Contract - J.H. Rentals - 1994-10-13 PROJECT NAME NO 1112100-136
A G R E E M E N T
THIS AGREEMENT is made and entered into by and between the COSTA MESA SANI-
TARY DISTRICT a district formed pursuant to the Sanitary District Act of 1923
hereinafter called 'DISTRICT' and JH RENTALS INC
hereinafter called 'CONTRACIOR'
R E C I T A L S.
DISTRICT has taken appropriate proceedings to authorize construction of the
public work and improvements herein provided and execution of this contract
On October 13 1994 after notice duly given, the DISTRICT BOARD
awarded the contract for the construction of improvements hereinafter described to
CONTRACTOR, which CONTRACTOR said BOARD found to be the lowest responsible bidder
for construction of said improvements
TERMS
The parties hereto agree as folows
1 SCOPE OF WORK
CONTRACTOR shall perform the work described briefly as follows
—- _ Access road along Newport Beach Golf Course
The aforesaid improvements are further described in the 'Contract Documents
hereinafter referred to
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2 CONTRACT DOCUMENTS
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 Faithful Performance
Bond Labor and Material Bond and Guarantee Bond Insurance Documents and all
addenda setting forth any modifications or interpretations of said documents
All rights and obligations of DISTRICT and CONTRACTOR are fully set forth
and described in the Contract Documents
The terms of this Agreement shall prevail over all written specifications
except as provided for in any 'Addendum' attached hereto
All of the above named documents are intended to cooperate 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 accorance with the schedule approved by
DISTRICT ENGINEER and under his direction
4 EQUIPMENT - PERFORMANCE OF WORK
CONTRACTOR shall furnish all tools equipment apparatus facilities
labor and materials necessary to perform and complete in a good and workmanlike
manner the work of general construction as called for and in the manner designated
in, and in strict conformity with the plans and specifications for said work which
said specifications are entitled.
The equipment apparatus facilities labor and material shall be fur-
nished and said work performed and colleted as required in said plans and specifi-
cations to the satisfaction of and subject to the acceptance of the DISTRICT
ENGINEER or his designated assistant
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5 CONTRACT PRICE
The contract price shall be Forty-one Thousand Nine Hundred Fifty
($41 950 00) Dollars
($ 41 950 00 ) with adjustments up or down in accordance with bid unit
prices finally calculated by CONTRACTOR and DISTRICT
6 TIME OF PERFORMANCE
The time fixed for the commencement of such work is within ten
( 10 ) days after the date of the contract and to -complete said work within
thirty ( 30 ) working days from the first day of
commencement of such work.
7 TIME OF PERFORMANCE - EXTENSION
If such work be not completed within such time the DISTRICT BOARD or its
designee shall have the right 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 right 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 during 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 applica-
tion shall be made pursuant to the requirements of Sections 20104 through 20104 8
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
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8 OPTION OF DISTRICT TO TERMINATE AGREEMENT IN EVENT OF FAILURE TO COMPLETE
WORK
If CONTRACTOR shall have refused or failed to prosecute the work or any
severable part thereof with such diligence as will insure its completion within
the time specified, or any extensions thereof or shall have failed to complete
said work within such time or if CONTRACTOR should be adjudged a bankrupt or if
CONTRACTOR should make a general assignment for the benefit of CONTRACTOR S credi-
tors or if a receiver should be appointed in the event of CONTRACTOR s insolvency
or if CONTRACTOR; or any subcontractor should violate any of the provisions of
this Agreement the DISTRICT MANAGER/ENGINEER or the DISTRICT BOARD may give writ-
ten notice to CONTRACTOR and CONTRACTOR S sureties of the intention to terminate
this Agreement and unless within five (5) days after the serving of such notice
such violation shall cease and satisfactory arrangements for the correction thereof
be made this Agreement may at the option of DISTRICT upon the expiration of said
time cease and terminate
9 LIQUIDATED DAMAGES
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 authorized
by Paragraph 8 of this Agreement deduct from payments or credits due CONTRACTOR
after such breach a sum equal to Two Hundred Fifty ($250 00) Dollars as liquidated
damages for each day beyond the date herein provided for the cu pletion 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 sure-
ties and the sureties shall have the right take over and perform the Agreement
provided however that if the sureties within five (5) days after giving then
said notice of termination do not give DISTRICT written notice of their intention
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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 DIS-
TRICT may take over the work and prosecute the same to completion by contract or
by any other method it may dean 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 materials appliances, plant and other property belonging to CONTRACTOR as
may be on the site of the work and necessary therefor
11 DISPUTES 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 8
Public Contracts Code as the same is now in force and as the same may be amended
from time to time.
