Project 161 - Contract - Atlas-Allied - 2002-05-09 lC J
AGREEMENT
THIS AGREEMENT is made and entered into by and between the COSTA
MESA SANITARY DISTRICT a district formed pursuant to the Sanitary
District Act of 1923 (hereinafter referred to as DISTRICT' ), and ATLAS
ALLIED. INC. (hereinafter referred to as 'CONTRACTOR").
RECITALS
WHEREAS, DISTRICT has taken appropriate proceedings to authonze construction of the
public work and improvements herein provided and execution of this contract; and
WHEREAS, on May 9 2002, after notice duly given, DISTRICT awarded the contract for
the construction of improvements hereinafter described to CONTRACTOR, which CONTRACTOR
said DISTRICT found to be the lowest responsible bidder for construction of said improvements.
The Parties hereto agree as follows:
1 Scope of the Work
CONTRACTOR shall perform the work described briefly as follows.
PROJECT NO. 161 WATER SERVICES FOR SEWER PUMP STATIONS
The aforesaid improvements are further described in the 'Contract Documents'
hereinafter referred to
2 Con Tact Documentc
The complete contract consists of the following documents'
This AGREEMENT Notice Inviting Sealed Proposals, the Accepted Bid, the complete plans,
profiles, detailed drawings and specifications, (which include the Standard Specifications for Public
Works Construction as modified by these Contract Documents), Faithful Performance Bond, Labor
and Material Bond, Insurance Documents, and all addenda setting forth any modifications or
interpretations of said documents
The terms of this AGREEMENT shall prevail over all written specifications except as provided
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for in any Addendum attached hereto
All of the above named documents are intended to complement one another so that any work
called for in one, and not mentioned in the other or vice versa, is to be executed the same as if
mentioned in all said documents. The documents comprising the complete contract will hereinafter be
referred to as the 'Contract Documents
3 Schedule
All work shall be performed in accordance with the schedule approved by DISTRICT's
Engineer and under his direction
4 Equipment - Performance of Work
CONTRACTOR shall furnish all tools, equipment, apparatus, facilities, labor and matenals
necessary to perfonn and complete in a good and workmanlike manner the work of general
construction as called for, and in the manner designated in, and in stnct conformity with, the plans and
specifications for said work which said specifications are entitled
The equipment, apparatus, facilities, labor and matenal shall be furnished and said work
performed and completed as required in said plans and specifications to the satisfaction of, and subject
to the acceptance of, the DISTRICT's Engineer or his designated assistant.
5 Contract Price
The contract price shall be SEVENTY NINE THOUSAND NINE HUNDRED DOLLARS
($79,900 00) with adjustments up or down in accordance with hid unit prices as finally calculated by
DISTRICT and CONTRACTOR. The CONTRACTOR agrees that the DISTRICT shall have the
right to increase or decrease the quantity of any bid item or portion of the work or to omit portions of
the work as may be deemed necessary or expedient, and that the payment for incidental items of work,
not separately provided in the proposal shall be considered included in the pnce bid for other various
items of work.
6. Time of Performance
The time fixed for the commencement of such work is within ten (10) days after receiving
notice to proceed and to complete said work within thirty (30) working days from the first day of
commencement of said work.
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7 Time of the Fccence
Time is of the essence in this contract.
8 Pvtencinn of Time
If such work is not completed within such time, the DISTRICT Board or its designee shall
have the nght to increase the number of working days in the amount it may determine will best serve
the interests of DISTRICT and, if it desires to increase said number of working days, it shall have the
further nght to charge to CONTRACTOR and deduct from the final payment for the work the actual
cost of engineering, construction review and other overhead expenses which are directly chargeable to
CONTRACTOR and which accrue dunng the period of such extension, except that the cost of the final
service and preparation of the final estimates shall not be included in such charges; provided, however,
that no extension of time for the completion of such work shall ever be allowed unless, at least twenty
(20) days prior to the time herein fixed for the completion thereof, or the time fixed by the DISTRICT
Board or its designee for such completion as extended, CONTRACTOR shall have filed application for
extension thereof, in writing with the DISTRICT Manager/Engineer addressed to the DISTRICT
Board and its designee. Said application shall be made pursuant to the requirements of Sections 20104
through 20104 6, Public Contracts Code.
In this connection, it is understood that the DISTRICT Manager/Engineer shall not transmit
any such request to the DISTRICT Board if not filed within the time herein prescribed.
9 I iquidated Damng-s
In the event CONTRACTOR, for any reason, shall have failed to perform the work herein
specified within the time herein required and to the satisfaction of DISTRICT Engineer DISTRICT
may in lieu of any other of its rights authonzed in this AGREEMENT deduct from payments or
credits due CONTRACTOR after such breach a sum equal to TWO HUNDRED FIFTY DOLLARS
($250 00) per day as liquidated damages for each day beyond the date herein provided for the
completion of such work. This sum is established pursuant to Section 53069 85 of the Government
Code and is deemed by the parties hereto to be a reasonable amount.
