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CONSTRUCTION AGREEMENT 8" -18" CURED-IN-PLACE PIPE REHABILITATION - 2015 BETWEEN CITY OF MOSCOW, IDAHO AND PLANNED AND ENGINEERED CONSTRUCTION, INC. THIS CONSTRUCTION AGREEMENT 8" 18" CURED-IN-PLACE PIPE REHABILITATION -2015 BETWEEN CITY OF MOSCOW, IDAHO AND PLANNED AND ENG­ERED CONSTRUCTION, INC. (hereinafter "Agreement") dated this 2 day of 2015, by and between the City of Moscow, Idaho, a municipal corporation of the State of Id ho, 206 East Third Street, Moscow, Idaho, 83843 (hereinafter "City"), and Planned and Engineered Construction, Inc., 3400 Centennial Drive, Helena, Montana, 59601 (hereinafter "Contractor"); WITNESSETH: WHEREAS, pursuant to the invitation of City through a "Solicitation For Bids", Contractor submitted a proposal containing an offer invited by said notice; and WHEREAS, City has determined that said offer was the lowest responsive bid; and WHEREAS, City has accepted Contractor's bid; NOW THEREFORE, the parties to this Agreement, in consideration of the mutual covenants and stipulations set out, agree as follows: ARTICLE 1. CONTRACT DOCUMENTS The Contract Documents which comprise the entire agreement between City and Contractor concerning the work to be performed are this Agreement, pages one through five (1 through 5) and the following: 1. Advertisement for Bids; 2. Project Specifications titled: 8" - 18" Cured-In-Place Pipe Rehabilitation - 2015 City of Moscow Project No. 115-014 3. Bid/Proposal of Contractor, dated May 29, 2015, physically attached to this Agreement; 4. The Engineering Plans; 5. Performance and Payment Bonds and Insurance Certificates, physically attached to this Agreement; 6. No Addendum issued prior to opening of bids; 7. Change Orders which may be delivered or issued after the effective date of this Agreement. There are no Contract Documents other than those listed in Article 1. This Agreement may only be amended by change order as provided in the General Conditions. 8"-18" CURED-IN-PLACE PIPE REHABILITATION - 2015 CITY AND PLANNED AND ENGINEERED CONSTRUCTION, INC. PAGE 1OF 5 ---PAGE BREAK--- ARTICLE 2. WORK Contractor shall complete the entire work as specified, indicated and required under the Contract Documents for City project (hereinafter "Project") titled: "8"-18" CURED-IN-PLACE PIPE REHABILITATION - 2015" ARTICLE 3. CONTRACT TIME/SUBSTANTIAL COMPLETION The work to be performed pursuant to this Agreement shall be substantially complete on or before September 30, 2015. The work shall be completed on or before Forty Five (45) calendar days from the commencement of work, unless adjustment of the contract time is made in accordance with the provisions of the Contract Documents. Contractor shall begin work in conformance with the Contract Documents and shall complete the work prior to the date of completion. ARTICLE 4. CONTRACT SUM City shall pay Contractor for completion of the Work in accordance with the Contract Documents in current funds the amount of Two Hundred Twenty Five Thousand Dollars ($225,000) for Base Bid and No Alternates. Said Contract Sum shall be paid in accordance with the Contract Documents. ARTICLES. INDEPENDENT CONTRACTOR The parties warrant by their signature that no employer-employee relationship is established between Contractor and City by the terms of this Agreement. It is understood by the parties hereto that Contractor is an independent contractor and as such neither it nor its employees, agents, representatives or subcontractors, if any, are employees of City for purposes of tax, retirement system, or social security (FICA) withholding. ARTICLE6. SCOPE OF SERVICES Contractor shall perform all services required by the Contract Documents. All work shall be completed in accordance with the specifications and plans established for this Project. ARTICLE7. HOLD HARMLESS/INDEMNIFICATION In addition to other rights granted City by the Contract Documents, Contractor shall indemnify and save harmless the City, its officers, employees, and engineers, from all suits, actions, or claims of any character brought because of any injuries or damages received or sustained by any person, persons, or property on account of the operations of Contractor or its subcontractors; or on account of or in consequence of any neglect in safeguarding the work; or through use of unacceptable materials in constructing the work; or because of any act or omission, neglect, or misconduct of Contractor or its 8"-18" CURED-IN-PLACE PIPE REHABILITATION - 2015 CITY AND PLANNED AND ENGINEERED CONSTRUCTION, INC. PAGE 20F5 ---PAGE BREAK--- subcontractors; or because of any