12 PERMITS - COMPLIANCE WITH LAW
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 SUPERINTENDENCE BY CONTRACTOR
CONTRACTOR shall give personal superintendence to the work on said im-
provement or have a competent foreman or superintendent satisfactory to the DIS-
TRICT ENGINEER on the work at all times during progress with authority to act for
him.
14 INSPECTION BY DISTRICT
CONTRACTOR shall at all times maintain proper facilities and provide safe
access for inspection by DISTRICT to all parts of the work and to the shops wherein
the work is in preparation
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15 EXTRA AND/OR ADDITIONAL WORK OR CHANGES
Should DISTRICT at any time during the progress of said work request any
alteratons deviations additions or anissions 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 price as the case may be by a fair and reasonable valua-
tion. Request for such change must be made in writing signed by the DISTRICT
ENGINEER, shall be accanpanied by plans and specifications for such purpose and
shall be accepted in writing by CONTRACTOR.
16 INSPECTION AND TESTING OF 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 inspection and
testing of same.
Any materials shipped by CONTRACTOR from factory prior to having satis-
factorily passed such testing and inspection by DISTRICT'S representative shall not
be used on said improvement unless CONTRACTOR is previously notified by DISTRICT
that such testing and inspection will not be required
CONTRACTOR shall also furnish DISTRICT in triplicate certified copies
of all required factory and mill test reports
17 PERMITS AND CARE OF THE WORK
CONTRACTOR has examined the site of the work and is familiar with its
topography and condition location of property liens 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 awned 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 inspection and acceptance
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18 OTHER CONTRACTS
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. CONTRACIOR shall not commit or permit any act which will inter-
fere 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 perfor-
mance of the work CONTRACTOR shall submit to DISTRICT MANAGER/ENGINEER an itemized
statement of quantities with unit prices of materials incorporated into the im-
provement during the preceding month, or if the contract price is a lump sum, an
estimate of the percentage of the total work incorporated into the improvement
during 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 OFFICER 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 (95%) percent of the amount invoiced the
remaining five (5%) percent to be subject to the provisions of 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
MANANGER/ENGINEER.
(B) DISTRICT reserves the right to retain five (5%) percent of the contract
price 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
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(a) To substitute securities for any money retained by DISTRICT•
(b) 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 CONTRACT SECURITY
Concurrently with the execution hereof CONTRACTOR shall furnish. (1) a
surety bond in an amount equal to one hundred (100%) percent of the contract price
as security for the Faithful Performance of this Contract (2) a separate surety
bond in an amount equal to at least one hundred (100%) percent of the contract
price as security for payment of all persons performing labor and furnishing mate-
rials in conneLLion with this Contract, and (3) in addition to the 'Faithul Perfor-
mance Bond and the 'Labor and Material Bond' CONTRACTOR shall also furnish to
DISTRICT a 'Guarantee Bond in the amount of Ten Thousand ($10 000) Dollars or ten
(10%) percent of the contract price whichever is greater as security for this
guarantee to be retained by DISTRICT for a period of one (1) year after the date
of written acceptance by DISTRICT of all work performed under this Contract.
Sureties in each of said bonds and the form thereof shall be satisfactory to DIS-
TRICT
The bonds required hereunder shall be provided by a domestic carrier
authorized to and doing busines in the State of California and rated A+ by Best
Key Rating Guide--Property--Casualty and admitted for coverage in the State of
California Insurance Guarantee Fund.