10 Performance of Sureties
In the event of any termination as hereinabove provided, the DISTRICT shall immediately give
written notice thereof to CONTRACTOR and CONTRACTOR's sureties, and the sureties shall have
the right to take over and perform the AGREEMENT provided, however that if the sureties, within
five(5) days after giving them said notice of termination, do not give DISTRICT written notice of their
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intention to take over the performance of the AGREEMENT and do not commence performance
thereof within five (5) days after notice to the DISTRICT of such election, DISTRICT may take over
the work and prosecute the same to completion, by contract or by any other method it may deem
advisable, for the account, and at the expense of CONTRACTOR and the sureties shall be liable to
DISTRICT for any excess cost or damages occasioned DISTRICT thereby and in such event,
DISTRICT may without liability for so doing, take possession of, and utilize in completing the work,
such matenals, appliances, plant and other property belonging to CONTRACTOR as may be on the
site of the work and necessary therefor
11 Dispntec Pertaining to Payment for Work
Should any dispute arise respecting the true value of the work done, of any work omitted, of
any extra work which CONTRACTOR may be required to do, or respecting the size of any payment
to CONTRACTOR during the performance of this Contract, such dispute shall be decided pursuant to
Section 20104 through 20104 6, Public Contracts Code, as the same is now in force and as the same
may be amended from time to time, provided that the dollar amount of the dispute is within the
statutory limits set forth therein.
12. Permits- Compliance With T aw
CONTRACTOR shall, at CONTRACTOR's expense, obtain all necessary permits and licenses
for the construction of each improvement, give all necessary notices and pay all fees and taxes required
by law
13 Si penntendence by CONTRACTOR
CONTRACTOR shall give personal superintendence to the work on said improvement or have
a competent foreman or superintendent satisfactory to the DISTRICT Engineer on the work at all
times during progress with authority to act for him.
14 Observance _7 DISTRICT
CONTRACTOR shall at all times maintain proper facilities and provide safe access for
observation by DISTRICT to all parts of the work and to the shops wherein the work is in preparation
15 Extra and/or Additional Work or Changes
Should DISTRICT at any time during the progress of said work request any alteration,
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deviations, additions, or omissions from said specifications or plans or other contract documents, it
shall be at liberty to do so and the same shall in no way affect or make void the Contract, but will be
added to, or deducted from the amount of said contract pnce. as the case may be, as provided in
paragraph 36
16 Observation and Tectmo Materials
CONTRACTOR shall notify DISTRICT a sufficient time in advance of the manufacture or
production of materials to be supplied by CONTRACTOR under this Contract in order that
DISTRICT may arrange for mill or factory observation and testing of same.
Any materials shipped by CONTRACTOR from factory prior to having satisfactorily passed
such testing and observation by DISTRICT's representative shall not be used on said improvement
unless CONTRACTOR is previously notified by DISTRICT that such testing and observation will not
be required.
CONTRACTOR shall also furnish DISTRICT in triplicate, certified copies of all required
factory and mill test reports.
17 Permitc and Care nfthe work
CONTRACTOR has examined the site of the work and is familiar with its topography and
condition, location of property lines, easements, building lines and other physical factors and limitations
affecting the performance of this AGREEMENT CONTRACTOR, at CONTRACTOR's expense,
shall obtain any permission necessary for any operations conducted off the property owned or
controlled by DISTRICT CONTRACTOR shall be responsible for the proper care and protection of
all materials delivered and the work performed until completion and final observation and acceptance
18 Other Contract:
DISTRICT may award other contracts for additional work and CONTRACTOR shall fully
cooperate with such other contractors and carefully fit CONTRACTOR's own work to that provided
under other contracts as may be directed by DISTRICT Manager/Engineer CONTRACTOR shall not
commit or permit any act which will interfere with the performance of work by any other contractor
19 Payments to Contractor
(A) On or before the 25th day of each and every month during the performance of the
work, CONTRACTOR shall submit to DISTRICT Manager/Engineer an itemized
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statement of quantities with unit prices of materials incorporated into the improvement
dunng the preceding month and the portion of the contract sum applicable thereto
On approval in writing of said statement by DISTRICT Manager/Engineer it shall be
submitted to the DISTRICT Finance Department and then to the DISTRICT Board.
It is understood and agreed between the parties that lead time for processing invoices
for inclusion on the warrant list of the DISTRICT has been established by the
DISTRICT Finance Office and that invoices for payment will be processed and paid in
accordance with any established rules and regulations of said DISTRICT Finance
Officer Payment shall be ninety-five percent (95%) of the amount invoiced, the
remaining five percent (S%) to be subject to the provisions in Paragraph (B) The
payment as provided for herein [except for the retention provided for in Paragraph(B)]
shall be made the day following its approval by the DISTRICT Board at its next
regular meeting following the submittal of the invoice to the Board by the DISTRICT
Manager/Enumeer
(B) DISTRICT reserves the right to retain five percent (5%) of the contract pnce for a
period of thirty-five (35) days after the filing of the notice of completion of the
contract. CONTRACTOR shall have the following options pursuant to Section
22300, Public Contracts Code:
(i) To substitute securities for any money retained by DISTRICT
(ii) To require DISTRICT to pay into an escrow created at the expense of
CONTRACTOR.
