in the Contract Documents
concerning the Site conditions.
5.3 APPLICATION FOR EXTENSION OF TIME
5.3.1
If performance by Contractor is delayed for a reason set forth in Article 5,
Contractor may be allowed a reasonable extension of time in confortnahce with
this Article. Before Contractor’s time extension request may be considered.
Contractor shall notify the City of the condition which allegedly has caused or is
causing the delay, and shall submit a written application to the Cityideritifying:
1.
Liquidated damage assessment rate, as specified in the Contract;
2.
Original Job Order Price;
3.
Original Job Order Time;
4.
Any previous Job Order Adjustments granted (number and duration); and
5.
The extension of time requested.
5.3.2
In addition, the application for extension of time shall set forth in detail;
1.
The nature of each alleged cause of delay in completing the Work;
1.
The date upon which each such cause of delay began and ended and the
number of dates attributable to each such cause;
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2.
A statement that Contractor waives all claims except for those delineated
in the application, and the particulars of any claims which Contractor does
not agree to waive. For time extensions for Substantial Completion and
final completion payments, the application shall include a detailed
statement of the dollar amounts of each claim item reserved; and
3.
A statement indicating Contractor’s understanding that the time extension
is granted only for purposes of permitting continuation of Contract
performance and payment for Work performed and that the City retains its
right to conduct an investigation and assess liquidated damages as
appropriate in the future.
5.4
ERRORS, DISCREPANCIES AND OMISSIONS
A.
If Contractor observes errore, discrepancies or omissions in the Contract
Documents, it will promptly notify the City and request clarification. Contractor will
provide a copy of this notice to the City’s Representative.
B.
If Contractor proceeds with the Work affected by the errors, discrepancies or
omissions, without receiving any clarifications, it does so at its own risk. Adjustments
involving these circumstances made by Contractor before clarification by the Design
Professional will be at Contractor’s risk.
5.5
CITY REQUESTED CHANGE IN WORK
A.
B.
The City reserves the right to make, at any time during the progress of the Work,
any aiterations as may be found necessary or desirable.
These alterations and changes wjll not invalidate this Contract nor release the
surety and Contractor agrees to perform the Work as altered, the same as if it had
been a part of the original Job Order. Contractor will notify the surety of the
changes and will assure that the alterations and changes are adequately covered
by the surety bond.
The City will request a proposal for a change in Work from Coritractor, and an
Adjustment to the Job Order Price or Job Order Time will be made based on a
mutual agreed upon cost and time.
C.
5.6 LEGAL REQUIREMENTS
The Job Order Price or Job Order Time will be adjusted to compensate Contractor for
the effects of any changes in the Legal Requirements enacted after the date of the
Contract affecting the performance of the Work.
5.7 JOB ORDER ADJUSTMENTS
A. In accordance with the City of Scottsdale Procurement Code, and related Rules
and Procedures, the City and Contractor will negotiate in good faith and as
expeditiously as possible the appropriate Job Order Adjustment(s). Upon reaching
an agreement, the parties will prepare and execute an appropriate Adjustment
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reflecting the terms of their agreement. The change in Work may or may not
include an Adjustment in the Job Order Price or Job Order Time.
B.
All changes in Work authorized by Job Order Adjustments will be performed under
the conditions of the Contract Documents. The decision to make an Adjustment to
the Job Order rests solely with the City and any decision to make a Job Order
Adjustment must be promptly complied with by Contractor, subject to the
provisions of Article 5.8.
C.
The execution of a Job Order Adjustment by Contractor shall constitute conclusive
evidence of Contractor’s agreement to the ordered changes in the Work, the Job
Order Price, and the Job Order Time by Contractor. Contractor, by executing the
Job Order Adjustment, waives and forever releases any claim against the City for
any additional time or compensation for matters relating to, arising out of, or
resulting from the Work included within or affected by the executed Job Order
Adjustment of which Contractor knew or should have known.
5.8
UNILATERAL DETERMINATION OF JOB ORDER VALUE
If no mutual agreement occurs between the City and Contractor, the change in Job Order
Price, if any, shall be derived by determining the reasonable actual costs incurred or
savings achieved, resulting from revisions to the Work. Such reasonable actual costs or
savings shall include a component for direct job site overhead and profit but shall not
include home-office overhead or other indirect costs and components. The calculation
of actual costs shall conform to the markup schedule in Article 5.12 below. Any such
costs or savings shall be documented in the format and with such content and detail as
the City requires. Contractor shall promptly submit such documentation and other
backup as the City may require in evaluating the actual costs incurred.
5.9
ADDITIONAL JOB ORDER COST REQUIREMENTS
Contractor’s or Subcontractor’s submittals shall include the cost of materials, sales tax,
and the cost of all transport. The cost of items listed shall be directly related to the Job
Order Adjustment. Indirect costs not specifically related to the Job Order Adjustment
shall not be considered. Contractor’s or Subcontractor’s Direct Labor Costs shall be
limited to the hourly rate of directly involved workmen, employer contributions toward
Contractor standard benefits, pensions, unemployment or social security (if any), and
employer costs for paid sick and annual leave. Contractor’s or Subcontractor’s Overhead
shall include license fees, bond premiums, supervision, wages of timekeepers and clerks,
incidentals, home and field office expense, and vehicle expense directly related to the
Project, and all other direct Project expenses not included in Contractor’s material, direct
labor, and equipment costs.
5.9.1 The allowance for overhead and profit shall be limited to the following schedule:
1.
For Contractor, for any work performed by Contractor’s own forces, fifteen
(15%) percent of the Subtotal of Costs to Contractor.
2.
For Contractor, for any work performed by its Subcontractor, six (6%)
percent of the amount due to the Subcontractor.
(Revised 07/09/25)
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3.
For each Subcontractor or Sub-subcontractor involved, for any work
performed by their own forces, fifteen (15%) of their materials and direct
labor costs.
4.
For each Subcontractor, for work performed by its Sub-Subcontractor(s),
six (6%) percent of the amount due to the Sub-subcontractor.
5.10 LIMITATION OF COMPENSABLE ITEMS
5.10.1 For Job Order Adjustment, the total cost or credit to the City shall be based on
the following schedule:
1. Contractor’s Materials Costs.
2. Contractor’s Direct Labor Costs.
3. Contractor’s Equipment Costs (includes owned/rented equipment).
4. Applicable Subcontractor Costs.
5. Subtotal of Costs to Contractor.
6. Contractor’s Overhead and Profit.
7. total Cost or Credit to the City.
5.11 FIELD ORDERS
A.
The City has authority to initiate Field Orders that do not materially and adversely
affect the Work, including the design, quality, performance and workmanship
required by the Contract Documents. Field Orders will be made by written order and
will be binding on the City and Contractor. Contractor will carry out any written Field
Orders promptly.
B.
Field Orders will not involve an adjustment in the Job Order Price or Jbb Order
Times unless of until it becbrries a Job Order Adjustment.
C.
Contractor may make minor changes in the Work, provided, however that
Contractor will promptly inform the City, in writing, of any changes and record the
changes, if apprbpriate, on the Project Record Documents maintained by
Contractor.
5.12 JOB ORDER PRICE ADJUSTMENTS
A. The increase or decrease in Job Order Price resulting from a change in the Work
will be determined by one or more of the following methods:
1. Unit prices stated in the Contract or as subsequently agreed to between
the parties;
(Revised 07/09/25}
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2. A mutually agreed upon accepted, lump sum, properly itemized and
supported by sufficient substantiating data to permit evaluation by the City;
and
3. Costs, fees and any other markups.
B.
If an increase or decrease cannot be agreed to as stated In Article 5.7(A), the cost
of the change of the Work will be determined by the reasonable expense and
savings in the performance of the Work resulting from the change, including a
reasonable overhead and profit, as may be stated in the Contract Documents.
Contractor will maintain a documented, itemized accounting evidencing the
expenses and savings associated with these changes.
C.
If unit prices are stated In the Contract Docurnents, or are later agreed to by the
parties, but application of the unit prices will cause substantial inequity to the City
or Contractor because of differences in the character or quantity ofthe unit items
as originally contemplated, the unit prices will be equitably adjusted.
D.
If the City and Contractor disagree upon whether Contractor is entitled to be paid
for any services required by the City, the amount to be paid, other disagreements
over the Scope of Work, proposed changes to the Work, or the time required to
complete the Work, the City and Contractor will resolve the disagreements in
accordance with Article 7.
1. As part of the negotiation process. Contractor will furnish the City with a
good faith estimate of the cosfe to perform the disputed services, or the
additional time required in accordance with the City's interpretations.
2. If the parties are unable to agree and the City expects Contractor to perfonn
the services in accordance with the City's interpretations. Contractor will
proceed to perform the disputed services, conditioned upon the City issuing
a written order to Contractor.
(a) directing Contractor to proceed; and
(b) specifying the City's interpretation of the services that are to be
performed.
E.
Emergencies. In any emergency affecting the safety of persons or property.
Contractor will act, at its discretion, to prevent threatened damage, injury or loss.
Any change in the Job Order Price or Job Order Time(s) resulting from emergency
work under this Article 5.8(E) will be determined as provided in this Article 5.
ARTICLE 6- PROCEDURE FOR PAYMENT
6.1 JOB ORDER PAYMENT REQUEST
A. At the pre-construction conference prescribed in Article 1.3, Contractor will submit
for the City’s review and approval a Schedule of Values. The Schedule of Values
(Revised 07/09/25)
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will include values for all items comprising the Job Order Price and will serve as
the basis for monthly progress payments made to Contractor throughout the Work.
B.
At least five (5) working days before the date established for a progress payment,
Contractor will meet with the City’s Representative to review the progress of the
Work, as it will be reflected on the Contractor Payment Request.
C.
The Contractor Payment Request will constitute Contractor’s representation that
the Work has been performed consistent with the Job Order including any
Adjustment(s), has progressed to the point indicated in the Contractor Payment
Request, and that title to all Work will pass to City free and clear of all claims, liens,
encumbrances, and security interests upon the incorporation of the Work into the
Project.
6.2
PARTIAL PAYMENTS
A.
Partial progress payment will be made for Job Orders with Job Order Time greater
than 30 Days and may be made if the Job Order Time is less than 30 Days.
B.
The Contractor Payment Request may request payment for equipment and
materials not yet incorporated into the Project if construction progress is in
reasonable conformance with the approved schedule.
C.
For equipment and materials suitably stored at the Site, the equipment and
materials will be protected by suitable insurance and the City will receive the
equipment and materials free and clear of all liens and encumbrances.
1. For materials and equipment stored off the Site, the City must approve the
storage. The material and equipment must be stored within Maricopa
County and be accessible for the City’s inspection. Title to the materials
and equipment will include applicable insurance, bonding, storage and
transportation to the Site.
2. All bonds and insurance required for stored materials will be in the City’s
name.
6.3
PAYMENT OF JOB ORDER PRICE
A.
Payments should be provided on the City format for a Pay Application which is
based on the agreed upon Schedule of Values. Payment will be made no later than
fourteen (14) days after the Contractor Payment Request is certified and approved,
but in each case less the total of payments previously made.
B.
The Contractor Payment Request shall be deemed approved and certified for
payment seven (7) days after the date of submission to the City by Contractor
unless before that time the City prepares and issues a specific written finding
setting forth those items in detail in the Contractor Payment Request that are not
approved for payment under the Contract. The finding will indicate the specific
amounts the City intends to withhold, the reasons and contractual basis for the
withholding, and the specific measures Contractor must take to rectify the City’s
(Revised 07/09/25)
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concerns. The City may withhold an amount from the progress payment sufficient
to pay the expenses the City reasonably expects to incur in correcting the
deficiency set forth in the written finding. Contractor and the City will attempt to
resolve the City’s concerns. If the parties cannot resolve the concerns, Contractor
may pursue its rights under the Contract Documents, including those under Article
7.
6.4
RETENTION ON JOB ORDER PAYMENTS
In compliance with A.R.S. §34-609, as amended, there is no retention for job-order
contracting construction services contracts.
6.5
FINAL PAYMENT
A.
After receipt of a final Contractor Payment Request, the City will rnake final
payment as required by this Article 6.5, provided that Contractor has cornpieted all
of the Work in conformance with the Job Order and Contract Documents and a
Final Acceptance Letter has been issued by the City.
B.
At the time of submission of its final Contractor Payment Request, Contractor will
provide tiie following Information:
1. An affidavit that there are no claims, obligations or liens outstanding or
unsatisfied for labor, services, material, equipment, taxes or other items
performed, furnished or incurred for or in connection with the Work which
will in any way affect the City's Interests; and
2. A general release executed by Contractor waiving, upon receipt of final
payment by Contractor, all claims, except those claims previously made in
writing to the City and remaining unsettled at the time of final payment.
6.6
PAYMENTS TO SUBCONTRACTORS OR SUPPLIERS
A.
Contractor will pay its Subcontractors or suppliers within seven (7) calendar days
of receipt of each progress payment from the City. Contractor will pay for the
amount of Work perforrhed or materials supplied by each Subcontractor or supplier
as accepted and approved by the City with each progress payment. No Contract
between Contractor and its Subcontractors and suppliers may materially alter the
rights of any Subcontractor or supplier to receive prompt payment as provided in
this Contract.
B.
If Contractor fails to make payments in accordance with these provisions, the City
may take any one or more of the following actions and Contractor agrees that the
City may take these actions:
1. To hold Contractor in default under this Contract;
2. Withhold future payments until proper payment haS been made to
Subcontractors or suppliers in accordance with these provisions;
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3. Reject all future offers to perform work for the City for a period not to exceed
one (1) year from the Substantial Completion date of the Job Order at issue;
or
4. Terminate this Contract for cause.
C.
Should the City fail or delay in exercising or enforcing any right, power, privilege,
or remedy under this Article 6.6, the failure or delay will not be considered a waiver,
release, or modification of the requirements of this Article or of any of the terms or
provisions of this Contact.
D.
Contractor will include these prompt payment provisions in every subcontract,
including procurement of materials and leases of equipment for this Contract.
6.7 RECORD KEEPING AND FINANCE CONTROLS
A.
Records of Contractor's direct personnel payroll, reimbursable expenses related
to each Job Order and records of accounts between the City and Contractor will
be 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 of Scottsdale to Contractor, the City, its authorized
representative, or the appropriate federal or state agencies, reserve the right to
audit Contractor’s records to verify the accuracy and appropriateness of all pricing
data, including data used to negotiate the Contract Documents. The City of
Scottsdale or its authorized representative will have access, during normal working
hours, to ail necessary Contractor and Subcontractor facilities, and will be provided
adequate and appropriate workspace, in order to conduct audits in compliance with
the provisions of this Article. The City of Scottsdale will give Contractor or
Subcontractor reasonable advance notice of intended audits.
B.
The City reserves the right to decrease Job Order Price or payments made on this
Contract if, upon audit of Contractor’s records, the audit discloses Contractor has
provided false, misleading, or inaccurate cost and pricing data.
C.
Contractor will include a similar provision in all of its contracts with Subconsultants
and Subcontractors providing services under the Contract Documents to ensure
the City, its authorized representative, or the appropriate federal or state agency,
has access to the Subconsultants’ and Subcontractors’ records to verify the
accuracy of co^ and pricing data.
D.
The City reserves the right to decrease Job Order Price or payments made on this
Contract if the above provision is not included in Subconsultants’ and
Subcontractors’ contracts, and one or more Subconsultants or Subcontractors do
not allow the City to audit their records to verify the accuracy and appropriateness
of pricing data.
E.
If an audit in accordance with this Article, discloses overcharges of any nature by
Contractor to the City in excess of 1 % of the total contract billings, the actual cost
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of the City’s audit will be reimbursed to the City by Contractor. Any adjustments or
payments which must be made as a result of any audit or inspection of Contractor’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.
F. This audit provision includes the right to inspect personnel records as required by
Section 11.33.
ARTICLE 7- CLAIMS AND DISPUTES
7.1 REQUESTS FOR CONTRACT ADJUSTMENTS AND RELIEF
7.1.1
If either Contractor or the City believes that it is entitled to relief against the other
for any event arising out of or related to Contract Services, that party vyill provide
written notice to the other party of the basis for its claim for relief. The claims shall
set forth in detail all known facts and circurristances supporting the claim; final
costs associated with any claim upon which notice has been given must be
subrtiitted in writing to the City within thirty (30) days after notice has been
received.
7.1.2
This notice will, if possible, be made before incurring any cost or expense and in
accordance with any specific notice requirements contained in applicable sections
of the Contract.
7.1.3
In the absence of any specific notice requirement, written notice will be given within
a reasonable time, not to exceed ten (10) days, after the occurrence givjng rise to
the claim for relief or after the claiming party reasonably should have recognized
the event or condition giving rise to the request, whichever is later.
7.1.4 This notice will include sufficient information to advise the other party of the
circumstances giving rise to the claim for relief, the specific contractual adjustment
or relief requested and the basis of the request. ANY NOTICE OF CLAIM NOT
FILED WITH THE CITY WITHIN SUCH TIME AND IN COMPLIANCE WITH THE
PRECEEDlNG PROVISIONS SHALL BE CONSIDERED TO HAVE BEEN
WAIVED AND SHALL BE DISMISSED.
7.1.5 in the event Contractor seeks to make a claim tor an increase in the Job Order
Price, as a condition precedent to any liability of the City therefore, unless
emergency conditions exist. Contractor shall strictly comply with the requirements
of this section and such ciaim shall be made by Contractor before proceeding to
execute any work for which a claim is made. Failure to comply with this condition
precedent shall constitute a waiver by Contractor of any claims for compensation.
7.1.6
Contractor must continue its performance under this Contract regardless of the
existence of any claims by Contractor.
7.1.7
In a claim by Contractor against the City for compensation in excess of the Job
Order Price, any liability of the City to Contractor shall, be strictly limited and
computed in accordance with the Contract Documents and shall in no event
include indirect costs, such as home office overheads or consequential damages
(Revised 07/09/25)
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of Contractor or any estimated costs or damages.
7.2
DISPUTE AVOIDANCE AND RESOLUTION
7.2.1 The parties are fully committed to working with each other throughout the Project
and agree to communicate regularly with each other at all times so as to avoid or
minimize disputes or disagreements. If disputes or disagreements do arise, the
Contractor and the City each commit to resolving the disputes or disagreements in
an amicable, professional and expeditious manner so as to avoid unnecessary
losses, delays and disruptions to the Work.
7J2.2 The Contractor and the C|ty will first attempt to resolve disputes or disagreements
at the field level through discussions between the Contractor’s Representative and
the City’s Representative.
7.2.3
If a dispute or disagreement cannot be resolved through the Contractor’s
Representative and the City’s Representative, the Contractor’s Senior
Representative and the City’s Senior Represeritative, upon the request of either
party, will meet as soon as conveniently possible, but in no case later than thirty
(30) days after the request is made, to attempt to resolve the dispute or
disagreement Before any meetings between the Senior Representatives, the
parties will exchange relevant information that will assist the parties in resolving
their dispute or disagreement.
7.2.4 The City and the Contractor agree to negotiate in good faith in accordance with
this Contract's procedure for the recovery of damages related to expenses incurred
by the Contractor for a delay for which the City is responsible, that is unreasonable
under the circumstances, and that vyas not within the contemplation of the parties
to the Contract.
7.3
DUTY TO CONTINUE PERFORMANCE
Unless provided to the contrary in the Contract Documents, Cohtractor will continue to
perform the Work and the City will continue to satisfy its payment obligations to
Contractor, until final resolution of any dispute or disagreement between Contractor and
the City.
7.4
representatives OF THE PARTIES
A. City’s Representatives
1. The City designates the individual listed below as the City’s Senior
Representative. This individual has the authority and responsibility for
avoiding and resolving disputes under Article 7-2.3:
City of Scottsdale
Attn: Robert Franklin
Facilities Seryjce Area Manager
9191 E. San Salvador Dr
Scottsdale, AZ 85251
(480) 312-5999
(Revised 07/09/25)
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Contract No. 2026-007-COS
Solicitation No. RFS(l-022025*236
2. The City will designate an individual for each Job Order as the City’s
Representative. This person will manage the Job Order.
B. Contractor’s Representatives
1. Contractor designates the individual listed below as Contractor’s Senior
Representative. This individual has the authority and responsibility for
avoiding and resolving disputes under Article 7.2.3;
Core Construction
Attn; Todd Steffen
13835 N Northsight Blvd. #100
Scottsdale. AZ 85260
602-494-0800
2. Contractor will designate an individual for each Job Order as Contractor’s
Representative.
ARTICLE 8 ~ SUSPENSION, TERMINATION AND CANCELLATION
8.1 CITY’S RIGHT TO STOP JOB ORDER SERVICES
A.
The City may. at its discretion and without cause, order Contractor in writing to
stop and suspend any Jpb Order. Immediately after receiving this notice.
Contractor will discontinue advancing the Job Order. The suspension will not
exceed one hundred eighty (180) consecutive days. If the City suspends the Job
Order for one hundred eighty-one (181) consecutive Days or more, the suspension
will be considered a termination for convenience.
B.
Contractor may seek an adjustment of the Job Order Price or Job Order Time if its
cost or time to perform the Contract Services has been adversely impacted by any
suspension or stoppage of the Work by the City.
./■ ■
8.2 TERMINATION FOR CONVENIENCE
A. Upon receipt of written notice to Contractor, the City has the right to terminate this
Contract or abandon any portion of any Job Order for which services have not been
performed by Contractor.
1. Contractor will estimate the value of the Work it has completed and submit
its appraisal to the City for evaluation. The City will have the right to inspect
the Work, to appraise the Work completed.
Contractor will receive compensation for services performed to the date of
the termination. The fee will be an amount mutually agreed upon by
Contractor and the City. If there is no mutual agreement, the final
determination will be made in accordance with this Article.
2. The City will make the final payment within 60 days after Contractor has
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Contract No. 2G26-007-COS
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delivered the last of the partially completed items and the final fee has been
agreed upon.
If the City terminates this Contract in compliance with this Article and
proceeds to complete the Job Order through its employees,, agents or other
third parties, the City’s rights to use the Work product will be as stated in
Article 8.4(D).
B.
Upon termination of construction services during any Job Order, Contractor will
proceed with the following obligations:
1. Stop Work as stated in the notice;
2. Place no further subcontracts or orders;
3. Terminate all subcontracts to the extent they relate to the Work terminated;
4. Assign to the City ail right, title and interest of Contractor under the
subcontracts terminated, in which case the City will have the right to settle or
to pay any termination settlement proposal arising out of those terminations;
and
5. Take any action that may be necessary for the protection arid presen/ation
of the property related to the Contract that is in the possession of Contractor
and which the City has of may acquire an interest.
6. Comply with the requirements of Article 6.5(B)(1) and (2).
C.
Contractor will submit complete termination inventory schedules no later than sixty
(60) days from the date of the notice of termination.
D.
The City will pay Contractor the following:
1. The direct value of its completed Work and materials supplied as of the date
of termination;
2. The reasonable coste and expenses attributable to the termination;
3. Contractor will be entitled to profit and overhead on completed Work but will
not be entitled to anticipated profit or anticipated overhead. If it appears
Contractor would have sustained a loss on the entire Work had the Job
Order been completed, Contractor will not be allowed profit and the City will
reduce the settlement to reflect the indicated rate of loss;
4. Contractor will maintain all records and documents for three (3) years after
final settlement. These records will be maintained and subject to auditing as
required in Article 6.7; and
5. Take any action that may be necessary for the protection and preservation
of the property related to the Job Ordef(s) that Is in the possession of
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Contract No. 2026-007-COS
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Contractor and in which the City has or may acquire an interest
8.3
CANCELLATION FOR CAUSE
The City may also cancel this Contract or any part of it with seven (7) days notice for
cause in the event of any default by Contractor, or If Contractor 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 City’s Representative and failure to
provide the City, upon request, with adequate assurances of future performance will
all be causes allowliig the City to cancel this Contract for cause. In the event of
cancellation for cause, the City will not be liable to Contractor for any amount as
damages, and Contractor will be liable to the City for any and all damages sustained
as a result of the default that caused the cancellation.
8.4
CITY’S RIGHT TO PERFORM AND CANCEL FOR CAUSE
A. If Contractor persistently fails to:
1. Provide a sufficient number of skilled workers;
2. Supply the materials required by the Contract Documents or Job Order(s);
3. Comply with applicable Legal Requirements;
4. Timely pay, without cause. Subconsultants or Subcontractors;
5. Perform the Contract Services with promptness and diligence to ensure
that a Job Order is completed by the Job Order Time, as the times may be
adjusted; or
6. Perform other material obligations under the Contract Documents and/or
individual Job Orders;
Then the City, In addition to any other rights and remedies provided in the Contract
Documents or by law, will have the rights stated in Articles 8.2 and 8.3.
In the event the City cancels this Contract or any part of the services under any
Job Order, the City will notify Contractor in writing, and immediately upon receiving
this notice. Contractor will discontinue advancing the Work under this Contract or
the Job Order and proceed to close all operations of any affected Job Order or this
Contract.
B. If the City provides Contractor with a written order to provide adequate maintenance
of traffic, adequate cleanup, adequate dust control or to correct deficiencies or
damage resulting from abnormal weather conditions, and Contractor fails to comply
in a time frame specified, the City may have the Work accomplished by other
sources at Contractor’s expense and without an increase to the Job Order Price
C. Upon the occurrence of an event stated in Article 8.4(B), the City may provide written
notice to Contractor that it intends to cancel the Contract unless the problem cited
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is cured, or commenced to be cured, within seven (7) days of Contractor’s receipt of
notice.
1. If Contractor fails to cure, or reasonably commence to cure, the problem,
then the City may giye a second written notice to Contractor of its intent to
cancel within an additional seven (7) day period.
2. If Contractor, within this second seven (7) day period, fails to cure, or
reasonably commence to cure the problem, then the City may declare the
Contract cancelled for default by providing written notice to Contractor of
this declaration.
D: Upon declaring the Contract cancelled in accordance with Article 8.4(C), and for the
purpose of completing the Work, the City may for ail Job Orders enter upon the
premises and take possession of all materials, equipmerit, scaffolds, tools,
appliances and other items, which have been purchased or provided for the
performance of the Work, all of which Contractor how transfers, assigns and sets
over to the City for this purpose, and to employ any person or persons to complete
the Work and provide all of the required labor, services, materials, equipment and
other items.
E. If through any cause. Contractor fails to fulfill in a timely and proper manner Its
obligations under this Contract, or if Contractor violates any of the covenants.
Contracts, or stipulations of this Contract, the City may withhold any payments to
Contractor for the purpose of setoff until the exact amount of damages due the City
from Contractor is determined by a court of competent jurisdiction,
F. In the event of a cancellation. Contractor will hot be entitled to receive any further
payments under the Contract Documents until the Woi1< on all Job Orders is
completed in accordance with the Contract Documents. At that time. Contractor vyill
only be entitled to be paid for Work performed and accepted by the City before its
default.
G. if the City’s cost and expense of completing the Work exceeds the unpaid balance
of a Job Order Price, then Contractor will be obligated to pay the difference to the
City. These costs and expenses will include not only the cost of completing the Work,
but also losses, damages, costs and expense, including attorneys’ fees and
expenses, incurred by the City irr corinection with the reprocurement and defense of
claims arising from Contractor’s default.
H. If the City cancels this Contract for cause and the cancellation is determined to have
been without legal right, the cancellation for cause will be considered to have been
a termination for convenience in accordance with the provisions of Article 8.2.
ARTICLE 9 - INSURANCE AND BONDS
9.1 INSURANCE REQUIREMENTS
A. At the same time as execution of this Contract, Contractor will furnish the City of
Scottsdale a Certificate of Insurance on a standard insurance industry ACORD
(Revised 07/09/25)
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form. The ACORD form will be issued by an insurance company authorized to
transact business in the State of Arizona.
B.
Contractor, 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 Wori< by Contractor, its agents, representatives, employees, or
Subcontractors.
C.
The insurance requirements are minimum requirements for this Contract and in no
way limit the indemnity coveriants contained in this Contract,
D.
The City in no way warrants that the minimum limits contained in this Contract are
sufficient to protect Contractor from liabilities that might arise out of the
performance of the Contract Services under this Contract by Contractor, its agents,
representatives, employees. Subcontractors or Subconsultants and Contractor is
free to purchase any additional insurance as may be determined necessary. The
City will not pay for higher limits, but if Contractor pays for insurance with higher
limits. Contractor will name the City as an additional insured on any additional
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.
Self-Insured Retentions. 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.
9.2 MINIMUM SCOPE AND LIMITS OF INSURANCE
Contractor must provide coverage 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
$2,000,000
$2,000,000
$1,000,000
$2,000,000
(Revised 07/09/25)
Page 40 of 66
Fire Damage (Any one fire)
Medical Expenses (Any one person)
Contract No. 2026-007-COS
Solicitation No. RFSC2*022025-236
$100,000
OPTIONAL
B. Automobile Liabilitv-Anv Auto or Owned. Hired and Non-Owned Vehicles
Combined Single Limit Per Accident
For Bodily Injury and Property Damage
C.
Workers Compensation and Employers Liability
Workers Compensation
Employers Liability:
Each Accident
Disease - Each Employee
Disease - Policy Limit
D.
Coverage Terms and Required Endorsements
$1,000,000
Statutory
$500,000
$500,000
$1,000,000
(Revised 07/09/25)
1. The City of Scottsdale, its officers, officials, agents, and employees are
additional insureds with respect to liability caused in whole, or in part, by of
activities performed by, or oh behalf of, Contractor including the City's
general supervision of Contractor, products and completed operations of
Contractor; and automobiles owned, leased, hired, or borrowed by
Contractor.
2. The City, its officers, ofRcials, agents, and employees must be additional
insureds to the full limits of liability purchased by Contractor even if those
limits of liability are in excess of those required by this Contract.
3. Contractor’s insurance coverage must be primary Insurance with respect
to the City, its officers, officials, agents, and employees. Any insurance or
sejf-insurance maintained by the City, its officers, officials, agents, and
employees will be in excess of the coverage provided by Contractor and
must not contribute to it.
4. Contractor’s insurance must apply separately to each insured against
whom a claim Is made or suit is brought, except with respect to the limits of
the insurer's liability.
5. Coverage provided by Contractor must not be limited to the liability
assumed under the indemnification provisions of this Contract.
6. Ail policies must contain a waiver of subrogation against the City, its
officers, officials, agents, and employees, for losses arising from Work
performed by Contractor for the City.
7. Workers’ Compensation and Employers Liability Coverage: 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 Contractor for the City.
Page 41 of 66
Contract No, 2026-007-COS
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8. If Contractor receives notice that any of the required policies of insurance
are materially reduced or cancelled, it will be Contractor’s responsibility to
provide prompt notice to the contract administrator of same to the City,
unless such coverage is immediately replaced with similar policies.
E. Builders Risk-Installation Insurance (Course of Construction)
To be provided if determined by the City as necessary with each Job Order.
Contractor bears all responsibility for loss to all Work being performed and to
buildings under construction. Unless waived in writing by the City of Scottsdale.
Contractor will purchase and maintain in force Builders Risk-Installation insurance
on the entire Work until completed and accepted by the City. This insurance will
be Special Causes of Loss or Open Perils policy form, for the completed value, at
replacement cost equal to each Job Order contract price and all subsequent
modifications. Contractor’s Builders Risk-Installation insurance will be primary and
not contributory; and waive all rights of subrogation against the City, its officers,
officials and employees.
This Builders Risk-Installation insurance must name the City, Contractor and all
tiers of Subcontractors as respects their insurable interest at the date of loss. It
must contain a provision that subject insurance will not be canceled or materially
altered without at least thirty (30) days advance notice to the City. Contractor is
also required to give the City thirty (30) days advance written notice of the coverage
termination for each project. The City will also be named as a Loss Payee under
Builders Risk-Installation coverage.
This Builders Risk-Installation insurance must cover the entire Work including
reasonable compensation for architects and Contractor’s’ services and expenses
and other “soft costs” made necessary by an insured loss. Builders Risk-
Installation insurance must provide coverage from the time any covered property
comes under Contractor’s control and or responsibility, and continue without
interruption during course of construction, renovation and or installation, including
any time during which any project property or equipment is in transiL off site, or
while on site for future use or installation. Insured property must Include, but not
be limited to, scaffolding, false work, and temporary buildings at the site. This
insurance must also cover the cost of removing debris, including demolition as may
be legally required by operation of any law, ordinance, regulation or code.
Contractor must also purchase and maintain Boiler and Machinery insurance with
the same requirements as Builders Risk-Installation insurance stated above if the
Work to be performed involves any exposures or insurable property normally
covered under a Boiler and Machinery insurance policy or made necessary as
required by law and or testing requirements in the performance of this Contract.
Contractor will be responsible for any and all deductibles under these policies and
Contractor waives all rights of recovery and subrogation against the City under
Contractor-provided Builders Risk-Installation insurance described in thisArticle.
The Builders’ Risk-Installation insurance must be endorsed so that the insurance
will not be canceled or lapse because of any partial use or occupancy by the City.
Builders’ Risk-Installation Insurance must be maintained until whichever of the
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Contract No. 2026-007-COS
Solicitation No. RFSQ-022025-236
following first occurs: (i) final payment has been made; or (il) until no person or
entity, other than the City, has an insurable Interest in the property required to be
covered.
By signing this Contract, all rights of subrogation are waived against the City, its
officers, officials, agents and employees.
9.3 OTHER INSURANCE REQUIREMENTS
The policies are to contain, or be endorsed to contain, the following provisions:
A.
Contractors Professional Liability: Contractor must carry Contractors Professional
Liability insurance to cover the residual, contingent, and passive design exposures
of Contractor.
B.
Contractors Professional Limits of Liability: Contractor 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.
Contractor, its successors and or assigns, is required to maintain this Professional
LiabiiHy insurance as specified in this Contract for a minimum period of three (3y
years following cornpletion 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.
1. Contractor’s insurance coverage must be primary insurance with respect
to the City, its ofTicers, officials, agents, and ehriployees. Insurance or seifn
insurance maintained by the City, its officers, officials, agents, and
employees must be in excess of Contractor's insurance and will not
contribute to it.
2. The policies must contain a waiver of subrogation against the City, its
officers, officials, agents, and employees for losses arising from Work
performed for the City.
C. Contractor, its successors and assigns, is required to mairitain Commercial
General Liability insurance as specified in this Contract for a minimum peiibd of
three (3) years following completion and acceptance of the Work. Contractor must
submit a Certificate of Insurance evidencing the Commercial General Liability
insurance during this three (3) year period containing all the insurance
requirements including naming the City of Scottsdale, its agents, representatives,
officers, directors, officials and employees as Additional Insured as required.
9.4 SUBCONSULTANT’S AND SUBCONTRACTOR’S INSURANCE
Unless Contractor’s Subconsultants and Subcontractors can provide the same level of
coverage as detailed in Article 9.2 and name the City and Contractor as Additional
Insureds, Contractor’s certificates must include all Subcontractors and Subconsultants
as insureds under its policies or Contractor must maintain separate certificates and
endorsements for each Subcontractor and Subconsultant. All coverages for
Subcontractors and Subcorisultants must be in the amounts shown in Article 9.2.
Certificates must contain a provision that the insurance will not be canceled or materially
altered without at least thirty (30) days advance notice to the City. The City must also be
named as a Loss Payee under the Builders Risk-Installation coverage.
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9.5 NOTICE OF CANCELLATION
If Contractor receives notice that any of the required policies of insurance are materially
reduced or cancelled, it will be Contractor’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, reduced in coverage or in limits until thirty (30) days written notice has first
been given in accordance with Article 11.24, herein.
9.6 ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers duly licensed or approved to conduct business
in the State of Arizona and with an A. M. Best rating of no less than B++6. The City in
no way warrants that the above required minimum insurer rating is sufficient to protect
Contractor from potential insurer insolvency. Failure to maintain insurance as required
may result In termination of this Contract at the City’s option.
9.7 VERIFICATION OF COVERAGE
A.
Contractor must furnish the City Certificates of Insurance (ACORD form or
equivalent approved by the City) and with original endorsernents effecting
coverage as required by this Contract. The certificates and endorsements for each
insurance policy are to be signed by a person authorized by that insurer to bind
coverage on its behalf.
B.
All certificates and endorsements are to be received and approved by the City
before Contract Services commence except for Builders Risk-Installation
Insurance, which will be received and approved as provided in Article 9.2(E). Each
insurance policy required by this Contract must be in effect at or before the earlier
of commencement of Contract Services under the Contract Documents or the
signing of this Contract except for Builders Risk-Installation Insurance which must
be in effect before commencement of the 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, Attn: Purchasing Department, 9191 E. San Salvador Dr.
Scottsdale, AZ 85258. 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 Contractor’s Certificate and delay in contract execution.
Additional Certificates of Insurance submitted without referencing a Contract
number will be subject to rejection and returned or discarded.
9.8 APPROVAL
Any modification or variation from the insurance requirements in this Contract must be
approved by the Risk Management Division, whose decision is final. This action may be
made by administrative action.
(Revised 07/09/25)
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Solicitation No. RFSQ.-022025*236
9.9 BONDS AND OTHER PERFORMANCE SECURITY
A.
Before execution of each individual Job Order. Contractor must provide a
performance bond and a payment bond for all construction services, each in an
amount equal to the full amount of the agreed upon cost for that Job Order.
Contractor may, at its own option, provide Payment and Performance Bonds for
the entire Contract Price amount, but there shall be no obligation for the City to
reimburse Contractor for bond costs incurred, except on an actual cost basis as
each individual Job Order is issued. Bonds must be submitted in accordance with
Title 34, Chapter 6 of the Arizona Revised Statutes and must be in substantially
the same form as Exhibits A and B, attached to this Contract.
B.
Each bond must be executed by a surety company or companies holding a
Certificate of Authority to transact surety business in the State of Arizona, issued
by the Director of the Arizona Department of Insurance. A copy of the Certificate
of Authority must accompany the bonds. The Certificate must have been issued or
updated within two (2) years before the execution of this Contract.
C.
The bonds must be made payable and acceptable to the City of Scottsdale.
D.
The bonds must be written or countersigned by an authorized representative of the
surety and the bonds must have attached a certified copy of the Power of Attorney
of the signing official.
1. If one Power of Attorney is submitted, it must be for twice the total Job
Order Price.
2. If two Powers of Attorney are submitted, each must be for the total Job
Order Price. Personal or individual bonds are not acceptable.
3. Upon the request of any person or entity appearing to be a potential
beneficiary of bonds covering payment of obligations arising under the
Contract Documents, Contractor must promptly furnish a copy of the bonds
or must permit a copy to be made.
E.
All bonds submitted for this Project must be provided by a company which has
been rated "A or better" by the A.M. Best Company.
ARTICLE 10 - INDEMNIFICATION
10.1 CONTRACTOR’S GENERAL INDEMNIFICATION
To the fullest extent permitted by law. Contractor, its successors, assigns and
guarantors, must 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, reasonable 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 acts, omissions, negligence,
recklessness, or intentional wrongful conduct to the extent caused by Contractor or any
of its owners, officers, directors, agents or employees performing Work or Services
(Revised 07/09/25)
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Contract No. 2026-007-COS
Solicitation No. RFS(i-022025-236
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 Contractor 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 Contractor 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 for Claims arising solely from the
negligent or willful acts or omissions of the City, be indemnified by Contractor from and
against any and all claims. It is agreed that Contractor will be responsible for primary
investigation, defense, and judgment costs where this indemnification is applicable. In
consideration of the award of this Contract, Contractor agrees to waive all rights of
subrogation against the City, its officers, agents, representatives, directors, officials, and
employees for losses arising from the work performed by Contractor for the City.
Insurance provisions in this Contract are separate and independent from the indemnity
provisions of this Article and will not be construed in any way to limit the scope and
magnitude of the indemnity provisions. The indemnity provisions of this paragraph shall
not be construed in any way to limit the scope and magnitude and applicability of the
insurance provisions.
10.2 INTELLECTUAL PROPERTY
A.
Contractor must pay all royalties and license fees associated with its performance
of services.
B.
Contractor must defend any action or proceeding brought against the City based
on any claim that the Work, or any part of the Work, or the operation or use of the
Work or any part of it, constitutes infringement of any United States patent or
copyright, now or subsequently issued. The City will give prompt written notice to
Contractor of any action or proceeding and will reasonably provide authority,
information and assistance in the defense of the action. Contractor shall 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 Contractor in any action or proceeding.
Contractor agrees to keep the City informed of all developments in the defense of
these actions. The City may be represented by, and actively participate through,
its own counsel in any suit or proceedings if it so desires. Indemnification under
this section B. shall not apply to claims arising from the sole negligence or
omissions of The City.
C.
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. Contractor
shall at its sole expense take reasonable steps to procure the right to operate or
use the Work. If Contractor cannot procure this right within a reasonable time.
Contractor will promptly, at Contractor’s option and at Contractor’s expense,
without an increase to the Job Order Price, (i) modify the Work so as to avoid
infringement of any patent or copyright or (ii) replace the Work with Work that does
not infringe or violate any patent or copyright.
D.
Articles 10.2(B) and 10.2(C) will not be applicable to anysuit, claim or proceeding
based on infringement or violation of a patent or copyright:
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1. Relating solely to a particular process or product of a particular
manufacturer specified by the City and not offered or recommended by
Contractor to the City; or
2. Arising from rnodifications to the Work by the City or its agents after
acceptance of the Work.
3. Arising from the overall design of the Work where such design was
provided by a Design Professional contracted directly by the City, and not
modified or adapted by Contractor.
E. The obligations stated in this Article 10.2 will constitute the sole Contract between
the parti^ relating to liability for infringement of violation of any patent or copyright.
ARTICLE 11 - GENERAL PROVISIONS
11.1 MARSHALING AREA
Contractor shall contact the City of Scottsdale, Development Services to determine the
requirements for obtaining a permit for marshaling areas it proposes to use. Marshaling
areas must be fenced. Contractor will obtain vin-itten approval from the property owner
for marshaling area use. This approval must contain any requirements, which are a
condition of this approval. Marshaling yard requirements according to M.A.G.
Subsection 107.6.1 and the City of Scottsdale Supplemental Specifications will apply.
11.2 CONTRACT DOCUMENTS
A. Contract Documents are as defined in Article 12.
B.
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.
C.
In the event of any inconsistency, conflict, or ambiguity between or among the
Contract Documents, the Contract Documents will take precedence in the order in
which they are listed in the definition of Contract Documents in Article 12. As to
drawings and plans, given dimensions will take precedence over scaled
measurements, and large-scale plans over small-scale plans. Contract
specifications will take precedence over contract plans.
D.
The Contract Documents are intended to pemnit the parties to complete the Work
and all obligations required by the Contract Documents within the times and prices
agreed upon for each Job Order. The Contract Documents are intended to be
complementary arid interpreted in harmony so as to avoid conflict, with words and
phrases interpreted in a manner consistent with construction and design industry
standards.
E.
This Contract, the Plans, Standard Specifications and Detaiis, Special Provisions,
Performance Bond, Payment Bond, Certificates of Insurance, Job Orders and Job
Order Adjustments (if any) are by reference made a part of this Contract to the
same extent as if set forth in full.
F. Work Product
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1. All Work products (electronically or manually generated) including but not
iimited to: cost estimates, studies, design analyses, original mylar
drawings. Computer Aided Drafting and Design (CADD) file diskettes, and
other related documents which are prepared or procured in the
performance of this Contract (collectively referred to as documents) are to
be and remain the property of the City and are to be delivered to the City
before the final payment is made to Contractor. In the event these
documents are altered, modified or adapted without the written consent of
Contractor or the Subconsultants, \A^ich consent Contractor or the
Subconsultants will not unreasonably withhold, the City agrees to hold
Contractor and the Subconsultants harmless to the extent permitted by law
from the legal liability arising out of the City’s alteration, modification or
adoption of the documents.
2. The copyrights, patents, trade secrets or other intellectual property rights
associated with the ideas, concepts, techniques, inventions, processes or
woiics of authorship developed, created by Contractor, its Subconsultants
or personnel, during the course of performing this Contract or arising out of
the Project will belong to Contractor.
11.3 MODIFICATIONS
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.
11.4 TIME IS OF THE ESSENCE
Time is of the essence with respect to the dates and times stated in the Contract
Docurrients.
11.5 COOPERATION AND FURTHER DOCUMENTATION
Contractor agrees to provide the City any other duly executed documents, as will be
reasonably requested by the City, to implement the intent of the Contract Documents.
11.6 ASSIGNMENT
Neither Contractor nor the City will, without the written consent of the other, assign,
transfer or sublet any portion of this Contract or part of the Work or the obligations
required by the Contract Documents.
11.7 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, acts of terrorism, epidemics, governmental regulations imposed after the fact,
fire, communication line failures, or power failures.
11.8 FUNDS APPROPRIATION
Multiterm contracts for job-order-contracfjng construction services are subject to A.R.S.
§34-607, as amended. If the City Council does not appropriate funds to continue this
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Contract and pay for charges, the City may terminate this Contract at the end of the
current fiscal period. The City agrees to give written notice to Contractor at least thirty
(30) days before the end of its current fiscal period and will pay Contractor for all
approved charges incurred through the end of the period.
11.9 CONSTRUCTION METHODS
If the City provides Contractor with a written order to provide adequate maintenance of
traffic, clean-up, dust control or to correct deficiencies or damage resulting from
abnormal weather conditions, and Contractor fails to comply in the time frame specified,
the City may have Work accomplished by other sources at Contractor’s expense, without
an increase in the Job Order Price.
11.10 UTILITY RELOCATIONS FOR CONSTRUCTION METHODS
If any utility is relocated or rebuilt to accommodate Contractor’s construction methods
and available equipment, the expense will be borne by Contractor and will be replaced
to the original location before completion of the Job Order at the request of the City’s
Project Coordinator at Contractor’s sole expense, without an increase in the Job Order
Price.
11.11 DAMAGED UTILITIES DURING CONSTRUCTION
Any utilities damaged during construction shall be replaced at Contractor’s expense,
without an increase in the Job Order Price, as per the requirements of the M.A.G.
Standard Specifications.
11.12 SUCCESSORS AND ASSIGNS
This Contract will extend to and be binding upon Contractor, its successors and assigns,
including any individual, company, partnership, or other entity with or into which
Contractor will merge, consolidate, or be liquidated, or any person, corporation,
partnership, or other entity to which Contractor 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.
11.13 CONFLICT IN LANGUAGE
All services and Work performed will conform to all applicable City of Scottsdale codes,
ordinances and requirements as outlined in the Contract Documents. If there is a conflict
in interpretation between provisions in this Contract and those in exhibits, the provisions
in this Contract will prevail.
11.14 THIRD PARTY BENEFICIARY
Nothing under the Contract Documents will be construed to give any rights or benefits
in the Contract Documents to anyone other than the City and Contractor, and all duties
and responsibilities undertaken in accordance with the Contract Documents will be for
the sole and exclusive benefit of the City and Contractor and not for the benefit of any
other or third party.
11.15 GOVERNING LAW
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This Contract and all Contract Documents will be considered to be made under and will
be construed in accordance with and governed by the iaws of the State of Arizona
without regard to the conflicts or choice of law provisions. Any action to enforce any
provision of this Contract or to obtain any remedy with respect to this Contract shall be
brought in the Superior Court of Maricopa County, Arizona, and 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.
11.16 SEVERABILITY
If any provision of the Contract Documents or their application to any person or
circumstance is invalid, illegal or unenforceable to any extent, the remainder of the
Contract Documents 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, as amended, should the Attorney General give notice to the City
that any provisions of the 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 Suprerrie Court, the offending provision(s)
shall be immediately severed and struck from the Contract and the City and Contractor
shall, within ten (10) days after such notice, negotiate in good faith to resolve any issues
related to the severed provision(s).
11.17 LEGAL REQUIREMENTS
Contractor shall perform all Contract Services In accordance with all Legal Requirements
and will provide all notices applicable to the Contract Services as required by the Legal
Requirements.
11.18 INDEPENDENT CONTRACTOR
The services the Contractor provides to the City are that of an Independent Contractor,
not an employee, or agent of the City. Upon request, the Contractor 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.
Any provisions In the Contract Documents that may appear to give the City the right to
direct Contractor as to the details of accomplishing the Work or to exercise a measure
of control over the Work means that Contractor will follow the wishes of the City as to
the results of the Work only. These results will comply with all applicable laws and
ordinances.
11.19 CITY’S RIGHT OF CANCELLATION
This Contract is subject to cancellation by the City of Scottsdale in accordance with the
provisions of A.R.S. § 38-511, as amended.
11.20 SURVIVAL
All warranties, representations and inderhnifications by Contractor shall survive the
completion or termination of this Contract.
11.21 COVENANT AGAINST CONTINGENT FEES
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Contractor wanrants that no person has been employed or retained to solicit or secure
this Contract upon any contract or understanding for a commission, percentage,
brokerage, or contingent fee, and that no member of the City Council, or any employee
of the City of Scottsdale has any Interest, financially, or otherwise, in the firm. For breach
or violation of this waitanty, the City will have the right to annul this Contract without
liability, or at its discretion to deduct from the Contract Price or consideration, the full
amount of any commission, percentage, brokerage, or contingent fee.
11.22 NO WAIVER
The failure of either party to enforce any of the provisions of the Contract Documents, or
to require performance of the other party of any of its provisions, will not be construed to
be a waiver of those provisions, nor will it affect the validity of the Contract Documents or
any part of the Contract Documents, or the right of either party to enforce each and every
provision.
11.23 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.
11.24 NOTICE
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. Notice by electronic mail or facsirhile will not be considered
notice.
To City:
City of Scottsdale
Attn: Robert Franklin
Facilities Service Area Manager
9191 E San Salvador Dr.
Scottsdale, Arizona 85258
To JOC Contractor:
Core Construction
Attn: Todd Steffen
13835 N. Northsight Blvd. #100
Scottsdale, AZ 85260
602-494-0800
11.25 ADDITIONAL CITY RIGHTS REGARDING SECURITY INQUIRIES
Projects may be completed in both secure and non-secure City facilities. All Contractor
and Subcontractor employees may be required to pass mandatory background checks
prior to the start of any Work and be issued access badges by City of Scottsdale
Municipal Security. In addition to the foregoing, the City reserves the right to: (1) have
an employee/prospective employee of Contractor be required to provide fingerprints and
execute any other documentation as may be necessary to obtain criminal justice
information pursuant to A.R.S. § 41-1750(G)(4); (2) act on newly acquired information
whether or not that information should have been previously discovered; (3) unilaterally
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change its standards and criteria relative to the acceptability of Contractor's employees
or prospective employees; and, (4) object, at any time and for any reason, to an
employee of Contractor performing Work (including supervision and oversight) under
this Contract.
A.
Provisions Applicable to all Contractor Contracts and Subcontracts. Contractor will
include the terms of this provision for employee background and security checks
and screening in all contracts and subcontracts for Work performed under this
Contract, including supervision and oversight.
B.
Materiality of Security Inquiry Provisions. The Security Inquiry provisions of this
Contract, as stated above, are material to the City’s entry into this Contract and
any breach by Contractor may, at the City’s sole option and unfettered discretion,
be considered to be a breach of contract of sufficient magnitude to terminate this
Contract. Termination will subject Contractor to liability for its breach ofcontract.
11.26 HAZARDOUS MATERIALS
A.
Upon discovery of hazardous materials Contractor will comply with all applicable
laws/ordinances and regulations and take ail appropriate health and safety
precautions.
B.
Unless included in the Work, if Contractor encounters onsite, or as material to be
incorporated in the Work, any material which it reasonably believes to contain
asbestos, polychlorinated biphenyl (PCB), or other hazardous substances or
materials regulated by public health laws, it will immediately stop work and report the
condition to the City.
C.
If the material is found to contain asbestos, PCB or other hazardous substances or
materials regulated by public health laws, Contractor will not resume Work in the
affected area until the material has been abated or rendered harmless. Contractor
and the City may agree, in writing, to continue Work in non-affected areas onsite.
D.
An extension of Job Order Time may be granted in accordance with Article 5.
E.
Contractor will comply with all applicable laws/ordinances and regulations and take
all appropriate health and safety precautions upon discovery.
F.
Despite the provisions of this Article 11.26, the City is not responsible for
hazardous conditions or materials introduced to the Site by Contractor,
Subcontractors or anyone for whose acts they may be liable. Contractor will
indemnify, defend and hold harmless the City and the City’s officers, directors,
employees and agents from and against ail claims, losses, damages, liabilities and
expenses, including attorneys’ fees and expenses, arising out of or resulting from
those hazardous conditions or materials introduced to the Site by Contractor,
Subcontractors or anyone for whose acts they may ba ilable.
11.27 TRAFFIC CONTROL
A.
(Revised 07/09/25)
Complete street closures will not be permitted unless specified in the Special
Provisions or approved by the City. The timing and sequence of street closures will
be approved by the Traffjc Engineering Director, or designee, at least fourteen
(14) days before the closure. This approval is necessary to provide coordination
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with other roadway projects and special events.
B.
Adequate barricades and lighted warning signs must be installed and maintained
by Contractor throughout the duration of any Project. All traffic control must be in
accordance with the current version of the City of Scottsdale Supplement to MAG
Uniform Standard Specifications Section 401 or as required by the approved
barricade plan unless othenwise specified in the Special Provisions.
C.
Contractor will submit a construction schedule and a barricade plan to the City
Traffic Engineering Director, or designee, for approval or modification at least
seventy-two (72) hours before construction is initiated, and must wait to commence
construction until the plan is signed as accepted by the City Traffic Engineering
Director, or designee.
11.28 MATERIAL SOURCE
No material source has been designated by the City for use under this Contract. MAG
Specification, Section 106 will apply as will ADOT Standard Specifications 1982, Section
106.1, 106.2, 106.7 & 106.8, which outline controls and Section 1001-1, -2, & -4
concerning approval of Contractor-Furnished Source and supplemental Contracts in
regards to environmental analysis and the liability for materials testing costs.
Contractor and Subcontractor furnished material sources situated in the 100-year flood
plain of any stream or watercourse will not be allowed if located within 1.0 mile upstream
and 2.0 miles downstream of any highway structure or surfaced roadway crossing.
A Contractor and Subcontractor-furnished source will be defined as a material source,
which is neittier an ADOT furnished source nor a commercial source, as defined in this
Contract.
A commercial source will be defined as a material source in which the owner or producer
has been regularly engaged for at least one (1) year during regular business hours on a
regular basis in the processing and selling of sand, rock, ready mixed Portland cement
concrete, asphaltic concrete and other similar products normally produced and sold to
all parties. The company must have an Arizona retail sales tax license.
The location of any new material source or existing non-commercial material source
proposed for use under this Contract must be reviewed by the appropriate agency
having flood plain management jurisdiction over the area of proposed source location.
Contractor and Subcontractor will obtain a letter from the agency addressed to the
Contract Administrator certifying that the proposed source location conforms to the
required conditions and the applicable Standard Specifications. Contractor will
familiarize himself with the nature and extent of the Contract Documents, work to be
performed, all local conditions, and federal, state and local laws, ordinances, rules and
regulations that in any manner may affect cost, progress or performance of the Work.
11.29 FAMILIARIZATION WITH APPLICABLE LAWS
Contractor will familiarize itself with the nature and extent of the Contract Documents,
work to be performed, all local conditions, and federal, state and local laws, ordinances,
rules and regulations that in any manner may affect cost, progress or performance of
the Work.
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11.30 NATIVE PLANTS
Gontractor agrees it will take whatever steps, procedures or means necessary to remove,
move, displace and save all native plants within the contract work area in accordance
with the City of Scottsdale Revised Code, as amended, arid ail applicable state and
county statutes, ordinances, codes and other policy requirements and recognized
methods, procedures, techniques and equipment for protection, salvage, and handling of
all plants to be moved from the construction area. This is not a pay item unless specified
upon the Schedule of Bid Items.
11.31 ENDANGERED HARDWOODS
Contractor agrees any construction, building addition or alteration project which is
financed by monies of this state or its political subdivisions will not use endangered
tropical hardwood unless an exemption is granted by the Director of the State of Arizona,
Department of Administration.
11.32 CONSTRUCTION ACTIVITY
Contractor agrees that all construction activity occurring on Site shall conform to the
hour and noise requirements of the City of Scottsdale Revised Code, as amended.
11.33 COMPUANCE WITH LOCAL, STATE AND FEDERAL LAWS
A. Contractor 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 AcL National Labor Relations Act, Occupational Safety
and Health Act, and other local, state or federal law governing Contractor’s labor arid
employment practices. Contractor agrees to comply with these laws In performing this
Contract and to permit the City to verify compliance. Contractor further agrees that any
violation of provision on the part of Contractor, its employees, agents or assigns will
constitute a material breach of this Contract.
Contractor 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. Contractor will include the terins 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, Contractor warrants to the City that
Contractor and all its Subcontractors will comply with all Federal Immigration
laws and regulations that relate to its employees and that Contractor and all Its
Subcontractors now comply with the E-Verify Program under A.FLS. §23-214(A).
A breach of this warranty by Contractor or any of its Subcontractors will be considered
a material breach of this Contract and may subject Contractor 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 Contractor or
any Subcontractor who works on this Contract to ensure that Gontractor or any
Subcontractor is complying with the warranty given above.
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The City may conduct random verification of the employment records of Contractor and
any of its Subcontractors to ensure compliance with this warranty. Contractor 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.
The City will not consider Contractor or any of its Subcontractors in material breach of
this Contract if Contractor 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 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 Contractor enters into
with any and all of its Subcontractors who provide services under this Contractor 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. Contractor will take appropriate steps to assure that all Subcontractors
comply with the requirements of the E-Verify Program. Contractor’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.
B. Compliance with Americans with Disabilities Act. Contractor acknowledges that, in
accordance with 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. Contractor will 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. Contractor
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 provision on the part of Contractor, its employees, agents or assigns will
constitute a material breach of this Contract.
C. Equal Employment Opportunity and Discrimination. For the duration of this Contract,
Contractor 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 Contractor compliance with tine policies contained therein.
Contractor agrees that any violation of provision on the part of Contractor, its
employees, agents or assigns will constitute a material breach of this Contract.
Contractor will include the terms of this provision in all contracts and subcontracts for
work performed under this Contract, including supervision and oversight. The
Contractor will, in all solicitations or advertisements for employees placed by or on
behalf of the Contractor, state that all qualified applicants will receive consideration for
employment without regard to race, color, religion, sex, sexual orientation, gender
identity, or national origin.
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D. No Preferential treatment or Discrimination. In accordance with the provisions of
Article II, Section 36 of the Arizona Constitution, the City wili 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, Contractor
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.
E. Advertising. No advertising or publicity concerning the City using Contractor’s services
shall be undertaken without prior written approval of such advertising or publicity by
the Contract Administrator and the City Attorney.
11.34 DATACONFIDENTIAUTY
A.
As used in this Contract, data means all information, v^ether 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 Contractor in the perfomiance of this
Contract.
B.
C.
D.
The parties agree that ail data, including originals, images, and reproductions,
prepared by, obtained by, or transmitted to Contractor in connection with
Contractor's performance of this Contract Is confidential and proprietary
information belonging to the City.
Contractor will not divulge data to any third party without first obtaining the written
consent of the City. Contractor 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 provided Contractor has first given the required notice to the
City:
1. Data, which was known to Contractor before its performance under this
Contract unless the data was acquired in connection with the Work
performed for the City;
2. Data which was acquired by Contractor in its performance under this
Contract and Which was disclosed to Contractor by a third party, who to the
best of Contractor's knowledge and belief, had the legal right to make
disclosures and Contractor is not othenArise required to hojd the data in
confidence; or
3. Data, which is required to be disclosed by virtue of laW, regulation, or court
order to which Contractor is subject.
in the event Contractor is required or requested to disclose data to a third party, or
any other information to which Contractor became privy as a result of any other
contract with the City, Contractor will first notify the City as required in this Article
of the request or demand for the data. Contractor will give the City sufficient facts
so that the City can be given an opportunity to first give its consent or take any
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action the City may consider appropriate to protect the data or other information
from disclosure.
E.
Unless' prohibited by law, within ten (10) days after completion of services for a
third party on real or personal property owned or leased by the City, Contractor will
promptly deliver, as stated in this Article, a copy of all data to the City. All data will
continue to be subject to the confidentiality requirements of this Contract.
F.
Contractor 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 Contractor, its employees, agents 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.
11.35 CONFLICT OF INTEREST
A- To evaluate and avoid potential conflicts of Interest, Contractor will provide written
notice to the City, as stated in this Article, of any work or services performed by
Contractor for third parties that may involve or be associated with any real property
or personal property owned or leased by the City. The notice will be given seven
(7) business days before commencement of the Project by Contractor 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 City Senior Representative
identified in Article 7.4.
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
3. Using data to produce income for Contractor or its employees
independently of performing the services under this Contract, without first
obtaining the written consent of the City.
C.
Contractor represents that except for those persons, entities and projects identified
to the Cityi the services to be performed by Contractor 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.
Contractor’s failure to provide a written notice and disclosure of the information
stated in this Article on Conflicts of interest will constitute a material breach of this
Contract.
E.
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
(Revised 07/09/25)
Page 57 of 66
Contract No. 2026-007'COS
Solicitation No. RFSQ-022025-236
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 vyith 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.
11.36 COMMENCEMENT OF STATUTORY LIMITATION PERIOD AND STATUTE OF
REPOSE
A.
Before Final Completion. As to acts or failures to act occurring before the relevant
date of Final Completion, any applicable statute of limitations will commence to run
and any alleged cause of action will be considered to have accrued in any and all
events not later than the date of Final Completion.
B.
