Contract with Buslam Company Partners Inc. d/b/a Buslam 2 022-32 02 6
DocuSign Envelope ID:C839184E-18F7-4DOE-94B8-98D312F9D7E7 •
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Contract no.21-095-01
CONTRACT
THIS CONTRACT ("Contract") is made and entered into as of the 115 day of C- Y
2022, by and between the City of Miami Beach, Florida,:a municipal corporation(the"City`)tnd
BUSLAM COMPANY PARTNERS INC.DBA BUSLAM., (the"Contractor"):
WITNESSETH,that the Contractor,for and in consideration of the payments hereinafter specified
and agreed to be made by the City, hereby covenants and agrees to furnish and deliver all the
materials required, to do and perform all the work and labor, in a satisfactory and workmanlike
manner,required to complete this Contract within the time specified,in strict and entire conformity
with the Plans,Specifications,and other Contract Documents,which are hereby incorporated into
this Contract by reference,for: •
iTB-2021-095-AY FOR
NORTH BEACH OCEANSIDE PARK
The Contractor agrees to make payment of all proper charges for labor and materials required in
the aforementioned work,and to defend, indemnify and save harmless City, and their respective
officers and employees, from liabilities, damages, losses and costs including, but not limited to,
reasonable attorney's fees, to the extent caused by the negligence, recklessness, or intentional
wrongful misconduct of Contractor and persons employed or utilized by Contractor in the
performance of this Contract.
The requirements of the Contract Documents, as such term is defined in the Invitation to Bid by
reference to the General Conditions for Construction Contracts dated April 13,2020, are hereby
incorporated by reference as if fully set forth herein. Without limiting the foregoing, the Contract
Documents expressly include this Contract, Attachment A (the City's General Conditions for
Construction Contracts), Attachment B(Plans and Specifications, Invitation to Bid 2021-095-AY
and all Addenda thereto),Attachment C(Sunbiz Entity Detail and Contractor's Response to ITB)
and Attachment D (Insurance Requirements). For the avoidance of doubt, all of the documents
constituting the Contract Documents now or hereafter existing (including any Change Orders,
Work Orders, Field Orders, schedules, shop drawings, issued subsequent to the date of this
Contract etc.)shall govern this Project.
In consideration of these premises, the City hereby agrees to pay to the Contractor for the said
work, when fully completed, the total maximum sum of nine million, eight hundred fifty-six
thousand, five hundred twenty-two dollars ($9,856,522.00) (the "Contract Price"), consisting of
the following accepted Items or schedules of work as taken from the Contractor's Bid Submittal:
Total Base Bid . $8,960,474.84.
Total Owner's Contingency„ • $896,047.16
The Contract Price is subject to such additions and deductions as may be provided for in the
Contract Documents. Partial and Final Payments will be made as provided for in the Contract
Documents.
Contract Completion Time&Schedule:
1
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Contract no.21-095-01
Days for Substantial Completion:480 days(Phase I: 240 days; Phase II: 240 days).
Days for Final Completion:45 days
The City reserves the right to exercise bid deduct alternate 13 to require the Contractor to
complete the Work in a single phase by providing notice to the Contractor within fourteen(14)
calendar days of the issuance of the first Notice to Proceed. In the event the City exercises such
right, (I)the days for Substantial Completion shalt be adjusted to 365 days, (ii) the days for Final
Completion shall remain at 45 days and(iii)the Contractor shall issue a deductive Change Order
in the amount of$166,560.58 and the Contract Price shall be accordingly adjusted.
Whenever either party desires to give notice to the other, such notice must be in writing, sent by
certified United States Mail, postage prepaid, return receipt requested, or by hand-delivery with a
request for a written receipt of acknowledgment of delivery, addressed to the party for whom it is
intended at the place last specified.
The place for giving notice shall remain the same as set forth herein, unless such notice
information is revised in a Contract amendment duly executed by the City and the
Contractor. For the present,the parties designate the following:
For City:
City of Miami Beach
Office of Capital Improvement Projects (CIP)
1701 Meridian Avenue, 3rd Floor
Miami Beach, FL.33139
Attn: Director
Ph:305-673-7071
With copies to:
City Attorney
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Attn: City Attorney
Ph: 305-673-7000
For Contractor:
Buslam Company Partners, Inc. DBA BUSLAM
960 Arthur Godfrey Road Suite 206
Miami Beach, FL 33140
Attn: Ivan Busto
Ph: 888-515-3107 ext. 203
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DocuSign Envelope ID:CB39184E-18F7-4D0E-94B8-98D312F9D7E7
Contract no.21-095-01
IN WITNESS WHEREOF, the above parties have caused this Contract to be executed by their
appropriate officials as of the date first above written.
FOR CITY:
ATTEST: CITY OF MIAMI BEACH, FLORIDA
By: By:
Rafael Granado, City Clerk ina T. Huda , ity anager
Date: WJUSL-L
APPROVED AS TO
peal] FORM&LANGUAGE
y,, &FOR EXECUTION
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! C ;•?= jA ClryAttorney Dote
FOR CONTRACTOR: '�
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ATTEST: BUSLAM COMPANY PARTNERS INC,
DBA BUSLAM
By: (Y-3By:
Name: Name: `Ts-
Date: 2 tg 12 Z Date: 2 k 7.2
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DocuSign Envelope ID:CB39184E-18F7-4D0E-94B8-98D312F9D7E7
MIAMIBEACH
GENERAL CONDITIONS FOR CONSTRUCTION CONTRACTS
(April 13,2020)
ARTICLE 1. DEFINITIONS AND INTERPRETATION OF CONTRACT DOCUMENTS.
1.1. Definitions. The definitions included in this Section are not exhaustive of all definitions used in the
Contract Documents. Additional terms may be defined in other Contract Documents. The following terms
shall have the meanings specified herein,as follows:
"Applicable Laws" means all laws, codes(including, but not limited to, building codes), ordinances, rules
regulations,lawful orders and decrees of governmental authorities having jurisdiction over the Project,Project
Site,or the Parties.
"Application for Payment" means the detailed itemized documentation, including all supporting
documentation, in a form and substance satisfactory to the City, submitted by the Contractor on a monthly
basis in order to obtain the City's approval for payment for Work performed pursuant to the Contract
Documents.
"Bid" means an offer or proposal submitted by a bidder in response to this ITB. The terms "Bid" and "Bid
Submittal"are used interchangeably.
"Bidder"means any individual or firm submitting a Bid for this Project.
"Change Order"means a written document ordering a change in the Contract Price and/or Contract Time
or a material change in the Work(as defined herein). A Change Order must comply with the requirements
of the Contract Documents.
"CIP Inspector/PWD Field Observer"means a City employee charged with observing and documenting,for
internal City purposes only,general observations and conditions of the Project including,without limitation,the
weather conditions, the number of workers present at the time of observation, general type of work being
performed and taking photographs regarding same. Contractor expressly waives any right to assert as a
defense to any claim regarding the Project including, without limitation, any dispute between the City and
Contractor, and Contractor and any third party, the presence or purported approval or consent of any CIP
Inspector or other City employee conducting any field observations during the Project. The Contractor
expressly acknowledges that the purpose of such City employee is to observe and document for internal
purposes only general observations and conditions of the Project, and in no way is intended to, nor shall be
treated as,a person with authority to approve or reject the Work on behalf of the City or any other entity,or to
direct the Contractor's Work in any way. Contractor expressly agrees to waive the presence of such CIP
Inspector or other City employee performing field observations as a defense to any Claims involving the
Project.
"City" means the City of Miami Beach, a Florida municipal corporation, having its principal offices at 1700
Convention Center Drive, Miami Beach, Florida 33139. In all respects hereunder, City's obligations and
performance is pursuant to City's position as the owner of the Project acting in its proprietary capacity. In
the event City exercises its regulatory authority as a governmental body including, but not limited to, its
regulatory authority for code inspections and issuance of Building Department permits, Public Works
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Department permits,or other applicable permits within its jurisdiction,the exercise of such regulatory authority
and the enforcement of any rules, regulations, laws and ordinances shall be deemed to have occurred
pursuant to City's regulatory authority as a governmental body and shall not be attributable in any manner to
City as a Party to this Contract.
"City Commission"means the governing and legislative body of the City.
"City Manager"means the Chief Administrative Officer of the City. The City Manager shall be construed to
include the Contract Administrator and any duly authorized representatives of the City as the City Manager
may designate in writing at any time with respect to any specific matter(s)concerning the Project and/or the
Contract Documents (exclusive of those authorizations reserved to the City Commission or regulatory or
administrative bodies having jurisdiction over any matter(s) related to the Project and/or the Contract
Documents).
"Claim" means a demand or assertion by one of the parties seeking, as a matter of right, adjustment or
interpretation of the Contract Documents,payment of money,extension of time or other relief with respect to
the Contract Documents or Project. The term"Claim"also includes other disputes and matters in question
between the City and Contractor arising out of or relating to the Contract Documents. Claims must be initiated
by written notice in strict accordance with the Contract Documents. The responsibility for substantiating
Claims shall rest with the Party making the Claim. All Claims submitted by Contractor must comply with the
requirements of the City's False Claims Ordinance,as set forth in Sections 70-300 et seq.,of the City Code,
or shall be forfeited in accordance with the terms of the False Claims Ordinance and conclusively waived and
• released.
"Consultant" means the firm named in the Invitation to Bid Summary as the"Consultant,"that has entered
into a separate agreement with the City to perform architectural,engineering,or other design and construction
administration services for the Project, and who will serve as the "architect of record" and/or"engineer of
record"for the Project.Wherever the word "Architect"or"Engineer"or"Consultant"appears in the Contract
Documents, it shall be deemed to refer to the Consultant and/or the design professionals engaged by the
Consultant. All communications, directives, instructions, interpretations and actions required of Consultant
shall be issued or taken only by or through Consultant's authorized representative(s),
"Construction Superintendent" means the individual who is a representative of the Contractor, and who
shall be responsible for continuous field supervision,coordination,and completion of the Work,and who shall
maintain a full-time on-site, physical presence at the Project Site and satisfy the obligations of Construction
Superintendent as provided in the Contract Documents.
"Contract" means the written agreement between the City and the Contractor for the performance of the
Work in accordance with the requirements of the Contract Documents, and for the payment of the agreed
consideration.
"Contract Administrator" means the City's Contract Administrator shall mean the individual appointed by
the City Manager who shall be the City's authorized representative to coordinate,direct,and review on behalf
of the City,all matters related to the Project. The initial Contract Administrator for the Project is named in the
Invitation to Bid Summary.
"Contract Documents" means all of the documents setting forth bidding information, requirements and
contractual obligations for the Project, including this ITB, Contractor's Bid in response thereto, the Contract,
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and the Plans and Specifications, together with all addenda to any of the foregoing, Change Orders, Work
Orders, Field Orders, schedules and shop drawings, and all other documents required by the ITB for the
completion of the Project.
"Contract Price" means the amount established in the Contract Documents as the total amount the City is
obligated to pay for full and complete performance of all of the Work required by the Contract Documents
(including, but not limited to, all labor, equipment and materials to administer, coordinate, provide related
certifications,install and otherwise construct and complete the Project within the Contract Time),and as may
be amended by Change Order.
"Contract Time"means the number of days allowed for completion of all Work,as stipulated in the Contract
Documents,and as may be amended by Change Order.
"Contractor" means the individual or firm whose Bid is accepted and who enters into the Contract with the
City to construct the Project pursuant to the Contract Documents and who is liable for the acceptable
performance of the Work and payment of all debts pertaining to the Work.
"Days" means all references to numbers of days in the Contract Documents, shall be construed to mean
calendar days, unless specifically noted otherwise. The term "business days" means a day other than a
Saturday, Sunday, Federal holiday or any day on which the principal commercial banks located in Miami-
Dade County, Florida are not open for business during normal hours.
• "Field Order" or "Field Directive" means a written order which further describes details or provides
interpretations necessary to complete the Work of the Contract Documents but which does not involve a
change in the Contract Price or Contract Time.
"Final Completion"means the date upon which all conditions and requirements of the Contract Documents,
permits and regulatory agencies have been satisfied;any documents required by the Contract Documents
have been received by the City; any other documents required to be provided have been received by City;
and the Work has been fully completed in accordance with the Contract Documents.
"Notice(s)to Proceed"or"NTP"means a written letter or directive issued by the Contract Administrator
to Contractor to commence and proceed with portions of the Work as specified therein or a specific task of
the Project,and stating any further limitations on the extent to which Contractor may commence and proceed
with the Work. Unless otherwise approved by the City at its sole discretion, City's issuance of a Notice to
Proceed for construction or portions thereof shall be contingent upon Contractor obtaining all appropriate
permits and satisfying all requirements of agencies having jurisdiction. However,the City is not obligated to
immediately issue NTP on the date Contractor obtains all requisite permits and/or satisfies the specified
conditions precedent for issuance of NTP. The date of issuance of NTP shall be determined at the City's
sole discretion once Contractor has obtained all required permits and otherwise satisfied all conditions
precedent to issuance of NTP.
"Owner's Contingency" means that separate fund which is available for City's use at its sole discretion to
defray additional expenses relative to the design and construction of the Project, as well as additional
expenses expressly chargeable to the City or otherwise deemed the responsibility of the City pursuant to the
Contract Documents. The City retains exclusive use and control of the Owner's Contingency. The Contractor
has no right or entitlement whatsoever to the Owner's Contingency,and use of such funds are subject to the
Contract Administrator's or City Manager's prior written approval and issuance of a Change Order by the City
3 l General Conditions for Construction Contracts(April 13, 2020)
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at its sole and absolute discretion.Any unused City Contingency remaining at the completion of the Project
shall accrue solely to the City.
"Parties"means City and Contractor, and "Party" is a reference to either City or Contractor, as the context
may indicate or require.
"Plans"means the drawings or reproductions thereof prepared by the Consultant,which show the location,
character,dimensions and details of the Work to be done,and which are a part of the Contract Documents.
"Project"means the improvements described in the Contract Documents and all Work that is contemplated
thereby or reasonably inferable therefrom.
"Project Initiation Date"means the date upon which the Contract Time commences.
"Project Manager" means the authorized individual which is the representative of Contractor and who will
administer and manage the prosecution of all Work on behalf of the Contractor.
"Punch List" means the list or lists prepared by Contractor, incorporating input provided by the City or
Consultant, identifying matters that remain to be completed to achieve Substantial Completion and to be
completed between achievement of Substantial Completion and Final Completion in order that Final
Completion can be declared by City to have occurred.
"Purchase Order" means the written document issued by the City to the Contractor indicating types,
quantities,and/or agreed prices for products or services to be provided to the City.
"Responsible Bidder" means an offeror who has the capability in all respects to perform fully the contract
requirements, and the integrity and reliability which will assure good faith performance, including, without
limitation,the factors identified in Section 2-369 of the City Code.
"Responsive Bidder" means a person or entity who has submitted a bid which conforms in all material
respects to a solicitation.A bid or proposal of a Responsive Bidder must be submitted on the required forms,
which contain all required information, signatures, notarizations, insurance, bonding, security, or other
mandated requirements by the bid documents to be submitted at the time of bid opening.
"Schedule of Values" means a written schedule setting forth the detailed and itemized cost breakdown,
inclusive of labor, material, and taxes of all elements comprising the Contract Price.
"Specifications" means the general term comprising all of the written directions, provisions and
requirements contained in the Contract Documents, as amended, describing the work required to be
performed, including detailed technical requirements as to labor, materials, supplies, equipment and
standards to which such work is to be performed.
"Subcontractor" means any person or entity supplying the Contractor with labor, materials, supplies or
equipment used directly or indirectly by the Contractor in the prosecution of the Work.
"Substantial Completion" means the date when the Work, as certified in writing by the Consultant, and
determined by the City in its sole discretion, has been developed,designed, engineered and constructed in
accordance with the Contract Documents such that all conditions of permits and regulatory agencies have
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been satisfied and the Project is ready for occupancy, utilization and continuous commercial operation for
the uses and purposes intended by the City, without material interference from incomplete or improperly
completed Work and with only minor punch list items remaining to be completed, all as reasonably
determined by the City and evidenced by (1) the issuance of a Certificate of Occupancy or Certificate of
Completion by the authority having jurisdiction; (2)the issuance of a Certificate of Substantial Completion
by the Consultant; and(3)acceptance of such Certificate of Substantial Completion by the City pursuant to
the Contract Documents.
"Surety" means the surety company or individual which is bound by the bid bond, or by the performance
bond or payment bond with and for Contractor who is primarily liable,and which surety company or individual
is responsible for Contractor's satisfactory performance of the work under the contract and for the payment
of all debts pertaining thereto in accordance with Section 255.05, Florida Statutes.
"Work" means all construction and services required by or reasonably inferable from the Contract
Documents for the completion of the Project, including the provision of all labor, materials, equipment,
supplies, tools, machinery, utilities, procurement, fabrication, transportation, construction, erection,
demolition, installation, insurance, bonds, permits and conditions thereof, building code changes and
governmental approvals,testing and inspection services,quality assurance and/or quality control inspections
and related certifications, training,surveys,studies, supervision, and administration services to be provided
by the Contractor, and other items, work and services that are necessary or appropriate for the total
construction, installation, furnishing, equipping, and functioning of the completed Project, together with all
additional, collateral and incidental items, work and services required to achieve Final Completion in
accordance with the Contract Documents.
1.2. Interpretation of the Contract Documents.
1.2.1. As used in the Contract Documents, (i)the singular shall include the plural,and the masculine shall
include the feminine and neutral,as the context requires; (ii)"includes"or"including"shall mean"including,
but not limited to" and "including, without limitation;" and (iii) all definitions of agreements shall include all
amendments thereto in effect from time to time.
1.2.2. Whenever it shall be provided in the Contract Documents that the Contractor is required to perform
a service or obligation"at its sole cost and expense"or words of substantially similar meaning,the Contractor
shall not be entitled to reimbursement for such item and the cost of such service or obligation shall not be
included in any Application for Payment.
1.2.3. Contract Documents shall be construed in a harmonious manner, whenever possible. The general
intent of the Contract Documents is to include all items necessary for the proper execution and completion
of the Project by the Contractor.
1.2.4. The Contract Documents shall be taken as a whole and are complementary, and any item of Work
called for in any Contract Document shall be as binding as if called for by all, so that any part of the Work
shown or described in any of the Contract Documents, though not specifically referred to in other Contract
Documents, shall be executed by Contractor and binding as a part of the Contract Documents, as well as
any Work which,in the sole opinion of City,may be fairly inferred from the Contract Documents or by normal
industry practice.
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1.2.5. Detailed plans shall take precedence over general plans for the same part of the Work.Specifications
and detailed plans which may be prepared or approved by City after the execution of the Contract and which
may be fairly inferred from the original specifications and plans are to be deemed a part of such specifications
and plans,and that portion of the Work shown thereby shall be performed without any change in the Contract
Price or Project Schedule. With respect to conflicts between large-scale drawings and small-scale drawings,
the larger scale drawing shall govern,unless otherwise dictated by Consultant.
1.2.6. Where compliance with two or more requirements is indicated in any of the enumerated Contract
Documents and where these requirements within the Contract Documents conflict in quantity or quality, the
Contractor shall comply with the most stringent requirement as determined by the City, unless specifically
indicated otherwise in the Contract Documents.
1.2.7. As used in the Contract Documents, unless specifically indicated otherwise, references to an Article
include all Sections,Subsections,and items within that Article;references to a Section include all Subsections
and items within that Section;and references to a Subsection include all items within that Subsection.
1.2.8. Words which have a well-known technical or trade meaning are used herein in accordance with such
recognized or well-known meaning, unless the Contract Documents otherwise specifically define such word.
1.2.9. The Recitals,Appendices,Exhibits and Schedules attached hereto are expressly incorporated in and
made a part of the Contract Documents as if fully set forth herein.
• ARTICLE 2. INTENTION AND PRIORITY OF CONTRACT DOCUMENTS.
2.1. Intention of City. It is the intent of City to describe in the Contract Documents a functionally
complete Project (or part thereof) to be constructed in accordance with the Contract Documents and in
accordance with all codes and regulations governing construction of the Project. Any work, materials or
equipment that may reasonably be inferred from the Contract Documents as being required to produce the
intended result shall be supplied by Contractor whether or not specifically called for. City shall have no duties
other than those duties and obligations expressly set forth within the Contract Documents.
2.2. Priority of Contract Documents. In the event of conflict or inconsistency among the Contract
Documents,the following order of precedence shall govern the interpretation of the Contract Documents:
a. Change Orders or Amendments to this Contract(excluding the Plans and Specifications);
b. The Contract Documents(excluding the Plans and Specifications);
c. Modifications or changes to the completed Plans and Specifications,as approved by the City;
d. The completed Plans and Specifications, as approved by the City; and
e. The ITB.
In the event of any conflict between the General Terms and Conditions of the ITB (as may be amended by
Change Order), and the Specifications, the provisions of the General Terms and Conditions, as amended,
shall take precedence and control.
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Contractor shall be furnished two (2) copies, free of charge, of the Contract Documents; which shall be
preserved and always kept accessible to the City, the Consultant, and their respective authorized
representatives. Additional copies of the Contract Documents may be obtained from City at the cost of
reproduction.
ARTICLE 3. CONTRACTOR'S DUTIES AND RESPONSIBILITIES.
3.1. Performance of the Work. The Contractor covenants and warrants that it shall be responsible for
performing and completing, and for causing all Subcontractors to perform and complete, the Work in
accordance with the Contract Documents and all Applicable Laws relating to the Project. Accordingly,
Contractor shall furnish all of the labor, materials,equipment services and incidentals necessary to perform
all of the Work described in the Contract Documents,and all Work that is contemplated thereby or reasonably
inferable therefrom. As part thereof, Contractor shall achieve Substantial Completion within the time period
specified in the Invitation to Bid Summary for Substantial Completion, as such date may be extended
pursuant to the terms of the Contract Documents, and shall achieve Final Completion of the Project by the
date established in the Contract Documents for Final Completion, as such date may be extended pursuant
to the terms of the Contract Documents.Unless otherwise provided in the Contract Documents,or as agreed
to in writing between City and Contractor, the form and content of all reports, forms and regular submittals
by Contractor to City shall be subject to prior approval of the City,and Contractor shall submit such materials
to the City for City's approval prior to implementation. City's approval thereof shall not limit City's right to
thereafter require reasonable changes or additions to approved systems, reports, forms and regular
submittals by Contractor to City.
