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Risk Management Agreement CONSTRUCTION MANAGEMENT AT RISK AGREEMENT FOR THE CONSTRUCTION OF A NEW FIRE STATION, RENOVATION OF THE EXISTING FIRE STATION #2 INTO ADMINISTRATIVE OFFICES AND COMPLETION OF THE SITE DRAINAGE SYSTEM CONTRACT made the 6th day of July ,2004 BY AND BETWEEN: City of Miami Beach, a political subdivision of the State of Florida (CITY) and Jasco Construction Company, Inc. (CONTRACTOR). Proiect Summary The following summary (the "Project Summary") identifies the construction project which is the subject of this Contract, including certain financial terms and deadlines, All terms in this Project Summary are more fully defined or referenced in Article 1 of the General Conditions. The Project is: and PHASE I: THE CONSTRUCTION OF A NEW FIRE STATION #2, COMPLETION OF THE SITE DRAINAGESYSTEM; and PHASE II: RENOVATION OF THE EXISTING FIRE STATION #2 INTO ADMINISTRATIVE OFFICES The CONTRACT ADMINISTRATOR is: CAPITAL IMPROVEMENT PROJECTS OFFICE DIRECTOR OR HIS DESIGNEE The CONSULTANT is: STAARCHITECTURAL GROUP,INC. The Contract Time is: PHASE I IS TO BE SUBSTANTIALLY COMPLETED WITHIN 390 DAYS FROM ISSUANCE OF THE SECOND NOTICE TO PROCEED AND COMPLETED WITHIN 30 DAYS FROM THE DATE CERTIFIED AS DATE OF SUBSTANTIAL COMPLETION OF PHASE I. PHASE II IS TO BE SUBSTANTIALLY COMPLETED WITHIN 270 DAYS FROM THE DATE OF FINAL COMPLETION OF PHASE I, WITH FINAL COMPLETION OF PHASE II WITHIN 30 DAYS FROM THE DATE CERTIFIED AS THE DATE OF SUBSTANTIAL COMPLETION OF PHASE II. Contract 1 ARTICLE 1 THE PROJECT TEAM 1 The Project Team includes the CONTRACTOR, the CONTRACT ADMINISTRATOR, and the CONSULTANT, all of whom shall work jointly and cooperatively during the construction and warranty period. 1.2 The CONTRACTOR accepts the relationship of trust and confidence established between it and the CITY by this Contract. CONTRACTOR covenants with the CITY to furnish its best skill and judgment and to cooperate with the other members of the Project Team in furthering the interests of the CITY. CONTRACTOR agrees to provide efficient business administration and superintendence, and to use its best efforts to complete the Project in the most expeditious and economical manner, consistent with the CITY's interests. 1.3 Entire Aqreement: Severabilitv: Amendments: This Contract includes and incorporates the General Conditions and all of the Contract Documents identified in the General Conditions, and all prior negotiations, correspondence, conversations, agreements, and understandings applicable to the matters contained herein. The parties agree that there are no commitments, agreements or understandings concerning the subject matter of this Contract that are not contained in the Contract Documents. Accordingly, the parties agree that no deviation from the terms hereof shall be predicated upon any prior representations or agreements, whether oral or written, except as specifically set forth in Article 1.4. It is further agreed that no modification, amendment or alteration in the terms or conditions contained herein shall be effective unless contained in a written document executed in accordance with this Contract. In the event any provision of the Contract Documents shall be found by a court of competent jurisdiction to be invalid or otherwise unenforceable, the remainder of this Contract shall not be affected thereby and each remaining provision, term, covenant or condition of the Contract Documents shall continue to be effective. 1.4 Incorporation of Pre-Construction Services Aqreement: The CITY and CONTRACTOR are parties to that certain agreement, dated April 18th, 2001, entitled "Agreement for Pre-Construction Services between the City of Miami Beach, Florida, and Jasco Construction Company for Construction Management at Risk Services pursuant to RFQ No. 117-99/00, entitled 'Construction Management at Risk for the Fire Station No.2 Renovation and Expansion'" (hereinafter referred to as the Pre-Construction Services Agreement). The Pre-Construction Services Agreement contemplates that when the CITY accepts the Guaranteed Maximum Price proposed by CONTRACTOR for the Contract 2 Project, then the CITY and CONTRACTOR shall execute a "GMP Amendment", accepting and establishing the GMP and more specifically delineating the respective responsibilities of the CITY and CONTRACTOR with respect to the construction of the Project. At its regular meeting on December 10th, 2003, the Mayor and City Commission accepted the GMP for the Project, subject to the negotiation of a comprehensive Construction Management at Risk Agreement to proceed with construction of the Project. To that end, CITY and CONTRACTOR have negotiated this Contract and the attached General Conditions which shall, upon execution by CITY and CONTRACTOR, supercede and replace, in its entirety, that certain draft agreement entitled the "GMP Amendment", referred to and attached as Exhibit "8" of the Pre- Construction Services Agreement. As to the Project, as defined in this Contract and General Conditions, the following definitions, terms and conditions contained within the Pre-Construction Services Agreement are modified and herein amended to the extent provided below. Said modifications and/or amendments to the Pre-Construction Agreement shall be superceded by this Contract and the General Conditions: 1.) Article 1 of the Pre-Construction Services Agreement entitled, "Definitions", is deleted in its entirety. The Definitions in the Contract Documents (the General Conditions), shall control. 2.) Any reference to "Architect/Engineer" in the Pre-Construction Services Agreement shall be amended and deemed to refer to "CONSULTANT', as defined in the Contract Documents (General Conditions). 3.) Any reference to "Construction Manager (CM)" orto "General Contractor" in the Pre-Construction Services Agreement shall be amended and deemed to refer to "CONTRACTOR", as defined in the Contract Documents (General Conditions). 4.) Any reference to "GMP Amendment" in the Pre-Construction Services Agreement is amended and deemed to refer to this Contract and the General Conditions, and all exhibits and amendments thereto. 5.) The following Articles are deleted in their entirety from the Pre- Construction Services Agreement, and shall hereinafter be superceded by the Contract and General Conditions: Contract 3 Article II - deleted in its entirety Article 3.2 - deleted in its entirety Article VI - deleted in its entirety, except for Articles 6.3 and 6.3.1 Article VII - deleted in its entirety Article VIII - deleted in its entirety 6,) Attachments I - V of the Pre-Construction Services Agreement are herein ratified, incorporated and made a part of this Contract and the General Conditions. 7.) Section 1.46, entitled Force Majeure, is incorporated in its entirety. In the event of a conflict between terms contained in the Pre-Construction Agreement and those in the Contract Documents, or any of the documents attached or incorporated herein, the precedence will be given to that term which allows the CITY to enforce the Contract Documents in the strictest possible terms. Nothing in this Agreement shall be deemed to modify, amend, or otherwise alter the terms and conditions of that certain Agreement between CITY and CONTRACTOR entitled "Construction Management at Risk Agreement for the 25th Street Water Tanks and Pump Station Project", dated March 19,2003. ARTICLE 2 THE WORK 2.1 The CONTRACTOR shall perform all of the Work required by the Contract Documents as generally described below and as shall be revised or added to from time to time to reflect clarifications and approved changes. 2.2 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. 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 within the GMP, whether or not specifically called for. The Contract Documents shall be interpreted so as to eliminate inconsistencies or conflicts, but in the event of any conflict, requirements for greater quantity and/or more expensive work shall govern. When words which have a well-known technical or trade meaning are used to describe work, materials or equipment, such words shall be interpreted in accordance with that meaning. Reference to standard specifications, manuals, or codes of any technical society, organization or association, or to the laws or regulations of any governmental authority, whether such reference be specific or by implication, shall mean the latest standard specification, manual, code or laws or regulations in effect at the time of Contract 4 execution of this Contract. CITY shall have no duties other than those duties and obligations expressly set forth within the Contract Documents. 2.3 The CONTRACTOR agrees that the Work shall be performed in a good and professional manner, free from defects in materials and workmanship, and that all Materials shall be new and approved by or acceptable to the CITY, except as otherwise expressly provided for in the Contract Documents, The CONTRACTOR shall cause all Materials and other parts of the Work to be readily available as and when required or needed for or in connection with the construction, furnishing and equipping of the improvements. ARTICLE 3 MANAGING GENERAL CONTRACTOR'S SERVICES 3.1 The services of the CONTRACTOR shall include, but are not limited to, those described or specified herein, The services described herein shall not be deemed to constitute a comprehensive specification having the effect of excluding services not specifically mentioned. 3.2 Contractor's Duties and Responsibilities [Note: Refer to Article IV of the Pre-Construction Services Agreement, which is incorporated herein as if fully set forth] 3.3 Post-Construction Phase - CONTRACTOR shall coordinate Project close-out, commencement of use or operations and transition to occupancy by the CITY. CONTRACTOR shall cooperate fully and promptly with preparation of Certificates of Substantial and Final Completion, and complete all remaining work and punch list work promptly. CONTRACTOR shall review all warranties, operation manuals and maintenance manuals for completeness and compliance with the Contract Documents, have them corrected, if necessary, and transmit them to CITY. Transmittal of warranties, operations manuals and maintenance manuals to CITY shall constitute evidence of CONTRACTOR's warranty of completeness and compliance of same to the Contract Documents. 3.4 Warranty Phase - CONTRACTOR shall comply with requirements of Articles 32 and 33 of the General Conditions, CONTRACTOR shall participate with CITY representatives in warranty inspections in the 6th and 11 th months after Substantial Completion, and shall coordinate all warranty and service work. Contract 5 ARTICLE 4 CONTRACT TIME 4.1 Time is of the essence for the CONTRACTOR'S performance of the Work pursuant to this Contract. The CONTRACTOR agrees to complete the Work in accordance with the Progress Schedule and to achieve Substantial Completion of each Phase the Work, in accordance with this Contract, and within the Contract time. CONTRACTOR acknowledges that failure to achieve Substantial Completion will result in substantial damages to the CITY, including, but not limited to, loss of beneficial use and/or occupancy of the Project. Completion of the Work for each Phase shall be achieved no later than thirty (30) calendar days after issuance of a Certificate of Substantial Completion by the CONSULTANT for the particular Phase. 4.2 CONTRACTOR shall be instructed to commence the Work for each Phase of the Project by written instructions in the form of a Purchase Order issued by the CITY's Procurement Director and Notices to Proceed issued by the CONTRACT ADMINISTRATOR. Two Notices to Proceed will be issued for each Phase of 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 second Notice to Proceed and Purchase Order will not be issued until CONTRACTOR submits to CITY all required documents in satisfactory form and after execution of the Contract by both parties. 4.2.1. The receipt of all necessary permits by CONTRACTOR and acceptance of the full Progress Schedule in accordance with technical specifications section, submittal schedule and schedule of values is a condition precedent to the issuance of the second Notice to Proceed to mobilize on the Project site and commence with physical construction work. CITY, through its CONSULTANT shall use its best efforts to review CONTRACTOR'S submittals within thirty (30) calendar days. 4.3 Time is of the essence throughout this Contract. Phase I of the Work is to be substantially completed within 390 calendar days from issuance of the second Notice to Proceed, and final completion, as evidenced by the issuance of a Final Certificate of Completion by CONSULTANT, shall be accomplished within 30 calendar days from the date certified as the date of Substantial Completion of Phase I. Phase 1\ is to be substantially completed within 330 calendar days from the date of substantial completion of the Site Work for Phase I, and completed and ready for issuance of a Final Certificate of Completion by CONSULTANT within (30) calendar days from the date certified by CONSULTANT as the date of Substantial Completion of Phase I\. Site Work for both Phases shall be substantially completed 30 calendar days after the completion of each building construction. Final Contract 6 completion of all of the Site Work shall be achieved within 30 calendar days from the date certified as Substantial Completion of Phase II. In addition, there will be a period of 30 calendar days between Phase I Final Completion and the issuance of the Second Notice to Proceed for Phase II for which CONTRACTOR shall not be responsible. This period will be used by the CITY'S Fire Department to effectuate their move from the existing historical building to the new fire station facility. 4.4 It is understood that Phase I and Phase II of the Project are to be invoiced and paid for separately in accordance with Article 6. Upon certification of Final Completion by CONSULTANT of a particular Phase, the final payment for that Phase, including the retainage for that portion of the Work will be paid to CONTRACTOR. Separate invoices and pay requisitions shall be submitted for Phase I and Phase II Work. 4.5 Upon failure of CONTRACTOR to substantially complete the Work within the specified period of time, plus any approved time extensions for Phase I, CONTRACTOR shall pay to the CITY the sum of One Thousand Five Hundred and 00/100 Dollars ($1,500.00) for each calendar day after the time period specified in Article 4.3 (plus any approved time extensions) for Substantial Completion. After Substantial Completion of Phase I, should CONTRACTOR fail to complete the remaining Work within ten (10) calendar days after said thirty (30) calendar day period for completion and readiness for final payment, CONTRACTOR shall pay to CITY the sum of Two Thousand and 00/100 Dollars ($ 2,000.00) for each calendar day after said ten (10) calendar day period, for completion and readiness for final payment. 4.6 Upon failure of CONTRACTOR to substantially complete the Work within the specified period of time, plus any approved time extensions for Phase II, CONTRACTOR shall pay to CITY the sum of One Thousand and 00/100 Dollars ($1,000.00) for each calendar day after the time period specified in Article 4.3 (plus any approved time extensions) for Substantial Completion. After Substantial Completion of Phase II, should CONTRACTOR fail to complete the remaining Work within ten (10) calendar days after said thirty (30) calendar day period for completion and readiness for final payment, CONTRACTOR shall pay to CITY the sum of One Thousand Five Hundred and 00/100 Dollars ($1,500.00) for each calendar day after said ten (10) calendar day period, for completion and readiness for final payment. 4.7 The time frame for liquidated damages shall not commence and thus shall not be tolled until the CONTRACT ADMINISTRATOR submits the Punch List to the CONTRACTOR. These amounts are not penalties but are liquidated damages to CITY for its inability to obtain full beneficial occupancy and/or use of the Project. Liquidated damages are hereby fixed and agreed upon between the parties, recognizing the impossibility of precisely ascertaining the amount of damages that will be sustained by CITY as a consequence of such delay, and both parties desiring to obviate any question of dispute concerning the amount of said damages and the Contract 7 cost and effect of the failure of CONTRACTOR to complete the Contract on time. 4.8 CITY is authorized to deduct any 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. The CITY shall first deduct the liquidated damages from the monies referenced in Article 6.2. 4.9 CONTRACTOR shall be responsible for reimbursing CITY, in addition to liquidated damages, for all costs incurred by CONSULTANT in administering the construction of the Project beyond the final completion dates specified above, plus approved time extensions, if the delays are due to the CONTRACTOR'S failure to perform and complete the Project in a timely manner. CONSULTANT'S construction administration costs shall be pursuant to the contract between CITY and CONSULTANT, a copy of which is available to the CONTRACTOR upon requestto the CONTRACT ADMINISTRATOR. All such costs shall be deducted from the monies due CONTRACTOR for performance of Work under this Contract by means of unilateral credit change orders issued by CITY as costs are incurred by CONSULTANT and agreed to by CITY. ARTICLE 5 THE CONTRACT PRICE (Guaranteed Maximum Price) 5.1 The Contract Price is the Guaranteed Maximum Price, agreed by the CONTRACTOR and CITY under this Contract, payable to complete the Work in accordance with the Contract Documents, as may be increased or decreased by approved Change Order. 5.2 The Contract Price for the Project is $8,096,580, as more specifically defined and delineated in Attachment III to this Contract, entitled "Scope of Work", and incorporated by reference herein. The contract price is allocated as follows: Phase I shall be valued at $5,626,886 and Phase II shall be valued at $2,469,694. 