Between Punch List Preparation and Final Completion. As to acts or failures to act
occurring between the relevant date of Punch List Preparation and before Final
Completion, any applicable statute of limitation Will begin to run and any alleged
cause of action will be considered to have accrued in any events not later than the
date of Final Completion.
C.
After Completion. As to acts or failures to act occurring after the date of Final
Completion, any applicable statute of limitations will commence to run and any
alleged cause of action will be considered to have accrued in any and all events
not later than the date of any correction of the Work or failure to correct the Work
by the Contractor, or the date of actual commission of any other act or failure to
perform any duty or obligation by the Contractor or the City, whichever occurs last.
D.
Statute of Repose. The time period for the applicable Statute of Repose will
Commence to run at the time specified in A.R.S. §12-552 as it is amended or
renumbered from time to time.
11.37 LOSS AND DAMAGES
Except as expressly provided in this Contract, al| loss or damage arising out of the nature
of the Work to be done or from the action of the elements, or from any unforeseen
circumstances, in the prosecution of the same, or from any unusual obstructions or
difficulties which may be encountered iri or during the prosecution of the Work, or from
any casualty whatsoever of every description, will be sustained and borne by party at
fault..
11.38 RIGHTS-OF-WAY
The M.A.G. Standard Specification 107.12 is modified to read as follows: “Contractor, at
its own expense, is responsible for, the acquisition of any necessary temporary
easements for construction purposes, storage and maintenance purposes, which are
required in addition to existing easements or rights of way secured by the City as
indicated upon the plans.”
(Revised 07/09/25)
Page 58 of 66
Contract No, 2026-007-COS
Solicitation No. RFSCi-022025-236
11.39 EXISTING TRAFFIC AND STREET SIGNS AND TRAFFIC SIGNAL EQUIPMENT
Contractor will use due care when excavating at or near intersections where traffic signal
underground conduit is located. Contractor will notify the Transportation Maintenance
Traffic Signal Division (tel. 480.312.5620) at least forty-eight (48) hours in advance of
any work at the intersections. Contractor will be responsible for the installation and
maintenance of temporary overhead traffic signal cable as specified by the Traffic
Engineering Director when underground conduit is to be severed by excavations at the
intersection. The Transportation Maintenance Manager will have all underground traffic
conduit located and will provide the necessary City Technicians to assist Contractor in
identifying wiring phases and direction of conduit runs upon twenty-four (24) hours’
notice from Contractor and at least one (1) day before Contractor’s scheduled wiring and
installation of temporary cables. Contractor will be responsible for the wiring and
connection of all temporary cable within the pull boxes and terminal compartments. The
Transportation Maintenance Manager will provide a City technician to assist Contractor
with connecting field wiring within the traffic signal control cabinet. Contractor will
provide, at its expense, an off-duty uniformed Police Officer to direct traffic while the
traffic signal is turned off and the wiring is transferred. Contractor will be responsible as
specified by the Traffic Engineering Manager for the repair and restoration of all traffic
signal overhead and underground items that have been damaged or modified. The City
does not permit the splicing of Magnetic Detector Loops.
11.40 CERTIFICATION OF USE OF BENCHMARKS
In compliance with the City’s Design Standards & Policies Manual (DS&PM), Sections
9-1.1 and 9-1.301, it is the City’s intent that Contractor must use both horizontal and
vertical benchmarks with City of Scottsdale published values for any survey on all public
works projects. These published values are available for public use at the following
website:
httDs://eservices.scottsdaleaz.aov/maDs/benchmarks. AT LEAST 1
HORIZONTAL AND 1 VERTICAL BENCHMARK MUST MATCH THE NORTHING,
EASTING OR ELEVATION VALUES PUBLISHED ON THE CITY’S WEBSITE. If
required by the City, Contractor must sign and submit with this Contract, the Certificate
of Use attached and by reference made a part of this Contract.
11.41 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. Contractor, its Subcontractors, Subconsultants and Suppliers, shall pay all
Federal, state and local taxes applicable to its operation and any persons employed by
Contractor, its Subcontractors, Subconsultants and Suppliers, except as may be
otherwise provided in this Contract. Contractor 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.
11.42 ISRAEL BOYCOTT/FORCED LABOR PROVISIONS
By executing this contract. Contractor certifies that it is not currently engaged in and will
(Revised 07/09/25)
Page 59 of 66
Contract No. 2026-007-COS
Solicitation No. RFSQ.-022025-236
not for the duration of this contract engage in boycott activity proscribed by A.R.S. § 35-
393 et seq, as amended.
Pursuant to A.R.S. § 35-394, as amended, Contractor 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 labor or any goods
or services produced by the forced labor of ethnic Uyghurs in the People's Republic
of China.
If Contractor becomes aware during the term of this Contract that Contractor is not in
compliance with this Article, Contractor shall notify the City within five (5) business days
after becoming aware of the noncompliance. Failure of Contractor to provide a written
certification that Contractor 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 12 - DEFINITIONS
“Allowance” means an agreed amount by the City and Contractor for items which may be required
to complete the scope of work.
“As-built Document” - “As-built in construction is equivalent to “as-is." Drawings deemed “as- builf
are final drawings that include all changes made during the actual construction process. These
drawings represent the actual existing constructed conditions as opposed to designs or a
proposed condition. The As-built Documents should be per A.R.S. § 32-152.
“Blueline or Blackline Prints” - Prints that allows comparison of document versions to show what
has been revised.
“City” means the City of Scottsdale, Arizona, an Arizona municipal corporation. Regulatory
activities handled by the City of Scottsdale Development Services, Planning and Fire
Departments or any other City department are not subject to the responsibilities of the City under
this Contract.
“City’s Representative” means the person designated in Article 7.4(A)(2).
"City’s Senior Representative" means the person designated in Article 7.4(A)(1).
“Construction Coordinator” means a City employee who coordinates the daily construction
activities with Contractor, and with their inspection staff that performs quality control inspections,
enforces project plans and specifications and adopted City codes and ordinances.
“Construction Documents” means the plans, specifications and drawings prepared by the Design
Professional after correcting for permit review requirements and incorporating addenda and
approved Job Order Adjustments.
(Revised 07/09/25)
Page 60 of 66
Contract No. 2026-007-COS
Solicitation No. RFSQ-022025*236
"Construction Fee” means Contractor’s home office overhead and profit, whether at Contractor’s
principal or branch offices. This includes the home office costs and any limitations or exclusions
that may be included in the General Conditions for the construction phase.
“Contract" or “Job Order Contract” means this ftilly executed Contract between the City and
Contractor.
“Contract Administrator” means the person designated in Article 7.4(A) or designee. The Contract
Administrator will serve as Contractor’s primary point of contact vinth the City, monitor Contractor’s
performance, review and approve invoices, establish delivery schedules, and in conjunction with
Purchasing ensure Certificates of Insurance are current, conform to the requirements of this
Contract, and are in the City’s possession. Contractor will direct any reports and/or special
requests to the Contract Administrator.
“Contract Documents” means the following items and documents in descending order of
precedence executed by the City and Contractor (1) Change Orders; (2) Job Order Adjustments;
(3) Contract Modifications; (4) Job Orders; (5) this Contract including ail exhibits and attachments;
(6) Contractor's Proposal (If any); (7) Contractor Statement of Qualifications.
“Contract Modification” means a specific written concurrence between the City and Contractor for
changes to this Contract consistent with the City of Scottsdale Procurement Code, asarhended.
“Contract Price” means the amount or amounts; stated in ^cle 4 subject to any Contract
Modifications.
“Contract Services" means the services required by the Contract Documents.
“Contract Time(s)” means the time stated in Article 3, subject to Contract Modifications as
permitted by this Contract.
“Contractor” is Contractor selected by the City to provide or procure construction services as
detailed in this Job Order Contract.
“Contractor Payment Request" means the City form used by Contractor to request progress
payments for Job Orders in accordance with /^cle 6.
“Contractor’s Representative" means the person described in Article 7.4(B)(2).
"Contractor’s Senior Representative" means the person described In Article 7.4(B)(1).
“Day(s)” means calendar days unless othenn/ise specifically noted in the Contract Documents.
“Delay" means an unanticipated eVent or interference with the progress of a critical path work
activity being performed at the time that causes the completion date of the project to be extended.
Delays may be caused by the City, Contractor, third parties or Force Majeure events. Delays may
be excusable, compensable, non-compensable or concurrent.
“Delay, Compensable” means delay that results from the City’s actions or inactions that entitle
Contractor to both a time extension and delay damages.
“Delay, Concurrent” means two (2) or more delays, within the Same timeframe, both of which
(Revised 07/09/25)
Page 61 of 66
Contract No. 2026-007-COS
Solicitation No. RFSCi-022025-236
would independently impact the Project Schedule. If one delay is caused by the City and the other
by Contractor, Contractor will generally be entitled to an excusable, non-compensable time
extension, to the degree the delays may “overlap.”
“Delay, Excusable” means an unforeseeable delay caused by an event beyond the control and
without the fault or negligence of Contractor (including its Suppliers and Subcontractors).
Excusable delays may be compensable or non-compensable, depending upon whether the terms
of the Contract or the law allovi/s recovery of delay costs. Unless otherwise shown, it will generally
be presumed that these delays are non-compensable.
“Delay, Non-Excusable” means a delay within the control of Contractor, its Suppliers and
Subcontractors, or a delay resulting from a risk taken by Contractor under the terms of the
Contract. Contractor will not be due any time extension or delay damages, and may be
responsible for paying to the City, actual or liquidated damages for the delay.
“Deliverables” means ^e work products prepared by Contractor in performing the scope of work
described in this Contract. Some of the major deliverables to be prepared and provided by
Contractor 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. Subcontractor procurement plan,
Subcontractor Contracts, Subcontractor bid packages. Supplier Contracts, and others as
indicated In this Contract or required by the Project Team.
“Design Professional” means a qualified, licensed design professional who furnishes design or
construction administration services.
“Differing Site Conditions” comply with M.A.G. Standard Specifications, Subsection 102.4.
“Effective Date” means the date that this Contract takes effect and becomes operative and
enforceable. The Effective Date of this Contract shall be the date on which it is executed by the
City, as noted at the beginning of this Contract.
“Field Order” means a written field directive prepared and signed by the City, directing a change
in work that may or may not include an adjustment in contract price or contract time.
“Rnal Acceptance" means the completion of a Job Order as prescribed in Article 3.5.
“Informational Submittals” - Submittals are required (common with construction projects) for the
architect and engineer to verily that the correct products and quantities will be installed on a
project.
“Job Order” or “Project” means a specific scope of Contract Services done pursuant to an
individual Job Order and includes a specific written Contract between the City and Contractor for
a Job Order including a Scope of Work, a Job Order Price, a Job Order Time and any special
conditions that may apply to be performed under this Contract. The Job Order includes the plans,
technical specifications, special provisions and Contractor’s proposal either by reference or
inclusion.
“Job Order Adjustment” or “Adjustmenf means a written order signed by an authorized
representative of the City and which approves changes in the Work required under a Job Order,
the Job Order Price, or the Job Order Time consistent with the City of Scottsdaie Procurement
(Revised 07/09/25)
Page 62 of 66
Contract No. 2026-007-COS
Solicitation No. RFSCi-022025-236
Code, as amended.
“Job Order Notice-to-Proceed,” (NTP) means a written notice given by the City to Contractor fixing
the date on which Contractor will start to perform Contractor’s obligations under that individual
Job Order.
“Job Order Price" means the amount negotiated between Contractor and the City for an individual
Job Order that includes costs, overhead, bonding, insurance, profit and other costs as agreed to
and calculated on the Unit Prices, Cost-coefficient and Special Items as prescribed in Article4.
“Job Order Time” or “Duration of the Work” means the number of Days from a Job Order Notice-
to-Proceed to Substantial Completion. The approved Job Order Time will be made part of this
Contract by executing an individual Job Order for that specific Project.
“Legal Requirements” means all applicable federal, state and local laws, codes, ordinances,
rules, regulations, orders and decrees of any government or quasi-government entity having
Jurisdiction over a Project or Site, the practices involved in a Project or Site, or any Work.
“Liquidated Damages” means an amount Contractor will pay in compliance with Article 3.6.
“Must” and “will” as used in this Contract are mandatory.
"Owner Agent," "City’s Agent” or “Owner Representative” see “City’s Senior Representative.”
“Payment Request’ means a monthly progress payment request that is based on a monthly
estimate of the dollar value of the Work completed.
“Product Data” means illustrations, standard schedules, performance charts, instructions,
brochures, diagrams and other information furnished by Contractor to illustrate materials or
equipment for some portion of the Work.
“Professional Certification” - Professional certification is a designation which indicates that a
person is qualified to perform a job or task. Professional certification can be trade certification or
professional designation.
"Project Record Documents" means the documents created pursuant to Article 1.9.
“Project Record Drawing Prints” - Set of current design drawings used by construction contractor
for reference during construction. These drawings are typically marked up during the construction
process and are used to develop the subsequent “as-built” drawings.
“Punch List” means those minor items of Work to be completed before Final Acceptance which
do not prevent the Project from being used for the purpose for which it is intended and which will
not prevent the issuance of a Certificate of Occupancy.
“Samples” means physical examples, which illustrate materials, equipment or workmanship and
establish standards by which the Work will be judged.
“Schedule of Values (SOV)” means the Document specified in the construction phase, which
divides the Job Order Price into pay items, such that the sum of all pay items equals the Job Order
{Revised 07/09/25)
Page 63 of 66
i_ Tr>. (
Contract No. 2026-007-COS
Solicitation No. RFSQ.-022025-236
Price for the construction phase Work, or for any portion of the Work having a separate specified
Job Order 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 arid other data specially prepared for the
Work by Contractor or a Subcontractor, Sub-subcontractor, manufacturer, supplier or distributor
to illustrate some portion of the Work.
“Site" means the land or premises on which a Job Order is located. Contractor will require all
Subcontractors to include the street address of the Job Order in their contracts.
“Specifications” means those sections 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” or “Subconsultant” means any person or entity retained by Contractor as an
independent contractor to perform a portion of the Contract Services and must include material
men and suppliers. All Subcontractors must be selected in accordance with the selection plan
stated in Article 1.13.
“Substantial Completion” means 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 it for its
intended purposes. This may include, but is not limited to: (1) approval by the City Fire Marshall
and local authorities (Certificate of Occupancy); (2) Issuance of elevator permit; (3) demonstration
to the City that all systems are in place, functional, and displayed to the City or its representative;
(4) installation of all materials and equipment; (5) City review and acceptance of all systems; (6)
City review and acceptance of draft O&M manuals and record documents; (7) City operation and
maintenance training completed; (8) HVAC test and balance completed [provide minimum 30
days before projected substantial cornpletionj; (9) completed landscaping and site work; and (10)
final cleaning.
“Supplier” means a manufacturer, fabricator, supplier, distributor, material rnan or vendor having
a direct contract with Contractor or any Subcontractor to furnish materials or equipment to be
incorporated in the construction phase work by Contractor or any Subcontractor.
“Work” means 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 services and documents as required
by the Contract Documents for the construction phase.
[END OF TEXT- SIGNATURE PAGE TO FOLLOW]
(Revised 07/09/25}
Dlii^Tr,!. D..r,Hlo.m. UOn<rKRMMr<0
Page 64 of 66
Contract No. 2026-007-COS
Solicitation No. RFS(i-022025-236
(Revised 07/09/25)
Page 65 of 66
Dll•^Tr^l/ Oiinr^to TH*
Di iMnO
Contract No. 2026'007-COS
Solicitation No. RFS(i-022025*236
CITY OF SCOTTSDALE, ARIZONA
CONTRAa NO. 2026-007-COS
CONTRACT.
This Contract has been properly executed by the parties above named, on the date and year written above,
to be retained by the City Clerk.
Contractor agrees that this Contract, as awarded, is for the stated Work and understands that ,payment for
the Work will be made on the basis of the indicated amount, per the terms and conditions of this Contract.
CITY OF SCOTTSDALE, an
Arizona municipal corporation
By:______________________
Lisa Borowsky, Mayor
ATTEST:
Ben Lane, City Clerk
CONTRACTOR:
Core Construction, an Arizona Corporation
By:.
3/9/26 16:39 MST
Name: Todd Steffen
Title: President
RECOMMENDED:
3/10/26 07:17 MST
Robert Franklin
Contract Administrator
Jenn Myers, MPA, CPPO, NIGP-CPP, CPPB
Purchasing Director
3/10/26 07:47 MST
3/10/26 09:39 MST
George Woods
Safety & Risk Management Director
APPROVED AS TO FORM:
*4^-^
3/10/26 09:48 MST
Luis E. Santaella, Interim City Attorney
By: Lydia Tulin, /^sistant City Attorney
(Rewsed 07/09/25)
Page 66 of 66
Contract No. 2026-007-COS
Solicitation No. RFSCl-022025-236
EXHIBIT A
STATUTORY PERFORMANCE BOND
PURSUANT TO TITLE 34, CHAPTER 6.
OF THE ARIZONA REVISED STATUTES
(Penalty of this bond must be 100% of the Contract Amount)
KNOW ALL MEN BY THESE PRESENTS:
That, __________________________ __ (hereinafter called the Principal) as Principal, and
__________________________ , a corporation organized and existing under the laws of the State of
_________________with Its principal office in the City of______________________ , (hereinafter called
the Surety), as Surety, are held and firmly bound unto the City of Scottsdale, County of Maricopa, State of
Arizona in the amount of _________________________ .Dollars f$
). for the payment
whereof, the said Principal and Surety bind themselves, and their heirs, adrininistrators, executors
successors and assigns, jointly and severally, firinly by these presents.
WHEREAS, the Principal has entered into a certain written contract with the City of Scottsdale, dated the
_____day of______________2026, for Bid No. (bidnumber). Project No. (project number), (project
name), which contract is hereby referred to and made a part hereof as fully and to the same extent as if
copied at length herein.
NOW THEREFORE, the condition of this obligation is such, that if the Principal faithfully performs and fulfills
all of the undertakings, covenants, terms, conditions and Contracts of the contract during the original term
of the contract and any extension of the contract, with or without notice to the surety, and during the life of
any guaranty required under the contract, and also perforrns and fulfills all of the undertakings, covenants,
terms, conditions and Contracts of all duly authorized modifications of the contract that may hereafter be
made, notice of which modifications to the surety being hereby waived, the above obligation is void.
Otherwise it remains in full force and effect.
PROVIDED HOWEVER, that this Bond is executed pursuant to the provisions of Title 34, Chapter 6,
Arizona Revised Statutes, and all liabilities on this Bond will be determined in accordance with the
provisions of Title 34, Chapter 6, Arizona Revised Statutes, to the extent as if it were copied at length in
this Contact. The prevailing party in a suit on this bond will recover as part of the judgment reasonable
attorney fees that may be fixed by a Judge of the Court. The performance under this bond is limited to the
construction to be performed under the contract and does not include any design services, preconstruction
services, financial services, maintenance services, operations services or any other related services
included in the contract.
WITNESS our hands the
day of.
_, 2026.
PRINCIPAL
BY:
SURETY
(SEAL)
AGENCY OF RECORD
AGENCY ADDRESS
(Revised 03/17/25)
Page 1 of1
DhiMr^U DMr>Hlo TD- Unne^/1PnMnn
Contract No. 2026-007-COS
Solicitation No. RFSQ-022025-236
EXHIBIT B
STATUTORY PAYMENT BOND
PURSUANT TO TITLE 34. CHAPTER 6.
OF THE ARIZONA REVISED STATUTES
(Penalty of this bond must be 100% of the Contract Amount)
KNOW ALL MEN BY THESE PRESENTS:
That,.
State of
^hereinafter called the Principal), as Principal, and
. a corporation organized and existing under the laws ofthe
, with its principal OfTice in the City of
(hereinafter called the Surety), as Surety, are held and firmly bound unto the City of Scottsdale,
County of Maricopa, State of Arizona, in the amiount of__________________________ ^Dollars
($______________ _), for the payment whereof, the said Principal and Surety bind themselves,
and their heirs, administrators, executors, successors and assigns, jointly and severally, firmly by
these presents.
WHEREAS, the Principal has entered into a certain written contract with the City of Scottsdale
dated the_____ ^day of ______ _______ , 2026, for Bid No. (bid number). Project No.
(project number), (project narne), which contract is hereby referred to and made a part hereof as
^lly and to the same extent as if copied at length herein.
NOW, THEREFORE, the condition of this obligation is such that if the Principal promptly pays all
monies due to all persons supplying labor or materials to the Principal or the Principal's
subcontractors in the prosecution of the work provided for In the contract, this obligation is void.
Othenvise it remains in full force and effect.
PROVIDED, HOWEVER, that this bond is executed pursuant to the provisions of Title 34, Chapter
6, of the Arizona Revised Statutes, and all liabilities on this bond will be determined in accordance
with the provisions, conditions and limitations of Title 34, Chapter 6, Arizona Revised Statutes, to
the same extent as if they were copied at length |n this Contract.
The prevailing party in a suit on this bond will recover as a part of the judgment reasonable
attorney fees that may be fixed by a Judge of the Court.
WITNESS our hands the_
_day of_
_, 2026.
PRINCIPAL
BY:
SURETY
(SEAL)
AGENCY OF RECORD
AGENCY ADDRESS
(Revised 03/17/25)
Page 1 of 1
Ji..
I
Jr
^ scp7
Contract No. 2026-008-COS
Solicitation #RFSQ-022025-236
’A
m
+
CITY OF SCOTTSDALE
JOB ORDER CONTRACT
NO. 2026-008-COS
(Revised 03/17/25)
Blueink Bundle ID: 8KiBug4DzT
ATTACHMENT 4
Contract No. 2026-008-COS
Solicitation #RFSQ-022025-236
TABLE OF CONTENTS
RECITALS......................................................... .1
ARTICLE 1 - CONTRACTOR’S SERVICES AND RESPONSIBILITIES....................................1
ARTICLE 2 - CITY’S SERVICES AND RESPONSIBILITIES................................................... 18
ARTICLE 3 - CONTRACT TIME AND JOB ORDER TIME.......................... ........................... 21
ARTICLE 4- CONTRACT PRICE AND JOB ORDER PRICE.................. ........................... .....23
ARTICLE 5 - CHANGES TO THE CONTRACT PRICE AND TIME..............
....... ..... ....25
ARTICLE 6 - PROCEDURE FOR PAYMENT..........................................................................30
ARTICLE 7 - CLAIMS AND DISPUTES.................... .................. ............ ......34
ARTICLE 8 • SUSPENSION, TERMINATION AND CANCELLATION.................................... 36
ARTICLE 9 - INSURANCE AND BONDS ................................... ....... ....................... 39
ARTICLE 10 - INDEMNIFICATION...................... ...46
ARTICLE 11 - GENERAL PROVISIONS.................... 50
ARTICLE 12 - DEFINITIONS....................... ........................................................ ............... 61
EXHIBIT A - STATUTORY PERFORMANCE BOND
EXHIBIT B - STATUTORY PAYMENT BOND
(Revised 03/17/25)
Blueink Bundle ID; 8KiBug4DzT
Contract No. 2026-008-COS
Solicitation No. RFSQ-022025-236
CITYOFSeOTTSDALE
CONTRACT NO. 2026-008-COS
THIS CONTiV^CT. fContracT) is entered into this
day of
2026.
(“Effective Date”) between the City of Scottsdaie, an Arizona municipai corporation (“City”) and
GCON Inc., an Arizona Corporation, ("Contractor").
RECITALS
A.
The Mayor of the City of Scottsdaie, Arizona, is authorized and empowered by the
provisions of the City Charter to execute contracts for constmction and reiated services.
B.
The City intends to contract for construction and related services with Contractor for one
or more individual Job Orders.
C.
Contractor has represented to the City the ability to provide or procure the required
construction and related services and, based on this representation, the City engages
Contractor for these services.
FOR AND IN CONSIDERATION of the mutual covenants and considerations contained in this
Contract, It is agreed by the City and Contractor as follows:
ARTICLE 1 - CONTRACTOR’S SERVICES AND RESPONSIBIUTIES
1.1. GENERAL SERVICES
A.
Contractor will furnish any and all labor, rnaterials^ equipment, transportation,
utilities, services and facilities specified in the individual Job Order for which it is
issued a Job Order Notice-to-Proceed for Work in accordance with this Contract.
ITie City may determine it is in its best interest to furnish materials and equipment
for an individual Job Order in accordance with the Job Order.
B.
The Work will be performed in a good, workmanlike and substantial manner and
to the satisfaction of the City Engineer and under the monitoring of the City
Engineer, or designee, with the care and skill of a qualified contractor in Scottsdale,
Arizona.
1. Minor design services may be required for some Job Orders. For those Job
Orders that may require minor design services, Contractor will seek the
services of an Arizona registered architect or engineering professional to
prepare plans for permitting. The procurement of minor design services will
be in accordance with the City’s procurement procedures and code. If the
services of a design professional are used, the design professional must
maintain at least $1,000,000 Professional Liability Coverage.
2. Ail documents prepared by Contractor are subject to review by the City.
Review by the City is for the benefit of the City only, is not intended to be
for the benefit of any other person and does not relieve Cbntractor from the
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professional liability associated with the documents they have prepared.
3. Coritractor’s Representative shall be reasonably available to the City and
will have the necessary expertise and experience required to supervise the
Contract Services. A Contractor’s Representative will be assigned for each
Job Order. Contractor’s Representative will communicate regularly with the
City and will be vested with the authority to act on behalf of Contractor.
C. The City is a member of $AVE cooperative purchasing group. $AVE includes the
State of Arizona. Maricopa County, many Phoenix metropolitan area
municipalities, and many K-12 unified school districts. Under $AVE Cooperate
Purchasing Agreement, and with the concurrence of successful Respondents
under this solicitation, a member of $AVE may access a contract resulting from
this solicitation issued by the City. By signing the JOC Contract, Contractor agrees
to allow other $AVE members the ability to purchase their needs and “use” this
contract for JOC requirements.
1.2. GOVERNMENT APPROVALS AND PERMITS
A.
Unless othenwise provided. Contractor will obtain or assist the City in obtaining all
necessary permits, approvals and licenses required for the prosecution of the Work
from any government or quasi-govemment entity having jurisdiction over the
Project. Contractor is responsible for obtaining payment for the necessary
environmental permits or file the necessary environmental notices.
B.
Copies of these permits and notices must be provided to the City's Representative
before starting the permitted activity. This provision does not constitute an
assumption by the City of an obligation of any kind for violation of the permit or
notice requirements.
C.
The City is responsible for the City of Scottsdale review and permit(s) fees for
building and demolition pemnits. The City will pay City review fees for grading and
drainage, water, sewer, storm water management, and landscaping. The City will
also pay for City utility design fees for permanent services.
D.
Contractor is responsible for all other permits and review fees not specifically listed
in Article 1.2(C) above.
E.
Contractor is responsible for the cost of construction-related water meter(s), water
and sewer taps, fire lines and taps, and all water bills on the project meters until
Substantial Completion of the Project Arrangements for construction water will be
Contractor’s responsibility. Construction water does not include “test water”
required to complete new water line pressure tests.
F.
The M.A.G. Standard Specification 107.12 is modified to read as follows;
“Contractor, at its own expense, is responsible for the acquisition of any necessary
temporary easements for construction purposes, storage, maintenance, and
refuse haul-off as indicated upon the plans, which are required in addition to
existing easements or rights-of-way secured by the City.”
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1.3. PRE-CONSTRUCTION CONFERENCE
A.
After issuance of a Job Order and before the commencement of any Work on any
individuaUob Order, a pre-construction conference may be scheduled.
B.
The purpose of this conference is to establish a working relationship between
Contractor, design firms, utility firms, and various City departments. The agenda
will include critical elements of the wotic schedule, submittal schedule, level of
Record Drawings required, cost breakdown of major lump sum items, payment
application and processing, coordination with the utility firms involved, and
emergency telephone numbers for all representatives involved in the course of
constaiction.
C.
At a minimum, attendees will include Contractor Representative, who is authorized
to execute arid sign documents on behalf of the firm, the job superintendent, and
Contractor’s safety officer.
D.
The Job Order Notice-to-Proceed date will be established.
E.
Contractor will provide a Baseline Project Schedule indicating duration, manpower
and equipment resources required to complete all major work activities. The City
and Design Team will review and comment on the Baseline Project Schedule.
Contractor will revise the Baseline Project Schedule to the satisfaction of the City’s
Representative. No work will begin until the City accepts the Baseline Project
Schedule.
F.
Contractor will submit a Schedule of Values based on the work and bids accepted
from selected Subcontractors. These values wilj reflect the actual labor time,
materials, profit and overhead for the Work or in accordance with Contractor’s price
book.
1.4. CONTROL OF THE WORK
Contractor will properly guard and protect all partially finished work and will be
responsible for the Work until the entire Job Order is completed and accepted by the
City. Any payment for completed portions of the Work will not release Contractor from
this responsibility; however, he will turn over the entire Work in full compliance with die
specifications or Job Order before final settlement is made. In case of suspension of the
Work for any cause whatever. Contractor is responsible for the Project and will take all
precautions necessary to prevent damage to the Project and will erect any necessary
temporary structures, signs, or other facilities at no cost to the City.
A.
After ail Work under the Job Order is completed. Contractor will remove all loose
concrete, lumber, wire, reinforcing, debris and other materials not incorporated in
the Work from the site of the Project.
B.
Unless the Job Order states that it is the responsibility of the City or a separate
contractor. Contractor will provide through itself or Subcontractors the necessary
supervision, labor, inspection, testing, start-up, material, equipment, machinery,
temporary utilities, other temporary facilities, temporary fencing, roll-offs, and dust
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control to permit Contractor to complete the Work consistent with the Job Order.
C.
Contrat^or wili perform all construction activities efficiently and with the requisite
expertise, skiil and competence to satisfy the requirements of the Job Order.
Contractor wili at ali times exercise complete and exclusive control over the means,
methods, sequences and techniques of construction.
D.
Survey stakes and marks required for the completion of the construction shown on
the plans and described in the specifications will be furnished by Contractor.
E.
Contractor, its designee or Contractor’s Superintendent will be present at the Work
at all times that construction activities are taking place.
1. All elements of the Work, such as concrete work, pipe work, etc., will be
under the direct supervision of a foreman or his/her designated
representative on the Site who will have the authority to take actions
required to properly carry out that particular element of the Work.
2. In the event of noncompliance with Article 5.1, the City may require
Contractor to stop or suspend the Work in whole or in part.
F.
Where the Job Order requires that a particular product be installed or applied by an
applicator approved by the manufecturer, it is Contractor’s responsibility to ensure
the Subcontractor employed for that portion of the Work is pre-approved by the
manufacturer.
G.
Before ordering materials for or doing the Work, Contractor and each
Subcontractor will verify measurements at the Site and will be responsible for the
correctness of these measurements. No extra charge or compensation will be
allowed because of differences between actual dimensions and the dimensions
indicated on the drawings; differences, which may be found, will be submitted to
the City for resolution before proceeding with the Work.
H.
Contrador will take field measurements and verify field conditions and carefully
compare these field measurements, conditions and other information known to
Contractor with the Job Order before starting activities. Errors, inconsistencies or
omissions discovered will be immediately reported to the City.
I.
Contractor will establish and maintain all building and construction grades, lines,
levels, and benchmarks, and will be responsible for the accuracy and protection of
these items. This portion of the Work will be performed or supervised by an Arizona
licensed civil engineer or surveyor.
J.
Any person employed by Contractor or any Subcontractor who, in the opinion of the
City, does not perform his/her portion of the Work in a proper, skillful and safe
manner or is intemperate or disorderly will, at the written request of the City, be
removed from the Work by Contractor or Subcontractor employing this person, and
will not be employed again in any portion of the Work without the written approval of
the City. Contractor or Subcontractor will hold the City harmless from damages or
claims, which may occur in the enforcement of this Article.
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K.
Contractor assumes responsibility for the proper performance of the Work of
Subcontractors and any acts and omissions in connection with this performance.
Nothing in the Contract Documents is intended or considered to create any legal
or contractual relationship between the City and any Subcontractor or Sub-
Subcontractor, including but not limited to any third-party beneficiary rights.
L.
Contractor will coordinate the activities of all Subcontractors. If the City performs
other work on the Project or at the Site with separate contractors under the City’s
control, Contractor agrees to reasonably cooperate and coordinate its activities
with those of the separate contractors so that the Project can be completed in an
orderly and coordinated manner without unreasonable disruption.
M.
On a daily basis. Contractor will prepare a Contractor’s Daily Report. The City’s
CPM Project Inspector or the Public Works Project Coordinator will provide a
sample report format to Contactor. The report will detail the activities that took
place during the course of the day, all equipment utilized and the number of hours
operated, and all personnel on the Site including Subcontractors. Unless othenwise
arranged, the Daily Reports will be submitted on a daily basis to the City’s CPM
Inspector or the Public Work’s Project Coordinator. The Daily Reports will also be
made available to the City’s Representative upon request. Failure to provide Daily
Reports as arranged or requested above will result in the retention of monthly
progress payments until the Reports are brought up to date.
N.
In the event of noncompliance with this Article 1.4, the City may require Contractor
to stop or suspend the construction in whole or in part. Any suspension due to
Contractor’s noncompliance will not be considered a basis for an increase in the
Job Order Price or extension of the Job Order Time.
1.5. CONTROL OF THE WORK SITE
A.
Throughout all phases of construction, including suspension of the Work,
Contractor will keep the Site reasonably free from debris, trash and construction
wastes to permit Contractor to perform its construction services efficiently, safely
and without interfering with the use of adjacent land areas. Upon Substantial
Completion of the Work, or a portion of the Work, Contractor will remove all debris,
trash, construction waste, materials, equipment, machinery and tools arising from
the Work or applicable portions of it to permit the City to occupy the Project or a
portion of the Project for its intended use.
B.
Dust Control. Contractor will take whatever steps, procedures or means required
to prevent abnormal dust conditions due to his construction operations in
connection with this Contract. The dust control measures will be maintained at all
times during construction of the Project(s) to the satisfaction of the City in
accordance with the requirements of the Maricopa County Health Department Air
Pollution Control Regulations and City of Scottsdale Supplement to M.A.G.
Standard Specifications together with applicable provisions of Federal and State
Law.
C.
Dust Control Coordinator. At any City construction site of 5 acres or more of
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D.
E.
Contract No. 2026-008-COS
Solicitation No. RFSQ-022025-236
disturbed surface area, subject to a permit issued by a Control Officer requiring
control of PM-10 emissions from dust generating operations, Contractor must have
at ail times at the Site, at least one (1) Dust Control Coordinator trained in
accordance with the requirements of A.R.S. §49-474.05 during primary dust
generating operations that is related to the purposes for which the Dust Control
Permit was issued. The Dust Control Coordinator must have full authority to
ensure that dust control measures are implemented at the Site, including authority
to conduct inspections, deploy dust suppression resources, and modify or
shutdown activities as needed to control dust. The Dust Control Coordinator must
be responsible for managing dust prevention and dust control on the Site, including
the use of leaf blowers and street sweeping equipment. The Dust Control
Coordinator must have a valid Dust Training Certification Identification Card readily
accessible on the Site while acting as the Dust Control Coordinator.
The requirements described in the above Article do not apply if all three (3) of the
following circumstances are present:
1. The area of disturbed surface area is less than five (5) acres.
2. The previously disturbed areas are stabilized in accordance with the
requirements of any applicable County rules.
3. Contractor with the Dust Control Permit provides notice of the acreage
stabilized to the County Control Officer.
On sites with greater than one (1) acre of disturbed surface area. Contractor
holding a Dust Control permit issued by a County Control Officer, who is required
to obtain a single permit for multiple noncontiguous sites that is required to control
PM-10 emissions from dust generating operations must have at least one (1)
individual who is designated as a Dust Control Coordinator. The Dust Control
Coordinator must have a valid Dust Training Certification Identification Card readily
accessible on the Site while acting as the Dust Control Coordinator. The Dust
Control Coordinator must be present on Site at all times during primary dust
generating activities that are related to the purposes for which the permit was
issued.
A Subcontractor who is engaged in dust generating operations at a Site that is
subject to a Dust Control Permit issued by a County Control Officer and that
requires the control of PM-10 emissions from dust generating operations must
register with the County Control Officer. The Subcontractor must have its
registration number readily accessible on the Site while conducting any dust
generating operations.
Storage on Site. Only materials and equipment, which are to be used directly in
the Work, will be brought to and stored on the Site by Contractor. When equipment
is no longer required for the Work, it will be removed promptly from the Site.
Protection of construction materials and equipment stored at the Site from weather,
theft, damage and all other adversity is solely the responsibility of Contractor.
Waste Products. Contractor is responsible for the cost to dispose of all waste
products including excess earth material which will not be incorporated into the
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Work under this Contract. The waste product referred to will become the property
of Contractor. Contractor will provide for the legal disposal at an appropriate off
site location for all waste products, debris, etc., and will make necessary
arrangements for its disposal. Any disposal/dumping of waste products or unused
materials will conform to applicable Federal, State and Local Regulations.
F.
Contractor will supervise and direct the Work. Contractor will be solely responsible
for the means, methods, techniques, sequences and procedures of construction.
Contractor will employ and maintain on the Site a qualified supervisor or
superintendent who will have been designated in writing by Contractor as
Contractor’s Representative. The Contractor’s Representative will have full
authority to act on behalf of Contractor and all communications given to the
Representative will be as binding as if given to Contractor. The Representative will
be present on the Site at all times as required to perform adequate supervision and
coordination of the Work. Where appropriate all Provisions of M.A.G., Section
105.5, will be applicable.
G.
Abnormal Weather. In the event of abnormal weather conditions, such as
windstorms, rainstorms, etc.. Contractor will immediately inspect the Work and Site
and take all necessary actions to insure public access and safety are maintained.
H.
Damage to Property at the Site. Contractor will be responsible for any and all
damage or loss to property at the Site, except to the extent caused by the acts or
omissions of the City or its representatives, employees or agents and not covered
by insurance. The costs and expenses incurred by Contractor under this Article
will be paid as a Cost of the Work to the extent that these costs and expenses are
in excess of or are not covered by required insurance, and to the extent of any
deductibles, but they will not increase the Job Order Price.
I.
Damage to Property of Others. Contractor will avoid damage, as a result of
Contractor’s operations, to existing sidewalks, curbs, streets, alleys, pavements,
utilities, adjacent property, the work of separate contractors and the property of the
City. Contractor will repair any damage caused by the operations of Contractor,
and these costs will be paid as a Cost of the Work to the extent that the costs and
expenses are in excess of or are not covered by required insurance, and to the
extent of any deductible, but they will not increase the Job Order Price.
J.
Failure of Contractor to Repair Damage. Within ten (10) days written notice to
Contractor by the City, if Contractor fails to commence the repair of damage to
property as provided in Articles 1.5(H) and 1.5(1), and diligently pursue the repair,
then the City may elect to repair the damages at its own expense and to deduct
from payments due or to become due to Contractor, amounts paid or incurred by
the City in correcting the damage (provided Contractor has not commenced such
repair during the 10 day notice period).
1.6. SHOP DRAWINGS, PRODUCT DATA AND SAMPLES
A. Shop Drawings, Product Data, Samples and similar submittals are not Contract
Documents. The purpose of their submittal is to demonstrate for those portions of
the Work for which submittals are required the way Contractor proposes to
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conform to the information given and the design concept expressed in the Contract
Documents. Contractor will review, approve and verify that all submittals meet the
intent of the Contract Documents.
B.
Three (3) copies of each Shop Drawing, Product Data, Sample, and similar
submittals required by the Contract Documents will be delivered to the City in
compliance with the approved schedule so as to cause no delay in the Work or in
the activities of the City or of separate contractors. Submittals made by Contractor,
which are not required by the Contract Documents, may be returned without action.
C.
Contractor will perform no portion of the Work requiring submittal and review of
Shop Drawiiigs, Product Data, Samples, or similar submittals until the respective
submittal has been approved by the City. All Work will be in compliance with
approved submittals. Contractor will not be relieved of responsibility for any errors
or omissions in Shop Drawings, Product Data, Sahriples, of similar submittals by
the City's approval. Deviation from the original specifications mil be specifically
noted on the submittal to the City and the City will be allowed seven (7) days to
approve or reject any deviations.
D.
By approving, verifying and submitting Shop Drawings, Product Data, Samples
and similar submittals. Contractor represents that Contractor has determined and
verified materials, field measurements and field construction criteria, or will do so,
and has checked and coordinated the information contained within the submittals
with the requirements of the Work and of the Job Order.
E.
Contractor will not be relieved of responsibility for deviations from requirements of
the Job Order by the City’s approval of Shop Drawings, Product Data, Samples or
similar submittals unless Contractor has specifically informed the City in writing of
the deviation at the time of submittal and the City has given written approval to the
specific deviation. Contractor will not be relieved of responsibility for errors or
omissions in Shop Drawings, Product Data, Samples, or similar submittals by toe
City’s approval.
F.
Contractor will direct specific attention, in writing or on resubmitted Shop Drawings,
Product Data, Samples, or similar submittals, to revisions other than those
requested by the City on previous submittals.
G.
Informational submittals upon which toe City is not expected to take responsive
action may be so identified in toe Contract Documents.
H.
When professional certification of performance criteria of materials, systems or
equipment is required by the Job Order, toe City will be entitled to rely upon the
accuracy and completeness of the calculations and certifications.
1.7. QUALITY CONTROL, TESTING AND INSPECTION
A Inspection. The Cit/s Inspectors may be stationed on the Site to report to toe
City’s Representative, or designee, as to the progress of the Work. The City’s
Representative, or designee, may also report as to toe manner in which toe Work
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is being performed and report whenever it appears that material furnished or Work
performed by Contractor fails to fulfill the requirements of the specifications, this
Contract or the Job Order. The Inspector may direct the attention of Contractor to
any failure or infringement but this inspection will not relieve Contractor from any
obligation to furnish acceptable materials or to provide completed construction that
complies with the Contract or the Job Order in every way. The Inspector is; for the
purpose of assisting the City’s Representative and should not be confused with an
inspector with a City regulatory agency orvvith an inspector from a laboratory under
Article 1.8.
B.
In case of any dispute arising between the Inspector and Contractor as to material
furnished or the manner of performing the Work, the Inspector will have the
authority to reject materials or suspend the Work until the question and issue can
be referred to and decided by the City. Inspectors are not authorized to revoke,
alter, enlarge, relax, or release any requirements of the specifications. Inspectors
will in no case act as foremen or perform other duties for Contractor or interfere
with the management of the Work by Contractor.
C.
Inspection or supervision by the City’s Representative, or designee, will not be
considered as direct control of an individual worker or the Work. The direct control
will be solely the responsibility of Contractor.
D.
The furnishing of these services for the City will not make the City responsible for
or give the City control over construction means, methods, techniques, sequenced
procedures or for safety precautions or programs or responsibility for Contractor’s
failure to perform the Work in compliance with the Contract Documents.
1.8. MATERIALS TESTING
All materials used in the Work will be new and unused, unless othenArise noted, and will
meet all quality requirements of the Job Order.
A.
All construction materials to be used on the Work or incorporated into the Work,
equipment, plant, tools, appliances or methods to be used in the Work may be
subject to the inspection and approval or rejection of the City. Any materials
rejected by the City will be removed immediately and replaced in a manner
acceptable to the City without increasing the Job Oi^er Price.
B.
The procedures and methods used to sample and test material will be determined
by the City. Unless otherwise specified, samples and tests will be made in
compliance with the following: The City of Scottsdale Minimum Sampling
Frequency Guide, the City of Scottsdale Material Testing Manual and the standard
methods of AASHTO or ASTM, DSPM and MAG supplements.
C.
The City will select a pre-quaiified City or Independent Testing Laboratory and will
pay for initial City Acceptance Testing.
1. When the first and subsequent tests indicate noncompliance with the Job
Order, the cost associated with that noncompliance will be incurred by
Contractor without increasing the Job Order Price.
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2. When the first and subsequent tests indicate noncompiiance with the Job
Order, all retesting will be performed by the same testing agency. The cost
associated with the noncompliance will be incurred by Contractor without
increasing the Job Order Price.
3. Contractor will cooperate with the selected testing laboratory and all others
responsible for the testing and Inspecting of the Work and will provide them
access to the Work at all times.
D.
At the option of the City, materials may be approved at the source of supply before
delivery is started.
E.
Code compliance testing and Inspections required by codes or ordinances, or by
a plan approval authority, and vvhich are made by a legally constituted authority,
will be incurred by Contractor without increasing the Job Order Price, unless
otherwise provided in the Job Order.
F.
Contractor’s convenience and quality control testing and inspections will be the
sole responsibility of Contractor and incurred by Contractor without increasing the
Job Order Price..
G.
All soils and materials testing will be performed and paid for by the City. The City
will order tests and distribute test results for all construction areas. The City yviU be
responsible for ordering testing and will distribute test results within 24 hours of
receipt.
1.9. PROJECT RECORD DOCUMENT/AS BUILTS
A. During the construction period. Contractor will maintain at the Site a set of Blueline
or Blackline Prints ofthe Constructioh Document drawings and Shop Drawings for
Project Record Document purposes.
1. Contractor will mark these drawings to indicate the actual installation where
the installation varies appreciably from the original Construction
Documents. Contractor will give particular attention to information on
concealed elements, which would be difficult to identity or measure and
record later. Items required to be marked include but are not limited to:
Dimensional changes to the drawings.
Revisions to details shown on drawings.
Depths of foundations below first floor.
Locations and depths of underground utilities.
Revisions to routing of piping and conduits.
Revisions to electrical circuitry.
Actual equipment locations.
Duct size and routing.
Locations of concealed internal utilities.
Changes made by Adjustment.
Details not on original Contract Drawings.
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B.
2. Contractor will mark completely and accurately Project Record Documents,
prints of Construction Documents or Shop Drawings; whichever is the most
capable of indicating the actuai physical condition. Where Shop Drawings
are marked, show cross-reference on the Construction Documents
iocation.
3. Contractor will mark sets of Project Record Drawings Prints with red
erasable colored pencil.
4. Contractor will note Request for Information (RFI) Numbers, American
Standards institute (ASI) Numbers and Adjustment Numbers, etc., as
required to identify the source of the change to the Construction
Documents.
5. Contractor will at the time of Substantial Completion, submit Project Record
Drawing Prints and Shop Drawings to the City or its representative for
review and comment.
Immediately upon receipt of the reviewed Project Record Drawings from the City,
Contractor will correct any deficiencies or omissions to the drawings and prepare
the following for submission to the City:
1. A complete set of PDF electronic files of all Project Record Drawing Print
prepared in Microstation format compatible with City of Scottsdale CADD
requirements. If a Design Professional is contracted with, the Design
Professional will provide files of the original Construction Documents to
Contractor for use in preparing these final Project Record Documents, or
Contractor may contract with the Design Professional to revise and update
the electronic drawing files. Each drawing will be clearly marked with “As-
Built Document” and shall be certified by an Arizona Registered Land
Surveyor.
2. A complete set of As-Built reproducible mylars from the final Microstation
drawings and an electronic pdf file on CD are required.
3. The original copy of the Project Record Drawings with redline mark-ups.
1.10. PROJECT SAFETY
A. The Occupational Safety and Health Act (OSHA) and the City of Scottsdale loss
control procedures are the minimum standard for safety and environmental
protection and must be fully complied with at all times. All Work will be performed
in compliance with all applicable federal, state and local laws, ordinances, statutes,
rules and regulations including ADOSH policies and procedures. Contractor may
be required to attend a City safety briefing session at the pre-construction meeting.
The session will be attended by the Contract Administrator, the designated Risk
Management staff, and a Contractor’s Representative. Contractors that violate the
aforementioned rules and regulations may be subject to Job shutdown and or
removal from City facilities.
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B.
The Risk Management Division makes available a packet which contains the City’s
OSHA compliance guidelines, emergency evacuation, the City’s safety and health
plan, and other safety information.
C.
Contractor will conduct tailgate safety meetings regularly to ensure that safety on
the job is given priority.
D.
Contractor will contact the City’s Representative and the Risk Management
Division within twenty-four (24) hours of the occurrence of an accident or injury
arising out of Contractor's Work under this Contract.
E.
Contractor employees are encouraged to abate or remedy any unsafe act or
condition, which may arise in the course of Contractor’s Work under this Contract
F.
The City reserves the right to conduct safety audits at the Site and stop unsafe
acts at any time. In addition, the City will be notified within four (4) hours should
any OSHA inspection occur at a Site.
G.
Contractor recognizes the importance of performing the Work in a safe manner so
as to prevent damage, injury or loss to:
1. All individuals at the Site, whether working or visiting;
2. The Work, including materials and equipment incorporated into the Work
or stored on-Site or ofFrSite; and
3. All other property at the Site or adjacent to the Site.
H.
Contractor assumes responsibility for implementing and monitoring ail safety
precautions and programs related to the performance of the Work.
I. Contractor will, before commencing construction, designate a Safety
Representative with the necessary qualifications and experience to supervise the
implementation and monitoring of all safety precautions and programs related to
the Work. Unless othenvise required by the Contract Documents, Contractor’s
Safety Representative will be an individual stationed at the Site who may have
responsibilities on the Project in addition to safety.
J.
K.
Contractor must provide OSHA 300A Summary log information including total
recordable cases, total case rates, and lost workday incident rates for the past two
(2) calendar yearn. The Safety Representative shall make routine daily inspections
of the Site and shall hold weekly safety meetings with Contractor's personnel.
Subcontractors and others as applicable.
Contractor will Immediately report in writing any safety-related injury, loss, damage
or accident arising from the Work to City’s Representative and, to the extent
mandated by Legal Requirements, to all government or quasi-governmental
authorities having jurisdiction over safety-related matters involving the Project or
the Work.
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L.
Contractor’s responsibility for safety under this Article 1.10 is not intended in any
way to relieve Subcontractors and Sub-Subcontractors of their own contractual
and legal obligations and responsibility for
1. Complying with all Legal Requirements, including those related to health
and safety matters; and
2. Taking all necessary measures to. implement and monitor all safety
precautions and programs to guard against injury, losses, damages or
accidents resulting from their performance of the Work.
M.
Contractor and Subcontractors must agree to provide Material Safety Data Sheets
for all substances that are delivered to the City of Scottsdale, that come under the
Occupational Safety and Health Administration Toxic and Hazardous Substances
- Hazard Communication Standard, 29 CFR 1910.1200 Hazard Communication
(reference Occupational Safety and Health Standards. Subpart Z Toxic and
Hazardous Substances - Hazardous Communication Standard).
All Contractors and all Subcontractors using chemicals on City of Scottsdale
property shall use only the safest chemicals, with the least harmful ingredients.
These chemicals shall be approved for use by a City of Scottsdale representative
before bringing them on the property.
Contractor and all Subcontractors shall make every attempt to apply approved
chemicals with highly volatile organic compounds, outside of working hours.
Adequate ventilation will be used at ail times during the application of these
approved chemicals.
In conjunction with the Occupational Safety and Health Standards, Subpart Z Toxic
and Hazardous Substances - Hazard Communication Standard, 29 CFR
1910.1200 Hazard Communication, Contractor and Subcontractors are informed
of the presence of (or possible presence of) chemicals in the area where the Work
requested will be performed. It is the responsibility of Contractor or all selected
Subcontractors to contact the City of Scottsdale for specific information relative to
the type of chemicals present and location of appropriate Material Safety Data
Sheets.
Unless included in the Work, if Contractor encounters onsite material which he
reasonably believes to contain asbestos, polychlorinated biphenyl (PCB), or Other
hazardous substances or materials regulated by Public Health Laws, it will
immediately stop Work and report the condition to the City.
If the material is found to contain asbestos, PCB or other hazardous substances
or materials regulated by Public Health Laws, Contractor will not resume Work in
the affected area until the material has been abated or rendered harmless.
Contractor and the City may agree, in writing, to continue Work in non-affected
areas onsite. An extension of the Contract Time may be granted as provided in
Article 5.
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Contract No. 2026-008-GOS
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1.11. WARRANTY
The provisions of M.A.G., Section 108.8 wili appiy with the foilowing additionai
requirements:
1. Should Contractor fail to begin repairs or corrective work within fourteen
(14) calendar days after receipt of written notice from the City, the City may
perform the necessary work and Contractor agrees to reimburse the City
for the actual cost.
2. The warranty period on any part of the Work repaired or repiaced will be
extended for a period of one (1) year from the date of the repair or
repiacement
3. This warranty wili not apply to damage caused by normal wear and tear or
by acts beyond Contractor’s control.
A.
Contractor’s warranty obligation excludes defects caused by abuse, alterations, or
failure to maintain the Work by persons other than Contractor or anyone for whose
acts Contractor may be liable.
B.
Contractol^s warranty obligation wili be for one (1) year.
C.
Nothing in this warranty is intended to iimit any manufacturer’s warranty which
provides the City with greater wananty rights than those found in this Article 1.11
or the Contract Documents. Contractor will provide the City with all manufacturers’
warranties upon Substantial Completion of each Job Order.
1.12. CORRECTION OF DEFECTIVE WORK
A. Contractor agrees to comect any Work that is found to not be in conformance ywth
the Contract Document, including that part of the Work subject to Article 1.11
above, within a period of one (1) year from the date of Substantial Completion of
the Work or any portion of the Work, or within any longer period to the extent
required by the Contract Documents. All removal/replacement work, as directed
by the City to Contractor, in compliance with this Contract, MAG standards and
City codes will have cost determinations by the City and be issued as a Job Order
Adjustment to the Project. A Progress Payment, or partial or entire use or
occupancy of the Proje^ by the City will not constitute acceptance of Work not in
accordance with the Contract Documents.
During the Work, Contractor shall take meaningful steps to begin correction of any
nonconforming Work as notified by the City. This includes the correction, removal
or replacement of the nonconforming Work and any damage caused to other parts
of the Work affected by the nonconforming Work. If Contractor fails to begin the
necessary steps during the Work, the Cify, in addition to any other remedies
provided under the Contract Documents, may provide Contractor with written
notice that the City will commence correction of any nonconforming Work, at its
discretion, through its employees, agents or other third parties.
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B.
G.
Contract No. 2026-008-COS
Solicitation No. RFSQ-02202S-236
Contractor shall take meaningful steps to begin correction of nonconforming Work
subject to Articie 1.11 above. These measures include but are not limited to timely
correction of the Work. If Contractor fails to initiate necessary measures for this
Work within seven (7) days of receipt of written notice from the City, the City* in
addition to any other remedies provided under the Contract Documents, may
provide Contractor with written notice that the City will begin correction of the
nonconforming Work, at its discretion, through its employees, agents or other third
parties.
If the City does perform this corrective Work, Contractor will be responsible for all
reasonable costs incurred by the City in performing the colrection without
increasing the Job Order Price.
Contractor shall immediately respond to any nohconfbmiing Work that creates an
emergency.
D. The one (1) year period referenced in Articie 1.11 above applies only to
Contractor’s obligation to correct nonconforming Work and is not intended to
constitute a period of limitations for any other rights or remedies the City may have
regarding Contractor’s other obligations under the Contract Documents.
1.13. SUBCONTRACTOR AND MAJOR SUPPLIER SELECTIONS
A.
Contractor shall select major Subcontractors and major Suppliers, subject to first
obtaining the City’s approval. Major Subcontractors may be selected based on
qualifications or a combination of qualifications and price. Subcontractors mgst not
be selected based on price alone. Except as noted below, the selection of major
Subcontractors/Suppliers is the responsibility of Contractor, but the City must
approve in writing the selection of ail Subcontractors. In any case. Contractor is
solely responsible for the performance of the selected Subcontractors/Suppliers.
Contractor shall prepare a Subcontractor/Supplier selection plan and submit the
plan to the City for approval or Contractor may use the City’s plan as described in
Article 1.13(B). This Subcontractor selection pian will identify those Subcontractor
trades anticipated to be selected by qualifications only as provided in Articie
1.13(B) and those Subcontiactor trades anticipated to be selected by quaiifications
and competitive bid as provided in Article 1.13(C). This pian will also identify those
Subcontractors that will not be selected through a formalized qualifications-based
selection process. The Subcontractor selection pian must be consistent with the
selection requirements included in this Contract.
B.
Selection by qualifications only - The City may approve the selection of a
Subcontractor(s) or Supplier(s) based only on their qualifications when Contractor
can demonstrate it is in the best interest of the Project.
1. Contractor will apply the 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
pian wiil be Contractor's own selection plan approved by the City or the
City’s selection plan as provided in this Article 1.13(B).
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Contract No. 2026-008-CdS
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2. Contractor will negotiate costs for services/supplies from the
Subcontractor(s)/Supplier(s) under the approved qualifications only
method.
City Selection Plan:
3. Contractor may elect to comply with the following City procedures in its
selection of Subcontractor(s) or Suppliers(s) based on qualifications only:
a. The Request for Qualifications (RFQ) will contain the best
description of the services or material desired; and
b. A statement that only Unpriced statements of qualifications will be
considered; and
c. 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.
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 Contractor. 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 shall be in writing, state the basis of the determination and
be retained by Contractor. Contractor will notify the bidder of the
determination and the bidder will not be given an opportunity to amend its
statement of qualifications further.
7. Contractor may conduct discussions with any bidder who submits an
acceptable or potentially acceptable statement of qualifications. During
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Contract No. 2026-008-COS
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discussions, Contractor will not disclose any information derived from any
other bidder’s statement of qualifications.
8. Contractor will negotiate costs for services/supplies from the
Subcontractbr(s)/Supplier(s) selected under this method.
C.
Selection by qualifications and competitive bid-Contractor will apply the City’s
Subcontractor selection plan stated above or Contractor’s selection plan, if
previously approved by the City, in Contractor's evaluation of the qualifications of
Subcontractor(s)/Supplier(s) and will provide the City with the selected process to
prequalify prospective Subcontractors/Suppliers. Selection may not be based on
price alone. All Work by 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 1.13(B) above. Contractor may
elect to comply with the following procedures in step 2 of its competitive bid
process.
1. Contractor 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. Contractor 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
Subcohtractors/Suppliers will be allowed.
2. If the City objects to any nominated Subcontractor/Supplier or to any self-
performed Work for good reason, Contractor will nominate a substitute
Subcontractor/Supplier that is acceptable to the City.
3. Contractor will distribute Drawings and Specifications, and when
appropriate, conduct a pre-bid conference with prospective Subcontractors
and Suppliers. Contractor 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 Contractor desires to self-perform certain portions of the Work, it must
request to be one of the approved Subcontractor bidders for those specific
bid packages. Contractor’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 compliance with the Project Schedule or
cost. Contractor may self-perform Work without bidding or re-bidding the
Work. (For horizontal construction, as defined in A.R.S. § 34-101(16),
Contractor must self-perform not less than 45% of the Work as required by
A.R.S.§34-603(I)(3).)
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. Contractor will nominate a substitute Subcontractor or Supplier,
preferably if this option is still available, from those who submitted Subcontractor
bids for the Work affected. Once the substitute Subcontractors and Suppliers are
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consented to by the City, Contractor’s proposed pricefor the Work or portion of the
Work will be correspondingly adjusted to reflect any higher or lower costs from any
substitution. Under no circumstances will the City’s objection or comment on any
Subcontractor or Supplier relieve Contractor of its sole responsibility for control
over the methods, means and processes by which the Work is accomplished. The
City must approve in writing the selected Subcontractor Selection Plan before work
commences on any Job Order.
ARTICLE 2 - CITY’S SERVICES AND RESPONSIBIUTIES
2.1
INFORMATION AND SERVICES
A. the City will furnish Contractor, at no cost to Contractor, the following information
or services for this Project:
1. One copy of data pertinent to the Work. However, Contractor will be
responsible for searching the records and requesting information required
for the Project.
2. All available data and information relative to policies, standards, criteria,
studies, etc.
3. Project funding and budget allocations and any changes affecting the
funding or budget allocations.
4. For purpose of determining the Job Order Price, any Plans and
Specifications.
5. For purpose of Project Record Drawing Prints, a CADD file of the
Construction Documents in Microstation format compatible with City of
Scottsdale CADD requirements.
2.2 CITY’S REPRESENTATIVE
A. The City’s Representative will be responsible for providing City-supplied
information and approvals in a timely manner to pennit Contractor to ftjifill its
obligations under the Contract Documents.
2.3 DESIGN PROFESSIONAL SERVICES
A.
B.
The City may contract separately with one or more Design Professionals to provide
architectural or engineering design of the Project in accordance with the provisions
of A.R.S. §34-603.
The City may contract with the Design Professional to provide some or all of the
following services during the performance of the Work:
1. The Design Professional may provide administration of the Work. The City
and Contractor will endeavor to communicate through the Design
Professional. Communications by and with the Design Professional's
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consultants Wiir be through the Design Professional.
2. The Design Professional may yisit the Site at Intervals appropriate to the
stage of construction to become generally familiar with the progress and
quality of the completed Work and to determine iii general if the Work is
being performed in accordance with the Contract Documents. The Design
Professional will keep the City informed of progress of the Work and will
endeavor to guard the City against defects and deficiencies in the Work.
3. Upon Contractor’s submittals, the Design Professional may review and
approve or take other appropriate action on submittals as Shop Drawings,
Product Data and Samples in accordance with Article 1.6.
4. All drawings produced for projects considered to be performed under
Contractor are the property of the City and are owned in whole by the City
for any and all future use and considerations.
2A CITY'S SEPARATE CONTRACTORS
The City is responsible for all Work performed on the Project dr at the Site by separate
contractors under ^e City’s control. The City will contractually require its separate
contractors to cooperate with and coordinate their activities so as not to interfere with
Contractor in order to enable Contractor to timely complete the Work consistent with the
Conb'act Documents. Contractor agrees to reasonably cooperate and coordinate its
activities with those of the separate contractors so that the Project can be completed in
an orderly and coordinated manner without unreasonable disruption.