3.2. Standard of Care. The Work shall be performed in accordance with the professional standards
applicable to projects,buildings,or work of complexity,quality and scope comparable to the Work and the
Project. More specifically, in the performance of the professional services under this Contract, Contractor
shall provide the care and skill ordinarily used by members of its profession practicing under similar
conditions for projects of similar type, size and complexity at the same time and locality of the Project.
Work shall be performed by the Contractor,Subcontractors,and specific personnel referred to in the in the
Contract Documents in accordance with their respective degrees of participation provided and represented
to the City by the Contractor from time to time. The Contractor may add Subcontractors as it deems
necessary or appropriate in order to carry out its obligations under the Contract Documents,provided such
entity shall be suitably qualified and shall be subject to the prior approval of the City. Nothing contained in
the Contract Documents shall be construed to create any obligation or contractual liability running from the
City to any such persons or entities, including to any Subcontractors.
3.3. Notices to Proceed. Contractor shall be instructed to commence the Work by written instructions
in the form of a Purchase Order issued by the City's Procurement Department and a Notice to Proceed issued
by the Contract Administrator.At least two(2)Notices to Proceed will be issued for this Contract.Contractor •
shall commence scheduling activities, permit applications and other preconstruction work within five (5)
calendar days after the Project Initiation Date, which shall be the same as the date of the first Notice to
Proceed.The first Notice to Proceed and Purchase Order will not be issued until Contractor's submission to
City of all required documents,including but not limited to,Payment Bond,Performance Bond,and Insurance
Certificate(s), and after execution of the Contract by both parties.
3.4. Conditions Precedent to Notice to Proceed for Construction of the Work. The following are
conditions precedent to the issuance of a Notice to Proceed to authorize Contractor to mobilize on the Project
Site and commence with physical construction of the Work(typically,the second NTP for a Project):(1)the
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receipt of all necessary permits by Contractor;(2)City's acceptance of the Contractor's full progress schedule
in accordance with the Contract Documents, Contractor's submittal schedule, Contractor's Schedule of
Values, and list of Subcontractors; (3) Contractor's Hurricane Preparedness Plan; and (4) Contractor's
submission to the City and Consultant of any other documents required by the Contractor Documents. The
Contractor shall submit all necessary documents required for issuance of the Notice to Proceed with
construction of the Work within twenty-one(21)calendar days of the issuance of the first Notice to Proceed.
3.5. Warranty.Contractor warrants to City that all materials and equipment furnished under this Contract
will be new unless otherwise specified and that all of the Work will be of good quality, free from faults and
defects and in conformance with the Contract Documents. All work not conforming to these requirements,
including substitutions not properly approved and authorized, may be considered defective. If required by
Consultant or City, Contractor shall furnish satisfactory evidence as to the kind and quality of materials and
equipment. This warranty is not limited by any other provision of the Contract Documents.
3.6. Personnel Requirements.
3.6.1. The orders of City are to be given through Consultant or the Contract Administrator, which
instructions are to be strictly and promptly followed in every case. Contractor shall keep on the Project during
its progress, a full-time competent English speaking Construction Superintendent and any necessary
assistants, all satisfactory to City. The Construction Superintendent shall not be changed except with the
written consent of City,unless the Construction Superintendent proves to be unsatisfactory to Contractor and
ceases to be in its employ. The Construction Superintendent shall represent Contractor and all directions
• given to the Construction Superintendent shall be as binding as if given to Contractor and will be confirmed
in writing by City upon the written request of Contractor. Contractor shall give efficient supervision to the
Work, using its best skill and attention.
3.6.2. The Construction Superintendent shall be responsible for management of the Project Site and tasks,
including, but not limited to, organization and coordination of the Work of Subcontractor employees;
exercising control over rate of construction progress to assure completion of the Project within the
Project Schedule; inspecting or observing the Work to enforce conformity to the Contract Documents and
supervising trades, subcontractors, clerical staff, and other personnel employed in the construction of the
Project. On a daily basis, Contractor's Construction Superintendent shall record,at a minimum,the following
information in a bound log: the day; date; weather conditions and how any weather condition affected
progress of the Work;time of commencement of work for the day;the work being performed;materials,labor,
personnel, equipment and subcontractors at the Project Site; visitors to the Project Site, including
representatives of Consultant; regulatory representatives;any special or unusual conditions or occurrences
encountered; and the time of termination of work for the day. All information shall be recorded in the daily
log in ink. The daily log shall be kept on the Project Site and shall be available at all times for inspection and
copying by City and Consultant.
3.6.3. The Contract Administrator,Contractor and Consultant shall meet at least weekly or as determined
by the Contract Administrator, during the course of the Work to review and agree upon the work performed
to date and to establish the critical path activity or Work for the next two weeks. The Consultant shall publish,
keep,and distribute minutes and any comments thereto of each such meeting.
3.6.4. If Contractor, in the course of prosecuting the Work, finds any discrepancy between the Contract
Documents and the physical conditions of the locality, or any errors, omissions, or discrepancies in the
Contract Documents,it shall be Contractor's duty to immediately inform Consultant,in writing,and Consultant
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will promptly review the same. Any work done after such discovery, until authorized, will be done at
Contractor's sole risk.
3.6.5. Contractor shall supervise and direct the Work competently and efficiently, devoting such attention
thereto and applying such skills and expertise as may be necessary to perform the Work in accordance with
the Contract Documents. Contractor shall be solely responsible for the means, methods, techniques,
sequences and procedures of construction.
3.6.6. The Construction Superintendent must have at least five(5)years of experience in projects of similar
design,scope,size and complexity. The Project Manager must have at least five(5)years of experience in
projects of similar design,scope,size and complexity.
3.7. Subcontracts.
3.7.1. Contractor shall not employ any subcontractor against whom City or Consultant may have a
reasonable objection. Contractor shall not be required to employ any subcontractor against whom Contractor
has a reasonable objection.
3.7.2. Contractor shall be fully responsible for all acts and omissions of its subcontractors and of persons
directly or indirectly employed by its subcontractors and of persons for whose acts any of them may be liable
to the same extent that Contractor is responsible for the acts and omissions of persons directly employed by
it. Nothing in the Contract Documents shall create any contractual relationship between any subcontractor
• and City or any obligation on the part of City to pay or to see the payment of any monies due any
subcontractor. City or Consultant may furnish to any subcontractor evidence of amounts paid to Contractor
on account of specific work performed.
3.7.3. Contractor agrees to bind specifically every subcontractor to the terms and conditions of the Contract
Documents for the benefit of City. All of the Contractor's agreements with the Subcontractors shall contain
the following provisions(or shall incorporate the following provisions by reference)and shall state:
a. that the Subcontractor irrevocably submits itself to the original and exclusive jurisdiction and
venue in Miami-Dade County, Florida, with regard to any controversy in any way relating to the award,
execution or performance of the Contract Documents and/or such Subcontractor's agreement,and whereby
the Subcontractor agrees that service of process on it may be made to the person or entity designated in the -
Subcontract;
b. that the City shall not be in privity of contract with the Subcontractor and shall not be liable
to any Subcontractor under the Contract Documents or any such subcontract, except for the payments of
amounts due to the Subcontractor under its subcontract in the event that the City exercises its rights under
any assignment of the subcontract and requests or directs the Subcontractor to perform the portion of the
Work covered by its subcontract;
c. that the City is a third-party beneficiary of the Subcontract, entitled to enforce any rights
thereunder for their respective.benefits, and that,subject to the terms of the applicable Subcontract,the City
shall have the same rights and remedies vis-à-vis such Subcontractors that Contractor shall have,including
the right to be compensated for any loss,expense or damage of any nature whatsoever incurred by the City
resulting from any breach of such Subcontract by Subcontractor, any breach of representations and
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warranties,if any,implied or expressed,arising out of such agreements and any error,omission or negligence
of such Subcontractor in the performance of any of its obligations under such Subcontract;
d. that the Subcontractor shall indemnify and hold harmless the City, its officers, agents,
directors,and employees,and instrumentalities to the fullest extent permitted by Section 725.06 of the Florida
Statutes;
e. that such subcontract shall be terminable for default or convenience upon ten(10)days prior
written notice by Contractor,or,if the Subcontract has been assigned to the City, by the City or its designee;
f. that Subcontractor shall promptly notify the City(with a copy to Contractor)of any default of
Contractor under the Subcontract,whether as to payment or otherwise;
g. that Contractor and Subcontractor acknowledge that(i)they are each entering into a contract
for the construction of a public facility or public works project as contemplated in Chapter 255, Florida
Statutes, and (ii) each have no right to file a construction lien against the Work or the Project, and further
agree to include a similar requirement in any purchase order or subcontract entered into by Subcontractor;
and (iii)the payment bond provided by Contractor pursuant to this Agreement is a substitute for the right to
claim a lien on the Project,and that any claims for nonpayment shall be made against the bond in accordance
with Section 255.05, Florida Statutes.
h. that Subcontractor shall comply with all Applicable Laws(including prompt payment)and the
City requirements as set forth in the Contract Documents and maintain all files, records, accounts of
expenditures for Subcontractor's portion of the Work to the standards set forth in the Contract Documents.
that the City may,at reasonable times,contact Subcontractor,after notice to Contractor,to
discuss,or obtain a written report of, Subcontractor's services,with Contractor entitled to be present during
any such discussions;provided that in no event, prior to any assignment of the Subcontract to the City,shall
Subcontractor take instructions directly from the City;
j. that Subcontractor promptly disclose to the City and Contractor any defect,omission, error
or deficiency in the Contract Documents or the Work about which it has knowledge no later than ten (10)
days following discovery of such defect,omission,error or deficiency;
k. that Subcontractor assign all warranties directly to the City,
that the Contract Documents provide a limitation of remedies and NO DAMAGES FOR
DELAY as delineated in Article 10 hereof;
m. that in the event of a change in the Work the Subcontractor's Claim for adjustments in the
subcontract price shall be limited exclusively to its actual costs for such changes, plus no more than the
overhead and profit feeslmarkups and bond costs to be established as part of the GMP Amendment.
n. Each subcontract shall require the Subcontractor to expressly agree that the foregoing
constitutes the sole and exclusive remedies for delays and changes in the Work and thus eliminate any other
remedies for claim for increase in the subcontract price,damages, losses or additional compensation.
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o. Each subcontract shall require that any claims by Subcontractor for delay or additional cost
must be submitted to Contractor within the time and in the manner in which the Contractor must submit
Claims to the City,and that failure to comply with the conditions for giving notice and submitting claims shall
result in the waiver of such claims in the same manner as provided for in the Contract Documents.
3.7.4. Contractor shall perform the Work with its own forces, in an amount not less than the percentage of
the Work specified in the Invitation to Bid Summary.
3.8. Plans and Working Drawings.
3.8.1. Contractor to Check Plans, Specifications and Data. Contractor shall verify all dimensions,
quantities and details shown on the plans, specifications or other data received from Consultant, and shall
notify Consultant of all errors, omissions and discrepancies found therein within three(3) calendar days of
discovery. Contractor shall not be allowed to take advantage of any error, omission or discrepancy, as full
instructions will be furnished by Consultant. Contractor shall not be liable for damages resulting from errors,
omissions or discrepancies in the Contract Documents unless Contractor recognized such error,omission or
discrepancy and failed to report it to Consultant, or unless Contractor should have recognized such error,
omission or discrepancy upon reasonable investigation.
�3.8.2. Supplementary Drawings.When,in the opinion of Consultant,it becomes necessary to explain the
Work to be done more fully,or to illustrate the Work further,or to show any changes which may be required,
supplementary drawings, with specifications pertaining thereto, will be prepared by Consultant. The
• supplementary drawings shall be binding upon Contractor and shall be considered as part of the Contract
Documents. Where such supplementary drawings require either less or more than the original quantities of
work,appropriate adjustments shall be made by Change Order. In case of disagreement between the written
and graphic portions of the Contract Documents,the written portion shall govern.
3.8.3. Shop Drawings.
3.8.4.1. Contractor shall submit Shop Drawings as required by the Technical Specifications. The
purpose of the Shop Drawings is to show the suitability, efficiency, technique of manufacture, installation
requirements, details of the item and evidence of its compliance or noncompliance with the Contract
Documents.
3.8.4.2. Within ten (10) calendar days after the Project Initiation Date specified in the Notice to
Proceed, Contractor shall submit to Consultant a complete list of preliminary data on items for which Shop
Drawings are to be submitted and shall identify the critical items. Submission of such documents is a
condition precedent to the issuance of a Notice to Proceed for construction. Approval of this list by Consultant
shall in no way relieve Contractor from submitting complete Shop Drawings and providing materials,
equipment, etc., fully in accordance with the Contract Documents. This procedure is required in order to
expedite final approval of Shop Drawings.
3.8.4.3. After the approval of the list of items required herein, Contractor shall promptly request
Shop Drawings from the various manufacturers,fabricators,and suppliers. Contractor shall include all shop
drawings and other submittals in its certification.
3.8.4.4. Contractor shall thoroughly review and check the Shop Drawings and each and every
copy shall show this approval thereon.
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3.8.4.5. If the Shop Drawings show or indicate departures from the Contract requirements,
Contractor shall make specific mention thereof in its letter of transmittal. Failure to point out such departures
shall not relieve Contractor from its responsibility to comply with the Contract Documents.
3.8.4.6. Consultant shall review and approve Shop Drawings within seven(7)calendar days from
the date received, unless said Drawings are rejected by Consultant for material reasons. Consultant's
approval of Shop Drawings will be general and shall 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 Contract Documents and not indicated on the Drawings. No work called for by Shop
Drawings shall be performed until the said Drawings have been approved by Consultant.Approval shall not
relieve Contractor from responsibility for errors or omissions of any sort on the Shop Drawings.
3.8.4.7. No approval will be given to partial submittals of Shop Drawings for items which
interconnect and/or are interdependent where necessary to properly evaluate the design. It is Contractor's
responsibility to assemble the Shop Drawings for all such interconnecting and/or interdependent items,check
them and then make one submittal to Consultant along with its comments as to compliance, noncompliance,
or features requiring special attention.
3.8.4.8. If catalog sheets or prints of manufacturers' standard drawings are submitted as Shop
Drawings,any additional information or changes on such drawings shall be typewritten or lettered in ink.
3.8.4.9. Contractor shall submit the number of copies required by Consultant. Resubmissions of
Shop Drawings shall be made in the same quantity until final approval is obtained.
3.8.4.10. Contractor shall keep one set of Shop Drawings marked with Consultant's approval at
the job site at all times.
3.8.4. Field Layout of the Work and Record Drawings. The entire responsibility for establishing and
maintaining line and grade in the field lies with Contractor.
3.8.5.1. Contractor shall maintain an accurate and precise record of the location and elevation of
all pipe lines,conduits, structures, maintenance access structures, handholes,fittings and the like and shall
prepare record or"as-built"drawings of the same which are sealed by a Professional Surveyor. Contractor
shall deliver these records in good order to Consultant as the Work is completed. The cost of all such field
layout and recording work is included in the prices bid for the appropriate items. All record drawings shall be
delivered to Consultant prior to Substantial Completion,in accordance with the Contract Documents.
3.8.5.2. Contractor shall maintain in a safe place at the Project Site one record copy of all
Drawings, Plans, Specifications, addenda, written amendments, Change Orders, Field Orders and written
interpretations and clarifications in good order and annotated to show all changes made during construction.
These record documents together with all approved samples and a counterpart of all approved Shop
Drawings shall be available at all times to Consultant for reference. Upon Final Completion of the Project
and prior to Final Payment,these record documents,samples and Shop Drawings shall be delivered to the
Contract Administrator.
3.8.5.3. Prior to,and as a condition precedent to Final Payment, Contractor shall submit to City,
Contractor's record drawings or as-built drawings acceptable to Consultant.
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3.8.5. Art in Public Places("AIPP")Coordination.Contractor shall coordinate the implementation of the
City's AIPP commissions and installations for the Project, if any, with all such coordination Work covered
within the Contract Price, provided, however, that the City shall separately fund the commissioning and
installations of all AIPP artworks.
3.8.6. City's Participation. THE CITY HAS NO OBLIGATION TO ASSIST, FACILITATE AND/OR
PERFORM IN ANY WAY THE CONTRACTOR'S OBLIGATIONS UNDER THE AGREEMENT OR OTHER
CONTRACT DOCUMENTS. THE CITY'S PARTICIPATION, FACILITATION AND/OR ASSISTANCE TO
THE CONTRACTOR SHALL BE AT ITS SOLE DISCRETION AND SHALL NOT, IN ANY WAY, BE
CONSTRUED, INTERPRETED AND/OR CONSTITUTE AN ASSUMPTION BY THE CITY OF
CONTRACTOR'S OBLIGATIONS, A WAIVER OF CONTRACTOR'S OBLIGATIONS ANDIOR EXCUSE
ANY BREACH BY CONTRACTOR OF ITS OBLIGATIONS UNDER THE CONTRACT DOCUMENTS. THE
PARTICIPATION IN THE PERFORMANCE OF ANY OF CONTRACTOR'S OBLIGATIONS SHALL NOT
PRECLUDE THE CITY FROM DECLARING CONTRACTOR IN DEFAULT FOR CONTRACTOR'S
FAILURE TO PERFORM SUCH OBLIGATION,NOR SHALL IT LIMIT,IN ANY WAY,THE CITY'S RIGHTS
AND REMEDIES IN CONNECTION THEREWITH. THE CONTRACTOR EXPRESSLY ACKNOWLEDGES
AND AGREES NOT TO RAISE OR ASSERT AS DEFENSE TO ANY CLAIM, ACTION, SUIT ANDIOR
OTHER PROCEEDING OF A SIMILAR NATURE,THE CITY'S PARTICIPATION,ASSISTANCE AND/OR
FACILITATION IN THE PERFORMANCE OF CONTRACTOR'S OBLIGATIONS. INCLUDING,WITHOUT
LIMITATION,ASSISTING WITH OBTAINING PERMITS OR WITH COORDINATION WITH UTILITIES,OR
OTHER MATTERS RELATED TO THE PROJECT. IN THE EVENT OF ANY CONFLICT BETWEEN THIS
SECTION ANDIOR ANY OTHER PROVISION OF THIS AGREEMENT OR OTHER CONTRACT
DOCUMENTS,THIS SECTION SHALL GOVERN.
3.8.7. City's Information. Except for any tests or studies that the City provides as part of the ITB, any
information provided by the City to the Contractor relating to the Project and/or other conditions affecting
'the Project Site, is provided only for the convenience of the Contractor and does not relieve the Contractor
of the due diligence necessary to independently verify local conditions and Site Conditions.The City makes
no representation or warranty as to, and assumes no responsibility whatsoever with respect to, the
sufficiency, completeness or accuracy of any such test, studies or other information and makes no
guarantee, either express or implied, that the conditions indicated in such information or independently
found by the Contractor as a result of any examination, exploration or testing, are representative of those
existing throughout the performance of the Work or the Project Site, and there is no guarantee against
unanticipated or undisclosed conditions.
ARTICLE 4. CONTRACT PRICE.
4.1. If the Invitation to Bid Summary or any other Contract Documents contemplate unit pricing for the
Project or any portion thereof, City shall pay to Contractor the amounts determined for the total number of
each of the units of work completed at the unit price stated in the schedule of prices bid.The number of units
contained in this schedule is an estimate only,and final payment shall be made for the actual number of units
incorporated in or made necessary by the Work covered by the Contract Documents. Payment shall be
made at the unit prices applicable to each integral part of the Work.These prices shall be full compensation
for all costs, including overhead and profit, associated with completion of all the Work in full conformity with
the requirements as stated or shown, or both, in the Contract Documents.The cost of any item of work not
covered by a definite Contract unit price shall be included in the Contract unit price or lump sum price to
which the item is most applicable.
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4.2. If the Invitation to Bid Summary or any other Contract Documents contemplate lump sum pricing for
the Project,the Contract Price shall be the amount specified in the Contract, consisting of a base bid, and
a separate line item for the Owner's Contingency(to be used solely by the City at its sole discretion for the
purposes described in the Contract Documents).The Contract Price,exclusive of the Owner's Contingency,
shall be full compensation for all labor, materials, equipment, costs, and expenses, including overhead and
profit, associated with completion of all the Work accordance with the requirements of the Contract
Documents, including all Work reasonably inferable therefrom, even if such item of Work is not specifically
or expressly identified as part of a line item in the ITB Price Form.
4.3. To the extent the Project includes both unit prices and a lump sum price, then all sections of this
Article 4 shall apply to the item of Work in question,as applicable.
4.4. No Compensation Prior to Notice to Proceed. Prior to the City's issuance of any Notice to
Proceed, Contractor shall not incur any cost to be reimbursed as part of the Project,except as the Contract
Administrator may authorize in writing.
4.5. Owner's Contingency. The Owner's Contingency shall be an amount, determined by the City,
which will be available to the City to pay for Project costs which are expressly chargeable to the City or
determined to be the City's responsibility under the Contract Documents, including, as it relates to the
Contractor,the following increased costs of the Project incurred by Contractor:
a. Express written changes in the Work made in the discretion of the City after issuance of a
Change Order or Construction Change Directive relating thereto. The decision to make such changes, and
to incur the costs that arise there from,shall be in the sole discretion of the City. No costs may be charged
to the Owner's Contingency under this subsection without express approval of City.
b. Changes to the Work if ordered by agencies having jurisdiction, provided such Work directly
results from City's issuance of a Notice to Proceed prior to obtaining full permits thereon;
c. In the event of Excusable Delay, reasonable acceleration costs to meet milestones, if approved
by the City at its sole and absolute discretion;
d. Differing site conditions pursuant to the Contract Documents;
e. Post-hurricane or storm-related Construction Change Directives(to address matters that are in
addition to,or not covered by, the Contractor's City-approved Hurricane Preparedness Plan required by the
Contract Documents);
f. Increased Costs of the Work resulting from other actions of the City deemed to be City's
responsibility and/or compensable under the Contract Documents.
