Project 130 - Contract - Irvine Pipeline - 1993-08-19 PROJECT NAME PROJECT NO 1112100-130
RECONSTRUCTING FORCE MAIN FOR ELDEN PUMP STATION PHASE I
A G R E E M E N T
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 called DISTRICT
and IRVINE PIPELINE CO INC , hereinafter called "CONTRACTOR
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 August 19 1993 , 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 construc-
tion of said improvements
T E R M S
The parties hereto agree as follows
1 SCOPE OF WORK
CONTRACTOR shall perform the work described briefly
as follows
PROJECT NO 1112100-130 RECONSTRUCTING FORCE MAIN FOR
ELDEN PUMP STATION PHASE I
( 9/83 )
The aforesaid improvements are further described in
the Contract Documents hereinafter referred to
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 con-
tract will hereinafter be referred to as the Contract Documents
3 SCHEDULE
All work shall be performed in accordance 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
-2-
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 Reconstructing Force
Main for Elden Pump Station Phase I
The equipment apparatus facilities labor and
material 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 ENGINEER or his
designated assistant
5 CONTRACT PRICE One Hundred Thirty-one Thousand Six Hundred
Twenty-five ($131 625 00) Dollars
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 twenty-one ( 21 ) working days
from the first day of commencement of such work
7 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
-3-
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 addressed to the DISTRICT BOARD and its desig-
nee In this connection it is understood that the DISTRICT MANAGER
shall not transmit any such request to the DISTRICT BOARD if not
filed within the time herein prescribed
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
creditors, or if a receiver should be appointed in the event of
CONTRACTOR S insolvency, of if CONTRACTOR, or any subcontractor
should violate any of the provisions of this Agreement , the DISTRICT
ENGINEER or the DISTRICT BOARD may give written notice to CONTRACTOR
and CONTRACTOR S sureties of the intention to terminate this Agree-
ment 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
-4-
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 $100 00 as liquidated damages for
each day beyond the date herein provided for the completion of
such work
10 PERFORMANCE OF SURETIES
In the event of any termination as hereinabove pro-
vided , 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
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 CON-
TRACTOR 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
-5-
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 1670, California
Civil Code
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 improvement or have a competent foreman or super-
intendent satisfactory to the DISTRICT 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 facili-
ties and provide safe access for inspection 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 alterations , deviations additions or omis-
sions 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
-6-
the amount of said contract price , as the case may be , by a fair
and reasonable valuation Request for such change must be made in
writing signed by the DISTRICT ENGINEER shall be accompanied 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 satisfactorily 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
lines , easements , building lines and other physical factors and
limitations affecting the performance of this Agreement CONTRAC-
TOR, 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 inspection and acceptance
-7-
18 OTHER CONTRACTS
DISTRICT may award other contracts for additional
work and CONTRACTOR shall fully cooperate with such other con-
tractors and carefully fit CONTRACTOR'S own work to that provided
under other contracts as may be directed by DISTRICT 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
On or before the 25th day of each and every month dur-
ing the performance of the work, CONTRACTOR shall submit to DISTRICT
ENGINEER an itemized statement of quantities with unit prices of
materials incorporated into the improvement 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 dur-
ing the preceding month and the portion of the contract sum applic-
able thereto On approval in writing of said statement by DISTRICT
ENGINEER it shall be submitted to the DISTRICT FINANCE OFFICER and
then to the DISTRICT BOARD It is understood and agreed between
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
Within three ( 3 ) days following said submission to
the DISTRICT BOARD DISTRICT shall forward said approved warrants
to the County Auditor for approval and the processing of payment
to CONTRACTOR Said payment shall be based upon ninety-five per-
cent ( 95% ) of the contract price for labor, material and equipment
-8-
used or incorporated into the project during the period covered by
CONTRACTOR 'S invoice Deposit in the United States mail consti-
tutes legal payment of said sum The remaining five percent ( 5% )
thereof shall be paid to CONTRACTOR thirty-five ( 35 ) days after
final acceptance of the work by DISTRICT on duly certified voucher
therefor and after CONTRACTOR shall have furnished DISTRICT with
a release of , or bond against all claims against DISTRICT, if
required by DISTRICT, arising under and by virtue of this contract
and work done and materials furnished hereunder In the event
that there are any claims specifically excepted by CONTRACTOR, if
permitted by DISTRICT from the operation of the release there shall
be retained by DISTRICT stated amounts to be set forth therein ,
and approved by DISTRICT Engineer
20 CONTRACT SECURITY
Concurrently with the execution hereof , CONTRACTOR
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 ( 2 ) a separate surety bond in an
amount equal to at least one hundred percent ( 100% ) of the contract
price as security for the payment of all persons performing labor
and furnishing materials in connection with this contract and
( 3 ) in addition to the Faithful Performance Bond and the Labor
and Material Bond CONTRACTOR shall also furnish to DISTRICT a
"Guarantee Bond in the amount of Ten Thousand Dollars ( $10 , 000 )
or ten percent ( 10% ) 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
-9-
in each of said bonds and the form thereof shall be satisfactory to
DISTRICT
21 INDEMNIFICATION
CONTRACTOR hereby agrees to protect, defend indemnify
and hold DISTRICT its elective board , officers , agents and employees
harmless from and against any and all attorneys ' fees, costs, ex-