2.5 FURNISHING OF SERVICES AND INFORMATION
A.
The City will be responsible for the payment or waiver of the following:
1. City review and permit(s) fees for building, encroachment, and demolition
permits including City, State and County.
2. City review fees for grading and drainage, water, sewer and landscaping.
3. Utility design fees or permanent services fees are paid by the City, but ail
submittals are the responsibility of Contractor.
4. Obtaining Nationwide 404 Permits.
5. City Development Fees.
B.
Unless expressly stated to the contrary in the Contract Documents, the City will
provide, at Its own cost and expense, for Contractor’s information the following:
(Revised 07/09/25)
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1. To the extent available, surveys describing the property, boundaries,
topography and reference points for use during construction, including
existing service arid utility lines;
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2. Temporary and permanent easements, zoning and other requirements and
encumbrances affecting land use, necessary to permit the proper design
and construction of the Project and enable Contractor to perform the Work;
3. A legal description and street or physical address of the Site;
4. To the extent available, as-built record or historical drawings of any existing
structures at the Site;
5. To the extent available, environmental studies, reports and impact
statements describing the environmental conditions, including hazardous
materials, in existence at the Site; and
6. To the extent available, Geotechnical studies describing subsurface
conditions and other sun/eys describing other latent or concealed physical
conditions at the Site.
The City will provide all City standards and guidelines, supplementary
conditions and special provisions that will be included in the plans and
specificatioris for the Project. These may include but are not limited to: disposal
of surplus material, special security provisions, investigation of underground
facilities, traffic controls and regulations, special quality control testing and
termite treatment requirements.
2.6
PROJECT MANAGEMENT SERVICES
A.
The City may contract separately with one or more Technical Consultants to
provide project management assistance for the Project. The Technical
Consultant’s contract as well as contracts with other firms hired by the City will be
furnished to Contractor. Contractor will not have any right, however, to limit or
restrict any Project modifications that are mutually acceptable to the City and
Technical Consultant.
B.
The Technical Consultant services will augment the CHy staffing resources to
effectively manage the objectives of the City and the Project with the goal of
managing the key Project communication, cost and time parameters.
C.
The Technical Consultant may provide pre-programming and design standards.
D.
The City may contract with the Technical Consultarit to provide any or all of the
services or functions of the City’s project manager during the performance of the
constoiclion.
2.7
PERMIT REVIEW AND INSPECTIONS
For clarification, permitting activities are handled by the City of Scottsdale
Developmental Services, Fire and Planning Departments. Obtaining any permits and
submittals are the responsibility of the City.
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2.8 UTIUTY COMPANY COORDINATION
Contractor will be responsible for coordinating utility design work for permanent service
to the Project and will ensure thatihe work takes place in a timely manner and does not
Impact the Project schedule. Any utility design fees for permanent services to a Job
Order will be paid by the City in accordance with Article 2.6.
ARTICLE 3 - CONTRACT TIME AND JOB ORDER TIME
3.1
CONTRACT TIME
A.
The initial term of this Contract will be for two (2).years and will commence on the
Effective Date, with the option to extend for three (3) additional years in one (1)
year increments.
1. The option to extend may be exercised based on Contractor’s successful
performance and the needs of the City.
2. A Contract Modification will be processed for each extension and will
commence on or about the anniversary date of the Contract. Each extension
must be authorized by the Contract Administrator and Purchasing Director and
need not return to the City’s Council for approval.
B.
The Contract will remain in full force and effect during the performance of any Job
Order.
3.2 JOBORDERtiME
A.
Job Orders may be issued at any time during the term of this Contract.
B.
Each individual Job Order will include a Job Order Notice-to-Proceed date,
Duration of the Work as determined in accordance with this Article 3.2 and a
calculated Substantial Completion date.
C.
Contractor agrees that it will commence performance of the Work and achieve the
approved Job Order Time.
D.
Job Order Time may be subject to adjustment in accordance with Article 5.
3.3
SUBSTANTIAL COMPLETION
A.
Substantial Completion of each Job Order is when all construction has been
completed with the exception of final inspection punch list work and further defined
in Article 12. The purpose of granting or acknowledging Substantial Completion is
to stop Job Order time.
B.
Before notifying the City in accordance with Article 3.3(C), Contractor will inspect
the Work and prepare and submit to the City a comprehensive iist of items to be
completed or corrected. Contractor will proceed promptly to complete and correct
Items on the list. Failure to include an item on the list does not alter the
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responsibility of Contractor to complete all Work in accordance with the Contract
Documents.
C.
Contractor will notify the City when it believes a Job Order, or to the extent
permitted in the Contract Documents, a portion of the Job Order, is substantially
complete.
D.
Within five (5) days of the City’s receipt of Contractor’s notice in accordance with
Article 3.3(C). the City and Contractor will jointly inspect the Work to confirm
Substantial Completion.
E.
Once Substantial Completion of the Work is confirmed in accordance with Article
3.3(D), the City will prepare and issue a Certificate of Substantial Completion that
will state:
1. The date of Substantial Completion of the Work or portion of ttie Work;
2. The remaining items of Work that have to be completed within thirty (30)
calendar days before Final Acceptance;
3. Provisions (to the extent not already provided in the Contract Documents)
establishing the City’s and Contractor’s responsibility for the Project’s
security, maintenance, utilities and insurance pending Final Acceptance.
F.
The City, at its option, may use a portion of the Work which has been determined
to be substantially complete provided, however, that;
1. Certificate of Substantial Completion has been issued for the portion of
Work addressing the items in Article 3.3(E)(2).
2. Contractor and the City have obtained the consent of their sureties and,
insurers, and to the extent applicable, the appropriate government
authorities having jurisdiction over the Project, and
3. The City and Contractor agree that the City’s use or occupancy will not
interfere with Contractor’s completion of the remaining Work required under
Article 3.3(E).
3.4 PUNCH LIST PREPARATION
A minimum of seven (7) days before Substantial Completion, Contractor, in conjunction
vinth the City, will prepare a comprehensive list of Punch List items, which the City may
edit and supplement. Contractor will proceed promptly to complete and correct the
Punch List Items. Failure to include an item on the Punch List does not alter the
responsibility of Contractor to complete all Work in accordance with the Contract
Documents. Vyarranties required by the Contract Documents will not commence until the
date of Final Acceptance, unless othenwise provided in the Contract Documents. Seven
(7) days before the City issues its Final Acceptance Letter, Contractor will deliver to the
City all Operation and Maintenance Manuals necessary for the City to assume
responsibility for the operation and maintenance of that portion of the Wori<.
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Contract No. 2026-008-GOS
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3.5
FINAL ACCEPTANCE
Upon receipt of written notice that the Work or identified portions of the Work is ready for
final inspection and acceptance, the City and Contractor will Jointly inspect to verify that
the remaining items of Work have been completed as required under Articie 3.3(E). The
City will issue a Final Acceptance Letter.
3.6
LIQUIDATED DAMAGES
A.
B.
Contractor understands that if Substantial Completion is not attained within the Job
Order Time, as may be adjusted for each Job Order, the City will suffer damages,
based on the anticipated loss caused by the breach and the difficulty in determining
and accurately specifying the damages. Contractor agrees that if Substantial
Completion is not attained within the Job Order Time as adjusted. Contractor will
pay the City the amount prescribed in Article 3.6(B) below as liquidated damages
for each Day that Substantial Completion extends beyond the date determined by
the Job Order Time as adjusted. Liquidated Damages shall be the City’s sole
remedy for lateness and shall be capped at 50% of the Contractor’s Fee.
The following will be the liquidated damages for each Job Order unless a specific
arnount has been determined for each individual Job Order.
L QUIDATED DAMAGES
Original Job Order Amount
From more than
$00
25,001
$25,000
Daily Chari
To and mcludirig Calendar Day or Fixed Date
ges
•Fixe
50,001
50,000
$200
250
100,000
280
100,001
500,001
750,001
500,000
430
750,000
500
1,000,000
570
1,000,001
1,250,001
1,250,000
1,500,000
610
650
ARTICLE 4- CONTRACT PRICE AND JOB ORDER PRICE
4.1 CONTRACT PRICE
The fee for individual projects performed under this contract will be negotiated on a
proJect-by-proJect basis as Job Orders. The amount paid to the Contractor under this
contract for all Job Orders shall not exceed $4,000,000 for the initial two (2) year term
and $2,000,000 for any successive one (1) year contract extension.. The Contractor
agrees at its own cost and expense, to do all the Work as specified in the Contract
Documents and any Work contingent to the Contract and necessary for the construction
of the improvements. The Contractor will completely construct the Work and install the
materials, free and clear of all claims, liens, and charges of any kind, in the manner and
under the conditions specified within the time or times stated in each Job Order.
/ A. In no event will any individual Job Order Price exceed $1,000,000. If the City opts
to extend this Contract in accordance with Article 3.1(A), the Contract Modification
may increase the maximum amount, if necessary, at that time.
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B.
The Job Order Price is subject to Adjustments made in accordance with Article 5.
C.
Unless othenwise provided in the Contract Documents, the Job Order Price is
considered to include ail safes, use, consumer and other taxes throughout the term
of this Contract, whether or not yet effective or merely scheduled to go into effect.
p. Contractor must secure and maintain, during the life of the Contract, State of
Arizona and City of Scottsdale Transaction Privilege (sales) Tax Licenses.
To obtain a State of Arizona Privilege (Sales) Tax License Application, please go
to the following website:
https://azdor.aov/trarisaction-Drivileae-tax/tpt-license/applvirib-tDt-license
To obtain a City of Scottsdale Transaction (Sales) Tax License Application, please
go to the following website:
https://www.scottsdaleaz.gov/taxes/resources
Contractor mUst demonstrate compliance with the E-Verify Prograrii as provided
In Article 11.33 and as required by A.R.S. §41-1080, as amended, before issuance
of any License by the City.
4.2 RESPONSIBILITY FOR PRIVILEGE (SALES) TAXES
A. Contractor is responsible for payment of all applicable State of Arizona and City of
Scottsdale transaction privilege (sales) taxes due on construction income whether
or not these taxes are specifically separated in the bid amount. The taxes are to
be reported on either a progressive billing (accrual) basis or cash receipts basis,
depending on the method chosen at the time application was made for the Privilege
(sales) Tax License.
City Privilege (sales) taix exemptions/deductions may be applicable to certain
projects. Contractor is advised to consider this as it prepares its bid. Please
review, in detail. Sections 415,465, and 110 of the Scottsdale Revised City Code,
Apperidix C to determine if exernptions/ deductions are applicable. For tax
guidance, please reference the City Code arid other tax resources at the following
website:
http://www.scottsdaleaz:aov/taxes/
The State of/bizona has similar exerriptions; please reference A.R.S. Title 42 at
the following website:
httD://www.azlea.state.az.us/ArizonaRevisedStatutes.asp?titie=42
For further questions regarding tax treatment, please contact ttie Arizona
Department of Revenue at 602-255-2060 and the City of Scottsdale Tax & Audit
Section at 480-312-2768.
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ARTICLE 5 - CHANGES TO THE CONTRACT PRICE AND TIME
5.1 DELAYS TO THE WORK
A. Delays may be compensable, concurrent, excusable or non-excusable as defined
in Article 12.
B.
C.
D.
E.
F.
G.
H.
If Contractor is delayed in the performance of the Work due to acts, omissions,
conditions, events, or circumstances beyond its control and due to no fault of its
own or those for whom Contractor is responsible, the Job Order Time for
performance may be reasonably extended by Job Order Adjustment.
Contractor must request a Job Order Adjustment by written notice, including an
estimate of the probable effect of delay on progress of the Work. In the case of a
continuing delay, only one request is necessary.
Written notice will be received within five (5) days of the commencement of the
cause of the delay. If written notice is received more than five (5) days after
commencement of the cause of the delay, the period of delay will be considered to
commence fourteen (14) days before the giving of any notice.
If adverse weather conditions are the basis for a Job Order Adjustment request,
the requests shall be documented by data substantiating that weather conditions
were abnormal for the period of time and could not have been reasonably
anticipated, and that weather conditions had an adverse effect on the scheduled
construction.
Permitting Contractor to proceed to complete any Work, or any part of the Work,
after the date to which the time of completion may have been extended, will in no
way act as a waiver on the part of the City of any of its legal rights.
In the event Contractor incurs expenses related to a delay for which the City is
responsible. Contractor and the City will negotiate to determine the amount of any
damages. This provision is made in accordance with A.R.S. §34-609(E), as
amended, and is effective only if the delay caused by the City is unreasonable
under the circumstances and was not within the contemplation of the parties. 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.
In addition to Contractor’s right to request a time extension for those events stated
in this Article 5.1, Contractor may also be entitled to an appropriate adjustment of
the Job Order Price provided, however, that the Job Order Price will not be
adjusted for those events stated in this Article that are beyond the control of both
Contractor and the City, including the events of war, acts of terrorism, floods, labor
disputes (but not including Contractor’s own work force and those of its
subcontractors), earthquakes, epidemics, excessive inclement weather conditions
not reasonably anticipated.
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5.2
DIFFERING SITE CONDITIONS
5.3
5.2.1. If Contractor encounters a Differing Site Condition(s), Contractor may be entitled
to an adjustment in the Job Order Price or Job Order Time(s) to the extent
Contractor’s cost or time of performance are the direct result of a Differing Site
Condition(s).
5.2.2. Upon encountering a Differing Site Condition, Contractor shall provide prompt
vimtten notice to the City of the condition, which notice will not be later than seven
(7j days after the condition has been encountered. Finai costs must be submitted
within thirty (30) days after notice is received by the City, unless extended by
written agreement of the parties. Contractor must give the City’s Contract
Administrator written notice of and an opportunity to observe such condition
before disturbing or altering the Differing Site conditions. The failure of
Contractor to give written notice and make the Claim as required by this Article and
Article 7.1.5 shall constitute a waiver by Contractor of any rights arising out of or
relating to such Differing Site Conditions.
5.2.3. In order for Contractor to obtain any additional compensation or time extensions
for Differing Site Conditions, Contractor must demonstrate that it encountered a
material difference at the Site, as defined in Article 12, that required it to expend
additional cost or time. Contractor will also establish that it actually and
reasonably relied upon the representations found In the Contract Documents
cqncerning the Site conditions.
APPLICATION FOR EXTENSION OF TIME
5.3.1
If performance by Contractor is delayed for a reason set forth in Article 5,
Contractor may be allowed a reasonable extension of time in conformance with
this Article. Before Contractor’s time extension request may be considered.
Contractor shall notify the City of the condition which allegedly has caused or is
causing the delay, and shall submit a written application to the City identifying:
1.
Liquidated damage assessment rate, as specified in the Contract;
2.
Original Job Order Price;
3.
Original Job Order Time;
4.
Any previous Job Order Adjustments granted (nurnber and duration); and
5.
The extension of time requested.
5.3.2
In addition, the application for extension of time shajl set forth in detail:
1.
The nature of each alleged cause of delay in completing the Work;
1.
The date upon which each such cause of delay began and ended and the
number of dates attributable to each such cause;
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2.
A statement that Contractor waives all claims except for those delineated
in the application, and the particulars of any claims which Contractor does
not agree to waive. For time extensions for Substantial Completion and
final completion payments, the application shall include a detailed
statement of the dollar amounts of each claim Item reserved; and
3.
A statement indicating Contractor’s understanding that the time extension
is granted only for purposes of permitting continuation of Contract
performance and payment for Work performed and that the City retains its
right to conduct an investigation and assess liquidated damages as
appropriate in the future.
5.4
ERRORS, DISCREPANCIES AND OMISSIONS
A.
If Contractor observes errors, discrepancies or omissions in the Contract
Documents, it will promptly notify the City and request clarificatibn. Contractor will
provide a copy of this notice to the City’s Representative.
B.
If Contractor proceeds with the Work affected by the errors, discrepancies or
omissions, vrithout receiving any clarifications, it does so at its own risk. Adjustments
involving these drcumstances made by Contractor before clarification by the Design
Professional will be at Contractor’s risk.
5.5
CITY REQUESTED CHANGE IN WORK
A.
The City reserves the right to make, at any time during the progress of the Work,
any alterations as may be found necessary or desirable.
B.
These alterations and changes will not invalidate this Contract nor release the
surety and Contractor agrees to perform the Work as altered, the same as if it had
been a part of the original Job Order. Contractor will notify the surety of the
changes and will assure that the alterations and changes are adequately covered
by the surety bond.
C.
The City will request a proposal for a change in Work from Contractor, and an
Adjustment to the Job Order Price or Job Order Time will be made based on a
mutual agreed upon cost and time.
5.6
LEGAL REQUIREMENTS
The Job Order Price or Job Order Time will be adjusted to compensate Contractor for
the effects of any changes in the Legal Requirements enacted after the date of the
Contract affecting the performance of the Work.
5.7
JOB ORDER ADJUSTMENTS
A. In accordance with the City of Scottsdale Procurement Code, and related Rules
and Procedures, the City and Contractor will negotiate in good faith and as
expeditiously as possible the appropriate Job Order Adjustment's). Upon reaching
an agreement, the parties will prepare and execute an appropriate Adjustment
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reflecting the terms of their agreement. The change in Work may or may not
inciude an Adjustment in the Job Order Price or Job Order Time.
B.
Aii changes in Work authorized by Job Order Adjustments wiii be performed under
the conditions of the Contract Documents. The decision to make an Adjustment to
the Job Order rests soieiy with the City and any decision to make a Job Order
Adjustment must be promptly complied with by Contractor, subject to the
provisions of Article 5.8.
C.
The execution of a Job Order Adjustment by Contractor shall constitute conclusive
evidence of Contractor’s agreement to the ordered changes in the Work, the Job
Order Price, and the Job Order Time by Contractor. Contractor, by executing the
Job Order Adjustment, waives and forever releases any claim against the City for
any additional time or compensation for matters relating to, arising out of, or
resulting from the Work included within or affected by the executed Job Order
Adjustment of which Contractor knew or should have known.
5.8
UNILATERAL DETERMINATION OF JOB ORDER VALUE
If no mutual agreement occurs between the City and Contractor, the change in Job Order
Price, if any, shall be derived by determining the reasonable actual costs Incurred or
savings achieved, resulting from revisions to the Work. Such reasonable actual costs or
savings shall include a component for direct job site overhead and profit but shall not
include home-office overhead or other indirect costs and components. The calculation
of actual costs shall conform to the markup schedule in Article 5.12 below. Any such
costs or savings shall be documented in the format and with such content and detail as
the City requires. Contractor shall promptly submit such documentation and other
backup as the City may require in evaluating the actual costs incurred.
5.9
ADDITIONAL JOB ORDER COST REQUIREMENTS
Contractor’s or Subcontractor’s submittals shall include the cost of materials, sales tax,
and the cost of all transport. The cost of items listed shall be directly related to the Job
Order Adjustment. Indirect costs not specifically related to the Job Order Adjustment
shall not be considered. Contractor’s or Subcontractor’s Direct Labor Costs shail be
limited to the hourly rate of directly involved workmen, employer contributions toward
Contractor standard benefits^ pensions, unemployment or social security (If any), and
employer costs for paid sick and annual leave. Contractor’s or Subcontractor’s Overhead
shall include license fees, bond premiums, supervision, wages of timekeepers and clerks,
incidentals, home and field office expense, and vehicle expense directly related to the
Project, and all other direct Project expenses not included in Contractor’s material, direct
labor, and equipment costs.
5.9,1 The allowance for overhead and profit shall be limited to the following schedule:
1.
For Contractor, for any work performed by Contractor’s own forces, fifteen
(15%) percent of the Subtotal of Costs to Contractor.
2.
For Contractor, for any work performed by its Subcontractor, six (6%)
percent of the amount due to the Subcontractor.
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3.
For each Subcontractor or Sub-subcontractor involved, for any work
performed by their own forces, fifteen (15%) of their materials and direct
laborcosts.
4.
For each Subcontractor, for work performed by its Sub-Subcontractor(s),
six (6%) percent of the amount due to the Sub-subcontractor.
5.10 LIMITATION OF COMPENSABLE ITEMS
5.10.1 For Job Order Adjustment, the total cost or credit to the City shall be based on
the following schedule;
1. Contractor’s Materials Costs.
2. Contractor's Direct Labor Costs.
3. Contractor’s Equipment Coste (includes owned/rented equipment).
4. Applicable Subcontractor Costs.
5. Subtotal of Costs to Contractor.
6. Contractor’s Overhead and Profit
7. Total Cost or Credit to the City.
5.11 FIELD ORDERS
A.
The City has authority to initiate Field Orders that do not materially and adversely
affect the Work, including the design, quality, performance and workmanship
required by the Contract Documents. Field Orders will be made by written order
and will be binding on the City and Contractor. Contractor will carry out any written
Field Orders promptly.
B.
Field Orders will not involve an adjustment in the Job Order Price or Job Order
Times unless or until it becomes a Job Order Adjustment.
C.
Contractor may make minor changes in the Work, provided, however that
Contractor will promptly inform the City, in writing, of any changes and record the
changes, if appropriate, on the Project Record Documents maintained by
Contractor.
5.12 JOB ORDER PRICE ADJUSTMENTS
A. The increase or decrease in Job Order Price resulting from a change in the Work
will be deterrriined by one or more of the following methods:
1. Unit prices stated in the Contract or as subsequently agreed to between
the parties:
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2. A mutually agreed upon accepted, lump sum, properly itemized and
supported by sufficient substantiating data to permit evaiuation by the City;
and
3. Costs, fees and any other markups.
B.
if an increase or decrease cannot be agreed to as stated in Articie 5.7(A), the cost
of the change of the Work will be determined by the reasonable expense and
savings in the performance of the Work resuiting from the change, including a
reasonable overhead and profit, as may be stated in the Contract Documents.
Contractor will maintain a documented, itemized accounting evidencing the
expenses and savings associated with these changes.
C.
If unit prices are stated in the Contract Documents, or are later agreed to by the
parties, but application of the unit prices will cause substantial inequity to the City
or Contractor because of differences in the character or quantity of the unit items
as originally contemplated, the unit prices will be equitably adjusted.
D.
If the City and Contractor disagree upon whether Contractor is entitled to be paid
for any services required by the City, the amount to be paid, other disagreements
over the Scope of Work, proposed changes to the Work, or the time required to
complete the Work, the City and Contractor will resolve the disagreements in
accordance with Article 7.
1. As part of the negotiation process. Contractor virili furnish the City with a
good faith estimate of the costs to perform the disputed services, or the
additional time required in accordance with the City's interpretations.
2. If the parties are unable to agree and the City expects Contractor to perform
the services in accordance with the City's interpretations. Contractor will
proceed to perform the disputed services, conditioned upon the City issuing
a written order to Contractor:
(a) directing Contractor to proceed; and
(b) specifying the City's interpretation of the services that are to be
performed;
E.
Emergencies. In any emergency affecting the safety of persons or property,
Contractor will act, at its discretion, to prevent threatened damage, injury or loss.
Any change in the Job Order Price or Job Order Time(s) resulting from emergency
work under this Article 5.8(E) will be determined as provided in this Article 5.
ARTICLE 6- PROCEDURE FOR PAYMENT
6.1 JOB ORDER PAYMENT REQUEST
A. At the pre-construction conference prescribed in Article 1.3, Contractor will submit
for the City’s review and approval a Schedule of Values. The Schedule of Values
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will include values for all items comprising the Job Order Price and will serve as
the basis for monthly progress payments made to Contractor throughout the Work.
B.
At least five (5) working days before the date established for a progress payment,
Contractor will meet with the City’s Representative to review the progress of the
Work, as it will be reflected on the Contractor Payment Request.
C.
The Contractor Payment Request will constitute Contractor’s representation that
the Work has been performed consistent with the Job Order including any
Adjustment(s), has progressed to the point indicated in the Contractor Payment
Request, and that title to all Work will pass to City free and clear of all claims, liens,
encumbrances, and security interests upon the incorporation of the Work into the
Project.
6.2
PARTIAL PAYMENTS
A.
Partial progress payment will be made for Job Orders with Job Order Time greater
than 30 Days and may be made if the Job Order Time is less than 30 Days.
B.
The Contractor Payment Request may request payment for equipment and
materials not yet incorporated into the Project If construction progress is in
reasonable conformance with the approved schedule.
C.
For equipment and materials suitably stored at the Site, the equipment and
materials will be protected by suitable insurance and the City Will receive the
equipment and materials free and clear of all liens and encumbrances.
1. For materials arid equipment stored off the Site, the City must approve the
storage. The material and equipment must be stored within Maricopa
County and be accessible for the City’s inspection. Title to the materials
and equipment will include applicable insurance, bonding, storage and
transportation to the Site.
2. All bonds and insurance required for stored materials will be in the City’s
name.
6.3
PAYMENT OF JOB ORDER PRICE
A.
Payments should be provided on the City format for a Pay Application which is
based on the agreed upon Schedule of Values. Payment will be made no later
than fourteen (14) days after the Contractor Payment Request is certified and
approved, but in each case less the total of payments previously made.
B.
The Contractor Payment Request shall be deemed approved and certified for
payment seven (7) days after the date of submission to the City by Contractor
unless before that time the City prepares and issues a specific written finding
setting forth those items in detail in the Contractor Payment Request that are not
approved for payment under the Contract. The finding will indicate the specific
amounts the Cify intends to withhold, the reasons and contractual basis for the
withholding, and the specific measures Contractor must take to rectify the City’s
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concerns. The City may withhold an amount from the progress payment sufficient
to pay the expenses the City reasonably expects to incur in correcting the
deficiency set forth in the written finding. Contractor and the City will attempt to
resolve the City’s concerns; If the parties cannot resolve the concerns. Contractor
may pursue its rights under the Contract Documents, including those under Article
7.
6.4
RETENTION ON JOB ORDER PAYMENTS
In compliance with A.R.S. §34-609, as amended, there is no retention for job-order
contracting construction services contracts.
6.5
FINAL PAYMENT
A.
After receipt of a final Contractor Payment Request, the City will make final
payment as required by this Article 6.5, provided that Contractor has completed all
of the Work in confomiance with the Job Order and Contract Documents and a
Final Acceptance Letter has been issued by the City.
B.
At the time of submission of its final Contractor Payment Request, Contractor will
provide the following information:
1. An affidavit that there are no claims^ obligations or liens outstanding or
unsatisfied for labor, services, material, equipment, taxes or other items
performed, furnished or incurred for or in connection with the Work which
will in any way affect the City’s interests; and
2. A general release executed by Contractor waiving, upon receipt of final
payment by Contractor, all claims, except those claims previously made in
writing to the City and remaining unsettled at the time of final payment.
6.6
PAYMENTS TO SUBCONTRACTORS OR SUPPLIERS
A.
Contractor will pay its Subcontractors or suppliers within seven (7) calendar days
of receipt of each progress payment from the City. Contractor will pay for the
amount of Work performed or materials supplied by each Subcontractor or supplier
as accepted and approved by the City with each progress payment. No Contract
between Contractor and its Subcontractors and suppliers may materially alter the
rights of any Subcontractor or supplier to receive prompt payment as provided in
this Contract.
B.
if Contractor fails to make payments in accordance with these provisions, the City
may take any one or more of the following actions and Contractor agrees that the
City may take these actions:
1. To hold Contractor in default under this Contract;
2. Withhold future payments until proper payment has been made to
Subcontractors or suppliers in accordance with these provisions;
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3. Reject all future offers to perform work for the City for a period not to exceed
one (1) year from the Substantial Completion date of the Job Order at issue;
or
4. Terminate this Contract for cause.
C.
Should the City fail or delay in exercising or enforcing any right, power, privilege,
or remedy under this Article 6.6, the failure or delay will not be considered a waiver,
release, or modification of the requirements of this Article or of any of the terms or
provisions of this Contract.
D.
Contractor wili include these prompt payment provisions in every subcontract,
including procurement of materials and leases of equipment for this Contract.
6.7 RECORD KEEPING AND FINANCE CONTROLS
A.
Records of Contractor’s direct personnel payroll, reimbursable expenses related to
each Job Order and records of accounts between the City and Contractor will be
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 of Scottsdale to Contractor, the City, its authorized
representative, or the appropriate federal or state agencies, reserve the right to
audit Contractor’s records to verify the accuracy and appropriateness of all pricing
data, including data used to negotiate the Contract Documents. The City of
Scottsdale or its authorized representative will have access, during normal working
hours, to all necessary Contractor and Subcontractor facilities, and will be provided
adequate and appropriate workspace, in order to conduct audits in compliance with
the provisions of this Article. The City of Scottsdale will give Contractor or
Subcontractor reasonable advance notice of intended audits.
B.
The City reserves the right to decrease Job Order Price or payments made on this
Contract if, upon audit of Contractor’s records, the audit discloses Contractor has
provided false, misleading, or inaccurate cost and pricing data.
C.
Contractor will include a similar provision in all of its contracts with Subconsultants
and Subcontractors providing services under the Contract Documents to ensure
the City, its authorized representative, or the appropriate federal or state agency,
has access to the Subconsuitants’ and Subcontractors’ records to verify the
accuracy of cost and pricing data.
D.
The City reserves the right to decrease Job Order Price or payments made on this
Contract if the above provision is not included in Subconsultants’ and
Subcontractors’ contracts, and one or more Subconsultants or Subcontractors do
not allow the City to audit their records to verify the accuracy and appropriateness
of pricing data.
E.
If an audit in accordance with this Article, discloses overcharges of any nature by
Contractor to the City in excess of 1% of the total contract billings, the actual cost
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of the City’s audit will be reimbursed to the City by Contractor. Any adjustments
or payments which must be made as a result of any audit or inspection of
Contractor’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.
F. This audit provision includes the right to inspect personnel records as required by
Section 11.33.
ARTICLE 7- CLAIMS AND DISPUTES
7.1 REQUESTS FOR CONTRACT ADJUSTMENTS AND RELIEF
7.1.1
If either Contractor or the City believes that it is entitled to relief against the other
for any event arising out of or related to Contract Services, that party will provide
written notice to the other party of the basis for its claim for relief. The claims shall
set forth in detail ail known facts and circumstances supporting the claim; final
costs associated with any claim upon which notice has been given must be
submitted in writing to the City within thirty (30) days after notice has been received.
7.1.2
This notice will, if possible, be made before incurring any cost or expense and in
accordance with any specific notice requirements contained in applicable sections
of the Contract.
7.1.3
In the absence of any specific notice requirement, written notice will be given within
a reasonable time, not to exceed ten (10) days, after the occurrence giving rise to
the claim for relief or after the claiming party reasonably should have recognized
the event or condition giving rise to the request, whichever is later.
7.1.4 This notice will include sufficient information to advise the other party of the
circumstances giving rise to the claim for relief, the specific contractual adjustment
or relief requested and the basis of the request. ANY NOTICE OF CLAIM NOT
FILED WITH THE CITY WITHIN SUCH TIME AND IN COMPLIANCE WITH THE
PRECEEDING PROVISIONS SHALL BE CONSIDERED TO HAVE BEEN
WAIVED AND SHALL BE DISMISSED.
7.1.5
In the event Contractor seeks to make a claim for an increase in the Job Order
Price, as a condition precedent to any liability of the City therefore, unless
emergency conditions exist, Contractor shall strictly comply with the requirements
of this section and such claim shall be made by Contractor before proceeding to
execute any work for which a claim is made. Failure to comply with this condition
precedent shall constitute a waiver by Contractor of any claims for compensation.
7.1.6
Contractor must continue its performance under this Contract regardless of the
existence of any claims by Contractor.
7.1.7
In a claim by Contractor against the City for compensation in excess of the Job
Order Price, any liability of the City to Contractor shall be strictly limited and
computed in accordance with the Contract Documents and shall in no event
include indirect costs, such as home office overheads or consequential damages
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of Contractor or any estimated costs or damages. In any claim by City against the
Contractor shall be strictly limited to the and computed in accordance with the Contract
Documents and shall in rio event include any consequential damages.
7.2
DISPUTE avoidance AND RESOLUTION
7.2.1
The parties are fully committed to working with each other throughout the Project
and agree to communicate regularly with each other at all times so as to avoid or
minimize disiputes or disagreements. If disputes or disagreements do arise, the
Contractor and the City each commit toTesolving the disputes or disagreements In
an amicable, professional and expeditious mariner so as to avoid unnecessary
losses, delays and disruptions to the Work.
7.2.2 The Contractor and the City will first attempt to resolve disputes or disagreements
at the field level through discussions between the Contractor’s Representative and
the City’s Representative.
7.2.3 If a dispute or disagreement cannot be resolved through the Contractor’s
Representative and the City’s Representative, the Contractor’s Senior
Representative and the City’s Senior Representative, Upon the request of either
party, will meet as soon as conveniently possible, but in no case later than thirty
(30) days after the request is made, to attempt to resolve the dispute or
disagreement. Before any meetings between the Senior Representatives, the
parties will exchange relevant information that will assist the parties in resolving
their dispute or disagreement
7.2.4 The City and the Contractor agree to negotiate in good faith in accordance with
this Contract’s procedure forthe recovery of damages related to expenses incurred
by the Contractor for a delay for which the City is responsible, that is unreasonable
under the circumstances, and that was not within the contempiation of the parties
to the Contract.
7.3
DUTY TO CONTINUE PERFORMANCE
Unless provided to the contrary in the Contract Documents, Contractor will continue to
perform the Work and the City will continue to satisfy its paymerit obligations to
Contractor, until final resolution of any dispute or disagreement between Contractor and
the City.
7.4 REPRESENTATIVES OF THE PARTIES
A. City’s Representatives
(Revised.07/09/25)
1. The City designates the individual listed below as the City’s Senior
Representative. This individual has the authority and responsibility for
avoiding and resolving disputes under Article 7.2.3:
City of Scottsdale
Attn: Robert Franklin
Facilities Service Area Manager
9191 E. San Salvador Dr
Scottsdale, AZ 85251
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8.1
2. The City will designate an individual for each Job Order as the City’s
Representative. This person will manage the Job Order.
B. Contractor's Representatives
1. Contractor designates the individual listed below as Contractor’s Senior
Representative. This individual has the authority and responsibility for
avoiding and resolving disputes under Article 7.2.3:
GCON Inc..
Attn: Tiffany Fisher
2411 w Rose Garden Ln, Ste 100
Phoenix, AZ 85027
(623) 581-6300
2. Contractor will designate an individual for each Job Order as Contractor's
Representative.
ARTICLE 8- SUSPENSION, TERMINATION AND CANCELLATION
CITY’S RIGHT TO STOP JOB ORDER SERVICES
A.
The City may, at its discretion and without cause, order Contractor in writing to stop
and suspend any Job Order. Immediately after receiving this notice, Contractor
will discontinue advancing the Job Order. The suspension will not exceed one
hundred eighty (180) consecutive days. If the City suspends the Job Order for one
hundred eighty-one (181) consecutive Days or more, the suspension will be
considered a termination for convenience.
B.
Contractor may seek an adjustment of the Job Order Price or Job Order Time if its
cost or time to perform the Contract Services has been adversely impacted by any
suspension or stoppage of the Work by the City.
8.2 TERMINATION FOR CONVENIENCE
A. Upon receipt of written notice to Contractor, the City has the right to terminate this
Contract or abandon any portion of any Job Order for which services have not been
performed by Contractor.
1. Contractor will estimate the value of the Work it has completed and submit
its appraisal to the City for evaluation. The City will have the right to inspect
the Work, to appraise the Work completed.
Contractor will receive compensation for services performed to the date of
the termination. The fee will be an amount mutually agreed upon by
Contractor and the City. If there is no mutual agreement, the final
determination will be made in accordance with this Article.
2. The City will make the final payment within 60 days after Contractor has
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delivered the last of the partially completed items and the final fee has been
agreed upon.
If the City terminates this Contract in compliance with this Article and
proceeds to complete the Job Order through its employees, agents or other
third parties, the City’s rights to use the Work product will be as stated in
Article 8.4(D).
B.
Upon termination of construction services during any Job Order, Contractor will
proceed with the following obligations:
1. Stop Work as stated in the notice;
2. Place no further subcontracts or orders;
3. Terminate all subcontracts to the extent they relate to the Work terminated;
4. Assign to the City all right, title and interest of Contractor under the
subcontracts terminated, in which case the City will have the right to settle or
to pay any termination settlement proposal arising out of those terminations;
and
/
5. Take any action that may be necessary for the protection and preservation
of the property related to the Contract that is in the possession of Contractor
and which the City has or may acquire an interest.
6. Comply with the requirements of Article 6.5(B)(1) and (2).
C. Contractor wilt submit complete termination inventory schedules no laterthan sixty
(60) days from the date of the notice of termination.
D. The City will pay Contractor the following:
1. The direct value of its completed Work and materials supplied as of the date
of termination;
2. The reasonable costs and expenses attributable to the terminatiori;
3. Contractor will be entitled to profit and overhead on completed Work but will
not be entitled to anticipated profit or anticipated overhead. If it appears
Contractor would have sustained a loss on the entire Work had the Job
Order been completed. Contractor will not be allowed profit and the City will
reduce the settlement to reflect the indicated rate of loss;
4. Contractor will maintain all records and documents for three (3) years after
final settlement. These records will be maintained and subject to auditing as
required in Article 6.7; and
5. Take any action that may be necessary for the protection and preservation
of the property related to the Job Order(s) that is in the possession of
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Contractor and in which the City has or may acquire an interest.
8.3
CANCELLATION FOR CAUSE
The City may also cancel this Contract or any part of it with seven (7) days notice for
cause in the event of any default by Contractor, or if Contractor 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 City’s Representative 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 City will not be liable to Contractor for any amount as
damages, and Contractor will be liable to the City for any and all damages sustained
as a result of the default that caused the cancellation.
8.4
CITY’S RIGHT TO PERFORM AND CANCEL FOR CAUSE
A.
If Contractor persistently fails to;
1. Provide a sufficient number of skilled workers;
2. Supply the materials required by the Contract Documents or Job Order{s):
3. Comply with applicabie Legal Requirements;
4. Timely pay, without cause. Subconsultants or Subcontractors;
5. Perform the Contract Services with promptness and diligence to ensure
that a Job Order is completed by the Job Order Time, as the times may be
adjusted; or
6. Perform other material obligations under the Contract Documents and/or
individual Job Orders;
Then the City, in addition to any other rights and remedies provided in the Contract
Documents or by law. will have the rights stated in Articles 8.2 and 8.3.
In the event the City cancels this Contract or any part of the services under any
Job Order, the City will notify Contractor in writing, and immediately upon receiving
this notice. Contractor will discontinue advancing the Work under this Contract or
the Job Order and proceed to close all operations of any affected Job Order or this
Contract.
B. If the City provides Contractor with a written order to provide adequate maintenance
of traffic, adequate cleanup, adequate dust control or to correct deficiencies or
damage resulting from abnormal weather conditions, and Contractor fails to comply
in a time frame specified, the City may have the Work accomplished by other
sources at Contractor’s expense and without an increase to the Job Order Price
C. Upon the occurrence of an event stated in Article 8.4(B), the City may provide written
notice to Contractor that it intends to cancel the Contract unless the problem cited
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is cured, or commenced to be cured, within seven (7) days of Contractor’s receipt of
notice.
1. If Contractor fails to cure, or reasonably commence to cure, the problem,
then the City may give a second written notice to Contractor of its intent to
cancel within an additional seven (7) day period.
2. If Contractor, within this second seven (7) day period, fails to cure, or
reasonably commence to cure the problem, then the City may declare the
Contract cancelled for default by providing written notice to Contractor of
this declaration.
D. Upon declaring the Contract cancelled in accordance with Articje 8.4(C), and for the
purpose of completing the Work, the City may for all Job Orders enter upon the
premises and take possession of all materials, equipment, scaffolds, tools,
appliances and other items, which have been purchased or provided for the
performance of the Work, all of which Contractor now transfers, assigns and sets
over to the City for this purpose, and to employ any person or persons to complete
the Work and provide all of the required labor, services, materials, equipment and
other items.
E. If through any cause. Contractor fails to fulfill in a timely and proper manner its
obligations under this Contract, or If Contractor violates any of the covenants.
Contracts, or stipulations of this Contract, the City may withhold any payments to
Contractor for the purpose of setoff until the exact amount of damages due the City
from Contractor is detennined by a court of competent jurisdiction.
F. In the event of a cancellation. Contractor will not be entitled to receive any further
payments under the Contract Documents until the Work on all Job Orders is
completed in accordance with the Contract Documents. At that time. Contractor will
only be entitled to be paid for Work performed and accepted by the City before its
default.
G. If the City’s cost and expense of completing the Work exceeds the unpaid balance
of a Job Order Price, then Contractor will be obligated to pay the difference to the
City. These costs and expenses will include not only the cost of completing the
Work, but also losses, damages, costs and expense, including attorneys’ fees and
expenses, incurred by the City in connection with the reprocurement and defense of
claims arising from Contractor’s default.
H. If the City cancels this Contract for cause and the cancellation is determined to have
been without legal right, the cancellation for cause will be considered to have been
a termination for convenience in accordance with the provisions of Article 8.2.
ARTICLE 9 - INSURANCE AND BONDS
9.1 INSURANCE REQUIREMENTS
A. At the same time as execution of this Contract, Contractor will furnish the City of
Scottsdale a Certificate of Insurance on a standard insurance industry ACORD
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form. The ACORD form will be issued by an insurance company authorized to
transact business in the State of Arizona.
B.
Contractor, Subcontractors and Subconsuitants 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 Contractor, its agents, representatives, employees, or
Subcontractors.
C.
The insurance requirements are minimutri 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 Contractor from liabilities that might arise out of the
performance of the Contract Services under this Contract by Contractor, its agents,
representatives, employees. Subcontractors or Subconsultants and Contractor is
free to purchase any additional insurance as may be determined necessary. The
City will not pay for higher limits, but If Contractor pays for insurance with higher
limits. Contractor will name the City as an additional insured on any additional
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 rhust 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.
Self-Insured Retentions. 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.
9.2 MINIMUM SCOPE AND LIMITS OF INSURANCE
Contractor must provide coverage 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
$2,000,000
$2,000,000
$1,000,000
$2,000,000
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Fire Damage (Any one fire)
Medical Expenses (Any one person)
Contract No. 2026-008-COS
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$100,000
OPTIONAL
B. Automobiie Liabilitv-Anv Auto or Owned. Hired and Non-Owned Vehicles
Combined Single Limit Per Accident
For Bodily Injury and Property Damage
C.
Workers Compensation and Employers Liabilitv
Workers Compensation
Employers Liability:
Each Accident
Disease - Each Employee
Disease - Policy Limit
D.
Coverage Terms and Required Endorsements
$1,000,000
Statutory
$500,000
$500,000
$1,000,000
1. The City of Scottsdale, its officers, officials, agents, and employees are
additional insureds with respect to liability arising out of activities performed
by, or on behalf of. Contractor including the City’s general supervision of
Contractor; products and completed operations of Contractor; and
automobiles owned, leased, hired, or borrowed by Contractor.
2. The City, its officers, officials, agents, and employees must be additional
insureds to the full limits of liability purchased by Contractor even if those
limits of liability are in excess of those required by this Contract.
3. Contractor's insurance coverage 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 will be in excess of the coverage provided by Contractor and
must not contribute to it.
4. Contractor's insurance must apply separately to each insured against
whom a claim is made or suit is brought, except with respect to the limits of
the insurer's liability.
5. Coverage provided by Contractor must not be limited to the liability
assumed under the indemnification provisions of this Contract.
6. All policies must contain a waiver of subrogation against the City, its
officers, officials, agents, and employees, for losses arising from Work
perfonned by Contractor for the City.
7. Workers’ Compensation and Employers Liability Coverage: 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 Contractor for the City.
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8. If Contractor receives notice that any of the required policies of insurance
are materialiy reduced or canceiled, it wiil be Contractor’s responsibility to
provide prompt notice to the contract administrator of same to the City,
unless such coverage is immediately replaced with similar policies.
E. Builders Risk-installation Insurance fCourse of Construction)
To be provided If determined by the City as necessary with each Job Order.
Contractor bears all responsibility for loss to all Work being performed and to
buildings under construction. Unless Waived in writing by the City of Scottsdale,
Contractor will purchase and maintain in force Builders Risk-Installation insurance
on the entire Work until completed and accepted by the City. This insurance will
be Special Causes of Loss or Open Perils policy form, for the completed value, at
replacement cost equal to each Job Order contract price and all subsequent
modifications. Contractor's Builders Risk-installation insurance will be primary and
not contributory; and waive all rights of subrogation against the City, its officers,
officials and employees.
This Builders Risk-Installation insurance must name the City, Contractor and all
tiers of Subcontractors as respects their insurable interest at the date of loss. It
must contain a provision that subject insurance will not be canceled or materially
altered without at least thirty (30) days advance notice to the City. Contractor is
also required to give the City thirty (30) days advance written notice of the coverage
termination for each project. The City will also be named as a Loss Payee under
Builders Risk-Installation coverage.
This Builders Risk-Installation Insurance must cover the entire Work including
reasonable compensation for architects and Contractor’s’ services and expenses
and other “soft costs” made necessary by an insured loss. Builders Risk-
Installation insurance must provide coverage from the time any covered property
comes under Contractor’s control and or responsibility, and continue without
interruption during course of construction, renovation and or installation, including
any time during vrhich any project property or equipment is in transit, off site, or
while on site for future use or installation, insured property must include, but not
be limited to, scaffolding, false work, and temporary buildings at the site. This
insurance must also coverthe cost of removing debris, including demolition as may
be legally required by operation of any law, ordinance, regulation or code.
Contractor must also purchase and maintain Boiler and Machinery insurance with
the same requirements as Builders Risk-Installation insurance stated above if the
Work to be performed involves any exposures or insurable property normally
covered under a Boiler and Machinery insurance policy or made necessary as
required by law and or testing requirements in the performance of this Contract.
Contractor will be responsible for any and all deductibles under these policies and
Contractor waives all rights of recovery and subrogation against the City under
Contractor-provided Builders Risk-Installation insurance described in this Article.
The Builders’ Risk-Installation insurance must be endorsed so that the insurance
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will not be canceled or lapse because of any partial use or occupancy by the City.
Builders’ Risk-Installation Insurance must be maintained until whichever of the
following first occurs; (i) final payment has been made; or (ii) until no person or
entity, other than the City, has an insurable interest in the property required to be
covered.
By signing this Contract, the City and the Contractor waive all rights of subrogation
against each other, their respective officers, officials, agents and employees.
9.3 OTHER INSURANCE REQUIREMENTS
The policies are to contain, or be endorsed to contain, the following provisions:
A.
Contractors Professional Liability; Contractor must carry Contractors Professional
Liability insurance to cover the residual, contingent, and passive design exposures
of Contractor.
1.
The City of Scottsdale, 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 Contractor, including the City’s
general supervision of Contractor; products and completed operations of
Contractor.
2.
The City, its officers, officials, agents, and employees must be additional
insureds to the full limits of liability purchased by Contractor, even if those
limits of liability are in excess of those required by this Contract. The
Commercial General Liability policy will be at least as broad as the
Insurance Service Office, Inc ’s CG 0 0 01 07 98.
B.
Contractors Professional Limits of Liability; Contractor 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.
Contractor, 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 foilowing 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.
1.
2.
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Contractor’s insurance coverage must be primary insurance with respect
to the City, its officers, officials, agents, and employees. Insurance or self-
insurance maintained by the City, its officers, officials, agents, and
employees must be in excess of Contractor’s insurance and will not
contribute to it.
Contractor’s insurance must apply separately to each insured against
whom a claim is made or suit is brought, except with respect to the limits of
the insurer’s liability. The coverage provided by Contractor and its
Subcontractors must not be limited to the liability assumed under the
indemnification provisions of this Contract.
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3. The policies must contain a waiver of subrogation against the City, its
officers, officials, agents, and employees for losses arising from Work
performed for the City.
C. Contractor, its successors and 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. Contractor must
submit a Certificate of Insurance evidencing the Commercial General Liability
insurance during this three (3) year period containing all the insurance
requirements including naming the City of Scottsdale, its agents, representatives,
officers, directors, officials and employees as Additional Insured as required.
9.4
SUBCONSULTANT’S AND SUBCONTRACTOR’S INSURANCE
Unless Contractor’s Subconsultants and Subcontractors can provide the same level of
coverage as detailed in Article 9.2 and name the City and Contractor as Additional
Insureds, Contractor’s certificates must include all Subcontractors and Subconsultants
as insureds under its policies or Contractor must maintain separate certificates and
endorsements for each Subcontractor and Subconsultant. All coverages for
Subcontractors and Subconsultants must be in the amounts shown in Article 9.2.
Certificates must contain a provision that the insurance will not be canceled or materially
altered without at least thirty (30) days advance notice to the City. The City must also
be named as a Loss Payee under the Builders Risk-Installation coverage.
9.5
NOTICE OF CANCELLATION
If Contractor receives notice that any of the required policies of insurance are materially
reduced or cancelled, it will be Contractor’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, reduced in coverage or in limits until thirty (30) days written notice has first
been given in accordance with Article 11.24, herein.
9.6
ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers duly licensed or approved to conduct business
in the State of Arizona and with an A. M. Best rating of no less than B++6. The City in
no way warrants that the above required minimum insurer rating is sufficient to protect
Contractor from potential insurer insolvency. Failure to maintain insurance as required
may result in termination of this Contract at the City’s option.
9.7
VERIFICATION OF COVERAGE
A. Contractor 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 and endorsements for each
insurance policy are to be signed by a person authorized by that insurer to bind
coverage on its behalf.
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B.
All certificates and endorsements are to be received and approved by the City
before Contract Services commence except for Builders Risk-Installation
Insurance, which will be received and approved as provided in Article 9.2(E). Each
insurance policy required by this Contract must be in effect at or before the earlier
of commencement of Contract Services under the Contract Documents or the
signing of this Contract except for Builders Risk-Installation Insurance which must
be in effect before commencement of the 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, Attn: Purchasing Department, 9191 E. San Salvador Dr.
Scottsdale, AZ 85258. The project number and project description must bo
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 Contractor’s Certificate and delay in contract execution.
Additional Certificates of Insurance submitted without referencing a Contract
number will be subject to rejection and returned or discarded.
9.8
APPROVAL
Any modification or variation from the insurance requirements in this Contract must be
approved by the Risk Management Division, whose decision is final. This action may be
made by administrative action.
9.9 BONDS AND OTHER PERFORMANCE SECURITY
A.
Before execution of each individual Job Order, Contractor must provide a
performance bond and a payment bond for all construction services, each in an
amount equal to the full amount of the agreed upon cost for that Job Order.
Contractor may, at its own option, provide Payment and Performance Bonds for
the entire Contract Price amount, but there shall be no obligation for the City to
reimburse Contractor for bond costs incurred, except on an actual cost basis as
each individual Job Order is issued. Bonds must be submitted in accordance with
Title 34, Chapter 6 of the Arizona Revised Statutes and must be in substantially
the same form as Exhibits A and B, attached to this Contract.
B.
Each bond must be executed by a surety company or companies holding a
Certificate of Authority to transact surety business in the State of Arizona, issued
by the Director of the Arizona Department of Insurance. A copy of the Certificate
of Authority must accompany the bonds. The Certificate must have been issued
or updated within two (2) years before the execution of this Contract.
C.
The bonds must be made payable and acceptable to the City of Scottsdale.
D.
The bonds must be written or countersigned by an authorized representative of the
surety and the bonds must have attached a certified copy of the Power of Attorney
of the signing official.
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1. If one Power of Attorney Is submitted, it must be for twice the total Job
Order Price.
2. If two Powers of Attorney are submitted, each must be for the total Job
Order Price. Personal or individual bonds are not acceptable.
3. Upon the request of any person or entity appearing to be a potential
beneficiary of bonds cpvering payment of obligations arising under the
Contract Documents, Contractor must promptly furnish a copy of the bonds
or must permit a copy to be made.
E. Ail bonds submitted for this Project must be provided by a company which has
been rated "A or better" by the A.M. Best Company.
ARTICLE 10 - INDEMNIFICATION
10.1 CONTRACTOR’S GENERAL INDEMNIFICATION
10.1.1 To the fullest extent pennitted by law, Constructor shall indemnify and hold
harmless Owner, Owner’s officers, directors, members, consultants, agents, and
employees and Design Professional (the "Indemnitees”) from all claims for bodily injury
and property damage, other than to the Work itself and other property insured under §9,
including reasonable attorneys’ fees, costs, and expenses, that may arise from the
performance of the Work but oniy to the extent caused by the negligent or intentionally
wrongful acts or omissions of Constructor, subcontractors, suppliers, or anyone
employed directly or indirectly by any of them or by anyone for whose acts any of them
may be liable. Constructor shall be entitled to reimbursement of any defense costs paid
above Constructor’s percentage of liability for the underlying claim to the extent provided
in the section immediately below.
10.1.2 To the fullest extent permitted by law. Owner shall hold harmless Constructor,
its officers, directors, or members, subcontractors, suppliers, or anyone employed
directly or indirectly by any of them or anyone for whose acts any of them may be liable
from all claims for bodily injury and property damage, other than property insured under
§9, including reasonable attorneys’ fees, costs, and expenses, that may arise from the
performance of work by Owner, Design Professional, or others retained by Owner, but
only to the extent caused by the negligent or intentionally wrongful acts or omissions of
Owner, Design Professional, or others retained by Owner. Owner shall be entitled to
reimbursement of any defense costs paid above Owner’s percentage of liability for the
underlying claim to the extent provided in the section immediately above.
10.2 INTELLECTUAL PROPERTY
A.
B.
(Revised 07/09/25)
Contractor must pay all royalties and license fees associated with its performance
of services.
Contractor must defend any action or proceeding brought against the City based
on any claim that the Work, or any part of the Work, or the operation or use of the
Work or any part of it constitutes infringement of any United States patent or
copyright, now or subsequently issued. The City will give prompt written notice to
Contractor of any action or proceeding and will reasonably provide authority.
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information and assistance in the defense of the action. Contractor shall 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 Contractor in any action dr proceeding.
Contractor agrees to keep the City informed of all developments in the defense of
these actions. The City may be represented by, and actively participate through,
its own counsel in any suit or proceedings if it so desires.
C.
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. Contractor
shall at its sole expense take reasonable steps to procure the right to operate or
use the Work. If Contractor cannot procure this right within a reasonable time.
Contractor will promptly, at Contractor’s option and at Contractor’s expense,
without an increase to the Job Order Price, (i) modify the Work so as to avoid
infringement of any patent or copyright or (ii) replace the Work with Work that does
not infringe Or violate any patent or copyright.
D.
Articles 10.2(B) and 10.2(C) will not be applicable to any suit, claim or proceeding
based on infringement or violation of a patent or copyright:
1. Relating solely to a particular process or product of a particular
manufacturer specified by the City and not offered or recommended by
Contractor to the City; or
2. Arising from modifications to the Work by the City or its agents after
acceptance of the Work.
E.
The obligations stated in this Article 10.2 will constitute the sole Contract between
the parties relating to liability for infringement of violation of any patent or copyright.
ARTICLE 11-GENERAL PROVISIONS
11.1 MARSHALING AREA
Contractor shall contact the City of Scottsdale. Development Services to determine the
requirements for obtaining a permit for marshaling areas it proposes to use. Marshaling
areas must be fenced. Contractor will obtain written approval from the property oviffier
for marshaling area use. This approval must contain any requirements, which are a
condition of this approval. Marshaling yard requirements according to M.A.G.
Subsection 107.6.1 and the City of Scottsdale Supplemental Specifications will apply.
11.2 CONTRACT DOCUMENTS
A.
Contract Documents are as defined in Article 12.
B.
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.
C.
(Revised 07/09/25)
In the event of any inconsistency, conflict, or ambiguity between or among the
Contract Documents, the Contract Documents vwll take precedence in the order in
which they are listed in the definition of Contract Documents in Article 12. As to
drawings and plans, given dimensions will take precedence over scaled
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D.
E.
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measurements, and large-scale plans over small-scale plans. Contract
specifications will take precedence over contract plans.
The Contract Documents are intended to permit the parties to complete the Work
and all obligations required by the Contract Documents within the times and prices
agreed upon for each Job Order. The Contract Documents are intended to be
complementary and interpreted in harmony so as to avoid conflict, with words and
phrases interpreted in a manner consistent with construction and design industry
standards.
This Contract, the Plans, Standard Specifications and Details, Special Provisions,
Performance Bond, Payment Bond, Certificates of Insurance, Job Orders and Job
Order Adjustments (if any) are by reference made a part of this Contract to the
same extent as if set forth in full.
F. Work Product
1. All Work products (electronically or rhanually 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 which are prepared or procured in the
performance of this Contract (collectively referred to as documents) are to
be and remain the property of the City and are to be delivered to the City
before the final payment is made to Contractor. In the event these
documents are altered, modified or adapted without the written consent of
Contractor or the Subconsultants, which consent Contractor or the
Subconsultants will not unreasonably withhold, the City agrees to hold
Contractor and the Subconsuitants harmless to the extent permitted by law
from the legal liability arising out of the City’s alteration, modification or
adoption of the documents.
2. The copyrights, patents, trade secrets Or other intellectual property rights
associated with the ideas, concepts, techniques, inventions, processes or
works of authorship developed, created by Contractor, its Subconsultants
or personnel, during the course of performing this Contract or arising out of
the Project will belong to Contractor.
11.3 MODIFICATIONS
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.
11.4 time IS OF THE ESSENCE
Time is of the essence with respect to the dates and times stated in the Contract
Documents.
11.5 COOPERATION AND FURTHER DOCUMENTATION
Contractor agrees to provide the City any other duly executed documents, as will be
reasonably requested by the City, to implement the intent of the Contract Documents.
11.6 ASSIGNMENT
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Neither Contractor nor the City will, without the written consent of the other, assign,
transfer or sublet any portion of this Contract or part of the Work or the obligations
required by the Contract Documents.
11.7 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, acts of terrorism, epidemics, governmental regulations imposed after the fact,
fire, communication iine failures, or power failures.
11.8 FUNDS APPROPRIATION
Multiterm contracts for job-order-contracting construction services are subject to A.R.S.
§34-607, as amended. If the City Council does not appropriate funds to continue this
Contract and pay for charges, the City may terminate this Contract at the end of the
current fiscal period. The City agrees to give written notice to Contractor at least thirty
(30) days before the end of its current fiscal period and will pay Contractor for all
approved charges incurred through the end of the period.
11.9 CONSTRUCTION METHODS
If the City provides Contractor with a written order to provide adequate maintenance of
traffic, clean-up, dust control or to correct deficiencies or damage resulting from
abnormal weather conditions, and Contractor fails to comply in the time frame specified,
the City may have Work accomplished by other sources at Contractor's expense, without
an increase in the Job Order Price.
11.10 UTILITY RELOCATIONS FOR CONSTRUCTION METHODS
If any utility is relocated or rebuilt to accommodate Contractor’s construction methods
and available equipment, the expense will be borne by Contractor and will be replaced
to the original location before completion of the Job Order at the request of the City’s
Project Coprdinator at Contractor’s sole expense, without an increase in the Job Order
Price.
11.11 DAMAGED UTIUTIES DURING CONSTRUCTION
Any utilities damaged during constmction shali be replaced at Contractor’s expense,
without an increase in the Job Order Price, as per the requirements of the M.A.G.
Standard Specifications.
11.12 SUCCESSORS AND ASSIGNS
This Contract wiil exterid to and be binding upon Contractor, its successors and assigns,
including any individual^ company, partnership, or other entity with or into which
Contractor will merge, consolidate, or be liquidated, or any person, corporation,
partnership, or other entity to which Contractor win 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.
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11.13 CONFLICT IN LANGUAGE
All services and Work performed will conform to all applicable City of Scottsdale codes,
ordinances and requirements as outlined in the Contract Documents. If there is a conflict
in interpretation between provisions in this Contract and those in exhibits, the provisions
in this Contract will prevail.
11.14 THIRD PARTY BENEFICIARY
Nothing under the Contract Documents will be construed to give any rights or benefits
in the Contract Documents to anyone other than the City and Contractor, and all duties
and responsibilities undertaken in accordance with the Contract Documents will be for
the sole and exclusive benefit of the City and Contractor and not for the benefit of any
other or third party.
11.15 GOVERNING LAW
This Contract and all Contract Documents 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. Any action to enforce any
provision of this Contract or to obtain any remedy with respect to this Contract shall be
brought in the Superior Court of Maricopa County, Arizona, and 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.
11.16 SEVERABILITY
If any provision of the Contract Documents or their application to any person or
circumstance is invalid, illegal or unenforceable to any extent, the remainder of the
Contract Documents 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, as amended, should the Attorney General give notice to the City
that any provisions of the 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 Contractor
shall, within ten (10) days after such notice, negotiate in good faith to resolve any issues
related to the severed provision (s).
11.17 LEGAL REQUIREMENTS
Contractor shall perform all Contract Services in accordance with all Legal Requirements
and wiil provide all notices applicable to the Contract Services as required by the Legal
Requirements.
11.18 INDEPENDENT CONTRACTOR
The services the Contractor provides to the City are that of an Independent Contractor,
not an employee, or agent of the City. Upon request, the Contractor 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.
Any provisions in the Contract Documents that may appear to give the City the right to
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direct Contractor as to the details of accomplishing the Work or to exercise a measure
of control over the Work means that Contractor will follow the wishes of the City as to
the results of the Work only. These results will comply with all applicable laws and
ordinances.
11.19 CITY'S RIGHT OF CANCELLATION
This Contract is subject to cancellation by the City of Scottsdale in accordance with the
provisions of A.R.S. § 38-511, as amended.
11.20 SURVIVAL
All warranties, representations and indemnifications by Contractor shall survive the
completion or termination of this Contract.