The substitute securities provided for herein may be held pursuant to Section 22300 and any
escrow agreement entered into between the parties shall be in the statutory form set forth in Section
22300
"20 ('nntract Security
Concurrently with the execution hereof, CON 1 RACTOR shall furnish
(1) A surety bond in an amount equal to one hundred percent (100%) of the contract price
as security for the Faithful Performance of this Contract to be held for 1 year after the
Notice of Completion is recorded;
(2) A separate surety bond in an amount equal to at least one hundred percent (100%) of
the contract pnce as security for payment of all persons performing labor and
furnishing materials in connection with this Contract.
The bonds required hereunder shall be provided by an admitted carrier DISTRICT reserves
the right to object to said surety in accordance with the procedure set forth in Code of Civil Procedure
Sections 995 650 et ceq. Bonds shall be accompanied with an appropriate power of attorney
authorizing the execution of the bond.
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21 Indemnification
CONTRACTOR and DISTRICT agree that DISTRICT should, to the extent permitted by
law be fully protected from any loss, injury damage, claim, lawsuit, cost. expense. attorneys fees,
litigation costs, defense costs, court costs or any other cost arising out of or in any way related to the
performance of this Agreement. Accordingly the provisions of this indemnity provision are intended by
the parties to be interpreted and construed to provide the fullest protection possible under the law to
the DISTRICT except for liability attributable to the DISTRICT's active negligence. CONTRACTOR
acknowledges that DISTRICT would not enter into this Agreement in the absence of this commitment
from CONTRACTOR to indemnify and protect DISTRICT as set forth here.
To the full extent permitted by law and excepting only the active negligence of DISTRICT
established by a court of competent jurisdiction or written agreement between the parties,
CONTRACTOR shall defend, indemnify and hold harmless DISTRICT its employees, agents and
officials, from any liability claims, suits, actions, arbitration proceedings, regulatory proceedings,
losses, expenses or costs of any kind, whether actual, alleged or threatened, actual attorney fees
incurred by DISTRICT court costs, interest, defense costs including expert witness fees and any other
costs or expenses of any kind whatsoever without restriction or limitation mcurred in relation to, as a
consequence of or arising out of or in any way attributable actually allegedly or mtpliedly in whole or
in part to the performance of the Agreement. All obligations under this provision are to be paid by
CONTRACTOR as incurred by the DISTRICT
Without affecting the rights of the DISTRICT under any provision of this Agreement or this
Section, CONTRACTOR shall not be required to indemnify and hold harmless DISTRICT as set forth
above for liability attributable to the active negligence of DISTRICT provided such active negligence
is determined by agreement between the parties or the findings of a court of competent jurisdiction.
This exception will only apply in instances where the DISTRICT is shown to have been actively
negligent and not in instances where CONTRACTOR is solely or partially at fault or in instances where
DISTRICT's active negligence accounts for only a percentage of the liability involved. hi those
instances, the obligation of CONTRACTOR will be for that portion or percentage of liability not
attributable to the active negligence of DISTRICT as determined by written agreement between the
parties or the findings of a court of competent jurisdiction
The obligations on CONTRACTOR under this or any other provision of this Agreement will
not be limited by the provisions of any workers' compensation act or similar act. CONTRACTOR
expressly waives its statutory immunity under such statutes or laws as to DISTRICT its employees
and officials.
CONTRACTOR agrees to obtain executed indemnity agreements with provisions identical to
those set forth here in this section from each and every sub contractor, subtier contractor or any other
person or entity involved by for with or on behalf of CONTRACTOR in the performance or subject
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matter of this Agreement In the event CON 1 RACTOR fails to obtain such indemnity obligations form
others as required here, CONTRACTOR agrees to be fully responsible according to the terms of this
section.
Failure of DISTRICT to monitor compliance \\ath these requirements imposes no additional
obligations on DISTRICT and will in no way act as a waiver of any nghts hereunder This obligation to
indemnify and defend DISTRICT as set forth herein is binding on the successors, assigns, or heirs of
CONTRACTOR and shall sunlve the termination of this Agreement or this section.
22. Insurance
CONTRACTOR agrees to provide insurance in accordance with the requirements set forth
herein. If CONTRACTOR uses existing coverage to comply with these requirements and that
coverage does not meet the requirements set forth herein, CONTRACTOR agrees to amend,
supplement or endorse the existing coverage to do so The following coverages will be provided by
CONTRACTOR and maintained on behalf of the DISTRICT and in accordance with the requirements
set forth herein.
Commercial General Liability/Umbrella Insurance Primary insurance shall be provided on ISO-
CGL form No CG 00 01 11 85 or 88 Total limits shall be no less than five (5) million dollars per
occurrence for all coverages. DISTRICT and its employees and agents shall be added as additional
insureds using ISO additional insured endorsement form CG 20 10 11 85 (in no event will DISTRICT
accept an endorsement form with an edition date later than 1990) Coverage shall apply on a primary
non-contributing basis in relation to any other insurance or self-insurance, primary or excess, available
to DISTRICT or any employee or agent of DISTRICT Coverage shall not be limited to the vicarious
liability or supervisory role of any additional insured. Umbrella Liability Insurance (over primary) shall
apply to bodily injury/properr damage, personal injury/advertising injury at a minimum, and shall
include a drop down' provision providing primary coverage above a maximum $25 000 00 self-
insured retention for liability not covered by primary policies but covered by the umbrella policy
Coverage shall be following form to any underlying coverage. Coverage shall be provided on a 'pay on
behalf' basis, with defense costs payable in addition to policy limitsyThere shall be no cross liability
exclusion Policies shall have concurrent starting and ending dates.
