Loading...
HomeMy WebLinkAboutCHANGE ORDER POLICY REVISIONS Augusta Richmond GA DOCUMENT NAME: 'h \G ee..~e\lte', C1'l,- DdU DOCUMENT TYPE: \X)\ \L'Y YEAR:Cf\ BOX NUMBER: '08 FILE NUMBER: 'l\l\loS NUMBER OF PAGES: \b - - , , Department of Pu ,.rlL~. ngineering PPFH;'\7el)- - . Jack F, Murphy, Director of Public Works J UN 1 5 1999 R om 701, 530 Greene Street Augusta, Georgia 30911 Clifford A, Goins, Interim Assistant Direct r(AUG\lSTA-RIGHMOND COtINT'(~~(~.t.!l1706 FAX (706) 821-1708 Public Works - Engmccnng DIVISion -, ~/"'/~1 Merr".I~ AGENDA ITEM NUMBER h~ TO: HONORABLE BOB YOUNG, MAYOR MEMBERS OF COMMISSION J. B. POWELL, CHAIRMAN, ENGINEERING SERVICES COMMITTEE RANDY OLIVER, ADMINISTRATOR FROM: DATE: CLIFFORD A. GOINS, INTERIM ASSISTANT DIRECTOR ENGINEERING SERVICES DIVISION ~. PUBLIC WORKS & ENGINEERING DEPARTMENT JUNE 1, 1999 JUNE 7, 1999 COMMITTEE MEETING SUBJECT: CHANGE ORDER POLICY REVISIONS FILE REFERENCE: 97-026 CAPTION: REVISE EXISTING CHANGE ORDER POLICY TO INCLUDE RECOMMENDATIONS AS OUTLINED BY ENGINEERING SERVICES COMMITTEE. BACKGROUND: The Engineering Services Committee recently reviewed the recommendations submitted by the Public Works and Engineering Department. The Committee made several comments and asked that the revisions be re-submitted for consideration. ANALYSIS: Listed below are the change order policy revisions for consideration: A)i(! -~ >- ~8 en 8~ en en ...- ~9J ...... !~ 0 z -.,. ::::> if!! ...., :!z i- ~I < 1. Include certain contingencies in construction contract documents to ensure pricing on additional items is competitive. For example, a contingency contract line item might include grade adjustments for underground utilities such as water mains if encountered. 2. Change Orders for consideration exceeding $10,000 would be submitted for approval by the Mayor and Commission prior to the work being performed. For exan1ple, field orders issued by the ENGINEER would not exceed the contract price by $10,000. Under no circumstances, other than an emergency, would field orders exceed contract price plus project contingency as established by the Capital Project Budget. .. . , .' AGENDA ITEM JUNE 1, 1999 PAGE TWO ANALYSIS: (CONTINUED) 3. Change Orders for consideration below $10,000 may be approved by the Administrator upon recommendation by the Department Director. The Administrator has the authorization to approve Change Orders administratively up to $10,000. This provision is recommended to eliminate untimely delays in the Change Order approval process. 4. No Change Order may be approved which exceeds Contract Price plus contingency as established by the Capital Project Budget without identification of funding resources. 5. No Change Order will be approved for unrelated work without the approval of the Mayor and Commission. FINANCIAL IMPACT: This agenda item does not contain a request for funding but includes recommendations for policy changes. AL TERNATIVES: Do not approve recommended policy changes in whole or in part. RECOMMENDATION: It is recommended that the existing Change Order Policy be revised as outlined in this Agenda Item. FUNDS ARE AVAILABLE IN THE FOLLOWING ACCOUNTS: COUNTY ~~ 12-~ QO ~ ADMINISTRATOR: FINANCE: (,/z../9' ~ cc: Jim Wall Geri Sams Kakoli Basu Max Hicks Teresa Smith Agenda File Main File CAG/cjv .. ' MAR 2 3 1999 AUGUS""-RICHMO~O = AOM\N\STAATOR S Department of Public Works and Engineering Jack F, Murphy, Director of Public Works 530 Greene Street Room 701 Augusta, Georgia 30901 (706) 821-1706 Fax (706) 821-1708 Clifford A. Goins, Interim Assistant Director Public Works - Engineering Division AGENDA ITEM NUMBER: jlf TO: HONORABLE BOB YOUNG, MAYOR MEMBERS OF COMMISSION J. B. POWELL, CHAIRMAN, ENGINEERING SERVICES COMMITTEE RANDY OLIVER, ADMINISTRATOR FROM: CLIFFORD A. GOINS, INTERIM ASSISTANT DIRECTOR ENGINEERING SERVICES DIVISION PUBLIC WORKS AND ENGINEERING DEPARTMENT ?:A4'. DATE: MARCH 22, 1999 MARCH 29,1999 COMMITTEE MEETING SUBJECT: CHANGE ORDER POLICY REVISIONS FILE REFERENCE: 97-026 CAPTION: REVISE EXISTING CHANGE ORDER POLICY TO INCLUDE RECOMMENDATIONS AS OUTLINED IN AGENDA ITEM. BACKGROUND: The Public Works and Engineering Department has completed a thorough review of the current Change Order policy