21 INDEMNIFICATION
CONTRACTOR hereby agrees to protect defend indemnify and hold DISTRICT
its elecive board officers agents and employees harmless from and against any and
all attorneys fees costs expenses or damages of any nature by reason of injury
sustained br any person including death at any time resulting therefrom, or by
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reason of loss of, loss of use of injury to or destruction of property including
consequential damages of any nature resulting therefrom, arising out of performance
of this Contract by or on behalf of CONTRACTOR, including damages occasioned by or
allegedly occasioned by joint or contributory negligence or omission or affirmative
acts in conneL.tion with supervision or direction of the work by DISTRICT its
elective or appointed board officers agents or employees
The provisions of the foregoing paragraph shall in no event apply to
damages occasioned by the sole negligence of DISTRICT, its elective board, officers,
agents or employees
CONTRACTOR further agrees to protect defend indemnify and hold DISTRICT
free and harmless from and against any and all obligations and liabilities under
any statutes laws or regulations pertaining to provisions of a safe place for
the employment of workers (Safe Place Statutes) or any similar statutes laws or
regulations with respect to injury sustained including death at any time resulting
therefrom, by any employee of CONTRACTOR, CONTRACTOR S subcontractors or others
performing under this Contract on behalf of CONTRACTOR.
DISTRICT does not and shall not, waive any rights against CONTRACTOR
which it may have by reason of the aforesaid hold harmless agreements because of
the acceptance by DISTRICT or the deposit with DISTRICT by CONTRACTOR of any of the
insurance policies hereinafter described in Paragraph 22 hereof
The aforesaid hold harmless agreements by CONTRACTOR shall apply to all
damages and claims for damages of every kind suffered or alleged to have been
suffered including but not limited to attorneys fees by reason of the aforesaid
operations of CONTRACTOR or any subcontractor or others performing on behalf of
CONTRACTOR, regardless of whether or not such insurance policies shall have teen
determined to be applicable to any of such damages or claims for damages
22 INSURANCE
CONTRACTOR shall not commence work under this Contract until he shall
have obtained all insurance required under this section and such insurance shall
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have been approved by DISTRICT as to form, amount and carrier nor shall CONTRACTOR
allow any subcontractor to commence work on his subcontract until all similar
insurance required of the subcontractor shall have been so obtained and approved.
Failure of CCNTRACTOR to supply and failure of DISTRICT to secure and/or
approve specified insurance shall not alter or invalidate the provisions of Section
21 of this Contract.
A. Workers' Compensation Insurance
CONTRACTOR shall take out and maintain during the life of this Con-
tract workers compensation insurance and if any work is sublet, CONTRACTOR shall
require subcontractor similarly to provide workers' compensation insurance. CON-
TRACTOR agrees to indemnify DISTRICT for any damage resulting to it from failure of
either CONTRACTOR or. any subcontractor to take out or maintain such insurance
B. Public Liability and Property Damage Insurance
CONTRACTOR shall take out and maintain during the life of this Con-
tract such public liability and property damage insurance as shall protect DISTRICT
its elective and appointive board officers agents and employees CONTRACTOR and
any subcontractors performing work covered by this Contract from claims for damages
for personal injury including death as well as from claims for property damage
which may arise from CONTRACTOR S or any subcontractor's operations under this
Contract, whether such operations be by CONTRACTOR or by any subcontractor or by
anyone directly or indirectly employed by either CONTRACTOR or any subcontractor
and the amount of such insurance shall be as follows
(1) Public Liability and Property Damage Insurance on account of
bodily injuries including death resulting therefrom in the sum of not less than
Five Million ($5 000 000) Dollars combined single limit resulting from any one
accident which may arise from the operations of CONTRACTOR in performing the work
provided for herein.