Unless Contractor secures City's written agreement that such costs are City's responsibility, documentation
of responsibility for such costs shall be submitted with the Contractor's Claim. When Contractor has reason
to anticipate that such costs may be incurred, it shall be the Contractor's responsibility, when feasible, to
provide the City with sufficient advance notice, so as to provide the City with a reasonable opportunity to
avoid such costs. Such costs shall be deemed the City's responsibility if City subsequently agrees in writing
to grant the Claim and accept such responsibility, or if the Claim is granted and responsibility assigned to
City pursuant to the dispute resolution process under the Contract Documents and all reviews thereof are
exhausted or waived by City. The Contractor has no right or entitlement whatsoever to the Owner's
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Contingency,and use of such funds are subject to the City's prior written approval and issuance of a Change
Order or Construction Change Directive by the City at its sole and absolute discretion. Any unused City
Contingency remaining at the completion of the Project shall accrue solely to the City.
ARTICLE 5. APPLICATION FOR PAYMENT.
5.1. Applications for Payment for the Work performed by Contractor shall be made monthly based upon
the percent completion of the Work for each particular month and in accordance with the Contract
Documents. The percent completion shall be based upon the updated and City-approved Project Schedule
as required by the Contract Documents Contractor's application shall show a complete breakdown of the
Project components,the quantities completed and the amount due,together with such supporting evidence
as may be required by Consultant or City. Contractor shall include,with each Application for Payment, an
updated progress schedule as required by the Contract Documents and a release of liens and consent of
surety relative to the Work which is the subject of the Application. Following submission of acceptable
supporting documentation along with each Application for Payment, City shall make payment to Contractor
after approval by Consultant of an Application for Payment, less retainage as herein provided for and/or
withholding of any other amounts pursuant to the Contract Documents, within twenty-five (25) days in
accordance with Section 218.735 of the Florida Statutes.
5.2. The City shall withhold from each progress payment made to Contractor retainage in the amount of
ten percent(10%)of each such payment until fifty percent(50%)of the Work has been completed.The Work
shall be considered 50%complete at the point at which the City has expended 50%of the approved Cost of
• the Work together with all costs associated with existing change orders or other additions or modifications to
the construction services provided for in the Contract Documents.
Thereafter, the Contract Administrator shall reduce to five percent (5%) the amount of retainage withheld
from each subsequent progress payment made to the Contractor,until Substantial Completion.Any reduction
in retainage shall be in accordance with Section 255.078 of the Florida Statutes, as may be amended, and
shall otherwise be at the sole discretion of the Contract Administrator,after considering any recommendation
of Consultant with respect thereto. Contractor shall have no entitlement to a release of, or reduction in,
retainage,except as may be required herein or by Florida law. Any interest earned on retainage shall accrue
to the benefit of City. All requests for retainage reduction shall be in writing in a stand-alone document,
separate from monthly applications for payment.
5.3. Notwithstanding any provision hereof to the contrary, the City may withhold payments to the
Contractor in the following circumstances:
a. correction or re-execution of Work which is defective or has not been performed in accordance
with the Contract Documents and which the Contractor has failed to correct in accordance with the terms
athe Contract Documents;
b. past due payments owed to Subcontractors for which City has not been provided an
appropriate release of lien/claim(whether or not the Work in question is the subject of any dispute);
c. the City's remedies arising from any failure to perform the Contract Documents' requirements
or uncured Default of this Contract by the Contractor;
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d. damage to another contractor or third-party(including, without limitation, the property of any
resident or business in the area surrounding the Project Site)which has not been remedied or,damage to
City property which has not been remedied;
e. liquidated damages;
f. failure of Contractor to provide a Recovery Schedule in accordance with the Contract
Documents;
g. failure of Contractor to provide any and all material documents required by the Contract
Documents including, without limitation, the failure to maintain as-built drawings in a current and
acceptable state;and
h. pending or imminent Claims of the City or others including, without limitation, Claims which
are subject to Contractor's indemnity obligation under the Contract Documents, for which the Contractor
has not posted bonds or other additional security reasonably satisfactory to the City.
Except as otherwise specifically provided in the Contract Documents, in no event shall any interest be
due and payable by the City to the Contractor or any other party on any of the sums retained by the City
pursuant to any of the terms or provisions of any of the Contract Documents.
5.4. No acceptance. No progress payment made by the City to Contractor shall constitute acceptance
of any portion of the Work,any goods or materials provided under this Agreement or any portion thereof. No
partial or entire use or occupancy of the Project by the City shall constitute an acceptance of any portion of
the Work or the complete Project which is not in accordance with the Contract Documents.
5.5. Final Bill of Materials. Upon request by the City,Contractor shall be required to submit to City and
Consultant a final bill of materials with unit costs for each bid item for supply of materials in place. This shall
be an itemized list of all materials with a unit cost for each material and the total shall agree with unit costs
established for each Contract item. A Final Certificate for Payment cannot be issued by Consultant until
Contractor submits the final bill of materials and Consultant verifies the accuracy of the units of Work.
5.6. Payment by City for Tests. Except when otherwise 'specified in the Contract Documents, the
expense of all tests requested by Consultant shall be borne by City and performed by a testing firm chosen
by the City. For road construction projects the procedure for making tests required by Consultant will be in
conformance with the most recent edition of the State of Florida, Department of Transportation Standard
Specifications for Road and Bridge Construction. The cost of any required test which Contractor fails shall
be paid for by Contractor.
5.7. Form of Application: Projected Payment Schedule.The Contractor shall make each Application
for Payment on AIA Form G702 or other form approved by the City, which incorporates the budget and the
Schedule of Values. For each line item, the Contractor shall state the approved cost, the cost to date, and
the,projected total cost, and retainage held (if any), shall state that the projected total cost shall not exceed
the approved cost, as adjusted by Change Order. Each Application for Payment shall also state the actual
costs incurred by the Contractor for the payment period covered by such Application for Payment.
ARTICLE 6. PROJECT SCHEDULE AND CONTRACT TIME.
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6.1. Time for Completion. Time is of the essence throughout this Contract.Contractor shall perform the
Work so as to achieve Substantial Completion within the number of days specified for Substantial Completion
in the Invitation to Bid Summary,and the Project shall be completed and ready for final payment as set forth
herein within the number of days specified for Final Completion in the Invitation to Bid Summary,with such
Final Completion date calculated from the date certified by Consultant as the date of Substantial Completion.
6.2. Project Schedule; Preliminary Matters. As a condition of issuance of a Notice to Proceed for the
construction of the Work(typically, NTP2),Contractor shall submit to Consultant for Consultant's review and
acceptance:
•
6.2.1. A project"Base Line"schedule,one(1)copy on a CD and One(1) hard copy(activities arranged in
"waterfall"), in the indicated form for Final review and approval, in accordance with the Project Scheduling
Format required in the Invitation to Bid Summary.
(CPM shall be interpreted to be generally as outlined in the Association of General Contractors (AGC)
publication, "The Use of CPM in Construction.")
Contractor shall provide a preliminary man loaded, logic based "Base Line" Project schedule using "Early
Start" and "Early Finish" dates for each activity. The Contractor shall include, in addition to normal work
activity input, input that encompasses all submittal approvals, delivery durations for.important materials
and/or equipment,and Logic relationships of activities including physical and site restraints.
The preliminary Base Line project schedule when submitted shall have attached a run of the programs
generated error report that states no errors and be acceptable to Consultant and City.
Monthly, Contractor shall submit with each Application for Payment an update of the Project Schedule with
an error report stating no errors (that does not revise the base line schedule), showing the progress for the
month("Progress Schedule").CONTRACTOR SHALL SUBMIT ONE HARD COPY AND ONE ELECTRONIC
COPY(including a native version and a pdf). In addition to the Progress Schedule Contractor shall include a
narrative report of the months'progress,an explanation of any delays and or additions/deletions to activities.
City's acceptance of a Progress Schedule for purposes of City's approval of an Application for Payment shall
not constitute or be construed as City's approval of the Progress Schedule itself,or as approval of any change
to the Project Schedule. Any changes to the Project Schedule, if agreed to,shall be memorialized in a duly
executed Change Order.
It is strongly recommended that Contractor or the professional who performs scheduling have a vast
knowledge in the use of the required scheduling software specified in the Invitation to Bid Summary to
develop and update the project schedule.
CONTRACTOR agrees to attend weekly progress meetings and provide an two (2) week look ahead
schedule for review and discussion and monthly be prepared to discuss any:
1) Proposed changes to the Base Line schedule logic;
2) Explain and provide a narrative for reasons why logic changes should be made;
3) Update to individual subcontractor activities;and
4) Integration of changes into the schedule.
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The Project Schedule shall be the basis of the Contractor's Work and shall be complied with in all respects.
6.2.2. A preliminary schedule of Shop Drawing submissions;and
6.2.3. In a lump sum contract or in.a contract which includes lump sum bid items of Work, a preliminary
schedule of values for all of the Work which may include quantities and prices of items aggregating the
Contract Price and will subdivide the Work into component parts in sufficient detail to serve as the basis for
progress payments during construction. Such prices will include an appropriate amount of overhead and
profit applicable to each item of work which will be confirmed in writing by Contractor at the time of
submission. If requested by the City, Contractor shall provide additional breakdowns as to any line item,to
show labor,equipment, materials and overhead and profit.
6.2.4. After award but prior to the submission of the progress schedule,Consultant,Contract Administrator
and Contractor shall meet with all utility owners and secure from them a schedule of utility relocation,
provided,however,that by facilitating Contractor's efforts to coordinate with such utilities,City is not assuming
the obligation to coordinate any necessary relocations and Contractor shall be solely responsible for such
coordination.
6.2.5. At a time specified by Consultant but before Contractor starts the work at the Project Site, a
conference attended by Contractor,Consultant and others as deemed appropriate by Contract Administrator
will be held to discuss the schedules to discuss procedures for handling Shop Drawings and other submittals
and for processing Applications for Payment,and to establish a working understanding among the parties as
• to the Work.
6.2.6. Within five (5) days from the Project Initiation Date set forth in the Notice to Proceed, a pre-
construction meeting attended by Contractor, Consultant and others, as appropriate, will be held to finalize
the schedules submitted. Within ten(10)days after the Project Initiation Date set forth in Notice to Proceed,
the Contractor shall revise the original schedule submittal to address all review comments from the CPM
review conference and resubmit for Consultant review. The finalized progress schedule will be accepted by
Consultant only as providing an orderly progression of the Work to completion within the Contract Time, but
such acceptance shall not constitute acceptance by City or Consultant of the means or methods of
construction or of the sequencing or scheduling of the Work, and such acceptance will neither impose on
Consultant or City responsibility for the progress or scheduling of the Work nor relieve Contractor from full ,
responsibility therefore. The finalized schedule of Shop Drawing submissions must be acceptable to
Consultant as providing a workable arrangement for processing the submissions. The finalized schedule of
values must be acceptable to Consultant as to form and substance.
6.3. Recovery Schedule.
6.3.1. If Contractor's Work, or any portion of the Work, becomes more than (30) days behind
schedule, if the Work on any critical path item or activity delineated in the Project Schedule is delayed for a
period which exceeds 5% of the days remaining until a completion deadline for an item in the Project
Schedule,or if the reasonably appears that the Contractor will be unable to meet the deadlines of the Project
Schedule,the City may notify Contractor of same, and in such case,the Contractor shall submit a proposed
recovery plan to regain lost schedule progress and to achieve any Project milestones, Substantial
Completion,and Final Completion in accordance with the Contract Documents("Recovery Schedule"), after
taking into account Excusable Delays (as hereinafter defined) and permitted extensions of the Project for
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review and acceptance within seven(7)days following notification from the City,so as to ensure Contractor
makes up lost time.
6.3.2. City shall notify Contractor within five (5) business days after receipt of each Recovery
Schedule, whether the Recovery Schedule is deemed accepted or rejected. Within five (5) business days
after City's rejection of any Recovery Schedule, Contractor will resubmit a revised Recovery Schedule
incorporating City's comments. If the City accepts Contractor's Recovery Schedule, Contractor shall,within
five(5)business days after City's acceptance, incorporate and fully include the Recovery Schedule into the
Project Schedule and deliver same to City.
6.3.3. If the Contractor fails to provide an acceptable Recovery Schedule, as determined by City
in its sole discretion, that demonstrates Contractor's ability to timely follow the Project Schedule, the City
may,without prejudice to any other rights and remedies available to the City hereunder or otherwise,declare
an Event of Default or order the Contractor to employ such extraordinary measures, including acceleration
of the Work,and other measures, including substantially increasing manpower and/or necessary equipment,
as may be necessary to bring the Work into conformity with the Project Schedule.
6.4. Substantial Completion. As a condition of Substantial Completion,all of the following must occur:
6.4.1. All Work affecting the operability of the Project or safety has been completed in accordance
with the Contract Documents;
• 6.4.2. If applicable,all pre-commissioning activities,including alignment,balancing,lubrication and
first-fill, have been completed;
6.4.3. The Work may be operated within manufacturers' recommended limits (with all installation
instructions, operations and maintenance manuals or instructions for equipment furnished by Contractor,
catalogs, product data sheets for all materials furnished by Contractor and similar information provided),in
compliance with Applicable Laws,and without damage to the Work or to the Project;
6.4.4. Contractor has corrected all defects,deficiencies and/or discrepancies to the entire Work as
identified by the City or the Consultant, and the Consultant confirms such corrections have been made in
writing;
6.4.5. The most recent updated set of "as-built" drawings reflecting the progress of the Work
through Substantial Completion(in native file format,such as autoCAD);
6.4.6. When Contractor believes it has achieved Substantial Completion, Contractor shall request
an inspection by the City and the Consultant, and shall provide the City with evidence supporting its
assessment of Substantial Completion, including any specific documents or information requested by the
City to assist in its evaluation thereof. Contractor shall,prior to said inspection,develop its preliminary Punch
List for input and comment by the City and the Consultant. Once the preliminary Punch List is submitted to
the City, the City and its representatives shall then schedule a walk-through of the Project with Contractor
and the.Consultant. Following the walk-through, Contractor shall develop and provide City with the list of all
remaining items of Work to be completed or corrected,and which incorporates items and comments identified
or provided by the City and Consultant comments and is certified for completeness and accuracy by the
Consultant ("Substantial Completion Punch List"), provided, however, that failure to include any items on
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such Substantial Completion Punch List does not alter the responsibility of the Contractor to complete all
Work in accordance with the Contract Documents;and
6.4.7. Any and all appurtenances, utilities, transportation arteries and any other items required
under the Contract Documents and necessary to serve that portion of the Work are sufficiently completed, a
temporary certificate of completion or Certificate of Occupancy,as applicable,is issued for the Work for which
a Certificate of Substantial Completion is being sought and/or all conditions or requirements of authorities
having jurisdiction are complied with,to permit the City to utilize and occupy that-portion for its intended use
in accordance with the Contract Documents without material interference from any incomplete or improperly
completed items of Work;
6.4.8. With respect to any Project for which a right-of-way permit is required from the City's Public
Works Department or which includes a final lift of asphalt as part of the Work, in no event shall Substantial
Completion occur prior to the final lift of asphalt and acceptance thereof by the agencies having jurisdiction
(including,without limitation,the City's Public Works Department).
6.5. Certificate of Substantial Completion. Any determination by the Consultant and the Contractor of
Substantial Completion shall not be binding on the City, and the ultimate determination of Substantial
Completion shall rest with the City and shall be evidenced by the City's executing and returning to the
Contractor its Certificate of Substantial Completion(or Partial Substantial Completion,as applicable).
6.5.1. When the City,on the basis of an inspection,determines that the Work or designated portion thereof
is substantially complete, and when the Contractor has complied with all other conditions precedent to
Substantial Completion provided for in the other Contract Documents,the City will then prepare a Certificate
of Substantial Completion which shall establish the Substantial' Completion Date, shall state the
responsibilities of Contractor, if any, for security, maintenance, heat, utilities, damage to the Work, and
insurance,and shall fix the time within which the Contractor shall complete the items listed in the Substantial
Completion Punch List. If the City issues a Certificate of Substantial Completion on the basis of partial
completion of the Project,or upon the basis of a partial or temporary certificate of occupancy or certificate of
completion, as applicable,City may include such additional conditions,as it deems appropriate to protect its
interests pending substantial completion of the entire Project or issuance of a permanent certificate of
occupancy or certificate of completion,as applicable.
6.5.2. The City shall not unreasonably withhold or condition acceptance and execution of a Certificate of
Substantial Completion(or a Notice of Partial Substantial Completion); provided, however,the Project shall
not be deemed Substantially Complete and the City shall not execute a Certificate of Substantial Completion
until all of the criteria for achieving Substantial Completion as identified in the Contract Documents have been
satisfied,and(2)in the case of a portion of the Project,the conditions set forth this Article 6 relating to Partial
Substantial Completion shall have been satisfied.
6.6. Partial Substantial Completion. Partial Substantial Completion of the Work shall occur when the
City determines that a portion of the Work,as defined in the Contract Documents and/or otherwise by logical
boundaries, is Substantially Complete in accordance with the Contract Documents. The City may(but shall
not be obligated to)agree that a portion or component of the Work,acceptable to the City in its sole discretion,
may be certified as Substantially Complete provided that:
6.6.1. The requirements provided in this Article 6 for issuance of a Certificate of Substantial Completion
are complied with for the portion of the Work for which a Notice of Partial Substantial Completion is being
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sought;
6.6.2. Such portion and any and all appurtenances, utilities, transportation arteries and any other items
required under the Contract Documents and necessary to serve that portion of the Work are sufficiently
completed,a temporary certificate of completion or Certificate of Occupancy,as applicable, is issued for the
portion of the Work for which a Certificate of Partial Substantial Completion is being sought and/or all
conditions or requirements of authorities having jurisdiction are complied with,to permit the City to utilize and
occupy that portion for its intended use in accordance with the Contract Documents without material
interference from any incomplete or improperly completed items of Work;
6.6.3. The City is fully able to use and occupy the portion of the Work for the purposes intended and the
Contractor separates the portion of the Work which is Substantially Complete from non-complete areas of
the Project in order to prevent noise, dust and other construction disturbances which would materially
interfere with the use of such portion for its intended use in accordance with the Contract Documents and to
assure the safety of those entering,exiting and occupying the Substantially Completed portion of the Work;
6.6.4. Partial Substantial Completion shall not constitute Final Completion of the Work or Substantial
Completion of the Project, nor shall it relieve the Contractor of any responsibility for the correction of Work
(whether or not included in portion .of Work Substantially Complete) or for the performance of Work not
complete at the time of Partial Substantial Completion.
6.7. Liquidated Damages.
6.7.1. Upon failure of Contractor to achieve Substantial Completion within the time period specified in the
Invitation to Bid Summary for Substantial Completion,as such date may be extended pursuant to the terms
of the Contract Documents, Contractor shall pay to City the sum specified in the Invitation to Bid Summary
for"Liquidated Damages"for each calendar day after the time specified in the Invitation to Bid Summary for
Substantial Completion, plus any approved time extensions,for Substantial Completion. Partial Substantial
Completion shall not relieve Contractor of any responsibility for Liquidated Damages for failure to timely
achieve Substantial Completion.
6.7.2. After Substantial Completion is achieved, should Contractor fail to complete the remaining Work
within the time specified in the Invitation to Bid Summary for Final Completion,plus approved time extensions
thereof, Contractor shall pay to City the sum set forth in the Invitation to Bid Summary as "Liquidated
Damages" for each calendar day after the time specified in the Invitation to Bid Summary for Final
Completion, plus any approved extensions.
6.7.3. Contractor agrees that the Liquidated Damages set forth herein are not penalties and have been set
based on an evaluation by City of damages to City and the public caused by untimely performance. Such
damages may include loss of revenues to the City, and additional costs of administering this Agreement,
including Project staff, legal, accounting, consultants and overhead and other administrative costs.
Contractor acknowledges that the amounts established for Liquidated Damages are fair and commercially
reasonable. Contractor and City have agreed to the Liquidated Damages in order to fix Contractor's costs
and to avoid later disputes over which items are properly chargeable to Contractor as a consequence of
Contractor's delays.
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The above-stated liquidated damages shall apply separately to each portion of the Project for which a time
for completion is given. City is authorized to deduct liquidated damages from monies due to Contractor for
the Work under this Contract or as much thereof as City may,in its sole discretion,deem just and reasonable.
Liquidated Damages shall apply,whether or not the City terminates Contractor for cause and whether or not
Surety completes the Project after a Default by Contractor.
Liquidated Damages shall apply solely to claims arising from delay in meeting any milestone for which the
right to assess Liquidated Damages is specified, including, without limitation, Substantial Completion, and
Final Completion,and shall be the City's sole remedy for delay,and are not intended to,and do not,liquidate
Contractor's liability under any other provision of the Contractor Documents for other events not specifically
referenced in this Article 6. Liquidated Damages shall not liquidate Contractor's liability under the
indemnification provisions of this Agreement.
Contractor, in addition to reimbursing City for Liquidated Damages or other damages for untimely
performance as provided herein, shall reimburse City for all costs incurred by City to repair, restore, or
complete the Work, as may be provided by the Contract Documents, including, without limitation, any
additional design fees that may be due to the Consultant related thereto. All such costs shall be deducted
from the monies otherwise due Contractor for performance of Work under this Agreement by means of
unilateral credit or deductive Change Orders issued by City.
In the event a court of competent jurisdiction determines that any Liquidated Damages amount herein is
unenforceable notwithstanding Contractor's agreement herein that such amounts are fair and reasonable,
Contractor shall not be relieved of its obligations to the City for the actual damages resulting from the failure
to timely achieve Substantial Completion or Final Completion in accordance with the requirements of the
Contract Documents. Without limiting the foregoing,City and Contractor covenant not to bring any action in
a court of competent jurisdiction that would ask the court to rule that the Liquidated Damages amounts are
not fair and reasonable.