penses or damages of any nature, by reason of injury sustained by
any person, including death at any time resulting therefrom or by
reason of loss of, loss of use of , injury to or destruction of prop-
erty including consequential damages of any nature resulting there-
from, 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 connection 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 indem-
nify and hold DISTRICT free and harmless from and against any and
all obligations and liabilities under any statutes , laws or regula-
tions 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, CON-
TRACTOR'S subcontractors, or others performing under this contract
on behalf of CONTRACTOR
-10-
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 been determined to be applicable to any of such damages
or claims for damages
22 INSURANCE
CONTRACTOR shall not commence work under this con-
tract until he shall have obtained all insurance required under this
section and such insurance shall have been approved by DISTRICT as
to form, amount and carrier, nor shall CONTRACTOR allow any subcon-
tractor to commence work on his subcontract until all similar
insurance required of the subcontractor shall have been so obtained
and approved
Failure of CONTRACTOR 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 contract workers' compensation insurance and , if
-11-
any work is sublet CONTRACTOR shall require subcontractor similarly
to provide workers compensation insurance CONTRACTOR 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
Said workers compensation insurance shall name
the COSTA MESA SANITARY DISTRICT as an additional insured with
respect to operations conducted by CONTRACTOR on behalf of DISTRICT
Said workers ' compensation insurance shall provide that the insur-
ance may not be cancelled without ten ( 10 ) days advance notice of
such cancellation to DISTRICT
B Public Liability and Property Damage Insurance
CONTRACTOR shall take out and maintain during the
life of this contract such public liability and property damage
insurance as shall protect DISTRICT , its elective and appointive
board officers , agents and employees, CONTRACTOR and any subcon-
tractors 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 subcon-
tractor ' 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 Insur-
ance on account of bodily injuries including death resulting there-
from in the sum of not less than Five Million Dollars ( $5 000 000 00 )
combined single limit resulting from any one accident which may
-12-
arise from the operations of the CONTRACTOR in performing the work
provided for herein
( 2 ) Said Public Liability and Property Damage
Insurance ( including automobile ) shall be endorsed to name the
COSTA MESA SANITARY DISTRICT, its elective 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 ten ( 10 ) days advance notice of such reduction
and/or cancellation has been mailed to the DISTRICT
( 3 ) Said Public Liability and Property Damage
Insurance ( including automobiles ) shall include contractual liabil-
ity 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 the DISTRICT
23 PROOF OF INSURANCE
CONTRACTOR shall furnish DISTRICT, through the DIS-
TRICT ENGINEER, concurrently with the execution hereof with satis-
factory proof of carriage of the insurance required and adequate
legal assurance that each carrier will give DISTRICT at least ten
( 10 ) days prior notice of the cancellation of any policy during
the effective period of this contract
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 )
-13-
hours labor in a day from any person employed by CONTRACTOR in the
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 in violation of the provisions
of Section 1815 of the Labor 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 pre-
vailing 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 Code Sections 1770 et seq if
applicable
Each contractor engaged in the construction, prosecu-
tion 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 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 -
PROCUREMENT OF MATERIALS
If because of war or other declared national emer-
gency the Federal or State government restricts regulates or
-14-
controls the procurement and allocation of labor or materials, 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 Agree-
ment 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 Engineer in writing thereof and give
specific reasons therefor DISTRICT 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 provi-
sions of this Agreement Substituted materials, or changes in the
work , or both , shall be ordered in writing by DISTRICT ENGINEER,
and the concurrence of the BOARD shall not be necessary All
reasonable expenses of such procurement incurred by the DISTRICT
ENGINEER shall be defrayed by CONTRACTOR 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 percent ( 10% ) basis whichever is the lesser
-15-
Materials on the ground in process of fabrication or en route
upon the date of notice of termination specially ordered for the
project and which cannot be utilized by CONTRACTOR, shall be com-
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 con-
tinues without fault on CONTRACTOR'S part, beyond the time during
which the agreement may have been suspended , as hereinabove pro-
vided 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 per-
formance In the event DISTRICT declares this Agreement terminated
such declaration shall be authorized by the DISTRICT BOARD, by reso-
lution, 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 compen-
sation at the agreement rate for such portion of the Agreement 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 BOARD Notice thereof shall be forthwith given in writing
-16-
to CONTRACTOR and this Agreement shall be terminated upon receipt
by CONTRACTOR of such notice
27 PROVISIONS 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
28 NOTICES
It shall be the duty and responsibility of CONTRACTOR
to notify subcontractors and materialmen of the following special
noticeSprovision 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
only to the DISTRICT FINANCE OFFICER and to no other department
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
IRVINE PIPELINE CO INC
5959 Jasmine Street
Riverside California 92504
-17-
Notices required to be given to CONTRACTOR S sureties
shall be addressed as follows
Dated this 19th day of August , 19 93
COSTA MESA SANITARY DISTRICT
President
ATTEST
BY
Secretary
APPROVED AS TO FORM CONTRACTOR IRVINE PIPELINE CO INC
By By '��— sSw.sco
Attorn for District Au on ed gent .i« P2.s
APPROVED AS TO CONTENT
By
tract Engineer
-18-