Business Auto/Umbrella Liability Insurance. Primary coverage shall be written on ISO
Business Auto coverage form CA 00 01 06 92 Including symbol 1 (Any Auto). Limits shall be no less
than five (5) million dollars per accident Starting and ending dates shall be concurrent. If
CONTRACTOR owns no autos, a non-owned auto endorsement to the General liability policy
described above is acceptable
Workers' Compensation/Employers' Liability shall be written on a policy form providing
workers compensation statuary benefits as required by law Employers' liability limits shall be no less
than one (1) million dollars per accident or disease. Employers' liability coverage shall be scheduled
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under any umbrella policy described above. Unless othemase agreed, this policy shall be endorsed to
waive any right of subrogation as respects the DISTRICT its employees or agents.
CONTRACTOR and DISTRICT further agree as follows.
A This Section supersedes all other sections and provisions of this Agreement to the extent
that any other section or provision conflicts with or impairs the provisions of this Section.
B Nothing contained in this Section is to be construed as affecting or altering the legal status
of the parties to this Agreement. The insurance requirements set forth in this Section are intended to be
separate and distinct from any other provision in this Agreement and shall be interpreted as such.
C All insurance coverage and limits provided pursuant to this agreement shall apply to the full
extent of the policies involved, available or applicable. Nothing contained in this Agreement or any
other agreement relating to the DISTRICT or its operations limits the application of such insurance
coverage.
D Requirements of specific coverage features or limits contained in this Section are not
intended as a limitation on coverage, limits or other requirements, or a waiver of am coverage
normally provided by insurance. Specific reference to a given coverage feature is for purposes of
clarification only and is not intended by any party to be all inclusive, or to the exclusion of other
coverage, or a waiver of any type.
E. For purposes of insurance coverage only this Agreement will be deemed to have been
executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance
of or towards, performance of this Agreement.
F All general or auto liability insurance coverage provided pursuant to this Agreement, or any
other agreements pertaining to the performance of this Agreement, shall not prohibit CONTRACTOR,
and CONTRACTORs employees, or agents, from waiving the right of subrogation prior to a loss.
CONTRACTOR hereby waives all rights of subrogation against DISTRICT
G. Unless otherwise approved by DISTRICT CON I RACTOR's insurance shall be written by
insurers authorized to do business in the State of California and with a minimum Best's' Insurance
Guide rating of A.VH' Self-insurance will not be considered to comply with these insurance
specifications.
H. In the event any policy of insurance required under this Agreement does not comply with
these requirements or is canceled and not replaced, DISTRICT has the right but not the duty to obtain
the insurance it deems necessary and any premium paid by district will be promptly reimbursed by
CONTRACTOR.
I. CONTRACTOR agrees to provide notarized evidence of the insurance required herein,
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satisfactory to district, consisting of certificate(s) of insurance evidencing all of the coverages required
and an additional insured endorsement to CONTRACTOR's general liability and umbrella liability
policies (if any) using ISO form CG 20 10 11 85 Certificate(s) are to reflect that the insurer will
provide thirty (30) days notice of any cancellation of coverage. CONTRACTOR agrees to require its
insurer to modify such certificates of any cancellation of coverage. CONTRACTOR agrees to require
its insurer to modify such certificates to delete any exculpatory wording stating that failure of the
insurer to mail written notice of cancellation imposes no obligation, and to delete the word endeavor'
with regard to any notice provisions CONTRACTOR agrees to provide complete copies of policies to
DISTRICT upon request.
J CONTRACTOR shall provide proof that policies of insurance required herein expiring
during the term of this Agreement have been renewed or replaced with other policies providing at least
the same coverages.
K. Any actual or alleged failure on the part of the DISTRICT or any additional insured under
these requirements to obtain proof of insurance required under this Agreement in no way waives any
right or remedy of DISTRICT or any additional insured, in this or any other regard.
L. CONTRACTOR agrees to require all subcontractors or other parties hired for this project
to provide general liability insurance naming as additional insureds all parties to this Agreement.
CONTRACTOR agrees to obtain certificates evidencing such coverage and make reasonable efforts to
ensure that such coverage is provided as required here. CONTRACTOR agrees to require that no
contract used by any subcontractor or contracts CONTRACTOR enters into on behalf of DISTRICT
will reserve the right to charge back to DISTRICT the cost of insurance required by this Agreement.
CONTRACTOR agrees that upon request, all agreements with subcontractors or others with whom
CONTRACTOR contracts with on behalf of DISTRICT will be submitted to DISTRICT for review
Failure of DISTRICT to request copies of such agreement will not impose any liability on DISTRICT
or its employees.