6.8. Beneficial Occupancy. Beneficial Occupancy shall occur when the City determines that a portion
of the Work may be occupied prior to Substantial Completion. City may take Beneficial Occupancy in
accordance with the provisions of the Contract Documents.
6.8.1. Prior to the anticipated date of Beneficial Occupancy, Contractor shall separate the portion of the
Work to be occupied from non-complete areas of the Project in order to prevent noise, dust and other
construction disturbances which would materially interfere with the use of such portion for its intended use in '
accordance with the Contract Documents and to assure the safety of those entering, exiting and occupying
the completed portion to be occupied.
6.8.2. Beneficial Occupancy shall not constitute Substantial Completion or Final Completion of the Work,
nor shall it relieve the Contractor of any responsibility for the correction of Work(whether or not included in
the portion of Work to be occupied) or for the performance of Work not complete at the time of Beneficial
Occupancy.
6.8.3. After Beneficial Occupancy and as conditions of Substantial Completion,the Contractor shall deliver
to the City complete as-built drawings, all approved Shop Drawings, maintenance manuals, pamphlets,
charts, parts lists and specified spare parts,operating instructions and other necessary documents required
for all installed materials, equipment, or machinery, all applicable warranties and guarantees, and the
appropriate certificate of occupancy or certificate of completion that are related to the portion of the Work
being occupied.
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6.8.4. Contractor's insurance on the unoccupied or unused portion or portions of the Project Site shall not
be canceled or lapsed on account of such Beneficial Occupancy.
6.8.5. Contractor shall be responsible to maintain all utility services to areas occupied by the City until Final
Completion.
6.9. Final Completion. Final Completion of the Project shall be deemed to have occurred if all the
following have occurred:
6.9.1. Substantial Completion of the entire Project has occurred;
6.9.2. The Work can be used and operated in accordance with Applicable Laws bearing on the performance
of the Work and applicable permits;
6.9.3. All spare parts, special tools and attic stock purchased by Contractor as part of Vendor supplies
shall have been delivered to City and clear of all Liens;
6.9.4. All items on the Substantial Completion Punch List shall have been completed by Contractor to City's
satisfaction and all final inspections have been performed;
6.9.5. Contractor has satisfied the additional conditions prescribed by the City in conjunction with a
Certificate of Substantial Completion issued on the basis of partial completion of the Project, or a partial or
temporary Certificate of Occupancy or Certificate of Completion,as applicable;
6.9.6. Contractor has delivered evidence to the City that all permits that are Contractor's responsibilities
as specified under the Contract Documents have been satisfied and closed, and that a Certificate of
Completion or Certificate of Occupancy(as applicable)has been issued by the authority having jurisdiction,
and the Project or designated portion thereof is sufficiently complete in accordance with the Contract
Documents and can be used for its intended purpose for uninterrupted operation,including,without limitation,
acceptance of completed as-builts, if required by the agency having jurisdiction.
6.9.7. Contractor shall have provided to City final releases and complete and unconditional waivers of liens
for all Work performed by Contractor and each Subcontractor or Suppliers, and a Consent of Surety to Final
Payment;
6.9.8. Contractor shall have delivered to the City a certification identifying all outstanding Claims(exclusive
of any Liens or other such encumbrances which must have been discharged) of Contractor (and of its
Subcontractors, Suppliers and any other party against Contractor) with written documentation reasonably
sufficient to support and/or substantiate such Claims;
6.9.9. Contractor shall have delivered to the City a written assignment of all warranties or guaranties which
Contractor received from Subcontractors or Suppliers to the extent Contractor is obligated to do so;
6.9.10. Contractor shall have delivered to City a complete set of as-built documents and Project Records
prepared in accordance with the Contract Documents;
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6.9.11. Contractor has delivered to City all other submittals required by the Contract Documents, including
all installation instructions,operations and maintenance manuals or instructions for equipment furnished by
Contractor,catalogs, product data sheets for all materials furnished by Contractor and similar information;
6.9.12. All rubbish and debris have been removed from the Project Site;and
6.9.13. All Construction aids, equipment and materials have been removed from the Project Site.
6.9.14. Contractor has delivered to the City all executed warranties and guarantees required by the Contract
Documents, all of which shall be in the name of the City and run to the benefit of the City;
6.9.15. If applicable, certificates of insurance indicating that any insurance required of the Contractor or
Subcontractors by the Contract Documents shall remain in full force and effect for the required period of time;
6.9.16. Any other documentation establishing payment or satisfaction of obligations, including receipts,
releases and final waivers of lien from the Contractor and all Subcontractors,to the extent and in such form
as may be reasonably required by the City;
6.9.17. Final Completion is a condition precedent to City's final payment to Contractor and issuance of the
Final Certificate for Payment. Final payment shall be made only after the City Manager or his designee has
reviewed a written evaluation of the performance of Contractor prepared by the Contract Administrator,and
approved the final payment.
6.9.18. Waive r of Claims. The release by the City and acceptance of the final payment by Contractor
shall operate as and shall be a release to the City from all present and future Claims or liabilities, of
whatever kind or nature, arising under, relating to or in connection with this Contract for anything done
or furnished or relating to the Work or the Project, or from any act or omission of the City relating to or
connected with the Contract Documents, the Work or the Project, except those Claims or liabilities, if
any, for which the Contractor has provided the City with written notice pursuant to and in strict
compliance with the "Claims" and notice requirements set forth in the Contract Documents, and
containing a detailed reservation of rights that identifies the precise nature of the dispute, all facts in
support of Contractor's Claim,the particular scope of Work giving rise to the Claim,and the maximum amount
and/or time sought in connection with the Claim.
ARTICLE 7. INSPECTION OF WORK;CORRECTION OF
NON-CONFORMING OR DEFECTIVE WORK.
7.1. Consultant, City (and its authorized designees), and representatives of any regulatory agencies
having jurisdiction over the Project, shall at all times have access to the Work and the Project Site, and
Contractor shall provide proper facilities for such access and for inspecting,measuring and testing.Whenever
requested, Contractor shall give the City and any inspectors or representatives appointed by the City free
access to its Work during normal working hours either at the Project Site or its shops,factories,or places of
business of Contractor and its Subcontractors and suppliers for properly inspecting materials,equipment and
Work,and shall furnish them with full information as to the progress of the Work in its various parts.
7.2. Should the Contract Documents, Consultant's instructions, any laws, ordinances, or any public
authority require any of the Work to be specially tested or approved, Contractor shall give Consultant timely
notice of readiness of the Work for testing. If the testing or approval is to be made by an authority other than
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City, timely notice shall be given of the date fixed for such testing. Testing shall be made promptly, and,
where practicable, at the source of supply. If any of the Work should be covered up without approval or
consent of Consultant,it must,if required by Consultant,be uncovered for examination and properly restored
at Contractor's expense.
7.3. Reexamination of any of the Work may be ordered by Consultant with prior written approval by the
Contract Administrator,and if so ordered,the Work must be uncovered by Contractor. If such Work is found
to be in accordance with the Contract Documents,City shall pay the cost of reexamination and replacement
by means of a Change Order. If such Work is not in accordance with the Contract Documents, Contractor
shall pay such cost.
7.4. Inspectors shall have no authority to permit deviations from,or to relax any of the provisions of,the
Contract Documents or to delay the Contract by failure to inspect the materials and work with reasonable
promptness without the written permission or instruction of Consultant.
7.5. The payment of any compensation, whatever may be its character or form, or the giving of any
gratuity or the granting of any favor by Contractor to any inspector,directly or indirectly,,is strictly prohibited,
and any such act on the part of Contractor will constitute a breach of this Contract.
7.6. The Contractor shall'coordinate all technical inspection and testing provided by professionals
designated by the City,the Consultant,permitting authorities,and others.The Contractor shall also schedule
the services of independent testing laboratories and provide the necessary testing of materials to ensure
conformance to the Contract Documents and provide a copy of all inspection and testing reports to the City
on the day of inspection or test.The Contractor shall provide reasonable prior notice to appropriate inspectors
before the Work is covered up, but in no event less than 24'hours before the Work is covered up.All costs
for uncovering Work not inspected and any reconstruction due to lack of reasonable prior notice shall be
borne by Contractor at its sole cost and expense. Any time billed by inspectors for inspection where the
Work is not ready to be inspected shall be at Contractor's sole cost and expense. If any members of the
Project team are to observe said inspections,tests or approvals required by the Contract Documents, they
shall be notified in writing by the Contractor of the dates and times of the inspections,tests or other approvals.
The Contractor shall schedule,direct and/or review the services of or the reports and/or findings of surveyors,
environmental consultants and testing and inspection agents engaged-by the City. All Materials and
Equipment furnished by Contractor and Work performed by Contractor shall at all times be subject to
inspection and testing by City or inspectors or representatives appointed by City. If any of the Work should
be covered up without approval or consent of City's Project Coordinator, or without necessary test and
inspection, Contractor shall, if required by City's Project Coordinator or by public authorities, uncover such
Work for examination and testing,and shall re-cover same at Contractor's expense.
7.7. Defective or Non-Conforming Work.
7.7.1. Consultant and City shall have the authority to reject or disapprove work which either Consultant or
City find to be defective. If required by Consultant or City,Contractor shall promptly either correct all defective
work or remove such defective work and replace it with non-defective work. Contractor shall bear all direct,
indirect and consequential costs of such removal or corrections including cost of testing laboratories and
personnel.
7.7.2. Should Contractor fail or refuse to remove or correct any defective work or to make any necessary
repairs in accordance with the requirements of the Contract Documents within the time indicated in writing
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by Consultant,City shall have the authority to cause the defective work to be removed or corrected,or make
such repairs as may be necessary at Contractor's expense. Any expense incurred by City in making such
removals, corrections or repairs, shall be paid for out of any monies due or which may become due to
Contractor,or may be charged against the Performance Bond. In the event of failure of Contractor to make
all necessary repairs promptly and fully, City may declare Contractor in default.
7.7.3. If,within one(1)year after the date of Substantial Completion or such longer period of time as may
be prescribed by the terms of any applicable special warranty required by the Contract Documents,or by any
specific provision of the Contract Documents,any of the Work is found to be defective or not in accordance
with the Contract Documents,Contractor,after receipt of written notice from City,shall promptly correct such
defective or nonconforming Work within the time specified by City without cost to City, to do so. Nothing
contained herein shall be construed to establish a period of limitation with respect to any other obligation
which Contractor might have under the Contract Documents including but not limited to, Contractor's
warranty obligations hereof and any claim regarding latent defects.
7.7.4. Failure to reject any defective work or material shall not in any way prevent later rejection when such
defect is discovered,or obligate City to final acceptance.
7.8. Cleaning Up;City's Right to Clean Up. Contractor shall at all times keep the premises free from
accumulation of waste materials or rubbish caused by its operations. At the completion of the Project,
Contractor shall remove all its waste materials and rubbish from and about the Project as well as its tools,
construction equipment, machinery and surplus materials. If Contractor fails to clean up during the
• prosecution of the Work or at the completion of the Work, City may do so and the cost thereof shall be
charged to Contractor. If a dispute arises between Contractor and separate contractors as to their
responsibility for cleaning up, City may clean up and charge the cost thereof to the contractors responsible ,
therefore as Consultant shall determine to be just.
ARTICLE 8. SAFETY AND PROTECTION OF PROPERTY.
8.1. Contractor shall be solely responsible for initiating,maintaining and supervising all safety precautions
and programs in connection with the Project. Contractor shall take all necessary precautions for the safety
of,and shall provide the necessary protection to prevent damage, injury or loss to:
8.1.1. All employees on the work site and other persons who may be affected thereby;
8.1.2. AU the work and all materials or equipment to be incorporated therein,whether in storage on or off
the Project Site;and
8.1.3. Other property at the Project 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.
8.2. Contractor shall comply with all Applicable Laws for the safety of persons or property or to protect
them from damage, injury or loss;and shall erect and maintain all necessary safeguards for such safety and
protection. City and Contractor shall notify owners of adjacent property and utilities when prosecution of the
work may affect them. Contractor shall be responsible for and shall remedy all damage, injury or loss to any
property,caused directly or indirectly,in whole or in part,by Contractor,any Subcontractor,or anyone directly
or indirectly employed by any of them or anyone for whose acts any of them may be liable. Contractor's
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duties and responsibilities for the safety and protection of the work shall continue until such time as all the
Work is completed and Consultant has issued a notice to City and Contractor that the Work is acceptable
except as otherwise provided in the Contract Documents.
8.3. Contractor shall designate a responsible member of its organization at the Work site whose duty
shall be the prevention of accidents. This person shall be Contractor's Construction Superintendent, unless
otherwise designated in writing by Contractor to City.
8.4. Contractor's Responsibility for Damages and Accidents.
8.4.1. Contractor shall accept full responsibility for the Work against all loss or damage of whatsoever
nature sustained until final acceptance by City, and shall promptly repair any damage done from any cause
whatsoever.
8.4.2. Contractor shall be responsible for all materials, equipment and supplies pertaining to the Project.
In the event any such materials,equipment and supplies are lost,stolen,damaged or destroyed prior to final
acceptance by City,Contractor shall replace same without cost to City.
8.5. Occupational Health and Safety.
8.5.1. In compliance with Chapter.442,Florida Statutes,any toxic substance listed in Section 38F-41.03 of
the Florida Administrative Code delivered as a result of this bid must be accompanied by a Material Safety
Data Sheet(MSDS)which may be obtained from the manufacturer. The MSDS must include the following
information:
a. The chemical name and the common name of the toxic substance.
•
b. The hazards or other risks in the use of the toxic substance, including:
i. The potential for fire,explosion,corrosion,and reaction;
ii. The known acute and chronic health effects of risks from exposure, including the medical
conditions which are generally recognized as being aggravated by exposure to the toxic
substance;and
iii. The.primary routes of entry and symptoms of overexposure.
c. The proper precautions,handling practices,necessary personal protective equipment,and other
safety precautions in the use of or exposure to the toxic substances, including appropriate
emergency treatment in case of overexposure.
d. The emergency procedure for spills,fire,disposal,and first aid.
e. A description in lay terms of the known specific potential health risks posed by the toxic
substance intended to alert any person reading this information.
The year and month,if available,that the information was compiled and the name,address,and emergency
telephone number of the manufacturer responsible for preparing the information.
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8.6. Hurricane and Tropical Storm Precautions.
8.6.1. During such periods of time as are designated by the United States Weather Bureau as being a
hurricane warning or tropical storm alert, the Contractor, at no cost to the City, shall take all precautions
necessary to secure the Project Site in response to all threatened storm events, regardless of whether the
City or Consultant has given notice of same.
8.6.2. Contractor's Hurricane Preparedness Plan shall, at a minimum, include the following: (1)monitoring
of the real time weather radar and insuring reasonable precautions are taken prior to and during inclement
weather conditions, from a severe thunderstorms to a category 5 hurricane, to prevent accidents and to
minimize property damage; (2) preparing an emergency phone list showing home phone numbers of all
project personnel and subcontractor's supervisors, including all land lines and cell phones, to be used for
emergency purposes only; (3) ensuring the project jobsite's equipment and buildings are protected,
identifying vulnerable work in progress and determining how to best protect it from damage,and capping all
incomplete piping to prevent sand filtration; (4) cleaning the entire project, inside and out, removing trash
from the job site, clearing all materials that can become airborne, verifying that all erosion and sediment
control devices are in place and meet adequate standards,and removing screening on fences and signs;(5)
arranging for the pickup of all dumpsters and portable toilets and secure all materials and equipment,
anchoring or restraining everything that could blow away,and removing all non-essential barricades;and(6)
the documenting of conditions of the project and the surrounding area before and after the incident
(photographs and video).
8.6.3. Contractor shall be solely responsible for all costs of all precautions and Work covered, by
Contractor's Hurricane Preparedness Plan. Compliance with Contractor's Hurricane Preparedness Plan
shall not constitute additional Work.
8.6.4. Any additional Work not covered in the Hurricane Preparedness Plan relating to hurricane warning
or tropical storm alert at the Project Site will be addressed by a Change Order in accordance with the Contract
Documents.
8.6.5. Suspension of the Work caused by a threatened or actual storm event, regardless of whether the
City has directed such suspension,will entitle the Contractor to additional Contract Time as noncompensable,
excusable delay,and shall not give rise to a claim for compensable delay.
8.6.6. Within ten (10) calendar days after the Project Initiation Date specified in the Notice to Proceed,
Contractor shall submit to the City a Hurricane Preparedness Plan.
8.7. Location and Damage to Existing Facilities,Equipment or Utilities.
8.7.1. As far as possible, all existing utility lines in the Project area have been shown on the plans.
However,City does not guarantee that all lines are shown,or that,the ones indicated are in their true location.
As part of the Contract Price, it shall be the Contractor's responsibility to identify and locate all underground
and overhead utility lines or equipment affecting or affected by the Project, whether or not shown on the
plans.
8.7.2. The Contractor shall notify each utility company involved at least ten(10)days prior to the start of
construction to arrange for positive underground location, relocation or support of its utility where that utility
may be in conflict with or endangered by the proposed construction. Relocation of water mains or other
28 I General Conditions For Construction Contracts(April 13, 2020)
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utilities for the convenience of the Contractor shall be paid by the Contractor. All charges by utility companies
for temporary support of its utilities shall be paid for by the Contractor(for utilities indicated in the Contract
Documents). All costs of permanent utility relocation to avoid conflict shall be the responsibility of the utility
company involved, if indicated in the Contract Documents. No additional payment will be made to the
Contractor for utility relocations indicated in the Contract Documents, whether or not said relocation is
necessary to avoid conflict with other lines.
8.7.3. If Contractor, as part of its responsibility to identify all utility lines, identifies utility conflicts which
materially differ from those indicated in the Contract Documents,such utility conflicts(for items not indicated
in the Contract Documents) shall be addressed pursuant to the requirements of"Differing Site Conditions"
as set forth in Article 10 shall apply.
8.7.4. The Contractor shall reasonably schedule the Work, and the phasing thereof, in such a manner so
that the overall Project Schedule is not impacted and completion of the Work is not delayed by the utility
providers relocating or supporting their utilities.The Contractor shall coordinate its activities with any and all
public and private utility providers occupying the right-of-way. No compensation will be paid to the Contractor
for any loss of time or delay,except as provided in Article 10 of the Contract Documents.
8.7.5. All overhead, surface or underground structures and utilities encountered are to be carefully
protected from injury or displacement. All damage to such structures is to be completely repaired within a
reasonable time; needless delay will not be tolerated. The City reserves the right to remedy such damage
by ordering outside parties to make such repairs at the expense of the Contractor. All such repairs made by
• the Contractor are to be made to the satisfaction of the utility owner. All damaged utilities must be replaced
or fully repaired. All repairs are to be inspected by the utility owner prior to backfilling.
8.8. Risk of Loss. The risk of loss to any of the Work and to any goods, materials and equipment
provided or to be provided under the Contract Documents, shall remain with the Contractor until
Substantial Completion. Should any of the Work, or any such goods, materials and equipment, be
destroyed, mutilated, defaced or otherwise damaged prior to the time the risk of loss has shifted to the
City,the Contractor shall repair or replace the same at its sole cost.The Performance Bond and Payment
Bond or other security or insurance protection required by the Contract Documents or otherwise provided
by the City or the Contractor shall in no way limit the responsibility of the Contractor under this Section.
ARTICLE 9. BONDS,INSURANCE AND INDEMNITY_
9.1. Performance Bond and Payment Bond:The Contractor shall,within ten(10)business days of the
Contract Date, furnish and deliver to the City a payment bond and a performance bond, in a form to be
provided by the City, issued by sureties licensed and authorized to do business in the State of Florida,
covering the faithful performance and completion of the Project pursuant to the Contract Documents,
including the performance and completion of those services provided by Subcontractors of any tier and
covering the payment of all obligations arising hereunder including but not limited to, the payment for all
materials used in the performance of the Project in accordance with the Contract Documents,and for all labor
and services performed under the Contract Documents(including materials, labor and/or services provided
by Subconsultants and Subcontractors of any tier), whether by Subcontractors or otherwise. Each of the
aforesaid bonds(collectively herein referred to as the"Performance Bond and Payment Bond")shall have a
penal amount equal to the Contract Price, unless otherwise approved by the City and to the extent permitted
by law. Each bond shall be increased in the amount of any change to the Contract Price. Each bond shall
continue in effect for one(1)year after Final Completion of the Work.
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The Performance Bond and Payment Bond and the sureties issuing such bonds shall meet all the
requirements set forth in the Contract Documents and the Performance Bond and Payment Bond shall each
be in the form attached hereto or shall otherwise be acceptable to the City in its reasonable discretion. If any
of the sureties on the Performance Bond and Payment Bond at any time fails to meet said requirements,or
is deemed to be insufficient security for the penalty of said bond,then the City may,on giving thirty(30)days'
notice thereof in writing, require the Contractor to furnish a new and/or additional bond(s) in the above
amounts with such sureties thereon being licensed and authorized to do business in the State of Florida and
as shall be 'satisfactory to the City.The Contractor shall pay all costs of compliance with this Article as part
of the Contract Price.
Pursuant to the requirements of Section 255.05(1)(a), Florida Statutes, as may be amended from time to
time, Contractor shall ensure that the bond(s) referenced above shall be recorded in the public records of
Miami-Dade County and provide City with evidence of such recording.
9.2. Alternate Form of Security: In lieu of a Performance Bond and a Payment Bond, Contractor may
furnish alternate forms of security which may be in the form of cash, money order,certified check,cashier's
check or unconditional letter of credit in the form attached hereto,which shall be in accordance with Section
255.05, Florida Statutes. Such alternate forms of security shall be subject to the prior approval of City and
for same purpose and shall be subject to the same conditions as those applicable above and shall be held
by City for one year after completion and acceptance of the Work.
• 9.3. Qualification of Surety: Bid Bonds, Performance Bonds and Payment Bonds over Five Hundred
Thousand Dollars($500,000.00):
9.3.1. Each bond must be executed by a surety company of recognized standing,authorized to do business
in the State of Florida as surety, having a resident agent in the State of Florida and having been in business
with a record of successful continuous operation for at least five(5)years.