claims or amounts recovered from any infringements of patent, trademark or copyright; or from any claims or amounts arising or recovered under the Workmen's Compensation Act or any other law, ordinance, order or decree. ARTICLES. CONFLICT OF INTEREST Contractor covenants that it presently has no interest and will not acquire any interest, direct or indirect, in the Project which would conflict in any manner or degree with the performance of its services hereunder. Contractor further covenants that, in performing this Agreement, it will employ no person who has any such interest. Should any conflict of interest arise during the performance of this Agreement, Contractor shall immediately disclose such conflict to the Project Engineer/Engineer and City. ARTICLE 9. ENTIRE AGREEMENT, MODIFICATION AND ASSIGNABILITY This Agreement and the exhibits hereto (if any) contain the entire agreement between the parties, and no statements, promises, or inducements made by either party, or agents of either party are valid or binding unless contained herein. This Agreement may not be enlarged, modified or altered except upon written agreement signed by the parties hereto. Contractor may not subcontract or assign its rights (including the right to compensation) or duties arising hereunder other than as contemplated by the Contract Documents, without the prior written consent and express authorization of City. ARTICLE 10. ADHERENCE TO LAW REQUIRED All applicable local, state and federal statutes and regulations are hereby made a part of this Agreement and shall be adhered to at all times. Violation of any of these statutes or regulations by Contractor shall be deemed material and shall subject Contractor to termination of this Agreement for cause. No pleas of misunderstanding or ignorance on the part of Contractor will in any way serve to modify the provisions of this requirement. Contractor and its surety shall indemnify and save harmless City and its employees, agents, engineers and representatives against any claim or liability arising from or based on the violation of any such laws, codes, ordinances, or regulations, whether by Contractor, Contractor's employees, or its subcontractors. ARTICLE 11. LEGAL FEES In the event either party incurs legal expenses to enforce the terms and conditions of this Agreement, the prevailing party is entitled to recover reasonable attorney's fees and other costs and expenses, whether the same are incurred with or without suit. ARTICLE 12. JURISDICTION AND VENUE It is agreed that this AGREEMENT shall be construed under and governed by the laws of the State of Idaho. In the event of litigation concerning it, it is agreed that proper venue shall be the District Court of the Second Judicial District of the State of Idaho, in and for the County of Latah. 8"-18" CURED-IN-PLACE PIPE REHABILITATION - 2015 CITY AND PLANNED AND ENGINEERED CONSTRUCTION, INC. PAGE30F5 ---PAGE BREAK--- ARTICLE 13. SPECIAL WARRANTY Contractor declares that no improper personal, political or social activities have been used or attempted in an effort to influence the outcome of the competition, discussion, or negotiation leading to the award of this Agreement. Any such activity by Contractor shall make this Agreement null and void. ARTICLE 14. COMMUNICATIONS Such communications as are required by this Agreement shall be satisfied by mailing or by personal delivery to the parties at the following address: Contractor: Planned and Engineered Construction, Inc. City: 3400 Centennial Drive Helena, Montana 59601 ARTICLE 15. EXECUTION City Engineer City of Moscow 206 East Third Street P 0 Box 9203 Moscow, Idaho 83843 IN WITNESS WHEREOF, said Contractor and City have caused this Agreement to be executed on the day and year first above written. Contractor: Planned and Engineered Construction, Inc. 8"-18" CURED-IN-PLACE PIPE REHABILITATION - 2015 CITY AND PLANNED AND ENGINEERED CONSTRUCTION, INC. City: City of Moscow, Idaho Bill Lambert, Mayor Roderick Hall, City Attorney PAGE40F 5 ---PAGE BREAK--- ACKNOWLEDGMENT State of l't"/NTͷA ) ) :ss County of u:w1> # c c..AͶ'-r ) On this day of ':JtJl'lt!" , 2015, before me, the undersigned, a Notary in and for said State, personally appeared cHtt/17/" 1)11rn .v , known to me to be the person whose name is subscribed to the foregoing Agreement and acknowledged to me that he/she executed the same in his/her capacity as 7At10 i>/l.lfL for Planned and Engineered Construction, Inc. GARY M. VETSCH NOTARY PUBLIC for the seal) S1atB of Montana at Eal\ Hellna. Monlana My commisaion Expires ·September 25, 2018 8"-18" CURED-IN-PLACE PIPE REHABILITATION - 2015 CITY AND PLANNED AND ENGINEERED CONSTRUCTION, INC. Ɇ u::t> Notary Public residing at: _e_111J.