Msb Knik School Cmgc Rfp

8/10/2019 Msb Knik School Cmgc Rfp

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PROPOSAL #14-067P

MATANUSKA-SUSITNA BOROUGHPURCHASING DIVISION

PALMER, ALASKA

PROPOSAL AND CONTRACT DOCUMENTS FOR

CONSTRUCTION MANAGER/GENERAL CONTRACTOR (CM/GC)FOR JOE REDINGTON JR./SR. MIDDLE/HIGH SCHOOL

CLOSING DATE & TIME: DECEMBER 11, 2013 AT 4:00 PM


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I. SOLICITATION

The Matanuska-Susitna Borough (Borough) requests proposals with Statements ofQualifications (SOQ) and basic cost information from interested general contractors to serveas the Construction Manager/General Contractor (CM/GC) for construction of the new Joe

Redington Jr./Sr. Middle/High School.

The selected CM/GC will join the Borough, the Project Manager and the design team at theearliest possible date to participate in the remaining design process, value engineering, and toultimately carry out the construction work (assuming successful negotiations). The projectconstruction is scheduled to begin in Spring 2014.

To receive the Request for Proposals (RFP), contact Sharri Smith, MSB Purchasing at907-745-9616 or email [email protected] . Each company must register for the RFP bysending an email to: [email protected] with its company name, address, contactperson, telephone number, fax number, and email. No faxed or oral proposals will be allowed.

Pre-Proposal Conference: A non-mandatory pre-proposal conference will be held 1:30p.m. local time Thursday, November 21, 2013 at Station 6-1 , Corner of Swanson Aveand Lucille Street, Wasilla, AK. Site tours will be offered for interested proposers followingthis meeting.

Proposal Submission Deadline : To be considered, a complete sealed proposal package, inthe format requested, must be received by Matanuska-Susitna Borough, Purchasing Division,350 E. Dahlia Ave., Palmer, AK 99645 by 4:00 p.m. local time, Monday, December 11,2013. The envelope must be clearly marked with the Proposal Number and Closing Date inthe lower left hand corner.

The selection process must comply with procurement requirements of the Borough to ensurefair and open competition. The selection will be made on the basis of qualifications and price.The Borough reserves the right to cancel this procurement effort and will not reimburserespondents for any costs of preparation or submission of proposals.

II. BACKGROUND AND PROJECT SUMMARY

A. Project Background

The Borough has been working to relieve the overcrowding in Wasilla Middle and High Schoolfor years. In October 2011, Borough voters passed a $214M School Bond package whichincluded the Joe Redington Jr./Sr. Middle/High School. The site for the new school wasselected and purchased in December 2012. In March 2013, the Borough Assembly approveda professional design services contract with Wolf Architecture. The 65% Design Documentswere completed in October 2013. Recognizing the extremely tight timeline to have structuralsteel ordered and delivered, and the need to remove 250,000 cubic yards of soil from the site,the Borough is pursuing the use of the CM/GC delivery method for construction.
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The new 94,306 SF school will be designed and constructed to provide a complete middle/highschool program and to relieve overcrowding at Wasilla Middle and High School.

This new middle/high school design will be developed as an independent small middle/highschool construction project and as a new prototype design. The new school will be designedand built as a LEED Certified Silver facility (at a minimum), with sustainability elementsthroughout the design. The new school will be designed to provide an energy efficient,effective, safe and secure learning environment.

The Districts Facility Design Criteria Manual is available on line, or a hard copy can berequested at the Pre-proposal conference at the Dorothy S. Jones Building, 350 E. Dahlia

Avenue, Palmer, Alaska.

B. Project Description

The new Joe Redington Jr./Sr. Middle/High School will serve approximately 550 students ingrades six through twelve and relieve the School Districts overcrowding issues, which hasnecessitated the use of 20 portable classrooms at Wasilla Middle and High School. The newschool will be a 94,306 SF, two-story facility, with a mechanical and electrical penthouse on thethird floor. The project includes a 180,000 gallon water storage tank to support domestic useand fire suppression, two gymnasiums, library, computer and science labs, administrationspaces, welding, small-engine repair and wood shops, rubberized track, artificial turffootball/soccer field, access roads and parking.

C. Project Site

The Joe Redington Jr./Sr. Middle/High School site is located on the undeveloped Tract A of theKnik Heights West Subdivision, near mile 11 of the Knik-Goose Bay Road, west of Wasilla,

Alaska. Currently, utilities are not available on site.

D. Project Budget

The total project construction budget is $46.3 million. This budget is based on constructionstarting in Spring 2014.

E. Project Schedule

The 65% Design Development Documents were completed in October 2013. The current

schedule is to complete full design documents in early 2014 and begin construction as early aspossible in Spring 2014. The construction period is expected to take approximately 15 months.The project must be Substantially Complete by July 1, 2015 prior to the start of the 2015-2016school year. Early completion would be viewed favorably.


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following requirements. Each submittal must have a cover letter signed by a company officialauthorized to represent the proposer. The entire proposal shall not exceed 15 pages, notincluding cover, cover letter, tabs, resumes of key staff and the price proposal. One page isdefined as one side of a standard 8" x 11" sheet of paper, 10 point type minimum. Pricinginformation shall be submitted in a separate sealed envelope.

Selection Criteria

A. Firm Experience with Alternative Project Delivery Methods: Provide a summary of projectscompleted in the last five years which are similar in size and complexity where your firmworked with A/E teams in a non-traditional project delivery contract. For each project, listthe project name, construction budget, construction period, the form of contract and therole your company played in the project, brief project description, the owner's name,owner contact and phone number, A/E firm, A/E contact and phone number.

B. Similar Project Construction Experience: List all schools or similar projects your firm hasbuilt in the last ten years. For each project, list the project name, construction budget,construction period, the form of contract and the role your company played in the project,brief project description, the owner's name, owner contact and phone number, A/E firm,

A/E contact and phone number.

C. Pre-Construction Services Plan: Describe your firm's approach to the followingpre-construction services: design review and commentary, document coordination,constructability review and commentary, cost estimating, value engineering, site logistics,and subcontract preparation and packaging. Provide two specific examples of thepre-construction services scopes that your company has provided on recent projects.Describe the manner in which pricing and constructability services will be provided for workthat you normally subcontract.

D. Value Engineering/Cost Estimating: Describe your value engineering process and howyou will work with the design team to help reduce project construction and life cycle costs.Explain the process you anticipate using for milestone cost estimates. Explain yourmethods for estimating costs for elements of the project where design drawings andspecifications are not available.

E. Project Team and Key Personnel Experience: Identify the project team and highlight keypersonnel experience on CM/GC, value engineering, GMP and projects of similar type,complexity and size. Provide resumes for the key personnel that will be assigned to thisphase of the project.


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At a minimum, include the following team members.

Project Manager Superintendent Estimator Project Engineer/Controls Other key project team personnel

F. Management Plan: Summarize how your firm will staff and organize this project. Includeinformation on your anticipated level of effort during the design phase, estimating processand construction quality control procedures. Outline what work will likely be accomplishedby subcontractor vs. your own staff during the early site-work, demolition and generalconstruction phases. Discuss how key subcontractors will be selected and the possibilitiesfor using subcontractor input during the design phase. Outline objectives and targets youthink are achievable for employment of local workers and vendors. Discuss your firm'scapacity to support the Borough and MSB School District s operation and maintenanceduring the warranty period and five (5) years thereafter.

G. Quality Control: Provide a description of your firm's approach to achieving the desiredquality during construction and minimizing the amount of punch list items. Include adescription of the quality control team you plan to use on this job and their level ofauthority.

H. Facility Management and Preventative Maintenance Plan: An important dimension of anyschool construction project is the facility maintenance. Summarize your firm's approach toinvolving the Borough and School District personnel during commissioning, training, and

assisting the Borough with a facility management and preventative maintenance plan thatwill lead to low life cycle costs and sustainability of the Borough's significant investment inthis project.

I. Capacity: Provide a summary of your annual construction volume (in dollars) for the pastfive years. Provide a summary of your firm's current and anticipated workload fromJanuary 2014 - July 2015 (to the extent possible). Include a description of projects, dollarvalues of construction for which you are responsible either as a prime or subcontractor,and bonding capacity available for the referenced period. Comment on any significantissues based on your review of the preliminary schedule as it relates to your capacity.

J. References: Provide at least two owner and two A/E references. In addition tocontacting these references, the Borough reserves the right to contact other Owners and

A/E firms for which your firm has performed work.