M. If CON I RACTOR is a Limited Liability Company general liability coverage must be
amended so that the Limited Liability Company and its managers, affiliates, employees, agents, and
other persons necessary or incidental to its operation are insureds
N CONTRACTOR agrees to provide immediate notice to DISTRICT of any claim or loss
against CONTRACTOR that includes DISTRICT as a defendant. DISTRICT assumes no obligation
or liability for such notice, but has the right (but not the duty)to monitor the handling of any such claim
or claims if they are likely to involve the DISTRICT
23 T eoal Work Day- Penalties for Violation
Eight (8) hours of labor shall constitute a legal day's work. CONTRACTOR shall not require
more than eight (8) hours labor in a day from any person employed by CONTRACTOR in the
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performance of such work CONTRACTOR shall forfeit as a penalty to DISTRICT the sum of
Twenty Five Dollars ($25 00) for each laborer workman or mechanic employed in the execution of
this Contract by CONTRACTOR, or by any subcontractor for each calendar day during which such
laborer, workman or mechanic is required or permitted to labor more than eight (8) hours per day in
violation of the provisions of Section 1815 of the Labor Code of the State of California.
24 Prevailir g Wane Scale
The minimum compensation to be paid for labor upon all work performed under this Contract
shall be the general prevailing wage scale established by the Department of Industrial Safety for the
State of California and as adopted by DISTRICT
CONTRACTOR shall comply in all respects with Title 40 U S C Section 276a, also known as
'The Davis-Bacon Act' where federal funds are involved and CONTRACTOR shall also comply in all
respects with California Labor Code Sections 1770 et seq if applicable
If CONTRACTOR is engaged in the construction, prosecution, completion or repair of any
public building or public work, or building or work financed in whole or in part by loans or grants
from the United States, CONTRACTOR shall furnish each week to the DISTRICT Finance Officer a
statement with respect to the wages paid each of its employees during the preceding weekly payroll
period.
25 Emergency- Additional Time for Performance-Procurement of Materials
If, because of war or other declared national emergency the Federal or State government
restricts, regulates or controls the procurement and allocation of labor or matenals, or both, and if
solely because of said restrictions, regulations or controls, CONTRACTOR is, through no fault of
CONTRACTOR, unable to perform this AGREEMENT or the work is thereby suspended or delayed,
any of the following steps may be taken.
A. DISTRICT may pursuant to resolution of the Board grant CONTRACTOR additional
time for the performance of this AGREEMENT sufficient to compensate in time for
said delay or suspension To qualify for such extension of time, CONTRACTOR,
within three (3) days of CONTRACTOR's discovering such inability to perform, shall
notify DISTRICT Manager/Engineer in writing thereof and give specific reasons
therefor; DISTRICT Manager/Engineer shall thereupon have sixty (60) days within
which to procure such needed materials or labor as it is specified in this
AGREEMENT or permit substitution or provide for changes in the work in
accordance with other provisions of this AGREEMENT Substituted materials, or
changes in the work, or both, shall be ordered in writing by DISTRICT
Manager/Engneer, and the concurrence of the DISTRICT Board shall not be
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necessary All reasonable expenses of such procurement incurred by the DISTRICT
Manager/Enwneer shall be defrayed by CONTRACTOR, or
B If such necessary matenals or labor cannot be procured through legitimate channels
within sixty (60) days after the filing of the aforesaid notice, either party may upon
thirty (30) days written notice to the other terminate this AGREEMENT In such
event, CONTRACTOR shall be compensated for all work executed upon a unit basis
in proportion to the amount of the work completed, or upon a cost plus ten percent
(10%) basis, whichever is the lesser Materials on the ground, in process of fabncation
or en route upon the date of notice of termination specially ordered for the project and
which cannot be utilized by CONTRACTOR, shall be compensated for by DISTRICT
at a cost, including freight, provided that CONTRACTOR shall take all steps possible
to minimize this obligation; or
C DISTRICT Board, by resolution, may suspend this AGREEMENT until the cause of
inability to perform is removed, but for a period of not to exceed ninety (90) days. If
this AGREEMENT is not canceled and the inability of CONTRACTOR to perform
continues, without fault on CON RACTOR's part, beyond the time during which the
AGREEMENT may have been suspended, as hereinabove provided, DISTRICT
Board may further suspend this AGREEMENT or either party hereto may without
incurring any liability elect to declare this AGREEMENT terminated upon the ground
of impossibility of performance. In the event DISTRICT declares this AGREEMENT
terminated, such declaration shall be authorized by the DISTRICT Board, by
resolution, and CONTRACTOR shall be notified in venting thereof within five (5) days
after the adoption of such resolution. Upon such termination, CONTRACTOR shall
be entitled to proportionate compensation at the agreement rate for such portion of the
AGREEMENT as may have been performed, or
D DISTRICT may terminate this AGREEMENT without cause, in which case
CONTRACTOR shall be entitled to proportionate compensation at the agreement rate
for such portion of the AGREEMENT as may have been performed. Such termination
shall be authonzed by resolution of the DISTRICT Board. Notice thereof shall be
forthwith given in writing to CONTRACTOR and this AGREEMENT shall be
terminated upon receipt by CONTRACTOR of such notice.
