Agreement #HO1-031-4309 - DC Demo
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City Clerk Document No.
Public Housing Council Meeting Date: May 10, 2021
CITY OF CHANDLER SERVICES AGREEMENT
PUBLIC HOUSING HEAT PUMP REPLACEMENT
CITY OF CHANDLER AGREEMENT NO. H01-031-4309
THIS AGREEMENT (Agreement) is made and entered into by and between the City of Chandler, an Arizona
municipal corporation (City), and DC Demo, LLC, dba, RM3 Mechanical (Contractor), an Arizona Limited
Liability Company. City and Contractor may individually be referred to as Party and collectively referred to
as Parties) and made
, 20
(Effective Date).
RECITALS
A. City proposes to provide heat pump replacement services as more fully described in Exhibit A, which is
attached to and made a part of this Agreement by this reference.
B. Contractor is ready, willing, and able to provide the services described in Exhibit A for the
compensation and fees set forth and as described in Exhibit B, which is attached to and made a part of
this Agreement by this reference.
C. City desires to contract with the Contractor to provide these services under the terms and conditions
set forth in this Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the premises and the mutual promises contained in this
Agreement, City and Contractor agree as follows:
SECTION I: DEFINITIONS
For purposes of this Agreement, the following definitions apply:
Agreement means the legal agreement executed between the City and the Contractor
City means the City of Chandler, Arizona
Contractor means the individual, partnership, or corporation named in the Agreement
Days means calendar days
May, Should means something that is not mandatory but permissible
Shall, Will, Must means a mandatory requirement
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SECTION II: CONTRACTOR’S SERVICES
Contractor must perform the services described in Exhibit A to the City’s satisfaction within the terms and
conditions of this Agreement and within the care and skill that a person who provides similar services in
Chandler, Arizona exercises under similar conditions. All work or services furnished by Contractor under
this Agreement must be performed in a skilled and workmanlike manner. Unless authorized by the City
in writing, all fixtures, furnishings, and equipment furnished by Contractor as part of the work or services
under this Agreement must be new, or the latest model, and of the most suitable grade and quality for
the intended purpose of the work or service.
SECTION III: PERIOD OF SERVICE
Contractor must perform the services described in Exhibit A for the term of this Agreement.
Following execution of this Agreement by City, the Contractor will immediately commence work and will
complete all services described within 90 days from the date the Contractor is notified to proceed.
SECTION lV: PAYMENT OF COMPENSATION AND FEES
Unless amended in writing by the Parties, Contractor's compensation and fees as more fully described in
Exhibit B for performance of the services approved and accepted by the City under this Agreement must
not exceed $257,860. Contractor must submit requests for payment for services approved and accepted
during the previous billing period and must include, as applicable, detailed invoices and receipts, a
narrative description of the tasks accomplished during the billing period, a list of any deliverables
submitted, and any subcontractor’s or supplier’s actual requests for payment plus similar narrative and
listing of their work. Payment for those services negotiated as a lump sum will be made in accordance
with the percentage of the work completed during the preceding billing period. Services negotiated as a
not-to-exceed fee will be paid in accordance with the work completed on the service during the preceding
month. All requests for payment must be submitted to the City for review and approval. The City will
make payment for approved and accepted services within 30 days of the City’s receipt of the request for
payment. Contractor bears all responsibility and liability for any and all tax obligations that result from
Contractor’s performance under this Agreement.
LIQUIDATED DAMAGES: The CONTRACTOR understands that if Substantial Completion is not attained
within the Contract Time as adjusted, the City will suffer damages, which are difficult to determine and
accurately specify. The CONTRACTOR agrees that if Substantial Completion is not attained within the
Contract Time as adjusted, the CONTRACTOR will pay as liquidated damages the amount of $100 per
calendar day.
SECTION V: GENERAL CONDITIONS
5.1 Records/Audit. Records of the Contractor's direct personnel payroll, reimbursable expenses
pertaining to this Agreement and records of accounts between the City and Contractor must be kept on
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the basis of generally accepted accounting principles and must be made available to the City and its
auditors for up to three years following the City’s final acceptance of the services under this Agreement.
The City, its authorized representative, or any federal agency, reserves the right to audit Contractor's
records to verify the accuracy and appropriateness of all cost and pricing data, including data used to
negotiate this Agreement and any amendments. The City reserves the right to decrease the total amount
of Agreement price or payments made under this Agreement or request reimbursement from the
Contractor following final contract payment on this Agreement if, upon audit of the Contractor's records,
the audit discloses the Contractor has provided false, misleading, or inaccurate cost and pricing data. The
Contractor will include a similar provision in all of its contracts with subcontractors providing services
under the Agreement Documents to ensure that the City, its authorized representative, or the
appropriate federal agency, has access to the subcontractors’ records to verify the accuracy of all cost
and pricing data. The City reserves the right to decrease Contract price or payments made on this
Agreement or request reimbursement from the Contractor following final payment on this Agreement if
the above provision is not included in subcontractor agreements, and one or more subcontractors refuse
to allow the City to audit their records to verify the accuracy and appropriateness of all cost and pricing
data. If, following an audit of this Agreement, the audit discloses the Contractor has provided false,
misleading, or inaccurate cost and pricing data, and the cost discrepancies exceed 1% of the total
Agreement billings, the Contractor will be liable for reimbursement of the reasonable, actual cost of the
audit.
5.2 Alteration in Character of Work. Whenever an alteration in the character of work results in a
substantial change in this Agreement, thereby materially increasing or decreasing the scope of services,
cost of performance, or Project schedule, the work will be performed as directed by the City. However,
before any modified work is started, a written amendment must be approved and executed by the City
and the Contractor. Such amendment must not be effective until approved by the City. Additions to,
modifications, or deletions from this Agreement as provided herein may be made, and the compensation
to be paid to the Contractor may accordingly be adjusted by mutual agreement of the Parties. It is
distinctly understood and agreed that no claim for extra work done or materials furnished by the
Contractor will be allowed by the City except as provided herein, nor must the Contractor do any work or
furnish any materials not covered by this Agreement unless such work is first authorized in writing. Any
such work or materials furnished by the Contractor without prior written authorization will be at
Contractor's own risk, cost, and expense, and Contractor hereby agrees that without written
authorization Contractor will make no claim for compensation for such work or materials furnished.
5.3 Termination for Convenience. The City and the Contractor hereby agree to the full performance
of the covenants contained herein, except that the City reserves the right, at its discretion and
without cause, to terminate or abandon any service provided for in this Agreement, or abandon any
portion of the Project for which services have been performed by the Contractor. In the event the
City abandons or suspends the services, or any part of the services as provided in this Agreement,
the City will notify the Contractor in writing and immediately after receiving such notice, the
Contractor must discontinue advancing the work specified under this Agreement. Upon such
termination, abandonment, or suspension, the Contractor must deliver to the City all drawings,
plans, specifications, special provisions, estimates and other work entirely or partially completed,
together with all unused materials supplied by the City. The Contractor must appraise the work
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Contractor has completed and submit Contractor's appraisal to the City for evaluation. The City may
inspect the Contractor's work to appraise the work completed. The Contractor will receive
compensation in full for services performed to the date of such termination. The fee shall be paid in
accordance with Section IV of this Agreement, and as mutually agreed upon by the Contractor and
the City. If there is no mutual agreement on payment, the final determination will be made in
accordance with the Disputes provision in this Agreement. However, in no event may the payment
exceed the payment set forth in this Agreement nor as amended in accordance with Alteration in
Character of Work. The City will make the final payment within 60 days after the Contractor has
delivered the last of the partially completed items and the Parties agree on the final payment. If the
City is found to have improperly terminated the Agreement for cause or default, the termination will
be converted to a termination for convenience in accordance with the provisions of this Agreement.
5.4 Termination for Cause. The City may terminate this Agreement for Cause upon the occurrence of any
one or more of the following events: in the event that (a) the Contractor fails to perform pursuant to the
terms of this Agreement, (b) the Contractor is adjudged a bankrupt or insolvent, (c) the Contractor makes
a general assignment for the benefit of creditors, (d) a trustee or receiver is appointed for Contractor or
for any of Contractor’s property (e) the Contractor files a petition to take advantage of any debtor's act, or
to reorganize under the bankruptcy or similar laws, (f) the Contractor disregards laws, ordinances, rules,
regulations or orders of any public body having jurisdiction, or (g) the Contractor fails to cure default
within the time requested. Where Agreement has been so terminated by City, the termination will not
affect any rights of City against Contractor then existing or which may thereafter accrue.
5.5 Indemnification. The Contractor (lndemnitor) must indemnify, defend, save and hold harmless
the City and its officers, officials, agents and employees (lndemnitee) from any and all claims,
actions, liabilities, damages, losses or expenses (including court costs, attorneys' fees and costs of
claim processing, investigation and litigation) (Claims) caused or alleged to be caused, in whole or in
part, by the wrongful, negligent or willful acts, or errors or omissions of the Contractor or any of its
owners, officers, directors, agents, employees, or subcontractors in connection with this Agreement.
This indemnity includes any claim or amount arising out of or recovered under workers'
compensation law or on account of the failure of the Contractor to conform to any federal, state or
local law, statute, ordinance, rule, regulation or court decree. The Contractor must indemnify
lndemnitee from and against any and all Claims, except those arising solely from lndemnitee's own
negligent or willful acts or omissions. The Contractor is responsible for primary loss investigation,
defense and judgment costs where this indemnification applies. In consideration of the award of
this Agreement, the Contractor agrees to waive all rights of subrogation against lndemnitee for
losses arising from or related to this Agreement. The obligations of the Contractor under this
provision survive the termination or expiration of this Agreement.
5.6 Insurance Requirements. Contractor must procure insurance under the terms and conditions
and for the amounts of coverage set forth in Exhibit C against claims that may arise from or relate to
performance of the work under this Agreement by Contractor and its agents, representatives,
employees, and subcontractors. Contractor and any subcontractors must maintain this insurance
until all of their obligations have been discharged, including any warranty periods under this
Agreement. These insurance requirements are minimum requirements for this Agreement and in no
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way limit the indemnity covenants contained in this Agreement. The City in no way warrants that the
minimum limits stated in Exhibit C are sufficient to protect the Contractor from liabilities that might
arise out of the performance of the work under this Agreement by the Contractor, the Contractor’s
agents, representatives, employees, or subcontractors. Contractor is free to purchase such
additional insurance as may be determined necessary.
5.7 Cooperation and Further Documentation. The Contractor agrees to provide the City such other
duly executed documents as may be reasonably requested by the City to implement the intent of
this Agreement.
5.8 Notices. Unless otherwise provided, notice under this Agreement must be in writing and will be
deemed to have been duly given and received either (a) on the date of service if personally served
on the party to whom notice is to be given, or (b) on the date notice is sent if by electronic mail, or (c)
on the third day after the date of the postmark of deposit by first class United States mail, registered
or certified, postage prepaid and properly addressed as follows:
For the City
For the Contractor
Name:_Larry Mickel____________________________
Name:__Ralph Morales, III______________________
Title:__Housing Project Coordinator____________
Title:_Owner____________________________________
Address:_235 S. Arizona Ave. ___________________
Address:_2343 N. Hayden Rd. __________________
__Chandler, AZ 85225__________________________
__Scottsdale, AZ 85257_________________________
Phone:_480-782-3204__________________________
Phone:__480-254-2106_________________________
Email:__larry.mickel@chandleraz.gov____________
Email:__rmorales@rm3mechanical.com_________
5.9 Successors and Assigns. City and Contractor each bind itself, its partners, successors, assigns,
and legal representatives to the other party to this Agreement and to the partners, successors,
assigns, and legal representatives of such other party in respect to all covenants of this Agreement.
Neither the City nor the Contractor may assign, sublet, or transfer its interest in this Agreement
without the written consent of the other party. In no event may any contractual relation be created
between any third party and the City.
5.10 Disputes. In any dispute arising out of an interpretation of this Agreement or the duties
required not disposed of by agreement between the Contractor and the City, the final determination
at the administrative level will be made by the City Purchasing and Materials Manager.
5.11 Completeness and Accuracy of Contractor's Work. The Contractor must be responsible for the
completeness and accuracy of Contractor's services, data, and other work prepared or compiled
under Contractor's obligation under this Agreement and must correct, at Contractor's expense, all
willful or negligent errors, omissions, or acts that may be discovered. The fact that the City has
accepted or approved the Contractor's work will in no way relieve the Contractor of any of
Contractor's responsibilities.
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5.12 Withholding Payment. The City reserves the right to withhold funds from the Contractor's
payments up to the amount equal to the claims the City may have against the Contractor until such
time that a settlement on those claims has been reached.
5.13 City's Right of Cancellation. The Parties acknowledge that this Agreement is subject to
cancellation by the City under the provisions of Section 38-511, Arizona Revised Statutes (A.R.S.).
5.14 Independent Contractor. For this Agreement the Contractor constitutes an independent
contractor. Any provisions in this Agreement that may appear to give the City the right to direct the
Contractor as to the details of accomplishing the work or to exercise a measure of control over the
work means that the Contractor must follow the wishes of the City as to the results of the work only.
These results must comply with all applicable laws and ordinances.
5.15 Project Staffing. Prior to the start of any work under this Agreement, the Contractor must
assign to the City the key personnel that will be involved in performing services prescribed in the
Agreement. The City may acknowledge its acceptance of such personnel to perform services under
this Agreement. At any time hereafter that the Contractor desires to change key personnel while
performing under the Agreement, the Contractor must submit the qualifications of the new
personnel to the City for prior approval. The Contractor will maintain an adequate and competent
staff of qualified persons, as may be determined by the City, throughout the performance of this
Agreement to ensure acceptable and timely completion of the Scope of Services. If the City objects,
with reasonable cause, to any of the Contractor's staff, the Contractor must take prompt corrective
action acceptable to the City and, if required, remove such personnel from the Project and replace
with new personnel agreed to by the City.
5.16 Subcontractors. Prior to beginning the work, the Contractor must furnish the City for approval
the names of subcontractors to be used under this Agreement. Any subsequent changes are subject
to the City’s written prior approval.
5.17 Force Majeure. If either party is delayed or prevented from the performance of any act required
under this Agreement by reason of acts of God or other cause beyond the control and without fault
of the Party (financial inability excepted), performance of that act may be excused, but only for the
period of the delay, if the Party provides written notice to the other Party within ten days of such act.
The time for performance of the act may be extended for a period equivalent to the period of delay
from the date written notice is received by the other Party.
5.18 Compliance with Laws. Contractor understands, acknowledges, and agrees to comply with the
Americans with Disabilities Act, the Immigration Reform and Control Act of 1986 and the Drug Free
Workplace Act of 1989. All services performed by Contractor must also comply with all applicable
City of Chandler codes, ordinances, and requirements. Contractor agrees to permit the City to verify
Contractor’s compliance.
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5.19 No Israel Boycott. By entering into this Agreement, Contractor certifies that Contractor is not
currently engaged in, and agrees for the duration of the Agreement, not to engage in a boycott of
Israel as defined by state statute.
5.20 Legal Worker Requirements. A.R.S. § 41-4401 prohibits the City from awarding a contract to any
contractor who fails, or whose subcontractors fail, to comply with A.R.S. § 23-214(A). Therefore,
Contractor agrees Contractor and each subcontractor it uses warrants their compliance with all
federal immigration laws and regulations that relate to their employees and their compliance with§
23-214, subsection A. A breach of this warranty will be deemed a material breach of the Agreement
and may be subject to penalties up to and including termination of the Agreement. City retains the
legal right to inspect the papers of any Contractor’s or subcontractor’s employee who provides
services under this Agreement to ensure that the Contractor and subcontractors comply with the
warranty under this provision.
5.21 Lawful Presence Requirement. A.RS. §§ 1-501 and 1-502 prohibit the City from awarding a
contract to any natural person who cannot establish that such person is lawfully present in the
United States. To establish lawful presence, a person must produce qualifying identification and sign
a City-provided affidavit affirming that the identification provided is genuine. This requirement will
be imposed at the time of contract award. This requirement does not apply to business
organizations such as corporations, partnerships, or limited liability companies.
5.22 Covenant Against Contingent Fees. Contractor warrants that no person has been employed or
retained to solicit or secure this Agreement upon an agreement or understanding for a commission,
percentage, brokerage, or contingent fee, and that no member of the Chandler City Council, or any
City employee has any interest, financially, or otherwise, in Contractor’s firm. For breach or violation
of this warrant, the City may annul this Agreement without liability or, at its discretion, to deduct
from the Agreement price or consideration, the full amount of such commission, percentage,
brokerage, or contingent fee.
5.23 Non-Waiver Provision. The failure of either Party to enforce any of the provisions of this
Agreement or to require performance of the other Party of any of the provisions hereof must not be
construed to be a waiver of such provisions, nor must it affect the validity of this Agreement or any
part thereof, or the right of either Party to thereafter enforce each and every provision.
5.24 Disclosure of Information Adverse to the City’s Interests. To evaluate and avoid potential
conflicts of interest, the Contractor must provide written notice to the City, as set forth in this
Section, of any work or services performed by the Contractor for third parties that may involve or be
associated with any real property or personal property owned or leased by the City. Such notice
must be given seven business days prior to commencement of the services by the Contractor for a
third party, or seven business days prior to an adverse action as defined below. Written notice and
disclosure must be sent to the City’s Purchasing and Materials Manager. An adverse action under
this Agreement includes, but is not limited to: (a) using data as defined in the Agreement acquired in
connection with this Agreement to assist a third party in pursuing administrative or judicial action
against the City; or (b) testifying or providing evidence on behalf of any person in connection with an
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administrative or judicial action against the City; or (c) using data to produce income for the
Contractor or its employees independently of performing the services under this Agreement,
without the prior written consent of the City. Contractor represents that except for those persons,
entities, and projects identified to the City, the services performed by the Contractor under this
Agreement are not expected to create an interest with any person, entity, or third party project that
is or may be adverse to the City’s interests. Contractor's failure to provide a written notice and
disclosure of the information as set forth in this Section constitute a material breach of this
Agreement.
5.25 Data Confidentiality and Data Security. As used in the Agreement, 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, obtained by, or
transmitted to the Contractor or its subcontractors in the performance of this Agreement. The Parties
agree that all data, regardless of form, including originals, images, and reproductions, prepared by,
obtained by, or transmitted to the Contractor or its subcontractors in connection with the Contractor's or
its subcontractor’s performance of this Agreement is confidential and proprietary information belonging
to the City. Except as specifically provided in this Agreement, Contractor or its subcontractors must not
divulge data to any third party without the City’s prior written consent. Contractor or its subcontractors
must not use the data for any purposes except to perform the services required under this Agreement.
These prohibitions do not apply to the following data provided to the Contractor or its subcontractors
have first given the required notice to the City: (a) data which was known to the Contractor or its
subcontractors prior to its performance under this Agreement unless such data was acquired in
connection with work performed for the City; or (b) data which was acquired by the Contractor or its
subcontractors in its performance under this Agreement and which was disclosed to the Contractor or its
subcontractors by a third party, who to the best of the Contractor's or its subcontractors knowledge and
belief, had the legal right to make such disclosure and the Contractor or its subcontractors are not
otherwise required to hold such data in confidence; or (c) data which is required to be disclosed by virtue
of law, regulation, or court order, to which the Contractor or its subcontractors are subject. In the event
the Contractor or its subcontractors are required or requested to disclose data to a third party, or any
other information to which the Contractor or its subcontractors became privy as a result of any other
contract with the City, the Contractor must first notify the City as set forth in this Section of the request or
demand for the data. The Contractor or its subcontractors must give the City sufficient facts so that the
City can be given an opportunity to first give its consent or take such action that the City may deem
appropriate to protect such data or other information from disclosure. Unless prohibited by law, within
ten calendar days after completion or termination of services under this Agreement, the Contractor or its
subcontractors must promptly deliver, as set forth in this Section, a copy of all data to the City. All data
must continue to be subject to the confidentiality agreements of this Agreement. Contractor or its
subcontractors assume all liability to maintain the confidentiality of the data in its possession and agrees
to compensate the City if any of the provisions of this Section are violated by the Contractor, its
employees, agents or subcontractors. Solely for the purposes of seeking injunctive relief, it is agreed that
a breach of this Section must be deemed to cause irreparable harm that justifies injunctive relief in court.
Contractor agrees that the requirements of this Section must be incorporated into all subcontracts
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entered into by Contractor. A violation of this Section may result in immediate termination of this
Agreement without notice.
5.26 Personal Identifying Information-Data Security. Personal identifying information, financial
account information, or restricted City information, whether electronic format or hard copy, must be
secured and protected at all times by Contractor and any of its subcontractors. At a minimum,
Contractor must encrypt or password-protect electronic files. This includes data saved to laptop
computers, computerized devices, or removable storage devices. When personal identifying
information, financial account information, or restricted City information, regardless of its format, is
no longer necessary, the information must be redacted or destroyed through appropriate and
secure methods that ensure the information cannot be viewed, accessed, or reconstructed. In the
event that data collected or obtained by Contractor or its subcontractors in connection with this
Agreement is believed to have been compromised, Contractor or its subcontractors must
immediately notify the City contact. Contractor agrees to reimburse the City for any costs incurred
by the City to investigate potential breaches of this data and, where applicable, the cost of notifying
individuals who may be impacted by the breach. Contractor agrees that the requirements of this
Section must be incorporated into all subcontracts entered into by Contractor. It is further agreed
that a violation of this Section must be deemed to cause irreparable harm that justifies injunctive
relief in court. A violation of this Section may result in immediate termination of this Agreement
without notice. The obligations of Contractor or its subcontractors under this Section must survive
the termination of this Agreement.