11.21 COVENANT AGAINST CONTINGENT FEES
Contractor warrants that no person has been employed or retained to solicit or secure
this Contract upon any contract or understanding for a commission, percentage,
brokerage, or contingent fee, and that no member of the City Council, or any employee
of the City of Scottsdale has any interest, financially, or othenvise, in the firm. For breach
or violation of this warranty, the City will have the right to annul this Contract without
liability, or at Its discretion to deduct from the Contract Price or consideration, the full
amount of any commission, percentage, brokerage, or contingent fee.
11.22 NO WAIVER
The failure of either party to enforce any of the provisions of the Contract Documents, or to
require performance of the other party of any of its provisions, will not be construed to be a
waiver of those provisions, nor will it affect the validity ofthe Contract Documents or any part
of the Contract Documents, or the right of either party to enforce each and every provision.
11.23 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.
11.24 NOTICE
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 apy other address the parties may substitute by giving written notice as
required by this section. Notice by electronic mail or facsimile will not be considered
notice.
To City:
City of Scottsdale
Attn: Robert Franklin
Facilities Service Area Manager
9191 E San Salvador Dr.
Scottsdale, Arizona 85258 ___
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To JOC Contractor:
GCON Inc..
Attn: Tiffany Fisher
2411 W Rose Garden Ln. STE100
Phoenix. AZ 85027
(623) 581-5300_______________
11.25 ADDITIONAL CITY RIGHTS REGARDING SECURITY INQUIRIES
Projects may be completed In both secure and non-secure City facilities. All Contractor
and Subcontractor employees may be required to pass mandatory background checks
prior to the start of any Work and be issued access badges by City of Scottsdale
Municipal Security. In addition to the foregoing, the City reserves the right to: (1) have
an employee/prospective employee of Contractor be required to provide fingerprints and
execute any other documentation as may be necessary to obtain criminal justice
information pursuant to A.R.S. § 41-1750(G)(4); (2) act on newly acquired information
whether or not that information should have been previously discovered; (3) unilaterally
change its standards and criteria relative to the acceptability of Contractor's employees
or prospective employees; and, (4) object, at any time and for any reason, to^ an
employee of Contractor performing Work (including supervision and oversight) under
this Contract.
A.
Provisions Applicable to all Contractor Contracts and Subcontracts. Contractor will
include the tenns of this provision for employee background and security checks
and screening in all contracts and subcontracts for Work performed under this
Contract, including supervision and oversight.
B.
Materiality of Security Inquiry Provisions. The Security Inquiry provisions of this
Contract, as stated above, are material to the City’s entry into this Contract and
any breach by Contractor may, at the City’s sole option and unfettered discretion,
be considered to be a breach of contract of sufficient magnitude to terminate this
Contract. Termination wiii subject Contractor to liability for its breach of contract
11.26 HAZARDOUS MATERIALS
A.
Upon discovery of hazardous materials Contractor will comply with all applicable
laws/ordinances and regulations and take all appropriate health and safety
precautions.
B.
Uniess included in the Work, if Contractor encounters onsite, or as material to be
incorporated in the Work, any material which it reasonably believes to contain
asbestos, polychlorinated biphenyl (PCB), or other hazardous substances or
materials regulated by public health laws, it will immediately stop work and report
the condition to the City.
C.
If the material js found to contain asbestos, PCB or other hazardous substances or
materials regulated by public health laws. Contractor will not resume Work in the
affected area until the material has been abated or rendered harmless. Contractor
and the City may agree, in writing, to continue Work in non-affected areas onsite.
D.
An extension of Job Order Time may be granted in accordance with Article 5.
E.
Contractor will comply with ail applicable laws/ordinances and regulations and take
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all appropriate health and safety precautions upon discovery.
F. Despite the provisions of this Article 11.26, the City is not responsible for
hazardous conditions or materials introduced to the Site by Contractor,
Subcontractors or anyone for whose acts they may be liable. Contractor will
indemnify, defend and hold harmless the City and the City’s officer's, directors,
employees and agents from and against all claims, losses, damages, liabilities and
expenses, including attorneys’ fees and expenses, arising out of or resulting from
those hazardous conditions or materials introduced to the Site by Contractor,
Subcontractors or anyone for whose acts they may be liable.
11.27 TRAFFIC CONTROL
A.
Complete street closures will not be permitted unless specified in the Special
Provisions or approved by the City. The timing and sequence of street closures
will be approved by the Traffic Engineering Director, or designee, at least fourteen
(14) days before the closure. This approval is necessary to provide coordination
with other roadway projects and special events.
B.
Adequate barricades and lighted warning signs must be installed and maintained
by Contractor throughout the duration of any Project. All traffic control must be in
accordance with the current version of the City of Scottsdale Supplement to MAG
Uniform Standard Specifications Section 401 or as required by the approved
barricade plan unless otherwise specified in the Special Provisions.
C.
Contractor will submit a construction schedule and a barricade plan to the City
Traffic Engineering Director, or designee, for approval or modification at least
seventy-two (72) hours before construction is initiated, and must wait to commence
construction until the plan is signed as accepted by the City Traffic Engineering
Director, or designee.
11.28 MATERIAL SOURCE
No material source has been designated by the City for use under this Contract. MAG
Specification, Section 106 will apply as will ADOT Standard Specifications 1982, Section
106.1, 106.2, 106.7 & 106.8, which outline controls and Section 1001-1, -2, & -4
concerning approval of Contractor-Furnished Source and supplemental Contracts in
regards to environmental analysis and the liability for materials testing costs.
Contractor and Subcontractor furnished material sources situated in the 100-year flood
plain of any stream or watercourse will not be allowed if located within 1.0 mile upstream
and 2.0 miles downstream of any highway structure or surfaced roadway crossing.
A Contractor and Subcontractor-furnished source will be defined as a material source,
which is neither an ADOT furnished source nor a commercial source, as defined in this
Contract.
A commercial source will be defined as a material source In which the owner or producer
has been regularly engaged for at least one (1) year during regular business hours on a
regular basis in the processing and selling of sand, rock, ready mixed Portland cement
concrete, asphaltic concrete and other similar products normally produced and sold to
all parties. The company must have an Arizona retail sales tax license.
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The location of any new material source or existing non-commercial material source
proposed for use under this Contract must be reviewed by the appropriate agency
having flood plain management jurisdiction over the area of proposed source location.
Contractor and Subcontractor will obtain a letter from the agency addressed to the
Contract Administrator certifying that the proposed source location conforms to the
required conditions and the applicable Standard Specifications. Contractor will
familiarize himself with the nature and extent of the Contract Documents, work to be
performed, all local conditions, and federal, state and local laws, ordinances, rules and
regulations that in any manner may affect cost, progress or performance of the Work.
11.29 FAMILIARIZATION WITH APPLICABLE LAWS
Contractor will familiarize itself with the nature and extent of the Contract Documents,
work to be performed, all local conditions, and federal, state and local laws, ordinances,
rules and regulations that in any manner may affect cost, progress or performance of
the Work.
11.30 NATIVE PLANTS
Contractor agrees it will take whatever steps, procedures or means necessary to
remove, move, displace and save all native plants within the contract work area in
accordance with the City of Scottsdale Revised Code, as amended, and all applicable state
and county statutes, ordinances, codes and other policy requirements and recognized
methods, procedures, techniques and equipment for protection, salvage, and handling of all
plants to be moved from the construction area. This is not a pay item unless specified upon
the Schedule of Bid Items.
11.31 ENDANGERED HARDWOODS
Contractor agrees any construction, building addition or alteration project which is
financed by monies of this state or its political subdivisions will not use endangered
tropical hardwood unless an exemption is granted by the Director of the State of Arizona,
Department of Administration.
11.32 CONSTRUCTION ACTIVITY
Contractor agrees that all construction activity occurring on Site shall conform to the
hour and noise requirements of the City of Scottsdale Revised Code, as amended.
11.33 COMPLIANCE WITH LOCAL, STATE AND FEDERAL LAWS
A. Contractor 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 Contractor’s labor and
employment practices. Contractor agrees to comply with these laws in performing this
Contract and to permit the City to verify compliance. Contractor further agrees that
any violation of provision on the part of Contractor, its employees, agents or assigns
will constitute a material breach of this Contract.
Contractor 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
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amended. Contractor will include the terms of this provision in ail contracts and
subcontracts for Work performed under this Contract, including supervision and
oversight.
Under the provisions of A.R.S. §41-4401, Contractor warrants to the City that
Contractor and all its Subcontractors will comply with all Federal Immigration
laws and regulations that relate to its employees and that Contractor and all its
Subcontractors now comply with the E-Verify Program under A.R.S. §23-214(A).
A breach of this warranty by Contractor or any of its Subcontractors will be considered
a material breach of this Contract and may subject Contractor 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 Contractor or
any Subcontractor who works on this Contract to ensure that Contractor or any
Subcontractor is complying with the warranty given above.
The City may conduct random verification of the employment records of Contractor and
any of its Subcontractors to ensure compliance with this warranty. Contractor 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.
The City will not consider Contractor or any of its Subcontractors in material breach of
this Contract if Contractor 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 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 Contractor enters into
with any and all of its Subcontractors who provide services under this Contractor 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. Contractor will take appropriate steps to assure that all Subcontractors
comply with the requirements of the E-Verify Program. Contractor’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.
B. Compliance with Americans with Disabilities Act. Contractor acknowledges that, in
accordance with 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. Contractor will 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. Contractor
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 provision on the part of Contractor, its employees, agents or assigns will
constitute a material breach of this Contract.
C. Equal Employment Opportunity and Discrimination. For the duration of this Contract,
Contractor represents and warrants it will comply with all applicable local, state and
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federal laws governing equal employment opportuiiitjes, 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 Contractor compliance with the policies contained therein.
Contractor agrees that any violation of provision on the part of Contractor, its
employees, agents or assigns will constitute a material breach of this Contract.
Contractor will include the terms of this provision in all contracts and subcontracts for
work performed under this Contract, including supervision and oversight. The
Contractor will, in all solicitations or advertisements for employees placed by or on
behalf of the Contractor, state that all qualified applicants will receive consideration for
employment without regard to race, color, religion, sex, sexual orientation, gender
identity, or national origin.
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. Contractor
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.
D. Advertising. No advertising or publicity concerning the City using Contractor’s services
shall be undertaken without prior written approval of such advertising or publicity by
the Contract Administrator and the City Attorney.
11.34 DATA CONFIDENTIALITY
A.
As used in this 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 Contractor in the performance of this
Contract.
B.
The parties agree that all data, including originals, images, and reproductions,
prepared by, obtained by, or transmitted to Contractor in connection with
Contractor’s performance of this Contract is confidential and proprietary
information belonging to the City.
C.
(Revised 07/D9/2S)
Contractor will not divulge data to any third party without first obtaining the written
consent of the City. Contractor will not use the data for any purposes except to
perform the senrices required under this Contract. These prohibitions will not apply
to the following data provided Contractor has first given the required notice to the
City:
1. Data, which was known to Contractor before its perfomnance under this
Contract unless the data was acquired in connection with the Work
performed for the City;
2. Data which was acquired by Contractor in its performance under this
Contract and which was disclosed to Contractor by a third party, who to the
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best of Contractor’s knowledge and belief, had the legal right to make
disclosures and Contractor is not otherwise required to hold the data in
confidence; or
3. Data, which is required to be disclosed by virtue of law, regulation, or court
order to which Contractor is subject.
D.
In the event Contractor is required or requested to disclose data to a third party, or
any other information to which Contractor became privy as a result of any other
contract With the City, Contractor will first notify the City as required in this Article
of the request or demand for the data. Contractor will give the City sufficient facts
so that the City can be given an opportunity to first give its consent or take any
action the City may consider appropriate to protect the data or other information
from disclosure.
E.
Unless prohibited by law, within ten (10) days after completion of services for a
third party on real or personal properly owned or leased by the City, Contractor will
promptly deliver, as stated in this Article, a copy of all data to the City. All data will
continue to be subject to the confidentiality requirements of this Contract.
F.
Contractor 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 Contractor, its employees, agents or Subconsultante. 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
11.35 CONFLICT OF INTEREST
A.
To evaluate and avoid potential conflicts of interest. Contractor Will provide written
notice to the City, as stated in this Article, of any work or services performed by
Contractor for third parties that may Involve or be associated with any real property
or personal property owned or leased by the City. The notice will be given seven
(7) business days before commencement of the Project by Contractor 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 City Senior Representative
identified in Article 7.4.
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
3. Using data to produce income for Contractor or its employees
independently of performing the services under this Contract, without first
obtaining the written consent of the City.
C.
Contractor represents that except for those persons, entities and projects identified
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to the City, the services to be performed by Contractor 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.
Contractor’s failure to provide a written notice and disclosure of the information
stated in this Article on Conflicts of Interest will constitute a material breach of this
Contract.
E. 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 whjie 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.
11.36 COMMENCEMENT OF STATUTORY UMITATION PERIOD AND STATUTE OF
REPOSE
A.
Before Final Completion. As to acts or failures to act occurring before the relevant
date of Final Completion, any applicable statute of limitations will commence to run
and any alleged cause of action will be considered to have accrued in any and ail
events hot later than the date of Final Completion.
B.
Between Punch List Preparation and Final Completion. As to acts or failures to act
occurring between the relevant date of Punch List Preparation and before Final
Completion, any applicable statute of limitation will begin to run and any alleged
cause of action will be considered to have accrued in any events not later than the
date of Final Completion.
j
C.
After Completion. As to acts or failures to act occurring after the date of Final
Completion, any applicable statute of limitations will commence to run and any
alleged cause of action will be considered to have accrued in any and all events
not later than the date of any correction of the Work or failure to correct the Work
by the Contractor, or the date of actual commission of any other act or failure to
perform any duty or obligation by the Contractor or the City, whichever occurs last.
D.
Statute of Repose. The time period for the applicable Statute of Repose will
commence to run at the time specified in A.R.S. §12-552 as it is amended or
renumbered from time to time.
11.37 LOSS AND DAMAGES
(Revised 07/09/25)
Except as expressly provided in this Contract, Alt loss or damage arising out of the
nature of the Work to be done or from the action of the elements, or from any
unforeseen circumstances, in the prosecution of the same, or from any unusual
obstructions or difflculties which may be encountered in or during the prosecution
of the Work, or from any casualty whatsoever of every description, will be sustained
and borne by Contractor afits own cost and expense.
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11.38 RIGHTS-OF-WAY
The M.A.G. Standard Specification 107.12 is modified to read as follows: "Contractor, at
its own expense, is responsible for the acquisition of any necessary temporary
easements for construction purposes, storage and maintenance purposes, which are
required in addition to existing easements or rights of way secured by the City as
indicated upon the plans."
11.39 EXISTING TRAFFIC AND STREET SIGNS AND TRAFFIC SIGNAL EQUIPMENT
Contractor will use due care when excavating at Or near intersections where traffic signal
underground conduit is located. Contractor will notify the Transportation Maintenance
Traffic Signal Division (tel. 480.312.5620) at least forty-eight (48) hours in advance of
any work at the intersections. Contractor will be responsible for the installation and
maintenance of temporary overhead traffic signal cable as specified by the Traffic
Engineering Director when underground conduit is to be severed by excavations at the
intersection. The Transportation Maintenance Manager will have all underground traffic
conduit located and will provide the necessary City Technicians to assist Contractor in
identifying wiring phases and direction of conduit runs upon twenty-four (24) hours’
notice frorh Contractor and at least one (1) day before Contractor’s scheduled wiring and
installation of temporary cables. Contractor will be responsible for the wiring and
connection of all temporary cable within the pull boxes and terminal compartments. The
Transportation Maintenance Manager will provide a City technician to assist Contractor
with connecting field wiring within the traffic signal control cabinet. Contractor will
provide, at its expense, an off-duty uriiformed Police Officer to direct traffic while the
traffic signal is turned off and the wiring is transferred. Contractor will be responsible as
specified by the Traffic Engineering Manager for the repair and restoration of all traffic
signal overhead and underground items that have been damaged or modified. The City
does not permit the splicing of Magnetic Detector Loops.
11.40 CERTIFICATION OF USE OF BENCHMARKS
in compliance with the City’s Design Standards & Policies Manual (DS&PM), Sections
9-1.1 and 9-1.301, it is the City’s intent that Contractor must use both horizontal and
vertical benchmarks with City of Scottsdale published values for any survey on all public
works projects. These published vajues are available for public use at the following
website:
httDs://eserviCes.scottsdaieaz.aov/ririaDs/benchrharks. AT LEAST 1
HORIZONTAL AND 1 VERTICAL BENCHMARK MUST MATCH THE NORTHING,
EASTING OR ELEVATION VALUES PUBLISHED ON THE CITY’S WEBSITE. If
required by the City, Contractor must sign and submit with this Contract, the Certificate
of Use attached and by reference made a part of this Contract.
11.41 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. Contractor, its Subcontractors, Subconsultants and Suppliers, shall pay ail
Federal, state and local taxes applicable to its operation and any persons employed by
Contractor, its Subcontractors, Subconsultants and Suppliers, except as may be
othenvise provided in this Contract. Contractor shall, and also require its
Subcontractors, Subcpnsultants and Suppliers to hold the City harmless from any
responsibility for taxes, damages and interest, if applicable, contributions required under
(Revised.07/09/25)
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Page 59 of 65
Contract No. 2026-008-COS
Solicitation No. RFSQ-022025-236
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.
11.42 ISI^EL BOYCOTT/FORCED LABOR PROVISIONS
By executing this contract. Contractor 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 et
seq, as amended.
Pursuant to A.R.S. § 35-394, as amended. Contractor warrants and certifies that it does
not cun-ently, 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 labor or any goods
or services produced by the forced labor of ethnic Uyghurs in the People’s Republic
of China.
If Contractor becomes aware during the term of this Contract that Contractor is not in
compliance with this Article, Contractor shall notify the City wjthin five (5) business days
after becoming aware of the noncompliance. Failure of Contractor to provide a written
certification that Contractor has remedied the noricomplianoe 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 12 - DEFINITIONS
“Allowance” means an agreed amount by the City and Contractor for items which may be required
to complete the scope of work.
“As-built Documenf - “As-built in construction is equivaient to “as-is." Drawings deemed “as-
built” are final drawings that include all changes made during the actual construction process.
These drawings represent the actual existing constructed conditions as opposed to designs or a
proposed condition. The As-built Documents should be per A.R.S. § 32-152.
“Blueline or Blackline Prints” - Prints that allows comparison of document versions to show what
has been revised.
“City” means the City of Scottsdale. Arizona, an Arizona municipal corporation. Regulatory
activities handled by the City of Scottsdale Development Services, Planning and Fire
Departments or any other City department are not subject to the responsibilities of the City under
this Contract.
“City’s Representative” means the person designated in Article 7.4(A)(2). "City’s
Senior Representative" means the person designated in Article 7.4(A)(1).
“Constmction Coordinator" means a City employee who coordinates the daily construction
activities with Contractor, and with their inspection staff that performs quality control inspections,
enforces project plans and specifications and adopted City codes and ordinances.
(Revised 07/09/25)
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Contract No. 2026-008-COS
Solicitation No. RFSQ-022025-236
“Construction Documents” means the plans, specifications and drawings prepared by the Design
Professional after correcting for permit review requirements and incorporating addenda and
approved Job Order Adjustments.
“Construction Fee" means Contractor’s home office overhead and profit, whether at Contractor’s
principal or branch offices. This includes the home office costs and any limitations or exclusions
that may be included in the General Conditions for the construction phase.
“Contract” or “Job Order Contract” means this fully executed Contract between the City and
Contractor.
“Contract Administrator" means the person designated in Article 7.4(A) or designee. The Contract
Administrator will serve as Contractor’s primary point of contact with the City, monitor Contractor’s
performance, review and approve invoices, establish delivery schedules, and in conjunction with
Purchasing ensure Certificates of Insurance are current, conform to the requirements of this
Contract, and are in the City’s possession. Contractor will direct any reports and/or special
requests to the Contract Administrator.
“Contract Documents" means the following items and documents in descending order of
precedence executed by the City and Contractor: (1) Change Orders; (2) Job Order Adjustments;
(3) Contract Modifications; (4) Job Orders; (5) this Contract including all exhibits and attachments;
(6) Contractor’s Proposal (if any); (7) Contractor Statement of Qualifications.
“Contract Modification" means a specific written concurrence between the City and Contractor for
changes to this Contract consistent with the City of Scottsdale Procurement Code, as amended.
“Contract Price” means the amount dr amounts stated In Article 4 subject to any Contract
Modifications.
“Contract Services” means the services required by the Contract Documents.
“Contract Time(s)’’ means the time stated in Article 3, subject to Contract Modifications as
pennitted by this Contract.
“Contractor" is Contractor selected by the City to provide or procure construction services as
detailed in this Job Order Contract.
“Contractor Payment Request’ means the City form used by Contractor to request progress
payments for Job Orders in accordance with Article 6.
“Contractor’s Representative” means the person described in Article 7.4(B)(2).
"Contractor’s Senior Representative" means the person described in Article 7.4(B)(1).
“Day(s)” means calendar days unless otherwise specifically noted in the Contract Documents.
“Delay” means an unanticipated event or interference with the progress of a critical path work
activi^ being performed at the time that causes the completion date of the project to be extended.
Delays may be caused by the City, Contractor, third parties or Force Majeure events. Dejays may
be excusable, compensable, non-compensable or concurrent.
“Delay, Compensable” means delay that results from the City’s actions or inactions that entitle
Contractor to both a time extension and delay damages.
(Revised 07/09/25)
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Contract No. 2026-008-COS
Solicitation No. RFSQ,-022025-236
“Delay, Concurrent” means two (2) or more delays, within the same timeframe, both of which would
independently impact the Project Schedule. If one delay is caused by the City and the other by
Contractor, Contractor will generally be entitled to an excusable, non-compensable time extension, to
the degree the delays may “overlap."
“Delay, Excusable" means an unforeseeable delay caused by an event beyond the control and
without the fault or negligence of Contractor (including its Suppliers and Subcontractors).
Excusable delays may be compensable or non-compensable, depending upon whether the terms
of the Contract or the law allows recovery of delay costs. Unless otherwise shown, it will generally
be presumed that these delays are non-compensable.
“Delay. Non-Excusable" means a delay within the control of Contractor, its Suppliers and
Subcontractors, or a delay resulting from a risk taken by Contractor under the terms of the
Contract. Contractor will not be due any time extension or delay damages, and may be
responsible for paying to the City, actual or liquidated damages for the delay.
“Deliverables" means the work products prepared by Contractor in performing the scope of work
described in this Contract. Some of the major deliverables to be prepared and provided by
Contractor 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. Subcontractor procurement plan.
Subcontractor Contracts, Subcontractor bid packages. Supplier Contracts, and others as
indicated in this Contract or required by the Project Team.
“Design Professional” means a qualified, licensed design professional who furnishes design or
construction administration services.
“Differing Site Conditions” comply with M.A.G. Standard Specifications, Subsection 102.4.
“Effective Date” means the date that this Contract takes effect and becomes operative and
enforceable. The Effective Date of this Contract shall be the date on which it is executed by the
City, as noted at the beginning of this Contract.
“Field Order" means a written field directive prepared and signed by the City, directing a change
in work that may or may not include an adjustment in contract price or contract time.
“Final Acceptance” means the completion of a Job Order as prescribed in Article 3.5.
“Informational Submittals" - Submittals are required (common with construction projects) for the
architect and engineer to verify that the correct products and quantities will be installed on a
project.
“Job Order” or “Project' means a specific scope of Contract Services done pursuant to an
individual Job Order and includes a specific written Contract between the City and Contractor for
a Job Order including a Scope of Work, a Job Order Price, a Job Order Time and any special
conditions that may apply to be performed under this Contract. The Job Order includes the plans,
technical specifications, special provisions and Contractor’s proposal either by reference or
inclusion.
“Job Order Adjustmenf or “Adjustmenf means a written order signed by an authorized
representative of the City and which approves changes in the Work required under a Job Order,
the Job Order Price, or the Job Order Time consistent with the City of Scottsdale Procurement
(Revised 07/09/25)
Blueink Bundle ID: 8KiBug4DzT
Page 62 of 65
Contract No. 2026-008-COS
Solicitation No. RFSQ-022025-236
Code, as amended.
“Job Order Notice-to-Proceed,” (NTP) means a written notice given by the City to Contractor fixing
the date on which Contractor will start to perform Contractor's obligations under that individual
Job Order.
“Job Order Price” means the amount negotiated between Contractor and the City for an individual
Job Order that includes costs, overhead, bonding, insurance, profit and other costs as agreed to
and calculated on the Unit Prices, Cost-coefficient and Special Items as prescribed in Article 4.
“Job Order Time” or “Duration of the Work" means the number of Days from a Job Order Notic^
to-Proceed to Substantial Completion. The approved Job Order Time will be made part of this
Contract by executing an individual Job Order for that specific Project.
“Legal Requirements” means ail applicable federal, state and local laws, codes, ordinances,
rules, regulations, orders and decrees of any government or quasi-government entity having
jurisdiction over a Project or Site, the practices involved in a Project or Site, or any Work.
“Liquidated Damages” means an amount Contractor will pay in compliance with Article 3.6.
“Must” and “will” as used in this Contract are mandatory.
“Owner Agent,” “City’s Agenf or “Owner Representative” see “City’s Senior Representative.”
“Payment Request” means a monthly progress payment request that is based on a monthly
estimate of the dollar value of the Work completed.
“Product Data” means illustrations, standard schedules, performance charts, instructions,
brochures, diagrams and other information furnished by Contractor to illustrate materials or
equipment for some portion of the Work.
“Professional Certification” - Professional certification is a designation which indicates that a
person is qualified to perform a job or task. Professional certification can be trade certification or
professional designation.
“Project Record Documents” means the documents created pursuant to Article 1.9.
“Project Record Drawing Prints” - Set of current design drawings used by construction contractor
for reference during construction. These drawings are typically marked up during the construction
process and are used to develop the subsequent “as-built” dravi/ings.
“Punch List” means those minor items of Work to be completed before Final Acceptance which
do not prevent the Project from being used for the purpose for which it is intended and which will
not prevent the issuance of a Certificate of Occupancy.
“Samples” means physical examples, which illustrate materials, equipment or workmanship and
establish standards by which the Work will be judged.
“Schedule of Values (SOV)” means the Document specified in the construction phase, which
divides the Job Order Price into pay items, such that the sum of all pay items equals the Job Order
(Revised 07/09/25)
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Contract No. 2026-008-COS
Solicitation No. RFSQ-022025-236
Price for the construction phase Work, or for any portion of the Work having a separate specified
Job Order 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 Contractor or a Subcontractor, Sub-subcontractor, manufacturer, supplier or distributor
to iilustrate some portion of the Work.
"Site" means the land or premises on which a Job Order is located. Contractor will require ali
Subcontractors to include the street address of the Job Order in their contracts.
“Specifications” means those sections 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^ or “Subconsultant” means any person or entity retained by Contractor as an
independent contractor to perform a portion of the Contract Services and must include material
men and suppliers. All Subcontractors must be selected in accordance with the selection plan
stated in Article 1.13.
“Substantial Completion" means 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 it for its
intended purposes. This may indude, but is not limited to: (1) approval by the City Fire Marshall
and local authorities (Certificate of Occupancy); (2) issuance of elevator permit; (3) demonstration
to the City that all systems are in place, functional, and displayed to the City or its representative;
(4) installation of all materials and equipment; (5) City review and acceptance of ail systems; (6)
City review and acceptance of draft O&M manuals and record documents; (7) City operation and
maintenance training completed; (8) HVAC test and balance completed [provide minimum 30
days before projected substantial completion]; (9) completed landscaping and site work; and (10)
final cleaning.
“Supplier” means a manufacturer, fabricator, supplier, distributor, material man or vendor having
a direct contract with Contractor or any Subcontractor to furnish materials or equipment to be
incorporated in the construction phase work by Contractor or any Subcontractor.
“Work" means 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 services and documents as required
by the Contract Documents for the construction phase.
[END OF TEXT- SIGNATURE PAGE TO FOLLOW]
(Revlsed:07/09^)
BlueInk.Bundle ID; 8KiBug4DzT
Page 64 of 65
Contract No. 2026-008-COS
Solicitation No. RFSQ,-022025-236
CITY OF SCOTTSDALE, ARIZONA
CONTRACT NO. 2026-008-COS
CONTRACT
This Contract has been properly executed by the parties above named, on the date and year written above, to be
retained by the City Clerk.
Contractor agrees that this Contract, as awarded, is for the stated Work and understands that payment for the
Work will be made on the basis of the indicated amount, per the terms and conditions of this Contract.
CITY OF SCOTTSDALE, an
Arizona municipal corporation
By:.
Lisa Borowsky, Mayor
ATTEST:
CONTRAaOR:
GCON, inc., an Arizona Corporation
By:.
/'I
09:43 MST
Name: c:ha\A/n Rnt;pnhprgpr
Title: .■Chief Operating Officer
Ben Lane, City Cierk
RECOMMENDED:
Robert Franklin
Contract Administrator
■3/11/26 12:06 MST
3/11/26 14:19 MST
Jenn Myers, MPA, CPPO, NIGP-CPP, CPPB
Purchasing Director
George Woods
Safety & Risk Management Director
APPROVED AS TO FORM:
3/11 /26 14:44 MST
Luis E. Santaella, Interim City Attorney
By: Lydia Tulin, Assistant City Attorney
3/11/26 14:56 MST
(Revised 07/09/25)
Blueink Bundle ID: 8KiBug4DzT
Page 65 of 65
Contract No. 2026-008-COS
Solicitation No. RFSQ-022025-236
EXHIBITA
STATUTORY PERFORMANCE BOND
PURSUANT TO TITLE 34, CHAPTER 6,
OF THE ARIZONA REVISED STATUTES
(Penalty of this bond must be 100% of the Contract Amount)
KNOW ALL MEN BY THESE PRESENTS:
That,____________________________(hereinafter called the Principal) as Principal, and
__________________________, a corporation organized and existing under the laws of the State of
________________ with its principal office in the City of______________________ , (hereinafter called
the Surety), as Surety, are held and firmly bound unto the City of Scottsdale, County of Maricopa, State of
Arizona in the amount of____________ _____________ ^Dollars ($
). for the payment
whereof, the said Principal and Surety bind themselves, and their heirs, administrators, executors
successors and assigns, jointly and severally, firmly by these presents.
WHEREAS, the Principal has entered into a certain written contract with the City of Scottsdale, dated the
___ day of________________ , 2026, for Bid No. (bid number). Project No. (project number), (project
name), which contract is hereby referred to and made a part hereof as fully and to the same extent as if
copied at length herein.
NOW THEREFORE, the condition of this obligation is such, that if the Principal faithfully performs and fulfills
all of the undertakings, covenants, terms, conditions and Contracts of the contract during the original term
of the contract and any extension of the contract, with or vrithout notice to the surety, and during the life of
any guaranty required under the contract, and also performs and fulfills all of the undertakings, covenants,
terms, conditions and Contracts of all duly authorized modifications of the contract that may hereafter be
made, notice of which modifications to the surety being hereby waived, the above obligation is void.
Othenvise it remains in foil force and effect.
PROVIDED HOWEVER, that this Bond is executed pursuant to the provisions of Title 34, Chapter 6,
Arizona Revised Statutes, and all liabilities on this Bond will be determined in accordance with the
provisions of Title 34, Chapter 6, Arizona Revised Statutes, to the extent as if it were copied at length in
this Contract The prevailing party in a suit on this bond will recover as part of the judgment reasonable
attorney fees that may be fixed by a Judge of the Court. The performance under this bohd is limited to the
construction to be performed under the contract and does not include any design services, preconstruction
services, financial services, maintenance services, operations services or any other related services
included in the contract
WITNESS our hands the.
.day of.
2026.
PRINCIPAL
BY;
SURETY
(SEAL)
AGENCY OF RECORD
AGENCY ADDRESS
(Revised 03/17/25)
Blueink Bundle ID; 8KIBug4DzT
Page 1 of 1
Contract No. 2026-008-COS
Solicitation No. RFSQ-022025-236
EXHIBITS
STATUTORY PAYMENT BOND
PURSUANT TO TITLE 34, CHAPTER 6,
OF THE ARIZONA REVISED STATUTES
(Penalty of this bond must be 100% of the Contract Amount)
KNOW ALL MEN BY THESE PRESENTS;
That,
state of
(hereinafter called the Principal), as Principal, and
. a corporation organized and existing under the laws of the
with its principal office in the City of
(hereinafter calied the Surety), as Surety, are held and firmly bound unto the City of Scottsdale,
County of Maricopa, State of Arizona, in the amount of ___________________ _ Dollars
($_______________ ), for the payment whereof, the said Principal and Surety bind themselves,
and their heirs, administratore, executors, successors and assigns, jointly and severally, firmly by
these presents.
WHEREAS, the Principal has entered into a certain written contract with the City of Scottsdale
dated the____ day of________________ , 2026, for Bid No. (bid number). Project No.
(project number), (project name), which contract is hereby referred to and made a part hereof as
fully and to the same extent as if copied at length herein.
NOW, THEREFORE, the condition of this obligation is such that if the Principal promptly pays all
monies due to all persons supplying labor or materials to the Principal or the Principal's
subcontractors in the prosecution of the work provided for in the contract, this obligation is void.
Othen/vise it remains in full force and effect.
PROVIDED, HOWEVER, that this bond is executed pursuant to the provisions of Title 34, Chapter
6, of the Arizona Revised Statutes, and all liabilities on this bond will be determined in accordance
with the provisions, conditions and limitations of Title 34, Chapter 6, Arizona Revised Statutes, to
the same extent as if they were copied at length in this Contract.
The prevailing party in a suit on this bond will recover as a part of the Judgment reasonable
attorney fees that may be fixed by a Judge of the Court.
WITNESS our hands the
. day of.
, 2026.
PRINCIPAL
BY:
SURETY
(SEAL)
AGENCY OF RECORD
AGENCY ADDRESS
(Revised 03/17/25}
Page 1 of 1
Blueink Bundle ID: 8KiBug4D2T
5 '
X
9
V'
Contract No. 2026-009-COS
Solicitation #RFSQ-022025-236
eiTY OF SCOTTSDALE
JOB ORDER CONTRACT
N0.2026-009>COS
ATTACHMENT 5
(Revised 03/17/25)
RltioTnl/^'RiinHIo TH* anr^Hi iHV/l uiH
Contract No. 2026-009-COS
Solicitation #RFSQ-022025-236
TABLE OF CONTENTS
RECITALS....................................... ..................................... ........................................... 1
ARTICLE 1 - CONTRACTOR’S SERVICES AND RESPONSIBIUTIES............. ....................1
ARTICLE 2 - CITY’S SERVICES AND RESPONSIBILITIES.........
..............18
ARTICLE 3 - CONTRACT TIME AND JOB ORDER TIME...........
......................... ..........21
ARTICLE 4- CONTRACT PRICE AND JOB ORDER PRICE................................................23
ARTICLE 5 - CHANGES TO THE CONTRACT PRICE AND TIME....................... ..................25
ARTICLE 6 - PROCEDURE FOR PAYMENT ............................................................. .......30
ARTICLE 7 - CLAIMS AND DISPUTES................................. ............................................ .34
ARTICLE 8 - SUSPENSION, TERMINATION AND CANCELLATION................ .............. 36
ARTICLE 9 - INSURANCE AND BONDS.............. ........... ....................... ............ .....39
ARTICLE 10 - INDEMNIFICATION................................... .... .........46
ARTICLE 11 - GENERAL PROVISIONS................. .................. .........................50
ARTICLE 12 - DEFINITIONS ................ .........................................................................61
EXHIBIT A - STATUTORY PERFORMANCE BOND
EXHIBIT B - STATUTORY PAYMENT BOND
(Revised 03/17/25)
i
rn.
lOX/i n irl
Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
CITY OF SCOTTSDALE
CONTRACT NO. 2026-009-COS
THIS CONTRACT. (“Contracf) is entered into this
day of
2026.
(“Effective Date”) between the City of Scottsdale, an Arizona municipal corporation (“City”) and
Sun Eagle Corporation, an Arizona Corporation. ("Contractor”).
RECITALS
A.
The Mayor of the City of Scottsdale. Arizona, is authorized and empowered by the
provisions of the City Charter to execute contracts for construction and related services.
B.
The City intends to contract for construction and related services with Contractor for one
or more individual Job Orders.
C.
Contractor has represented to the City the ability to provide or procure the required
construction and related services and. based on this representation, the City engages
Contractor for these services.
FOR AND IN CONSIDERATION of the mutual covenants and considerations contained in this
Contract, it is agreed by the City and Contractor as follows:
ARTICLE 1 - CONTRACTOR’S SERVICES AND RESPONSIBILITIES
1.1. GENERAL SERVICES
A.
Contractor will furnish any and all labor, materials, equipment, transportation,
utilities, services and facilities specified in the individual Job Order for which it is
issued a Job Order Notice-to-Proceed for Work in accordance with this Contract.
The City may determine it is in its beit interest to furnish materials and equipment
for an individual Job Order in accordance with the Job Order.
B.
The Work will be performed in a good, workmanlike and substantial manner and
to the satisfaction of the City Engineer and under the monitoring of the City
Engineer, or designee, with the care and skill of a qualified contractor in Scottsdale,
Arizona.
1. Minor design services may be required for some Job Orders. For those
Job Orders that rhay require minor design services. Contractor will seek
the services of an Arizona registered architect or engineering professional
to prepare plans for permitting. The procurement of minor design services
will be in accordance with the City's procurement procedures and code. If
the services of a design professional are used, the design professional
rnust maintain at least $1,000.000 Professional Liability Coverage.
2. All documents prepared by Contractor are subject to review by the City.
Review by the City is for the benefit of the City only, is not intended to
for the benefit of any other person and does not relieve Contractor from the
(Revised 07/09/25)
Page 1 of 66
. . .
.... Jl _ rrs. _
A.
Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
professional liability associated with the documents they have prepared.
3. Contractor’s Representative shall be reasonably available to the City and
will have the necessary expertise and experience required to supervise the
Contract Services. A Contractor’s Representative will be assigned for each
Job Order. Contractor’s Representative will communicate regularly with the
City and will be vested with the authority to act on behalf of Contractor.
C. The City is a member of $AVE cooperative purchasing group. $AVE includes the
State of Arizona, Maricopa County, many Phoenix metropolitan area
municipalities, and many K-12 unified school districts. Under $AVE Cooperate
Purchasing Agreement, and with the concurrence of successful Respondents
under this solicitation, a member of $AVE may access a contract resulting from
this solicitation issued by the City. By signing the JOC Contract, Contractor agrees
to allow other $AVE members the ability to purchase their needs and “use" this
contract for JOC requirements.
1.2. GOVERNMENT APPROVALS AND PERMITS
Unless otherwise provided. Contractor will obtain or assist the City in obtaining all
necessary permits, approvals and licenses required for the prosecution of the Work
from any government or quasi-government entity having jurisdiction over the
Project. Contractor is responsible for obtaining payment for the necessary
environmental permits or file the necessary environmental notices.
Copies of these permits and notices must be provided to the City's Representative
before starting the permitted activity. This provision does not constitute an
assumption by the City of an obligation of any kind for violation of the permit or
notice requirements.
The City is responsible for the City of Scottsdale review and permit(s) fees for
building and demolition permits. The City will pay City review fees for grading and
drainage, water, sewer, storm water management, and landscaping. The City will
also pay for City utility design fees for permanent services.
Contractor is responsible for all other permits and review fees not specifically listed
in Article 1.2(C) above.
Contractor is responsible for the cost of construction-related water meter(s), water
and sewer taps, fire lines and taps, and all water bills on the project meters until
Substantial Completion of the Project. Arrangements for construction water will be
Contractor's responsibility. Construction water does not include “test water”
required to complete new water line pressure tests.
The M.A.G. Standard Specification 107.12 is modified to read as follows:
“Contractor, at its own expense, is responsible for the acquisition of any necessary
temporary easements for construction purposes, storage, maintenance, and
refuse haul-off as indicated upon the plans, which are required in addition to
existing easements or rights-of-way secured by the City.”
B.
C.
D.
E.
F.
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Contract No. 2026-009-COS
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1.3. PRE-CONSTRUCTION CONFERENCE
A.
After issuance of a Job Order and before the commencement of any Work on any
individual Job Order, a pre-construction conference may be scheduled.
B.
The purpose of this conference is to establish a working relationship between
Contractor, design firms, utility firms, and various City departments. The agenda
will include critical elements of the work schedule, submittal schedule, level of
Record Drawings required, cost breakdown of major lump sum items, payment
application and processing, coordination with the utility firms involved, and
emergency telephone numbers for all representatives involved in the course of
construction.
C.
At a minimum, attendees will include Contractor Representative, who is authorized
to execute and sign documents on behalf of the firm, the job superintendent, and
Contractor’s safety officer.
D.
The Job Order Notice-to-Proceed date wili be established.
E.
Contractor will provide a Baseline Project Schedule indicating duration, manpower
and equipment resources required to complete all major work activities. The City
and Design Team will review and comment on the Baseline Project Schedule.
Contractor will revise the Baseline Project Schedule to the satisfaction of the City’s
Representative. No work will begin until the City accepts the Baseline Project
Schedule.
F.
Contractor will submit a Schedule of Values based on the work and bids accepted
from selected Subcontractors. These values will reflect the actual labor time,
materials, profit and overhead for the Work or in accordance with Contractor’s price
book.
1.4. CONTROL OF THE WORK
Contractor wiil properly guard and protect all partially finished work and will be
responsible for the Work until the entire Job Order is completed and accepted by the
City. Any payment for completed portions of the Work will not release Contractor from
this responsibility; however, he will turn over the entire Work in full compliance with the
specifications or Job Order before final settlement is made. In case of suspension of
the Work for any cause whatever, Contractor is responsible for the Project and will take
all precautions necessary to prevent damage to the Project and will erect any necessary
temporary structures, signs, or other facilities at no cost to the City.
A.
B.
After all Work under the Job Order is completed. Contractor will remove all loose
concrete, lumber, wire, reinforcing, debris and other materials not incorporated in
the Work from the site of the Project.
Unless the Job Order states that it is the responsibility of the City or a separate
contractor. Contractor will provide through itself or Subcontractors the necessary
supervision, labor, inspection, testing, start-up, material, equipment, machinery,
temporary utilities, other temporary facilities, temporary fencing, roll-offs, and dust
(Revised 07/09/25)
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Contract No. 2026-009-COS
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control to permit Contractor to complete the Work consistent with the Job Order.
C.
Contractor will perform all construction activities efficiently and with the requisite
expertise, skill and competence to satisfy the requirements of the Job Order.
Contractor will at all times exercise complete and exclusive control over the means,
methods, sequences and techniques of construction.
D.
Survey stakes and marks required for the completion of the construction shown on
the plans and described in the specifications will be furnished by Contractor.
E.
Contractor, its designee or Contractor’s Superintendent will be present at the Work
at all times that construction activities are taking place.
1. All elements of the Work, such as concrete work, pipe work, etc., will be
under the direct supervision of a foreman or his/her designated
representative on the Site who will have the authority to take actions
required to properly carry out that particular element of the Work.
2. In the event of noncompliance with Article 5.1, the City may require
Contractor to stop or suspend the Work in whole or in part.
F.
Where the Job Order requires that a particular product be installed or applied by an
applicator approved by the manufacturer, it is Contractor’s responsibility to ensure
the Subcontractor employed for that portion of the Work is pre-approved by the
manufacturer.
G.
Before ordering materials for or doing the Work. Contractor and each
Subcontractor will verify measurements at the Site and will be responsible for the
correctness of these measurements. No extra charge or compensation will be
allowed because of differences between actual dimensions and the dimensions
indicated on the drawings; differences, which may be found, will be submitted to
the City for resolution before proceeding with the Work.
H.
Contractor will take field measurements and verify field conditions and carefully
compare these field measurements, conditions and other information known to
Contractor with the Job Order before starting activities. Errors, inconsistencies or
omissions discovered will be immediately reported to the City.
I.
Contractor will establish and maintain all building and construction grades, lines,
levels, and benchmarks, and will be responsible for the accuracy and protection of
these items. This portion of the Work will be performed or supervised by an Arizona
licensed civil engineer or surveyor.
J.
Any person employed by Contractor or any Subcontractor who. in the opinion of the
City, does not perform his/her portion of the Work in a proper, skillful and safe
manner or is intemperate or disorderly will, at the written request of the City, be
removed from the Work by Contractor or Subcontractor employing this person, and
will not be employed again in any portion of the Work without the written approval of
the City. Contractor or Subcontractor will hold the City harmless from damages or
claims, which may occur in the enforcement of this Article.
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Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
K.
Contractor assumes responsibility for the proper performance of the Work of
Subcontractors and any acts and omissions in connection with this performance.
Nothing in the Contract Documents is intended or considered to create any legal
or contractual relationship between the City and any Subcontractor or Sub-
Subcontractor, Including but not limited to any third-party beneficiary rights.
L.
Contractor will coordinate the activities of all Subcontractors. If the City performs
other work on the Project or at the Site with separate contractors under the City’s
control. Contractor agrees to reasonably cooperate and coordinate its activities
with those of the separate contractors so that the Project can be completed In an
orderly and coordinated manner without unreasonable disruption.
M.
On a daily basis. Contractor will prepare a Contractor’s Daily Report. The City’s
CPM Project Inspector or the Public Works Project Coordinator will provide a
sample report format to Contactor. The report will detail the activities that took
place during the course of the day, all equipment utilized and the number of hours
operated, and all personnel on the Site including Subcontractors. Unless
otherwise arranged, the Daily Reports will be submitted on a daily basis to the
Ci^s CPM Inspector or the Public Work’s Project Coordinator. The Daily Reports
will also be made available to the City’s Representative upon request. Failure to
provide Daily Reports as arranged or requested above will result in the retention
of monthly progress payments until the Reports are brought up to date.
N.
In the event of noncompliance with this Article 1.4, the City may require Contractor
to stop or suspend the construction in whole or in part. Any suspension due to
Contractor’s noncompiiance will not be considered a basis for an increase in the
Job Order Price or extension of the Job Order Time.
1.5. CONTROL OF THE WORK SITE
A.
Throughout all phases of construction, including suspension of the Work,
Contractor will keep the Site reasonably free from debris, trash and construction
wastes to permit Contractor to perform its consthjction services efficiently, safely
and without interfering with the use of adjacent land areas. Upon Substantial
Completion of the Work, or a portion of the Work, Contractor will remove all debris,
trash, construction waste, materials, equipment, machinery and tools arising from
the Work or applicable portions of it to permit the City to occupy the Project or a
portion of the Project for its intended use.
B.
Dust Control. Contractor will take whatever steps, procedures or means required
to prevent abnomial dust conditions due to his construction operations in
connection with this Contract. The dust control measures will be maintained at all
times during construction of the Project(s) to the satisfaction of the City in
accordance with the requirements of the Maricopa County Health Department Air
Pollution Control Regulations and City of Scottsdale Supplement to M.A.G.
Standard Specifications together with applicable provisions of Federal and State
Law.
C.
Dust Control Coordinator. At any City construction site of 5 acres or more of
(Revised 07/09/25)
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Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
disturbed surface area, subject to a permit issued by a Control Officer requiring
control of PM-10 emissions from dust generating operations, Contractor must have
at all times at the Site, at least one (1) Dust Control Coordinator trained in
accordance with the requirements of A.R.S. §49-474.05 during primary dust
generating operations that is related to the purposes for which the Dust Control
Permit was issued. The Dust Control Coordinator must have full authority to
ensure that dust control measures are implemented at the Site, including authority
to conduct inspections, deploy dust suppression resources, and modify or
shutdown activities as needed to control dust. The Dust Control Coordinator must
be responsible for managing dust prevention and dust control on the Site, including
the use of leaf blowers and street sweeping equipment. The Dust Control
Coordinator must have a valid Dust Training Certification Identification Card readily
accessible on the Site while acting as the Dust Control Coordinator.
The requirements described in the above Article do not apply if all three (3) of the
following circumstances are present:
1. The area of disturbed surface area is less than five (5) acres.
2. The previously disturbed areas are stabilized in accordance with the
requirements of any applicable County rules.
3. Contractor with the Dust Control Permit provides notice of the acreage
stabilized to the County Control Officer.
On sites with greater than one (1) acre of disturbed surface area. Contractor
holding a Dust Control permit issued by a County Control Officer, who is required
to obtain a single permit for multiple noncontiguous sites that is required to control
PM-10 emissions from dust generating operations must have at least one (1)
individual who is designated as a Dust Control Coordinator. The Dust Control
Coordinator must have a valid Dust Training Certification Identification Card readily
accessible on the Site while acting as the Dust Control Coordinator. The Dust
Control Coordinator must be present on Site at all times during primary dust
generating activities that are related to the purposes for which the permit was
issued.
A Subcontractor who is engaged in dust generating operations at a Site that is
subject to a Dust Control Permit issued by a County Control Officer and that
requires the control of PM-10 emissions from dust generating operations must
register with the County Control Officer. The Subcontractor must have its
registration number readily accessible on the Site while conducting any dust
generating operations.
D.
Storage on Site. Only materials and equipment, which are to be used directly in
the Work, will be brought to and stored on the Site by Contractor. When equipment
is no longer required for the Work, it will be removed promptly from the Site.
Protection of construction materials and equipment stored at the Site from weather,
theft, damage and all other adversity is solely the responsibility of Contractor.
E.
Waste Products. Contractor is responsible for the cost to dispose of all waste
products including excess earth material which will not be incorporated into the
(Revised 07/09/25)
Page 6 of 66
trw.
F.
Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
Work under this Contract The waste product referred to will become the property
of Contractor. Contractor will provide for the legal disposal at an appropriate off
site location for all waste products, debris, etc., and will make necessary
arrangements for its disposal. Any disposal/dumping of waste products or unused
materials will conform to applicable Federal, State and Local Regulations.
Contractor will supervise and direct the Work. Contractor will be solely responsible
for the means, methods, techniques, sequences and procedures of construction.
Contractor will employ and maintain on the Site a qualified supervisor or
superintendent who will have been designated in writing by Contractor as
Contractor’s Representative. The Contractor’s Representative will have full
authority to act on behalf of Contractor and all communications given to the
Representative will be as binding as if given to Contractor. The Representative
will be present on the Site at all times as required to perform adequate supervision
and coordination of the Work. Where appropriate all Provisions of M.A.G., Section
105.5, will be applicable.
G.
Abnormal Weather, in the everit of abnormal weather conditions^ such as
windstorms, rainstorms, etc.. Contractor will immediately Inspect the Work and Site
and take all necessary actions to insure public access and safety are maintained.
H.
Damage to Property at the Site. Contractor will be responsible for any and all
damage or loss to property at the Site, except to the extent caused by the acts or
omissions of the City or its representatives, employees or agents and not covered
by insurance. The costs and expenses incurred by Contractor under this Article
will be paid as a Cost of the Work to the extent that these costs and expenses are
in excess of or are not covered by required insurance, and to the extent of any
deductibles, but they will not increase the Job Order Price.
I.
Damage to Property of Others. Contractor will avoid damage, as a result of
Contractor’s operations, to existing sidewalks, curbs, streets, alleys, pavements,
utilities, adjacent property, the work of separate contractors and the property of the
City. Contractor will repair any damage caused by the operations of Contractor,
and these costs will be paid as a Cost of the Work to the extent that the costs and
expenses are in excess of or are not covered by required insurance, and to the
extent of any deductible, but they will not increase the Job Order Price;
J.
Failure of Contractor to Repair Damage. Within ten (10) days written notice to
Contractor by the City, if Contractor fails to commence the repair of damage to
property as provided In Articles 1.5(H) and 1.5(1), and diligently pursue the repair,
then the City may elect to repair the damages at its own expense and to deduct
from payments due or to become due to Contractor, amounts paid or incurred by
the City in correcting the damage (provided Contractor has not commenced such
repair during the 10 day notice period).
1.6. SHOP DRAWINGS, PRODUCT DATA AND SAMPLES
A. Shop Drawings, Product Data, Samples and similar submittals are not Contract
Documents. The purpose of their submittal is to demonstrate for those portions of
the Work for which submittals are required the way Contractor proposes to
(Revised 07/09/25)
Page 7 of 66
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B.
C.
D.
E.
F.
G.
H.
Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
conform to the Information given and the design concept expressed in the Contract
Documents. Contractor will review, approve and verify that all submittals meet the
intent of the Contract Documents.
Three (3) copies of each Shop Drawing, Product Data, Sample, and similar
submittals required by the Contract Documents will be delivered to the City in
compliance with the approved schedule so as to cause no delay in the Work or in
the activities of the City or of separate contractors. Submittals made by Contractor,
which are not required by the Contract Documents, may be returned without
action.
Contractor will perform no portion of the Work requiring submittal and review of
Shop Drawings, Product Data, Samples, or similar submittals until the respective
submittal has been approved by the City. All Work will be in compliance with
approved submittals. Contractor will not be relieved of responsibility for any errors
or omissions in Shop Drawings, Product Data, Samples, or similar submittals by
the City's approval. Deviation from the original specifications will be specifically
noted bn the submittal to the City and the City will be allowed seven (7) days to
approve or reject any deviations.
By approving, verifying and submitting Shop Drawings, Product Data, Samples
and similar submittals. Contractor represents that Contractor has detennined and
verified materials, field measurements and field construction criteria, or will do so,
and has checked and coordinated the information contained within the submittals
with the requirements of the Work and of the Job Order.
Contractor will not be relieved of responsibility for deviations from requirements of
the Job Order by the City's approval of Shop Drawings, Product Data, Samples or
similar submittals unless Contractor has specifically informed the City in vvriting of
the deviation at the time of submittal and the City has given written approval to the
specific deviation. Contractor will not be relieved of responsibility for errors or
omissions in Shop Drawings, Product Data, Samples, or similar submittals by the
City’s approval.
Contractor will direct specific attention, in writing or on resubrriitted Shop Drawings,
Product Data, Samples, or similar submittals, to revisions other than those
requested by the City on previous submittals.
Informational submittals upon which the City is not expected to take responsive
action may be so identified in the Contract Documents.
When professional certification of performarice criteria of mateiials, systems or
equipment is required by the Job Order, the City will be entitled to rely upon the
accuracy and completeness of the calculations and certifications.
1.7. QUALITY CONTROL, TESTING AND INSPECTION
A. Inspection. The City’s Inspectors may be stationed on the Site to report to the
City’s Representative, or designee, as to the progress of the Work. The City’s
Representative, or designee, may also report as to the manner in which the Work
(Revised 07/09/25)
Page 8 of 66
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Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
is being performed and report whenever it appears that material furnished or Work
performed by Contractor fails to fulfill the requirements of the specifications, this
Contract or the Job Order. The Inspector may direct the attention of Contractor to
any failure or infringement but this inspection will not relieve Contractor from any
obligation to furnish acceptable materials or to provide completed construction that
complies with the Contract or the Job Order in every way. The Inspector is for the
purpose of assisting the City’s Representative and should not be Confused with an
inspector with a City regulatory agency or with an inspector from a laboratory under
Article 1.8.
B.
In case of any dispute arising between the Inspector and Contractor as to material
furnished or the manner of performing the Work, the Inspector will have the
authority to reject materials or suspend the Work until the question and issue can
be referred to and decided by the City, inspectors are not authorized to revoke,
alter, enlarge, relax, or release any requirements of the specifications. Inspectors
will in no case act as foremen or perform other duties for Contractor or interfere
with the management of the Work by Contractor.
C.
Inspection or supervision by the City’s Representative, or designee, will not be
considered as direct control of an individual worker or the Work. The direct control
will be solely the responsibility of Contractor.
D.
The furnishing of these services for the City will not make the City responsible for
or give the City control over constnjction means, methods, techniques, sequenced
procedures or for safety precautions or programs or responsibility for Contractor’s
failure to perform the Work in compliance with the Contract Documents.
1.8. MATERIALS TESTING
All materials used in the Work will be new and unused, unless otherwise noted, and will
meet all quality requirements of the Job Order.
A.
All construction materials to be used on the Work or incorporated into the Work,
equipment, plant, tools, appliances or methods to be used in the Work may be
subject to the inspection and approval or rejection of the City. Any materials
rejected by the City Will be removed immediately and replaced in a manner
acceptable to the City without increasing the Job Order Price.
B.
The procedures and methods used to sample and test material will be determined
by the City. Unless otherwise specified, samples and tests will be made in
compliance with the following: The City of Scottsdale Minimum Sampling
Frequency Guide, the City of Scottsdale Material Testing Manual and the standard
methods of AASHTO or ASTM, DSPM and MAG supplements.
C.
The City will select a pre-qualified City or Independent Testing Laboratory and will
pay for initial City Acceptance Testing.
1. When the first and subsequent tests indicate noncompliance with the Job
Order, the cost associated with that noncompliance will be incurred by
Contractor without increasing the Job Order Price.
(Revised 07/09/25)
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Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
2. When the first and subsequent tests indicate noncompliance with the Job
Order, all retesting wili be performed by the same testing agency. The cost
associated with the noncompliance will be incurred by Contractor without
Increasing the Job Order Price.
3. Contractor will cooperate with the selected testing laboratory and all others
responsible for the testing and inspecting of the Work and will provide them
access to the Work at all times.
D.
At the option of the City, materials may be approved at the source of supply before
delivery is started.
E.
Code compliance testing and inspections required by codes or ordinances, or by
a plan approval authority, and which are made by a legally constituted authority,
will be incurred by Contractor without increasing the Job Order Price, unless
otherwise provided in the Job Order.
F.
Contractor’s convenience and quality control testing and inspections will be the
sole responsibility of Contractor and incurred by Contractor without increasing the
Job Order Price..
G.
Ail soils and materials testing will be performed and paid for by the City. The City
will order tests and distribute test results for all construction areas. The City wilt
be responsible for ordering testing and will distribute test results within 24 hours of
receipt.
1.9. PROJECT RECORD DOCUMENT/AS BUILTS
A. During the construction period, Contractor will maintain at the Site a set of Blueline
or Blackline Prints of the Construction Document drawings and Shop Drawings for
Project Record Document purposes.
1. Contractor will mark these drawings to indicate the actual installation where
the installation varies appreciably from the original Construction
Documents. Contractor will give particLjlar attention to information on
concealed elements, which would be difl^cult to identify or measure and
record later. Items required to be rnarked include but are not limited to:
Dimensional changes to the drawings.
Revisions to details shown on drawings.
Depths of foundations below first floor.
Locations and depths of underground utilities.
Revisions to routing of piping and conduits.
Revisions to electrical circuitry.
Actual equipment locations.
Duct size and routing.
Locations of concealed internal utilities.
Changes made by Adjustment.
Details not on original Contract Drawings.
(Revised 07/09/25)
DliiaTnlr Riii^HIc TH*
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Page 10 of 66
Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
2. Contractor will mark completely and accurately Project Record Documents,
prints of Construction Documents or Shop Drawings; whichever is the most
capable of indicating the actual physical condition. Where Shop Drawings
are marked, show cross-reference on the Construction Documents
location.
3. Contractor will rhark sets of Project Record Drawings Prints with red
erasable colored pencil.
4. Contractor will note Request for Information (RFI) Numbers, American
Standards Institute (ASI) Numbers and Adjustment Numbers, etc:, as
required to identify the source of the change to the Construction
Documents.
5. Contractor will at the time of Substantial Completion, submit Project Record
Drawing Prints and Shop Drawings to the City or its representative for
review and comment.
B. Immediately upon receipt of the reviewed Project Record Drawings from the City,
Contractor will correct any deficiencies or omissions to the drawings and prepare
the following for submission to the City:
1. A complete set of PDF electronic files of all Project Record Drawing Print
prepared in Microstation format compatible with City of Scottsdale CADD
requirements. If a Design Professional is contracted with, the Design
Professional will provide files of the original Construction Documents to
Contractor for use in preparing these final Project Record Documents, or
Contractor may contract with the Design Professional to revise and update
the electronic drawing files. Each drawing will be clearly marked with “As-
Built Documenf and shall be certified by an Arizona Registered Land
Surveyor.
2. A complete set of As-Built reproducible mylars from the final Microstation
drawings and an electronic pdf file on CD are required.
3. The original copy of the Project Record Drawings with redline mark-ups.
1.10. PROJECT SAFETY
A. The Occupational Safety and Health Act (OSHA) and the City of Scottsdale loss
control procedures are the minimum standard for safety and environmental
protection and must be fully complied with at all times. All Work will be performed
in compliance with all applicable federal, state and local laws, ordinances, statutes,
rules and regulations including ADOSH policies and procedures^ Contractor may
be required to attend a City safety briefing session at the pre-construction meeting.
The session will be attended by the Contract Administrator, the designated Risk
Management staff, and a Contractor’s Representative. Contractors that violate the
aforementioned rules and regulations may be subject to job shutdown and or
removal from City facilities.
(Revised 07/09/25)
Page 11 of 66
Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
B.
The Risk Management Division makes available a packet which contains the City’s
OSHA compliance guidelines, emergency evacuation, the City’s safety and health
plan, and other safety information.
C.
Contractor will conduct tailgate safety meetings regularly to ensure that safety on
the job is given priority.
D.
Contractor wiil contact the City’s Representative and the Risk Management
Division within twenty-four (24) hours of the occurrence of an accident or injury
arising out of Contractor’s Work under this Contract.
E.
Contractor employees are encouraged to abate or remedy any unsafe act or
condition, which may arise in the course of Contractor’s Work under this Contract.
F.
The City reserves the right to conduct safety audits at the Site and stop unsafe
acts at any time. In addition, the City will be notified within four (4) hours should
any OSHA inspection occur at a Site.
G.