26 Prrnncinnc Cumulative
The provisions of this AGREEMENT are cumulative and in addition to, and not in limitation
of, any other rights or remedies available to DISTRICT
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27 Nntirec
It shall be the duty and responsibility of CONTRACTOR to notify subcontractors and
materialmen of the following special notice provision; namely all notices of intention to lien or stop
notices shall be either personally delivered or transmitted by certified mail; but in either event said
notices shall be directed to the DISTRICT
All notices shall be in writing and delivered in person or transmitted by certified mail, postage
prepaid.
Notices required to be given to DISTRICT shall be addressed as follows;
COSTA MESA SANITARY DISTRICT
77 Fair Drive
Costa Mesa, California 92626
Notices required to be given to CONTRACTOR shall be addressed as follows:
ATLAS ALLIED, INC.
1210 North Las Brisas
Anaheim, California 92806
Notices required to be given to CONTRACTOR's sureties shall be addressed as follows:
FTDELTY AND DEPOSIT COMPANY OF MARYLAND
Post Office Box 1227
Baltimore,Maryland 21203-1227
28 Suhrnntrartino
CONTRACTOR acknowledges that he is aware of the provision of the 'Subletting and
Subcontracting Fair Practices Act' and that he agrees to comply with all applicable provisions thereof.
If any part of the work to be done under this Contract is subcontracted, the subcontract shall be in
writing and shall provide that all work to be performed thereunder shall be performed in accordance
with this Contract. Upon request, certified copies of any or all subcontracts shall be furnished the
DISTRICT The subcontracting of any or all of the work to be done will in no way relieve the
CONTRACTOR of any part of his responsibility under the Contract.
Breach of any of the above provisions will be considered a violation of the Contract, and the
DISTRICT may cancel the Contract, assess the CONTRACTOR a penalty of not more than 10
percent(10%) of the subcontract involved, or cancel the Contract and assess the penalty
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All persons engaged in the work, including subcontractors, will be considered employees of the
CONTRACTOR. CONTRACTOR will be held responsible for their work. The DISTRICT will deal
directly with and make all payments to the CONTRACTOR.
29 C'ontractor's Affidavit
After the completion of the work contemplated by this Contract, CONTRACTOR shall file
with the DISTRICT's Manager/Engineer his affidavit stating that all workmen and persons employed
and all fines supplying materials, and all subcontractors upon the project have been paid in full, and that
there are no claims outstanding against the project for either labor or matenal, except certain items, if
any to be set forth in an affidavit covering disputed claims, or items in connections with Notice to
Withhold, which have been filed under the provisions of the statutes of the State of California.
30 Contractor's Waiver
The acceptance of CONTRACTOR of the final payment shall constitute a waive[ of all claims
against DISTRICT under or arising out of the Contract unless the disputed amounts are specifically set
forth in the affidavit and release.
31 Notice to Proceed
No work, services, matenal or equipment shall be performed or furnished under this Contract
unless and until a notice to proceed has been given to the CONTRACTOR by DISTRICT's
Manager/Engineer and all bonds and certificates of insurance required pursuant hereto have been
famished to and approved by DISTRICT
32. I Itility T oration
DISTRICT acknowledges its responsibilities with respect to the location of utility facilities
pursuant to California Government Code Section 4215
33 Di sea initiation
CONTRACTOR represents that it has not, and agrees that it will not, discriminate in its
employment practices on the basis of race, creed, religion, national origin, color, sex, age, or disability
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34 Governing I aw
This Contract and any dispute arising hereunder shall be governed by the law of the State of
California.
35 integral-inn
The parties agree that this document represents their entire agreement and that this
AGREEMENT may not be subsequently modified unless said modification is made in writing and is
signed by both parties.
36 Changes
DISTRICT may by wntten change notice, make changes in the work, changes in or addition
to the specification, require additional work or services or direct the omission of work or services
covered by this AGREEMENT if any such change or requirement causes any increase or decrease in
the CONTRACTOR's cost of performance of this AGREEMENT an equitable adjustment shall be
made and the AGREEMENT modified in writing accordingly No claim by CONTRACTOR for
adjustment under this paragraph shall be valid unless asserted in writing by CONTRACTOR within
thirty (30) days from the date of receipt of said wntten change notice signed by the DISTRICT's
Manager/Engineer or the President and Secretary of the Board of Directors, as appropriate.
CONTRACTOR shall make no additions, changes, alterations cr omissions except upon the written
change notice of the DISTRICT Manager/Engineer given before the work is to be done or before
services are rendered. The DISTRICT Manager/Engineer shall only have authonty to order changes
when the work is of a value less than 2% of the contract amount or TEN THOUSAND DOLLARS
($1 000 00)whichever is greater All other changes must be approved by the Board of Directors.
A. Extra Work Damages. Should CONTRACTOR encounter extra work due to the
discovery of unforeseen conditions that CONTRACTOR should not have anticipated
based in its own independent investigation, or due to changes in the project made by
DISTRICT CONTRACTOR shall immediately bring such condition to the attention
of the DISTRICT's Manager/ Engineer and shall submit a Request for Change Order
within thirty (30) days in the form set forth in the contract documents. All such
requests for extra compensation shall be subject to the approval of the Board of
Directors unless\Anthm the authority of the DISTRICT Manager/Engineer
B Limitation of Damages. CONTRACTOR shall be limited in the damages that it may
recover under this contract. CONTRACTOR shall be limited to extra days for delay
time and any direct costs related thereto, and to the direct costs of completing extra
work. 'Direct Costs' shall be those items defined in Section 3-3.2 2 Basis for
Establishing Costs, Standard Specifications for Public Works Constnictinn, 1997
15
f
edition. Excluded from direct costs shall be mark ups on matenals, equipment rentals
or other items or expenditures, so-called 'Eichleay damages' including, but not limited
to, home office overhead, lost bonding capacity lost profits, and lost interest.
