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Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page i
Project No.: CA2402.251
Rev. 8/30/24
CITY OF CHANDLER, ARIZONA
Dr. AJ Chandler Park Renovation
Phase 1
CITY PROJECT NO. CA2402.251
PRE-CONSTRUCTION SERVICES AGREEMENT
(CONSTRUCTION MANAGER AT RISK)
__________________________________________________
Daniel Haskins, P.E.
CIP City Engineer
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page ii
Project No.: CA2402.251
Rev. 8/30/24
CITY OF CHANDLER, ARIZONA
Dr. AJ Chandler Park Renovation Phase 1
CITY PROJECT NO.: CA2402.251
TABLE OF CONTENTS
PARTICIPANTS AND PROJECT .............................................................................1
AGREEMENT DOCUMENTS ..................................................................................3
PRE-CONSTRUCTION SERVICES...........................................................................3
CONSTRUCTION SERVICES ..................................................................................5
CITY FURNISHED INFORMATION........................................................................6
AGREEMENT TIME ................................................................................................6
AGREEMENT PRICE...............................................................................................6
FORCED LABOR OF ETHNIC UYGHURS PROHIBITED ......................................6
EXHIBIT A – PRE-CONSTRUCTION SCOPE OF WORK AND SCHEDULE .............................. A-1
EXHIBIT B – COMPENSATION AND FEE SCHEDULE.............................................................B-1
EXHIBIT C – INSURANCE REQUIREMENTS ...........................................................................C-1
EXHIBIT D – SUBMITTAL REQUIREMENTS FOR GMP/PRICE PROPOSAL........................... D-1
EXHIBIT E – GENERAL CONDITIONS ....................................................................................E-1
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page 1
Project No.: CA2402.251
Rev. 8/30/24
CONSTRUCTION MANAGER AT RISK
PRE-CONSTRUCTION SERVICES AGREEMENT
PROJECT NO.: CA2402.251
This Agreement (the “AGREEMENT”) is made and entered into on the ____day of _____________, 2025,
(“Effective Date”) by and between City of Chandler, an Arizona municipal corporation, hereinafter
called “City” and Willmeng Construction Inc. the “Construction Manager at Risk” or “CM@Risk”
designated below (City and CM@Risk may individually be referred to as “Party” and collectively
referred to as “Parties”).
City and CM@Risk agree as follows:
PARTICIPANTS AND PROJECT
CITY:
Acting CIP City Engineer: Daniel Haskins, P.E.
Public Works & Utilities Department
P.O. Box 4008, Mail Stop 407 Chandler, AZ 85244-4008
Phone: 480-782-3335 Email: Daniel.haskins@chandleraz.gov
CITY:
Construction Project Manager: Jason Garcia
Public Works & Utilities Department
P.O. Box 4008, Mail Stop 407 Chandler, AZ 85244-4008
Phone: 480-782-3453 Email: Jason.Garcia@chandleraz.gov
CM@RISK: Legal Company Name: Willmeng Construction, Inc.
Mailing Address:
1702 E. Highland Ave. Suite 450, Phoenix, AZ 85016
Physical Address:
1702 E. Highland Ave. Suite 450, Phoenix, AZ 85016
Arizona Roc No.:
ROC 082904
Federal Tax Id No.:
86-0410806
State Where Organized: Arizona
Business Organization: General Commercial Contractor
Statutory Agent Name: Brian Flaherty
Statutory Agent Mailing Address:
1702 E. Highland Ave. Suite 450
Phoenix, AZ
Statutory
Agent
Physical
Address:
1702 E. Highland Ave. Suite 450
Phoenix, AZ
CM@Risk’s Authorized Project Representative:
Name:
Michael Mongelli
Title:
President
Phone:
480-968-4755
Email:
mmongelli@willmeng.com
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page 2
Project No.: CA2402.251
Rev. 8/30/24
PROJECT DESCRIPTION:
As part of this pre-construction effort for the Dr. A.J. Chandler Park Renovation Phase 1, the
contractor will participate in stakeholder, value engineering, comment resolution, and GMP
negotiation meetings, provide constructability review of the design documents at the 30%, 60%,
and 90% milestone submittals, develop a preliminary construction schedule, provide
recommendations regarding long lead items/equipment, perform potholing as needed, and
prepare cost models and an early GMP.
PROJECT LOCATION:
3. S Arizona Ave, Chandler AZ 85225
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page 3
Project No.: CA2402.251
Rev. 8/30/24
AGREEMENT DOCUMENTS
2.1
AGREEMENT DOCUMENTS
The Agreement between City and CM@Risk will consist of the following Agreement
Documents:
1.
This Pre-Construction Services Agreement and all of its Exhibits, incorporated by
reference;
2.
Exhibit A – Pre-Construction Scope of Work and Schedule;
3.
Exhibit B – Compensation and Fee Schedule;
4.
Exhibit C – Insurance Requirements;
5.
Exhibit D – Submittal Requirements for GMP/Price Proposal;
6.
Exhibit E - General Conditions and General Conditions Appendices.
2.2
DEFINITIONS
The definitions in Sections 2 and 15.1 of the General Conditions apply to all the
Agreement Documents, including this Agreement.
PRE-CONSTRUCTION SERVICES
3.1
SERVICES
CM@Risk must provide all of the services and perform in accordance with Section 17 of the
General Conditions. The major components of Pre-Construction Services and the
corresponding subsections of Section 17 of the General Conditions are set forth below.
3.2
GENERAL REQUIREMENTS
3.2.1
CM@Risk must perform the services required by, and in accordance with this Agreement
and as outlines in the attached Exhibit A to the satisfaction of the Project Manager, in full
compliance with Section 17.2.1 of the General Conditions.
3.2.2
In performance of the Services under this Agreement, the CM@Risk must fully comply with
all applicable Laws, Regulations, or Legal Requirements applicable to City, the Project, and
the Agreement.
3.2.3
CM@Risk must perform the Services under this Agreement using only those firms, team
members, and individuals designated by CM@Risk consistent with the Statement of
Qualifications or as otherwise approved by City in accordance with the General Conditions.
No other entities or individuals may be used without the prior written approval of City.
3.2.4
CM@Risk will comply with all terms and conditions of the General Conditions.
3.2.5
In the event of a conflict between this Agreement and the General Conditions or any exhibit
hereto or appendix thereto, the terms of this Agreement will control.
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page 4
Project No.: CA2402.251
Rev. 8/30/24
3.2.6
Ownership of Work Product. Notwithstanding anything to the contrary in this Agreement,
all Work Product prepared or otherwise created in connection with the performance of this
Agreement, including the Work, are to be and remain the property of City, as set forth in
Section 17.2.6 of the General Conditions.
3.3
DESIGN PROJECT SCHEDULE
CM@Risk must prepare and present to City a Detailed Project Schedule that is acceptable
to the City and in accordance with Section 17.3 of the General Conditions.
3.4
DESIGN DOCUMENT REVIEW
CM@Risk must conduct the evaluations, perform the design document reviews, make the
recommendations, and provide the other Services referenced in accordance with Section
17.4 of the General Conditions.
3.5
BASELINE COST MODEL, DETAILED COST ESTIMATES, AND SCHEDULE OF VALUES
3.5.1
CM@Risk must prepare and submit the Baseline Cost Model, Detailed Cost Estimates, and
Schedule of Values in accordance with Section 17.5 of the General Conditions.
3.5.2
The submitted Baseline Cost Model, Detailed Cost Estimates, and Schedule of Values must
3.6
3.7
not exceed the City’s Construction Budget, which is ,000 or a higher amount
as revised by the City (“Construction Budget”). If CM@Risk submits a Baseline Cost
Model, Detailed Cost Estimates, and Schedule of Values that exceeds the Construction
Budget, negotiations could lead to termination or suspension of the Agreement.
SUBCONTRACTOR AND MAJOR SUPPLIER SELECTIONS
CM@Risk must select and obtain approval of Subcontractors and Suppliers in accordance
with Section 17.6 of the General Conditions.
GUARANTEED MAXIMUM PRICE (GMP) PROPOSAL
3.7.1
CM@Risk must submit a GMP Proposal for the entire Work, and for each phase (if required)
of the Work, at the times set forth in the Pre-Construction Schedule included in attached.
The GMP Proposal must be presented in a format acceptable to City based upon the
attached Exhibit D. City may change the schedule, format, and/or requirements for the
GMP Proposal as it deems necessary during Pre-Construction, and may request resubmittal
of the GMP Proposal to reflect such changes.
3.7.2
Preparation, submittal, review, and approval (or disapproval, if applicable) of the GMP
Proposal will be done in accordance with Section 17.7 of the General Conditions.
3.7.3
For the purposes of the GMP Proposal, the Parties agree that:
a.
The CM@Risk Fee will be equal to 6.85% (percent) of the Cost of Work;
7.5%
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page 5
Project No.: CA2402.251
Rev. 8/30/24
b. General Conditions costs will be a fixed amount or percentage agreed to as part of
the Baseline Cost Model.
3.7.4
The GMP Proposal must not exceed the City’s Construction Budget.
3.8
ADDITIONAL PRE-CONSTRUCTION SERVICES
3.8.1
Additional services which are outside the scope of the services required under the
Agreement Documents will not be performed by CM@Risk without prior written
authorization from City. Additional services, when authorized by an executed written
Change Order under Section 9 of the General Conditions, will be compensated for by a fee
mutually agreed upon in such written Change Order between City and CM@Risk.
3.8.2
No claim for additional services, extra work done or materials furnished by CM@Risk will
be allowed by City except as provided herein, nor will CM@Risk provide any additional
services, do any work, or furnish any materials(s) not covered by this Agreement unless
such work or material is first authorized in writing by City. Work or material(s) furnished by
CM@Risk without such prior written authorization will be CM@Risk’s sole jeopardy, cost,
and expense, and CM@Risk hereby agrees that without prior written authorization no claim
for compensation for such services, work or materials furnished will be made, and City will
not be responsible for such costs.
3.8.3
No Work (as defined by Section 1 of the General Conditions) may be performed under this
Pre-Construction Services Agreement, without prior written approval by City. As an
example, all procurement of long lead time items that must be procured to support the
construction schedule or site investigative Work necessary to complete Pre-Construction
Services, if done by the CM@Risk, will be performed only after a GMP Proposal for the Work
has been approved and accepted in writing by City and all such Work will be done only
under an executed Agreement for Construction Services, or pursuant to a prior written
direction from City to engage in such procurement.
CONSTRUCTION SERVICES
If City accepts CM@Risk’s GMP Proposal, CM@Risk and City will enter a Construction
Services Agreement for Construction of the Project based upon CM@Risk’s Pre-
Construction Services performed and GMP Proposal submitted pursuant to this
Agreement. The terms of the Construction Services Agreement are being negotiated
contemporaneously with this Agreement
and CM@Risk agrees to execute the
Construction Services Agreement, without further modification, upon acceptance by City
of the GMP Proposal. All of CM@Risk’s obligations, duties and warranties in relation to
Pre-Construction Services and Deliverables (including specifically the GMP Proposal)
survive the completion of this Agreement and will be incorporated into the Construction
Services Agreement.
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page 6
Project No.: CA2402.251
Rev. 8/30/24
CITY FURNISHED INFORMATION
5.1
City, at no cost to CM@Risk, will furnish the following to CM@Risk:
5.1.1
One copy of data in City’s possession or control which City determines in its discretion to
be pertinent to the Work. However, CM@Risk will be responsible for searching the records
and requesting information it deems reasonably required for the Project.
5.1.2
Electronic copies of programs, reports, drawings, and specifications reasonably required
by CM@Risk, to the extent in possession of City.
AGREEMENT TIME
Agreement Duration is 365 Calendar Days. The Pre-Construction Services described in this
Agreement must be performed by CM@Risk in accordance with the Pre-Construction
Schedule set forth in attached Exhibit A, as updated and expanded in the most current
updated/revised and approved Detailed Project Schedule. Failure on the part of CM@Risk
to adhere to the Pre-Construction Schedule requirements for activities for which it is
responsible and in control will be deemed a material breach and sufficient ground for
termination for cause of this Agreement by City.
AGREEMENT PRICE
7.1
In exchange for CM@Risk’s full, timely, and acceptable performance of the Services under
this Agreement, and subject to all of the terms of this Agreement, City will pay CM@Risk a
fee of $175,583 (the “Agreement Price”). The method of payment for this Agreement is
Hourly, Not-to-Exceed. The amount paid will not exceed the Agreement Price for actual
costs incurred, based on the negotiated hourly rates and reimbursement schedule as
defined in Exhibit B, Compensation and Fee Schedule.
7.2
The Agreement Price is all-inclusive, and City will not pay any additional amounts, costs or
expense, except for only those specifically designated reimbursable costs, without markup,
as set forth in Exhibit B.
FORCED LABOR OF ETHNIC UYGHURS PROHIBITED
8.1
By entering into this Agreement, Contractor certifies and agrees Contractor does not
currently use and will not use for the term of this Agreement: (i) the forced labor of
ethnic Uyghurs in the People's Republic of China; or (ii) any goods or services produced
by the forced labor of ethnic Uyghurs in the People's Republic of China; or (iii) any
contractors, subcontractors or suppliers that use the forced labor or any goods or
services produced by the forced labor of ethnic Uyghurs in the People's Republic of
China.
SIGNATURE PAGE TO FOLLOW
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page 7
Project No.: CA2402.251
Rev. 8/30/24
IN WITNESS WHEREOF, the parties hereto have executed this Agreement through their duly
authorized representatives and bind their respective entitles as of the Effective Date.
“CITY” CITY OF CHANDLER
MAYOR
RECOMMENDED BY:
Daniel Haskins, P.E.
CIP City Engineer
APPROVED AS TO FORM:
City Attorney
ATTEST:
City Clerk
Seal
“CM@Risk”
Willmeng Construction Inc.
Signature
Date
Print Name
Title
Signer Email Address
Michael Mongelli
President
mmongelli@willmeng.com
02.28.2025
Michael Mongelli
Digitally signed by Michael Mongelli
DN: C=US,
E=mmongelli@willmeng.com,
O="Willmeng Construction, Inc.",
CN=Michael Mongelli
Date: 2025.02.28 12:59:57-07'00'
EXHIBIT A
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page A-1
Project No.: CA2402.251
Rev. 8/30/24
PRE-CONSTRUCTION SERVICES
SCOPE OF WORK AND SCHEDULE
Template Document
PM/CM to review and customize as needed for specific project
And CIP City Engineer to negotiate with Contractor on CMAR Fee % of Cost of Work
(per 3.7.3 of contract)
Exhibit A
CM@RISK PRE-CONSTRUCTION SERVICES
SCOPE OF WORK
DR A.J. CHANDLER PARK RENOVATION PHASE 1
CA2402.251
Note: The sections below are numbered to correspond with General Conditions, Section 17 –
Provisions Applicable Solely to Pre-Construction Services for Construction Manager at Risk.
17.2 – GENERAL
Project Kick-off Meeting
Attend and participate in Project Kick-off meeting. CM@Risk will provide drawings,
schedule diagrams, budget charts, and other materials describing the Project, when
their use is required for the meeting.
Stakeholders and Public Agencies Meetings
Attend and participate, as may be appropriate, in meetings related to the Project with
Stakeholders and Public Agencies.
Partnering Sessions
Attend and participate, as may be appropriate, in Partnering Sessions.
Project/Design Meetings
Participate in bi-weekly or monthly Project/Design meetings.
Project Workshops/Design Workshops
Participate in Project Workshops and Design Workshops and/or other miscellaneous
meetings and partnering sessions as required by City. CM@Risk will provide input
consistent with sound and generally accepted construction management and
contracting practices related to the procurement, cost impact, schedule, quality, and
operations/maintenance.
Construction Document Rolling Reviews
Participate in Construction Document Rolling Review meetings. Review of documents
as received from Project Designer; feedback consistent with sound and generally
accepted construction management and
contracting practices
related to
procurement, cost impact, schedule, quality, and operation/maintenance.
Value Engineering Review Meetings
Participate in Value Engineering Review meetings or Value Engineering workshops.
Project Team will routinely assist to identify and evaluate, using engineering
principles, any alternate systems, approaches, and design changes that have the
potential to reduce Project costs while still delivering a quality and functional product
that meets the design intent.
Utility Coordination Meetings
CM@Risk Pre-Construction Services – Scope of Work
Participate in Utility Coordination meetings. CM@Risk will attend, make
presentations, and participate as may be appropriate, in Utility Coordination
meetings related to the Project. CM@Risk will provide drawings, schedule diagrams,
budget charts, and other materials describing the Project, when their use is required
for the meeting.
Comment Resolution Meetings
Participate in meetings with the Consultants and City to review constructability/bid-
ability comments after design submission for both 60% and 90% design.
GMP Review/Negotiation Meetings
Participate in meetings with City to review the GMP after submission.
17.3 – DETAILED PROJECT SCHEDULE
Develop Design Phase Schedule
Prepare and present to City a detailed design phase project schedule with input from
City and Project Designer which utilizes the Critical Path method (CPM) technique
Design Phase Schedule - Monthly Updates
Provide monthly updates to current schedule with monthly progress reports; analysis
of progress achieved to-date against baseline, including any concerns regarding delays
or potential delays and any recommendations regarding mitigating actions.
Develop Preliminary Construction Schedule & Phasing Plans
Transition design phase schedule to overall project schedule in association with the
baseline cost model and proposed phasing plans for early equipment procurement
and/or construction activities and the remainder of the construction phase.
Long Lead Analysis and Recommendations
Identify all long lead time materials, fabrications, equipment or other items which may
impact the Project Schedule and may require early action on the part of the Project
Team including dates required for selecting and procuring such items.
Equipment Plan
Prepare and present to City an Equipment Plan that addresses all rental and owned
equipment that is necessary to construct the Project as outlined in General Conditions
Section 17.3.6.
Phasing and Logistics Planning
Develop a strategic approach to sequencing or phasing construction activities while
ensuring efficient site operations. This includes coordinating access, staging
materials, minimizing disruptions to the surrounding community, and maintaining
safety throughout the project.
17.4 – DESIGN DOCUMENT REVIEWS
Value Analysis/Efficiency Analysis
CM@Risk Pre-Construction Services – Scope of Work
Evaluate periodically the availability of labor, materials/equipment, cost-sensitive
aspects of the design; and other factors that may create an unacceptable variance to
the Baseline Cost Model and/or Baseline Project Schedule; use established value
analysis principles in recommending cost effective alternatives
Utility Design Review and Comment
Perform reviews and provide written comments on the utility relocation and design
submittals and for coordination with the design development for construction of the
Project.
Constructability and Bid-ability Reviews
Perform reviews and provide written comments on the project design submittals and
for construction drawings, construction documents, various analyses, and studies
and investigations conducted for the design of the Project. Includes, but is not limited
to, review and evaluate Design Development documents for clarity, consistency,
completeness, and ease of construction in order to achieve the overall objective of
the Project. Review prior project as-built plans. Evaluate construction safety issues
and proposals of construction safety improvements, as may be applicable. CM@Risk
will evaluate whether: (a) the Drawings and Specifications are configured to enable
efficient construction; (b) design elements are standardized; (c) construction
efficiency is properly considered in the Drawings and Specifications; (d) the design
promotes accessibility of personnel, material and equipment, and facilitates
construction under adverse weather conditions; (e) sequences of Work required by
or inferable from the Drawings and Specifications are practicable; and (f) the design
has taken into consideration, efficiency issues concerning access and entrance to the
site, lay down and storage of materials, staging of site facilities, construction parking,
and other similar pertinent issues. Review comments will be compiled at each of the
following design phase milestones: 60% and 90%.
Document Complementary Review and Cross Checks
Perform reviews and provide written comments regarding the bid-ability of the
Project. CM@Risk will check cross-references and complementary Drawings and
sections within the Specifications, and in general evaluate whether (a) the Drawings
and Specifications are sufficiently clear and detailed to minimize ambiguity and to
reduce scope interpretation discrepancies; (b) named materials and equipment are
commercially available and are performing well or otherwise in similar installations;
(c) Specifications include alternatives in the event a requirement cannot be met in the
field; and (d) in its professional opinion, the Project is likely to be subject to differing
site conditions. Review comments will be complied at each of the following design
phase milestones: 60% and 90%.
Utility/Site Investigations
Participate in site investigation and utility potholing as deemed necessary to pothole,
identify, and record existing utilities to avoid conflicts during design planning.
CM@Risk Pre-Construction Services – Scope of Work
17.5 – BASELINE COSTS MODEL, DETAIL COST ESTIMATE, SCHEDULE OF VALUES
30% Cost Model (Baseline Cost Model)
Upon receipt of acceptable 30% drawings, CM@Risk will review all available
information regarding design and scope of the Project using the CM@Risk’s
experience in performing similar work, knowledge of similar projects, and current and
projected construction costs and, based upon that review, must develop a Baseline
Cost Model for review by the Project Team and approval by City.
60% Cost Model
Upon receipt of acceptable 60% drawings and specifications, CM@Risk will review all
available information regarding the design and scope of the Project using CM@Risk’s
experience in performing similar work, knowledge of similar projects and current and
projected construction costs and, based upon that review, must update the Cost
Model for review by the Project Team and approval by City.
90% Cost Model
Upon receipt of acceptable 90% drawings and specifications, CM@Risk will review all
available information regarding the design and scope of the Project using CM@Risk’s
experience in performing similar work, knowledge of similar projects and current and
projected construction costs and, based upon that review, must update the Cost
Model for review by the Project Team and approval by City.
Continuous Cost Model/Estimate Updates (Design Evolution Log)
Track, estimate/price, and address the Project Team’s overall project cost issues that
arise outside of the Baseline Cost Model and the latest approved Detailed Cost
Estimate such as: City generated changes, Project Team proposed changes, alternate
system analysis, constructability items and value engineering analysis.
Schedule of Values
Prepare and submit Schedule of Values for review by the Project Team and approval
by City.
Cash Flow Projections
Prepare and submit cash flow projections upon request by City.
17.6 – SUBCONTRACTOR AND MAJOR SUPPLIER SELECTIONS
Procurement Prequalifications & Subcontractor Prequalification
Evaluate potential suppliers and subcontractors with respect to safety, financial
capacity, ability to meet/exceed schedule, and quality in order to obtain adequate pool
of acceptable bidders.
Subcontractor Selection Plan
Develop and submit written subcontractor selection plan per General Conditions
Section 17.6 with justification for any qualifications based selections proposed.
CM@Risk Pre-Construction Services – Scope of Work
Subcontractor Bid Evaluation/Reports
Prepare and submit detailed list of recommended subcontractors and summary
report of the entire selection process.
Pre-bid Conference
Plan, communicate, and conduct pre-bid conference with prospective subcontractors
and suppliers.
17.7 – GMP PROPOSAL
Early Equipment/Early GMP Preparation
Identify long-lead equipment that will greatly improve schedule if procured in an early
GMP; work with Owner and Project Designer in developing required Agreement
Documents to facilitate this procurement.
GMP Preparation and Submission
Prepare and submit the GMP Proposal in accordance with City’s request for GMP
Proposal requirements based on the most current completed Drawings and
Specifications at that time, which unless otherwise directed by City in writing, will be
at 100% Construction Drawings. Preparation and submission of phased GMP
Proposals submitted for the Project (such as a separate GMP for long lead equipment
or phased construction) are also included in this item.
17.8 – PAYMENT PROCEDURE FOR PRE-CONSTRUCTION SERVICES
Monthly Progress Reports/Request for Payment
Prepare and submit monthly request for payment accompanied by a progress report,
detailed invoices and receipts, if applicable.
ALLOWANCE ITEMS
Site Utility Investigations (Potholing) – Allowance
An allowance to supply a potholing subcontractor to continue investigating unknown
utilities and locations (if required or not performed by the Project Designer).
Reprographic – Allowance
An allowance to be used to print, prepare, and/or reproduce plans, specifications,
exhibits, etc.
EXHIBIT B
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page B-1
Project No.: CA2402.251
Rev 8/30/24
COMPENSATION AND FEE SCHEDULE
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EXHIBIT C
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page C-1
Project No.: CA2402.251
Rev. 8/30/24
INSURANCE REQUIREMENTS
1.
General.
1.1
At the same time as execution of this Agreement, CM@Risk must furnish 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 will not be deemed to apply to required
Workers’ Compensation coverage.
1.2
CM@Risk and any of its subconsultants must 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.
1.3
The insurance requirements set forth below are minimum requirements for this
Agreement and in no way limit the indemnity covenants contained in this Agreement.
1.4
City in no way warrants that the minimum insurance limits contained in this Agreement are
sufficient to protect CM@Risk from liabilities that might arise out of the performance of the
Agreement services under this Agreement by CM@Risk, its agents, representatives,
employees, subconsultants, and CM@Risk is free to purchase any additional insurance as
may be determined necessary.
1.5
Failure to demand evidence of full compliance with the insurance requirements in this
Agreement or failure to identify any insurance deficiency will not relieve CM@Risk 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.
1.6
Use of subconsultants: If any work is subcontracted in any way, CM@Risk must execute a
written Agreement with subconsultant containing the same Indemnification Clause and
Insurance Requirements as City requires of CM@Risk in this Agreement. CM@Risk is
responsible for executing the Agreement with the subconsultant and obtaining Certificates
of Insurance and verifying the insurance requirements.
2.
Minimum Scope and Limits of Insurance. CM@Risk must provide coverage with limits of
liability not less than those stated below.
2.1
Commercial General Liability-Occurrence Form. CM@Risk 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
and completed operations, independent contractors, personal injury and advertising
EXHIBIT C
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page C-2
Project No.: CA2402.251
Rev. 8/30/24
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.
2.2
Automobile Liability-Any Auto or Owned, Hired and Non-Owned Vehicles
Vehicle Liability: CM@Risk must maintain Business/Automobile Liability insurance with a
limit of $1,000,000 each accident on CM@Risk owned, hired, and non-owned vehicles
assigned to or used in the performance of CM@Risk’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.
2.3
Workers Compensation and Employers Liability Insurance: CM@Risk must maintain Workers
Compensation insurance to cover obligations imposed by federal and state statutes having
jurisdiction of CM@Risk 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.
2.4
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 Agreement price and all subsequent modifications.
The Contractor’s Builders’ Risk/Installation Floater insurance must be primary and not contributory.
Builders’ Risk/Installation Floater insurance must cover the entire Work including reasonable
compensation for architects and engineers’ 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.
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 Agreement. The Contractor will be responsible for
any and all deductibles under these policies and the Contractor waives all rights of recovery
EXHIBIT C
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page C-3
Project No.: CA2402.251
Rev. 8/30/24
and subrogation against the City under the Contractor- Builders’ Risk/Installation Floater
insurance described herein.
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.
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.
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.
The Builders Risk/Installation Floater insurance must be written using the Special Causes of
Loss policy form, replacement cost basis.
All rights of subrogation under the Builders Risk/Installation Floater insurance are, by this
Agreement, waived against the City, its officers, officials, agents and employees.
The Contractor is responsible for payment of all deductibles under the Builders’ Risk/Installation Floater
insurance policy.
3.
Additional Policy Provisions Required.
3.1
Self-Insured Retentions or Deductibles. Any self-insured retentions and deductibles must be
declared and approved by City. If not approved, City may require that the insurer reduce
or eliminate any deductible or self-insured retentions with respect to City, its officers,
officials, agents, employees, and volunteers.
3.1.1. CM@Risk’s insurance must contain broad form contractual liability coverage.
3.1.2. CM@Risk’s insurance coverage must be primary insurance with respect to City, its officers,
officials, agents, and employees. Any insurance or self-insurance maintained by City, its
officers, officials, agents, and employees will be in excess of the coverage provided by
CM@Risk and must not contribute to it.
3.1.3. CM@Risk’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.
3.1.4. Coverage provided by CM@Risk must not be limited to the liability assumed under the
indemnification provisions of this Agreement.
EXHIBIT C
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page C-4
Project No.: CA2402.251
Rev. 8/30/24
3.1.5. The policies must contain a severability of interest clause and waiver of subrogation against
City, its officers, officials, agents, and employees, for losses arising from Work performed
by CM@Risk for City.
3.1.6. CM@Risk, its successors and or assigns, are required to maintain Commercial General
Liability insurance as specified in this Agreement for a minimum period of 3 years following
completion and acceptance of the Work. CM@Risk must submit a Certificate of Insurance
evidencing Commercial General Liability insurance during this 3 year period containing all
the Agreement insurance requirements, including naming City of Chandler, its agents,
representatives, officers, directors, officials and employees as Additional Insured as
required.
3.1.7. If a Certificate of Insurance is submitted as verification of coverage, 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.
3.2.
Insurance Cancellation During Term of Agreement.
3.2.1. If any of the required policies expire during the life of this Agreement, CM@Risk must
forward renewal or replacement Certificates to City within 10 days after the renewal date
containing all the required insurance provisions.
3.2.2. Each insurance policy required by the insurance provisions of this Agreement must provide
the required coverage and must not be suspended, voided or canceled except after thirty
(30) days prior written notice has been given to City, except when cancellation is for non-
payment of premium, then ten (10) days prior notice may be given. Such notice must 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, CM@Risk or its insurance broker must notify City of any cancellation,
suspension, non-renewal of any insurance within seven (7) days of receipt of insurers’
notification to that effect.
3.3
City as Additional Insured. The policies are to contain, or be endorsed to contain, the
following provisions:
3.3.1. The Commercial General Liability and Automobile Liability policies are to contain, or be
endorsed to contain, the following provisions: City, its officers, officials, agents, and
employees are additional insureds with respect to liability arising out of activities
performed by, or on behalf of, CM@Risk including City's general supervision of CM@Risk;
Products and Completed operations of CM@Risk; and automobiles owned, leased, hired,
or borrowed by CM@Risk.
EXHIBIT C
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page C-5
Project No.: CA2402.251
Rev. 8/30/24
3.3.2. City, its officers, officials, agents, and employees must be additional insureds to the full
limits of liability purchased by CM@Risk even if those limits of liability are in excess of those
required by this Agreement.
EXHIBIT D
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page D-1
Project No.: CA2402.251
Rev. 8/30/24
SUBMITTAL REQUIREMENTS FOR GMP/PRICE PROPOSAL
(Page 1 of 2)
1.
Unless otherwise instructed, CM@Risk must submit 3 bound copies of any GMP Proposal(s)
that includes the following documents, complies with the requirements specified in this
Agreement and the following instructions. The GMP Proposal(s) must be organized as follows:
A. Table of Contents
B. Project Description
C. GMP Proposal and the following attachments:
i.
Detailed Cost Estimate upon which the GMP is based and if for phased work, a total
project Detailed Cost Estimate as of the time of the phased GMP Proposal.
ii. List of Subcontractors
iii. Schedule of Manufacturers and Suppliers
D. Schedule of Values (“SOV”)
E. Project Schedule and a variance report to the Baseline Project Schedule
F. Construction phasing/traffic control (if applicable)
G. List of GMP Plans and Specifications
2.
A summary breakdown of the GMP Proposal is shown on page 2 of this Exhibit, along with
instructions regarding certain line items. The definitions included in Section 1 of the General
Conditions apply to the line items, as appropriate, and set-forth the criteria to be used by
CM@Risk in providing the required breakdown.
3.
The most current version of CM@Risk’s SOV must be submitted with the GMP Proposal.
Supporting documents for the SOV, including the request for bids, copies of bids received, and
clarification assumptions used for the particular bid item listed must be provided in an organized
matter that correlates with the SOV.
4.
The final accepted GMP must not include any clarifications/assumptions made by CM@Risk in
the preparation of the GMP Proposal, unless any such clarification or assumption is agreed to
in writing by City.
5.
The most current version of CM@Risk’s Detailed Project Schedule must be submitted with the
GMP Proposal with a variance report from the project’s Baseline Schedule. The Detailed Project
Schedule must be prepared as specified in this Agreement.
6.
A table listing all drawing sheets included in the GMP Plans and Specifications must be included
with the GMP package. The table must include the following information: Sheet Number, Sheet
Name, Sheet Version, and Date of Issuance. The GMP Proposal and Specifications, as defined,
must be transmitted as specified in this Agreement.
NOTE: The submittal package must be kept as simple as possible all on 8 ½ x 11 sheets. Color or
shading must be kept to a minimum. If used, make sure the color or shading will not affect the
reproduction of the submittal in black and white.
EXHIBIT D
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page D-2
Project No.: CA2402.251
Rev. 8/30/24
Date:
Amount
A. Cost of Work
A1 Cost of Work (self perform, no mark-up)
$0.00
A2 Cost of Work (subcontractors, suppliers, materialmen)
$0.00
TOTAL COST OF WORK:
$0.00
B. General Conditions
$0.00
$0.00
C. CM@Risk's Fee
$0.00
SUBTOTAL 2 (A + B + C):
$0.00
D. Bonds and Insurance (on Subtotal 1)
D1 Bonds (Payment and Performance)
$0.00
D2 Insurance
$0.00
$0.00
SUBTOTAL 3 (SUBTOTAL 2 + BONDS & INS):
$0.00
E. Sales Tax
E1 Sales Tax
$0.00
E2 Tax Credits
$0.00
$0.00
F. Approved Allowances
F1 Owner's Allowance
$0.00
F2 Owner's Allowance for Water and Wastewater
$0.00
$0.00
G. Contingencies
G1
$0.00
G2
$0.00
$0.00
$0.00
Establishment of Values:
a. Cost of Work (A) and Allowances (F) to be submitted with GMP Proposal.
b. General Conditions Cost (B) to be established in Baseline Cost Model.
c. CM@Risk Fee as set forth in Section 3.7.3 of this Contract
EXHIBIT D
TOTAL BONDS & INSURANCE:
TOTAL SALES TAX:
TOTAL GMP PROPOSAL:
TOTAL ALLOWANCES:
TOTAL CONTINGENCIES:
CM@RISK GMP SUMMARY (PAGE 2 of 2)
Project Name:
Project Location:
City of Chandler Project No.:
SUBTOTAL 1 (Cost of Work) (A + B):
EXHIBIT E
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page E-1
Project No.: CA2402.251
Rev 10/23/23
GENERAL CONDITIONS
AND
GENERAL CONDITIONS APPENDICES
GENERAL CONDITIONS
Approved date: July 20, 2022
Revised: 7/20/2022
GC-2 of 75
TABLE OF CONTENTS
SECTION 1 - SCOPE OF THESE GENERAL CONDITIONS............................................................................... 3
SECTION 2 - GENERAL DEFINITIONS ............................................................................................................ 3
SECTION 3 - STANDARD SPECIFICATIONS AND DETAILS........................................................................... 7
SECTION 4 - CONTRACTOR’S RESPONSIBILITIES FOR CONSTRUCTION SERVICES .................................. 8
SECTION 5 - CITY RESPONSIBILITIES ..........................................................................................................27
SECTION 6 - AGREEMENT TIME ...................................................................................................................29
SECTION 7 - AGREEMENT PRICE..................................................................................................................35
SECTION 8 - PAYMENT .................................................................................................................................35
SECTION 9 - CHANGES TO THE AGREEMENT .............................................................................................40
SECTION 10 - SUSPENSION AND TERMINATION ......................................................................................43
SECTION 11 - INSURANCE AND BONDS.....................................................................................................44
SECTION 12 - INDEMNIFICATION ...............................................................................................................49
SECTION 13 - DISPUTE RESOLUTION..........................................................................................................49
SECTION 14 - MISCELLANEOUS PROVISIONS............................................................................................50
SECTION 15 - PROVISIONS APPLICABLE SOLELY TO GMP AND COST-BASED AGREEMENTS, CHANGE
ORDERS, AND JOB ORDERS .........................................................................................................................57
SECTION 16 - PROVISIONS APPLICABLE SOLELY TO JOB ORDER AGREEMENTS (JOC) ........................61
SECTION 17 - PROVISIONS APPLICABLE SOLELY TO PRE-CONSTRUCTION SERVICES FOR
CONSTRUCTION MANAGER AT RISK..........................................................................................................66
SECTION 18 - APPENDICES ......................................................................................................APP-1 of 30
Appendix 1 – Policy Statement for Calculating Delays and Damages
Appendix 2 – Cost Reduction Incentive Proposals for Design Bid Build Agreements
Appendix 3 – Contractor’s Affidavit Regarding Settlement of Claims
Appendix 4 – Forms of Performance Bond
Appendix 5 – Forms of Payment Bond
Appendix 6 – Dispute Resolution
Appendix 7 – Certificate of Completion
Appendix 8 – Construction Sign Detail
Appendix 9 – Cost of the Work (Applicable solely to Construction Manager at Risk and
Job Order Contracting)
Appendix 10 Landscape Establishment Period
General Conditions
Revised: 7/20/22
GC-3 of 75
SECTION 1 - SCOPE OF THESE GENERAL CONDITIONS
These
General
Conditions
encompass
provisions
that
apply,
and
are
incorporated
into all
construction Agreements entered into by the City of Chandler, unless otherwise specifically excluded in
the executed Agreement.
SECTION 2 - GENERAL DEFINITIONS
Allowance : A specific amount for a specific item of Work, if any, that City agrees has not been sufficiently
designed, detailed, or selected (including design changes from 90% to 100% as authorized by and at
the discretion of the City)at the time the AgreementPrice isagreed tofor Contractortoprovide adefinitive
price.
Alternate Systems Evaluations or Alternative Analysis: Alternatives for design, means and methods or
other scope considerations that are evaluated using value analysis principles and have the potential to
reduce construction costs while still delivering a quality and
functional Project that meets City
requirements.
Change Order: A written instrument issued after execution of the Agreement Documents signed by
City and Contractor, stating their agreement upon all of the following: the addition, deletion or revision
in the scope of services or deliverables; the amount of the adjustment to the Agreement Price, the
extent of the adjustment to the Agreement Time, or modifications of other agreement terms. The
Agreement Price and the Agreement Time may be changed only by Change Order.
Consultant: Person or firm that provides professional services.
City (Owner or OWNER): City of Chandler, a municipal corporation, with whom Contractor has entered
into the Agreement and for whom the Work or Services are to be provided pursuant to the Agreement(s).
Contingent Bid Items: This is a minor bid item which is likely, but not certain, to occur during the course
of work. If the Engineer determines that this work is required, the Contractor will accomplish the work
and payment will be made based on the contingent unit bid price included in the proposal. Since the
quantity listed in the proposal is primarily for bid comparison, the amount of work required by the
Engineer may vary materially from this.
Agreement: The written agreement executed between City and Contractor, including all of the Agreement
Documents.
Agreement Documents: The documents which together form the Agreement between City and
Contractor, as identified in Article 2 of
the Agreement, or are otherwise incorporated into the
Agreement, including the Agreement, the exhibits thereto, these General Conditions, any Notice to
Proceed, and any Job Order (if applicable), the Plans and Specifications, Project Schedule, written
and properly executed Change Orders, MAG Specifications and City’s amendments thereto, and any
other documents so designated in the Agreement.
Agreement Price: The agreed-upon price to be paid to Contractor for full, timely, and acceptable
completion of the Work or Services under the terms of the Agreement.
Agreement Time(s): The number of calendar days or the dates related to the applicable phase,
Substantial Completion, or Final Acceptance as stated in Agreement Documents. Agreement Time starts
General Conditions
Revised: 7/20/22
GC-4 of 75
with the Notice to Proceed (NTP) and ends with Final Acceptance. The Agreement Time is set forth in
the Agreement and is based upon the Project Schedule agreed to by City in writing.
Contractor: The person or business association with whom City has entered into an agreement for
construction related Work or Services in relation to the Project at issue.
Contractor Payment Request: The form that is accepted by City and used by Contractor in requesting
progress payments or final payment
and which must include such supporting documentation as is
required by the Agreement Documents or City.
Construction Budget: The City’s budget for construction of the Project.
Construction Documents: The Plans, Specifications, and Drawings prepared and issued by the Design
Professional and approved by City for construction, meaning the documents are sealed by the
Design Professional (as required), acceptable for permitting and incorporated into the Agreement by
this reference. All amendments and modifications to the Construction Documents must be approved in
writing by City prior to incorporation into the Agreement.
