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CONSTRUCTION CONTRACT SOUTH LIFT STATION • 2008 THIS CONTRACT, dated this 20TH Day of May, 2008 by and between the City of Moscow, Idaho, a municipal corporation of the State of Idaho (hereinafter 'City') and l & L Cargile, Inc. (hereinafter 'Contractor'): WITNESSETH: WHEREAS, pursuant to the invitation of the City, extended through an officially published "Advertisement lor Bids", the Contractor did, in accordance therewith file with the City a proposal containing an offer which was invited by said notice; and WHEREAS, the City has determined that said offer was the lowest and best submitted: NOW THEREFORE, the parties to this Contract, 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 the City and the Contractor concerning the work to be performed are this Contract, pages one through four and the following: 1. Advertisement for Bids; 2. Project Specifications titled: SOUTH LIFT STATION· 2008; 3. Bid/Proposal of the Contractor, dated April 30, 2008, physically attached to this Contract; 4. The Engineering Plans; 5. Performance and Payment Bonds and Insurance Certificates, physically attached to this contract; 6. Addenda issued prior to opening of bids (n/a this contract); 7. Change Orders which may be delivered or issued after the effective date of this Contract. There are no Contract Documents other than those listed in Article 1. This Contract may only be amended by change order as provided in the General Conditions. ARTICLE 2. WORK The Contractor shall complete the entire work as specified, indicated and required under the Contract Documents for City of Moscow project titled: SOUTH LIFT STATION- 2008 ARTICLE3. CONTRACT TIME I SUBSTANTIAL COMPLETION The work to be performed pursuant to this Contract shall be substantially complete on or before October 1, 2008, unless adjustment of the contract time is made in accordance with the provisions of the Contract Documents. The Contractor shall begin work in conformance with the Contract Documents and shall complete the work prior to the date of completion. PAGE 1 ·CONSTRUCTION CONTRACT 2008-16 ---PAGE BREAK--- ARTICLE4. CONTRACT SUM The City shall pay the Contractor for completion of the work in accordance with the Contract Documents in current funds the amount of Six Hundred Forty-Nine Thousand One Hundred Twenty-Eight Dollars ($649, 128.00). 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 the Contractor and the City by the terms of this contract. It is understood by the parties hereto that the Contractor is an independent contractor and as such neither it nor its employees. agents, representatives or subcontractors, if any, are employees of the City lor purposes of tax, retirement system, or social security (FICA) withholding. ARTICLES. SCOPE OF SERVICES The Contractor shall perform all services required by the Contract Documents. All work shall be completed in accordance with the plans and specifications established for this project. ARTICLE 7. HOLD HARMLESS /INDEMNIFICATON In addition to other rights granted the City by the Contract Documents, the Contractor shall indemnify and save harmless the Engineer and the City, its officers and employees, 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 the Contractor or his subcontractors; or on account of or in consequence of any neglect in safeguarding the work; or because of any act or omission, neglect, or misconduct of the Contractor or his 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. ARTICLE 8. CONFLICT OF INTEREST The 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. The Contractor further covenants that, in performing this Contract, it will employ no person who has any such interest Should any conflict of interest arise during the performance of this Contract, Contractor shall immediately disclose such conflict to the Project Engineer I Engineer and the City. ARTICLES. ENTIRE AGREEMENT, MODIFICATION AND ASSIGNABILITY This Contract and the exhibits hereto 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 Contract may not be enlarged, modified or altered except upon written agreement signed by the parties hereto. The 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 the City. PAGE 2 -CONSTRUCTION CONTRACT ---PAGE BREAK--- ARTICLE 10. ADHERENCE TO LAW REQUIRED All applicable local, state and federal statutes and regulations are hereby made a part of this Contract and shall be adhered to at all times. Violation of any of these statutes or regulations by the Contractor shall be deemed material and shall subject the Contractor to termination of this Contract 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 The Contractor and his surety shall indemnify and save harmless the City and its employees, agents and representatives against any claim or liability arising from or based on the violation of any such laws, codes, ordinances, or regulations, whether by himself, his employees, or his subcontractors. ARTICLE 11. LEGAL FEES In the event either party incurs legal expenses to enforce the terms and conditions or this Contract, 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. SPECIAL WARRANTY The Contractor warrants that nothing of monetary value has been given, promised or implied as remuneration or inducement to enter