37 Tndependent Contractor
CONTRACTOR acknowledges and agrees that he is an independent CONTRACTOR who
has been retained for the results of his work and not for the means by which it is accomplished. It is
specifically agreed that the DISTRICT does not have the right of control over the mode of doing the
work contracted for and that neither the CONTRACTOR, his employees, nor his consulting Engineers
are employees of the DISTRICT
38 Remediec
The remedies provided DISTRICT herein shall be cumulative, and in addition to any other
remedies provided by law or equity A waiver of a breach of any provision hereof shall not constitute a
waiver of any other breach.
39 Bnnkc and Recordc
CONTRACTOR's books, records and its plants or such part thereof as may be engaged in the
performance of this Contract, shall at all reasonable times be subject to observation and audit by any
authorized representative of DISTRICT
40 Notice to Dictrict of T ahnr Disputec
Whenever CONTRACTOR has knowledge that any actual or potential labor dispute is
delaying or threatens to delay the timely performance of this Contract, CONTRACTOR shall
immediately give notice thereof, including all relevant information with respect thereto, to DISTRICT
41 Ac Built Drawingc
CONTRACTOR shall provide DISTRICT's Engineer with drawings of the Construction in its
'as built condition.
16
42. Days and ITniirs of Work
Should the CONTRACTOR desire to perform construction work on Saturday Sunday or on
any day observed as a holiday by DISTRICT or prior to 8-00 a.m. or after 5-00 p.m of any day he
must submit his written request to DISTRICT's Manager/Engineer at least 24 hours pnor to the
proposed start of such work. No such work shall be commenced without the prior approval of the
DISTRICT's Manager/Engineer The DISTRICT observes those holidays specified by Government
Code Section 6700
The foregoing shall not apply in the case of an emergency necessitating immediate work
43 CONTRACTOR'S independent Investigation
No plea of ignorance of conditions that exist or that may hereafter exist, or of conditions or
difficulties that may be encountered in the execution of the work under this Agreement, as a result of
failure to make the necessary independent exanunations and investigations, and no plea of reliance on
initial investigations or reports prepared by DISTRICT for purpose of letting this Contract out to bid,
n-ill be accepted as an excuse for any failure or omission on the part of the CONTRACTOR to fulfill in
every detail all requirements of said Contract, specifications, and plans Nor will such reasons be
accepted as a basis for any claims whatsoever for extra compensation or for an extension of time.
44 Interpretation
In the event of any conflict, inconsistency or incongruity between the provision of this
Agreement and the provisions of Paragraph 2 hereof, or amendments thereto, the provisions of this
Agreement shall control in all respects.
45 Attorne :'S Fees
If any action at law or in equity is necessary to enforce or interpret the terms of this
AGREEMENT the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary
disbursements in addition to any other relief to which he may be entitled. If any action is brought
against the CONTRACTOR or any subcontractor to enforce a Stop Notice or Notice to Withhold,
which names the DISTRICT as a party to said action, DISTRICT shall be entitled to reasonable
attorney's fees, costs and necessary disbursements.
46 Additional Costs
CON 1RACTOR shall be responsible to reimburse the DISTRICT a sum equal to the expenses
17
of administration and legal sernces required to be expended by the DISTRICT in processing Notices
to Withhold, Stop Notices, or similar legal documents arising out of a failure of the CONTRACTOR
to pay for labor or matenals. Said obligation shall be provided for in the payment bond required by the
CONTRACTOR. The DISTRICT shall further have the right to offset any such costs and expenses
incurred by DISTRICT against any sums owing to CONTRACTOR under the AGREEMENT
47 Assignment
No assignment by the CONTRACTOR of this Contract or any part hereof or of funds to be
received hereunder will be recognized by the DISTRICT unless such assignment has had pnor written
approval and consent of the DISTRICT and the surety
48 Safety and Site Condition
CONTRACTOR shall perform all operations with due regard for safety and in stnct
compliance with all applicable laws relating thereto. It shall be CONTRACTOR's responsibility to
keep the site in a clean, neat and orderly condition. It shall also be CONTRACTOR'§ duty to dust-
palliate all working areas and access routes, if applicable All operations shall be conducted by
CONTRACTOR so that no fire hazards are created.