Contractor recognizes the importance of performing the Work in a safe manner so
as to prevent damage, injury or loss to:
1. All individuals at the Site, whether working or visiting;
2. The Work, including materials and equipment incorporated into the Work
or stored On-Site or off-Site; and
3. All other property at the Site or adjacent to the Site.
H.
Contractor assumes responsibility for implementing and monitoring ali safety
precautions and programs related to the performance of the Work.
I.
Contractor will, before commencing construction, designate a Safety
Representative with the necessary quaiifications and experience to supervise the
implementation and monitoring of ail safety precautions and programs related to
the Woric. Unless otherwise required by ^e Contract Documents, Contractor’s
Safety Representative wili be an individual stationed at the Site who may have
responsibilities on the Project in addition to safety.
J.
Contractor must provide OSHA 300A Summary log information including total
recordable cases, total case rates, and lost workday incident rates for the past two
(2) caiendar years. The Safety Representative shall make routine daily
inspections of the Site and shall hold weekly safety meetings with Contractor’s
personnel. Subcontractors and others as applicable.
k. Contractor will immediately report in writing any safety-related injury, loss, damage
or accident arising from the Work to City’s Representative and, to the extent
mandated by Legal Requirements, to all government or quasi-governmental
authorities having jurisdiction over safety-related matters involving the Project or
the Work.
(Revised 07/09/25)
Page 12 of 66
Contract No. 2026-009-COS
Solicitation No. RFSCi-022025-236
L.
Contractor’s responsibility for safety under this Article 1.10 is not intended in any
way to relieve Subcontractors and Sub-Subcontractors of their own contractual
and legal obligations and responsibility for:
1. Complying with all Legal Requirements, including those related to health
and safety matters; and
2. Taking all necessary measures to implement and monitor all safety
precautions and programs to guard against injury, losses, damages or
accidents resulting from their performance of the Work.
M.
Contractor and Subcontractors must agree to provide Material Safety Data Sheets
for all substances that are delivered to the City of Scottsdale, that come under the
Occupational Safety and Health Administration Toxic and Hazardous Substances
- Hazard Communication Standard. 29 CFR 1910.1200 Hazard Communication
(reference Occupational Safety and Health Standards, Subpart Z Toxic and
Hazardous Substances - Hazardous Communication Standard).
All Contractors and all Subcontractors using chemicals on City of Scottsdale
property shall use only the safest chemicals, with the least harmful ingredients.
These chemicals shall be approved for use by a City of Scottsdale representative
before bringing them on the property.
Contractor and all Subcontractors shall make every attempt to apply approved
chemicals with highly volatile organic compounds, outside of working hours.
Adequate ventilation will be used at all times during the application of these
approved chemicals.
In conjunction with the Occupational Safety and Health Standards. Subpart Z Toxic
and Hazardous Substances - Hazard Communication Standard, 29 CFR
1910.1200 Hazard Communication, Contractor and Subcontractors are informed
of the presence of (or possible presence of) chemicals in the area where the Work
requested will be performed. It is the responsibility of Contractor or all selected
Subcontractors to contact the City of Scottsdale for specific information relative to
the type of chemicals present and location of appropriate Material Safety Data
Sheets.
Unless included in the Work, if Contractor encounters onsite material which he
reasonably believes to contain asbestos, polychlorinated biphenyl (PCB), or other
hazardous substances or materials regulated by Public Health Laws, it will
immediately stop Work and report the condition to the City.
If the material is found to contain asbestos, PCB or other hazardous substances
or materials regulated by Public Health Laws, Contractor will not resume Work in
the affected area until the material has been abated or rendered harmless.
Contractor and the City may agree, in writing, to continue Work in non-affected
areas onsite. An extension of the Contract Time may be granted as provided in
Article 5.
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Contract No. 2026-009-COS
Solicitation No. RFSQ-022d25-236
1.11. WARRANTY
The provisions of M.A.G.. Section 108.8 will apply with the following additional
requirements:
1. Should Contractor fail to begin repairs or corrective work within fourteen
(14) calendar days after receipt of written notice from the City, the City may
perform the necessary work and Contractor agrees to reimburse the City
for the actual cost.
2. The warranty period On any part of the Work repaired or replaced will be
extended for a period of one (1) year from the date of the repair or
replacement.
3. This warranty will not apply to damage caused by normal Wear and tear or
by acts beyond Contractoi^s control.
A.
Contractor’s warranty obligation excludes defects caused by abuse, alterations, or
failure to maintain the Work by persons other than Contractor or anyone for whose
acts Contractor may be liable.
B.
Contractor's wamahty obligation will be for one (1) year.
C.
Nothing in this warranty is intended to limit any manufacturer’s warranty which
provides the City with greater warranty rights than those found in this Article 1.11
or the Contract Documents. Contractor will provide the City with all manufacturers’
warranties upon Substantial Completion of each Job Order.
1.12. CORRECTION OF DEFECTIVE WORK
A. Contractor agrees to comect any Work that is found to not be in confonnance with
the Contract Documents, including that part of the Work subject to Article 1.11
above, within a period of one (1) year from the date of Substantiai Completion of
the Work or any portion of the Work, or within any longer period to the extent
required by the Contract Documents. Ail remdval/replacement work, as directed
by the City to Contractor, in compliance with this Coritract, MAG standards and
City codes will have cost determinations by the City and be issued as a Job Order
Adjustment to the Project. A Progress Payrhent, Or partial or entire use or
occupancy of the Project by the City will not constitute acceptance of Work not in
accordance with the Contract Documents.
During the Work, Contractor shall take meaningful steps to begin correction of any
nonconforming Work as notified by the City. This includes the correction, removal
or replacement of the nonconforming Work and any damage caused to other parts
of the Work affected by the nonconforming Work. If Contractor fails to begin the
necessary steps during the Work, the City, in addition to any other remedies
provided under the Contract Documents, may provide Contractor with written
notice that the City will commence correction of any nonconforming Work, at its
discretion, through its employees, agents or other third parties.
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Contractor shall take meaningful steps to begin correction of nonconforming Work
subject to Article 1.11 above. These measures iriclude but are not limited to timely
correction of the Work. If Contractor fails to initiate necessary measures for this
Work within seven (7) days of receipt of written notice from the City, the City, in
addition to any other remedies provided under the Contract Documents, may
provide Contractor with written notice that the City will begin correction of the
nonconforming Work, at its discretion, through its employees, agents or other third
parties.
B.
if the City does perform this corrective Work, Contractor will be responsible for all
reasonable costs incurred by the City in performing the correction without
increasing the Job Order Price.
C.
Contractor shall immediately respond to any nonconforming Work that creates an
emergency.
D.
The one (1) year period referenced in Article 1.11 above applies only to
Contractor’s obligation to correct nonconforming Work and is not intended to
constitute a period of limitations for any other rights or remedies the City may have
regarding Contractor’s other obligations under the Contract Documents.
1.13. SUBCONTRACTOR AND MAJOR SUPPLIER SELECTIONS
A.
Contractor shall select major Subcontractors and major Suppliers, subject to first
obtaining the City’s approval. 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 Contractor, but the City
must approve in writing the selection of all Subcontractors. In any case. Contractor
is solely responsible for the performance of the selected Subcontractors/Suppliers.
Contractor shall prepare a Subcontractor/Supplier selection plan and submit the
plan to the City for approval or Contractor may use the City’s plan as described in
Article 1.13(B). This Subcontractor selection plan will identify those Subcontractor
trades anticipated to be selected by qualifications only as provided in Article
1.13(B) and those Subcontractor trades anticipated to be selected by qualifications
and competitive bid as provided In Article 1.13(C). This plan will also identify those
Subcontractors that will not be selected through a formalized qualificatiohs-based
selection process. The Subcontractor selection plan must be consistent with the
selection requirements included in this Contract.
B.
Selection by qualifications only - The City may approve the selection of a
Subcontractor(s) or Supplier(s) based only on their qualifications when Contractor
can demonstrate it is in the best interest of the Project.
1. Contractor will apply the 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 Contractor’s own selection plan approved by the City or the
City's selection plan as provided in this Article 1.13(B).
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2. Contractor will negotiate costs for services/supplies from the
Subcontractor(s)/Supplier(s) under the approved qualifications only
method.
City Selection Plan:
3. Contractor may elect to comply with the following City procedures in its
selection of Subcontractor(s) or Suppliers(s) based on qualifications only;
a. The Request for Qualifications (RFQ) will contain the best
description of the services or material desired; and
b. A statement that only unpriced statements of qualifications will be
considered; and
c. 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 quallficatioris determined to be
acceptable will be considered for award.
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 Contractor. 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 shall be in writing, state the basis of the
determination and be retained by Contractor. Contractor will notify the
bidder of the determination and the bidder will not be given an opportunity
to amend its statement of qualifications further.
7. Contractor may conduct discussions with any bidder who subrnits an
acceptable or potentially acceptable statement of qualifications. During
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Page 16 of 66
OliioTr,!/
TH*
in\/l 11
Contract No. 2026-009-COS
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discussions. Contractor will not disclose any information derived from any
other bidder’s statement of qualifications.
8. Contractor will negotiate costs for services/supplies from the
Subcontractor(s)/Supplier(s) selected under this method.
C. Selection by qualifications and competitive bid - Contractor will apply the
City’s Subcontractor selection plan stated above or Contractor’s selection plan, if
previously approved by the City, in Contractor’s evaluation of the qualifications of
Subcontractor{s)/Supplier(s) and will provide the City with the selected process to
prequalify prospective Subcontractors/Suppliers. Selection may not be based on
price alone. All Work by 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 1.13(B) above. Contractor may
elect to comply with the following procedures in step 2 of its competitive bid
process.
1. Contractor 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, Contractor 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. Contractor will nominate a substitute
Subcontractor/Supplier that is acceptable to the City.
3. Contractor will distribute Drawings and Specifications, and when
appropriate, conduct a pre-bid conference with prospective Subcontractors
and Suppliers. Contractor 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 Contractor desires to self-perform certain portions of the Work, it must
request to be one of the approved Subcontractor bidders for those specific
bid packages. Contractor’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 compliance with the Project Schedule or
cost, Contractor may self-perform Work without bidding or re-bidding the
Work. (For horizontal construction, as defined in A.R.S. § 34-101(16),
Contractor must self-perform not less than 45% of the Work as required by
A.R.S. § 34-603(l)(3).)
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. Contractor will nominate a substitute Subcontractor or Supplier,
preferably if this option is still available, from those who submitted Subcontractor
bids for the Work affected. Once the substitute Subcontractors and Suppliers are
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consented to by the City, Contractor’s proposed price for the Work or portion of the
Work will be corresjpondingly adjusted to reflect any higher or lower costs from any
substitution. Under no circumstances will the City’s objection or comment on any
Subcontractor or Supplier relieve Contractor of its sole responsibility for control
over the methods, means and processes by which the Work is accomplished. The
City must approve in Writing the selected Subcontractor Selection Plan before work
commences on any Job Order.
ARTICLE 2 - CITY’S SERVICES AND RESPONSIBILITIES
2.1 INFORMATION AND SERVICES
A. The City will furnish Contractor, at no cost to Contractor, the following Information
or services for this Project:
1. One copy of data pertinent to the Work. However, Contractor will be
responsible for searching the records and requesting information required
for the Project
2. Ail available data and information relative to policies, standards, criteria,
studies, etc.
3. Project ftjnding and budget allocations and any changes affecting the
funding or budget allocations.
4. For purpose of determining the Job Order Price, any Plans and
Specifications.
5. For purpose of Project Record Drawing Prints, a CADD file of the
Constructioti Documents in Microstation format compatible with City of
Scottsdale CADD requirements.
2.2
CITY’S REPRESENTATIVE
A, The City’s Representative will be responsible for providing City-supplied
information and approvals in a timely manner to permit Contractor to folfill its
obligations under the Contract Documents.
2.3
DESIGN PROFESSIONAL SERVICES
A.
The City may contract separately with one or more Design Professionals to provide
architectural or engineering design of the Project in accordance with the provisions
of A.R.S. §34-603.
B.
The City may contract with the Design Professional to provide some or all of the
following services during the perfomnance of the Work:
1. The Design Professional may provide administration of the Work. The City
and Contractor will endeavor to communicate through the Design
Professional. Communications by and with the Design Professional's
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consultants will be through the Design Professional.
2. The Design Professional nriay visit the Site at intervals appropriate to the
stage of construction to become generally familiar with the progress and
quality of the completed Work and to determine in general if the Work is
being performed in accordance with the Contract Documents. The Design
Professional will keep the City Informed of progress of the Work and will
endeavor to guard the City against defects and deficiencies in the Work.
3. Upon Contractor’s submittals, the Design Professional may review and
approve or take other appropriate action on submittals as Shop Drawings,
Product Data and Samples in accordance with Article 1.6.
4. Ail drawings produced for projects considered to be performed under
Contractor are the property of the City and are owned in whole by the City
for any and all future use and considerations.
2.4
CITY’S SEPARATE CONTRACTORS
The City is responsible for all Work performed on the Project or at the Site by separate
contractors under the City’s control. The City will contractually require its separate
contractors to cooperate with and coordinate their activities so as not to interfere with
Contractor in order to enable Contractor to timely complete the Work consistent with the
Contract Documents. Contractor agrees to reasonably cooperate aipd Coordinate its
activities with those of the separate contractors so that the Project can be completed in
an orderly and coordinated manner without unreasonable disruption.
2.5
FURNISHING OF SERVICES AND INFORMATION
A.
The City will be responsible for the payment or waiver of the following:
1. City review and permit(s) fees for building, encroachment, and demolition
permits including City, State and County.
2. City review fees for grading and drainage, water, sewer and landscaping.
3. Utility design fees or permanent services fees are paid by the City, but all
submittals are the responsibility of Coritractor.
4. Obtaining Nationwide 404 Penoits.
5. City Development Fees.
B.
Unless expressly stated to the contrary in the Contract Documents, the City will
provide, at its own cost and expense, for Contractor's information the following:
1. To the extent available, surveys describing the property, boundaries,
topography and reference points for Use during construction, including
existing service and utility lines;
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2. Temporary and permanent easements, zoning and other requirements and
encumbranees affecting land use, necessary to permit the proper design
and construction of the Project and enable Contractor to perform the Work;
3. A legal description and street or physical address of the Site;
4. To the extent available, as-built record or historical drawings of any existing
structures at the Site;
5. To the extent available, environmental studies, reports and impact
statements describing the environmental conditions, including hazardous
materials, in existence at the Site; and
6. To the extent available. Geotechnical studies describing subsurface
conditions and other surveys describing other latent or concealed physical
conditions at the Site.
The City will provide all City standards and guidelines, supplementary
conditions and special provisions that will be included in the plans and
specifications for the Project. These may include but are not limited to:
disposal of surplus material, special security provisions, investigation of
underground facilities, traffic controls and regulations, special quality control
testing and termite treatment requirements.
2.6
PROJECT MANAGEMENT SERVICES
A.
The City may contract separately with one or more Technical Consultants to
provide project management assistance for the Project. The Technical
Consultant’s contract as well as contracts with other firms hired by the City will be
furnished to Contractor. Contractor will riot have any right, however, to limit or
restrict any Project modifications that are mutually acceptable to the City and
Technical Consultant.
B.
The Technical Consultant services will augment the City staffing resources to
effectively manage the objectives of the City and the Project with the goal of
managing the key Project communication, cost and time parameters.
G, The Technical Consultant may provide pre-programming and design standards.
D. The City may contract with the Technical Consultant to provide any or all of the
services or functions of the City’s project manager during the performance of the
construction.
2.7
PERMIT REVIEW AND INSPECTIONS
For clarification, permitting activities are handled by the City of Scottsdale
Developmental Services, Fire and Planning Departments. Obtaining any permits and
submittals are Ihe responsibility of the City.
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2.8 UTILITY COMPANY COORDINATION
Contractor will be responsible for coordinating utility design work for permanent service
to the Project and will ensure that the work takes place in a timely manner arid does not
impact the Project schedule. Any utility design fees for permanent services to a Job
Order will be paid by the City in accordance with Article 2.6.
ARTICLE 3 - CONTRACT TIME AND JOB ORDER TIME
3.1
CONTRACT TIME
A.
The initial term of this Contract will be for two (2) years and will commence on the
Effective Date, with the option to extend for three (3) additional years in one (1)
year increments.
1. The option to extend may be exercised based on Contractor’s successful
performance and the needs of the City.
2. A Contract Modification will be processed for each extension and will
commence on or about the anniversary date of the Contract. Each extension
must be authorized by the Contract Administrator and Purchasing Director and
need not return to the City’s Council for approval.
B.
The Contract will remain in full force and effect during the perfonnance of any Job
Order.
3.2
JOB ORDER TIME
A.
Job Orders may be issued at any time during the term of this Contract.
B.
Each individual Job Order will include a Job Order Nodce-to-Proceed date,
Duration of the Work as detennined in accordance with this Article 3.2 and a
calculated Substantial Completion date.
C.
Contractor agrees that it will commence performance of the Work and achieve the
approved Job Order Time.
D.
Job Order Time may be subject to adjustment in accordance with Article 5.
3.3
SUBSTANTIAL COMPLETION
A.
Substantial Completion of each Job Order is when all construction has been
completed with the exception of final inspection punch list work and further defined
in Article 12. The purpose of granting or acknowledging Substantial Completion is
to stop Job Order Time.
B.
Before notifying the City in accordance with Article 3.3(C), Contractor will inspect
the Work and prepare and submit to the City a comprehensive list of items to be
completed of corrected. Contractor will proceed promptly to complete and correct
items on the list. Failure to include an item on the list does not alter the
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Contract No. 2026-009-COS
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responsibility of Contractor to complete all Work in accordance with the Contract
Documents.
C.
Contractor will notify the City when it believes a Job Order, or to the extent
permitted in the Contract Documents, a portion of the Job Order, Is substantially
complete.
D.
Within five (5) days of the City’s receipt of Contractor’s notice in accordance with
Article 3.3(C), the City and Contractor will jointly inspect the Work to confirm
Substantial Completion.
E.
Once Substantial Completion of the Work is confirmed in accordance with Article
3.3(D), the City will prepare and issue a Certificate of Substantial Completion that
will state:
1. The date of Substantial Completion of the Work or portion of the Work;
2. The remaining items of Work that have to be completed within thirty (30)
caleridar days before Final Acceptance;
3. Provisions (to the extent not already provided In the Contract Documents)
establishing the City’s and Contractor’s responsibility for the Project’s
security, maintenance, utilities and insurance pending Final Acceptance.
F.
The City, at its option, may use a portion of the Work which has been determined
to be substantially complete provided, however, that:
1. Certificate of Substantial Completion has been issued for the portion of
Work addressing the items in Article 3.3(E)(2).
2. Contractor and the City have obtained the consent of their sureties and
insurers, and to the extent applicable, the appropriate government
authorities having jurisdiction over the Project, and
3. The City and Contractor agree that the City’s use or occupancy will not
interfere with Contractor’s completion of the remaining Work required under
Article 3.3(E).
3.4 PUNCH LIST PREPARATION
A minimum of seven (7) days before Substantial Completion, Contractor, in conjunction
with the City, will prepare a comprehensive list of Punch List items, which the City may
edit and supplement. Contractor will proceed promptly to complete and correct the
Punch List items. Failure to include an item on the Punch List does not alter the
responsibility of Contractor to complete all Work in accordance with the Contract
Documents. Warranties required by the Contract Documents will not commence until
the date of Final Acceptance, unless othenwise provided in the Contract Documents.
Seven (7) days before the City issues its Final Acceptance Letter, Contractor will deliver
to the City all Operation and Maintenance Manuals necessary for the City to assume
responsibility for the operation and maintenance of that portion of the Work.
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Contract No. 2026-009-COS
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3.5
FINAL ACCEPTANCE
Upon receipt of written notice that the Work or identified portions of the Work is ready for
final inspection and acceptance, the City and Contractor will jointly inspect to verify that
the remaining items of Work have been completed as required under Article 3.3(E). The
City will issue a Final Acceptance Letter.
3.6
LIQUIDATED DAMAGES
A.
Contractor understands that if Substantial Completion is not attained within the Job
Order Time, as may be adjusted for each Job Order, the City vAW suffer damages,
based on the anticipated ioss caused by the breach and the difficulty in determining
and accurately specifying the damages. Contractor agrees that if Substantial
Completion is not attained within the Job Order Time as adjusted, Contractor wili
pay the City the amount prescribed in Article 3.6(B) below as liquidated damages
for each Day that Substantial Completion extends beyond the date deterrhined by
the Job Order Time as adjusted.
B.
The followihg will be the liquidated damages for each Job Order unless a specific
amount has been determineid for each individual Job Order.
LIQUIDATED DAMAGES
Onginal Job Order Amount
From more than
$00
To and inclu^g
DMy Charges
25,001
$25,000
Calendar Day or Fixed Date
50,000
$200
250
50,001
100,001
100,000
280
500,001
500,000
430
750,000
500
750,001
1,000,001
1,250,001
1,000,000
1,250,000
570
1,500;000
610
650
ARTICLE 4- CONTRACT PRICE AND JOB ORDER PRICE
4.1 CONTRACT PRICE
The fee for individual projects performed under this contract will be negotiated ori a
project-by-project basis as Job Orders. The amount paid to the Contractor under this
contract for all Job Orders shall not exceed $4,000,000 for the initial two (2) year term
and $2,000,000 for any successive one (1) year contract extension.. The Contractor
agrees at its own cost and expense, to do all the Work as specified in the Contract
Documents and any Work contingent to the Contract and necessary for the construction
of the improvements. The Contractor will completely construct the Work and Install the
materials, free and clear of all claims, liens, and charges of any kind, in the manner and
under the conditions specified within the time or times stated In each Job Order.
A. In no event will any individual Job Order Price exceed $1,000,000. If the City opts
to extend this Contract in accordance with Article 3.1(A), the Contract Modification
may increase the maximum amount, if necessary, at that time.
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Contract No. 2026-009-COS
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B.
The Job Order Price is subject to Adjustments made in accordance with Article 5.
C.
Unless otherwise provided in the Contract Documents, the Job Order Price is
considered to include all sales, use, consumer and other taxes throughout the term
of this Contract, whether or not yet effective or merely scheduled to go Into effect.
D.
Contractor must secure and maintaih, during the life of the Contract, State of
Arizona and City of Scottsdale Transaction Privilege (sales) Tax Licenses.
To obtain a State of Arizona Privilege (Sales) Tax License Application, please go
to the following website:
httDs://azdor.aov/transaction-privileQe-tax/tDt-license/applvinQ-tpt-license
To obtain a City of Scottsdale Transaction (Sales) Tax License Application, please
go to the following website:
https://www.scottsdaleaz.gov/taxes/resources
Contractor must demonstrate compliance with the E-Verify Program as provided
in Article 11.33 and as required by A.R.S. §41 -1080, as amended, before issuance
of any License by the City.
4.2 RESPONSIBILITY FOR PRIVILEGE (SALES) TAXES
A. Contractor is responsible for payment of all applicable State of Arizona and City of
Scottsdale transaction privilege (sales) taxes due on construction income whether
or not these taxes are specifically separated in the bid amount. The taxes are to
be reported on either a progressive billing (accrual) basis or cash receipts basis,
depending on the method chosen at the time application was made for the
Privilege (sales) Tax License.
City Privilege (sales) tax exemptions/deductions may be applicable to Certain
projects. Contractor is advised to consider this as it prepares its bid. Please
review, In detail. Sections 415,465, and 110 of the Scottsdale Revised City Code,
Appendix C to determine if exemptions/ deductions are applicable. For tax
guidance, please reference the City Code and other tax resources at the following
website:
httD://www.scottsdaleaz,aov/taxes/
The State of Arizona has similar exemptions; please reference A. R.S. Title 42 at
the following website:
httD://www azleastate.az.us/ArizonaRevisedStatutes.asD?Title=42
For further questions regarding tax treatment, please contact the Arizona
Department of Revenue at 602-255-2060 arid the City of Scottsdale Tax & Audit
Section at 480-312-2768.
(Revised 07/09/25)
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ARTICLE 5 - CHANGES TO THE CONTRACT PRICE AND TIME
5.1 DELAYS TO THE WORK
A.
Delays may be compensable, concurrent, excusable or non-excusable as defined
in Article 12.
B.
If Contractor is delayed in the performance of the Work due to acts, omissioris,
conditions, events, or circumstances beyond its control and due to no fault of its
own or those for whom Contractor is responsible, the Job Order Time for
performance may be reasonably extended by Job Order Adjustment.
C.
Contractor must request a Job Order Adjustment by written notice, including an
estimate of the probable effect of delay on progress of the Work. In the case of a
continuing delay, only one request is necessary.
D.
Written notice will be received within five (5) days of the commencement of the
cause of the delay. If written notice is received more than five (5) days after
commencement of the cause of the delay, the period of delay will be considered
to commence fourteen (14) days before the giving of any notice.
E.
If adverse weather conditions are the basis for a Job Order Adjustment request,
the requests shall be documented by data substantiating that weather conditions
were abnormal for the period of time and could not have been reasonably
anticipated, and that weather conditions had an adverse effect on the scheduled
construction.
F.
Permitting Contractor to proceed to complete any Work, or any part of the Work,
after the date to which the time of completion may have been extended, will in no
way act as a waiver on the part of the City of any of its legal rights.
G.
In the event Contractor incurs expenses related to a delay for which the City is
responsible. Contractor and the City will negotiate to determine the amount of any
damages. This provision is made in accordance with A.R.S. §34-609(E), as
amended, and is effective only if the delay caused by the City is unreasonable
under the circumstances and was not within the contemplation of the parties. 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.
H.
In addition to Contractor’s right to request a time extension for those events stated
in this Article 5.1, Contractor may also be entitled to an appropriate adjustment of
the Job Order Price provided, however, that the Job Order Price will not be
adjusted for those events stated in this Article that are beyond the control of both
Contractor and the City, including the events of war, acts of terrorism, floods, labor
disputes (but not including Contractor’s own work force and those of its
subcontractors), earthquakes, epidemics, excessive inclement weather conditions
not reasonably anticipated.
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5.2 DiFFERiNQ SITE CONDITIONS
5.2.1. If Contractor encounters a Differing Site Condition(s)i Contractor may be entitled
to an adjustment in the Job Order Price or Job Order Time(s) to the extent
Contractor’s cost or time of performance are the direct result of a Differing Site
Condition(s).
5.2.2. Upon encountering a Differing Site Condition, Contractor shall provide prompt
written notice to the City of the condition, which notice will not be later than seven
(7) days after the condition has been encountered. Final costs must be
submitted within thirty (30) days after notice is received by the City, unless
extended by written agreement of the parties. Contractor must give the City’s
Contract Administrator written notice of and an opportunity to observe such
condition before disturbing or altering the Differing Site conditions. The failure
of Contractor to give written notice and make the Claim as required by this Article
and Article 7.1.5 shall constitute a waiver by Contractor of any rights arising out
of or relating to such Differing Site Conditions.
5.2.3. In order for Contractor to obtain any additional compensation or time extensions
for Differing Site Conditions, Contractor must demonstrate that it encountered a
material difference at the Site, as defined in Article 12, that required it to expend
additional cost or time. Contractor will also establish that it actually and
reasonably relied upon the representations found in the Contract Documents
concerning the Site conditions.
5.3 APPLICATION FOR EXTENSION OF TIME
5.3.1
If performance by Contractor is delayed for a reason set forth in Article 5,
Contractor may be allowed a reasonable extension of time in conformance with
this Article. Before Contractor’s time extension request may be considered.
Contractor shall notify the City of the condition which allegedly has caused or is
causing the delay, and shall submit a written application to the City identifying:
1.
Liquidated damage assessment rate, as specified in the Contract;
2.
Original Job Order Price;
3.
Original Job Order Time;
4.
Any previous Job Order Adjustments granted (number and duration); and
5.
The extension of time requested.
5.3.2
In addition, the application for extension of time shall set forth in detail:
1.
The nature of each alleged cause of delay in completing the Work;
1.
The date upon which each such cause of delay began and ended and the
number of dates attributable to each such cause;
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2.
A statement that Contractor waives ail claims except for those delineated
in the application, and the particulars of any claims which Contractor does
not agree to waive. For time extensions for Substantial Completion and
final completion payments, the application shall include a detailed
statement of the dollar amounts of each claim item reserved; and
3.
A statement indicating Contractor’s understanding that the time extension
is granted only for purposes of permitting continuation of Contract
performance and payment for Work performed and that the City retains its
right to conduct an investigation and assess liquidated damages as
appropriate in the future.
5.4
ERRORS, DISCREPANCIES AND OMISSIONS
A.
If Contractor observes errors, discrepancies or omissions in the Contract
Documents, it will promptly notify the City and request clarification. Contractor will
provide a copy of this notice to the City’s Representative.
B.
If Contractor proceeds with the Work affected by the errors, discrepancies or
omissions, without receiving any clarifications, it does so at its own risk. Adjustments
involving these circumstances made by Contractor before clarification by the Design
Professional will be at Contractor’s risk.
5.5
CITY REQUESTED CHANGE IN WORK
A.
The City reserves the right to make, at any time during the progress of the Work,
any alterations as may be found necessary or desirable.
B.
These alterations and changes will not invalidate this Contract nor release the
surety and Contractor agrees to perform the Work as altered, the same as |f it had
been a part of the original Job Order. Contractor will notify the surety of the
changes and will assure that the alterations and changes are adequately covered
by the surety bond.
C.
The City will request a proposal for a change In Work from Contractor, and an
Adjustment to the Job Order Price or Job Order Time will be made based on a
mutual agreed upon cost and time.
5.6
LEGAL REQUIREMENTS
The Job Order Price or Job Order Time will be adjusted to compensate Contractor for
the effects of any changes in the Legal Requirements enacted after the date of the
Contract affecting the performance of the Work.
5.7
JOB ORDER ADJUSTMENTS
A. In accordance with the City of Scottsdale Procurement Code, and related Rules
and Procedures, the City and Contractor will negotiate in good faith and as
expeditiously as possible the appropriate Job Order Adjustment(s). Upon reaching
an agreement, the parties will prepare and execute ah appropriate Adjustment
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reflecting the terms of their agreement: The change in Work may or may not
include an Adjustment in the Job Order Price or Job Order Time.
B.
All changes in Work authorized by Job Order Adjustments will be performed under
the conditions of the Contract Documents. The decision to make an Adjustment
to the Job Order rests solely with the City and any decision to make a Job Order
Adjustment must be promptly complied with by Contractor, subject to the
provisions of Articie 5.8.
C.
The execution of a Job Order Adjustment by Contractor shall constitute conclusive
evidence of Contractor’s agreement to ttie ordered changes in the Work, the Job
Order Price, and the Job Order Time by Contractor. Contractor, by executing the
Job Order Adjustment, waives and forever releases any claim against the City for
any additional time or compensation for matters relating to, arising out of^ or
resulting from the Work included within or affected by the executed Job Order
Adjustment of which Contractor knew or should have known.
5.8
UNILATERAL DETERMINATION OF JOB ORDER VALUE
If no mutual agreement occurs between the City and Contractor, the change in Job Order
Price, if any, shall be derived by determining the reasonable actual costs incurred or
savings achieved, resulting from revisions to the Work. Such reasonable actual costs
or savings shall include a component for direct job site overhead and profit but shall not
include home-office overhead or other indirect costs and components. The calculation
of actual costs shall conform to the markup schedule in Articie 5.12 below. Any such
costs or savings shall be documented in the format and with such content and detail as
the City requires. Contractor shall promptly subhnit such documentation and other
backup as the City may require in evaluating the actual costs incurred.
5.9 ADDITIONAL JOB ORDER COST REQUIREMENTS
Contractor’s or Subcontractor’s submittals shall include the cost of materials, sales tax,
and the cost of all transport. The cost of items listed shall be directly related to the Job
Order Adjustment Indirect costs not specifically related to the Job Order Adjustment
shall not be considered. Contractor’s or Subcontractor’s Direct Labor Costs shall be
limited to the hourly rate of directly involved workmen, employer contributions toward
Contractor standard benefits, pensions, unemployment or social security (if any), and
employer costs for paid sick and annual leave. Contractor’s or Subcontractor’s
Overhead shall include license fees, bond premiums, supervision, wages of timekeepers
and clerks, incidentals, home and field office expense, and vehicle expense directly
related to the Project, and all other direct Project expenses not included in Contractor’s
material, direct labor, and equipment costs.
5.9.1 The allowance for overhead and profit shall be limited to the following schedule:
1.
For Contractor, for any work performed by Contractor’s own forces, fifteen
(15%) percent of the Subtotal of Costs to Contractor.
2.
For Contractor, for any work performed by its Subcontractor, six (6%)
percent of the amount due to the Subcontractor.
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3.
For each Subcontractor or Sub-subcontractor involved, for any work
performed by their own forces, fifteen (15%) of their materials and direct
labor costs.
4.
For each Subcontractor, for work performed by its Sub-Subcontractor(s),
six (6%) percent of the amount due to the Sub-subcontractor.
5.10 LIMITATION OF COMPENSABLE ITEMS
5.10.1 For Job Order Adjustment, the total cost or credit to the City shall be based on
the following scheduie:
1. Contractor’s Materials Costs.
2. Contractor’s Direct Labor Costs.
3. Contractor’s Equipment Costs (includes owned/rented equipment).
4. Applicable Subcontractor Costs.
5. Subtotal of Costs to Contractor.
6. Contractor’s Overhead and Profit.
7. Total Cost or Credit to the City.
5.11 FIELD ORDERS
A.
The City has authority to initiate Fieid Orders that do not materially and adversely
affect the Work, including the design, quality, performance and workmanship
required by the Contract Documents. Field Orders will be made by written order
and will be binding on the City and Contractor. Contractor will carry out any written
Field Orders promptly.
B.
Field Orders will not involve an adjustment in the Job Order Price or Job Order
Times unless or until it becomes a Job Order Adjustment.
C.
Contractor may make minor changes in the Work, provided, however that
Contractor will promptly inform the City, in writing, of any changes and record the
changes, if appropriate, on the Project Record Documents maintained by
Contractor.
5.12 JOB ORDER PRICE ADJUSTMENTS
A. The increase or decrease in Job Order Price resulting from a change in the Work
will be determined by one or more of the following methods:
1. Unit prices stated in the Contract or as subsequently agreed to between
the parties:
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2. A mutually agreed upon accepted, lump sum, properly itemized and
supported by sufficient substantiating data to permit evaluation by the City;
and
3. Costs, fees and any other markups.
B.
If an Increase or decrease cannot be agreed to as stated In Article 5.7(A), the cost
of the change of the Work will be determined by the reasonable expense and
savings in the performance of the Work resulting from the change, including a
reasonable overhead and profit, as may be stated in the Contract Documents.
Contractor will maintain a documented, itemized accountirig evidencing the
expenses and savings associated with these changes.
C.
If unit prices are stated In the Contract Documents, or are later agreed to by the
parties, but application of the unit prices will cause substantial inequity to the City
or Contractor because of differences in frie character or quantity of the unit items
as originally contemplated, the unit prices will be equitably adjusted.
D.
If the City and Contractor disagree upon whether Contractor is entitled to be paid
for any services required by the City, the amount to be paid, other disagreements
oyer the Scope of Work, proposed changes to the Work, or the time required to
complete the Work, the City and Contractor will resolve the disagreements in
accordance with Article 7.
1. As part of the negotiation process. Contractor Will furnish the City with a
good faith estimate of the costs to perform the disputed services, or the
additional time required in accordance with the City’s interpretations.
2. If the parties are unable to agree and the City expects Contractor to perfomi
the services in accordance with the City's interpretations. Contractor will
proceed to perform the disputed services, conditioned upon the City issuing
a written order to Contractor:
(a) directing Contractor to proceed; and
(b) specifying the City's interpretation of the services that are to be
performed.
E.
Emergencies. In any emergency affecting the safety of persons or property.
Contractor will act, at its discretion, to prevent threatened damage, injury or loss.
Any change In the Job Order Price or Job Order Tlme(s) resulting from emergency
work under this Article 5.8(E) will be determined as provided in this Article 5-
ARTICLE 6- PROCEDURE FOR PAYMENT
6.1 JOB ORDER PAYMENT REQUEST
A. At the pre-construction conference prescribed in Article 1.3, Contractor will submit
for the City’s review and approval a Schedule of Values. The Schedule of Values
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Will include values for all items comprising the Job Order Price and will serve as
the basis for monthly progress payments made to Contractor throughout the Work.
B.
At least five (5) working days before the date established for a progress payment.
Contractor will meet With the City's Representative to review the progress of the
Work, as it will be reflected on the Contractor Payment Request.
C.
The Contractor Payment Request will constitute Contractor’s representation that
the Work has been performed consistent with the Job Order including any
Adjustment(s). has progressed to the point indicated in the Contractor Payment
Request, and that title to all Work will pass to City free and clear of all claims, liens,
encumbrances, and security interests upon the Incorporation of the Work into the
Project.
6.2
PARTIAL PAYMENTS
A.
Partial progress payment will be made for Job Orders with Job Order Time greater
than 30 Days and may be made If the Job Order Time is less than 30 Days.
B.
The Contractor Payment Request may request payment for equipment and
materials not yet incorporated Into the Project if construction progress Is in
reasonable conformance with the approved schedule.
C.
For equipment and materials suitably stored at the Site, the equipment and
materials will be protected by suitable insurance and the C|ty will receive the
equipment and materials free and clear of all liens and encumbrances.
1. For materials arid equipment stored off the Site, the City must approve the
storage. The material and equipment must be stored within Maricopa
County and be accessible for the City’s inspection. Title to the materials
and equipment will include applicable insurance, bonding, storage and
transportation to the Site.
2. All bonds and insurance required for stored materials will be in the City’s
name.
6.3
PAYMENT OF JOB ORDER PRICE
A.
Payments should be provided on the City format for a Pay Application which is
based on the agreed upon Schedule of Values. Payment will be made no later
than fourteen (14) days after the Contractor Payment Request is certified and
approved, but in each case less the total of payments previously made.
B.
The Contractor Payment Request shall be deemed approved and certified for
payment seven (7) days after the date of submission to the City by Contractor
unless before that time the City prepares and issues a specific written finding
setting forth those items in detail in the Contractor Payment Request that are not
approved for payment under the Contract. The finding will indicate the specific
amounts the City intends to withhold, the reasons and contractual basis for the
withholding, and the specific measures Contractor must take to rectify the City’s
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concerns. The City may withhold an amount from the progress payment sufficient
to pay the expenses the City reasonably expects to incur in comecting the
deficiency set forth in the written finding. Contractor and the City will attempt to
resolve the City’s concerns. If the parties cannot resolve the concerns, Contractor
may pursue its rights under the Contract Documents, including those under Article
7.
6.4
RETENTION ON JOB ORDER PAYMENTS
In compliance with A.R.S. §34-609, as amended, there is no retention for job-order
contracting construction services contracts.
6.5
FINAL PAYMENT
A.
After receipt of a final Contractor Payment Request, the City will make final
payment as required by this Article 6.5, provided that Contractor has completed all
of the Work in conformance with the Job Order and Contract Documents and a
Final Acceptance Letter has been issued by the City.
B.
At the time of submission of its final Contractor Payment Request, Contractor will
provide the following information:
1. An affidavit that there are no claims, obligations or liens outstanding or
unsatisfied for labor, services, material, equipment, taxes or other iterns
performed, furnished or incurred for or in connection with the Work which
will in any way affect the City’s interests; and
2. A general release executed by Contractor waiving, upon receipt of final
payment by Contractor, all claims, except those claims previously made in
writing to the City and remaining unsettled at the time of final payment.
6.6
PAYMENTS TO SUBCONTRACTORS OR SUPPLIERS
A.
Contractor will pay Its Subcontractors or suppliers within seven (7) calendar days
of receipt of each progress payment from the City. Contractor will pay for the
amount of Work performed or materials supplied by each Subcontractor or supplier
as accepted and approved by the City with each progress payment. No Contract
between Contractor and its Subcontractors and suppliers nriay materially alter the
rights of any Subcontractor or supplier to receive prompt payment as provided in
this Contract.
B.
If Contractor fails to make payments in accordance with these provisions, the City
may take any one or more of the following actions and Contractor agrees that the
City may take these actions:
1. To hold Contractor In default under this Contract;
2. Withhold future payments until proper payment has been made to
Subcontractors or suppliers in accordance with these provisions;
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3. Reject all future offers to perform work for the City for a period not to exceed
one (1) year from the Substantial Completion date of the Job Order at issue;
or
4. Terminate this Contract for cause.
C.
Should the City fail or delay in exercising or enforcing any right, power, privilege,
or remedy under this Article 6.6, the failure or delay will not be considered a waiver,
release, or modification of the requirements of this Article or of any of the terms or
provisions of this Contract.
D.
Contractor will Include these prompt payment provisions in every subcontract,
including procurement of materials and leases of equipment for this Contract.
6.7 RECORD KEEPING AND FINANCE CONTROLS
A.
Records of Contractor’s direct personnel payroll, reimbursable expenses related
to each Job Order and records of accounts between the City and Contractor will
be 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 uiitil three (3) years after the date of
final payment by the City of Scottsdale to Contractor, the City, its authorized
representative, or the appropriate federal or state agencies, reserve the right to
audit Contractor's records to verity the accuracy and appropriateness of all pricing
data, including data used to negotiate the Contract Documents. The City of
Scottsdale or its authorized representative Will have access, during normal working
hours, to all necessary Contractor and Subcontractor facilities, and will be provided
adequate and appropriate workspace, in order to conduct audits in compliance
with the provisions of this Article. The City of Scottsdale will give Contractor or
Subcontractor reasonable advance notice of intended audits.
B.
The City reserves the right to decrease Job Order Price or payments made on this
Contract if, upon audit of Contractor’s records, the audit discloses Contractor has
provided false, misleading, or inaccurate cost and pricing data.
C.
Contractor will include a similar provision in all of its contracts with Subconsultants
and Subcontractors providing services under the Contract Documents to ensure
the City, its authorized representative, or the appropriate federal or state agency,
has access to the Subconsultants’ and Subcontractors’ records to verity the
accuracy of cost and pricing data.
D.
The City reserves the right to decrease Job Order Price or payments made on this
Contract if the above provision is not included in Subconsultants’ and
Subcontractors’ contracts, and one or more Subconsultants or Subcontractors do
not allow the City to audit their records to verity the accuracy and appropriateriess
of pricing data.
E.
If an audit in accordance with this Article, discloses overcharges of any nature by
Contractor to the City in excess of 1% of the total contract billings, the actual cost
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F.
Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
of the City’s audit will be reimbursed to the City by Contractor. Any adjustments
or payments which must be made as a result of any audit or inspection of
Contractor’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.
This audit provision includes the right to inspect personnel records as required by
Section 11.33.
ARTICLE 7- CLAIMS AND DISPUTES
7.1 REQUESTS FOR CONTRACT ADJUSTMENTS AND RELIEF
7.1.1
If either Contractor or the City believes that it Is entitled to relief against the other
for any event arising out of or related to Contract Services, that party will provide
written notice to the other party of the basis for its claim for relief. The claims shall
set forth in detail all known facts and circumstances supporting the cjaim; final
costs associated with any claim upon which notice has been given must be
submitted In writing to the City within thirty (30) days after notice has been
received.
7.1.2 This notice will, if possible, be made before incurring any cost or expense and in
accordance with any specific notice requirements contained in applicable sections
of the Contract.
7.1.3
In the absence of any specific notice requirement, written notice will be given within
a reasonable time, not to exceed ten (10) days, after the occurrence giving rise to
the claim for relief or after the claiming party reasonably should have recognized
the event or condition giving rise to the request, whichever Is later.
7.1.4 This notice will include sufficient information to advise the other party of the
circumstances giving rise to the claim for relief, the specific contractual adjustment
or relief requested and the basis of the request. ANY NOTICE OF CLAIM NOT
FILED WITH THE CITY WITHIN SUCH TIME AND IN COMPLIANCE WITH THE
PRECEEDING PROVISIONS SHALL BE CONSIDERED TO HAVE BEEN
WAIVED AND SHALL BE DISMISSED.
7.1.5
In the event Contractor seeks to make a claim for an increase In the Job Order
Price, as a condition precedent to any liability of the City therefore, unless
emergency conditions exist. Contractor shall strictly comply with the requirements
of this section and such claim shall be made by Contractor before proceeding to
execute any work for which a claim is made. Failure to comply with this condition
precedent shall constitute a waiver by Contractor of any claims for compensation.
7.1.6
Contractor must continue its performance under this Contract regardless of the
existence of any claims by Contractor.
7.1.7
In a claim by Contractor against the City for compensation in excess of the Job
Order Price, any liability of the City to Contractor shall be strictly limited and
computed in accordance with the Contract Documents and shall in no event
include indirect costs, such as home office overheads or consequential damages
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of Contractor or any estimated costs or damages.
7.2
DISPUTE AVOIDANCE AND RESOLUTION
7.2.1
The parties are fully committed to working with each other throughout the Project
and agree to communicate regularly with each other at all times so as to avoid or
minimize disputes or disagreements. If disputes or disagreements do arise, the
Contractor and the City each corrimit to resolving the disputes or disagreements in
an amicable, professional and expeditious manner so as to avoid unnecessary
losses, delays and disruptions to the Work.
7.2.2 The Contractor and the City will first attempt to resolve disputes or disagreements
at the field level through discussions between the Contractor’s Representative and
the City’s Representative.
7.2.3
If a dispute or disagreement cannot be resolved through the Contractor’s
Representative and the City’s Representative, the Contractor’s Senior
Representative and the City’s Senior Representative, upon the request of either
party, will meet as soon as conveniently possible, but in no case later than thirty
(30) days after the request is made, to attempt to resolve the dispute or
disagreement. Before any meetings between the Senior Representatives, the
parties will exchange relevant information that will assist the parties in resolving
their dispute or disagreement.
7.2.4 The City and the Contractor agree to negotiate in good faith in accordance with
this Contract’s procedure forthe recovery of damages related to expenses incurred
by the Contractor for a delay for which the City is responsible, that is unreasonable
under the circumstances, and that was not within the contemplation of the parties
to the Contract.
7.3
DUTY TO CONTINUE PERFORMANCE
Unless provided to the contrary in the Contract Documents, Contractor will continue to
perform the Work and the City will continue to satisfy its payment obligations to
Contractor, until final resolution of any dispute or disagreement between Contractor and
the City.
7.4
REPRESENTATIVES OF THE PARTIES
A. City’s Representatives
1. The City designates the individual listed below as the City’s Senior
Representative. This individual has the authority and responsibility for
avoiding and resolving disputes under Article 7.2.3:
City of Scottsdale
Attn; Robert Franklin
Facilities Service Area Manager
9191 E. San Salvador Dr
Scottsdale, AZ 85251
(480) 312-5999
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2. The City will designate an individual for each Job Order as the City’s
Representative. This person will manage the Job Order.
B. Contractor’s Representatives
1. Contractor designates the individual listed below as Contractor’s Senior
Representative. This individual has the authority and responsibility for
avoiding and resolving disputes under Article 7.2.3:
Sun Eagle Corporation.
Attn: Martin Alvarez Sr.
461 North Dean Ave
Chandler. A2 85226
(480)961-0004
2. Contractor will designate an individual for each Job Order as Contractor's
Representative.
ARTICLE 8 - SUSPENSION, TERMINATION AND CANCELLATION
8.1 CITY’S RIGHT TO STOP JOB ORDER SERVICES
A.
The City may. at its discretion and without cause, order Contractor in writing to ,
stop and suspend any Job Order. Immediately after receiving this notice.
Contractor will discontinue advancing the Job Order. The suspension will not
exceed one hundred eighty (180) consecutive days. If the City suspends the Job
Order for one hundred eighty-orie (181) consecutive Days or more, the suspension
will be considered a termination for convenience.
B.
Contractor may seek an adjustment of the Job Order Price or Job Order Time if its
cost or time to perform the Contract Services has been adversely impacted by any
suspension or stoppage of the Work by the City.
8.2 TERMINATION FOR CONVENIENCE
A.
Upon receipt of written notice to Contractor, the City has the right to terminate this
Contract or abandon any portion of ariy Job Order for which services have not
been performed by Contractor.
1. Contractor will estimate the value of the Work it has completed and submit
its appraisal to the City for evaluation. The City will have the right to inspect
the Work, to appraise the Work completed.
Contractor will receive compensation for services performed to the date of
the termination. The fee will be an amount mutually agreed upon by
Contractor and the City. If there is no mutual agreement, the final
determination will be made in accordance with this Article.
2. The City will make the final payment within 60 days after Contractor has
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delivered the last of the partially completed items and the final fee has been
agreed upon.
If the City terminates this Contract in compliance with this Article and
proceeds to complete the Job Order through its employees, agents or other
third parties, the City’s rights to use the Work product will be as stated in
Article 8.4(D).
B.
Upon termination of construction services during any Job Order, Contractor will
proceed with the following obligations:
1. Stop Work as stated in the notice:
2. Place no further subcontracts or orders;
3. Terminate all subcontracts to the extent they relate to the Work terminated;
4. Assign to the City all right, title and interest of Contractor under the
subcontracts terminated, in whidi case the City will have the right to settle or
to pay any termination settlement proposal arising out of those tenninations;
and
5. Take any action that may be necessary for the protection and preservation
of the property related to the Contract that is in the possession of Contractor
and which the City has or may acquire an interest
6. Comply with the requirements of Article 6.5(B)(1) and (2).
C.
Contractor will submit complete termination inventory schedules no later than sixty
(60) days from the date of the notice of termination.
D.
The City will pay Contractor the following:
1. The direct value of its completed Work and materials supplied as of the date
of termination:
2. The reasonable costs and expenses attributable to the termination;
3. Contractor will be entitled to profit and overhead on completed Work but will
not be entitled to anticipated profit or anticipated overhead. If it appears
Contractor would have sustained a loss on the entire Work had the Job
Order been completed. Contractor will not be allowed profit and the City will
reduce the settlehient to reflect the indicated rate of loss;
4. Contractor will maintain all records and documents for three (3) years after
final settlement. These records will be maintained and subject to auditing as
required in Article 6.7; and
5. Take any action that may be necessary for the protection and preservation
of the property related to the Job Order(s) that is in the possession of
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Contractor and in which the City has or may acquire an interest.
8.3
CANCELLATION FOR CAUSE
The City may also cancel this Contract or any part of it with seven (7) days notice for
cause in the event of any default by Contractor, or if Contractor 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 City’s Representative 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 City will not be liable to Contractor for any amount as
damages, and Contractor will be liable to the City for any and all damages sustained
as a result of the default that caused the cancellation.
8.4 CITY’S RIGHT TO PERFORM AND CANCEL FOR CAUSE
A.
If Contractor persistently fails to;
1. Provide a sufficient number of skilled workers;
2. Supply the materials required by the Contract Documents or Job Order(s);
3. Comply with applicable Legal Requirements;
4. Timely pay. without cause, Subconsultants or Subcontractors;
5. Perform the Contract Services with promptness and diligence to ensure
that a Job Order is completed by the Job Order Time, as the times may be
adjusted; or
6. Perform other material obligations under the Contract Documents and/or
individual Job Orders;
Then the City, in addition to any other rights and remedies provided in the Contract
Documents or by law, will have the rights stated in Articles 8.2 and 8.3.
In the event the City cancels this Contract or any part of the services under any
Job Order, the City will notify Contractor in writing, and Immediately upon receiving
this notice. Contractor will discontinue advancing the Work under this Contract or
the Job Order and proceed to close all operations of any affected Job Order or this
Contract.
B. If the City provides Contractor with a written order to provide adequate maintenance
of traffic, adequate cleanup, adequate dust control or to correct deficiencies or
damage resulting from abnormal weather conditions, and Contractor fails to comply
in a time frame specified, the City may have the Work accomplished by other
sources at Contractor’s expense and without an increase to the Job Order Price
C. Upon the occurrence of an event stated in Article 8.4(B), the City may provide written
notice to Contractor that it intends to cancel the Contract unless the problem cited
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is cured, or commenced to be cured, within seven (7) days of Contractor’s receipt of
notice.
1. If Contractor fails to cure, or reasonably commence to cure, the problem,
then the City may give a second written notice to Contractor of its intent to
cancel within an additional seven (7) day period.
2. If Contractor, within this second seven (7) day period, fails to cure, or
reasonably commence to cure the problem, then the City may declare the
Contract cancelled for default by providing written notice to Contractor of
this declaration.
D. Upon declaring the Contract cancelled in accordance with Article 8.4(C). and for the
purpose of completing the Work, the City may for all Job Orders enter upon the
premises and take possession of all materials, equipment, scaffolds, tools,
appliances and other items, which have been purchased or provided for the
performance of the Work, all of which Contractor now transfers, assigns and sets
over to the City for this purpose, and to employ any person or persons to complete
the Work and provide all of the required labor, services, materials, equipment and
other items.
E. If through any cause, Contractor fails to fulfill in a timely and proper manner its
obligations under this Contract, or if Contractor violates any of the covenants.
Contracts, or stipulations of this Contract, the City may withhold any payments to
Contractor for the purpose of setoff until the exact amount of damages due the City
from Contractor is determined by a court of competent jurisdiction.
F. In the event of a cancellation. Contractor will not be entitled to receive any further
payments under the Contract Documents until the Work on all Job Orders is
completed in accordance with the Contract Documents. At that time. Contractor will
only be entitled to be paid for Work performed and accepted by the City before its
default.
G. If the City’s cost and expense of completing the Work exceeds the unpaid balance
of a Job Order Price, then Contractor wi|l be obligated to pay the difference to the
City. These costs and expenses will include not only the cost of completing the
Work, but also losses, damages, costs and expense, including attorneys’ fees and
expenses, incurred by the City in connection with the reprocurement and defense of
claims arising from Contractor’s default.
H. If the City cancels this Contract for cause and the cancellation is determined to have
been without legal right, the cancellation for cause will be considered to have been
a termination for convenience in accordance with the provisions of Article 8.2.
ARTICLE 9 - INSURANCE AND BONDS
9.1 INSURANCE REQUIREMENTS
A. At the same time as execution of this Contract, Contractor will furnish the City of
Scottsdale a Certificate of Insurance on a standard insurance industry ACORD
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Contract No. 2026-009-COS
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form. The ACORD form will be issued by an insurance company authorized to
transact business in the State of Arizona.
B.
Contractor, 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 Contractor, its 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 Contractor from liabilities that might arise out of the
performance of the Contract Services under this Contract by Contractor, its agents,
representatives, employees, Subcontractors or Subconsultants and Contractor is
free to purchase any additional Insurance as may be determined necessary. The
City will not pay for higher limits, but if Contractor pays for insurance with higher
limits. Contractor will name the City as an additional insured on any additional
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.
Self-Insured Retentions. 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.
9.2 MINIMUM SCOPE AND LIMITS OF INSURANCE
Contractor must provide coverage 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
$2,000,000
$2,000,000
$1,000,000
$2,000,000
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Fire Damage (Any one fire)
Medical Expenses (Any one person)
Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
$100,000
OPTIONAL
B. Automobile Liabilitv-Anv Auto or Owned. Hired and Non-Owned Vehicles
Combined Single Limit Per Accident
For Bodily Injury and Property Damage
C.
Workers Compensation and Employers Liability
Workers Compensation
Employers Liability:
Each Accident
Disease - Each Employee
Disease - Policy Limit
D.
Coverage Terms and Required Endorsements
$1,000,000
Statutory
$500,000
$500,000
$1,000,000
1. The City of Scottsdale, its officers, officials, agents, and employees are
additional insureds with respect to liability arising out of activities performed
by, or on behalf of. Contractor including the City’s general supervision of
Contractor; products and completed operations of Contractor; and
automobiles owned, leased, hired, or borrowed by Contractor.
2. The City, its officers, officials, agents, and employees must be additional
insureds to the full limits of liability purchased by Contractor even if those
limits of liability are in excess of those required by this Contract.
3. Contractor’s insurance coverage 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 will be in excess of the coverage provided by Contractor and
must not contribute to it.
4. Contractor's insurance must apply separately to each insured against
whom a claim is made or suit is brought, except with respect to the limits
of the insurer's liability.
5. Coverage provided by Contractor must not be limited to the liability
assumed under the indemnification provisions of this Contract.
6. All policies must contain a waiver of subrogation against the City, ite
officers, officials, agents, and employees, for losses arising from Work
performed by Contractor for the City.
7. Workers’ Compensation and Employers Liability Coverage: 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 Contractor for the City.
(Revised 07/09/25)
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8. If Contractor receives notice that any of the required policies of insurance
are rnaterially reduced or cancelled, it will be Contractor’s responsibility to
provide prompt notice to the contract administrator of same to the City,
unless such coverage is immediately replaced with similar policies.
E. Builders Risk-Installation Insurance fCourse of Construction^
\
To be provided if determined by the City as necessary with each Job Order.
Contractor bears all responsibility for loss to all Work being perfomied and to
buildings under construction. Unless waived in writing by the City of Scottsdale,
Contractor will purchase and maintain in force Builders Risk-installation insurance
on the entire Work until completed and accepted by the City. This insurance will
be Special Causes of Loss or Open Perils policy form, for the completed value, at
replacement cost equal to each Job Order contract price and all subsequent
modifications. Contractor’s Builders Risk-Installation insurance will be primary and
not contributory; and waive all rights of subrogation against the City, its officers,
officials and employees.
This Builders Risk-Installation insurance must name the City, Contractor and all
tiers of Subcontractors as respects their insurable interest at the date of loss. It
must contain a provision that subject insurance will not be canceled or materially
altered without at least thirty (30) days advance notice to the City. Contractor is
also required to give the City thirty (30) days advance written notice of the coverage
termination for each project. The City will also be named as a Loss Payee under
Builders Risk-Installation coverage.
This Builders Risk-Installation insurance must cover the entire Work including
reasonable compensation for architects and Contractor’s’ services and expenses
and other “soft costs” made necessary by an insured loss. Builders Risk-
Installation insurance must provide coverage from the time any covered property
comes under Contractor’s control and or responsibility, and continue without
interruption during course of construction, renovation and or installation, including
any time during which any project property or equipment is in transit, off site, or
while on site for future use or Installation. Insured property must include, but not
be limited to, scaffolding, false work, and temporary buildings at the site. This
insurance must also cx)verthe cost of removing debris, including demolition as may
be legally required by operation of any law, ordinance, regulation or code.
Contractor must also purchase and maintain Boiler and Machinery insurance with
the same requirements as Builders Risk-Installation insurance stated above if the
Work to be performed Involves any exposures or insurable property normally
covered under a Boiler and Machinery insurance policy or made necessary as
required by law and or testing requirenrients in the performance of this Contract.
Contractor will be responsible for any and all deductibles under these policies and
Contractor waives ail rights of recovery and subrogation against the City under
Contractor-provided Builders Risk-Installation insurance described In this Article.
The Builders’ Risk-installation insurance must be endorsed so that the insurance
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Contract No. 2026-009-COS
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will not be canceled or lapse because of any partial use or occupancy by the City.
Builders’ Risk-Installation Insurance must be maintained until whichever of the
following first occurs: (i) final payment has been made; or (ii) until no person or
entity, other than the City, has an insurable interest in the property required to be
covered.
By signing this Contract, all rights of subrogation are waived against the City, its
officers, officials, agents and employees.
9.3 OTHER INSURANCE REQUIREMENTS
The policies are to contain, or be endorsed to contain, the following provisions:
A.
Contractors Professional Liability: Contractor must carry Contractors Professional
Liability insurance to cover the residual, contingent, and passive design exposures
of Contractor.
1.
The City of Scottsdale, 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 Contractor, including the City’s
general supervision of Contractor; products and completed operations of
Contractor.
2.
The City, its officers, officials, agents, and employees must be additional
insureds to the full limits of liability purchased by Contractor, even if those
limits of liability are in excess of those required by this Contract. The
Commercial General Liability policy will be at least as broad as the
Insurance Service Office, Inc.’s CG 0 0 01 07 98.
B.
Contractors Professional Limits of Liability: Contractor 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.
Contractor, 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.
1.
Contractor’s insurance coverage must be primary insurance with respect
to the City, its officers, officials, agents, and employees. Insurance or self-
insurance maintained by the City, its officers, officials, agents, and
employees must be in excess of Contractor’s insurance and will not
contribute to it.
2.
Contractor’s insurance must apply separately to each insured against
whom a claim is made or suit is brought, except with respect to the limits
of the insurer’s liability. The coverage provided by Contractor and its
Subcontractors must not be limited to the liability assumed under the
indemnification provisions of this Contract.
(Revised 07/09/25)
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Contract No. 2026-009-COS
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3. The policies must contain a waiver of subrogation against the City, its
officers, officials, agents, and employees for losses arising from Work
performed for the City.
C. Contractor, its successors and 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. Contractor must
submit a Certificate of Insurance evidencing the Commercial General Liability
insurance during this three (3) year period containing all the insurance
requirements including naming the City of Scottsdale, its agents, representatives,
officers, directors, officials and employees as Additional Insured as required.
9.4
SUBCONSULTANT’S AND SUBCONTRACTOR’S INSURANCE
Unless Contractor’s Subconsultants and Subcontractors can provide the same level of
coverage as detailed in Article 9.2 and name the City and Contractor as Additional
Insureds, Contractor’s certificates must include all Subcontractors and Subconsultants
as insureds under its policies or Contractor must maintain separate certificates and
endorsements for each Subcontractor and Subconsultant. All coverages for
Subcontractors and Subconsultants must be in the amounts shown in Article 9.2.
Certificates must contain a provision that the insurance will not be canceled or materially
altered without at least thirty (30) days advance notice to the City. The City must also
be named as a Loss Payee under the Builders Risk-Installation coverage.
9.5
NOTICE OF CANCELLATION
If Contractor receives notice that any of the required policies of insurance are materially
reduced or cancelled, it will be Contractor’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, reduced in coverage or in limits until thirty (30) days written notice has first
been given in accordance with Article 11.24, herein.