K. Price Proposal (Submit in Separate Sealed Envelope from Proposal)

Price Proposals shall be submitted based on the three cost categories in subparagraphs(a-c) below. Please use Attachment A: Price Proposal Form to submit your price


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proposal. The cost for the three categories shall be added together to provide a total priceproposal. The total price proposal of all the responsive proposers will be compared.Points for the price portion of the scoring will be calculated as follows: The responsiveproposer with the lowest total price proposal will receive 100% of the available pricingpoints (150 points). Other responsive proposers will receive a portion of the maximumpoints based on their relation to the lowest responsive proposer. For example: If twocontractors propose and Contractor A proposes $4M, the lowest total price proposal andContractor B proposes $5M, the points awarded would be as follows:

Contractor A (X) will receive 150 points.Contractor B (Y) will receive Z points where:Z = 150 - (Y-X) /40,000 = 125 Points

The Borough expects responsible proposals to fall within reasonable ranges. Theexpected range for each cost category is listed with that category. Proposers that proposefees or amounts below the expected ranges may be asked to provide examples where theyhave provided similar services for the lower fee proposed.

1. Proposed CM/GC Contractor Fixed Fee: Include both profit and administrativeoverhead on a percentage basis that will be applied to the direct cost of the work duringthe construction phase. Use Borough standard agreement to define direct cost of thework. For the successful proposer, this fee will be applied to the GuaranteedMaximum Price amendments under Borough standard agreement and any changes tothe work authorized under the standard agreement. Expected range is 3%-6% of theWork and will be a fixed fee.

2.

Fixed Fee for Pre-Construction Services .3. Guaranteed Maximum Price of General Condition Items should be

expressed as a fixed fee. Base this percentage on the current project design, thecurrent cost estimate and Substantial Completion date of August 1, 2015. Include thefollowing cost items in the general condition category: Wages, Salaries and Benefitsof the CM/GC supervisory personnel stationed at the job site or home office in directsupport of the job; costs or rental charges for supplies, materials, temporary facilities,equipment, and hand tools provided by the CM/GC; removal of debris from the site; sitesafety and security; maintaining temporary access during construction; utilities duringconstruction; site snow removal; temporary power, heat and weather protection;

reproduction costs, data processing costs, postage, express shipping, telephones andreasonable petty cash expenses; job site communications; travel and subsistence forthe CM/GC personnel while traveling for the benefit of the work; insurance and bondpremiums directly attributable to the job; sales, use or similar taxes related to theWork; fees, permits, licens es, tests and inspections that are customarily the CM/GCsresponsibility under the terms of the contract documents; dispute resolution costsother than those arising between the CM/GC and the Owner, and; relocation andtemporary living allowances of the CM/GC personnel. Expected range 8% -15% andwill be a fixed fee.


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Selection Criterion Scoring MaximumPossible Points

Firm Experience Alternate Project Delivery Process 20Similar Project Construction Experience 15Pre-Construction Services Plan 10

Value Engineering/Cost Estimating 10Project /Team for Pre-Construction Services Phase 15Project Team for Construction Phase 20Management Plan 15Quality Control 10Facility Management and Preventative Maintenance Plan 10Capacity 10References 15Price Proposal 150

Total Possible Points 300

V. ANTICIPATED CONTRACTUAL ARRANGEMENTS

The Borough standard agreements are structured so the Pre-Construction services are clearlydelineated from Construction Phase Services. Compensation for Pre-Construction Serviceswill be based on a Firm Fixed Price Contract directly based from the Proposers price proposal.The construction phase services will be based upon the proposed fee plus the proposedGeneral Conditions price plus Guaranteed Maximum Price negotiation after completion of the100% Construction Documents. A GMP prior to issuance of 100% documents may be

requested. Interim construction work packages may be negotiated in advance of a full GMP.Self-performed work shall be limited to a maximum of 20% of the GMP. The maximum markupon this work shall be limited to 10%. The Borough will require competitive bidding for all majorsubcontracts. The final Guaranteed Maximum Price must be reconcilable to within 2% of theIndependent Cost Estimate.

If the Borough is unable to reach agreement on a GMP or phased GMP for construction serviceswith the CM/GC, the Borough reserves the right to abandon negotiations, pay forpre-construction service rendered, and proceed with a different procurement method or adifferent contractor. In the event the Borough elects to abandon negotiations and proceed

with an alternate procurement method or a different contractor, the CM/GC shall not beentitled to any lost profits, consequential damages or other damages, but shall be entitled onlyto costs based upon work previously performed.

Compensation for Construction Phase Services performed for a stipulated sum will be based onmonthly estimates of the percent complete for each portion of the work per an approvedschedule of values.

Insurance Requirements. See General Conditions.


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Project Bonding Requirements: For the construction services phase of the project the CM/GCshall furnish a one hundred percent (100%) performance bond and a one hundred percent(100%) payment bond on the forms provided in the contract documents with a qualifiedcorporate surety. No bid bond is required with this RFP response.

Wage Rate Requirements: The most current prevailing wage rates as defined by the State of Alaska, Department of Labor, Laborer's & Mechanics' Minimum Rates of Pay Pamphlet (Title36) are required on this project. The appropriate wage determination will be those in effect atthe time that the GMP contract amendment for any portion of the work is signed.

Licenses and Registration: The successful respondent must have a current Alaska BusinessLicense together with a current Alaska Contractor's License. All employees, subcontractorsand their employees must provide proof of their qualifications for the craft in which they areemployed where and as required by applicable statute and regulation.

Form of Contract: See Appendix B.

VI. RFP AVAILABILITY

RFP documents are available in the Purchasing Division, Matanuska-Susitna Borough, 350 E.Dahlia Ave., Palmer, AK 99645. Info: (907) 745-9601, Fax (907) 745-9617, [email protected]. A document fee of $5.00 will be charged for materials picked-upand $10.00 for materials mailed. This proposal document may be available on the internet atwww.matsugov.us .

The 65% Design Documents for the Joe Redington Jr./Sr. Middle/High School are available onthe Borough Web Page at matsugov.us . The above link allows you to download the following:

65% Design Development Drawings, 11x1765% Design Development Narrative65% Design Development SpecificationsSite Plan

VII. SUBMITTAL REQUIREMENTS

One (1) paper copy of proposal, clearly marked ORIGINAL , with an originally signedsubmittal page, and one electronic copy on CDROM of the submitted proposal documents, inPDF format; both shall be enclosed in a sealed envelope, addressed, marked, and delivered tothe following address:

Matanuska-Susitna BoroughPurchasing Division of Capital Projects350 E. Dahlia AvenuePalmer, Alaska 99645
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Sealed envelope should reflect the following in the lower left corner of the envelope: Proposalnumber, title, date and time of closing.

If more than one Proposal is offered by any one party, by or in the name of their clerk, partner,or other person, all such Proposals will be rejected. A party who has quoted prices to aProposer is not thereby disqualified from quoting prices to other Proposers, or from submittinga Proposal directly for the work.

To be considered, a complete proposal package in the format requested must be received by 4:00 p.m. local time, Monday, December 11, 2013.

Should a Proposer find discrepancies in, or omissions from, the drawings or specifications, orbe in doubt as to their meaning, they should at once notify the Purchasing Officer who will sendwritten instructions or addenda to all known plan holders. The Purchasing Officer will not beresponsible for oral interpretations. Questions must be received in writing. E-mailquestions to [email protected] or fax questions to the Purchasing Officer at (907)745-9617. Questions received less than five (5) days before proposal close may not beanswered. All addenda issued during the time of proposals shall become part of the

Agreement Documents. Questions or requests for clarifications shall be directed tothe Boroughs Purchasing Officer. Questions or requests for clarificationdirected to any other member of the Borough staff may be grounds for rejectionof proposal as being irregular.

The Borough reserves the right to accept or reject any or all proposals or portions thereof or towaive irregularities or informalities in any of the proposals. There is no express or impliedobligation for the Borough to reimburse responding firms for any expenses incurred inpreparing proposals in response to this request.

VIII. SELECTION PROCESS

Proposals will be reviewed by the Mat-Su Borough Selection Committee established for thisparticular project. Interviews may be required at the discretion of the Borough. The Boroughintends to negotiate a contract with the firm the Selection Committee solely determines willprovide the best overall value and expertise on this project. Following the contract negotiation,the Borough will issue an Intent-to-Award letter to all proposers. Following a 10-day protestperiod, it will seek approval of the contract from the Borough Assembly. Upon contract award,

the successful proposal will be made available to the public.

IX. OTHER

A. Any costs incurred in responding to this request are at the proposer's sole risk and will notbe reimbursed by the Borough. This RFP does not in any way commit the Borough toreimburse recipients of this RFP for any of the costs of preparing and submitting a proposalfor these services. Furthermore, this RFP does not obligate the Borough to accept orcontract for any services expressed or implied.
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B. Clarification, modification, rejection of RFP. The Borough reserves the right to: (1) Modifyor otherwise alter any or all of the requirements herein. In the event of any modifications,all selected respondents will be given an equal opportunity to modify their proposals in thespecific areas that are requested. (2) Reject any proposal not adhering to any and allrequirements set forth in this RFP. (3) Reject any or all responses received. The Boroughreserves the right to terminate this RFP at any time.