Cost of the Work: The term Cost of the Work will mean costs necessarily incurred by Contractor in the
proper performance of the Work. Such costs will be at rates not higher than the standard paid at the
place of the Project except with prior consent of City.
Critical Path Method (CPM): A scheduling technique which identifies the logical sequence of the activities
occurring in a Construction Project, the anticipated time required to complete each activity in the
Project, and the activities that must be completed on schedule to finish the Project within the anticipated
time. Typically, activities are arranged in a network that shows both activities and their dependencies.
CPM is also used as a management
technique which enables contracting parties to predict when
activities may occur so that resources can be effectively used and limitations can be identified.
Critical Path: Critical Path is the sequence of project network activities which add up to the longest overall
duration. Once established in the Project Schedule, the Critical Path for the Project must not be
changed without prior written approval of City.
Day: Calendar day(s) unless otherwise specifically stated in the Agreement Documents.
Design Professional: The qualified, licensed person, firm or corporation who furnishes design and
construction administration services required under the Agreement Documents. These services may
include, but are not limited to: development of Construction Drawings and Documents, review of
Contractor Submittal(s), review of and
response
to
Requests for Information, approval and
certification of progress payment
applications,
construction administration, and construction
agreement close out.
Differing Site Conditions: Concealed or latent physical conditions or subsurface conditions at the Site
that, (i) materially differ from
the conditions indicated in the Agreement Documents, or (ii) are of an
unusual nature, differing materiallyfrom the conditions ordinarily encountered and generally recognized
as inherent in the Work at the general area of the Site. Caliche, rock, hard-digging or sandy/silty soil
encountered on a project is not considered a “Differing Site Condition.”
Drawings (Plans): Documents, which visually represent the scope, extent and character of the Work to
be furnished and performed by Contractor during the construction phase and which have been prepared
General Conditions
Revised: 7/20/22
GC-5 of 75
or approved by the Design Professional and City. These documents include Drawings that have reached
a sufficient state of completion and released by Design Professional solely for the purposes of review
and use in performing constructability or bid-ability reviews by Contractor and in preparing cost
estimates (e.g. Master Planning and Programming, Schematic Design, Design Development, and
Construction Drawings), but “not for construction.” Shop Drawings are not Drawings as so defined.
Final Acceptance: The City’s acceptance of the facility or project from the Contractor after all Work is
completed, tested, and inspected in accordance with the Agreement requirements. Final Acceptance
results in a Letter of Acceptance (LOA).
Fixed Price: A fixed price or amount for an Agreement Price, Scope of Work, materials, or other item
under an Agreement, Change Order, or other agreement, which City agrees, in writing, to pay instead
of the actual cost.
Float: The number of Days by which an activity can be delayed without lengthening the Critical Path and
extending the Agreement Time. Unless otherwise expressly agreed in writing, all Float belongs to City.
Laws, Regulations, or Legal Requirements: Any and all applicable laws, rules, regulations, ordinances,
codes and orders applicable to the Project of any and all governmental bodies, agencies, authorities
and courts having jurisdiction and any applicable provisions of the Development Agreement for the
Project (if any), including, without limitation, those provisions relating to the design and construction
of the Project.
Line Item: The individual elements of Work identified on a bid or other schedule and associated with a
price or a unit
price and quantity particular to that individual element of the Work.
Also refers to
individual items of work within the Schedule of Values.
Liquidated Damages: Designated damages for the City to collect as compensation upon a specific breach
(example: late delivery).
Long-Lead Item: Long-lead item refers to the equipment, product, or system that is identified at the
earliest stage of a project to have a delivery time long enough to affect directly the Critical Path/the overall
lead time of the project.
MAG: The Maricopa Association of Governments.
MAG Specifications: The most current version of the Uniform Standard Specifications for Public Works
Construction published by MAG.
MAG Standard Details: The most current version of the Uniform Standard Details as published by MAG.
Minor change: A change in the Work having no impact on cost or time or the City-approved design intent,
as determined by City.
Notice to Proceed (NTP): A written notice given by City to Contractor fixing the date on which
Contractor will start to perform Contractor’s obligations under the Agreement.
Project: The Project specified in the Agreement (including a Job Order).
Project Manager: The Project Manager designated in Article 1 of the Agreement, or any successor thereto
General Conditions
Revised: 7/20/22
GC-6 of 75
designated by City. The Project Manager has the authority to act on behalf of City, as delineated and
limited by the Agreement Documents and applicable law. And City will communicate with Contractor
through the Project Manager.
However, the Project Manager has no authority to bind City or City
Council in contravention of any City code, State or Federal statute or regulation, or these General
Conditions.
Project Schedule: The schedule for the completion of the Project agreed to and required by City.
Project Specific Conditions: Additional conditions which apply to the specific Project and Scope of Work
which are set forth in Exhibit D of the Agreement.
Project Team: The Project Team consisting of the Design Professional, Contractor, Project Manager, and
such others as City may designate.
Punch List: The list initially prepared by Contractor pursuant to the Agreement Documents, reviewed
and supplemented by the Project Manager (and at the sole option of the Project Manager, the Design
Professional) and
approved by City containing items of incomplete work not impacting Substantial
Completion, if allowed for under the Agreement, and to be completed or corrected by Contractor after
Substantial Completion and before Final Acceptance in accordance with the Agreement Documents.
Quality Assurance (QA) Testing: Testing performed to verify the accuracy and applicability of the QC
testing results and to ascertain that the
materials installed meet the specified levels of quality in
accordance with the Agreement Documents.
Quality Control (QC) Testing: Testing performed to assure that the materials installed comply with the
requirements in the Agreement Documents.
Requests for Information (RFIs): Formal written request from Contractor to City or Design Professional
for the Project
seeking
clarification or additional information needed for Contractor to properly
complete the Work or Services under the Agreement. City may require RFI’s to be submitted on a specific
form or in a specified format.
Schedule of Values (SOV): The specified document prepared by Contractor, and approved and accepted
by City, which divides the Agreement Price into pay items, such that the sum of all pay items equals
the Agreement Price for the construction phase Work, or for any portion of the Work having a separate
specified Agreement Price.
Scope of Work: The scope of work agreed to or required by City and incorporated into the Agreement as
Exhibit A.
Shop Drawings: All drawings, diagrams, schedules and other data specifically prepared for the Work
by Contractor or a
Subcontractor, Sub-subcontractor, manufacturer, supplier or distributor to
illustrate some portion of the Work.
Site: The land or premises on which the Project is located.
Specifications: The part(s) of the Agreement Documents for the construction phase consisting of written
technical descriptions of materials, equipment, construction systems, standards and workmanship as
applied to the Work and certain administrative details applicable thereto. Where specified, the Project
must be constructed using the current Uniform Standard Specifications and Details for Public Works
General Conditions
Revised: 7/20/22
GC-7 of 75
Construction as furnished by the Maricopa Association of Governments, as amended by City.
Subconsultant: A person, firm or corporation having an Agreement with Consultant/Contractor to
furnish services required as its independent professional associate or consultant with respect to the
Project.
Subcontractor: An individual or firm having a direct Agreement with Contractor or any other individual or
firm having an Agreement with the aforesaid contractors at any tier, who undertakes to perform a part
of pre-construction services or construction phase Work at the Site for which Contractor is responsible.
Subcontractors must be selected
through the Subcontractor selection process described in the
Agreement Documents, if any.
Substantial Completion: The date when the City determines that the Work (or separable units of Phases
as provided in the Agreement Documents) is essentially and satisfactorily complete in accordance with
the Agreement Documents such that
the Project is ready for use by the City for its intended purpose,
opening to the general public, full occupancy or use by City (including, without limitation, all separate
units, or rooms, facilities, access, income-generating areas, and all areas serving the general public, as
applicable, must be ready for full operation without material inconvenience or discomfort), including, to
the extent applicable to the Work, the following: all materials, equipment, systems, controls, features,
facilities, accessories, and similar elements are
installed in the proper manner and in operating
condition, inspected, and approved; surfaces have been painted; masonry and concrete cleaned with
any sealer or other finish applied; utilities and systems connected and functioning; site work
complete; permanent heating, ventilation, air conditioning, vertical transportation, and other systems
properly operating with proper controls; lighting and electrical systems
installed, operable and
controlled; paving completed, signage installed, and other work as applicable, has been performed to
a similar state of essential and satisfactory completion.
Supplier: A manufacturer, fabricator, distributor, or vendor having a direct Agreement with Contractor
or with any Subcontractor to furnish materials or equipment to be incorporated in the construction
phase Work by Contractor or any Subcontractor.
Total Float: Number of Days by which pre-construction services or construction phase Work or any part
of the same may be delayed without necessarily extending a pertinent Agreement Time or schedule
milestone in the Project Schedule.
Work: The entire completion of construction or the various separately identifiable parts thereof,
required to be furnished during the construction phase. Work includes and is the result of performing
or furnishing labor
and furnishing and incorporating materials, resources and equipment into the
construction, and performing
or furnishing services and documents as required by the Agreement
Documents for the construction phase.
Writing: Typing, printing, photography and other modes of representing or reproducing words in a
visible form, including email, and expressions.
SECTION 3 - STANDARD SPECIFICATIONS AND DETAILS
3.1
City operates under the latest revision of the MAG Specifications and MAG Standard
Details as amended by City.
City’s current amendment to the MAG Specifications, part of
the City’s Unified Development Manual, may be found and downloaded from City’s website
at http://www.chandleraz.gov.
General Conditions
Revised: 7/20/22
GC-8 of 75
3.2
Copies of the MAG Specifications and MAG Standard Details are available at the
Maricopa Association of Governments office, 302 N. 1st Avenue, Suite 300, Phoenix,
Arizona.
They
may
also
be
downloaded
from
their
website
at:
http://www.azmag.gov/Newsroom/Publications
3.3
The MAG Specifications and Standard Details and City’s amendments thereto are
incorporated into the Agreement by this reference.
SECTION 4 - CONTRACTOR’S RESPONSIBILITIES FOR CONSTRUCTION SERVICES
4.1
GENERAL
4.1.1
Contractor must construct the Work in accordance with the Agreement Documents and as
outlined in Exhibit A of the Agreement to the satisfaction of City, exercising the degree of
professional care, skill, diligence, quality and judgment that a professional construction
manager engaged, experienced and specializing in the construction management of
construction and facilities of similar scope, function, size, quality, complexity and detail in
urban areas throughout the United States comparable to Chandler, Arizona would exercise
at such time, under similar conditions. Contractor must, at all times, perform the Work in
conformance with sound and generally accepted engineering principles and construction
management and construction contracting practices.
4.1.2
If Contractor observes errors, discrepancies or omissions in the Agreement Documents,
Contractor must promptly notify the Design Professional and City and request clarification.
If Contractor, with the exercise of reasonable care, should have recognized such error,
inconsistency, omission, or
difference and fails to report it to City, and if Contractor
proceeds with the Work affected by such
observed errors, discrepancies or omissions,
without receiving such clarifications, Contractor does so at its own risk and will be liable to
City for damages resulting from proceeding without clarification.
4.1.3
Project Team and agents of each of them, testing agencies and governmental agencies with
jurisdictional interests will be provided access to the Work at reasonable times for their
observation, inspection, and testing. Contractor must provide proper and safe conditions
for such access.
4.1.4
Contractor must comply with, and require all Subcontractors to comply with, the Arizona
Contractors’ license laws, including all requirements with respect to being duly registered
and licensed.
4.1.5
Contractor must ensure that all employees performing any Work for which Contractor is
responsible
have a legal right to live and work in the United States.
In addition, all
compensation of any such employee must meet all applicablerequirementsoftheFairLabor
Standards Act (FLSA) and Federal Minimum Wage laws.
4.1.6
Contractor must comply with the Immigration Reform and Control Act of 1986 (IRCA).
Contractor understands and acknowledges the applicability of the IRCA activities.
Contractor agrees to comply with the IRCA while performing their work and to permit City
inspection of Contractor personnel records to verify such compliance.
4.1.7
Pursuant to MAG Specifications §§ 107.4, Contractor must report immediately any discovery
of archeological ruins or artifacts. Excavation must stop immediately so that City can decide
on the pertinent steps to follow such discovery.
General Conditions
Revised: 7/20/22
GC-9 of 75
4.1.8
All property owners that may be affected by the proposed construction activities must be
notified of the scope, duration of the construction activities and possible interference with
their day-to-day activities by Contractor prior to start of construction. In addition, individual
residential or commercial interferences, such as driveway restrictions, water outages, and
all other Work adjacent to residence/business, require 48-hour notification in advance of
specific adjoining Work. Notification may be through door hangers or other procedures
approved by the City.
4.1.9
Access must be maintained to adjacent properties at all times during construction. Where
property has more than one point of access, no more than one access will be restricted or
closed at any one time. Access to adjacent private driveways will be maintained during all
non-working hours.
4.1.10
Contractor must furnish and erect construction signs in accordance with Project
Specifications. The signs must be professionally prepared and subject to approval by City,
must be maintained by Contractor for the duration of the project, and must be removed by
Contractor during the final project clean up.
4.1.11
The number of signs required, the size, shape, installation requirements and information to
be included for construction signs is established on the detail sheet, provided, however,
signs must be a minimum of 4 foot by 8 foot and must be installed so that the bottom of
the sign is at least 4 foot above grade. No direct payment will be made for furnishing and
erecting construction signs. The cost thereof must be included in other items for which
direct payment is made. Sign locations will be determined by City.
4.1.12
All required construction signs must be installed by Contractor within 7 Days of Notice to
Proceed.
4.1.13
The Work to be accomplished under these Agreement Documents has been designed for
City by a Design Professional retained by City for this purpose. It is understood that normal
construction Administration for the purpose of interpretation of the Agreement Documents
is provided by City. Should any services of the Design Professional be required to assist in
the corrections of errors or omissions by Contractor, or services of the Design Professional
be required because of changes in structure or equipment where Contractor has requested
approval of substitute methods or material, or any other items detailed herein below, those
services will be provided by the Design Professional at the standard hourly rates previously
negotiated with City and must be paid for by the Contractor.
4.1.14
Contractor must reimburse City for costs incurred by the Design Professional for additional
services to the Project through no fault of City or the Design Professional including, but not
limited to, the following conditions:
a.
Additional Site visits, investigations, inspections, design work or reports by
the Design Professional which are required due to damages to existing
facilities or completed Work caused by the Contractor in his performance,
Contractor’s negligence, or Contractor’s Work which is rejected as defective
or as failing to conform to the Agreement Documents;
b.
Design Professional construction phase services rendered on the project
during the time the project remains incomplete after the Agreement date of
final completion will be charged to Contractor at a rate previously negotiated
City; and
General Conditions
Revised: 7/20/22
GC-10 of 75
c.
All retesting required due to the failure of Contractor’s Work to meet the
requirements of the Agreement Documents will be at Contractor’s expense.
All standby and travel time by the City’s testing lab, the Design Professional
or City due to Contractor’s inability to be prepared for testing at the agreed
upon time will be at the Contractor’s expense.
4.1.15
City may withhold from any payment otherwise due to Contractor any amounts necessary
to pay the Design Professional for such additional services as provided herein above.
4.1.16
Contractor will not be required to bear additional costs incurred by City due to errors by the
Design Professional.
4.2
CONTRACTOR’S PRE-AGREEMENT AND PRE-WORK DELIVERABLES
4.2.1
Prior to award of the Agreement, Contractor must execute Agreement and deliver to City.
Failure to do so may delay Agreement award. Contractor must also provide to City its
Contractor’s License classification and number and its Federal Tax I.D. number.
4.2.2
Before beginning any Work under the Agreement, Agreement must be fully executed by
City.
4.2.3
After Agreement award, City will issue to Contractor an award letter. At that time Contractor
must deliver to City such bonds and certificates of insurance with endorsements in such
amounts (and other evidence of insurance requested by City) required under Section 11 of
these General Conditions, and as the Agreement requires.
4.2.4
As evidence of Workmen’s Compensation Insurance, Contractor must, upon request,
provide a letter of certification from the Industrial Commission of Arizona that Contractor
is insured by the State Compensation Fund or is an authorized self-insurer or a certificate
of insurance issued by an insurance company authorized by the Insurance Department
of Arizona to write Workmen’s Compensation and Occupational Disease Insurance in the
State of Arizona.
4.2.5
Within 10 Days of the date of the executed Agreement letter issued by City, Contractor must
submit to City for review and acceptance the following items:
4.2.5.1
Comprehensive construction Project Schedule including a Critical Path
Method (CPM)
diagram schedule as described in Section 6.2. Project Schedule must be in Microsoft Project
standard file format. Within 10 Days of receipt of City’s comments, Contractor must make
all required corrections, adjustments, and additions to complete the Project Schedule and
resubmit to City for review.
4.2.5.2
Preliminary schedule of submittals and Shop Drawings. Within 10 Days of receipt of City’s
comments, Contractor must submit the corrected and completed schedule of Shop
Drawings submissions for approval. Contractor’s schedule of Shop Drawings and sample
submittals will be acceptable to City if it provides a workable arrangement for reviewing and
processing the required submittals.
4.2.5.3
Schedule of Values in a form specified by City reflecting the subcontracts and other
categories that will be used to submit Pay Applications for the Work. The total amount of
the Schedule of Values must not be greater than the Agreement Price. The Schedule of
Values will be reviewed at the Pre-Construction Conference and revised by Contractor within
10 Days after Pre-Construction Conference in response to comments and questions from
General Conditions
Revised: 7/20/22
GC-11 of 75
City.
Once accepted by City in writing, the Schedule of Values for the Project must not be
changed without the prior written approval of City.
4.2.6
Video Recording Requirement. Prior to performing any Work, Contractor must document
the existing conditions of the Site, all other areas where Work will occur and all adjacent
areas that may be impacted by the Work via digital video format. Contractor must video
record and index all areas, features, buildings and other public and private improvements
that could potentially be impacted by the Work. Video recording must be coordinated with
City. When video recording private property, Contractor must also coordinate the video
recording with the private property owner, if possible. Contractor must provide City with a
copy of said digital video format prior to performing any Work.
4.2.7
Aerial Drone Construction Photography.
4.2.7.1
If Agreement duration is greater than 90 calendar days, Contractor must engage a
professional unmanned aerial vehicle (UAV) aerial pilot to photograph the Site prior to
construction mobilization, at three-month intervals during construction, and following final
inspection. Drone camera specifications must meet the following minimum requirements:
a.
1-inch CMOS
b.
Pixels: 20M
c.
FOV 84 8.8 mm/24 mm (35 mm format equivalent) f/2.8-f/11 auto focus at 1 m-
d.
For photographing: 16.9 Aspect Ratio: 5472x3078
e.
For video shooting: MP4/MOV/H.264
f.
FHD: 1920x1080 120p @100Mbps
g.
File format: High Definition (HD) JPEG for digital photos and HD MPEG 4 for
digital video.
h.
All metadata to be recorded including GPS data and preserved with photographs
provided.
Interval
JPEG
3 month intervals
At an altitude (AGL) between
70-90 ft.
3 month intervals
Images to be taken every 50-
100 ft. to be determined based
on project scope.
4.2.7.2
Drone photos to be taken in sequential geographical order and then organized and provided in
the same manner unless otherwise specified.
4.2.7.3
Photos to be provided digitally via an online file share service and/or by a USB drive to contractor.
4.2.7.4
Drone pilots to obey ALL local (city, county, state) UAV regulations as well as FAA UAV
guidelines including, but not limited to, conducting all flights during daylight hours, not exceeding
maximum altitude ceilings (depending on area), not flying over people, yielding to other aircraft.
4.2.7.5
Drone pilots must fly drone within visual line of sight (VSOL) and have visual spotter when
needed. Drone pilots only to operate in favorable weather conditions when minimum visibility is
3 miles or greater.
4.2.7.6
Drone pilots to conduct a preflight checklist and visually inspect the entire flight path prior to flying
to ensure a safe flight.
General Conditions
Revised: 7/20/22
GC-12 of 75
4.2.7.7
Airspace Authorizations. Operations in Class G airspace are allowed without air traffic control
(ATC) permission. Operations in Class B, C, D and E airspace need ATC authorization. Drone
pilots to schedule each flight in advance and based on airspace if required will notify nearby
airports/control towers, etc.
4.2.8
Government Approvals and Permits.
4.2.8.1
Contractor must obtain all necessary permits for the Work and pay all applicable fees,
unless otherwise noted on the Plans and in the Specifications. City permit fees will be paid
internally by City. For bidding purposes, an allowance for all permit fees is included in the
bid schedule under the item “allowance for permit fees.” The Contractor will be paid for
the actual cost of the permit fees upon submitting a receipt showing the fee Contractor
has paid. Excluded from the above allowance are items such as all costs incurred by the
Contractor in securing the permit except for the actual permit fee established by the
agency, cost for all shutdowns or outages, cost for pole bracing, cost of permits for
construction water, cost of construction water, cost for any additional insurance
requirements, cost for any licenses, and other similar type costs. Contractor is specifically
notified of the need to obtain the necessary environmental permits or file the necessary
environmental and regulatory permit notices.
4.2.8.2
Copies of all permits and the associated notices must be provided to City prior to starting
the permitted activity.
4.3
PRE-CONSTRUCTIONCONFERENCE
4.3.1
Prior to the commencement of any Work, City will schedule a Pre-Construction Conference.
4.3.2
The purpose of this Conference is to establish a working relationship between Contractor,
the utility firms, and various City agencies. The agenda will include critical elements of the
Work schedule, submittal schedule, cost breakdown of major lump sum items, Payment
Requests and processing, coordination with the involved utility firms, and emergency
telephone numbers for all representatives involved in the course of construction.
4.3.3
Minimum attendance by Contractor at any mandatory meeting with City must be (1)
Contractor’s Representative, who is authorized to execute and sign documents on behalf
of the firm, (2) Contractor’s on-site Superintendent, and (3) Contractor’s Safety Office,
or other employee responsible for safety.
4.4
PERFORMANCE OF THE WORK (INCLUDING FIELD MEASUREMENTS,
SUBCONTRACTORS, AND SUPPLIERS)
4.4.1
Unless otherwise provided in the Agreement Documents to be the responsibility of City or a
separate
Contractor, Contractor must provide through itself or Subcontractors the
necessary supervision, labor, inspection, testing, start-up, material, equipment, machinery,
temporary utilities and other temporary facilities to permit Contractor to complete the
Work consistent with the Agreement Documents.
4.4.2
Contractor must perform all construction activities efficiently and with the requisite
expertise, skill and competence to satisfy the requirements of the Agreement Documents.
Contractor must at all times exercise complete and exclusive control over the means,
methods, safety, sequences and techniques of construction.
4.4.3
Contractor’s Superintendent must be present at the Site at all times that material Work
General Conditions
Revised: 7/20/22
GC-13 of 75
under this Agreement is taking place. Contractor’s Superintendent or designee must be
present at the Site at all times any other Work under this Agreement is taking place.
Superintendent must not be replaced without written notice to City. Whenever the
Superintendent is not present at a particular part of the Work where the City or Design
Professional may desire to inform the Contractor relative to interpretation of the Drawings
and Specifications or to disapproval or rejection of materials or Work performed, the City
or Design Professional may provide such information in writing to the foreman or other
worker in charge of the particular part of the Work in reference to which the information is
given. Information so given will be as binding as if given to the Superintendent.
4.4.4
All elements of the Work must be under the direct supervision of a foreman or his
designated representative on the Site who must have the authority to take actions required
to properly carry out that particular element of the Work.
4.4.5
Working Hours. Except in connection with the safety or protection of persons or the Work
or property at the Site or adjacent thereto, and except as otherwise indicated, all Work at
the Site must be performed during regular working hours, and Contractor will not permit
overtime work or the performance of Work on Saturday, Sunday or any legal holiday without
City’s written consent given after prior written notice to City. If it will become absolutely
necessary to perform Work at night or on Saturdays, Sundays or legal holidays, the City
must be informed at least 24 hours in advance of the beginning of performance of such
Work. Only such Work will be done at night as can be done satisfactorily as determined by
the City. Good lighting and all other necessary facilities for carrying out and inspecting the
Work must be provided and maintained at all points where such Work is being done.
Further, unless such non-normal work hours are performed at City’s request or required by
the Agreement Documents, Contractor must pay to City all additional costs incurred by City
by reason of such non-normal working hours. Expenses incurred by City for overtime
compensation must be reimbursed by Contractor as follows: (i) City staff at the rate set forth
in current City Fee Schedule as published on City website, (ii) Design Professional and staff
at the standard hourly rates previously negotiated with City, and (iii) all others at actual cost
plus ten percent administrative overhead. Such costs may be deducted by City from any
payments due to Contractor. Provided, however, if overtime work or work during other
than normal hours is at the request of City and not due to Contractor delay, City will pay the
cost of City overtime expenses.
4.4.6
Where the Agreement Documents require that a particular product be installed or applied
by an applicator approved by the manufacturer, it is Contractor’s responsibility to ensure
the Subcontractor employed for such work is approved by the manufacturer. All materials
and equipment must be stored, applied, installed, connected, erected, used, cleaned and
conditioned in accordance with the instructions of the applicable manufacturer, fabricator,
supplier or distributor, except as otherwise provided in the Agreement Documents; but no
provisions of any such instructions will be effective to impose on City of Design Professional
responsibility for the means, methods, techniques, sequences or procedures of
construction or for safety precautions incident thereto.
4.4.7
Before starting the Work, Contractor must carefully study and compare the various
Plans, Drawings, other Agreement Documents, and Specifications relative to that portion
of the Work, as well as the information furnished by City, must take field measurements of
any existing conditions related to that portion of the Work and must observe any conditions
at the Site affecting it. The exactness of grades, elevations, dimensions, or locations given
on any Drawings, or the Work installed by other contractors, is not guaranteed by City.
General Conditions
Revised: 7/20/22
GC-14 of 75
4.4.8
Before ordering materials or doing Work, Contractor and each Subcontractor must verify
measurements
at
the
Site
and
will
be
responsible
for
the
correctness
of
such
measurements. No extra charge or compensation will be allowed because of differences
between actual dimensions and the dimensions indicated on the Agreement Documents,
including the Drawings.
4.4.9
Ground Level Construction Photography.
4.4.9.1
The Contractor must furnish progress photographs of the project. The photographer
selected by the Contractor must be approved by the City and must be either a commercial
photographer or an individual experienced and equipped for such photography.
4.4.9.2
The Contractor must deliver to City all photographs taken during that period with each
application for payment. If the current photographs do not accompany the application, the
application will not be reviewed and will be returned to the Contractor as incomplete.
4.4.9.3
Photographs must be identified by use of typewritten labels affixed to the back of the
photograph. The label must provide a description of the view, the direction from which the
photograph was taken, the name of the project, City’s project number, the name of
Contractor and the date of the photography. The stationing must also be included for all
pipeline installations.
4.4.9.4
Photographs must be taken during the construction period and must be of aesthetic
composition and depict the progress of the Work from the beginning of construction
through and including the finished product. City may vary the specified frequency so that
significant progress or changes can be recorded on the photographs.
4.4.10
Underground Facilities.
4.4.10.1
The existence and number of facilities as shown on the Plans are estimated from
information furnished by the particular utility. Contractor is responsible for field verification
and location of all utilities prior to the start of construction. No field work will be allowed to
start until Contractor has contacted Arizona 811 and all affected utilities have been located.
In addition, Contractor must expose and physically locate all potentially conflicting utilities
prior to construction. The actual locations of the utilities must be compared to locations
shown on the Plans and any required changes in alignment and grade must be made at the
time of construction in consultation with Project Manager. It is generally recognized and
Contractor should anticipate that information from Arizona 811 or information from utility
companies during project design, frequently fails to disclose all underground facilities. The
fact that more utility lines or other underground facilities are located in the Project Site than
shown on the Project Plans does not constitute an “unforeseen Condition” and such
undisclosed underground facilities do not differ materially from the conditions which
Contractor should expect. The provisions of Sections 105.4, 105.6, 107.11 and 109.8.1 of the
MAG Uniform Standard Specifications for Public Works Construction apply and are
incorporated herein by this reference.
4.4.10.2
Contractor is responsible for all coordination with utility companies. The provisions of
Sections 105.4, 105.6, 107.11 and 109.8.1 of the MAG Uniform Standard Specifications for
Public Works Construction strictly apply and no additional compensation will be paid to
Contractor for delays due to utility work on the project.
4.4.11
Relocation of Existing Water Meters. When a service line has been extended and a line
General Conditions
Revised: 7/20/22
GC-15 of 75
setter installed in a meter box, City forces will re-install meter. No compression fittings will
be utilized.
4.4.12
Water Turn-On or Turn-Off.
4.4.12.1
Contractor must coordinate all water line turn-ons and turn-offs through the City.
Application must be made to the Municipal Utility Division and Contractor must pay the
established charges. The City will close existing valves, but will not guarantee a bone-dry
Shutdown.
4.4.12.2
Contractor must notify all customers affected by the turn-off not less than 48 hours in
advance. Notification must be in writing, must give the reason for the turn-off and must
give the estimated time and duration that water service will be interrupted. Contractor is
also notified that water turn-off will not be permitted on the Day before and after
Thanksgiving Day and Christmas Day.
4.4.12.3
No direct payment will be made to Contractor for turn-ons or turn-offs. Costs associated
therewith will be included in other items for which direct payment is made.
4.4.13
Tests and Inspections.
4.4.13.1
Contractor must give City timely (at a minimum, twenty-four hours) notice of readiness of
the Work for all required inspections, tests or approvals. Contractor must give timely notice
to City in advance of backfilling or otherwise covering any part of the Work so that city
representative may, if desired, observe such part of the Work before it is concealed.
Whenever Contractor varies the normal period during which Work or any portion of it is
carried on each Day, Contractor must give timely notice to City so that city representative
may, if desired, be present to observe the Work in progress. If Contractor fails to give such
timely notice, any Work done in the absence of city representative will be subject to
rejection. If Contractor gives such notice to City, but then is not ready for such inspections,
tests, approvals or observations at the time so noticed, Contractor must reimburse City for
all costs incurred by the attendance of city representatives.
4.4.13.2
If any law, ordinance, rule, regulation, code, or orders of any public body having jurisdiction
requires any Work (or part thereof) to be inspected, tested or approved, Contractor (unless
another party is specified in the Agreement Documents) must assume full responsibility
therefor, pay all costs in connection therewith and furnish City the required certificates of
inspection, testing, or approval. Contractor must also be responsible for and must pay all
costs in connection with any inspection or testing required by the Specifications in
connection with City's acceptance of a manufacturer, fabricator, supplier or distributor of
materials or equipment proposed to be incorporated in the Work, or of materials or
equipment submitted for approval prior to Contractor's purchase thereof for incorporation
in the Work. The cost of all other inspections, tests and approvals required by the
Agreement Documents will be paid by City (unless otherwise specified).
4.4.13.3
All inspections, tests or approvals other than those required by law, ordinance, rule,
regulation, code or order of any public body having jurisdiction must be performed by
organizations acceptable to City and by the Design Professional if so specified.
4.4.13.4
Neither observations by City, the Design Professional nor inspections, tests or approvals by
others will relieve Contractor from their obligations to perform the Work in accordance with
the Agreement Documents.
General Conditions
Revised: 7/20/22
GC-16 of 75
4.4.14
Uncovering Work. If any Work that is to be observed, inspected, tested or approved is
covered without written concurrence of City, it must, if requested by City be uncovered for
observation. Unless Contractor has given City timely notice of Contractor's intention to
cover such Work and City has not acted with reasonable promptness in response to such
notice, Contractor must furnish all necessary labor, material and bear all the expenses of
such uncovering, exposure, observation, inspection and testing and of satisfactory
reconstruction, including compensation for additional professional services, and an
appropriate deductive Change Order will be issued.
4.4.15
In all cases of interconnection of its Work with existing or other Work, Contractor must verify
at the
Site all dimensions relating to such existing or other Work. Any errors due to
Contractor’s failure to so verify all such grades, elevations, locations or dimensions must
be promptly rectified by Contractor without any increase in the Agreement Price. Any
design errors or omissions noted by
Contractor during this review must be reported
promptly to City.
4.4.16
Contractor must establish and maintain all construction grades, lines, levels, and
benchmarks, and will be responsible for accuracy and protection of same. This Work
must be performed or supervised by a licensed civil engineer or surveyor in the State of
Arizona.
4.4.17
Contractor must photograph all buried piping of greater than four (4) inches in diameter
prior to backfill.
4.4.18
Contractor isresponsible for the proper performance of the work of Subcontractors and any
acts and omissions in connection with such performance.
Nothing in the Agreement
Documents is intended or deemed to create any legal or contractual relationship
between City and any Subcontractor or Sub-Subcontractor, including but not limited to any
third-party beneficiary rights.
4.4.19
Contractor
must
coordinate
the
activities
of
all
Subcontractors. Contractor
must
coordinate performance of the Work with City’s Public Works & Utilities Department and
other departments or agencies within City. The Design Professional and other contractors
or parties involved in the Project. If Cityperformsotherworkonthe Projector at the Site with
separate contractors under City’s control, Contractor agrees to cooperate and coordinate
its activities with those of such separate contractors so that the Project can be completed
in an orderly and coordinated manner without unreasonable disruption.
4.4.20
Contractor will not substitute or change any Subcontractor or Supplier without the prior
written approval of City. Any substitute or replacement Subcontractor or Supplier must
be required to meet the same qualifications and selection criteria and process as the
original Subcontractor or Supplier. If a Subcontract/Supplier selection plan has been
approved by City, Contractor will
follow that plan unless otherwise approved by City in
writing.
4.4.21
Contractor must not change or replace any members of its Project team, including
Contractor’s Representative, Project Manager, or Superintendent, without an explanation for
the change being given to City, and receiving prior written approval of the change from City,
which approval will not be unreasonably withheld.
4.4.22
Subcontractors whose scope of work has a value greater than 15% of the total Agreement
Price are
required to furnish performance and payment bonds to Contractor, unless
General Conditions
Revised: 7/20/22
GC-17 of 75
otherwise approved in writing by City.
4.4.23
Contractor must comply with MAG Specification § 108.2 (E) unless otherwise specified in
Agreement Documents.
4.5
CONTROL OF THE PROJECT SITE
4.5.1
Throughout all phases of construction, including suspension of Work, Contractor must keep
the Site reasonably free from debris, trash and construction wastes to permit Contractor to
perform its
construction services efficiently, safely and without interfering with the use of
adjacent land areas.
Prior to Final Acceptance of the Work, or a portion of the Work,
Contractor must remove all debris,
trash, construction wastes, materials, equipment,
machinery and tools arising from the Work or applicable portions thereof to permit City
to occupy the Project or a portion of the Project for its intended use.
4.5.2
Contractor must take whatever steps, procedures or means necessary to prevent dust
nuisance due to construction operations. The dust control measures must be maintained
at all times to the satisfaction of City and in accordance with the requirements of the
Maricopa County Bureau of Air Pollution Control Rules and Regulations.
4.5.3
Contractor must maintain Americans with Disabilities Act (ADA) and American National
Standards
Institute (ANSI)
accessibility requirements during construction activities,
including
without
limitation
compliance
with
the
2010
regulations
governing
implementation of the ADA to the extent
applicable.
ADA and ANSI accessibility
requirements must include, but not be limited to, parking, building access, areas of refuge,
and emergency exit paths of travel. Contractor i s responsible for the coordination of all
Work to minimize disruption to residents and the public.
4.5.4
Only materials and equipment used directly in the Work will be brought to and stored on the
Site by Contractor. When equipment is no longer required for Work, it must be removed
promptly from
the Site. Protection of construction materials and equipment stored at the
Site from weather, theft, damage and all other adversity is solely the responsibility of the
Contractor.
4.5.5
Contractor agrees all persons working on the Site must act at all times in the best interest
of the Project and will comply with all applicable rules and regulations reasonably set forth
by City related to the Site. Notwithstanding the foregoing or anything in this Agreement to
the contrary, City may remove from the Site any individual who City deems in their
reasonable discretion to be creating a disturbance or causing any problem on the Site.
4.5.6
Contractor will be responsible to City for the acts and omissions of Contractor’s employees,
Subcontractors and their agents and employees, and any other person performing any of
the Work under an Agreement with Contractor, or claiming by, through or under Contractor,
for all damages, losses, costs and expenses resulting from such acts or omissions.
4.5.7
City may conduct criminal, drive history, and all other requested background checks of
Contractor
and Subcontractor personnel performing Work or who have access to City’s
information, data, or facilities in accordance with City’s current background check policies,
or the provisions of the Project Specific Conditions. Any officer, employee or agent that
fails to background check must be replaced immediately.
4.5.8
City will have a final authority, based upon security reasons: (i) to determine when
General Conditions
Revised: 7/20/22
GC-18 of 75
security clearance ofContractor’s andSubcontractor’s personnelisrequired;(ii)todetermine
the nature of the security clearance, up to and including fingerprinting personnel; and
(iii) to determine whether or not any individual or entity may provide Services or perform
Work under the Agreement.
4.5.9
If City objects to any personnel for any reasonable cause, then Contractor must, upon notice
from City, remove such individual from the Project.
4.6
PROJECT SAFETY
4.6.1
The Project and all Work performed in relation thereto is governed by applicable provisions
of the federal laws, including but not limited to, the latest amendments of the following:
a.
Williams-Steiger Occupational Safety & Health Act of 1970, Public Law, 91-596.
b.
Part 1910 and Part 1926 – Occupational Safety and Health Standards,
Chapter XVII of Title 29, Code of Federal Regulations.
c.
Part 1518 – Safety and Health Regulations for Construction, Chapter XIII of
Title 29, Code of Federal Regulations.
4.6.2
Contractor is responsible for safety of the job Site for employees of Contractor as well
as for members of the general public and others who may drive or walk through or be at
the Site.
4.6.3
Contractor recognizes the importance of performing the Work in a safe manner so as to
prevent damage, injury or loss to: (i) all individuals at the Site, whether working or visiting;
(ii) the Work, including materials and equipment incorporated into the Work and stored On-
Site or Off-Site; and (iii) all other property at the Site or adjacent thereto, including trees,
shrubs, lawns, walks, pavements, roadways, structures and utilities not designated for
removal, relocation or replacement in the course of construction; and (iv) the owners or
tenants of adjacent property and their patrons, employees and invitees.
4.6.4
Contractor assumes responsibility for implementing and monitoring all safety precautions
and programs related to the performance of the Work.
4.6.5
Contractor must provide a “competent person’ as required by O.S.H.A regulations. The
“competent person” must be identified at the Pre-Construction Conference with City
advised in writing of any changes.
4.6.6
The “competent person” must make routine daily inspections of the Site and must hold
weekly safety meetings with Contractor’s personnel, Subcontractors and others as
applicable.
4.6.7
Contractor and Subcontractors must comply with all legal and regulatory requirements
relating to safety, as well as any City specific safety requirements set forth in the Agreement
Documents, provided that such City-specific requirements do not violate any applicable
legal and regulatory requirements.
4.6.8
Contractor will immediately report in writing any safety-related injury, loss, damage or
accident
arising from the Work to Project Manager and, to the extent mandated by Legal
Requirements, to all government or quasi-government authorities having jurisdiction over
safety-related matters involving the Project or the Work.
General Conditions
Revised: 7/20/22
GC-19 of 75
4.6.9
Contractor’s responsibility for safety under this Section is not intended in any way to
relieve Subcontractors and Sub-Subcontractors of their own contractual and legal
obligations and responsibility for (i) complying with all Legal Requirements, including those
related to health and safety matters, and (ii) taking all necessary measures to implement
and monitor all safety precautions and programs to guard against injury, losses, damages
or accidents resulting from their performance of the Work.