relating to construction contracts. Listed below and in the accompanying attachments is our current Change Order Policy. Change Order by Definition: A document recommended by ENGINEER which is signed by CONTRACTOR and OWNER and authorizes an addition, deletion or revision in the Work, or an adjustment in the Contract Price or the Contract Time, issued on or after the Effective Date of the Agreement. Under the General Conditions of our current Contractual Standards, a Change Order is required if: 1. There is a change in the work. Article 10 (See Attachment 11 A") 2. There is a change in contract price. Article 11 (See Attachment "A") 3. There is a change in contract time. Article 12 (See Attachment 11 A") AGENDA ITEM MARCH 22, 1999 PAGE TWO Existing Augusta-Richmond County Code 1-10-82 also addresses Contract Modification or Change Orders. (See Attachment "B") ". . .A contract modification does not require Commission action if a contingency amount has been approved and the contract modification is within that amount and provided the Augusta-Richmond County Administrator has been contractually or otherwise specifically designated by the Commission for such purpose... II Currently the Administrators level of authorization for approval is $10,000.00. ANAL YSIS: The Engineering Services Committee has expressed some concern about the necessity of Change Orders being presented and the dollar amount of Change Orders being presented. To address these concerns we would offer several recommendations: 1. Include certain contingencies in construction contract documents to ensure pricing on additional items is competitive. For example, a contingency contract line item might include grade adjustments for underground utilities such as water mains if encountered. 2. Change Orders under consideration exceeding $20,000 would be submitted for approval by the Commission prior to the work being performed. For example, field orders issued by the ENGINEER would not exceed the contract price by $20,000. Under no circumstances, other than an emergency, would field orders exceed contract price plus project contingency as established by the Capital Project Budget. "4 fJ lJl) 3. Change Orders under consideration below $26,666 may be approved by the County Administrator upon recommendation by the Department Director. Currently the County Administrator has the authorization to approve Change Orders administratively up to $10,000. We recomm. end raising the limit to $20,000 to avoid .. _ _.I-; ~ _ 0 nl:li8ftfle8 CRaflge Orders eOll'ling to the COBlffii8si6fi. ~ i "'~ ~ ~~s ~ ~ CA.~ o~ Oo-?fW~ P('C!)~. 4. No Change Order may be approved which exceeds Contract Price plus contingency as established by the Capital Project Budget without identification of funding resources. 5. No ~~ Of'~ \.vy.." (" sU~ lA.J'UV \( ~ k~~ ~ ~ ba c..;>?r~ ~ ~ " ~"'o....i- ~ ~-:>~~ ~,'l.~~CMI. ~ ~ AGENDA ITEM MARCH 15, 1999 P AGE THREE FINANCIAL IMPACT: This agenda item does not contain a request for funding but includes recommendations for policy changes. AL TERNATIVES: Do not approve recommended policy changes in whole or in part. RECOMMENDATION: We recommend approval of existing Change Order Policy as outlined in the Agenda Item. DEPARTMEN~~ DIRECTOR: /' COUNTY . ADMINISTRATOR: ~ ~. ~ 'J/"l.:~ 1~ c; FUNDS ARE AVAILABLE IN THE FOL~/;ING ACCOUNTS: ~ FINANCE: cI. l,). h-tr 3/ ",j9'7 cc: Mr. Jim Wall Geri Sams Kakoli Basu Max Hicks Teresa Smith Agenda File Main File .' effective to assign to ENGINEER any duty or authority to supervise or direct the furnishing or performance of the Work or any duty or authority to undertake responsibility contrary to the provisions of paragraph 9.15 or 9.16. 9.15. ENGINEER will not be responsible for CON- TRACTOR's means. methods. techniques. sequences or pro- cedures of construction. or the safety precautions and pro- grams incident thereto. and ENGINEER will not be respon- sible for CONTRACTOR's failure to perform or furnish the Work in accordance with the Contract Documents. 