5.3 In the event that the CONTRACTOR's total approved expenditures for the Project shall exceed the Guaranteed Maximum Price except for additional work requested by CITY by approved Change Order, the CONTRACTOR shall pay such excess from its own funds, and the CITY shall not be required to pay any amount that exceeds the GMP except for the value of such additional work requested by CITY by approved Change Order; and the CONTRACTOR shall have no claim against the CITY on account thereof. ARTICLE 6 Contract 8 PROGRESS PAYMENTS 6.1 CONTRACTOR may make Application for Payment for Work completed during the Project at intervals of not more than once a month. CONTRACTOR'S application shall show a complete breakdown of the Project components, the percentages completed and the amount due in accordance with Article 6.4 below, together with such supporting evidence as may be required by CONSULTANT. CONTRACTOR shall submit with each Application for Payment, an updated Progress Schedule acceptable to CONSULTANT, certification of payments to Subcontractors and signed Releases of Lien and Consent of Surety relative to the Work which was the subject of the prior Application, prevailing wage reports, and Project progress photographs. Each Application for Payment shall be submitted in triplicate to CONSULTANT for approval with a transmittal letter stating date submitted. After review and approval, CONSULTANT shall sign and transmit the approved payment application to the CONTRACT ADMINISTRATOR. CITY shall make payment to CONTRACTOR within twenty five (25) days after receipt from CONSULTANT of CONTRACTOR's approved Application for Payment and acceptable updated Progress Schedule and other supporting documents. Any Application for Payment submitted incorrectly or incompletely will be rejected immediately by the CONSULTANT for re-submission by the CONTRCA TOR in the manner established in this Agreement. The City will make every effort to expedite payment of any complete and appropriately presented application once approved by CONSULTANT. 6.2 Ten percent (10%) of all monies earned by CONTRACTOR for each Phase of the Work shall be retained by CITY until final completion and acceptance by CITY of the particular Phase. Therefore 10% of the value of Phase I shall be retained until final completion of Phase I and released at that time. 10% of the value of Phase II shall be retained until final completion of Phase II and released at that time. The CONTRACTOR'S schedules of value shall reflect the value of each Phase separately, and will reflect the 10% retainage for each Phase. Any interest earned on retainage shall accrue to the benefit of CITY. The CITY and the CONSULTANT will consider release of 5% of the retainage once Project is considered 95% complete and prior to substantial completion if deemed appropriate. 6.3 CITY may also withhold, in whole or in part, payment to such extent as may be necessary to protect itself from loss on account of: 6.3.1 Defective CONTRACTOR or Subcontractor work not remedied. 6.3.2 Claims filed, or reasonable evidence indicating probable filing of claims by other parties against CONTRACTOR or CITY because of CONTRACTOR'S performance. 6.3.3 Failure of CONTRACTOR to make payments properly to Subcontractors Contract 9 that are in good standing. 6.3.4 Damage to the work of another contractor or to CITY property not remedied. 6.3.5 Liquidated Damages and/or costs incurred by CONSULTANT for extended construction administration as provided in Article 4.6. 6.3.6 Failure of CONTRACTOR to provide any and all documents required to be provided to City by the Contract Documents. 6.4 The first Application for Payment, and each payment application thereafter, shall be based on a prepared schedule of values reflecting the value for each Phase of the Project, allocating the entire CONTRACTOR'S Direct Construction Cost among the various portions of the Work (the "Schedule of Values"), and approved by CONSULTANT, (as well as any subsequent revisions thereto) and incorporated herein and attached as Attachment III to the Contract. CONTRACTOR shall use the Schedule of Values, as well as all updates thereto, to prepare payment applications utilizing A.I.A. Forms G702 and G703. The Schedule of Values shall list the cost of materials, the cost of labor, the cost of equipment and the cost of subcontractor work, where applicable, separately for the portions of the Work delineated. The number of specific items to be delineated on the Schedule of Values shall be agreed upon by all parties and will be sufficient to allow the CONSULTANT and the CITY to evaluate progress on the Project and expenditures related to the progress. Each monthly Application for Payment shall be for a sum equal to (i) that portion of the CONTRACTOR'S Direct Construction Cost equal to the percentage of the Work completed; plus (ii) the total amount of the CONTRACTOR's General Conditions divided by the total months of each Project phase; plus (iii) the total amount of the CONTRACTOR'S fee divided by the total months of each Project phase. Therefore each Application for Payment shall contain an equal amount of General Conditions and of CONTRACTOR'S fees; provided, however, prior to the date of the Final Payment Application for each Phase of the Project, and unless subject to reduction under Article 6.3, above, the aggregate of the CONTRACTOR'S Fee payments shall not exceed Ninety (90%) percent of the CONTRACTOR'S Fee for each Phase of the Project. The CONTRACTOR'S Direct Construction Cost shall be segregated and detailed in a manner satisfactory to the CONSULTANT, with sufficient supporting documentation and description of charges for the CONSULTANT to evaluate the charges. The Application for Payment shall indicate the percentage of completion of each portion of the Work, and the total Work, as of the end of the period covered by the Application for Payment. The Schedule of Values shall be used as one basis for reviewing the Application for Payment when such amounts are approved. The Contract 10 Application for Payment may include the cost of materials not incorporated in the Work, but delivered and suitably stored at the Project location or at some other location approved in writing in advance, by the CITY. Materials stored off-site must be supported by: a detailed invoice, a Bill of Sale (transferring ownership to the CITY), and an insurance certificate naming the CITY as additional insured equal to or exceeding the cost of the material so acquired. 6.5 If the CONTRACT ADMINISTRATOR, in its reasonable and good faith judgment, determines that the portion of the Guaranteed Maximum Price then remaining unpaid will not be sufficient to complete the Work in accordance with the Contract Documents, no additional payments will be due to the CONTRACTOR hereunder unless and until the CONTRACTOR, at its sole cost, performs a sufficient portion of the Work so that such portion of the Guaranteed Maximum Price then remaining unpaid is determined by the CONTRACT ADMINISTRATOR to be sufficient to so complete the Work. 6.6 CONTRACTOR shall remain liable for subcontractors' work and for any unpaid laborers, material suppliers or subcontractors in the event it is later discovered that said work is deficient or that any subcontractors, laborers, or material suppliers did not receive payments due them on the Project. 6.7 Except for the Contractor's Fee, the CONTRACTOR shall use the sums advanced to it solely for the purpose of performance of the Work and the construction, furnishing and equipping of the Work in accordance with the Contract Documents and payment of bills incurred by the CONTRACTOR in performance of the Work. ARTICLE 7 ACCEPTANCE AND FINAL PAYMENT 7.1 Upon receipt of written notice from CONTRACTOR that each Phase of the Work is ready for final inspection and acceptance, CONSULTANT shall, within ten (10) calendar days, make an inspection thereof. If CONSULTANT and CONTRACT ADMINISTRATOR find the Work acceptable; that the requisite documents have been submitted and the requirements of the Contract Documents have been fully performed; and all conditions of the permits and regulatory agencies have been met for that Phase, a Final Certificate of Completion for the Phase, shall be issued by CONSULTANT, stating that the requirements ofthe Contract Documents have been performed for that Phase, and that the Work is ready for acceptance. The time frame for liquidated damages shall not commence and thus shall be tolled until the final inspection is performed by the CONSULTANT for each Phase of the Project. 7.2 On or before issuance of the Final Certificate of Completion for each Phase of the Contract 11 Project, CONTRACTOR shall deliver to CONSULTANT: (1) A Final Waiver and Release of Lien, duly executed by the CONTRACTOR. (2) An affidavit listing the name, address and telephone number of all the Subcontractors who have performed Work on the particular Project Phase, with such Subcontractors identified as to the trade(s) involved for the Work, along with the original amounts due and the final amounts paid to each such Subcontractor in connection with the Project; (3) Final Waiver and Release of Lien, duly executed by each of the Subcontractors; (4) One (1) original set and two (2) copy sets of the As-Built Drawings, as well as two (2) CD ROMs, each containing duplicate electronic copies ofthe As- Built Drawings in AUTOCAD 2000 format, or such other format as may be approved by the CITY in accordance with Article 26 of the General Conditions; (5) Assignment of all manufacturer's warranties, guarantees, and operating manuals to the CITY; three copies are to be delivered, bound in a form acceptable to the CITY; (6) Unconditional consent of the CONTRACTOR'S Surety to final payment; (7) The final bill of materials, and invoice (or final application for payment for same). 7.3 If, after the Work has been substantially completed, full completion thereof is materially delayed through no fault of CONTRACTOR, and CONSULTANT so certifies, CITY shall, and without terminating the Contract, make payment of the balance due for that portion of the Work fully completed and accepted. Such payment shall be made under the terms and conditions governing final payment, except that it shall not constitute a waiver of claims. 7.4 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 as provided by Chapter 218, Florida Statutes ("Florida Prompt Payment Act") but no later than thirty (30) days after Final Completion of the Project and provided that all final documents have been submitted by CONTRACTOR and approved by CONSULTANT. The acceptance of final payment shall constitute a waiver of all claims by CONTRACTOR, except those previously made in strict accordance with the provisions of the Contract and identified by CONTRACTOR as unsettled at the time Contract 12 of the application for final payment. 7.5 The CONTRACTOR'S final application for payment and the CONSULTANT'S Final Certificate for Payment shall constitute a representation to the CITY by the CONTRACTOR and the CONSULTANT, respectively, that all conditions precedent to CONTRACTOR'S entitlement to final payment have been satisfied. 7.6 Should there be any judgment, claim or lien after final payment is made resulting from the CONTRACTOR'S actions, for which the CITY may become liable, the CONTRACTOR shall reimburse and indemnify the CITY for all monies that the CITY shall pay in satisfying, discharging, or defending against any such judgment, claim or lien, or any action brought or judgment recovered thereon, and all costs and expenses, including attorney's fees and disbursements, incurred in connection therewith including appellate proceedings. 7.7 The making of final payment shall not constitute a waiver of claims by the CITY for: (a) faulty or defective Work appearing after CONSULTANT'S final certificate for payment; (b) failure of the Work to be in strict accordance with the requirements of the Contract Documents discovered after completion of the Work; and (c) terms of all warranties required by the Contract Documents. ARTICLE 8 MISCELLANEOUS 8.1 This Contract is part of, and incorporated in, the Contract Documents as defined herein. Accordingly, all of the documents incorporated by the Contract Documents shall govern this Project. 8.2 Where there is a conflict between any provision set forth within the Contract Documents and a more stringent State or federal provision which is applicable to this Project, the more stringent State or federal provision shall prevail. 8.3 Public Entitv 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, Contract 13 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. 8.4 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. 8.5 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. 8.6 Notices. 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 until changed in writing in the manner provided in this section. For the present, the parties designate the following: For CITY: CAPITAL IMPROVEMENT PROJECTS OFFICE Contact: MAURO BURGIO, SENIOR CAPITAL PROJECTS COORDINATOR 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 For CONTRACTOR: JASCO CONSTRUCTION COMPANY, INC. Contact: AL BRIZUELA, VICE PRESIDENT 13317 S.W. 124th STREET MIAMI, FLORIDA 33186 Contract 14 8.7 Assiqnment and Performance. Neither this Contract nor any interest herein shall be assigned, transferred, or encumbered by either party. In addition, CONTRACTOR shall not subcontract any portion of the work required by this Contract except as authorized by Section 19 of the General Conditions. CONTRACTOR represents that all persons delivering the services required by this Contract have the knowledge and skills, either by training, experience, education, or a combination thereof, to adequately and competently perform the duties, obligations, and services set forth in the Scope of Work and to provide and perform such services to CITY'S satisfaction for the agreed compensation. CONTRACTOR shall perform its duties, obligations, and services under this Contract in a skillful and respectable manner. The quality of CONTRACTOR'S performance and all interim and final product(s) provided to or on behalf of CITY shall be comparable to the best local and national standards. 8.8 Materiality and Waiver of Breach. CITY and CONTRACTOR agree that each requirement, duty, and obligation set forth in these Contract Documents is substantial and important to the formation of this Contract and, therefore, is a material term hereof. CITY'S failure to enforce any provision of this Contract shall not be deemed a waiver of such provision or modification of this Contract. A waiver of any breach of a provision of this Contract shall not be deemed a waiver of any subsequent breach and shall not be construed to be a modification of the terms of this Contract. 8.9 Severance. 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. 8.10 Applicable Law and Venue. This Contract shall be interpreted and construed in accordance with and governed by the laws of the State of Florida. Any controversies or legal problems arising out of this Contract and any action involving the enforcement or interpretation of any rights hereunder shall be submitted to the jurisdiction of the State courts of the Eleventh Judicial Circuit of Miami-Dade County, Florida, the venue site, and shall be governed by the laws of the State of Florida. By entering into this Contract, CONTRACTOR and CITY hereby expressly waive any rights either party may have to a trial by jury of any civil litigation related to, or arising out of the Project. CONTRACTOR, pursuant to Article 19 of the General Conditions, shall specifically bind all subcontractors to the provisions of this Contract. 8.11 Amendments. No modification, amendment, or alteration in the terms or conditions contained herein shall be effective unless contained in a written document prepared Contract 15 with the same or similar formality as this Contract and executed by the CITY and CONTRACTOR. (The remainder of this page is left blank intentionally.) IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement on the respective dates under each signature: CITY OF MIAMI BEACH through its MAYOR AND CITY COMMISSION, signing by and through its MAYOR, authorized to execute same by City Commission action on the 10th day of December, 2003, and CONTRACTOR, signing by and through July 6, 2004 , duly authorized to execute same. ~~Q~ (City Clerk) I BEACH David Dermer, Mayor (Print Name and Title) APPROVED /IS TO FORM & LANGUAGE & FOR EXECUTION 6th day of July ,2004 ~ 1--I'TJr ey~ Date Contract 16 (Secretary) JASCO CONSTRUCTION COMPANY, INC. BY~~ (Signature) ATTEST ~ (Corporate Seal) ~ t.~~62- ikt'J:lJ~ I (Print Name and title) ..-- .2 r day of J t,/A/ ~ , 2004 (CITY REQUIRES FIVE (5) FULLY-EXECUTED CONTRACTS FOR DISTRIBUTION) Contract 17 CONSTRUCTION MANAGEMENT AT RISK AGREEMENT FOR THE CONSTRUCTION OF A NEW FIRE STATION, RENOVATION OF THE EXISTING FIRE STATION #2 INTO ADMINISTRATIVE OFFICES AND COMPLETION OF THE SITE DRAINAGE SYSTEM General Conditions TABLE OF CONTENTS 1 Definitions.............................................................................................................4 2 General Provisions... .... ............... ......... ............. .... ............ .... .... ..... .......... ............. 7 3 Responsibilities of CONTRACTOR /Generally......................................................8 4 Progress Schedule... ........ .......... ............... ..... ...................... ........ .......................1 0 5 . Superintendence and Supervision ......................................................................11 6 CONSULTANT'S Authority .................................................................................12 7 Shop Drawings.................................................................................................... 13 8 Field Layout of the Work and Record Drawings..................................................14 9 Inspection and Testing.... .... ...... ...................... ............... ........ ............... ..............15 1 0 Taxes.................................................................................................................. 16 11 Priority of Provisions ...........................................................................................16 12 Changes in the Work or Terms of Contract Documents .....................................17 Notification of Change of Contract Time or Contract Price; Weather (17) Change Orders (19) Field Orders and Supplemental Instructions (21) 13 Differing Site Conditions..................................................................... ... 21 14 Excusable Delay: Compensable & Non Compensable .......................................22 15 Substantial Completion Date ........................... ........................ .............. .............23 16 Use of Completed Portions .................................................................................24 General Conditions 1 17 Cost of the Work. ..... ............... .... ............. ........ .......... ................ ............... ..........25 Subcontractor Costs (25) CONTRACTOR'S Labor Costs (26) Materials and Equipment (26) Miscellaneous costs (27) 18 Discounts, Rebates and Refunds .......................................................................30 19 Subcontract Requirements........................ ...... ......... ....... ....... ...... ...... .................30 20 I nsurance Requirements..................................................................................... 32 21 Indemnification.................................................................................................... 34 22 Performance and Payment Bond and Qualifications of Sureties ........................35 Qualification of Surety (35) 23 Independent Contractor ......... ....... .... ............. ......... ...... ......................... .............36 24 Inspection of Work ........ ......... .... ....... ..................... ....... ......................................37 .25 Project Records .... ............................. ........... ......... ........... ......... ............ ........ .....37 26 Survey................................................................................................................. 38 27 Title to Work........................................................................................................ 39 28 Work in Progress .......... ......... ....... .............. ....... ......... ........... .............. ...............39 29 Occupational Health and Safety .........................................................................39 30 CITY Licenses Permits and Fees........................................................................41 31 Personnel........................................................................................................... .42 32 CONTRACTOR'S Warranties .............................................................................42 33 Defective Work................................................................................................... .43 34 Signage.............................................................................................................. .44 35 Public Entity Crimes Act......................................................................................45 General Conditions 2 36 Ownership of Contract Documents .....................................................................45 37 Assignment........................................................................................................ .46 38 Nondiscrimination, Equal Employment Opportunity and Americans With Disabilities Act ..........................................................................46 39 Waiver.................................................................................................................4 7 40 Construction of Terms... ......... ......... ............ ............ ....... ............. .... .... ................47 41 Captions..............................................................................................................4 7 42 Entire Agreement; Severability; Amendments ....................................................48 43 CITY'S Right to Terminate Contract....................................................................48 44 Resolution of Disputes ... ............... ........ ................ ....... ........ ..............................49 45 Other Terms & Conditions ..................................................................................50 Drug Free Workplace (50) Hurricane Precautions (50) Status Reports to CITY'S General Obligation (G.O.) Bond Oversight Committee (51) CONTRACTOR'S Right to Stop the Work or Terminate the Contract(51) General Conditions 3 Construction Management at Risk Agreement General Conditions ARTICLE 1 DEFINITIONS 1.1 Chanqe Order: A written document ordering a change in the Contract Price or Contract Time or a material change in the Work. 1.2 CITY: The CITY (or OWNER) shall mean the City of Miami Beach, a Florida municipal corporation, having its principal offices at 1700 Convention Center Drive, Miami Beach, Florida 33139, which is a party hereto and/or for which this Contract is to be performed. In all respects hereunder, CITY's performance is pursuant to CITY's position as the OWNER of a construction project. In the event CITY exercises its regulatory authority as a governmental body, 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 may manner to CITY as a party to this Contract. 1.3 City Commission: City Commission shall mean the governing and legislative body of the CITY. 1.4 Consultant: Architect or Engineer who has contracted with CITY to provide professional services for this Project. 1.5 Contract: The Construction Management at Risk Agreement, including any amendments and exhibits thereto. 1.6 Contract Administrator: 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. 1.7 Contract Documents: The Project Manual including drawings, plans, and specifications; the Request for Qualifications No. 117-00/00, all attachments and amendments thereto, and Contractor's response thereto; any Addenda to the Project Manual; Pre-Construction Services Agreement, dated April 18, 2001, and any Attachments and exhibits thereto (except for Exhibit B thereto, entitled the "GMP Amendment"), the Contract and General Conditions and any amendments, Attachments, and exhibits thereto; the Performance Bond and Payment Bond; the General Conditions 4 Notice of Award; the Notice(s) to Proceed, and the Purchase Order; Change Orders; Field Orders; Supplemental Instructions and any additional documents the submission of which is required by the Project Manual, are the documents which are collectively referred to as the Contract Documents. 1.8 Contract Price: The amount established in the Contract as the Guaranteed Maximum Price (GMP), as may be amended by Change Order. 1.9 Contractor: the person, firm, or corporation with whom the CITY has contracted to provide the Construction Management at Risk Services contemplated in the Contract Documents, and who is responsible for the acceptable performance of the Work and for the payment of all legal debts pertaining to the Work. All references in the Contract Documents to third parties under contract or control of Contractor shall also be deemed to be a reference to CONTRACTOR. 1.10 Field Order: A written order which orders minor changes in the Work but which does not involve a change in the Contract Price or Contract Time. 1.11 Final Completion: The date certified by CONSULTANT in the Final Certificate of Payment upon which all conditions and requirements of any permits and regulatory agencies have been satisfied; and the documents required by the Contract Documents have been received by CONSULTANT; any other documents required to be provided by CONTRACTOR have been received by CONSULTANT; and to the best of CONSULTANT's information and belief the Work defined herein has been fully completed, in accordance with the terms and conditions of the Contract Documents. 1.12 I nspector: An authorized representative or employee of the CONSULTANT or CITY assigned to make necessary inspections of materials furnished by Contractor and of the Work performed by Contractor. 1.13 Materials: Materials incorporated in this Project, or used or consumed in the performance of the Work. 1.14 Notice to Proceed: A written notice to CONTRACTOR authorizing the commencement of Work. 1.15 Plans Drawinqs and/or Specifications: The official graphic representations of this Project which are a part of the Project Manual. 1.16 Proiect: The phased construction project described in the Contract Documents, including the Work described therein. General Conditions 5 1.17 Proiect Initiation Date: The date upon which the first Notice to Proceed is issued. The Contract Time shall commence as of the date the second Notice to Proceed is issued. 1.18 Subcontractor: A person, firm or corporation having a direct contract with CONTRACTOR including one who furnishes material worked to a special design according to the Project Manual for this work, but does not include one who merely furnishes material not so worked. 1.19 Substantial Completion: The date certified by CONSULTANT when all conditions and requirements of permits and regulatory agencies have been satisfied and the CONSULTANT has certified the Work is sufficiently complete in accordance with the Contract Documents so the Project is available for beneficial use by CITY. A Certificate of Occupancy or Certificate of Completion must be issued for Substantial Completion to be achieved; however, the issuance of a Certificate of Occupancy or Certificate of Completion, or the date thereof, are not to be determinative of the achievement or date of Substantial Completion. 1.20 Surety: The surety company or individual which is bound by the performance bond and payment bond with and for CONTRACTOR who is primarily liable. and which surety company or individual is responsible for CONTRACTOR'S acceptable performance of the work under the contract and for the payment of all debts pertaining thereto in accordance with Section 255.05, Florida Statutes. 1.21 Work: The construction and services required by the Contract Documents, whether completed or partially completed, and includes all other labor, materials, equipment and services provided or to be provided by Contractor to fulfill Contractor's obligations. The Work may constitute the whole or a part of the Project. ARTICLE 2 GENERAL PROVISIONS 2.1 Generally. CONTRACTOR hereby agrees to furnish all of the labor, materials, equipment, services and incidentals necessary to perform all of the work described in the Contract Documents, and related thereto for the Project within the Guaranteed Maximum Price (GMP). 2.2 Relationship of CITY and CONTRACTOR: The CONTRACTOR accepts the relationship of trust and confidence established between it and the CITY by this General Conditions 6 Agreement. The CONTRACTOR represents that it will furnish its best skill and judgment in performing the Work, and shall always act to further the interest of the CITY in the expeditious completion of the Project at the lowest cost to the CITY and in strict accordance with the Contract Documents, and prudent and customary construction practices. By signing this Contract, the CONTRACTOR accepts a fiduciary duty with the CITY and warrants and represents to the CITY that the CONTRACTOR (a) has all licenses and certifications required by Applicable Law (defined as all federal, state county, and local statutes, codes, laws, rules, regulations, ordinances, orders and standards applicable to the Project and any other such law hereafter enacted, and any rules adopted pursuant thereto, as all such laws may be amended from time to time to perform the Work); (b) is experienced in all aspects of pre-construction and construction planning for projects similar to the Project; (c) will act in the CITY'S highest and best interests in performing the Work; and (d) that no employee or affiliate of the CONTRACTOR, including all Subcontractors and suppliers, at any tier, has been convicted of a public entity crime, fraud, theft and/or a property damage crime within the preceding thirty-six (36) months from the time this Contract is executed, pursuant to Section 287.133, Florida Statutes. 2.3 Intention of CITY: It is the intent of CITY to describe in the Contract Documents a functionally complete Project to be constructed in accordance with the Contract Documents and in accordance to 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. When words which have a well-known technical or trade meaning are used to describe work, materials or equipment, such words shall be interpreted in accordance with that meaning. Reference to standard specifications, manuals, or codes of any technical society, organization or associations, or to the laws or regulations of any governmental authority, whether such reference is specific or by implication, shall mean the latest standard specification, manual, code or laws or regulations in effect at the time of execution of this Contract. CITY shall have no duties other than those duties and obligations expressly set forth within the Contract Documents. 2.4 The Contractor agrees that the Work shall be performed in a good and professional manner, free from defects in materials and workmanship, in accordance with applicable building codes, and that all Materials shall be new and approved by or acceptable to the CONSULTANT AND CONTRACT ADMINISTRATOR, except as otherwise expressly provided for in the Contract Documents. The CONTRACTOR shall cause all Materials and other parts of the Work to be readily available as and when required or needed for or in connection with the construction, furnishing and equipping of the improvements. General Conditions -7- ARTICLE 3 RESPONSIBILITIES OF CONTRACTOR GENERALLY 3.1 The CONTRACTOR shall perform the Work and complete the Project at or below the GMP, in accordance with the Contract Documents, and shall achieve Substantial Completion of the Work within the Contract Time. Completion of the Work shall be achieved no later than thirty (30) calendar days after issuance of a Certificate of Substantial Completion, as referenced by Articles 4.3 and 4.4 of the Contract, and in accordance with the procedure defined in Article 15. 3.2 CONTRACTOR shall furnish efficient business administration, coordination, management and supervision of Work required to complete the Project, and shall cooperate with the CITY, CONSULTANT, the CONTRACT ADMINISTRATOR and their respective representatives, in furthering the interests of CITY in the expeditious completion of the Project at the lowest cost to CITY, consistent with the requirements of the Contract Documents and prudent and customary construction practices. 3.2.1 The CONTRACTOR shall perform the Work, and shall cause its Subcontractors to perform the Work, in strict accordance with all Applicable Laws, as defined in Article 2.2 herein. By signing this Agreement, the CONTRACTOR represents and warrants that it is familiar with all Applicable Laws that govern the Work. 3.2.2 If CONTRACTOR has knowledge that the Contract Documents do not comply with Applicable Laws in any respect, the CONTRACTOR shall promptly notify the CONSULTANT in writing and any necessary changes shall be adjusted by appropriate revisions. If the CONTRACTOR performs any Work not in accordance with Applicable Laws, and without such notice to the CONSULTANT, the CONTRACTOR shall assume full responsibility therefore and shall bear all costs attributable thereto. 3.2.3 In the event that Work is deemed by competent authority not to comply with Applicable Law, the CONTRACTOR shall bring such Work into compliance with Applicable Law. If the Applicable Law is enacted after the GMP is established, and the CONTRACTOR had no reasonable prior knowledge of such a change to Applicable Law, such change shall be considered an unforeseeable and unavoidable cost and the CITY shall approve a Change Order to bring such Work into compliance with Applicable Laws. New interpretations of existing Applicable Law shall not be considered an unforeseeable and unavoidable cost. General Conditions -8- 3.3 The CONTRACTOR warrants that it has thoroughly reviewed and studied the Contract Documents and has determined that they are in conformance with Applicable Laws (enacted as of the date of this Contract) and are complete and sufficiently coordinated to perform the Work within the GMP and the Contract Time. CONTRACTOR warrants that the Plans, Drawings and Specifications are consistent, practical, feasible and constructible. CONTRACTOR further warrants that the Work described in the Plans, Drawings and Specifications is constructible within the GMP and the Contract Time. THE CITY DISCLAIMS ANY WARRANTY THAT THE PLANS, DRAWINGS AND SPECIFICATIONS FOR THE PROJECT ARE ACCURATE, PRACTICAL, CONSISTENT, AND CONSTRUCTIBLE. 3.4 The CONTRACTOR accepts the Project site in its observable and/or documented condition existing at the time of this Agreement or conditions ordinarily encountered and generally recognized as inherent to the character of the Work to be provided for in this Project. By signing this Contract, the CONTRACTOR represents that it has: (a) visited the Project site to become familiar with the conditions under which the Work is to be performed; (b) become familiar with all information provided by the CITY pertaining to the Project site; and (c) correlated its observations with the information furnished by the CITY, and the Contract Documents. The CONTRACTOR hereby waives additional time or compensation for additional work made necessary by observable and/or documented conditions existing at the Project site, or conditions ordinarily encountered and generally recognized as inherent to the character of the Work to be provided for in this Project, except for significant environmental conditions requiring treatment, removal or remediation which are not those already known by the CITY and transmitted to the CONTRACTOR. Changes which may be deemed by CONTRACTOR to be beyond the above described conditions shall be addressed separately and the determination shall be made by the CONSULTANT and the CITY. 3.5 The CONTRACTOR agrees specifically that no Change Orders shall be required by the CONTRACTOR or considered by the City for reasons involving conflicts in the Contract Documents, questions of clarity with regard to the Documents, incompatibility, or conflicts between the Documents and the existing Project site conditions, utilities, and unforeseen underground conditions. The CONTRACTOR acknowledges that it has ascertained all correct locations for points of connection for all utilities, if any, required for this Project. 