9.6
ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers duly licensed or approved to conduct business
in the State of Arizona and with an A. M. Best rating of no less than B++6. The City in
no way warrants that the above required minimum insurer rating is sufficient to protect
Contractor from potential insurer insolvency. Failure to maintain insurance as required
may result in termination of this Contract at the City’s option.
9.7
VERIFICATION OF COVERAGE
A. Contractor 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 and endorsements for each
insurance policy are to be signed by a person authorized by that insurer to bind
coverage on its behalf.
(Revised 07/09/25)
Page 44 of 66
B.
C.
Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
All certificates and endorsements are to be received and approved by the City
before Contract Services commence except for Builders Risk-installation
Insurance, which will be received and approved as provided in Article 9.2(E). Each
insurance policy required by this Contract must be in effect at or before the earlier
of commencement of Contract Services under the Contract Documents or the
signing of this Contract except for Builders Risk-Installation Insurance which must
be in effect before commencement of the 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.
All Certificates of Insurance required by this Contract must be sent directly to the
City of Scottsdale, Attn: Purchasing Department, 9191 E. San Salvador Dr.
Scottsdale, AZ 85258. 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 Contractor’s Certificate and delay in contract execution.
Additional Certificates of Insurance submitted without referencing a Contract
number will be subject to rejection and returned or discarded.
9.8
APPROVAL
Any modification or variation from the insurance requirements in this Contract must be
approved by the Risk Management Division, whose decision is final. This action may
be made by administrative action.
9.9
BONDS AND OTHER PERFORMANCE SECURITY
A.
Before execution of each individual Job Order, Contractor must provide a
performance bond and a payment bond for all construction services, each in an
amount equal to the full amount of the agreed upon cost for that Job Order.
Contractor may, at its own option, provide Payment and Performance Bonds for
the entire Contract Price amount, but there shall be no obligation for the City to
reimburse Contractor for bond costs incurred, except on an actual cost basis as
each individual Job Order is issued. Bonds must be submitted in accordance with
Title 34, Chapter 6 of the Arizona Revised Statutes and must be in substantially
the same form as Exhibits A and B, attached to this Contract.
B.
Each bond must be executed by a surety company or companies holding a
Certificate of Authority to transact surety business in the State of Arizona, issued
by the Director of the Arizona Department of Insurance. A copy of the Certificate
of Authority must accompany the bonds. The Certificate must have been issued
or updated within two (2) years before the execution of this Contract.
C.
The bonds must be made payable and acceptable to the City of Scottsdale.
D.
The bonds must be written or countersigned by an authorized representative of the
surety and the bonds must have attached a certified copy of the Power of Attorney
of the signing official.
(Revised 07/09/25)
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E.
Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
1. If one Power of Attorney Is submitted, It must be for twice the total Job
Order Price.
2. If two Powers of Attorney are submitted, each must be for the total Job
Order Price. Personal or individual bonds are not acceptable.
3. Upon the request of any person or entity appearing to be a potential
beneficiary of bonds covering payment of Obligations arising under the
Contract Documents, Contractor must promptly furnish a copy of the bonds
or must permit a copy to be made.
All bonds submitted for this Project must be provided by a company which has
been rated "A or better" by the A.M. Best Company.
ARTICLE 10 - INDEMNIFICATION
10.1 CONTRACTOR’S GENERAL INDEMNIFICATION
To the fullest extent permitted by law. Contractor, its successors, assigns and
guarantors, must 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, reasonable 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 acts, omissions, negligence,
recklessness, or intentional wrongful conduct to the extent caused by Contractor or any
of its owners, officers, directors, agents or 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 Contractor 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 Contractor 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 for Claims arising solely from the
negligent or willful acts or omissions of the City, be indemnified by Contractor from and
against any and all claims. It is agreed that Contractor will be responsible for primary
investigation, defense, and judgment costs where this indemnification is applicable. In
consideration of the award of this Contract Contractor agrees to waive all rights of
subrogation against the City, its officers, agents, representatives, directors, officials, and
employees for losses arising from the work performed by Contractor for the City.
Insurance provisions in this Contract are separate and independent from the indemnity
provisions of this Article and will not be construed in any way to limit the scope and
magnitude of the indemnity provisions. The indemnity provisions of this paragraph shall
not be construed in any way to limit the scope and magnitude and applicability of the
insurance provisions.
10.2 INTELLECTUAL PROPERTY
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Contract No. 2026-009-COS
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A.
Contractor must pay all royalties and license fees associated with its performance
of services.
B.
Contractor must defend any action or proceeding brought against the City based
on any claim that the Work, or any part of the Work, or the operation or use pf the
Work or any part of it, constitutes infringement of any United States patent or
copyright, now or subsequently issued, The City will give prompt written notice to
Contractor of any action or proceeding and will reasonably provide authority,
information and assistance in the defense of the action. Contractor shall indemnify
and hold harmless the City from and agairist all damages, expenses, losses,
royalties, profits and costs, including but not limited to attorneys' fees and
expenses awarded against the City or Contractor in any action or proceeding.
Contractor agrees to keep the City informed of all developments in the defense of
these actions. The City may be represented by, and actively participate through,
its own counsel in any suit or proceedings if it so desires.
C.
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. Contractor
shall at its sole expense take reasonable steps to procure the right to operate or
use the Work. If Contractor cannot procure this right within a reasonable time.
Contractor will promptly, at Contractor’s option and at Contractor’s expense,
without an increase to the Job Order Price, (i) modify the Work so as to avoid
infringement of any patent or copyright or (ii) replace the Work with Work that does
not infringe or violate any patent or copyright.
D.
Articles 10.2(B) and 10.2(C) will not be applicable to any suit, claim or proceeding
based on infringement or violation of a patent or copyright:
1. Relating solely to a particular process or product of a particular
manufacturer specified by the City and not offered or recommended by
Contractor to the City; or
2. Arising from modifications to the Work by the City or Its agents after
acceptance of the Work.
E. The obligations stated in this Article 10.2 will constitute the sole Contract between
the parties relating to liability for infringement of violation of any patent or copyright.
ARTICLE 11 - GENERAL PROVISIONS
11.1 MARSHALING AREA
Contractor shall contact the City of Scottsdale, Development Services to determine the
requirements for obtaining a permit for marshaling areas it proposes to use. Marshaling
areas must be fenced. Contractor will obtain written approval from the property owner
for marshaling area use. This approval must contain any requirements, which are a
condition of this approval. Marshaling yard requirements according to M.A.G.
Subsection 107.6.1 and the City of Scottsdale Supplemental Specifications will apply.
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11^ CONTRACT DOCUMENTS
A.
Contract Documents are as defined in Article 12.
B.
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.
C.
In the event of any inconsistency, conflict, or ambiguity between or among the
Contract Documents, the Contract Documents will take precedence in the order in
which they are listed in the definition of Contract Documents in Article 12. As to
drawings and plans, given dimensions will take precedence over scaled
measurements, and large-scale plans over small-scale plans. Contract
specifications will take precedence over contract plans.
D.
The Contract Documents are intended to permit the parties to complete the Work
and all obligations required by the Contract Documents within the times and prices
agreed upon for each Job Order. The Contract Documents are intended to be
complementary and interpreted in harmony so as to avoid conflict, with words and
phrases interpreted in a manner consistent with construction and design industry
standards.
E.
This Contract, the Plans, Standard Specifications and Details, Special Provisions,
Performance Bond, Payment Bond, Certificates of Insurance, Job Orders and Job
Order Adjustments (if any) are by reference made a part of this Contract to the
same extent as if set forth in full.
F. Work Product
1. 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 which are prepared or procured in the
performance of this Contract (collectively referred to as documents) are to
be and remain the property of the City and are to be delivered to the City
before the final payment is made to Contractor. In the event these
documents are altered, modified or adapted without the written consent of
Contractor or the Subconsultants, which consent Contractor or the
Subconsultants will not unreasonably withhold, the City agrees to hold
Contractor and the Subconsultants harmless to the extent permitted by law
from the legal liability arising out of the City’s alteration, modification or
adoption of the documents.
2. The copyrights, patents, trade secrets or other intellectual property rights
associated with the ideas, concepts, techniques, inventions, processes or
works of authorship developed, created by Contractor, its Subconsultants
or personnel, during the course of performing this Contract or arising out of
the Project will belong to Contractor.
(Revised 07/09/25)
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11.3 MODIFICATIONS
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.
11.4 TIME IS OF THE ESSENCE
Time is of the essence with respect to the dates and times stated in the Contract
Documents.
11.5 COOPERATION AND FURTHER DOCUMENTATION
Contractor agrees to provide the City any other duly executed documents, as vvill be
reasonably requested by the City, to implement the intent of the Contract Documents.
11.6 ASSIGNMENT
Neither Contractor nor the City wiii, without the written consent of the other, assign,
transfer or subiet any portion of this Contract or part of the Work or the obligations
required by the Contract Documents.
11.7 FORCE MAJEURE
Neither party will be responsible for delays or failures in performance resuiting from acts
beyond their control. These acfe Include, but are not limited to, acts of God, riots, acts
of war. acts of terrorism, epidemics, governmental regulations imposed after the fact,
fire, communication line failures, or power failures.
11.8 FUNDS APPROPRIATION
Multiterm contracts for job-order-contracting construction services are subject to AR.S.
§34-607, as amended. If the City Council does not appropriate funds to continue this
Contract and pay for charges, the City may terminate this Contract at the end of the
current fiscal period. The City agrees to give written notice to Contractor at least thirty
(30) days before the end of its current fiscal period and will pay Contractor for all
approved charges incurred through the end of the period.
11.9 CONSTRUCTION METHODS
If the City provides Contractor with a written order to provide adequate maintenance of
traffic, clean-up, dust control or to correct deficiencies or damage resulting from
abnormal weather conditions, and Contractor falls to comply in the time frame specified,
the City may have Work accomplished by other sources at Contractor’s expense, without
an increase in the Job Order Price.
11.10 UTILITY RELOCATIONS FOR CONSTRUCTION METHODS
If any utility Is relocated or rebuilt to accommodate Contractor’s construction methods
and available equipment, the expense will be borne by Contractor and will be replaced
to the original location before completion of the Job Order at the request of the City's
(Revised 07/09/25)
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Contract No. 2026-009-COS
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Project Coordinator at Contractor’s sole expense, without an increase in the Job Order
Price.
11.11 DAMAGED UTiUTIES DURING CONSTRUCTION
Any utilities damaged during construction shall be replaced at Contractor’s expense,
without an increase in the Job Order Price, as per the requirements of the M.A.G.
Standard Specifications.
11.12 SUCCESSORS AND ASSIGNS
This Contract will extend to and be binding upon Contractor, its successors and assigns,
including any individual, company, partnership, or other entity with or into which
Contractor will merge, consolidate, or be liquidated, or any person, corporation,
partnership, or other entity to which Contractor 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 Adrninistrator.
11.13 CONFLICT IN LANGUAGE
All services and Work performed will confoim to all applicable City of Sqottsdale codes,
ordinances and requirements as outlined in the Contract Documents. If ^ere is a conflict
in interpretation between provisions in this Contract and those in exhibits, the provisions
in this Contract will prevail.
11.14 THIRD PARTY BENEFICIARY
Nothing under the Contract Documents will be construed to give any rights or benefits
in the Contract Documents to anyone other than the City and Contractor, and all duties
and responsibilities undertaken in accordance with the Contract Documents will be for
the sole and exclusive benefit of the City and Contractor and not for the benefit of any
other or third party.
11.15 GOVERNING LAW
This Contract and all Contract Documents 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. Any action to enforce any
provision of this Contract or to obtain any remedy with respect to this Contract shall be
brought in the Superior Court of Maricopa County, Arizona, and 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.
11.16 SEVERABILITY
If any provision of the Contract Documents or their application to any person or
circumstance is invalid, illegal or unenforceable to any extent, the remainder of the
Contract Documents 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
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A.R.S. § 41-194.01, as amended, should the Attorney General give notice to the City
that any provisions of the 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 Contractor
shall, within ten (10) days after such notice, negotiate in good faith to resolve any issues
related to the severed provision(s).
11.17 LEGAL REQUIREMENTS
Contractor shall perform all Contract Services in accordance with all Legal
Requirements and will provide all notices applicable to the Contract Services as required
by the Legal Requirements.
11.18 INDEPENDENT CONTRACTOR
The services the Contractor provides to the City are that of an Independent Contractor,
not an employee, or agent of the City. Upon request, the Contractor 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.
Any provisions in the Contract Documents that may appear to give the City the right to
direct Contractor as to the details of accomplishing the Work or to exercise a measure
of control over the Work means that Contractor will follow the wishes of the City as to
the results of the Work only. These results will comply with all applicable laws and
ordinances.
11.19 CITTS RIGHT OF CANCELLATION
This Contract is subject to cancellation by the City of Scottsdale in accordance with the
provisions of A.R.S. § 38-511, as amended.
11.20 SURVIVAL
All warranties, representations and Indemnifications by Contractor shall survive the
completion or termination of this Contract.
11.21 COVENANT AGAINST CONTINGENT FEES
Contractor warrants that no person has been employed or retained to solicit or secure
this Contract upon any contract of understanding for a commission, percentage,
brokerage, or contingent fee, and that no member of the City Council, or any employee
of the City of Scottsdale has any interest, financially, or otherwise, in the firm. For breach
Or violation of this warranty, the City will have the right to annul this Contract without
liability, or at its discretion to deduct from the Contract Price or consideration, the full
amount of any commission, percentage, brokerage, or contingent fee.
11.22 NO WAIVER
The failure of either party to enforce any of the provisions of the Contract Documents,
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or to require performance of the other party of any of its provisions, wiii not be construed
to be a waiver of those provisions, nor will it affect the validity of the Contract Documents
or any part of the Contract Documents, or the right of either party to enforce each and
every provision.
11.23 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.
11.24 NOTICE
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. Notice by electronic mail or facsimile will not be considered
notice.
To City:
City of Scottsdale
Attn: Robert Franklin
Facilities Service Area Manager
9191 E San Salvador Dr.
Scottsdale, Arizona 85258
To JOC Contractor
Sun Eagle Corporation
Attn: Martin Alvarez, Sr.
461 North Dean AvenueChander, AZ 85226
(480) 961-0004____________________
11.25 ADDITIONAL CITY RIGHTS REGARDING SECURITY INQUIRIES
/
Projects may be completed in both secure and non-secure City facilities. All Contractor
and Subcontractor employees may be required to pass mandatory background checks
prior to the start of any Work and be issued access badges by City of Scottsdale
Municipal Security. In addition to the foregoing, the City reserves the right to: (1) have
an employee/prospective employee of Contractor be required to provide fingerprints and
execute any other documentation as may be necessary to obtain criminal justice
information pursuant to A.R.S, § 41-1750(G)(4); (2) act on newly acquired information
whether or not that information should have been previously discovered; (3) unilaterally
change Its standards and criteria relative to the acceptability of Contractor’s employees
or prospective employees; and, (4) object, at any time and for any reason, to an
employee of Contractor performing Work (including supervision and oversight) under
this Contract.
A. Provisions Applicable to all Contractor Contracts and Subcontracts. Contractor will
include the terms of this provision for employee background and; security checks
and screening In all contracts and subcontracts for Work performed under this
Contract, including supervision and oversight.
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B. Materiality of Security Inquiry Provisions. The Security Inquiry provisions of this
Contract, as stated above, are material to the City's entry into this Contract and
any breach by Contractor may, at the City’s sole option and unfettered discretion,
be considered to be a breach of contract of sufficient magnitude to terminate this
Contract. Termination will subject Contractor to liability for its breach of contract.
11.26 HAZARDOUS MATERIALS
A.
Upon discovery of hazardous materials Contractor will comply with all applicable
laws/ordinances and regulations and take all appropriate health and safety
precautions.
B.
Unless included in the Work, if Contractor encounters onsite, or as material to be
incorporated in the Work, any material which it reasonably believes to contain
asbestos, polychlorinated biphenyl (PCB), or other hazardous substances or
materials regulated by public health laws, it will immediately stop work and report
the condition to the City,
C.
if the material is found to contain asbestos, PCB or other hazardous substances or
materials regulated by public health laws. Contractor will not resume Work in the
affected area until the material has been abated or rendered harmless. Contractor
and the City may agree, in writing, to continue Work in non-affected areas onsite.
D.
An extension of Job Order Time may be granted in accordance with Article 5.
E.
Contractor will comply with all applicable laws/ordinances and regulations and take
all appropriate health and safety precautions upon discovery.
F.
Despite the provisions of this Article 11.26, the City Is not responsible for
hazardous conditions or materials introduced to the Site by Contractor,
Subcontractors or anyone for whose acts they may be liable. Contractor will
indemnify, defend and hold harmless the City and the City’s officers, directors,
employees and agents from and against all claims, losses, damages, liabilities and
expenses, including attorneys’ fees and expenses, arising out of or resulting from
those hazardous conditions or materials introduced to the Site by Contractor,
Subcontractors or anyone for whose acts they may be liable.
11.27 TRAFFIC CONTROL
A.
Complete street closures will not be permitted unless specified in the Special
Provisions or approved by the City. The timing and sequence of street closures
will be approved by the Traffic Engineering Director, or designee, at least fourteen
(14) days before the closure. This approval is necessary to provide coordination
with other roadway projects and special events.
B.
Adequate barricades and lighted warning signs must be installed and maintained
by Contractor throughout the duration of any Project. All traffic control must be in
accordance with the current version of the City of Scottsdale Supplement to MAG
Uniform Standard Specifications Section 401 or as required by the approved
barricade plan unless othenwise specified in the Special Provisions.
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C. Contractor will submit a construction schedule and a barricade plan to the City
Traffic Engineering Director, or designee, for approval or modification at least
seventy-two (72) hours before construction is initiated, and must wait to commence
construction until the plan Is signed as accepted by the City Traffic Engineering
Director, or designee.
11.28 MATERIAL SOURCE
No material source has been designated by the City for use under this Contract. MAG
Specification, Section 106 will apply as will ADOT Standard Specifications 1982, Section
106.1, 106.2, 106.7 & 106.8, which outline controls and Section 1001-1, -2, & -4
concerning approval of Contractor-Furnished Source and supplemental Contracts in
regards to environmental analysis and the liability for materials testing costs.
Contractor and Subcontractor furnished material sources situated in the 100-year flood
plain of any stream or watercourse will not be allowed if located within 1.0 mile upstream
and 2.0 miles downstrearn of any highway structure or surfaced roadway crossing.
A Contractor and Subcontractor-furnished source will be defined as a matenal source,
which is neither an ADOT furnished source nor a commercial source, as defined in this
Contract.
A commercial source will be defined as a material source in which the owner or producer
has been regularly engaged for at least one (1) year during regular business hours on a
regular basis in the processing and selling of sand, rock, ready mixed Portland cement
concrete, asphaltic concrete and other similar products normally produced and sold to
ail parties. The company must have an Arizona retail sales tax license.
The location of any new material source or existing non-commercial material source
proposed for use under this Contract must be reviewed by the appropriate agency
having flood plain management jurisdiction over the area of proposed source location.
Contractor and Subcontractor will obtain a letter from the agency addressed to the
Contract Administrator certifying that the proposed source location conforms to the
required conditions and the applicable Standard Specifications. Contractor will
familiarize himself with the nature and extent of the Contract Documents, work to be
performed, all local conditions, and federal, state and local laws, ordinances, rules and
regulations that in any manner may affect cost, progress or performance of the Work.
11.29 FAMILIARIZATION WITH APPLICABLE LAWS
Contractor will familiarize itself with the nature and extent of the Contract Documents,
work to be performed, all local conditions, and federal, state and local laws, ordinances,
rules and regulations that in any manner may affect cost, progress or performance of
the Work.
11.30 NATIVE PLANTS
Contractor agrees it will take whatever steps, procedures or means necessary to
remove, move, displace and save all native plants within the contract work area in
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accordance with the City of Scottsdale Revised Code, as amended, and all applicable
state and county statutes, ordinances, codes and other policy requirements and
recognized methods, procedures, techniques and equipment for protection, salvage,
and handling of all plants to be moved from the construction area. This is not a pay item
unless specified upon the Schedule of Bid Items.
11.31 ENDANGERED HARDWOODS
Contractor agrees any construction, building addition or alteration project which is
financed by monies of this state or its political subdivisions will not use endangered
tropical hardvl/ood unless an exemption is granted by the Director of the State of Arizona,
Department of Administration,
11.32 CONSTRUCTION ACTIVITY
Contractor agrees that all construction activity occurring on Site shall conform to the
hour and noise requirements of the City of Scottsdale Revised Code, as amended.
11.33 COMPLIANCE WITH LOCAL, STATE AND FEDERAL LAWS
A. Contractor 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 Contractor’s labor and
employment practices. Contractor agrees to comply with these laws in performing this
Contract and to permit the City to verify compliance. Contractor further agrees that
any violation of provision on the part of Contractor, its employees, agents or assigns
will constitute a material breach of this Contract.
Contractor 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. Contractor 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, Contractor warrants to the City that
Contractor and ail its Subcontractors will comply with all Federal Immigration
laws and regulations that relate to its employees and that Contractor and ail its
Subcontractors now comply with the E-Verify Program under A.R.S. §23-214(A).
A breach of this warranty by Contractor or any of its Subcontractors will be considered
a material breach of this Contract and may subject Contractor 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 Contractor or
any Subcontractor who works on this Contract to ensure that Contractor or any
Subcontractor is complying with the warranty given above.
The City may conduct random verification of the employment records of Contractor
and any of its Subcontractors to ensure compliance with this warranty. Contractor
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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.
The City will not consider Contractor or any of its Subcontractors in material breach of
this Contract if Contractor 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.FI.S. §23-214(A), as amended. The “E-Verify Program" means the employment
verification pilot 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 Contractor enters into
with any and all of its Subcontractors who provide services under this Contractor any
Subcontract. “Services” are defined as ftimlshing 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. Contractor will take appropriate steps to assure that ail Subcontractors
comply with the requirements of the E-Verify Program. Contractor’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.
B. Compliance with Americans with Disabilities Act. Contractor acknowledges that, in
accordance with 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. Contractor will 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. Coiitractor
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 provision on the part of Contractor, its employees, agents or assigns will
constitute a material breach of this Contract.
C. Equal Employment Qpportunitv and Discrimination. For the duration of this Contract,
Contractor 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, sexuai
orientation, gender identity, or U.S. militaiy status. City of Scottsdale Revised Code,
Chapter 15 mandates Contractor compliance with the policies contained therein.
Contractor agrees that any violation of provision on the part of Contractor, its
employees, agents or assigns will constitute a material breach of this Contract.
Contractor will include the terms of this provision in ail contracts and subcontracts for
work performed under this Contract, including supervision and oversight. The
Contractor will, in all solicitations or advertisements for employees placed by or on
behalf of the Contractor, state that ail qualified applicants will receive consideration for
employment without regard to race, color, religion, sex, sexual orientation, gender
identity, or national origin.
D. No Preferential Treatment or Discrimination. In accordance with the provisions of
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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, Contractor
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.
E. Advertisino. No advertising or publicity concerning the City using Contractor’s services
shall be undertaken without prior written approval of such advertising or publicity by
the Contract Administrator and the City Attorney.
11.34 DATA CONFIDENTIALITY
A.
As used in this 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 Contractor in the performance of this
Contract.
B.
The parties agree that ail data, including originals, images, and reproductions,
prepared by, obtained by, or transmitted to Contractor in connection with
Contractor’s jaerformance of this Contract is confidential and proprietary
information belonging to the City.
C.
Contractor will not divulge data to any third party without first obtaining the written
consent of the City. Contractor 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 provided Contractor has first given the required notice to the
City:
1. Data, which was known to Contractor before its performance under this
Contract unless the data was acquired in connection with the Work
performed for the City;
2. Data which was acquired by Contractor in its performance under this
Contract and which was disclosed to Contractor by a third party, who to the
best of Contractor’s knowledge and belief, had the legal right to make
disclosures and Contractor is not otherwise required to hold the data in
confidence; or
3. Data, which is required to be disclosed by virtue of law, regulation, or court
order to which Contractor is subject.
D.
In the event Contractor is required or requested to disclose data to a third party, or
any other information to which Contractor became privy as a result of any other
contract with the City, Contractor will first notify the City as required in this Article
of the request or demand for the data. Contractor will give the City sufficient facts
so that the City can be given an opportunity to first give its consent or take any
action the Cify may consider appropriate to protect the data or other information
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from disclosure.
I
E.
Unless prohibited by law, within ten (10) days after completion of services for a
third party on real or personal property owned or leased by the City, Contractor will
prorriptly deliver, as stated in this Article, a copy of all data to the City. All data will
continue to be subject to the confidentiality requirements of this Contract.
F.
Contractor 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 Contractor, its employees, agents 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.
11.35 CONFLICT OF INTEREST
A.
B.
C.
D.
E.
To evaluate and avoid potential conflicts of interest. Contractor vinli provide written
notice to the City, as stated in this Article, of any work or services performed by
Contractor for third parties that rhay involve or be associated with any real property
or personal property owned or leased by the City. The notice will be given seven
(7) business days before commencement of the Project by Contractor 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 City Senior Representative
identified in Article 7.4.
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
3. Using data to produce income for Contractor or Its employees
independently of performing the services under this Contract, without first
obtaining the written consent of the City.
Contractor represents that except for those persons^ entities and projects identified
to the City, the services to be performed by Contractor 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;
Contractor’s failure to provide a written notice and disclosure of the information
stated in this Article on Conflicts of Interest will constitute a material breach of this
Contract.
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
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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.
11.36 COMMENCEMENT OF STATUTORY LIMITATION PERIOD AND STATUTE OF
REPOSE
A.
Before Final Completion. As to acts or failures to act occurring before the relevant
date of Filial Completion, any applicable statute of limitations will commence to run
and any alleged cause of action will be considered to have accrued in any and ail
events not later than the date of Final Completion.
B.
Between Punch List Preparation and Final Completion. As to acts or failures to
act occurring between the relevant date of Punch List Preparation and before Final
Completion, any applicable statute of lirnitation will begin to run and any alleged
cause of action will be considered to have accrued in any events not later than the
date of Final Completion.
C.
After Completion. As to acts or failures to act occurring after the date of Final
Completion, any applicable statute of limitations will commence to run and any
alleged cause of action will be considered to have accrued in any and all events
not later than the date of any correction of the Work or failure to correct the Work
by the Contractor, or the date Of actual commission of any other act or failure to
perform any duty or obligation by the Contractor or the City, whichever occurs last.
D.
Statute of Repose. The time period for the applicable Statute of Repose will
commence to run at the time specified in A.R.S. §12-552 as it is amended or
renumbered from time to time.
11.37 LOSS AND DAMAGES
AH loss or damage arising out of the nature of the Work to be done or from the action of
the elements, or from any Unforeseen circumstances, in the prosecution of the same, or
from any unusual obstructions or difficulties which may be encountered in or during the
prosecution of the Work, or from any casualty whatsoever of every description, will be
sustained and borne by Contractor at its own cost and expense.
11.38 RIGHTS-OF-WAY
The M.A.G. Standard Specification 107.12 is modified to read as foilows: “Contractor, at
its own expense, is responsible for the acquisition of any necessary temporary
easements for construction purposes, storage and maintenance purposes, which are
required in addition to existing easements or rights of way secured by the City as
indicated upon the plans.*^
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11.39 EXISTING TRAFFIC AND STREET SIGNS AND TRAFFIC SIGNAL EQUIPMENT
Contractor will use due care when excavating at or near intersections where traffic signal
underground conduit is located. Contractor will notify the Transportation Maintenance
Traffic Signal Division (tel. 480.312.5620) at least forty-eight (48) hours in advance of
any work at the intersections. Contractor Will be responsible for the installation and
maintenance of temporary overhead traffic signal cable as specified by tfie Traffic
Engineering Director when underground conduit is to be severed by excavations at the
intersection. The Transportation Maintenance Manager will have all underground traffic
conduit located and will provide the necessary City Technicians to assist Contractor in
identifying wiring phases and direction of conduit runs upon twenty-four (24) hours’
notice from Contractor and at least one (1) day before Contractor’s scheduled wiring and
installation of temporary cables. Contractor will be responsible for the wiring and
connection of all temporary cable within the pull boxes and terminal compartments. The
Transportation Maintenance Manager will provide a City technician to assist Contractor
with connecting field wiring within the traffic signal control cabinet. Contractor will
provide, at Its expense, an off-duty uniformed Police Officer to direct traffic while the
traffic signal is turned off and the wiring is transferred. Contractor will be responsible as
specified by the Traffic Engineering Manager for the repair and restoration of ail traffic
signal overhead and underground Items that have been damaged or modified. The City
does not permit the splicing of Magnetic Detector Loops.
11.40 CERTIFICATION OF USE OF BENCHMARKS
In compliance with the City’s Design Standards & Policies Manual (DS&PM), Sections
9-1.1 and 9-1.301, it is the City’s intent that Contractor must use both horizontal and
vertical benchmarks with City of Scottsdale published values for any survey on all public
works projects. These published values are available for public use at the following
website:
httDs://eservicesscottsdaleaz.qov/maDs/benchmarks. AT LEAST 1
HORIZONTAL AND 1 VERTICAL BENCHMARK MUST MATCH THE NORTHING.
EASTING OR ELEVATION VALUES PUBLISHED ON THE CITY’S WEBSITE. If
required by the City. Contractor must sign and submit with this Contract, the Certificate
of Use attached and by reference made a part of this Contract.
11.41 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. Contractor, its Subcontractors, Subconsultants and Suppliers, shall pay all
Federal, state and local taxes applicable to its operation and any persons employed by
Contractor, its Subcontractors, Subconsultants arid Suppliers, except as may be
otherwise provided in this Contract. Contractor 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.
11.42 ISRAEL BOYCOTT/FORCED LABOR PROVISIONS
By executing this contract. Contractor certifies that it is not currently engaged in and will
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not for the duration of this contract engage in boycott activity proscribed by A.R.S. § 35-
393 et seq, as amended.
Pureuant to A.R.S. § 35-394, as amended, Contractor 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 labor or any goods
or services produced by the forced labor of ethnic Uyghurs in the People's Republic
of China.
If Contractor becomes aware during the term of this Contract that Contractor is not in
compliance with this Article, Contractor shall notify the City within five (5) business days
after becoming aware of the noncompliance. Failure of Contractor to provide a written
certification that Contractor 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 eariier contract termination, cancellation, or expiration date
applies,
ARTICLE 12 ~ DEFINITIONS
“Allowance” means an agreed amount by the City and Contractor for items which may be required
to complete the scope of work.
“As-built Document” - “As-built in construction is equivalent to “as-is." Drawings deemed “as-
built” are final drawings that indude all changes made during the actual construction process.
These drawings represent the actual existing constructed conditions as opposed to designs or a
proposed condition. The As-built Documents should be per A.R.S. § 32-152.
“Blueline or Blackline Prints” - Prints that allows comparison of document versions to show what
has been revised.
“City” means the City of Scottsdale, Arizona, an Arizona municipal corporation. Regulatory
activities handled by the City of Scottsdale Development Services, Planning and Fire
Departments or any other City department are not subject to the responsibilities of the City under
this Contract.
“City’s Representative" means the person designated in /^icle 7.4(A)(2).
"City’s Senior Representative" means the person designated in Article 7.4(A)(1).
“Construction Coordinator” means a City employee who coordinates the daily construction
activities with Contractor, and \with their inspection staff that performs quality control inspections,
enforces project plans and specifications and adopted City codes and ordinances.
“Construction Documents” means the plans, specifications and drawings prepared by the Design
Professional after correcting for pennit review requirements and incorporating addenda and
approved Job Order Adjustments.
(Revised 07/08/25)
Page 61 of 66
Contract No. 2026-009-GOS
Solicitation No. RFSQ-022025-236
“Construction Fee” means Contractor’s home office overhead and profit, whether at Contractor’s
principal or branch offices, this includes the home office costs and any limitations or exclusions
that may be included in the General Conditions for the construction phase.
“Contract” dr “Job Order Contract” means this fully executed Contract between the City and
Contractor.
“Contract Administrator" means the person designated in Article 7.4(A) or designee. The Contract
Administrator will serve as Contractor’s primary point of contact with the City, monitor Contractor’s
performance, review and approve invoices, establish delivery schedules, and in conjunction with
Purchasing ensure Certificates of Insurance are current, conform to the requirements of this
Coritfact, and are in the City’s possession. Contractor will direct any reports and/or special
requests to the Contract Administrator.
“Contract Documents" means the following items and documents in descending order of
precedence executed by the City and Contractor: (1) Change Orders; (2) Job Order Adjustments;
(3) Contract Modifications; (4) Job Orders; (5) this Contract including all exhibits and attachments;
(6) Contractor’s Proposal (if any); (7) Contractor Statement of Qualifications.
“Contract Modification” means a specific written concurrence between the City and Contractor for
changes to this Contract consistent with the City of Scottsdale Procurement Code, as amended.
“Contract Price” means the amount or amounts stated in Article 4 subject to any Contract
Modifications.
“Contract Services” means the services required by the Contract Documents.
“Contract Time(s)” means the time stated in Article 3, subject to Contract Modifications as
permitted by this Contract.
“Contractor” is Contractor selected by the City to provide or procure construction services as
detailed in this Job Order Contract.
"Contractor Payment Request” means the Cih^ form used by Contractor to request progress
payments for Job Orders In accordance with Article 6.
"Contractor’s Representative” means the person described in Article 7.4(B)(2).
’’Contractor's Senior Representative" means the person described in Article 7.4(B)(1).
“Day(s)” means calendar days unless othenwise specifically noted in the Contract Documents.
“Delay” means an unanticipated event or interference with the progress of a critical path work
activity being performed at the time that causes the completion date of the project to be extended.
Delays may be caused by the City, Contractor, third parties or Force Majeure events. Delays may
be excusable, compensable, non-compensable or concurrent.
“Delay, Compensable" means delay that results from the City’s actions or inactions that entitle
Contractor to both a time extension and delay damages.
“Delay, Concurrent” means two (2) or more delays, within the same timeframe, both of which
(Revised 07/09/25)
Page 62 of 66
Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
would independently impact the Project Schedule. If one delay is caused by the City and the
other by Contractor, Conlractor will generally be entitled to an excusable, hon-compensable time
extension, to the degree the delays may “overlap.”
“Delay, Excusable” means an unforeseeable delay caused by an event beyond the control and
without the fault or negligence of Contractor (including its Suppliers and Subcontractors).
Excusable delays may be compensable or non-cornpensable, depending upon whether the terms
of the Contract or the law allows recovery of delay costs. Unless otherwise shown, it will generally
be presumed that these delays are non-compensabie.
“Delay, Non-Excusable” means a delay within the control of Contractor, Its Suppliers and
Subcontractors, or a delay resulting from a risk taken by Contractor under the terms of the
Contract. Contractor will not be due any time extension or delay damages, and may be
responsible for paying to the City, actual or liquidated damages for the delay.
“Deliverables” means the work products prepared by Contractor in performing the scope of work
described in this Contract. Some of the major deliverables to be prepared and provided by
Contractor may include, biit are not limited to: Construction Management Plan, Project Schedule,
Schedule of Values, alternative system evaluations, procurement strategies and plans, cost
estimates, eonstmction market surveys, cash flow projections. Subcontractor procurement plan.
Subcontractor Contracts, Subcontractor bid packages. Supplier Contracts, and others as
indicated in this Contract or required by the Project Team.
“Design Professional” means a qualified, licensed design professional who fUmishes design or
construction administration services.
“Differing Site Conditions” comply with M.A.G. Standard Specifications, Subsection 102.4.
“Effective Date” means the date that this Contract takes effect and becomes operative and
enforceable. The Effective Date of this Contract shall be the date on which it is executed by the
City, as noted at the beginning of this Contract.
“Field Order” means a written field directive prepared and signed by the City, directing a change
in work that may or may not include an adjustment in contract price or contract time.
“Final Acceptance” means the completion of a Job Order as prescribed in Article 3.5.
“Informational Submittals” - Submittals are required (cornmon with construction projects) for the
architect and engineer to verify that the correct products and quantities will be installed on a
project.
“Job Order" or “Project” means a specific scope of Contract Services done pursuant to an
Individual Job Order and includes a specific written Contract between the City and Contractor for
a Job Order Including a Scope of Work, a Job Order Price, a Job Order Time and any special
conditions that may apply to be performed under this Contract. The Job Order Includes the plans,
technical specifications, special provisions and Contractor’s proposal either by reference or
inclusion.
“Job Order Adjustmenf or “Adjustment’ means a written order signed by an authorized
representative of the City and which approves changes in the Work required under a Job Order,
the Job Order Price, or the Job Order Time consistent with the City of Scottsdale Procurement
(Revised 07/09/25)
Page 63 of 66
Contract No. 2026-G09-COS
Solicitation No. RFSQ-022025-236
Code, as amended.
“Job Order Notice-to-Proceed," (NTP) means a written notice given by the City to Contractor fixing
the date on which Contractor will start to perform Contractor’s obligations under that individual
Job Order.
“Job Order Price” means the amount negotiated between Contractor and the City for an individual
Job Order that includes costs, overhead, bonding, insurance, profit and other costs as agreed to
and calculated on the Unit Prices, Cost-coefficient and Special Items as prescribed in Article 4.
“Job Order Time” or “Duration of the Work” means the number of Days from a Job Order Notice-
to-Proceed to Substantial Corhpletion. The approved Job Order Time will be made part of this
Contract by executing an individual Job Order for that specific Project.
“Legal Requirements” means all applicable federal, state and local laws, codes, ordinances,
rules, regulations, orders and decrees of any government or quasi-government entity having
jurisdiction over a Project or Site, the practices involved in a Project or Site, or any Work.
“Liquidated Damages” means an amount Contractor will pay in compliance with Article 3.6.
“Must” and “will” as used in this Contract are mandatory.
“Owner Agent," “City’s Agent” or “Owner Representative" see “City’s Senior Representative."
“Payment Request” means a monthly progress payment request that is based on a monthly
estimate of the dollar value of the Work completed.
“Product Data" means illustrations, standard schedules, perforrnance charts, instructions,
brochures, diagrams and other information furnished by Contractor to illustrate materials or
equipment for some portion of the Work.
“Professional Certification" - Professional certification is a designation which indicates that a
person is qualified to perform a job or task. Professional certification can be trade certification or
professional designation.
“Project Record Documents” means the documents created pursuant to Article 1.9.
“Project Record Drawing Prints” - Set of current design drawings used by construction contractor
for reference during construction. These drawings are typically marked up duririg the constaiction
process and are used to develop the subsequent “as-built” drawings.
“Punch Lisf means those minor items of Work to be completed before Final Acceptance which
do not prevent the Project from being used for the purpose for which it is intended and which will
not prevent the issuance of a Certificate of Occupancy.
“Samples” means physical examples, which illustrate materials, equipment or woritmanship and
establish standards by which the Work will be judged.
“Schedule of Values (SOV)" means the Document specified In the construction phase, which
divides the Job Order Price into pay items, such that the sum of all pay items equals the Job Order
(Revised 07109125)
Page 64 of 66
Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
Price for the construction phase Work, or for any portion of the Work having a separate specified
Job Order 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 Contractor or a Subcontractor, Sub-subcontractor, manufacturer, supplier or distributor
to Illustrate some portion of the Work.
“Site" means the land or premises on which a Job Order is located. Contractor will require all
Subcontractors to include the street address of the Job Order in their contracts.
“Specifications” rneans those sections 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" or “Subconsultant” means any person or entity retained by Contractor as an
independent coritractor to perform a portion of the Contract Services and must Include material
men and suppliers. All Subcontractors rtiust be selected in accordance with the selection plan
stated in Article 1.13.
“Substantial Completion” means 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 it for its
intended purposes. This may include, but is not limited to: (1) approval by the City pire Marshall
and local authorities (Certificate of Occupancy); (2) issuance of elevator permit; (3) demonstration
to the City that all systems are in place; functional, and displayed to the City dr its representative;
(4) Installation of all materials and equipment; (5) City review and acceptance of all systems; (6)
City review and acceptance of draft O&M manuals and record documents; (7) City operation and
maintenance training completed; (8) HVAC test and balance completed [provide mininnum 30
days before projected substantial completion]; (9) completed landscaping and site work; and (10)
final cleaning.
“Supplier” means a manufacturer, fabricator, supplier, distributor, material man or vendor having
a direct contract with Contractor or any Subcontractor to furnish materials or equipment to be
incorporated in the construction phase work by Contractor or any Subcontractor.
“Work” means 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 constmction, and performing or furnishing services and documents as required
by the Contract Documents for the construction phase.
[END OF TEXT- SIGNATURE PAGE TO FOLLOW]
(Revised 07/09/25)
Page 65 of 66
Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
CITY OF SCOTTSDALE, ARIZONA
CONTRAa NO. 2026-009-COS
CONTRAa
This Contract has been properly executed by the parties above named, on the date and year written above, to
be retained by the City Clerk.
Contractor agrees that this Contract, as awarded, is for the stated Work and understands that payment fpr the
Work will be made on the basis of the Indicated amount, per the terms and conditions of this Contract.
CITY OF SCOTTSDALE, an
Arizona municipal corporation
By:______________________
Lisa Borowsky, Mayor
ATTEST:
Ben Lane, City Clerk
CONTRACTOR:
Sun Eagle Corporation, an Arizona Corporation
By:.
/Hartui^ivarez. Sr
3/6/26 09:46 MST
Name: Martin Alvarez
Title: CEO and President
RECOMMENDED:
4^yj
3/9/26 06:49 MST
Robert Franklin
Contract Administrator
3/9/26 06:55 MST
Jenn Myers, MPA, CPPO, NiGP-CPP, CPPB
Purchasing Director
(jaari^Wooik^r.
George Woods
Safety & Risk Management Director
APPROVED AS TO FORM:
3/10/26 09:44 MST
3/10/26 09:58 MST
Luis E. Santaella, Interim City Attorney
By: Lydia Tulin, Assistant City Attorney
(Revised 07/09/25)
Page 66 of 66
Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
EXHIBIT A
STATUTORY PERFORMANCE BOND
PURSUANT TO TITLE 34. CHAPTER 6,
OF THE ARIZONA REVISED STATUTES
{Penalty of this bond must be 100% of the Contract Amount)
KNOW ALL MEN BY THESE PRESENTS:
That ______________________
_ _____ (hereinafter caiied the Principal) as Principal, and
___________________________, a corporation organized and existing under the iaws of the State of
_________________with its principal office in the City of_______________________ , (hereinafter called
the Surety), as Surety, are held and firmly bound unto the City of Scottsdale, County of Maricopa, State of
Arizona in the amount of___________________________ ^Dbilars ($
1. for the payment
whereof, the said Principal and Surety bind themselves, and their heirs, administrators, executors
successors and assigns, jointly and severally, firmly by these presents.
WHEREAS, the Principal has entered into a certain written contract with the City of Scottsdale, dated the
___ day of_______________ _, 2026, for Bid No. (bid number). Project No, (project number), (project
name), which contract is hereby referred to and made a part hereof as fully and to the same e)dent as if
copied at length herein.
NOW THEREFORE, the condition of this obligation is such, that if the Principal faithfully performs and fulfills
all of the undertakings, covenants, terms, conditions and Contracts of the contract during the original term
of the contract and any extension of the contract, with or without notice to the surety, and during the life of
any guaranty required under the contract, and also performs and fulfills all of the undertakings, covenants,
terms, conditions and Contracts of all duly authorized modifications of the contract that may hereafter be
made, notjce of which modifications to the surety being hereby waived, the above obligation is void.
Otherwise it remains in full force and effect.
PROVIDED HOWEVER, that this Bond is executed pursuant to the provisions of Title 34, Chapter 6,
Arizona Revised Statutes, and all liabilities on this Bond will be determined in accordance with the
provisions of Title 34, Chapter 6, Arizona Revised Statutes, to the extent as if it were copied at length in
this Contract. The prevailing party in a suit on this bond will recover as part of the judgrnent reasonable
attorney fees that may be fixed by a Judge of the Court. The performance under ttiis bond is limited to the
construction to be performed under the contract and does not include any design services, preconstruction
services, financial services, maintenance services, operations services or any other related services
included in the contract.
Witness our hands the
. day of.
2026.
PRINCIPAL
BY:
SURETY
(SEAL)
AGENCY OF RECORD
AGENCY ADDRESS
(Revised 03/17/25)
Page 1 of 1
Contract No. 2026-009-COS
Solicitation No. RFSQ-022025-236
EXHIBIT B
STATUTORY PAYMENT BOND
PURSUANT TO TITLE 34. CHAPTER 6,
OF THE ARIZONA REVISED STATUTES
(Penalty of this bond must be 100% of the Contract Amount)
KNOW ALL MEN BY THESE PRESENTS:
That,
(hereinafter called the Principal), as Principal, and
. a corporation organized and existing under the laws of the
_, with its principal office in the City of
State of;____________
(hereinafter called the Surety), as Surety, are held and firmly bound unto the City of Scottsdale.
County of Maricopa, State of Arizona, in ^e amount of__________________________ Dollars
($^________________), for the payment whereof, the said Principal and Surety bind themselves,
and their heirs, administrators, executors, successors and assigns, jointly and severally, firmly by
these presents.
WHEREAS; the Principal has entered into a certain written contract with the City of Scottsdale
dated the_____ day of_________________, 2026, for Bid No. (bid number). Project No.
(project number), (project name), which contract is hereby referred to and made a part hereof as
fully and to the same extent as if copied at length herein.
NOW, THEREFORE, the condition of this obligation is such that if the Principal promptly pays all
monies due to all persons supplying labor or materials to the Principal or the Principal's
subcontractors in the prosecution of the work provided for in the contrad, this obligation is void.
Otherwise it remains in full force and effect.
PROVIDED, HOWEVER, that this bond is executed pursuant to the provisions of Title 34, Chapter
6, of the Arizona Revised Statutes, and all liabilities on this bond will be determined in accordance
with the provisions, conditions and limitations of Title 34, Chapter 6, Arizona Revised Statutes, to
the same extent as if they were copied at length in this Contract.
The prevailing party in a suit on this bond will recover as a part of the judgment reasonable
attorney fees that may be fixed by a Judge of the Court
WITNESS our hands the
day of
., 2026.
PRINCIPAL
BY:
SURETY
(SEAL)
AGENCY OF RECORD
AGENCY ADDRESS
(Revised 03/17/25)
Page 1 of 1
i
Contract No. 2026-010-COS
Solicitation #RFSQ-022025-236
^
rrt
[{w
CITY OF SCOTTSDALE
JOB ORDER CONTRACT
NO. 2026-010-COS
ATTACHMENTS
(Revised 03/17/25)
RliioTnV RiinHIp in- HrFniRK77i
Contract No. 2026-010-COS
Solicitation #RFSQ-022025-236
TABLE OF CONTENTS
RECITALS....................... ..................... .................... .........................................................1
ARTICLE 1 - CONTRACTOR’S SERVICES AND RESPONSIBIUTIES..,.................................1
ARTICLE 2 - CITY’S SERVICES AND RESPONSIBILITIES................................ ........ ........18
ARTICLE 3 - CONTRACT TIME AND JOB ORDER TIME...................................................21
ARTICLE 4- CONTRACT PRICE AND JOB ORDER PRICE................. ...............................23
ARTICLE 5 - CHANGES TO THE CONTRACT PRICE AND TIME.................... ..........25
ARTICLE 6 - PROCEDURE FOR PAYMENT..... ..... ........... .............................30
ARTICLE 7 - CLAIMS AND DISPUTES............................................. ...............................34
ARTICLE 8 - SUSPENSION, TERMINATION AND CANCELLATION.................................. ..36
ARTICLE 9 - INSURANCE AND BONDS ............... ................. ..........................39
ARTICLE 10 - INDEMNIFICATION.....................................................................................46
ARTICLE 11 - GENERAL PROVISIONS......
................ ........... ............... .....50
ARTICLE 12 - DEFINITIONS................................. .................................. ..........................61
EXHIBIT A - STATUTORY PERFORMANCE BOND
EXHIBIT B - STATUTORY PAYMENT BOND
(Revised 03/17/25)
I
Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
eiTY OF SGOTTSDALE
CONTRACT NO. 2026-010>COS
THIS CONTRACT, (“Contract”) is entered into this
day of
2026.
(“Effective Date”) between the City of Scottsdale, an Arizona municipal corporation (“City”) and
Wilimeng Construction Inc., an Arizona Corporation, ("Contractoi^).
RECITALS
A.
The Mayor of the City of Scottsdale, Arizona, is authorized and empowered by the
provisions of the City Charter to execute contracts for construction and related services.
B.
The City intends to contract for construction and related services with Contractor for one
or more individual Job Orders.
C.
Contractor has represented to the City the ability to provide or procure the required
construction and related services and, based on this representation, the City engages
Contractor for these services.
FOR AND IN CONSIDERATION of the mutual covenants and considerations contained in this
Contract, it is agreed by the City and Contractor as follows:
ARTICLE 1 - CONTRACTOR’S SERVICES AND RESPONSIBILITIES
1.1. GENERAL SERVICES
A.
Contractor will furnish any and all labor, materials, equipment, transportation,
utilities, services and facilities specified in the individual Job Order for which it is
issued a Job Order Notice-to-Proceed for Work in accordance with this Contract.
The City may determine it is in its best interest to furnish materials and equipment
for an individual Job Order in accordance with the Job Order.
B.
The Work wili be performed in a good, workmanlike and substantial manner and
to the satisfaction of the City Engineer and under the monitoring of the City
Engineer, or designee^ with the care and skill of a qualified contractor in Scottsdale,
Arizona.
1. Minor design services may be required for some Job Orders. For those Job
Orders that may require minor design services. Contractor will seek the
services of an Arizona registered architect or engineering professional to
prepare plans for permitting. The pfocurementof minor design services will
be in accordance with the City’s procurement procedures and code. If the
services of a design professional are used, the design professional must
maintain at least $1,000,000 Professional Liability Coverage.
2. All documents prepared by Contractor are subject to review by the City.
Review by the City is for the benefit of the City only, is not intended to be
for the benefit of any other person and does not relieve Contractor from the
(Revised 07/09/25)
Page 1 of 66
Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
professional liability associated with the documents they have prepared.
3. Contractor’s Representative shall be reasonably available to the City and
will have the necessary expertise and experience required to supervise the
Contract Services. A Contractor’s Representative will be assigned for each
Job Order. Contractor’s Representative will communicate regularly with the
City and will be vested with the authority to act on behalf of Contractor.
C. The City is a member of $AVE cooperative purchasing group. $AVE includes the
State of Arizona, Maricopa County, many Phoenix metropolitan area
municipalities, and many K-12 unified school districts. Under $AVE Cooperate
Purchasing Agreement, and with the concurrence of successful Respondents
under this solicitation, a member of $AVE may access a contract resulting from
this solicitation issued by the City. By signing the JOC Contract, Contractor agrees
to allow other $AVE members the ability to purchase their needs and “use” this
contract for JOC requirements.
1.2. GOVERNMENT APPROVALS AND PERMITS
A.
Unless otherwise provided. Contractor will obtain or assist the City in obtaining all
necessary permits, approvals and licenses required for the prosecution of the Work
from any government or quasl-govemment entity having jurisdiction over the
Project. Contractor is responsible for obtaining payment for the necessary
environmental permits or file the necessary environmental notices.
B.
Copies of these permits and notices must be provided to the City’s Representative
before starting the permitted activity. This provision does not constitute an
assumption by the City of, an obligation of any kind for violation of the permit or
notice requirements.
C.
The City Is responsible for the City of Scottsdale review and permit(s) fees for
building and demolition permits. The City will pay City review fees for grading and
drainage, water, sewer, storm water management, and landscaping. The City will
also pay for City utility design fees for permanent services.
D.
Contractor is responsible for all other permits and review fees not specifically listed
In Article 1.2(C) above.
E.
Contractor is responsible for the cost of construction-related water meter(s), water
and sewer taps, fire lines and taps, and all water bills on the project meters until
Substantial Completion of the Project Arrangements for construction water will be
Contractor's responsibility. Construction water does not include “test water”
required to complete new water line pressure tests.
F.
The M.A.G. Standard Specification 107.12 is rriodified to read as follows;
“Contractor, at its own expense, is responsible for the acquisition of any necessary
temporary easements for construction purposes, storage, maintenance, and
refuse haul-bff as indicated upon the plans, which are required in addition to
existing easements or rights-of-way secured by the City:”
(Revised 07/09/25)
Page 2 of 66
Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
1.3. PRE-CONSTRUCTION CONFERENCE
A.
After issuance of a Job Order and before the commencement of any Work on any
individual Job Order, a pre-construction conference may be scheduled.
B.
The purpose of this conference is to establish a workirig relationship between
Contractor, design firms, utility firms, and various City departments. The agenda
will include critical elements of the work schedule, submittal schedule, level of
Record Drawings required, cost breakdown of major lump sum items, payment
application and processing, coordination with the utility firms involved, and
emergency telephone numbers for all representatives involved in the course of
construction.
C.
At a minimum, attendees will include Contractor Representative, who is authorized
to execute and sign documents on behalf of the firm, the job superintendent, and
Contractor’s safety officer.
D.
The Job Order Notice-to-Proceed date vwll be established.
E.
Contractor will provide a Baseline Project Schedule indicating duration, manpower
and equipment resources required to complete all major work activities. The City
and Design Team will review and comment on the Baseline Project Schedule.
Contractor will revise the Baseline Project Schedule to the satisfaction of the City’s
Representative. No work will begin until the City accepts the Baseline Project
Schedule.
F.
Contractor will submit a Schedule of Values based on the work and bids accepted
from selected Subcontractors. These values will reflect the actual labor time,
materials, profit and overhead for the Work or in accordance with Contractor’s price
book.
1.4. CONTROL OF THE WORK
Contractor will properly guard and protect all partially finished work and will be
responsible for ^e Woric until the entire Job Order is completed and accepted by the
City. Any payment for completed portions of the Work will not release Contractor from
this responsibility; however, he will turn over the entire Work in full compliance with the
specifications or Job Order before final settlement is made. In case of suspension of the
Work for any cause whatever. Contractor is responsible for the Project and will take all
precautions necessary to prevent damage to the Project and will erect any necessary
temporary structures, signs, or other facilities at no cost to the City.
A.
After all Work under the Job Order is completed. Contractor will remove all loose
concrete, lumber, wire, reinforcing, debris and other materials not incorporated in
the Work from the site of the Project.
B.
Unless the Job Order states that it is the responsibility of the City or a separate
contractor. Contractor will provide through itself or Subcontractors the necessary
supervision, labor, inspection, testing, start-up, material, equipment, machinery,
temporary utilities, other temporary facilities, temporary fencing, roll-offs, and dust
(Revised 07/0^25)
Page 3 of 66
Contract No. 2026-010-GOS
Solicitation No. RFSQ-022025-236
control to permit Contractor to complete the Work consistent with the Job Order.
C.
Contractor will perform ali construction activities efficiently and with the requisite
expertise, skill and competence to satisty the requirements of the Job Order.
Contractor will at all times exercise complete and exclusive control over the means,
methods, sequences and techniques of construction.
D.
Survey stakes and marks required for the completion of the construction shown on
the plans and described in the specifications will be furnished by Contractor.
E.
Contractor, its designee or Contractor’s Superintendent will be present at the Work
at ail times that construction activities are taking place.
1. Ail elements of the Work, such as concrete work, pipe work, etc., will be
under the direct supervisiori of a foreman or his/her designated
representative on the Site who will have the authority to take actions
required to properly carry out that particular element of the Work.
2. In the event of noncompliance with Article 5.1, the City may require
Contractor to stop or suspend the Work in whole or in part.
F.
Where the Job Order requires that a particular product be installed or applied by an
applicator approved by the manufacturer, it is Contractor’s responsibility to ensure
the Subcontractor employed for that portion of the Work is pre-approved by the
manufacturer.
G.
Before ordering materials for or doing the Work, Contractor and each
Subcontractor will verify measurements at the Site and will be responsible for the
correctness of these rneasurements. No extra chaise or compensation will be
allowed because of differences between actual dimensions and the dimensions
indicated on the drawings; differences, which may be found, will be submitted to
the City for resolution before proceeding with the Work.
H.
Contractor will take field measurements and verify field conditions and carefully
compare these field measurements, conditions and other information known to
Contractor with the Job Order before starting activities. Errors, inconsistencies or
omissions discovered will be Immediately reported to the City.
I.
Contractor will establish and maintain all building and construction grades, lines,
levels, and benchmarks, and will be responsible for the accuracy and protection of
these items. This portion of the Work will be performed or supervised by an Arizona
licensed civil engineer or surveyor.
J.
Any person employed by Contractor or any Subcontractor who. In the opinion of the
City, does not perform his/her portion of the Work in a proper, skillful and safe
manner or is intemperate or disorderly will, at the written request of the City, be
removed from the Work by Contractor or Subcontractor employing this person, and
will not be employed again in any portion of the Work without the written approval of
the City. Contractor or Subcontractor will hold the City harmless from damages or
claims, which may occur in the enforcement of this Article.
(Revised 07/09/25)
Page 4 of 66
Contraet No. 2026-010-COS
Solicitation No. RFSQ-022025-236
K.
L
M.
N.
Contractor assumes responsibility for the proper performance of the Work of
Subcontractors and any acts and omissions in connection with this performance.
Nothing in the Contract Documents is intended or considered to create any legal
or contractual relationship between the City and any Subcontractor or Sub-
Subcontractor, including but not limited to any third-party beneficiary rights.
Contractor will coordinate the activities of all Subcontractors, if the City performs
other work on the Project or at the Site with separate contractors under ^e City’s
control. Contractor agrees to reasonably cooperate and coordinate its activities
with those of the separate contractors so that the Project can be completed in an
orderly and coordinated manner without unreasonable disruption.
On a dally basis, Contractor will prepare a Contractor's Daily Report. The City’s
CPM Project Inspector or the Public Works Project Coordinator will provide a
sample report format to Contactor. The report will detail the activities that took
place during the course of the day. all equipment utilized and the number of hours
operated, and all personnel on the Site including Subcontractors. Unless otherwise
arranged, the Daily Reports will be submitted on a daily basis to the City’s CPM
Inspector or the Public Work’s Project Coordinator. The Daily Reports will also be
made available to the City’s Representative upon request. Failure to provide Daily
Reports as arranged Or requested above will result in the retention of monthly
progress payments until the Reports are brought up to date.
In the event of noncompliance with this Article 1.4, the City may require Contractor
to stop or suspend the construction in whole or in part. Any suspension due to
Contractor’s noncompliance will not be considered a basis for an increase in the
Job Order Price or extension of the Job Order Time.
1.5. CONTROL OF THE WORK SITE
A.
Throughout all phases of construction, including suspension of the Work,
Contractor will keep the Site reasonably free from debris, trash and construction
Wastes to permit Contractor to perform its construction services efficiently, safely
and without interfering with the use of adjacent land areas. Upon Substantial
Completion of the Work, or a portion of the Woik, Contractor will remove all debris,
trash, construction waste, materials, equipment, machinery and tools arising from
the Work or applicable portions of it to permit the City to occupy the Project or a
portion of the Project for Its Intended use.
B.
Dust Control. Contractor will take whatever steps, procedures or means required
to prevent abnormal dust conditions due to his construction operations in
connection with this Contract. The dust control measures will be maintained at all
times during construction of the Project(s) to the satisfaction of the City in
accordance with the requirements of the Maricopa County Health Department Air
Pollution Control Regulations and City of Scottsdale Supplement to M.A.G.
Standard Specifications together with applicable provisions of Federal and State
Law.
C.
Dust Control Coordinator. At any City construction site of 5 acres or more of
(Revised 07/09/25)
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D.
E.
Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
disturbed surface area, subject to a permit issued by a Control Officer requiring
control of PM-10 emissions from dust generating operations, Contractor must have
at ail times at the Site, at least one (1) Dust Control Coordinator trained in
accordance with the requiremente of A.R.S. §49:474.05 during primary dust
generating operations that is related to the purposes for which the Dqst Control
Permit was issued. The Dust Control Coordinator must have full authority to
ensure that dust control measures are implemented at the Site, including authority
to conduct inspections, deploy dust suppression resources, and modify or
shutdown activities as needed to control dust. The Dust Control Coordinator must
be responsible for managing dust prevention and dust control on the Site, including
the use of leaf blowers and street sweeping equipment. The Dust Control
Coordinator must have a valid Dust Training Certification Identification Card readily
accessible on the Site While acting as the Dust Control Coordinator.
The requirements described in the above Article do not apply if all three (3) of the
following circumstances are present:
1. The area of disturbed surface area Is less than five (5) acres.
2. The previously disturbed areas are stabilized in accordance with the
requirements of any applicable County rules.
3. Contractor with the Dust Contfp! Permit provides notice of the acreage
stabilized to the County Control Officer.
On sites with greater than one (1) acre of disturbed surface area. Contractor
holding a Dust Control permit issued by a County Control Officer, who is required
to obtain a single permit for multiple noncontiguous sites that Is required to control
PM-10 emissions from dust generating operations must have at least one (1)
individual who is designated as a Dust Control Coordinator. The Dust Control
Coordinator must have a valid Dust Training Certification Identification Card readily
accessible on the Site while acting as the Dust Control Coordinator. The Dust
Control Coordinator must be present on Site at all times during primary dust
generating activities that are related to the purposes for which the permit was
issued.
A Subcontractor who is engaged in dust generating operations at a Site that is
subject to a Dust Control Permit issued by a County Control Officer and that
requires the control of PM-10 emissions from dust generating operations must
register with the County Control Officer. The Subcontractor must have its
registration number readily accessible on the Site while conducting any dust
generating operations.