5.27 Jurisdiction and Venue. This Agreement is made under, and must 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 thereof. Any action to enforce any provision of this Agreement or to obtain any remedy
with respect hereto must be brought in the courts located in Maricopa County, Arizona, and for this
purpose, each Party hereby expressly and irrevocably consents to the jurisdiction and venue of such
court.
5.28 Survival. All warranties, representations, and indemnifications by the Contractor must survive
the completion or termination of this Agreement.
5.29 Modification. Except as expressly provided herein to the contrary, no supplement, modification,
or amendment of any term of this Agreement will be deemed binding or effective unless in writing
and signed by the Parties.
5.30 Severability. If any provision of this Agreement or the application to any person or circumstance
may be invalid, illegal or unenforceable to any extent, the remainder of this Agreement and the
application will not be affected and will be enforceable to the fullest extent permitted by law.
5.31 Integration. This Agreement contains the full agreement of the Parties. Any prior or
contemporaneous written or oral agreement between the Parties regarding the subject matter is
merged and superseded.
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5.32 Time is of the Essence. Time of each of the terms, covenants, and conditions of this Agreement
is hereby expressly made of the essence.
5.33 Date of Performance. If the date of performance of any obligation or the last day of any time
period provided for should fall on a Saturday, Sunday, or holiday for the City, the obligation will be
due and owing, and the time period will expire, on the first day after which is not a Saturday, Sunday
or legal City holiday. Except as may otherwise be set forth in this Agreement, any performance
provided for herein will be timely made if completed no later than 5:00 p.m. (Chandler time) on the
day of performance.
5.34 Delivery. All prices are F.O.B. Destination and include all delivery and unloading at the specified
destinations. The Contractor will retain title and control of all goods until they are delivered and
accepted by the City. All risk of transportation and all related charges will be the responsibility of the
Contractor. All claims for visible or concealed damage will be filed by the Contractor. The City will notify
the Contractor promptly of any damaged goods and will assist the Contractor in arranging for inspection.
5.35 Third Party Beneficiary. Nothing under this Agreement will be construed to give any rights or
benefits in the Agreement to anyone other than the City and the Contractor, and all duties and
responsibilities undertaken pursuant to this Agreement will be for the sole and exclusive benefit of
City and the Contractor and not for the benefit of any other party.
5.36 Conflict in Language. All work performed must conform to all applicable City of Chandler codes,
ordinances, and requirements as outlined in this Agreement. If there is a conflict in interpretation
between provisions in this Agreement and those in the Exhibits, the provisions in this Agreement
prevail.
5.37 Document/Information Release. Documents and materials released to the Contractor, which
are identified by the City as sensitive and confidential, are the City’s property. The
document/material must be issued by and returned to the City upon completion of the services
under this Agreement. Contractor’s secondary distribution, disclosure, copying, or duplication in any
manner is prohibited without the City’s prior written approval. The document/material must be kept
secure at all times. This directive applies to all City documents, whether in photographic, printed, or
electronic data format.
5.38 Exhibits. The following exhibits are made a part of this Agreement and are incorporated by
reference:
Exhibit A - Project Description/Scope of Services
Exhibit E – Special Conditions
Exhibit B - Compensation and Fees
Exhibit F1-2 - Bonds
Exhibit C – Wage Decision
Exhibit G – HUD Requirements
Exhibit D - Insurance
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5.39 Special Conditions. As part of the services Contractor provides under this Agreement,
Contractor agrees to comply with and fully perform the special terms and conditions set forth in
Exhibit D, which is attached to and made a part of this Agreement.
5.40 Cooperative Use of Agreement. In addition to the City of Chandler and with approval of the
Contractor, this Agreement may be extended for use by other municipalities, school districts and
government agencies of the State. Any such usage by other entities must be in accordance with the
ordinance, charter and/or procurement rules and regulations of the respective political entity.
If required to provide services on a school district property at least five times during a month, the
Contractor will submit a full set of fingerprints to the school of each person or employee who may
provide such service. The District will conduct a fingerprint check in accordance with A.R.S. 41-1750
and Public Law 92-544 of all Contractors, subcontractors or vendors and their employees for which
fingerprints are submitted to the District. Additionally, the Contractor will comply with the governing
body fingerprinting policies of each individual school district/public entity. The Contractor, sub-
contractors, vendors and their employees will not provide services on school district properties until
authorized by the District.
Orders placed by other agencies and payment thereof will be the sole responsibility of that agency.
The City will not be responsible for any disputes arising out of transactions made by other agencies
who utilize this Agreement.
5.41 Non-Discrimination and Anti-Harassment Laws. Contractor must comply with all applicable City,
state, and federal non-discrimination and anti-harassment laws, rules, and regulations.
5.42 Licenses and Permits. Beginning with the Effective Date and for the full term of this Agreement,
Contractor must maintain all applicable City, state, and federal licenses and permits required to fully
perform Contractor’s services under this Agreement.
5.43 Warranties. Contractor must furnish a two-year warranty on all work and services performed
under this Agreement. Contractor must furnish, or cause to be furnished, a two-year warranty on all
fixtures, furnishings, and equipment furnished by Contractor, subcontractors, or suppliers under
this Agreement. Any defects in design, workmanship, or materials that do not comply with this
Agreement must be corrected by Contractor (including, but not limited to, all parts and labor) at
Contractor’s sole cost and expense. All written warranties and redlines for as-built conditions must
be delivered to the City on or before the City’s final acceptance of Contractor’s services under this
Agreement.
5.44 Emergency Purchases. City reserves the rights to purchase from other sources those items,
which are required on an emergency basis and cannot be supplied immediately by the Contractor.
5.45 Non-Exclusive Agreement. This agreement is for the sole convenience of the City of Chandler.
The City reserves the right to obtain like goods or services from another source when necessary.
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5.46 Performance and Payment Bonds. At the time City issues Notice of Contract Award, Contractor must
provide a Performance Bond and a Payment Bond, each in an amount equal to the full amount of the
Contract Price.
Each such 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 and must be named in the current list of "Companies Holding Certificates of Authority as
Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies" as published in Circular
570 (amended) by the Audit Staff Bureau of Accounts, U.S. Treasury Department. A copy of the Certificate
of Authority must accompany the bonds. The Certificate must have been issued or updated within two (2)
years prior to the execution of this Agreement. The bonds must be written or countersigned by an
authorized representative of the surety who is either a resident of the state of Arizona or whose principal
office is maintained in this state, as by law required.
The bonds must be made payable and be acceptable to City. The bond forms for the performance and
payment bonds must be in the forms required under A.R.S. § 34-221, et. Seq., as in Appendices 4 and 5 of
these General Conditions.
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 AM Best rating
of A- or better for the prior four quarters by the latest edition of the ‘Results Best’s Key Rating Guide
(Property/Casualty)” published by the A.M. Best Company.
5.47 Budget Approval Into Next Fiscal Year. This Agreement will commence on the Effective Date and
continue in full force and effect until it is terminated or expires in accordance with the provisions of this
Agreement. The Parties recognize that the continuation of this Agreement after the close of the City's
fiscal year, which ends on June 30 of each year, is subject to the City Council's approval of a budget that
includes an appropriation for this item as expenditure. The City does not represent that this budget item
will be actually adopted. This determination is solely made by the City Council at the time Council adopts
the budget.
Page 14 of 68
EXHIBIT A TO AGREEMENT
SCOPE OF SERVICES
Packaged Heat Pump Replacements Public Housing Scattered Sites
1. PROJECT SCOPE OF WORK
Contractor will remove and replace 51 package heat pumps and one condenser / air handler at 51
separate single family home sites. The Contractor shall replace units with an American Standard
with minimum 14 SEER rating to ensure standardized HVAC systems for the City’s public housing
stock. Contractor shall verify unit size needed for each unit.
This project is funded by the Department of Housing & Urban Development (HUD). Contractor
shall comply with the HUD requirements as noted in the HUD documents included. This is a Labor
Standards Act, Davis-Bacon and Related Acts (DBRA) wage rate project.
2. WORK UNDER THIS CONTRACT
The work under this contract shall be performed on 50 single family homes located within the City
of Chandler. The Contractor shall provide all materials, equipment, tools, labor, services,
transportation, and any incidental supplies required to remove the existing heat pump
equipment, roof curbs, elbows, thermostats, thermostat wires, condensate lines, electrical
disconnects, gas lines and replace the equipment as specified in this scope of work to provide a
complete working system.
This project occurs on occupied Public Housing units where the protection of the residents and
public is essential. Residents will occupy these homes during heat pump replacement work.
3. HOUSE LOCATIONS, NUMBER OF BEDROOMS, UNIT SF, and UTILITY
Address
BedRm
Size
SF
Utility
13 S. Hamilton St.
3
1150
ALL ELEC
130 S. Dakota St.
2
918
ALL ELEC
188 W. Ironwood Drive
3
1668
ALL ELEC
198 W. Orchid Lane
3
1284
SWG
206 S. Oak Street
3
1423
ALL ELEC
2103 N. Bullmoose Dr.
3
1390
ALL ELEC
2200 W. Butler Drive
3
871
ALL ELEC
221 S. 95th Street
3
1053
ALL ELEC
2226 W. Monroe Street
3
1104
ALL ELEC
223 S. 132nd Street (site
has 2 heat pumps)
4
1680
ALL ELEC
23 S. Hamilton St.
4
1336
ALL ELEC
3 S. Hamilton St.
2
918
ALL ELEC
319 W. Nopal Place
3
1024
ALL ELEC
328 S. Oregon St.
3
1150
ALL ELEC
33 S. Hamilton St.
3
1150
ALL ELEC
Page 15 of 68
338 S. Oregon St.
2
918
ALL ELEC
354 S. Oregon St.
2
918
ALL ELEC
388 S. Oregon St.
2
918
ALL ELEC
400 S. Delaware St.
3
1150
ALL ELEC
401 S. Colorado St.
2
918
ALL ELEC
401 S. Palm Lane
2
918
ALL ELEC
402 S. Colorado St.
3
1150
ALL ELEC
411 S. Palm Lane
2
918
ALL ELEC
43 S. Hamilton St.
4
1336
ALL ELEC
440 W. Harrison Street
4
1614
SWG
454 S. Colorado St.
2
918
ALL ELEC
455 S. Colorado St.
2
918
ALL ELEC
457 W. Erie Street
3
1079
SWG
485 W. Toledo Street
3
1677
SWG
489 S. Washington St.
4
1336
ALL ELEC
53 S. Hamilton St.
3
1150
ALL ELEC
538 W. Harrison Street
5
1416
SWG
556 W. Flint Street
3
918
SWG
564 W. Ironwood Street
4
2134
SWG
635 E. Manor Drive
3
1010
ALL ELEC
696 N. Evergreen Street
3
1120
SWG
701 S. Colorado St.
2
918
ALL ELEC
721 S. Colorado St.
3
1150
ALL ELEC
741 S. Colorado St.
4
1336
ALL ELEC
744 W. Knox
3
1474
ALL ELEC
761 S. Colorado St.
3
1150
ALL ELEC
781 S. Colorado St.
2
918
ALL ELEC
797 W. Monterey Street
4
1088
SWG
801 S. Colorado St.
5
1720
ALL ELEC
840 W. Monterey Street
3
1230
SWG
840 W. Shannon Street
4
1626
SWG
864 N. California Street
3
1302
SWG
869 N. Alma School Road
4
1570
SWG
947 W. Park Ave.
3
1360
ALL ELEC
98 W. Oakland
3
1054
SWG
4. DEMOLITION
A. Contractor shall remove from the Owner’s property and legally dispose of all heat pump units,
stands, elbows, and debris associated with this project.
B. Contractor shall make such explorations and probes as are necessary to ascertain any
required protective measures before proceeding with demolition, and installation work.
Page 16 of 68
5. HEAT PUMP REPLACEMENT
A. The Contractor shall provide and install 51 American Standard package heat pump or
approved alternates, and 51 elbows and heat pump stands.
B. The Contractor shall provide and install one (1) American Standard split system at 744 W.
Knox.
C. 233 S. 132 St. has 2 separate package heat pumps that the contract will replace.
D. The package heat pumps shall be installed per manufacturer’s installation instructions.
E. There shall not be any gaps between the mating surface of the elbow and heat pump this
includes the elbow splitter. All mating surface must be sealed with approved mastic.
F. The heat pump and stand shall be level and mechanically fastened to the roof.
G. The existing thermostat wire shall be replaced with new thermostat wire 18 gauge minimum.
H. The existing disconnect shall be replaced with a new 60-amp, 240-volt, NON-fuse, metallic AC
disconnect. Approved disconnects are GE model number TFN60RCP, Eaton model number
DPU222RP, Square D model number TNA60R1CP or approved alternate. Mechanically fasten
disconnect to a non-removable panel on the heat pump.
I.
The existing liquid tight flexible conduit and fittings running from the electrical roof stub to the
new disconnect shall be replaced with new liquid tight flexible conduit and fittings.
J.
New stainless steel flexible gas lines shall be installed on the gas/electric package heat pump
units.
K. New 3/4” condensate lines with traps shall be installed on top of roof shingles and extended
beyond the roof edge. The condensate line shall be secured every five (5) feet. Existing
condensate lines that penetrate the roof shall be capped off with a PVC cap and abandoned.
L. The existing thermostats shall be replaced with compatible non programmable thermostat.
M. The Contractor shall be responsible for testing the new heat pumps and verify proper
performance in the heating and cooling modes.
N. The Contractor shall air balance the system after installation.
O. All new ductwork joints, splices, and connections shall be installed and fastened per industry
standards and sealed using a duct-seal product. The duct-seal shall be a brush on mastic
suited for the application.
P. Any removal or modification of roofing materials shall be repaired by the Contractor to
industry standards.
Q. Any damaged roof shingles resulting from demolition and installation shall be replaced with
similar materials and shingles. The existing roof shingles are standard color laminated 35 year
shingles which can be purchased off the shelf from building supply stores. Due to the age of
the shingles exact matching of shingle colors is not expected.
R. Contractor will properly repair any roof openings left as a result of moving or removing any
roof mounted equipment. This will include, but not be limited to roof jacks, condensate lines,
gas lines, electrical, and penetrations.
6. PERMITS & LICENSING
A. The City of Chandler does not require a building permit for replacement of like HVAC
equipment.
B. Contractor is responsible for any permitting and licensing required by Federal, State, and Local
agencies associated with this project.
Page 17 of 68
7. WORK SCHEDULE
A. The work will be performed in occupied homes. Work shall be scheduled to ensure that the air
conditioning unit is working at the end of the day.
B. In the event the contractor cannot provide a working heat pump unit by 4:00 PM, the
contractor will be required to provide enough portable heating/cooling units to provide
the resident with acceptable heating/cooling until the new unit is in service. The cost
associated for temporary air conditioning will be the Contractor’s responsibility.
C. Contractor will be permitted to perform demolition and installation work between the hours
of 7:00 AM to 4:00 PM Monday through Friday. Work is not permitted on City Holidays and
weekends.
D. Contractor must provide a construction schedule to include proposed work with dates,
proposed start and completion.
E. Contractor shall not perform work if there is a high probability for rain.
8. RESIDENT NOTIFICATION
Prior to starting any work, the selected Contractor must notify each resident, in writing, a
minimum of 48 hours in advance, prior to entering the property. This will be accomplished with
either a 3-part door hanger in both English and Spanish to be left on each door accessible from
the front of the property, or a mailed letter in both English and Spanish. If a mailed letter is used,
the Contractor must allow for sufficient transit time. The door hanger or letter will include the
following information: Reference Type Work Being Done , Notice Date, Project Address, Project
Start Date, Project Completion Date, Work Hours, Special Instructions , Name, Address and Phone
Number of Company, Contact Person, and 24 Hour Emergency Phone Number. The door hanger
or letter must be pre-approved by the Project Coordinator prior to being used. A copy of each
door hanger or letter will be provided to the Project Coordinator.
In the event that the Contractor is unable to start a previously notified unit (i.e. rain, labor dispute,
material shortage, schedule change, lack of workers, etc.), the contractor will be required to re-
notify that resident with another 48-hour door hanger or letter.
9. CONTRACTOR QUALIFICATIONS
A. The Contractor or Subcontractor(s) must possess one of the following Arizona Registrar of
Contractors licenses: C-39, C-79, CR-39, CR-79, R-39, or R39R.
B. The Contractor must provide proof of a minimum five (5) years’ experience as an Arizona
Registrar of Contractors licensed Contractor under one of the required licenses.
C. Contractor or Subcontractor(s) shall have a minimum of five years’ experience removing and
installing package heat pump units.
D. Contractor shall have at least one journeyman installer with a minimum of three years’
experience installing package heat pump units performing the installation work.
Page 18 of 68
10. POST AWARD SUBMITTALS
A. Before ordering any heat pumps, associated materials and equipment, the Contractor shall
submit manufactures cut sheets to the Project Coordinator for approval for the following
items:
Package Heat Pump Heat pump
Package Gas/Electric Heat pump
Heat pump Stand
Heat pump Elbow
Electrical Disconnect
Liquid Tight Flexible Conduit
Liquid Tight Flexible Conduit Fittings
Stainless Steel Flexible Gas Line
Thermostat
Duct-seal mastic
B. Manufacturer’s warranty on package heat pump units after final acceptance.
C. Manufacturer’s installation and owner’s manuals.
D. All required HUD documentation indicated in these Contract documents must be read,
properly completed, signed, and returned.
E. Certified Payroll Reports are due weekly.
F. Section 3 forms are due with each pay application.
G. Tenant notification sample letter or door hanger in English and Spanish for Project
Coordinator approval.
H. Contractor shall provide a written safety action plan for review and approval by the City.
11. QUALITY CONTROL
A. All products, equipment, and materials shall be new, unused, and free of material defects.
B. Where not more specifically described in any of the contract documents, workmanship shall
conform to all of the methods and operations of best standards and accepted practices of the
trade or trades involved, and shall include all items of fabrication, construction, or installation
regularly furnished or required for completion of the services. All work shall be executed by
personnel skilled in their respective lines of work.
C. Housing Project Coordinator shall have the authority to reject any material or workmanship
that he feels is not within code, specified type, or quality as specified. The Contractor will
correct or replace rejected work at no additional expense to the City.
D. Contractor shall complete one heat pump installation before proceeding with the remaining
installations. Once accepted, this installation will set the standard for the remaining
installations.
E. Upon completion of all work, the contractor will notify the Project Coordinator and an
inspection will be conducted prior to release of final payment. Any unfinished work noted
during this inspection will be identified on a “punch‐list” and will be furnished to the contractor
by the Project Coordinator with a time line for completion of these items. Items identified,
along with all submittals, must be completed prior to final payment being issued.
Page 19 of 68
12. WARRANTY:
A. Contractor will provide a full warranty on installed work, agreeing to provide the necessary
labor and materials to correct any installation errors, and at no additional cost to the City.
Period of warranty is for two years, and starts upon completion of the entire project.
B. Contractor shall register all heat pumps and provide warranty cards to the City.
C. Contractor will supply all materials, parts and labor, at no cost to the City to repair units during
the two year warranty period. It will be the Contractor’s responsibility to work with the
manufacturer for parts and/or reimbursements for warranty labor.
D. The Contractor shall be required to respond and repair a heat pump problem or failure within
72 hours of notification.
13. SAFETY AND SITE PROTECTION
A. This project occurs on occupied homes where the protection of the residents and the public is
essential. The houses will be occupied during reroofing operations. It is the responsibility of
the Contractor to maintain safety while work is being performed.
B. The Contractor shall be responsible for all means and methods as they relate to safety and
shall comply with all applicable local, state and federal requirements.
C. The Contractor shall be responsible for providing, barricades, flagging, caution tape and other
safety and traffic control equipment required to protect its employees, the public, surrounding
areas and vehicles.
D. All work shall be performed in compliance with OSHA regulations.
E. Worker fall protection per OSHA safety regulations is required.
F. Contractor must take necessary safety precautions to prevent any work related safety hazards
for employees, residents and the public.
G. Contractor shall be responsible for cleaning, repairing, or replacement of any damage to the
City’s and/or resident’s property caused by the Contractor or Subcontractor(s) during the
removal or installation of the items associated with this project.
H. The Contractor will be responsible for immediately notifying the Housing Project Coordinator
of any damage caused by the Contractor during contract activities.
I.
Contractor shall perform criminal history checks on all prospective employees performing
work under this IFB and provide summaries of the results to the Contract Administrator if
requested. Prospective employees whose criminal history check disclose a misdemeanor or
felony involving public indecency or harm to persons or property will not be employed to
perform work under this IFB. Criminal history checks will be completed at the sole expense of
the Contractor.
14. CLEANUP
All work related materials and debris will be removed from the site on a daily basis. City
dumpsters and/or resident trash containers shall not be used for disposal of any construction
related material. It is the Contractor’s responsibility to dispose of all material in an approved and
lawful method.
Page 20 of 68
15. CONTRACTOR’S USE OF PREMISES
A. The Contractor shall provide his/her own power for equipment and tools.
B. While on the City’s premises, Contractor, its agents, employees, and Subcontractors shall
conform in all respects with physical, fire, or other security regulations.
END OF SCOPE OF WORK
Page 21 of 68
EXHIBIT B-PRICING
Address
BedRm
Size
SF
Utility
Size
Make & Model
Cost
13 S. Hamilton St.
3
1150
ALL
ELEC
3.5
American
Standard/Trane.
4WCC4042-1000
$4500
130 S. Dakota St.
2
918
ALL
ELEC
2.5
American
Standard/Trane.
4WCC4036-1000
$4500
188 W. Ironwood Drive
3
1668
ALL
ELEC
4
American
Standard/Trane.