9.16. ENGINEER will not be responsible for the acts or omissions of CONTRACTOR or of any Subcontractor. any Supplier. or of any other person or organization performing or furnishing any of the Work. ARTICLE IO-CHANGES IN THE WORK 10.1. Without invalidating the Agreement and without notice to any surety. OWNER may. at any time or from time to time. order additions. deletions or revisions in the Work: these will be authorized by a Written Amendment. a Change Order. or a Work Directive Change. Upon receipt of any such document. CONTRACTOR shall promptly proceed with the Work involved which will be performed under the applicable conditions of the Contract Documents (except as otherwise specifically provided), 10,2. If OWNER and CONTRACTOR are unable to agree as to the extent. if any. of an increase or decre::lse in the Contract Price or an extension or shortening of the Contract Time that should be allowed as a result of a Work Directive Change. a claim may be made therefor as provided in Article II or Article 12. 10.3. CONTRACTOR shall not be entitjed to an increase in the Contract Price or an extension of the Contract Time with respect to any Work performed that is not required by the Contract Documents as amended. modified and supple- mented as provided in paragraphs 3.4 and 3,5. except in the case of an emergency as provided in paragraph 6.22 and except in the C::lse of uncovering Work as provided in par::l- graph 13.9. lOA. OWN ER;lnd CONTRACTOR shall e,'<ecute appro- priate Change Orders (or Written Amendments) covering: ,iO....I. changes in the Work which are ordered by OWNER pursuant to paragraph /0.1. are required because of acceptam:e of Jeji!c{;I'e Work under paragr::lph 13, L~ or com:cting J.:fi!cril'e Work under paragraph I3.I~. or are agreed to by the parties: 10...:2. changes in the Contract Pri<.:e or Contract Time which are a~reed to by the parties: and 10.4.3. changes in the Contract Price or Contract Time which embody the substance of any written decision ren- dered by ENGINEER pursuant to paragraph 9.11: provided that. in lieu of executing any such Change Order. an appeal may be taken from any such decision in accordance with the provisions of the Contract Documents and applicable Laws and Regulations. but during any such appeal. CON- TRACTOR shall carryon the Work and adhere to the prog- ress schedule as provided in paragraph 6.29. 10.5. If notice of any change alTecting the general scope of the Work or the provisions of the Contract Documents (including. but not limited to. Contract Price or Contract Time) is required by the provisions of any Bond [0 be given to a surety. the giving of any such notice will be CONTRAC- TOR's responsibility. and the amount of each applicable Bond will be adjusted accordingly. ARTICLE 1 I-CHANGE OF CONTRACT PRICE II, I. The Contract Price constitutes the total compen- sation (subject to authorized adjustments) payable to CON- TRACTOR for performing the Work. All duties. responsibil- ities and obligations assigned to or undertaken by CON- TRACTOR shall be at his expense without change in che: Contract Price. 11.2. The Contract Price may only be changed by a Change 'order or by a Written Amendment. Any claim for an increase or decrease in the Contract Price shall be based on written notice delivered by the party making che claim to the other pal1y and to ENGINEER promptly (but in no event later than thirty days) after the occurrence of [he event giving rise to the claim and. stating che general nature of che claim. Notice of the amount of the claim with supporting data shall be delivered within sixty days after such occurrence (unless ENGINEER allows an additional period of cime to ascertain more accurate data in support of the cJaiml and shall be accompanied by claimant's written statement that the amount claimed covers all known amounts (direct. indirect and con- sequential) to which the claimant is entitled as a result of the occurrence of said event. All claims for adjustment in the Contract Price shall be determined by ENGINEER in accor- dance with paragraph 9, II if OWNER and CONTRACTOR cannot otherwise aeree on [he amount involved. No claim for an adjustment i~ the Contract Pric~ will be valid if not submitted in accordance with this paragraph 11.2. 