C. The Borough shall provide for the administrative review of a complaint filed by anaggrieved proposer which allows the proposer to file a proposal protest, within 10 daysafter notice is provided of intent to award the contract, requesting a hearing for adetermination and award of the contract. The Borough shall provide notice to all partiessubmitting proposals of the filing of the proposal protest. A protest shall be deemed toinclude only the documents timely delivered pursuant to this section. It must clearly stateall of the grounds for the protest and must include all arguments and evidence in supportof the protest. The Borough may investigate as it deems appropriate in reviewing the

protest, and will issue a written response to the protest. The Borough may proceed withthe contract award, execution, and performance while a protest is pending.

D. The Borough reserves the right to waive informalities, and to make a selection as deemedin its own best interest. The Borough reserves the right to reject any and/or all proposalswhich they deem to be not in the best interests of the Borough and to proceed with thenext proposer or to utilize an entirely different process.

E. All proposals and other materials become the property of the Borough and may bereturned only at the option of the Borough. Detailed costs and price information providedwill be held in confidence until the contract is fully executed.

F. In the event it becomes necessary to revise any part of this RFP, addenda will be providedto any entity that was provided the basic RFP package. The Borough reserves the right topostpone the date and time for receipt of proposals at any time prior to the timeannounced. Responses to questions prior to submittal of proposals must be in writing.Written answers will be provided to all proposers.


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MATANUSKA-SUSITNA BOROUGHREQUEST FOR PROPOSALS #14-067P

JOE REDINGTON JR/SR. MIDDLE/HIGH SCHOOL

APPENDIX A: CM/GC PRICE PROPOSAL FORM

Documents which are the basis for this Price Proposal:

1. This RFP2. Design Development Documents (Wolf Architecture FTP Site)3. Mat-Su Borough Construction Agreement4. Mat-Su Borough General Conditions5. Mat-Su Borough Supplemental Conditions

Price Proposal Summary

A. Proposed CM/GC Contractor Fixed Fee A $__________________

The Proposed CMc Contractor Fee is to be based on ana total construction budget of $46.3 Million.

B. Fixed Fee for Pre-Construction Services B $__________________

C. Fixed Fee for General Condition Items C $__________________

Total Price Proposal (A+B+C) $___________________

Company Date

Signature and Title Printed Name


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APPENDIX B

CONSTRUCTION CONTRACT


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CONTRACT DOCUMENTS UNDER DEVELOPMENT AND WILL BE ISSUED VIA ADDENDUM.


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APPENDIX C

GENERAL CONDITIONS


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GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

ARTICLE 1

CONTRACT DOCUMENTS BOROUGH ADMINISTERED

1.1 DEFINITIONS

1.1.1 THE CONTRACT DOCUMENTS

The Contract Documents consist of the Invitation for Bids, Instructions to Bidders, Agreement, theConditions of the Contract (General Supplementary and other Condition), the Drawings, the Specifications,the Geotechnical Report, Payment and Performance Bond, Certificate of Insurance, additional documents aslisted in the Supplementary General Conditions, and all Addenda issued prior to and all Modifications issuedafter award of the Contract. A Modification is (1) a written amendment to the Contract signed by bothparties, (2) a Change Order, (3) a written interpretation issued by the Project Manager pursuant to

Subparagraph 1.2.5, or (4) a written order for a minor change in the Work issued by the Project Managerpursuant to Paragraph 12.3. A Modification may be made only after award of the Contract.

1.1.2 THE CONTRACT

The Contract Documents form the Contract. The Certificate of Insurance and required bonds are necessaryfor the validity of the Contract. The Contract represents the entire integrated agreement between theparties hereto and supersedes all prior negotiations, representations or agreements. The Contract may beamended or modified only by a Modification as defined in Paragraph 1.1.1. Nothing contained in theContract Documents shall create any contractual relationship between the Borough or the Project Managerand any Subcontractor or Sub-Subcontractor.

1.1.3 THE WORK

The Work comprises the completed construction required by the Contract Documents, and includes all laborand supervision necessary to produce such construction, and all materials and equipment incorporated or tobe incorporated in such construction.

1.2 EXECUTION, CORRELATION, INTENT AND INTERPRETATIONS

1.2.1 The Contract Documents shall be signed in not less than triplicate by the Borough and Contractor.If either the Borough or the Contractor or both do not sign the Conditions of the Contract, Drawings,Specifications, or any of the other Contract Documents, the Agreement shall identify them by reference tospecific documents.

1.2.2 By submitting a bid, the Contractor represents that he has visited the site, familiarized himself withthe local conditions under which the Contract is to be performed and correlated his observation with therequirements of the Contract Documents.

1.2.3 The intent of the Contract Documents is to include all items necessary for the proper execution andcompletion of the Work. The Contract Documents are complementary, and what is required by any oneshall be binding as if required by all. Work not covered in the Contract will not be required unless it isconsistent therewith and is reasonably inferable therefrom as being necessary to produce the intendedresult. Words and abbreviations which have well known technical or trade meanings are used in theContract Documents in accordance with such recognized meanings, unless otherwise defined in the contractdocuments.


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1.2.4 The organization of the Specifications into divisions, sections and articles, and the arrangement ofDrawings shall not control the Contractor in dividing the Work among Subcontractors or in establishing theextent of Work to be performed by any trade.

1.2.5 Written interpretations necessary for the proper execution or progress of the Work, in the form of

drawings or otherwise, will be issued within 14 calendar days by the Project Manager and in accordance withany schedule agreed upon. Contractor may make written request to the Project Manager for suchinterpretations. Such interpretations shall be consistent with and reasonably inferable from the ContractDocuments, and may be effected by Field Memo, provided such interpretations do not modify contract timeor cost. In accordance with MSB Code 3.08.120 below. The Borough will provide field memo forms.D.V.C.R.'s/D.C.V.R.'s will not be used. A copy of the field memo form is attached.

MSB Code 3.08.120: " A contract for supplies, services, professional services or construction, or nyamendment to the contract, may not be enforced against the borough unless its terms have been approvedin accordance with this chapter, and the contract or amendment to the contract has been set forth in writing,executed in accordance with this chapter."

1.2.6 SPECIFIED ITEMS

1.2.6 Where items are specified by use of referenced standard specifications, the date of the referencedstandard shall be the latest edition at the time of award of the contract, unless otherwise specified.

1.3 COPIES FURNISHED AND OWNERSHIP

1.3.1 The Contractor will be furnished, free of charge, two (2) copies of the Contract Documents. Additional sets will be furnished upon request at actual cost.

ARTICLE 2

PROJECT MANAGER

2.1 ADMINISTRATION OF THE CONTRACT

2.1.1 The Borough will provide general Administration of the Construction Contract, includingperformance of the functions hereinafter described.

2.1.2 The Project Manager will be the Borough's representative during construction and until finalpayment. The Project Manager will have authority to act on behalf of the Borough to the extent providedin the Contract Documents, unless otherwise modified by written instrument which will be shown to theContractor. All of the Borough's instructions to the Contractor shall be issued through the Project Manager.

2.1.3 The Project Manager shall at all times have access to the Work wherever it is in preparation andprogress. The Contractor shall provide facilities for such access so the Project Manager may perform his

functions under the Contract Documents.

2.1.4 Based on observations and evaluation of Contractor's Applications for Payment, the Project Managerwill determine the amounts owing to the Contractor and will issue Certificates for Payment in such amounts,as provided in Paragraph 9.4.

2.1.5 The Project Manager will be the interpreter of the requirements of the Contract Documents and the judge of the performance thereunder by the Contractor. The Project Manager will, within a reasonabletime, render such interpretations as he may deem necessary for the proper execution or progress of theWork.


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2.2 (Not used)

2.3.1-9 (Not used)

2.3.10 CLAIMS AND DISPUTES

2.3.10.1 Except for claims which have been waived by acceptance of final payment as provided inParagraph 9.7.5 and 9.7.6, and except as otherwise provided in this Contract, any claims, any disputes, orother questions arising out of, or relating to, this Contract shall be presented in writing by the Contractor tothe Project Manager. In presenting any claim, the Contractor shall clearly and specifically state in writing:

1. The specific contract provision under which the claim is made.

2. The contract item on which the claim is based.

3. The specific relief including additional time and/or compensation to which the Contractorbelieves he is entitled.

4. The detailed basis of any additional costs that are claimed and all verifiable documentationnecessary to support those costs.

2.3.10.2 Claims must be submitted not later than 20 days after the first observance or awareness ornotice of the basis for the claim. If the amount of time and/or compensation cannot be readily ascertainedat the time the claim is submitted, such amounts shall be submitted as soon as they are discernible. In anycase, the amount of time and/or compensation claimed together with all necessary supporting data, shall besubmitted no later than 60 days after completion of the contract item of work on which the claim is based.