into this Contract. The Contractor further 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 Contract. Any such activity by the Contractor shall make this Contract null and void. ARTICLE 13. COMMUNICATIONS Such communications as are required by this Contract shall be satisfied by mailing or by personal delivery to the parties at the following address: Contractor: L & L Cargile, Inc. P.O. Box 11784 5607 E. Desmet Spokane Valley, WA 99211 City: City of Moscow P.O. Box 9203 Moscow, ID 83843 PAGE 3 CONSTRUCTION CONTRACT ---PAGE BREAK--- ARTICLE 14. EXECUTION IN WITNESS WHEREOF, said Contractor and the City have caused this Contract to be executed on the day and year first above written. State of W II S f/1 N. Q TO 1'-i County of S fr;Ktf II(:; ACKNOWLEDGMENT ) ) ss ) On this :L 2- day ol--'-tl'l ñ ;:klu"'i personally appeared Larry Cargile and Lonnie Cargile known to me to be the President and Vice President of L & L Cargile, Inc. described in the above document and acknowledged to me they executed the same. My commission expires: I ;l ò; Date PAGE 4 -CONSTRUCTION CONTRACT ---PAGE BREAK--- I • • I I I I I I I I I • • • • I I • TO: Mayor and City Council City of Moscow, Idaho BID PROPOSAL Date: _4 0 _ /0 _8 This proposal is submitted as an offer by the undersigned to enter into contract with the City of Moscow, Idaho as represented by the City Council, hereinafter referred to as the 'CITY' for SOUTH LIFT STATION - 2008, specified herein and which construction documents are on file with the City Engineer, Paul Mann Building, 221 East 2'd Street, Moscow, Idaho, and which are a condition hereof with the same force and effect as though they were attached hereto. The offer is conditioned on the following declarations as to the facts, intention and understanding of the undersigned and the agreement of the CITY to the terms and prices herein submitted. I . 2. 3. 4. 5. 6. 7. 8. 9. I 0. II All project specifications and drawings examined by the undersigned and their terms and conditions are hereby agreed to. The undersigned certifies that he has received or made himself aware of any and all existing site conditions that may affect the proposed work. It is understood that the contract drawings may be supplemented by additional drawings and specifications in explanation and elaboration of the contract drawings and it is agreed that such supplemental drawings, when not in conf1ict with those referred to in paragraph 1 above, will have the same force and effect as if attached hereto and that when received they will be considered a part of the contract. The undersigned will furnish separate performance and payment bonds in the full amount of the contract price. The cash, certified check, bid bond, or cashier's check accompanying this proposal shall be forfeited to the City of Moscow, Idaho to the extent of 5% of the amount bid if the undersigned shall fail or refuse to execute the contract, furnish performance and payment bonds, and insurance certificate as required by the specifications within the time limit therein after notification that the said proposal is accepted, all in accordance with the provisions of this proposal and the specifications . The undersigned further agrees that the CITY shall have the right to accept or reject any bid deemed to be in tbe best interest of the City . The undersigned agrees to order all necessary equipment and materials within a period of three days after Notice to Proceed has been issued by the Engineer. B· ,h Nc:. The undersigned, as a bidder, acknowledges that Addenda Number through _ have been delivered to him and have been examined as part of the contract documents . The undersigned agrees to complete all work embraced in the contract within the time limitations set forth in paragraph IB-13 of the Irstruction to Bidders. The undersigned holds Idaho State Public Works Contractor's License Number --1.0465-i\AA-3=4{43) The undersigned proposes to use the following sub-contractors in the performance of meeting the contract requirements. Information herein must comply with Idaho Code Section 67-2310 and IB-16: South Lift Station Specifications Page 2 ---PAGE BREAK--- Idaho Public 12. The undersigned proposes to furnish labor, materials, equipment and services of all kinds required for SOUTH LIFT STA TJON - 2008 as described in the specifications, including all appurtenant work, all as required by the specifications and this proposal for prices in accordance with the completed schedule contract prices as follows: BID SCHEDULE To construct the SOUTH LIFT STATION- 2008, as specified, the bidder submits a lump sum price of L & L Cargile, Inc_·-- Firm Name of Bidder "eat17k tgnature of Bidder Vice President Official Title SEAL (if incorporated) P.O. Box 1178^ Spokane Valley, WA 99211 Mailing Address 10465-AAA-3-4(43) Public Works License No. Washington State of Incorporation if Incorporated Dated at Spokane,_ WA 30thday of¹A"p"'r'"1º·1L._», 2008. South Lift Station Specifications Page 3 I I I I ' I 1 I ---PAGE BREAK--- ' 1 BID BOND Conforms with The American Institute of Architects, A.IA Document No. A-310 KNOW ALL BY THESE PRESENTS. That we. as Principal, hen:inafter called the Principal, and the SAFE CO INSURANCE COMPANY OF AMERICA of SEATTLE, WASHINGTON , a corporation duly organized under