11.3, The value of any Work covered by a Change Order or of anv claim for an increase or decrease in the Contract Price sh;1I be determined in one of the following ways: I J .3, I. Wherc: the Work involved is covered by unit prices containc:d in the Contract Documents. by applica- tion of unit prices to the quantities of the items involved (subject [0 the provisions of paragraphs 11.9.1. through 11.9,3. inclusive). 21 AHA,,' M~"'+ . II A . 11.3.2. By mutual acceptance of a lump sum (which may include an allowance for overhead and profit not necessarily in accordance with paragraph 11.6.2.1). 11.3.3. On the basis of the Cost of the Work (deter- mined as provided in paragraphs 11.4 and 11.5) plus a CONTRACTOR's Fee for overhead and profit (deter- mined as provided in paragraphs 11.6 and 11.7). Cost of /he Work: 11.4. The term Cost of the Work means the sum of all costs necessarily incurred and paid by CONTRACTOR in the proper performance of the Work. Except as otherwise may be agreed to in writing by OWNER. such costs shall be in amounts no higher than those prevailing in the locality of the Project. shall include only the following items and shall not include any of the COStS itemized in paragraph 11.5: 11.4.1. Payroll costs for employees in the direct employ of CONTRACTOR in the performance of the Work under schedules of job classifications agreed upon by OWNER and CONTRACTOR. Payroll costs for employees not employed full time on the Work shall be apportioned on the basis of their time spent on the Work. Payroll costs shall include. but not be limited to, salaries and wages plus the cost of fringe benefits which shall include social security contributions. unemployment. excise and payroll taxes. workers' or workmen's compensation. health and retirement benefits, bonuses. sick leave. vacation and hol- iday pay applicable thereto. Such employees shall include superintendents and foremen at the site. The expenses of performing Work after regular working hours. on Satur- day, Sunday or legal holidays, shall be included in the above to the extent authorized by OWNER. 11.4.2. Cost of all materials and equipment furnished and incorporated in the Work. including costs of trans- portation and storage thereof. and Suppliers' field services required in connection therewith. All cash discounts shall accrue to CONTRACTOR unless OWNER deposits funds with CONTRACTOR with which to make payments. in which case the cash discounts shall accrue to OWNER. All trade discounts. rebates and refunds and all returns from sale of surplus materials and equipment shall accrue to OWNER. and CONTRACTOR shall make provisions so that they may be obtained. 11.4.3. Payments made by CONTRACTOR to the Subcontractors for Work pen"ormed by Subcontractors. If required by OWNER. CONTRACTOR shall obtain competitive bids from Subcontractors acceptable to CON- TRACTOR and shall deliver such bids to OWNER who will then determine. with the advice of ENGINEER. which bids will be accepted. If a subcontract provides that the Subcontractor is to be paid on the basis of Cost of the Work Plus a Fee, the Subcontractor's Cost of the Work shall be determined in the same manner as CONTRAC- TOR's Cost of the Work. All subcontracts shall be subject to the other provisions of the Contract Documents insofar as applicable. 11.4.4. Costs of special consultants (including but not limited to engineers. architects. testing laboratories. sur- veyors. attorneys and accountants) employed for services specifically related to the Work. 11.4.5. Supplemental costs including the following: 11.4.5.1. The proportion of necessary transporta- tion, travel and subsistence expenses of CONTRAC- TOR's employees incurred in discharge of duties con- nected with the Work. 11.4.5.2. Cost. including transportation and main- tenance. of all materials. supplies. equipment. machin- ery. appliances. office and temporary facilities at the site and hand tools not owned by the workers. which are consumed in the performance of the Work. and cost less market value of such items used but not consumed which remain the property of CONTRACTOR. \1.4.5.3. Rentals of all construction equipment and machinery and the parts thereof whether rented from CONTRACTOR or others in accordance with rental agreements approved by OWNER with the advice of ENGINEER, and the costs of transportation. loading. unloading. installation, dismantling and removal thereof-all in accordance with terms of said rental agreements. The rental of any such equipment. machin- ery or parts shall cease when the use thereofis no longer necessary for the Work. 11.4.5.4. Sales, consumer, use or similar taxes related to the Work. and for which CONTRACTOR is liable. imposed by Laws and Regulations. 