2.3.10.3 Failure to comply with Clause 2.3.10.1, 2.3.10.2, 12.2.1. shall constitute a waiver andabandonment of the right to make any claim on the particular contract item in question.

2.3.10.4 A claim as soon as received from the Contractor shall be acknowledged in writing by theProject Manager. If the claim is not disposed of by agreement, the claim shall be reviewed by the ProjectManager, who shall, within fourteen (14) days, advise the Contractor of his final decision and communicatehis final decision to the Contractor. This final decision of the Project Manager shall, unless otherwisedetermined on appeal to the Superior Court of Alaska, be final and conclusive. Any appeal from thisdecision to the Superior Court of Alaska shall be commenced on or before 30 days from the date ofcompletion and acceptance of the entire contracted Work. In the event that no such appeal to the court ismade within 30 days, the decision of the Project Manager shall be final and conclusive as to the dispute.Pending final decision of any dispute hereunder, the Contractor shall proceed diligently with theperformance of the Contract, and after the Project Manager's final decision is made, the Contractor shallproceed diligently with the performance of the Contract and in accordance with the Project Manager's finaldecision.

2.3.10.5 The jurisdiction and venue for any court action arising as a result of this Contract shall be

the Superior Court of Alaska in Palmer, Alaska.

ARTICLE 3

OWNER

3.1 DEFINITIONS

3.1.1 The Owner is the Matanuska-Susitna Borough, and referred to through the contract as "TheBorough" but may be described in some contract documents as "Owner." The term Borough means theBorough or its authorized representative. The Borough's Project Manager is the Borough's representative


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to plan, organize, lead and administer contract requirement and performance of the executed contract. After the Contract Agreement is signed, the Project Manager is the Contractor's point of contact to theBorough for all coordination and communications to attain contract completion.

3.1.2 Requests for changes in the work will be considered as Borough requests only if issued in writing bythe Project Manager. The Contractor shall not respond to request for changes from any other sources.

3.2 INFORMATION AND SERVICES REQUIRED OF THE OWNER

3.2.1 The Borough shall furnish copies of surveys describing the limits of the Project site.

3.2.2 The Borough shall secure and pay for easements for permanent structures or permanent changes inexisting facilities.

3.2.3 Information or services under the Borough's control shall be furnished by the Borough withreasonable promptness to avoid delay in the orderly progress of the Work.

3.2.4 The Borough shall issue all instructions to the Contractor through the Project Manager.

3.3 BOROUGH'S RIGHT TO STOP THE WORK

3.3.1 If the Contractor fails to correct defective Work as required by Paragraph 13.2 or persistently fails tocarry out the Work in accordance with the Contract Documents, the Borough, by a written order signed bythe Project Manager or his designee, may order the Contractor to stop the Work, or any portion thereof, untilthe cause of such order has been eliminated; however, this right of the Borough to stop the Work shall notgive rise to any duty on the part of the Borough to exercise this right for the benefit of the Contractor or anyother person or entity.

3.4 BOROUGH'S RIGHT TO CARRY OUT THE WORK

3.4.1 If the Contractor defaults or neglects to carry out the Work in accordance with the ContractDocuments or fails to perform any provision of the Contract, the Borough may, after seven days' writtennotice to the Contractor and without prejudice to any other remedy it may have, make good suchdeficiencies. In such case an appropriate Change Order shall be issued deducting from the payments thenor thereafter due the Contractor the cost of correcting such deficiencies. If the payments then or thereafterdue the Contractor are not sufficient to cover such amount, the Contractor shall pay the difference to theBorough.

ARTICLE 4

CONTRACTOR

4.1 DEFINITION

4.1.1 The contractor is the person or organization identified as such in the Agreement and is referred tothroughout the Contract Documents as if singular in number and masculine in gender. The term Contractormeans the Contractor or his authorized representative.

4.2 REVIEW OF CONTRACT DOCUMENTS

4.2.1 Before making his proposal or bid to the Borough, and continuously after execution of the Contract,the Contractor shall carefully study and compare the Contract Documents and shall at once report to theBorough, through the Project Manager, any error, inconsistency or omission he may discover, including anyrequirement which may be contrary to any law, ordinance, rule, regulation or order of any public authoritybearing on the performance of the Work. By submitting his proposal or bid for the Contract and Work under


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it, the Contractor agrees that the Contract Documents appear accurate, consistent and complete insofar ascan reasonably be determined. The Contractor shall perform no portion of the Work at any time withoutContract Documents and, where required, approved Shop Drawings, Product Data or Samples for suchportion of the Work.4.3 SUPERVISION AND CONSTRUCTION PROCEDURES

4.3.1 The Contractor shall supervise and direct the Work, using his best skill and attention. He shall besolely responsible for all construction means, methods, techniques, sequences and procedures and forcoordinating all portions of the Work under the Contract, regardless of the trade performing the Work, or theparticular portion of the Contract Documents requiring the Work. The Contractor shall provide a letter tothe State of Alaska Department of Environmental Conservation certifying that all materials used in theconstruction of this project contain no added hazardous materials or asbestos. It is the intent of theContract Documents to provide a complete and finished Project in all areas, unless specifically statedotherwise. Contractor shall furnish any necessary accessories, even if not specifically specified, that arerequired to finish the Work, in a first-class finished and/or operating condition for use by the Borough asindicated by the Contract Documents.

4.3.2 The Contractor shall not be relieved from his obligations to perform the work in accordance with thecontract documents either by the activities or duties of the Project Manager in his administration of thecontract, or by inspections, tests or approvals (or the lack thereof) required or performed under Article 7.8by persons other than the contractor.

4.4 LABOR AND MATERIALS

4.4.1 Unless otherwise specifically noted, the Contractor shall provide and pay for all supervision, labor,materials, equipment, tools, construction equipment and machinery, water, heat, utilities, transportation,and other facilities and services necessary for the proper execution and completion of the Work.

4.4.2 The Contractor shall at all times enforce strict discipline and good order among his employees andshall not employ on the Work any unfit person or anyone not skilled in the task they are assigned.

4.5 WARRANTY

4.5.1 The Contractor warrants to the Borough that all materials and equipment furnished under thisContract will be new unless otherwise specified, and that all Work will be good quality, free from faults anddefects and in conformance with the Contract Documents. All Work not so conforming to these standardsmay be considered defective, and may be rejected. If required by the Borough, the Contractor shall furnishsatisfactory evidence as to the kind and quality of materials and equipment. The warranty provided in thisparagraph shall be in addition to and not in limitation of any other warranty remedy required by law or by theContract Documents.

4.5.2 Contractor's Warranty as contained in paragraph 4.5.1 shall continue for a period of one year fromthe date of substantial completion. Items as determined by substantial completion inspection to bedeficient in any respect shall be corrected, and the warranty period for those items shall not begin until the

deficiencies have been corrected, reexamined and finally approved.

Within the warranty period, the contractor shall remedy, at the contractor's expense, any failure to conform,or any defect. In addition, the contractor shall remedy, at the contractor's expense any damage to theBorough's owned or controlled property when the damage is the result of the contractor's failure to performto contract requirements, or any defects of equipment, material, workmanship or design furnished by thecontractor. The contractor shall restore any work damaged in fulfilling the terms and conditions of thisparagraph. Contractor's warranties apply to all work, goods, materials and items furnished bysubcontractors or suppliers.


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4.6 TAXES

4.6.1 The Contractor shall pay all sales, consumer, use and other similar taxes for the Work or portionsthereof provided by the Contractor which are in effect or become effective during the term of the Contract.

4.6.2 The Contractor shall have and maintain in effect an Alaska Business License, and be registered as a

general contractor and shall be responsible for current licenses and registration for all subcontractors,sub-subcontractors and suppliers as required by Alaska law. The Contractor shall notify the Borough inwriting of any canceled, revoked, or expired license or registration of the Contractor or Subcontractors orSub-subcontractors.

4.7 PERMITS, FEES AND NOTICES

4.7.1 Unless otherwise provided in the Contract Documents, the Contractor shall secure and pay for thebuilding permit and for all other permits and governmental fees, licenses, and inspections necessary for theproper execution and completion of the Work which are customarily secured after award of the Contract,and which are in effect at the time the bids are received. Submit copies of permits, fees, and licenses to theProject Manager.

4.7.2 The Contractor shall give all notices and comply with all laws, ordinances, rules, regulations andorders of any public authority bearing on the performance of the Work. If the Contractor observes that anyof the Contract Documents are in variance therewith in any respect, he shall promptly notify the Borough inwriting, and any necessary changes shall be adjusted by appropriate modification. If the Contractorperforms any Work knowing or which be reasonably should have known to be contrary to such law,ordinances, rules and regulations, and without such notice to the Project Manager, the Contractor shallassume full responsibility therefore and shall bear all costs attributable thereto.