3.6 The CONTRACTOR shall, as may be required for the proper execution and completion of the Work, secure all necessary permits and revisions thereto, fees and licenses, as required by Applicable Laws to complete the Project, including, but not omitted to, all necessary utility connection permits and fees. General Conditions -9- 3.7 The CONTRACTOR shall comply with all conditions of any permits issued by government authorities. ARTICLE 4 PROGRESS SCHEDULE 4.1 Within ten (10) calendar days after the date of issuance of the first Notice to Proceed, the CONTRACTOR shall prepare and submit, for the CONSULTANT and CONTRACT ADMINISTRATOR'S review and approval, the construction schedule of the Project, utilizing the Critical Path Method (CPM) of scheduling (utilizing the "Primavera Project Planner" scheduling software). In addition, the CONTRACTOR shall periodically prepare and submit other necessary schedules (all of which are hereinafter collectively referred to as the "Progress Schedule"). In the interest of completing the Project in the most expeditious and economical manner, the Progress Schedule shall indicate the start and completion dates of the various stages of the Work and shall show an activity network for the planning and execution of the Work. Included with the Progress Schedule shall be a narrative description of the Schedule. As a condition precedent to any payment, the CONTRACTOR shall update the Project Schedule at least monthly; such update submitted as part of each Application for Payment and showing actual progress vs. scheduled progress. Failure to provide such monthly updates will preclude the CONTRACTOR from submitting a delay claim. The CONTRACTOR shall indemnify the CITY from any subordinate delay claim. The Progress Schedule shall encompass all of the work of all trades necessary for the construction of the Project and shall be sufficiently complete and comprehensive to enable progress to be monitored on a weekly basis. 4.2 In addition to the Progress Schedule, CONTRACTOR shall provide bi-weekly to the CONSULTANT and CONTRACT ADMINISTRATOR a 2-week look-ahead schedule denoting all activity to be performed; identifying all shop drawing submittal responses that are needed for such activities; identifying the activities that need testing and approval; and identifying the entity or authority responsible for such testing. Shop drawing submittal requirements are set forth more specifically in Article 7, and inspection and testing are addressed more specifically in Article 9. 4.3 Failure of the CONTRACTOR to update, revise, and submit the Project Schedule as provided in this Article 4 shall be sufficient grounds for the CONSULTANT and the CONTRACT ADMI NISTRA TOR to withhold payment to the CONTRACTOR until a Schedule or Schedule update acceptable to the CONSULTANT and CONTRACT ADMINISTRATOR is submitted. General Conditions -10- 4.4 The CITY reserves the right to require such information from the CONTRACTOR as may be necessary to determine the accuracy of the Progress Schedule and any updates thereto. ARTICLE 5 SUPERINTENDENCE AND SUPERVISION 5.1 The orders of CITY are to be given through the CONTRACT ADMINISTRATOR, which instructions are to be strictly and promptly followed in every way. CONTRACTOR shall keep on the Project during its progress, a competent, English speaking superintendent, and any necessary assistants, all satisfactory to the CONSULTANT and CONTRACT ADMINISTRATOR. The superintendent shall not be changed except with the written consent of CONTRACT ADMINISTRATOR, unless the superintendent proves to be unsatisfactory to CONTRACTOR and ceases to be in its employ. The superintendent shall represent CONTRACTOR and all direction given to the superintendent shall be as binding as if given to CONTRACTOR. CONTRACTOR shall give efficient supervision to the Work, using its best skill and attention. 5.2 Daily, CONTRACTOR shall record, at a minimum, the following information in a bound log: the day; date; weather conditions and how any weather condition affected the 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 CONTRACT ADMINISTRATOR and CONSULTANT; 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. 5.3 The CONTRACTOR, CONSULTANT and CONTRACT ADMINISTRATOR shall meet at least once monthly, or as determined by the CONTRACT ADMINISTRATOR, during the course ofthe Work to review and agree upon the work performed to date and to establish the controlling items of work for the next month. The CONTRACTOR shall publish, keep, and distribute minutes and any comments thereto of each such meeting. Notwithstanding the foregoing, the CONTRACTOR shall meet on a weekly basis with CONTRACT ADMINISTRATOR and CONSULTANT'S inspector to review and agree upon the Work performed to date and to establish the controlling items of work for the next week. 5.4 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. General Conditions -11- CONTRACTOR shall be solely responsible for the means, methods, techniques, sequences and procedures of construction. ARTICLE 6 CONSULTANT'S AUTHORITY 6.1 The CONSULTANT will provide overall technical and management services to assist the CITY in maintaining schedules, establishing budgets, controlling costs, achieving quality and minimizing operational disruptions. 6.2 If at any time the CONTRACT ADMINISTRATOR observes or becomes aware of any fault or defect in the Project or of any nonconformance with the Contract Documents, CONTRACT ADMINISTRATOR will notify the CONSULTANT, and will direct that all reasonable steps be taken to correct such fault, defect or nonconformance. The CONTRACT ADMINISTRATOR and CONSULTANT shall have the authority to reject Work that does not conform to the Contract Documents. 6.3 CONSULTANT shall monitor the overall control and expediting of the construction work to facilitate completion of the Work within the Guaranteed Maximum Price and the Contract time. 6.4 CONSULTANT shall also be responsible for quality assurance of the construction work in accordance with the construction and procurement contracts. 6.5 CONSULTANT shall monitor the work of CONTRACTOR and shall coordinate all phases of its work to facilitate completion of the Project within the Guaranteed Maximum Price and the Contract time. 6.6 CONSULTANT shall not have control over construction means, method, techniques, sequences and procedures employed by CONTRACTOR in the performance ofthe Work, but shall be responsible for using its best efforts to review, and if unacceptable, disapprove such, and shall recommend a course of action to the CITY when the requirements of the Contract are not being met. 6.7 The CONTRACT ADMINISTRATOR will be assisted by CONSULTANT in the areas of on-site review of work in progress, review of pay applications submitted by the CONTRACTOR, assisting in the interpretation of the intent of the Contract Documents for the proper execution of the Work, and such other assistance as the CONTRACT ADMINISTRATOR may request. General Conditions -12- ARTICLE 7 SHOP DRAWINGS 7.1 CONTRACTOR shall submit Shop Drawings as required by Division 1 and 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. 7.2. Within thirty (30) calendar days after the Project Initiation Date specified in the first Notice to Proceed, CONTRACTOR shall submit to CONSULTANT and CONTRACT ADMINISTRATOR a list of preliminary data on items for which Shop Drawings are to be submitted and shall identify the critical items. Approval of this list ("the Schedule of Submission") 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. 7.3 After the approval of the list of items required in Article 7.2 above, CONTRACTOR shall promptly request Shop Drawings from the various manufacturers, fabricators, and suppliers. 7.4 CONTRACTOR shall thoroughly review and check the Shop Drawings and each and every copy shall show this approval thereon. 7.5 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. 7.6 Provided such submittals are in conformance with approved Schedule of Submission, CONSULTANT shall review and approve Shop Drawings within fifteen (15) 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. General Conditions -13- 7.7 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. CONSULTANT will timely provide a list of interconnecting or interdependent items; however, 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. 7.8 If catalog sheets or prints of manufacturer's standard drawings are submitted as Shop Drawings, any additional information or changes on such drawings shall be typewritten or lettered in ink. 7.9 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. 7.10 CONTRACTOR shall keep one set of Shop Drawings marked with CONSULTANT's approval at the job site at all times. ARTICLE 8 FIELD LAYOUT OF THE WORK AND RECORD DRAWINGS 8.1 The entire responsibility for establishing and maintaining line and grade in the field lies with CONTRACTOR. CONTRACTOR shall maintain an accurate and precise record of the location and elevation of all underground site utilities installed by CONTRACTOR, including pipe lines, conduits, structures, manholes, hand holes, fittings and the like which are sealed by a Professional Surveyor to enable CONSULTANT to prepare record or "as-built" drawings of the same. CONTRACTOR shall deliver these records in good order to CONSULTANT for review 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 made on reproducible paper. 8.2 The CONTRACTOR shall maintain in a safe place at the Project site one record set of the Contract Documents in good order and marked currently to record all changes made during construction and an accurate and precise location of all portions of the Work sufficient for the CONSULTANT to prepare accurate as-built drawings. The CONTRACTOR shall cooperate with the CONSULTANT in the preparation of accurate as-built drawings. 8.3 Prior to, and as a condition precedent to Final Payment, CONTRACTOR shall submit to CONSULTANT for review CONTRACTOR'S record drawings or as-built drawings acceptable to CONSULTANT. Upon acceptance by CONSULTANT said General Conditions -14- record drawings or as-built drawings shall be forwarded to CONTRACT ADMINISTRATOR. 8.4 The CONTRACTOR shall deliver to CONSULTANT for delivery to the CITY three (3) copies of all equipment data, along with its recommended spare parts list, maintenance manuals, manufacturer's warranties and operations manuals as may be required for the CITY employees or agents to maintain and operate any equipment delivered as a part ofthe Work. Upon acceptance by CONSULTANT, all spare parts list, maintenance, manuals, manufacturers' warranties and operation manuals shall be forwarded to the CONTRACT ADMINISTRATOR at least thirty (30) days prior to Substantial Completion. ARTICLE 9 INSPECTION AND TESTING 9.1 CONSULTANT and CITY shall at all times have access to the Work, and CONTRACTOR shall provide for use by the CONSULTANT facilities for such access and for inspecting, measuring and testing. 9.1.1 Should the Contract Documents, CONSULTANT's instructions, any applicable laws, or any public authority require any of the Work to be specially tested or approved, CONTRACTOR, shall provide for OWNER and update weekly for the CONSULTANT, in the two (2) week "look-ahead" schedule, denoting all activities to be performed, and highlight those that need testing and approval. If the testing or approval is to be made by an authority other than 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 is covered up without approval or consent of CONSULTANT, it must, if required by CONTRACT ADMINISTRATOR, be uncovered for examination and properly restored upon acceptance. 9.1.2 Reexamination of any of the Work may be ordered by 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 re-examination, which may include extended general conditions and associated time, and replacement by means of a change order; provided CONTRACTOR substantiates to the satisfaction of the CONTRACT ADMINISTRATOR that such re-examination materially and adversely impacts Contract Time and is not an interim delay. If such Work is not in accordance with the Contract Documents, CONTRACTOR shall pay such cost as part of the GMP. This Article to those General Conditions -15- requests or rejections made by the Building Official or his staff regarding issues related to compliance with Codes. 9.2 Inspectors shall have no authority to permit deviations from, nor to relax any of the provisions of the Contract Documents nor to delay the Contract by failure to inspect the materials and work with reasonable promptness without the written permission or instruction of CONTRACT ADMINISTRATOR. 9.3 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 the CONTRACTOR will constitute a breach of this Contract. ARTICLE 10 TAXES 10.1 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 11 PRIORITY OF PROVISIONS 11.1 The Contract Documents shall be interpreted so as to eliminate inconsistencies or conflicts, but in the event of any conflict, requirements for greater quantity and/or more expensive and/or extensive work shall govern. 11.2 I n case of conflicts between the provisions of this Contract, any ancillary documents executed contemporaneously herewith or prior hereto, or any other of the Contract Documents, the provisions ofthis Contract (including all Attachments, amendments and exhibits) shall prevail, except as specifically provided in Article 1.4 of the Contract. 11.3 Anything shown on the Plans and not mentioned in the Specifications or mentioned in the Specifications and not shown on the Plans shall have the same effect as if shown or mentioned respectively in both. In case of disagreement between the written and graphic portions of the Contract Documents, the written portion shall govern. 11.4 The organization of the Specifications into divisions and sections and the arrangement of Plans shall not control CONTRACTOR in dividing the Work among subcontractors or in establishing the extent of the Work to be performed by any General Conditions -16- trade. The organization of the Specifications and the arrangement of the Plans are for the convenience of the CONTRACTOR and are not intended to relieve the CONTRACTOR from its obligation to conduct a complete study of the Plans, Specifications and Addenda for the purpose of prosecuting the Work and directing the various Subcontractors and suppliers as to their respective responsibilities. ARTICLE 12 CHANGES IN THE WORK OR TERMS OF CONTRACT DOCUMENTS 12.1 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. 12.2 Changes to the terms of the Contract Documents must be contained in a written document, 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. 12.3 The actual cost of the Payment and Performance Bond shall be added to or deducted from the cost of the changes in the Work. 12.4 Notification of ChanQe of Contract Time or Contract Price; Weather 12.4.1 Any claim for a change in the Contract Time or Contract Price shall be made by written notice delivered by CONTRACTOR to the CONTRACT ADM I N ISTRA TOR within five (5) calendar days of the commencement of the event giving rise to the claim (which may include an occurrence or omission that CONTRACTOR contends delays the Work, or receipt of an order, instruction, CONSULTANT's supplemental information or other directive changing the Work, or any other occurrence that CONTRACTOR contends causes a change in Contract Time or Contract Price) and stating the general nature of the claim. Notice of the nature and elements of the claim shall be delivered within twenty (20) calendar days after the date of such written notice. Thereafter, within twenty (20) calendar days ofthe termination of the event giving rise to the claim, notice of the extent of the claim with supporting data shall be delivered, unless CONSULTANT and CONTRACT ADMINISTRATOR allows an additional period of time to ascertain more accurate data in support of the claim, and shall be accompanied by General Conditions -17- CONTRACTOR's written statement that the adjustment claimed is the entire adjustment to which the CONTRACTOR has reason to believe it is entitled as a result of the occurrence of said event. All claims for adjustment in the Contract Time or Contract Price shall be determined by CONSULTANT and CONTRACT ADMINISTRATOR in accordance with Article 44 hereof, if CONSULTANT, CONTRACT ADMINISTRATOR and CONTRACTOR cannot otherwise agree. NO CLAIM FOR AN ADJUSTMENT IN THE CONTRACT TIME OR CONTRACT PRICE WILL BE VALID UNLESS IT IS SUBMITTED IN STRICT ACCORDANCE WITH THE REQUIREMENTS OF THIS SECTION. 12.4.2 The Contract Time will be extended in an amount equal to time lost due to delays beyond the control of and through no fault, negligence, or act or omission of CONTRACTOR if a claim is made therefore as required by the Contract. Such delays shall include, but not be limited to, acts or neglect by any separate contractor employed by CITY, fires, floods, labor disputes, epidemics, abnormal weather conditions, acts of God, or acts of terrorism. 12.4.3 Extensions to the Contract Time for delays caused by the effects of inclement weather shall be submitted as a request for change in Contract Time pursuant to this Article 12. These time extensions are justified only when rain or other inclement weather conditions or related adverse soil conditions prevent CONTRACTOR from productively performing controlling items of work; identified on the accepted schedule or updates resulting in: (1) CONTRACTOR being unable to work at least fifty percent (50%) of the normal work day on controlling items of work identified on the accepted schedule or updates due to adverse weather conditions; or (2) CONTRACTOR must make major repairs to the Work damaged by weather, provided the damage was not attributable to a failure or neglect by CONTRACTOR, and provided that CONTRACTOR was unable to work at least fifty percent (50%) of the normal work day on controlling items of work identified on the accepted schedule or approved updates. No time extension will be allowed for weekend rains unless the CONTRACTOR has been working weekends on a regular basis on exterior Work. 12.4.4 The CONTRACTOR agrees and acknowledges that no ground for an extension to the Contract Time or Contract Price shall arise as a result of any reasonably foreseeable condition at the Project site, or as a result of anything contained in the Contract Documents. 12.5 ChanQe Orders 12.5.1 Changes in the quantity or character of the Work within the scope of the Project which are not properly the subject of Field Orders or Supplemental General Conditions -18- Instructions, including all changes resulting in changes in the Contract Price, or the Contract Time, shall be authorized only by Change Orders approved and issued by CITY. 12.5.2 The CONSULTANT, as authorized by the CONTRACT ADMINISTRATOR, may initiate a change order request ("Change Order Request"), setting forth in detail the nature of the requested change. Upon receipt of a Change Order Request, the CONTRACTOR shall review the change order request with the CONSULTANT and CONTRACT ADMINISTRATOR prior to furnishing to the CONSULTANT a statement setting forth in detail, with a suitable detailed breakdown in CSI format, including a breakdown of labor and materials, the CONTRACTOR's estimate of the changes in the Cost of the Work and changes to any other Contract Price elements attributable to the changes set forth in such Change Order Request, and proposed adjustments, if any, to the Contract Time resulting from such Change Order Request. If the CONTRACT ADMINISTRATOR accepts such CONTRACTOR's estimate, a Change Order shall be processed by the CITY and delivered to the CONTRACTOR for execution. Agreement on any Change Order shall constitute a final settlement on all items affected therein, including without limitation any adjustment in the Cost of the Work, CONTRACTOR's fee, Guaranteed Maximum Price, or the Contract Time, subject to performance thereof and payment therefore pursuant to the terms of this Contract and such Change Order. 