4.6.10
As between City and Contractor, Contractor is responsible to City for any and all the safety
issues relating to the Work on the Project. Contractor must administer and manage the
safety program. This will include, but not necessarily be limited to review of the safety
programs
of
each
Subcontractor. Contractor must monitor the establishment and
execution of compliance with all applicable regulatory and advisory agency construction
safety standards. Contractor’s responsibilityfor review, monitoring, and coordination of the
Subcontractor’s safety programs will not extend to direct control over execution of the
Subcontractors’ safety programs. Notwithstanding Contractor’s safety obligations to City,
it is agreed and understood that each individual Subcontractor will remain controlling
employer responsible for the safety programs and precautions applicable to its own work
and the activities of other’s work in areas designated tobecontrolledbysuchSubcontractor
for purposes of workers compensation insurance coverage.
4.6.11
Nothing in this agreement will relieve Contractor of his responsibility to maintain traffic,
structures, etc., as noted on the Plans, Specifications, and Project Specific Conditions.
Contractor is responsible to provide all necessary shoring, bracing and trench support as
is necessary to maintain traffic structures, etc., as stipulated in the Plans, Specifications, and
Special Provisions. If the stability of adjoining building, walls, roadways, etc., is endangered
by Contractor’s
excavation, shoring, bracing, or under pinning must be provided as
necessary to ensure project safety. Cost for shoring, bracing, underpinnings, and trench
support will be included in the appropriate items listed in the Agreement Price, and no
additional payment will be made for this work.
4.7
MATERIALS QUALITY, SUBSTITUTIONS, AND SHOP DRAWINGS
4.7.1
Quality Control and Quality Assurance Testing.
4.7.1.1
All construction materials to be used or incorporated in the Project are subject to
inspection, Quality Control & Quality Assurance Testing, and approval or rejection by City.
Any material rejected by City must be removed immediately and replaced in an acceptable
manner to City at no additional cost to City. When QC/QA tests indicate noncompliance
with the Agreement
Documents, retesting must be performed by the same testing
laboratory that performed the tests that indicated noncompliance.
4.7.1.2
The Contractor must establish, provide, and maintain an effective Quality Control Testing
Program (QCTP). The Contractor must develop his own program or procure the services of
a consultant. In either case, the party performing the tests must be currently certified by the
National Bureau of Standards in the National Voluntary Laboratory Accreditation Program
(NVLAP) for construction
services or the AASHTO Accreditation Plan (AAP) for Soils,
Asphalt and Concrete. The Contractor must provide all support necessary to perform QC
and QA testing and sampling (i.e.
shoring for testing trench backfill, backhoes, motor
graders, loaders, etc. to facilitate testing and sampling). The City will perform the QA testing.
4.7.1.3
The Contractor must submit a written QCTP to the City as a required submittal. The
Contractor must not begin Work until the Quality Control Program has been reviewed and
General Conditions
Revised: 7/20/22
GC-20 of 75
accepted by the City. Resumes of all personnel that will be associated directly or indirectly
with the QCTP must be included.
4.7.1.4
The QCTP must include, but not be limited to, on-site/field and laboratory testing of all
material delivered to the Site and any existing materials or conditions pertinent to the
project.
4.7.1.5
All testing must be under the direction of a Professional Engineer registered in the State of
Arizona, knowledgeable in Materials Testing. All “Test Report” forms must be stamped by
said Engineer.
4.7.1.6
The written QCTP will set forth the responsibilities of the engineer, project manager,
supervisory
personnel and each technician assigned to this project. Substitutions or
replacement of personnel mustrequire priorwrittenapprovalbythe City. Allpersonnelmust
be proficient within their assigned duties and possess certification(s) commensurate with
their position and responsibilities. The minimum certification(s) for each technician must
be NICET Level II, Arizona Technical Testing Institute, American Concrete Institute, or other
nationally recognized program applicable to the project and approved by the City of
Chandler.
The written QCTP must include a description of the
required field and
construction materials laboratory tests, including required frequencies that meet
the
minimums established herein.
4.7.1.7
The Contractor must establish a system to record and report all material test results.
The
daily test reports must include, but not be limited to:
a.
Test designation;
b.
Date of test;
c.
Name of tester;
d.
Location of test/sample (station and offset);
e.
Product suppliers and product codes (as applicable);
f.
Depth/elevation of test/sample;
g.
Test result;
h.
Control requirement(s);
i.
Cause of rejection (if applicable);
j.
Results of retests (if applicable); and
k.
Remedial action (if applicable).
4.7.1.8
The Contractor must submit test results to the designated City representative.
4.7.1.9
The Contractor must also submit a weekly report to the City summarizing the testing
and construction activities completed by emailing the report to the email addresses noted
above. All weekly reports must be submitted simultaneously to the Contractor and the
City of Chandler. The report must include individual summary sheets for each utility line,
structure, and portion of the pavement section. Cores must be numbered sequentially
throughout the Project. Re-cores must reference the original core by number and must
contain the averaged values for thickness and density. Total pavement thickness must be
reported. Vertical location of tests for underground utilities must indicate the depth of the
General Conditions
Revised: 7/20/22
GC-21 of 75
excavation at the location of the test (i.e., cut to flow line [if applicable], depth to bottom
or top of pipe, etc.). Density tests must be numbered sequentially. If the minimum number
of tests has not been performed per the written QCTP, this must be stated in the weekly
summary report with an explanation of the circumstances.
4.7.1.10
The City will maintain a copy of the Project test results and weekly reports in the Project
file. In cases where quality control activities do not comply with the Agreement provisions,
the City may:
a.
Order the Contractor to replace ineffective or unqualified quality control
personnel.
b.
Order the Contractor to stop operations until appropriate corrective action is
taken.
4.7.1.11
Although minimum testing requirements are specified herein, the Contractor bears full
responsibility for the quality of the materials and their installation and may elect to
perform additional testing beyond the requirements set forth herein to ensure compliance.
4.7.1.12
The Quality Control requirements contained in this Section are in addition to and separate
from
Quality Assurance Testing, which will be performed by the City of Chandler or its
representative. If the Quality Assurance test results are not in agreement with the Quality
Control test results, the Contractor will have the option to retain a third party consultant for
referee tests. The third party
consultant must meet the same requirements as the
consultant performing the Quality Control Testing. The results of the third party will be
binding. All cost incurred by the referee testing will be the Contractor’s expense. If the
Contractor elects not to retain a third party for referee testing, the City of Chandler test
results will prevail.
4.7.1.13
Except as otherwise noted within this Section, Work or materials required by this Section are
non- pay items. Per MAG Section 101, a non-pay item is an item of Work for which no
separate payment will be made, the cost of which is to be included as an incidental cost
for associated item(s) included on the Bid Schedule or Schedule of Values.
4.7.2
Trade Names and Substitutions.
4.7.2.1
Substitutions prior to bid will only be considered if in compliance with Arizona Revised
Statute § 34-104.
4.7.2.2
Contractor, if requested by City, must submit Samples or any additional information that
may be necessary to evaluate the acceptability of the substitution.
4.7.2.3
City will make the final decision and will notify Contractor in writing as to whether the
substitution has been accepted or rejected.
4.7.2.4
If City does not respond within 15 working days, Contractor must continue to perform the
Work in accordance with the Agreement Documents and the substitution will be considered
rejected.
4.7.3
Shop Drawings.
4.7.3.1
Contractor must prepare and submit Shop Drawings which show details of all Work to insure
proper installation of the Work using those materials and equipment specified under the
approved Plans and Specifications.
General Conditions
Revised: 7/20/22
GC-22 of 75
4.7.3.2
Contractor must submit a schedule of Shop Drawing submissions, which avoids bulk
submissions to the extent reasonably possible, with the Project Schedule for City approval.
The schedule of Shop Drawing submissions must include all of the items for which Shop
Drawings are required by the Agreement Documents, including the Specifications. Unless
otherwise noted, Shop Drawings will not be required for items specified or detailed in
the Uniform Standard Specifications and Details or the Technical Specifications.
4.7.3.3
Shop Drawings must be numbered consecutively for each Specification section and must
accurately and distinctly present the following:
a.
All working and erection dimensions.
b.
Arrangements and sectional views.
c.
Necessary details, including complete information for making connections
between work under this Agreement and work under other Agreements.
d.
Kinds of materials and finishes.
e.
Parts list and description thereof.
4.7.3.4
Each Drawing or page must include:
a.
Project Name, City of Chandler Project Number and descriptions.
b.
Submittal date and space for revision dates.
c.
Identification of equipment, product or material.
d.
Name of Contractor and Subcontractor.
e.
Name of Supplier and Manufacturer.
f.
Relation to adjacent structure of material.
g.
Physical dimensions clearly identified.
h.
ASTM and Federal Specifications references.
i.
Identification of and justification for deviations from the Agreement
Documents.
j.
Contractor’s stamp, initialed or signed, dated and certifying the review
of
submittal,
certification of field measurements and compliance with
Agreement.
k.
Location at which the equipment or materials are to be installed.
4.7.3.5
Location will mean both physical location and location relative to other connected or
attached
material. City will return unchecked any submittal, which does not contain
complete data on the Work and full information on related matters.
4.7.3.6
Stock or standard drawings will not be accepted for review unless full identification and
supplementary information is shown thereon in ink or typewritten form.
4.7.3.7
Contractor must schedule, prepare and submit all Shop Drawings in accordance with a time-
table
that will allow its suppliers and manufacturers sufficient time to fabricate,
manufacture, inspect,
test and deliver their respective products to the project Site in a
timely manner so as to not delay the complete performance of the Work.
General Conditions
Revised: 7/20/22
GC-23 of 75
4.7.3.8
If the Shop Drawings show departures from the Agreement requirements, Contractor
must make specific mention thereof in the Letter of Transmittal; otherwise review of such
submittals by City will not constitute review of the departure. Review of the Drawings will
constitute review of the specific subject matter for which the Drawings were submitted
and not of any other structure, material, equipment, or apparatus shown on the Drawings.
4.7.3.9
The review of Shop Drawings will be general and will not relieve Contractor of responsibility
for the accuracy of such Drawings, nor for the proper fitting and construction of the Work,
nor for the furnishing of materials or Work required by the Agreement. No construction
called for by Shop Drawings will be initiated until such Drawings have been reviewed and
approved by City.
4.7.3.10
The procedure in seeking review of the Shop Drawings will be as follows:
a.
Contractor must submit complete sets of Shop Drawings and other
descriptive data as specified in this Section.
b.
After Contractor’s submittal or resubmittal of Shop Drawings, if Contractor
has submitted
Shop Drawings in accordance with the City-approved
submittal schedule, or upon resubmission, City will be provided with three
(3) calendar weeks for review. Should City
require additional review time
above and beyond the three (3) calendar weeks, Contractor may ask for a
time extension or monetary compensation, if they can present valid, factual
evidence that actual damages were incurred by Contractor. City will
determine
the
amount
of
the
time
extension
or
the
monetary
compensation to be awarded Contractor, if any, in accordance with City’s
Policy Statement for Calculating Delays and Damages, Appendix 1.
4.7.3.11
Contractor will be responsible for all extra costs incurred by City caused by Contractor’s
failure to comply with the procedure outline above.
4.7.4
Long Lead Time Items. Contractor must submit Shop Drawings, as required by the Engineer,
on all long lead items to be furnished and installed as part of the project within 10 Days
after
the date of the executed Agreement letter issued by City. In addition,
Contractor must order all long lead items to be furnished and installed as part of this
Project within 3 Days after receiving approved Shop Drawings. For all long lead times for
which Shop Drawings are not required, Contractor must order said long lead items within
15 Days after the date of the executed Agreement letter issued by City. Within 2 Days
after ordering long lead items, Contractor must supply copies of all purchase orders,
along with an accurate delivery schedule from the supplier.
4.7.5
Construction Water. If Contractor uses water from City’s water system for construction
water,
Contractor must obtain a fire hydrant meter from City of Chandler Utility Services
(480-782-2280) and all construction water must be obtained through the hydrant meter.
Contractor must pay all fees related to the hydrant meter and all water bills for construction
water. All cost for meters and construction water will be included in the Agreement Price.
4.8
PROJECT RECORD DOCUMENTS
4.8.1
During the construction period, Contractor must maintain at the jobsite a full-size set of
prints of
the Construction Document Drawings and Shop Drawings for Project Record
Document purposes.
General Conditions
Revised: 7/20/22
GC-24 of 75
4.8.2
Contractor must mark these Drawings to indicate the actual installation where the installation
varies from the original Construction Documents. Contractor must give particular attention
to information
on elements that will be concealed, which would be difficult to identify or
measure and record later. Items required to be marked include but are not limited to:
a.
Dimensional changes to the Drawings.
b.
Revisions to details shown on Drawings.
c.
Locations and depths of underground utilities.
d.
Revisions to routing of piping and conduits.
e.
Actual equipment locations.
f.
Changes made by Change Order or Addendum.
g.
Details not on original Agreement Drawings.
4.8.3
Contractor must mark completely and accurately Project Record Drawing sets of
Construction Documents.
4.8.4
Contractor must mark Project Record Drawings sets with red erasable colored pencil.
4.8.5
Contractor must note Request for Information (RFI) Numbers and Change Order numbers,
etc., as required to identify the source of the change to the Construction Documents.
4.8.6
Contractor must submit Project Record Drawing sets and Shop Drawings to City or its
representative for review and comment.
4.8.7
Upon receipt of the reviewed Project Record Drawings from City, Contractor must correct
any deficiencies and omissions to the Drawings and submit the final original of the Project
Record Drawings to City prior to Final Payment.
4.8.8
Project Manager will review the Project Record Drawings monthly prior to the date
established for the Payment Request and will be the sole judge of acceptance of these
Drawings.
4.9
WARRANTY AND CORRECTION OF DEFECTIVE WORK
4.9.1
Contractor warrants to City that the construction, including all materials and equipment
furnished as part of the Work, will be new unless otherwise specified in the Agreement
Documents, of good quality, and free of defects in materials and workmanship. Contractor’s
warranty obligation excludes defects caused by abuse, alterations, or unreasonable failure
to maintain the construction by persons other than Contractor, subcontractors, or others
under Contractor’s control. Nothing in this warranty will limit any manufacturer’s warranty
which provides City with greater warranty rights than set forth herein or in the Agreement.
Contractor will provide City with all manufacturers’ warranties and operation and
maintenance manuals upon substantial completion of the Work. Contractor’s warranty
must be for one (1) year, in accordance with MAG Specification § 108.8, and will commence
for all portions of the Work upon Final Acceptance of the entire Work as determined by City
under the Agreement. All statutory or other warranties, express or implied, related to latent
defects will remain in force and are not limited by this provision.
4.9.2
City May Stop the Work. If the Work is defective, or Contractor fails to supply sufficient
skilled workmen or suitable materials or equipment, City may order Contractor to stop the
General Conditions
Revised: 7/20/22
GC-25 of 75
Work without cost to City, or any portion thereof, until the cause for such order has been
eliminated; however, this right of City to stop the Work will not give rise to any duty on the
part of City to exercise this right for the benefit of Contractor or any other party.
4.9.3
Correction or Removal of Defective Work.
4.9.3.1
If required by City, Contractor must promptly, without cost to City and as specified by City,
either correct any defective Work, whether or not fabricated, installed or completed, or, if
the Work has been rejected by City, remove it from the Site and replace it with non-defective
Work. Contractor must correct any Work which may be displaced in correcting, removing or
replacing defective Work. No compensation will be allowed Contractor for such removal,
replacement or remedial Work. Contractor must reimburse City for costs incurred by City
due to such correction or removal including but not limited to additional expenses for
inspection, testing or observation and for repeated reviews by the City or Design
Professional.
4.9.3.2
Upon failure on the part of the Contractor to comply within a reasonably prompt time with
any written order of City to correct or remove defective Work, City has authority to cause
nonconforming materials or rejected Work to be remedied, removed, or replaced at the
Contractor's expense and to deduct the costs from any moneys due or to become due the
Contractor.
4.9.4
City May Correct Defective Work. If Contractor fails within a reasonable time after written
notice of City to proceed to correct defective Work or to remove and replace rejected Work
as required by City or if Contractor fails to perform the Work in accordance with the
Agreement Documents (including any requirements of the progress schedule), City may,
after 7 Days' written notice to Contractor, correct and remedy any such deficiency. To the
extent necessary to complete corrective and remedial action, City may exclude Contractor
from all or part of the Work, and suspend Contractor's services related thereto, take
possession of Contractor's tools, appliances, construction equipment and machinery at the
Site and incorporate in the Work all materials and equipment stored at the Site or for which
City has paid Contractor, but which are stored elsewhere. Contractor must allow City, city
representatives, agents and employees such access to the Site as may be necessary to
enable City to exercise City’s rights under this Section. All direct and indirect costs of City in
exercising such rights will be charged against Contractor in an amount verified by City
representative, and a Change Order will be issued incorporating the necessary revisions in
the Agreement Documents and a reduction in the Agreement Price. Such direct and indirect
costs will include, in particular but without limitation, compensation for additional
professional services required and all costs of repair and replacement of Work or others
destroyed or damaged by correction, removal or replacement of Contractor's defective
Work. Contractor will not be allowed an extension of the Agreement Time because of any
delay in Contractor’s performance of the Work attributable to the exercise by City or City's
rights hereunder.
4.9.5
Correction or Removal of Unauthorized Work.
4.9.5.1
Any Work done beyond the lines and grades shown on the Drawings or established by the
Design Professional or any changes in, additions to, or deductions from the Work done
without written authority will be considered as unauthorized and will not be paid for. Work
so done may be ordered remedied, removed, or replaced at the Contractor's expense.
4.9.5.2
Upon failure on the part of the Contractor to comply promptly with any order of the City,
General Conditions
Revised: 7/20/22
GC-26 of 75
City will have authority to cause unauthorized Work to be remedied, removed, or replaced
at the Contractor's expense and to deduct the costs from any moneys due or to become
due the Contractor.
4.9.6
Correction Period - One Year Guarantee.
4.9.6.1
If, within one year after the date of Final Acceptance, or such longer period of time as may
be prescribed by law or by the terms of any applicable special guarantee required by the
Agreement Documents, or by any specific provision of the Agreement Documents, any Work
is found to be defective, Contractor must promptly, without cost to City and in accordance
with City's written instructions, either correct such defective Work, or, if it has been rejected
by City, remove it from the Site and replace it with non-defective Work. If Contractor does
not promptly comply with the terms of such instructions, or in an emergency where delay
would cause serious risk of loss or damage, City may have the defective Work corrected or
the rejected Work removed and replaced, and all direct and indirect costs of such removal
and replacement, including compensation for additional professional services, must be paid
by Contractor. Such action by the City will not relieve the Contractor of the guarantees
required by this Section or elsewhere in the Agreement Documents.
4.9.6.2
If, in the opinion of the City, defective Work creates a dangerous condition or requires
immediate correction or attention to prevent further loss to the City or to prevent
interruption of operation of the City, the City will attempt to give the notice required by this
Section. If the Contractor cannot be contacted or does not comply with the City's request
for correction within a reasonable time as determined by the City, the City may,
notwithstanding the provisions of this Section, proceed to make such correction or provide
such attention; and the costs of such correction or attention will be charged against the
Contractor. Such action by the City will not relieve the Contractor of the guarantees
required by this Section or elsewhere in the Agreement Documents.
4.9.6.3
This Section does not in any way limit the guarantee on any items for which a longer
guarantee is specified or on any items for which a manufacturer or supplier gives a
guarantee for a longer period. The Contractor agrees to act as co-guarantor with such
manufacturer or supplier and must furnish the City all appropriate guarantee or warranty
certificates upon completion of the Project. No guarantee period, whether provided for in
this Section or elsewhere, will in any way limit the liability of Contractor or their sureties or
insurers under the indemnity or insurance provisions of these General Conditions and the
Project Specific Special Conditions.
4.9.7
Acceptance of Defective Work.
4.9.7.1
If, instead of requiring correction or removal and replacement of defective Work, City may
accept Work when in the best interest of the City to do so with appropriate monetary credit
from Contractor. If any such acceptance occurs prior to final payment, a Change Order will
be issued incorporating the necessary revisions in the Agreement Documents, including
appropriate reduction in the Agreement Price; or, if the acceptance occurs after final
payment, an appropriate amount must be paid by Contractor to City.
4.9.7.2
Alternatively, City may require Contractor to furnish at Contractor's expense, a special
performance guarantee or other surety prior to acceptance of defective work.
4.9.8
The Warranty period begins on the Final Acceptance date noted in the Certificate of
Completion, irrespective of early completion by some Subcontractors of their work.
General Conditions
Revised: 7/20/22
GC-27 of 75
4.9.9
Contractor’s warranty obligation must be in accordance with MAG Specifications.
4.9.10
Nothing in the warranties contained in the Agreement Documents are intended to limit any
manufacturer’s warranty which provides City with greater warranty rights than set forth
in
this
Section or the Agreement Documents.
Contractor must provide City with all
manufacturers’ warranties
prior to Substantial Completion, if applicable, or Final
Acceptance.
4.9.11
Contractor agrees that it will be responsible to manage and administer the correction of any
Work that is not in conformance with the Agreement Documents during the warranty
periods set forth in this Section, or during any longer periods to the extent required by the
Agreement Documents. A progress payment, or partial or entire use or occupancy of the
Project by City, will not constitute acceptance of Work not in accordance with the Agreement
Documents.
4.9.12
When notified of a warranty issue, Contractor must respond in writing within 48-hours and
must
perform warranty Work as soon as material for said repairs are available (as judged
solely by City),
and in any event Contractor must, take immediate steps to commence and
complete correction of nonconforming Work no later than the time period set forth in
City’s written notification in accordance with the Agreement Documents. This includes the
correction, removal or replacement of the nonconforming Work and any damage caused
to other parts of the Work affected by the nonconforming Work. If defects develop which
are determined by City to be an emergency, City
will notify Contractor, via the most
expeditious means regarding the nature and condition of the defects. In turn, Contractor
must immediately dispatch necessary forces to correct the defect or
the emergency
condition in accordance with Agreement Documents.
4.9.13
The time periods referenced in this Section apply only to Contractor’s obligation to
correct nonconforming Work and is not intended to constitute a period of limitations for any
other rights or remedies that City may have regarding Contractor’s other obligations under
the Agreement Documents.
4.9.14
Without limiting the foregoing or anything in these General Conditions or the Agreement
to the contrary, Contractor must obtain and provide to City all warranties for any portion
of the Project offered by the manufacturer, installer or provider thereof. City and the user
of the facility will
have the right to the full value and benefit of all such warranties.
Contractor must ensure all such warranties are fully transferrable to facilitate the full value
of this Section.
4.9.15
Contractor’s warranty excludes damages or defects caused by abuse, alterations to the Work
not executed by or through Contractor, improper or insufficient maintenance, improper
operation, or normal wear and tear and normal usage.
4.9.16
In the event of any noncompliance with this entire Section 4, City may require Contractor to
stop or suspend the Work in whole or in part.
SECTION 5 - CITY RESPONSIBILITIES
5.1
CITY PROJECT MANAGER AND INSPECTORS
5.1.1
Project Manager is responsible for providing City-supplied information and approvals in a
timely manner to assist Contractor to fulfill its obligations under the Agreement Documents.
General Conditions
Revised: 7/20/22
GC-28 of 75
5.1.2
Project Manager will also provide Contractor with prompt notice when it observes any
failure on the part of Contractor to fulfill its contractual obligations, including any default
or defect in the Project or non-conformance with the Drawings and Specifications.
5.1.3
City may utilize Field Inspectors to assist Project Manager during construction in
observing performance of Contractor. City’s use of Inspectors is for the purpose of assisting
Project Manager.
5.1.4
The Inspectors are authorized to inspect all Work and materials furnished. Such inspections
may extend to all or part of the Work and to preparation, fabrication or manufacture of the
materials to be used. The Inspectors have the authority to issue instructions contrary to
the Construction
Documents if approved and coordinated with the directions of Project
Manager.
5.1.5
The Inspectors have the authority to reject work or materials until any questions at issue can
be decided by Project Manager.
5.1.6
The use of Inspectors by City will not make City responsible for or give City control
over
construction means, methods, techniques, sequences or procedures or for safety
precautions or programs or responsibility for Contractor’s failure to perform the Work in
accordance with Agreement Documents. The Inspectors are not authorized to direct any of
Contractor’s activities, employees or Subcontractors.
5.2
DESIGN PROFESSIONAL SERVICES
City may contract separately with one or more
Design Professionals to provide
construction administration of the Project. The Design Professional’s Agreement, as well as
other firms hired by City may be furnished to Contractor. Contractor does not have the right
to limit or restrict or reject any Agreement modifications that are mutually acceptable to City
and Design Professional.
5.3
CITY’S SEPARATE CONTRACTORS
City is responsible for all work performed on the Project or at the Site by separate
contractors
retained by City. City will contractually require its separate contractors to
reasonablycooperate with, and reasonably coordinate their activities so as not to interfere
with Contractor in order to enable Contractor to timely complete the Work consistent with
the Agreement Documents.
Contractor must immediately notify the Project manager,
and address the matter in the next monthly status report, if any activities of such separate
contractors are
expected to interfere, or are interfering, with Contractor and such
interference will or could result in any delay in Contractor’s performance of the Work.
5.4
PERMIT REVIEW AND INSPECTIONS
5.4.1
If requested by Contractor, Project Manager will provide assistance and guidance in
obtaining necessary reviews, permits and inspections.
5.4.2
The regulating agencies of City, such as Development and Sustainability, Fire and
Planning Departments, enforce legal requirements. The enforcement activities of City are
independent and separate from this Agreement.
5.5
PLANS AND SPECIFICATIONS TO THE CONTRACTOR.
Contractor will be provided up to five copies of the Agreement Documents as are
reasonably necessary for the execution of the Work. Additional copies will be furnished,
General Conditions
Revised: 7/20/22
GC-29 of 75
upon request, at the cost of reproduction.
SECTION 6 - AGREEMENT TIME
6.1
AGREEMENT TIME
6.1.1
The Agreement Time will start with the Notice to Proceed (“NTP”) and end with Final
Acceptance.
6.1.2
Beginning on the date of the NTP, Contractor must begin to fulfill Contractor’s obligations
under
the
Agreement.
Contractor’s
obligations
include
providing
City
and
other
agencies with any submittals required by the Project Specific Special Provisions, including
but not limited to, an approved Project Schedule, Traffic Control Plans, and a Stormwater
Pollution Prevention Plan. Contractor
must submit all such required submittals before
any physical construction work commences on
the
Site. NTP
does
not
authorize
construction work until all a greement insurance, bonds, and schedules are submitted to
and accepted by the City.
6.1.3
The Agreement Time will be as set forth in the Project Schedule. Contractor agrees that
it will
commence performance of the Work and complete the Project through both
Substantial Completion and Final Acceptance within the Agreement Time.
6.1.4
Time is of the essence of this Agreement, for the Project, for the Work, and for each phase
and designated Milestone thereof.
6.1.5
Failure of Contractor to perform any covenant or condition contained in the Agreement
Documents within the time periods specified herein, will constitute a material breach of this
Agreement entitling City to terminate the Agreement unless Contractor applies for and
receives an extension of time, in accordance with the procedures set forth in the Agreement
Documents.
6.1.6
Failure of City to insist upon the performance of any covenant or condition within the time
periods specified herein, will not constitute a waiver of Contractor’s duty to perform every
other covenant or condition within the designated periods, unless a specific waiver is
granted in writing for each such covenant or condition.
6.1.7
City’s agreement to waive a specific time provision or to extend the time for performance
will not constitute a waiver of any other time provisions contained in the Agreement
Documents. Failure of Contractor to complete performance promptly within the additional
time authorized in the waiver or extension of time agreement constitutes a material breach
of this Agreement entitling City to all the remedies set forth herein or provided by law.
6.2
PROJECT SCHEDULE
6.2.1
The Project Schedule must be in Microsoft Project standard file format, must be updated and
maintained throughout the Agreement Time, and must contain the following:
6.2.1.1
Detailed representation of all activities for the project, both on-site construction and major
procurement. All significant activities together with the resource loading requirements for
each and all items appearing on the schedule of values or bid schedule for progress
payments must be shown on the Project Schedule or in attached transmittal letter as
described in Section 6.2.8.
General Conditions
Revised: 7/20/22
GC-30 of 75
6.2.1.2
Dependencies between activities must be indicated so that it may establish as to the effect
the progress of any one activity would have on other activities and on the Schedule.
6.2.1.3
Activities for submission, review, and approval of all required submittals.
6.2.1.4
An amount of time will be established prior to the final completion date for “punch list and
cleanup”. No other activities will be scheduled during this period. Punch list and cleanup
must be shown on the Project Schedule and must be entirely completed prior to the
expiration of the Agreement Time.
6.2.2
Within 10 Days of receipt of City’s comments, Contractor must make all required
corrections, adjustments, and additions to complete the Project Schedule and resubmit to
City for review. City’s review of and response to the Project Schedule is for the purpose of:
(1) City planning and staffing for the Project as may be required from time to time; (2)
ensuring Contractor’s general
conformance with the scheduling requirements of the
Agreement Documents and completion of the Project within the Agreement Time; and (3)
monitoring and evaluating the construction status for
purposes of approving monthly
progress payments.
Acceptance of a submitted schedule by City
should in no way be
construed as an affirmation or admission that the schedule is reasonable or workable by
Contractor.
The responsibility for completing the Work on the Project within the
Agreement Time remains the obligation of Contractor.
City’s review
does not relieve
Contractor from
compliance with the requirements of the Agreement Documents or
be construed as relieving Contractor of its complete and exclusive control over the
means, methods, sequences and techniques for executing the work.
6.2.3
The Project Schedule must show milestones, including milestones for City-furnished
information, and must include activities for City-furnished material and construction by
other contractors when those activities are interrelated with Contractor activities.
6.2.4
The Project Schedule must be revised as required by conditions and progress of the Work,
but such revisions do not relieve Contractor of its obligations to complete the Work
within the Agreement Time, as adjusted in accordance with the Agreement Documents.
No modification to the Agreement Documents or the Agreement Time will be effective
unless approved in advance by City.
6.2.5
For all items of materials and equipment that are critical or may require long lead times to
acquire, the Project Schedule must show dates for submission, review and approval of
submittals, ordering, and delivery.
6.2.6
An updated Project Schedule must be submitted monthly to City as part of the Payment
Request. The monthly submittal must include one full size plot of the entire schedule and
one electronic copy containing the schedule in Microsoft Project standard file format. In
addition, Contractor must, upon request by City, provide a copy of all submitted schedule
data in electronic
format which must be clearly labeled with the Project description,
scheduling program name and version number, and schedule print/data date.
6.2.7
Contractor must provide City with a monthly status report with each Project Schedule
detailing the progress of the Work, including: (i) if the Work is proceeding according to
schedule, (ii) any discrepancies, conflicts, or ambiguities found to exist in the Agreement
Documents that require resolution, and (iii) other information detailing items that require
resolution so as not to jeopardize the ability to complete the Work in the Agreement Time.
General Conditions
Revised: 7/20/22
GC-31 of 75
6.2.8
With each Project Schedule submittal, Contractor must include a transmittal letter
including the following:
a.
Description of problem tasks, referenced to field instructions or requests
for information (RFI’s), as appropriate.
b.
Current and anticipated delays including:
(i)
Cause of the delay.
(ii)
Corrective action and schedule adjustments to correct the delay.
(iii)
Known or potential impacts and their delay on other activities,
milestones, and their impact on the Substantial Completion and
Final Acceptance dates.
(iv)
Changes in construction sequence.
c.
Pending items and status thereof including but not limited to:
(i)
Time Extension requests;
(ii)
Substantial Completion date status;
(iii)
Final Acceptance date status.
d.
If ahead of schedule, the number of calendar Days ahead.
e.
If behind schedule, the number of calendar Days behind.
f.
Other Project or scheduling concerns.
6.2.9
Critical Path Method (CPM).
6.2.9.1
Unless otherwise specified in the Agreement, the Project Schedule must include a Critical
Path
Method
(CPM)
diagram
schedule
showing
the
sequence
of
activities,
the
interdependence of each activity and identifies the Critical Path.
6.2.9.2
The CPM diagram schedule must be in calendar Days and indicate duration, earliest and
latest
start and finish dates for all activities, and total Float Times for all activities except
critical activities.
The CPM diagram must be presented in a time scaled graphical format for
the Project as a whole.
6.2.9.3
The CPM diagram schedule must indicate all relationships between activities.
6.2.9.4
The activities making the Project Schedule must contain sufficient detail to assure that
adequate planning has been done for proper execution of the Work and such that it provides
an appropriate
basis for monitoring and evaluation the progress of the Work. Individual
activities must not exceed 30 Days in length, in most cases.
6.2.9.5
The CPM diagram schedule must be based upon activities, which coincide with the Schedule
of Values.
6.2.9.6
The CPM diagram schedule must show all submittals associated with each work activity and
the review time for each submittal.
6.2.10
Float Time.
6.2.10.1
The total Float Time within the overall schedule is for the exclusive use of City, but City
may approve Contractor’s use of Float as needed to meet Agreement Milestones and
General Conditions
Revised: 7/20/22
GC-32 of 75
the Project completion date.
6.2.10.2
Contractor will not be allowed to sequence, hide, or reallocate Float Time through
such strategies, as extending activity duration estimates to consume available Float, using
preferential logic, or using extensive crew/resource sequencing, tec. No time extensions
will be granted nor delay damages paid until a delay occurs which extends the Work beyond
the Agreement Time.
6.2.11
City-Caused Delays. City-caused delays on the Project, if any, may be offset by City-caused
time
savings (i.e., Critical Path submittals returned in less time than allowed by the
Agreement, approval of substitution requests and credit changes which result in savings of
time to Contractor, etc.) In such an event, Contractor will not be entitled to receive a time
extension or delay damages until
all City-caused time savings are exceeded and the
Agreement Time is also exceeded.
6.2.12
Rain-Related Delays. Contractor is required, in preparing the Project Schedule to take into
account all relevant weather conditions, including normal rainfall and distribution. No
additional compensation will be given for any rain-related delays or impacts on the Work
or the Project Schedule. No time extension will be granted in the Project Schedule unless
the rainfall during the construction of Work is unusually severe, was not reasonably
anticipated, and the total rainfall was significantly in excess of the normal rainfall for the
Project Site location. Normal rainfall for the Project will be determined from the 10-year
average rainfall for the Site as measured by the
National Oceanic and Atmospheric
Administration or comparable source of reliable information for
rainfall in Chandler,
Arizona. In addition, the excessive rainfall must have actually impacted Work activities on
the Critical Path and caused delay beyond any remaining Float at the time of the rain- caused
delay. The burden of documenting normal rainfall, the excessive rainfall and the impact on
Critical Path activities is on Contractor. All other provisions in the Agreement Documents
relating to claims, including without limitation notice requirements, apply to any claim by
Contractor for a rain delay.
6.2.13
City’s “Policy Statement for Calculating Delays and Damages,” Appendix 1 to these
General Conditions, will apply to all claims of delay and delay damages.
6.2.14
Force Majeure. If Contractor is delayed or prevented from the performance of any Work
required under this Agreement by reason of acts of God or other causes beyond the control
and without fault of Contractor (financial inability excepted), performance of that Work will
be excused, but only for the period of the delay. The time for performance of the Work will
be extended for a period equivalent to the period of delay. In addition, the parties agree if
Contractor’s delayed or suspended performance directly arises out of or directly results
from the COVID-19 pandemic, Contractor’s delayed or suspended performance may be
excused as set forth in this clause. Provided, however; Contractor must give the City written
notice within 30 days of the occurrence of the event giving rise to COVID-19 pandemic
related delayed or suspended performance. For COVID-19 pandemic related delay or
suspended performance, the parties must agree in writing to the length of the excused
delay or suspended performance. Further, Contractor must obtain the City’s written
approval to use any allowance established as part of the project for delays and costs related
to the COVID-19 pandemic.
6.3
SUBSTANTIALCOMPLETION
6.3.1
When Contractor considers that the Work, phase or a portion thereof, which City agrees in
General Conditions
Revised: 7/20/22
GC-33 of 75
writing to accept separately, is substantially complete, City will prepare and submit to
Contractor a comprehensive Punch List of items to be completed or corrected prior to Final
Acceptance and Final Payment. Failure to include an item on such Punch List does not alter
the responsibility of Contractor to complete all Work in accordance with the Agreement
Documents.
6.3.2
Upon receipt of Contractor’s Punch List, Project Manager will make an inspection to
determine
whether the Work or designated portion thereof is substantially complete.
Project Manager may, at Project Manager’s sole option, be assisted in such inspection by
the Design Professional for the Project. If the inspection by the Project Manager discloses
any item, whether or not included
on Contractor’s Punch List, which is not sufficiently
completed in accordance with the Agreement Documents so that City can occupy or utilize
the Work, phase or designated portion thereof for its
intended use, Contractor must,
before issuance of the Certificate of Substantial Completion, complete or correct such
item upon notification by Project Manager. In such case, Contractor must then submit a
request for another inspection by Project Manager to determine Substantial Completion.
6.3.3
Certificate of Substantial Completion.
6.3.3.1
The Project Manager will not issue a Certificate of Substantial Completion unless and until
the Work (or separable units or Phases as provided in the Agreement Documents) is
essentially and satisfactorily complete in accordance with the Agreement Documents, such
that the Project is ready for use by City for its intended purpose, opening to the general
public, full occupancy or use by City (including, without limitation, all separate units, or
rooms,facilities,access,income-generating areas, and all areas serving the general public,
as applicable, must be ready for full-operation
without material inconvenience or
discomfort), including, to the extent applicable to the Work, the
following: all materials,
equipment, systems, controls, features, facilities, accessories and similar
elements are
installed in the proper manner and in operating condition, inspected and approved;
surfaces have been painted; masonry and concrete cleaned with any sealer or other finish
applied; utilities and systems connected and functioning; site work complete; permanent
heating,
ventilation, air condition, vertical transportation and other systems properly
operating with proper controls; lighting and electrical systems installed, operable and
controlled; paving completed, signage installed, and other Work as applicable, has
been performed to a similar state of essential and satisfactory completion. A minor
amount of Work, as determined by and at the discretion of the Project Manager, such
as installation of minor accessories or items, a minor
amount of painting, minor
replacement of defective work, minor adjustment of controls or sound
systems, or
completion or correction of minor exterior work that cannot be completed as a result of
weather conditions, will not delay determination of Substantial Completion. If prior
written
approval is obtained from City for purposes of Substantial Completion, specified
areas of the entire Work
or
Project may be
individually certified
as
Substantially
Complete. In no event will Substantial Completion be deemed to have occurred unless
and until: (i) a temporary certificate of occupancy has been issued by the appropriate
Governmental Authorities (as applicable) and (ii) all terms and Work required under this
Agreement have been fulfilled by Contractor and same will have also been approved and
accepted by City, subject only to the Punch List items.
6.3.3.2
If requested by City, Contractor must complete and turn-over to City the Project on a phased
basis. Each phase will have a separate inspection by the Project Manager, a Punch List
generated, and then an inspection by City with final approval and acceptance only after the
General Conditions
Revised: 7/20/22
GC-34 of 75
Project Manager’s Punch List.
6.4
PARTIAL UTILIZATION
6.4.1
City at City’s option may use and occupy any substantially completed parts of the Work
which has specifically been identified in the Agreement Documents, or which City, the
Design Professional and Contractor agree constitutes a separately functioning and usable
part of the Work that can be used by City for its intended purpose, without significant
interference with Contractor’s performance of the remainder of the Work, provided,
however, if the portion of the Work to be used or occupied has not been found to be
substantially complete, City must do so in accordance with Section 6.3 prior to such
occupancy.
6.4.2
In lieu of the issuance of a Certificate of Substantial Completion as to part of the Work, City
may take over operation of a facility constituting part of the Work whether or not it is
substantially complete if such facility is functionally and separately usable; provided that
prior to any such takeover, City and Contractor agree in writing as to the division of
responsibilities between City and Contractor for security, operation, safety, maintenance,
correction period, heat, utilities and insurance with respect to such facility.
6.4.3
Substantial Completion of or City's beneficial occupancy of a part of the Project will not alter
the fact that the one-year warranty for the whole Project starts at the date of Final
Completion of the whole Project.