4.8 CASH ALLOWANCES

4.8.1 The Contractor shall include in the Contract Sum all allowances stated in the Contract documents.These allowances shall cover the net cost of the materials and equipment delivered and unloaded at the site,and all applicable taxes. The Contractor's handling costs on the site, labor, installation costs, overhead,profit and other expenses contemplated for the original allowance shall be included in the Contract Sum andnot in the allowance. The Contractor shall cause the Work covered by these allowances to be performed forsuch amounts and by such persons as the Project Manager may direct, but he will not be required to employpersons against whom he makes a reasonable objection. If the cost, when determined, is more than or lessthan the allowance, the Contract Sum shall be adjusted accordingly by Change Order which will includeadditional handling costs on the site, labor, installations costs, overhead, profit and other expenses resultingto the Contractor from any increase over the original allowance.

4.9 SUPERINTENDENT

4.9.1 The Contractor shall employ a competent superintendent and necessary assistants who shall be inattendance at the Project site at all times during the progress of the Work. The superintendent shall be

satisfactory to the Project Manager, and shall not be changed except with the consent of the ProjectManager, unless the superintendent proves to be unsatisfactory to the Contractor and ceases to be in hisemploy. The superintendent shall represent the Contractor and all communications given to thesuperintendent shall be as binding as if given to the Contractor.

4.10 RESPONSIBILITY FOR THOSE PERFORMING THE WORK

4.10.1 The Contractor shall be responsible to the Borough for the acts and omissions of all his employeesand all Subcontractors, their agents and employees, and all other persons performing any of the Work undera contract with the Contractor.


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4.11 PROGRESS SCHEDULE

4.11.1 The Contractor, within fifteen (15) days after being awarded the Contract, shall prepare and submitfor the Project Manager's review, an estimated progress schedule for the Work. The progress scheduleshall be related to the entire Project to the extent required by the Contract Documents. The progressschedule shall indicate the dates for starting and completion of the categories of construction outlined on the

list of Progress Schedule Items attached at the end of the Supplementary General Conditions. The progressschedule shall indicate the percentage of each phase to be completed at the end of each month during theterm of the Contract, and shall be revised as required by the conditions of the Work, and an updatedprogress schedule shall be submitted with each pay request. Site is available to the COntractor uponreceipt of Notice to Proceed.

4.12 DRAWINGS AND SPECIFICATIONS AT THE SITE

4.12.1 The Contractor shall maintain at the site for the Project Manager and Project Manager a completeset of the Contract Documents maintained in an up to date condition, including all amendments,modifications or changes, in a neat, legible manner to the satisfaction of the Project Manager. TheContractor shall also maintain a complete set of as-built drawings which shall show all deletions, additions,changes in routing or location, materials or design, piping, equipment, ducts, conduit and other itemspertinent to the entire scope of the Project. These record drawings shall reflect all changes made bychange orders and/or supplemental drawings. The as-built drawings shall (1) place special emphasis onconcealed items and substitutes to items specified or shown including all approved changes to such items;(2) include all work being performed by any subtrade, including mechanical and electrical which shall be upto date and correct; (3) clearly indicate all relocations and routing, dimension adequately to assure locationfor future maintenance or remodeling. The as-built drawings shall be available to the Project Manager,and, prior to final acceptance and as an essential condition of final acceptance, shall be certified as correctby the general contractor, by the electrical and mechanical subcontractors and other subcontractors bysignature on the record drawings, and when complete shall be submitted to the Project Manager. TheProject Manager may decline to approve progress payment requests if the up to date contract documentsand as-built drawings are not currently maintained, if such failure renders it difficult or impossible for theProject Manager to determine the status, progress, nature or quality of the work.

4.12.2 Whenever manufacturers printed Specifications or Instructions are by reference made part of theseSpecifications, the Contractor shall furnish copies of such Specifications or Instructions to the ProjectManager.

4.12.3 All manufacturers' warranties for any item installed in the Work shall be delivered to the ProjectManager upon completion of the Work.

4.12.4 Contractor shall verify dimensions on the job. If errors or omissions of dimensions or otherdiscrepancies are found, he shall immediately notify the Project Manager. If the Contractor continues workin the area affected before clarifications are made by the Project Manager, the Contractor shall bear the costof any charges required as a result of such errors, omissions or discrepancies.

4.13 SHOP DRAWINGS AND SAMPLES

4.13.1 Shop Drawings are drawings, diagrams, illustrations, schedules, performance charts, brochures andother data which are prepared by the Contractor or any Subcontractor, manufacturer, supplier or distributor,and which illustrate some portion of the Work.

4.13.2 Samples are physical examples furnished by the Contractor to illustrate materials, equipment orworkmanship, and to establish standards by which the Work will be judged.

4.13.3 The Contractor shall review, stamp with his approval and submit to the Project Manager withreasonable promptness and in orderly sequence so as to cause no delay in the Work or in the work of any


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4.15 CUTTING AND PATCHING OF WORK

4.15.1 The Contractor shall do all cutting, fitting, or patching of his Work that may be required to make itsseveral parts fit together properly, and shall not endanger any Work by cutting, excavating or otherwisealtering the Work or any part of it.

4.16 CLEANING UP

4.16.1 The Contractor at all times shall keep the premises free from accumulation of waste materials orrubbish caused by his operations. At the completion of the Work, he shall remove all his waste materialsand rubbish from and about the Project as well as all his tools, construction equipment, machinery andsurplus materials, and shall clean all glass surfaces and leave the Work "broomclean" or its equivalent,except as otherwise specified.

4.16.2 If the Contractor fails to clean up, the Borough may do so and the cost thereof shall be charged tothe Contractor as provided in Paragraph 3.4.

4.17 Not Used.

4.18 DEFENSE AND INDEMNIFICATION

4.18.1 A. The Contractor shall indemnify, defend, and hold and save the Borough, its elected andappointed officers, agents and employees, harmless from any and all claims, demands, suits, or liability ofany nature, kind or character, including costs, expenses, and attorney fees. The Contractor shall beresponsible under this clause for any and all legal actions or claims of any character resulting from injuries,death, economic loss, damages, violation of statutes, ordinances, constitutions or other laws, rules orregulations, contractual claims, or any other kind of loss, tangible or sustained by any person, or propertyarising from Contractor's or Contractor's Officers, agents, employees, partners, attorneys, suppliers, andsubcontractor's performance or failure to perform this Agreement in any way whatsoever. This defenseand indemnification responsibility includes claims alleging acts or omissions by the Borough or its agentswhich are said to have contributed to the losses, failure, violations, or damage. However, Contractor shallnot be responsible for any damages or claim arising from the sole negligence or willful misconduct of theBorough, its agents, or employees.

B. If any portion of this clause is voided by law or court of competent jurisdiction, the remainder ofthe clause should remain enforceable.

ARTICLE 5

SUBCONTRACTORS

5.1 DEFINITIONS

5.1.1 A Subcontractor is a person or organization who has a direct contract with the Contractor to perform

any of the Work at the site. The term Subcontractor is referred to throughout the Contract Documents asif singular in number and masculine in gender and means a Subcontractor or his authorized representative.

5.1.2 A Sub-Subcontractor is a person or organization who has a direct or indirect contract with aSubcontractor to perform any of the Work at the site. The term Sub-Subcontractor is referred tothroughout the Contract Documents as if singular in number and masculine in gender and means aSub-Subcontractor or an authorized representative thereof.

5.1.3 Nothing contained in the Contract Documents shall create any contractual relation between theBorough or the Project Manager and any Subcontractor or Sub-Subcontractor.


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5.2 AWARD OF SUBCONTRACTS AND OTHER CONTRACTS FOR PORTIONS OF THE WORK

5.2.1 By the end of the first work day following bid opening, the Contractor shall deliver to the Boroughthe list of subcontractors proposed for the work. Subcontractors shall be listed on the form that occurs atthe end of the Supplementary General Conditions. This list is titled, "Proposed Subcontractors andSuppliers." The Borough will promptly reply to the Contractor in writing stating whether or not it has

reasonable objections to any such proposed person or entity. Failure of the Borough to reply promptly shallconstitute notice of no reasonable objection.

5.2.2 The Contractor shall not contract with any such proposed person or entity to whom the Borough hasmade reasonable objection under the provisions of Subparagraph 5.2.1.

5.2.3 If the Borough has reasonable objections to any such proposed person or entity, the Contractor shallsubmit a substitute to whom the Borough has no reasonable objection, and the Contract Sum shall beincreased or decreased by the difference in the cost occasioned by such substitution and an appropriateChange Order shall be issued; however, no increase in the Contract Sum shall be allowed for any suchsubstitution unless the Contractor has acted promptly and responsively to submitting names as required bySubparagraph 5.2.1.

5.2.4 The Contractor shall make no substitution for any Subcontractor, person or entity previouslyselected if the Borough makes reasonable objection to such substitution.