11.4.5,5. Deposits lost for causes other than negli- gence of CONTRACTOR. any Subcomractor or any- one directly or indirectly employed by any of them or for whose acts any of them may be liable. and royalty payments and fees for permits and licenses. 1\.4.5.6, Losses and damages (and related expenses). not compensated by insurance or otherwise. to the Work or otherwise sustained by CONTRACTOR in connection with the performance and furnishing of the Work (except losses and damages within the deductible amounts of property insurance established by OWNER in accordance with paragraph 5.9), pro- vided they have resulted from causes other than the negligence of CONTRACTOR, any Subcontractor. or anyone directly or indirectly employed by any of them or for whose acts any of them may be liable. Such losses shall include settlements made with the written consent and approval of OWNER. No such losses. damages and expenses shall be included in the Cost of the Work for the purpose of determining CONTRAC- TOR's Fee. If. however, any such loss or damage 22 requires reconstruction and CONTRACTOR is placed in charge [hereof. CONTRACTOR shall be paid for services a f~~ proportionate to that stated in paragraph 11.6.2. 11 A,S. j. The cost of utilities. fu~1 and sanitary facilities at the site. t 1 A.5,8. Minor expenses such as telellrams. lonll distance telephone calls. telephone service- at th~ site~ expressage and similar petty I:Jsh items in connection with the Work. 11 A,5.9, Cost of premiums for additional Bonds and insurance required because of changes in the Work and premiums for property insurance coverage within the limits of the deductible amounts established bv OWNER in accordance with paragraph 5.9. . [1.5. The term Cost of the Work shall not include any of the following: 11.5.1. Payroll costs and other compensation of CON- TRACTOR's ufficers. executives. principals (0f partner- ship and sole proprietorships). general managers. engi- neers. architects. estimators. attorneys, auditors. accoun- tants. purchasing and contracting agents. expeditors. timekeepers. clerks and other personnel emeloved b\' CONTRACTOR whether at the site or in CONTRAC- TOR's principal or a bianch office for general administra- tion of the Work and not specifically included in the agreed upon schedule of job classifications referred to in para- graph 11.4.1 or specifically covered by paragraph 1 I A.+- all of which are to be considered administrative costs covered by the CONTRACTOR's Fee. 11.5'.2. Expenses l1f CONTRACTOR's principal and branch offices other than CONTRACTOR's office at the site. [1,5.3, :\ny part oiCONTRACTOR's capital expenses. including interest on CONTRACTOR'S capital employed for the Work and charges against CONTRACTOR for delinquent payments. [ 1.5.4. Cost of premiums for all Bonds and for all insurance whether ur not CONTRACTOR is required ~y the Contract Documents to purchase and maintain the same (except for th~ cost of premiums cover~d by su~- paragraph 11"+,5,9 above!. 11.5.5," Cosis du~ to th~ neglig~nc~ of CONTRAC- TOR. any Subcontr:l.:tor. or anyone directly or indirectly ~mployed ~y any of i:Jem or for whos~ acts any of them may be lia/'1le ir.-:foidin!; but not limited to. the I:orrection of de.!,', ,..:" '.' 'urk. Jisposal llf materials or equipment wrongly ~lJ, .,/ ,~,. ~ '"laking goou any damag~ to prop- erty, 11.5,0. Other o\'erheau or general expense costs ot' any kind and the Cllsts of any item not specitically and expressly in..:luded in paragraph II A, CONTRACTOR's Fee: 11.6. The CONTRACTOR's Fee allowed to CONTRAC- TOR for overhead and profit shall be determined as follows: 11.6.1. a mutually acceptable fixed fee: or if none can be agreed upon. 11.6.2. a fee based on the following percentages of the various portions of the Cost of the Work: 11,6.2.1. for costs incurred under paragraphs 1104.1 and IIA.2. the CONTRACTOR's Fee shall be fifteen percent: 11.6.2.2. for costs incurred under paragraph 11.4.3. the CONTRACTOR's Fee shall be f.ve percent: and if a subcontract is on the basis of Cost of the Work Plus a Fee. the maximum allowable to CONTRACTOR on account of overhead and profit of all Subcontractors shall be fifteen percent: 11.6.2.3. no fee shall be payable on the basis of costs itemized unuer paragraphs 11.