4WCC4048-1000
$4500
198 W. Orchid Lane
3
1284
SWG
3
American
Standard/Trane.
4YCC4036-1000
$4500
206 S. Oak Street
3
1423
ALL
ELEC
3
American
Standard/Trane.
4WCC4036-1000
$4500
2103 N. Bullmoose Dr.
3
1390
ALL
ELEC
3.5
American
Standard/Trane.
4WCC4042-1000
$4500
2200 W. Butler Drive
3
871
ALL
ELEC
2.5
American
Standard/Trane.
4WCC4036-1000
$4500
221 S. 95th Street
3
1053
ALL
ELEC
3
American
Standard/Trane.
4WCC4036-1000
$4500
2226 W. Monroe Street
3
1104
ALL
ELEC
3
American
Standard/Trane.
4WCC4036-1000
$4500
223 S. 132nd Street
(site has 2 heat pumps)
4
1680
ALL
ELEC
2.5/2
American
Standard/Trane.
4WCC4030-1000
$9000
Page 22 of 68
23 S. Hamilton St.
4
1336
ALL
ELEC
4
American
Standard/Trane.
4WCC4048-1000
$4500
3 S. Hamilton St.
2
918
ALL
ELEC
3
American
Standard/Trane.
4WCC4030-1000
$4500
319 W. Nopal Place
3
1024
ALL
ELEC
3
American
Standard/Trane.
4WCC4036-1000
$4500
328 S. Oregon St.
3
1150
ALL
ELEC
3
American
Standard/Trane.
4WCC4030-100
$4500
33 S. Hamilton St.
3
1150
ALL
ELEC
3.5
American
Standard/Trane.
4WCC4042-1000
$4500
338 S. Oregon St.
2
918
ALL
ELEC
3
American
Standard/Trane.
4WCC4036-1000
$4500
354 S. Oregon St.
2
918
ALL
ELEC
3
American
Standard/Trane.
4WCC4036-100
$4500
388 S. Oregon St.
2
918
ALL
ELEC
3
American
Standard/Trane.
4WCC4036-1000
$4500
400 S. Delaware St.
3
1150
ALL
ELEC
3
American
Standard/Trane.
4WCC4036-1000
$4500
401 S. Colorado St.
2
918
ALL
ELEC
3
American
Standard/Trane.
4WCC4036-1000
$4500
401 S. Palm Lane
2
918
ALL
ELEC
3
American
Standard/Trane.
4WCC4036-1000
$4500
Page 23 of 68
402 S. Colorado St.
3
1150
ALL
ELEC
3
American
Standard/Trane.
4WCC4036-1000
$4500
411 S. Palm Lane
2
918
ALL
ELEC
3
American
Standard/Trane.
4WCC4036-1000
$4500
43 S. Hamilton St.
4
1336
ALL
ELEC
3.5
American
Standard/Trane.
4WCC4032-1000
$4500
440 W. Harrison Street
4
1614
SWG
3.5
American
Standard/Trane.
4WCC4042-1000
$4500
454 S. Colorado St.
2
918
ALL
ELEC
3
American
Standard/Trane.
4WCC4042-1000
$4500
455 S. Colorado St.
2
918
ALL
ELEC
2.5
American
Standard/Trane.
4WCC4030-1000
$4500
457 W. Erie Street
3
1079
SWG
2.5
American
Standard/Trane.
4YCC4030-170
$4500
485 W. Toledo Street
3
1677
SWG
4
American
Standard/Trane.
4YCC4030-170
$4500
489 S. Washington St.
4
1336
ALL
ELEC
American
Standard/Trane.
$4500
53 S. Hamilton St.
3
1150
ALL
ELEC
3.5
American
Standard/Trane.
4WCC4042-1000
$4500
538 W. Harrison Street
5
1416
SWG
American
Standard/Trane.
$4500
556 W. Flint Street
3
918
SWG
3
American
Standard/Trane.
4YCC4036.170
$4500
Page 24 of 68
564 W. Ironwood Street
4
2134
SWG
5
American
Standard/Trane.
$4500
635 E. Manor Drive
3
1010
ALL
ELEC
3
American
Standard/Trane.
4WCC4036-1000
$4500
696 N. Evergreen Street
3
1120
SWG
3
American
Standard/Trane.
4WCC036-1000
$4500
701 S. Colorado St.
2
918
ALL
ELEC
3
American
Standard/Trane.
4WCC4036-1000
$4500
721 S. Colorado St.
3
1150
ALL
ELEC
3
American
Standard/Trane.
4WCC4036-1000
$4500
741 S. Colorado St.
4
1336
ALL
ELEC
3.5
American
Standard/Trane.
4WCC4042-1000
$4500
744 W. Knox
3
1474
ALL
ELEC
3.5
American
Standard/Trane.
4WCC4042-1000
$4500
761 S. Colorado St.
3
1150
ALL
ELEC
3
American
Standard/Trane.
4WCC4036-1000
$4500
781 S. Colorado St.
2
918
ALL
ELEC
2.5
American
Standard/Trane.
4WCC4030-1000
$4500
797 W. Monterey Street
4
1088
SWG
3
American
Standard/Trane.
4YCC4048-190
$4500
801 S. Colorado St.
5
1720
ALL
ELEC
5
American
Standard/Trane.
4WCC4060-1000
$4500
Page 25 of 68
840 W. Monterey Street
3
1230
SWG
3
American
Standard/Trane.
4YCC4036-170
$4500
840 W. Shannon Street
4
1626
SWG
4
American
Standard/Trane.
4YCC4048-190
$4500
864 N. California Street
3
1302
SWG
4
American
Standard/Trane.
4YCC4048-190
$4500
869 N. Alma School Road
4
1570
SWG
3
American
Standard/Trane.
4YCC4036-170
$4500
947 W. Park Ave.
3
1360
ALL
ELEC
American
Standard/Trane
$4500
98 W. Oakland
3
1054
SWG
3
American
Standard/Trane.
4YCC4036-170
$4500
Page 26 of 68
EXHIBIT C
WAGE DECISION
"General Decision Number: AZ20210001 01/01/2021
Superseded General Decision Number: AZ20200001
State: Arizona
Construction Type: Residential County:
Maricopa County in Arizona.
RESIDENTIAL CONSTRUCTION PROJECTS (consisting of single family
homes and apartments up to and including 4 stories).
Note: Under Executive Order (EO) 13658, an hourly minimum wage of
$10.95 for calendar year 2021 applies to all contracts subject to the
Davis-Bacon Act for which the contract is awarded (and any solicitation
was issued) on or after January 1, 2015.
If this contract is covered by the EO, the contractor must pay all
workers in any classification listed on this wage determination at least
$10.95 per hour (or the applicable
wage rate listed on this wage determination, if it is higher) for all hours
spent performing on the contract in calendar year 2021.
If
this
contract is covered by the EO and a classification considered
necessary for performance of work on the contract does not appear
on this wage determination, the contractor must pay workers in that
classification at least the wage rate determined through the
conformance process set forth in 29 CFR 5.5(a)(1)(ii) (or the EO
minimum wage rate,
if it is higher than the conformed wage rate).
The
EO
minimum
wage rate will be adjusted annually.
Please note that
this EO applies to the above-mentioned types of contracts
entered into by the federal government that are subject to the
Davis-Bacon Act itself, but it does not apply
to contracts subject only to the Davis-Bacon Related Acts, including
those set forth at 29 CFR 5.1(a)(2)-(60). Additional information on
contractor requirements and worker protections under the EO is
available at www.dol.gov/whd/govcontracts.
Page 27 of 68
Modification Number
Publication
Date
0
01/01/2021
* BRAZ0003-007 07/01/2020
Rates
Fringes
BRICKLAYER.......................$ 25.95
8.49
ZONE PAY:
(Radius miles from the intersection of Central Ave. and
Washington St., Phoenix, AZ)
Zone A: 0-60 miles- Base Rate
Zone B: 61-75 miles- Base Rate plus $2.00 per hour Zone C:
75-100 miles- Base Rate plus $3.00 per hour Zone D: 101-200
miles- Base Rate plus $3.50 per hour Zone E: Over 200 miles-
Base Rate plus $6.50 per hour
----------------------------------------------------------------ENGI0428 6/01/2020
Rates
Fringes
POWER EQUIPMENT OPERATOR (Grader/Blade)...................
$32.39
11.2
---------------------------------------------------------------- IRON0075-008 08/01/2019
Rates Fringes
IRONWORKER, STRUCTURAL...........$ 27.80
19.05
---------------------------------------------------------------- PLAS0394-006 07/01/2019
Rates Fringes
CEMENT MASON/CONCRETE FINISHER...$ 25.08
8.57
----------------------------------------------------------------
SUAZ2011-001 07/28/2011
Rates
Fringes
ALARM INSTALLER, Includes
Wiring and Installation..........$ 13.91
0.00
CARPENTER, Excludes Drywall
Hanging, and Form Work...........$ 18.16
0.00
DRYWALL HANGER...................$ 15.00
0.58
ELECTRICIAN, Excludes
Low Voltage Wiring and
Installation of Alarms. ...................$ 15.45
0.01
FORM WORKER. ............................. $ 14.37
0.00
Page 28 of 68
GLAZIER. ......................................... $ 13.45
0.00
HVAC MECHANIC (Installation
of HVAC Duct).
.........................................................
$
15.36
0.00
LABORER: Common or General. ... $ 10.18
0.00
LABORER: Grade Checker. ............. $ 16.83
0.45
LABORER: Mason Tender - Brick...$ 12.77
0.00
LABORER: Mason Tender -
Cement/Concrete/Stone.
$
11.00
0.00
LABORER: Pipelayer. ...................... $ 13.00
0.00
OPERATOR:
Backhoe. ...................... $
18.29
0.00
OPERATOR:
Excavator. .................... $
24.67
0.00
OPERATOR:
Forklift. ......................... $
16.17
0.00
OPERATOR:
Loader (Front End). ..... $
15.00
0.00
OPERATOR:
Paver
(Asphalt, Aggregate,
and Concrete).
$
20.75
0.00
OPERATOR:
Roller. ........................... $
16.24
1.42
OPERATOR:
Scraper. .......................$
19.20
1.52
OPERATOR:
Tractor. ........................$
22.63
0.00
PAINTER: Brush, Roller and
Spray, Excludes Drywall
Finishing/Taping. ........................... $
12.89
0.00
PLUMBER. ....................................... $ 20.14
4.08
ROOFER. .......................................... $ 13.67
0.00
SPRINKLER FITTER (Fire
Sprinklers).
.........................................................
$
17.73
0.00
Page 29 of 68
TRUCK DRIVER:
Dump Truck. ......... $
17.02
0.00
TRUCK DRIVER:
Water Truck..........$
14.50
0.00
----------------------------------------------------------------
WELDERS - Receive rate prescribed for craft performing
operation to which welding is incidental.
================================================================
Note: Executive Order (EO) 13706, Establishing Paid Sick Leave for
Federal Contractors applies to all contracts subject to the Davis-Bacon
Act for which the contract is awarded (and any solicitation was issued)
on or after January 1, 2017.
If this contract
is covered by the EO, the contractor must provide employees with 1
hour of paid sick leave for every 30 hours they work, up to 56 hours of
paid sick leave each year.
Employees must be permitted to use paid sick leave for their own
illness, injury or other health-related needs, including preventive care;
to assist a family member (or person who is like family to the
employee) who is ill, injured, or has other health-related needs,
including preventive care; or for reasons resulting from, or to assist a
family member (or person who is like family to the employee) who is a
victim of, domestic violence, sexual assault, or stalking.
Additional
information on contractor requirements and worker protections under
the EO is available at www.dol.gov/whd/govcontracts.
Unlisted classifications needed for work not included within the
scope of the classifications listed may be added after award only as
provided in the labor standards contract clauses (29CFR 5.5 (a) (1) (ii)).
----------------------------------------------------------------
The body of each wage determination lists the classification and wage
rates that have been found to be prevailing for the cited type(s) of
construction in the area covered by the wage determination. The
classifications are listed in alphabetical order of ""identifiers"" that
indicate whether the particular rate is a union rate (current union
negotiated rate for local), a survey rate (weighted average rate) or a
union average rate (weighted union average rate).
Union Rate Identifiers
Page 30 of 68
A four letter classification abbreviation identifier enclosed in dotted
lines beginning with characters other than ""SU"" or ""UAVG"" denotes
that the union classification and rate were prevailing for that
classification in the survey. Example: PLUM0198-005 07/01/2014.
PLUM is an abbreviation identifier of the union which prevailed in the
survey for this classification, which in this example would be
Plumbers. 0198 indicates the local union number or district council
number where applicable, i.e., Plumbers Local 0198. The next
number, 005 in the example, is an internal number used in
processing the wage determination. 07/01/2014 is the effective date of
the most current negotiated rate, which in this example is July 1, 2014.
Union prevailing wage rates are updated to reflect all rate changes in
the collective bargaining agreement (CBA) governing this classification
and rate.
Survey Rate Identifiers
Classifications listed under the ""SU"" identifier indicate that no one rate
prevailed for this classification in the survey and the published rate is
derived by computing a weighted average rate based on all the rates
reported in the survey for that classification. As this weighted average
rate includes all rates reported in the survey, it may include both union
and
non-union rates. Example: SULA2012-007 5/13/2014. SU indicates the
rates are survey rates based on a weighted average calculation of
rates and are not majority rates. LA indicates the State of Louisiana.
2012 is the year of survey on which these classifications and rates are
based. The next number, 007 in the example, is an internal number
used in producing the wage determination. 5/13/2014 indicates the
survey completion date for the classifications and rates under that
identifier.
Survey wage rates are not updated and remain in effect until a new
survey is conducted.
Union Average Rate Identifiers
Classification(s) listed under the UAVG identifier indicate that no
single majority rate prevailed for those classifications; however, 100%
of the data reported for the classifications was union data. EXAMPLE:
UAVG-OH-0010 08/29/2014. UAVG indicates that the rate is a
weighted union average rate. OH indicates the state. The next number,
0010 in the example, is an internal number used in producing the
Page 31 of 68
wage determination. 08/29/2014 indicates the survey completion date
for the classifications and rates under that identifier.
A UAVG rate will be updated once a year, usually in January of each
year, to reflect a weighted average of the current negotiated/CBA rate
of the union locals from which the rate is based.
WAGE DETERMINATION APPEALS PROCESS
1.) Has there been an initial decision in the matter? This can be:
* an existing published wage determination
* a survey underlying a wage determination
* a Wage and Hour Division letter setting forth a position on a wage
determination matter a conformance (additional classification and
rate) ruling
On survey related matters, initial contact, including requests for
summaries of surveys, should be with the Wage and Hour Regional
Office for the area in which the survey was conducted because those
Regional Offices have responsibility for the Davis-Bacon survey
program. If the response from this initial contact is not satisfactory,
then the process described in 2.) and 3.) should be followed.
With regard to any other matter not yet ripe for the formal process
described here, initial contact should be with the Branch of
Construction Wage Determinations.
Write to:
Branch of Construction Wage Determinations
Wage and Hour Division
U.S. Department of Labor
200
Constitution
Avenue,
N.W.
Washington, DC 20210
2.) If the answer to the question in 1.) is yes, then an interested party
(those affected by the action) can request review and reconsideration
from the Wage and Hour Administrator (See 29 CFR Part 1.8 and 29 CFR
Part 7). Write to:
Wage and Hour Administrator
U.S. Department of Labor
200
Constitution
Avenue,
N.W.
Washington, DC 20210
Page 32 of 68
The request should be accompanied by a full statement of the
interested party's position and by any information (wage payment
data, project description, area practice material, etc.) that the
requestor considers relevant to the issue.
3.) If the decision of the Administrator is not favorable, an interested
party may appeal directly to the Administrative Review Board
(formerly the Wage Appeals Board).
Write to:
Administrative Review Board
U.S. Department of Labor
200
Constitution
Avenue,
N.W.
Washington, DC 20210
4.) All decisions by the Administrative Review Board are final.
================================================================
END OF GENERAL DECISION
Page 33 of 68
EXHIBIT D TO AGREEMENT
INSURANCE
INSURANCE
General.
A.
At the same time as execution of this Agreement, the Contractor shall furnish the City a
certificate of insurance on a standard insurance industry ACORD form. The ACORD form
must be issued by an insurance company authorized to transact business in the State of
Arizona possessing a current A.M. Best, Inc. rating of A-7, or better and legally authorized to
do business in the State of Arizona with policies and forms satisfactory to City. Provided,
however, the A.M. Best rating requirement shall not be deemed to apply to required
Workers’ Compensation coverage.
B.
The Contractor and any of its subcontractors shall procure and maintain, until all of their
obligations have been discharged, including any warranty periods under this Agreement
are satisfied, the insurances set forth below.
C.
The insurance requirements set forth below are minimum requirements for this
Agreement and in no way limit the indemnity covenants contained in this Agreement.
D.
The City in no way warrants that the minimum insurance limits contained in this
Agreement are sufficient to protect Contractor from liabilities that might arise out of the
performance of the Agreement services under this Agreement by Contractor, its agents,
representatives, employees, subcontractors, and the Contractor is free to purchase any
additional insurance as may be determined necessary.
E.
Failure to demand evidence of full compliance with the insurance requirements in this
Agreement or failure to identify any insurance deficiency will not relieve the Contractor
from, nor will it be considered a waiver of its obligation to maintain the required insurance
at all times during the performance of this Agreement.
F.
Use of Subcontractors: If any work is subcontracted in any way, the Contractor shall
execute a written contract with Subcontractor containing the same Indemnification Clause
and Insurance Requirements as the City requires of the Contractor in this Agreement. The
Contractor is responsible for executing the Agreement with the Subcontractor and
obtaining Certificates of Insurance and verifying the insurance requirements.
Minimum Scope and Limits of Insurance. The Contractor shall provide coverage with limits of liability not
less than those stated below.
A.
Commercial General Liability-Occurrence Form. Contractor must maintain “occurrence” form
Commercial General Liability insurance with a limit of not less than $2,000,000 for each
occurrence, $4,000,000 aggregate. Said insurance must also include coverage for products
Page 34 of 68
and completed operations, independent contractors, personal injury and advertising injury.
If any Excess insurance is utilized to fulfill the requirements of this paragraph, the Excess
insurance must be “follow form” equal or broader in coverage scope than underlying
insurance.
B.
Automobile Liability-Any Auto or Owned, Hired and Non-Owned Vehicles
Vehicle Liability: Contractor must maintain Business/Automobile Liability insurance with a
limit of $1,000,000 each accident on Contractor owned, hired, and non-owned vehicles
assigned to or used in the performance of the Contractor’s work or services under this
Agreement. If any Excess or Umbrella insurance is utilized to fulfill the requirements of this
paragraph, the Excess or Umbrella insurance must be “follow form” equal or broader in
coverage scope than underlying insurance.
C.
Workers Compensation and Employers Liability Insurance: Contractor must maintain Workers
Compensation insurance to cover obligations imposed by federal and state statutes having
jurisdiction of Contractor employees engaged in the performance of work or services
under this Agreement and must also maintain Employers’ Liability insurance of not less
than $1,000,000 for each accident and $1,000,000 disease for each employee.
D.
Builders’ Risk/Installation Floater Insurance. The Contractor bears all responsibility for loss to
all equipment or Work under construction. Unless waived in writing by the City the
Contractor will purchase and maintain in force Builders’ Risk/Installation Floater insurance
on the entire Work until completed and accepted by the City. This insurance will be Special
Causes of Loss policy form, (minimally including perils of fire, flood, lightning, explosion,
windstorm and hail, smoke, aircraft and vehicles, riot and civil commotion, theft, vandalism,
malicious mischief, and collapse), completed value, replacement cost policy form equal to
the contract price and all subsequent modifications. The Contractor’s Builders’
Risk/Installation Floater insurance must be primary and not contributory.
1. Builders’ Risk/Installation Floater insurance must cover the entire Work including
reasonable compensation for architects and Contractors’ services and expenses and
other “soft costs” made necessary by an insured loss. Builders’ Risk/Installation Floater
insurance must provide coverage from the time any covered property comes under the
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 cover the cost of
removing debris, including demolition as may be legally required by operation of any
law, ordinance, regulation or code.
2. The Contractor must also purchase and maintain Boiler and Machinery insurance with
the same requirements as Builders’ Risk/Installation Floater insurance cited 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 or
testing requirements in the performance of this Contract/Agreement. The Contractor
Page 35 of 68
will be responsible for any and all deductibles under these policies and the Contractor
waives all rights of recovery and subrogation against the City under the Contractor’s
Builders’ Risk/Installation Floater insurance described herein.
3. Builders’ Risk/Installation Floater 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.
a. The Builders’ Risk/Installation Floater insurance must be endorsed so that the
insurance will not be canceled or lapse because of any partial use or occupancy by
the City.
b. The Builders Risk/Installation Floater insurance must include as named insureds, the
City, the Contractor, and all tiers of subcontractors and others with an insurable
interest in the Work who will be named as additional insureds unless they are able
to provide the same level of coverage with the City and Contractor named as
additional insureds. Certificates must contain a provision that the insurance will not
be canceled or materially altered without at least 30 days advance notice to the City.
The City must also be named as a Loss Payee under the Builders’ Risk/Installation
Floater coverage.
c. The Builders Risk/Installation Floater insurance must be written using the Special
Causes of Loss policy form, replacement cost basis.
d. All rights of subrogation under the Builders Risk/Installation Floater insurance are,
by this Contract/Agreement, waived against the City, its officers, officials, agents and
employees.
e. The Contractor is responsible for payment of all deductibles under the Builders’
Risk/Installation Floater insurance policy.
Additional Policy Provisions Required.
A.