5.2.5 If the Borough requires a change of any proposed Subcontractor or person or organizationpreviously accepted by them, the Contract Sum shall be increased or decreased by the difference in costoccasioned by such change and an appropriate Change Order shall be issued.

5.3 SUBCONTRACTUAL RELATIONS

5.3.1 By an appropriate agreement, the Contractor shall require each Subcontractor to be bound to theContractor by the terms of the Contract Documents, and to assume toward the Contractor all the obligationsand responsibilities which the Contractor, by these Documents, assumes toward the Borough. TheSubcontract agreement shall preserve and protect the rights of the Borough under the Contract Documentswith respect to the Work to be performed by the Subcontractor so that the subcontracting thereof will notprejudice such rights, and shall allow to the Subcontractor, unless specifically provided otherwise in theContractor-Subcontractor agreement, the benefit of all rights, remedies and redress against the Contractorthat the Contractor, by these Documents, has against the Borough. Where appropriate, the Contractorshall require each Subcontractor to enter into similar agreements with his Subcontractors. The Contractorshall make available to each proposed Subcontractor, prior to the execution of the Subcontract, copies of allof the Contract Documents to which the Subcontractor will be bound by Paragraph 5.3, and identify to theSubcontractor any terms and condition of the proposed Subcontractor shall similarly make copies of suchDocuments available to his Sub-Subcontractors.

5.4 EXAMINATION OF RECORDS

5.4.1 The Contractor agrees that when any claim is made under this Contract that the Borough or any ofhis duly authorized representatives shall until the expiration of six years after final payment under thisContract have access to and right to examine any directly pertinent books, documents, papers, and recordsof the Contractor involving transactions related to this Contract. The periods of access and examinationdescribed above include, but not limited to, pertinent books, documents, papers, and records which relateto litigation or settlement of claims arising out of the performance of this Contract.

5.4.2 The Contractor agrees to include in his subcontracts hereunder provisions to the following effect:

"Subcontractor agrees that when any claim is made under this Contract, the Borough or any ofhis duly authorized representative shall until the expiration of six years after final payment


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under this Contract have access to and the right to examine any directly pertinent books,documents, papers, and records of the Subcontractor involving transactions related to thisContract. The periods of access and examination described above include, but are not limitedto, pertinent books, documents, papers, and records which relate to litigation or settlement ofclaims arising out of the performance of this Contract."

ARTICLE 6

SEPARATE CONTRACTS

6.1 BOROUGH'S RIGHT TO AWARD SEPARATE CONTRACTS

6.1.1 The Borough reserves the right to award other contracts in connection with other portions of theProject under these or similar Conditions of the Contract.

6.1.2 When separate contracts are awarded for different portions of the Project, "the Contractor" in theContract Documents in each case shall be the Contractor who signs each separate contract.

6.2 MUTUAL RESPONSIBILITY OF CONTRACTORS

6.2.1 The Contractor shall afford other contractors reasonable opportunity for the introduction andstorage of their materials and equipment and the execution of their work, and shall properly connect andcoordinate his Work with theirs.

6.2.2 If any part of the Contractor's Work depends for proper execution or results upon the work of anyother separate contractor, the Contractor shall inspect and promptly report to the Project Manager anyapparent discrepancies or defects in such work that render it unsuitable for such proper execution andresults. Failure of the Contractor to so inspect and report shall constitute an acceptance of the othercontractor's work as fit and proper to receive his Work, except as to defects which may develop in the otherseparate contractor's work after the execution of the Contractor's Work.

6.2.3 The Contractor shall indemnify, defend and hold harmless the Borough and its officers, agents andemployees from and against all claims for damages, losses and expenses including, but not limited to,attorneys' fees arising out of or resulting from the Contractor causing damage to the Work or property of anyseparate Contractor employed by the Borough on the Project, in accordance with paragraph 4.18.1.

6.3 CUTTING AND PATCHING UNDER SEPARATE CONTRACTS

6.3.1 The Contractor shall be responsible for any cutting, fitting and patching that may be required tocomplete his Work except as otherwise specifically provided in the Contract Documents. The Contractorshall not endanger any work of any other contractors by cutting, excavating or otherwise altering any workand shall not cut or alter the work of any other contractor except with the written consent of the ProjectManager.

6.3.2 Any costs caused by defective or ill-timed work shall be borne by the party causing those costs.This provision shall only apply to cutting and patching work pursuant to Article 6.3.

6.4 BOROUGH'S RIGHT TO CLEAN UP

6.4.1 If a dispute arises between the separate contractors as to their responsibility for cleaning up asrequired by Paragraph 4.16, the Borough may clean up and charge the cost thereof to the severalcontractors pro rata as determined by the Project Manager.


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ARTICLE 7

MISCELLANEOUS PROVISIONS

7.1 GOVERNING LAW

7.1.1 The Contract shall be governed by Alaska law.

7.2 SUCCESSORS AND ASSIGNS

7.2.1 The Borough and the Contractor each binds himself, his partners, successors, assigns and legalrepresentatives to the other party hereto and to the partners, successors, assigns and legal representativesof such other party in respect to all covenants, agreements and obligations contained in the ContractDocuments. Neither party to the Contract shall assign the Contract or sublet it as a whole without thewritten consent of the other, nor shall the Contractor assign any monies due or to become due to himhereunder, without the previous written consent of the Borough.

7.3 WRITTEN NOTICE

7.3.1 Written notice shall be deemed to have been duly served if delivered in person to the individual ormember of the firm or to an officer of the corporation for whom it was intended, or if delivered at or sent byregistered or certified mail to the last business address known to him who gives the notice, or if received viaconfirmed legible facsimile transmission.

7.4 CLAIMS FOR DAMAGE

7.4.1 Should either party to the contract suffer injury or damage to persons or property because of any actor omission of the Borough or of any of his employees, agents or others for whose acts he is legally liable,claims shall be made in writing to the Borough within twenty days after the first observance of such injuryor damage; otherwise, the contractor shall have waived and abandoned any and all rights he may haveagainst the Borough; and such claim shall clearly and specifically state in writing elements 1-4 as listed inparagraph 2.3.10.1, and shall be governed by 2.3.10.2, 2.3.10.3, 2.3.10.4 and 2.3.10.5.

7.5 PERFORMANCE BOND AND LABOR AND MATERIAL PAYMENT BOND

7.5.1 The Contractor shall furnish a performance bond in an amount equal to one hundred percent(100%) of the contract price as security for the faithful performance of this Contract and also a paymentbond in an amount equal to one hundred percent (100%) of the contract price on the forms provided in theProject Manual, with sureties in compliance with applicable law and qualified by law to act as surety infurnishing such bonds, and as may be acceptable to the Borough. The premium shall be paid by theContractor. The Contractor shall deliver the required bonds to the Borough not later than ten days afternotice of award.

7.5.2 If the surety on any Bond furnished by Contractor is declared bankrupt or becomes insolvent or its

right to do business is terminated or it ceases to meet the requirements of paragraph 7.5.1, the Contractorshall immediately notify the Borough within five days thereafter substitute another Bond and Surety, both ofwhich must be acceptable to the Borough.

7.6 RIGHTS AND REMEDIES

7.6.1 The duties and obligations imposed by the Contract Documents and the rights and remediesavailable thereunder shall be in addition to and not a limitation of any duties, obligations, rights andremedies otherwise imposed or available by law.


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7.7 ROYALTIES AND PATENTS

7.7.1 The Contractor shall pay all royalties and license fees. He shall defend all suits or claims forinfringement of any patent rights and shall defend and save the Borough harmless from loss on accountthereof, except that the Borough shall be responsible for all such loss when a particular design, process orthe product of a particular manufacturer or manufacturers is specified, but if the Contractor has reason to

believe that the design, process or product specified is an infringement of a patent, he shall be responsiblefor such loss unless he promptly gives such information to the Project Manager.

7.8 TESTS

7.8.1 Contractor's Obligation (Refered to Division q - General Requirements, Section 01400 for additionalrequirements and information.

1. The Contractor shall obtain and pay for all testing that may be necessary to qualify materialsfor use in the work. This shall include material quality tests, mix designs, equipment andplant calibration, optimum moisture, and maximum density curves, and other similar testsrequired to qualify materials for compliance with the specified standards for field controltests. The Contractor shall submit test results to the Project Manager sufficiently inadvance of the work so that approval to proceed is received by the Contractor prior to theusing material in the work.

2. Samples of material required for testing shall be furnished by the Contractor.

3. The Contractor is responsible for coordinating with the Borough's Representative andrequesting all testing, including field testing paid for by the Borough.

4. All standby time for on-site testing which is caused by the delay in Contractor's workbecause the progress of the work is not ready for field testing will be paid by the GeneralContractor. Contractor must notify the Borough about work which will require testing aminimum of 48 hours before the work begins.