9.3.2. The surety company shall hold a current certificate of authority as acceptable surety on federal bonds
in accordance with United States Department of Treasury Circular 570,Current Revisions. If the amount of
the Bond exceeds the underwriting limitation set forth in the circular, in order to qualify, the net retention of
the surety company shall not exceed the underwriting limitation in the circular,and the excess risks must be
protected by coinsurance, reinsurance, or other methods in accordance with Treasury Circular 297, revised
September 1, 1978 (31 DFR Section 223.10, Section 223.111). Further, the surety company shall provide
City with evidence satisfactory to City,that such excess risk has been protected in an acceptable manner.
9.3.3. The City will accept a surety bond from a company with a rating of B+or better for bonds up to$2
million, provided, however,that if any surety company appears on the watch list that is published quarterly
by Intercom of the Office of the Florida Insurance Commissioner,the City shall review and either accept or
reject the surety company based on the financial information available to the City. A surety company that is
rejected by the City may be substituted by the Bidder or proposer with a surety company acceptable to the
City,only if the bid amount does not increase. The following sets forth,in general,the acceptable parameters
for bonds:
Policy- Financial
holder's Size
Amount of Bond Ratings Category
30 I General Conditions for Construction Contracts(April 13,2020)
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500,001 to 1,000,000 B+ Class I
1,000,001 to 2,000,000 B+ Class II
2,000,001 to 5,000,000 A Class III
5,000,001 to 10,000,000 A Class IV •
10,000,001 to 25,000,000 A Class V
25,000,001 to 50,000,000 A Class VI
50,000,001 or more A Class VII
9.3.4. For projects of$500,000.00 or less, City may accept a Bid Bond, Performance Bond and Payment
Bond from a surety company which has twice the minimum surplus and capital required by the Florida
Insurance Code at the time the invitation to bid is issued, if the surety company is otherwise in compliance
with the provisions of the Florida Insurance Code,and if the surety company holds a currently valid certificate
of authority issued by the United States Department of the Treasury under Section 9304 to 9308 of Title 31
of the United States Code,as may be amended from time to time. The Certificate and Affidavit so certifying
should be submitted with the Bid Bond and also with the Performance Bond and Payment Bond.
9.3.5. Unless more stringent surety requirements of any grantor agency are set forth within the
Supplemental Conditions,the provisions of this Article shall apply.
9.4. Insurance Requirements.The Bidder shall furnish to the Procurement Department, City of Miami
Beach,1755 Meridian Avenue,3rd Floor,Miami,Florida 33139,Certificate(s)of Insurance which indicate that
insurance coverage has been obtained which meets the requirements set forth in the Invitation to Bid
Summary(and/or exhibits thereto).
9.4.1. Additional Insured Status. The City of Miami Beach must be covered as an additional insured
with respect to liability arising out of work or operations performed by or on behalf of the Consultant.
9.4.2. Waiver of Subrogation.Contractor hereby grants to City of Miami Beach a waiver of any right to
subrogation which any insurer of the Contractor may acquire against the City of Miami Beach by virtue of
the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be
necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the
City of Miami Beach has received a waiver of subrogation endorsement from the insurer.
9.4.3. Other Insurance Provisions.
a. For any claims related to this project,the Contractor's coverage shall be primary insurance as
respects the City of Miami Beach, its officials, officers, employees, and volunteers. Any
insurance or self-insurance maintained by the City of Miami Beach shall be excess of the
Contractors insurance and shall not contribute with it.
b. Each policy required by this clause shall provide that coverage shall not be canceled,except
with notice to the City of Miami Beach.
c. If any excavation work is included in the Contract,it is understood and agreed that Contractor's
Liability policy shall not contain exclusion for XCU (Explosion, Collapse and Underground)
coverage.
If any coverage required is written on a claims-made form:
a. The retroactive date must be shown, and must be before the date of the contract or the
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beginning of contract work.
b. Insurance must be maintained and evidence of insurance must be provided for at least five(5)
years after completion of the contract of work.
c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy
form with a retroactive date prior to the contract effective date,the Contractor must purchase
extended period coverage for a minimum of five(5)years after completion of the contract work.
d. A copy of the claims reporting requirements must be submitted to the City of Miami Beach Risk
Management(or its designee)for review.
e. If the services involved lead-based paint or asbestos identification/ remediation, the
Contractors Pollution Liability shall not contain lead-based paint or asbestos exclusions. If the
services involve mold identification/remediation, the Contractors Pollution Liability shall not
contain a mold exclusion and the definition of "Pollution" shall include microbial matter
including mold.
9.4.4. Acceptability of Insurers.Insurance is to be placed with insurers with a current A.M.Best's rating
of no less than A:VII, unless otherwise acceptable to the City of Miami Beach Risk Management Office.
9.4.5. Verification of Coverage. Contractor shall provide the required insurance certificates,
• endorsements or applicable policy language effecting coverage required by this Article.All certificates of
insurance and endorsements are to be received prior to any work commencing. However,failure to obtain
the required coverage prior to the work beginning shall not waive the Contractor's obligation to provide
them. The City of Miami Beach reserves the right to require complete, certified copies of all required
insurance policies, including endorsements required by these specifications,at any time.
9.4.6. Special Risks or Circumstances. The City of Miami Beach reserves the right to modify these
requirements,including limits,based on the nature of the risk,prior experience,insurer,coverage,or other
special circumstances.
Certificate Holder:
CITY OF MIAMI BEACH
do PROCUREMENT DEPARTMENT
1700 CONVENTION CENTER DRIVE
MIAMI BEACH,FL 33139
Compliance with the foregoing requirements shall not relieve the vendor of his liability and obligation under
this section or under any other provision of the Contract Documents.
9.5. Indemnification.
9.5.1. In consideration of the sum of Twenty-Five Dollars ($25.00) and other good and valuable
consideration, the sufficiency of which the Contractor hereby acknowledges,to the fullest extent permitted
by law, Contractor shall defend, indemnify and save harmless City, and their respective officers and
employees, from liabilities, damages, losses and costs including, but not limited to, reasonable attorney's
32 I General Conditions for Construction Contracts lApril 13, 2020)
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fees,to the extent caused by the negligence,recklessness,or intentional wrongful misconduct of Contractor
and persons employed or utilized by Contractor in the performance of this Contract.
9.5.2. Sums otherwise due to Contractor under this Contract may be retained by City until all of City's
Claims for indemnification under this Contract have been settled or otherwise resolved. Any amount withheld
pursuant to this Article shall not be subject to payment of interest by City.
9.5.3. The execution of this Contract by Contractor shall operate as an express acknowledgment that the
indemnification obligation is part of the bid documents and/or Contract Documents for the Project and the
monetary limitation on indemnification in this Article bears a reasonable commercial relationship to the
Contract.
9.5.4. Nothing in this Artilce is intended, or should be construed, to negate, abridge or otherwise reduce
the other rights and obligations of indemnity that may otherwise exist as to a party described in this Article.
9.5.5. Nothing in this Article is intended to create in the public or any member thereof, a third party
beneficiary hereunder, or to authorize anyone not a party to this Contract, to maintain a suit for personal
injuries or property damage pursuant to the terms or provisions of this Contract.
9.5.6. The indemnification obligations set forth herein shall survive the termination and/or expiration of this
Contract.
•
ARTICLE 10. CHANGES IN THE WORK;
EXTENSIONS TO THE CONTRACT TIME.
10.1. Changes in the Work or Terms of Contract Documents.
10.1.1. Without invalidating the Contract and without notice to any surety City reserves and shall have the
right,from time to time to make such increases,decreases or other changes in the character or quantity of
the Work as may be considered necessary or desirable to complete fully and acceptably the proposed
construction in a satisfactory manner. Any extra or additional work within the scope of this Project must be
accomplished by means of appropriate Field Orders and Supplemental Instructions or Change Orders.
10.1.2. Any changes to the terms of the Contract Documents must be contained in a Change Order, -
executed by the Parties'hereto,with the same formality and of equal dignity prior to the initiation of any work
reflecting such change.This section shall not prohibit the issuance of Change Orders executed only by City
as hereinafter provided.
10.2. Field Orders.
10.2.1. The Contract Administrator, through Consultant, shall have the right to approve and issue Field
Orders setting forth written interpretations of the intent of the Contract Documents and ordering minor
changes in Work execution,providing the Field Order involves no change in the Contract Price or the Contract
Time.
10.2.2. Consultant shall have the right to approve and issue supplemental instructions setting forth written
orders,instructions,or interpretations concerning the Contract Documents or its performance,provided such
supplemental instructions involve no change in the Contract Price or the Contract Time.
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10.3. Change Orders.
10.3.1. Changes in the quantity or character of the Work which are not properly the subject of Field Orders
or supplemental instructions,including all changes resulting in changes in the Contract Price,or the Contract
Time, shall only be authorized only by Change Orders approved in advance by the City. Changes in the
Work shall be performed under applicable provisions of the Contract Documents,and the Contractor shall
proceed promptly, unless otherwise provided in the Change Order or Construction Change Directive. No
Change Order shall take effect until Contractor delivers a Consent of Surety increasing the Performance
Bond and Payment Bond by the amount of the Change Order.
10.3.2. All Change Orders which exceed the then-remaining amounts available in the Owner's Contingency
shall be approved by the City Commission. All other Change Orders, if funded by then-remaining amounts
available in the Owner's Contingency, shall be approved in advance by the City Manager or the City
Manager's designee. Notwithstanding the foregoing, the City Manager, at his or her sole discretion, may
elect to present any proposed Change Order to the City Commission for its consideration.
10.3.3. If City requests a change in the Work, City shall submit a change request to Contractor, in writing.
Within seven (7) business days of Contractor's receipt of such request from the City, Contractor shall
provide City with a rough"pencil copy"estimate of the cost and/or time impacts associated with the request.
Within twenty-one (21) days of Contractor's receipt of City's initial request,the Contractor shall submit a
detailed proposal to the City stating (i)the proposed increase or decrease, if any, in the Cost of the Work
which would result from such a change, (ii)the effect, if any, upon the Contract Time by reason of such
proposed change, and (iii)supporting data and documentation, including any requested by the City in its
change request.
10.3.4. If the Contractor proposes a change in the Work, such proposal must be accompanied by a
detailed cost breakdown and sufficient substantiating data to permit evaluation by the City.If the Contractor
does submit a proposal within the preceding seven (7) business day time period, the City shall, within
twenty-one (21) days following its receipt of such proposal, notify the Contractor as to whether the City
agrees with such proposal and wishes to accept the Contractor's proposal. If the City agrees with such
proposal and wishes to accept the same,the City and the Contractor shall execute a Change Order which
at a minimum specifies: i)the detailed scope associated with the change to the Work; ii)the amount of the
adjustment in the Contract Price, if any, and (iii)the extent of the adjustment in the Contract Time, if any.
In the event the City disagrees with the Contractor's proposal,the City may either(i) notify the Contractor
that the City has decided to not proceed with or approve the requested change, or (ii) issue a Change
Order as provided below.
10.3.5. The increase or decrease in the Contract Price resulting from a change in the Work shall be
determined in one or more of the following ways:
a. by mutual acceptance of a lump sum(inclusive of all overhead and profit)properly itemized
and supported by sufficient substantiating data to permit evaluation by the Consultant and City;
b. by unit prices as may be specified in the Contract Documents or subsequently agreed upon;
c. by time and materials or"cost of the Work" (as defined herein) and a mutually acceptable
fixed or percentage overhead and profit fee for the Contractor.
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10.3.6. If none of the methods set forth above are agreed upon,the Contractor,provided it receives a written
Change Order signed by the City with respect to all undisputed amounts and Work, shall promptly proceed
with the Work involved, subject to Contractor's reservation of rights as to disputed amounts (with such
reservation of rights identifying the precise nature of the dispute, the facts in support of the Contractor's
position, and the maximum amount and/or time sought by the Contractor).The cost of such Work shall then
be determined on the basis of the reasonable expenditures and savings of those performing the Work
attributed to the change, including a reasonable overhead and profit in accordance with this Article. With
respect to any such Change Order Work,the City,with the Consultant,will establish an estimated cost of the
Work and the Contractor shall not perform any Work whose cost exceeds that estimate without prior written
approval by the City.With respect to all Change Orders,Contractor shall keep and present, in such form as
the City may prescribe,an itemized accounting together with appropriate supporting data of the increase in
the Cost of the Work.
10.3.7. If unit prices are included in the Contract Documents or as part of any Change Order, City shall pay
to Contractor the amounts determined for the total number of each of the units of work completed at the unit
price associated with such Work as stated in the Contractor's schedule of prices bid, as set forth in
Contractor's response to the ITB. The number of units contained in the bid is an estimate only, and final
payment shall be made for the actual number of units incorporated in or made necessary by the Contract
Documents, as may be amended by Change Order. If additional unit price work is ordered, then the
Contractor shall perform the work as directed and shall be paid for the actual quantity of such item(s)of work
performed at the appropriate original schedule of prices bid associated with such Work.
10.3.8. Decreases in the Cost of the Work due to a change in the Project shall result in a decrease to the
Contract Price, by way of a deductive Change Order.
10.3.9. The Contractor's overhead and profit fee for all Change Orders shall be the net change'in the
Contract Price,multiplied by the percentage specified for overhead and profit in the Change Order,provided,
that the overhead and profit markup or fee shall be as follows:
(1) if the Change Order Work involves self-performed Work performed by the Contractor's own
forces, the overhead and profit markup shall be reasonable, and shall not exceed ten percent(10%)of the
net change in the Contract Price;or
(2) if the Change Order involves Work performed by Subcontractors or Suppliers, or both, the
overhead and profit markup shall be reasonable, and the overhead and profit markup from Subcontractors
and Suppliers at all tiers shall not exceed ten percent 10%of the net change in the Contract Price, and the
Contractor's mark up for such Subcontractor performed Change Order Work shall not exceed seven and one
half percent(7.5%)of the net change in the Contract Price.
For deductive Change Orders, including deductive Change Orders arising from both additive and deductive
items,the deductive amounts shall include a proportionate corresponding reduction in the overhead and profit
fee,as applicable to the Contractor, Subcontractors or Suppliers.
10.4. Value of Change Order Work/"Costs of the Work". The term"cost of the Work" means the sum
of:
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10.4.1. All direct costs necessarily incurred and paid by Contractor in the proper performance of the Work
described in the Change Order.Except as otherwise may be agreed to in writing by City,such costs shall be
in amounts no higher than those prevailing in the locality of the Project,shall include only the following items
and shall not include any of the costs itemized in the"cost of work"as defined herein.
10.4.2. Payroll costs for employees in the direct employ of Contractor in the performance of the work
described in the Change Order under schedules of job classifications agreed upon by City and Contractor.
( Payroll costs for employees not employed full time on the work covered by the Change Order shall be
apportioned on the basis of their time spent on the work. Payroll costs shall include, but not be limited to,
salaries and wages plus the cost of fringe benefits which shall include social security contributions,
unemployment, excise and payroll taxes, workers' or workmen's compensation, health and retirement
benefits, bonuses, sick leave, vacation and holiday pay application thereto. Such employees shall include
superintendents and foremen at the site. The expenses of performing the work after regular working hours,
on Sunday or legal holidays,shall be included in the above to the extent authorized by City. Contractor's fee
shall not exceed ten percent(10%).
10.4.3. Cost of all materials and equipment furnished and incorporated in the work, including costs of
transportation and storage thereof, and manufacturers'field services required in connection therewith. All
cash discounts shall accrue to Contractor unless City deposits funds with Contractor with which to make
payments, in which case the cash discounts shall accrue to City. All trade discounts, rebates and refunds,
and all returns from sale of surplus materials and equipment shall accrue to City and Contractor shall make
provisions so that they may be obtained. Rentals of all construction equipment and machinery and the parts
thereof whether rented from Contractor or others in accordance with rental agreements approved by City with
the advice of Consultant and the costs of transportation, loading, unloading, installation, dismantling and
removal thereof, all in accordance with the terms of said agreements. The rental of any such equipment,
machinery or parts shall cease when the use thereof is no longer necessary for the work.Contractor's fee for
overhead and profit markup for materials and equipment pursuant to this Section shall not exceed ten percent
(10%)of the net change in the Contract Price.
10.4.4. Payments made by Contractor to Subcontractors for work performed by Subcontractors. If required
by City, Contractor shall obtain competitive bids from Subcontractors acceptable to Contractor and shall
deliver such bids to City who will then determine,with the advice of Consultant,which bids will be accepted.
If the Subcontract provides that the Subcontractor is to be paid on the basis of cost of the work plus a fee,
the Subcontractor's cost of the work shall be determined in the same manner as Contractor's cost of the
work. All Subcontractors shall be subject to the other provisions of the Contract Documents insofar as
applicable. Contractor's fee shall not exceed seven and one half percent(7.5%);and if a subcontract is on
the basis of cost of the work plus a fee,the maximum allowable to the Subcontractor as a fee for overhead
and profit shall not exceed ten percent(10%).
10.4.5. Contractor shall not be entitled to an overhead and profit markup or fee for any Change Order
involving special consultants, including, but not limited to, engineers, architects, testing laboratories, and
surveyors employed for services specifically related to the performance of the work described in the Change
Order.
10.4.6. Contractor shall not be entitled to an overhead and profit markup or fee for the following costs or
expenses:
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a. The proportion of necessary transportation, travel and subsistence expenses of Contractor's
employees incurred in discharge of duties connected with the work except for local travel to and
from the site of the work.
b. Cost, including transportation and maintenance, of all materials, supplies, equipment,
machinery, appliances, office and temporary facilities at the site and hand tools not owned by
the workmen, which are consumed in the performance of the work, and cost less market value
of such items used but not consumed which remains the property of Contractor.
c. Sales, use, or similar taxes related to the Work, and for which Contractor is liable, imposed by •
any governmental authority.
d. Deposits lost for causes other than Contractor's negligence; royalty payments and fees for
permits and licenses.
e. The cost of utilities,fuel and sanitary facilities at the Project Site.
f. Receipted minor expenses such as long distance telephone calls,telephone service at the site,
express delivery services (FedEx, UPS or couriers, and the like), Internet or other
telecommunications services,and similar petty cash items in connection with the Work.
g. Cost of premiums for additional bonds and insurance required because of changes in the Work.
10.4.7. The term"cost of the Work"shall not include any of the following items,as such items are expressly
not to be reimbursed:
a. Payroll costs and other compensation of Contractor's officers, executives, principals (of
partnership and sole proprietorships), general managers, engineers, architects, estimators,
lawyers, auditors, accountants, purchasing and contracting agents, expediters, timekeepers,
clerks and other personnel employed by Contractor whether at the site or in its principal or a
branch office for general administration of the work and not specifically included in the agreed-
upon schedule of job classifications, all of which are to be considered administrative costs
covered by Contractor's fee.
b. Expenses of Contractor's principal and branch offices other than Contractor's office at the Project
Site.
c. Any part of Contractors capital expenses,including interest on Contractor's capital employed for
the work and charges against Contractor for delinquent payments.
d. Cost of premiums for all Bonds and for all insurance whether or not Contractor is required by the
Contract Documents to purchase and maintain the same, except for additional bonds and
insurance required because of changes in the Work.
e. Losses and expenses sustained by the Contractor or any Subcontractors at any tier, not
compensated by insurance or otherwise,if such losses and expenses are due to infidelity on the
part of any employee of Contractor,any Subcontractor or Supplier,anyone directly or indirectly
employed by any of them, or anyone for whose acts any of them may be liable, or others to
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whom the property may be entrusted, including but not limited to, the correction of defective
work, disposal of materials or equipment wrongly supplied and making good any damage to
property.
f. Other overhead or general expense costs of any kind and the cost of any item not specifically
and expressly approved by the City Manager or City Commission by a Change Order.
g. Losses and expenses not covered by insurance where the Contractor, or any Subcontractor,
failed to obtain and/or maintain in effect the insurance required to be carried by the Contract
Documents, or where Contractor, or any Subcontractor or Supplier, failed to obtain and/or
maintain such insurance in limits and amounts required by the Contract Documents except to
the extent any deductible provided in such required insurance;
h. Costs and expenses incurred by Contractor upon breach of its warranties or guaranties;
i. Costs associated with the relocation of employees,and any travel costs not expressly permitted
by the Contract Documents(including costs for long-distance travel,costs for travel between the
Project Site and the Contractor's office(s),and hotel,car rental and airfare costs);
j. Any amounts to be paid by the Contractor for federal,state or local income or franchise taxes;
k. Labor,material,and equipment costs or any other costs incurred which should be back-charged
to any Subcontractor,any Sub-Subcontractor,any direct or lower tier supplier,or any other party
for whom the Contractor is responsible;
I. Costs or losses resulting from lost,damaged by misuse or stolen tools and equipment;
m. Costs of bonding or securing liens or defending claims filed by any Subcontractor of any tier,any
Supplier, any direct or lower tier supplier or any other party for whom any of such parties or the
Contractor is responsible arising from nonpayment,unless such nonpayment is the result of the
City's unexcused or wrongful failure to pay the Contractor undisputed amounts as and when due
under the Contract Documents;
n. Costs of self-insured losses(e.g.,losses within the deductible limits maintained by the Contractor
or any direct or indirect subcontractor),costs covered by any insurance carried by Contractor or
a direct or lower tier subcontractor, costs which would have been covered by the insurance
required to be carried by a Contractor or a direct or lower tier subcontractor under the Contract
Documents, and costs which would have been covered by insurance but for failure of the
Contractor or direct or lower tier subcontractor to properly submit, process or give notice to the
occurrence or claim;
o. Costs of employee bonuses and executive bonuses whether or not based in whole or in part on
performance related to the Work;
p. Costs incurred or paid for recruiting employees (whether to third party recruiters or to
employees);
q. Severance or similar payments on account of terminated employees;
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r. Costs incurred after the Contractor's application for final payment;
s. Any outside legal fees;
t. Costs of materials and equipment stored off-site, except upon the prior written approval of the
Contract Administrator in accordance with the Contract Documents.
10.5. The amount of credit to be allowed by Contractor to City for any such change which results in a net
decrease in cost,will be the amount of the actual net decrease. When both additions and credits are involved
in any one change,the combined overhead and profit shall be figured on the basis of the net increase,if any,
however,Contractor shall not be entitled to claim lost profits for any Work not performed.