Self-Insured Retentions or Deductibles. Any self-insured retentions and deductibles must be
declared and approved by the City. If not approved, the City may require that the insurer
reduce or eliminate any deductible or self-insured retentions with respect to the City, its
officers, officials, agents, employees, and volunteers.
1. The Contractor’s insurance must contain broad form contractual liability coverage.
2. The 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 shall be in excess of
the coverage provided by the Contractor and must not contribute to it.
3. The Contractor's insurance must apply separately to each insured against whom claim
is made or suit is brought, except with respect to the limits of the insurer's liability.
4. Coverage provided by the Contractor must not be limited to the liability assumed under
the indemnification provisions of this Agreement.
Page 36 of 68
5. The policies must contain a severability of interest clause and waiver of subrogation
against the City, its officers, officials, agents, and employees, for losses arising from
Work performed by the Contractor for the City.
6. The Contractor, its successors and or assigns, are required to maintain Commercial
General Liability insurance as specified in this Agreement for a minimum period of
three years following completion and acceptance of the Work. The Contractor must
submit a Certificate of Insurance evidencing Commercial General Liability insurance
during this three year period containing all the Agreement insurance requirements,
including naming the City of Chandler, its agents, representatives, officers, directors,
officials and employees as Additional Insured as required.
7. If a Certificate of Insurance is submitted as verification of coverage, the City will
reasonably rely upon the Certificate of Insurance as evidence of coverage but this
acceptance and reliance will not waive or alter in any way the insurance requirements
or obligations of this Agreement.
B.
Insurance Cancellation During Term of Contract/Agreement.
1. If any of the required policies expire during the life of this Contract/Agreement, the
Contractor must forward renewal or replacement Certificates to the City within ten days
after the renewal date containing all the required insurance provisions.
2. Each insurance policy required by the insurance provisions of this Contract/Agreement
shall provide the required coverage and shall not be suspended, voided or canceled
except after 30 days prior written notice has been given to the City, except when
cancellation is for non-payment of premium, then ten days prior notice may be given.
Such notice shall be sent directly to Chandler Law-Risk Management Department, Post
Office Box 4008, Mailstop 628, Chandler, Arizona 85225. If any insurance company
refuses to provide the required notice, the Contractor or its insurance broker shall
notify the City of any cancellation, suspension, non-renewal of any insurance within
seven days of receipt of insurers’ notification to that effect.
C.
City as Additional Insured. The policies are to contain, or be endorsed to contain, the
following provisions:
1. The Commercial General Liability and Automobile Liability policies are to contain, or be
endorsed to contain, the following provisions: The City, its officers, officials, agents, and
employees are additional insureds with respect to liability arising out of activities
performed by, or on behalf of, the Contractor including the City's general supervision of
the Contractor; Products and Completed operations of the Contractor; and automobiles
owned, leased, hired, or borrowed by the Contractor.
Page 37 of 68
2. The City, its officers, officials, agents, and employees must be additional insureds to the
full limits of liability purchased by the Contractor even if those limits of liability are in
excess of those required by this Agreement.
Page 38 of 68
EXHIBIT E TO AGREEMENT
SPECIAL CONDITIONS
ACCESS TO SECURED FACILITIES
Contract Worker Access Controls, Badge and Key Access Requirements. A Contract Worker shall not be
allowed to begin work in any City facility without: (A) The prior completion and the City's acceptance of
the required background screening; and (B) when required, the Contract Worker's receipt of a City issued
badge. A badge will be issued to a Contract Worker solely for access to the City facility(s) to which the
Contract Worker is assigned. Each Contract Worker who enters a City facility must use the badge issued
to the Contract Worker. Any and all fees associated with security badging will be assessed in compliance
with Chandler City Code §4-22.
Key Access Procedures. If the Contract Worker's services require keyed access to enter a City facility(s), a
separate key issue/return form must be completed and submitted by Contractor for each key issued.
Stolen or Lost Badges or Keys. Contractor shall report lost or stolen badges or keys to the City
immediately. A new badge application or key issue form shall be completed and submitted along with
payment of the applicable fees prior to issuance of a new badge or key.
Return of Badges or Keys. All badges and keys are the property of the City and must be returned to the
City within one business day of when the Contract Worker's access to a City facility is no longer required
to furnish the services under this Agreement. Contractor shall collect a Contract Worker's badge and
key(s) upon the termination of the Contract Worker's employment; when the Contract Worker's services
are no longer required at the particular City facility(s); or upon termination, cancellation or expiration of
this Agreement.
Contractor's default under this Section shall include, but is not limited to the following: (1) Contract
Worker gains access to a City facility(s) without the proper badge or key; (2) Contract Worker uses a
badge or key of another to gain access to a City facility; (3) Contract Worker commences services under
this Agreement without the proper badge, key or Background Screening; (4) Contract Worker or
Contractor submits false information or negligently submits wrong information to the City to obtain a
badge, key or applicable Background Screening; or (5) Contractor fails to collect and timely return
Contract Worker's badge or key upon termination of Contract Worker's employment, reassignment of
Contract Worker to another City facility or upon the expiration, cancellation or termination of this
Agreement. Contractor acknowledges and agrees that the access control, badge and key requirements in
this Section are necessary to preserve and protect public health, safety and welfare. Accordingly,
Contractor agrees to properly cure any default under this Section within three business days from the
date notice of default is sent by the City. The parties agree that Contractor's failure to properly cure any
default under this Section shall constitute a breach of this Section. In addition to any other remedy
available to the City at law or in equity, Contractor shall be liable for and shall pay to the City the sum of
$1,000.00 for each breach by Contractor of this Section. The parties further agree that the sum fixed
above is reasonable and approximates the actual or anticipated loss to the City at the time and making of
this Agreement in the event that Contractor breaches this Section. Further, the parties expressly
acknowledge and agree to the fixed sum set forth above because of the difficulty of proving the City's
Page 39 of 68
actual damages in the event that Contractor breaches this Section. The parties further agree that three
breaches by Contractor of this Section arising out of any default within a consecutive period of three
months or three breaches by Contractor of this Section arising out of the same default within a period of
12 consecutive months shall constitute a material breach of this Agreement by Contractor and the City
expressly reserves all of its rights, remedies and interests under this Agreement, at law and in equity
including, but not limited to, termination of this Agreement.
Contractor and Subcontractor Worker Background Screening. Contract Worker Background Screening.
Contractor agrees that all contract workers and subcontractors (collectively Contract Worker(s)) that
Contractor furnishes to the City pursuant to this Agreement shall be subject to background and security
checks and screening (collectively Background Screening) at Contractor's sole cost and expense as set
forth in this Section. The Background Screening provided by Contractor shall comply with all applicable
laws, rules and regulations. Contractor further agrees that the Background Screening required in this
Section is necessary to preserve and protect public health, safety and welfare. The Background Screening
requirements set forth in this Section are the minimum requirements for this Agreement. The City in no
way warrants that these minimum requirements are sufficient to protect Contractor from any liabilities
that may arise out of Contractor's services under this Agreement or Contractor's failure to comply with
this Section. Therefore, in addition to the specific measures set forth below, Contractor and its Contract
Workers shall take such other reasonable, prudent and necessary measures to further preserve and
protect public health, safety and welfare when providing services under this Agreement.
Background Screening Requirements and Criteria. Contractor agrees that it will verify legal Arizona
worker status as required by Arizona Revised Statutes (A.RS.) §41-4401. Contractor further agrees that it
will conduct a background check for real identity/legal name on all Contract Workers prior to proposing
the Contract Worker to the City.
Additional City Rights Regarding Security Inquiries. In addition to the foregoing, the City reserves the right
but not the obligations to: (1) have a Contract Worker be required to provide fingerprints and execute
such other documentation as may be necessary to obtain criminal justice information pursuant to A.RS. §
41-1750(G) (4) or Chandler City Code § 4-22; (2) act on newly acquired information whether or not such
information should have been previously discovered; (3) unilaterally change its standards and criteria
relative to the acceptability of Contract Workers; and (4) object, at any time and for any reason, to a
Contract Worker performing work (including supervision and oversight) under this Contract.
Contractor Certification. By executing this Agreement, Contractor certifies and warrants that Contractor
has read the Background Screening requirements and criteria in this Section, understands them and that
all Background Screening information furnished to the City is accurate and current. Also, by executing
this Agreement, Contractor further certifies and warrants that Contractor has satisfied all such
Background Screening requirements as required. A Contract Worker rejected for work under this
Agreement shall not be proposed to perform work under other City contracts or engagements without
the City's prior written approval.
Terms of This Section Applicable to all of Contractor's Contracts and Subcontracts. Contractor shall
include the terms of this Section for Contract Worker Background Screening in all contracts and
Page 40 of 68
subcontracts for services furnished under this Agreement including, but not limited to, supervision and
oversight services.
Materiality of Background Screening Requirements: Indemnity. The Background Screening requirements
of this Section are material to the City's entry into this Agreement and any breach of this Section by
Contractor shall be deemed a material breach of this Agreement. In addition to the indemnity provisions
set forth in Section 5.5, Indemnification, Contractor shall defend, indemnify and hold harmless the City
for any and all Claims arising out of this Background Screening Section including, but not limited to, the
disqualification of a Contract Worker by Contractor or the City for failure to satisfy this Section.
Continuing Duty: Audit. Contractor's obligations and requirements that Contract Workers satisfy this
Background Screening Section shall continue throughout the entire term of this Agreement. Contractor
shall notify the City immediately of any change to a Background Screening of a Contract Worker
previously approved by the City. Contractor shall maintain all records and documents related to all
Background Screenings and the City reserves the right to audit Contractor's compliance with this Section
pursuant to Section 5.1, Records/Audit.
Page 41 of 68
EXHIBIT F1
PERFORMANCE BOND
STATUTORY PERFORMANCE BOND PURSUANT TO
TITLE 34, CHAPTER 2, ARTICLE 2,
OF THE ARIZONA REVISED STATUTES
(Penalty of this bond must be 100% of the Bond amount)
KNOW ALL MEN BY THESE PRESENTS: That,
(hereinafter called the Principal),
as Principal, and
a corporation organized and existing under the law 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 Chandler, 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 severely, firmly by
these presents.
WHEREAS, the Principal has entered into a certain written Contract with the City of Chandler, Dated the ________
day of
, _______, for HEAT PUMP REPLACEMENT, HO1-031-4309, which Contract is hereby
referred to and made a part hereof as fully and to the same extent as if copies at length herein.
NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the said Principal shall faithfully
perform and fulfill all the undertakings, covenants terms, conditions, and agreements of said contract during the original term
of said Contract and any extensions thereof, with or without notice to the Surety, and during the life of any warranty required
under the contract, and shall also perform and fulfill all the undertakings, covenants, terms, conditions, and agreements of any
and all duly authorized modifications of conditions of said Contract that may hereafter be made, notice of which modifications
to the Surety being hereby waived; then the above obligations shall be void, otherwise to remain in full force and effect.
PROVIDED, HOWEVER that this bond is executed pursuant to the provisions of Title 34, Chapter 2, Article 2 of the
Arizona Revised Statutes, and all liabilities on this bond shall be determined in accordance with the provisions of said Title,
Chapter and Article, to the extent as if it were copied at length herein.
The prevailing party in a suit on this bond shall be entitled to such reasonable attorney's fees as may be fixed by a judge
of the Court.
Witness our hands this ____ day of
, 2021.
PRINCIPAL
SEAL
AGENT OF RECORD
BY
SURETY
SEAL
AGENT ADDRESS
Page 42 of 68
EXHIBIT F2
PAYMENT BOND
ARIZONA STATUTORY PAYMENT BOND
PURSUANT TO TITLES 28, 34, AND 41, OF THE ARIZONA REVISED STATUTES
(Penalty of this Bond must be 100% of the Contract amount)
KNOW ALL MEN BY THESE PRESENTS:
THAT:
(hereinafter “Principal”), as Principal, and
(hereinafter “Surety”), a corporation organized and existing under the laws of the State of
with its principal office in the City of
, holding a certificate of authority to transact
surety business in Arizona issued by the Director of the Department of Insurance pursuant to Title 20, Chapter
2, Article 1, as Surety, are held and firmly bound unto the City of Chandler, (hereinafter “Obligee”) 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 Chandler, dated the
day of
, 20
, for HEAT PUMP REPLACEMENT, HO1-031-4309,
which Contract is hereby referred to and made a part hereof as fully and to the same extent as if copies at
length herein.
NOW, THEREFORE, THE CONDITION OF THIS OBLICATION IS SUCH, that if the Principal promptly
pays all moneys 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 said 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 2,
Article 2 Arizona Revised Statutes, and all liabilities on this bond shall be determined in accordance with the
provisions, conditions and limitations of Title 34, Chapter 2, Article 2, Arizona Revised Statutes, to the same
extent as if it were copied at length in this agreement.
The prevailing party in a suit on this bond shall recover as part of the judgment reasonable attorney
fees that may be fixed by a judge of the court.
Witness our hands this
day of
, 20
.
PRINCIPAL
SEAL
AGENT OF RECORD
BY
SURETY
SEAL
AGENT ADDRESS
General Conditions for Construction
Public Housing Programs
U.S. Department of Housing and Urban
Contracts
Development
-
Office of Public and Indian Housing
OMB Approval No. 2577-0157 (exp. 3/31/2020)
Applicability. This form is applicable to any
construction/development contract greater than $150,000.
This form includes those clauses required by OMB's common rule on grantee procurement, implemented at HUD in 2 CFR 200, and
those requirements set forth in Section 3 of the Housing and Urban Development Act of 1968 and its amendment by the Housing and
Community Development Act of 1992, implemented by HUD at 24 CFR Part 135. The form is required for construction contracts
awarded by Public Housing Agencies (PHAs).
The form is used by Housing Authorities in solicitations to provide necessary contract clauses. If the form were not used, HAs would be
unable to enforce their contracts.
Public reporting burden for this collection of information is estimated to average 1.0 hours per response, including the time for reviewing
instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection
of information. Responses to the collection of information are required to obtain a benefit or to retain a benefit.
The information requested does not lend itself to confidentiality.
HUD may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a currently
valid OMB number.
Table of Contents
Clause
Page
Clause
Page
1.
Definitions
2
Administrative Requirements
Construction Requirements
28.
Contract Modifications
10
Previous editions are obsolete
Replaces form HUD-5370-A
Page 1 of 19
form HUD-5370 (1/2014)
14.
Temporary Buildings and Transportation Materials
6
38.
13
16.
40.
14
18.
Clean Air and Water
7
42.
15
2.
Contractor’s Responsibility for Work
2
25.
Contract Period
9
3.
Architect’s Duties, Responsibilities and Authority
2
26.
Order of Precedence
9
4.
Other Contracts
3
27.
Payments
9
5.
Preconstruction Conference and Notice to Proceed
3
29.
Changes
10
6.
Construction Progress Schedule
3
30.
Suspension of Work
11
7.
Site Investigation and Conditions Affecting the Work
3
31.
Disputes
11
8.
Differing Site Conditions
4
32.
Default
11
9.
Specifications and Drawings for Construction
4
33.
Liquidated
12
10.
As-Built Drawings
5
34.
Termination of Convenience
12
11.
Material and Workmanship
5
35.
Assignment of Contract
12
12.
Permits and Codes
5
36.
Insurance
12
13.
Health, Safety, and Accident Prevention
6
37.
Subcontracts
13
Subcontracting with Small and Minority Firms, Women’s
Business Enterprise, and Labor Surplus Area Firms
15.
Availability and Use of Utility Services
6
39.
Equal Employment Opportunity
13
Protection of Existing Vegetation, Structures,
Equipment, Utilities, and Improvements
6
Employment, Training, and Contracting Opportunities
for Low-Income Persons, Section 3 of the Housing and
Urban Development Act of 1968
17.
Temporary Buildings and Transportation Materials
7
41.
Interest of Members of Congress
15
Interest of Members, Officers, or Employees and
Former Members, Officers, or Employees
19.
Energy Efficiency
7
43.
Limitations on Payments Made to Influence
15
20.
Inspection and Acceptance of Construction
7
44.
Royalties and Patents
15
21.
Use and Possession Prior to
8
45.
Examination and Retention of Contractor’s Records
15
22.
Warranty of Title
8
46.
Labor Standards-Davis-Bacon and Related Acts
15
23.
Warranty of
8
47.
Non-Federal Prevailing Wage Rates
19
24.
Prohibition Against
9
48.
Procurement of Recovered
19
Page 43 of 68
1. Definitions
(a) The Contractor shall furnish all necessary labor,
(a) “Architect” means the person or other entity engaged by
the PHA to perform architectural, engineering, design,
and other services related to the work as provided for in
the contract. When a PHA uses an engineer to act in this
capacity, the terms “architect” and “engineer” shall be
synonymous. The Architect shall serve as a technical
representative of the Contracting Officer. The Architect’s
materials, tools, equipment, and transportation necessary
for performance of the work. The Contractor shall also
furnish all necessary water, heat, light, and power not
made available to the Contractor by the PHA pursuant to
the clause entitled Availability and Use of Utility Services
herein.
(b) The Contractor shall perform on the site, and with its own
authority is as set forth elsewhere in this contract.
organization, work equivalent to at least [
] (12 percent
unless otherwise indicated) of the total amount of work to
be performed under the order. This percentage may be
reduced by a supplemental agreement to this order if,
during performing the work, the Contractor requests a
reduction and the Contracting Officer determines that the
(b) “Contract” means the contract entered into between the
PHA and the Contractor. It includes the forms of Bid, the
Bid Bond, the Performance and Payment Bond or Bonds
or other assurance of completion, the Certifications,
Representations, and Other Statements of Bidders (form
HUD-5370), these General Conditions of the Contract for
Construction (form HUD-5370), the applicable wage rate
determinations from the U.S. Department of Labor, any
special conditions included elsewhere in the contract, the
specifications, and drawings. It includes all formal
changes to any of those documents by addendum,
reduction would be to the advantage of the PHA.
(c) At all times during performance of this contract and until
the work is completed and accepted, the Contractor shall
directly superintend the work or assign and have on the
work site a competent superintendent who is satisfactory
to the Contracting Officer and has authority to act for the
Contractor.
change order, or other modification.
(d) The Contractor shall be responsible for all damages to
(c) “Contracting Officer” means the person delegated the au-
persons or property that occur as a result of the
Contractor’s fault or negligence, and shall take proper
thority by the PHA to enter into, administer, and/or
terminate this contract and designated as such in writing
to the Contractor. The term includes any successor
safety and health precautions to protect the work, the
workers, the public, and the property of others. The
Contractor shall hold and save the PHA, its officers and
agents, free and harmless from liability of any nature
occasioned by the Contractor’s performance. The
Contractor shall also be responsible for all materials
delivered and work performed until completion and
acceptance of the entire work, except for any completed
unit of work which may have been accepted under the
Contracting Officer and any duly authorized
representative of the Contracting Officer also designated
in writing. The Contracting Officer shall be deemed the
authorized agent of the PHA in all dealings with the
Contractor.
(d) “Contractor” means the person or other entity entering
into the contract with the PHA to perform all of the work
required under the contract.
contract.
(e) “Drawings” means the drawings enumerated in the
(e) The Contractor shall lay out the work from base lines and
schedule of drawings contained in the Specifications and
as described in the contract clause entitled Specifications
bench marks indicated on the drawings and be
responsible for all lines, levels, and measurements of all
work executed under the contract. The Contractor shall
verify the figures before laying out the work and will be
held responsible for any error resulting from its failure to
and Drawings for Construction herein.
(f) “HUD” means the United States of America acting through
the Department of Housing and Urban Development
including the Secretary, or any other person designated to
act on its behalf. HUD has agreed, subject to the
provisions of an Annual Contributions Contract (ACC), to
provide financial assistance to the PHA, which includes
assistance in financing the work to be performed under
this contract. As defined elsewhere in these General
Conditions or the contract documents, the determination
of HUD may be required to authorize changes in the work
or for release of funds to the PHA for payment to the
Contractor. Notwithstanding HUD’s role, nothing in this
contract shall be construed to create any contractual
do so.
(f) The Contractor shall confine all operations (including
storage of materials) on PHA premises to areas
authorized or approved by the Contracting Officer.
(g) The Contractor shall at all times keep the work area,
relationship between the Contractor and HUD.
including storage areas, free from accumulations of
waste materials. After completing the work and before
final inspection, the Contractor shall (1) remove from the
premises all scaffolding, equipment, tools, and materials
(including rejected materials) that are not the property of
the PHA and all rubbish caused by its work; (2) leave the
work area in a clean, neat, and orderly condition
satisfactory to the Contracting Officer; (3) perform all
specified tests; and, (4) deliver the installation in
(g) “Project” means the entire project, whether construction
or rehabilitation, the work for which is provided for in
whole or in part under this contract.
complete and operating condition.
(h) “PHA” means the Public Housing Agency organized
under applicable state laws which is a party to this
(h) The Contractor’s responsibility will terminate when all
contract.
work has been completed, the final inspection made, and
the work accepted by the Contracting Officer. The
Contractor will then be released from further obligation
except as required by the warranties specified elsewhere
in the contract.
(j) “Specifications” means the written description of the
technical requirements for construction and includes the
criteria and tests for determining whether the
requirements are met.
(l) “Work” means materials, workmanship, and manufacture
and fabrication of components.
3. Architect’s Duties, Responsibilities, and Authority
2. Contractor’s Responsibility for Work
(a) The Architect for this contract, and any successor, shall
be designated in writing by the Contracting Officer.