6.5
FINAL ACCEPTANCE
6.5.1
Unless otherwise expressly agreed to in writing by City, Final Acceptance must be obtained
by no later than 30 Days (60 Days for federally funded agreements) after the date of Substantial
Completion. Failure to timely obtain Final Acceptance will be a material breach of the
Agreement.
6.5.2
Upon receipt of written notice that the Work is ready for final inspection and acceptance, City
and Contractor will jointly inspect to verify that the remaining items of Work have been
completed. There will be no partial acceptance. Final Acceptance will not occur until all
items of Work, including Punch List Items, have been completed to City’s satisfaction as
reflected in the written Final Acceptance.
6.5.3
Final Payment will not be due, owing, or paid by City until Final Acceptance is issued.
6.5.4
Landscape Establishment Period. Unless otherwise expressly agreed to in writing by City, the
Landscape Establishment Period will begin on the date of Final Acceptance of the Project and
will run 90 Calendar Days thereafter. Landscape Establishment Period requirements are
detailed in General Conditions Appendices, attached herein.
6.6
CONTINUATION OF WORK
6.6.1
Permitting Contractor to continue and finish the Work or any part of it after the time fixed
for its completion (whether milestone, phase, Substantial Completion or Final Acceptance)
or after the date to which the time fixed for any completion may have been extended, does
not operate as a waiver by City of any rights under the Agreement Documents, law or equity.
6.6.2
Furthermore, the timely completion of the Work being of the utmost importance under
this Agreement, notwithstanding the existence of one or more disputes between the parties
General Conditions
Revised: 7/20/22
GC-35 of 75
concerning the scope of the Work, the Project Schedule, Agreement Time, payments or any
other matter, and further notwithstanding a party’s invocation of the Dispute Resolution
provisions specified in Appendix 6 of these General Conditions, unless City suspends
the Agreement or Contractor’s performance pursuant to Section 10 of these General
Conditions, Contractor will continue to prosecute the Work, including any Change Order
work or Extra Work Orders, in a diligent and timely manner and not stop, slow down or
impede by action or inaction the progress of the Work, including commencing performance
of and thereafter completing any additional work called out in any Change Order or Extra
Work Order issued by Project Manager with the approval of City, so long as City makes
payment to Contractor in accordance with Section 8 of these General Conditions.
SECTION 7 - AGREEMENT PRICE
7.1
UNIT PRICE AGREEMENTS
7.1.1
The Agreement Price for all Unit Price Agreements will be the amount set forth in the
Agreement or Change Order multiplied by the verified quantity provided.
7.1.2
Measurements of quantities to determine the total Agreement Price must be in accordance
with MAG Specification §§ 109.1 and 109.2.
7.1.3
The Unit Price may only be changed as set forth in Section 9 below.
7.2
CHANGE ORDERS
7.2.1
Unit Price Change Orders. The Change Order Price for all Unit Price Change Orders will be
the amount set forth in the Change Order multiplied by the verified quantity provided.
7.2.2
Measurements of quantities to determine the total Change Order Price must be in
accordance with MAG Specifications §§ 109.1 and 109.2.
7.2.3
The Unit Price may only be changed as set forth in Section 9 below.
7.2.4
MAG Specification § 109.4.1 is modified as follows: Before § 109.4.1, the following is added:
Any deduction or increase in the Agreement Price must be supported by a signed,
written Change Order fully executed by City, and supported by such backup as the Project
Manager may require.
7.3
SALES TAX
Contractor is required to pay all applicable sales tax in accordance with the law of the state of
Arizona and this cost must be included in all Agreement Prices. When equipment, materials
or supplies generally taxable to Contractor are eligible for a tax exemption due to the nature
of the Project, Contractor must assist City in applying for and obtaining such tax credits and
exemptions which will be paid or credited to City.
SECTION 8 - PAYMENT
8.1
PAYMENT FOR CONSTRUCTION SERVICES
8.1.1
Payment for the Work will be made in accordance with MAG Standard Specification § 109
as amended below.
8.1.2
Contractor must submit to City for review a completed Contractor Payment Request signed
General Conditions
Revised: 7/20/22
GC-36 of 75
by Contractor, covering the Work completed as of the date of the Request and accompanied
by such supporting documentation as is required by the Agreement Documents and also
as City may reasonably require. A Contractor Payment Request will not be considered
complete unless it is accompanied by an updated Project Schedule and a certification that
the on-site, red lined, as built Drawings are up to date. If payment is requested on the basis
of materials and equipment not incorporated in the Work but delivered and suitably,
securely stored at the Site or at another location (such as a bonded warehouse) agreed to
in writing, the Contractor Payment Request must also be accompanied by such data,
satisfactory to City, as will establish City's title to the material and equipment and protect
City's interest therein, including applicable insurance. Each subsequent Contractor Payment
Request must include an affidavit of Contractor stating that all previous progress payments
received on account of the Work have been applied to discharge in full all of Contractor's
obligations reflected in prior Contractor Payment Requests.
8.1.3
Except for Work performed under a JOC Agreement, the Contracting Agency will retain 10
percent of all estimates as a guarantee for complete performance of the Agreement in
accordance with Arizona Revised Statutes Section 34-221 or 34-607. The Contractor may
elect to deposit securities in lieu of retention in accordance with Arizona Revised Statutes
Section 34-221, Paragraph C.5. or 34-607, Paragraph B.5.
8.1.4
The payment process functions as follows: Prior to the payment cycle date, Contractor must
send a draft Contractor Payment Request to Project Manager. The Project Team will review
the Request and agree upon any necessary adjustments. Contractor must certify the final
Request by signing and returning to Project Manager.
8.1.5
When construction of the Project is fifty percent (50%) completed, Contractor may
request payment of one-half of the retention pursuant to A.R.S. § 34-609(B)(3), subject to all
of City’s rights to withhold or offset payments, and other rights of City, under the Agreement.
8.1.6
City reserves the right under A.R.S. § 34-609(B)(3) to reinstate the ten percent (10%) retention
if City determines that satisfactory progress is not being made.
8.1.7
Contractor’s Warranty of Title.
8.1.7.1
Contractor warrants and guarantees that title to all Work, materials and equipment covered
by any Contractor Payment Request, whether incorporated in the Project or not, will pass
to City at the time of payment, free and clear of all liens, claims, security interests, and
encumbrances, provided that this will not preclude the Contractor from installing metering
devices or other equipment of utility companies or municipalities, the title of which is
commonly retained by the utility company or municipality.
8.1.7.2
No materials, supplies, or equipment for the Work under this Agreement will be purchased
subject to any chattel mortgage or under a conditional sale contract or other agreement by
which an interest therein, or any part thereof, is retained by the seller or supplier.
8.1.7.3
Nothing contained in this Section will defeat or impair the right of such persons furnishing
materials or labor under any bond given by the Contractor for their protection, or any right
under any law permitting such persons to look to funds due the Contractor in the hands of
the City. The provisions of this Section must be inserted in all subcontracts and material
agreements, and notices of its provision must be given to all persons furnishing materials
for the Work when no formal agreement is entered into for such materials.
General Conditions
Revised: 7/20/22
GC-37 of 75
8.2
PAYMENT UPON SUBSTANTIAL COMPLETION
8.2.1
No payment will be made upon Substantial Completion, except for a regularly-scheduled
monthly progress payment, as allowed by Section 8.2.2.
8.2.2
No further payments will be made to Contractor until Final Acceptance.
8.3
FINAL PAYMENT
8.3.1
Subject to all of City’s rights to withhold or offset payment, and other rights under the
Agreement, Final Payment including remaining retainage will be paid only after:
a.
Work has been fully completed (including completion of all incorrect or
incomplete work items) and the written Final Acceptance has been issued by
City;
b.
Necessary operating manuals, any excess materials and supplies necessary
for matching
materials
and
supplies
incorporated
into
the
Work,
acceptable sewer video results
(if applicable), and complete “as-built”
Drawings (including the Building Information Model, if required by the
Agreement Documents) have been delivered to City, as specified in this
Section 8.3;
c.
Full and unconditional lien waivers and releases by Contractor and any
person performing labor or supplying material, machinery, fixtures, or tools
for the Work have been delivered to Contractor;
d.
All conditions and requirements imposed by City or any financing entity
for the corresponding disbursement have been met; and
e.
Contractor delivers to City a Contractor Payment Request requesting Final
Payment.
8.3.2
Contractor must also submit a signed copy of Contractor’s Affidavit Regarding Settlement
of Claims, Appendix 3 to these General Conditions, and Certificate of Completion, Appendix 7
to these General Conditions, prior to Final Payment.
8.3.3
In addition, if required under the Project Specific Special Provisions, Contractor must
compile a complete equipment list and maintenance manual to be submitted to City
as a precondition to Final Payment. The list must include the following items for all
equipment supplied under the Plumbing, Electrical, Air Conditioning, Elevator, and other
Special Equipment Specifications:
a.
Name, Model and Manufacturer.
b.
Complete parts lists and Drawings.
c.
Local source of supply for replacement parts along with suppliers’ telephone
numbers.
d.
Local service organizations serving the equipment and their telephone
numbers.
e.
All
tags,
inspection
slips,
instruction
packages,
etc.,
removed
from
equipment must be
properly identified as to pieces of equipment from
which they were taken.
General Conditions
Revised: 7/20/22
GC-38 of 75
8.3.4
Contractor must also deliver to City, prior to Final Payment, one (1)
digital (in the format
specified by City), and if requested by City, one (1) hard copy, of any
applicable
Maintenance manuals. Each manual must include all manufacturer’s operation and
maintenance instructions and “as-built” Drawings with the list herein specified. It must also
include all other diagrams and instructions necessary to properly operate and maintain the
equipment, the name, address and telephone number of Contractor and all Subcontractors
involved.
8.4
CITY’S RIGHT TO WITHHOLD PAYMENT
City may withhold payment to such extent as may be necessary in City’s opinion to protect
City from loss for which Contractor is responsible, including, without limitation, if any of
the following conditions exist:
a.
Defective Work not remedied;
b.
Third party claims filed or reasonable evidence indicating probable filing of
such claims unless security acceptable to City is provided by Contractor;
c.
Failure of Contractor to make payments properly to Subcontractors or for
labor, materials or equipment;
d.
Reasonable evidence that the Work cannot be completed for the unpaid
balance of the Agreement Price;
e.
Damage to City or another Contractor;
f.
Reasonable evidence that the Work will not be completed within the
Agreement Time, and that the unpaid balance would not be adequate to
cover actual or liquidated damages for the anticipated delay;
g.
Failure to carry out the Work in accordance with the Agreement Documents;
or
h.
Contractor is in default of any of its other obligations under the Agreement
Documents.
8.5
JOINT/DIRECT CHECKS
To promote the timely completion and progress of the Work or when appropriate and
necessary, payments to Contractor may be made jointly to Contractor and its employees,
agents, Subcontractors and suppliers, or any of them. For federally funded agreements,
see federal provisions for additional requirements for the joint check process.
8.6
PAYMENT NOT A WAIVER
No payment (nor use or occupancy of the Project by City) will be deemed acceptance or
approval of the Work or as a waiver of any claims, rights, or remedies of City.
8.7
LIENS AND BOND CLAIMS
Contractor must make all payments, in the time required, of all labor and materials
furnished to Contractor in the course of the Work and must promptly furnish evidence of
such payments as City may require. Contractor must pay when due all claims arising out of
performance of the Work covered by this Agreement for which a lien may be filed either
against the real estate or leasehold interest of City, or against payments due from City to
Contractor, or for which a claim may be made against any payment or performance bond
or both. To the fullest extent permitted by law, Contractor agrees that no liens or other
claims in the nature of a lien against the real estate, leasehold, or other interest of City,
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against payment due from City to Contractor, or against any payment or performance
bond, must be filed or made in connection with the Work by any party
who has supplied
professional services, labor, materials, machinery, fixtures, tools, or equipment used in or
in connection with the performance of this Agreement, and Contractor agrees to remove or
to cause to be removed any such liens or claims in the nature of a lien or bond claim within
10 Days upon receiving notice or obtaining actual knowledge of the existence of such liens
or claim. In addition, Contractor agrees to defend, indemnify, and hold harmless City
from and against any and all such liens and claims. This paragraph does not apply to claims
and liens of Contractor due to non-payment for work performed.
8.8
FINANCIAL RECORDKEEPING AND CITY’S AUDIT RIGHT
8.8.1
Records for all Agreements between City and Contractor must, upon reasonable notice, be
open to inspection and subject to audit, scanning, and reproduction during normal
business working hours. Such audits may be performed by any City’s representative or any
outside representative engaged by City for the purpose of examining such records. City or
its designee may conduct such audits or inspections throughout the term of this Agreement
and for a period of five years after
Final Payment or longer if required by law. City’s
representatives may (without limitation) conduct verifications such as counting employees
at the Site, witnessing the distribution of payroll, verifying information and amounts through
interviews and written confirmations with Contractor employees,
field and agency labor,
Subcontractors, and vendors.
8.8.2
Contractor’s “records” must include any and all information, materials and data of every kind
and
character,
including
without
limitation,
records,
books,
papers,
documents,
subscriptions, recordings, agreements, purchase orders, leases, contracts, commitments,
arrangements, notes daily diaries, superintendent reports, drawings, receipts, vouchers and
memoranda, and any and all other agreements, sources of information and matters that
may in City’s judgment have any
bearing on or pertain to any matters, rights, duties or
obligations under or covered by anyAgreement Document. Such records must include (hard
copy, as well as computer readable data if it can be made available), written policies and
procedures; time sheets; payroll registers; payroll records;
cancelled payroll checks;
subcontract files (including proposals of successful and unsuccessful bidders, bid recaps,
negotiation notes, etc.); original bid estimates; estimating work sheets; correspondence;
Change Order files (including documentation covering negotiated settlements);
back-
charge logs and supporting documentation; invoices and related payment documentation;
general ledger, information detailing cash and trade discounts earned, insurance rebates
and dividends; and any other Contractor records which may have a bearing on matters of
interest to City or the Project in connection with Contractor’s dealings with City or the
Project (all foregoing
hereinafter referred to as “records”) to the extent necessary to
adequately permit evaluation and verification of any or all of the following:
a.
Compliance with Agreement requirements for deliverables;
b.
Compliance with approved Plans and Specifications;
c.
Compliance with § 14.9 below;
d.
Compliance with Agreement provisions regarding the pricing of Change
Orders;
e.
Accuracy of Contractor representations regarding the pricing of invoices; or
f.
Accuracy of Contractor representations related to claims submitted by
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Contractor or any of their employees.
8.8.3
Contractor must require all payees (examples of payees include Subcontractors, Suppliers,
Insurance Carriers, etc.) to comply with the provisions of this Section by including the
requirements hereof in a written agreement between Contractor and payee. Contractor will
ensure that all payees (including those entering into lump sum agreements) have the same
right to audit provisions contained in this Agreement included in their agreements with
Contractor.
8.8.4
City’s authorized representative(s) (including, without limitation, Project Manager) must have
reasonable access to Contractor’s facilities, must be allowed to interview all current or former
employees to discuss matters pertinent to the performance of this Agreement and must be
provided adequate and appropriate work space, in order to conduct audits in compliance
with this Section.
8.8.5
If an audit inspection or examination in accordance with this Section, discloses overpricing
or overcharges to City (of any nature) by Contractor or Contractor’s Subcontractors in excess
of $100,000 in addition to making adjustments for the overcharges, the reasonable actual
cost of City’s audit must be reimbursed to City by Contractor. Any adjustments or payments
which must be made as a result of any such audit or inspection of Contractor’s invoices or
records must be made within a reasonable amount of time (not to exceed 90 Days) from
presentation of City’s findings to Contractor.
8.8.6
In addition to the normal paperwork documentation Contractor typically furnishes to City,
Contractor agrees to furnish, upon written request from City, any of the documentation
necessary for City to exercise its audit rights under this Section 8.8 in computer readable file
formats (Word, Excel, or .pdf), as City may designate.
8.8.7
City, its authorized representative, and the appropriate agency, reserve the right to
audit Contractor’s records in compliance with local, state or federal policies, statutes
or at City’s discretion, within three (3) years of Final Acceptance of the Work.
SECTION 9 - CHANGES TO THE AGREEMENT
9.1
FIELD ORDERS
City may authorize minor changes in the Work not involving an adjustment in the
Agreement Price or the Agreement Times, which are consistent with the overall intent of
the Agreement Documents. These may be accomplished by a written Field Order on the
standard form approved and executed by City. Such Field Orders must be binding and
Contractor must perform the change promptly. If Contractor believes that a Field Order
justifies an increase in the Agreement Price or Agreement Time, Contractor may make a
claim therefor as provided in Section 7.2.
9.2
EXTRA WORK/CHANGES IN THE WORK
9.2.1
City reserves the right to make such changes in the Plans and Specifications for the Work,
as it may deem appropriate and any such change as set forth in a written Change Order
must be deemed a part of this Agreement as if originally incorporated herein.
9.2.2
In the event City and Contractor cannot agree on the terms of a Change Order, or
when circumstances otherwise require, the Project Manager has the authority to direct the
Contractor to perform extra work, if the work in question is an item not provided for in the
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Agreement as awarded. The Project Manager will have the authority to determine, based
upon factual evidence presented by the Contractor, whether the work in question is an
item not provided for in the Agreement as awarded. If the Project Manager directs the
Contractor to perform extra work, the Project Manager’s instructions will include a price
that the Contractor cannot exceed in charging the City for the extra work. Upon receipt of
the Project Manager’s directions to perform extra work,
the Contractor must promptly
proceed with the extra work and document the actual cost thereof. Contractor’s right to
payment for extra work will be determined under Subsection 9.2.4 below. The Contractor is
responsible to manage the extra work to ensure that the price limits set by the Project
Manager are not exceeded. Contractor must perform the extra work and submit
documentation for the actual cost of the extra work to the City. A Change Order will be
issued to cover this work.
9.2.3
Contractor will not be entitled to payment for extra work unless a written Change Order, in
form and content prescribed by City, has been executed by City. On all requests for Change
Orders, Contractor must specify the increased or decreased costs and whether it
believes any extensions of time will be necessary to complete its Work as modified by the
Change Order. If extra work is performed under Subsection 9.2.2 above, a corresponding
Change Order will be prepared, approved and processed by City before payment can be
made to Contractor.
9.2.4
In general, pricing for Change Orders will include the same mark-up percentages that were
in effect when the Agreement was awarded. The cost or credit to the City resulting from a
change in the Work is subject to Appendix 1 (Policy Statement for Calculating Delays and
Damages) and will be determined, based on the type of pricing for the Agreement involved,
as follows:
a.
By mutual acceptance of a lump sum properly itemized in a form acceptable
to City;
b.
By unit prices stated in the Agreement Documents;
c.
When the City determines that a Unit Price Book Job Order associated with
a Job Order Agreement requires a Change Order, by using the same Total
Cost Data and CCI that are in effect when the Change Order is anticipated to
be issued; or
d.
By actual cost and a percentage fee covering overhead and profit, as follows:
(i)
Contractor will perform the extra work and be compensated for actual
cost of labor, materials and equipment.
(ii)
Contractor will have the right to add the fee percentage applicable
to the Work under the Agreement, or if no such fee has been agreed
to by the parties, not more
than
five
percent
(5%)
to
the
Subcontractor’s prices for authorized extra work performed solely
by Subcontractors. Such percentage will include all of Contractor’s
charges for overhead, profit, administration and supervision.
(iii)
Contractor or Subcontractor will have the right to add the fee
percentage applicable
to Work under the Agreement for self-
performed extra work, or if no such fee has been agreed to by the
parties, Contractor’s or Subcontractor’s maximum total allowable
additions for overhead, profit, administration and supervision will
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not exceed ten percent (10%) of actual verifiable labor, materials
and equipment for such self- performed extra work.
9.2.5
Any agreement which modifies the terms of the Agreement (including Change Orders)
will be approved in writing by the Project Manager. Once properly executed by both
parties, these modifications to the Agreement will have the same effect as if they had been
included in the original Agreement.
9.3
ACCURACY OF CHANGE ORDER PRICING INFORMATION
9.3.1
Subject to Sections 9.3.2 through 9.3.4, signature by the contracting parties constitutes full
accord and satisfaction between City and Contractor for all costs, damages, and expenses
of whatever kind of nature, including delay, impact or acceleration damages, which may be
occasioned by a Change Order of other modification of the Agreement agreed to in writing.
9.3.2
Accurate Change Order Pricing Information: Contractor agrees that it is responsible for
submitting accurate cost and pricing data to City to support its Fixed Price, Unit Price, or
Cost Plus Change Order Proposals or other Agreement Price adjustments under the
Agreement. Contractor further agrees to submit Change Order proposals with cost and
pricing data which is accurate, complete, current, and in accordance with the terms of
the Agreement with respect to pricing of change orders. Contractor agrees that any “buy-
out savings” on Change Orders will accrue 100% to Owner. “Buy-out savings” are defined
as any savings negotiated by the Contractor with
a Subcontractor or a Material Supplier
after receiving approval of a Change Order amount that was designated to be paid to a
specific Subcontractor or Supplier for the Approved Change Order work.
9.3.3
Right to Verify Change Order Pricing Information: Contractor agrees that City, through
its designated representative, will have the right to examine, copy, and scan the records
of the Contractor, Subcontractor or Sub-Subcontractor’s records (during the Agreement
period and up to three years after final payment is made on the Agreement) to verify
the accuracy and appropriateness of the pricing data used to price all Change Order
proposals or claims. Contractor agrees that if City determines the cost and pricing data
submitted (whether approved
or not) was inaccurate, incomplete, not current, or not in
compliance with the terms of the Agreement
regarding pricing of Change Orders, an
appropriate Agreement Price adjustment will be made. Such post-approval Contact Price
adjustments will apply to all levels of contractors and Subcontractors and to all types of
Change Order proposals, specifically including Fixed Price, Unit Price, and Cost Plus Change
Orders.
9.3.4
Requirements for Detailed Change Order Pricing Information: Contractor agrees to
provide a detailed breakdown of allowable labor and labor burden cost (i.e., base wage
rate of applicable classifications of workers, payroll taxes, and insurance and benefits
costs). This information will be used to evaluate the potential cost of labor and labor burden
related to Change Order work. It is intended that this information represent an accurate
estimate of the Contractor’s actual labor and labor burden cost components. Information
is not intended to establish fixed billing or Change Order pricing labor rates. However, at the
time Change Orders are priced, the submitted cost data for labor rates may be used to price
Change Order work. The accuracy of any such agreed upon labor rate cost components
used to price Change Orders will be subject to later audit.
Approved
Change Order
amounts
may be
adjusted
later
to
correct the
impact
of
inaccurate
labor
cost
components if the agreed upon labor cost components are determined to be inaccurate.
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9.4
EMERGENCIES
In any emergency affecting the safety of persons or property, Contractor will act, at its
discretion, to prevent threatened damage, injury or loss. Any change in the Agreement Price
or Agreement Time resulting from emergency work will be determined as provided in this
Section.
9.5
DIFFERING SITE CONDITIONS
9.5.1
If Differing Site Conditions are encountered at the Project Site, then notice by the observing
party mustbegiventothe otherpartypromptlybefore conditionsare disturbed(tothe extent
practicable) and in no event later than 14 Days after first observance of the conditions.
City will promptly investigate such conditions and, if City determines that Differing Site
Conditions exist and they materially cause an increase in the cost of, or time required for,
performance of any part of the Work, Contractor will be entitled to equitable adjustment
in the Agreement Price or Construction Schedule (and other time requirements), or both.
If it is determined by City that the conditions at the Project Site are not Differing Site
Conditions and no change is justified, then City will sonotifyContractor in writing,stating the
reasons. Claims in opposition to such determination
must be made within 14 Days after
City has given notice of its decision. If City and Contractor cannot agree on an adjustment
in the Agreement Price or Construction Schedule (and other time requirements), the
adjustment may be submitted to dispute resolution as provided these GeneralConditions.
9.6
CHANGES IN LAWS, REGULATIONS, OR LEGAL REQUIREMENTS OR TAXES
In the event of a material change in applicable Laws, Regulations, or Legal Requirements, or
taxes subsequent to the date of the Agreement by the parties, Contractor may be entitled
to a Change Order, in City’s discretion, to the extent Contractor can document to the
satisfaction of City that
such change significantly increases Contractor’s actual cost of
performance of the Work.
SECTION 10 -SUSPENSION AND TERMINATION
10.1
SUSPENSION
City may suspend the Agreement and Contractor’s performance in accordance with MAG
Specifications § 105.1 and 108.7.
10.2
TERMINATION BY THE CITY FOR CAUSE
10.2.1
MAG Specifications § 108.11 applies to the Agreement.
10.2.2
City may also terminate the Agreement if City determines, in its sole discretion that
Contractor has:
a.
After prior written notice, refused or failed to supply enough properly skilled
workers or proper materials;
b.
After prior written notice, failed to make payment to Subcontractors for
materials or labor in accordance with the
respective agreements between
Contractor and the Subcontractors;
c.
After prior written notice, disregards laws, ordinances, or rules, regulations or
orders of a public authority having jurisdiction;
d.
After prior written notice, repeatedly failed to comply with written directives
from City;
General Conditions
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GC-44 of 75
e.
Is adjudged as bankrupt or insolvent;
f.
Made a general assignment for the benefit of creditors;
g.
Appointed a trustee or receiver for itself or any of its property;
h.
Filed a petition to take advantage of any debtor's act, or to reorganize under
the bankruptcy or similar laws; or
i.
Otherwise breached a provision of the Agreement Documents or any other
Agreement between City and Contractor.
10.2.3
When any of the above reasons exist, City may terminate the Agreement, without prejudice
to any other rights or remedies of City, after giving Contractor and Contractors’ surety, if
any, 7
Days written notice of City’s intent to terminate the Agreement and Contractor’s
failure to cure any such reasons. Upon such termination, City may: (1) take possession of
the Site and of all materials thereon owned by Contractor; or (2) finish the Work bywhatever
reasonable method City may deem expedient. When City terminates the Agreement for one
of the reasons state above, Contractor will not be entitled to receive further payment until
the Work is finished. If the unpaid balance of the Agreement Price existing at the time of
such termination exceeds the costs and expenses of finishing the Work and any other
damages incurred by City, such excess will be paid to Contractor. If such costs, expenses
and damages exceed suchunpaid balance,Contractor must pay the difference to City. This
obligation for payment will survive termination of the Agreement.
10.3
TERMINATION BY CITY FOR CONVENIENCE
City may also terminate the Agreement at any time for its convenience upon 7 Days written
notice to Contractor specifying the termination date. In the event of termination which is
not the fault, in whole or in part, of Contractor, City will pay to Contractor only such
compensation, including reimbursable expenses, due for Work properly performed on
the Project prior to the termination date. Upon any termination of the Agreement, no
further payments will be due from City to Contractor.
10.4
A.R.S. § 38-511
The Agreement is subject to, and may be terminated by City in accordance with, the
provisions of A.R.S. § 38-511.
SECTION 11 -INSURANCE AND BONDS
11.1
INSURANCEREQUIREMENTS
11.1.1
After Agreement award, the Contractor must 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 may not be deemed to apply to required Worker’s Compensation coverage.
11.1.2
The Contractor and any of its Subcontractors must 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.
11.1.3
The insurance requirements set forth below are minimum requirements for this Agreement
and in no way limit the indemnity covenants contained in this Agreement.
General Conditions
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11.1.4
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, or Subcontractors and the Contractor is free to purchase any additional
insurance as may be determined necessary.
11.1.5
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.
11.1.6
Use of Subcontractors: If any Work is subcontracted in any way, the Contractor must
execute a written agreement 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.
11.2
MINIMUM SCOPE AND LIMITS OF INSURANCE
11.2.1
The Contractor must provide coverage with limits of liability not less than those stated
below.
11.2.1.1
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
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.
11.2.1.2
Automobile Liability-Any Automobile or Owned, Hired and Non-Owned Vehicles. 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 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.
11.2.1.3
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
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.
11.2.1.4
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 Agreement Price and all subsequent modifications. The Contractor’s Builders’
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Risk/Installation Floater insurance must be primary and not contributory.
a.
Builders’ Risk/Installation Floater insurance must cover the entire Work
including reasonable compensation for architects and engineers’ 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.
b.
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 Agreement. The Contractor 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- Builders’ Risk/Installation Floater insurance described
herein.
c.
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.
d.
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.
e.
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.
f.
The Builders Risk/Installation Floater insurance must be written using the
Special Causes of Loss policy form, replacement cost basis.
g.
All rights of subrogation under the Builders Risk/Installation Floater
insurance are, by this Agreement, waived against the City, its officers,
officials, agents and employees.
h.
The Contractor is responsible for payment of all deductibles under the
Builders’ Risk/Installation Floater insurance policy.
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GC-47 of 75
11.2.1.5
Pollution Liability Insurance (Including Errors and Omissions). For Job Orders, Pollution
Liability Insurance is only required if applicable and determined on a project specific basis.
Contractor must maintain Pollution Liability Insurance with a limit of not less than
$5,000,000 per loss, $5,000,000 aggregate for losses caused by pollution conditions
including coverage for bodily injury, property damage, defense costs, clean-up costs, and
completed operations that arise from the operations of Contractor as described in this
Agreement.
a.
The policy must provide for complete professional service coverage,
including coverage for pollution liability that is a result of a breach of
professional duties.
b.
The policy must provide for protection again claims for third-party bodily
injury, property damage, or environmental damage caused for pollution
conditions resulting from general contracting activities for which Contractor
is legally liable.
c.
The policy must provide for cleanup costs when mandated by governmental
entities, when required by law, or as a result of third-party claims.
d.
Completed Operations Coverage must be kept in place for up to the statute
of repose.
e.
The policy must be endorsed to include the following additional insured
language: “City, its elected officials, trustees, employees, agents, and
volunteers must be named as additional insureds with respect to liability
arising out of the activities performed by, or on behalf of Contractor”.
f.
If Work under this Agreement requires the transportation of any hazardous
material or regulated substances, Contractor must carry Auto Liability with a
CA 9948 endorsement or equivalent.
g.
If Work under this Agreement requires the disposal of any hazardous
materials from the job site, Contractor must obtain a certificate of insurance
for Pollution Legal Liability from the disposal site operator with a limit of not
less than $5,000,000 per loss, $5,000,000 aggregate.
11.3
ADDITIONAL POLICY PROVISIONS REQUIRED
11.3.1
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.
11.3.2
The Contractor’s insurance must contain broad form contractual liability coverage.
11.3.3
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 will be in excess of the coverage
provided by the Contractor and must not contribute to it.
11.3.4
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.
11.3.5
Coverage provided by the Contractor must not be limited to the liability assumed under the
General Conditions
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GC-48 of 75
indemnification provisions of this Agreement.
11.3.6
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.
11.3.7
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 3 years following
completion and acceptance of the Work. The Contractor must submit a Certificate of
Insurance evidencing Commercial General Liability insurance during this 3 year period
containing all the Agreement insurance requirements, including naming the required
Additional Insureds set forth herein.
11.3.8
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.
11.3.9
Insurance Cancellation During Agreement Term.
11.3.9.1
If any of the required policies expire during the life of this Agreement, the Contractor must
forward renewal or replacement Certificates to the City within 10 Days after the renewal
date containing all the required insurance provisions.
11.3.9.2
Each insurance policy required by the insurance provisions of this Agreement must provide
the required coverage and must 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 10 Days prior notice may be given. Such notice must 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 require notice, the
Contractor or its insurance broker must notify the City of any cancellation, suspension, non-
renewal of any insurance within 7 Days of receipt of insurers’ notification to that effect.
11.3.10
City as Additional Insured. The above-referenced policies are to contain, or be endorsed to
contain, the following provisions:
11.3.10.1
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.
11.3.10.2
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.
11.4
BONDS AND OTHER PERFORMANCE SECURITY
11.4.1
After Agreement award, Contractor must provide a Performance Bond and a Payment
Bond, each in an amount equal to the full amount of the Agreement Price.
11.4.2
Each such bond must be executed by a surety company or companies holding a Certificate
General Conditions
Revised: 7/20/22
GC-49 of 75
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.
11.4.3
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.
11.4.4
Upon the request of any person or entity appearing to be a potential beneficiary of bonds
covering payment of obligations arising under the Agreement Documents, Contractor must
promptly furnish a copy of the bonds or must permit a copy to be made.
11.4.5
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.
11.4.6
Personal or individual bonds are not acceptable.
11.4.7
If the surety on any Bond furnished by Contractor is declared a bankrupt or becomes
insolvent, or Contractor’s right to do business is terminated in any state where any part of
the Project is located, or it ceases to meet the requirements of this Section 11.4, Contractor
must within 5 Days thereafter substitute another Bond and surety, both of which must be
acceptable to City.
SECTION 12 - INDEMNIFICATION
12.1
To the extent permitted by law, the Contractor and its owners, officers, directors, agents,
employees, and subconsultants (collectively "lndemnitor") must indemnify, save, and hold
harmless the City and its officers, officials, agents, and employees (collectively "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) (collectively
"Claims") caused or alleged to be caused, in whole or in part, by the negligent, reckless,
wrongful, or willful acts, errors, or omissions of Indemnitor in connection with this
Agreement. This indemnity includes any Claim or amount arising out of or recovered under
workers' compensation laws or on account of Indemnitor's failure to conform to any federal,
state, or local law, statute, ordinance, rule, regulation, or court decree. Indemnitor must
indemnify lndemnitee from and against any and all Claims, except those arising solely from
lndemnitee's own negligent, reckless, wrongful, or willful acts, errors, or omissions.
Indemnitor is responsible for primary loss investigation, defense, and judgment costs where
this indemnification applies. In consideration of the award of this Agreement, Indemnitor
agrees to waive all rights of subrogation against lndemnitee for losses arising from or
related to this Agreement. Indemnitor's obligations under this provision survive the
termination or expiration of this Agreement.
SECTION 13 -DISPUTE RESOLUTION
General Conditions
Revised: 7/20/22
GC-50 of 75
13.1
All disputes arising out of or relating to the Agreement, the Work or the Project, other than
termination under Section 10, will be resolved pursuant to the Dispute Resolution
process set forth in Appendix 6 of these General Conditions, and not pursuant to MAG
Specifications § 110.
13.2
Contractor agrees that during any dispute between the parties, Contractor will continue to
perform its obligations under the Agreement until such dispute is resolved.
13.3
Notwithstanding any other provision in this Agreement, City has the right to immediately file
in court and pursue an action for a temporary restraining order and injunctive relief against
Contractor if City determines that such action is necessary to protect its interests under the
Agreement, to obtain specific performance of any provision of the Agreement, to advance
the completion of the Project, or to protect health, welfare and safety.
SECTION 14 - MISCELLANEOUS PROVISIONS
14.1
AGREEMENT DOCUMENTS
14.1.1
The Agreement Documents are intended to permit the parties to complete the Work
and all obligations required by the Agreement Documents within the Agreement Times for
the Agreement Price. The Agreement Documents are intended to be complementary and
interpreted in harmony so as to
avoid conflict, with words and phrases interpreted in a
manner consistent with construction and design industry standards.
14.1.2
It is the intent of the Agreement Documents to describe a functionally complete Project (or
part thereof) to be constructed in accordance with the Agreement Documents. Any labor,
documentation, services, materials, or equipment that may reasonably be inferred from the
Agreement Documents or from prevailing custom or trade usage as being required to
produce the intended result must be provided by Contractor whether or not specifically
called for at no additional cost to City.
14.1.3
The Agreement Documents establish the rights and obligations of the parties and include
the Agreement, Addenda (which pertain to the Agreement Documents), Contractor's Bid or
Proposal (including documentation accompanying the Bid and any post-Bid documentation
submitted prior to Agreement award) when attached as an exhibit to the Agreement, the
accepted Project Schedule, the Notice to Proceed, the Performance Bond, the Payment
Bond, Project Design, Engineering and Specifications, these General Conditions, the Project
Specific Special Provisions, Technical Specifications, Agreement Drawings, as the same may
be more specifically identified in the Agreement, Change Orders, Work Change Directives,
Field Orders and the written interpretations and clarifications of the Design Professional or
City representative and Modifications issued after execution of the Agreement. Approved
Shop Drawings and the reports and drawings of subsurface and physical conditions are not
Agreement Documents.
14.1.4
In the event of any inconsistency, conflict, or ambiguity between or among the Agreement
Documents, the Agreement Documents will take precedence as follows from highest to
lowest: Change Orders, Addenda, Agreement, Project Specific Special Provisions, General
Conditions, Technical Specifications, Drawings/Plans, Chandler Amendments to MAG
Standard Specifications and Chandler Standard Details, and MAG Uniform Standard
Specifications and Details for Public Works Construction. If applicable to this Agreement,
Federal Provisions prevail.
General Conditions
Revised: 7/20/22
GC-51 of 75
14.1.5
On the Drawings, given dimensions will take precedence over scaled measurements and
large scale drawings over small-scale drawings.
14.1.6
Clarifications and interpretations of the Agreement Documents will be issued by the Design
Professional through the City.
14.1.7
The headings used in this Agreement or any other Agreement Documents, are for ease of
reference only and must not in any way be construed to limit or alter the meaning of any
provision.
14.1.8
The Agreement Documents form the entire agreement between City and Contractor.
No oral representations or other agreements have been made by the parties except as
specifically stated in the Agreement Documents.
14.1.9
The Agreement Documents may not be changed, altered, or amended in any way except in
writing signed by a duly authorized representative of each party in the form of a Change
Order.
14.1.10
Re-Use of Documents. Neither Contractor nor any Subcontractor, manufacturer, fabricator,
supplier or distributor will have or acquire any title to or ownership rights in any of the
Drawings, Specifications or other documents (or copies of any thereof) prepared by or
bearing the seal of the Design Professional; and they must not re-use any of them on
extensions of the Project or any other project without written consent of City and the Design
Professional and specific written verification or adaptation by the Design Professional.
14.2
REFERENCE STANDARDS
14.2.1
Reference to standards, specifications, manuals, or codes of any technical society,
organization, or association, or to Laws or Regulations, whether such reference be specific
or by implication, will mean the standard, specification, manual, code, or Laws or
Regulations in effect at the time of opening of Bids (or on the Effective Date of the
Agreement if there were no Bids), except as may be otherwise specifically stated in the
Agreement Documents.
14.2.2
The provisions of any such standard, specification, manual or code, or any instruction of a
Supplier will not change the duties or responsibilities of City, Contractor, Design
Professional or Project Manager, or any of their Subcontractors, consultants, agents, or
employees from those set forth in the Agreement Documents, nor will any such provision
or instruction assign to City, Contractor, Design Professional, or any of their agents, or
employees any duty or authority to supervise or direct the performance of the Work or any
duty or authority to undertake responsibility inconsistent with the provisions of the
Agreement Documents.
14.3
COMPLIANCE WITH ARIZONA LAW AND FEDERAL LAW
14.3.1
Compliance with A.R.S. § 41-4401. Pursuant to the provisions of A.R.S. § 41-4401, the
Contractor hereby warrants to the City that the Contractor and each of its subcontractors
(“Subcontractors”) must comply with all Federal Immigration laws and regulations that
relate to the immigration status of their employees and the requirement to use E-Verify set
forth in A.R.S. §23-214(A).
14.3.2
A breach of the Contractor Immigration Warranty constitutes a material breach of this
Agreement and subject to penalties up to and including termination of this Agreement.
General Conditions
Revised: 7/20/22
GC-52 of 75
14.3.3
The City retains the legal right to inspect the papers of any Contractor or Subcontractor
employee who works on this Agreement to ensure that the Contractor or Subcontractor is
complying with the Contractor Immigration Warranty. The Contractor agrees to assist the
City in the conduct of any such inspections.
14.3.4
The City may, at its sole discretion, conduct random verifications of the employment records
of the Contractor and any Subcontractors to ensure compliance with Contractors
Immigration Warranty. The Contractor agrees to assist the City in performing any such
random verifications.