12.5.3 The CONTRACTOR's fee on such changes shall be a percentage ofthe net change to the Cost of the Work resulting from the Change Order, not to exceed five and one half percent (5.5%). Subcontractor's percentage markup on change orders for overhead and profit shall be reasonable, but in no event shall the aggregate of the subcontractor's overhead and profit markups exceed seven 7% of the subcontractor's cost of the Work. In the event subcontractor is affiliated with the CONTRACTOR by common ownership or management, or is effectively controlled by the CONTRACTOR, no fee will be allowed on the subcontractor's costs. In the event there is more than one level of subcontractor, such as second and third tier subcontractors, the sum of all of the subcontractors' percentage markups for overhead and profit shall not in the aggregate exceed ten 10% of the cost of the Work. Subcontractor's cost of the Work shall be determined in accordance with Article 19, hereof. 12.5.4 CONTRACTOR shall not start work on any alteration requiring an increase in the Contract Price or the Contract Time until a Change Order setting forth the adjustments is approved by the CITY unless there is an immediate need to perform the work to maintain the Project Schedule. If there were such a General Conditions -19- need, the CONTRACT ADMINISTRATOR will issue direction to perform the work on the basis of a preliminary estimate provided by the Ga\lTRACTOR and approved by the CONSULTANT. Upon receipt of a Change Order CONTRACTOR shall promptly proceed with the work set forth within the document. 12.5.5In the event satisfactory adjustment cannot be reached for any item requiring a change in the Contract Price or Contract Time, and a Change Order has not been issued, CITY reserves the right at its sole option to either terminate the Contract as it applies to the items in question and make such arrangements as may be deemed necessary to complete the disputed work; or submit the matter in dispute to CONSULTANT and CONTRACT ADMINISTRATOR as set forth in Article 44, hereof. During the pendency of the dispute, and upon receipt of a Change Order, CONTRACTOR shall promptly proceed with the change in the Work involved and advise the CONSULTANT and CONTRACT ADMINISTRATOR in writing within five (5) calendar days of CONTRACTOR's agreement or disagreement with the method, if any, provided in the Change Order for determining the proposed adjustment in the Contract Price or Contract Time. 12.5.6 Upon approval of any Contract change increasing the Contract Price, CONTRACTOR shall ensure that the Performance Bond and Payment Bond are increased so that each reflects the total Contract Price as increased. 12.5.7 Change Orders may be issued unilaterally by CITY. 12.5.8 The Contractor hereby waives any claim not made with a timely request for a Change Order. 12.5.9 After the GMP has been established, no Change Order shall be approved in the case where the CONTRACTOR encounters a Construction Document discrepancy and has failed to foresee and/or coordinate any conditions in the Work, including conflicts between documents, plans and specifications and the existing Project site conditions, utilities, and unforeseen underground conditions, except for those related to possible contaminated soil within the Project site, which will cause an increase to the Contract Price and the Contract Time, especially in view of the responsibilities and obligations of the CONTRACTOR established in the Agreement for pre-construction services. 12.5.10 No change in the GMP shall be allowed for delays caused by labor disputes and strikes specific to the Project, or for other delay caused by the CONTRACTOR or its Subcontractors or suppliers of any tier. General Conditions -20- 12.5.11 The CONTRACTOR waives all claims for additional time or additional compensation for Work performed without a written Change Order, unless as stated in Article 12.5.4. 12.5.12 DUTY TO CONTINUE WORK. The CONTRACTOR agrees that, regardless of the pendency of any claim for additional compensation or time, the CONTRACTOR shall continue to execute all Work. The CONTRACTOR shall take all reasonable measures to minimize the effect of the pendency of a claim. 12.5.13 PERMIT ADJUSTMENT. Should a material discrepancy be found between the Bid Documents and the Permit Documents, and provided only that said discrepancy result from the regulatory review of any agency that has regulatory authority over the permitting process, the CITY shall issue a Change Order to the CONTRACTOR. 12.6 Field Orders and Supplemental Instructions 12.6.1 The CONSULTANT and CONTRACT ADMINISTRATOR 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, provided the Field Order involves no change in the Contract Price or Contract time. 12.6.2 CONSULTANT and CONTRACT ADMINISTRATOR shall have the right to approve and issue Supplemental Instructions setting forth written orders, instructions, or interpretations concerning the Contract or its performance, provided such Supplemental Instructions involve no change in the Contract Price or Contract Time. ARTICLE 13 DIFFERING SITE CONDITIONS: 13.1 No equitable adjustment to the Contract shall be allowed for CONTRACTOR and no change to Contract Price or Contract Time, in the event that during the course of the Work CONTRACTOR encounters an existing condition that was not shown on the Contract Documents; or subsurface or concealed conditions at the Project site which differ materially from those shown on the Contract Documents and from those ordinarily encountered and generally recognized as inherent in work of the character called for in the Contract Documents; or unknown physical conditions of the Project site, of an unusual nature, which differ materially from that ordinarily encountered and generally recognized as inherent in work of the character called for in the Contract Documents. General Conditions -21- ARTICLE 14 EXCUSABLE DELAY: COMPENSABLE & NON COMPENSABLE 14.1 Excusable Delay: Delay which extends the completion of the Work and which is caused by circumstances beyond the control of CONTRACTOR or its Subcontractors, material persons, suppliers, or vendors is Excusable Delay. CONTRACTOR is entitled to a time extension of the Contract Time for each day the Work is delayed due to Excusable Delay. CONTRACTOR shall document its claim for any time extensions as provided in Article 12 hereof. Failure of CONTRACTOR to comply with Article 12 hereof as to any particular event of delay shall be deemed conclusively to constitute a waiver, abandonment or relinquishment of any and all claims resulting from that particular event of delay. Excusable Delay may be compensable or non-compensable. (a) Compensable Excusable Delay. Excusable Delay is compensable only when (i) the delay extends the Contract Time; (ii) is caused by circumstances beyond the control of the CONTRACTOR or its Subcontractors, material providers, suppliers or vendors except for differing site; and (iii) is caused solely by fraud, bad faith or active interference on the part of CITY or its agents. In no event shall CONTRACTOR be compensated for interim delays which do not extend the Contract Time. CONTRACTOR shall be entitled to direct and indirect costs for Compensable Excusable Delay. Direct costs recoverable by CONTRACTOR shall be limited to the actual additional costs allowed pursuant to Article 17 hereof. CITY and CONTRACTOR recognize and agree that the amount of CONTRACTOR's precise actual indirect costs for delay in the performance and completion of the Work is impossible to determine as of the date of execution of the Contract Documents, and that proof of the precise amount will be difficult. Therefore, indirect costs recoverable by the CONTRACTOR shall be liquidated on a daily basis for each day the Contract Time is delayed due to a Compensable Excusable Delay. These liquidated indirect costs shall be paid to compensate CONTRACTOR for all indirect costs caused by a Compensable Excusable Delay and shall include, but not be limited to, all profit on indirect costs, home office overhead, acceleration, loss of earnings, loss of productivity, loss of bonding capacity, loss of opportunity and all other indirect costs recoverable shall be One Thousand Five Hundred and 00/100 ($1,500.00) per General Conditions -22- day for each day the Contract is delayed due to a Compensable Excusable Delay. (b) Non-Compensable Excusable Delay. When Excusable Delay is (i) caused by circumstances beyond the control of CONTRACTOR, its subcontractors, material persons, suppliers and vendors, and is also caused by circumstances beyond the control of the CITY or CONTRACT ADM I N I STRA TOR or CONSULTANT, or (ii) is caused jointly or concurrently by CONTRACTOR or its subcontractors, material persons, suppliers or vendors and by the CITY or CONTRACT ADMINISTRATOR or CONSULTANT, then CONTRACTOR shall be entitled only to a time extension and no further compensation for the delay. ARTICLE 15 SUBSTANTIAL COMPLETION DATE 15.1 When CONTRACTOR considers that the Work, or portion thereof designated by CITY pursuant to Article 16 hereof, has reached Substantial Completion, CONTRACTOR shall so notify CITY, CONTRACT ADMINISTRATOR and CONSULTANT in writing. CONTRACT ADMINISTRATOR and CONSULTANT shall then promptly inspect the Work. When CONTRACT ADMINISTRATOR and CONSULTANT, on the basis of such an inspection, determine that the Work or designated portion thereof is substantially complete, CONSULTANT will then prepare a Certificate of Substantial Completion form, which shall establish the Date of Substantial Completion and; shall state the responsibilities of CITY and CONTRACTOR for security, maintenance, utilities, damage to the Work, and insurance; and shall list all work yet to be completed ("Punch List") to satisfy the requirements of the Contract Documents for Final Completion and shall establish time for completion of all such final work. The failure to include any items of corrective work on such list does not alter the responsibility of CONTRACTOR to complete all of the Work in accordance with the Contract Documents. Warranties required by the Contract Documents shall commence on the date of Substantial Completion of the Work or designated portion thereof unless otherwise provided in the Certificate of Substantial Completion. The Certificate of Substantial Completion shall be submitted to CITY through the CONTRACT ADMINISTRATOR, after execution by CONTRACTOR and CONSULTANT, indicating their written acceptance of the responsibilities assigned to them in such Certificate. The time frame for liquidated damages shall not commence and thus shall be tolled until the CONTRACT ADMINISTRATOR submits the Punch List to the CONTRACTOR. General Conditions -23- ARTICLE 16 USE OF COMPLETED PORTIONS 16.1 CITY shall have the right at its sole option to take possession of and use any completed or partially completed portions of the Project. Such possession and use shall not be deemed an acceptance of any of the Work not completed in accordance with the Contract Documents. If such possession and use increases the cost of or delays the Work, CONTRACTOR shall be entitled to reasonable extra compensation, or reasonable extension of time or both, by appropriate adjustment pursuant to Article 14 hereof. 16.2 In the event CITY takes possession of any completed or partially completed portions of the Project, the following shall occur: 16.2.1 CITY shall give notice to CONTRACTOR in writing at least thirty (30) calendar days prior to CITY's intended occupancy of a designated area. 16.2.2 CONTRACTOR shall complete to the point of Substantial Completion the designated area and request inspection and issuance of a Certificate of Substantial Completion from CONSULTANT. 16.2.3 Upon CONSULTANT's issuance of a Certificate of Substantial Completion, CITY will assume full responsibility for maintenance, utilities, subsequent damages of CITY and public, adjustment of insurance coverages and start of warranty for the occupied area. 16.2.4 CONTRACTOR shall complete all items noted on the Certificate of Substantial Completion within the time specified by on the Certificate of Substantial Completion, as soon as possible and request final inspection and final acceptance of the portion of the Work occupied. Upon completion of final inspection and receipt of an application for final payment, CONTRACT ADMINISTRATOR and CONSULTANT shall issue a Final Certificate of Payment relative to the occupied area. 16.2.5 If CITY finds it necessary to occupy or use a portion or portions of the Work prior to Substantial Completion thereof, such occupancy or use shall not commence prior to a time mutually agreed upon by CITY and CONTRACTOR and to which the insurance company or companies providing the property insurance have consented by endorsement to the policy or policies. Insurance on the unoccupied or unused portion or portions shall not be canceled or lapsed on account of such partial occupancy or use. Consent of CONTRACTOR and of the insurance General Conditions -24- company or companies to such occupancy or use shall not be unreasonably withheld. ARTICLE 17 COST OF THE WORK 17.1 The term "Cost of the Work" shall mean the sum of all direct costs necessarily and reasonably incurred and paid by the CONTRACTOR in the performance of the Work. Such costs shall be at rates not higher than those customarily paid in the locality of the Project except with the prior written consent of CITY. The Cost of the Work shall include only those items set forth in this Article 17.1, and shall not include any items listed in Article 17.2. 17.1.1 Subcontractor Costs: (a) Where the work is covered by unit prices contained in the Contract Documents or an applicable subcontract, by application of unit prices to the quantities of items involved. If the quantity of any item of subcontractor work that is covered by a unit price is increased or decreased by more than twenty percent (20%) from the quantity of such work indicated in the Contract Documents, an appropriate Change Order may be issued to adjust the unit price, if warranted. (b) By mutual acceptance of a lump sum which subcontractor, CONTRACTOR and CITY acknowledge contains a component for overhead and profit, which shall be subject to the limitation of subcontractor fees set forth in Article 12.5.3. Whenever a change in subcontractor 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 obtained from the subcontractor and acceptable to CONSULTANT and CONTRACT ADMINISTRATOR. The breakdown shall list the quantities and unit prices for materials, labor, equipment and other items of cost. Whenever a change involves more than one subcontractor and the change is an increase in the GMP, overhead and profit percentage of each subcontractor and CONTRACTOR, if applicable, shall be itemized separately. (c) 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, subject to the limitation on subcontractor's fees set forth in Article 12.5.3. General Conditions -25- (d) If changes to subcontracted work affect the GMP, such changes shall be accomplished in accordance with Article 12. "Change Orders." The amount of decrease in the Guaranteed Maximum Price (GMP) for any change which results in a net decrease in cost, will be the amount of the actual net decrease. When both additions and decreases are involved in anyone change, the combined affect shall be figured on the basis ofthe net change in the GMP, if any. (e) Payment for subcontractor costs may include payment for materials delivered to the Project site and stored for later incorporation into the Work, provided the CONTRACTOR provides to the CONSULTANT and CONTRACT ADMINISTRATOR a detailed invoice for such materials including the description, quantities, activity number and reference to the approved Schedule of Values, copies of vendors' invoices totaling the amount requested and releases of lien from such vendors, as well as a Bill of Sale from the CONTRACTOR to the CITY for the stored materials. 17.1.2 CONTRACTOR'S Labor Costs: Payroll costs for employees in the direct employ of CONTRACTOR in the performance of the work described in the Contract, as set forth in Attachment IV, attached hereto. Payroll costs for employees not employed full time on the work covered by the Contract shall be apportioned on the basis of their time spent on the work. Payroll costs shall include salaries and wages plus the labor burden to cover cost of fringe benefits which shall include social security contributions, unemployment, excise and payroll taxes, and workers' compensation. Payroll costs and the above-referenced labor burden rates shall exclude costs of any insurance that may be provided by the CITY. 17.1.3 Materials and Equipment: 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, adjusted in accordance with Article 18, pertaining to discounts, rebates or refunds, if applicable; rentals of all construction equipment and machinery and the parts thereof whether rented from CONTRACTOR or others in accordance with rental agreements and the costs oftransportation, loading, unloading, installation, dismantling and removal thereof, all in accordance with the terms of said agreements. Payment may be made for materials delivered to the Project site and stored for later incorporation into the Work, provided the CONTRACTOR provides to the CONSULTANT and CONTRACT ADMINISTRATOR a detailed invoice for such General Conditions -26- materials including the description, quantities, activity number and reference to the approved Schedule of Values, copies of vendor's invoices totaling the amount requested and releases of lien from such vendors as well as a Bill of Sale from the CONTRACTOR to the CITY for the stored materials. 