Previous editions are obsolete
Replaces form HUD-5370-A
Page 2 of 19
form HUD-5370 (1/2014)
Page 44 of 68
(b) The Architect shall serve as the Contracting Officer’s
technical representative with respect to architectural,
engineering, and design matters related to the work
performed under the contract. The Architect may provide
direction on contract performance. Such direction shall be
within the scope of the contract and may not be of a
nature which: (1) institutes additional work outside the
scope of the contract; (2) constitutes a change as defined
in the Changes clause herein; (3) causes an increase or
decrease in the cost of the contract; (4) alters the
Construction Progress Schedule; or (5) changes any of
the other express terms or conditions of the contract.
6. Construction Progress Schedule
(a) The Contractor shall, within five days after the work
(c) The Architect’s duties and responsibilities may include but
commences on the contract or another period of time
determined by the Contracting Officer, prepare and
submit to the Contracting Officer for approval three copies
of a practicable schedule showing the order in which the
Contractor proposes to perform the work, and the dates
on which the Contractor contemplates starting and
completing the several salient features of the work
(including acquiring labor, materials, and equipment). The
schedule shall be in the form of a progress chart of
suitable scale to indicate appropriately the percentage of
work scheduled for completion by any given date during
the period. If the Contractor fails to submit a schedule
within the time prescribed, the Contracting Officer may
withhold approval of progress payments or take other
remedies under the contract until the Contractor submits
shall not be limited to:
(1) Making periodic visits to the work site, and on the
basis of his/her on-site inspections, issuing written
reports to the PHA which shall include all observed
deficiencies. The Architect shall file a copy of the
report with the Contractor’s designated representative
at the site;
the required schedule.
(2) Making modifications in drawings and technical
(b) The Contractor shall enter the actual progress on the
chart as required by the Contracting Officer, and
immediately deliver three copies of the annotated
schedule to the Contracting Officer. If the Contracting
Officer determines, upon the basis of inspection
conducted pursuant to the clause entitled Inspection and
Acceptance of Construction, herein that the Contractor is
not meeting the approved schedule, the Contractor shall
take steps necessary to improve its progress, including
those that may be required by the Contracting Officer,
without additional cost to the PHA. In this circumstance,
the Contracting Officer may require the Contractor to
increase the number of shifts, overtime operations, days
of work, and/or the amount of construction plant, and to
submit for approval any supplementary schedule or
schedules in chart form as the Contracting Officer deems
necessary to demonstrate how the approved rate of
specifications and assisting the Contracting Officer in
the preparation of change orders and other contract
modifications for issuance by the Contracting Officer;
(3) Reviewing and making recommendations with respect
to - (i) the Contractor’s construction progress
schedules; (ii) the Contractor’s shop and detailed
drawings; (iii) the machinery, mechanical and other
equipment and materials or other articles proposed
for use by the Contractor; and, (iv) the Contractor’s
price breakdown and progress payment estimates;
and,
(4) Assisting in inspections, signing Certificates of
Completion, and making recommendations with
respect to acceptance of work completed under the
contract.
4. Other Contracts
progress will be regained.
The PHA may undertake or award other contracts for
additional work at or near the site of the work under this
contract. The Contractor shall fully cooperate with the
other contractors and with PHA employees and shall
carefully adapt scheduling and performing the work under
this contract to accommodate the additional work, heeding
any direction that may be provided by the Contracting
Officer. The Contractor shall not commit or permit any act
that will interfere with the performance of work by any
other contractor or by PHA employees
(c) Failure of the Contractor to comply with the requirements
of the Contracting Officer under this clause shall be
grounds for a determination by the Contracting Officer that
the Contractor is not prosecuting the work with sufficient
diligence to ensure completion within the time
specified in the Contract. Upon making this
determination, the Contracting Officer may terminate the
Contractor’s right to proceed with the work, or any
separable part of it, in accordance with the Default clause
of this contract.
7. Site Investigation and Conditions Affecting the Work
Construction Requirements
5. Pre-construction Conference and Notice to Proceed
(a) The Contractor acknowledges that it has taken steps
reasonably necessary to ascertain the nature and location
of the work, and that it has investigated and satisfied itself
as to the general and local conditions which can affect the
work or its cost, including but not limited to, (1) conditions
bearing upon transportation, disposal, handling, and
storage of materials; (2) the availability of labor, water,
electric power, and roads;(3) uncertainties of weather,
river stages, tides, or similar physical conditions at the
site; (4) the conformation and conditions of the ground;
and (5) the character of equipment and facilities needed
preliminary to and during work performance. The
Contractor also acknowledges that it has satisfied itself as
to the character, quality, and quantity of surface and
subsurface materials or obstacles to be encountered
insofar as this information is
(a) Within ten calendar days of contract execution, and prior
to the commencement of work, the Contractor shall
attend a preconstruction conference with representatives
of the PHA, its Architect, and other interested parties
convened by the PHA. The conference will serve to
acquaint the participants with the general plan of the
construction operation and all other requirements of the
contract. The PHA will provide the Contractor with the
date, time, and place of the conference.
(b) The contractor shall begin work upon receipt of a written
Notice to Proceed from the Contracting Officer or
designee. The Contractor shall not begin work prior to
receiving such notice.
Previous editions are obsolete
Replaces form HUD-5370-A
Page 3 of 19
form HUD-5370 (1/2014)
Page 45 of 68
reasonably ascertainable from an inspection of the site,
including all exploratory work done by the PHA, as well
as from the drawings and specifications made a part of
this contract. Any failure of the Contractor to take the
actions described and acknowledged in this paragraph
will not relieve the Contractor from responsibility for
estimating properly the difficulty and cost of successfully
performing the work, or for proceeding to successfully
promptly submitted to the Contracting Officer, who shall
promptly make a determination in writing. Any adjustment
by the Contractor without such a determination shall be at
its own risk and expense. The Contracting Officer shall
furnish from time to time such detailed drawings and other
information as considered necessary, unless
otherwise provided.
perform the work without additional expense to the PHA.
(b) Wherever in the specifications or upon the drawings the
words “directed”, “required”, “ordered”, “designated”,
“prescribed”, or words of like import are used, it shall be
(b) The PHA assumes no responsibility for any conclusions
or interpretations made by the Contractor based on the
information made available by the PHA. Nor does the
PHA assume responsibility for any understanding
reached or representation made concerning conditions
which can affect the work by any of its officers or agents
before the execution of this contract, unless that
understanding or representation is expressly stated in
this contract.
understood that the “direction”, “requirement”, “order”,
“designation”, or “prescription”, of the Contracting Officer
is intended and similarly the words “approved”,
“acceptable”, “satisfactory”, or words of like import shall
mean “approved by”, or “acceptable to”, or “satisfactory
to” the Contracting Officer, unless otherwise expressly
stated.
(c) Where “as shown” “as indicated”, “as detailed”, or
8. Differing Site Conditions
of similar import are used, it shall be understood that the
reference is made to the drawings accompanying this
contract unless stated otherwise. The word “provided” as
used herein shall be understood to mean “provide
complete in place” that is “furnished and installed”.
(a) The Contractor shall promptly, and before the conditions
are disturbed, give a written notice to the Contracting
Officer of (1) subsurface or latent physical conditions at
the site which differ materially from those indicated in this
contract, or (2) unknown physical conditions at the
site(s), of an unusual nature, which differ materially from
those ordinarily encountered and generally recognized as
inhering in work of the character provided for in the
(d) “Shop drawings” means drawings, submitted to the PHA
contract.
by the Contractor, subcontractor, or any lower tier
subcontractor, showing in detail (1) the proposed
fabrication and assembly of structural elements and (2)
the installation (i.e., form, fit, and attachment details) of
materials of equipment. It includes drawings, diagrams,
layouts, schematics, descriptive literature, illustrations,
schedules, performance and test data, and similar
materials furnished by the Contractor to explain in detail
specific portions of the work required by the contract. The
PHA may duplicate, use, and disclose in any manner and
for any purpose shop drawings delivered under this
(b) The Contracting Officer shall investigate the site
conditions promptly after receiving the notice. Work shall
not proceed at the affected site, except at the
Contractor’s risk, until the Contracting Officer has
provided written instructions to the Contractor. If the
conditions do materially so differ and cause an increase
or decrease in the Contractor’s cost of, or the time
required for, performing any part of the work under this
contract, whether or not changed as a result of the
conditions, the Contractor shall file a claim in writing to
the PHA within ten days after receipt of such instructions
and, in any event, before proceeding with the work. An
equitable adjustment in the contract price, the delivery
schedule, or both shall be made under this clause and
contract.
(e) If this contract requires shop drawings, the Contractor
the contract modified in writing accordingly.
shall coordinate all such drawings, and review them for
accuracy, completeness, and compliance with other
contract requirements and shall indicate its approval
thereon as evidence of such coordination and review.
Shop drawings submitted to the Contracting Officer
without evidence of the Contractor’s approval may be
returned for resubmission. The Contracting Officer will
indicate an approval or disapproval of the shop drawings
and if not approved as submitted shall indicate the PHA’s
reasons therefore. Any work done before such approval
shall be at the Contractor’s risk. Approval by the
Contracting Officer shall not relieve the Contractor from
responsibility for any errors or omissions in such
drawings, nor from responsibility for complying with the
requirements of this contract, except with respect to
variations described and approved in accordance with (f)
(c) No request by the Contractor for an equitable adjustment
to the contract under this clause shall be allowed, unless
the Contractor has given the written notice required;
provided, that the time prescribed in (a) above for giving
written notice may be extended by the Contracting
Officer.
(d) No request by the Contractor for an equitable adjustment
to the contract for differing site conditions shall be
allowed if made after final payment under this contract.
below.
9. Specifications and Drawings for Construction
(f) If shop drawings show variations from the contract
requirements, the Contractor shall describe such
variations in writing, separate from the drawings, at the
time of submission. If the Architect approves any such
variation and the Contracting Officer concurs, the
(a) The Contractor shall keep on the work site a copy of the
drawings and specifications and shall at all times give the
Contracting Officer access thereto. Anything mentioned
in the specifications and not shown on the drawings, or
shown on the drawings and not mentioned in the
specifications, shall be of like effect as if shown or
mentioned in both. In case of difference between
drawings and specifications, the specifications shall
govern. In case of discrepancy in the figures, in the
drawings, or in the specifications, the matter shall be
Contracting Officer shall issue an appropriate
modification to the contract, except that, if the variation is
minor or does not involve a change in price or in time of
performance, a modification need not be issued.
(g) It shall be the responsibility of the Contractor to make
timely requests of the PHA for such large scale and full
size drawings, color schemes, and other additional
information, not already in his possession, which shall be
Previous editions are obsolete
Replaces form HUD-5370-A
Page 4 of 19
form HUD-5370 (1/2014)
Page 46 of 68
required in the planning and production of the work. Such
requests may be submitted as the need arises, but each
such request shall be filed in ample time to permit
appropriate action to be taken by all parties involved so
machinery and mechanical and other equipment.
When required by this contract or by the Contracting
Officer, the Contractor shall also obtain the
Contracting Officer’s approval of the material or
articles which the Contractor contemplates
incorporating into the work. When requesting
approval, the Contractor shall provide full information
concerning the material or articles. Machinery,
equipment, material, and articles that do not have the
required approval shall be installed or used at the risk
as to avoid delay.
(h) The Contractor shall submit to the Contracting Officer for
approval four copies (unless otherwise indicated) of all
shop drawings as called for under the various headings
of these specifications. Three sets (unless otherwise
indicated) of all shop drawings, will be retained by the
PHA and one set will be returned to the Contractor. As
required by the Contracting Officer, the Contractor, upon
completing the work under this contract, shall furnish a
complete set of all shop drawings as finally approved.
These drawings shall show all changes and revisions
of subsequent rejection.
(2) When required by the specifications or the
Contracting Officer, the Contractor shall submit
appropriately marked samples (and certificates
related to them) for approval at the Contractor’s
made up to the time the work is completed and accepted.
expense, with all shipping charges prepaid. The
Contractor shall label, or otherwise properly mark on
the container, the material or product represented, its
place of origin, the name of the producer, the
Contractor’s name, and the identification of the
construction project for which the material or product
(i) This clause shall be included in all subcontracts at any tier.
It shall be the responsibility of the Contractor to ensure
that all shop drawings prepared by subcontractors are
submitted to the Contracting Officer.
10. As-Built Drawings
is intended to be used.
(a) “As-built drawings,” as used in this clause, means
(3) Certificates shall be submitted in triplicate, describing
each sample submitted for approval and certifying
that the material, equipment or accessory complies
with contract requirements. The certificates shall
include the name and brand of the product, name of
manufacturer, and the location where produced.
drawings submitted by the Contractor or subcontractor at
any tier to show the construction of a particular structure
or work as actually completed under the contract. “As-built
drawings” shall be synonymous with “Record
drawings.”
(4) Approval of a sample shall not constitute a waiver of
(b) As required by the Contracting Officer, the Contractor
the PHA right to demand full compliance with contract
requirements. Materials, equipment and accessories
may be rejected for cause even though samples have
shall provide the Contracting Officer accurate information
to be used in the preparation of permanent as-built
drawings. For this purpose, the Contractor shall record on
one set of contract drawings all changes from the
installations originally indicated, and record final locations
of underground lines by depth from finish grade and by
accurate horizontal offset distances to permanent surface
improvements such as buildings, curbs, or edges of
been approved.
walks.
(5) Wherever materials are required to comply with
recognized standards or specifications, such
specifications shall be accepted as establishing the
technical qualities and testing methods, but shall not
govern the number of tests required to be made nor
modify other contract requirements. The Contracting
Officer may require laboratory test reports on items
submitted for approval or may approve materials on
the basis of data submitted in certificates with
samples. Check tests will be made on materials
delivered for use only as frequently as the Contracting
Officer determines necessary to insure compliance of
materials with the specifications. The Contractor will
assume all costs of retesting materials which fail to
meet contract requirements and/or testing materials
offered in substitution for those found deficient.
(c) This clause shall be included in all subcontracts at any
tier. It shall be the responsibility of the Contractor to
ensure that all as-built drawings prepared by
subcontractors are submitted to the Contracting Officer.
11. Material and Workmanship
(a) All equipment, material, and articles furnished under this
contract shall be new and of the most suitable grade for
the purpose intended, unless otherwise specifically
provided in this contract. References in the contract to
equipment, material, articles, or patented processes by
trade name, make, or catalog number, shall be regarded
as establishing a standard of quality and shall not be
construed as limiting competition. The Contractor may, at
its option, use any equipment, material, article, or
process that, in the judgment of, and as approved by the
Contracting Officer, is equal to that named in the
specifications, unless otherwise specifically provided in
(6) After approval, samples will be kept in the Project
office until completion of work. They may be built into
the work after a substantial quantity of the materials
they represent has been built in and accepted.
(c) Requirements concerning lead-based paint. The
Contractor shall comply with the requirements concerning
lead-based paint contained in the Lead-Based Paint
Poisoning Prevention Act (42 U.S.C. 4821-4846) as
implemented by 24 CFR Part 35.
this contract.
(b) Approval of equipment and materials.
12. Permits and Codes
(1) The Contractor shall obtain the Contracting Officer’s
approval of the machinery and mechanical and other
equipment to be incorporated into the work. When
requesting approval, the Contractor shall furnish to the
Contracting Officer the name of the manufacturer, the
model number, and other information concerning the
performance, capacity, nature, and rating of the
(a) The Contractor shall give all notices and comply with all
applicable laws, ordinances, codes, rules and regulations.
Notwithstanding the requirement of the Contractor to
comply with the drawings and specifications in the
contract, all work installed shall comply with all applicable
codes and regulations as amended by any
Previous editions are obsolete
Replaces form HUD-5370-A
Page 5 of 19
form HUD-5370 (1/2014)
Page 47 of 68
waivers. Before installing the work, the Contractor shall
examine the drawings and the specifications for
compliance with applicable codes and regulations
bearing on the work and shall immediately report any
discrepancy it may discover to the Contracting Officer.
14. Temporary Heating
Where the requirements of the drawings and
The Contractor shall provide and pay for temporary
heating, covering, and enclosures necessary to properly
protect all work and materials against damage by
dampness and cold, to dry out the work, and to facilitate
the completion of the work. Any permanent heating
equipment used shall be turned over to the PHA in the
condition and at the time required by the specifications.
specifications fail to comply with the applicable code or
regulation, the Contracting Officer shall modify the
contract by change order pursuant to the clause entitled
Changes herein to conform to the code or regulation.
(b) The Contractor shall secure and pay for all permits, fees,
and licenses necessary for the proper execution and
completion of the work. Where the PHA can arrange for
the issuance of all or part of these permits, fees and
licenses, without cost to the Contractor, the contract
amount shall be reduced accordingly.
15. Availability and Use of Utility Services
(a) The PHA shall make all reasonably required amounts of
13. Health, Safety, and Accident Prevention
utilities available to the Contractor from existing outlets
and supplies, as specified in the contract. Unless
otherwise provided in the contract, the amount of each
utility service consumed shall be charged to or paid for by
the Contractor at prevailing rates charged to the PHA or,
where the utility is produced by the PHA, at reasonable
rates determined by the Contracting Officer. The
Contractor shall carefully conserve any utilities furnished
(a) In performing this contract, the Contractor shall:
(1) Ensure that no laborer or mechanic shall be required
to work in surroundings or under working conditions
which are unsanitary, hazardous, or dangerous to
his/her health and/or safety as determined under
construction safety and health standards promulgated
without charge.
(b) The Contractor, at its expense and in a manner
by the Secretary of Labor by regulation;
satisfactory to the Contracting Officer, shall install and
maintain all necessary temporary connections and
distribution lines, and all meters required to measure the
amount of each utility used for the purpose of
determining charges. Before final acceptance of the work
by the PHA, the Contractor shall remove all the
temporary connections, distribution lines, meters, and
associated paraphernalia.
(2) Protect the lives, health, and safety of other persons;
(3) Prevent damage to property, materials, supplies, and
equipment; and,
(4) Avoid work interruptions.
(b) For these purposes, the Contractor shall:
(1) Comply with regulations and standards issued by the
Secretary of Labor at 29 CFR Part 1926. Failure to
comply may result in imposition of sanctions pursuant
to the Contract Work Hours and Safety Standards Act
(Public Law 91-54, 83 Stat. 96), 40 U.S.C. 3701 et
16. Protection of Existing Vegetation, Structures,
Equipment, Utilities, and Improvements
seq.; and
(a) The Contractor shall preserve and protect all structures,
(2) Include the terms of this clause in every subcontract
equipment, and vegetation (such as trees, shrubs, and
grass) on or adjacent to the work site, which are not to be
removed under this contract, and which do not
unreasonably interfere with the work required under this
so that such terms will be binding on each
subcontractor.
(c) The Contractor shall maintain an accurate record of
exposure data on all accidents incident to work performed
under this contract resulting in death, traumatic injury,
occupational disease, or damage to property, materials,
supplies, or equipment, and shall report this data in the
manner prescribed by 29 CFR Part
contract.
(b) The Contractor shall only remove trees when specifically
1904.
authorized to do so, and shall avoid damaging vegetation
that will remain in place. If any limbs or branches of trees
are broken during performance of this contract, or by the
careless operation of equipment, or by workmen, the
Contractor shall trim those limbs or branches with a clean
cut and paint the cut with a tree-pruning compound as
(d) The Contracting Officer shall notify the Contractor of any
noncompliance with these requirements and of the
corrective action required. This notice, when delivered to
the Contractor or the Contractor’s representative at the
site of the work, shall be deemed sufficient notice of the
noncompliance and corrective action required. After
receiving the notice, the Contractor shall immediately
take corrective action. If the Contractor fails or refuses to
take corrective action promptly, the Contracting Officer
may issue an order stopping all or part of the work until
satisfactory corrective action has been taken. The
Contractor shall not base any claim or request for
equitable adjustment for additional time or money on any
directed by the Contracting Officer.
(c) The Contractor shall protect from damage all existing
improvements and utilities (1) at or near the work site and
(2) on adjacent property of a third party, the locations of
which are made known to or should be known by the
Contractor. Prior to disturbing the ground at the
construction site, the Contractor shall ensure that all
underground utility lines are clearly marked.
(d) The Contractor shall shore up, brace, underpin, secure,
stop order issued under these circumstances.
and protect as necessary all foundations and other parts
of existing structures adjacent to, adjoining, and in the
vicinity of the site, which may be affected by the
excavations or other operations connected with the
(e) The Contractor shall be responsible for its subcontractors’
compliance with the provisions of this clause. The
Contractor shall take such action with respect to any
subcontract as the PHA, the Secretary of Housing and
Urban Development, or the Secretary of Labor shall
direct as a means of enforcing such provisions.
construction of the project.
(e) Any equipment temporarily removed as a result of work
under this contract shall be protected, cleaned, and
replaced in the same condition as at the time of award of
this contract.
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Replaces form HUD-5370-A
Page 6 of 19
form HUD-5370 (1/2014)
Page 48 of 68
(f) New work which connects to existing work shall
The contactor shall comply with the Clean Air Act, as
amended, 42 USC 7401 et seq., the Federal Water
Pollution Control Water Act, as amended, 33 U.S.C. 1251
et seq., and standards issued pursuant thereto in the
facilities in which this contract is to be performed.
correspond in all respects with that to which it connects
and/or be similar to existing work unless otherwise
required by the specifications.
(g) No structural members shall be altered or in any way
weakened without the written authorization of the
Contracting Officer, unless such work is clearly specified
19. Energy Efficiency
in the plans or specifications.
(h) If the removal of the existing work exposes discolored or
unfinished surfaces, or work out of alignment, such
surfaces shall be refinished, or the material replaced as
necessary to make the continuous work uniform and
harmonious. This, however, shall not be construed to
require the refinishing or reconstruction of dissimilar
finishes previously exposed, or finished surfaces in good
condition, but in different planes or on different levels
when brought together by the removal of intervening
work, unless such refinishing or reconstruction is
The Contractor shall comply with mandatory standards
and policies relating to energy efficiency which are
contained in the energy conservation plan issued in
compliance with the Energy Policy and Conservation Act
(Pub.L. 94-163) for the State in which the work under the
contract is performed.