14.3.5
The provisions of this Article must be included in any agreement the Contractor enters into
with any and all of its subcontractors who provide services under this Agreement or any
subcontract. “Services” are defined as furnishing labor, time or effort in the State of Arizona
by a contractor or subcontractor. Services include construction or maintenance of any
structure, building or transportation facility or improvement to real property.
14.4
HAZARDOUS ENVIRONMENTAL CONDITIONS
14.4.1
Contractor will not be responsible for any Hazardous Environmental Condition uncovered
or revealed at the Site which was not shown or indicated in Drawings or Specifications or
identified in the Agreement Document to be within the scope of the Work. Contractor will
be responsible for a Hazardous Environmental Condition created with any materials
brought to the Site by Contractor, Subcontractors, Suppliers, or anyone else for whom
Contractor is responsible.
14.4.2
If Contractor encounters a Hazardous Environmental Condition or if Contractor or anyone
for whom Contractor is responsible creates a Hazardous Environmental Condition.
Contractor must immediately:
a.
Secure or otherwise isolate such condition;
b.
Stop all Work in connection with such condition and in any area affected
thereby; and
c.
Notify City and promptly thereafter confirm such notice in writing.
14.4.3
City will promptly retain a qualified expert to evaluate such condition or take corrective
action, if any.
14.4.4
Contractor will be responsible for any and all civil or criminal penalties, fines, damages, or
other charges imposed by any regulatory agency or court for sewage discharges that are in
violation of applicable statutes and laws and that are a result, direct or indirect, of work
performed under this Agreement. Contractor will also be responsible for reimbursement
to City for administration, reporting, and tracking expenses required as a result of any spill
event. In the event the regulatory agency or court imposes a probationary period,
Contractor must post bond for the probationary period to ensure that all such costs are
reimbursed to City. This responsibility will apply whether penalties are imposed directly on
Contractor or any of its Subcontractors, or the City of Chandler. Contractor must defend
and indemnify City against such penalties. Regulatory agencies may include, but are not
limited to, the Arizona Department of Environmental Quality (ADEQ) and the United States
Environmental Protection Agency (USEPA).
14.5
COOPERATION AND FURTHER DOCUMENTATION
General Conditions
Revised: 7/20/22
GC-53 of 75
Contractor agrees to provide City such other duly executed documents as may be
reasonably requested by City to implement the intent of the Agreement Documents.
14.6
ASSIGNMENT
Neither Contractor nor City will, without the written consent of the other assign, transfer or
sublet any portion of this Agreement or part of the Work or the obligations required by
the Agreement Documents, any such assignment will be void, will transfer no rights to the
purported assignee, and would be a material breach of the Agreement.
14.7
SUCCESSORS
Contractor and City intend that the provisions of the Agreement Documents are binding
upon the parties, their employees, agents, heirs, successors and assigns.
14.8
LAWFUL PRESENCE
Pursuant to A.R.S. §§ 1-501 and 1-502, City is prohibited from awarding an agreement 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 the identification provided is genuine. This
requirement will be imposed at the time of agreement award. This requirement does not
apply to business organizations such as corporations, partnerships, or limited liability
companies.
14.9
NO BOYCOTT OF ISRAEL CERTIFICATION
By Contractor's signature on this Agreement, Contractor certifies under A.R.S. § 35-393.01
that Contractor is not currently engaged in and for the duration of this Agreement will not
engage in a boycott of Israel.
14.10
NO THIRD PARTY BENEFICIARY
Nothing under the Agreement Documents will be construed to give any rights or benefits
in the Agreement Documents to anyone other than City and Contractor, and all duties and
responsibilities undertaken pursuant to the Agreement Documents will be for the sole and
exclusive benefit of City and Contractor and not for the benefit of any other party, unless
otherwise expressly set forth in the Agreement Documents.
14.11
GOVERNING LAW AND VENUE
The Agreement and all Agreement Documents will be deemed to be made under, and will
be construed in accordance with and governed by the laws of the State of Arizona without
regard to the conflicts or choice of law provisions thereof. Any court action to enforce any
provision of the Agreement or to obtain any remedy with respect hereto must be brought
in the Superior Court, Maricopa County, Arizona, and for this purpose, each party hereby
expressly and irrevocably consents to the jurisdiction and venue of such Court.
14.12
SEVERABILITY
If any provision of the Agreement Documents or the application thereof to any person or
circumstance will be invalid, illegal or unenforceable to any extent, the remainder of the
affected provision, the remainder of the Agreement Documents, and the application
thereof will not be affected and will be enforceable to the fullest extent permitted by law.
14.13
LEGALREQUIREMENTS
At all times relevant to its entry into this Agreement and performance of the Services and
the Work, Contractor must fully comply with all Laws, Regulations, or Legal Requirements
applicable to City, the Project, and the Agreement, including, without limitation, those set
General Conditions
Revised: 7/20/22
GC-54 of 75
forth on Exhibit C of the Agreement.
14.14
PARTIAL INVALIDITY
If any provision of the Agreement is held by a court of competent jurisdiction to be invalid,
void or unenforceable, the remaining provisions will nevertheless continue in full force
without being impaired or invalidated in any way.
14.15
ATTORNEYS' FEES
Should either party to the Agreement bring an action to enforce any provision of the
Agreement, the prevailing party will be entitled to recover reasonable attorneys' fees and
costs in connection therewith.
14.16
CONFLICT OF INTEREST
14.16.1
Contractor agrees to disclose any financial or economic interest with the Project property,
or any
property affected by the Project, existing prior to the execution of the Agreement.
Further, Contractor agrees to disclose any financial or economic interest with the Project
property, or any property affected by the Project, if Contractor gains such interest during
the course of this Agreement. If Contractor gains financial or economic interest in the
Project during the course of this Agreement,
this may be grounds for terminating this
Agreement. Any decision to terminate the Agreement must be at the sole discretion of City.
14.16.2
Contractor will not engage the services on this Agreement of any present City employee who
was involved as a decision maker in the selection or approval processes, or who negotiated
or approved billings or Agreement Modifications for this Agreement.
14.16.3
Contractor agrees that it will not perform services on this Project for a contractor,
subcontractor, or any supplier, not covered under this Agreement.
14.17
INDEPENDENTCONTRACTOR
Contractor is and must be an independent contractor. Any provisions in the Agreement
Documents that may appear to give City the right to direct Contractor as to the details of
accomplishing the Work or to exercise a measure of control over the Work means that
Contractor must follow the wishes of City as the results of the Work only. These results
must comply with all applicable laws and ordinances.
14.18
NOTICE OF INJURY
Should City or Contractor suffer injury or damage to their person or property because of
any error, omission or act of the other party or of any of the other party's employees or
agents or others for whose acts the other party is legally liable, claim must be made in
writing to the other party within 7 Days of the first observance of such injury or damage.
14.19
CONFIDENTIALITY
Contractor, for the benefit of City, hereby agrees it will not release or cause or permit
to be
released to the public any press notices, publicity (oral or written) or advertising
promotion relating
to, any statement regarding, or any other public announcement or
disclosure or cause or permit to be publicly announced or disclosed, in any manner
whatsoever, the specific terms and conditions of this Agreement or any comment relating
to the Project or the Site. Notwithstanding the foregoing, Contractor will be entitled to
disclose the terms of the Agreement to the extent required by law or in the course of
enforcing or defending a claim or action hereunder. Contractor must give City reasonably
prompt notice of any disclosure or statement made pursuant to this provision.
General Conditions
Revised: 7/20/22
GC-55 of 75
14.20
DATA CONFIDENTIALITY
14.20.1
As used in the Agreement, “data” means all information, whether written or verbal, including
plans, specifications, renderings, 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 City in the performance of this Agreement.
14.20.2
Contractor agrees that all data, regardless of form, including originals, images, and
reproductions, prepared by, obtained by, or transmitted to City in connection with the
Contractor’s performance of this Agreement is confidential and proprietary information
belonging to City.
14.20.3
Except as specifically provided in this Agreement, Contractor or its Subcontractors must not
divulge data to any third party without prior written consent of City. Contractor or its
Subcontractors must not use data for any purposes except to perform Work required under
this Agreement. These prohibitions will not apply to the following data provided Contractor
has first given the required notice to City:
a.
Data which was known to Contractor or its Subcontractors prior to its
performance under this Agreement unless such data was acquired in
connection with Work performed for City;
b.
Data which was acquired by Contractor or its Subcontractors in its
performance under this Agreement and which was disclosed to Contractor
or its Subcontractors by a third party, who to the best of Contractor’s or its
Subcontractor’s knowledge and belief, had the legal right to make such
disclosure and 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.
14.20.4
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 agreement with City, the Contractor must first notify
City as set forth in this Section of the request or demand for the data. The Contractor or its
Subcontractors must give City sufficient facts so that City can be given an opportunity to
first give its consent or take such action that City may deem appropriate to protect such
data or other information from disclosure.
14.20.5
Unless prohibited by law, within 10 Days after completion of services for a third party on
real or personal property owned or leased by City, the Contractor must promptly deliver, as
set forth in this Section, a copy of all data to City. All data will continue to be subject to the
confidentiality agreements of this Agreement.
14.20.6
Contractor or its Subcontractors assume all liability for maintaining the confidentiality of
the data in its possession and agree to compensate City if any of the provisions of this
Section are violated by Contractor, its employees, agents, or Subcontractors. Solely for the
purposes of seeking injunctive relief, it is agreed that a breach of this Section will be deemed
to cause irreparable harm that justified injunctive relief in court. Contractor agrees that the
requirements of this Section will be incorporated into all subcontracts entered into by
Contractor. A violation of this Section may result in immediate termination of this
General Conditions
Revised: 7/20/22
GC-56 of 75
Agreement without notice.
14.21
SURVIVAL
All warranties, representations and indemnifications by Contractor must survive the
completion or termination of this Agreement.
14.22
COVENANTS 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 City Council, or any employee of
City has any interest, financially, or otherwise, in the firm. For breach or violation of this
warrant, City will have the right to annul the 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.
14.23
NO WAIVER
The failure of either party to enforce any of the provisions of the Agreement Documents 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 will it affect the validity of the Agreement
Documents or any part thereof, or the right of either party to thereafter enforce each and
every provision.
14.24
NONEXCLUSIVEREMEDIES
The remedies set forth in this Agreement are cumulative and not exclusive, and failure to
exercise any remedy (including, without limitation, any right to terminate) will not preclude
any party from exercising any other right in seeking any other remedy available to it at law
or in equity.
14.25
PROJECTCOMMUNICATIONS
14.25.1
All communications concerning the performance of the Work or the Project will be provided
to the designated Project Manager and Contractor’s Representative set forth in Article 1
of the
Agreement. City may change the designated Project Manager and, subject to
Section
4.4.20
of
these General Conditions,
Contractor may change
Contractor
Representative, by written notice to the other.
14.25.2
Project communications may be exchanged by e-mail, but email communications cannot
change the terms of the Agreement or the Scope of Work, or effectuate any change that
requires a written Change Order.
14.25.3
When any provisions of the Agreement Documents requires Contractor or the Design
Professional to give written notice to City, it will be deemed to have been validly given if
delivered in person or if delivered at or sent by registered or certified mail, postage prepaid,
to the Parties indicated in Agreement Article 1, incorporated by reference.
14.25.4
When any provisions of the Agreement Documents requires City, Project Manager, or the
Design Professional to give written notice to Contractor, it will be deemed to have been
validly given if delivered in person to the person designated in the Agreement Documents
as Contractor’s Resident Superintendent, or if delivered at or sent by registered or certified
mail, postage prepaid, to Contractor at the last address in the Agreement Documents or
such substitute address which Contractor designates in writing, or to the business address
known to the giver of notice.
General Conditions
Revised: 7/20/22
GC-57 of 75
14.26
DRUG FREE WORKPLACE PROGRAM
14.26.1
City has adopted a policy establishing a drug free workplace for itself and as a requirement
for Contractors doing business with City, to ensure the safety and health of employees
working on City projects.
14.26.2
Contractor must require a drug free workplace for all employees working under the
Agreement.
Specifically,
all employees
of
Contractor
who
are
working
under
an
agreement with City must be notified, in writing, by Contractor that they are prohibited
from
the
manufacture,
distribution,
dispensation, possession or unlawful use of a
controlled substance in the workplace.
14.27
Failure to require a drug free workplace in accordance with the City’s policy may result
in
termination of the Agreement and possible debarment form bidding on future City
projects.
SECTION 15 - PROVISIONS APPLICABLE SOLELY TO GMP AND COST-BASED AGREEMENTS,
CHANGE ORDERS, AND JOB ORDERS
15.1
ADDITIONALDEFINITIONS
The definitions set forth in Section 2 apply to GMP and Cost-Based Agreements, Change
Orders, and Job Orders, together with the additional definitions set forth below.
Baseline Cost Model –
A breakdown and estimate of the scope of the Project developed by CM@Risk pursuant to Section 17.5
of these General Conditions.
CM@Risk or Construction Manager at Risk –
The person or firm selected by City to provide pre-construction and/or construction services as
detailed in a Construction Manager at Risk Agreement with City. In these General Conditions, the
term
“Contractor”
includes CM@Risk under both Pre-Construction and Construction Services
Agreements.
CM@Risk Fee or Contractor’s Fee –
An agreed to percentage in an accepted GMP that represents the Contractor’s fee for performance of
the Work.
Agreement Documents –
Where compensation under the Agreement is based upon a GMP accepted by City, the term
“Agreement Documents” also includes the accepted GMP Proposal.
Agreement Price –
Where compensation under the Agreement based upon a GMP accepted by City, the term
“Agreement Price” refers to the GMP.
Cost-Based Agreement, Change Order, or Job Order –
A Agreement, Change Order, or Job Order where the Agreement Price is based upon the actual
cost of
performing the Work, subject to the terms of the Agreement Documents, including this
Section 15. These would include those generally referred to as “Cost of the Work plus a Fee with
a GMP,” “Time and Materials,” or “Cost Plus a Fee.”
Cost of the Work –
The direct costs necessarily incurred by Contractor in the proper, timely, and complete performance
on the Work. The Cost of the Work will include only those costs set forth in Section 15.2 of these
General Conditions
Revised: 7/20/22
GC-58 of 75
General Conditions.
Deliverables –
The work products prepared by Contractor in performing the scope of work described in the
Agreement. Some of the major deliverables to be prepared and provided by Contractor during pre-
construction may include but are not limited to: the Baseline Cost Model and Schedule that validate
City’s plan and budget, Construction Management Plan, Detailed Project Schedule, Schedule of Values,
alternative system evaluations, procurement strategies and plans, Detailed Cost Estimates,
construction market surveys, cash flow projections, GMP Proposals, Subcontractor procurement plan,
Subcontractor agreements, Subcontractor bid packages, Supplier agreements, Constructability
Review, Cost Control Log, Traffic control and phasing plans and others as indicated in this Agreement
or required by the Project Team.
Pre-Construction Services Agreement –
The Agreement entered into between City and the CM@Risk for Pre-Construction Services to be
provided by the CM@Risk, including, without limitation, the generation of a GMP Proposal. If the GMP
Proposal is accepted by City and a Construction Agreement is entered into between City and CM@Risk,
the duties, obligations and warranties of the CM@Risk under the Pre-Construction Services
Agreement survive and are incorporated into the resulting Construction Agreement.
Pre-Construction Services –
The services to be provided under the Pre-Construction Services Agreement, including Section 17 of
these General Conditions.
Detailed Project Schedule –
The Detailed Project Schedule developed by the CM@Risk for the review and approval of the Project
Manager in accordance with Section 17.3 of these General Conditions, if applicable.
General Conditions Costs –
Those costs set forth in Section 4 of Appendix 9 to these General Conditions.
GMP Plans and Specifications –
The plan and specifications upon which the Guaranteed Maximum price Proposal is based.
GMP Proposal –
The proposal of Contractor submitted pursuant to Section 17.7 of these General Conditions for the
entire Work and/or portion (phases) of the Work.
Guaranteed Maximum Price or GMP –
The Guaranteed Maximum Price set forth in the Agreement, Change Order, or Job Order if applicable.
15.2
AGREEMENT PRICE
15.2.1
The Agreement Price for all Agreements, Change Orders, and Job Orders based upon
payment of the Cost of the Work plus a Fee with a GMP, time and materials, or cost-plus a
fee will be the Cost of the Work incurred plus the Fee agreed to in writing by City, limited to
the amount of the GMP, if agreed to. Unless otherwise expressly provided in the Agreement,
Change Order, or Job Order, all Cost Based pricing will be subject to and limited to GMP.
15.2.2
The Agreement Price may only be changed as set forth in Section 9 above.
General Conditions
Revised: 7/20/22
GC-59 of 75
15.2.3
Only costs specifically designated as reimbursable costs are eligible for payment by City or
may be charged against the Agreement Price. All other costs will not be paid by City and will
not be chargeable against the Agreement Price.
15.2.4
Cost-Based Agreements. For Agreements, Change Orders, or Job Orders, reimbursable
costs must be determined pursuant to Appendix 9 to these General Conditions, Cost of the
Work, and not by MAG Specifications §109.5.
15.3
ALLOWANCES
15.3.1
Contractor must include in the Agreement Price all Allowances stated in the Agreement
Documents and agreed to in writing by City. Items covered by these Allowances must be
supplied for such amounts and by such persons as City may direct, provided Contractor will
not be required to employ persons against whom Contractor makes a reasonable objection.
Materials, labor, and equipment under an Allowance will be selected by City in accordance
with a schedule to be mutually agreed upon by City, Design Professional and Contractor or
otherwise in reasonably sufficient time to avoid delay in the Work.
15.3.2
Unless otherwise provided in the Agreement Documents:
15.3.2.1
These Allowances must cover the cost to Contractor, less any applicable trade discount, of
the materials, labor, and equipment required by the Allowances, delivered at the Site, and
all applicable taxes;
15.3.2.2
Contractor’s costs for unloading and handling on the Site, labor, installation costs, overhead,
profit and other expenses relating to materials, labor, and equipment required by the
Allowance must be included in the Agreement Sum and not in the Allowance; and
15.3.2.3
Whenever the cost is more or less than the Allowance, the Agreement Sum must be
adjusted accordingly by Change Order, the amount of which will recognize the difference
between actual costs for an Allowance item and the amount of the Allowance item and
changes, if any, in handling costs on the Site, labor, installation costs, overhead, profit and
other expenses.
15.4
CONTINGENCY
An agreed to amount in the GMP that may only be used in accordance with the terms set
forth in these General Conditions and with prior written approval by the City.
15.4.1
Construction Contingency. This GMP includes a dollar amount listed as a Construction
Contingency which will be readily available for increased costs for subcontractors, material,
and equipment subject to prior approval of City, which approval will not be withheld
unreasonably. The Construction Contingency may also be used, at the discretion of City, to
reimburse CM@Risk for unexpected costs due to (a) scope gaps between trade
subcontractors; (b) agreement default by trade subcontractors; (c) unforeseen field
conditions, but only as defined in Section 9.5 above; (d) work completed to meet the intent
of the design, but which was not indicated on the plans; (e) costs overruns not covered by
allowances; (f) costs of corrective work not provided for elsewhere; and (g) implementation
of any Recovery Plan. Cost for which CM@Risk desires to be paid from the Construction
Contingency must be documented by CM@Risk on a time and materials basis and are
subject to verification by City. If agreed to by City, a “Use of Contingency” form will be
executed by both parties authorizing the actual cost of the work to be paid and included in
the Work Item Direct Costs. The Construction Contingency is not allocated to any particular
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item of the Project but may be used for any portion of the work as determined above. Any
amount not used in the Construction Contingency will belong to City and will reduce the
GMP.
15.4.2
Owner’s Contingency. This GMP also includes a dollar amount listed as an Owner’s
Contingency which may be used only by the City (owner department) for upgrades and
changes in scope or other changes not already included within the intent of the Project
Program. City will provide CM@Risk with a Work Change Directive authorizing CM@Risk to
perform the additional work and to transfer funds from the Owner’s Contingency to the
Work Item Direct Costs category to be paid with such direct costs. These additional costs
will be in an amount mutually agreed upon by CM@Risk and City or will be documented by
CM@Risk on a time and materials basis and are subject to verification by City. Any amount
not used in the Owner’s Contingency will belong to the City and will reduce the GMP.
15.5
REDUCTION IN RETENTION
If the Agreement Price is based upon a GMP, in order to receive payment of one-half of the
retention as set forth in Section 8.1.5 above, Contractor must also submit to the Project
Manager a complete accounting of the Actual Reimbursable Cost of the Work to date,
including all such documentation (including, without limitation, invoices, subcontract,
subcontractor change orders, purchaseorders,records ofpayment,etc.) asCitymayrequire,
to establish whether the payments made to Contractor equal, exceed, or are less than the
actual reimbursable Cost of the Work to date. Any excess payments by City, as determined
by the Project Manager, will be deducted from the one-half retention payment to be made
to Contractor, and any additional excess amounts paid to Contractor will be refunded by
Contractor to City. The Project Manager’s determinations as to Actual Reimbursable Cost
of the Work will be the basis of payment until final Project Closeout and Final Payment
under the Agreement.
15.6
FINAL PAYMENT
If the Agreement Price is based upon a GMP, as a further condition precedent to Final
Payment by City, Contractor must submit to the Project Manager a complete final
accounting of the Actual Reimbursable Cost of the Work, including all such documentation
(including,
without
limitation,
invoices, subcontracts, subcontractor change orders,
purchase orders, records of payment, etc.) as City may require, to establish whether the
payments made to Contractor equal, exceed, or are less than the Actual Reimbursable Cost
of the Work to date. Any excess payments by City, as determined by the Project Manager,
will be deducted from the one-half retention payment to be made to Contractor, and any
additional excess amounts paid to Contractor will be refunded by Contractor to City.
Disputes relating to the Final Cost of the Work will be subject to City’s audit
rights under
Sections 8.8 above and 15.7 below, and the dispute resolution process under Section
13
above.
15.7
OPEN BOOK
On any GMP-based or Cost-Based Agreement, Job Order, or Change Order, City may attend
any and all meetings or discussions pertaining to the Project, including bid openings, and
must have
access to all books, invoices, accounts, memoranda, correspondence, and
written communications or records of any kind pertaining to the Project, including without
limitation, those stored in electronic format.
15.8
DIFFERING SITE CONDITIONS AND/OR CHANGE IN LAWS
A Change Order for increased costs under Section 9.5 or 9.6 above will only be considered
General Conditions
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GC-61 of 75
or granted by City to the extent such actual, documented costs are justified.
SECTION 16 - PROVISIONS APPLICABLE SOLELY TO JOB ORDER AGREEMENTS (JOC)
16.1
ADDITIONAL DEFINITIONS
The definitions set forth in Sections 2 and below will apply to all Job Order Agreements and
Job Orders. In addition, the definitions set forth in Section 15.1 above will apply to all Cost-
Based Job Orders.
Agreement –
Includes the Job Order Master Agreement and Job Order Project Agreements issued and agreed to by City
and JOC Contractor.
JOC Contractor’s Coefficient –
A numerical factor that represents JOC Contractor total costs (indirect and direct costs, sales tax,
profit, etc.) and other adjustments for market conditions.
Job Order Request for Proposal (RFP) –
The Request for Proposals issued by City for each Job Order Project Agreement relating to a specific
Project.
Job Order Cost Proposal –
The Proposal submitted by JOC Contractor in response to a Job Order Request for Proposal (RFP) issued
by City to develop a Job Order Project Agreement for a specific Project.
Guaranteed Maximum Price (GMP) Job Order –
Job Order under which JOC Contractor is compensated for actual costs incurred.
Job Order Project Agreement (Job Order) –
The agreement for a specific project, as it may be modified by all Change Orders, executed by the
Parties, which incorporates the terms and conditions of the Job Order Master Agreement.
16.2
ORDERING AND PROCESSING PROCEDURES FOR JOB ORDERS
16.2.1
The process for developing and issuing a Job Order for a particular Project consists of three
(3) procedures: (1) issuance of a RFP by City; (2) JOC Contractor’s response to the RFP in the
form of JOC Contractor’s Job Order Cost Proposal; and (3) Issuance of a Job Order by City, as
set for below.
16.2.2
RFP’s For Job Orders
16.2.2.1
City will provide to JOC Contractor RFP with a Scope of Work (SOW) describing the Work to
be performed, which may include special instructions and conditions, material submittal
requirements, and, if applicable, a complete set of sketches, construction drawings and
specifications for the Job Order.
16.2.2.2
Some Job Order RFP’s will be issued by City without detailed sketches, drawing and
specifications and will rely on JOC Contractor to produce them for City review and approval
and is considered to be Pre-Construction and incidental design services included in JOC
Contractor’s overhead for GMP Job Orders. In addition JOC Contractor will not be
reimbursed for any Pre-Job Order costs, including proposal preparation, attendance during
negotiations, or site visits.
General Conditions
Revised: 7/20/22
GC-62 of 75
16.2.3
JOC Contractor’s Job Order Cost Proposal
16.2.3.1
JOC Contractor must respond within ten (10) calendar days of the RFP date or site visit,
whichever is
later or as otherwise indicated on a case-by-case basis, by submitting JOC
Contractor’s Job Order Cost Proposal to the City representative.
16.2.3.2
Unless otherwise required under the terms of the RFP, JOC Contractor’s Job Order Cost
Proposal must include the following.
a.
JOC Contractor’s Job Order Cost Proposal in PDF and electronic format;
b.
A Project Schedule and schedule of values that reflects the costs of each work
element on the
schedule. The schedule must show all milestones (e.g.,
permits, submittals, ordering materials, demolition, work phases, closeout
and completion date); and
c.
Necessary documentation will be required to indicate that adequate scoping,
layout, setup and planning to accomplish the Work has been done.
Examples of documentation that might reasonably be expected include
sketches, drawings, calculations, catalog cuts and specifications produced
to a level of detail and skill that could be expected of experienced,
competent Project Managers with five or more periods experience in their
respective trade.
16.2.3.3
JOC Contractor must select Subcontractors based on qualifications alone or on a
combination of
qualifications and price and must not select Subcontractors based on
price alone. A qualifications and price selection may be a one-step selection based on
a combination of qualifications and price or two-step selection. In a two-step selection,
the first step must be based on qualifications alone and the second step may be based or
a combination of qualifications and price or on price alone.
16.2.3.4
Upon request, JOC Contractor must provide City with copies of Subcontractor quotes and
the basis for selection of each Subcontractor.
16.2.3.5
If City objects to a selected Subcontractor, City will make the objection and the reasons for
the
objection known to the JOC Contractor.
JOC Contractor must then present an
acceptable Subcontractor for the applicable discipline. City will not unreasonably object
to or withhold approval of a Subcontractor.
16.2.3.6
For self-performed work, the City retains the right to have the JOC Contractor establish JOC
Contractor’s costs by bidding their costs against at least three (3) other interested trade
Contractors. No self- performed work will be allowed to be performed on a lump sum basis.
16.2.4
Issuance of Job Order
16.2.4.1
City Representative will compare the JOC Contractor’s Job Order Cost Proposal with the City’s
estimate,
schedules and other requirements, and then, if the City Representative
determines it is in the best interest of City, arrange a meeting with JOC Contractor, at which
time the JOC Contractor’s Job Order Cost Proposal will be discussed and negotiated.
16.2.4.2
If the City Representative determines that it is in the best interest of the City, City will then
issue a Job Order to JOC Contractor for execution.
16.2.4.3
Specific Job Orders may vary, but unless agreed to by City in writing otherwise, the content
General Conditions
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GC-63 of 75
of Job Orders under the Agreement will generally be as follow, all of which will be signed
and/or initialed by JOC Contractor’s designated representative:
a.
The description of the Scope of the Work and Project Schedule (attached as
Exhibit A to the Job Order);
b.
The address or location of the Work;
c.
The Agreement Price for Work (Construction) included in the Project
(attached as Exhibit B to the Job Order);
d.
The name of the JOC Contractor representative for the Project;
e.
The Drawings and Specifications for the Project;
f.
If any shop drawings, project date and/or samples are required for the Job
Order, the date for delivery of each required item (included in the Project
Schedule, Exhibit A to the Job order); and
g.
Project Specific Provisions, if any, in Exhibit A to the Job Order,
including, without limitation, whether any of the following are required:
Pre-Construction Conference, weekly progress meetings, field office,
storage enclosure, materials and equipment handling facility, submittals,
shop drawings, product data, equipment list, samples, project manual,
schedule of values, Construction progress schedule, narrative reports,
progress report, progress charts, progress photographs, materials status
report, Construction diagram, Construction status report, operation and
maintenance data, operating maintenance instructions and parts list, and
as-build drawings.
16.2.5
Job Order Intent.
Each Job Order will be interpreted to include all items reasonably
necessary to complete the Project under that Job Order as described in the scope of the
Work in that Job
Order. All Work must be performed in a professional manner and all
materials used must be new and of the highest quality and of the type best adapted to
their purpose, unless otherwise specified. The Notice to Proceed date, and the award date
established therein, will be deemed an integral part of the Job Order the same as if set forth
therein.
16.3
INCIDENTAL DESIGN SERVICES
16.3.1
This effort includes all “extensions of design” for systems that are typically specified in
a performance oriented manner by consultants and designers. Examples include: fire
sprinkler
systems, fire alarm and sprinkler systems, DDC controls, control systems,
prefabricated metal
building and similar situations. These designs are normally provided
under submittals as a shop drawing with engineering backup and as appropriate, seals of
registered engineers specializing in the particular system.
16.3.2
Incidental design includes all documents, sketches, schematic diagrams, floor plan
layouts, equipment schedules and other documents produced by the JOC Contractor to
define the work required for projects that the City does not develop formal or abbreviated
designs requiring a seal by a registered engineer. Incidental design does not include
preparation of designs requiring an architect or engineer seal.
16.3.3
JOC Contractor represents, covenants, and agrees, and contractually assumes the
obligation to
furnish, all of the required Design Services through properly licensed and
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GC-64 of 75
experienced Design Professionals in complete accordance with all of the duties imposed
on a Design Professional under the Agreement Documents, Laws, Regulations, or Legal
Requirements, and the common law.
16.3.4
All Design Documents (and all other Project-related documents, models, computer
drawings and other electronic expression, photographs and other expressions CADD, and
BIM files and
images included) that JOC Contractor and/or JOC Contractor’s Design
Professional(s) prepare in connection with a Job Order and the copyrights therein
(collectively, the “Instruments of Service”) will be the property of City. JOC Contractor
covenants and agrees to execute any additional document reasonably requested by City
to confirm such assignment without any additionalcompensation.
16.4
CONSTRUCTION SERVICES
16.4.1
The following subsections of this Section 16.4 set forth requirements beyond those set forth
in Section 4 above which apply to Construction Services performed under a Job Order.
16.4.2
JOC Contractor must perform the Work using only those firms, team members and
individuals designated by JOC Contractor consistent with each Job Order or otherwise
approved by City pursuant to the General Conditions. No other entities or individuals may
be used without the prior written approval of the Project Manager.
16.4.3
Construction Phasing
16.4.3.1
City use of the facilities is anticipated while the Work is being performed. The Work must
be
planned and accomplished so that there will be a minimum of interference and
inconvenience
to occupants in the building and agencies in the vicinity and to other
craftsmen who may have to do work in the affected facilities. Any blockage of building
exits or driveways must be coordinated in advance.
16.4.3.2
If applicable, furniture, portable office equipment and wall appurtenances not rigidly
fastened to the walls must be moved by JOC Contractor, protected from damage and
replaced to the original position upon completion of the work. If the work required by
the Job Order will not allow furniture and portable office equipment to be replaced to its
original position, new locations will be designated by City. Incidental costs associated with
moving one-piece furnishings up to approximately 150 pounds to perform such tasks as
painting, carpet or tile replacement, etc.,
are considered a general cost of building
renovation and must be included in the JOC Contractor’s Coefficient. Costs for large scale
or wholesale removal and replacement of large quantities of
desks
or
modular
workstations, copiers, multiple full file cabinets, etc. to another location or storage outside
the work space, or disassembly and reassembly of modular furniture is not considered
part of the JOC Contractor’s Coefficient and will be priced separately.
16.4.3.3
The work must, so far as practicable, be done in definite sections or divisions and confined
to limited areas which must be completed before work in other sections or divisions are
begun.
16.4.4
Work Site Conflicts. In the event of a conflict between JOC Contractor and others in an
occupied facility or where other Contractors are performing work on the same facility
under other Agreements, City will decide to dispute and that decision will be final.
16.4.5
Ownership of Work Product. Work Product prepared or otherwise created in connection
General Conditions
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GC-65 of 75
with the performance of this Agreement, including the Work, are to be and remain the
property of City. For purposes of this provision, “Work Product” will include all designs,
drawings, plans, specifications, ideas, renderings and other information or matter, in
whatever form created (e.g., electronic or printed) and in all media now known or
hereinafter created. All Work Product will be considered Work Made for Hire as defined
in the United States Copyright Act 17 U.S.C. §101 (Copyright Act). If for any reason any such
Work is found not to be a work for hire, JOC Contractor hereby transfers and assigns
ownership of the copyright in such Work to City. The rights in this Section are exclusive to
City in perpetuity.
16.5
OPTIONAL LIQUIDATED DAMAGES
16.5.1
Specific Job Orders. City will have the right to assess liquidated damages in relation to
any specific JOC Project Agreement as set forth below.
16.5.2
Substantial Completion Liquidated Damages. JOC Contractor acknowledges and agrees
that
if
JOC Contractor fails to obtain Substantial Completion of the Work within the
Agreement Time, City will sustain extensive damages and serious loss as a result of such
failure. The exact amount of
such damages will be extremely difficult to ascertain.
Therefore, City and JOC Contractor agree that if JOC Contractor fails to achieve Substantial
Completion of the Work within the Agreement Time, City
will
be entitled to retain or
recover from JOC Contractor, as liquidated damages and not as a penalty, the sum per
calendar day as indicated in MAG § 108.9.
16.5.3
Final Acceptance Liquidated Damages. For the same reasons set forth in Section 16.5.2
above, City and JOC Contractor further agree that if JOC Contractor fails to achieve Final
Acceptance of the Work within the Agreement Time, City will be entitled to retain or recover
from JOC Contractor, as liquidated
damages and not as a penalty, the sum per calendar
day as indicated in MAG § 108.9 commencing from the actual date
of Substantial
Completion or Final Acceptance as required under any specific JOC Project Agreement.
16.5.4
MAG Liquidated Damages. Liquidated damages provisions in MAG § 108.9 may apply to any
specific JOC Project Agreement.
16.5.5
City may deduct liquidated damages assessed pursuant to this Section 16.5 from any
unpaid amounts then or thereafter due JOC Contractor under the Agreement or any
specific JOC Project Agreement between JOC Contractor and City. Any liquidated damages
not so deducted from any unpaid amounts due JOC Contractor must be payable to City
at the demand of City, together with interest from the date of the demand at the highest
lawful rate of interest payable to JOC Contractor.
16.6
PERFORMANCEMEASUREMENT
16.6.1
Performance Assessment. After the Final Acceptance of Work under each Job Order, City
will complete a written evaluation of the performance of JOC Contractor on the Job Order.
16.6.2
Consideration in Assignment of Work. JOC Contractor’s record of cost, schedule and
quality performance and comparative assessments will be significant considerations in
City’s determination whether to award future Job Orders. JOC Contractor agrees that any
determination by City not to not award future Job Orders or Option periods based on
performance will be at the sole discretion of City.
General Conditions
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GC-66 of 75
SECTION 17 - PROVISIONS APPLICABLE SOLELY TO PRE-CONSTRUCTION SERVICES FOR
CONSTRUCTION MANAGER AT RISK
17.1
ADDITIONALDEFINITIONS
The definitions set forth in Section 2 and 15.1 above will apply to all Pre-Construction
Services Agreements.
17.2
GENERAL
17.2.1
CM@Risk must perform the Services required by, and in accordance with the Agreement
Documents and as outlined in Exhibit A of the Agreement to the satisfaction of the
Project Manager, exercising the degree of care, skill, diligence and judgment a professional
construction manager experienced in the performance of such services for construction
and/or facilities of similar scope, function, size, quality, complexity and detail to the
Project in urban areas throughout the United States, would exercise at such time, under
similar conditions. CM@Risk must, at all times, perform the required services consistent
with sound and generally accepted engineering principles and construction management
and construction contracting practices.
17.2.2
As a participating member of the Project Team, CM@Risk must provide to City and Design
Professional a written evaluation of City’s Project Program and budget, each in terms of
the other, with recommendations as to the appropriateness of each. CM@Risk must
prepare a Baseline Cost Model that validates City’s budget. The Baseline Cost Model must
include all assumptions and basis of estimates in enough detail so that the Project Team
can compare
future detail estimates to the Baseline Cost model for variances. City and
Design Professional will provide all the reasonably required data that is available in
order to reach agreement between the team members that the Baseline Cost Model is an
accurate projection of the costs of the Project.
17.2.3
CM@Risk must attend Project Team meetings, which may include, but are not limited to,
bi- weekly Project management meetings, Project workshops, special Project meetings,
construction document rolling reviews, public meetings and partnering sessions. CM@Risk
attendance at design or other meetings in which CM@Risk is provided the opportunity but
does not actively participate and/or is not properly prepared is not acceptable. Repeated
instances of non-participation and/or lack of preparedness will be grounds for termination
of CM@Risk Agreement for default.
17.2.4
CM@Risk must provide Pre-Construction Services, described herein, in a timely manner
and consistent with the intent of the most current Drawings and Specifications. CM@Risk
must promptly notify City in writing whenever CM@Risk determines any Drawings or
Specifications are inappropriate for the Project and/or cause changes in the scope of Work
that deviates more
than the allowed contingencies within the Baseline Cost Model or
requires an adjustment in the Baseline Cost Model, Detailed Cost Estimate, Detailed
Project Schedule, GMP Proposals and/or in the Agreement Time for the Work, to the extent
such as established.
17.2.5
CM@Risk when requested by City, must attend, make presentations and participate as may
be appropriate in public agency and or community meetings, relevant to the Project.
CM@Risk must provide drawings, schedule diagrams, budget charges and other materials
describing the Project when their use is required or appropriate in any such public agency
meetings.
General Conditions
Revised: 7/20/22
GC-67 of 75
17.2.6
Ownership of Work Product. All Work Product prepared or otherwise created in connection
with
the performance of this Agreement, including the Work, are to be and remain the
property of City. For purposes of this provision, “Work Product” will include all designs,
drawings, plans, specifications, ideas, renderings and other information or material, in
whatever form created (e.g., electronic or printed) and in all media now know or hereinafter
created. All Work Product will be considered Work Made for Hire as defined in the United
States Copyright Act 17 U.S.C.
§101 (Copyright Act). If for any reason any such Work is found not to be a work for
hire, Contractor hereby transfers and assigns ownership of the copyright in such Work to
City. The rights in this Section are exclusive to City in perpetuity.
17.2.7
CM@Risk represents to City in completing Pre-Construction Services and providing the
reports
and analysis required thereunder, that Work can be properly and timely
constructed within the GMP Proposal, if accepted. CM@Risk does not assume any design
responsibilities unless
specifically called for in the scope of work, but CM@Risk will be
responsible for their errors, omissions or inconsistencies included in the Work.
17.3
DETAILED PROJECT SCHEDULE
17.3.1
The fundamental purpose of the Detailed Project Schedule is to identify, coordinate and
record the tasks and activities to be performed by all of the Project Team members and
then for the
Project Team to utilize that Deliverable as a basis for managing and
monitoring all member’s compliance with the schedule requirements of the Project.
Each Project Team member is responsible for its compliance with the Detailed Project
Schedule requirements.
CM@Risk
must, however, develop and maintain the Detailed
Project Schedule on behalf of and to be used by the Project Team based on input from the
other Project Team members. The Baseline Project Schedule must be developed as part
of the Baseline Cost Model. The Detailed Project Schedule must use the Critical Path
method (“CPM”) technique, unless required otherwise, in writing by City. CM@Risk must
use scheduling software acceptable to City to develop the Detailed Project Schedule.