Borough's Obligation

The Borough shall pay for all field testing performed to monitor construction control ofmaterials used in the work. This includes slump, air and cylinders on concrete work,density tests, and other similar control tests. Failing tests shall be retested and the costsof additional testing shall be borne by the Contractor. The Contractor must notify theBorough of his representative about work which will require testing a minimum of 24 hoursbefore the work begins.

7.8.2 If after the commencement of the Work the Project Manager determines that any Work requiresspecial inspection, testing, or approval which Subparagraph 7.8.1 does not include, he will, upon writtenauthorization from the Borough, instruct the Contractor to order such special inspection, testing or approval,

and the Contractor shall give notice as in Subparagraph 7.8.1. If such special inspection or testing revealsa failure of the Work to comply (1) with the requirements of the Contract Documents, or (2) with respect tothe performance of the Work, with laws, ordinances, rules, regulations or orders of any public authorityhaving jurisdiction, the Contractor shall bear all costs thereof, including the Project Manager's additionalservices made necessary by such failure; otherwise the Borough shall bear such costs, and an appropriateChange Order shall be issued. Special Inspections are paid by Owner. Contractor will provide access byuse of lifts and/or appropriate and reasonable equipment, as required.

7.8.3 Required certificates of inspection, testing or approval shall be secured by the Contractor andpromptly delivered by him to the Project Manager.


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7.8.4 If the Project Manager or his designee wishes to observe the inspections, tests or approvals requiredby this Paragraph 7.8, he will do so promptly and, where practicable, at the source of supply.

7.8.5 Neither the observations of the Project Manager in his administration of the Construction Contract,nor inspections, tests or approvals by persons other than the Contractor shall relieve the Contractor from hisobligations to perform the Work in accordance with the Contract Documents.

7.9 INTEREST

7.9.1 Any monies not paid when due to either party under this Contract shall bear interest at the legal ratein force in the State of Alaska at the time of award of the contract.

7.10 WAGE RATES ON PUBLIC CONSTRUCTION

7.10.1 Contractor shall file with the Alaska State Department of Labor, and copy the Borough, showingconformance with AS 36.05.010, Wage Rates on Public Construction, certified payrolls from Contractor andSubcontractors as stipulated by AS 36.05.040, Filing Schedule of Employees, Wages Paid and OtherInformation.

ARTICLE 8

TIME

8.1 DEFINITIONS

8.1.1 The Contract Time is the period of time allowed in the Contract Documents for completion of theWork.

8.1.2 The date of commencement of the Work is the date established in a notice to proceed. If there isno notice to proceed, it shall be the date of the Agreement or such other date as may be established therein.

8.1.3 The Date of Substantial Completion of the Work or designated portion thereof is the Date certifiedby the Project Manager when construction is sufficiently complete, in accordance with the ContractDocuments, so the Borough may occupy the Work or designated portion thereof for the use for which it isintended. Substantial Completion is July 1, 2015.

8.1.4 The term day as used in the Contract Documents shall mean calendar day.

8.2 PROGRESS AND COMPLETION

8.2.1 All time limits stated in the Contract Documents are of the essence of the Contract.

8.2.2 The Contractor shall begin the Work on the date of commencement as defined in Subparagraph8.1.2. He shall carry the Work forwarded expeditiously with adequate forces and shall complete it within

the Contract Time.

8.2.3 The date for Substantial Completion as defined in Sub-Paragraph 8.1.3 shall be as stated in Division1, General Requirements, as modified by applicable Change Orders. The Borough reserves the right to useor occupy the space, or any part thereof, or use equipment installed under the Contract prior to finalacceptance if the Contractor has not reached completion by the Contract Completion Date. Borough shallnot occupy any portion of space before stipulated date for completion, except with the approval of theContractor. Date of Final Completion of the space as required by Division 1, General Requirements, is datewhen the Work is complete in all respects as required by the Contract Documents. At the time SubstantialCompletion has been established, a "Certificate of Substantial Completion" will be issued. Date ofSubstantial Completed stated on "Certificate of Substantial Completion" shall be used for assessing


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liquidated damages as applicable. Date of substantial completion shall be first day of warranty periods forall items approved at substantial completion inspection. Deficiency items shall not have their warrantyperiods begin until the date of final completion or until they have been corrected to the satisfaction of theProject Manager.

8.3 TIME EXTENSIONS FOR DELAY

8.3.1 If the Contractor is delayed by the Borough, or by any employee of the Borough, or by a separatecontractor employed by the Borough, or by Change Orders in the Work, the Contractor's sole remedy shallbe a time extension for the completion of the Work. However, this paragraph does not exclude therecovery from the Borough of money damages occasioned by the Contractor's delay under the provisions ofthe Contract Documents.

8.3.2 The Contractor's right to proceed shall not be terminated nor the Contractor charged with resultingdamage if (1) the Contractor is delayed in the completion of the Work arising from causes beyond the controland without the fault or negligence of the Contractor, limited to the following: intentional or negligent actof the Borough, or by any employee of either; by a separate contractor employed by the Borough, by ChangeOrders in the Work (pursuant to Article 12), earthquakes, fires, floods, epidemics, acts of a public enemy,then the time for completion of the contract shall be extended by a change order for such reasonable timeas the Project Manager may determine; and (2) the Contractor, whenever possible at least ten days beforethe beginning of the delay occurs, notifies the Project Manager in writing, or, if the delay was not reasonablyforeseeable then the Contractor notifies the Project Manager in writing within ten days from the beginningof such delay; and (3) the Contractor provides a written estimate of the number of days the Project will bedelayed.

8.3.3 Unforeseeable weather conditions and other causes of delay not set forth in Subparagraph 8.3.2above shall not constitute a basis for a time extension, nor for money damages for delay. The Contractorshall assume the risk for money damages and delays occasioned by events not specifically set forth inParagraph 8.3.2.

8.4 DAMAGES FOR DELAY IN COMPLETION: LIQUIDATED OR ACTUAL

8.4.1 The Borough has made a reasonable estimate of the harm caused to the Borough by delay incompletion of the contract, based upon information available to the Borough at the time of the contract.The Borough's best and reasonable estimate, based upon economic loss to the Borough is in the amount setforth in the agreement. For each calendar that any work remains uncompleted after time for completion asset forth in this contract, liquidated damages in that amount shall be deducted per day from any money duethe contractor under this contract. This amount is not a penalty, but is based on the reasonable estimateof the harm caused to the Borough which is difficult or impossible to accurately ascertain.

8.4.2 Because circumstances may occur which were not known to, nor foreseen by, or foreseeable by theBorough at the time of entering into the contract, actual damages for delay in performance of the contractmay be greater than the liquidated damages amount set forth above. In the event actual damages fordelay in the Project prove to be greater than the amount of liquidated damages set forth above, the

Borough, at its sole option, may elect to prove actual damages for delay and the Contractor shall be liable foractual damages which are greater than the liquidated damages, and in lieu of the liquidated damages, basedon such proof.

8.4.3 Permitting the Contractor to continue and finish work or any part it after the time fixed for itscompletion by the contract or any written amendment therefore shall not constitute a waiver by theBorough's rights to liquidated or actual damages.


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a Certificate for Payment to the Borough, with a copy to the Contractor, for such amount as hedetermines to be properly due, or state in writing his reasons for withholding a Certificate. Afterthe Project Manager has issued a Certificate for Payment, the Borough shall make payment within30 days.

9.1.4 Upon Owners request, the Contractor shall make available an accounting in an electronicformat, together with all supporting payrolls, petty cash accounts, invoices, and any other backupfor the Application of Payment required by Owner.

9.1.5 Each Application for Payment shall (a) be based upon and allocate the Cost of the Work forwhich payment is sought therein among the various Work items (on both a per Application andcumulative basis) shown on the Schedule of Values; and (b) be prepared in such form andsupported by such data to substantiate its accuracy and completeness as the Project Manager mayrequire. The Sched ule of Values shall be used as a basis for the Project Managers review of theContractors Applications for Payment.

9.1.6 Each Application for Payment shall show the percentage completion for each portion of the

Work shown in the Schedule of Values, as well as all of the Work, as of the end of the periodcovered by the Application. The percentage completion for each such purpose shall be the lesserof

(a) the percentage of the subject Work which has actually been completed, or(b) the percentage obtained by dividing(i) the allowable Cost of Work which has actually been incurred by the Contractor onaccount of the subject Work for which the Contractor has made payment, by(ii) the share of the Guaranteed Maximum Price allocated to such Work in the Scheduleof Values.

9.1.7 Subject to other provisions in Section 8.1 and elsewhere in the Contract Documents, theamount of each progress payment shall be computed as follows:

9.1.7.1 Take that portion of the Guaranteed Maximum Price properly allocable tocompleted Work as determined by multiplying the percentage completion of each portionof the Work shown in the Schedule of Values by the share of the Guaranteed MaximumPrice allocated to that portion of the Work in the Schedule of Values.In determining the share of the Guaranteed Maximum Price properly allocable tocompleted Work, the Contractor shall have the right to allocate Contractors Contingencyamong the other Work items shown in the Schedule of Values in its discretion. Pendingfinal determination of cost to the Owner of changes in the Work, amounts not in disputemay be included, even though the Guaranteed Maximum Price has not yet been adjustedby Change Order.