10.6. Whenever the cost of any work is to be determined as defined herein, Contractor will submit in a
form acceptable to Consultant an itemized cost breakdown together with the supporting data.
10.7. Where the quantity of any item of the Work that is covered by a unit price is increased by more than
thirty percent (30%) from the quantity of such work indicated in the Contract Documents, an'appropriate
Change Order shall be issued to adjust the unit price,if warranted.
10.8. Whenever a change in the Work is to be based on mutual acceptance of a lump sum,whether the
amount is an addition,credit or no change-in-cost,Contractor shall submit an initial cost estimate acceptable
to Consultant and Contract Administrator.
10.8.1. Breakdown shall list the quantities and unit prices for materials,labor,equipment and other items of
cost.
10.8.2. Whenever a Change Order involves Contractor and one or more Subcontractors, and the Change
Order increases in the Contract Price, the overhead and profit markups for Contractor and each
Subcontractor in accordance with this Article shall be itemized separately.
10.8.3. Each Change Order must state within the body of the Change Order whether it is based upon unit
price, negotiated lump sum,or"cost of the work."
10.9. No Damages for Delay. NO CLAIM FOR DAMAGES OR ANY CLAIM, OTHER THAN FOR AN
EXTENSION OF TIME,SHALL BE MADE OR ASSERTED AGAINST CITY BY REASON OF ANY DELAYS
EXCEPT AS PROVIDED HEREIN. Contractor shall not be entitled to an increase in the Contract Price or
payment or compensation of any kind from City for direct, indirect, consequential, impact or other costs,
expenses or damages, including but not limited to costs of acceleration or inefficiency, arising because of
delay, disruption, interference or hindrance from any cause whatsoever, whether such delay, disruption,
interference or hindrance be reasonable or unreasonable, foreseeable or unforeseeable, or avoidable or
unavoidable; and irrespective of whether such delay constitutes an Excusable Delay and irrespective of
whether such delay results in an extension of the Contract Time;provided,however,Contractor's hindrances
or delays are not due solely to fraud, bad faith .or willful or intentional interference by the City in the
performance of the Work,and then only where such acts continue after Contractor's written notice to the City
of such alleged interference.
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10.9.1. Contractor acknowledges and agrees that Excusable Delay shall not be deemed to constitute willful
or intentional interference with the Contractor's performance of the Work without clear and convincing proof
that they were the result of a deliberate act, without any reasonable and good-faith basis, and were
specifically intended to disrupt the Contractor's performance of the Work.The City's attempts to facilitate or
assist Contractor in performance of the Work shall in no way be construed, interpreted and/or be deemed to
constitute willful or intentional interference with the Contractor's performance of the Work.
Except as provided herein, Contractor hereby waives all other remedies at law or in equity that it might
otherwise have against the City on account of any Excusable Delay and any and all other events that may,
from time to time,delay the Contractor in the performance of the Work. Contractor acknowledges and agrees
that, except as specified herein, all delays or events and their potential impacts on the performance by the
Contractor are specifically contemplated and acknowledged by the Parties in entering into this Agreement
and that Contractor's pricing of the Work and the determination of the Contract Price shall be expressly based
on the Contractor's assumption of the risks thereof,and Contractor hereby waives any and all Claims it might
have for any of the foregoing losses,costs,damages and expenses.
10.10. Excusable Delay. Contractor's sole remedy for Excusable Delay is an extension of the Contract
Time for each day of critical path delay, but only if the pre-requisites and notice requirements set forth below
in this Article 10 have been timely and properly satisfied.An excusable delay is one that(i)directly impacts
critical path activity delineated in the Project Schedule and extends the time for completion of the Work; (ii)
could not reasonably have been mitigated by Contractor, including by re-sequencing, reallocating or
redeploying and/or increasing the amount of its forces to other portions of the Work; and (iii) is caused by
circumstances beyond the control and due to no fault of Contractor or its Subcontractors, material persons,
Suppliers,or Vendors,including,but not limited to,force majeure events such as fires,floods,labor disputes,
epidemics,hurricanes,or similar events beyond the control and due to no fault of the Contractor("Excusable
Delay"). If two or more separate events of Excusable Delay are concurrent with each other,Contractor shall
only be entitled to an extension of time for each day of such concurrent critical path delay, and Contractor
shall not be entitled to double recovery thereon. For illustration purposes only, if two events of Excusable
Delay are concurrent for two days, Contractor shall only receive a time extension of a total of two days,and
not four days.
10.10.1. Weather.Extensions to the Contract Time for delays caused by the effects of inclement weather
shall be submitted as a request for a change in the Contract Time pursuant to the Contract Documents.
These time extensions are justified only when rains or other inclement weather conditions prevent Contractor
from productively performing critical path activity delineated in the Project Schedule:
(1) Contractor being unable to work at least fifty percent(50%)of the normal workday on critical
path activity delineated in the Project Schedule due to adverse weather conditions;or
(2) Contractor must make major repairs to the Work damaged by weather. Providing the
damage was not attributable to a failure to perform or neglect by Contractor, and providing that Contractor
was unable to work at least fifty percent(50%)of the normal workday on critical path activity delineated in
the Project Schedule.
10.10.2. Compensable Excusable Delay. Notwithstanding the foregoing, Excusable Delay is
compensable when (i) the delay extends the Contract Time, (ii) is caused by circumstances beyond the
control of the Contractor or its subcontractors, suppliers or vendors, and (iii) is caused solely by fraud, bad
faith or active interference on the part of City or its agents,provided,however,that in no event shall Contractor
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be compensated for(x)interim delays which do not extend the Contract Time,or(y)for Excusable Delay if
caused jointly or concurrently by Contractor or its subcontractors, suppliers or vendors and by the City or
Consultant, in which case then Contractor shall be entitled only to a time extension and no further
compensation for the Excusable Delay.
10.10.3. Unexcusable Delays. "Unexcusable Delay" shall mean any delays not included within the
definition of Excusable Delay as set forth above including any delay which extends the completion of the
Work or portion of the Work beyond the time specified in the Project Schedule, including,without limitation,
the date for Substantial Completion or Final Completion, and which is caused by the act, fault, inaction or
omission of the Contractor or any Subcontractor, Supplier or other party for whom the Contractor is
responsible; any delay that could have been limited or avoided by Contractor's timely notice to the City of '
such delay;or any delay in obtaining licenses, permits or inspections caused by the actions or omissions of
the Contractor or its Subcontractors, Suppliers or any other party for whom the Contractor is responsible An
Unexcusable Delay shall not be cause for granting an extension of time to complete any Work or any
compensation whatsoever, and shall subject the Contractor to damages in accordance with the Contract
Documents. In no event shall the Contractor be excused for interim delays which do not extend the Project
Schedule, including the date for Substantial Completion or Final Completion.
10.11. Prerequisites and Notice Requirements for Extensions of Time. Except as provided in the
Contract Documents with respect to Changes in the Work, an extension of the Contract Time will only be
granted by the City under the following circumstances:(a)if a delay occurs as a result of an Excusable Delay,
and (b) the Contractor has complied with each of the following requirements below to the reasonable
satisfaction of the City:
a. Contractor shall provide written notice to the City of any event of delay or potential delay within
five (5)days of the commencement of the event giving rise to the request. The Contractor,within ten (10)
days.of the date upon which the Contractor has knowledge of the delay,shall notify the City,in writing,of the
cause of the delay stating the approximate number of days the Contractor expects to be delayed,and must
make a request for an extension of time, if applicable,to the City, in writing, within ten (10)days after the
cessation of the event causing the delay specifying the number of days the Contractor believes that its
activities were in fact delayed by the cause(s)described in its initial notice.
b. The Contractor must show to the reasonable satisfaction of the City that the activity claimed to
have been delayed was in fact delayed by the stated cause of delay, that the critical path of the Work was
materially affected by the delay, that the delay in such activity was not concurrent with any Unexcusable
Delay,the delay was not the result of the performance of unit price Work,and that the delay in such activity
will result in a delay of the date for Substantial Completion in the Project Schedule or Final Completion.
c. The initial notice provided by the Contractor under Subsection (a) above shall provide an
estimated number of days the Contractor believes it will be delayed,and describe the efforts of the Contractor
that have been or are going to be undertaken to overcome or remove the Excusable Delay and to minimize
the potential adverse effect on the cost and time for performance of the Work resulting from such Excusable
Delay. The mere written notice of an event of delay or potential delay, without all of the aforementioned
required information,is insufficient and will not toll the time period in which the Contractor must provide proper
written notice under this Article.
CONTRACTOR'S STRICT COMPLIANCE WITH THIS ARTICLE 10 IS A CONDITION PRECEDENT TO
RECEIPT OF AN EXTENSION OF THE CONTRACT TIME. FAILURE OF THE CONTRACTOR TO
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COMPLY WITH ALL REQUIREMENTS AS TO ANY PARTICULAR EVENT OF DELAY,INCLUDING THE
REQUIREMENTS OF THIS SECTION, SHALL BE DEEMED CONCLUSIVELY TO CONSTITUTE A
WAIVER, ABANDONMENT OR RELINQUISHMENT OF ANY ENTITLEMENT TO AN EXTENSION OF
TIME AND ALL CLAIMS RESULTING FROM THAT PARTICULAR EVENT OF PROJECT DELAY. Once
the Parties have mutually agreed as to the adjustment in the Contract Time due to an Excusable Delay,they
shall enter into a Change Order documenting the same.
If the City and Contractor cannot resolve a request for time extension made properly and timely under this
Section within sixty(60)days following Contractor's initial notice of the events giving rise to the request for
a time extension,the Contractor may re-submit the request as a Claim in accordance with the Contract
Documents.
10.12. Contractor's Duty. Notwithstanding the provisions of this Agreement allowing the Contractor to
claim delay due to Excusable Delay, whenever an Excusable Delay shall occur,the Contractor shall use all
reasonable efforts to overcome or remove any such Excusable Delay, and shall provide the City with written
notice of the Contractor's recommendations on how best to minimize any adverse effect on the time and cost-
of performing the Work resulting from such Excusable Delay.In furtherance of the foregoing,whenever there
shall be any Excusable Delay,the Contractor shall use all reasonable efforts to adjust the Project scheduling
and the sequencing and timing of the performance of the Work in a manner that will avoid, to the extent
reasonably practicable, any Excusable Delay giving rise to an actual extension in the time for performance
of the Work.
If there are corresponding costs associated with any of the measures which the Contractor deems necessary
or desirable to minimize any adverse effects resulting from any Excusable Delay,the Contractor shall advise
the City of such anticipated associated costs and shall not proceed with such measures absent the City's
executing a Change Order in connection therewith. Nothing in this Section shall, however, be deemed to
entitle the Contractor to any adjustment in the Contract Price or any other damages, losses or expenses
resulting from an Excusable Delay; nor shall it be deemed to obligate the City to agree to undertake any
recommendations suggested by the Contractor as a means of minimizing the adverse effects of any
Excusable Delay.
10.13. Differing Site Conditions. In the event that during the course of the Work Contractor encounters
subsurface or concealed conditions at the Project Site which could not have reasonably been identified by
Contractor upon prior investigation, and materially differ from those indicated in the Contract Documents,or
if unknown physical conditions of an unusual nature are encountered on the Project Site and differ materially
from those ordinarily encountered and generally recognized as inherent in work of the character called for in
the Contract Documents, then Contractor shall promptly notify the City within two(2) business days of the
specific materially differing site conditions, before the Contractor disturbs the conditions or performs the
affected Work.
10.13.1. Consultant and City shall,within two(2)business days after receipt of Contractor's written notice,
investigate the site conditions identified by Contractor. If, in the sole opinion of Consultant,the conditions do
materially so differ and cause an increase or decrease in Contractor's cost of, or the time required for, the
performance of any part of the Work, Consultant shall recommend an equitable adjustment to the Contract
Price, or the Contract Time,or both. If City and Contractor cannot agree on an adjustment in the Contract
Price or Contract Time, the adjustment shall be referred to Consultant for determination in accordance with
the provisions of Contract Documents. Should Consultant determine that the conditions of the Project Site
are not so materially different to justify a change in the terms of the Contract, Consultant shall so notify City
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and Contractor in writing, stating the reasons, and such determination shall be final and binding upon the
parties hereto.
10.13.2. An adjustment for differing site conditions shall not be allowed, and any Claim relating thereto
shall be deemed conclusively waived,if the Contractor has not provided the required written notice within two
(2) business days of discovery of the site conditions, or has disturbed the site conditions prior to City's
examination thereof. If a differing site condition qualifies for an equitable adjustment pursuant to the Contract
Documents, and the Contractor's costs cannot reasonably be established at the time of notice to the City
thereof,the Contractor shall submit its proposed pricing and/or request for extension of time within ten(10)
days after the proposed solution is identified to the differing site condition described in the Contractor's initial
notice to the City.
10.13.3. For purposes of this Section,a"materially differing"site condition is one that(1)is not identified
in the Contract Documents and is not reasonably inferable therefrom; and (2) could not have reasonably
been identified by Contractor upon prior investigation,provided Contractor reasonably undertook such prior
site investigation;and(3)requires a change to the Work that increases Contractor's costs and/or impacts the
critical path for completion of the Work.
10.13.4. Where Site Conditions delay the Project,and said delay could have been avoided by reasonable
investigations of the Project Site at any time prior to commencement of the Work in question,such delay shall
not be considered to be an Excusable Delay beyond the control of the Contractor, and no time extension
shall be granted. No request for an equitable adjustment or change to the Contract Time for differing Site
Conditions shall be allowed if made after the date certified as the Substantial Completion date.
ARTICLE 11. CLAIMS AND RESOLUTION OF DISPUTES.
11.1 Claims must be initiated by written notice and,unless otherwise specified in the Contract Documents,
submitted to the other Party within ten(10)days of the event giving rise to such Claim or within ten(10)days
after the claimant reasonably should have recognized the event or condition giving rise to the Claim,
whichever is later. Such Claim shall include sufficient information to advise the other party of the
circumstances giving rise to the Claim, the specific contractual adjustment or relief requested including,
without limitation, the amounts and number of days of delay sought, and the basis of such request. The
Claim must include all job records and other documentation supporting entitlement, the amounts and time
sought. In the event additional time is sought,the Contractor shall include a time impact analysis to support
such Claim. The City shall be entitled to request additional job records or documentation to evaluate the
Claim. The Claim shall also include the Contractor's written notarized certification of the Claim in accordance
with the False Claims Ordinance,Sections 70-300 et seq.,of the City Code.
11.2 Claims not timely made or otherwise not submitted in strict accordance with the requirements of this
Article or other Contract Documents shall be deemed conclusively waived,the satisfaction of which shall be
conditions precedent to entitlement.
11.3 Contractor assumes all risks for the following items,none of which shall be the subject of any Change
Order or Claim and none of which shall be compensated for except as they may have been included in the
Contractor's Contract Price as provided in the Contract Documents: Loss of any anticipated profits, loss of
bonding capacity or capability losses, loss of business opportunities, loss of productivity on this or any other
project, loss of interest income on funds not paid, inefficiencies, costs to prepare a bid, cost to prepare a
quote for a change in the Work,costs to prepare, negotiate or prosecute Claims,and loss of projects not bid
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upon, or any other indirect and consequential costs not listed herein. No compensation shall be made for
loss of anticipated profits from any deleted Work.
11.4 Continuing the Work During Disputes. Contractor shall carry on,the Work and adhere to the
progress schedule during all disputes or disagreements with City, including disputes or disagreements
concerning a request for a Change Order, a request for a change in the Contract Price or Contract Time.
The Work shall not be delayed or postponed pending resolution of any disputes or disagreements.
Contractor's failure to comply with this Section shall constitute an Event of Default.
ARTICLE 12. PERMITS,LICENSES,FEES,TAXES.
12.1 Except as otherwise provided within the Contract Documents, all permits and licenses required by
federal, state or local laws, rules and regulations necessary for the prosecution of the Work undertaken by
Contractor pursuant to this Contract shall be secured and paid for by Contractor. It is Contractor's
responsibility to have and maintain appropriate Certificate(s) of Competency, valid for the Work to be
performed and valid for the jurisdiction in which the Work is to be performed for all persons working on the
Project for whom a Certificate of Competency is required.
12.2 Impact fees levied by the City and/or Miami-Dade County shall be paid by Contractor. Contractor
shall be reimbursed only for the actual amount of the impact fee levied by the municipality or Miami-Dade
County as evidenced by an invoice or other acceptable documentation issued by the municipality.
Reimbursement to Contractor in no event shall include profit or overhead of Contractor.
12.3 All fees, royalties, and claims for any invention, or pretended inventions, or patent of any article,
material,arrangement,appliance,or method that may be used upon or in any manner be connected with the
construction of the Work or appurtenances, are hereby included in the prices stipulated in Construction
Documents for said work.
12.4 Taxes. Contractor shall pay all applicable sales, consumer, use and other taxes required by law.
Contractor is responsible for reviewing the pertinent state statutes involving state taxes and complying with
all requirements.
ARTICLE 13.TERMINATION.
13.1. Termination for Convenience.In addition to other rights the City may have at law and pursuant to
the Contract Documents with respect to cancellation and termination of the Contract,the City may,in its sole
discretion,terminate for the City's convenience the performance of Work under this Contract, in whole or in
part, at any time upon written notice to the Contractor. The City shall effectuate such Termination for
Convenience by delivering to the Contractor a Notice of Termination for Convenience, specifying the
applicable scope and effective date of termination, which termination shall be deemed operative as of the
effective date specified therein without any further written notices from the City required. Such Termination
for Convenience shall not be deemed a breach of the Contract,and maybe issued by the City with or without
cause.
a. Upon receipt of such Notice of Termination for Convenience from the City, and except as
otherwise directed by the City, the Contractor shall immediately proceed with the following obligations,
regardless of any delay in determining or adjusting any amounts due under this Article:
i. Stop the Work specified as terminated in the Notice of Termination for Convenience;
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ii. Promptly notify all Subcontractors of such termination, cancel all contracts and purchase
orders to the extent they relate to the Work terminated to the fullest extent possible and take
such other actions as are necessary to minimize demobilization and termination costs for
such cancellations;
iii. Immediately deliver to the City all Project records, in their original/native electronic format
(i.e. CAD, Word, Excel, etc.), any and all other unfinished documents, and any and all
warranties and guaranties for Work,equipment or materials already installed or purchased;
iv. If specifically directed by the City in writing, assign to the City all right, title and interest of
Contractor under any contract, subcontract and/or purchase order, in which case the City
shall have the right and obligation to settle or to pay any outstanding claims arising from said
contracts,subcontracts or purchase orders;
v. Place no further subcontracts or purchase orders for materials,services,or facilities,except
as necessary to complete the portion of the Work not terminated(if any)under the Notice of
Termination for Convenience;
vi. As directed by the City, transfer title and deliver to the City (1) the fabricated and non-
fabricated parts, Work in progress, completed Work, supplies and other material produced
or required for the Work terminated; and (2) the completed or partially completed Project
records that, if this Contract had been completed,would be required to be furnished to the
City;
vii. Settle all outstanding liabilities and termination settlement proposals from the termination of
any subcontracts or purchase orders, with the prior approval or ratification to the extent
required by the City(if any);
•
viii. Take any action that may be necessary, or that the City may direct, for the protection and
preservation of the Project Site,including life safety and any property related to this Contract
that is in the Contractor's possession and in which the City has or may acquire an interest;
and
ix: Complete performance of the Work not terminated(if any).
b. Upon issuance of such Notice of Termination for Convenience, the Contractor shall only be
entitled to payment for the Work satisfactorily performed up until the date of its receipt of such Notice of
Termination for Convenience, but no later than the effective date specified therein. Payment for the Work
satisfactorily performed shall be determined by the City in good faith, in accordance with the percent
completion of the Work, less all amounts previously paid to the Contractor in approved Applications for
Payment, the reasonable costs of demobilization and reasonable costs, if any, for canceling contracts and
purchase orders with Subcontractors to the extent such costs are not reasonably avoidable by the Contractor.
Contractor shall submit, for the City's review and consideration, a final termination payment proposal with
substantiating documentation, including an updated Schedule of Values,within 30 days of the effective date
of termination,unless extended in writing by the City upon request.Such termination amount shall be mutually
agreed upon by the City and the Contractor and absent such agreement,the City shall, no less than fifteen
(15) days prior to making final payment, provide the Contractor with written notice of the amount the City
intends to pay to the Contractor. Such final payment so made to the Contractor shall be in full and final
settlement for Work performed under this Contract,except to the extent the Contractor disputes such amount
in a written notice delivered to and received by the City prior to the City's tendering such final payment.
13.2. Event of Default. The following shall each be considered an item of Default. If, after delivery of
written notice from the City to Contractor specifying such Default,the Contractor fails to promptly commence
and thereafter complete the curing of such Default within a reasonable period of time, not to exceed twenty-
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one (21)days, after the delivery of such Notice of Default, it shall be deemed an Event of Default, which
constitutes sufficient grounds for the City to terminate Contractor for cause:
a. Failing to perform any portion of the Work in a manner consistent with the requirements of the
Contract Documents or within the time required therein; or failing to use the Subcontractors, entities and
personnel as identified and to the degree specified, in the Contract Documents, subject to substitutions
approved by the City in accordance with this Contract and the other Contract Documents;
b. Failing,for reasons other than an Excusable Delay,to begin the Work required promptly following
the issuance of a Notice to Proceed;
c. Failing to perform the Work with sufficient manpower,workmen and equipment or with sufficient
materials, with the effect of delaying the prosecution of the Work in accordance with the Project Schedule
and/or delaying completion of any of the Project within the specified time;
d. Failing, for reasons other than an Excusable Delay, to timely complete the Project within the
specified time;
e. Failing and/or refusing to remove, repair and/or replace any portion of the Work as may be
rejected as defective or nonconforming with the terms and conditions of the Contract Documents;
f. Discontinuing the prosecution of the Work,except in the event of: 1)the issuance of a stop-work
order by the City; or 2)the inability of the Contractor to prosecute the Work because of an event giving rise
to an Excusable Delay as set forth in this Contract for which Contractor has provided written notice of same
in accordance with the Contract Documents;
g. Failing to provide sufficient evidence upon request that, in the City's sole opinion,demonstrates
the Contractor's financial ability to complete the Project;
h. An indictment is issued against the Contractor;
i. Failing to make payments to for materials or labor in accordance with the respective agreements;
j. Failing to provide the City with a Recovery Schedule in accordance with the Contract Documents;
k. Persistently disregarding laws, ordinances, or rules, regulations or orders of a public authority
having jurisdiction;
I. Fraud, misrepresentation or material misstatement by Contractor in the course of obtaining this
Contract;
m. Failing to comply in any material respect with any of the terms of this Contract or the Contract
Documents.