~A. l1A.5 and 11.5: 11,6.2A. the amount of credit to be allowed by CONTRACTOR to OWNER for any such change which results in a net decrease in cost will be the amount of the actual net decrease plus a deduction in CONTRAC- TOR's Fee by an amount equal to ten percent of the net decrease; and 11.6.2.5. when both additions and credits are involved in anyone change. the adjustment in CON- TRACTOR's Fee shall be computed on the basis of the net change in accordance with paragraphs 11.6.2.1 through 11.6.2A. inclusive, 11, j, Whenever the cost of any Work is to be determined pursuanr to paragraph II,~ or 11.5. CONTRACTOR will submit in form acceptable to ENGINEER an itemized cost breakdown together with supporting data. Cash .4./lowances: 11.8. It is understood that CONTR.-\CTOR has included in the Contract Price all allowances so named in the Contract Documents and shall cause the Work so covered to be done by such Subcontractors or Suppliers and for such sums within the limit of the allowances as may be acceptable to ENGI- NEER. CONTRACTOR agrees that: 11.8.1. The allowances include the cost to CON- TRACTOR (Jess any applicable trade discounts) of mate- rials and equipment required by the allowances to be deliv- ered at the site. and all applicable taxes: and 11.8.2, CONTRACTOR's costs for unloading and handling on th~ site. Iahor. installation costs. overhead. profit and other ~xpenscs contemplated for [he allowances have b~en includ~d in the Contract Price and not in the 23 .' allowances. No demand for additional payment on account of any thereof will be valid. Prior to final payment, an appropriate Change Order will be issued as recommended by ENGINEER to reflect actual amounts due CONTRACTOR on account of Work covered by allowances. and the Contract Price shall be correspond- ingly adjusted. Unit Price Work: 11.9.1. Where the Contract Documents provide that all or part of the Work is to be Unit Price Work. initially the Contract Price will be deemed to include for all Unit Price Work an amount equal to the sum of the established unit prices for each separately identified item of Unit Price Work times the estimated quantity of each item as indi- cated in the Agreement. The estimated quantities of items of Unit Price Work are not guaranteed and are solely for the pUrpose of comparison of Bids and determining an initial Contract Price. Determinations of the actual quan- tities and classifications of Unit Price Work performed by CONTRACTOR will be made by ENGINEER in accor- dance with Paragraph 9.10. 11.9.2. Each unit price will be deemed to include an amount considered by CO~'TRACTOR to be adequate to cover CONTRACTOR's overhead and profit for each sep- arately identified item. I 1 .9.3. Where the quantity of any item of Unit Price Work performed by CONTRACTOR differs materially and significantly from the estimated quantity of such item indicated in the Agreement and there is no corresponding adjustment with respect to any other item of Work and if CONTRACTOR believes that CONTRACTOR has incurred additional expense as a result thereof. CON- TRACTOR may make a claim for an increase in the Con- tract Price in accordance with Anicle II if the parties are unable to agree as to the amount of any such increase. ARTICLE 12-CHANGE OF CONTRACT TIME I :.1. The Contract Time may only be changed by a Change Order or a Written Amendment. Any claim for an extension or shortening of the Contract Time shall be based on written notice delivered by the party making the claim to the other party and to ENGINEER promptly (but in no event later than thirty days) after the occurrence of the event giving rise to the c1aiin and stating the general nature of the claim. Notice of the extent of the claim with supporting data shall be deliv- ered within sixty days after such occurrence (unless ENGI- NEER allows an additional period of time to ascertain more accurate data in support of [he claim) and shall be accom- panied by the claimant's written statement that the adjust- ment claimed is the entire adjustment to which the claimant has reason to believe it is entitled as a result of the occurrence of said event. All claims for adjustment in the Contract Time shall be determined by ENGINEER in accordance with para- graph 9.11 if OWN ER and CONTRACTOR cannot otherwise agree. No claim for an adjustment in the Contract Time will be valid if not submitted in accordance with the requirements of this paragraph 12.1. 