9.1.7.2 Add that portion of the Guaranteed Maximum Price properly allocable to materialsand equipment delivered and suitably stored at the site for subsequent incorporation intothe Work or, if approved in advance by the Owner, suitably stored off the site at a locationagreed upon in writing, provided that good, marketable and unencumbered title to suchmaterials and equipment passes to the Owner before or upon payment of such portion ofthe Guaranteed Maximum Price.9.1.7.3 Add the Contractors Fee attributable to the Cost of the Work for which payment issought in such Application for Payment. The Contractors Fee shall be computed on a prorata amount based upon the Cost of the Work for the period covered by the Application ofPayment of the CM/GC Contractor fixed fee stated in Section 6.1.1.a.


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9.1.7.4 Subtract the aggregate of previous payments made by the Owner.9.1.7.5 Subtract amounts, if any, for which the Project Manager has withheld or nullified apayment.

9.1.8 Upon receipt of the backup materials referred to in Section 8.1.4, the Owner shall compare(a) the aggregate Cost of Work through the end of the period covered by the Application forPayment to which they apply with (b) the Guaranteed Maximum Price multiplied by the percentageof completion of all of the Work which is the lesser of the percentages of compensation for all ofthe Work computed pursuant to Sections 8.1.6(a) and (b). If the amount in Section 8.1.8(a)varies from the amount in Section 8.1.8(b) by plus or minus 5% or more, at the discretion of theOwner it may require the Contractor to provide a written reconciliation of such aggregate Cost ofWork within 10 days. Such written reconciliation shall explain in detail why such variation exists.In the event of an aggregate Cost of Work under run, such reconciliation shall estimate the portionof the Guaranteed Maximum Price that the Contractor then believes will remain unspent by theOwner after the Final Payment to the Contractor to allow the Owner to plan for use in other Projectpriorities. In the case of an aggregate Cost of Work overrun, such reconciliation shall provide adetailed written plan for the Contractor to complete the Work for a total Cost of Work not to exceed

the Guaranteed Maximum Price.

9.1.9 Except with the Owners express prior written approval, which may be withheld in itsdiscretion, the Contractor shall not make advance payments to Subcontractors or Suppliers forWork, materials or equipment which have not been delivered and stored at the site.

9.1.10 In taking action on the Contractors Applications for Payment, the Owner and the P rojectManager shall be entitled to rely on the accuracy and completeness of the accounting, backup andother information furnished by the Contractor and shall not be deemed to represent that they havemade a detailed examination, audit or arithmetic verification of such accounting, backup or otherinformation, that they have made exhaustive or continuous on-site inspections, or that they havemade examinations to ascertain how or for what purposes the Contractor has used amountspreviously paid on account of the Contract. Such examinations, audits and verifications, if requiredby the Owner, will be performed by the Project Manager or Owners accountants or attorneysacting in the sole interest of the Owner.

9.1.11 The Owner may withhold a payment in whole or in part to the extent reasonablynecessary to protect the Owner due to the Owners determination that the Work has notprogressed to the point indicated in the Application for Payment or that the quality of Work is notin accordance with the Construction Documents. The Project Manager may also decline toapprove any Applications for Payment or, because of subsequently discovered evidence orsubsequent inspections, he may nullify the whole or any part of any Certificates for Paymentpreviously issued, to such extent as may be necessary in his opinion to protect the Borough from

loss because of:1. defective work not remedied,2. third party claims filed or reasonable evidence indicating probable filing of suchclaims,3. failure of the Contractor to make payments properly to Subcontractors or for labor,materials or equipment,4. reasonable doubt that the Work can be completed for the unpaid balance of theContract Sum,5. damage to another Contractor,


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6. reasonable indication that the Work will not be completed within the Contract Time,or7. unsatisfactory prosecution of the Work by the Contractor,8. work performed by subcontractor, which subcontractor has not been approved bythe Borough, and9. failure of Contractor to submit updated Monthly Progress Schedule with Applicationfor Payment.

9.2 FINAL PAYMENT

9.2.1 Final Payment shall be made by the Owner to the Contractor when (1) the Contract hasbeen fully performed by the Contractor except for the Contractors responsibility to correctnonconforming Work, as provided in the Standard General Conditions, or to satisfy otherrequirements, if any, which necessarily survive final payment; (2) a final Application for Paymentand a final accounting for the Cost of the Work, together with such backup and other informationas the Project Manager may require, have been submitted by the Contractor and reviewed by theProject Manager; and (3) a final Certificate for Payment has then been issued by the Architect and

the Project Manager. Such final payment shall be made by the Owner not more than 30 daysafter the issuance of the final Certificate for Payment.

9.2.2 The amount of the Final Payment shall be calculated as follows:9.2.2.1 Take the sum of the Cost of the Work substantiated by the Contractors fin alaccounting and the Contractors Fee, but not more than the Guaranteed Maximum Priceafter all required Change Orders, Construction Change Directives and other properadjustments (if any) are taken into account.9.2.2.2 Subtract amounts, if any, for which the Project Manager withholds, in whole or inpart, in a final Certificate for Payment as provided in the General Conditions or otherprovisions of the Contract Documents.9.2.2.3 Subtract the aggregate of previous payments made by the Owner.

If the aggregate of previous payments made by the Owner exceeds the amount due theContractor, the Contractor shall reimburse the difference to the Owner, with interest at theContract Rate.

9.2.3 The Owner will review and report in writing on the Contractors final accounting within 30days after delivery of the final accounting to the Project Manager by the Contractor. Based uponsuch Cost of the Work as the Owner reports to be substantiated by the Contractors finalaccounting, together with such backup and other information as the Owner may require, andprovided the other conditions of Section 8.2.1 have been met, the Project Manager will, withinseven days after completion of its written report, either issue to the Owner a final Certificate for

Payment with a copy to the Contractor or notify the Contractor and the Owner in writing of itsreasons for withholding such Certificate as provided in the General Conditions. The time periodsstated in this Section 8.2 supersede those stated in other contract documents.

9.2.4 If the Project Manager reports the Cost of the Work as substantiated by the Contractorsfinal accounting to be less than claimed by the Contractor, the Contractor shall be entitled toproceed in accordance with Section 8 without a further decision of the Project Manager. Unlessagreed to otherwise, a demand for mediation of the disputed amount shall be made by theContractor within 60 days after the Contractors receipt of a copy of the final Certificate forPayment. Failure to make such demand within this 60-day period shall result in the substantiated


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employed by him, or by anyone for whose acts he may be liable, and not attributable to the fault ornegligence of the Contractor. The foregoing obligations of the Contractor are in addition to his obligationsunder Paragraph 4.18.

10.2.5 The Contractor shall designate a responsible member of his organization at the site whose duty shallbe the prevention of accidents. This person shall be the Contractor's superintendent unless otherwise

designated in writing by the Contractor to the Borough and the Project Manager.

10.2.6 The Contractor shall not load or permit any part of the Work to be loaded so as to endanger itssafety.

10.3 EMERGENCIES

10.3.1 In any emergency affecting the safety of persons or property, the Contractor shall act, at hisdiscretion, to prevent threatened damage, injury or loss. Any additional compensation or extension of timeclaimed by the Contractor on account of emergency work shall be determined as provided in Article 12 forChanges in the Work.

ARTICLE 11

INSURANCE

11.1 CONTRACTOR'S AND SUBCONTRACTOR'S INSURANCE. The Contractor shall not commence Workunder this Contract until he has obtained all the insurance required under this paragraph and such insurancehas been approved by the Borough, nor shall the Contractor allow any Subcontractor to commence work onhis subcontract until the insurance required of the Subcontractor has been so obtained and approved.

The Contractor shall procure and maintain the following project specific insurance:

A. Minimum Scope of Insurance

Coverage shall be at least as broad as:

1. Insurance Services office form number CG 0001 (Edition 10/01) coveringCommercial General Liability.

2. Insurance Services office form number CA 0001 (Edition 10/99) covering Automobile Liability, symbol 1 "any auto".

3. Worker's Compensation insurance as required by the State of Alaska andEmployers Liability Insurance.

4. Property insurance against direct loss of physical damage, includingearthquake and flood, to the building(s) or structure(s) under construction.Other property to be insured is all personal property of the Borough'sincluding but not limited to tools and equipment of the Borough utilized inthe project to which this Agreement applies.

Installation Floater - Full Agreement value, per occurrence, for eachbuilding(s) or structure(s) which is being altered, modified, renovated,repaired, or remodeled under the terms of this Agreement.


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B. Minimum Limits of Insurance

Contractor shall maintain limits no less than