17.1.4 Miscellaneous costs: (a) The receipted cost of telephone, telegrams, postage, photographs, blueprints, office supplies, first aid supplies and related miscellaneous costs reasonably incurred in direct support of the Work at the Project Location. (b) Premiums (Net) on bonds and insurance, including subcontractor bonds, if any, that the CONTRACTOR is obligated to secure and maintain under the terms of the Contract Documents and such other insurance and bonds as may be required, subject to the written approval of the CITY. Premiums paid as part of Contractor's Cost shall be net of trade discounts, volume discounts, dividends and other adjustments. All insurance and bonds shall be provided by companies acceptable to the CITY. Self insurance by the CONTRACTOR or insurance through any affiliates of CONTRACTOR shall not be permitted without the CITY's prior written approval. CITY's approval shall not be required on subcontractor bonds, and premiums thereof shall be considered a Cost of the Work. (c) The cost of obtaining and using any utility services required for the Work that are not paid directly by CITY, including fuel and sanitary services at the Project site. (d) The cost of removal of debris from the site. The Project site, lay-down locations, and staging sites will be kept clear of all debris on a daily basis. All subcontracts shall require subcontractors to promptly (no less than weekly) remove all debris created by their activities, and the CONTRACTOR shall exercise its best efforts to enforce such requirements or to effect the removal of the debris of the subcontractors who fail in this regard. Provided, however, the CONTRACTOR shall not be required to remove debris created by the CITY's separate contractors except pursuant to Change Order procedures set forth herein. (e) The cost and expenses, actually sustained by the CONTRACTOR in connection with the Work, of protecting and repairing adjoining property, if required, except to the extent that any General Conditions -27- such cost or expense is the responsibility of the CONTRACTOR under Article 20, reimbursable by insurance or otherwise; due to the failure of the CONTRACTOR to comply with the requirements of the Contract Documents with respect to insurance; or, due to the failure of any officer of the CONTRACTOR or of any of its representatives having supervision or direction of the Work to exercise good faith or the standard of care normally exercised in the conduct of the business of a general contractor experienced in the performance of work of the magnitude, complexity and type encompassed by the Contract Documents, in any of which events any such expenses shall not be included in CONTRACTOR's costs. (f) Federal, state, municipal, sales, use and other taxes, as applicable to the Project, all with respect to services performed or materials furnished for the Work, it being understood that none of the foregoing includes federal, state or local income or franchise taxes. (g) All reasonable costs and expenditures necessary for the operation ofthe Project job site office, including cost offield computer equipment and software. (h) The proportion of necessary transportation, travel and subsistence expenses of CONTRACTOR's employees, excluding travel time, incurred in discharge of duties connected with the Work, provided that any travel or subsistence expenses must be approved in advance by the CONTRACT ADMINISTRATOR and shall be reimbursable only in accordance with Section 112.061, Florida Statutes. Any cost or expense of local travel to and from the site of the Work shall not be reimbursable as Cost of the Work. (i) 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 workers, which are consumed in the performance of the work, and cost less market value of such items used but not consumed which remain the property of CONTRACTOR. (j) Deposits lost for causes other than CONTRACTOR's negligence; royalty payments and fees for permits and licenses. (k) Cost of premiums for additional bonds and insurance required because of changes in the work. General Conditions -28- (I) Cost of shuttling employees to and from the job site to the designated parking and/or staging area, if required. (m) Cost of special consultants, including, but not limited to, engineers, architects, testing laboratories, surveyors, lawyers and accountants, employed for services specifically related to the Work, if approved in advance by the CONTRACT ADMINISTRATOR. (n) Any other expenses or charges incurred, with the prior written approval ofthe CONTRACT ADMINISTRATOR, in the performance of the Work. 17.2 "Overhead" is defined as any and all other costs, not referenced in Article 17.1, of the CONTRACTOR and its operation which are not in direct support of the Project. The CONTRACTOR agrees to furnish and perform, as a part of the Contractor's Fee and without reimbursement, said overhead items which include, but are not limited to, the following materials and services. The term "Cost of the Work" shall not include any of the following: 17.2.1 Payroll costs and other compensation of CONTRACTOR's officers, executives, principals (of partnership and sole proprietorship), 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 that are not specifically included in the agreed-upon schedule of job classifications referred to in Attachment IV or identified as necessary labor on Attachment IV, all of which are to be considered administrative costs covered by CONTRACTOR's fee. 17.2.2 Any part of CONTRACTOR'S capital expenses, including interest on CONTRACTOR'S capital employed for the Work and charges against CONTRACTOR for delinquent payments. 17.2.3 Other overhead, general expense costs or charges of any kind and the cost of any item not specifically and expressly included in Article 17.1. 17.2.4 Costs in excess of the Guaranteed Maximum Price. 17.2.5 Entertainment and meal expenses and charges of a personal nature. 17.2.6 Bonuses, profit-sharing or other special labor charges not included in Article 17.1, above. General Conditions -29- 17.2.7 Any outside legal fees incurred without prior written approval from the CITY Attorney's Office. 17.2.8 All costs associated with the selection process, response to the Request for Letters of Interest, and attendance at any presentations, meetings or negotiation sessions prior to execution of this Agreement. ARTICLE 18 DISCOUNTS, REBATES AND REFUNDS 18.1 All cash discounts obtained on payments made by the CONTRACTOR shall accrue to the CITY unless the CONTRACTOR actually advanced its own funds, prior to receipt of funds from CITY, to make the payment giving rise to the discount. When CONTRACTOR becomes aware that a cash discount may be available to CITY, CONTRACTOR shall, prior to advancing its own funds, notify CONTRACT ADMINISTRATOR of such opportunity so CITY can make the required payment to achieve the discount for the CITY. CONTRACTOR shall only advance its own funds if CITY declines to make the early payment. 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. ARTICLE 19 SUBCONTRACT REQUIREMENTS 19.1 On all subcontracts where the bid exceeds $100,000, the CITY may require the CONTRACTOR to require that its subcontractors provide a 100% performance bond and a 100% labor and material payment bond from a surety company authorized to do business in the State of Florida by the Department of Insurance. If the CONTRACTOR wishes to award subcontracts to contractors unable to supply this bonding, he must obtain prior written consent of the Contract Administrator, which consent shall not be withheld unreasonably. The CONTRACTOR can submit a letter to the CITY at the pre-construction meeting establishing clearly which sub- contractors will be furnishing a bond and which will not. The absence of sub- contractors bond does not free the CONTRACTOR from its obligation to the CITY under the CONTRACTOR'S performance and payment bonds. 19.2 Workforce - The subcontractor must agree to perform no less than 10% of the assigned Project construction work utilizing its own employees. 19.3 Subcontractor experience - The subcontractor must have successfully completed no less than two projects of similar size and complexity within the last five years. General Conditions -30- 19.4 Supervision - the subcontractor must agree to provide field (on-site) supervision through a named superintendent for each trade (general concrete forming and placement, masonry, mechanical, plumbing, electrical and roofing) included in the subcontract. In addition, the subcontractor shall assign and name a qualified employee for scheduling direction for its work. The supervisory employees of the subcontractor (including field superintendent, foreman and schedulers at all levels) must have been employed in a supervisory (leadership) capacity of substantially equivalent level on a similar project for at least two years within the last five years. The subcontractor shall include a resume of experience for each employee identified by him to supervise and schedule his work. 19.5 All subcontracts shall provide: 19.5.1 LIMITATION OF REMEDY - NO DAMAGES FOR DELAY That the subcontractor's exclusive remedy for delays in the performance of the contract caused by events beyond its control, including delays claimed to be caused by the CITY or CONSULTANT or attributable to the CITY or CONSULTANT and including claims based on breach of contract or negligence, shall be an extension of its contract time. In the event of a change in the work, the subcontractor's claim for adjustments in the contract sum are limited exclusively to its actual costs for such changes plus no more than 10% for overhead and profit and bond costs. Each subcontract shall require the subcontractor to expressly agree that the foregoing constitute the sole and exclusive remedies for delays and changes in the work and thus eliminate any other remedies for claim for increase in the contract price, damages, losses or additional compensation. The CONTRACTOR must enter into Agreements with the sub-contractors that clearly delineate and accept this responsibility by the sub-contractors. 19.5.2 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 such 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. 19.5.3 Each subcontract shall include a provision stating that the subcontract is assignable to the CITY in the event of a termination of all or part of the Contract. Said assignment shall be at the sole option and General Conditions -31- discretion of the CITY and, if agreed to by CITY shall be upon the same terms and conditions as the original subcontract, unless otherwise mutually negotiated by CITY and subcontractor. 19.5.4 Responsibilities for Acts and Omissions - The CONTRACTOR shall be responsible to the CITY for the acts and omissions of his employees and agents and his subcontractors, their agents and employees, and all other persons performing any of the work or supplying materials under a contract to the CONTRACTOR. 19.5.5 Subcontracts to be provided. The CONTRACTOR shall include a copy of each subcontract, including the general supplementary conditions, in the Project Manual. ARTICLE 20 INSURANCE REQUIREMENTS 20.1 CONTRACTOR shall secure, pay for and, except as otherwise provided herein, maintain at all times until all of CONTRACTOR'S work to be performed under this Contract is completed and accepted by CITY, the insurance specified below. 20.2 Insurance Coverage shall, at a minimum, be as follows: 20.2.1 Workers Compensation Insurance/Emplovers Liabilitv. Workers' Compensation and Employers Liability shall be provided pursuant to and as required by Florida Statutes. 20.2.2 Primary Liabilitv Insurance. Primary liability insurance in a form providing coverage not less than a Commercial General Liability insurance policy having minimum limits of One Million Dollars ($1,000,000) per occurrence combined single limit for bodily injury liability and property damage liability and will include: [x] Employees; [x] Premises and/or operations; [x] Independent contractors; [x] Completed Operations, which shall remain in force for a period of at least three (3) years after completion of all work required under the Contract; [x] Explosion, Collapse and Underground Coverage; [x] Broad Form Property Damage; General Conditions -32- [x] Broad Form Contractual Coverage applicable to this specific contract, including any hold harmless and/or indemnification agreement; [x] Personal Injury Coverage with Employee and Contractual Exclusions removed, with minimum limits of coverage equal to those required for Bodily Injury Liability and Property Damage Liability. 20.2.3 Business Automobile Liabilitv. Business Automobile Liability with minimum limits of One Million Dollars ($1,000,000) from the CONTRACTOR, per occurrence, combined single limit for Bodily Injury Liability and Property Damage Liability. Coverage shall be afforded on a form no more restrictive than the latest edition of the Business Automobile Liability policy, without restrictive endorse- ments, as filed by the Insurance Services Office, and must include owned and non-owned vehicles. 20.2.4 Excess Liability Insurance. Excess liability insurance shall be provided with minimum limits of Five Million Dollars ($5,000,000). 20.2.5 Builder's Risk insurance with a minimum limit of Five Million Dollars ($5,000,000) covering the materials, equipment and supplies that are intended for specific installation in the Project. Coverage will be on an "All Risks" basis, subject to policy exclusions, including coverage against fire, lightning, wind damage, hail, explosion, riot or civil commotion, aircraft and other vehicles, collapse, water damage, theft, flood and earthquake. The insurance described in this Article 20.2.5 will not cover tools or clothing of workers, or any tools, equipment, protective fencing, scaffolding, staging, towers and forms owned or rented by CONTRACTOR or any su bcontractors. 20.2.6 All insurance policies must be provided by Insurance Carriers licensed and approved to conduct business in the State of Florida with an A.M. Best rating of B+ VI or more. 20.2.7 All insurance policies (excluding Workers' Compensation / Employers Liability) shall name the CITY as an additional insured. 20.3 CONTRACTOR Obliqations. CONTRACTOR shall not violate or knowingly permit to be violated any conditions of the policies of insurance provided under the terms of this Contract and shall at all times satisfy the requirements of the insurance companies issuing them. General Conditions -33- CONTRACTOR shall assist and cooperate in every manner possible in connection with the adjustment of all claims arising out of their performance of the Work or portion of the Work, and shall cooperate with CITY, its insurance representative and/or insurance carrier(s) with the adjustment, settlement, mediation or litigation of all said claims, court proceedings and/or participation in settlement conferences as may be required. 20.4 CONTRACTOR Insurance. CONTRACTOR shall at all times until all of CONTRACTOR'S work to be performed under this Contract is completed and accepted by CITY, provide and maintain insurance of the type and in limits as set forth. Ifthe initial insurance expires prior to the completion ofthe Project, renewal or replacement policies shall be furnished at least thirty (30) days prior to the date of expiration. The policy(ies) must be endorsed to provide CITY with at least thirty (30) days written notice of cancellation and/or restriction. 20.4.1 CONTRACTOR shall furnish to the CONTRACT ADMINISTRATOR Certificates of Insurance or endorsements evidencing the insurance coverage required by this Article within fifteen (15) calendar days after notification of award of the Contract or within fifteen (15) calendar days after execution of the Contract, whichever is later. The Certificates of Insurance shall name the types of policies provided, refer specifically to this Contract, state that such insurance is as required by the Contract, and name the additional insured herein. 20.4.2 The legal name of the CITY is "City of Miami Beach, Florida" which name shall be used in all insurance documentation. 20.4.3 CONTRACTOR shall require all policies of insurance provided pursuant to this Article 20 to include clauses providing that each underwriter shall waive all of its rights of recovery, under subrogation or otherwise, against CITY, the CONTRACTOR and all subcontractors. 20.5 SubroQation and Waiver. CONTRACTOR hereby waives, and shall require all its subcontractors to waive, all rights of recovery against CITY, the Mayor and City Commissioners, its officers, agents and employees, which rights of recovery CONTRACTOR may have or may acquire pursuant to deductible clauses in, or inadequacy of limits of, any policies of insurance that are in any way related to the Work and that are secured by CONTRACTOR. General Conditions -34- ARTICLE 21 INDEMNIFICATION 21.1 CONTRACTOR shall indemnify and hold harmless CITY, its officers, agents, 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. Except as specifically provided herein, this Agreement does not require CONTRACTOR to indemnify CITY, its employees, officers, or agents from any liability, damage, loss, claim, action, or proceeding. These indemnifications shall survive the term of this Contract. In the event that any action or proceeding is brought against CITY by reason of any such claim or demand, CONTRACTOR shall, upon written notice from CITY, resist and defend such action or proceeding by counsel satisfactory to CITY. 21.2 The indemnification provided above shall obligate CONTRACTOR to defend at its own expense to and through appellate, supplemental or bankruptcy proceeding, or to provide for such defense, at CITY'S option, any and all claims of liability and all suits and actions of every name and description covered by Article 20 that may be brought against CITY or persons employed or utilized by CONTRACTOR. ARTICLE 22 PERFORMANCE AND PAYMENT BOND AND QUALIFICATIONS OF SURETIES 22.1 Within fifteen (15) calendar days of being notified of the award, CONTRACTOR shall furnish a Performance Bond and a Payment Bond. 22.2 Each Bond shall be in the amount of one hundred percent (100%) of the portion of the Contract Price allocable to the Project Phase to be constructed, guaranteeing to CITY the completion and performance of the work covered in such Phase of the Contract as well as full payment of all suppliers, material providers, laborers, or subcontractors employed pursuant to this Project. Each Bond shall be with a surety company which is qualified pursuant to Article 22.5.3. 