12.2. The Contract Time will be extended in an amount equal to time lost due to delays beyond the control of CON- TRACTOR if a claim is made therefor as provided in para- . graph 12.1. Such delays shall include. but not be limited to, acts or neglect by OWNER or others performing additional work as contemplated by Article 7, or to fires. floods. labor disputes. epidemics. abnormal weather conditions or acts of God. . 12.3. All time limits stated in the Contract Documents are of the essence of the Agreement. The provisions of this Anicle 12 shall not exclude recovery for damages (including but not limited to fees and charges of engineers. architects, attorneys and other professionals and court and arbitration costs) for delay by either party. ARTICLE 13-W ARRANTY AND GUARANTEE; TESTS AND INSPECTIONS; CORRECTION, REMOVAL OR ACCEPTANCE OF DEFECTIVE WORK WtunUllY and GlUUTUlUe: 13.1. CONTRACTOR warrants and guarantees to OWNER and ENGINEER that all Work will be in accor- dance with the Contract Documents and will not be defeCTive. Prompt notice Of all defects shall be given to CONTRAC- TOR. All defective Work. whether or not in place. may be rejected. corrected or accepted as provided in [his Article 13. Acce'ss to Work: 13.2. ENGINEER and ENGINEER's representatives. other representatives of OWNER. testing agencies and gov- ernmental agencies withjwisdictional interests will have access to the Work at reasonable times for their observation. inspecting and testing. CONTRACTOR shall provide proper and safe conditions for such access. Tens and Inspections: 13.3. CONTRACTOR shall give ENGINEER timely notice of readiness of the Work for all required inspections. tests or approvals. 13.4. If Laws or Regulations of any public body having jurisdiction require any Work (or part thereoO to specifically be inspected. tested or approved. CONTRACTOR shall assume full responsibility therefor. pay all costs in connection therewith and furnish ENGINEER the required certificates of inspection. testing or approval. CONTRACTOR shall also 24 non-performance; for default; (7) termination of the contract (8) termination of the contract in whole or in part for the convenience of Augusta- Richmond County; (9) payment procedures; (10) (11) hold harmless provisions; prohibition against contingent fees; construction County; (12) project suspension of work on a ordered by Augusta-Richmond (13) site conditions differing from those indicated in the contract, or ordinarily encountered, except that a differing site conditions clause need not be included in a contract: negotiated, a. when the contract is b . when provides the site or design, or the contractor c. when otherwise agreed with respect differing site conditions, and (14) insurance requirements. the to parties have the risk of (15) contractor's consent to venue in the Superior Court of Richmond County, Georgia; and (16) provision that contract supersedes any and all provisions of the Georgia Prompt Pay Act. S 1-10-82. CONTRACT Every modificatJ.on to a contract with Augusta-Richmond County, which has not been previously approved by the Augusta-Richmond County Commission, shall be subject to prior approval by the Commission. A contract modification does not require Commission action if a contingency amount has been approved and the contract modification is within that amount and provided the Augusta-Richmond County Administrator has been contractually or otherwise specifically designated by the Commission for such purpose. In instances where the purchasing Director, architect/engineer, or project manager, with the approval of the using agency head, and