Storage on Site. Only materials and equipment, which are to be used directly in
the Work, will be brought to and stored on the Site by Contractor. When equipment
is no longer required for the Work, it will be removed promptly from the Site.
Protection of construction materials and equiprrient stored atthe Site from weather,
theft, damage and all other adversity is solely the responsibility of Contractor.
Waste Products. Contractor is responsible for the cost to dispose of all waste
products including excess earth material which will not be incorporated into the
(RevlsedW/09r25)
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Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
Work under this Contract. The waste product referred to will become the property
of Contractor. Contractor will provide for the legal disposal at an appropriate off
site location for all waste products, debris, etc., and will make necessary
arrangements for its disposal. Any disposal/dumping of waste products or unused
materials will conform to applicable Federal, State and Local Regulations.
F.
Contractor will supervise and direct the Work. Contractor will be solely responsible
for the means, methods, techniques, sequences and procedures of construction.
Contractor will employ and maintain on the Site a qualified supervisor or
superintendent who will have been designated in writing by Contractor as
Contractor’s Representative. The Contractor’s Representative will have full
authority to act on behalf of Contractor and all communications given to the
Representative will be as binding as If given to Contractor. The Representative will
be present on the Site at all times as required to perform adequate supervision and
coordination of the Work. Where appropriate all Provisions of M.A.G., Section
105.5. will be applicable.
G.
Abnormal Weather. In the event of abnormal weather conditions, such as
windstorms, rainstorms, etc., Contractor will immediately inspect the Work and Site
and take all necessary actions to insure public access and safety are maintained.
H.
Damage to Property at the Site. Contractor will be responsible for any and all
damage or loss to property at the Site, except to the extent caused by the acts or
omissions of the City or its representatives, employees or agents and not covered
by insurance. The costs and expenses incurred by Contractor under this Article
will be paid as a Cost of the Work to the extent that these costs and expenses are
in excess of or are not covered by required insurance, and to the extent of any
deductibles, but they will not Increase the Job Order Price.
I.
Damage to Property of Others. Contractor will avoid damage, as a result of
Contractor’s operations, to existing sidewalks, curbs, streets, alleys, pavements,
utilities, adjacent property, the work of separate contractors and the property of the
City. Contractor will repair any damage caused by the operations of Contractor,
and these costs will be paid as a Cost of the Work to the extent that the costs and
expenses are in excess of or are not covered by required insurance, and to the
extent of any deductible, but they will not increase the Job Order Price.
J.
Failure of Contractor to Repair Damage. Within ten (10) days written notice to
Contractor by the City, if Contractor fails to commence the repair of damage to
property as provided in Articles 1.5(H) and 1.5(1), and diligently pursue the repair,
then the City may elect to repair the damages at its own expense and to deduct
from payments due or to become due to Contractor, amounts paid or incurred by
the City in correcting the damage (provided Contractor has not commenced such
repair during the 10 day notice period).
1.6. SHOP DRAWINGS, PRODUCT DATA AND SAMPLES
A. Shop Drawings, Product Data, Samples and similar submittals are not Contract
Documents. The purpose of their submittal is to demonstrate for those portions of
the Work for which submittals are required the way Contractor proposes to
(Revised 07/09/25)
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Contract No. 2G26-010-COS
Solicitation No. RFSQ-022025-236
conform to the information given and the design concept expressed in the Contract
Documents. Contractor will review, approve and verify that all submittals meet the
intent of the Contract Documents.
B.
Three (3) copies of each Shop Drawing, Product Data. Sample, and similar
submittals required by the Contract Documents will be delivered to the City in
compliance with the approved schedule so as to cause no delay in the Woilc or in
the activities of the City or of separate contractors. Submittals made by Contractor,
which are not required by the Contract Documents, may be returned without action.
C.
Contractor Will perfonn no portion of the Work requiring submittal and review of
Shop Drawings, Product Data, Samples, or sirtiilar submittals until the respective
submittal has been approved by the City. All Work will be in compliance with
approved submittals. Contractor will not be relieved of responsibility for any errors
or omissions in Shop Drawings, Product Data, Samples, or similar submittals by
the City's approval. Delation from the original specifications will be specifically
noted on the submittal to the City and the City will be allowed seven (7) days to
approve or reject any deviations.
D.
By approving, verifying and submitting Shop Drawings, Product Data, Samples
and similar submittals. Contractor represents that Contractor has determined and
verified materials, field measurements and field construction criteria, or Will do so,
and has checked and coordinated the information contained within the submittals
with the requirements of the Work and of the Job Order.
E.
Contractor will not be relieved of responsibility for deviations from requirements of
the Job Order by the City's approval of Shop Drawings, Product Data, Samples or
similar submittals unless Contractor has specirically informed the City in vyriting of
the deviation at the time of submittal and the City has given written approval to the
specific deviation. Contractor will not be relieved of responsibility for errors or
omissions in Shop Drawings, Product Data, Samples, or similar submittals by the
City’s approval.
F.
Contractor will direct specific attention, in writing or on resubmitted Shop Drawings,
Product Data, Samples, or similar submittals, to revisions other than those
requested by the City On previous submittals.
G.
Informational submittals upon which the City is not expected to take responsive
action may be so identified in the Contract Documents.
H.
When professional certification of performance criteria of materials, systems or
equipment is required by the Job Order, the City will be entitled to rely upon the
accuracy and completeness of the calculations and certifications.
1.7. QUALITY CONTROL, TESTING AND INSPECTION
A. Inspection. The City’s Inspectors may be stationed on the Site to report to ttie
City’s Representative, or designee, as to the progress of the Work. The City’s
Representative, or designee, rnay also report as to the manner in Which the Work
(Revised 07/09/25)
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Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
is being performed and report whenever it appears that material furnished or Work
performed by Contractor fails to fulfill the requirements of the specifications, this
Contract or the Job Order. The Inspector may direct the attention of Contractor to
any failure or infringement but this inspection will not relieve Contractor from any
obligation to furnish acceptable materials or to provide completed construction that
complies with the Contract or the Job Order in every way. The Inspector is for the
purpose of assisting the City’s Representative and should not be confused with an
Inspector with a City regulatory agency or with an inspector from a laboratory under
Article 1.8.
B.
In case of any dispute arising between the Inspector and Contractor as to material
furnished or the manner of perfomning the Work, the Inspector will have the
authority to reject materials or suspend the Work until the question and issue can
be referred to and decided by the City. Inspectors are not authorized to revoke,
alter, enlarge, relax, or release any requirements of the specifications. Inspectors
will in no case act as foremen or perform other duties for Contractor or interfere
with the management of the Work by Contractor.
C.
Inspection or supervision by the City’s Representative, or designee, will not be
considered as direct control of an individual worker or the Work. The direct control
will be solely the responsibility of Contractor.
D.
The furnishing of these services for the City will not make the City responsible for
or give the City control over construction means, methods, techniques, sequenced
procedures or for safety precautions or programs or responsibility for Contractor’s
failure to perform the Work in compliance with the Contract Docuiuents.
1.8. MATERIALS TESTING
All materials used in the Work will be new and unused, unless otherwise noted, and will
meet all quality requirements of the Job Order.
A.
All construction materials to be used on the Work or incorporated into the Work,
equipment, plant, tools, appliances or methods to be used in the Work may be
subject to the inspection and approval or rejection of the City. Any materials
rejected by the City will be removed immediately and replaced in a manner
acceptable to the City without Increasing the Job Order Price.
B.
The procedures and methods used to sample and test material will be determined
by the City. Unless otherwise specified, samples and tests will be made in
compliance with the following; The City of Scottsdale Minimum Sampling
Frequency Guide, the City of Scottsdale Material Testing Manual and the standard
methods of AASHTO or ASTM^ DSPM and MAG supplements.
C.
The City will select a pre-qualilled City or Independent Testing Laboratoiy and will
pay for initial City Acceptance Testing.
1. When the first and subsequent tests indicate noncompliance with the Job
Order, the cost associated with that noncompliance will be incurred by
Contractor without increasing the Job Order Price.
(Revised 07/09/2S)
Page 9 of 66
Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
2. When the first and subsequent tests indicate noncompliance with the Job
Order, all retesting will be performed by the same testing agency. The cost
associated with the noncompliance will be incurred by Contractor without
increasing the Job Order Price.
3. Contractor will cooperate with the selected testing laboratory and all others
responsible for the testing and inspecting of the Work and will provide them
access to the Work at all times.
D.
At the option of the City, materials may be approved at the source of supply before
delivery is started.
E.
Code compliance testing and inspections required by codes or ordinances, or by
a plan approval authority, and which are made by a legally constituted authority,
will be incurred by Contractor without increasing the Job Order Price, unless
otherwise provided In the Job Order.
F.
Contractor’s convenience and quality control testing and inspections will be the
sole responsibility of Contractor and incurred by Contractor without increasing the
Job Order Price..
G.
All soils and materials testing will be performed and paid for by the City. The City
will order tests and distribute test results for all construction areas. The City will be
responsible for ordering testing and will distribute test results within 24 hours of
receipt.
1.9. PROJECT RECORD DOCUMENT/AS BUILTS
A. During the construction period. Contractor will maintain at the Site a set of Biueline
or Blackline Prints of the Construction Document drawings and Shop Drawings for
Project Record Document purposes.
1. Contractor will mark these drawings to indicate the actual installation where
the installation varies appreciably from the original Construction
Documents. Contractor will give particular attention to information on
concealed elements, which would be difficult to identify or measure and
record later. Items required to be marked include but are not limited to;
Dimensional changes to the drawings.
Revisions to details shown on drawings.
Depths of foundations below first floor.
Locations and depths of underground utilities.
Revisions to routing of piping and conduits.
Revisions to electrical circuitry.
Actual equipment locations.
Duct size and routing.
Locations of concealed internal utilities.
Changes made by Adjustment.
Details not on original Contract Drawings.
(Revised 07/09/25)
Page 10 of 66
Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
B.
2. Contractor will mark completely and accurately Project Record Documents,
prints of Construction Documents or Shop Drawings: whichever is the most
capable of indicating the actual physical condition. Where Shop Drawings
are marked, show cross-reference on the Construction Documents
location.
3. Contractor will mark sets of Project Record Drawings Prints with red
erasable colored pencil.
4. Contractor will note Request for Information (RFl) Numbers, American
Standards Institute (ASI) Numbers and Adjustnertt Numbers, etc., as
required to identity the source of the change to the Construction
Documents.
5. Contractor will at the time of Substantial Completion, submit Project Record
Drawing Prints and Shop Dravnngs to the City or its representative for
review and comment.
immediately upon receipt of the reviewed Project Record Drawings from the City,
Contractor will correct any deficiencies or omissions to the drawings and prepare
the following for submission to the City;
1. A complete set of PDF electronic files of all Project Record Drawing Print
prepared in Microstation format compatible with City of Scottsdale CADD
requirements, if a Design Professional is contracted with, the Design
Professional will provide files of the original Construction Documents to
Contractor for use in preparing these final Project Record Documents, or
Contractor may contract with the Design Professional to revise and update
the electronic drawing files. Each drawing will be clearly marked with “As-
Built Documenf and shall be certified by an Arizona Registered Land
Surveyor.
2. A complete set of As-Built reproducible mylars from the final Microstation
drawings and an electronic pdf file on CD are required.
3. the original copy of the Project Record Drawings with redline mark-ups.
1.10. PROJECT SAFETY
A. The Occupational Safety and Health Act (OSHA) and the City of Scottsdale loss
control procedures are the minimum standard for safety and environmental
protection and must be fully complied with at all times. All Work will be performed
In compliance with all applicable federal, state and local laws, ordinances, statutes,
rules and regulations including ADOSH policies and procedures. Contractor may
be required to attend a City safety briefing session at the pre-construction meeting.
The session will be attended by the Contract Administrator, the designated Risk
Management staff, and a Contractor's Representative. Contractors that violate the
aforementioned rules and regulations may be subject to job shutdown and or
removal from City facilities.
(Revised 07/09/25)
Page 1 i of 66
I
Contract No. 2026-GI0-COS
Solicitation No. RFSQ-022025-236
B.
e.
D.
E.
F.
G.
J.
The Risk Management Division makes available a packet which contains the City’s
OSHA compliance guidelines, emergency evacuation, the City’s safety and health
plan, and other safety information.
Contractor will conduct tailgate safety meetings regularly to ensure that safety on
the job is given priority.
Contractor will contact the City’s Representative and the Risk Management
Division within twenty-four (24) hours of the occurrence of an accident or injury
arising out of Contractor’s Work under this Contract.
Contractor employees are encouraged to abate or remedy any unsafe act or
condition, which may arise in the course of Contractor's Work under this Contract.
The City reserves the right to conduct safety audits at the Site and stop unsafe
acts at any time. In addition, the City will be notified within four (4) hours should
any OSHA inspection occur at a Site.
Contractor recognizes the importance of performing the Work in a safe manner so
as to prevent damage, injury or loss to:
1. All individuals at the Site, whether working or ^siting:
H.
I.
K.
2. The Work, including materials and equipment Incorporated into the Work
or stored on-Site or off-Site; and
3. All other property at the Site or adjacent to the Site.
Contractor assumes responsibility for implementing and monitoring all safety
precautions and programs related to the performance of the Work.
Contractor will, before commencing construction, designate a Safety
Representative with the necessary qualifications and experience to supervise the
implementation and monitoring of ail safety precautions and programs related to
the Work. Unless otherwise required by the Contract Documents, Contractor’s
Safety Representative will be an individual stationed at the Site who may have
responsibilities on the Project in addition to safety.
Contractor must provide OSHA 300A Summary log information including total
recordable cases, total case rates, and lost workday incident rates for the past two
(2) calendar years. The Safety Representative shall make routine daily inspections
of the Site and shall hold weekly safety meetings with Contractor’s personnel.
Subcontractors and others as applicable.
Contractorwill immediately report in writing any safety-related injury, loss, damage
or accident arising from the Work to City’s Representative and, to the extent
mandated by Legal Requirements, to all governrrient or quasi-governmental
authorities having jurisdiction over safety-related matters involving the Project or
the Work.
(Revised 07/09/25)
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Contract No. 2026-010-COS
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L.
Gontractor’s responsibility for safety uncJer this Article 1.10 is not intended in any
way to relieve Subcontractors and Sub-Subcontractors of their ovyn contractual
and legal obligations and responsibility for
1. Complying with all Legal Requirements, including those related to health
and safety matters; and
2. Taking all necessary measures to implement and monitor ail safety
precautions and programs to guard against injury, losses, damages or
accidents resulting from their performance of the Work.
M.
Contractor and Subcontractors must agree to provide Material Safety Data Sheets
for all substances that are delivered to the City of Scottsdale, that come under the
Occupational Safety and Health Administration Toxic and Hazardous Substances
- Hazard Communication Standard, 29 CFR 1910.1200 Hazard Communication
(reference Occupational Safety and Health Standards, Subpart Z Toxic and
Hazardous Substances - Hazardous Communication Standard).
All Contractors and all Subcontractors using chemicals on City of Scottsdale
property shall use only the safest chemicals, with the least harmful ingredients.
These chemicals shall be approved for use by a City of Scottsdale representative
before bringing them on the property.
Contractor and all Subcontractors shall make every attempt to apply approved
chemicals with highly volatile organic compounds, outside of working hours.
Adequate ventilation will be used at ail times during the application of these
approved chemicals.
In conjunction with the Occupational Safety and Health Standards, Subpart Z Toxic
and Hazardous Substances - Hazard Communication Standard, 29 CFR
1910.1200 Hazard Communication, Contractor and Subcontractors are informed
of the presence of (or possible presence of) chemicals In the area where the Work
requested will be performed. It Is the responsibility of Contractor or ail selected
Subcontractors to contact the City of Scottsdale for specific information relative to
the type of chemicals present and location of appropriate Material Safety Data
Sheets.
Unless included In the Work, if Contractor encounters onsite material which he
reasonably believes to contain asbestos, polychlorinated biphenyl (PCB), or other
hazardous substances or materials regulated by Public Health Laws, it will
immediately stop Work and report the condition to the City.
If ttie material is found to contain asbestos, PCB or other hazardous substances
or materials regulated by Public Health Laws, Contractor will not resume Work in
the affected area until the material has been abated or rendered harmless.
Contractor and the City may agree, in writing, to continue Work In non-affected
areas onsite. An extension of the Contract Time may be granted as provided in
Article 5.
(Revised 07/09/25)
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Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
1.11. WARRANTY
The provisions of M.A.G.. Section 108.8 will apply with the following additional
requirements:
1. Should Contractor fail to begin repairs or corrective work within fourteen
(14) calendar days after receipt of written notice from the City, the City may
perform the necessary work and Contractor agrees to reimburse the City
for the actual cost.
2. The warranty period on any part of the Work repaired or replaced will be
extended for a period of one (1) year from the date of the repair or
replacement
3. This warranty will not apply to damage caused by normal wear and tear or
by acts beyond Contractor’s control.
A.
Contractor’s warranty obligation excludes defects caused by abuse, alterations, or
failure to maintain the Work by persons other than Contractor or anyone for whose
acts Contractor may be liable.
6. Contractor's warranty obligation will be for one (1) year.
C. Nothing in this warranty is intended to limit any manufacturer’s warranty which
provides toe City with greater warranty rights than those found in this Article 1.11
or the Contract Documents. Contractor will provide the City with all manufacturers’
warranties upon Substantial Completion of each Job Order.
1.12. CORRECTION OF DEFECTIVE WORK
A. Contractor agrees to correct any Work that is found to not be in conformance with
the Contract Documents, including that part of the Work subject to Artide 1.11
above, within a period of one (1) year from toe date of Substantial Completion of
toe Work or any portion of the Work, or within any longer period to the extent
required by the Contract Documents. All rernoval/replacement woik, as directed
by toe City to Contractor, in compliance with this Contract, MAG standards and
City codes will have cost determinations by the City and be issued as a Job Order
Adjustment to the Project. A Progress Payment, or partial or entire use or
occupancy of toe Project by toe City will not constitute acceptance of Work not in
accordance with the Contract Documents.
During the Work. Contractor shall take meaningful steps to begin correction of any
nonconforming Work as notified by the Cjty. This includes the corredtion, removal
Or replacement of toe nonconforming Work and any damage caused to other parts
of the Work affected by the nonconforming Work. If Contractor fails to begin the
necessary steps during the Work, the City, in addition to any other remedies
provided under toe Contract Documents, may provide Contractor with written
notice that toe City will commence correction of any nonconforming Work, at its
discretion, through Its employees, agents or other third parties.
i
(Revised 07/09/25)
Page 14 of 66
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Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
Contractor shall take meaningful steps to begin correction of nonconforming Work
subject to Article 1.11 above: These measures include but are not limited to timely
correction of the Work. If Contractor fails to initiate necessary measures for this
Work within seven (7) days of receipt of written notice from the City, the City, in
addition to any other remedies provided under the Contract Documents, may
provide Contractor with written notice that the City will begin correction of the
nonconforming Work, at its discretion, through its employees, agents or other third
parties.
B.
If the City does perform this corrective Wor1<, Contractor will be responsible for all
reasonable costs incurred by the City in performing the correction without
increasing the Job Order Price.
C.
Contractor shall immediately respond to any nonconforming Work that creates an
emergency.
D.
The one (1) year period referenced in Article 1.11 above applies only to
Contractor’s obligation to correct nonconforrning Work and is not intended to
constitute a period of limitations for any other rights or remedies the City may have
regarding Contractor’s other obligations under the Contract Documents.
1.13. SUBCONTRACTOR AND MAJOR SUPPLIER SELECTIONS
A. Contractor shall select major Subcontractors and major Suppliers, subject to first
obtaining the City’s approval. 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 Contractor, but the City rnust
approve in writing the selection of all Subcontractors. In any case. Contractor is
solely responsible for the performance of the selected Subcpntractors/Suppliers.
Contractor shall prepare a Subcontractbr/Supplier selection plan and submit the
plan to the City for approval or Contractor rnay use the City’s plan as described in
Article 1.13(B). This Subcontractor selection plan will identify those Subcontractor
trades anticipated to be selected by qualifications only as provided in Article
1.13(B) and those Subcontractor trades anticipated to be selected by qualifications
and competitive bid as provided in Article 1.13(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.
B^ Selection by qualifications only - The City may approve the selection of a
Subcontractor(s) or Supplier(s) based only on their qualifications when Contractor
can demonstrate it is in the best interest of the Project.
1. Contractor will apply the 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 recomrnendation. The selection
plan will be Contractor’s own selection plan approved by the City or the
City’s selection plan as provided in this Article 1.13(B).
(Revised 07/09/25)
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Contract No. 2026-OlG-COS
Solicitation No. RFSQ-022025-236
2. Contractor will negotiate costs for services/supplies from the
Subcontractor(s)/Supplier(s) under the approved qualifications only
method.
City Selection Plan:
3. Contractor may elect to comply with the following City procedures in its
selection of Subcontractor(s) or Suppl|ers(s) based on qualifications only:
a. The Request for Qualifications (RFQ) will contain the best
description of the services or material desired; and
b. A statement that only unpriced statements of qualifications will be
considered; and
(Revised 07/09/25)
c. State the requirements for the project, such as drawings and
descriptive literature; and
d. State the critena 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 staternents of qualifications determined to be
acceptable will be considered for award.
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 Contractor. 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 vyill be determined to be either acceptable for
further consideration or unacceptable. A determination that the staterrient
is unacceptable shall be in writing, state the basis of the determination and
be retained by Contractor. Contractor Will notify the bidder of the
determination and the bidder will not be given an opportunity to amend its
statement of qualifications further.
7. Contractor may conduct discussions with any bidder who submits an
acceptable or potentially acceptable statement of qualifications. During
Page 16 of 66
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Solicitation No. RFSQ-022025-236
discussions, Contractor will not disclose any information derived from any
other bidder’s statement of qualifications.
8. Contractor will negotiate costs for services/supplies from the
Subcontractor(s)/Supplier(s) selected under this method.
C.
Selection by qualifications and competitive bid - Contractor will apply the City’s
Subcontractor selection plan stated above or Contractor’s selection plan, if
previously approved by the City, in Contractor’s evaluation of the qualifications of
Subcontractor(s)/Supplier(s) and will provide the City with the selected process to
prequalify prospective Subcontractors/Suppliers. Selection may not be based on
price alone. All Work by 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 1.13(B) above. Contractor may
elect to comply with the following procedures in step 2 of its competitive bid
process.
1. Contractor will develop Subcontractor and Supplier interest submit the
names of a minimum of ttiree (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/Suppiiers available for a
specific trade or there are extenuating circumstances, Confractor 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. Contractor will nominate a substitute
Subcontractor/Supplier that is acceptable to the City.
3. Contractor will distribute Drawings and Specifications, and when
appropriate, conduct a pre-bid conference with prospective Subcontractors
and Suppliers. Contractor 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 Contractpr desires to self-perform certain portions of the Work, it must
request to be one of the approved Subcontractor bidders for those specific
bid packages. Contractor’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 compliance with the Project Schedule or
cost. Contractor may self-perform Work without bidding or re-bidding the
Work. (For horizontal construction, as defined in A.R.S. § 34-101(16),
Contractor must self-perform not less than 45% of the Work as required by
A.R.S. § 34-603(0(3).)
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 Wprk for
good reason. Contractor will nominate a substitute Subcontractor or Supplier,
preferably if this option is still available, from those who submitted Subcontractor
bids for the Work affected. Once the substitute Subcontractors and Suppliers are
(Revised 07/09/25)
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Contract No. 2026-010-COS
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consented to by the City, Contractor's proposed price for the Work or portion of the
Work will be correspondingly adjusted to reflect any higher or lower costs from any
substitution. Under ho circumstances will the City’s objection or comment on any
Subcontractor or Supplier relieve Contractor of its sole responsibility for control
over the methods, means and processes by which the Work is accomplished. The
City must approve in writing the selected Subcontractor Selection Plan before work
commences on any Job Order.
ARTICLE 2 - CITY’S SERVICES AND RESPONSIBILITIES
2.1
INFORMATION AND SERVICES
A. The City will frimish Contractor, at no cost to Contractor, the following information
or services for this Project:
1. One copy of data pertinent to the Work. However, Contractor will be
responsible for searching the records and requesting information required
for the Project.
2. All available data and information relative to policies, standards, criteria,
studies, etc.
3. Project funding and budget allocations and any changes affecting the
funding or budget allocations.
4. For purpose of determining the Job Order Price, any Plans and
Specifications.
5. For purpose of Project Record Drawing Prints, a CADD file of the
Construction Documents in Microstation format compatible with City of
Scottsdale CADD requirements.
2.2
CITY’S REPRESENTATIVE
A. The City’s Representative will be responsible for providing City-supplied
information and approvals in a timely manner to permit Contractor to fulfill its
obligations under the Contract Documents.
2.3
DESIGN PROFESSIONAL SERVICES
A.
B.
The City may contract separately with one or more Design Professionals to provide
architectural or engineering design of the Project in accordance with the provisions
of A.R.S. §34-603.
The City may contract with the Design Professional to provide some or ail of the
following services during the performance of the Work:
1. The Design Professional may provide administration of the Work. The City
and Contractor will endeavor to communicate through the Design
Professional. Communications by and with the Design Professional’s
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Contract No. 2026-010-COS
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consultants will be through the Design Professional.
2. The Design Professional may visit the Site at intervals appropriate to the
stage of construction to become generally familiar with the progress and
quality of the completed Work and to determine in general if the Work is
being performed in accordance with the Contract Documents. The Design
Professional will keep the City infomned of progress of the Work and will
endeavor to guard the City against defects and deficiencies in the Work.
3. Upon Contractor’s submittals, the Design Professional may review and
approve or take other appropriate action on submittals as Shop Drawings,
Product Data and Samples in accordance with Article 1.6.
4. All drawings produced for projects considered to be performed under
Contractor are the property of the City and are owned in whole by the City
for any and all future use and considerations.
2.4
CITY’S SEPARATE CONTRACTORS
The City is responsible for all Work performed on the Project or at the Site by separate
contractors under the City’s control. The City will contractually require its separate
contractors to cooperate with and coordinate their activities so as not to interfere with
Contractor in order to enable Contractor to timely complete the Work consistent with the
Contract Documents. Contractor agrees to reasonably cooperate and coordinate its
activities with those of the separate contractors so that the Project can be completed in
an orderly and coordinated manner without unreasonable disruption.
2.5
FURNISHING OF SERVICES AND INFORMATION
A.
The City will be responsible for the payment or waiver of the following:
1. City review and permit(s) fees for building, encroachment, and demolition
permits including City, State and County.
2. City review fees for grading and drainage, water, sewer and landscaping.
3. Utility design fees or permanent services fees are paid by the City, but all
submittals are the responsibility of Contractor.
4. Obtaining Nationwide 404 Permits.
5. City Development Fees.
B.
Unless expressly stated to the contrary in the Contract Documents, the City will
provide, at Its own cost and expense, for Contractor’s information the following:
1. To the extent available, surveys describing the property, boundaries,
topography and reference points for use during construction, including
existing service and utility lines;
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2. Temporary and permanent easements, zoning and other requirements and
encumbranees affecting land use, necessary to permit the proper design
and construction of the Project and enable Contractor to perform the Work;
3. A legal description and street or physical address of Bie Site;
4. To the extent available, as-built record or historical drawings of any existing
structures at the Site;
5. To the extent available, environmental studies, reports and impact
statements describing the environmental conditions, including hazardous
materials, in existence at the Site; and
6. to the extent available. Geotechnical studies describing subsurface
conditions and other surveys describing other latent or concealed physical
conditions at the Site.
The City will provide all City standards and guidelines, supplementary
conditions and special provisions that will be included in the plans and
specifications for the Project. These may include but are not limited to; disposal
of surplus material, special security provisions, investigation of underground
facilities, traffic controls and regulations, special quality control testing and
termite treatment requirements.
2.6 PROJECT MANAGEMENT SERVICES
A.
The City may contract separately with one or more Technical Consultants to
provide project management assistonce for the Project. The Technical
Consultant’s contract as well as contracts with other fimis hired by the City will be
furnished to Contractor. Contractor will not have any right, however, to limit or
restrict any Project modifications that are mutually acceptable to the Cjty and
Technical Consultant.
B.
The Technical Consultant services will augment the City staffing resources to
effectively manage the objectives of the City and the Project with the goal of
managing the key Project communication, cost and time parameters.
C.
The Technical Consultant may provide pre-programming and design standards.
D.
The City may contract with the Technical Consultant to provide any or a|l of the
services or functions of the City’s project rtianager during the performance of the
constmctlon.
2.7 PERMIT REVIEW AND INSPECTIONS
For clarification, permitting activities are handled by the City of Scottsdale
Developmental Services, Fire and Planning Departments. Obtaining any permits and
submittals are the responsibility of the City.
(Revised 07/09/25)
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Contract No. 2026-010-COS
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2.8 UTILITY COMPANY COORDINATION
Contractor will be responsible for coordinating utility design work for permanent service
to the Project and will ensure that the work takes place in a timely manner and does not
impact the Project schedule. Ariy utility design fees for permanent services to a Job
Order will be paid by the City in accordance with Article 2.6.
ARTICLE 3 - CONTRACT TIME AND JOB ORDER TIME
3.1
CONTRACT TIME
A The initial term of this Contract will be for two (2) years and will commence on the
Effective Date, with the option to extend for three (3) additional years in one (1)
year increments.
1. The option to extend may be exercised based on Contractor’s successful
performance and the needs of the City.
2. A Contract Modification will be processed for each extension and will
commence on or about the anniversary date of the Contract. Each extension
must be authorized by the Contract Administrator and Purchasing Director and
need not return to the City’s Council for approval.
B; The Contract will remain in full force and effect during the performance of any Job
Order.
3.2
JOB ORDER TIME
A.
Job Orders may be issued at any time during the term of this Contract.
B.
Each individual Job Order will include a Job Order Notice-to-Proceed date.
Duration of the Work as determined in accordance with this Article 3.2 and a
calculated Substantial Completion date.
C.
Contractor agrees that it will commence performance of the Work and achieve the
approved Job Order Time.
D.
Job Order Time may be subject to adjustment in accordance with Article 5.
3.3
SUBSTANTIAL COMPLETION
A.
Substantial Completion of each Job Order is when all construction has been
completed with the exception of final inspection punch list work and further defined
in Article 12. The purpose of granting or acknowledging Substantial Completion is
to stop Job Order Time.
B.
Before notifying the City in accordance with Article 3.3(C), Contractor will inspect
the Work and prepare and submit to the City a comprehensive list of items to be
completed or corrected. Contractor will proceed promptly to complete and correct
items on the list. Failure to include an item on the list does not alter the
(Revised 07/09/25)
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c.
D.
E.
Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
responsibility of Contractor to complete ail Work in accordance with the Contract
Documents.
Contractor will notify the City when it believes a Job Order, or to the extent
permitted in the Contract Documents, a portion of the Job Order, is substantially
complete.
Within five (5) days of the City’s receipt of Contractor’s notice in accordance with
Article 3.3(C), the City and Contractor will jointly inspect the Work to confirm
Substantial Completion.
Once Substantial Completion of the Work is confirmed in accordance with Article
3.3(D), the City will prepare and issue a Certificate of Substantial Completion that
will state:
1. The date of Substantial Completion of the Work or portion of the Work;
2. The remaining Items of Work that have to be completed within thirty (30)
calendar days before Final Acceptance;
3. Provisions (to the extent not already provided in the Contract Documents)
establishing the City’s and Contractor’s fesponsibillty for the Project’s
security, maintenance, utilities and insurance pending Final Acceptance.
F. The City, at its option, may use a portion of the Work which has been determined
to be substantially complete provided, however, that:
1. Certificate of Substantial Completion has been issued for the portibh of
Work addressing the items in Article 3-3(E)(2).
2. Contractor and the City have obtained the consent of their sureties and
insurers, and to the extent applicable, the appropriate government
authorities having jurisdiction over the Project, and
3. The City and Contractor agree that the City’s use or occupancy will not
interfere with Contractor’s completion of the remaining Work required under
Article 3.3(E).
3.4 PUNCH LIST PREPARATION
A minimum of seven (7) days before Substantial Corripletibri, Contractor, in conjunctibn
with the City, will prepare a comprehensive list of Punch List items, which the City may
edit and supplerrient. Contractor will proceed promptly to complete and correct the
Punch List items. Failure to include an item on the Punch List does not alter the
responsibility of Contractor to complete all Work in accordance with the Contract
Documents. Warranties required by the Contract Documents will not commence until ttie
date of Final Acceptance, unless otherwise provided in the Contract Documerits. Seven
(7) days before the City issues its Final Acceptance Letter, Contractor will deliver to the
City all Operation and Maintenance Manuals necessary for the City to assume
responsibility for the operation and maintenance of that portion of the Work.
(Revised 07/09/25)
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3.5
FINAL ACCEPTANCE
Upon receipt of written notice that the Work or identified portions of the Work is ready for
final inspection and acceptance, the City and Contractor will jointly inspect to verify that
the remaining items of Work have been completed as required under Article 3.3(E). The
City will issue a Final Acceptance Letter.
3.6
LIQUIDATED DAMAGES
A.
Contractor understands that if Substantial Completion is not attained within the Job
Order Time, as may be adjusted for each Job Order, the City will suffer damages,
based on the anticipated loss caused by the breach and the difficulty in determining
and accurately specifying the damages. Contractor agrees that if Substantial
Completion is not attained within the Job Order Time as adjusted. Contractor will
pay the City the amount prescribed in Article 3.6(B) below as liquidated damages
for each Day that Substantial Completion extends beyond the date determined by
the Job Order Time as adjusted.
B.
The following will be the liquidated damages for each Job Order unless a specific
amount has been determined for each individual Job Order.
LIQUIDATED DAMAGES
Original Job Order Amount
From more than
Daily Charges"
$00
To and including Calendar Day or Fixed Date
Dj
25,001
$25,000
50,000
$200
250
50,001
100,000
280
100,001
500,000
500,001
750,000
430
500
750,001
1,000,001
1,000,000
1,250,001
1,250,000
570
610
1,500,000
650
ARTICLE 4. CONTRACT PRICE AND JOB ORDER PRICE
4.1 CONTRACT PRICE
The fee for individual projects performed under this contract will be negotiated on a
project-by-project basis as Job Orders. The amount paid to the Contractor under this
contract for all Job Orders shall not exceed $4,000,000 for the initial two (2) year term
and $2,000,000 for any successive one (1) year contract extension.. The Contractor
agrees at its own cost and expense, to do all the Work as specified in the Contract
Documents and any Work contingent to the Contract and necessary for the construction
of the improvements. The Contractor will completely construct the Work and install the
materials, free and clear of all claims, liens, and charges of any kind, in the manner and
under the conditions specified within the time or times stated In each Job Order.
A. In no event will any individual Job Order Price exceed $1,000,000. if the City opts
to extend this Cpntract in accordance with Article 3.1(A), the Contract Modification
may increase the maximum amount, if necessary, at that time.
(Revised 07/09/25)
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Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
B.
The Job Order Price is subject to Adjustn^ients made in accordance with Article 5.
C.
Unless otheh/vjse provided in the Contract Documents, the Job Order Price is
considered to include all sales, use, consumer and other taxes throughout the temn
of this Contract, whether or not yet effective or merely scheduled to go Into effect.
D.
Contractor must secure and maintain, during the life of the Contract, State of
Arizona and City of Scottsdale Transaction Privilege (sales) Tax Licenses.
To obtain a State of Arizona Privilege (Sales) Tax License Application, please go
to the following website:
httDs://azdor.aov/transaction-privileqe-tax/tDt-license/applvind-tpt-license
To obtain a City of Scottsdale Transaction (Sales) Tax License Application, please
go to the following website:
https ://www.scottsdaleaz. gov/taxes/resources
Contractor must dempnstrate comjaliance with the E-Verify Program as provided
in Article 11.33 and as required byA.R.S. §41-1080, as amended, before issuance
of any License by the City.
4.2 RESPONSIBILITY FOR PRIVILEGE (SALES) TAXES
A.
Contractor is responsible for payment of all applicable State of Arizona and City of
Scottsdale transaction privilege (sales) taxes due on construction income whether
or not these taxes are specifically separated In the bid amount. The taxes, are to
be reported bn either a progressive billing (accrual) basis or cash receipts basis,
depending on the method chosen atthe time application was made for the Privilege
(sales) Tax License.
City Privilege (sales) tax exemptions/deductions may be applicable to certain
projects. Contractor is advised to consider this as it prepares its bid. Please
review, in detail. Sections 415,465, and 110 of the Scottsdale Revised City Code,
Appendix C to determine if exemptions/ deductions are applicable. For tax
guidance, please reference the City Code and other tax resources at the following
website:
http://www.scottsdaleaz.qov/taxes/
The State of Arizona has similar exemptions; please reference A.R.S. Title 42 at
the following website:
http://www.azleq.state.az.us/ArizonaRevisedStatutes.asp?Title=42
For further questions regarding tax treatment, please contact the Arizona
Department of Revenue at 602-255-2060 and the City of Scottsdale Tax & Audit
Section at 480-312-2768.
(Revised 07/09/25)
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Contract No. 2026-010-COS
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ARTICLE 5 - CHANGES TO THE CONTRACT PRICE AND TIME
5.1 DELAYS TO THE WORK
A. Delays may be compensable, concurrent, excusable or non-excusable as defined
in Article 12.
B.
C.
D.
If Contractor is delayed in the performance of the Work due to acts, omissioris,
conditions, events, or circumstances beyond its control and due to no fault of its
own or those for whom Contractor is responsible, the Job Order Time for
performance may be reasonably extended by Job Order Adjustment.
Contractor must request a Job Order Adjustment by written notice, including an
estimate of the probable effect of delay on progress of the Work. In the case of a
continuing delay, only one request is necessary.
Written notice will be received within five (5) days of the commencement of the
cause of the delay. If written notice is received more than five (5) days after
commencement of the cause of the delay, the period of delay will be considered to
commence fourteen (14) days before the giving of any notice.
E.
If adverse weather conditions are the basis for a Job Order Adjustment request,
the requests shall be documented by data substantiating that weather conditions
were abnormal for the period of time and could not have been reasonably
anticipated, and that weather conditions had an adverse effect on the scheduled
construction.
F.
Permitting Contractor to proceed to complete any Work, or any part of the VVork,
after the date to which the time of completion may have beeri extended, will in no
way act as a waiver on the part of the City of any of its legal rights.
G.
In the event Contractor incurs expenses related to a delay for which the City is
responsible. Contractor and the City will negotiate to determine the amount of any
damages. This provision is made in accordance with A.R.S. §34-609(E), as
amended, and is effective only if the delay caused by the City is unreasonable
under the circumstances and was not within the contemplation of the parties. 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.
H.
In addition to Contractor’s right to request a time extension for those events stated
in this Article 5.1, Contractor may also be entitled to an appropriate adjustment of
the Job Order Price provided, however, that the Job Order Price will not be
adjusted for those events stated in this Article that are beyond the control of both
Contractor and the City, including the events of war, acts of terrorism, floods, labor
disputes (but not including Contractor’s own work force and those of its
subcontractors), earthquakes, epidemics, excessive inclement weather conditions
not reasonably anticipated.
(Revised 07/09/25)
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Contract No. 2026-010-COS
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5.2 DIFFERING SITE CONDITIONS
5.2.1. If Contractor encounters a Differing Site Condition(s), Contractor may be entitled
to an adjustment in the Job Order Price or Job Order Time(s) to the extent
Contractor’s cost or time of performance are the direct result of a Differing Site
Condition(s).
5:2.2. Upon encountering a Differing Site Condition, Contractor shall provide prompt
written notice to the City of the condition, which notice will not be later than seven
(7) days after the condition has been encountered. Final costs must be submitted
within thirty (30) days after notice is received by the City, unless extended by
written agreement of the parties. Contractor must give the City’s Contract
Administrator written notice of and an opportunity to observe such condition
before disturbing or altering the Differing Site conditions. The failure of
Contractor to give written notice and make the Claim as required by this Article and
Article 7.1.5 shall constitute a waiver by Contractor of any rights arising out of or
relating to such Differing Site Conditions.
5.2.3. In order for Contractor to obtain any additional compensation or time extensions
for Differing Site Conditions, Contractor must demonstrate that it encountered a
material difference at the Site, as defined in Article 12, that required it to expend
additional cost or tirne. Contractor will also establish that it actually and
reasonably relied upon the representations found in the Contract Documents
concerning the Site conditions.
5.3 APPLICATION FOR EXTENSION QF TIME
5.3.1
If performance by Contractor is delayed for a reason set forth in Article 5,
Contractor may be allowed a reasonable extension of time in conformance with
this Article. Before Contractor’s time extension request may be considered.
Contractor shall notify the City of the condition which aiiegediy has caused or is
causing the delay, and shall submit a written application to the City identifying:
1.
Liquidated damage assessment rate, as specified in the Contract;
2.
Original Job Order Price;
3.
Original Job Order Time;
4.
Any previous Job Order Adjustments granted (number and duration); and
5.
The extension of time requested.
5.3.2
In addition, the application for extension of time shall set forth in detail:
1. The nature of each alleged cause of delay In completing the Work;
2. The date upon which each such cause of delay began and ended and the number
of dates attributable to each such cause;
3. A statement that Contractor waives all claims except for those delineated in the
application, and the particulars of any claims which Contractor does not agree to
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waive. For time extensions for Substantial Completion and finai completion
payments, the application shall include a detailed statement of the dollar amounts
of each claim item reserved; and
4. A statement indicating Contractor’s understanding that the time extension is
granted only for purposes of permitting continuation of Contract performance and
payment for Work performed and that the City retains its right to conduct an
investigation and assess liquidated damages as appropriate in the future
5.4
ERRORS, DISCREPANCIES AND OMISSIONS
A.
If Contractor obsen/es errors, discrepancies or omissions in the Contract
Documents, it will promptly notify the City and request clarification. Contractor will
provide a copy of this notice to the City’s Representative.
B.
If Contractor proceeds with the Work affected by the errors, discrepancies or
omissions, without receiving any clarifications, it does so at its own risk. Adjustments
involving these circumstances made by Contractor before clarification by the Design
Professional will be at Contractor’s risk.
5.5
CITY REQUESTED CHANGE IN WORK
A.
The City reserves the right to make, at any time during the progress of the Work,
any alterations as may be found necessary or desirable.
B.
These alterations and changes will not invalidate this Contract nor release the
surety and Contractor agrees to perform the Work as altered, the same as if it had
been a part of the original Job Order. Contractor will notify the surety of the
changes and will assure that the alterations and changes are adequately covered
by the surety bond.
C.
The City will request a proposal for a change in Work from Contractor, and an
Adjustment to the Job Order Price or Job Order Time will be made based on a
mutual agreed upon cost and time.
5.6
LEGAL REQUIREMENTS
The Job Order Price or Job Order Time will be adjusted to compensate Contractor for
the effects of any changes in the Legal Requirements enacted after the date of the
Contract affecting the performance of the Work.
5.7
JOB ORDER ADJUSTMENTS
A. In accordance with the City of Scottsdale Procurement Code, and related Rules
and Procedures, the City and Contractor will negotiate in good faith and as
expeditiously as possible the appropriate Job Order Adjustment(s). Upon reaching
an agreement, the parties will prepare and execute an appropriate Adjustment
(Revised 07/09/25)
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reflecting the terms of their agreement. The change in Work may or may not
include an Adjustment in the Job Order Price or Job Order Time.
B.
Ail changes in Work authorized by Job Order Adjustments will be performed under
the conditions of the Contract Documents. The decision to make an Adjustment to
the Job Order rests solely with the City and any decision to make a Job Order
Adjustment must be promptly complied with by Contractor, subject to the
provisions of Article 5.8.
C.
The execution of a Job Order Adjustment by Contractor shall constitute conclusive
evidence of Contractor’s agreement to the ordered changes in the Work, the Job
Order Price, and the Job Order Time by Contractor; Contractor, by executing the
Job Order Adjustment, waives and forever releases any claim against the City for
any additional time or compensation for matters relating to, arising out of, or
resulting from the Work included within or affected by the executed Job Order
Adjustment of which Contractor knew or should have known.
5.8
UNILATERAL DETERMINATION OF JOB ORDER VALUE
If no mutual agreerhent occurs between the City and Contractor, the change in Job Order
Price, if any, shall be derived by determining the reasonable actual costs incurred or
savings achieved, resulting from revisions to the Work. Such reasonable actual costs or
savings shall include a component for direct job site overhead and profit but shall not
include home-office overhead or other indirect costs and cxjmponents. The calculation
of actual costs shall conform to the markup schedule in Article 5.12 below. Any such
costs or savings shall be documented in the format and with such content and detail as
the City requires. Contractor shall promptly submit such documentation and other
backup as the City may require in evaluating the actual costs incurred.
5.9 ADDITIONAL JOB ORDER COST REQUIREMENTS
Contractor’s or Subcontractor’s submittals shall include the cost of materials, sales tax,
and the cost of all transport. The cost of Items listed shall be directly related to the Job
Order Adjustment. Indirect costs not specifically related to the Job Order Adjustment
shall not be considered. Contractor’s or Subcontractor’s Direct Labor Costs shall be
limited to the hourly rate of directly involved workmen, employer contributions toward
Contractor standard benefits, pensions, unemployment or social security (if any), and
employer costs for paid sick and annual leave. Contractor’s or Subcontractor's Overhead
shall include license fees, bond premiums, supervision, wages of timekeepers and clerks,
incidentals, home and field office expense, and vehicle expense directly related to the
Project, and all other direct Project expenses not included in Contractor’s material, direct
labor, and equipment costs.
5.9.1 The allowance for overhead and profit shall be limited to the following schedule:
1.
For Contractor, for any work performed by Contractor’s own forces, fifteen
(15%) percent of the Subtotal of Costs to Contractor.
2.
For Contractor, for any work performed by Its Subcontractor, the
allowance for overhead and profit shall be tiered as follows:
a. For Job Order Price up to $250,000. ten (10%) percent of the
Page 28 of 66
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Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
arnount due to the Subcontractor-
b. For Job Order Price over $250,000 but less than $500,000. eight
(8%) percent of the amount due to the Subcontractor; and
c. For Job Order Price over $500,000, six (6%) percent of the amount
due to the Subcontractor.
3.
For each Subcontractor or Sub-subcontractor involved, for any work
performed by their own forces, fifteen (15%) of their materials and direct
labor costs.
4.
For each Subcontractor, for work performed by Its Sub-Subcontractor(s),
six (6%) percent of the amount due to the Sub-subcontractor.
5.10 LIMITATION OF COMPENSABLE ITEMS
5.10.1 For Job Order Adjustrhent, the total cost or credit to the City shall be based on
the following schedule:
1. Contractor’s Materials Costs.
2. Contractor's Direct Labor Costs.
3. Contractor’s Equipment Costs (includes owned/rented equipnrient).
4. Applicable Subcontractor Costs.
5. Subtotal of Costs to Contractor.
6. Contractor's Overhead and Profit.
7. Total Cost or Credit to the City.
5.11 FIELD ORDERS
A The City has authority to initiate Field Orders that do not materially and adversely
affect the Work, including the design, quality, performance and workmanship
required by the Contract Documents. Field Orders will be made by written order
and will be binding on the City and Contractor. Coritractor will catty out any written
Field Orders promptly.
B.
Field Orders will not involve an adjustment in the Job Order Price or Job Order
Times unless or until it becomes a Job Order Adjustment.
C.
Contractor may make minor changes in the Work, provided, however that
Contractor will promptly inform the City, in writing, of any changes and record the
changes, if appropriate, on the Project Record Documents maintained by
Contractor.
5.12 JOB ORDER PRICE ADJUSTMENTS
A. The increase or decrease in Job Order Price resulting from a change in the Work
(Revised 07/09/25)
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Contract No. 2026-010-COS
Solicitation No. RFSQ-G22025-236
will be determined by one or more of the following methods;
1. Unit prices stated in the Contract or as subsequently agreed to between
the parties;
2. A mutually agreed upon accepted, lump sum, properly itemized and
supported by sufficient substantiating data to permit evaluation by the City;
and
3. Costs, fees and any other markups.
B.
If an increase or decrease canriot be agreed to as stated in Article 5.7(A), the cost
of the change of the Work will be deteimihed by the reasonable expense and
savings in the performance of the Work resulting frorn the change, including a
reasonable overhead and profit^ as may be stated in the Contract Documents.
Contractor will maintain a documented, itemized accounting evidencing the
expenses and savings associated with these changes.
C.
If unit prices are stated iri the Contract Documents, or are later agreed to by the
parties, but application of the unit prices will cause substantial inequity to the City ,
or Contractor because of differences in the character or quantity of the unit items
as originally contemplated, the unit prices will be equitably adjusted.
D.
If the City and Contractor disagree upon whether Contractor is entitled to be paid
for any services required by the City, the amount to be paid, other disagreements
over the Scope of Work, proposed changes to the Work, or the time required to
complete the Work, the City and Contractor will resolve the disagreements in
accordance with Article 7.
1. As part of the negotiation process, Contractor will furnish the City with a
good faith estimate of the costs to perform the disputed services, or the
additional time required in accordance with the City’s interpretations.
2. If the parties are unable to agree and the City expects Contractor to perform
the services in accordance with the City’s interpretations. Contractor will
proceed to perform the disputed services, conditioned upon the City Issuing
a written order to Contractor:
(a) directing Contractor to proceed; and
(b) specifying the City’s interpretation of the services that are to be
performed.
E.
Emergencies. In any emergency affecting the safety of persons or property,
Contractor will act, at its discretion, to prevent threatened damage, injury or loss.
Any change in the Job Order Price or Job Order Time(s) resulting from emergency
work under this Article 5.8(E) will be determined as provided in this Article 5.
(Revised 07/09/25)
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Contract No. 2026-010-COS
Solicitation No. RFSQ-022025^236
ARTICLE 6-PROCEDURE FOR PAYMENT
6.1
JOB ORDER PAYMENT REQUEST
A.
At the pre-construction conference prescribed in Article 1.3, Contractor will submit
for the City’s review and approval a Schedule of Values. The Schedule of Values
will include values for all items comprising the Job Order Price and will serve as
the basis for monthly progress payments made to Contractor throughout the Work.
B.
At least five (5) working days before the date established for a progress payment,
Contractor will meet with the City’s Representative to review the progress of the
Work, as it will be reflected on the Contractor Payment Request.
C.
The Contractor Payment Request will constitute Contractor’s representation that
the Work has been performed consistent with the Job Order including any
Adjustment(s), has progressed to the point indicated in the Contractor Payment
Request, and that title to all Work will pass to City free and clear of all claims, liens,
encumbrances, and security interests upon the incorporation of the Work into the
Project.
6.2
PARTIAL PAYMENTS
A.
Partial progress payment will be made for Job Orders with Job Order Time greater
than 30 Days and may be made if the Job Order Time is less than 30 Days.
B.
The Contractor Payment Request may request payment for equipment and
materials not yet incorporated into the Project if construction progress is in
reasonable conformance with the approved schedule.
C.
For equipment and materials suitably stored at the Site, the equipment and
materials will be protected by suitable insurance and the City will receive the
equipment and materials free and clear of ail liens and encumbrances.
1. For materials and equipment stored off the Site, the City must approve the
storage. The material and equipment must be stored within Maricopa
County and be accessible for the City’s inspection. Title to the materials
and equipment will include applicable insurance, bonding, storage and
transportation to the Site.
2. All bonds and insurance required for stored materials will be in the City’s
name.
6.3
PAYMENT OF JOB ORDER PRICE
Payments should be provided on the City format for a Pay Application which is based
on the agreed upon Schedule of Values. Payment will be made no later than fourteen
(14) days after the Contractor Payment Request is certified and approved, but in each
case less the total of payments previously made.
The Contractor Payment Request shall be deemed approved and certified for
payment seven (7) days after the date of submission to the City by Contractor
unless before that time the City prepares and issues a specific written finding
setting forth those items in detail in the Contractor Payment Request that are not
Page 31 of 66
A.
B.
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Contract No. 2026-010-eOS
Solicitation No. RFSQ-022025-236
approved for payment under the Contract. The finding will indicate the specific
amounts the City intends to withhold, the reasons and contractual basis for the
withholding, and the specific measures Contractor must take to rectify the City’s
concerns. The City may withhold an amount from the progress payment sufficient
to pay the expenses the City reasonably expects to incur in correcting the
deficiency set forth in the written finding. Contractor and the City will attempt to
resolve the City’s concerns. If the parties cannot resolve the concerns. Contractor
may pursue Its rights under the Contract Documents, including those under Article
7.
6.4
RETENTION ON JOB ORDER PAYMENTS
in compliance with A.R.S. §34-609, as amended, there is no retention for job-order
contracting construction services contracts.
6.5
FINAL PAYMENT
A.
After receipt of a final Contractor Payment Request, the City will make final
payment as required by this Article 6.5, provided that Contractor has completed all
of the Work in conformance with the Job Order and Contract Documents and a
Final Acceptance Letter has been issued by the City.
B.
At the time of submission of its final Contractor Payment Request, Contractor will
provide the following information:
1. An affidavit that there are no claims, obligations or liens outstanding or
unsatisfied for labor, services, material, equipment, taxes or other items
performed, furnished or incurred for or in connection with the Work which
will in any way affect the City’s interests; and
2. A general release executed by Contractor waiving, upon receipt of final
payment by Contractor, all claims, except those claims previously made in
writing to the City and remaining unsettled at the time of final payment.
6.6
PAYMENTS TO SUBCONTRACTORS OR SUPPLIERS
A.
Contractor will pay its Subcontractors or suppliers within seven (7) calendar days
of receipt of each progress payment from the City. Contractor will pay for the
amount of Work perfpnried or materials supplied by each Subcontractor or supplier
as accepted and approved by the City with each progress payment. No Contract
between Contractor and its Subcontractors and suppliers may materially alter the
rights of any Subcontractor or supplier to receive prompt payment as provided in
this Contract.
B.
If Contractor fails to make payments In accordance with these provisions, the City
may take any one or more of the following actions and Contractor agrees that the
City may take these actions:
1. To hold Contractor in default under this Contract;
2. Withhold future payments until proper payment has been made to
Subcontractors or suppliers in accordance with these provisions;
(Revised 07/09/25)
Page 32 Of 66
c.
D.
Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
3. Reject all future offers to perform work for the City for a period not to exceed
one (1) year from the Substantial Completion date of the Job Order at issue;
or
4. Terminate this Contract for cause.
Should the City fail or delay in exercising or enforcing any right, power, privilege,
or remedy under this Article 6.6, the failure or delay will not be considered a waiver,
release, or modification of the requirements of this Article or of any of the terms or
provisions of this Contract.
Contractor will Include these prompt payment provisions in every subcontract,
including procurement of materials and leases of equipment for this Contract.
6.7 RECORD KEEPING AND FINANCE CONTROLS
A.
Records of Contractor's direct personnel payroll, reimbursable expenses related to
each Job Order and records of accounts between the City and Contractor will be
kept on a generally recognized accounting basils 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 of Scottsdale to Contractor, the City, its authorized
representative, or the appropriate federal or state agencies, reserve the right to
audit Contractor’s records to verify the accuracy and appropriateness of all pricing
data, including data used to negotiate the Contract Documents. The City of
Scottsdale or its authorized representative will have access, during normal working
hours, to all necessary Contractor and Subcontractor facilities, and will be provided
adequate and appropriate workspace, in order to conduct audits in compliance with
the provisions of this Article. The City of Scottsdale will give Contractor or
Subcontractor reasonable advance notice of intended audits.
B.
The City reserves the right to decrease Job Order Price or payments made on this
Contract if, upon audit of Contractor's records, the audit discloses Contractor has
provided false, misleading, or inaccurate cost and pricing data.
C.
Contractor will include a similar provision in all of its contracts with Subconsultants
and Subcontractors providing services under the Contract Documents to ensure
the City, its authorized representative, or the appropriate federal or state agency,
has access to the Subconsultants’ and Subcontractors’ records to verify the
accuracy of cost and pricing data.
D.
The City reserves the right to decrease Job Order Price or payments rhade on this
Contract if the above provision is not included in Subconsultants’ and
Subcontractors’ contracts, and one or more Subconsultants or Subcontractors do
not allow the City to audit their records to verify the accuracy arid appropriateness
of pricing data.
E.
If an audit in accordance with this Article, discloses overcharges of any nature by
Contractor to the City in excess of 1% of the total contract billings, the actual cost
(Revised 07/09/25)
Page 33 of 66
F.
Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
of the City’s audit will be reimbursed to the City by Contractor. Any adjustments
or payments which must be made as a result of any audit or inspection of
Contractor’s invoices or records wiii be made within a reasonable amount of time
(not to exceed 90 days) from presentation of the City’s findings.
This audit provision inciudes the right to inspect personnel records as required by
Section 11.33.
ARTICLE 7- CLAIMS AND DISPUTES
7.1 REQUESTS FOR CONTRACT ADJUSTMENTS AND RELIEF
7.1.1
If either Contractor or the City believes that it is entitled to relief against the other
for any event arising out of or related to Contract Services, that party will provide
written notice to the other party of the basis for its claim for relief. The claims shall
set forth in detail all known facts and circumstances supporting the claim; final
costs associated with any claim upon which notice has been given must be
submitted in writing to the City within thirty (30) days after notice has been received.
7.1.2
This notice will, if possible, be made before incurring any cost or expense and in
accordance with any specific notice requirements contained in applicable sections
of the Contract.
7.1.3
7.1.4
In the absence of any specific notice requirement, written notice will be given within
a reasonable time, not to exceed ten (10) days, after the occurrence giving rise to
the claim for relief or after the claiming party reasonably should have recognized
the event or condition giving rise to the request, whichever is later.
This notice will include sufficient information to advise the other party of the
circumstances giving rise to the claim for relief, the specific contractual adjustment
or relief requested and the basis of the request. ANY NOTICE OF CLAIM NOT
FILED WITH THE CITY WITHIN SUCH TIME AND IN COMPLIANCE WITH THE
PRECEEDING PROVISIONS SHALL BE CONSIDERED TO HAVE BEEN
WAIVED AND SHALL BE DISMISSED.
7.1.5
In the event Contractor seeks to make a claim for an increase in the Job Order
Price as a condition precedent to any liability of the City therefore, unless
emergency conditions exist. Contractor shall strictly comply with the requirements
of this section and such claim shall be made by Contractor before proceeding to
execute any work for which a claim is made. Failure to comply with this condition
precedent shall constitute a waiver by Contractor of any claims for compensation.
7.1.6 Contractor must continue its performance under this Contract regardless of the
existence of any claims by Contractor.
717 In a claim by Contractor against the City for compensation in excess of the Job
Order Price, any liability of the City to Contractor shall be strictly limited and
computed in accordance with the Contract Documents and shall in no event
include indirect costs, such as home office overheads or consequential damages
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Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
of Contractor or any estimated costs or damages.
7.2
DISPUTE AVOIDANCE AND RESOLUTION
7.2.1
The parties are fully committed to working with each other throughout the Project
and agree to communicate regularly with each other at ail times so as to avoid or
minimize disputes or disagreements. If disputes or disagreements do arise, the
Contractor and the City each commit to resolving the disputes or disagreements in
an amicable, professional and expeditious manner so as to avoid unnecessary
losses, delays and disruptions to the Work.
7.2.2 The Contractor and the City will first attempt to resolve disputes or disagreements
at the field level through discussions between the Contractor’s Representative and
the City’s Representative.
7.2.3 If a dispute or disagreement cannot be resolved through the Contractor’s
Representative and the City’s Representative, the Contractor’s Senior
Representative and the City’s Senior Representative, upon the request of ei^er
party, will meet as soon as conveniently possible, but in no case later than thirty
(30) days after the request is made, to attempt to resolve the dispute or
disagreement. Before any meetings between the Senior Representatives, the
parties will exchange relevant information that will assist the parties in resolving
their dispute or disagreement.
7.2.4 The City and the Contractor agree to negotiate in good faith in accordance with
this Contract’s procedure for the recovery of damages related to expenses incurred
by the Contractor for a delay for which the City is responsible, that is unreasonable
under the circumstances, and that was not within the contemplation of the parties
to the Contract.
7.3
DUTY TO CONTINUE PERFORMANCE
Unless provided to the contrary in the Contract Documents. Contractor will continue to
perform the Work and the City will continue to satisfy its payment obligations to
Contractor, until final resolution of any dispute or disagreement between Contractor and
the City.
7.4
REPRESENTATIVES OF THE PARTIES
A. City’s Representatives
1. The City designates the individual listed below as the City’s Senior
Representative. This individual has the authority and responsibility for
avoiding and resolving disputes under Article 7.2.3:
City of Scottsdale
Attn: Robert Franklin
Facilities Service Area Manager
9191 E. San Salvador Dr
Scottsdale, AZ 85251
(480) 312-5999
(Revised 07/09/25)
Page 35 of 66
Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
2. The City will designate an individual for each Job Order as the City’s
Representative. This person will manage the Job Order.
B: Contractor’s Representatives
1. Contractor designates the individual listed below as Contractor’s Senior
Representative; This individual has the authority and responsibility for
avoiding and r^olving disputes under Article 7.2.3:
Willmeng Construction Inc.
Attn: Keyvan Ghahreman
1702 E. Highland Avenue
Phoenix, AZ 85016
(480)968-4755
2. Contractor will designate an individual for each Job Order as Contractor’s
Representative.
ARTICLE 8 - SUSPENSION, TERMINATION AND CANCELLATION
8.1
CITY’S RIGHT TO STOP JOB ORDER SERVICES
A.