49 Observation
Services shall be furnished by the DISTRICT on an eight (8) hour day and forty (40) hour
week basis. Any additional observation that is required in excess of the foregoing shall be paid for by
the CONTRACTOR at special hourly rates to be determined by DISTRICT
50 Workmanship and Materials
Unless othenvise specifically provided for in the specifications, all workmanship, equipment,
materials and articles incorporated in the work covered by this Contract are to be new and of the most
suitable grade of their respective kinds for the purpose intended. Where equipment, materials or
articles are referred to in the specification as equal to any particular standard, DISTRICT shall decide
the question of equality In the manner, and to the extent required by the specifications,
CONTRACTOR shall furnish DISTRICT for approval full information concerning the equipment,
matenals or articles which he contemplates incorporating in the work. Samples of material shall be
submitted for approval when required for specification. ht addition to furnishing a list of
subcontractors, and prior to commencing the work covered by this Contract, CONTRACTOR shall
furnish DISTRICT a list of the equipment, materials, or articles CONTRACTOR proposes to use in
the performance of this Contract. Substitutions of equipment, materials or articles shall not be done
lR
unless approved by the DISTRICT's Manager/Engineer
51 Warranty
Unless otherwise agreed to in writing by the parties, CONTRACTOR warrants that the work
shall be performed in the best and most workmanlike manner by qualified, careful and efficient
workers, in strict conformty with the best standard practices; shall be free from defect in workmanship
and material; and shall conform with all provisions of this Contract, including, but not limited to, all
specifications included in this Contract. The provisions of this warranty together with any applicable
warranties and guarantees of CONTRACTOR's subcontractors and suppliers shall survive observation,
test and acceptance of any payment for the work performed hereunder and shall run to the DISTRICT
its successors and assigns Except for latent defects, fraud or such gross mistakes of CONTRACTOR
as amount to fraud. notice of any defect or non-conformity may be given by DISTRICT to
CONTRACTOR at any time prior to the expiration of ONE YEAR after the recording of the Notice
of Completion by DISTRICT of such work. CONTRACTOR shall promptly perform all work
required to correct such defects or non-conformities by replacement or repair, as DISTRICT may
direct. all at CONTRACTOR s sole cost and expense. All defective or non-conforming matenal which
DISTRICT requires to be replaced shall be removed promptly from the site of the work by
CONTRACTOR at its sole expense. If CONTRACTOR fails promptly to correct any non-conformity
DISTRICT may do so and charge the cost thereof to CONTRACTOR. Work required to be
corrected or replaced shall be subject to the provisions of this paragraph in the same manner and to the
same extent as when such work was initially presented for final acceptance. DISTRICT'S right to
require CONTRACTOR to repair or replace any defective or non-conforming work shall be in addition
to any other rights DISTRICT may have for breach of warranty and shall not be considered as an
exclusive remedy If the DISTRICT prefers to accept defective or non-conforming work, it may do so
instead of requiring its removal or correction, in which case a Change Order will be issued to reflect a
reduction in the Contract Sum where appropriate and equitable Such adjustment shall be effected
whether or not final payment had been made.
52. Remonal Nnhfiratinn Centers
CON 1 RACTOR agrees to contact the appropriate regional notification center in accordance
with Government Code Section 4216 before commencing any excavation.
53 Trench Prntecnnn
CONTRACTOR shall submit its detailed plan for worker protection during the excavation of
trenches required by the scope of the work in accordance with Labor Code Section 6705
19
Ar
54 Trenching Conditions
If this contract involves digging trenches or other excavations that extend deeper than four feet
below the surface, CONTRACTOR shall promptly and before the following conditions are disturbed,
notify the DISTRICT in writing, of any
(A) Material that the CONTRACTOR believes may be matenal that is hazardous waste, as
defined in Section 25117 of the Health and Safety Code, that is required to be removed
to a Class I, or Class II disposal site in accordance with provisions of existing law
(B) Subsurface or latent physical conditions at the site diffenng from those indicated
(C) Unknown physical conditions at the site of any unusual nature, different materially from
those ordinarily encountered and generally recognized as inherent in work of the
character provided for in the contract
(D) The DISTRICT shall promptly investigate the conditions, and if it finds that the
conditions do materially so differ or do involve hazardous waste, and cause a decrease
or increase in the CONTRACTOR's cost of, or the time required for, performance of
any part of the work shall issue a change order the procedures described in the
contract.
(E) In the event that a dispute arises between the DISTRICT and the CONTRACTOR
whether the conditions materially differ or involve hazardous waste, or cause a
decrease or Increase in the CONTRACTOR's cost of, or time required for
performance of an part of the work, the CONTRACTOR shall not be excused from
any scheduled completion date provided for by the contract, but shall proceed with all
work to be performed under the contract. The CONTRACTOR shall retain any and all
nghts provided either by contract or by law which pertain to the resolution of disputes
and protests between the contracting parties.
20
}
Dated thus day of 2002 COSTA nLESA SANITARI DISTRICT
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President i
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APPROVED AS TO FORM.
By
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General Counsel
APPROVED AS TO CON 1 ENT
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Di t ct Manager/Engineer
CONTRACTOR
Contractor ATLAS ALLIED INC
By el -
Eva Siciliani
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(MUST BE NOTARIZED)
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
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r4� On May 28, 2002 before me, Nile R. Sensabaugh - Notary Public
DATE NAME,TITLE OF OFFICER E G JANE DOE,NOTARY PUBLIC" ``
personally appeared Eva Siciliani Secreatry/Treasurer
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i Title or Type of Document Agreement - Project No 161 01
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Ir' Era Sicilians Alan Bums, Rob Hamers
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