In no event shall the time period for curing a Default constitute an extension of the time for achieving
Substantial Completion or a waiver of any of the City's rights or remedies hereunder for a Default which is
not cured as aforesaid.
13.3. Termination of Contract for Cause.
a. The City may terminate the Contractor for cause upon the occurrence of an Event of Default as
defined herein, or for any other breach of the Contract or other Contract Documents by the Contractor that
the City, in its sole opinion,deems substantial and material,following written notice to the Contractor and the
failure to timely and properly cure to the satisfaction of the City in the time period set forth herein, or as
otherwise specified in the Notice of Default.
b. Upon the occurrence of an Event of Default, and without any prejudice to any other rights or
remedies of the City, whether provided by this Contract, the other Contract Documents or as otherwise
provided at law or in equity, the City may issue a Notice of Termination for Cause to Contractor, copied to
the Surety,rendering termination effective immediately,and may take any of the following actions,subject to
any prior rights of the Surety:
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i. Take possession of the Project Site and of all materials, equipment, tools, construction
equipment and machinery thereon owned by Contractor;
ii. Accept assignments of subcontracts;
iii. Direct Contractor to transfer title and deliver to the City(1)the fabricated and non-fabricated
parts,Work in progress,completed Work,supplies and other material produced or required
for the Work terminated; and (2)the completed or partially completed Project records that,
if this Contract had been completed,would be required to be furnished to the City;and
iv. Finish the Work by whatever reasonable method the City may deem expedient.
c. Upon the issuance of a Notice of Termination for Cause,the Contractor shall:
i. Immediately deliver to the City all Project records, in their original/native electronic format
(i.e.CAD,Word, Excel,etc.),any and all other unfinished or partially completed documents,
and any and all warranties and guaranties for Work,equipment or materials already installed
or purchased;
H. If specifically directed by the City in writing, assign to the City all right, title and interest of
Contractor under any contract, subcontract and/or purchase order, in which case the City
shall have the right and obligation to settle or to pay any outstanding claims arising from said
contracts,subcontracts or purchase orders;
iii. As directed by the City, transfer title and deliver to the City (1) the fabricated and non-
fabricated parts, Work in progress, completed Work, supplies and other material produced
or required for the Work terminated;and
iv. Take any action that may be necessary, or that the City may direct, for the protection and
preservation of the Project Site,including life safety and property related to this Contract that
is in the Contractor's possession and in which the City has or may acquire an interest.
d. All rights and remedies of the City's Termination rights herein shall apply to all Defaults that are
non-curable in nature,or that fail to be cured within the applicable cure period or are cured but in an untimely
manner,and the City shall not be obligated to accept such late cure.
13.4. Recourse to Performance and Payment Bond;Other Remedies.
a. Upon the occurrence of an Event of Default,and irrespective of whether the City has terminated
the Contractor, the City may (i) make demand upon the Surety to perform its obligations under the
Performance Bond and Payment Bond, including completion of the Work, without requiring any further
agreement(including, without limitation, not requiring any takeover agreement)or mandating termination of
Contractor as a condition precedent to assuming the bond obligations;or(ii)in the alternative,the City may
take over and complete the Work of the Project,or any portion thereof,by its own devices, by entering into a
new contract or contracts for the completion of the Work, or using such other methods as in the City's sole
opinion shall be required for the proper completion of the Work, including succeeding to the rights of the
Contractor under all subcontracts.
b. The City may also charge against the Performance and Payment Bond all fees and expenses
for services incidental to ascertaining,and collecting losses under the Performance and Payment Bond
including,without limitation,accounting,engineering,and legal fees,together with any and all costs incurred
in connection with renegotiation of the Contract.
13.5. Costs and Expenses.
47 1 General Conditions for Construction Contracts(April 13, 2020)
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a. All damages,costs and expenses,including reasonable attorney's fees, incurred by the City as
a result of an uncured Default or a Default cured beyond the time limits stated herein (except to the extent
the City has expressly consented, in writing,to the Contractor's late cure of such Default),together with the
costs of completing the Work, shall be deducted from any monies due or to become due to the Contractor
under this Contract,irrespective of whether the City ultimately terminates Contractor.
b. Upon issuing a Notice of Termination for Cause, the City shall have no obligation to pay
Contractor, and the Contractor shall not be entitled to receive,any money until such time as the Project has
been completed and the costs to make repairs and/or complete the Project have been ascertained by the
City. In case such cost and expense is greater than the sum which would have been due and payable to the
Contractor under this Contract for any portion of the Work satisfactorily performed, the Contractor and the
Surety shall be jointly and severally liable and shall pay the difference to the City upon demand.
13.6. Termination If No Default or Erroneous Default. If, after a Notice of Termination for Cause is
issued by the City, it is thereafter determined that the Contractor was not in default under the provisions of
this Contract,or that any delay hereunder was an Excusable Delay,the termination shall be converted to a
Termination for Convenience and the rights and obligations of the parties shall be the same as if the notice
of termination had been issued pursuant to the termination for convenience clause contained herein. The
Contractor shall have no further recourse of any nature for wrongful termination.
13.7. Remedies Not Exclusive. Except as otherwise provided in the Contract Documents, no remedy
under the terms of this Contract is intended to be exclusive of any other remedy, but each and every such
remedy shall be cumulative and shall be in addition to any other remedies,existing now or hereafter,at law,
in equity or by statute. No delay or omission to exercise any right or power accruing upon any Event of
Default shall impair any such right or power nor shall it be construed to be a waiver of any Event of Default
or acquiescence therein, and every such right and power may be exercised from time to time as often as
may be deemed expedient.
13.8. Materiality and Non-Waiver of Breach. Each requirement, duty, and obligation in the Contract
Documents is material. The City's failure to enforce any provision of this Contract shall not be deemed a
waiver of such provision or Amendment of this Contract. A waiver shall not be effective unless it is in writing
and approved by the City. A waiver of any breach of a provision of this Contract shall not be deemed a
waiver of any subsequent breach and the failure of the City to exercise its rights and remedies under this
Article at any time shall not constitute a waiver of such rights and remedies.
13.9. Contractor Right to Terminate Contract or Stop Work.If the Project should be stopped under an
order of any court or other public authority for a period of more than ninety(90)days due to no act or fault
of Contractor or persons or entities within its control, or if the City should fail to pay the Contractor any
material amount owing pursuant to an Approved Application for Payment in accordance with the Contract
Documents and after receipt of all supporting documentation required by the Contract Documents,and if the
City fails to make such payment within ninety(90) days after receipt of written notice from the Contractor
identifying the Approved Application for Payment for which payment is outstanding,then, unless the City is
withholding such payment pursuant to any provision of this Contract which entitles the City to so withhold
such payment,the Contractor shall have the right upon the expiration of the aforesaid ninety(90)day period
to stop its performance of the Work, provided that Contractor has sent a Notice to Cure to the City via
certified mail, allowing for a 7 day cure period. In such event, Contractor may terminate this Contract and
recover from City payment for all Work executed and reasonable expense sustained (but excluding
compensation for any item prohibited by any provisions of the Contract Documents). In the alternative to
termination,Contractor shall not be obligated to recommence the Work until such time as the City shall have
48 I General Conditions for Construction Contracts(April 13,2020)
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made payment to the Contractor in respect of such Approved Application for Payment, plus any actual and
reasonable related demobilization and start-up costs evidenced by documentation reasonably satisfactory
to the City. No act,event,circumstance or omission shall excuse or relieve the Contractor from the full and
faithful performance of its obligations hereunder and the completion of the Work as herein provided for.
ARTICLE 14. MISCELLANEOUS.
14.1. Separate Contracts.
14.1.1. The City reserves the right to perform construction or operations related to the Project with the City's
own forces,to award separate contracts to other contractors or subcontractors,and to permit third parties to
perform construction or operations in connection with other portions of the Project or other construction or
operations on the Project Site or adjacent to the Project Site. City reserves the right to let other contracts in
connection with this Project.Contractor shall afford other persons reasonable opportunity for the introduction
. and storage of their materials and the execution of their work and shall properly connect and coordinate this
Work with theirs.
14.1.2. If any part of Contractor's Work depends for proper execution or results upon the work of any other
persons, Contractor shall inspect and promptly report to Consultant any defects in such work that render it
unsuitable for such proper execution and results. Contractor's failure to inspect and report shall constitute
an acceptance of the other person's work as fit and proper for the reception of Contractor's Work,except as
to defects which may develop in other contractor's work after the execution of Contractor's Work.
14.1.3. Contractor shall conduct its operations and take all reasonable steps to coordinate the prosecution
of the Work so as to create no interference or impact on any other contractors,including the City's own forces,
on the site. Should such interference or impact occur,Contractor shall be liable to the affected contractor for
the cost of such interference or impact. Coordination with other contractors shall not be grounds for an
extension of time or any adjustment in the Contract Price. Contractor agrees that its pricing of the Work and
the determination of the Contract Price were expressly based upon the Contractor's assumption of the
foregoing cost risks
14.1.4. Contractor shall afford other contractors reasonable access to the Project Site for the execution of
their work. Following the request of the City or Consultant, the Contractor shall prepare a plan in order to
integrate the work to be performed by the City or by the other contractors with the performance of the Work,
and shall submit such plan to the City for approval.The Contractor shall arrange the performance of the Work
so that the Work and the work of the City and the other contractors are, to the extent applicable, properly
integrated,joined in an acceptable manner and performed in the proper sequence, so that any disruption or
damage to the Work or to any work of the City or of other contractors is avoided. To insure the proper
execution of subsequent work, Contractor shall inspect the work already in place and shall at once report to
Consultant any discrepancy between the executed work and the requirements of the Contract Documents.
14.2. Lands for Work.
14.2.1. City shall provide, as may be indicated in the Contract Documents,the lands upon which the Work
is to be performed, rights-of-way and easements for access thereto and such other lands as are designated
by City or the use of Contractor.
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14.2.2. Contractor shall provide,at Contractor's own expense and without liability to City,any additional land
and access thereto that may be required for temporary construction facilities, or for storage of materials.
Contractor shall furnish to City copies of written permission obtained by Contractor from the owners of such
facilities.
14.3. Assignment.Neither the City nor the Contractor shall assign its interest in this Contract without the
written consent of the other, except as to the assignment of proceeds. Notwithstanding the foregoing, City
may assign its interest in this Contract or any portion thereof to any local or state governmental body,special
taxing district,or any person authorized by law to construct or own the Project. Such assignee shall be bound
to comply with the terms of this Contract.
14.4. Rights of Various Interests. Whenever work being done by City's forces or by separate contractors
. is contiguous to or within the area where the Contractor will perform any of the Work pursuant to the Contract
Documents, , the respective rights of the various interests involved shall be established by the Contract
Administrator to secure the completion of the various portions of the work in general harmony.
14.5. Legal Restrictions and Traffic Provisions. Contractor shall conform to and obey all applicable
laws, regulations, or ordinances with regard to labor employed, hours of work and Contractor's general
operations. Contractor shall conduct its operations so as not to close any thoroughfare, nor interfere in any
way with traffic on railway, highways,or water,without the prior written consent of the proper authorities.
14.6. Value Engineering.Contractor may request substitution of materials,articles, pieces of equipment
or any changes that reduce the Contract Price by making such request to Consultant in writing after award
of contract. Consultant will be the sole judge of acceptability, and no substitute will be ordered, installed,
used or initiated without Consultant's prior written acceptance which will be evidenced by either a Change
Order or an approved Shop Drawing. However, any substitution accepted by Consultant shall not result in
any increase in the Contract Price or Contract Time. By making a request for substitution,Contractor agrees
to pay directly to Consultant all Consultant's fees and charges related to Consultant's review of the request
for substitution, whether or not the request for substitution is accepted by Consultant. Any substitution
submitted by Contractor must meet the form, fit, function and life cycle criteria of the item proposed to be
replaced and there must be a net dollar savings including Consultant review fees and charges. If a
substitution is approved,the net dollar savings shall be shared equally between Contractor and City and shall
be processed as a deductive Change Order.City may require Contractor to furnish at Contractor's expense
a special performance guarantee or other surety with respect to any substitute approved after award of the
Contract.
ANY REQUESTS FOR SUBSTITUTION MUST BE MADE TO THE CITY'S PROCUREMENT DIRECTOR,
WHO SHALL FORWARD SAME TO CONSULTANT.
14.7. No Interest.Any monies not paid by City when claimed to be due to Contractor under this Contract,
including, but not limited to, any and all claims for contract damages of any type, shall not be subject to
interest including,but not limited to prejudgment interest. However,the provisions of City's prompt payment
ordinance,as such relates to timeliness of payment,and the provisions of Section 218.74(4),Florida Statutes
as such relates to the payment of interest,shall apply to valid and proper invoices.
14.8. Proiect Sign.Any requirements for a project sign shall be paid by the Contractor as specified by
City Guidelines.
50 I General Conditions for Construction Contracts(April 13,2020)
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14.9. Availability of Project Site; Removal of Equipment.
14.9.1. Use of the Project Site or any other City-owned property or right-of-way for the purpose of storage
of equipment or materials,lay-down facilities, pre-cast material fabrication, batch plants for the production of
asphalt, concrete or other construction-related materials, or other similar activities, shall require advance
written approval by the Contract Administrator. The City may,at any time,in its sole and absolute discretion,
revoke or rescind such approval for any reason. Upon notice of such rescission, Contractor shall, within
twenty-four (24) hours, remove and relocate any such materials and equipment to a suitable, approved
location. Notwithstanding any other provision in the Contract Documents to the contrary,the conditions or
requirements of right-of-way permits established by the authorities having jurisdiction including, without
limitation any regulatory authorities of the City, shall take precedence over any provision in the Contract
Documents that may provide any right whatsoever to use of the Project Site for staging, material and
equipment storage, lay-down or other similar activities,
14.9.2. In case of termination of this Contract before completion for any cause whatever, Contractor, if
notified to do so by City, shall promptly remove any part or all of Contractor's equipment and supplies from
the property of City, failing which City shall have the right to remove such equipment and supplies at the
expense of Contractor.
14.10. Nondiscrimination. In connection with the performance of the Services, the Contractor shall not
exclude from participation in,deny the benefits of,or subject to discrimination anyone on the grounds of race,
color, national origin,sex,age,disability, religion, income or family status.
Additionally, Contractor shall comply fully with the City of Miami Beach Human Rights Ordinance,codified in
Chapter 62 of the City Code,as may be amended from time to time,prohibiting discrimination in employment,
housing, public accommodations,and public services on account of actual or perceived race,color,national
origin, religion, sex, intersexuality, gender identity, sexual orientation, marital and familial status, age,
disability,ancestry,height,weight,domestic partner status,labor organization membership,familial situation,
or political affiliation.
14.11. Project Records. City shall have the right to inspect and copy, at City's expense, the books and
records and accounts of Contractor which relate in any way to the Project, and to any claim for additional
compensation made by Contractor, and to conduct an audit of the financial and accounting records of
Contractor which relate to the Project and to any claim for additional compensation made by Contractor.
Contractor shall retain and make available to City all such books and records and accounts, financial or
otherwise, which relate to the Project and to any claim for a period of three (3) years following Final
Completion of the Project. During the Project and the three(3)year period following Final Completion of the
Project, Contractor shall provide City access to its books and records upon seventy-two (72) hours written
notice.
14.12. Performance Evaluations.An interim performance evaluation of the successful Contractor may be
submitted by the Contract Administrator during construction of the Project. A final performance evaluation
shall be submitted when the Request for Final Payment to the construction contractor is forwarded for
approval. In either situation, the completed evaluation(s) shall be forwarded to the City's Procurement
Director who shall provide a copy to the successful Contractor. Said evaluation(s)may be used by the City
as a factor in considering the responsibility of the successful Contractor for future bids with the City.
5 I I General Conditions for Construction Contracts(April 13,20201
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14.13. Public Entity Crimes.In accordance with the Public Crimes Act, Section 287.133, Florida Statutes,
a person or affiliate who is a contractor,consultant or other provider,who has been placed on the convicted
vendor list following a conviction for a public entity crime may not submit a bid on a contract to provide any
goods or services to the City, may not submit a bid on a contract with the City for the construction or repair
of a public building or public work, may not submit bids on leases of real property to the City, may not be
awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with the
City,and may not transact any business with the City in excess of the threshold amount provided in Section
287.017,Florida Statutes,for category two purchases for a period of 36 months from the date of being placed
on the convicted vendor list. Violation of this Section by Contractor shall result in cancellation of the City
purchase and may result in Contractor debarment.
14.14. Independent Contractor. Contractor is an independent contractor under this Contract. Services
provided by Contractor pursuant to this Contract shall be subject to the supervision of Contractor.In providing
such services, neither Contractor nor its agents shall act as officers,employees,or agents of the City.This
Contract shall not constitute or make the parties a partnership or joint venture. Contractor hereby accepts
complete responsibility as a principal for its agents, Subcontractors, vendors, materialmen, suppliers, their
respective employees, agents and persons acting for or on their behalf, and all others Contractor hires to
perform or to assist in performing the Work.
14.15. Third Party Beneficiaries. Neither Contractor nor City intends to directly or substantially benefit a
third party by this Contract. Therefore, the parties agree that there are no third party beneficiaries to this
Contract and that no third party shall be entitled to assert a claim against either of them based upon this
Contract. The parties expressly acknowledge that it is not their intent to create any rights or obligations in
any third person or entity under this Contract.
14.16. Severability. In the event a portion of this Contract is found by a court of competent jurisdiction to
be invalid, the remaining provisions shall continue to be effective unless City or Contractor elects to
terminate this Contract.An election to terminate this Contract based upon this provision shall be made within
seven(7)days after the finding by the court becomes final.
ARTICLE 15. INSPECTOR GENERAL AUDIT RIGHTS.
15.1 Pursuant to Section 2-256 of the Code of the City of Miami Beach,the City has established the Office
of the Inspector General which may, on a random basis, perform reviews, audits, inspections and
investigations on all City contracts,throughout the duration of said contracts. This random audit is
separate and distinct from any other audit performed by or on behalf of the City.
15.2 The Office of the Inspector General is authorized to investigate City affairs and empowered to review
past, present and proposed City programs, accounts, records, contracts and transactions. In
addition,the Inspector General has the power to subpoena witnesses, administer oaths, require the
production of witnesses and monitor City projects and programs. Monitoring of an existing City
projector program may include a report concerning whether the project is on time,within budget and
in conformance with the contract documents and applicable law. The Inspector General shall have
the power to audit, investigate, monitor, oversee, inspect and review operations, activities,
performance and procurement process including but not limited to project design,bid specifications,
(bid/proposal)submittals, activities of the Contractor, its officers, agents and employees, lobbyists,
City staff and elected officials to ensure compliance with the Contract Documents and to detect fraud
and corruption. Pursuant to Section 2-378 of the City Code,the City is allocating a percentage of its
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overall annual contract expenditures to fund the activities and operations of the Office of Inspector
General.
15.3 Upon ten(10)days written notice to the Contractor,the Contractor shall make all requested records
and documents available to.the Inspector General for inspection and copying.The Inspector General
is empowered to retain the services of independent private sector auditors to audit, investigate,
monitor, oversee, inspect and review operations activities, performance and procurement process
including but not limited to project design, bid specifications, (bid/proposal)submittals, activities of
the Contractor,its officers,agents and employees,lobbyists,City staff and elected officials to ensure
compliance with the contract documents and to detect fraud and corruption.
15.4 The Inspector General shall have the right to inspect and copy all documents and records in the
Contractor's possession,custody or control which in the Inspector General's sole judgment, pertain
to performance of the contract, including, but not limited to original estimate files, change order
estimate files,worksheets, proposals and agreements from and with successful subcontractors and
suppliers, all project-related correspondence, memoranda, instructions, financial documents,
construction documents, (bid/proposal) and contract documents, back-change documents, all
documents and records which involve cash,trade or volume discounts,insurance proceeds,rebates,
or dividends received,payroll and personnel records and supporting documentation for the aforesaid
documents and records.
15.5 The Contractor shall make available at its office at all reasonable times the records, materials, and
other evidence regarding the acquisition (bid preparation) and performance of this contract, for
• examination,audit,or reproduction, until three(3)years after final payment under this contract or for
any longer period required by statute or by other clauses of this contract. In addition:
i. If this contract is completely or partially terminated,the Contractor shall make available records
relating to the work terminated until three (3) years after any resulting final termination
settlement;and
ii. The Contractor shall make available records relating to appeals or to litigation or the settlement
of claims arising under or relating to this contract until such appeals, litigation, or claims are
finally resolved.
15.6 The provisions in this section shall apply to the Contractor, its officers, agents, employees,
subcontractors and suppliers. The Contractor shall incorporate the provisions in this section in all
subcontracts and all other agreements executed by the Contractor in connection with the
performance of this contract.
15.7 Nothing in this section shall impair any independent right to the City to conduct audits or investigative
activities. The provisions of this section are neither intended nor shall they be construed to impose
any liability on the City by the Contractor or third parties.
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MIAMIBEACH
SOLICITATION TERMS AND CONDITIONS - SERVICES
(April 13, 2020)
1.GENERAL DISCLAIMERS.
a.The solicitation referenced herein is being furnished to the recipient by the City of Miami Beach(the"City')for the recipient's convenience.