The City may, at its discretion and without cause, order Contractor in writing to stop
and suspend any Job Order. Immediately after receiving this notice. Contractor
will discontinue advancing the Job Order. The suspension will not exceed one
hundred eighty (180) consecutive days. If the City suspends the Job Order for one
hundred eighty-one (181) consecutive Days Or more, the suspension will be
considered a termination for convenience.
B.
Contractor may seek an adjustment of the Job Order Price or Job Order Time If its
cost or time to perform the Contract Services has been adversely impacted by any
suspension or stoppage of the Work by the City.
8.2
TERMINATION FOR CONVENIENCE
A.
Upon receipt of written notice to Contractor, the City has the right to terminate this
Contract or abandon any portion of any Job Order for which services have not beeh
performed by Contractor.
1. Contractor will estimate the value of the Work it has completed and submit
its appraisal to the City for evaluation. The City will have the right to inspect
the Work, to appraise the Work completed.
Contractor will receive compensation for Services performed to the date of
the termination. The fee will be an amount mutually agreed upon by
Contractor and the City. If there is no mutual agreement, the final
determination will be made in accordance with this Article.
2. The City will make the final payment within 60 days after Contractor has
(Revised 07/09/25)
Page 36 of 66
Contract No. 2026-0ld-COS
Solicitation No. RFSQ-022025-236
delivered the last of the partially completed items and the final fee has been
agreed upon.
If the City terminates this Contract in compliance with this Article and
proceeds to complete the Job Order through its employees, agents or other
third parties, the City’s rights to use the Work product will be as stated in
Article 8.4(D).
B. Upon termination of construction services during any Job Order, Contractor will
proceed with the following obligations:
1. Stop Work as stated in the notice;
2. Place no further subcontracts or orders;
3. Termjnate all subcontracts to the extent they relate to the Work terminated;
4. Assign to the City all right, title and interest of Contractor under the
subcontracts terminated, in which case the City will have the right to seWe or
to pay any termination settlement proposal arising out of those terminations;
and
5. Take any action that may be necessaiy for the protection and preservation
of the property related to the Contract that is in the possession of Contractor
and which the City has or may acquire an interest.
6. Comply with the requirements of Article 6.5(B)(1) and (2).
Contractor will submit complete termination inventory schedules no later than sixty
(60) days from the date of the notice of termination.
C.
D. The City will pay Contractor the following:
1. The direct value of its completed Work and materials supplied as of the date
of termination;
2. The reasonable costs and expenses attributable to the termination;
3. Contractor will be entitled to profit and overhead on completed Work but will
not be entitled to anticipated profit or anticipated overhead. If it appears
Contractor would have sustained a loss on the entire Work had the Job
Order been completed. Contractor Will npt be allowed profit and the City will
reduce the settlement to reflect the indicated rate of loss;
4. Contractor will maintain all records and documents for three (3) years after
final settlement. These records will be maintained and subject to auditing as
required in Article 6.7; and
5. Take any action that may be necessary for the protection and preservation
of the property related to the Job Order(s) that Is in the possession Of
(Revised 07/09/25)
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Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
Contractor and in which the City has or may acquire an interest.
8.3
CANCELLATION FOR CAUSE
The City may also cancel this Contract or any part of it with seven (7) days notice for
cause in the event of any default by Contractor, or if Contractor 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 City’s Representative and failure to
provide the City, upon request, with adequate assurances of future performance will
ail be causes allowing the City to cancel this Contract for cause. In the event of
cancellation for cause, the City will not be liable to Contractor for any amount as
damages, and Contractor will be liable to the City for any and all damages sustained
as a result of the default that caused the cancellation.
8.4
CITY'S RIGHT TO PERFORM AND CANCEL FOR CAUSE
A.
If Contractor persistently fails to:
1. Provide a sufficient number of skilled workers;
2. Supply the materials required by the Contract Documents or Job Order(s);
3. Cprnpiy with applicable Legal Requirements;
4. Timely pay, without cause, Subcpnsultants or Subcontractors;
5. Perform the Contract Services with promptness and diligence to ensure
that a Job Order is completed by the Job Order Tjme, as the times may be
adjusted; or
6. Perform other material obligations under the Contract Documents and/or
individual Job Orders;
Then the City, in addition to any other rights and remedies provided in the Contract
Documents or by law, will have the rights stated in Articles 8.2 and 8.3.
In the event the City cancels this Contract or any part of the services under any
Job Order, the City will notify Contractor in writing, and immediately upon receiving
this notice. Contractor will discontinue adyancing the Work under this Contract or
the Job Order and proceed to close ail operations of any affected Job Order or this
Contract.
B. If the City provides Contractor with a written order to provide adequate maintenance
of traffic, adequate cleanup, adequate dust control or to correct deficiencies or
damage resulting from abnormal weather conditions, and Contractor fails to comply
in a time frame specified, the City may have the Work accomplished by other
sources at Contractor’s expense and without an increase to the Job Order Price
C. Upon the occurrence of an event stated In Article 8.4(B), the City may provide written
notice to Contractor that it intends to cancel the Contract unless the problem cited
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Contract No. 2026-01p-COS
Solicitation No. RFSQ-022025-236
is cured, or commenced to be cured, within seven (7) days of Contractor’s receipt of
notice.
1. If Contractor fails to cure, or reasonably commence to cure, the problem,
then the City may give a second written notice to Contractor of its intent to
cancel within an additional seven (7) day period.
2. If Contractor, within this second seven (7) day period, fails to cure, or
reasonably commence to cure the problem, then the City may declare the
Contract cancelled for default by providing written notice to Contractor of
this declaration.
D. Upon declaring the Contract cancelled in accordance with Article 8.4(C), and for the
purpose of completing the Work, the City may for all Job Orders enter upon the
premises and take possession of all mateiials, equipment, scaffolds, tools,
appliances and other items, which have been purchased or provided for the
performance of the Work, all of which Contractor now transfers, assigns and sets
over to the City for this purpose, and to employ any person or persons to complete
the Work and provide all of the required labor, services, materials, equipment and
other items.
E. if through any cause. Contractor fails to fulfill in a timely and proper manner its
obligations under this Contract, or If Contractor violates any of the covenants,
Contracts, or stipulations of this Contract, the City may withhold any payments to
Contractor for the purpose of setoff until the exact amount of damages due the City
from Contractor Is determined by a court of competent jurisdiction.
F. In the event of a cancellation. Contractor will not be entitled to receive any further
payments under the Contract Documents until the Work on all Job Orders is
completed in accordance with the Contract Documents. At that time. Contractor will
only be entitled to be paid for Work performed and accepted by the City before its
default.
G. If the City’s cost and expense of completing the Work exceeds the unpaid balance
of a Job Order Price, then Contractor wl|l be obligated to pay the difference to the
City, these costs and expenses will include not only the cost of completing the
Work, but also losses, damages, costs and expense, including attorneys’ fees and
expenses, incurred by the City in connection with the reprocurement and defense of
claims arising from Contractor’s default.
H. If the City cancels this Contract for cause and the cancellation is determined to have
been without legal right, the cancellation for cause will be considered to have been
a termination for convenience in accordance with the provisions of Article 8.2.
ARTICLE 9 > INSURANCE AND BONDS
9.1 INSURANCE REQUIREMENTS
A. At the same time as execution of this Contract, Contractor will furnish the City of
Scottsdale a Certificate of Insurance on a standard insurance industry ACORD
(Revised 07/09/25)
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Contract No. 2026-010-COS
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form. The ACORD form will be issued by an insurance company authorized to
transact business in the State of Arizona.
B.
Contractor. 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 Contractor, its 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 Contractor from liabilities that might arise out of the
performance of the Contract Services under this Contract by Contractor, its agents,
representatives, employees. Subcontractors or Subconsultants and Contractor is
free to purchase any additional insurance as may be determined necessary. The
City will not pay for higher limits, but if Contractor pays for insurance with higher
limits. Contractor will name the City as an additional insured on any additional
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 tiie 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 completiori 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.
Self-Insured Retentions. 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.
9.2 MINIMUM SCOPE AND LIMITS OF INSURANCE
Contractor must provide coverage with limits of liability not less than those stated below.
A. Commercial General Liability-Occurrence Fomn
General Aggregate
Products-Completed Operations Aggregate
Personal & Advertising Injury
Each Occurrence
$2,000,000
$2,000,000
$1,000,000
$2,000,000
(Revised 07/09/25)
Page4d of 66
Fire Damage (Any one fire)
Medical Expenses (Any one person)
Contract No. 2026-010-GOS
Solicitation No. RFSQ-022025-236
$100,000
OPTIONAL
B. Automobile Liabilitv-Anv Auto or Owned. Hired and Non-Owned Vehicles
Combined Single Limit Per Accident
For Bodily Injury and Property Damage
C.
Workers Compensation and Employers Liability
Workers Compensation
Employers Liability:
Each Accident
Disease - Each Employee
Disease - Policy Limit
D.
Coverage Terms and Required Endorsements
$1,000,000
Statutory
$500,000
$500,000
$1,000,000
1. the City of Scottsdale, its officers, officials, agents, and employees are
additional insureds with respect to liability arising out of activities performed
by, or on behalf of. Contractor including the City’s general supervision of
Contractor, products and completed operations of Contractor; and
automobiles owned, leased, hired, or borrowed by Contractor.
2. The City, its officers, officials, agents, and employees must be additional
insureds to the full limits of liability purchased by Contractor even if those
limits of liability are in excess of those required by this Contract.
3. Contractor’s insurance coverage 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 will be in excess of the coverage provided by Contractor and
must not contribute to it.
4. Contractor’s insurance must apply separately to each insured against
whom a claim is made or suit is brought, except with respect to the limits of
the insurer’s liability.
5. Coverage provided by Contractor must not be limited to the liability
assumed under the indemnification provisions of this Contract.
6. All policies must contain a waiver of subrogation against the City, its
officers, officials, agents, and employees, for losses arising from Work
performed by Contractor for the City.
7. Workers’ Compensation and Erriployers Liability Coverage: 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 Contractor for the City.
(Revised 07/09/25)
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Contract No. 2026-010-COS
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8. If Contractor receives notice that any of the required policies of insurance
are materially reduced or cancelled, it will be Contractor's responsibility to
provide prompt notice to the contract administrator of same to the City,
unless such coverage is immediately replaced with similar policies.
E. Builders Risk-Installation Insurance (Course of Construction)
To be provided if determined by the City as necessary with each Job Order.
Contractor bears all responsibility for loss to all Work being performed and to
buildings under construction. Unless waived in writing by the City of Scottsdale,
Contractor will purchase and maintain in force Builders Risk-Installation insurance
on the entire Work until completed and accepted by the City. This insurance will
be Special Causes of Loss or Open Perils policy form, for the completed value, at
replacement cost equal to each Job Order contract price and all Subsequent
modifications. Contractor’s Builders Risk-Installation insurance will be primary and
not contributory; and waive all rights of subrogation against the City, its officers,
officials and employees.
This Builders Risk-installation insurance must name the City, Contractor and all
tiers of Subcontractors as respects their insurable interest at the date of loss. It
must contain a provision that subject insurance will not be canceled or materially
altered without at least thirty (30) days advance notice to the City. Contractor is
also required to give the City thirty (30) days advance written notice of the coverage
termination for each project. The City will also be named as a Loss Payee under
Builders Risk-Installation coverage.
This Builders Risk-Installation insurance must cover the entire Work including
reasonable compensation for architects and Contractor’s’ services and expenses
and other “soft costs” made necessary by an insured loss. Builders Risk-
Installation insurance must provide coverage from the time any covered property
comes under Contractor’s control and or responsibility, and continue without
interruption during course of construction, renovation and or installation, including
any time during which any project property or equipment is in transit, off site, or
while on site for future use or installation, insured property must include, but not
be limited to, scaffolding, false work, and temporary buildihgs at the site. This
insurance must also cover the cost of removing debris, including demolition as may
be legally required by operation of any law, ordinance, regulation or code.
Contractor must also purchase and maintain Boiler and Machinery insurance with
the same requirements as Builders Risk-Installation insurance stated above if the
Work to be performed involves any exposures or insurable property normally
covered under a Boiler and Machinery insurance policy or made necessary as
required by law and or testing requirements in the perfonnance of this Contract.
Contractor will be responsible for any and all deductibles under these policies and
Contractor waives all rights of recovery and subrogation against the City under
Contractor-provided Builders Risk-Installation insurance described in this Article.
The Builders’ Risk-Installation insurance must be endorsed so that the insurance
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Contract No. 2026-0I0-COS
Solicitation No. RFSQ-022025-236
will not be canceled or lapse because of any partial use or occupancy by the City.
Builders’ Risk-Installation Insurance must be maintained until whichever of the
following first occurs: (i) final payment has been made; or (ii) until no person or
entity, other than the City, has an insurable interest in the property required to be
covered.
By signing this Contract, all rights of subrogation are waived against the City, its
officers, officials, agents and employees.
9.3 OTHER INSURANCE REQUIREMENTS
The policies are to contain, or be endorsed to contain, the following provisions:
A.
B.
Contractors Professional Liability: Contractor must carry Contractors Professional
Liability insurance to cover the residual, contingent, and passive design exposures
of Contractor.
1.
The City of Scottsdale, its officers, officials, agents, and employees, are to
be named as additional insureds with respect to liability arising out of:
activities perfonned by or ort behalf of Contractor, including tiie City’s
general supervision of Contractor; products and completed operations of
Contractor.
2.
The City, its officers, officials, agents, and employees must be additional
insureds to the full limits of liability purchased by Contractor, even if those
limits of liability are in excess of those required by this Contract. The
Commercial General Liability policy will be at least as broad as the
Insurance Service Office, Inc.’s CG 0 0 01 07 98,
Contractors Professional Limits of Liability: Contractor 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.
Contractor, 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.
1.
2.
Contractor’s insurance coverage must be primary insurance with respect
to the City, its officers, officials, agents, and employees. Insurance or self-
insurahce maintained by the City, its officers, officials, agents, and
employees must be in excess of Contractoi^s insurance and will not
contribute to it.
Contractor’s insurance must apply separately to each insured against
whom a claim is made or suit is brought, except with respect to the limits of
the insurer’s liability. The coverage provided by Contractor and its
Subcontractors must not be limited to the liability assumed under the
indemnification provisions of this Contraict.
(Revised 07/09/25)
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Contract No. 2026-010-COS
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3. The policies must contain a waiver of subrogation against the City, its
officers, officials, agents, and employees for losses arising from Work
performed for the City.
C. Contractor, its successors and 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. Contractor must
submit a Certificate of Insurance evidencing the Commercial General Liability
insurance during this three (3) year period containing ail the insurance
requirements including naming the City of Scottsdale, its agents, representatives,
officers, directors, officials and employees as Additional Insured as required.
9.4
SUBCONSULTANT’S AND SUBCONTRACTOR’S INSURANCE
Unless Contractor’s Subconsultants and Subcontractors can provide the same level of
coverage as detailed in Article 9.2 and name the City and Contractor as Additional
Insureds, Contractor’s certificates must include all Subcontractors and Subconsultants
as insureds under its policies or Contractor must maintain separate certificates and
endorsements for each Subcontractor and Subconsultant. All coverages for
Subcontractors and Subconsultants must be in the amounts shown in Article 9.2.
Certificates must contain a provision that the insurance will not be canceled or materially
altered without at least thirty (30) days advance notice to the City. The City must also
be named as a Loss Payee under the Builders Risk-Installation coverage.
9.5
NOTICE OF CANCELLATION
If Contractor receives notice that any of the required policies of insurance are materially
reduced or cancelled, it will be Contractor’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, reduced in coverage or in limits until thirty (30) days written notice has first
been given in accordance with Article 11.24, herein.
9.6
ACCEPTABILITY OF INSURERS
insurance is to be placed with insurers duly licensed or approved to conduct business
in the State of Arizona and with an A. M. Best rating of no less than B++6. The City in
no way warrants that the above required minimum insurer rating is sufficient to protect
Contractor from potential insurer insolvency. Failure to maintain insurance as required
may result in termination of this Contract at the City’s option.
9.7
VERIFICATION OF COVERAGE
A. Contractor 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 and endorsements for each
insurance policy are to be signed by a person authorized by that insurer to bind
coverage on its behalf.
(Revised 07/09/25)
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Contract No. 2026-010-COS
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B.
All certificates and endorsements are to be received and approved by the City
before Contract Services commence except for Builders Risk-Installation
Insurance, which will be received and approved as provided in Article 9.2(E). Each
insurance policy required by this Contract must be in effect at or before the earlier
of commencement of Contract Services under the Contract Documents or the
signing of this Contract except for Builders Risk-Installation Insurance which must
be in effect before commencement of the 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, Attn: Purchasing Department, 9191 E. San Salvador Dr.
Scottsdale, AZ 85258. 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 Contractor’s Certificate and delay in contract execution.
Additional Certificates of Insurance submitted without referencing a Contract
number will be subject to rejection and returned or discarded.
9.8
APPROVAL
Any modification or variation from the insurance requirements in this Contract must be
approved by the Risk Management Division, whose decision is final. This action may be
made by administrative action.
9.9
BONDS AND OTHER PERFORMANCE SECURITY
A.
Before execution of each individual Job Order, Contractor must provide a
performance bond and a payment bond for ail construction services, each in an
amount equal to the full amount of the agreed upon cost for that Job Order.
Contractor may, at its own option, provide Payment and Performance Bonds for
the entire Contract Price amount, but there shall be no obligation for the City to
reimburse Contractor for bond costs incurred, except on an actual cost basis as
each individual Job Order is issued. Bonds must be submitted in accordance with
Title 34, Chapter 6 of the Arizona Revised Statutes and must be in substantially
the same form as Exhibits A and B, attached to this Contract.
B.
Each bond must be executed by a surety company or companies holding a
Certificate of Authority to transact surety business in the State of Arizona, issued
by the Director of the Arizona Department of Insurance. A copy of the Certificate
of Authority must accompany the bonds. The Certificate must have been issued
or updated within two (2) years before the execution of this Contract.
C.
The bonds must be made payable and acceptable to the City of Scottsdale.
D.
The bonds must be written or countersigned by an authorized representative of the
surety and the bonds must have attached a certified copy of the Power of Attorney
of the signing official.
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Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
1. If one Power of Attorney is submitted, it must be for twice the total Job
Order Price.
2. If two Powers of Attorney are submitted, each must be for the total Job
Order Price. Personal or individual bonds are not acceptable.
3. Upon the request of any person or entity appearing to be a potential
beneficiary of bonds covering payment of obligations arising under the
Contract Documents, Contractor must promptly furnish a copy of the bonds
or must permit a copy to be made.
E. All bonds submitted for this Project must be provided by a company which has
been rated "A or better" by the A.M. Best Company.
ARTICLE 10 - INDEMNIFICATION
10.1 CONTRACTOR’S GENERAL INDEMNIFICATION
To the fullest extent permitted by law. Contractor, its successors, assigns and
guarantors, must 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, reasonable 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 acts, omissions, negligence,
recklessness, or intentional wrongful conduct to the e)rtent caused by Contractor or any
of its owners, officers, directors, agents or 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 Contractor 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 Contractor to conform to any federal, state, or local law,
statute, ordinance, rule, regulation, or court decree. It is the specific interition of the
parties that the City shall, in all instances, except for Claims arising solely from the
negligent or willful acts or omissions of the City^ be indemnified by Contractor from and
against any and all claims. It is agreed that Contractor will be responsible for primary
investigation, defense, and judgment costs where this indemnification is applicable. In
consideration of the award of this Contract, Contractor agrees to waive all rights of
subrogation against the City, its officers, agents, representatives, directors, officials, and
employees for losses arising from the work performed by Contractor for the City.
Insurance provisions in this Contract are separate and independent from the indemnity
provisions of this Article and will not be construed in any way to limit the scope and
magnitude of the indemnity provisions. The indemnity provisions of this paragraph shall
not be construed in any way to limit the scope and magnitude and applicability of the
insurance provisions.
(Revised 07/09/25)
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Contract No. 2026-010-COS
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10.2 INTELLECTUAL PROPERTY
A.
Contractor must pay all royalties and license fees associated with its performance
of services.
B.
Contractor must defend any action or proceeding brought against the City based
on any claim that the Work, or any part of the Work, or the operation or use of the
Work or any part of it, constitutes infringement of any United States patent or
copyright, now or subsequently issued. The City will give prompt written notice to
Contractor of any action or proceeding and will reasonably provide authority,
information and assistance in the defense of the action. Contractor shall indemnity
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 Contractor in any action or proceeding.
Contractor agrees to keep the City informed of all developments in the defense of
these actions. The City may be represented by, and actively participate through,
its own counsel in any suit or proceedings if it so desires.
C.
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. Contractor
shall at its sole expense take reasonable steps to procure the right to operate or
use the Work. If Contractor cannot procure this right within a reasonable time.
Contractor will promptly, at Contractor’s option and at Contractor’s expense,
without an increase to the Job Order Price, (i) modity the Work so as to avoid
infringement of any patent or copyright or (ii) replace the Work with Work that does
not infringe or violate any patent or copyright.
D.
Articles 10.2(B) and 10.2(C) will not be applicable to any suit, claim or proceeding
based on infringement or violation of a patent or copyright:
1. Relating solely to a particular process or product of a particular
manufacturer specified by the City and not offered or recommended by
Contractor to the City; or
2. Arising from modifications to the Work by the City or its agents after
acceptance of the Work.
E.
The obligations stated in this Article 10.2 will constitute the sole Contract between
the parties relating to liability for infringement of violation of any patent or copyright:
ARTICLE 11 - GENERAL PROVISIONS
11.1 MARSHALING AREA
Contractor shall contact the City of Scottsdale, Development Services to determine the
requirements for obtaining a permit for marshaling areas it proposes to use. Marshaling
areas must be fenced. Contractor will obtain written approval from the property owner
for marshaling area use. This approval must contain any requirements, which are a
condition of this approval. Marshaling yard requirements according to M.A.G.
Subsection 1(37.6.1 and the City of Scottsdale Supplemental Specifications will apply.
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Contract No; 2026-G10-COS
Solicitation No. RFSQ-022025-236
11.2 CONTRACT DOCUMENTS
A.
Contract Documents are as defined in Article 12.
B.
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.
C.
In the event of any inconsistency, conflict, or ambiguity between or among the
Contract Documents, the Contract Documents will take precedence in the order in
which they are listed in the definition of Contract Documents in Article 12. As to
drawings and plaris, given dimensions will take precedence over scaled
measurements, and large-scale plans over small-scale plans. Contract
specifications will take precedence over contract plans.
D.
The Contract Documents are intended to permit the parties to complete the Work
and ail obligations required by the Contract Documents vi^hin the times and prices
agreed upon for each Job Order. The Contract Documents are intended to be
complementary and interpreted in harmony so as to avoid conflict, with words and
phrases interpreted in a manner consistent with construction and design industry
standards.
E.
This Contract, the Plans, Standard Specifications and Details, Special Provisions,
Performance Bond, Payment Bond. Certificates of Insurance, Job Orders and Job
Order Adjustments (if any) are by reference made a part of this Contract to the
same extent as if set forth in full.
F.
Work Product
1. 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 which are prepared or procured in the
performance of this Contract (collectively referred to as documents) are to
be and remain the property of the City and are to be delivered to the City
before the final payment is made to Contractor. In the event these
documents are altered, modified or adapted without the written consent of
Contractor or the Subconsultants, vi^ich consent Contractor or the
Subconsultants will not unreasonably withhold, the City agrees to hold
Contractor and the Subconsultants hannless to the extent permitted by law
from the legal liability arising out of the City’s alteration, modification or
adoption of the documents.
2. The copyrights, patents, trade secrets or other intellectual property rights
associated with the ideas, concepts, techniques, inventions, processes or
works of authorship developed, created by Contractor, its Subconsultants
or personnel, during the course of performing this Contract or arising out of
the Project will belong to Contractor.
(Revised 07/09/25)
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Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
11.3 MODIFICATIONS
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.
11.4 TIME IS OF THE ESSENCE
Time is of the essence with respect to the dates and times stated in the Contract
Documents.
11.5 COOPERATION AND FURTHER DOCUMENTATION
Contractor agrees to provide the City any other duly executed documents, as will be
reasonably requested by the City, to implement the intent of the Contract Documents.
11.6 ASSIGNMENT
Neither Contractor nor the City will, without the written consent of the other, assign,
transfer or sublet any portion of this Contract or part of the Work or the obligations
required by the Contract Documents.
11.7 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, acts of terrorism, epidemics, governmental regulations imposed after the fact,
fire, communication line failures, or power failures.
11.8 FUNDS APPROPRIATION
Multiterm contracts for job-order-contracting construction services are Subject to AR.S.
§34-607, as amended. If the City Council does not appropriate funds to continue this
Contract and pay for charges, the City may terminate this Contract at the end of the
current fiscal period. The City agrees to give written notice to Contractor at least thirty
(30) days before the end of its current fiscal period and will pay Contractor for all
approved charges incurred through the end of the period.
11.9 CONSTRUCTION METHODS
If the City provides Contractor with a written order to provide adequate maintenance of
traffic, clean-up, dust control or to correct deficiencies or damage resulting from
abnormal weather conditions, and Contractor fails to comply in the time frame specified,
the City may have Work accomplished by other sources at Contractor’s expense, without
an increase in the Job Order Price.
11.10 UTILITY RELOCATIONS FOR CONSTRUCTION METHODS
If any utility is relocated or rebuilt to accommodate Contractor’s construction methods
and available equipment, the expense will be borne by Contractor and will be replaced
to the original location before completion of the Job Order at the request of the City’s
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Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
Project Coordinator at Contractor’s sole expense, without an increase in the Job Order
Price.
11.11 DAMAGED UTILITIES DURING CONSTRUCTION
Any utilities damaged during construction shall be replaced at Contractor’s expense,
without an increase in the Job Order Price, as per the requirements of the M.A.G.
Standard Specifications.
11.12 SUCCESSORS AND ASSIGNS
This Contract will extend to and be binding upon Contractor, its successors arid assigns,
including any individual, company, partnership, or other entity with or into which
Contractor will merge, consolidate, or be liquidated, or any person, corporation,
partnership, or other entity to which Contractor 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.
11.13 CONFLICT IN LANGUAGE
All services and Work performed will conform to all applicable City of Scottsdale codes,
ordinances and requirements as outlined in the Contract Documents, if there is a coriflict
in interpretation between provisions in this Contract and those in exhibits, the provisions
in this Contract will prevail.
11.14 THIRD PARTY BENEFICIARY
Nothing under the Contract Documents will be construed to give any rights or benefits
in the Contract Documents to anyone other than the City and Contractor, and ali duties
and responsibilities undertaken in accordance with the Contract Documents will be for
the sole and exclusive benefit of the City and Contractor and not for the benefit of any
other or third party.
11.15 GOVERNING LAW
This Contract and all Contract Documents 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. Any action to enforce any
provision of this Contract or to obtain any remedy with respect to this Contract shall be
brought in the Superior Court of Maricopa County, Arizona, and 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.
11.16 SEVERABILITY
If any provision of the Contract Documents or their application to any person or
circumstance is invalid, illegal or unenforceable to any extent, the remainder of the
Contract Documents 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
(Revised 07/09/25)
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Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
A.R.S. § 41-194.01, as amended, should the Attorney General give notice to the City
that any provisions of the Contract violates state law or the Arizona Constitt4ion, or that
it may violate a state statute or the Arizona Constitution, and the Attorney General
submits the offending provisionfo the Arizona Supreme Court, the offending provision(s)
shall be immediately severed and struck from the Contract and the City and Contractor
shall, within ten (10) days after such notice, negotiate in good faith to resolve any issues
related to the severed provision(s).
11.17 LEGAL REQUIREMENTS
Contractor shall perform all Contract Services in accordance with all Legal Requirements
and will provide all notices applicable to the Contract Services as required by the Legal
Requirements.
11.18 INDEPENDENT CONTRACTOR
The services the Contractor provides to the City are that of an Independent Contractor,
not an employee, or agent of the City; Upon request, the Contractor 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.
Any provisions in the Contract Documents that may appear to give the City the right to
direct Contractor as to the details of accomplishing the Work or to exercise a measure
of control over the Work means that Contractor will follow the wishes of the City as to
the results of the Work only. These results will comply with a|l applicable laws and
ordinances.
11.19 CITY'S RIGHT OF CANCELLATION
This Contract is subject to cancellation by the City of Scottsdale in accordance With the
provisions of A.R.S. § 38-511, as amended.
11.20 SURVIVAL
All warranties, representations and indemnifications by Contractor shall survive the
completion or termination of this Contract.
11.21 COVENANT AGAINST CONTINGENT FEES
Contractor warrants that no person has been employed or retained to solicit or secure
this Contract upon any contract or understanding for a commission, percentage,
brokerage, or contingent fee, and that no member of the City Council, or any employee
of the City of Scottsdale has any interest, financially, dr otherwise, in the firm. For breach
or violation of this warranty, the City will have the right to annul this Contract without
liability, or at its discretion to deduct from the Contract Price or consideration, the full
amount of any commission, percentage, brokerage, or contingent fee.
11.22 NO WAIVER
The failure of either party to enforce any of the provisions of the Contract Documents,
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Contract No. 2026-010-eoS
Solicitation No. RFSQ-022025-236
or to require performance of the other party of any of its provisions, will not be construed
to be a waiver of those provisions, nor will it affect the validity of the Contradt Documents
or any part of the Contract Documents, or the right of either parly to enforce each and
every provision.
11.23 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.
11.24 NOTICE
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. Notice by electronic mail or facsimile will not be considered
notice.
To City:
City of Scottsdale
Attn: Robert Franklin
Facilities Service Area Manager
9191 E San Salvador Dr.
Scottsdale, Arizona 85258
To JOC Contractor:
Willmeng Construction Inc.
Attn: Keyvan Ghahreman
17025 E. Highland Avenue
Phoenix. AZ 85016
(480)968-4755
11.25 ADDITIONAL CITY RIGHTS REGARDING SECURITY INQUIRIES
Projects may be completed in both secure and non-secure City facilities. All Contractor
and Subcontractor employees may be required to pass mandatory background checks
prior to the start of any Work and be Issued access badges by City of Scottsdale
Municipal Security. In addition to the foregoing, the City reserves the right to: (1) have
an employee/prospective employee of Contractor be required to provide fingerprints and
execute any other documentation as may be necessary to obtain criminal justice
information pursuant to A.R.S. § 41-1750(G)(4); (2) act on newly acquired information
whether or not that information should have been previously discovered; (3) unilaterally
change its standards and criteria relative to the acceptability of Contractor’s employees
or prospective employees; and, (4) object, at any time and for any reason, to an
employee of Contractor performing Work (including supervision and oversight) under
this Contract.
A. Provisions Applicable to all Contractor Contracts and Subcontracts. Contractor will
include the terms of this provision for employee background and security checks
and screening in all contracts and subcontracts for Work performed under this
Contract, including supervision and oversight.
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B. Materiality of Security Inquiry Provisions. The Security Inquiry provisions of this
Contract, as stated above, are material to the City’s entry into this Contract and
any breach by Contractor may, at the City’s sole option and unfettered discretion,
be considered to be a breach of contract of sufficient magnitude to terminate this
Contract. Termination will subject Contractor to liability for its breach of contract.
11^6 HAZARDOUS MATERIALS
A.
Upon discovery of hazardous materials Contractor will comply with all applicable
laws/ordinances and regulations and take all appropriate health and safety
precautions.
B.
Unless included In the Work, if Contractor encounters onsite, or as material to be
incorporated in the Work, any material which it reasonably believes to contain
asbestos, polychlorinated biphenyl (PCB), or other hazardous substances or
materials regulated by public health laws, it will immediately stop work and report
the condition to the City.
C.
if the material is found to contain asbestos, PCB or other hazardous substances or
materials regulated by public health laws. Contractor will not resume Work in the
affected area until the material has been abated or rendered harmless. Contractor
and the City may agree, in writing, to continue Work in non-affected areas onsite.
D.
An extension of Job Order Time may be granted in accordance with Article 5.
E.
Contractor will comply with all applicable laws/ordinances and regulations and take
all appropriate health and safety precautions upon discovery.
F.
Despite the provisions of this Article 11.26, the City is not responsible for
hazardous conditions or materials introduced to the Site by Contractor,
Subcontractors or anyone for whose acts they may be liable. Contractor will
indemnify, defend and hold harmless the City and the City’s officers, directors,
employees and agents from and against all claims, losses, damages, liabilities and
expenses, including attorneys’ fees and expenses, arising out of or resulting from
those hazardous conditions or materials introduced to the Site by Contractor,
Subcontractors or anyone for whose acts they may be liable.
11.27 TRAFFIC CONTROL
A.
Complete street closures will not be permitted unless specified in the Special
Provisions or approved by the City. The timing and sequence of street closures
will be approved by the Traffic Engineering Director, or designee, at least fourteen
(14) days before the closure. This approval is necessary to provide coordination
with other roadway projects and special events.
B.
Adequate barricades and lighted warning signs must be installed and maintained
by Contractor throughout the duration of any Project. All traffic control must be In
accordance with the current version of the City of Scottsdale Supplement to MAG
Uriiform Standard Specifications Section 401 or as required by the approved
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barricade plan unless otherwise specified in the Special Provisions.
C. Contractor will submit a construction schedule and a barricade plan to the City
Traffic Engineering Director, or designee, for approval or modification at least
seventy-two (72) hours before construction is initiated, and must Wait to commence
construction until the plan is signed as accepted by the City Traffic Engineering
Director, or designee.
11.28 MATERIAL SOURCE
No material source has been designated by the City for use under this Contract. MAG
Specification, Section 106 will apply as will ADOT Standard Specifications 1982, Section
106.1, 106.2, 106.7 & 106.8, which outline controls and Section 1001-1, -2. & -4
concerning approval of Contractor-Furnished Source and supplemental Contracts in
regards to environmental analysis and the liability for inaterials testing costs.
Contractor and Subcontractor furnished material sources situated in the 100-year flood
plain of any stream or watercourse will not be allowed if located within 1.0 mile upstream
and 2.0 miles downstream of any highway structure or surfaced roadway crossing.
A Contractor and Subcontractor-furnished source will be defined as a material source,
which is neither an ADOT furnished source nor a commercial source, as defined in this
Contract.
A commercial source will be defined as a material source in which the owner or producer
has been regularly engaged for at least one (1) year during regular business hours on a
regular basis in the processing and selling of sand, rock, ready mixed Portland cement
concrete, asphaltic concrete and other similar products normally produced and sold to
all parties. The company must have an Arizona retail sales tax license.
The location of any new material source or existing non-commercial material source
proposed for use under this Contract must be reviewed by the appropriate agency
having flood plain management jurisdiction over the area of proposed source location.
Contractor and Subcontractor will obtain a letter from the agency addressed to the
Contract Administrator certifying that the proposed source location conforrns to the
required conditions and the applicable Standard Specifications. Contractor will
familiarize himself with the nature and extent of the Contract Documents, work to be
performed, all local conditions, and federal, state and local laws, ordinances, rules and
regulations that in any manner may affect cost, progress or performance of the Work.
11.29 FAMILIARIZATION WITH APPLICABLE LAWS
Contractor will familiarize itself with the nature and extent of the Contract Documents,
work to be performed, all local conditions, and federal, state and local laws, ordinances,
rules and regulations that in any manner may affect cost, progress or performance of
the Work.
11.30 NATIVE PLANTS
Contractor agrees it will take whatever steps, procedures or means necessary to
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remove, move, displace and save ail native plants within the contract work area in
accordance with the City of Scottsdale Revised Code, as arnended, and all applicable
state and county statutes, ordinances, codes and other policy requirements and
recognized methods, procedures, techniques and equipment for protection, salvage,
and handling of all plants to be moved from the construction area. This is not a pay item
unless specified upon the Schedule of Bid Items.
11.31 ENDANGERED HARDWOODS
Contractor agrees any construction, building addition or alteration project which is
financed by monies of this state or its political subdivisions will not use endangered
tropical hardwood unless an exemption is granted by the Director of the State of Arizona,
Department of Administration.
11.32 CONSTRUCTION ACTIVITY
Contractor agrees that all construction activity occurring on Site shall conform to the
hour and noise requirements of the City of Scottsdale Revised Code, as amended.
11.33 COMPLIANCE WITH LOCAL, STATE AND FEDERAL LAWS
A. Contractor 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 AcL Occupational Safety
and Health Act, and other local, state or federal law governing Contractor’s labor and
employment practices. Contractor agrees to comply with these laws in performing this
Contract and to permit the City to verify compliance. Contractor further agrees that
any violation of provision on the part of Contractor, its employees, agents or assigns
will constitute a material breach of this Contract.
Contractor 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. Contractor 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, Contractor warrants to the City that
Contractor and ali Its Subcontractors will comply with ail Federal Immigration
laws and regulations that relate to its employees and that Contractor and all its
Subcontractors now comply with the ErVeiify Program under A.R.S. §23-214i[A).
A breach of this warranty by Contractor or any of its Subcontractors will be considered
a material breach of this Contract and may subject Contractor 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 Contractor or
any Subcontractor who works on this Contract to ensure that Contractor or any
Subcontractor is complying with the warranty given above.
The City may conduct random verification of the employment records of Contractor
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and any of its Subcontractors to ensure compliance with this warranty. Contractor
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.
The City will not consider Contractor or any of its Subcontractors in material breach of
this Contract if Contractor 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 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 Contractor enters into
with any and all of its Subcontractors who provide services under this Contractor 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. Contractor will take appropriate steps to assure that all Subcontractors
comply with the requirements of the E-Verify Program. Contractor’s failure to assure
compliance by ail its Subcontractors with the E-Verify Program may be considered a
material breach of this Contract by the City.
B. Compliance with Americans with Disabilities Act. Contractor acknowledges that, in
accordance with 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. Contractor will 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. Contractor
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 provision on the part of Contractor, its employees, agents or assigns will
constitute a material breach of this Contract.
Q, Equal Employment Opportunity and Discrimination. For the duration of this Contract,
Contractor 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 Contractor compliance with the policies contained therein.
Contractor agrees that any violation of provision on the part of Contractor, its
employees, agents or assigns will constitute a material breach of this Contract.
Contractor will include the terms of this provision in all contracts and subcontracts for
work performed under this Contract, including supervision and oversight. The
Contractor will, in all solicitations or advertisements for employees placed by or on
behalf of the Contractor, state that all qualified applicants will receive consideration for
employment without regard to race, color, religion, sex, sexual orientation, gender
identity, or nationai origin.
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D. 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. Contractor
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.
E. Advertising. No advertising or publicity concerning the City using Contractor’s services
shall be undertaken without prior written approval of such advertising or publicity by
the Contract Administrator and the City Attorney.
11.34 DATACONFibENTIALITY
A.
As used in this 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 sirnilai' documents of
information prepared by or obtained by Contractor in the perfonnance of this
Contract
B.
the parties agree that all data, including originals, images, and reproductions,
prepared by. obtained by, or transmitted to Contractor in connection with
Contractor's performance of this Contract is confidential and proprietary
information belonging to the City.
C.
Contractor will not divulge data to any third party without first obtaining the written
consent of the City. Contractor will not use the data for any purposes except to
perforrn the services required under this Contract. These prohibitions will not apply
to the following data provided Contractor has first given the required notice to the
City:
1. Data, which was known to Contractor before its performance under this
Contract unless the data was acquired in connection with the Work
performed for the City;
2. Data which was acquired by Contractor in its performance under this
Contract and which was disclosed to Contractor by a third party, vWio to the
best of Contractor’s knowledge and belief, had the legal right to make
disclosures and Contractor is not otherwise required to hold the data in
confidence; or
3. Data, which is required to be disclosed by virtue of law, regulation, or court
order to which Contractor is subject.
D.
In the event Contractor is required or requested to disclose data to a third party, or
any other infomriation to which Contractor became privy as a result of any other
contract with the City, Contractor will first notify the City as required in this Article
of the request or demand for the data. Contractor will give the City sufficient facts
so that the City can be given an opportunity to first give Its consent or take any
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action the City may consider appropriate to protect the data or other information
from disclosure.
E.
Unless prohibited by law, within ten (10) days after completion of services for a
third party on real or personal property owned or leased by the City, Contractor will
promptly deliver, as stated in this Article, a copy of all data to the City. All data will
continue to be subject to the confideritiality requirements of this Contract.
F.
Contractor 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 Contractor, its employees, agents or Subconsultants. Solely
for the purposes of seeking Injunctive relief. It Is agreed that a breach of this Article
will be considered to cause imeparable harm that justifies injunctive relief in court.
11.35 CONFLICT OF INTEREST
A.
To evaluate and avoid potential conflicts of interest. Contractor will provide written
notice to the City, as stated in this Article, of any work or services performed by
Contractor for third parties that may involve or be associated with any real property
or personal properly owned or leased by the City. The notice will be given seven
(7) business days before commencement of the Project by Contractor for a third
parfy, or seven (7) business days before an adverse action as defined below.
Written notice and disclosure will be sent to the City Senior Representative
identified in Article 7.4.
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
3. Using data to produce income for Contractor or its employees
independently of performing the sen/ices under this Contract, without first
obtaining the written consent of the City.
C.
Contrador represents that except for those persons, entities and projects identified
to the City, the services to be performed by Contractor 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.
Contractor’s failure to provide a written notice and disclosure of the information
stated in this Article on Conflicts of Interest will constitute a material breach of this
Contract.
E.
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
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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.
11.36 COMMENCEMENT OF STATUTORY LIMITATION PERIOD AND STATUTE OF
REPOSE
A.
Before Final Completion. As to acts or failures to act occurring before the relevant
date of Final Completion, any applicable statute of limitations will commence to run
and any alleged cause of action will be considered to have accrued in any and all
events not later than the date of Final Completion.
B.
Between Punch List Preparation and Final Completion. As to acts or failures to act
occurring between the relevant date of Punch List Preparation and before Final
Completion, any applicable statute of limitation will begin to run and any alleged
cause of action will be considered to have accrued In any events not later than the
date of Final Completion.
C.
After Completion. As to acts or failures to act occurring after the date of Final
Completion, any applicable statute of limitations will commence to run and any
alleged cause of action will be considered to have accrued in any and all events
not later than the date of any correction of the Work or failure to correct the Work
by the Contractor, or the date of actual commission of any other act or failure to
perform any duty or obligation by the Contractor or the City, whichever occurs last.
D.
Statute of Repose. The time period for the applicable Statute of Repose will
commence to run at the time specified in A.R.S. §12-552 as it is amended or
rehumbered from time to time.
11.37 LOSS AND DAMAGES
All loss or damage arising out of the nature of the Work to be done or from the action of
the elements, or from any unforeseen circumstances, in the prosecution of the same, or
from any unusual obstructions or difficulties which may be encountered in or during the
prosecution of the Work, or from any casualty whatsoever of every description, will be
sustained and borne by Contractor at its own cost and expense.
11.38 RIGHTS-OF-WAY
the M.A.G. Standard Specification 107.12 is modified to read as follows: “Contractor, at
Its own expense, is responsible for the acquisition of any necessary temporary
easements for construction purposes, storage and maintenance purposes, which are
required In addition to existing easements or rights of way secured by the City as
indicated upon the plans.’’
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11.39 EXISTING TRAFFIC AND STREET SIGNS AND TRAFFIC SIGNAL EQUIPMENT
Contractor will use due care when excavating at or near intersections where traffic signal
underground conduit is Ideated. Contractor will notify the Transportation Maintenance
Traffic Signal Division (tel. 480.312.6620) at least forty-eight (48) hours in advance of
any work at the intersections. Contractor will be responsible for the installation and
maintenance of temporary overhead traffic signal cable as specified by the Traffic
Engineering Director when underground conduit is to be severed by excavations at the
intersection. The Transportation Maintenance Manager will have ail underground traffic
conduit located and will provide the necessary City Technicians to assist Contractor in
identifying wiring phases and direction of conduit runs upon twenty-four (24) hours’
notice from Contractor and at least one (1) day before Contractor’s scheduled wiring and
installation of temporary cables. Contractor will be responsible for the wiring and
connection of all temporary cable within the pull boxes and terminal compartments. The
Transportation Maintenance Manager will provide a City technician to assist Contractor
with connecting field wiring within the traffic signal control cabinet. Contractor will
provide, at its expense, an off-duty uniformed Police Officer to direct traffic while the
traffic signal is turned off and the wiring is transferred. Contractor will be respoiisibie as
specified by the Traffic Engineering Manager for the repair and restoratipn of all traffic
signal overhead and underground items that have been damaged or modified. The City
does not permit the splicing of Magnetic Detector Loops.
11.40 CERTIFICATION OF USE OF BENCHMARKS
In compliance with the City’s Design Standards & Policies Manual (DS&PM), Sections
9-1.1 and 9-1.301, it is the City’s intent that Contractor must use both horizontal and
vertical benchmarks with City of Scottsdale published values for any survey on all public
works projects. These published values are available for public use at the foilowing
website; https://eservices.scottsda)eaz.Qov/maDs/benchmarks. AT LEAST 1
HORIZONTAL AND 1 VERTICAL BENCHMARK MUST MATCH THE NORTHING,
EASTING OR ELEVATION VALUES PUBLISHED ON THE CITY’S WEBSITE. If
required by the City, Contractor must sign and submit with this Contract, the Certificate
of Use attached and by reference made a part of this Contract.
11.41 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. Contractor, its Subcontractors, Subconsultants and Suppliers, shall pay all
Federal, state and local taxes applicable to its operation and any persons employed by
Contractor, its Subcontractors, Subconsultants and Suppliers, except as may be
otherwise provided in this Contract. Contractor 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 arid regulations and any other costs including
transaction privilege taxes, unemployment compensation insurance. Social Security and
Worker’s Compensation.
11.42 ISRAEL BOYCOTT/FORCED LABOR PROVISIONS
By executing this contract. Contractor certifies that it is not currently engaged in and will
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not for the duration of this contract engage in boycott activity proscribed by A.R.S. § 35-
393 ef seq, as amended.
Pursuant to A.R.S. § 35-394, as amended, Contractor 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 labor or any goods
or services produced by the forced labor of ethnic Uyghurs in the People's Republic
of China.
If Contractor becomes aware during the term of Oiis Contract that Contractor is not in
compliance with this Article, Contractor shall notify the City within five (5) business days
after becoming aware of the noncompliance. Failure of Contractor to provide a written
certification that Contractor 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 12 - DEFINITIONS
“Allowance” means an agreed amount by the City and Contractor for items which may be required
to complete the scope of work.
“As-built Documenf - “As-built in construction is equivalent to “as-is.” Drawings deemed “as-
built” are final drawings that include all changes made during the actual construction process.
These drawings represent the actual existing constructed conditions as opposed to designs or a
proposed condition. The As-built Documents should be per A.R.S. § 32-152.
“Blueline or Blackline Prints” - Prints that allows comparison of document versions to show what
has been revised.
“City” means the City of Scottsdale, Arizona, an Arizona municipal corporation. Regulatory
activities handled by the City of Scottsdale Development Services, Planning and Fire
Departments or any other City department are not subject to the responsibilities of the City under
this Contract.
“City’s Representative” means the person designated in Article 7.4(A)(2). "City’s
Senior Representative" means the person designated in Article 7.4(A)(1).
“Construction Coordinator” means a City employee who coordinates the daily construction
activities with Contractor, and with their inspection staff that performs quality control inspections,
enforces project plans and specifications and adopted City codes and ordinances.
“Construction Documents" means the plans, specifications and drawings prepared by the Design
Professional after correcting for permit review requirements and incorporating addenda and
approved Job Order Adjustments.
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“Construction Fee" means Contractor’s home office overhead and profit, whether at Contractor’s
principal or branch offices, this includes the home office costs and any limitations or exclusions
that may be included in the General Conditions for the construction phase.
“Contracf or “Job Order Contract” means this fully executed Contract between the City and
Contractor.
“Contract Administrator" means the person designated in Article 7.4(A) or designee. The Contract
Administrator will serve as Contractor’s primary point of contact with the City, monitor Contractor’s
performance, review and approve invoices, establish delivery schedules, and in conjunction with
Purchasing ensure Certificates of Insurance are current, conform to the requirements of this
Contract, and are in the City’s possession. Contractor will direct any reports and/or special
requests to the Contract Administrator.
■Contract Documents" means the following items and documents in descending order of
precedence executed by the City and Contractor: (1) Change Orders; (2) Job Order Adjustments;
(3) Contract Modifications; (4) Job Orders; (6) this Contract including all exhibits and attachments;
(6) Contractor’s Proposal (if any); (7) Contractor Statement of Qualifications.
“Contract Modification” means a specific written concurrence between the City and Contractor for
changes to this Contract consistent with the City of Scottsdale Procurement Code, as amended.
“Contract Price” means the amount or amounts stated in Article 4 subject to any Contract
Modifications.
“Contract Services” means the services required by the Contract Documents.
“Contract Time(s)” means the time stated In Article 3, subject to Contract Modifications as
permitted by this Contract.
“Contractor” is Contractor selected by the City to provide or procure construction services as
detailed in this Job Order Contract
“Contractor Payment Request” means the Cjty form used by Contractor to request progress
payments for Job Orders in accordance with Article 6.
“Contractor’s Representative" means the person described in Article 7.4(B)(2).
"Contractor’s Senior Representative" means the person described in Article 7.4(B)(1).
Day(s)” means calendar days unless otherwise specifically noted in the Contract Documents.
Ill
“Delay” means an unanticipated event or interference with the progress of a critical path work
activity being performed at the tirne that causes the completion date of the project to be extended.
Delays may be caused by the City, Contractor, third parties or Force Majeure events. Delays may
be excusable, compensable, non-compensable or concurrent.
“Delay, Compensable” means delay that results from the City’s actions or inactions that entitle
Contractor to both a time extension and delay damages.
“Delay, Concurrenf means two (2) or more delays, within the same timeframe, both of which
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would independently impact the Project Schedule. If one delay is caused by the City and the other
by Contractor, Contractor will generally be entitled to an excusable, non-compensabie time
extension, to the degree the delays may “overlap.”
“Delay, Excusable” means an unforeseeable delay caused by an event beyond the control and
without the fault or negligence of Contractor (including its Suppliers and Subcontractors).
Excusable delays may be compensable or non-cornpensable, depending upon whether the terms
of the Contract or the law allows recovery of delay costs. Unless bthenvise shown, it will generally
be presumed that these delays are non-compensable.
“Delay, Non-Excusable” means a delay within the control of Contractor, its Suppliers and
Subcontractors, or a delay resulting from a risk taken by Contractor under the terms of the
Contract. Contractor will not be due any time extension or delay damages, and may be
responsible for paying to the City, actual or liquidated damages for the delay.
“Deliverables" means the work products prepared by Contractor in performing the scope of work
described in this Contract. Some of the major deliverables to be prepared and provided by
Contractor 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. Subcontractor procurement plan.
Subcontractor Contracts, Subcontractor bid packages. Supplier Contracts, and others as
indicated In this Contract or required by the Project Team.
“Design Professional” means a qualified, licensed design professional who furnishes design or
construction administration serwces.
“Differing Site Conditions” comply with M.A.G. Standard Specifications, Subsection 102.4.
“Effective Date” means the date that this Contract takes effect and becomes operative and
enforceable. The Effective Date of this Contract shall be the date on which it Is executed by the
City, as noted at the beginning of this Contract.
“Field Order” means a written field directive prepared and signed by the City, directing a change
ip work that may or may not include an adjustment In contract price or contract time.
“Final Acceptance” means the completion of a Job Order as prescribed in Article 3.5.
“Informational Submittals” - Submittals are required (common with construction projects) for the
architect and engineer to Verify that the correct products and quantities will be installed on a
project.
“Job Order" or “Project” means a specific scope of Contract Services done pursuant to an
individual Job Order and includes a specific written Contract between the City and Contractor for
a Job Order including a Scope of Work, a Job Order Price, a Job Order Time and any special
conditions that may apply to be performed under this Contract. The Job Order includes the plans,
technical specifications, special provisions and Contractor’s proposal either by reference or
inclusion.
“Job Order Adjustment” or “Adjustment means a written order signed by an authorized
representative of the City and which approves changes in the Work required under a Job Order,
the Job Order Price, or the Job Order Time consistent with the City of Scottsdale Procurement
(Revised 07/09/25)
Page 63 of 66
Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
Code, as amended.
“Job Order Notice-to-Proceed,” (NTP) means a written notice given by the City to Contractor fixing
the date on which Contractor will start to perform Contractor's obligations under that individual
Job Order.
“Job Order Price” means the amount negotiated between Contractor and the City for an individual
Job Order that includes costs, overhead, bonding, insurance, profit and other costs as agreed to
and calculated on the Unit Prices, Cost-coefficient and Special Items as prescribed in Article 4.
“Job Order Time” or “Duration of the Work” means the number of Days from a Job Order Notice-
to-Proceed to Substantial Completion. The approved Job Order Time will be made part of this
Conttact by executing an individual Job Order for that specific Project
“Legal Requirements” means all applicable federal, state and local laws, codes, ordinances,
rules, regulations, orders and decrees of any government or quasi-government entity having
jurisdiction over a Project or Site, the practices involved in a Project or Site, or any Work.
“Liquidated Damages" means an amount Contractor will pay in compliance with Article 3.6.
“Must" and “will" as used in this Contract are mandatory.
“Owner Agent," “City’s Agenf or “Owner Representative” see “City’s Senior Representative.”
“Payment Request” means a monthly progress payment request that is based on a monthly
estimate of the dollar value of the Woiic completed.
“Product Data" means illustrations, standard schedules, performance charts, instructions,
brochures, diagrams and other information furnished by Contractor to illustrate materials or
equipment for some portion of the Work.
“Professional Certification” - Professional certification is a designation which indicates that a
person is qualified to perform a job or task. Professional certification can be trade certification or
professional designation.
“Project Record Documents” means the documents created pursuant to Article 1.9.
“Project Record Drawing Prints” - Set of current design drawings used by construction contractor
for reference during construction. These drawings are typically marked up during the construction
process and are Used to develop the subsequent “as-builf drawings.
“Punch Lisf means those minor items of Work to be completed before Final Acceptance which
do not prevent the Project from being used for the purpose for which it is intended and which will
not prevent the issuance of a Certificate of Occupancy.
“Samples” means physical examples, which illustrate materials, equipment or workmanship and
establish standards by which the Work will be judged.
“Schedule of Values (SOV)” means the Document specified in the construction phase, which
divides the Job Order Price into pay items, such that the sum of all pay items equals the Job Order
(Revised 07/09/25)
Page 64 of 66
Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
Price for the construction phase Work, or for any portion of the Wori< having a separate specified
Job Order 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 Contractor or a Subcontractor, Sub-subcontractor, manufacturer, supplier or distributor
to illustrate some portion of the Work.
“Site” means the land or premises on which a Job Order is located. Contractor will require all
Subcontractors to include the street address of the Job Order in their contracts.
“Specifications” means those sections 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” or “Subconsultant” means any person or entity retained by Contractor as an
Independent contractor to perform a portion of the Contract Services and must include material
rnen and suppliers. All Subcontractors must be selected in accordance with the selection plan
stated in Article 1.13.
“Substantial Completion" means when the Worki 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 It for its
intended purposes. This may include, but is not limited to: (1) approval by the City Fire Marshall
and local authorities (Certificate of Occupancy); (2) issuance of elevator permit; (3) demonstration
to the City that all systems are in place, functional, and displayed to the City or its representative;
(4) installation of all materials and equipment; (5) City review and acceptance of all systems; (6)
City review and acceptance of draft O&M manuals and record documents; (7) City operation and
maintenance training cortipleted; (8) HVAC test and balance completed [provide minimum 30
days before projected substantial completion]; (9) completed landscaping and site work; and (10)
final cleaning.
“Supplier” means a manufacturer, fabricator, supplier, distributor, material man or vendor having
a direct contract with Contractor or any Subcontractor to furnish materials or equipment to be
incorporated in the construction phase work by Contractor or any Subcontractor.
“Work” means 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 services and documents as required
by the Contract Documents for the construction phase.
[END OF TEXT- SIGNATURE PAGE TO FOLLOW]
(Revised 07/09/25)
Page 65 of 66
Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
CITY OF SCOTTSDALE, ARIZONA
CONTRACT NO. 2026-010-COS
CONTRACT____________
This Contract has been properly executed by the parties above named, on the date and year written above, to be
retained by the City Clerk.
Contractor agrees that this Contract, as awarded, is for the stated Work and understands that payment for the
Work will be made on the basis of the Indicated amount, per the terms and conditions of this Contract.
CITY OF SCOTTSDALE, an
Arizona municipal corporation
By:______________________
Lisa Borowsky, Mayor
ATTEST:
CONTRACTOR:
Willmeng Construction Inc, an Arizona Corporation
By:.
Name: keyvan Ghahreman_______
Title: Vice President of Operations
3/9/26 12:33 MST
Ben Lane, City Clerk
RECOMMENDED:
Robert Franklin
Contract Administrator
3/9/26 16:23 MST
3/9/26 16:27 MST
Jenn Myers, MPA, CPPO, NIGP-GPP, CPPB
Purchasing Director
^(s/fWoods^r.
George Woods
Safety & Risk Management Director
3/10/26 09:40 MST
APPROVED AS TO FORM:
J^ijtkTuht
Luis E. Santaella, Interim City Attorney
By: Lydia Tulin, Assistant City Attorney
3/10/26 09:51 MST
(Revised 07/09/25)
Page 66 of 66
Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
EXHIBIT A
STATUTORY PERFORMANCE BOND
PURSUANT TO TITLE 34, CHAPTER 6,
OF THE ARIZONA REVISED STATUTES
(Penalty of this bond must be 100% of the Contract Amount)
KNOW ALL MEN BY THESE PRESENTS:
That
___________________________ (hereinafter called the Principal) as Principal, and
___________________ , a corporation organized and existing under the laws of the State of
_________________with its principal office in the City of_______________________ , (hereinafter called
the Surety), as Surety, are held and firmly bound unto the City of Scottsdale, County of Maricopa, State of
Arizona in the amount of___________________________ Dollars ($_____ _________ ), for the payment
whereof, the said Principal and Surety bind themselves, and their heirs, administrators, executors
successors and assigns, jointly and severally, firmly by these presents.
WHEREAS, the Principal has entered into a certain written contract witti the City of Scottsdale, dated the
___ day of _____________, 2026, for Bid No. (bid number). Project No. (project number), (project
name), which contract is hereby referred to and made a part hereof as fully and to the sarhe extent as if
copied at length herein.
NOW THEREFORE, the condition of tills obligation is such, that if the Principal faithfully performs and fulfills
all of the undertakings, covenants, terms, conditions and Contracts of the contract during the original term
of the contract and any extension of the contract, with or without notice to the surety, and during the life of
any guaranty required under the contract, and also performs and fulfills all of the undertakings, covenants,
terms, conditions and Contracts of all duly authorized modifications of the contract that rnay hereafter be
made, notice of which modifications to the surety being hereby waived, the above obligation is void.
Otherwise it remains in full force and effect.
PROVIDED HOWEVER, that this Bond is executed pursuant to the provisions of Title 34, Chapter 6,
Arizona Revised Statutes, and all liabilities on this Bond will be determined in accordance with the
provisions of Title 34, Chapter 6, Arizona Revised Statutes, to the extent as If it were copied at length in
this Contract The prevailing party in a suit on this bond will recover as part of the judgment reasonable
attorney fees that may be fixed by a Judge of the Court. The performance under this bond is limited to the
construction to be performed under the contract and does not include any design services, preconstruction
services, financial services, maintenance services, operations services or any other related services
included In the contract.
WITNESS our hands the
.day of.
, 2026.
PRINCIPAL
BY;
SURETY
(SEAL)
AGENCY OF RECORD
AGENCY ADDRESS
(Revised 03/17/25)
Page 1 of 1
Contract No. 2026-010-COS
Solicitation No. RFSQ-022025-236
EXHIBITS
STATUTORY PAYMENT BOND
PURSUANT TO TITLE 34, CHAPTER 6.
OF THE ARIZONA REVISED STATUTES
(Penalty of this bond must be 100% of the Contract Amount)
KNOW ALL MEN BY THESE PRESENTS;
That,
(hereinafter called the Principal), as Principal, and
.a corporation organized and existing under the laws of the
_, with its principal office in the City of
State of_______ _
(hereinafter called the Surety), as Surety, are held and firmly bound unto the City of Scottsdale,
County of Maricopa, State of Arizona, In the amount of ___________________________Dollars
($.^_______________ ), for the payment whereof, the said Principal and Surety bind themselves,
and their heirs, administrators, executors, successors and assigns, jointly and severally, firmly by
these presents.
WHEREAS, the Principal has entered into a certain written contract with the City of Scottsdale
dated the_____ day of_______ ______ . 2026, for Bid No. (bid number). Project No.
(project number), (project name), which contract is hereby referred to and made a part hereof as
ffilly and to the same extent as if copied at length herein.
NOW, THEREFORE, the condition of this obligation is such that if the Principal promptly pays all
monies due to all persons supplying labor or materials to the Principal or the Principal's
subcontractors in the prosecution of the work provided for in the contract, this obligation is void.
Otherwise it remains in full force and effect.
PROVIDED, HOWEVER, that this bond is executed pursuant to the provisions of Title 34, Chapter
6, of the Arizona Revised Statutes, and all liabilities on this bond will be determined in accordance
with the provisions, conditions and limitations of Title 34, Chapter 6, Arizona Revised Statutes, to
the same extent as if they were copied at length in this Contract.
The prevailing party in a suit on this bond will recover as a part of the judgment reasonable
attorney fees that may be fixed by a Judge of the Court.
WITNESS our hands the
day of.
,2026.
PRINCIPAL
BY:
SURETY
(SEAL)
AGENCY OF RECORD
AGENCY ADDRESS
(Revised 03/17/25)
Page 1 of 1