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:
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Department of Pu
,.rlL~. ngineering
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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 -,
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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:
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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.
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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:
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cc: Jim Wall
Geri Sams
Kakoli Basu
Max Hicks
Teresa Smith
Agenda File
Main File
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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.
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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.
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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:
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COUNTY .
ADMINISTRATOR: ~ ~. ~
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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
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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).
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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
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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
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