The Detailed Project Schedule must be presented in graphical and tabular reports as
agreed upon by the Project Team. If Project phasing as described below is required, the
Detailed
Project
Schedule
must
indicate
milestone
dates
for
the
phases
once
determined.
As part of construction phase, City may require CM@Risk to prepare a
“resource
loaded” schedule for all work, including work performed by Subcontractors,
detailing each of the project tasks and the required/anticipated number of personnel per
dayfor each task. CM@Risk must also indicate on the schedule its ability to meet said
required/anticipated personnel requirements.
17.3.2
CM@Risk must include and integrate in the Detailed Project Schedule the services and
activities required of City, Design Professional and CM@Risk including all construction
phase activities
based on the input received from City and the Design Professional.
The Detailed Project Schedule must define activities as determined by City to the extent
required to show: (a) the coordination between preliminary design and various pre-
construction documents, (b) any separate long-lead procurements, (c) any permitting
issues, (d) any land, right-of-way, or easement acquisition, (e) bid packaging strategy and
awards to Subcontractors and Suppliers, (f) major stages of construction, (g) start-up and
commissioning, and (h) occupancy of the completed Work by City. The Detailed Project
Schedule must include by example and not limitation, proposed activity sequences and
durations for design, procurement, construction and testing activities, milestone dates for
actions and decisions by the Project Team, preparation and processing of shop drawings
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and samples, delivery of materials or equipment requiring long-lead time procurement (if
any), milestone dates for various construction phases, Total Float for all activities to the
extent authorized by City, relationships between the activities,
City’s occupancy
requirements showing portions of the Project having occupancy priority, and proposed
dates for Final Acceptance.
17.3.3
A Baseline Project Schedule must be initiated with the project Baseline Cost Model and
agreed
to by the project team at the same time. CM@Risk must update and maintain a
detailed Project
Schedule throughout pre-construction such that it will not require major
changes at the start of
the construction phase to incorporate CM@Risk’s plan for the
performance of the construction phase Work. CM@Risk must provide updates and/or
revisions to the Detailed Project Schedule for use by the Project Team, whenever required,
but no less often than at the Project Team meetings. CM@Risk must include with such
submittals a narrative describing its analysis of the
progress achieved to-date vs. the
Baseline Project Schedule, including any concerns regarding delays or potential delays, and
any recommendations regarding mitigating actions.
17.3.4
If phased construction is deemed appropriate at the time of developing the Baseline Cost
Model or during the development of the Detailed Project Schedule, and City approves,
CM@Risk must review the design and make recommendations regarding the phased
issuance of Construction Documents to facilitate phased construction of the Work, with
the objective of reducing the Project Schedule and/or Cost of the Work. CM@Risk must take
into consideration such factors as natural and practical lines of work severability,
sequencing
effectiveness, access and availability constraints, total time for completion,
construction market
conditions, labor and materials availability, and any other factors
pertinent to saving time and cost.
17.3.5
Long Lead Time Items. As part of developing the Detailed Project Schedule, CM@Risk must
identify all long lead time materials, fabrications, equipment, or other items which may
impact the Project Schedule and may require early action on the part of the Project Team.
Dates for selecting and ordering long lead time items will be included and highlighted
in the Detailed Project Schedule
17.3.6
Equipment Plan. Contractor must develop an Equipment Plan that addresses all rental
and
owned equipment, regardless of whether such equipment will be provided by
CM@Risk or subcontractor(s), that will be necessary to construct the Project and the cost
of which will be included as a Cost of the Work in the GMP Proposal. The Equipment Plan
will seek to minimize the cost of the equipment to City and maximize the efficient and
coordinated use of the equipment for completion of the Project. The Equipment Plan will
not only include the costs and allowable lease rates for the equipment, but will also include
an equipment schedule that will be incorporated into the Detailed Project Schedule and the
Schedule of Values submitted with the GMP Proposal.
17.4
DESIGN DOCUMENT REVIEWS
17.4.1
CM@Risk must evaluate periodically the availability of labor, materials/equipment, cost-
sensitive aspects of the design; and other factors that may create an unacceptable variance
to the Baseline Cost Model and/or Baseline Project Schedule.
17.4.2
CM@Risk must recommend, in conjunction with the Project Team, those additional surface
and subsurface investigations that, in its professional opinion, are required to provide the
necessary
information
for
CM@Risk
to
construct
the
Project.
These
additional
General Conditions
Revised: 7/20/22
GC-69 of 75
investigations, if agreed to
be necessary by the Project Manager and the Design
Professional, will be acquired by City and copies of the reports will be provided to CM@Risk.
17.4.3
CM@Risk must meet with the Project Team as required to review
designs during their
development. CM@Risk must familiarize itself with the evolving documents through
pre-
construction.
CM@Risk must proactively advise the Project Team and make
recommendations
on factors related to construction costs, and concerns pertaining to the
feasibility and practicality
of any proposed means and methods, selected materials,
equipment and building systems, and,
labor and material availability. CM@Risk must
furthermore advise the Project Team on proposed site improvements, excavation and
foundation considerations, as well as, concerns that exist with respect to coordination of
the Drawings and Specifications. CM@Risk must use established value analysis principles
in recommending cost effective alternatives.
17.4.4
CM@Risk must routinely conduct constructability and bid-ability reviews of the Drawings
and Specifications as necessary to satisfy the needs of the Project Team. The reviews must
attempt
to identify all discrepancies and inconsistencies in the Construction Documents
especially those related to clarity, consistency, completeness and coordination of Work of
Subcontractors and Suppliers.
17.4.4.1
CM@Risk must evaluate whether: (a) the Drawings and Specifications are configured to
enable efficient construction; (b) design elements are standardized; (c) construction
efficiency
is
properly
considered
in
the
Drawings
and
Specifications;
(d)
module/preassembly design is prepared to facilitate fabrication, transport and installation;
(e) sequences of Work required by or inferable from the Drawings and Specifications are
practicable; (f) the design has taken into consideration efficiency issues concerning access
and entrance to the site, laydown and storage
of materials, staging of site facilities,
construction parking, and other similar pertinent issues; and (g) the design maintains
continued operation of the existing City systems and maintains
traffic on adjacent
roadways. CM@Risk must also review the Drawings and Specifications to ensure that what
is depicted therein can be constructed as designed and must promptly inform the Project
Team of any issues.
17.4.4.2
CM@Risk must check cross-reference and complementary Drawings and sections within
the Specifications and in general evaluate whether: (a) the Drawings and Specifications
are sufficiently clear and detailed to minimize ambiguity and to reduce scope interpretation
discrepancies; (b) named materials and equipment are commercially available and are
performing well, or otherwise, in similar installations; (c) Specifications include alternatives
in the event a requirement cannot be met in the field; and (d) in its professional opinion, the
Project is likely to be subject to Differing Site Conditions.
17.4.4.3
The results of the reviews must be provided to Project Team in formal, written reports
clearly
identifying all reviewed documents and the discovered discrepancies and
inconsistencies in the Drawings and Specifications with notations and recommendations
made on the Drawings, Specifications and other documents. CM@Risk must meet with
Project Team to discuss any findings and review reports.
17.4.4.4
CM@Risk’s reviews must be from a Contractor’s perspective, and though it will serve to
eliminate/reduce the number of RFIs) and changes during the construction phase,
responsibility for the Drawings and Specifications will remain with the Design Professional
and not CM@Risk.
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17.4.5
It is CM@Risk’s responsibility
to assist the Design Professional in ascertaining that, in
CM@Risk’s professional opinion, the Construction Documents are in accordance with
applicable Laws, Regulations, or Legal Requirements, building codes, sound engineering
principle’s rules and regulations. If CM@Risk recognizes that portions of the Construction
Documents are at variance with applicable laws, statutes, ordinances, building codes,
sound engineering principle’s rules and regulations, it must promptly notify the Project Team
in writing, describing the apparent variance of deficiency. However, the Design Professional
is ultimately responsible for the compliance of the Drawings and Specifications with those
laws, statutes, ordinances, building codes, rules and regulations.
17.4.6
The Project Team will routinely identify and evaluate using value analysis principles and
alternate systems, approaches, design changes that have the potential to reduce Project
costs while still delivering a high quality and fully functional Project consistent with
the Project Program. If the Project Team agrees, CM@Risk in cooperation with the Design
Professional,
will perform a cost/benefit analysis of the alternatives and submit such in
writing to the Project Team. City, through the Project Manager, will direct which alternatives
will be incorporated into
the Project.
The Design Professional will have full design
responsibility for the review and incorporation of CM@Risk suggested alternatives into
the Drawings and Specifications. CM@Risk must analyze the costs and schedule impacts of
the
alternatives
against the
Baseline
Cost
Model
and
Schedule
and
provide
a
recommendation for the Project Team’s consideration
and City’s approval prior to the
establishment of the GMP.
17.5
BASELINE COSTS MODEL, DETAILED COST ESTIMATES, AND SCHEDULE OF VALUES
17.5.1
At the conclusion of the Master Planning and Programming, if required, CM@Risk will
review all available information regarding the design and scope of the Project using
CM@Risk’s
experience in performing similar work, knowledge of similar projects and
current and projected
construction costs and, based upon that review, must develop a
Baseline Cost Model for review by the Project Team and approval by City. Once approved
by City, the Baseline Cost Model will be continually referenced as detailed estimates are
created as the design progresses throughout Pre-Construction until the final GMP for the
entire Project is established. A final GMP for the entire Project must be established and
approved by City prior to the start of construction. It is the responsibility of CM@Risk
to ensure City has sufficient information to evaluate and approve a final GMP prior to
the time necessary to start construction so construction can be completed within the
Agreement Time. The Project Detailed Cost Estimate will be the best representation from
CM@Risk of what the complete functional Project’s construction costs will be as indicated
by the most current available documents and will be
constantly checked against the
Baseline Cost Model. CM@Risk must communicate to the Project Team and assumptions
made in preparing the Baseline Cost Model. The Baseline Cost
Model must support
CM@Risk’s Detailed Cost Estimates and may be broken down initially as dictated by the
available information, as required by City.
17.5.2
After receipt of the Design Professional’s most current documents from certain specified
pre- construction milestones, CM@Risk must provide a draft Detailed Cost Estimate
including a detailed written report detailing any variances to the Baseline Cost Model and
Baseline Project Schedule. The Design Professional and CM@Risk will reconcile any
disagreements on the estimate to arrive at an agreed upon Detailed Cost Estimate for the
construction costs based on
the scope of the Project through that specified pre-
construction milestone. Pre-Construction milestones applicable to this paragraph are:
General Conditions
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Master Planning and Programming, Schematic Design, 50% Design Development, 100%
Design Development, and 50% Construction Drawings, If no consensus is reached, City will
make the final determination. If the Project Team
requires additional updates of the
Detailed Cost Estimate beyond that specified in this paragraph, CM@Risk must provide the
requested information in a timely manner.
17.5.3
If at any point the Detailed Cost Estimate submitted to City exceeds the previously
accepted Baseline Cost Model or previously approved Detailed Cost Estimate agreed to as
set forth in Section 17.5.2 above, CM@Risk must make appropriate recommendations to
project Team on means/methods, materials, and or other design elements that it
believes will reduce the estimated construction costs, such that it is equal to or less than
the established Project Team’s Baseline Cost Model.
17.5.4
Unless other levels of completion are agreed to in writing in the Construction Documents,
at 50% Construction Drawings and included with the associated report, CM@Risk must
also submit to the Project Team for review and approval a Schedule of Values that complies
with the following requirements. The Schedule of Values must be based on City standard
bid schedule and highlight significant variances from any previously submitted Schedule
of Values. The Schedule of Values must be directly related to the breakdowns reflected in
the Detailed Project Schedule and CM@Risk’s Detailed Cost Estimate. In addition, the
Schedule of Values must: (a) detail unit prices and quantity take-offs, (b) detail all other
contingencies and unit price Work shown and specified in the detailed design documents.
17.5.5
CM@Risk is to track, estimate/price and address the Project Team’s overall project cost issues
that arise outside of the Baseline Cost Model and the latest approved Detailed Cost
Estimate
such as: City generated changes, Project Team proposed changes, alternate
system analysis, constructability items and value engineering analysis. The system used
to implement this process will be referred to as the Design Evolution Log. This is to be
addressed between the Baseline Cost Model and the Master Planning and Programming
Detailed Cost Estimate, and then (unless other levels of completion are agreed to in writing
in the Construction Documents) between the Detailed Cost Estimates for each of the pre-
construction milestones thereafter, Schematic Design, 50% Design Development, 100%
Design Development, and 50%
Construction Documents, and the bid packages for all
Phases.
17.5.6
Upon request by City, CM@Risk must submit to City a cash flow projection for the Project
based on the current updated/revised Detailed Project Schedule and the anticipated level of
payments for CM@Risk during the design and construction phases. In addition, if requested
by City and based on information provided by City, CM@Risk must prepare a cash flow
projection for the entire Project based on historical records for similar types of projects
to assist City in the financing process.
17.5.7
Construction Water. CM@Risk must estimate the quantity of water to be used and include
the cost thereof in each Detailed Cost Estimate and GMP Proposal provided by City.
17.6
SUBCONTRACTOR AND MAJOR SUPPLIER SELECTIONS
17.6.1
There are two ways to select Subcontractors and major Suppliers prior to submission of a
GMP Proposal: (1) qualifications-based selection; or (2) a combination of qualifications
and price. Except as noted below, the selection of Subcontractors/Suppliers is the sole
responsibility of CM@Risk. In any case, CM@Risk is solely responsible for the performance
of the selected Subcontractors/Suppliers, and for compliance with the requirements of
General Conditions
Revised: 7/20/22
GC-72 of 75
Title 34 of the Arizona Revised Statutes in the selection of a Subcontractors/Suppliers,
to the extent applicable. CM@Risk must comply with its Subcontractor Selection Plan
submitted with its Statement of Qualifications.
17.6.2
City may approve the selection of a Subcontractor(s) or Suppliers(s) based only on their
qualifications when CM@Risk can demonstrate it is in the best interest of the Project. All
Work
that is performed, after such a qualifications-based selection, for a price that is
negotiated by CM@Risk will be billed in accordance with the GMP for actual costs and may
be subject to audit by City.
17.6.2.1
Qualifications based selection of a Subcontractor(s)/Supplier(s) should only occur prior to
the submittal of the GMP Proposal.
17.6.2.2
If a Subcontractor/Supplier selection plan was submitted and agreed to by City, CM@Risk
must apply the plan in the evaluation of the qualifications of a Subcontractor(s) or
Supplier(s) and provide City with its review and recommendations.
17.6.2.3
CM@Risk must receive written City approval for each selected Subcontractor(s) and
Supplier(s).
17.6.2.4
CM@Risk must negotiate costs for services/supplies from each Subcontractor/Supplier
selected under this method.
17.6.3
All Work must be competitively bid unless a Subcontractor or Supplier was selected pursuant
to Section 17.6.2 above.
17.6.3.1
CM@Risk must develop Subcontractor and Supplier interest, submit the names of a
minimum of three qualified Subcontractors or Suppliers for each trade in the Project for
approval by City and solicit bids for the various Work categories. If there are not three
qualified Subcontractors/Suppliers available for a specific trade or there are extenuating
circumstances warranting such, CM@Risk may request approval by City to submit less
than three names. Without prior written notice to City, no change in the recommended
Subcontractors/Supplies will be allowed.
17.6.3.2
If City objects to any nominated Subcontractor/Supplier or to any self-performed Work for
good
reason, CM@Risk must nominate a substitute Subcontractor/Supplier that is
acceptable to City.
17.6.3.3
CM@Risk must distribute Drawings and Specifications, and when appropriate, conduct a
Pre- Bid Conference with prospective Subcontractors and Suppliers.
17.6.3.4
If CM@Risk desires to self-perform certain portions of the Work, it must request to be one of
the approved Subcontractor bidders for those specific bid packages. CM@Risk’s bid will
be evaluated in accordance with the process identified below. If events warrant and City
concurs
that it is necessary in order to ensure compliance with the Project Schedule
and/or the most recent Detailed Cost Estimate, CM@Risk may be authorized to self-
perform Work without bidding or rebidding the Work. When CM@Risk self-performs work
without bidding, only the actual costs associated with performing the Work in accordance
with the approved GMP will be billed and may be subject to audit by City.
17.6.3.5
CM@Risk must receive, open, record and evaluate
the bids; provided, however, that if
CM@Risk or one of its affiliates is bidding to self-perform the Work that is the subject of the
bid, then the bids must be received, opened, recorded and evaluated by Project Manager
General Conditions
Revised: 7/20/22
GC-73 of 75
instead of CM@Risk. Bids for each category of Work must be opened and recorded at a
pre-determined
time. The apparent low bidders must be interviewed to determine the
responsiveness of their
proposals. In evaluating the responsiveness of bid proposals
CM@Risk, in addition to bid price,
may consider the following factors: past performance
on
similar
projects,
qualifications
and
experience of personnel assigned, quality
management plan, approach or understanding of the
Work to be performed, and
performance
schedule
to
complete
the
Work.
The
final
evaluation
of
Subcontractor/Supplier bids must be done with Project Manager in attendance to observe
and witness the process. CM@Risk must resolve anySubcontractor/Supplier bid withdrawal,
protest or disqualification in connection with the award at no increase in the Cost of Work.
17.6.4
CM@Risk will be required to prepare two different reports on the subcontracting process.
17.6.4.1
Within fifteen days after each major Subcontractor/Supplier bid opening process;
CM@Risk
must
prepare
a
report
for
City’s
review
and
approval
identifying
the
recommended Subcontractors/Supplier for each category of Work. The report must detail:
(a) the name of the
recommended Subcontractor/Supplier and the amount of the
Subcontractor/Supplier bid for each sub-agreement; (b) the sum of all recommended
Subcontractor/Supplier bids received; (c) and trade work and its cost that CM@Risk intends
to self-perform, if any.
17.6.4.2
Upon completion of the Subcontractor/Supplier bidding process, CM@Risk must submit
a summary report to City of the entire Subcontractor/Supplier selection process. The report
must indicate, by bid process, all Subcontractors/Suppliers contacted to determine
interest, the Subcontractors/Suppliers solicited, the bids received and costs negotiated,
and the recommended Subcontractors/Suppliers for each category of Work.
17.6.5
The approved Subcontractors/Suppliers will provide a Schedule of Values with their bid
proposals, which will be used to create the overall Project Schedule of Values.
17.6.6
If after receipt of sub-bids or after award to Subcontractors and Suppliers, City objects to
any
nominated Subcontractor/Supplier or to any self-performed Work without any
reasonable basis,
CM@Risk must nominate a substitute Subcontractor or Supplier,
preferably if such option is still available, from those who submitted Subcontractor bids
for the Work affected. Once such substitute Subcontractors and Suppliers are consented
to by City, CM@Risk’s proposed GMP
for the Work or portion thereof must be
correspondingly adjusted to reflect any higher or lower costs form any such substitution.
17.7
GMP PROPOSAL
17.7.1
When a GMP Proposal is submitted for a phase of the Work, the GMP will have a Detailed Cost
Estimate of the Costs of the Work (as set forth in Section 15.2) in each phase of the Work
that is being proposed plus the current estimate for all other Work. City will not approve
the GMP for the phase of work without a total estimate for the complete Project. City may
request a GMP
Proposal for all or any portion of the Project and at any time during pre-
construction. Any GMP Proposals submitted by CM@Risk must be based on and consistent
with Baseline Cost Model and the current update/revised Detailed Cost Estimate at the
time of the request and include any clarifications or assumptions upon which the GMP
Proposal(s) are based.
17.7.2
A GMP Proposal for the entire Project will be the sum of the Cost of the Work, CM@Risk Fee,
and General Conditions Cost. CM@Risk guarantees to complete the Project at or less than
General Conditions
Revised: 7/20/22
GC-74 of 75
the final GMP Proposal amount plus approved Change Orders. CM@Risk will be responsible
for any costs for expenses that would cause the Cost of the Work actually incurred,
including the Construction Fee and General Conditions Costs, to exceed the GMP.
17.7.3
CM@Risk must prepare its GMP Proposal in accordance with City’s request for GMP Proposal
requirements based on the most current completed Drawings and Specifications at that
time, which unless otherwise directed by City in writing, will be at 100% Construction
Drawings. CM@Risk must mark the face of each document of each set upon which its GMP
Proposal is
based.
These documents must be identified as the GMP Plans and
Specifications. CM@Risk
must send one set of those documents to the Project Manager,
keep one set and return the third set to the Design Professional.
17.7.4
An updated/revised Detailed Project Schedule, Equipment Plan, and Schedule of Values
must
be included in any GMP Proposal(s), all of which must reflect the GMP Plans and
Specifications
the Detailed Project Schedule must be shown in relationship to the Project
Schedule and identify any variance to the Baseline Project Schedule. Any such Detailed
Project Schedule updates/revisions must continue to comply with the requirements of
Section 17.3.1 through 17.3.5.
17.7.5
GMP Proposals(s) Review and Approval
17.7.5.1
CM@Risk must meet with the Project Team to review the GMP Proposal(s) and the written
statement of its basis.
In the event the Project Team discovers inconsistencies or
inaccuracies
in the information presented, CM@Risk
must make adjustments
as
necessary to the GMP Proposal.
17.7.5.2
If during the review and negotiation of GMP Proposals design changes are required, City
may authorize and cause the Design Professional to revise the GMP Plans and Specifications
to the extent necessary to reflect the agreed-upon assumptions and clarifications contained
in the final approved GMP Proposal. Such revised GMP Plans and Specification will be
furnished to CM@Risk. CM@Risk must promptly notify the Project Team in writing if any
such revised
GMP Plans and Specifications are inconsistent with the agreed upon
assumptions and clarifications.
17.7.6
All portions of or items comprising the GMP Proposal are subject to audit by City, as
deemed appropriate by City, including, without limitation, any based upon unit prices or
Work to be self- performed by CM@Risk, or its affiliates.
17.8
PAYMENT PROCEDURE FOR PRE-CONSTRUCTION SERVICES
17.8.1
Requests for monthly payments by CM@Risk for Pre-Construction Services must be
submitted monthly and must be accompanied by a progress report, detailed invoices
and receipts, if
applicable. Any requests for payment must include, as a minimum, a
narrative description of the tasks accomplished during the billing period, a listing of any
Deliverables submitted, and copies of any Subconsultants’ requests for payment, plus
similar narrative and listings of Deliverables associated with their Work. Payment for
services negotiated as a lump sum will be made in accordance with the percentage of work
completed during the preceding month.
17.8.2
In no event will City pay more than seventy-five (75%) of the Agreement Price until
acceptance of ALL Pre-Construction Services and award of the final approved Construction
Services Agreement for the entire Project by City Council. If CM@Risk does not prepare a
General Conditions
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GC-75 of 75
GMP Proposal that is
acceptable to City, or the
GMP Proposal exceeds the City’s
Construction Budget, then CM@Risk understands and acknowledges that it will forfeit any
right to receive the 25% of the Agreement Price being retained by City.
17.8.3
CM@Risk agrees that no charges or claims for costs or damages of any type will be made by
it for any delays or hindrances beyond the reasonable control of City during the progress of
any
portion of Pre-Construction Services specified in this Agreement. Such delays or
hindrances, if
any, will be solely compensated for by an extension of time for such
reasonable period and may be mutually agreed between the parties. It is understood
and agreed, however, that permitting CM@Risk to proceed to complete any such Services,
in whole or in part after the date to which the time of completion may have been extended,
will in no way act as a waiver on the part of City of any of their respective legal rights herein.
17.8.4
No compensation to CM@Risk will be allowed contrary to Article I, Chapter I, Title 34 of the
Arizona Revised Statutes.
17.8.5
If any service(s) executed by CM@Risk is abandoned or suspended in whole or in part, for
a period of more than 180 days through no fault of CM@Risk, CM@Risk is to be paid for
the services performed prior to the abandonment or suspension.
17.9
SURVIVAL OF THE DESIGN SERVICES AGREEMENT, DUTIES, OBLIGATIONS AND
WARRANTIES
If the GMP Proposal is accepted by City and a Construction Agreement is entered into
between City and CM@Risk, the duties, obligations and warranties of CM@Risk under the
Pre- Construction Services Agreement survive and are incorporated into the resulting
Construction Agreement.
App’d 7/20/2022
APP-1 of 34
General Conditions Appendices
SECTION 15 – APPENDICES
The following Appendices attached hereto are referenced in the General Conditions and
are incorporated herein.
Appendix 1 – Policy Statement for Calculating Delays and Damages
Appendix 2 – Cost Reduction Incentive Proposals for Design Bid Build Agreements
Appendix 3 – Contractor’s Affidavit Regarding Settlement of Claims
Appendix 4 – Forms of Performance Bond
Appendix 5 – Forms of Payment Bond
Appendix 6 – Dispute Resolution
Appendix 7 – Certificate of Completion
Appendix 8 – Construction Sign Detail
Appendix 9 – Cost of the Work (Applicable solely to Construction Manager at Risk and
Job Order Contracting)
Appendix 10 Landscape Establishment Period
App’d 7/20/2022
APP-2 of 34
General Conditions
Appendix 1
CALCULATING DELAYS AND DAMAGES
The purpose of this policy statement is to establish guidelines and procedures for negotiation
between the Contractor and City of Chandler relating to compensation for delays pursuant to
Arizona Revised Statutes (A.R.S.) 34-221(F). This policy statement contains notice requirements in
addition to those set forth in the Agreement Documents, and will be the Agreement Provision
contemplated by that statute.
NOTE: As used herein, the term “Engineer” will refer to the City of Chandler City Engineer or
his/her designated representative. Nothing in this Policy Statement will be construed to void any
provision in the Agreement which requires timely notice of delays or provides for arbitration or
any other procedure for settlement or provides for liquidated damages.
I.
TYPES OF DELAYS:
For the purposes of this document, there are essentially four types of delays encountered by
City of Chandler Construction Contractors; excusable/compensable, excusable/non-
compensable, non- excusable, and concurrent. Only delays that extend Agreement
Completion Time set forth in the Agreement Document will be considered for issues
relating to Agreement extensions or additional compensation. All other delays are
considered to be activity delays and do not entitle the Contractor to either time
extensions or additional compensation. Agreement Completion Time will be defined as the
date set forth in Maricopa Association of Governments (MAG) Uniform Standard Specification
Section 101 and as may be modified by the Agreement Documents.
A.
Excusable/Compensable:
These are delays caused solely by the City’s actions or inactions, are unreasonable
under the circumstances, and which were not within the contemplation of the
parties to the Agreement at or prior to the time of execution of the
Agreement. Since the Contractor presumably has no control over the events
causing the delay, he may be entitled to both Agreement time extensions and
additional compensation for delay damages. Further, he/she may be entitled to
additional compensation from the impact of that delay on other work. Examples of
excusable/compensable (E/C) delays include:
failure to properly locate
an
underground City-owned utility within 2 feet of the actual location; failure to
relocate City-owned utilities far enough in advance of construction in an area
where the Contractor is scheduled to work that it delays start or completion of
the Contractor’s regularly scheduled work; failure to provide City-furnished
equipment or materials in a timely manner if required by the Agreement; failure
to acquire necessary Right-of-Way or Public Utility Easements prior to the Contractor
beginning Work in the area; failure to timely return Shop Drawings or other
Agreement Submittals in accordance with the Agreement; unreasonable delay by
the City in making decisions which affect critical activities; surveying errors when the
City is contractually responsible for providing Project Surveying. This list is not meant
to be all inclusive, but is intended merely as examples of the type of City action or
inaction which can result in a Contractor’s claim for additional time and
App’d 7/20/2022
APP-3 of 34
General Conditions
Appendix 1
compensation.
B.
Excusable/Non-compensable:
These are delays over which neither the City nor the Contractor had control. Since
both parties to the Agreement have been potentially damaged by the delay, but
neither have caused it, only Time Extensions are warranted. Examples of excusable,
non-compensable (E/N) delays include: unusually severe weather; fire; acts of God;
failure of non-City owned utilities (SRP, CenturyLink, Cable TV, Southern Pacific
Railroad, and Southwest Gas, etc.) to properly or timely locate accurately; failure of
non-City owned utilities to relocate in advance of construction; the voluntary or
involuntary filing for Bankruptcy protection by a Supplier or Subcontractor which
causes the Supplier/Subcontractor to fail to meet a contractual deadline provided
the Contractor can provide documentation that he/she executed the required
Purchase Orders/Subcontract Agreements and received delivery schedules which,
if met, would have eliminated the delay; delays as a result of an incomplete
shutdown of a City or non-City owned utility main (the City does not guarantee a
complete shutdown). This list also is not necessarily all inclusive but merely
indicative of type and class of E/N delays.
C.
Non-excusable/Non-compensable:
These are delays caused by the actions or inactions of Contractor or an officer,
employee, agent, Subcontractor, Supplier or any other party for whom the
Contractor is responsible. Since the Contractor has assumed responsibility for the
risks associated with the events that caused the delay, he/she are not entitled to
either time extensions or monetary delay damages. All non-excusable delays are
also non-compensable. Examples of non- excusable, non-compensable (N/N)
delays include: failure to perform by the Contractor, its Subcontractors and/or
Suppliers (except as noted in section I.B above); failure to provide adequate
labor,
materials,
and/or
equipment
on
the
Project;
failure
to
perform
contractually-required coordination with utilities, agencies and other Contractors;
failure to notify the Engineer, in writing, of delay impacts within two working days,
as required by MAG 104.2.3, or the next work day, as required by MAG 109.8.2;
failure to timely submit Shop Drawings; failure to pothole or otherwise visually locate
utilities sufficiently ahead of the Work to allow the Engineer to direct corrective
action when necessary; delays due to retesting of previously failed work, re-
inspection, and/or restaking resulting from faulty workmanship, poor quality
control, or lack of compliance with Agreement Specifications. Again, this list is not
necessarily all inclusive.
D.
Concurrent:
When two or more delays occur simultaneously or overlap, each delay is
analyzed separately to determine its impact on the overall project completion date
based on when that delay started. Once again, only those delays which actually
extend the Agreement completion
time
are
considered
as
delays.
The
concurrent delay is considered an additional delay only to the extent it prolongs
App’d 7/20/2022
APP-4 of 34
General Conditions
Appendix 1
the delay to the Agreement Completion Time beyond the date that the one it is
concurrent with had already delayed that date. For example, if two delays are
concurrent, and one is five days long and the second is seven days long, the second
concurrent delay will only extend the Agreement Completion Time by two days. The
same method of analysis is used when there are multiple concurrent delays. Only
those extending the Project Completion Date are considered to be delays for the
purposes of this policy. The portion of each concurrent delay that delays the
completion of the work is classified in the same manner as described previously for
individual delays and being either E/C, E/N or N/N.
An example of a concurrent delay is where the City delays furnishing material,
but the Contractor could not have installed it anyway due to unusually severe
weather. The effect of the first delaying activity will extend for the full duration
and will be considered controlling on the Contractor’s schedule. A subsequent,
concurrent delay will thereafter only be considered to effect the project completion
(if at all) once the first delaying activity has ceased to impact the project completion.
In this case, if the unusually severe weather continued and delayed the work after
the material was delivered, the first portion of the delay would be classified E/C
(delay for material) and the second as E/N (delay due to unusually severe weather).
Using the procedure set forth above, the entire concurrent portion would be
considered E/C as shown in the chart which follows.
Example of a Concurrent Delay:
E/C Delay
E/N Delay
City Related Material Delay
Rain Delay
II.
ANALYZING THE DELAY:
The Contractor must provide all documents required or requested by the Engineer to analyze the
delay(s). It is important to understand that, prior to the delay analysis, delays and their impacts are
alleged issues. The information the Contractor provides will be compared with the Inspector’s Daily
Log, Schedules and other available Project information and together they will support or refute that
delays occurred and, if so, how they impact other work and the overall project completion. The
Contractor’s delay in providing these documents will be considered prima facie evidence that either
the delay did not occur or it did not impact the Project Completion Date and any claim for time
extension or damages will be denied.
App’d 7/20/2022
APP-5 of 34
General Conditions
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The Engineer will accept delay analyses in CPM format, as these may demonstrate to his/her
satisfaction whether or not Project Completion has been impacted by a specific event. If the
Contractor chooses not to use CPM scheduling procedures, then the burden will be on the
Contractor to prove to the Engineer’s satisfaction that the Project Completion has been
impacted. The procedures below assume that the Contractor is using CPM scheduling methods.
As a minimum the Contractor must provide the following materials to the Engineer:
A.
As-Planned Schedule. The initial construction schedule, required by the Agreement
Documents, will be considered the baseline schedule. It is to the Contractor’s
advantage that the As-Planned (baseline) Schedule be as detailed as possible in
order for delays, as they occur, to be incorporated into the schedule in
representative locations. It is also to the Contractor’s advantage to use a computer
software program to generate the schedule since updated schedules are required
monthly by the Agreement Documents and since updated schedules are
required to support delays and requests for additional compensation for delays.
The As-Planned (baseline) Schedule must be presented in network format which
clearly shows the interrelationships of the activities. The Contractor must also
provide a printout of the activities showing early start, early finish, late start, late
finish, duration and float. The activity list printout must also indicate predecessor
and successor activities.
B.
As-Built Schedules. The as planned (baseline) schedule must be updated with
complete progress-to-date information (actualized) up to the date of the start of the
alleged delay. Each updated schedule will serve as the as-built schedule for analyzing
the alleged delay and provide a new baseline as-planned schedule for the next delay.
This process must be repeated for each alleged delay as it occurs. In updating the
baseline schedule, the alleged delay must be treated as an activity and inserted into
the schedule as a predecessor to the impacted activity (ies). When an activity that
has already started is impacted, it is preferable to divide this activity into two
parts and show the impact affecting the second part. For schedules which
incorporate a time line (or data date), the delay activity must be inserted at the time
it actually occurred. Some software scheduling programs have a PAUSE-RESUME
feature that can be used to facilitate the requirements. The updated schedule must
also be accompanied by a listing of activities as with the baseline schedule. This
activities list must contain the alleged delay as an activity showing the duration and
the activities which are predecessors and successors to it. When computer
generated schedules are used, the Contractor must provide, in electronic media
format, the complete data files for the updated schedule that included the delay
activity, preferably either in Suretrak or in Microsoft Project. Each electronic media
must contain a label identifying the Project name, Contractor’s name, program
name and version number, data date and project finish date.
C.
Other Documents: In order to determine the amount of the alleged delay and if
it is compensable, the Contractor must provide all backup documentation relevant to
the issue and as required by the Engineer. This documentation must include copies
of such items as: purchase orders; delivery schedules; correspondence; memoranda
of telephone calls; force account daily worksheets (initialed by the Inspector);
payroll data; estimating (bid) worksheets; and any other materials which may be
App’d 7/20/2022
APP-6 of 34
General Conditions
Appendix 1
requested by the Engineer.
D.
Procedure: Only after receipt of sufficient documentation will the Engineer analyze
each alleged delay and determine if it is supported or refuted. If supported, the
Engineer will determine if it is excusable or non-excusable, compensable or non-
compensable. If the Engineer determines that the delay did not affect the Project
Completion, the as-planned schedule, which has been updated to the date of the
alleged delay, must be revised to indicate this. If the Engineer determines the delay
did occur but was N/N, then no time extension will be granted. It is imperative that
an actualized schedule be submitted as soon as the occurrence of the alleged delay
is known. In no event will the Contractor submit an actualized updated schedule
later than 60 days after the occurrence of the alleged delay becomes known.
If the Engineer determines the delay did occur and was excusable but, due to a
reason listed in section I.B. is non-compensable, he/she will determine the length
of the E/N delay and prepare a Change Order to add that time to the Agreement.
The Engineer’s decision will be final.
If the Engineer determines the delay was excusable and compensable, he/she will
determine the length of the E/C delay and proceed to review the Contractor’s
damage calculations in accordance with Section III. The Engineer will check the
Contractor’s calculations, review the backup documentation provided, and prepare a
Change Order to cover both the additional compensation and the time extension.
The Engineer’s decision on both the time extension and additional compensation for
the delay will be final.
If the issue involves a concurrent delay, the Engineer will analyze available data
to determine the portions which are E/C, E/N, and/or N/N as described above. The
Engineer will proceed to determine the length of E/C delay and verify the Contractor’s
delay damage calculations, if any are provided. Upon completion of this review, the
Engineer will prepare a Change Order for the Contractor’s review and signature.
The Engineer’s decision regarding excusable delay and additional compensation for
the delay is final.
The amount of time the Engineer will require to analyze the alleged delay(s) will
depend upon the Engineer’s workload, the complexity of the delay analysis,
availability of supporting data, extent of cooperation by the Contractor, and other
factors beyond the Engineer’s control. It is entirely possible other delay(s) may
occur while the Engineer is analyzing particular claim for delay(s). The Engineer’s
failure to respond to the Contractor in a set period of time will not be used as the
basis for a further delay claim or as justification for extending and existing delay
claim. The time required for delay analysis by the Engineer will not be counted
against the time allotted for processing Final Payment as required by (MAG Section
109.7(B)) or the release of retention and Final Payment as prescribed by A.R.S.
Arizona Revised Statutes §34-221.
III.
CALCULATING MONETARY DELAY DAMAGES:
Additional compensation for delay, when authorized by the Engineer, will be calculated in accordance
App’d 7/20/2022
APP-7 of 34
General Conditions
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with MAG Section 109.5 ACTUAL COST WORK with the following exceptions:
A.
No additional compensation or other monetary damages will be awarded or paid for
any loss of anticipated profits by the Contractor, Subcontractors or Suppliers.
B.
No additional compensation or other monetary damages will be awarded for home
office overhead or non-project general conditions of the Contractor, Subcontractors
or Suppliers.
C.
Equipment:
1.
Contractor-owned equipment rate calculations must be computed in
accordance with Section 109.04(D)(3), Arizona Department of Transportation
“Standard Specifications for Road and Bridge Construction,” 2008 or latest
edition and as modified herein. Year and regional adjustment factors must
be based on the most recent publications of the Rental Rate Blue Book for
Construction
Equipment, published
by
the
Equipment
Guide-Book
Company, San Jose, CA, same as provided by ADOT and in print as of the
date of alleged delay. In no event will the compensation for Contractor-
owned equipment exceed the purchase price, including tax, paid by the
Contractor for the equipment. Compensation will not be allowed for small
tools or equipment that show a daily equipment rental rate of less than $5.00
per day or for unlisted equipment that has a value of less than for
hundred dollars ($400.00).
2.
For leased and rented equipment or equipment not otherwise listed in the
Blue Book, rental contracts, or other supporting data will be used to establish
the hourly rate. No hourly operating expense will be allowed for delay on
standby equipment. In no case will equipment be considered for rental which
exceeds the hourly rate for the first eight hours and the daily rate
divided by eight for all additional hours as compared with similar
equipment listed in the Blue Book. The hourly standby rate must be
computed as the lesser of:
a.
Dividing the monthly invoice or rental value by 176 hours
per month when the equipment is utilized by the Contractor
for more than three weeks;
b.
Dividing the monthly invoice or rental value by 40 hours per
week when the equipment is utilized by the Contractor for
more than three days.
In no event will compensation be paid for delay at more than
8 hours per day or 40 hours per week.
3.
Except for vehicles used by supervisory personnel, all equipment will be paid
at the “standby” rate during the delay period.
4.
Equipment brought solely to mitigate the delay (such as pumps, light plants,
etc.) may be paid in accordance with ADOT section 109.04(D) (3).
App’d 7/20/2022
APP-8 of 34
General Conditions
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5.
The Blue Book regional adjustment will apply in determining rental rates.
D.
Material:
Allowable material charges may include, in addition to material incorporated in the
work material used to mitigate the delay such as barricades, plates, shoring, cold
mix, etc. Except in emergencies the Contractor will not employ such material
without the prior written approval of the Engineer.
E.