20. Inspection and Acceptance of Construction
(a) Definitions. As used in this clause -
specified in the plans or specifications.
(1) “Acceptance” means the act of an authorized
representative of the PHA by which the PHA approves
and assumes ownership of the work performed under this
contract. Acceptance may be partial or complete.
(2) “Inspection” means examining and testing the work
(i) The Contractor shall give all required notices to any
adjoining or adjacent property owner or other party before
the commencement of any work.
(j) The Contractor shall indemnify and save harmless the
PHA from any damages on account of settlement or the
loss of lateral support of adjoining property, any damages
from changes in topography affecting drainage, and from
all loss or expense and all damages for which the PHA
may become liable in consequence of such injury or
damage to adjoining and adjacent structures and their
performed under the contract (including, when
appropriate, raw materials, equipment, components, and
intermediate assemblies) to determine whether it
conforms to contract requirements.
premises.
(3) “Testing” means that element of inspection that
determines the properties or elements, including
functional operation of materials, equipment, or their
components, by the application of established scientific
(k) The Contractor shall repair any damage to vegetation,
structures, equipment, utilities, or improvements,
including those that are the property of a third party,
resulting from failure to comply with the requirements of
this contract or failure to exercise reasonable care in
performing the work. If the Contractor fails or refuses to
repair the damage promptly, the Contracting Officer may
have the necessary work performed and charge the cost
to the Contractor.
principles and procedures.
(b) The Contractor shall maintain an adequate inspection
system and perform such inspections as will ensure that
the work performed under the contract conforms to
contract requirements. All work is subject to PHA
inspection and test at all places and at all reasonable
times before acceptance to ensure strict compliance with
the terms of the contract.
(c) PHA inspections and tests are for the sole benefit of the
17. Temporary Buildings and Transportation of Materials
PHA and do not: (1) relieve the Contractor of
responsibility for providing adequate quality control
measures; (2) relieve the Contractor of responsibility for
loss or damage of the material before acceptance; (3)
constitute or imply acceptance; or, (4) affect the
continuing rights of the PHA after acceptance of the
(a) Temporary buildings (e.g., storage sheds, shops, offices,
sanitary facilities) and utilities may be erected by the
Contractor only with the approval of the Contracting
Officer and shall be built with labor and materials
furnished by the Contractor without expense to the PHA.
The temporary buildings and utilities shall remain the
property of the Contractor and shall be removed by the
Contractor at its expense upon completion of the work.
With the written consent of the Contracting Officer, the
buildings and utilities may be abandoned and need not
completed work under paragraph (j) below.
(d) The presence or absence of the PHA inspector does not
relieve the Contractor from any contract requirement, nor
is the inspector authorized to change any term or
condition of the specifications without the Contracting
Officer’s written authorization. All instructions and
be removed.
approvals with respect to the work shall be given to the
(b) The Contractor shall, as directed by the Contracting
Contractor by the Contracting Officer.
Officer, use only established roadways, or use temporary
roadways constructed by the Contractor when and as
authorized by the Contracting Officer. When materials are
transported in prosecuting the work, vehicles shall not be
loaded beyond the loading capacity recommended by the
manufacturer of the vehicle or prescribed by any federal,
state, or local law or regulation. When it is necessary to
cross curbs or sidewalks, the Contractor shall protect them
from damage. The Contractor shall repair or pay for the
repair of any damaged curbs, sidewalks, or roads.
(e) The Contractor shall promptly furnish, without additional
charge, all facilities, labor, and material reasonably
needed for performing such safe and convenient
inspections and tests as may be required by the
Contracting Officer. The PHA may charge to the
Contractor any additional cost of inspection or test when
work is not ready at the time specified by the Contractor
for inspection or test, or when prior rejection makes
reinspection or retest necessary. The PHA shall perform
all inspections and tests in a manner that will not
unnecessarily delay the work. Special, full size, and
performance tests shall be performed as described in the
contract.
18. Clean Air and Water
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Replaces form HUD-5370-A
Page 7 of 19
form HUD-5370 (1/2014)
Page 49 of 68
(f) The PHA may conduct routine inspections of the
occupied without proper remuneration therefore. If prior
possession or use by the PHA delays the progress of the
work or causes additional expense to the Contractor, an
equitable adjustment shall be made in the contract price
or the time of completion, and the contract shall be
modified in writing accordingly.
construction site on a daily basis.
(g) The Contractor shall, without charge, replace or correct
work found by the PHA not to conform to contract
requirements, unless the PHA decides that it is in its
interest to accept the work with an appropriate
adjustment in contract price. The Contractor shall
promptly segregate and remove rejected material from
22. Warranty of Title
the premises.
(h) If the Contractor does not promptly replace or correct
The Contractor warrants good title to all materials,
supplies, and equipment incorporated in the work and
agrees to deliver the premises together with all
improvements thereon free from any claims, liens or
charges, and agrees further that neither it nor any other
person, firm or corporation shall have any right to a lien
upon the premises or anything appurtenant thereto.
rejected work, the PHA may (1) by contract or otherwise,
replace or correct the work and charge the cost to the
Contractor, or (2) terminate for default the Contractor’s
right to proceed.
(i) If any work requiring inspection is covered up without ap-
proval of the PHA, it must, if requested by the Contracting
Officer, be uncovered at the expense of the Contractor. If
at any time before final acceptance of the entire work, the
PHA considers it necessary or advisable, to examine
work already completed by removing or tearing it out, the
Contractor, shall on request, promptly furnish all
necessary facilities, labor, and material. If such work is
found to be defective or nonconforming in any material
respect due to the fault of the Contractor or its
subcontractors, the Contractor shall defray all the
expenses of the examination and of satisfactory
reconstruction. If, however, such work is found to meet
the requirements of the contract, the Contracting Officer
shall make an equitable adjustment to cover the cost of
the examination and reconstruction, including, if
completion of the work was thereby delayed, an
23. Warranty of Construction
(a) In addition to any other warranties in this contract, the
Contractor warrants, except as provided in paragraph (j)
of this clause, that work performed under this contract
conforms to the contract requirements and is free of any
defect in equipment, material, or workmanship performed
by the Contractor or any subcontractor or supplier at any
tier. This warranty shall continue for a period of
(one year unless otherwise indicated) from the date of final
acceptance of the work. If the PHA takes possession of
any part of the work before final acceptance, this warranty
shall continue for a period of (one year unless otherwise
indicated) from the date that the PHA takes
extension of time.
possession.
(j) The Contractor shall notify the Contracting Officer, in
(b) The Contractor shall remedy, at the Contractor’s
writing, as to the date when in its opinion all or a
designated portion of the work will be substantially
completed and ready for inspection. If the Architect
determines that the state of preparedness is as
represented, the PHA will promptly arrange for the
inspection. Unless otherwise specified in the contract, the
PHA shall accept, as soon as practicable after completion
and inspection, all work required by the contract or that
portion of the work the Contracting Officer determines and
designates can be accepted separately. Acceptance shall
be final and conclusive except for latent defects, fraud,
gross mistakes amounting to fraud, or the PHA’s right
under any warranty or guarantee.
expense, any failure to conform, or any defect. In
addition, the Contractor shall remedy, at the Contractor’s
expense, any damage to PHA-owned or controlled real or
personal property when the damage is the result of—
(1) The Contractor’s failure to conform to contract require-
ments; or
(2) Any defects of equipment, material, workmanship or
design furnished by the Contractor.
(c) The Contractor shall restore any work damaged in
fulfilling the terms and conditions of this clause. The
Contractor’s warranty with respect to work repaired or
replaced will run for (one year unless otherwise indicated)
from the date of repair or replacement.
(d) The Contracting Officer shall notify the Contractor, in
21. Use and Possession Prior to Completion
writing, within a reasonable time after the discovery of
any failure, defect or damage.
(a) The PHA shall have the right to take possession of or use
any completed or partially completed part of the work.
Before taking possession of or using any work, the
Contracting Officer shall furnish the Contractor a list of
items of work remaining to be performed or corrected on
those portions of the work that the PHA intends to take
possession of or use. However, failure of the Contracting
Officer to list any item of work shall not relieve the
Contractor of responsibility for complying with the terms of
the contract. The PHA’s possession or use shall not be
(e) If the Contractor fails to remedy any failure, defect, or
damage within a reasonable time after receipt of notice,
the PHA shall have the right to replace, repair or
otherwise remedy the failure, defect, or damage at the
Contractor’s expense.
(f) With respect to all warranties, express or implied, from
subcontractors, manufacturers, or suppliers for work
performed and materials furnished under this contract,
the Contractor shall:
(1) Obtain all warranties that would be given in normal
deemed an acceptance of any work under the contract.
commercial practice;
(b) While the PHA has such possession or use, the
(2) Require all warranties to be executed in writing, for the
Contractor shall be relieved of the responsibility for (1) the
loss of or damage to the work resulting from the PHA’s
possession or use, notwithstanding the terms of the
clause entitled Permits and Codes herein; (2) all
maintenance costs on the areas occupied; and, (3)
furnishing heat, light, power, and water used in the areas
benefit of the PHA; and,
(3) Enforce all warranties for the benefit of the PHA.
(g) In the event the Contractor’s warranty under paragraph
(a) of this clause has expired, the PHA may bring suit at
its own expense to enforce a subcontractor’s,
manufacturer’s or supplier’s warranty.
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Replaces form HUD-5370-A
Page 8 of 19
form HUD-5370 (1/2014)
Page 50 of 68
(h) Unless a defect is caused by the negligence of the
basis for determining progress payments. The breakdown
shall be approved by the Contracting Officer and must be
acceptable to HUD. If the contract covers more than one
Contractor or subcontractor or supplier at any tier, the
Contractor shall not be liable for the repair of any defect of
material or design furnished by the PHA nor for the repair
of any damage that results from any defect in PHA
project, the Contractor shall furnish a separate
furnished material or design.
breakdown for each. The values and quantities employed
in making up this breakdown are for determining the
amount of progress payments and shall not be construed
as a basis for additions to or deductions from the contract
price. The Contractor shall prorate its overhead and profit
(i) Notwithstanding any provisions herein to the contrary, the
establishment of the time periods in paragraphs (a) and
(c) above relate only to the specific obligation of the
Contractor to correct the work, and have no relationship
to the time within which its obligation to comply with the
contract may be sought to be enforced, nor to the time
within which proceedings may be commenced to
establish the Contractor’s liability with respect to its
obligation other than specifically to correct the work.
over the construction period of the contract.
(d) The Contractor shall submit, on forms provided by the
PHA, periodic estimates showing the value of the work
performed during each period based upon the approved
submitted not later than
days in advance of
(j) This warranty shall not limit the PHA’s rights under the
the date set for payment and are subject to correction and
revision as required. The estimates must be approved by
the Contracting Officer with the concurrence of the
Architect prior to payment. If the contract covers more
than one project, the Contractor shall furnish a
Inspection and Acceptance of Construction clause of this
contract with respect to latent defects, gross mistakes or
fraud.
24. Prohibition Against Liens
separate progress payment estimate for each.
The Contractor is prohibited from placing a lien on the
PHA’s property. This prohibition shall apply to all
subcontractors at any tier and all materials suppliers.
(e) Along with each request for progress payments and the
required estimates, the Contractor shall furnish the
following certification, or payment shall not be made: I
hereby certify, to the best of my knowledge and belief,
that:
Administrative Requirements
(1) The amounts requested are only for performance in
accordance with the specifications, terms, and
25. Contract Period
conditions of the contract;
(2) Payments to subcontractors and suppliers have been
made from previous payments received under the
contract, and timely payments will be made from the
proceeds of the payment covered by this certification,
in accordance with subcontract agreements; and,
this contract within
calendar days of the
effective date of the contract, or within the time schedule
established in the notice to proceed issued by the
Contracting Officer.
(3) This request for progress payments does not include
26. Order of Provisions
any amounts which the prime contractor intends to
withhold or retain from a subcontractor or supplier in
accordance with the terms and conditions of the
subcontract.
In the event of a conflict between these General
Conditions and the Specifications, the General
Conditions shall prevail. In the event of a conflict between
the contract and any applicable state or local law or
regulation, the state or local law or regulation shall
prevail; provided that such state or local law or regulation
does not conflict with, or is less restrictive than applicable
federal law, regulation, or Executive Order. In the event of
such a conflict, applicable federal law, regulation, and
Executive Order shall prevail.
Name:
Title:
Date:
27. Payments
(f) Except as otherwise provided in State law, the PHA shall
(a) The PHA shall pay the Contractor the price as provided in
retain ten (10) percent of the amount of progress
payments until completion and acceptance of all work
under the contract; except, that if upon completion of 50
percent of the work, the Contracting Officer, after
consulting with the Architect, determines that the
Contractor’s performance and progress are satisfactory,
this contract.
(b) The PHA shall make progress payments approximately
every 30 days as the work proceeds, on estimates of
work accomplished which meets the standards of quality
established under the contract, as approved by the
Contracting Officer. The PHA may, subject to written
determination and approval of the Contracting Officer,
make more frequent payments to contractors which are
the PHA may make the remaining payments in full for the
work subsequently completed. If the Contracting Officer
subsequently determines that the Contractor’s
performance and progress are unsatisfactory, the PHA
shall reinstate the ten (10) percent (or other percentage
as provided in State law) retainage until such time as the
Contracting Officer determines that performance and
qualified small businesses.
(c) Before the first progress payment under this contract, the
Contractor shall furnish, in such detail as requested by
the Contracting Officer, a breakdown of the total contract
price showing the amount included therein for each
principal category of the work, which shall substantiate
the payment amount requested in order to provide a
progress are satisfactory.
(g) The Contracting Officer may authorize material delivered
on the site and preparatory work done to be taken into
consideration when computing progress payments.
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Replaces form HUD-5370-A
Page 9 of 19
form HUD-5370 (1/2014)
Page 51 of 68
Material delivered to the Contractor at locations other than
the site may also be taken into consideration if the
Contractor furnishes satisfactory evidence that (1) it has
acquired title to such material; (2) the material is properly
stored in a bonded warehouse, storage yard, or similar
suitable place as may be approved by the Contracting
Officer; (3) the material is insured to cover its full value;
and (4) the material will be used to perform this contract.
Before any progress payment which includes delivered
material is made, the Contractor shall furnish such
documentation as the Contracting Officer may require to
assure the protection of the PHA’s interest in such
materials. The Contractor shall remain responsible for
such stored material notwithstanding the transfer of title
responsibilities of the parties (e.g., change in the PHA
address). All other contract modifications shall be in the
form of supplemental agreements signed by the
Contractor and the Contracting Officer.
(c) When a proposed modification requires the approval of
HUD prior to its issuance (e.g., a change order that
exceeds the PHA’s approved threshold), such
modification shall not be effective until the required
approval is received by the PHA.
29. Changes
(a) The Contracting Officer may, at any time, without notice
to the PHA.
to the sureties, by written order designated or indicated
to be a change order, make changes in the work within
the general scope of the contract including changes:
(1) In the specifications (including drawings and designs);
(2) In the method or manner of performance of the work;
(h) All material and work covered by progress payments
made shall, at the time of payment become the sole
property of the PHA, but this shall not be construed as (1)
relieving the Contractor from the sole responsibility for all
material and work upon which payments have been made
or the restoration of any damaged work; or, (2) waiving the
right of the PHA to require the fulfillment of all of the terms
of the contract. In the event the work of the Contractor has
been damaged by other contractors or persons other than
employees of the PHA in the course of their employment,
the Contractor shall restore such damaged work without
cost to the PHA and to seek redress for its damage only
from those who directly
(3) PHA-furnished facilities, equipment, materials,
services, or site; or,
(4) Directing the acceleration in the performance of the
caused it.
work.
(b) Any other written order or oral order (which, as used in
this paragraph (b), includes direction, instruction,
interpretation, or determination) from the Contracting
Officer that causes a change shall be treated as a
change order under this clause; provided, that the
Contractor gives the Contracting Officer written notice
stating (1) the date, circumstances and source of the
order and (2) that the Contractor regards the order as a
(i) The PHA shall make the final payment due the Contractor
under this contract after (1) completion and final
acceptance of all work; and (2) presentation of release of
all claims against the PHA arising by virtue of this contract,
other than claims, in stated amounts, that the Contractor
has specifically excepted from the operation of the release.
Each such exception shall embrace no more than one
claim, the basis and scope of which shall be clearly
defined. The amounts for such excepted claims shall not
be included in the request for final payment. A release may
also be required of the assignee if the Contractor’s claim to
amounts payable under this contract
change order.
(c) Except as provided in this clause, no order, statement or
conduct of the Contracting Officer shall be treated as a
change under this clause or entitle the Contractor to an
equitable adjustment.
(d) If any change under this clause causes an increase or
has been assigned.
decrease in the Contractor’s cost of, or the time required
for the performance of any part of the work under this
contract, whether or not changed by any such order, the
Contracting Officer shall make an equitable adjustment
and modify the contract in writing. However, except for a
adjustment based on defective specifications, no proposal
for any change under paragraph (b) above shall be
allowed for any costs incurred more than 20 days (5 days
for oral orders) before the Contractor gives written notice
as required. In the case of defective specifications for
which the PHA is responsible, the equitable adjustment
shall include any increased cost reasonably incurred by
the Contractor in attempting to comply with
(j) Prior to making any payment, the Contracting Officer may
require the Contractor to furnish receipts or other
evidence of payment from all persons performing work
and supplying material to the Contractor, if the
Contracting Officer determines such evidence is
necessary to substantiate claimed costs.
(k) The PHA shall not; (1) determine or adjust any claims for
payment or disputes arising there under between the
Contractor and its subcontractors or material suppliers;
or, (2) withhold any moneys for the protection of the
subcontractors or material suppliers. The failure or
refusal of the PHA to withhold moneys from the
Contractor shall in nowise impair the obligations of any
surety or sureties under any bonds furnished under this
contract.
the defective specifications.
(e) The Contractor must assert its right to an adjustment
28. Contract Modifications
under this clause within 30 days after (1) receipt of a
written change order under paragraph (a) of this clause,
or (2) the furnishing of a written notice under paragraph
(b) of this clause, by submitting a written statement
describing the general nature and the amount of the
proposal. If the facts justify it, the Contracting Officer may
extend the period for submission. The proposal may be
included in the notice required under paragraph (b)
above. No proposal by the Contractor for an equitable
adjustment shall be allowed if asserted after final
(a) Only the Contracting Officer has authority to modify any
term or condition of this contract. Any contract
payment under this contract.
modification shall be authorized in writing.
(f) The Contractor’s written proposal for equitable
adjustment shall be submitted in the form of a lump sum
proposal supported with an itemized breakdown of all
increases and decreases in the contract in at least the
following details:
(b) The Contracting Officer may modify the contract
unilaterally (1) pursuant to a specific authorization stated
in a contract clause (e.g., Changes); or (2) for
administrative matters which do not change the rights or
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Replaces form HUD-5370-A
Page 10 of 19
form HUD-5370 (1/2014)
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(1) Direct Costs. Materials (list individual items, the
been so suspended, delayed, or interrupted by any other
cause, including the fault or negligence of the Contractor
or for which any equitable adjustment is provided for or
excluded under any other provision of this contract.
quantity and unit cost of each, and the aggregate
cost); Transportation and delivery costs associated
with materials; Labor breakdowns by hours or unit
costs (identified with specific work to be performed);
Construction equipment exclusively necessary for the
change; Costs of preparation and/ or revision to shop
drawings resulting from the change; Worker’s
Compensation and Public Liability Insurance;
Employment taxes under FICA and FUTA; and, Bond
Costs when size of change warrants revision.
(2) Indirect Costs. Indirect costs may include overhead,
general and administrative expenses, and fringe
benefits not normally treated as direct costs.
(3) Profit. The amount of profit shall be negotiated and
may vary according to the nature, extent, and
complexity of the work required by the change. The
allowability of the direct and indirect costs shall be
determined in accordance with the Contract Cost
Principles and Procedures for Commercial Firms in Part
31 of the Federal Acquisition Regulation (48 CFR 1-31),
as implemented by HUD Handbook 2210.18, in effect on
the date of this contract. The Contractor shall not be
(c) A claim under this clause shall not be allowed (1) for any
costs incurred more than 20 days before the Contractor
shall have notified the Contracting Officer in writing of
the act or failure to act involved (but this requirement
shall not apply as to a claim resulting from a suspension
order); and, (2) unless the claim, in an amount stated, is
asserted in writing as soon as practicable after the
termination of the suspension, delay, or interruption, but
not later than the date of final payment under the
contract.
31. Disputes
allowed a profit on the profit received by any
(a) “Claim,” as used in this clause, means a written demand
or written assertion by one of the contracting parties
seeking, as a matter of right, the payment of money in a
sum certain, the adjustment or interpretation of contract
terms, or other relief arising under or relating to the
contract. A claim arising under the contract, unlike a
claim relating to the contract, is a claim that can be
resolved under a contract clause that provides for the
relief sought by the claimant. A voucher, invoice, or other
routine request for payment that is not in dispute when
submitted is not a claim. The submission may be
converted to a claim by complying with the requirements
of this clause, if it is disputed either as to liability or
amount or is not acted upon in a reasonable time.
subcontractor. Equitable adjustments for deleted work
shall include a credit for profit and may include a credit for
indirect costs. On proposals covering both increases and
decreases in the amount of the contract, the application of
indirect costs and profit shall be on the net-change in
direct costs for the Contractor or subcontractor
performing the work.