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(2) Said Public Liability and Property Damage Insurance (including
autanobiles)shall be endorsed to name the COSTA MESA SANITARY DISTRICT its elec-
tive board officers agents and employees as additional insureds with respect to
all operations performed by or on behalf of CONTRACTOR. Said policy shall be
endorsed to provide that coverage shall not be reduced or cancelled unless and
until thirty (30) days advance notice of such reduction and/or cancellation has
been mailed to DISTRICT
(3) Said Public Liability and Property Damage Insurance (including
automobiles) shall include contractual liability insurance applying to liability
assumed under this Contract
(4) Said Public Liability and Property Damage Insurance shall be
endorsed to stipulate that such insurance as is afforded to the COSTA MESA SANITARY
DISTRICT its elective board officers agents and employees shall be primary
insurance and not contributing with any other insurance maintained by DISTRICT
23 PROOF OF INSURANCE
CONTRACTOR shall furnish DISTRICT through the DISTRICT MANAGER/ENGINEER,
concurrently with the execution hereof with satisfactory proof of carriage of the
insurance required and adequate legal assurance that each carrier will give DIS-
TRICT at least thirty (30) days prior notice of the cancellation of any policy
during the effective period of this Contract
The insurance required to be provided herein shall be provided by a
domestic carrier authorized to, and doing business in the State of California and
rated A+ by Best Key Rating Guide--Property--Casualty and admitted for coverage in
the State of California Insurance Guarantee Fund
24 LEGAL 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 performance of such work CONTRACTOR shall forfeit as a
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penalty to DISTRICT the sum of One Hundred ($100 00) Dollars for each laborer
workman or mechanic employed in the execution of this Contract by CONTRACTOR, or by
any s,trontractor 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 J. Inr Code of the State of
California
25 PREVAILING WAGE 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
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 Cade SeLLions
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.
26 EMERGENCY - ADDITIONAL TIME FOR PERFORMANCE - PROCURFMENT 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 materials or both and if solely because of said restrictions regula-
tions 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
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To qualify for such extension of time CONTRACTOR within three
(3) days of CONTRACTOR s discovering such inability to perform, shall notify DIS-
TRICT MANAGER/EE?GINEER 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/ENGINEER and the concurrence
of the DISTRICT BOARD shall not be necessary All reasonable expenses of such
procurement incurred by the DISTRICT MANAGER/ENGINEER shall be defrayed by CON-
TRACTOR, or
B If such necessary materials 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 (10%) percent basis whichever is the lesser Materials on the yiound in
process of fabrication or en route upon the date of notice of termination specially
ordered for the projeLt and which cannot be utilized by CONTRACTOR, shall be can-
pensated 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 cancelled and the inability of CONTRACTOR to
perform continues without fault on CONTRACTOR 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 ma without insurring any
liability elect to declare this Agreement terminated upon the ground of impossi-
bility of performance In the event DISTRICT declares this Agreement terminated
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such declaration shall be authorized by the DISTRICT WARD by resolution and
CONTRACTOR shall be notified in writing thereof within five (5) days after the
adoption of such resolution Upon such termination CONTRACTOR shall be entitled
to proportionate ccupensation at the agreement rate for such portion of the Agree-
ment as may have been performed or
D DISTRICT may terminate this Agreement 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
authorized by resolution of the DISTRICT BORAD Notice thereof shall be forthwith
given in writing to _CONTRACTOR and this Agreement shall be terminated upon receipt
by CONTRACTOR of such notice
27 PROVISIONS CUMULATIVE
The provisions of this Agreement are emulative and in addition to, and
not in limitation of any other rights or remedies available to DISTRICT
28 NOTICFS
It shall be the duty and responsibilit, of CONTRACTOR to notify subcon-
tractors and materialnen 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 Trail but in either event said notices shall be di-
rected to the DISTRICT
All notices shall be in writing and delivered in person or transmitted by
certified Email 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
JH RENTALS INC
2641 E Denise Ave
Orange California 92667
Notices required to be given to CYN"IRACIOR S sureties shall be addressed
as follows
Dated this day of 06Ser '-' 1994
COSTA MESA SANITARY DISTRICT
., )k \
ATTEST �� i\ L-n 01
By
Rcre -
APPROVED AS TO FORM.
Atto ey for DISTRICT
APPROVED AS TO CONTENT-
By T Engineer
DIS Engineer
CONSTRACTOR. JH RENTALS INC
By ra- I / Ate i '
thorized Agent
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