Labor:
1.
Except for Supervisory Personnel (Superintendent, Project Engineer, and
Foremen), labor wages will not be paid after the first one-half day of
claimed delay or impact. It is expected the Contractor will reassign or
layoff unneeded employees.
2.
For Foreman wages to be included, that Foreman must have been
actively employed on the project prior to the commencement of the delay
and be directly responsible for the activity being delayed.
3.
Labor burden must be actual amounts incurred but must not exceed the
ADOT approved rate.
F.
All costs (equipment, material, and labor) must be substantiated by the City of
Chandler’s Daily Work Reports.
IV.
DOCUMENT REQUIRED FOR CLAIM ANALYSIS:
For purposes of reviewing the Contractor’s request for additional compensation, it will be required
that the Contractor submit the following listed information. Information requested must be prepared
on forms which are substantially similar to the City of Chandler’s Daily Work Report form, a copy of
which is attached as an exhibit.
A.
Labor:
For each employee, laborer, and foreman, for which compensation is requested:
Name, classification, dates of work performed, daily hours worked, total hours worked,
labor rates, labor burden rates, overtime or premium time charges. Further, the
Contractor must make available for inspection and copying to the Engineer the
following listed documentation.
1.
Certified payroll reports for the period of work claimed.
2.
Accounting of Fringe Benefits – certified by a CPA.
3.
Contractor’s and Subcontractor’s daily field reports and daily diaries.
B.
Materials:
For all materials for which compensation is requested, if any, total quantities of
materials, prices, extensions and transportation costs must be provided on a daily
App’d 7/20/2022
APP-9 of 34
General Conditions
Appendix 1
basis. Further, the Contractor must make available for inspection and copying to the
Engineer the following listed documentation.
1.
Invoices for all materials incorporated.
2.
Weigh tickets.
3.
Purchase orders.
4.
Delivery schedules.
5.
Quotes or proposals from manufacturers or supplier.
6.
Freight bills, Bills of Lading, or other documentation to show transportation
costs.
7.
Restocking charges-invoices from vendor.
C.
Equipment:
For all equipment, the Contractor must provide the Engineer with the designation,
dates and hours of usage, dates and hours of standby, if any, daily hours, total hours,
rental rates and extension for each unit of equipment and machinery. Rental
rates will be as established in Section III. Further, the Contractor must make
available for inspection and copying to the Engineer the following listed
documentation.
1.
Owned:
a.
Purchase contracts(s).
b.
Depreciation schedule(s).
c.
Invoices for fuel, lube, repairs and other operating costs.
2.
Leased:
a.
Lease agreement with hourly rate, overtime rate, double shift rate, etc.
b.
Invoices or other documentation showing hours worked on a daily
basis.
D.
Subcontractors/Owner-Operators:
In the event the Contractor submits a claim which includes requests for
compensation for Subcontractors of Owner-Operators, the same information
requested of the Contractor must be provided by the Subcontractor/Owner-
Operator. Further, the Contractor must make available for inspection and copying
to the Engineer the following listed documentation.
1.
Bid/Estimate work sheets and/or spreadsheets.
2.
Subcontract Agreements or Agreements with Owner-Operator.
3.
All invoices and billing statements received from the Subcontractor/Owner-
Operator which relates to the amount requested.
E.
Miscellaneous:
Further, the Contractor must make available for inspection and copying to the
Engineer the following listed documentation.
1.
Evidence of payment for bonds and insurance premiums (MAG 109.5.6).
App’d 7/20/2022
APP-10 of 34
General Conditions
Appendix 1
2.
Taxes – unless the Contractor can show otherwise, taxes are reimbursable at
65% of the total cost (less bonds and insurance).
V.
TIME LIMIT ON SUBMISSIONS OF CLAIM FOR DELAY OR IMPACT DAMAGES:
No claims for delay or impact damages will be considered or allowed more than 45 days after the
event or occurrence which the Contractor claims gives rise to the delay or impact. In no event will
a claim for delay or impact damages be considered after submission by the Contractor of the Final
Payment Request.
App’d 7/20/2022
APP-11 of 34
General Conditions
Appendix 2
COST REDUCTION INCENTIVE PROPOSALS
FOR DESIGN BID BUILD AGREEMENTS
The Contractor may submit to the Engineer proposals for modifying the Plans, Specifications, or
other requirements of the Agreement for the sole purpose of reducing the total cost of Project
construction. The proposals must not impair in any manner the essential functions or characteristics
of the project; including but not limited to service life, economy of operations, ease of maintenance,
desired appearance, compatibility with existing or planned equipment, standardization of
systems, or design and safety standards.
It must not be inferred from this Policy that the Engineer is required to consider any proposal
submitted.
Submissions that propose changes in the basic design of a bridge, propose changes in pipe line
size, materials, bedding conditions, pipe specifications; or that propose any change in pavement
design will not be considered.
Proposals submitted pursuant to this Policy will be identified as Cost Reduction Incentive Proposals.
They must be submitted in writing and, at a minimum, contain the following.
1.
Complete the attached or similar cost reduction incentive proposal form.
2.
A description of both the existing Agreement Requirements for performing the work
and the proposed changes.
3.
All Engineering Drawings and computations necessary for the thorough and
expeditious evaluation.
4.
An itemization of the existing Agreement Requirements that must be changed if the
Proposal is adopted and a recommendation as to the manner in which the change
should be made.
5.
A detailed estimate of the cost of performing the Work under the existing
Agreement and under the proposed changes, including the cost of developing
and implementing the changes.
6.
The Agreement items affected by the proposed changes and any variations in
quantities resulting from the changes.
7.
An objective estimate of any effects the proposal will have on collateral cost to the
City, costs of related items, and cost of maintenance and operation.
8.
A statement as to the effect that the Proposal will have on the time for the
completion of the Project.
9.
A statement as to the time by which a Change Order adopting the Proposal must
be executed or when the Engineer must have given verbal approval.
App’d 7/20/2022
APP-12 of 34
General Conditions
Appendix 2
Proposals will be processed expeditiously; however, the City will not be liable for any delay in acting
upon any Proposal nor for any failure to accept any Proposal pursuant to this Special Provision.
The Engineer will be the sole judge of the acceptability of a Proposal and of the estimated net
savings in construction costs from the adoption of all or any part of the Proposal. The Contractor
will be notified in writing by the Engineer as to whether his/her Proposal has been accepted. The
decision by the Engineer is final.
When the City deems such action to be appropriate, it reserves the right to require the Contractor to
share equally in the cost to the City of investigating, evaluating, and processing the proposal as a
condition for the consideration of such Proposal. Such cost must be shared whether the Proposal is
accepted or rejected. When such a condition is imposed, the City will estimate these costs and the
Contractor must indicate his acceptance thereof in writing. Such acceptance will authorize the City
to deduct the Contractor’s share of the costs from any monies due or that may become due to the
Contractor under the Agreement.
If the Contractor’s Proposal is accepted in whole or in part, the necessary Agreement
Modifications and Agreement Price Adjustments will be affected by the execution of a Change Order
which will specifically state that it is executed pursuant to this Special Provision.
The Contractor must continue to perform the work in accordance with the requirements of the
Agreement until a Change Order incorporating the Proposal has been executed or until he/she
has been given verbal approval by the Engineer that his/her Proposal has been accepted. If the
Change Order has not been executed or he/she has not been given verbal approval on or before the
date specified on the attached cost reduction incentive proposal form or on or before such other date
as the Contractor may have subsequently specified in writing, the Proposal may be deemed to be
rejected.
The executed Change Order will incorporate the changes in the Plans, Specifications, or other
requirements of the Agreement which are necessary to permit the Proposal, or such part of it which
has been accepted, to be put into effect, and will include any condition – upon which the City’s
approval thereof is based, if such approval is conditional. The executed Change Order may also
extend the time for the completion of the Agreement if such an extension has been deemed to be
warranted by the Engineer as a result of his evaluation of the Proposal.
The executed Change Order will also establish the estimated net savings in the cost of performing
the Work attributable to the Proposal effectuated by the Change Order. In determining the net
savings, the right is reserved to the Engineer to disregard the Agreement bid prices if, in his/her
judgment, such prices do not represent a fair measure of the value of the Work to be performed or
to be deleted. The net savings will be established by determining the Contractor’s cost of performing
the Work, taking into account his/her cost of developing the Proposal and implementing the
change, and reducing this amount by any ascertainable collateral costs to the City. The executed
Change Order may provide that the Contractor be paid 50 percent of the estimated net savings
amount.
The executed Change Order may also provide for the adjustment in Agreement prices. Agreement
prices may be adjusted by subtracting the City’s share of the accrued net savings.
App’d 7/20/2022
APP-13 of 34
General Conditions
Appendix 2
The amount specified to be paid to the Contractor in the executed Change Order which effectuates a
Cost Reduction Proposal will constitute full compensation to the Contractor for the Cost Reduction
Proposal and the performance of the work thereof pursuant to the said Change Order.
Upon acceptance of a Cost Reduction Incentive Proposal, any restrictions imposed by the
Contractor on its use or on disclosure of the information will become void, and the City thereafter
will have the right to use all or any part of the Proposal without obligation or compensation of any
kind to the Contractor.
App’d 7/20/2022
APP-14 of 34
General Conditions
Appendix 2
COST REDUCTION INCENTIVE PROPOSAL FORM
TO:
CIP City Engineer
FROM:
PROJECT NAME:
Dr. AJ Chandler Park Renovation Phase 1
CITY PROJECT NUMBER:
CA2402.251
DATE:
Summary of Change (Brief description of proposed change including advantages and disadvantages):
ESTIMATED COST SUMMARY (Attached detailed estimate):
A.
Original Cost:
$
B.
Proposed Cost:
$
C.
Construction Savings (A-B):
$
D.
Gross Savings (Included OH
%, Bond
%)
$
E.
Contractor Implementing
$_
F.
City Implementing Cost:
$_
Reduction in Agreement Price (C+D-E-F) x 50%:
$
Date by which a Change Order must be issued so as to obtain maximum cost reduction:
App’d 7/20/2022
APP-15 of 34
General Conditions
Appendix 3
CITY OF CHANDLER, ARIZONA
PUBLIC WORKS & UTILITIES DEPARTMENT
CONTRACTOR'S AFFIDAVIT REGARDING SETTLEMENT OF CLAIMS
________________________, Arizona
Date ____________________________
Project Name: Dr. AJ Chandler Park Renovation Phase 1
City Project No.: CA2402.251
To the City of Chandler, Arizona
Gentlemen:
This is to certify that all lawful claims for materials, rental of equipment and labor used in connection
with the construction of the above project, whether by subcontractor or claimant in person, have been
duly discharged.
The undersigned, for the total compensation of $________________________, as set out in the final pay
application, as full and complete payment under the terms of the Agreement, hereby waives and
relinquishes any and all further claims or right of lien under, in connection with, or as a result of the
above described project. The undersigned further agrees to indemnify and save harmless the City of
Chandler against any and all liens, claims or liens, suits, actions, damages, charges and expenses
whatsoever, which said City may suffer arising out of the failure of the undersigned to pay for all labor
performances and materials furnished for the performance of said installation.
Signed and dated at ________________, this _________ day of _______________ 20_____.
__________________________________
CONTRACTOR
By _______________________________
STATE OF ARIZONA
)
) SS
COUNTY OF MARICOPA
)
The foregoing instrument was subscribed and sworn to before me this __________ day of
__________________ 20 _________.
___________________________________
Notary Public
___________________________________
My Commission Expires
App’d 7/20/2022
APP-16 of 34
General Conditions
Appendix 4
PERFORMANCE BOND
ARIZONA STATUTORY PERFORMANCE BOND
PURSUANT TO TITLES 28, 34, AND 41, ARIZONA REVISED STATUTES
(Penalty of this bond must be 100% of the Agreement amount)
KNOW ALL MEN BY THESE PRESENTS THAT:___________________________________________________
(hereinafter "Principal"), and __________________________________________________________ (hereinafter "Surety"), a
corporation organized and existing under the laws of the State of ______________ with its principal office in the City
of _____________________________, holding a certificate of authority to transact surety business in Arizona issued by
the Director of Insurance pursuant to Title 20, Chapter 2, Article 1, as Surety, are held and firmly bound unto
__________________________(hereinafter "Obligee") in the amount of __________________________________________
(Dollars) ($___________), for the payment whereof, 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 Agreement with the Obligee, dated
the ____________ day of _______________________, 20___ for construction of Dr. AJ Chandler Park Renovation
Phase 1, CA2402.251 which Agreement 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 Principal faithfully performs
and fulfills all the undertakings, covenants, terms, and conditions of the Agreement during the original term of the
Agreement and any extension of the Agreement, with or without notice of the Surety, and during the life of any
guaranty required under the Agreement, and also performs and fulfills all the undertakings, covenants, terms,
conditions, and agreements of all duly authorized modifications of the Agreement that may hereafter be made,
notice of which modifications to the Surety being hereby waived, the above obligation is void. Otherwise it
remains in full force and effect.
PROVIDED, HOWEVER that this bond is executed pursuant to the provisions of Title 34, Chapter 2, Article 2,
Arizona Revised Statutes, and all liabilities on this bond will be determined in accordance with the provisions 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 may 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
App’d 7/20/2022
APP-17 of 34
General Conditions
Appendix 4
App’d 7/20/2022
APP-18 of 34
General Conditions
Appendix 5
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 Agreement 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
________________________
(hereinafter
"Obligee")
in
the
amount
of
______________________________________________ (Dollars) ($___________), for the payment whereof, the 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 Agreement with the Obligee, dated the _________ day of
_______________________, 20___ for construction of Dr. AJ Chandler Park Renovation Phase 1, CA2402.251 which
Agreement is hereby referred to and made a part hereof as fully and to the same extent as if copied at length
herein.
NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal promptly pays all
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 Agreement, 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 will 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 may 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
App’d 7/20/2022
APP-19 of 34
General Conditions
Appendix 6
DISPUTE RESOLUTION
A.
INFORMAL DISPUTE RESOLUTION
The parties to the Agreement agree that time is of the essence in relation to
performance of the Agreement and completion of the Project, therefore any and all
disputes in relation to the Agreement will initially be referred to the Project
Manager,
the
Design
Professional Representative
and/or
the
Contractor
Representative as applicable to the dispute, for immediate resolution. If, after
good faith efforts to reach a resolution, none is reached, any party to the dispute
may submit the dispute to the Dispute Resolution Representative (“DRR”) process
set forth below, which is intended to be an expedited process.
B.
DISPUTE RESOLUTION REPRESENTATIVE (“DRR”) PROCESS
1.
The Parties under the Agreement agree that all claims and disputes in relation
to the Project which are not resolved in the ordinary course of the Project
(“Claim” or “Claims”) will, as a prerequisite to any mediation, or litigation of
the Claim, first be submitted for resolution between the designated
Dispute Resolution Representatives of the Parties as set forth herein (the
“DRR Process”).
2.
The DRR Process will be initiated through service of a DRR Notice as set
forth below:
a.
For claims by the Contractor or the Design Professional, the DRR
Process will be initiated by the party asserting the claim serving
written notice on the City setting forth in detail: (i) the basis for the
claim; (ii) the effect of the Claim upon the construction of, and/or
Project Schedule for, the Project;
(iii) the specific relief requested, the amount thereof, and how such
was calculated; (iv) the parties involved in the Claim, and how
they are involved; (v) the specific Agreement provisions in the
Agreement Documents (including, if applicable, drawings and
specifications) which apply; and (vi) efforts made to date to resolve
the Claim.
b.
For claims by the City, the DRR process will be initiated by the
City providing written notice to the other parties of the basis and
amount of its claim, the parties involved in the Claim, and how they
are involved, the provisions in the Agreement Documents that apply,
and the relief requested.
c.
The DRR Notice will be hand-delivered and e-mailed to the other
parties’ designated Dispute Resolution Representatives.
3.
The other parties will respond in writing to the DRR Notice (“DRR
Response”) within ten (10) calendar days of receipt of the DRR Notice, setting
forth those items set forth in the DRR Notice that they agree with, dispute,
and/or have questions concerning. The DRR Response will be hand-delivered
and e-mailed to the other parties’ Dispute Resolution Representatives.
App’d 7/20/2022
APP-20 of 34
General Conditions
Appendix 6
4.
The designated Dispute Resolution Representatives for the Parties to the
claim will then meet as soon as possible and in any event within twenty (20)
calendar days of submission of the DRR Notice (regardless of whether a
DRR Response has been submitted by all parties involved in the dispute), at
a mutually agreed upon time and place, to attempt to resolve the Claim
based upon the DRR Notice and DRR Response.
5.
At any time after the first meeting required above, either party may
terminate the DRR Process by written notice to the other party.
6.
The parties may agree, in writing, to extend or modify the time limits or
other provisions of the DRR process in relation to a specific pending Claim.
7.
Unless otherwise designated in a written notice to the other parties, the City
and the representatives of the Contractor and of the Design Professional will
act as the parties’ designated Dispute Resolution Representatives.
8.
If a resolution of the Claim is reached, that resolution must be set forth in
writing and must be signed by the Parties’ designated Dispute Resolution
Representative. If the resolution involves a change in any Agreement
Documents, the Agreement Price, the Project Schedule, or any other change
requiring a written Change Order or Amendment, the parties must execute
an appropriate written Change Order or Amendment pursuant to the terms
of the Agreement Documents.
C.
MEDIATION
1.
Unless extended by written agreement of the parties involved in the dispute,
any Claim not resolved through the DRR process set forth above within
five (5) calendar days after the meeting required under B (4) above, or after
the DRR is terminated pursuant to B (5) above, whichever is earlier, will be
submitted to mediation as a condition precedent to litigation by either party.
2.
The mediation will be commenced by written demand upon the other party
for mediation. If the parties cannot agree upon a mediator within ten (10)
calendar days of the written demand, either party may make a request to the
Civil Presiding Judge of the Maricopa County Superior Court to appoint a
mediator. The mediation will occur within forth (40) calendar days of the
written demand for mediation, unless the parties agree, in writing, to a
longer period of time.
3.
The qualifications for the mediator will be that he/she be: (a) an
experienced mediator, arbitrator or litigator of construction disputes; and (b)
having engaged a significant portion of his/her time involving and/or
resolving construction disputes for at least the past five (5) years.
4.
Each party will provide to the other party and the mediator all of the
information and documentation required under B(1) and (2) above, together
with any additional information and documentation which the party believes
relevant. In addition, the parties will exchange, and provide to the mediator
App’d 7/20/2022
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such additional memoranda, information and/or documentation, as the
mediator may request, and in the form and at such times, as the mediator
may direct.
5.
The parties will share the mediator’s fee and any filing fees equally. The
mediation will be held in Chandler, Arizona, unless another location is
mutually agreed upon. Agreements reached in mediation will be specifically
enforceable in any court having jurisdiction thereof.
D.
LITIGATION
Any claim arising out of or related to the Agreement, except Claims relating to
aesthetic effect and except those claims waived as provided for in the Agreement
Documents, must be resolved through litigation in the Maricopa County, Arizona
Superior Court.
App’d 7/20/2022
APP-22 of 34
General Conditions
Appendix 7
CITY OF CHANDLER, ARIZONA
PUBLIC WORKS & UTILITIES DEPARTMENT
CERTIFICATE OF COMPLETION
PROJECT NAME:
Dr. AJ Chandler Park Renovation Phase 1
CITY PROJECT NO.:
CA2402.251
If Federally Funded:
FEDERAL NO.:
ADOT NO:
(This section to be completed by Prime)
I HEREBY CERTIFY THAT ALL GOODS AND/OR SERVICES REQUIRED BY CITY OF CHANDLER FOR THIS
PROJECT HAVE BEEN DELIVERED IN ACCORDANCE WITH THE AGREEMENT DOCUMENTS AND BID
SPECIFICATIONS AND ALL ACTIVITIES REQUIRED BY THE AGREEMENTOR UNDER THE AGREEMENT
HAVE BEEN COMPLETED AS OF THE COMPLETION DATE LISTED HERE:
FINAL ACCEPTANCE DATE:
PRIME CONTRACTOR:
FIRM NAME:
PRINCIPAL:
TITLE:
SIGNATURE:
DATE:
CERTIFIED BY [INSERT NAME AND TITLE OF PARTY THAT OVERSEES CONSTRUCTION]:
FIRM NAME:
SIGNATURE:
DATE:
PROJECT ACCEPTED BY CITY OF CHANDLER:
NAME:
SIGNATURE:
DATE:
App’d 7/20/2022
APP-23 of 34
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Appendix 8
CONSTRUCTION SIGN DETAIL
8'
3"
CITY OF CHANDLER
5"
3"
PUTTING YOUR FUNDS TO WORK
5"
3"
PROJECT TITLE:
5"
4'
3"
PROJECT NUMBER:
3"
2"
PROJECT COST:
3"
2"
CONTRACTOR:
3"
2"
MANAGED BY:
PUBLIC WORKS & UTILITIES DEPARTMENT
3"
CAPITAL PROJECTS DIVISION
3"
<--- 4" X 4" POSTS --->
NOTES:
SIGN(S) MUST BE FURNISHED AND ERECTED PRIOR TO COMMENCEMENT OF CONSTRUCTION. POSTS
MUST BE ANCHORED A MINIMUM OF TWO FEET INTO THE GROUND. BOTTOM OF SIGN MUST BE A
MINIMUM OF FOUR FEET ABOVE THE GROUND.
TYPICAL PROJECT IDENTIFICATION SIGN FOR GENERAL PROJECTS MUST BE NON-REFLECTORIZED
GREEN BACKGROUND, AND NON-REFLECTORIZED WHITE LETTERS AND NUMERALS.
ONE SIGN MUST BE ERECTED FOR BUILDINGS AND OTHER LIMITED AREA SINGLE SITES. FOR MULTIPLE
SITES, ONE SIGN MUST BE ERECTED AT EACH SITE.
FOR LINEAR PROJECTS ONE HALF MILE OR LONGER, PLACE ONE SIGN AT EACH END OF THE PROJECT.
App’d 7/20/2022
APP-24 of 34
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COST OF THE WORK
(APPLICABLE SOLELY TO CONSTRUCTION MANAGER AT RISK AND JOB ORDER CONTRACTING)
SECTION 1 – COSTS TO BE REIMBURSED
1.1 Cost of the Work
The term Cost of the Work will mean costs necessarily incurred by Contractor in the proper
performance of the Work. Such costs must be at rates not higher than the standard paid at the place
of the Project except with prior consent of City. The Cost of the Work will include only the items set
forth in this Section 1.
1.2 Labor Costs
1.2.1
Wages of construction workers directly employed by the Contractor to perform the
construction of the Work at the site or, with City’s approval, at off-site workshops. Cost to
be reimbursed will be the actual wages paid to the individuals performing the work.
1.2.2
Wages or salaries of the Contractor’s supervisory and administrative personnel when
stationed at the site with City’s approval. No Contractor personnel stationed at the
Contractor’s home or branch offices will be charged to the Cost of the Work. Non-field
office based Contractor management and support personnel are expected to provide
service and advice from time to time throughout the job and his/her time devoted to
Project matters is considered to be covered by the Contractor’s Fee.
1.2.3
Wages and salaries of Contractor’s supervisory or administrative personnel who would
normally be stationed at the field office in accordance with Section 1.2.2 but who become
engaged, at factories,
workshops or on the road, in expediting the production or
transportation of materials or equipment required for the Work, but only for that portion
of his/her time required for the Work. Employee bonuses and/or costs associated with
Employee Stock Ownership Plans (“ESOP”) will not be considered reimbursable labor or
labor burden costs and will be considered non-reimbursable costs considered to be covered
by the Contractor’s Fee.
1.2.4
Costs paid or incurred by Contractor for taxes, insurance, contributions, assessments and
benefits required by law or collective bargaining agreements and, for personnel not
covered by such agreements, customary benefits such as sick leave, medical and health
benefits, holiday, vacations and pensions, provided such costs are based on wages and
salaries included in the Cost of the Work under Subparagraphs 1.2.1 through 1.2.3.
1.2.4.1 Cost of the Work will include the actual net cost to Contractor for worker’s
compensation insurance attributable to the wages chargeable to the Cost of Work per this
Agreement. The actual net cost of worker’s compensation must take into consideration
all cost adjustments due to experience modifiers, premium discounts, policy dividends,
retrospective rating plan premium
adjustments, assigned risk pool rebates, any
applicable weekly maximums, etc. Contractor may charge an estimated amount for
worker’s compensation insurance costs, but will make appropriate cost adjustments to
actual costs within 45 days of receipt of actual cost adjustments from the insurance
carrier.
App’d 7/20/2022
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1.2.4.3 Overtime wages paid to salaried personnel (if approved in advance in writing by City)
will be reimbursed at the actual rate of overtime pay paid to the individual. No time
charges for overtime hours worked on the Project will be allowed if the individual is not paid
for the overtime worked.
1.2.4.4 Any overtime premium or shift differential expense to be incurred by Contractor for hourly
workers will require City’s advance written approval before the incremental cost of the
overtime premium or shift differential will be considered a reimbursable cost. If the
Contractor is required to work overtime as a result of an inexcusable delay or other
coordination problems caused by the Contractor or anyone he/she is responsible for,
the overtime premium and/or shift differential expense portion of the payroll expense
and related labor burden costs will be considered as cost not to be reimbursed.
1.2.4.5 Reimbursable labor burden costs will be limited to payroll taxes, worker’s compensation
insurance, the employer’s portion of union benefit costs for union employees working on the
Project, and the actual verifiable fringe benefit costs incurred by Contractor for non-union
individuals working on the Project subject to the following maximum percentages for the
following reimbursable non-union fringe benefit costs. The following maximums (as a
percentage of reimbursable actual wages by individual) will apply for each of the following
types of fringe benefit costs specifically attributable to each of the non-union personnel
working on the Project:
·
Medical Insurance, Dental, Life & AD&D Insurance:
12.00%
·
Holiday, vacation and other paid time not worked:
10.00%
·
Pension Plan Contributions to Vested Employee Account,
Simplified Employee Pension Plans, or 401K matching plans
(Note: ESOP related costs are covered by the Contractor Fee)
10.00%
For non-union personnel, no other fringe benefit costs (other than the three specific
categories listed immediately above, will be considered reimbursable Cost of Work. Any
labor burden costs that are in excess of the amounts considered reimbursable or are
otherwise not considered reimbursable under the terms of this agreement are intended to
be covered by the Contractor Fee.
1.3
Subcontract Costs
1.3.1
Payments made by Contractor to Subcontractors in accordance with the requirements of
the subcontracts.
1.3.2
For Scope of Work Bid Packages typically performed by Subcontractors, Contractor may
“self- perform” such work on an actual cost basis subject to an agreed upon Guaranteed
Maximum Price for the “self-performed work”. The Contractor must, unless agreed to by City
in writing, bid his/her proposed guaranteed Maximum Price for the work to be “self-
performed” against at least three other interested trade Contractors. All savings under
any such Subcontract for “self-performed work” must be applied to reduce the Cost of Work
under the Agreement and the Guaranteed Maximum Price. For purposes of defining “self-
performed work” subject to this provision, any division of Contractor, or any separate
Contractor or Subcontractor that is partially owned or wholly owned by the Contractor or
any of his/her employees or employee’s relatives will be considered a related party entity
App’d 7/20/2022
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and will be subject to this provision regarding “self-performed work”. No self-performed work
will be allowed to be performed on a Fixed Price basis.
1.3.3
Contractor (with respect to its Suppliers, Subcontractors and all lower tier Subcontractors)
must provide City advance written notice and must obtain City’s approval for any proposed
Subcontract Change Order, Material Purchase Order, or other financial commitment in an
amount in excess of $5,000 prior to placing such order or entering into such agreement
(regardless of whether or not any such commitment will affect the prime Agreement
Guaranteed Maximum Cost). It is agreed that sums applicable to any Subcontract Change
Order, Purchase Order or other financial commitment entered into in violation of the above
notice and approval requirement will not be included in the amounts owning to Contractor,
Subcontractors or Suppliers whether as Costs of the Work or as reasonable termination
costs in the event of termination.
1.4
Costs of Material and Equipment Incorporated in the Completed Construction
1.4.1
Costs, including transportation and storage, of materials and equipment incorporated or
to be incorporated in the completed construction.
1.4.2
Costs of materials described in the preceding Subparagraph 1.4.1 in excess of those
actually installed to allow for reasonable waste and spoilage. Unused excess materials, in
any, will become City’s property at the completion of the Work or, at City’s option, may be
sold by the Contractor. Any amounts realized from such sales must be credited to City as a
deduction from the Cost of Work.
1.4.3
Proceeds from the sale of recyclable materials, scrap, waste, etc. will be credited to job cost.
1.5
Costs of Other materials and Equipment, Temporary Facilities and Related Items
1.5.1
Costs, including transportation and storage, installation, maintenance, dismantling and
removal of materials, supplies, temporary facilities, machinery, equipment and hand tools
not customarily owned by construction workers, that are provided by the Contractor at the
site and fully consumed in the performance of the Work; and cost (less salvage value) of such
items if not fully consumed, whether sold to others or retained by Contractor. Cost for
items previously used by Contractor will mean fair market value.
1.5.2
Rental charges for temporary facilities, machinery, equipment, and hand tools not
customarily owned by construction workers that are provided by Contractor at the site,
whether rented from Contractor or others, and costs of transportation, installation, minor
repairs and replacements,
dismantling and removal thereof. Rates and quantities of
equipment rented will be subject to City’s prior written approval.
1.5.2.1 The Projected usage for each piece of equipment to be rented for use on the Project and
the estimated total rentals must be considered by Contractor before the piece of
equipment is rented so that an appropriate rent versus buy decision can be made.
Purchased equipment must be considered “job owned”. At the completion of the Project,
Contractor must transfer title and possession of all remaining job-owned equipment to
City, or Contractor may keep any such equipment for an appropriate fair market value
credit to job cost, which will be mutually agreed to by City and Contractor.
App’d 7/20/2022
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1.5.2.2 Each piece of equipment to be rented must have hourly, daily, weekly and monthly rates
and the most economical rate available will be reimbursed based on the circumstances of
actual need and usage of the piece of equipment while it is stationed at the jobsite.
When the piece of equipment is no longer needed for the work, no rental charges will be
reimbursed if the piece of equipment remains at the jobsite for the convenience of
Contractor.
1.5.2.3 Equipment Rental Rates
1.5.2.3.1 Compensation for equipment used on the Project will be paid in accordance with the
Equipment Plan submitted by Contractor in the accepted GMP Proposal and no payments
will be made in excess of the rates set forth in the Equipment Plan, or actual
documented costs, whichever is less.
1.5.2.3.2 All equipment rental rates and costs are subject to City’s right to audit when submitted as
part of Equipment Plan and/or at any time during the Project.
1.5.2.4 The aggregate rentals chargeable for each piece of Contractor owned tools or equipment
must not exceed 50% of the fair market value of such equipment at the time of its
commitment to the Work. The original purchase price and date of purchase of the equipment
will be documented with a copy of the purchase invoice for the piece of equipment. Such
aggregate limitations will apply and no further rentals will be charged even if a piece of
equipment is taken off the job and is later replaced by a similar piece of equipment. For
purposes of computing the aggregate rentals applicable to aggregate rental limitations,
rental charges for similar pieces of equipment will be combined if the pieces of equipment
were not used at the same time.
1.5.2.5 Fair market value for used material and equipment as referred to in the Agreement
Documents will mean the estimated price a reasonable purchaser would pay to purchase
the used material or equipment at the time it was initially needed for the job. Note: This is
usually lower than the price a reasonable purchaser would pay for similar new construction
material or construction equipment.
1.5.2.6 All losses resulting from lost, damaged or stolen tools and equipment will be the sole
responsibility of Contractor, and not City, and the cost of such losses will not be
reimbursable under the Agreement.
1.5.2.7 Contractor will be required to maintain a detailed equipment inventory of all job-owned
equipment (either purchased and charged to job cost or job-owned through aggregate
rentals) and such inventory must be submitted to City each month. For each piece of
equipment, such inventory should contain at a minimum (1) original purchase price or
acquisition cost (2) acquisition date (3) approved Fair Market Value at the time the piece of
equipment was first used on the job and (4) final disposition.
1.5.2.8 All costs incurred for minor maintenance and repairs will be reimbursed at actual cost. Such
costs include routine and preventative maintenance, minor repairs and other incidental
costs. Repairs and/or replacement of a capital nature are considered to be covered by the
rental rates. Major repairs and overhauls are not considered routine and ordinary;
consequently such costs are not reimbursable and are intended to be covered by the rental
App’d 7/20/2022
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General Conditions
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rates.
1.5.3
Costs of removal of debris from the Site.
1.5.4
Costs of document reproductions, facsimile transmissions and long-distance telephone
calls, postage and parcel delivery charges, telephone service at the site and reasonable
petty cash expenses of the site office.
1.5.5
That portion of the reasonable expenses of Contractor’s personnel incurred while
traveling in discharge of duties connected with the Work.
1.5.5.1 No travel expenses will be reimbursed to Contractor’s representatives unless Project related
travel required them to travel to a destination more than 100 miles from the Project
location. Any travel involving airfare will require advance written approval by an authorized
City’s representative.
1.5.6
Costs of materials and equipment suitably stored off the site at a mutually acceptable
location, if approved in advance by the City.
1.5.7
Reproduction costs will be the actual costs of reproduction subject to a maximum of five
cents ($.05) per square foot for prints and a maximum of five cents ($.05) per 8 ½ by 11-
inch page for offset print or photo copied agreement documents, specifications, etc.
Telephone costs will be the actual costs paid to the third party telephone company for the
field office telephone.
1.6
Miscellaneous Costs
1.6.1
That portion of insurance and bond premiums that can be directly attributed to the
Agreement. The City will reimburse Contractor for contractually required bond at time of first
pay application for GMP and Cost-Based Agreements upon receipt of proof of payment
from the Contractor. If the Contractor completes Work for less than the Agreement Price,
Contractor must credit the City a pro- rated amount for the unused portion of the bond
payment
1.6.1.1 Contractor’s actual cost for insurance will be considered to be included within the Maximum
limit for General Conditions Costs. All premiums for any insurance and bonds required for
the Project must reflect the net actual costs to Contractor after taking into consideration cost
adjustments due
to experience
modifiers, premium
discounts,
policy dividends,
retrospective rating plan premium adjustments, assigned risk pool rebates, refunds, etc.
1.6.1.2 The amount to be reimbursed to Contractor for all contractually required insurance will be
actual costs not to exceed a total of 2% of the Agreement Value, unless Contractor
establishes to City’s satisfaction that the actual cost is higher and City agrees to such actual
higher cost in writing. If Contractor’s cost of contractually required insurance is greater
than the amount agreed to be reimbursed per this Agreement Provision, the difference
will be considered to be covered by the Contractor’s Fee. The City will reimburse
Contractor for contractually required insurance on a monthly basis for GMP and Cost-
Based Agreements. If Contractor can demonstrate substantial savings by paying for all
insurance in advance, the City may agree to reimburse all insurance costs at time of first pay
App’d 7/20/2022
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General Conditions
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application for GMP and Cost-Based Agreements with proof of payment from Contractor.
1.6.2
Sales, use or similar taxes imposed by a governmental authority that are related to the Work.
1.6.3
Fees and assessments for the building permit and for other permits, licenses and
inspections for which Contractor is required by the Agreement Documents to pay.
1.6.4
Fees of laboratories for tests required by the Agreement Documents, except those related to
defective or nonconforming Work and which do not fall within the scope of ¶ 1.7.3 below.
1.6.5
Royalties and license fees paid for the use of a particular design, process or product
required by the Agreement Documents; the cost of defending suites or claims for
infringement of patent rights arising from such requirement of the Agreement Documents;
and payments made in accordance with legal judgments against Contractor resulting from
such suites or claims and payments of settlements made with City’s consent. However,
such costs of legal defenses, judgments and settlements must not be included in the
calculation of the Contractor’s Fee or subject to the Guaranteed Maximum Price.
1.6.6
Data processing costs related to the Work. However, any such data processing costs will be
limited to the cost of personal computer hardware used at the field office in the
normal day to day administration, management and control of the Project. The
aggregate charges for any such hardware must not exceed the Fair Market Value of the
hardware at the time it was brought to the field office. If the total charges for any particular
piece of hardware reach an amount equal to the Fair Market Value, that particular piece of
hardware must be turned over to City whenever it is no longer needed for the Project. If
Contractor elects to keep the particular piece of hardware, the job costs must be credited
with a mutually agreeable amount which will represent the Fair Market Value of the
particular piece of hardware at the time it was no longer needed for the job. Software or
other costs associated with the use of computer programs will not be considered to be a
reimbursable cost and will be considered to be covered by the Contractor’s Fee.
1.6.7
Deposits lost for causes other than Contractor’s negligence or failure to fulfill a specific
responsibility to City as set forth in the Agreement Documents.
1.6.8
Legal, mediation and arbitration costs, including attorneys’ fees, other than those arising
from disputes between City and Contractor, reasonably incurred by Contractor in the
performance of the Work and with City’s prior written approval; which approval will not be
unreasonably withheld.
1.6.9
Expenses incurred in accordance with Contractor’s standard personnel policy for relocation
and temporary living allowances of personnel required for the Work, if pre-approved by City
in writing. If City authorizes the reimbursement of relocation costs, the reimbursable
relocation expenses will be limited to a maximum of $50,000 per person. Any relocation
cost incurred by Contractor in excess of the amount reimbursed by City will be considered to
be covered by the Contractor’s Fee.
1.7
Other Costs and Emergencies
1.7.1
Other costs incurred in the performance of the Work if and to the extent approved in
App’d 7/20/2022
APP-30 of 34
General Conditions
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advance in writing by City.
1.7.2
Costs due to emergencies incurred in taking action to prevent threatened damage, injury or
loss in case of an emergency affecting the safety of persons and property.
1.7.3
Costs of repairing or correcting damaged or nonconforming Work executed by Contractor,
Subcontractors or Suppliers, provided that such damaged or nonconforming Work was not
caused by negligence or failure to fulfill a specific responsibility of Contractor and only to the
extent that the cost of repair or correction is not recoverable by Contractor from
insurance, sureties, Subcontractors or Suppliers.
1.8
Related Party Transactions
1.8.1
The term “related party” will mean a parent, subsidiary, affiliate or other entity having
common ownership or management with Contractor; any entity in which any stockholder in,
or management employee of, Contractor owns any interest in excess of ten percent in the
aggregate; or any person or entity which has the right to control the business or affairs of
Contractor. The term “related party” includes any member of the immediate family of any
person identified above.
1.8.2
If any of the costs to be reimbursed arise from a transaction between Contractor and a
related party, Contractor must notify City in writing of the specific nature of the
contemplated transaction, including the identity of the related party and the anticipated
cost to be incurred, before any such transaction is consummated or cost incurred. If City,
after such notification, authorizes in writing
the proposed transaction, then the cost
incurred will be included as a cost to be reimbursed, and Contractor must procure the Work,
equipment, goods or service from the related party, as a Subcontractor. If City fails to
authorize the transaction, Contractor must procure the Work, equipment, goods or
service from some person or entity other than a related party.
SECTION 2 – COSTS NOT TO BE REIMBURSED
2.1
The Cost of Work must not include:
2.1.1
Salaries and other compensation of Contractor’s personnel stationed at Contractor’s principal
office or offices other than the site office, except as specifically provided in Subparagraphs
1.2.2 and 1.2.3.
2.1.2
Expenses of Contractors’ principal office and offices other than the site office.
2.1.3
Overhead and general expenses, except as may be expressly included in Section 1.
2.1.3.1 Costs of Contractor’s home office computer services or other outside computer processing
services will be considered overhead and general expense. Accordingly, Contractor should
not plan to perform any such computer related services or alternatives at the field office
when such services or functions can be performed at Contractor’s home or branch offices,
or other outside service locations.
2.1.4
Contractor’s capital expenses, including interest on Contractor’s capital employed for the Work.