(g) The Contractor shall include in the proposal its request
for time extension (if any), and shall include sufficient
information and dates to demonstrate whether and to
what extent the change will delay the completion of the
(b) Except for disputes arising under the clauses entitled
contract in its entirety.
Labor Standards - Davis Bacon and Related Acts, herein,
all disputes arising under or relating to this contract,
including any claims for damages for the alleged breach
thereof which are not disposed of by agreement, shall be
(h) The Contracting Officer shall act on proposals within 30
days after their receipt, or notify the Contractor of the
resolved under this clause.
(c) All claims by the Contractor shall be made in writing and
date when such action will be taken.
submitted to the Contracting Officer for a written decision.
A claim by the PHA against the Contractor shall be
subject to a written decision by the Contracting Officer.
(d) The Contracting Officer shall, within 60 (unless otherwise
indicated) days after receipt of the request, decide the
claim or notify the Contractor of the date by which the
(i) Failure to reach an agreement on any proposal shall be a
dispute under the clause entitled Disputes herein.
Nothing in this clause, however, shall excuse the
Contractor from proceeding with the contract as changed.
(j) Except in an emergency endangering life or property, no
change shall be made by the Contractor without a prior
order from the Contracting Officer.
decision will be made.
(e) The Contracting Officer’s decision shall be final unless
30. Suspension of Work
the Contractor (1) appeals in writing to a higher level in
the PHA in accordance with the PHA’s policy and
procedures, (2) refers the appeal to an independent
mediator or arbitrator, or (3) files suit in a court of
competent jurisdiction. Such appeal must be made within
(30 unless otherwise indicated) days after receipt of the
(a) The Contracting Officer may order the Contractor in
writing to suspend, delay, or interrupt all or any part of the
work of this contract for the period of time that the
Contracting Officer determines appropriate for the
Contracting Officer’s decision.
convenience of the PHA.
(f) The Contractor shall proceed diligently with performance
(b) If the performance of all or any part of the work is, for an
unreasonable period of time, suspended, delayed, or
interrupted (1) by an act of the Contracting Officer in the
administration of this contract, or (2) by the Contracting
Officer’s failure to act within the time specified (or within a
reasonable time if not specified) in this contract an
adjustment shall be made for any increase in the cost of
performance of the contract (excluding profit) necessarily
caused by such unreasonable suspension, delay, or
interruption and the contract modified in writing
accordingly. However, no adjustment shall be made
under this clause for any suspension, delay, or
interruption to the extent that performance would have
of this contract, pending final resolution of any request for
relief, claim, appeal, or action arising under or relating to
the contract, and comply with any decision of the
Contracting Officer.
32. Default
(a) If the Contractor refuses or fails to prosecute the work, or
any separable part thereof, with the diligence that will
insure its completion within the time specified in this
contract, or any extension thereof, or fails to complete
said work within this time, the Contracting Officer may, by
written notice to the Contractor, terminate the right to
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Replaces form HUD-5370-A
Page 11 of 19
form HUD-5370 (1/2014)
Page 53 of 68
proceed with the work (or separable part of the work) that
has been delayed. In this event, the PHA may take over
the work and complete it, by contract or otherwise, and
may take possession of and use any materials,
equipment, and plant on the work site necessary for
completing the work. The Contractor and its sureties shall
be liable for any damage to the PHA resulting from the
Contractor’s refusal or failure to complete the work within
completion of the work together with any increased costs
occasioned the PHA in completing the work.
(c) If the PHA does not terminate the Contractor’s right to
proceed, the resulting damage will consist of liquidated
damages until the work is completed or accepted.
34. Termination for Convenience
the specified time, whether or not the Contractor’s right to
proceed with the work is terminated. This liability includes
any increased costs incurred by the PHA in completing
(a) The Contracting Officer may terminate this contract in
whole, or in part, whenever the Contracting Officer
determines that such termination is in the best interest of
the PHA. Any such termination shall be effected by
delivery to the Contractor of a Notice of Termination
specifying the extent to which the performance of the
work under the contract is terminated, and the date upon
the work.
(b) The Contractor’s right to proceed shall not be terminated
or the Contractor charged with damages under this
clause if—
(1) The delay in completing the work arises from
which such termination becomes effective.
unforeseeable causes beyond the control and without
the fault or negligence of the Contractor. Examples of
such causes include (i) acts of God, or of the public
enemy, (ii) acts of the PHA or other governmental
entity in either its sovereign or contractual capacity,
(iii) acts of another contractor in the performance of a
contract with the PHA, (iv) fires, (v) floods, (vi)
epidemics, (vii) quarantine restrictions, (viii) strikes,
(ix) freight embargoes, (x) unusually severe weather,
or (xi) delays of subcontractors or suppliers at any tier
arising from unforeseeable causes beyond the control
and without the fault or negligence of both the
Contractor and the subcontractors or suppliers; and
(2) The Contractor, within days (10 days unless otherwise
indicated) from the beginning of such delay (unless
extended by the Contracting Officer) notifies the
Contracting Officer in writing of the causes of delay.
The Contracting Officer shall ascertain the facts and
the extent of the delay. If, in the judgment of the
Contracting Officer, the findings of fact warrant such
action, time for completing the work shall be extended
by written modification to the contract. The findings of
the Contracting Officer shall be reduced to a written
decision which shall be subject to the provisions of
(b) If the performance of the work is terminated, either in
whole or in part, the PHA shall be liable to the Contractor
for reasonable and proper costs resulting from such
termination upon the receipt by the PHA of a properly
presented claim setting out in detail: (1) the total cost of
the work performed to date of termination less the total
amount of contract payments made to the Contractor; (2)
the cost (including reasonable profit) of settling and
paying claims under subcontracts and material orders for
work performed and materials and supplies delivered to
the site, payment for which has not been made by the
PHA to the Contractor or by the Contractor to the
subcontractor or supplier; (3) the cost of preserving and
protecting the work already performed until the PHA or
assignee takes possession thereof or assumes
responsibility therefore; (4) the actual or estimated cost of
legal and accounting services reasonably necessary to
prepare and present the termination claim to the PHA;
and (5) an amount constituting a reasonable profit on the
value of the work performed by the Contractor.
(c) The Contracting Officer will act on the Contractor’s claim
within days (60 days unless otherwise indicated) of
receipt of the Contractor’s claim.
(d) Any disputes with regard to this clause are expressly
the Disputes clause of this contract.
made subject to the provisions of the Disputes clause of
this contract.
(c) If, after termination of the Contractor’s right to proceed, it
is determined that the Contractor was not in default, or
that the delay was excusable, the rights and obligations
of the parties will be the same as if the termination had
been for convenience of the PHA.
35. Assignment of Contract
33. Liquidated Damages
The Contractor shall not assign or transfer any interest in
this contract; except that claims for monies due or to
become due from the PHA under the contract may be
assigned to a bank, trust company, or other financial
institution. Such assignments of claims shall only be
made with the written concurrence of the Contracting
Officer. If the Contractor is a partnership, this contract
shall inure to the benefit of the surviving or remaining
member(s) of such partnership as approved by the
Contracting Officer.
(a) If the Contractor fails to complete the work within the time
specified in the contract, or any extension, as specified in
the clause entitled Default of this contract, the Contractor
shall pay to the PHA as liquidated damages, the sum of
Contracting Officer insert amount] for
$
each day of delay. If different completion dates are
specified in the contract for separate parts or stages of the
work, the amount of liquidated damages shall be
assessed on those parts or stages which are delayed. To
the extent that the Contractor’s delay or nonperformance
is excused under another clause in this contract,
liquidated damages shall not be due the PHA. The
Contractor remains liable for damages caused other than
36. Insurance
(a) Before commencing work, the Contractor and each
subcontractor shall furnish the PHA with certificates of
insurance showing the following insurance is in force and
will insure all operations under the Contract:
by delay.
(1) Workers’ Compensation, in accordance with state or
(b) If the PHA terminates the Contractor’s right to proceed,
Territorial Workers’ Compensation laws.
the resulting damage will consist of liquidated damages
until such reasonable time as may be required for final
(2) Commercial General Liability with a combined single
than $
limit for bodily injury and property damage of not less
[Contracting Officer insert amount]
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Replaces form HUD-5370-A
Page 12 of 19
form HUD-5370 (1/2014)
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per occurrence to protect the Contractor and each
subcontractor against claims for bodily injury or death
and damage to the property of others. This shall cover
the use of all equipment, hoists, and vehicles
(2) “Subcontractor” means any supplier, vendor, or firm
that furnishes supplies, materials, equipment, or
services to or for the Contractor or another
subcontractor.
on the site(s) not covered by Automobile Liability
(b) The Contractor shall not enter into any subcontract with
any subcontractor who has been temporarily denied
participation in a HUD program or who has been
suspended or debarred from participating in contracting
under (3) below. If the Contractor has a "claims made”
policy, then the following additional requirements
apply: the policy must provide a “retroactive date”
which must be on or before the
programs by any agency of the United States
execution date of the Contract; and the extended
reporting period may not be less than five years
Government or of the state in which the work under this
contract is to be performed.
following the completion date of the Contract.
(c) The Contractor shall be as fully responsible for the acts or
omissions of its subcontractors, and of persons either
directly or indirectly employed by them as for the acts or
omissions of persons directly employed by the
(3) Automobile Liability on owned and non -owned motor
vehicles used on the site(s) or in connection therewith
for a combined single limit for bodily injury and
property damage of not less than $
Contractor.
[Contracting Officer insert amount] per occurrence.
(d) The Contractor shall insert appropriate clauses in all
(b) Before commencing work, the Contractor shall furnish the
subcontracts to bind subcontractors to the terms and
conditions of this contract insofar as they are applicable
PHA with a certificate of insurance evidencing that
Builder’s Risk (fire and extended coverage) Insurance on
all work in place and/or materials stored at the building
site(s), including foundations and building equipment, is
in force. The Builder’s Risk Insurance shall be for the
benefit of the Contractor and the PHA as their interests
may appear and each shall be named in the policy or
policies as an insured. The Contractor in installing
equipment supplied by the PHA shall carry insurance on
such equipment from the time the Contractor takes
possession thereof until the Contract work is accepted by
the PHA. The Builder’s Risk Insurance need not be
carried on excavations, piers, footings, or foundations
until such time as work on the superstructure is started. It
need not be carried on landscape work. Policies shall
furnish coverage at all times for the full cash value of all
completed construction, as well as materials in place
and/or stored at the site(s), whether or not partial
payment has been made by the PHA. The Contractor
may terminate this insurance on buildings as of the date
taken over for occupancy by the PHA. The Contractor is
not required to carry Builder’s Risk Insurance for
modernization work which does not involve structural
alterations or additions and where the PHA’s existing fire
and extended coverage policy can be endorsed to
to the work of subcontractors.
(e) Nothing contained in this contract shall create any
contractual relationship between any subcontractor and
the PHA or between the subcontractor and HUD.
38. Subcontracting with Small and Minority Firms,
Women’s Business Enterprise, and Labor Surplus
Area Firms
The Contractor shall take the following steps to ensure
that, whenever possible, subcontracts are awarded to
small business firms, minority firms, women’s business
enterprises, and labor surplus area firms:
(a) Placing qualified small and minority businesses and
women’s business enterprises on solicitation lists;
(b) Ensuring that small and minority businesses and
women’s business enterprises are solicited whenever
they are potential sources;
(c) Dividing total requirements, when economically feasible,
into smaller tasks or quantities to permit maximum
participation by small and minority businesses and
women’s business enterprises;
(d) Establishing delivery schedules, where the requirements
include such work.
of the contract permit, which encourage participation by
small and minority businesses and women’s business
(c) All insurance shall be carried with companies which are
enterprises; and
financially responsible and admitted to do business in the
State in which the project is located. If any such
insurance is due to expire during the construction period,
the Contractor (including subcontractors, as applicable)
shall not permit the coverage to lapse and shall furnish
evidence of coverage to the Contracting Officer. All
certificates of insurance, as evidence of coverage, shall
provide that no coverage may be canceled or non-
renewed by the insurance company until at least 30 days
prior written notice has been given to the Contracting
Officer.
(e) Using the services and assistance of the U.S. Small
Business Administration, the Minority Business
Development Agency of the U.S. Department of
Commerce, and State and local governmental small
business agencies.
39. Equal Employment Opportunity
During the performance of this contract, the Contractor
agrees as follows:
(a) The Contractor shall not discriminate against any
employee or applicant for employment because of race,
37. Subcontracts
color, religion, sex, national origin, or handicap.
(b) The Contractor shall take affirmative action to ensure that
(a) Definitions. As used in this contract -
applicants are employed, and that employees are treated
during employment without regard to their race, color,
religion, sex, national origin, or handicap. Such action
shall include, but not be limited to, (1) employment, (2)
upgrading, (3) demotion, (4) transfer, (5) recruitment or
recruitment advertising, (6) layoff or termination, (7) rates
of pay or other forms of compensation, and (8) selection
for training, including apprenticeship.
(1) “Subcontract” means any contract, purchase order, or
other purchase agreement, including modifications
and change orders to the foregoing, entered into by a
subcontractor to furnish supplies, materials,
equipment, and services for the performance of the
prime contract or a subcontract.
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Replaces form HUD-5370-A
Page 13 of 19
form HUD-5370 (1/2014)
Page 55 of 68
(c) The Contractor shall post in conspicuous places available
(a) The work to be performed under this contract is subject to
the requirements of section 3 of the Housing and Urban
Development Act of 1968, as amended, 12 U.S.C. 1701u
(section 3). The purpose of section 3 is to ensure that
employment and other economic opportunities generated
by HUD assistance or HUD-assisted projects covered by
section 3, shall, to the greatest extent feasible, be directed
to low- and very low-income persons, particularly persons
who are recipients of HUD assistance for
to employees and applicants for employment the notices
to be provided by the Contracting Officer that explain this
clause.
(d) The Contractor shall, 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, national origin, or handicap.
(e) The Contractor shall send, to each labor union or
housing.
representative of workers with which it has a collective
bargaining agreement or other contract or understanding,
the notice to be provided by the Contracting Officer
advising the labor union or workers’ representative of the
Contractor’s commitments under this clause, and post
copies of the notice in conspicuous places available to
(b) The parties to this contract agree to comply with HUD's
regulations in 24 CFR Part 135, which implement section
3. As evidenced by their execution of this contract, the
parties to this contract certify that they are under no
contractual or other impediment that would prevent them
from complying with the Part 135 regulations.
employees and applicants for employment.
(c) The contractor agrees to send to each labor organization
or representative of workers with which the contractor has
a collective bargaining agreement or other understanding,
if any, a notice advising the labor organization or workers'
representative of the contractor's commitments under this
section 3 clause, and will post copies of the notice in
conspicuous places at the work site where both
employees and applicants for training and employment
positions can see the notice. The notice shall describe the
section 3 preference, shall set forth minimum number and
job titles subject to hire, availability of apprenticeship and
training positions, the qualifications for each; and the
name and location of the person(s) taking applications for
each of the positions; and the
(f) The Contractor shall comply with Executive Order 11246,
as amended, and the rules, regulations, and orders of the
Secretary of Labor.
(g) The Contractor shall furnish all information and reports
required by Executive Order 11246, as amended, Section
503 of the Rehabilitation Act of 1973, as amended, and
by rules, regulations, and orders of the Secretary of
Labor, or pursuant thereto. The Contractor shall permit
access to its books, records, and accounts by the
Secretary of Labor for purposes of investigation to
ascertain compliance with such rules, regulations, and
orders.
(h) In the event of a determination that the Contractor is not
in compliance with this clause or any rule, regulation, or
order of the Secretary of Labor, this contract may be
canceled, terminated, or suspended in whole or in part,
and the Contractor may be declared ineligible for further
Government contracts, or Federally assisted construction
contracts under the procedures authorized in Executive
Order 11246, as amended. In addition, sanctions may be
imposed and remedies invoked against the Contractor as
provided in Executive Order 11246, as amended, the
rules, regulations, and orders of the Secretary of Labor,
anticipated date the work shall begin.
(d) The contractor agrees to include this section 3 clause in
every subcontract subject to compliance with regulations
in 24 CFR Part 135, and agrees to take appropriate
action, as provided in an applicable provision of the
subcontract or in this section 3 clause, upon a finding that
the subcontractor is in violation of the regulations in 24
CFR Part 135. The contractor will not subcontract with
any subcontractor where the contractor has notice or
knowledge that the subcontractor has been found in
or as otherwise provided by law.
violation of the regulations in 24 CFR Part 135.
(i) The Contractor shall include the terms and conditions of
(e) The contractor will certify that any vacant employment
this clause in every subcontract or purchase order unless
exempted by the rules, regulations, or orders of the
Secretary of Labor issued under Executive Order 11246,
as amended, so that these terms and conditions will be
binding upon each subcontractor or vendor. The
Contractor shall take such action with respect to any
subcontract or purchase order as the Secretary of
Housing and Urban Development or the Secretary of
Labor may direct as a means of enforcing such
provisions, including sanctions for noncompliance;
provided that if the Contractor becomes involved in, or is
threatened with, litigation with a subcontractor or vendor
as a result of such direction, the Contractor may request
the United States to enter into the litigation to protect the
positions, including training positions, that are filled (1)
after the contractor is selected but before the contract is
executed, and (2) with persons other than those to whom
the regulations of 24 CFR Part 135 require employment
opportunities to be directed, were not filled to circumvent
the contractor's obligations under 24 CFR Part 135.
(f) Noncompliance with HUD's regulations in 24 CFR Part
135 may result in sanctions, termination of this contract
for default, and debarment or suspension from future
HUD assisted contracts.
interests of the United States.
(g) With respect to work performed in connection with section
3 covered Indian housing assistance, section 7(b) of the
Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450e) also applies to the work to be
performed under this contract. Section 7(b) requires that
to the greatest extent feasible (i) preference and
opportunities for training and employment shall be given
to Indians, and (ii) preference in the award of contracts
and subcontracts shall be given to Indian organizations
and Indian-owned Economic Enterprises. Parties to this
contract that are subject to the provisions of section 3
and section 7(b)agree to comply with section 3 to the
maximum extent feasible, but not in derogation of
compliance with section 7(b).
(j) Compliance with the requirements of this clause shall be
to the maximum extent consistent with, but not in
derogation of, compliance with section 7(b) of the Indian
Self-Determination and Education Assistance Act and the
Indian Preference clause of this contract.
40. Employment, Training, and Contracting
Opportunities for Low-Income Persons, Section 3 of
the Housing and Urban Development Act of 1968.
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Page 14 of 19
form HUD-5370 (1/2014)
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41. Interest of Members of Congress
(a) The PHA, HUD, or Comptroller General of the United
No member of or delegate to the Congress of the United
States of America shall be admitted to any share or part of
this contract or to any benefit that may arise therefrom.
States, or any of their duly authorized representatives
shall, until 3 years after final payment under this contract,
have access to and the right to examine any of the
Contractor’s directly pertinent books, documents, papers,
or other records involving transactions related to this
contract for the purpose of making audit, examination,
42. Interest of Members, Officers, or Employees and
Former Members, Officers, or Employees
excerpts, and transcriptions.
No member, officer, or employee of the PHA, no member
of the governing body of the locality in which the project
is situated, no member of the governing body of the
locality in which the PHA was activated, and no other
public official of such locality or localities who exercises
any functions or responsibilities with respect to the
project, shall, during his or her tenure, or for one year
thereafter, have any interest, direct or indirect, in this
contract or the proceeds thereof.
(b) The Contractor agrees to include in first-tier subcontracts
under this contract a clause substantially the same as
paragraph (a) above. “Subcontract,” as used in this
clause, excludes purchase orders not exceeding
$10,000.
43. Limitations on Payments made to Influence Certain
Federal Financial Transactions
(c) The periods of access and examination in paragraphs (a)
and (b) above for records relating to (1) appeals under the
Disputes clause of this contract, (2) litigation or settlement
of claims arising from the performance of this contract, or
(3) costs and expenses of this contract to which the PHA,
HUD, or Comptroller General or any of their duly
authorized representatives has taken exception shall
continue until disposition of such appeals, litigation,
claims, or exceptions.
(a) The Contractor agrees to comply with Section 1352 of
Title 31, United States Code which prohibits the use of
Federal appropriated funds to pay any person for
influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, and
officer or employee of Congress, or an employee of a
Member of Congress in connection with any of the
following covered Federal actions: the awarding of any
Federal contract; the making of any Federal grant; the
making of any Federal loan; the entering into of any
cooperative agreement; or the modification of any
46. Labor Standards - Davis-Bacon and Related Acts
If the total amount of this contract exceeds $2,000, the
Federal labor standards set forth in the clause below shall
apply to the development or construction work to be
performed under the contract.
(a) Minimum Wages.
Federal contract, grant, loan, or cooperative agreement.