22.3 Each Bond shall continue in effect for one year after final completion and acceptance of each respective Phase of the Work and up to an including completion of the warranty period, with liability equal to one hundred percent (100%) of the allocated portion of said Phase. 22.4 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) General Conditions -35- referenced above shall be recorded in the public records of Miami-Dade County and provide CITY with evidence of such recording. 22.5 Qualification of Surety 22.5.1 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 years. 22.5.2 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 coinsur- ance, reinsurance, or other methods in accordance with Treasury Circular 297, revised September 1,1978 (31 CFR Section 223.10, Section 223.111). Further, the su rety company shall provide CITY with evidence satisfactory to CITY, that such excess risk has been protected in an acceptable manner. 22.5.3 The CITY will accept a surety bond from a company with a rating of A (Class 4) or better for bonds up to $10 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. Amount of Bond Policyholder's Ratinqs Financial Size CateQorv 500,001 to 1,000,000 1,000,001 to2,OOO,000 2,000,001 to 5,000,000 5,000,001 to 10,000,000 10,000,001 to 25,000,000 25,000,001 to 50,000,000 50,000,001 or more B+ B+ A A A A A Class I Class II Class III Class IV Class V Class VI Class VII General Conditions -36- ARTICLE 23 INDEPENDENT CONTRACTOR 23.1 In performing its obligations hereunder, the CONTRACTOR shall be deemed an independent contractor and not an agent or employee of the CITY. The CONTRACTOR shall be solely responsible for and have control over construction means, methods, techniques, sequences and procedures and for coordinating all portions of the Work under this Contract, unless the Contract Documents give other specific instructions concerning these matters. ARTICLE 24 INSPECTION OF WORK 24.1 As to means and methods, the CONTRACTOR represents that it has inspected the location or locations of the Work and has satisfied itself as to the condition thereof and that the Guaranteed Maximum Price is just and reasonable compensation for all Work, including all foreseen or reasonably foreseeable risks, hazards and difficulties in connection therewith. 24.2 The CITY, its CONTRACT ADMINISTRATOR, and the CONSULTANT at all times shall have access to the Work for inspection thereof, but shall not be obligated to conduct any such inspection. The CONTRACTOR shall provide proper and safe facilities for such access and inspection by the CITY, its CONTRACT ADMINISTRATOR and CONSULTANT. If any of the Work is required to be inspected or approved by any public authority, the CONTRACTOR shall cause such inspection or approval to be performed. 24.3 No inspection performed or failed to be performed by the CITY, its CONTRACT ADMINISTRATOR or the CONSULTANT hereunder shall be a waiver of any of the CONTRACTOR's obligations hereunder or be construed as an approval or acceptance of the Work or any part thereof. 24.4. The CONTRACTOR shall check all materials and labor entering into the Work and shall keep such full and detailed accounts as may be necessary to determine the Contractor's Cost. ARTICLE 25 PROJECT RECORDS 25.1 CITY or its designee shall have the right to inspect and copy the books and records and accounts of CONTRACTOR and all subcontractors including but not limited to books, records, correspondence, instructions, drawings, receipts, payment records, General Conditions -37- vouchers, and memoranda 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 preserve and make available to CITY all financial records, supporting documents, statistical records and any other documents which relate to the Project and to any claim for the required retention period of the Florida Public Records Act (Chapter 119, Fla. Stat.), if applicable, and, if the Public Records Act is not applicable, for a period of three (3) years following final completion of the Project. During the Project and for the appropriate records retention period, CONTRACTOR shall provide CITY access to its books and records at CONTRACTOR's usual place of business upon seventy-two (72) hours written notice. If any audit has been initiated and audit findings have not been resolved at the end of the retention period or three (3) years, whichever is longer, the books, records and accounts shall be retained until resolution of the audit findings. If the Florida Public Records Act (Chapter 119, Fla. Stat.) is determined by CITY to be applicable to CONTRACTOR's records, CONTRACTOR shall comply with all requirements thereof. Any incomplete or incorrect entry in such books, records and accounts shall be a basis for CITY's disallowance and recovery of any payment upon such entry. 25.2 CONTRACTOR's records shall include, but not be limited to, accounting records (hard copy, as well as computer readable data), written policies and procedures; subcontractor files (including proposals of successful and unsuccessful bidders and bid recaps), original estimates, estimating work sheets, correspondence, change order files (including, but not limited to, documentation covering negotiated settlements), back charge logs and supporting documentation, general ledger entries detailing cash and trade discounts earned, insurance rebates and dividends and any other supporting evidence deemed necessary by the CITY to substantiate charges related to the Contract Documents (all of the foregoing hereinafter referred to as "records"). 25.3 CONTRACTOR shall require all subcontractors, insurance agents and material suppliers (payees) to keep and maintain comparable records for the same time period and to permit the CITY to review, inspect and audit such records. CONTRACTOR shall include such requirements in all written subcontracts and purchase orders issued. 25.4 If an audit inspection or other examination by the CITY or the CITY's representatives in accordance with this Article, discloses overcharges (of any nature) by the CONTRACTOR to the CITY in excess of one (1 %) percent of the total billings, the cost of the CITY's audit (whether performed by the CITY or outside auditors) shall be reimbursed or paid to the CITY by the CONTRACTOR. Any adjustments and/or payments which must be made as a result of any such audit, General Conditions -38- inspection or examination of the CONTRACTOR's invoices and/or records shall be made within a reasonable amount of time (not to exceed thirty (30) days) from presentation of the CITY's findings to the CONTRACTOR. ARTICLE 26 SURVEY 26.1 Concurrent with the Final Request for Payment, the CONTRACTOR shall furnish final surveys of As-Built conditions in electronic file, AUTOCAD 2000 format utilizing CAD Standards, as designated by the CONSULTANT, in addition to three (3) sets of hard copy, showing the exact locations of all structures and underground site utilities installed by CONTRACTOR, including all water, sewer, gas, fuel, telephone, security and electric lines and main, and locations of all easements for such utilities then existing. Such surveys shall be prepared by a licensed Professional Land Surveyor who shall certify that the Work is installed and erected entirely upon the Project location and within the building restriction lines, if any, and does not overhang or encroach upon any easement or right-of-way of others. ARTICLE 27 TITLE TO WORK 27.1 Immediately upon delivery of material to the Project site or the performance of any part of the Work, as between the CONTRACTOR and the CITY, title thereof shall vest in the CITY; provided, however, the vesting of such title shall not impose any obligations on the CITY or relieve the CONTRACTOR from any of its obligations hereunder. ARTICLE 28 WORK IN PROGRESS 28.1 The CONTRACTOR shall protect and prevent damage to all phases of the Work, and any existing facilities or improvements, including but not limited to the protection thereof from damage by the elements, theft or vandalism. 28.2 The CITY reserves the right to perform work related to the Project with its own personnel and to award separate contracts in connection with other portions of the Project. The CONTRACTOR shall cooperate and coordinate its Work with the work of the CITY or said separate contractor. The CONTRACTOR shall afford the CITY and any of the CITY's separate contractor's reasonable access to the Work for storage of material and equipment and for the prosecution of their work and shall connect and coordinate its Work with theirs as far as is reasonably inferable from the Contract Documents. General Conditions -39- ARTICLE 29 OCCUPATIONAL HEALTH AND SAFETY 29.1 In compliance with Chapter 442, Florida Statutes, any toxic substance listed in Section 38F-41.03, Florida Administrative Code, delivered as a result of this Project must be accompanied by a Material Safety Data Sheet (MSDS) which may be obtained from the manufacturer. The MSDS must include the following information: 29.1.1 The chemical name and the common name of the toxic substance. 29.1.2 The hazards or other risks in the use of the toxic substance, including: 29.1.2.1 The potential for fire, explosion, corrosion, and reaction; 29.1.2.2 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 29.1.2.3 The primary routes of entry and symptoms of overexposure. 29.1.3 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. 29.1.4 The emergency procedure for spills, fire, disposal, and first aid. 29.1.5 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. 29.1.6 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. 29.2 The CONTRACTOR agrees that it shall not knowingly transport to, use, generate, dispose of, or install at the Project site any Hazardous Substance, (as defined in Section 29.5), except in accordance with applicable Environmental Laws. Further, in performing the work, the CONTRACTOR shall not knowingly cause any release of hazardous substances into, or contamination of, the environment, including the soil, the atmosphere, any water course or ground water, except in accordance with applicable Environmental Laws. General Conditions -40- 29.3 In the event the CONTRACTOR encounters on the Project site any Hazardous Substance, or what the CONTRACTOR reasonably believes to be a Hazardous Substance, and which is being introduced to the Work, or exists on the Project Location, in violation of any applicable Environmental Laws, the CONTRACTOR shall immediately stop work in the area affected and report the condition to the CONSULTANT in writing. The Work in the affected area shall not thereafter be resu med except by written authorization of the CONSULTANT if in fact a Hazardous Substance has been encountered and has not been rendered harmless. 29.4 The CONTRACT ADMINISTRATOR may direct the CONTRACTOR to remediate and/or render harmless the Hazardous Substance in accordance with any applicable permits then in existence, but the CONTRACTOR shall not be required to remediate and/or render harmless the Hazardous Substance absent such direction. If the CONTRACTOR is not so directed, CONTRACTOR shall not be required to resume work in any area affected by the Hazardous Substance until such time as the Hazardous Substance has been remediated and/or rendered harmless. 29.5 For purposes of this Contract, the term "Hazardous Substance" shall mean and include, but shall not be limited to, any element, constituent, chemical, substance, compound or mixture, which are defined in or included under or regulated by any local, state or federal law, rule, ordinance, by-law, or regulation pertaining to environmental regulation, contamination, clean-up or disclosure, including, without limitation, The Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), The Resource Conservation and Recovery Act ("RCRA"), The Toxic Substances Control Act ("TSCA"), The Clean Water Act ("CWA"), The Clean Air Act ("CAA"), and The Marine Protection Research and Sanctuaries Act ("MPRSA"), The Occupational Safety and Health Act ("OSHA"), The Superfund Amendments and Reauthorization Act of 1986 ("SARA"), or other state superlien or environmental clean-up or disclosure statutes including all state and local counterparts of such laws (all such laws, rules and regulations being referred to collectively as "Environmental Laws"). It is the CONTRACTOR's responsibility to comply with this Article 20 based on the law in effect at the time its services are rendered and to comply with any amendments to those laws for all services rendered after the effective date of any such amendments. ARTICLE 30 CITY LICENSES PERMITS AND FEES 30.1 All permit fees payable to the City of Miami Beach shall be waived. 30.2 Occupational Licenses must be in effect as required by Chapter 205, Florida Statutes, and must be submitted within fifteen (15) days of execution of this Contract. General Conditions -41- Licenses, permits and fees which may be required by the State of Florida, State Agencies or by other local governmental entities are not included in the above. 30.3 The CONTRACTOR shall be responsible for obtaining all necessary licenses, building and other permits, and similar authorizations from governmental authorities required or necessary to perform its obligations hereunder, and shall give all notices required by, and otherwise comply with, all applicable laws, ordinances, rules, regulations and restrictions. ARTICLE 31 PERSONNEL 31.1 All personnel used or employed by the CONTRACTOR and subcontractors in the performance of the Work shall be qualified by training and experience to perform their assigned tasks. At the request of the CITY, the CONTRACTOR shall not use in the performance of the Work any personnel deemed by the CITY to be incompetent, careless, unqualified to perform the work assigned to that person, or otherwise unsatisfactory to the CITY. 31.2 The CONTRACTOR agrees that in the performance of the Work called for by this Contract, it will employ only such labor, and engage subcontractors that employ only such labor, as will not delay or interfere with the speedy and lawful progress of the Project, and as will be acceptable to and work in harmony with all other workers employed on the Project site or on any other building, structure, or other improvement which the CONTRACTOR or any other contractor may then be erecting or altering on behalf of the CITY. The CONTRACTOR agrees that it shall not employ any labor that will interfere with labor harmony at the Project site or with the introduction and storage of materials and the execution of work by other contractors or by subcontractors. 31.3 CONTRACTOR shall furnish the CONTRACT ADMINISTRATOR, on request, resumes of CONTRACTOR'S key personnel involved in the day-to-day work on the Project. General Conditions -42- ARTICLE 32 CONTRACTOR'S WARRANTIES 32.1 CONTRACTOR warrants to CITY that all materials and equipment 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, CONTRACTOR shall furnish satisfactory evidence as to the kind and quality of materials and equipment. This warranty is not limited by the provisions of Article 33 herein. 32.2 The CONTRACTOR further represents and warrants: That it is financially solvent, able to pay its debts as they mature, and is possessed of sufficient working capital to perform this Contract; that it is able to furnish the Materials, and Services; that it is experienced in and competent to perform the Work contemplated by this Contract; and it is qualified to do the Work herein and is authorized to do business in the state in which the Project is located; that the CONTRACTOR holds a license, permit or other special license to perform the services included in this Contract, as required by law, or employs or works under the general supervision of the holder of such license, permit or special license; that the Work shall be constructed in a good and proficient manner, free from defects, and in strict compliance with the Contract Documents. ARTICLE 33 DEFECTIVE WORK 33.1 CONSULTANT and CONTRACT ADMINISTRATOR shall have the authority to reject or disapprove work which CONSULTANT and CONTRACT ADMINISTRATOR find to be defective. If required by CONSULTANT and CONTRACT ADMINISTRATOR, CONTRACTOR shall promptly either correct all defective work or remove such defective work and replace it with nondefective work. CONTRACTOR shall pay all direct, indirect and consequential costs of such removal or corrections including cost of testing laboratories and personnel. Such costs shall be included in the GMP. 33.2 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 by CONSULTANT and CONTRACT ADMINISTRATOR, 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 General Conditions -43- removals, corrections or repairs, shall be paid for out of any monies due or which may become due to CONTRACTOR and deducted from the GMP, or may be charged against the Performance Bond. In the event offailure of CONTRACTOR to make all necessary repairs promptly and fully, CITY may declare a default. 33.3 If, within one (1) year after the date of Final Completion of each Phase, or such longer period of time as may be prescribed by the terms of any applicable special warranty required by 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 hereof and any claim regarding latent defects. 33.4 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. 33.5 The CONTRACTOR shall (i) replace any part of the Work that fails to conform with the requirements of the Contract Documents that appear during progress of the Work on the Project; (ii) remedy any defects in the Work due to faulty materials or workmanship which appear within a period of (1) year from the time of Final Completion of each Phase of the Work hereunder or within such longer period of time as may be set forth in the Plans, Specifications and Addenda or other Contract Documents or as may be required by law; and (iii) replace, repair or restore any parts of the Project or furniture, fixtures, equipment or other items placed therein (whether by the CITY or any other party) that are injured or damaged by any such parts of the Work that do not conform to the requirements of the Contract Documents or are due to defects in the Work. The provisions of this Article shall not apply to corrective work attributable solely to the acts of omissions of any separate contractor or su bcontractor of the CITY unless the CONTRACTOR is acting in such capacity or capacities. The cost to the CONTRACTOR of performing any of its obligations under this Article shall be within the Guaranteed Maximum Price. The CONTRACTOR's responsibility to make repairs and redo work under this Article, is in addition to the CONTRACTOR's responsibility to the CITY for any other damages of any kind for which the CONTRACTOR would be legally responsible. 