App’d 7/20/2022
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2.1.5
Rental costs of machinery and equipment, except as specifically provided in subparagraph
1.5.2.
2.1.6
Except as provided in Subparagraph 1.7.3 of the Agreement, costs due to the negligence or
failure to fulfill a specific responsibility of Contractor, Subcontractors and Suppliers or
anyone directly or indirectly employed by any of them or for whose acts of them may be
liable.
2.1.7
Any cost not specifically and expressly described in Section 1.
2.1.8
Costs, other than costs included in Change Orders approved by City that would cause the
GMP to be exceeded.
SECTION 3 – DISCOUNTS, REBATES, REFUNDS AND SAVINGS
3.1
Cash discounts obtained on payments made by Contractor will accrue to City if (1) before
making the payment, Contractor included them in an Application for Payment and
received payment therefore from City, or (2) City has deposited funds with Contractor with
which to make payments; otherwise, cash discounts will accrue to Contractor. Trade
discounts, rebates, refunds and amounts received from sales or surplus materials and
equipment will accrue to City, and Contractor must make provisions so that they can be
secured.
3.1.1
Cost of the Work will be credited with all insurance policy discounts, performance and
payment bond rebates or refunds, refunds or return premiums from any Subcontractor
default insurance, refunds or rebates from any Contractor controlled insurance programs
applicable to the Project, merchandise rebates of any nature, refunds of any nature,
insurance dividends; and a portion of any volume rebates or free material credits earned
with purchase of material or other goods and services charged to the job.
3.1.2
“Cash” discounts which may accrue to Contractor will be limited to a maximum of 1.5% of
invoice cost. Any portion of “Cash” discounts greater than 1.5% will automatically accrue
to City if Contractor is eligible to take advantage of the discounts.
3.2
Amounts that accrue to City in accordance with the provisions of Paragraph 3.1 will be
credited to City as a deduction from the Cost of the Work.
3.3
Any and all savings on the GMP, or any separately guaranteed items comprising the GMP,
will belong to City, subject to any express right in the Agreement for Contractor to share
in savings. Savings are subject to City’s right to audit, and may be audited separately.
SECTION 4 – GENERAL CONDITIONS COSTS
4.1
General Conditions Costs may include, but are not limited to, the following types of costs
incurred by Contractor during construction of the Work to the extent they are reimbursable
Costs of the Work as delineated above: payroll costs for Work conducted at the site, payroll
costs for the superintendent and full-time general foremen, payroll costs for management
App’d 7/20/2022
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personnel resident and working on the site workers not included as direct labor costs
engaged in support (e.g. loading/unloading, clean-up, etc.), administrative office personnel,
costs of offices and temporary facilities including office materials, office supplies, office
equipment, minor expenses, utilities, fuel, sanitary facilities and telephone services at the
site, costs of liability insurance premiums not included in labor burdens for direct labor
costs, costs of bond premiums, costs of consultants not in the direct employ of Contractor
or Subcontractors, fees for permits and licenses.
4.2
General Conditions Costs may be paid on a percentage of the Agreement Price or on a
lump/stipulate sum basis as set forth in the Agreement. All costs included in the General
Conditions Costs will not be separately invoiced to or paid by City.
4.3
The total amount of General Conditions Costs for the Work may be divided by the number of
days allowed for performance of the Work, to determine a fixed daily rate for General
Conditions Costs that may be used in computing the General Conditions Costs allocated to
any period of time, or for any adjustments in the General Conditions Costs agreed to in
writing by City.
App’d 7/20/2022
APP-33 of 34
General Conditions
Appendix 10
LANDSCAPE ESTABLISHMENT PERIOD
Section 1 – Description and General
Contractor is in direct control of work performed under the Landscape Establishment Period. If work
is subcontracted, a representative of the Contractor will be present at the site of the work for all
hours that the subcontractor works. Subcontracting of Landscape Establishment work will be
permitted for weed eradication with herbicides, because of special licensing. A licensed temporary
service may be used to supply labor to Contractor if Contractor has received approval from City
Representatives. Contractor will submit the required subcontract documentation.
Contractor must provide adequate personnel to accomplish the required maintenance of the plant
materials at intervals acceptable to City Representatives.
If not healthy at the end of the maintenance period, the maintenance must be continued until the
plant material is approved by City.
1.1 Time and Schedule
Unless otherwise expressly agreed to in writing by City, the Landscape Establishment Period will be
per General Conditions Section 6.5.4.
1.2 Planted Stock and Seeding Establishment
1.2.1
Tree planting and staking must be per City of Chandler Standard Detail C-801.
1.2.2
All trees will stand erect on their own without stakes when brought to this site. If the tree
cannot stand on its own when nursery stakes are removed, the tree will be removed and
replaced.
1.3 Pre-Emergent Herbicide and Weed Control
1.3.1
Contractor will provide three applications of an approved pre-emergent herbicide on all
unpaved areas of the project, as directed by City Representatives, to control weed growth in
all areas of the project. The number of applications may be increased as directed by the City
Representative, and at no additional cost to City, if the City Representative deems additional
applications are required to control weed growth.
1.3.2
Application sequence will be approved in advance by City. The first application of pre-
emergent will be completed prior to the application of Decomposed Granite and will be
included with the cost of the Decomposed Granite as specified and part of the Construction
Phase portion of work. The second application of pre-emergent will be completed after
installation of the Decomposed Granit and no later than half-way through the Landscape
Establishment Period. The third and final application of pre-emergent will be applied 15
days prior to completion of the Landscape Establishment portion of the project. The second
and third pre-emergent applications will be included with the cost of Landscape
Establishment. Watering will be completed in accordance with the manufacturer’s
recommendations, as included and as related to each application.
1.3.3
The pre-emergent herbicide will be applied in accordance with the Technical Specifications
and the recommendations of the pre-emergent herbicide manufacturer, as approved by
City Representatives.
App’d 7/20/2022
APP-34 of 34
General Conditions
Appendix 10
1.3.4
The control of weeds will be accomplished by the use of herbicides. Manual removal of
weeds will be required, after herbicides have taken affect.
1.3.5
Contractor is responsible for the removal and disposal of all trash and debris that during
the Landscape Establishment Period. Contractor will keep the project in a neat and orderly
manner during the duration of the Landscape Establishment Period.
1.4 Water
The water used during Landscape Establishment to properly maintain the plant material will be
furnished by City, at designated sources from within the project limits, at no charge to Contractor.
Contractor will be responsible for all equipment, materials and labor necessary to load, transport and
unload water for watering purposes.
1.5 Plant Material Replacements
The plant material replacement will be considered as included in the work for Landscape
Establishment, and will be made at no charge to the City.
1.5.1
Shrub and Plant Replacement - During the second half of the Landscaping Establishment
period, Contractor will provide, where required, plant replacements as follows:
Original Size
Replacement Size
1 gallon
5 gallon
5 gallon
15 gallon
15 gallon
24-inch box
36-inch box
48-inch box
1.5.2
Tree Replacement – During the second half of the Landscape Establishment Period,
Contractor will provide plant material replacements for existing plants that die as follows:
Existing Plant Material Sizes
Replacement Size
Trees:
2-inch Caliper
24-inch box
4-inch Caliper
36-inch box
6-inch Caliper and greater
54-inch box
Shrubs:
All Existing Shrubs
15 gallon
1.6 Measurement and Payment
See Technical Specifications for Measurement Payment provisions.
EXHIBIT F
Project Name: Dr. AJ Chandler Park Renovation Phase 1
Page F-1
Project No.: CA2402.251
Rev 8/30/24
SUBCONTRACTOR DOCUMENTS WITH CM@RISK
Any subcontractor assumptions, clarifications, exclusions, terms & conditions,
signature blocks, etc. included are strictly between the CM@RISK and their
subcontractors, and do not apply to the Agreement between the CM@RISK and the City.
N/A
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
ACCORDANCE WITH THE POLICY PROVISIONS.
INSURER(S) AFFORDING COVERAGE
INSURER F :
INSURER E :
INSURER D :
INSURER C :
INSURER B :
INSURER A :
NAIC #
NAME:
CONTACT
(A/C, No):
FAX
E-MAIL
ADDRESS:
PRODUCER
(A/C, No, Ext):
PHONE
INSURED
REVISION NUMBER:
CERTIFICATE NUMBER:
COVERAGES
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on
this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
OTHER:
(Per accident)
(Ea accident)
$
$
N / A
SUBR
WVD
ADDL
INSD
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
$
$
$
$
PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person)
COMBINED SINGLE LIMIT
AUTOS ONLY
AUTOS
AUTOS ONLY
NON-OWNED
SCHEDULED
OWNED
ANY AUTO
AUTOMOBILE LIABILITY
Y / N
WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY
OFFICER/MEMBER EXCLUDED?
(Mandatory in NH)
DESCRIPTION OF OPERATIONS below
If yes, describe under
ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
ER
OTH-
STATUTE
PER
LIMITS
(MM/DD/YYYY)
POLICY EXP
(MM/DD/YYYY)
POLICY EFF
POLICY NUMBER
TYPE OF INSURANCE
LTR
INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)
EXCESS LIAB
UMBRELLA LIAB
$
EACH OCCURRENCE
$
AGGREGATE
$
OCCUR
CLAIMS-MADE
DED
RETENTION $
$
PRODUCTS - COMP/OP AGG
$
GENERAL AGGREGATE
$
PERSONAL & ADV INJURY
$
MED EXP (Any one person)
$
EACH OCCURRENCE
DAMAGE TO RENTED
$
PREMISES (Ea occurrence)
COMMERCIAL GENERAL LIABILITY
CLAIMS-MADE
OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:
POLICY
PRO-
JECT
LOC
CERTIFICATE OF LIABILITY INSURANCE
DATE (MM/DD/YYYY)
CANCELLATION
AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.
CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED
AUTOS ONLY
3/6/2025
INSURICA Insurance Services, LLC
4686 E. Van Buren St, #310
Phoenix AZ 85008
Certificates
602-273-1625
602-273-0212
certs@INSURICA.com
Old Republic Insurance Company
24147
WILLCON03C
Imperium Insurance Company
35408
Willmeng Construction, Inc.
1702 E. Highland Ave., Suite 450
Phoenix AZ 85016
Continental Insurance Company
35289
Pacific Insurance Company, Limited
10046
1113033012
A
X
2,000,000
X
100,000
X
$10k per occ
10,000
Deductible
2,000,000
2,000,000
X
Y
Y
MWZY31366724
5/31/2024
5/31/2025
2,000,000
A
2,000,000
X
Y
Y
MWTB31366824
5/31/2024
5/31/2025
B
X
5,000,000
X
Y
ARUIICCX000005702
5/31/2024
Y
5/31/2025
5,000,000
A
X
N
Y
MWC31366624
5/31/2024
5/31/2025
1,000,000
1,000,000
1,000,000
C
D
Excess over Primary Excess
Pollution Liability
Professional Liability
Y
Y
Y
Y
7018677299
13CPIGD7603
5/31/2024
5/31/2024
5/31/2025
5/31/2025
Exc: Ea Occ/Agg
Pollution Limits
Professional Limit
$10M / $10M
*SEE BELOW
*SEE BELOW
*Pollution/Professional Liability - Deductible $25,000, : Pollution, Each Condition/Aggregate: $5,000,000/$5,000,000 / Professional - Retro Date 5/19/2013,
Claims Made/Aggregate: $5,000,000/$5,000,000.
Certificate Holder is defined as additional insured with respects to the general, auto, excess and pollution
liability if required or agreed to in a written contract subject to all provisions and limitations of the policy. General, auto, excess and pollution liability coverage is
primary and non-contributory. A Waiver of subrogation in favor of Certificate Holder applies to the general, auto, excess and pollution liability and employers
liability/workers compensation if required or agreed to in a written contract subject to all provisions and limitation of the policy. Per attached forms: CG2033
12/19; CG2010 12/19; CG2037 12/19; CG2001 12/19; PCA048 10/13; CG2404 05/09; PCA024 10/13; SKWDCX2057 05/22; WC000313 & WC420304B
6/14(TX); CG2503 05/09; CL0005 10/15; CL2836 01/16; CL2824 10/15.
RE: City Project CA2402.251, Dr. AJ Chandler Park Renovation, 3 S. Arizona Ave., Chandler, AZ 85225. Additional Insured: City of Chandler its officers,
See Attached...
City of Chandler
Public Works & Utilities Department
PO Box 4008, Mail Stop 407
Chandler AZ 85244-4008
THIS CERTIFICATE SUPERSEDES PREVIOUSLY ISSUED CERTIFICATE
ACORD 101 (2008/01)
The ACORD name and logo are registered marks of ACORD
© 2008 ACORD CORPORATION. All rights reserved.
THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM,
FORM NUMBER:
FORM TITLE:
ADDITIONAL REMARKS
ADDITIONAL REMARKS SCHEDULE
Page of
AGENCY CUSTOMER ID:
LOC #:
AGENCY
CARRIER
NAIC CODE
POLICY NUMBER
NAMED INSURED
EFFECTIVE DATE:
WILLCON03C
1
1
INSURICA Insurance Services, LLC
Willmeng Construction, Inc.
1702 E. Highland Ave., Suite 450
Phoenix AZ 85016
25
CERTIFICATE OF LIABILITY INSURANCE
officials, agents, and employees. Waiver of subrogation in favor of the additional insured.
Separation of Insured provided according to the policy terms and conditions of each policy.
COMMERCIAL GENERAL LIABILITY
CG 20 33 12 19
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
CG 20 33 12 19
© Insurance Services Office, Inc., 2018
Page 1 of 2
ADDITIONAL INSURED – OWNERS, LESSEES OR
CONTRACTORS – AUTOMATIC STATUS WHEN
REQUIRED IN A WRITTEN CONSTRUCTION
AGREEMENT WITH YOU
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
A. Section II – Who Is An Insured is amended to
include as an additional insured any person or
organization
for
whom
you
are
performing
operations when you and such person or
organization have agreed in writing in a contract or
agreement that such person or organization be
added as an additional insured on your policy.
Such person or organization is an additional
insured only with respect to liability for "bodily
injury", "property damage" or "personal and
advertising injury" caused, in whole or in part, by:
1. Your acts or omissions; or
2. The acts or omissions of those acting on your
behalf;
in the performance of your ongoing operations for
the additional insured.
However,
the
insurance
afforded
to
such
additional insured:
1. Only applies to the extent permitted by law;
and
2. Will not be broader than that which you are
required by the
contract
or agreement to
provide for such additional insured.
A person's
or organization's status as an
additional insured under this endorsement ends
when your operations for that additional insured
are completed.
B. With respect to the insurance afforded to these
additional
insureds,
the
following
additional
exclusions apply:
This insurance does not apply to:
1. "Bodily injury", "property damage" or "personal
and advertising injury" arising out of the
rendering of, or the failure to render, any
professional
architectural,
engineering
or
surveying services, including:
a. The preparing, approving, or failing to
prepare or approve, maps, shop drawings,
opinions, reports, surveys, field orders,
change
orders
or
drawings
and
specifications; or
b. Supervisory, inspection, architectural or
engineering activities.
This exclusion applies even if the claims
against any insured allege negligence or other
wrongdoing
in
the
supervision,
hiring,
employment, training or monitoring of others by
that insured, if the "occurrence" which caused
the "bodily injury" or "property damage", or the
offense which caused the "personal and
advertising injury", involved the rendering of or
the
failure
to
render
any
professional
architectural,
engineering
or
surveying
services.
3ROLF\1R 0:=<4
Page 2 of 2
© Insurance Services Office, Inc., 2018
CG 20 33 12 19
2. "Bodily injury" or "property damage" occurring
after:
a. All work, including materials, parts or
equipment furnished in connection with
such work, on the project (other than
service, maintenance or repairs) to be
performed by or on behalf of the additional
insured(s) at the location of the covered
operations has been completed; or
b. That portion of "your work" out of which the
injury or damage arises has been put to its
intended use by any person or organization
other
than
another
contractor
or
subcontractor
engaged
in
performing
operations for a principal as a part of the
same project.
C. With respect to the insurance afforded to these
additional insureds, the following is added to
Section III – Limits Of Insurance:
The most we will pay on behalf of the additional
insured is the amount of insurance:
1. Required by the contract or agreement you
have entered into with the additional insured;
or
2. Available
under
the
applicable
limits
of
insurance;
whichever is less.
This
endorsement
shall
not
increase
the
applicable limits of insurance.
POLICY NUMBER:
COMMERCIAL GENERAL LIABILITY
CG 20 10 12 19
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
CG 20 10 12 19
© Insurance Services Office, Inc., 2018
Page 1 of 2
ADDITIONAL INSURED – OWNERS, LESSEES OR
CONTRACTORS – SCHEDULED PERSON OR
ORGANIZATION
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
Name Of Additional Insured Person(s)
Or Organization(s)
Location(s) Of Covered Operations
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.
A. Section II – Who Is An Insured is amended to
include as an additional insured the person(s) or
organization(s) shown in the Schedule, but only
with respect to liability for "bodily injury", "property
damage" or "personal and advertising injury"
caused, in whole or in part, by:
1. Your acts or omissions; or
2. The acts or omissions of those acting on your
behalf;
in the performance of your ongoing operations for
the
additional
insured(s)
at
the
location(s)
designated above.
However:
1. The insurance afforded to such additional
insured only applies to the extent permitted by
law; and
2. If coverage provided to the additional insured is
required by a contract or agreement, the
insurance afforded to such additional insured
will not be broader than that which you are
required by the contract or agreement to
provide for such additional insured.
B. With respect to the insurance afforded to these
additional
insureds,
the
following
additional
exclusions apply:
This insurance does not apply to "bodily injury" or
"property damage" occurring after:
1. All
work,
including
materials,
parts
or
equipment furnished in connection with such
work, on the project (other than service,
maintenance or repairs) to be performed by or
on behalf of the additional insured(s) at the
location of the covered operations has been
completed; or
2. That portion of "your work" out of which the
injury or damage arises has been put to its
intended use by any person or organization
other than another contractor or subcontractor
engaged in performing operations for a
principal as a part of the same project.
:KHUHUHTXLUHGE\:ULWWHQ&RQWUDFWRU$JUHHPHQW
$OO/RFDWLRQVXQGHU:ULWWHQ&RQWUDFWRU$JUHHPHQW
0:=<4
Page 2 of 2
© Insurance Services Office, Inc., 2018
CG 20 10 12 19
C. With respect to the insurance afforded to these
additional insureds, the following is added to
Section III – Limits Of Insurance:
If coverage provided to the additional insured is
required by a contract or agreement, the most we
will pay on behalf of the additional insured is the
amount of insurance:
1. Required by the contract or agreement; or
2. Available
under
the
applicable
limits
of
insurance;
whichever is less.
This
endorsement
shall
not
increase
the
applicable limits of insurance.
POLICY NUMBER:
COMMERCIAL GENERAL LIABILITY
CG 20 37 12 19
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
CG 20 37 12 19
© Insurance Services Office, Inc., 2018
Page 1 of 1
ADDITIONAL INSURED – OWNERS, LESSEES OR
CONTRACTORS – COMPLETED OPERATIONS
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART
SCHEDULE
Name Of Additional Insured Person(s)
Or Organization(s)
Location And Description Of Completed Operations
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.
A. Section II – Who Is An Insured is amended to
include as an additional insured the person(s) or
organization(s) shown in the Schedule, but only
with respect to liability for "bodily injury" or
"property damage" caused, in whole or in part, by
"your work" at the location designated and
described in the Schedule of this endorsement
performed for that additional insured and included
in the "products-completed operations hazard".
However:
1. The insurance afforded to such additional
insured only applies to the extent permitted by
law; and
2. If coverage provided to the additional insured is
required by a contract or agreement, the
insurance afforded to such additional insured
will not be broader than that which you are
required by the contract or agreement to
provide for such additional insured.
B. With respect to the insurance afforded to these
additional insureds, the following is added to
Section III – Limits Of Insurance:
If coverage provided to the additional insured is
required by a contract or agreement, the most we
will pay on behalf of the additional insured is the
amount of insurance:
1. Required by the contract or agreement; or
2. Available
under
the
applicable
limits
of
insurance;
whichever is less.
This
endorsement
shall
not
increase
the
applicable limits of insurance.
:KHUHUHTXLUHGE\:ULWWHQ&RQWUDFWRU$JUHHPHQW
$OO/RFDWLRQVXQGHU:ULWWHQ&RQWUDFWRU$JUHHPHQW
0:=<4
COMMERCIAL GENERAL LIABILITY
CG 20 01 12 19
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
CG 20 01 12 19
© Insurance Services Office, Inc., 2018
Page 1 of 1
PRIMARY AND NONCONTRIBUTORY –
OTHER INSURANCE CONDITION
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART
The following is added to the Other Insurance
Condition
and supersedes any provision to the
contrary:
Primary And Noncontributory Insurance
This insurance is primary to and will not seek
contribution from any other insurance available to
an additional insured under your policy provided
that:
(1) The additional insured is a Named Insured
under such other insurance; and
(2) You have agreed in writing in a contract or
agreement that this insurance would be
primary and would not seek contribution
from any other insurance available to the
additional insured.
3ROLF\1R 0:=<4
PCA 048 09 19
Page 1 of 1
Includes copyrighted material of Insurance Services Office, Inc., with its permission.
IL 10 (12/06) OLD REPUBLIC INSURANCE COMPANY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED AND PRIMARY AND
NON-CONTRIBUTORY ENDORSEMENT
This endorsement modifies insurance provided under the following:
BUSINESS AUTO COVERAGE FORM
MOTOR CARRIER COVERAGE FORM
SCHEDULE
Designated Person(s) or Organization(s):
A.
SECTION II – COVERED AUTOS LIABILITY COVERAGE, paragraph 1. Who Is An Insured is
amended to include the person(s) or organization(s) shown in the above Schedule as an
additional “insured”, but only with respect to "accidents" arising out of your work while being
performed for such person(s) or organization(s).
B.
The following is added to the Other Insurance Condition in the Business Auto Coverage Form
and the Other Insurance – Primary And Excess Insurance Provisions in the Motor Carrier
Coverage Form and supersedes any provision to the contrary:
This policy's Covered Autos Liability Coverage is primary to and will not seek contribution from
any other insurance available to the “insured” person(s) or organization(s) shown in the above
Schedule provided that:
1.
Such “insured” is a Named Insured under such other insurance; and
2.
You have agreed in writing in a contract or agreement that this insurance would be
primary and would not seek contribution from any other insurance available to such
"insured".
All persons or organizations where required by written contract.
POLICY NUMBER: MWTB31366824
POLICY NUMBER:
COMMERCIAL GENERAL LIABILITY
CG 24 04 12 19
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
CG 24 04 12 19
© Insurance Services Office, Inc., 2018
Page 1 of 1
WAIVER OF TRANSFER OF RIGHTS OF RECOVERY
AGAINST OTHERS TO US (WAIVER OF SUBROGATION)
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
ELECTRONIC DATA LIABILITY COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART DESIGNATED SITES
POLLUTION LIABILITY LIMITED COVERAGE PART DESIGNATED SITES
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART
RAILROAD PROTECTIVE LIABILITY COVERAGE PART
UNDERGROUND STORAGE TANK POLICY DESIGNATED TANKS
SCHEDULE
Name Of Person(s) Or Organization(s):
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.
The following is added to Paragraph 8. Transfer Of
Rights Of Recovery Against Others To Us of
Section IV – Conditions:
We waive any right of recovery against the person(s)
or organization(s) shown in the Schedule above
because of payments we make under this Coverage
Part. Such waiver by us applies only to the extent that
the insured has waived its right of recovery against
such person(s) or organization(s) prior to loss. This
endorsement applies only to the person(s) or
organization(s) shown in the Schedule above.
Any persons or organizations requiring a waiver of transfer of rights of recovery pursuant to the terms of any contract or
agreement you enter into with such person or organization
MWZY31366724
PCA 024 10 13
Page 1 of 1
IL 10 (12/06) OLD REPUBLIC INSURANCE COMPANY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US
This endorsement modifies insurance provided under the following:
AUTO DEALERS COVERAGE FORM
BUSINESS AUTO COVERAGE FORM
MOTOR CARRIER COVERAGE FORM
SCHEDULE
Name of Person or Organization:
(If no entry appears above, information required to complete this endorsement will be shown in the
Declarations as applicable to this endorsement.)
The Transfer Of Rights Of Recovery Against Others To Us Condition is changed by adding the
following:
We waive any right of recovery we may have against the person(s) or organization(s) shown in the
Schedule because of payments we make for injury or damage. This waiver applies only to the person or
organization shown in the Schedule.
All persons or organizations as required by contract or agreement
3ROLF\1R MWTB31366824
SKWD CX 20 57 05 22
SKWD CX 20 57 05 22
Includes copyrighted material of Insurance Services Office, Inc.,
with its permission.
Page 1 of 3
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
WAIVER OF TRANSFER OF RIGHTS OF RECOVERY
AGAINST OTHERS TO US
This endorsement modifies insurance provided under the following:
COMMERCIAL EXCESS LIABILITY POLICY
SCHEDULE
Person or Organization:
Additional Premium
$
A. The following is added to SECTION III. CONDITIONS:
Waiver Of Transfer Of Rights Of Recovery Against Others To Us
We waive any right of recovery we may have against the person or organization shown in the SCHEDULE
above because of payments we make for injury or damage arising out of your ongoing operations or “your
work” done under a written contract or agreement with that person or organization and included in the
“products-completed operations hazard”. This waiver applies only to the person or organization shown in the
SCHEDULE above.
B. For the purposes of this endorsement, the following definition are added to SECTION IV – DEFINITIONS:
"Auto" means:
1. A land motor vehicle, trailer or semitrailer designed for travel on public roads, including any attached
machinery or equipment; or
2. Any other land vehicle that is subject to a compulsory or financial responsibility law or other motor
vehicle insurance law where it is licensed or principally garaged.
However, "auto" does not include "mobile equipment".
"Loading or unloading" means the handling of property:
1. After it is moved from the place where it is accepted for movement into or onto an aircraft, watercraft or
"auto";
2.
While it is in or on an aircraft, watercraft or "auto"; or
3.
While it is being moved from an aircraft, watercraft or "auto" to the place where it is finally delivered;
but "loading or unloading" does not include the movement of property by means of a mechanical device,
other than a hand truck, that is not attached to the aircraft, watercraft or "auto".
When required by written contract or agreement
POLICY NUMBER: ARUIICCX000005702
SKWD CX 20 57 05 22
Includes copyrighted material of Insurance Services Office, Inc.,
with its permission.
Page 2 of 3
"Mobile equipment" means any of the following types of land vehicles, including any attached machinery or
equipment:
1. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads;
2. Vehicles maintained for use solely on or next to premises you own or rent;
3. Vehicles that travel on crawler treads;
4. Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently
mounted:
a. Power cranes, shovels, loaders, diggers or drills; or
b. Road construction or resurfacing equipment such as graders, scrapers or rollers;
5. Vehicles not described in Paragraph 1., 2., 3. or 4. above that are not self-propelled and are maintained
primarily to provide mobility to permanently attached equipment of the following types:
a. Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical
exploration, lighting and well servicing equipment; or
b. Cherry pickers and similar devices used to raise or lower workers;
6. Vehicles not described in Paragraph 1., 2., 3. or 4. above maintained primarily for purposes other than
the transportation of persons or cargo.
However, self-propelled vehicles with the following types of permanently attached equipment are not
"mobile equipment" but will be considered "autos":
a. Equipment designed primarily for:
(1) Snow removal;
(2) Road maintenance, but not construction or resurfacing; or
(3) Street cleaning;
b. Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or
lower workers; and
c. Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical
exploration, lighting and well servicing equipment.
However, "mobile equipment" does not include any land vehicles that are subject to a compulsory or
financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged.
Land vehicles subject to a compulsory or financial responsibility law or other motor vehicle insurance law
are considered "autos".
"Products-completed operations hazard":
a. Includes all "injury or damage" occurring away from premises you own or rent and arising out of "your
product" or "your work" except:
(1) Products that are still in your physical possession; or
(2) Work that has not yet been completed or abandoned. However, "your work" will be deemed
completed at the earliest of the following times:
(a) When all of the work called for in your contract has been completed.
(b) When all of the work to be done at the job site has been completed if your contract calls for work
at more than one job site.
(c) When that part of the work done at a job site has been put to its intended use by any person or
organization other than another contractor or subcontractor working on the same project.
Work that may need service, maintenance, correction, repair or replacement, but which is otherwise
complete, will be treated as completed.
SKWD CX 20 57 05 22
Includes copyrighted materials of Insurance Services Office, Inc.,
with its permission.
Page 3 of 3
b. Does not include “injury or damage" arising out of:
(1) The transportation of property, unless the injury or damage arises out of a condition in or on a
vehicle not owned or operated by you, and that condition was created by the "loading or unloading"
of that vehicle by any insured;
(2) The existence of tools, uninstalled equipment or abandoned or unused materials; or
(3) Products or operations for which the classification, listed in the Declarations or in a policy Schedule,
states that products completed operations are subject to the General Aggregate Limit of the General
Liability Coverage Part.
"Your product":
a. Means:
(1) Any goods or products, other than real property, manufactured, sold, handled, distributed or
disposed of by:
(a) You;
(b) Others trading under your name; or
(c) A person or organization whose business or assets you have acquired;
and
(2) Containers (other than vehicles), materials, parts or equipment furnished in connection with such
goods or products.
b. Includes:
(1) Warranties or representations made at any time with respect to the fitness, quality, durability,
performance or use of "your product"; and
(2) The providing of or failure to provide warnings or instructions.
c. Does not include vending machines or other property rented to or located for the use of others but not
sold.
"Your work":
a. Means:
(1) Work or operations performed by you or on your behalf; and
(2) Materials, parts or equipment furnished in connection with such work or operations.
b. Includes:
(1) Warranties or representations made at any time with respect to the fitness, quality, durability,
performance or use of "your work"; and
(2) The providing of or failure to provide warnings or instructions.
WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY
WC 00 0313
POLICY NUMBER: MWC 31366624
WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT
We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce
our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you
perform work under a written contract that requires you to obtain this agreement from us.)
This agreement shall not operate directly or indirectly to benefit anyone not named in the Schedule.
SCHEDULE
BLANKET COVERAGE AS REQUIRED BY WRITTEN CONTRACT
DATE OF ISSUE:
© 1983 National Council on Compensation Insurance.
INSURED COPY
WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY
TEXAS WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT
WC420304B
(Ed. 6-14)
This endorsement applies only to the insurance provided by the policy because Texas is shown in Item 3.A. of the
Information Page.
We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce
our right against the person or organization named in the Schedule, but this waiver applies only with respect to bodily
injury arising out of the operations described in the Schedule where you are required by a written contract to obtain
this waiver from us.
This endorsement shall not operate directly or indirectly to benefit anyone not named in the Schedule.
The premium for this endorsement is shown in the Schedule.
Schedule
1.
( ) Specific Waiver
Name of person or organization
(X) Blanket Waiver
Any person or organization for whom the Named Insured has agreed by written contract to furnish this
waiver.
2.
Operations:
ALL TEXAS OPERATIONS
3.
Premium:
The premium charge for this endorsement shall be
O
percent of the premium developed on payroll in
connection with work performed for the above person(s) or organization(s) arising out of the operations
described.
4.
Advance Premium: INCLUDED
This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated.
(The information below is required only when this endorsement is issued subsequent to preparation of the policy.)
Endorsement Effective 05-31-2024
Policy No. MWC 313666 24
Insured WILLMENG CONSTRUCTION, INC.
Insurance Company OLD REPUBLIC INSURANCE COMPANY
Countersigned By
WC4203048
(Ed. 6-14)
Copyright 2014 National Council on Compensation Insurance, Inc. All Rights Reserved.
INSURED COPY
Endorsement No.
Premium $ INCL .
0:=<4
B. For all sums which the insured becomes legally
obligated to pay as damages caused by "occur
rences" under Section I - Coverage A, and for all
medical expenses caused by accidents under
Section I - Coverage C, which cannot be at
tributed only to ongoing operations at a single
designated construction project shown in the
Schedule above:
1. Any payments made under Coverage A for
damages or under Coverage C for medical
expenses shall reduce the amount available
under the General Aggregate Limit or the
Products-completed Operations Aggregate
Limit, whichever is applicable; and
2. Such payments shall not reduce any Desig
nated Construction Project General Aggre
gate Limit.
C. When coverage for liability arising out of the
"products-completed operations hazard" is pro
vided, any payments for damages because of
"bodily injury" or "property damage" included in
the "products-completed operations hazard" will
reduce the Products-completed Operations Ag
gregate Limit, and not reduce the General Ag
gregate Limit nor the Designated Construction
Project General Aggregate Limit.
D. If the applicable designated construction project
has been abandoned, delayed, or abandoned
and then restarted, or if the authorized contract
ing parties deviate from plans, blueprints, de
signs, specifications or timetables, the project will
still be deemed to be the same construction pro
ject.
E. The provisions of Section Ill - Limits Of Insur
ance not otherwise modified by this endorsement
shall continue to apply as stipulated.
Page 2 of 2
© Insurance Services Office, Inc., 2008
CG 25 03 05 09
POLLUTION LIABILITY
Policy No: 13CPIGD7603
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE
DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
CANCELLATION
ACORD 28 (2016/03)
© 2003-2015 ACORD CORPORATION. All rights reserved.
NO
YES
NO
YES
If YES, LIMIT:
DED:
Subject to Different Provisions:
Subject to Different Provisions:
NAMED STORM INCL
DED:
If YES, LIMIT:
If YES, LIMIT:
If YES, LIMIT:
If YES, LIMIT:
If YES, LIMIT:
If YES, LIMIT:
If YES, LIMIT:
RENTAL VALUE
N/A
FUNGUS EXCLUSION (If "YES", specify organization's form used)
LIMITED FUNGUS COVERAGE
$
EARTH MOVEMENT (If Applicable)
WIND / HAIL INCL
ORDINANCE OR LAW
EQUIPMENT BREAKDOWN (If Applicable)
COINSURANCE
AGREED VALUE
REPLACEMENT COST
DED:
IS DOMESTIC TERRORISM EXCLUDED?
IS THERE A TERRORISM-SPECIFIC EXCLUSION?
Attach Disclosure Notice / DEC
TERRORISM COVERAGE
BLANKET COVERAGE
YES NO
COVERAGE INFORMATION
FLOOD (If Applicable)
PERMISSION TO WAIVE SUBROGATION IN FAVOR OF MORTGAGE
HOLDER PRIOR TO LOSS
If YES,
%
DED:
COMMERCIAL PROPERTY COVERAGE AMOUNT OF INSURANCE:
DED:
PERILS INSURED
BASIC
BROAD
SPECIAL
- Demolition Costs
- Incr. Cost of Construction
- Coverage for loss to undamaged portion of bldg
DED:
DED:
DED:
DED:
DED:
If YES, indicate value(s) reported on property identified above: $
BUSINESS INCOME
If YES, LIMIT:
Actual Loss Sustained; # of months:
If YES, LIMIT:
AUTHORIZED REPRESENTATIVE
ADDITIONAL INTEREST
NAME AND ADDRESS
LENDER SERVICING AGENT NAME AND ADDRESS
CONTRACT OF SALE
MORTGAGEE
LENDER'S LOSS PAYABLE
LOCATION / DESCRIPTION
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING
ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS EVIDENCE OF PROPERTY INSURANCE MAY
BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS
OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
(ACORD 101 may be attached if more space is required)
BUILDING OR
BUSINESS PERSONAL PROPERTY
THIS EVIDENCE OF COMMERCIAL PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS
UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER
THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN
THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE ADDITIONAL INTEREST.
ADDITIONAL NAMED INSURED(S)
NAMED INSURED AND ADDRESS
CODE:
AGENCY
CUSTOMER ID #:
SUB CODE:
E-MAIL
ADDRESS:
(A/C, No, Ext):
PHONE
FAX
(A/C, No):
PRODUCER NAME,
CONTACT PERSON AND ADDRESS
EXPIRATION DATE
EFFECTIVE DATE
THIS REPLACES PRIOR EVIDENCE DATED:
TERMINATED IF CHECKED
CONTINUED UNTIL
IF MULTIPLE COMPANIES, COMPLETE SEPARATE FORM FOR EACH
COMPANY NAME AND ADDRESS
NAIC NO:
POLICY TYPE
POLICY NUMBER
LOAN NUMBER
EVIDENCE OF COMMERCIAL PROPERTY INSURANCE
DATE (MM/DD/YYYY)
The ACORD name and logo are registered marks of ACORD
PROPERTY INFORMATION
LOSS PAYEE
3/6/2025
602-273-1625
12572
INSURICA Insurance Services, LLC
4686 E. Van Buren St, #310
Phoenix, AZ 85008
602-273-0212
certs@INSURICA.com
Selective Insurance Company of America
40 Wantage Avenue
Branchville, NJ 07890
WILLCON03C
BUILDERS RISK - Monthly Reporting
Willmeng Construction, Inc.
1702 E. Highland Ave, Suite 450
Phoenix AZ 85016
S2506334
05/31/2024
05/31/2025
X
BUILDERS RISK ~ Special Form, MONTHLY REPORTING FORM-Locations as reported
See Attached...
X
70,000,000
SEE REMARKS
X
X
included
X
as reported
X
X
X
X
150,000
25,000
X
X
X
X
X
70,000,000
SEE REMARKS
X
Included
SEE REMARKS
X
2,000,000
SEE REMARKS
X
2,000,000
SEE REMARKS
X
10,000,000
25,000
X
25,000,000
25,000
X
X
70,000,000
25,000
X
X
70,000,000
25,000
X
X
City of Chandler
Public Works & Utilities Department
PO Box 4008, Mail Stop 407
Chandler, AZ 85244-4008
ACORD 101 (2008/01)
The ACORD name and logo are registered marks of ACORD
© 2008 ACORD CORPORATION. All rights reserved.
THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM,
FORM NUMBER:
FORM TITLE:
ADDITIONAL REMARKS
ADDITIONAL REMARKS SCHEDULE
Page of
AGENCY CUSTOMER ID:
LOC #:
AGENCY
CARRIER
NAIC CODE
POLICY NUMBER
NAMED INSURED
EFFECTIVE DATE:
WILLCON03C
1
1
INSURICA Insurance Services, LLC
S2506334
Willmeng Construction, Inc.
1702 E. Highland Ave, Suite 450
Phoenix AZ 85016
Selective Insurance Company of America
12572
05/31/2024
28
EVIDENCE OF COMMERCIAL PROPERTY INSURANCE
REMARKS:
LIMITS /DEDUCTIBLES:
Ded: $25,000 / Site Work/Infrastructure Work - Ded $5,000
Ded: Interior Water Damage $25,000 for projects under $25M; $50,000 for projects over $25M
Property In Transit: $1,000,000 / Temporary Storage or Off-Site Fabrication: $1,000,000
Construction Type:
Limit:
Deductible:
Frame
$7,000,000
$25,000
Joisted Masonry
$70,000,000
$25,000
Non-Combustible
$70,000,000
$25,000
Masonry Non-Combustible
$70,000,000
$25,000
Site Work & Infrastructure
$40,000,000
$5,000
Earth Movement includes Collapse except "sinkhole collapse"
Earth Movement and Flood limits and deductibles subject to location zones
Hot & Cold Testing is included
Expediting Expenses $500,000
Jobsite Trailer Contents $300,000
Sewer or Drain Back up $500,000
Debris Removal 25% + $250,000
Soft Costs and Loss of Rents are included in the limits by construction type.
Additional Soft Costs: $100,000 / Deductible: $25,000
City of Chandler is Loss Payee with respect to City Project CA2402.251, Dr. AJ Chandler Park Renovation, 3 S. Arizona Ave, Chandler, AZ 85225.
LOCATION/DESCRIPTION:
BLANKET Endorsements:
Owner & Mortgagee are Loss Payee
30 Day Notice of Cancellation to Mortgagee
Waiver of Subrogation Applies
Permission to Occupy is Granted