ɇr 11_F:_t. «t_w_4¬ My commission expires: ÚÛ ÜÝ2Þ£-ß'l.0à' á1 PAGES OF 5 ---PAGE BREAK--- THE AMERICAN INSTITUTE OF ARCHITECTS • Bond No. 0193054 AIA Document A312 Performance Bond Any singular reference to Contractor, Surety, Owner or other party shall be considered plural where applicable. CONTRACTOR (Name and Address): Planned and Engineered Construction.Inc. 3400 Centennial Drive Helena, MT 59601 OWNER (Name and Address): City of Moscow 206 East Third Street Moscow, ID 83843 CONSTRUCTION CONTRACT Date: SURETY (Name and Principal Place of Business): Berkley Insurance Company 475 Steamboat Road Greenwich, CT 06830 Amount: $225,000.00 Two Hundred Twenty Five Thousand Dollars and 00/100 Description (Name and Location): 8"-18" Cured-in-Place Pipe Rehabilitation-2015 BOND Modifications to this Bond: (Any additional signatures appear on page 3) SURETY Company: Berkley Insurance Company D See Page3 (Corporate Seal) Signatuk].::a:;, Name and Title:Jonathan M. Emmons Attorney-in-Fact (FOR INFORMATION ONLY - Name, Address and Telephone) OWNER'S REPRESENTATIVE (Architect, Engineer or other AGENT or BROKER: party) : PayneWest Insurance, Inc. 1200 N. Montana Avenue Helena, MT 59604 [PHONE REDACTED] AIA DOCUMENT A312 •PERFORMANCE BOND AND PAYMENT BOND• DECEMBER 1984 ED.• AIA ® THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVE., N.W., WASHINGTON, D.C. 20006 THIRD PRINTING• MARCH 1987 A312·1984 1 ---PAGE BREAK--- t The Contractor and the Surety, jointly and severally, bind themselves, their heirs, executors, administrators, succes͵rs and assigns to the Owner for the performance of the Construction Contract, which is incorporated herein by reference. 2 If the Contractor performs the Construction Contract, tl'le Surety and tl'le Contractor shall have no obligation under this Bond, except to participate in conferences as provided in Subparagraph 3.1. 3 lf there Is no Ownet Default, the Surety's obligation under this Bond shall arise after: 3.1 The 0\'lmer has notified the Contractor and the Surety at Its address des.cribed in Paragraph 10 below that the Owner is considering dcclarlng a Contractor Default and has requested and attempted 10 arr.:tnge a COf'lference with the Contractor and the Surety to be held not later than fifteen days afler receipt of such notice to discuss methods of pt>rfo1mins tʹc Conmuc· tion Contract. lf lhe Owner, the Contrac1or and lhe Surety agree, the Contr11c1or shall be <1llowed a reason· able time to per(orm the Construction Contract, bul such an agreement shall nol waive the Owner's risht, if aoy. subsequently to declare a Contractor Default; and 3.2 The Owner has declared a Contractor Default and formally terminated the Contractor's right to complete the contract. Such Contractor Default shall not be de· dated earlier than twenty days after the Contractor and the Surely have received notice as provided in Sub· paragraph and 3.3 The Owner has agreed to pay the Balance of the Contract Price to the Surety in accordance with the terms of the Construction Contract or to a contractor selected lo perform the Construction Contract in accor· dance with the terms of the contract with the Owner. 4 When the Owner has satisfied the conditions of Para· graph 3, the Surety shall and at the Surety's ex· pense take one of the rollowlng actions: 4.1 Arrange for the Contractor, with consent of' the Owner, to perform and complete the Construc1ion Contract; or 4.2 Undertake to perform and complele the Constru-<;· tion Contract ilseff, through lts agents or through inde· pendenl contractors; or 4.3 Obtain bids or negotiated proposals from qualified contractors acceptable 10 the Owner for a contract for performance and completion of the Con· struction Contract, arrange fot a contract to be pre· pared for execution by the Owner and the contractor selected with the Owner's to be secured wilh performance and pa)•mcnt bonds execu1ed by a qualified surety equi\·alent to the bonds issued on the Construclion Contracr, and pay to the Owner the amount of damages as described In Paragraph & in cńŅ cess of the Balance of the Contract Price incurred by the Owner resulting from the Contractor's default; or 4.4 Waive its right to perform and complete, arrange fur completion, or obtain a new contraclor and with reasonable promptness under the circumstances: .1 After investigalion, determine the amount for which it may be liable to the Owner and, as soon as practicable :iher the amount is deter­ mlned, tender paymen1 therefor 10 the Owner; or .2 Deny liability in whole or in pC: lU r