33.6 If the CITY and the CONTRACTOR deem it inexpedient to require the correction of work damaged or not performed in accordance with the Contract Documents, an equitable deduction from the Guaranteed Maximum Price shall be made by agreement between the CONTRACTOR and the CITY. Until such settlement, the CITY may withhold such sums as the CITY deems just and reasonable from moneys, if any, due the CONTRACTOR. If no moneys are held by the CITY, General Conditions -44- reimbursement shall be made to the CITY within thirty (30) days by the CONTRACTOR. 33.7 The CONTRACTOR's express warranty herein shall be in addition to, and not in lieu of, any other warranties or remedies the CITY may have under this Contract, at law, or in equity for defective Work. ARTICLE 34 SIGNAGE 34.1 Any requirements for a Project sign shall be as set forth within the Technical Specifications section. 34.2 All construction signage, including, but not limited to that appearing on tower cranes and other construction equipment located at the Project Location, shall be subjectto the prior written approval of the CONTRACT ADMINISTRATOR. The CONTRACTOR recognizes that all signage may be disallowed, in the CONTRACT ADMINISTRATOR's sole discretion, and that existing signage or advertising on construction equipment, field officers, trailers, construction fences, etc., may be required to be masked or deleted, all at no cost or expense to the CITY. Such signage will be considered an overhead expense pursuant to Article 17.2 and shall not be included within the Cost of the Work. ARTICLE 35 PUBLIC ENTITY CRIMES ACT 35.1 In accordance with the Public Entity 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 CITY, may not submit a bid on a contract with 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 CITY, may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with CITY, and may not transact any business with 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 termination of this Contract, and may result in debarment from CITY's competitive procurement activities. General Conditions -45- ARTICLE 36 OWNERSHIP OF CONTRACT DOCUMENTS 36.1 Any and all reports, photographs, surveys, Plans, Specifications, detail drawings and other drawings prepared or created in connection with the Project are and shall remain the property of the CITY and are not to be used by the CONTRACTOR on any other project and shall be relinquished to the CITY at Final Completion or upon termination, in the requested form or format, through delivery of same to the CONSULTANT within ten (10) days after receipt of written notice, whether finished or unfinished, provided, however, that the CONTRACTOR may maintain one record set of as-built drawings, if applicable. CITY may withhold any payments then due to CONTRACTOR until CONTRACTOR complies with the provisions of this section. ARTICLE 37 ASSIGNMENT 37.1 The CONTRACTOR shall not assign this Contract or subcontract it as a whole without the prior written consent of the CITY; nor shall the CONTRACTOR assign any monies due or to become due to it hereunder, without the previous written consent of the CITY. ARTICLE 38 NONDISCRIMINATION. EQUAL EMPLOYMENT OPPORTUNITY AND AMERICANS WITH DISABILITIES ACT: 38.1 CONTRACTOR shall not unlawfully discriminate against any person in its operations and activities in its use or expenditure of the funds or any portion of the funds provided by this Contract and shall affirmatively comply with all applicable provisions of the Americans with Disabilities Act (ADA) in the course of providing any services funded in whole or in part by CITY, including Titles I and II of the ADA (regarding nondiscrimination on the basis of disability), and all applicable regulations, guidelines, and standards. CONTRACTOR's decisions regarding the delivery of services under this Contract shall be made without regard to or consideration of race, age, religion, color, gender, sexual orientation (City of Miami Beach Human Rights Ordinance), national origin, marital status, physical or mental disability, political affiliation, or any other factor which cannot be lawfully used as a basis for service delivery. General Conditions -46- CONTRACTOR shall not engage in or commit any discriminatory practice in violation of the City of Miami Beach Human Rights Ordinance in performing any services pursuant to this Contract. CONTRACTOR shall comply with Title I of the Americans with Disabilities Act regarding nondiscrimination on the basis of disability in employment and further shall not discriminate against any employee or applicant for employment because of race, age, religion, color, gender, sexual orientation, national origin, marital status, political affiliation, or physical or mental disability. In addition, CONTRACTOR shall take affirmative steps to ensure nondiscrimination in employment against disabled persons. Such actions shall include, but not be limited to, the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay, other forms of compensation, terms and conditions of employment, training (including apprenticeship), and accessibility. CONTRACTOR shall take affirmative action to ensure that applicants are employed and employees are treated without regard to race, age, religion, color, gender, sexual orientation, national origin, marital status, political affiliation, or physical or mental disability during employment. Such actions shall include, but not be limited to, the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay, other forms of compensation, terms and conditions of employment, training (including apprenticeship), and accessibility. ARTICLE 39 WAIVER 39.1 No consent or waiver, express or implied, by either party to this Contract to or of any breach or default by the other in the performance of any obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other or future breach or default by such party hereunder, nor deemed to be a modification of this Contract. Failure on the part of any party hereto to complain of any act or failure to act of the other party or to declare the other party in default hereunder, irrespective of how long such failure continues, shall not constitute a waiver of the rights of such party hereunder. Inspection by, payment by or tentative approval or acceptance by the CITY, or the failure of the CITY to perform any inspection hereunder, shall not constitute a final acceptance of the Work or any part thereof and shall not release the CONTRACTOR from any of its obligations hereunder. General Conditions -47- ARTICLE 40 CONSTRUCTION OF TERMS 40.1 Unless the context clearly intends to the contrary, words singular or plural in number shall be deemed to include the other and pronouns having masculine or feminine gender shall be deemed to include the other. The term "person" shall be deemed to include an individual, corporation, unincorporated organization, partnership, trust, government and governmental agency or subdivision, as the context shall require. ARTICLE 41 CAPTIONS 41.1 The captions used for the Articles in this Contract are inserted only as a matter of convenience and for reference and in no way define, limit or describe the scope of the intent of this Contract or any Article hereof. ARTICLE 42 ENTIRE AGREEMENT: SEVERABILITY; AMENDMENTS 42.1 The Contract Documents incorporate and include all prior negotiations, correspondence, conversations, agreements, and understandings applicable to the matters contained herein and the parties agree that there are no commitments, agreements or understandings concerning the subject matter of the Contract that are not contained in the Contract Documents. Accordingly, the parties agree that no deviation from the terms hereof shall be predicated upon any prior representations or agreements, whether oral or written. It is further agreed that no modification, amendment or alteration in the terms or conditions contained herein shall be effective unless contained in a written document in accordance with Article 12 above. In the event any provision of the Contract shall be found by a court of competent jurisdiction to be invalid or otherwise unenforceable, the remainder of this Contract shall not be affected thereby and each remaining provision, term, covenant or condition of the Contract shall continue to be effective. ARTICLE 43 CITY'S RIGHT TO TERMINATE CONTRACT 43.1 If CONTRACTOR fails to begin the Work within five (5) calendar days after the Project Initiation Date, as defined in Article 4.2 of the Contract, or fails to perform the Work with sufficient workers and equipment or with sufficient materials to insure the prompt completion of the Work, or shall perform the Work unsuitably, or cause it General Conditions -48- to be rejected as defective and unsuitable, or shall discontinue the prosecution of the Work pursuant to the accepted schedule or if CONTRACTOR shall fail to perform any material term set forth in the Contract Documents or if CONTRACTOR shall become insolvent or be declared bankrupt, or commit any act of bankruptcy or insolvency, or shall make an assignment for the benefit of creditors, or from any other cause whatsoever shall not carry on the Work in an acceptable manner, CITY may give notice in writing to CONTRACTOR and its Surety of such delay, neglect or default, specifying the same. If CONTRACTOR, within a period often (10) calendar days after such notice, shall not proceed in accordance therewith, then CITY may upon written certificate from CONTRACT ADMINISTRATOR of the fact of such delay, neglect or default and CONTRACTOR's failure to comply with such notice, terminate the services of CONTRACTOR, exclude CONTRACTOR from the Project site, and take the prosecution of the Work out of the hands of CONTRACTOR, and appropriate or use any or all materials and equipment on the Project site as may be suitable and acceptable. In such case, CONTRACTOR shall not be entitled to receive any further payment until the Project is completed. In addition CITY may enter into an agreement for the completion of the Project according to the terms and provisions of the Contract Documents, or use such other methods as in CITY's sole opinion shall be required for the completion of the Project according to the terms and provisions of the Contract Documents, or use such other methods as in CITY's sole opinion shall be required for the completion of the Project in an acceptable manner. All damages, costs and charges incurred by CITY, together with the costs of completing the Project, shall be deducted from any monies due or which may become due to CONTRACTOR. In case the damages and expenses so incurred by CITY shall exceed the unpaid balance, then CONTRACTOR shall be liable and shall pay to CITY the amount of said excess. 43.2 If after notice of termination of CONTRACTOR's right to proceed, it is determined for any reason that CONTRACTOR was not in default, the rights and obligations of CITY and CONTRACTOR shall be the same as if the notice of termination had been issued pursuant to the Termination for Convenience clause as set forth in Section 43.3 below. 43.3 This Contract may be terminated for convenience in writing by CITY upon ten (10) days written notice to CONTRACTOR (delivered by certified mail, return receipt requested) of intent to terminate and the date on which such termination becomes effective. In such case, CONTRACTOR shall be paid for all work executed and expenses incurred prior to termination in addition to termination settlement costs reasonably incurred by CONTRACTOR relating to commitments which had become firm prior to the termination. Payment shall include reasonable profit for work/services performed. No payment shall be made for profit for work/services which have not been performed. General Conditions -49- 43.4 Upon receipt of Notice of Termination pursuant to Sections 43.2 or 43.3 above, CONTRACTOR shall promptly discontinue all affected work unless the Notice of Termination directs otherwise and deliver or otherwise make available to CITY all data, drawings, specifications, reports, estimates, summaries and such other information as may have been required by the Contract Documents whether com- pleted or in process. ARTICLE 44 RESOLUTION OF DISPUTES 44.1 To address all disputes and litigation, it is agreed by the parties hereto that CONSULTANT (relative to the technical interpretation of the Contract Documents) and the CONTRACT ADMINISTRATOR (relative to the character, quality, amount and value of any work done and materials furnished, or proposed to be done or furnished under or, by reason of, the Contract Documents) shall decide all questions, claims, difficulties and disputes of whatever nature which may arise as to fulfillment of this Contract ("Claims"), and such parties' estimates and decisions upon all Claims shall be final and binding to the extent provided in Article 44.2. Any Claim which cannot be resolved by mutual agreement of CONTRACT ADMINISTRATOR, CONSULTANT and CONTRACTOR shall be dealt with in the manner provided in Article 44.2 below. 44.2 In the event the determination of a Claim under this Article is unacceptable to any of the parties hereto, the party objecting to the determination must notify the other party in writing within ten (10) days of receipt of the written determination. The notice must state the basis of the objection and must be accompanied by a statement that any Contract Price adjustment claimed is the entire adjustment to which the objecting party has reason to believe it is entitled to as a result of the determination. Within sixty (60) days after Final Completion of the Work, the parties shall participate in mediation to address all objections to any mediator mutually agreed upon by the parties. Should any objection not be resolved in mediation, the parties retain all their legal rights and remedies provided under State law. If a party objecting to a determination fails to comply in strict accordance with the requirements of this Article, said party specifically waives all of its rights provided hereunder, including its rights and remedies under State law. 44.3 Pending resolution of any Claim arising under this Contract, other than termination hereof, the CONTRACTOR shall proceed diligently with performance of this Contract and the CITY shall continue to make payments in accordance with the Contract. ARTICLE 45 General Conditions -50- OTHER TERMS & CONDITIONS 45.1 DruQ Free Workplace: It is a requirement of CITY that it enter into contracts only with firms that certify the establishment of a drug free work place in accordance with the Miami Beach City Code. Execution of this Contract by CONTRACTOR shall also serve as CONTRACTOR's required certification that it either has or that it will establish a drug free work place in accordance with Chapter 21.31 (a) of the Miami Beach City Code. 45.2 Hurricane Precautions 45.2.1 During such periods of time as are designated by the United States Weather Bureau as being hurricane warning or alert, the CONTRACTOR, at no cost to the CITY, shall take all precautions necessary to secure the Project site, regardless of whether the CITY orthe CONTRACT ADMINISTRATOR have given notice of same. 45.2.2 Compliance with any governmental agency hurricane warning or alert precautions at the Project site which trigger the need for preparations to secure the site in accordance to paragraph 45.2.1 will not be considered as an increase in the Contract price and shall not generate additional costs to the CITY. 45.2.3 Suspension of the Work caused by a threatened or actual storm event, regardless of whether the CITY orthe CONTRACT ADMINISTRATOR has directed such suspension, will entitle the CONTRACTOR to additional Contract Time as non-compensable, excusable delay. 45.3 Status Reports to CITY's General ObliQation (G.O.) Bond OversiQht Committee. CONTRACTOR shall provide Project status reports, in a form satisfactory to CONTRACT ADMINSTRATOR and to the City's G.O. Bond Oversight Committee. Said reports shall be provided monthly and submitted to CONTRACT ADMINISTRATOR in accordance with the schedule set forth in Attachment III, for inclusion in the Committee's monthly meeting agenda packet. Said reports shall continue for the duration of the Project. 45.4 CONTRACTOR'S RiQht to Stop the Work or Terminate the Contract. 45.4.1 If CITY is adjudged bankrupt or makes a general assignment for the benefit of creditors because of CITY'S insolvency, or if a receiver is appointed because of CITY'S insolvency, CONTRACTOR may, without prejudice to any other right or remedy that CONTRACTOR may have, terminate the Contract by giving written notice of such termination to CITY or to such receiver or trustee in bankruptcy. General Conditions -51- 45.4.2 If the Work should be stopped or otherwise delayed for a period of forty five (45) calendar days or more under an order of court or of a regulatory authority and, provided that such order was not issued as the result of an act or fault of CONTRACTOR or of anyone directly or indirectly employed or engaged by CONTRACTOR, CONTRACTOR may, without prejudice to any other right or remedy CONTRACTOR may have, terminate this Contract by giving CITY notice in writing. 45.4.3 Provided CONTRACTOR is in good standing and not in default under this Contract and, provided further that CONTRACTOR has complied with its contractual obligations for submittal of payment applications under the Contract, CONTRACTOR may notify CITY in writing that CITY is in default of CITY'S contractual obligations hereunder in the event that CITY fails to make payment to CONTRACTOR for any amount properly due under this Contract, within ten (10) days after CONTRACTOR'S written notice to CITY. CONTRACTOR'S notice in writing to CITY shall advise that if the default is not corrected within ten (10) days following the receipt of the notice in writing then CONTRACTOR may, without prejudice to any other right or remedy that CONTRACTOR may have, stop the Work or terminate this Contract. In no event shall this provision apply to, nor is same intended to supercede, CONTRACTOR'S duty to continue Work pursuant to Article 12.5.12 (Duty to Continue Work) of the General Conditions, nor is this subsection intended to supercede, waive, or otherwise alter CONTRACTOR'S responsibilities and required submittals pursuant to Article 6 (Progress Payment) and Article 7 (Acceptance and Final Payment) of the Contract. [End of General Conditions] General Conditions -52-