Any action taken by the City in response to Bids made pursuant to this solicitation,or in making any award,or in failing or refusing to make
any award pursuant to such Bids,or in cancelling awards,or in withdrawing or cancelling this solicitation,either before or after issuance of an
award,shall be without any liability or obligation on the part of the City.In its sole discretion,the City may withdraw the solicitation either before
• or after receiving bids,may accept or reject bids,and may accept bids which deviate from the solicitation,as it deems appropriate and in its
best interest.In its sole discretion,the City may determine the qualifications and acceptability of any party or parties submitting Bids in response
to this solicitation.
b.The information contained herein is provided solely for the convenience of prospective Bidders.It is the responsibility of the recipient to
assure itself that information contained herein is accurate and complete.The City does not provide any assurances as to the accuracy of any
information In this solicitation.Any reliance on these contents,or on any permitted communications with City officials,shall be at the recipient's
own risk.Bidders should rely exclusively on their own investigations,interpretations,and analyses.The solicitation is being provided by the
City without any warranty or representation, express or implied, as to its content, its accuracy, or its completeness. No warranty or
representation is made by the City or its agents that any Bid conforming to these requirements will be selected for consideration,negotiation,
or approval.
c.Bidders are hereby advised that this solicitation is subject to the following ordinances/resolutions(if applicable),which may be found on the
City Of Miami Beach website:https://www.miamibeachff.govlcity-hall/procuremenUprocurement-related-ordinance-and-procedures)
'CONE OF SILENCE—SECTION 2-486
'PROTEST PROCEDURES—CODE SECTION 2-371
•DEBARMENT PROCEEDINGS—SECTIONS 2-397 THROUGH 2-485.3
•LOBBYIST REGISTRATION AND DISCLOSURE OF FEES—SECTIONS 2-481 THROUGH 2-406
•CAMPAIGN CONTRIBUTIONS BY VENDORS—SECTION 2-487 •
'CAMPAIGN CONTRIBUTIONS —SECTION 2-488
'EQUAL BENEFITS FOR DOMESTIC PARTNERS—SECTION 2-373
'LIVING WAGE REQUIREMENT—SECTIONS 2-407 THROUGH 2-410
'FALSE CLAIMS ORDINANCE—SECTION 70-300
'ACCEPTANCE OF GIFTS,FAVORS&SERVICES—SECTION 2-449
2.PUBLIC ENTITY CRIME.A person or affiliate who has been placed on the convicted vendor list following a conviction for public entity crimes
may not submit a bid on a contract to provide any services to a public entity,may not submit a bid on a contract with a public entity for the
construction or repair of a public building or public work,may not submit a bid on leases of real property to public entity,may not be awarded or
perform work as a contractor,supplier,sub-contractor,or consultant under a contract with a public entity,and may not transact business with any
public entity in excess of the threshold amount provided in Sec.287.017,for CATEGORY TWO for a period of 36 months from the date of being
placed on the convicted vendor list.
3.COMPLIANCE WITH THE CITY'S LOBBYIST LAWS.This solicitation is subject to,and all bidders are expected to be or become familiar
with,all City lobbyist laws.Bidders shall be solely responsible for ensuring that all City lobbyist laws are complied with,and shall be subject to
any and all sanctions,as prescribed therein,including,without limitation,disqualification of their responses,in the event of such non-compliance.
4.DEBARMENT ORDINANCE:This solicitation is subject to,and all bidders are expected to be or become familiar with,the City's Debarment
Ordinance as codified in Sections 2-397 through 2-406 of the City Code.
5.COMPLIANCE WITH THE CITY'S CAMPAIGN FINANCE REFORM LAWS.This solicitation is subject to,and all bidders are expected to be
or become familiar with,the City's Campaign Finance Reform laws,as codified in Sections 2-487 through 2-490 of the City Code.Bidders shall.
be solely responsible for ensuring that all applicable provisions of the City's Campaign Finance Reform laws are complied with,and shall be
subject to any and all sanctions,as prescribed therein,including disqualification of their responses,in the event of such non-compliance.
6.CODE OF BUSINESS ETHICS.Pursuant to City Resolution No.2000-37379,the bidder shall adopt a Code of Business Ethics("Code")and
submit that Code to the Procurement Division with its response or within five(5)days upon receipt of request The Code shall,at a minimum,
require the bidder,to comply with all applicable governmental rules and regulations including,among others,the conflict of interest,lobbying and
ethics provision of the City of Miami Beach and Miami Dade County.
7.AMERICANS WITH DISABILITIES ACT(ADA).Call 305-673-7490 to request material in accessible format;sign language interpreters(five
(5)days in advance when possible),or information on access for persons with disabilities.For more information on ADA compliance,please call
the Public Works Department,at 305-673-7000,Extension 2984.
8.POSTPONEMENT OF DUE DATE FOR RECEIPT OF BIDS.The City reserves the right to postpone the deadline for submittal of bids and will
I l Solicitation Terms and Conditions—Services)April 13,2020)
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MIAMIBEACH
SOLICITATION TERMS AND CONDITIONS - SERVICES
(April 13, 2020)
make a reasonable effort to give at least three(3)calendar days written notice of any such postponement to all prospective bidders through
BidSync.
9.PROTESTS.Any protest concerning the specifications or award of this solicitation shall be in accordance with City Code Section 2-371.
Protests not submitted in a timely manner pursuant to the requirements of City Code Section 2.371 shall be barred.
10.JOINT VENTURES I SINGLE,PURPOSE ENTITY. Joint Ventures are not allowed.Bids shall be submitted only by the prime contractor.Bids
may,however,identify other sub-contractors or sub-consultants to the prime Bidder who may serve as team members.
11.VETERAN BUSINESS ENTERPRISES PREFERENCE.Pursuant to City Code Section 2-374,the City shall give a preference to a responsive
and responsible Bidder which is a small business concern owned and controlled by a veteran(s)or which is a service-disabled veteran business
enterprise,and which is within five percent(5%)of the lowest responsive,responsible bidder,by providing such bidder an opportunity of providing
said contractual services for the lowest responsive bid amount(or in this solicitation,the highest bid amount).Whenever,as a result of the
foregoing preference,the adjusted prices of two(2)or more bidders which are a small business concern owned and controlled by a veteran(s)
or a service-disabled veteran business enterprise constitute the lowest bid pursuant to an solicitation or oral or written request for quotation,and
such bids are responsive,responsible and otherwise equal with respect to quality and service,then the award shall be made to the service-
disabled veteran business enterprise.
12.AGREEMENT BY BIDDERS.Any individual that submits a bid in response to this solicitation agrees that any action taken by the City in
response to bids made pursuant to this solicitation,or in making any award,or in failing or refusing to make any award pursuant to such Bids,or
in cancelling awards,or in withdrawing or cancelling this solicitation,either before or after issuance of an award,shall be without any liability or
obligation on the part of the City.
The City may,at its sole and absolute discretion,reject any and all,or parts of any and all,responses;re-advertise this solicitation;postpone or
cancel,at any time,this solicitation process;or waive any irregularities in this solicitation,or in any responses received as a result of this
solicitation.
Reasonable efforts will be made to either award the bidder the contract or reject all bids within one-hundred twenty(120)calendar days after Bid
opening date.In accordance with Section 47 below,a bidder may withdraw its bid after expiration of one hundred twenty(120)calendar days
from the date of bid opening,by delivering written notice of withdrawal to the Procurement Department.
13.COSTS INCURRED BY BIDDERS.All expenses involved with the preparation and submission of Bids,or any work performed in connection
therewith,shall be the sole responsibility(and shall be at the sole cost and expense)of the bidder,and shall not be reimbursed by the City.
14.OCCUPATIONAL HEALTH AND SAFETY.The bidder warrants to the City that any work,services,supplies,materials or equipment supplied
pursuant to this bid shall conform in all respects to the standards set forth in the Occupational Safety and Health Act of 1970,as amended,and
the failure to comply with this condition will be deemed breach of contract.Any fines levied because of inadequacies to comply with this condition
shall be borne solely by the bidder.
15.TAXES.The City of Miami Beach is exempt from all Federal Excise and State taxes.
16.MISTAKES.Bidders are expected to examine the terms,conditions,specifications,delivery schedules,proposed pricing,and all instructions
pertaining to the services relative to this solicitation. Failure to do so will be at the Bidder's risk and may result in the Bid being non-responsive.
17. PAYMENT. Payment will be made by the City after the services have been received, inspected, and found to comply with contract
specifications,free of damage or defect,and are properly invoiced.
18. PATENTS&ROYALTIES. Bidder shall indemnify and save harmless the City of Miami Beach, Florida, and its officers, employees,
contractors,andlor agents,from liability of any nature or kind,including cost and expenses for,or on account of,any copyrighted,patented,or
unpatented invention,process,or article manufactured or used in the performance of the contract,including its use by the City of Miami Beach,
Florida. If the bidder uses any design,device or materials covered by letters,patent,or copyright,it is mutually understood and agreed,without
exception,that the Bid prices shall include all royalties or cost arising from the use of such design,device,or materials in any way involved in the
work.
19.DEFAULT.Failure or refusal of the successful Bidder to execute a contract following approval of such contract by the City Commission„or
untimely withdrawal of a bid response before such award is made and approved,may result in a claim for damages by the City,and may be
grounds for removing the Bidder from the City's vendor list.
20.MANNER OF PERFORMANCE.Bidder agrees to perform its duties and obligations in a professional manner and in accordance with all
applicable Local,State,County,and Federal laws,rules,regulations and codes.Lack of knowledge or ignorance by the bidder with/of applicable
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laws will in no way be a cause for relief from responsibility.Bidder agrees that the work and services provided shall be provided by employees
that are educated,trained,experienced,certified,and licensed in all areas encompassed within their designated duties. Bidder agrees to furnish
to the City any and all documentation,certification,authorization,license,permit,or registration currently required by applicable laws,rules,and
regulations. Bidder further certifies that it and its employees will keep all licenses,permits,registrations,authorizations,or certifications required
by applicable laws or regulations in full force and effect during the term of this contract Failure of bidder to comply with this paragraph shall
constitute a material breach of this contract
21.SPECIAL CONDITIONS.Any and all Special Conditions that may vary from these General Terms and Conditions shall have precedence.
22.NON-DISCRIMINATION.The bidder certifies that it is in compliance with the non-discrimination clause contained in Section 202,Executive
Order 11246,as amended by Executive Order 11375,relative to equal employment opportunity for all persons without regard to race,color,
religion,sex or national origin.In accordance with the City's Human Rights Ordinance,codified in Chapter 62 of the City Code,bidder shall
prohibit discrimination by reason of race,color,national origin,religion,sex,intersexuality,gender identity,sexual orientation,disability,marital
and familial status,age,ancestry,height,weight,domestic partner status,labor organization membership,familial situation,and political affiliation.
23.DEMONSTRATION OF COMPETENCY.
A. Pre-award inspection of the Bidder's facility may be made prior to the award of contract
B. Bids will only be considered from firms which are regularly engaged in the business of providing the goods as described in this solicitation.
C. Bidders must be able to demonstrate a good record of performance for a reasonable period of time,and have sufficient financial capacity,
equipment,and organization to ensure that they can satisfactorily perform the services if awarded,a contract under the terms and conditions
of this solicitation.
D. The terms"equipment and organization°,as used herein shall,be construed to mean a fully-equipped and well-established company in line
with the best business practices in the industry,and as determined by the City.
E. The City may consider any evidence available regarding the financial,technical,and other qualifications and abilities of a bidder,including
past performance(experience),in making an award that is in the best interest of the City.
F. The City may require bidder to show proof that it has been designated as authorized representatives of a manufacturer or supplier,which
is the actual source of supply. In these instances,the City may also require material information from the source of supply regarding the
quality,packaging,and characteristics of the products to be supply to the City. Any material conflicts between information provided by the
source of supply and the information contained in the bidder's bid may render the bid non-responsive.
G. The City may,during the period that the contract between the City and the successful bidder is in force,review the successful bidder's
record of performance to ensure that the bidder is continuing to comply with contractual obligations as prescribed in this bid. Irrespective
of the bidder's performance on contracts awarded to it by the City,the City may place said contracts on probationary status and implement
termination procedures if the City determines that the successful bidder no longer possesses the financial support, equipment, and
organization which would have been necessary during the bid evaluation period in order to comply with the demonstration of competency
required under this subsection.
24.ASSIGNMENT.The successful Bidder shall not assign,transfer,convey,sublet or otherwise dispose of the contract,including any or all of
its right,title or interest therein,or his/her or its power to execute such contract,to any person,company or corporation,without the prior written
consent of the City.
25.LAWS,PERMITS AND REGULATIONS.The bidder shall obtain and pay for all licenses,permits,and inspection fees required to complete
the work and shall comply with all applicable laws.
26.OPTIONAL CONTRACT USAGE.When the successful Bidder is in agreement,other units of government or non-profit agencies may
participate in purchases pursuant to the award of this contract at the option of the unit of government or non-profit agency.
27.VOLUME OF WORK.To the extent applicable,it is the intent of the City to purchase the services specifically listed in this solicitation.
However,the City reserves the right to purchase any services awarded from State or other governmental contracts,or on an as-needed basis
through the City's spot market purchase provisions.
28.DISPUTES.In the event of a conflict between the documents,the order of priority of the documents shall be as follows:
A. Any contract or agreement resulting from the award of this solicitation;then
B. Addendum issued for this solicitation,with the latest Addendum taking precedence;then
C. The solicitation;then
D. The bidder's bid in response to the solicitation.
In case of any doubt or difference of opinion as to the items and/or services(as the case may be)to be furnished hereunder,the decision of the
City shall be final and binding on all parties.
29.INDEMNIFICATION.The Bidder shall indemnify and hold harmless the City and its officers,employees,agents and instrumentalities from
any and all liability,losses or damages,including attorney's fees and costs of defense,which the City or its officers,employees, agents or
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instrumentalities may incur as a result of claims,demands,suits,causes of actions or proceedings of any kind or nature arising out of,relating to •
•
or resulting from the performance of the agreement by the Bidder or its employees,agents,servants,partners,principals or subcontractors. The
Bidder shall pay all claims and losses in connection therewith,and shall investigate and defend all claims,suits or actions of any kind or nature
In the name of the City,where applicable,including appellate proceedings,and shall pay all costs,judgments,and attorney's fees which may be
incurred thereon. The Bidder expressly understands and agrees that any insurance protection required by any agreement with the City or
otherwise provided by the Bidder shall in no way limit the responsibility to indemnify,keep and save harmless and defend the City or its officers,
employees,agents and instrumentalities as herein provided.The above indemnification provisions shall survive the expiration or termination of
this Agreement.
•
30.FLORIDA PUBLIC RECORDS LAW.Bidders are hereby notified that all bids including,without limitation,any and all information and
documentation submitted therewith,are exempt from public records requirements under Section 119.07(1),Florida Statutes,and s.24(a),Art.1
of the State Constitution until such time as the City provides notice of an intended decision or until thirty(30)days after opening of the bids,
whichever is earlier.Additionally,Bidder agrees to be in full compliance with Florida Statute 119.0701 including,but not limited to,agreement to
(a) Keep and maintain public records that ordinarily and necessarily would be required by the public agency in order to perform the services;
(b)provide the public with access to public records on the same terms and conditions that the public agency would provide the records and at a
cost that does not exceed the cost provided in this chapter or as otherwise provided by law;(c)Ensure that public records that are exempt or
confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law;(d)Meet all requirements for
retaining public records and transfer,at no cost,to the public agency all public records in possession of the Bidder upon termination of the contract
and destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements.All records
stored electronically must be provided to the public agency in a format that is compatible with the information technology systems of the public
agency.
31.OBSERVANCE OF LAWS.Bidders are expected to be familiar with,and comply with,all Federal,State,County,and City laws,ordinances,
codes,rules and regulations,and all orders and decrees of bodies or tribunals having jurisdiction or authority which,in any manner,may affect
the scope of services and/or project contemplated by this solicitation(including,without limitation,the Americans with Disabilities Act,Title VII of
the Civil Rights Act,the EEOC Uniform Guidelines,and all EEO regulations and guidelines).Ignorance of the law(s)on the part of the Bidder will
• In no way relieve it from responsibility for compliance.
32.CONFLICT OF INTEREST.All bidders must disclose,in their Bid,the name(s)of any officer,director,agent,or immediate family member
(spouse,parent,sibling,and child)who is also an employee of the City of Miami Beach. Further,all bidders must disclose the name of any City
employee who owns,either directly or indireciy,an interest of ten(10%)percent or more in the bidder entity or any of its affiliates.
33.MODIFICATION/WITHDRAWALS OF BIDS.A bidder may submit a modified bid to replace all or any portion of a previously submitted Bid
up until the Bid due date and time. Modifications received after the bid due date and time will not be considered.Bids shall be irrevocable until
contract award unless withdrawn in writing prior to the bid due date,or after expiration of 180 calendar days from the opening of Bids without a
contract award. Letters of withdrawal received after the Bid due date and before said expiration date,and letters of withdrawal received after
contract award will not be considered.
34.EXCEPTIONS TO SOLICITATION.Bidders must clearly indicate any exceptions they wish to take to any of the terms in the solicitation,and
outline what,if any,alternative is being offered. All exceptions and alternatives shall be included and clearly delineated,in writing,in the bid
submittal. The City,at its sole and absolute discretion,may accept or reject any or all exceptions and alternatives. In cases in which exceptions
and alternatives are rejected,the City shall require the bidder to comply with the particular term and/or condition of the solicitation to which bidder
took exception to(as said term and/or condition was originally set forth in the solicitation and any exhibits or Addenda thereto).
35.ACCEPTANCE OF GIFTS,FAVORS,SERVICES, Bidders shall not offer any gratuities,favors,or anything of monetary value to any official,
employee,or agent of the City,for the purpose of influencing consideration of this Bid. Pursuant to Sec.2-449 of the City Code,no officer or
employee of the City shall accept any gift,favor or service that might reasonably tend improperly to influence him in the discharge of his official
duties.
36.SUPPLEMENTAL INFORMATION.City reserves the right to request supplemental information from bidders at any time during the solicitation
process,unless otherwise noted herein.
37.ENVIRONMENTAL REGULATIONS.The City reserves the right to consider a Bidder's history of citations and/or violations of environmental
regulations in investigating a Bidder's responsibility,and further reserves the right to declare a Bidder not responsible if the history of violations
warrants such determination in the opinion of the City.Bidder shall submit with its proposal,a complete history of all citations and/or violations,
notices and dispositions thereof.The non-submission of any such documentation shall be deemed to be an affirmation by the Bidder that there
are no citations or violations.Bidder shall notify the City immediately of notice of any citation or violation which bidder may receive after the
proposal opening date and during the time of performance of any contract awarded to it.
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38.RELATIONSHIP TO THE CITY.It is the Intent of the City,and Bidder's hereby acknowledge and agree,that the successful Bidder is considered to
be an independent contractor,and that neither the Bidder,nor the Bidder's employees,agents,and/or contractors,shall,under any circumstances,be
considered employees or agents of the City.
39.INSPECTOR GENERAL AUDIT RIGHTS
A. Pursuant to Section 2-256 of the Code of the City of Miami Beach,the City has established the Office of the Inspector General which
may,on a random basis,perform reviews,audits,Inspections and investigations on all City contracts,throughout the duration of said
contracts. This random audit is separate and distinct from any other audit performed by or on behalf of the City.
B. The Office of the Inspector General is authorized to investigate City affairs and empowered to review past,present and proposed City
programs,accounts,records,contracts and transactions.In addition,the Inspector General has the power to subpoena witnesses,
administer oaths,require the production of witnesses and monitor City projects and programs.Monitoring of an existing City project
or program may include a report concerning whether the project is on time,within budget and in conformance with the contract
documents and applicable law.The Inspector General shall have the power to audit,investigate,monitor,oversee,inspect and review
operations, activities, performance and procurement process including but not limited to project design, bid specifications,
(bid/proposal)submittals,activities of the Contractor,its officers,agents and employees,lobbyists,City staff and elected officials to
ensure compliance with the Contract Documents and to detect fraud and corruption. Pursuant to Section 2-378 of the City Code,the
City is allocating a percentage of its overall annual contract expenditures to fund the activities and operations of the Office of Inspector
General.
C. Upon ten(10)days written notice to the Contractor,the Contractor shall make all requested records and documents available to the
Inspector General for inspection and copying.The Inspector General is empowered to retain the services of independent private sector
auditors to audit, investigate, monitor,oversee, inspect and review operations activities, performance and procurement process
including but not limited to project design,bid specifications,(bid/proposal)submittals,activities of the Contractor,its officers,agents
and employees,lobbyists,City staff and elected officials to ensure compliance with the contract documents and to detect fraud and
corruption.
D. The Inspector General shall have the right to inspect and copy all documents and records in the Contractor's possession,custody or
control which in the Inspector General's sole judgment,pertain to performance of the contract,including,but not limited to original
estimate files,change order estimate files,worksheets,proposals and agreements from and with successful subcontractors and
suppliers,all project-related correspondence,memoranda,instructions,financial documents,construction documents,(bid/proposal)
and contract documents, back-change documents, all documents and records which involve cash, trade or volume discounts, ,
insurance proceeds,rebates,or dividends received,payroll and personnel records and supporting documentation for the aforesaid
documents and records.
E. The Contractor shall make available at its office at all reasonable times the records,materials,and other evidence regarding the
acquisition(bid preparation)and performance of this contract,for examination,audit,or reproduction,until three(3)years after final
payment under this contract or for any longer period required by statute or by other clauses of this contract.In addition:
i. If this contract is completely or partially terminated,the Contractor shall make available records relating to the work terminated
until three(3)years after any resulting final termination settlement;and
ii. The Contractor shall make available records relating to appeals or to litigation or the settlement of claims arising under or relating
to this contract until such appeals,litigation,or claims are finally resolved.
• F. The provisions in this section shall apply to the Contractor, its officers, agents, employees, subcontractors and suppliers. The
Contractor shall incorporate the provisions in this section in all subcontracts and all other agreements executed by the Contractor in
connection with the performance of this contract.
G. Nothing in this section shall impair any independent right to the City to conduct audits or investigative activities.The provisions of this
section are neither intended nor shall they be construed to impose any liability on the City by the Contractor or third parties.
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