Administrator, determine that the contract modification or change order cannot be delayed without substantial delay and cost to Augusta- Richmond County and funds are available and the appropriate budget transfer is made, the Administrator, may authorize the appropriate action. S 1-10-83. BID SECURITY AND PERFORMANCE BONDS. (a)' 'Requirement for bid security, Bid security shall be required for all competitive sealed bids for construction contracts when the price is estimated by the Purchasing Director to exceed $40,000. Bid security shall be a bid bond provided by a surety company authorized to do business in the State of Georgia, or the equivalent in a cashier's or certified check made payable to Augusta-Richmond County. Nothing herein shall prevent the requirement of such bonds on construction contracts under $40,000 when the circumstances warrant. (b) Amount of bid security, Bid security shall be in an amount equal to at least 10% of the Augusta-Richmond County Code AOOPTIm September 2, 1997 amount of the bid. Except for the three (3) lowest bidders, unsuccessful bidders shall be entitled to the return of the bid security. Upon failure of a successful bidder to enter into a contract within an established time frame after Augusta-Richmond county tenders the proposed contract, the bidder shall forfei t the bid security. Upon approval of the contract ,by the Commission, the remaining bid securities shall be returned. (c) Rejection of sealed bids for noncompliance with bid security and authority. If required, and the bid security is not included with the bid, the Purchasing Director shall recommend to the Commission that the bid be rejected. (d) Withdrawal of bids. If a bidder is permitted to withdrawn its bid before award as provided in !i 1-10-42 (g) (Sealed Bidding; Correction or Withdrawal of Bids) no action shall be taken against the bidder or the bid security. (Bidder entitled to return of bid security) 5 1-10-84. BONDS. . ' CONTRACT PERFORMANCE AND PAYMENT (a) construction $40,000, the delivered to become binding the contract: When required--amounts. When a contract is awarded in excess of following bonds or security shall be Augusta-Richmond County and shall on the parties upon the execution of (1) A performance bond satisfactory to Augusta-Richmond County, executed by a surety company authorized to do business in the State of Georgia or otherwise secured in a manner satisfactory to Augusta-Richmond County, in an amount equal to 100% of the price specified in the contract; and (2) A payment bond satisfactory to Augusta-Richmond County, executed by a surety company authorized to do business in the State of Georgia or otherwise secured in a manner satisfactory to Augusta-Richmond County, for the protection of all persons supplying labor and material to the contractor or its subcontractors for the performance of the work provided for in the contract. The bond shall be in an amount equal to loot of the price specified in the contract. (b). Reduction of bond amounts. Prior to the taking of bids, the Purchasing Director and architect/engineer or project manager, upon approval of the Administrator, may reduce the amount of performance and payment bonds when a written determination is made that it is in the best interest of Augusta-Richmond County to do so, provided Georgia law does not mandate the amount of such bond. (c) Authority to require additional bonds. Nothing in this Section shall be construed to limit the authority of Augusta-Richmond County to require other security in addition to those bonds if warranted by the circumstances and other than specified in Subsection (1) of this Section. 5 1-10-85. BOND FORMS AND COPIES. The form of payment and performance bonds and other required bonds shall be prescribed by the Augusta-Richmond County Attorney. Any person may request and obtain from Augusta-Richmond County a certified copy of a bond upon payment of the cost of reproduction of the bond and postage, if any. A certified copy of a bond shall be prima facie evidence of the contents, execution, and delivery of the original. 5 1-10-86. RETAINAGE. (a) Maximum amount to be withheld. In any contract or subcontract for construction which 1-69 A Hire ~ MeN -t 1'15 1/