(1) All laborers and mechanics employed under this
contract in the development or construction of the
project(s) involved will be paid unconditionally and not
less often than once a week, and without subsequent
deduction or rebate on any account (except such payroll
deductions as are permitted by regulations issued by the
Secretary of Labor under the Copeland Act (29 CFR Part
3)), the full amount of wages and bona fide fringe benefits
(or cash equivalents thereof) due at time of payment
computed at rates not less than those contained in the
wage determination of the Secretary of Labor which is
attached hereto and made a part hereof, regardless of
any contractual relationship which may be alleged to exist
between the Contractor and such laborers and
mechanics. Contributions made or costs reasonably
anticipated for bona fide fringe benefits under Section
1(b)(2) of the Davis-Bacon Act on behalf of laborers or
mechanics are considered wages paid to such laborers or
mechanics, subject to the provisions of 29 CFR
5.5(a)(1)(iv); also, regular contributions made or costs
incurred for more than a weekly period (but not less often
than quarterly) under plans, funds, or programs which
cover the regular weekly period, are deemed to be
constructively made or incurred during such weekly
period. Such laborers and mechanics shall be paid the
appropriate wage rate and fringe benefits in the wage
determination for the classification of work actually
performed, without regard to skill, except as provided in
29 CFR 5.5(a)(4). Laborers or mechanics performing
(b) The Contractor further agrees to comply with the
requirement of the Act to furnish a disclosure (OMB
Standard Form LLL, Disclosure of Lobbying Activities) if
any funds other than Federal appropriated funds
(including profit or fee received under a covered Federal
transaction) have been paid, or will be paid, to any person
for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an
officer or employee of Congress, or an employee of a
Member of Congress in connection with a Federal
contract, grant, loan, or cooperative agreement.
44. Royalties and Patents
The Contractor shall pay all royalties and license fees. It
shall defend all suits or claims for infringement of any
patent rights and shall save the PHA harmless from loss
on account thereof; except that the PHA shall be
responsible for all such loss when a particular design,
process or the product of a particular manufacturer or
manufacturers is specified and the Contractor has no
reason to believe that the specified design, process, or
product is an infringement. If, however, the Contractor
has reason to believe that any design, process or product
specified is an infringement of a patent, the Contractor
shall promptly notify the Contracting Officer. Failure to
give such notice shall make the Contractor responsible
for resultant loss.
work in more than one classification may be
45. Examination and Retention of Contractor’s Records
compensated at the rate specified for each classification
for the time actually worked therein; provided, that the
employer’s payroll records accurately set forth the time
spent in each classification in which work is performed.
The wage determination (including any additional
classification and wage rates conformed under 29 CFR
5.5(a)(1)(ii) and the Davis-Bacon poster (WH-1321) shall
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Page 15 of 19
form HUD-5370 (1/2014)
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be posted at all times by the Contractor and its
subcontractors at the site of the work in a prominent and
accessible place where it can be easily seen by the
amount of any costs reasonably anticipated in
providing bona fide fringe benefits under a plan or
program; provided, that the Secretary of Labor has
found, upon the written request of the Contractor, that
the applicable standards of the Davis-Bacon Act have
been met. The Secretary of Labor may require the
Contractor to set aside in a separate account assets
for the meeting of obligations under the plan or
workers.
(2) (i) Any class of laborers or mechanics, including
helpers, which is not listed in the wage
determination and which is to be employed under
the contract shall be classified in conformance with
the wage determination. HUD shall approve an
additional classification and wage rate and fringe
benefits therefor only when all the following criteria
have been met: (A) The work to be performed by
the classification requested is not performed by a
classification in the wage determination; and (B)
The classification is utilized in the area by the
construction industry; and (C) The proposed wage
rate, including any bona fide fringe benefits, bears
a reasonable relationship to the wage rates
contained in the wage
program.
determination.
(b) Withholding of funds. HUD or its designee shall, upon its
own action or upon written request of an authorized
representative of the Department of Labor, withhold or
cause to be withheld from the Contractor under this
contract or any other Federal contract with the same
prime Contractor, or any other Federally-assisted
contract subject to Davis-Bacon prevailing wage
requirements, which is held by the same prime
Contractor, so much of the accrued payments or
advances as may be considered necessary to pay
laborers and mechanics, including apprentices, trainees,
and helpers, employed by the Contractor or any
subcontractor the full amount of wages required by the
contract. In the event of failure to pay any laborer or
mechanic, including any apprentice, trainee, or helper,
employed or working in the construction or development
of the project, all or part of the wages required by the
contract, HUD or its designee may, after written notice to
the Contractor, take such action as may be necessary to
cause the suspension of any further payment, advance,
or guarantee of funds until such violations have ceased.
HUD or its designee may, after written notice to the
Contractor, disburse such amounts withheld for and on
account of the Contractor or subcontractor to the
(ii) If the Contractor and the laborers and mechanics
to be employed in the classification (if known), or
their representatives, and HUD or its designee
agree on the classification and wage rate
(including the amount designated for fringe
benefits where appropriate), a report of the action
taken shall be sent by HUD or its designee to the
Administrator of the Wage and Hour Division,
Employee Standards Administration, U.S.
Department of Labor, Washington, DC 20210.
The Administrator, or an authorized
representative, will approve, modify, or disapprove
every additional classification action within 30 days
of receipt and so advise HUD or its designee or will
notify HUD or its designee within the 30-day period
that additional time is necessary.
respective employees to whom they are due.
(c) Payrolls and basic records.
(1) Payrolls and basic records relating thereto shall be
(iii) In the event the Contractor, the laborers or
maintained by the Contractor during the course of the
work and preserved for a period of three years
thereafter for all laborers and mechanics working in
the construction or development of the project. Such
records shall contain the name, address, and social
security number of each such worker, his or her
correct classification, hourly rates of wages paid
(including rates of contributions or costs anticipated
for bona fide fringe benefits or cash equivalents
thereof of the types described in section 1(b)(2)(B) of
the Davis-Bacon Act), daily and weekly number of
hours worked, deductions made, and actual wages
paid. Whenever the Secretary of Labor has found,
under 29 CFR 5.5(a)(1)(iv), that the wages of any
laborer or mechanic include the amount of costs
reasonably anticipated in providing benefits under a
plan or program described in section 1(b)(2)(B) of the
Davis-Bacon Act, the Contractor shall maintain
records which show that the commitment to provide
such benefits is enforceable, that the plan or program
is financially responsible, and that the plan or
program has been communicated in writing to the
laborers or mechanics affected, and records which
show the costs anticipated or the actual cost incurred
in providing such benefits. Contractors employing
apprentices or trainees under approved programs
shall maintain written evidence of the registration of
apprenticeship programs and certification of trainee
programs, the registration of the apprentices and
trainees, and the ratios and wage rates prescribed in
the applicable programs.
mechanics to be employed in the classification or
their representatives, and HUD or its designee do
not agree on the proposed classification and wage
rate (including the amount designated for fringe
benefits, where appropriate), HUD or its designee
shall refer the questions, including the views of all
interested parties and the recommendation of HUD
or its designee, to the Administrator of the Wage
and Hour Division for determination. The
Administrator, or an authorized representative, will
issue a determination within 30 days of receipt and
so advise HUD or its designee or will notify HUD or
its designee within the 30-day period that
additional time is necessary.
(iv) The wage rate (including fringe benefits where
appropriate) determined pursuant to
subparagraphs (a)(2)(ii) or (iii) of this clause shall
be paid to all workers performing work in the
classification under this contract from the first day
on which work is performed in classification.
(3) Whenever the minimum wage rate prescribed in the
contract for a class of laborers or mechanics includes
a fringe benefit which is not expressed as an hourly
rate, the Contractor shall either pay the benefit as
stated in the wage determination or shall pay another
bona fide fringe benefit or an hourly cash equivalent
thereof.
(4) If the Contractor does not make payments to a trustee
or other third person, the Contractor may consider as
part of the wages of any laborer or mechanic the
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Replaces form HUD-5370-A
Page 16 of 19
form HUD-5370 (1/2014)
Page 58 of 68
(2) (i) The Contractor shall submit weekly for each week
make such records available may be grounds for
debarment action pursuant to 29 CFR 5.12.
in which any contract work is performed a copy of
all payrolls to the Contracting Officer for
(d) (1) Apprentices. Apprentices will be permitted to work at
transmission to HUD or its designee. The payrolls
submitted shall set out accurately and completely
all of the information required to be maintained
under subparagraph (c)(1) of this clause. This
information may be submitted in any form desired.
Optional Form WH-347 (Federal Stock Number
029-005-00014-1) is available for this purpose and
may be purchased from the Superintendent of
Documents, U.S. Government Printing Office,
Washington, D.C. 20402. The Contractor is
responsible for the submission of copies of
payrolls by all subcontractors. (Approved by the
Office of Management and Budget under OMB
less than the predetermined rate for the work they
performed when they are employed pursuant to and
individually registered in a bona fide apprenticeship
program registered with the U.S. Department of
Labor, Employment and Training Administration,
Office of Apprenticeship and Training, Employer and
Labor Services (OATELS), or with a State
Apprenticeship Agency recognized by OATELS, or if a
person is employed in his or her first 90 days of
probationary employment as an apprentice in such an
apprenticeship program, who is not individually
registered in the program, but who has been certified
by OATELS or a State Apprenticeship Agency (where
Control Number 1214-0149.)
appropriate) to be eligible for probationary
(ii) Each payroll submitted shall be accompanied by a
employment as an apprentice. The allowable ratio of
apprentices to journeymen on the job site in any craft
classification shall not be greater than the ratio
permitted to the Contractor as to the entire work force
under the registered program. Any worker listed on a
payroll at an apprentice wage rate, who is not
registered or otherwise employed as stated in this
paragraph, shall be paid not less than the applicable
wage rate on the wage determination for the
classification of work actually performed. In addition,
any apprentice performing work on the job site in
excess of the ratio permitted under the registered
program shall be paid not less than the applicable
wage rate on the wage determination for the work
actually performed. Where a contractor is performing
construction on a project in a locality other than that in
which its program is registered, the ratios and wage
rates (expressed in percentages of the journeyman’s
“Statement of Compliance,” signed by the
Contractor or subcontractor or his or her agent
who pays or supervises the payment of the
persons employed under the contract and shall
certify the following:
(A) That the payroll for the payroll period contains
the information required to be maintained
under paragraph (c) (1) of this clause and that
such information is correct and complete;
(B) That each laborer or mechanic (including each
helper, apprentice, and trainee) employed on
the contract during the payroll period has been
paid the full weekly wages earned, without
rebate, either directly or indirectly, and that no
deductions have been made either directly or
indirectly from the full wages earned, other
than permissible deductions as set forth in 29
CFR Part 3; and
hourly rate) specified in the Contractor’s or
(C) That each laborer or mechanic has been paid
not less than the applicable wage rates and
fringe benefits or cash equivalents for the
classification of work performed, as specified
in the applicable wage determination
subcontractor’s registered program shall be observed.
Every apprentice must be paid at not less than the rate
specified in the registered program for the apprentice’s
level of progress, expressed as a percentage of the
journeyman hourly rate specified in the applicable
wage determination. Apprentices shall be paid fringe
benefits in accordance with the provisions of the
apprenticeship program. If the apprenticeship program
does not specify fringe benefits, apprentices must be
paid the full amount of fringe benefits listed on the
wage determination for the applicable classification. If
the Administrator of the Wage and Hour Division
determines that a different practice prevails for the
applicable apprentice classification, fringes shall be
paid in accordance with that determination. In the
event OATELS, or a State Apprenticeship Agency
recognized by OATELS, withdraws approval of an
apprenticeship program, the Contractor will no longer
be permitted to utilize apprentices at less than the
applicable predetermined rate for the work performed
until an acceptable
incorporated into the contract.
(iii) The weekly submission of a properly executed
certification set forth on the reverse side of
Optional Form WH-347 shall satisfy the
requirements for submission of the “Statement of
Compliance” required by subparagraph (c)(2)(ii) of
this clause.
(iv) The falsification of any of the above certifications
may subject the Contractor or subcontractor to civil
or criminal prosecution under Section 1001 of Title
18 and Section 3729 of Title 31 of the United
States Code.
(3) The Contractor or subcontractor shall make the
records required under subparagraph (c)(1) available
for inspection, copying, or transcription by authorized
representatives of HUD or its designee, the
Contracting Officer, or the Department of Labor and
shall permit such representatives to interview
employees during working hours on the job. If the
Contractor or subcontractor fails to submit the
required records or to make them available, HUD or
program is approved.
(2) Trainees. Except as provided in 29 CFR 5.16,
its designee may, after written notice to the
trainees will not be permitted to work at less than the
predetermined rate for the work performed unless they
are employed pursuant to and individually registered in
a program which has received prior approval,
evidenced by formal certification by the U.S.
Department of Labor, Employment and Training
Administration. The ratio of trainees to journeymen on
the job site shall not be greater than permitted under
Contractor, take such action as may be necessary to
cause the suspension of any further payment,
advance, or guarantee of funds. Furthermore, failure
to submit the required records upon request or to
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Replaces form HUD-5370-A
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form HUD-5370 (1/2014)
Page 59 of 68
the plan approved by the Employment and Training
Administration. Every trainee must be paid at not less
than the rate specified in the approved program for the
trainee’s level of progress, expressed as a percentage
of the journeyman hourly rate specified in the
applicable wage determination. Trainees shall be paid
fringe benefits in accordance with the provisions of the
trainee program. If the trainee program does not
mention fringe benefits, trainees shall be paid the full
amount of fringe benefits listed in the wage
determination unless the Administrator of the Wage
and Hour Division determines that there is an
apprenticeship program associated with the
corresponding journeyman wage rate in the wage
determination which provides for less than full fringe
benefits for apprentices. Any employee listed on the
payroll at a trainee rate who is not registered and
participating in a training plan approved by the
Employment and Training Administration shall be paid
not less than the applicable wage rate in the wage
determination for the classification of work actually
performed. In addition, any trainee performing work on
the job site in excess of the ratio permitted under the
registered program shall be paid not less than the
applicable wage rate in the wage determination for the
work actually performed. In the event the Employment
and Training Administration withdraws approval of a
training program, the Contractor will no longer be
permitted to utilize trainees at less than the applicable
predetermined rate for the work performed
(2) No part of this contract shall be subcontracted to any
person or firm ineligible for award of a United States
Government contract by virtue of section 3(a) of the
Davis-Bacon Act or 29 CFR 5.12(a)(1).
(3) The penalty for making false statements is prescribed
in the U. S. Criminal Code, 18 U.S.C. 1001.
(j) Contract Work Hours and Safety Standards Act. As used
in this paragraph, the terms “laborers” and “mechanics”
include watchmen and guards.
(1) Overtime requirements. No contractor or
subcontractor contracting for any part of the contract
work which may require or involve the employment of
laborers or mechanics, including watchmen and
guards, shall require or permit any such laborer or
mechanic in any workweek in which the individual is
employed on such work to work in excess of 40 hours
in such workweek unless such laborer or mechanic
receives compensation at a rate not less than one and
one-half times the basic rate of pay for all hours
worked in excess of 40 hours in such workweek.
(2) Violation; liability for unpaid wages; liquidated
damages. In the event of any violation of the
provisions set forth in subparagraph (j)(1) of this
clause, the Contractor and any subcontractor
responsible therefor shall be liable for the unpaid
wages. In addition, such Contractor and
until an acceptable program is approved.
subcontractor shall be liable to the United States (in
the case of work done under contract for the District
of Columbia or a territory, to such District or to such
territory), for liquidated damages. Such liquidated
damages shall be computed with respect to each
individual laborer or mechanic (including watchmen
and guards) employed in violation of the provisions
set forth in subparagraph (j)(1) of this clause, in the
sum of $10 for each calendar day on which such
individual was required or permitted to work in excess
of the standard workweek of 40 hours without
payment of the overtime wages required by
provisions set forth in subparagraph (j)(1) of this
(3) Equal employment opportunity. The utilization of
apprentices, trainees, and journeymen under this
clause shall be in conformity with the equal
employment opportunity requirements of Executive
Order 11246, as amended, and 29 CFR Part 30.
(e) Compliance with Copeland Act requirements. The
Contractor shall comply with the requirements of 29 CFR
Part 3, which are hereby incorporated by reference in this
contract.
clause.
(f) Contract termination; debarment. A breach of this contract
clause may be grounds for termination of the contract and
for debarment as a Contractor and a subcontractor as
provided in 29 CFR 5.12.
(3) Withholding for unpaid wages and liquidated
(g) Compliance with Davis-Bacon and related Act
requirements. All rulings and interpretations of the Davis-
damages. HUD or its designee shall upon its own
action or upon written request of an authorized
representative of the Department of Labor withhold or
cause to be withheld, from any moneys payable on
account of work performed by the Contractor or
subcontractor under any such contract or any Federal
contract with the same prime Contractor, or any other
Federally-assisted contract subject to the Contract
Work Hours and Safety Standards Act, which is held
by the same prime Contractor, such sums as may be
determined to be necessary to satisfy any liabilities of
such Contractor or subcontractor for unpaid wages
and liquidated damages as provided in the provisions
set forth in subparagraph (j)(2) of this clause.
(k) Subcontracts. The Contractor or subcontractor shall insert
in any subcontracts all the provisions contained in this
clause, and such other clauses as HUD or its designee
may by appropriate instructions require, and also a
clause requiring the subcontractors to include these
provisions in any lower tier subcontracts. The prime
Contractor shall be responsible for the compliance by any
subcontractor or lower tier subcontractor with all these
provisions.
Bacon and related Acts contained in 29 CFR Parts 1, 3,
and 5 are herein incorporated by reference in this
contract.
(h) Disputes concerning labor standards. Disputes arising out
of the labor standards provisions of this clause shall not
be subject to the general disputes clause of this contract.
Such disputes shall be resolved in accordance with the
procedures of the Department of Labor set forth in 29
CFR Parts 5, 6, and 7. Disputes within the meaning of
this clause include disputes between the Contractor (or
any of its subcontractors) and the PHA, HUD, the U.S.
Department of Labor, or the employees or their
representatives.
(i) Certification of eligibility.
(1) By entering into this contract, the Contractor certifies
that neither it (nor he or she) nor any person or firm
who has an interest in the Contractor’s firm is a
person or firm ineligible to be awarded contracts by
the United States Government by virtue of section
3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1).
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form HUD-5370 (1/2014)
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47. Non-Federal Prevailing Wage Rates
(a) Any prevailing wage rate (including basic hourly rate and
any fringe benefits), determined under State or tribal law
to be prevailing, with respect to any employee in any
trade or position employed under the contract, is
inapplicable to the contract and shall not be enforced
against the Contractor or any subcontractor, with respect
to employees engaged under the contract whenever
such non-Federal prevailing wage rate exceeds:
(1) The applicable wage rate determined by the Secretary
of Labor pursuant to the Davis-Bacon Act (40 U.S.C.
3141 et seq.) to be prevailing in the locality with
respect to such trade;
(b) An applicable apprentice wage rate based thereon
specified in an apprenticeship program registered with
the U.S. Department of Labor (DOL) or a DOL-
recognized State Apprenticeship Agency; or
(c) An applicable trainee wage rate based thereon specified
in a DOL-certified trainee program.
48. Procurement of Recovered Materials.
(a) In accordance with Section 6002 of the Solid Waste
Disposal Act, as amended by the Resource Conservation
and Recovery Act, the Contractor shall procure items
designated in guidelines of the Environmental Protection
Agency (EPA) at 40 CFR Part 247 that contain the highest
percentage of recovered materials practicable, consistent
with maintaining a satisfactory level of competition. The
Contractor shall procure items designated in the EPA
guidelines that contain the highest percentage of
recovered materials practicable unless the Contractor
determines that such items: (1) are not reasonably
available in a reasonable period of time; (2) fail to meet
reasonable performance standards, which shall be
determined on the basis of the guidelines of the National
Institute of Standards and Technology, if applicable to the
item; or (3) are only available at an
unreasonable price.
(b) Paragraph (a) of this clause shall apply to items
purchased under this contract where: (1) the
Contractor purchases in excess of $10,000 of the item
under this contract; or (2) during the preceding
Federal fiscal year, the Contractor: (i) purchased any
amount of the items for use under a contract that was
funded with Federal appropriations and was with a
Federal agency or a State agency or agency of a
political subdivision of a State; and (ii) purchased a
total of in excess of $10,000 of the item both under
and outside that contract.
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form HUD-5370 (1/2014)
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PUBLIC HOUSING AUTHORITY REQUIREMENTS
Contractors, Service Providers, Professional & Technical Providers and their subcontractors are advised
that HUD “Section 3” regulations apply.
Section 3 Overview
Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 (12 U.S.C. 1701u)
(section 3), which recognizes that HUD funds are typically one of the largest sources of federal funding
expended in communities. Section 3 is intended to ensure that employment and other economic
opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, and
consistent with existing Federal, State and local laws and regulations, be directed to low‐ and very low
income persons, particularly those who are recipients of government assistance for housing, and to
business concerns which provide economic opportunities to low‐ and very low‐income persons.
The City of Chandler’s Housing Rehabilitation Program uses federal funding through HUD, and is
required to administer the Section 3 provisions, and follow 24 CFR‐ HOUSING AND URBAN
DEVELOPMENT, Part 135 ‐ ECONOMIC OPPORTUNITIES FOR LOW‐ AND VERY LOW‐INCOME PERSONS of
the Code of Federal Regulation pertaining to low and very low income person(s). Contractors, Service
Providers, Professional & Technical Providers and their subcontractors are advised that HUD “Section 3”
regulations apply to all program activities which generate employment opportunities.
ATTACHMENTS: COMPLETE AND SUBMIT TO THE CITY OF CHANDLER
Attachment 1/ Statement of Workforce Needs ‐ (Fill out, sign, date and submit to the City of
Chandler)
Attachment 2/ Certification for Business Concerns Seeking SECTION 3 Preference in
Contracting and Demonstration of Capacity – Fill out, sign, date and submit to the City of
Chandler. All information is required if seeking Section 3 preference or not.)
Attachment 3/ HUD FY 2020 Income – (Required document; sign, date and submit with sealed
bid acknowledging that this document was provided)
Attachment 4/ Section 3 Income Verification/ Self‐Certification‐(Fill out, sign, date and submit
1 form for every employee to the City of Chandler only if applying for self‐certification for Section
3)
Attachment 5/ Section 3 Compliance Certification‐ (Required document; fill out, sign, date and
submit to the City of Chandler)
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