the laws of the State of WASHINGTON , as Surety, hereinafter called the Surety, are held and firmly bound unto CITY OF MOSCOW as Obligee. hereinafter cal!ed the Obligee. in the sum of 5% OF AMOUNT BID - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dollars($ 5% OF AMOUNT BID . for the payment of which sum well and truly to be made, the sa tel PrinCipal and the said Surety, bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents_ WHEREAS, the Principal has submitted a bid f<.'r A CITY OF MOSCOW, IDAHO, PROJECT NO. 107-006 NOW, THEREFORE, if the Obligee shall accept the bid of the Principal and the Principal shall enter into a Contract with the Obligee in accordance with the terms of such bid, and give such bond or bonds as may be specified in the bidding or Contract Documents \Vith good and sufficient surety for the faithful performance of such Contract and for the prompt payment of labor and material furnished in the prosecution thereof, or in the event of the failure of the Principal to enter such Contract and give such bond or bonds, if the Principal shall pay to the Obligee the difference not to exceed the penalty hereof between the amount specified in said bid and such larger amount for which the Obligee may in good faith contract with another party to perform the Work covered by said bid, then this obligation shall be nuU and void, otherwise to remain in full force and effect. Stgned and sealed this L & L CARGILE, INC (Seal) [ 0 Principal Lonnie Cargile, /sident Title { SAFECQ INSURANCE COMPANY OF AMERICA FFǜP ---PAGE BREAK--- POWER Safeco Insurance Company of America General insurance Company of America Safeco Plaza OF ATTORNEY Seattle, WA 98185 KNOW ALL BY THESE PRESENTS: No. 946 That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA, each a Washington corporation, does each hereby appoint •-HEATHER ANDERSON; WM. DINNEEN; KATHY GURLEY; CHRIS LARSON; H. KEITH MCNALLY; JO ANN MIKKELSEN; GEORGE C. SCHROEDER; W. W. WELLER; Spokane, its true and lawful attomey(s)-infact, with full authority to execute on its behalf fidelity and surety bonds or undertakings and other documents of a similar character issued in the course of its business, and to bind the respective company thereby. IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA have each executed and attested these presents 7th January 2008 this dayof STEPHANIE OALEY·WATSON,SECRETARY TIM MIKOLAJEWSKI, SENIOR VICE-PRESIDENT, SURETY CERTIFICATE Extract from the By-Laws of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA: "Article V, Section 13.- FIDELITY AND SURETY BONDS the President, any Vice President, the Secretary, and any Assistant Vice President appointed for that purpose by the officer in charge of surety operations, shall each have authority to appoint individuals as attomeysinfact or under other appropriate titles with authority to execute on behalf of the company fidelity and surety bonds and other documents of similar character issued by the company in the course of its business On any instrument making or evidencing such appointment, the signatures may be affixed by facsimile. On any instrument conferring such authority or on any bond or undertaking of the company, the seal, or a facsimile thereof, may be impressed or affixed or in any other manner reproduced; provided, however, that the seal shall not be necessary to the validity of any such instrument or undertaking." Extract from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA adopted July 28, 1970. "On any.certificate executed by the Secretary or an assistant secretary of the Company setting out, The provisions of Article V, Section 13 of the By-Laws, and (ii) A copy of the power..af.attorney appointment, executed pursuant thereto, and (iii) Certifying that said power"'()f·attorney appointment is in full force and effect, the signature of the certifying officer may be by facsimile, and the seal of the Company may be a facsimile thereof. I, Stephanie DaleyWatson , Secretary of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA, do hereby certify that the foregoing extracts of the By-Laws and of a Resolution of the Board of Directors of these corporations, and of a Power of Attorney issued pursuant thereto, are true and correct, and that both the By-Laws, the Resolution and the Power of Attorney are still in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the facsimile seal of said corporation this 30th day of April 2008 STEPHANIE DALEY-WATSON, SECRETARY Safeco® and the Safeco logo are registered trademarks of Safecc CorporaUon S-0974/DS 4/05 WEB PDF ---PAGE BREAK--- AlA Document A312 Performance Bond Bond No. 6506768 Conforms with the American Institute of Architects, AlA Document A312. Any singular reference to Contractor, Surety, Owner or other party shall be considered plural where applicable. CONTRACTOR (Name and Address): L & L Cargile, Inc. P.O. Box 11784 Spokane Valey, WA 99211 OWNER (Name and Address): City of Moscow, Idaho P.O. Box 9302 Moscow, ID 83843-1703 CONSTRUCTION CONTRACT Date: May 20, 2008 Amount: $649, 128.00 SURETY (Name and Principal Place of Business): Safeco Insurance Company of America 601 W. Main, Suite 1400 Spokane, WA 99201 Description (Name and Location): South Lift Station - 2008 City of Moscow, Idaho BOND Date (Not earlier than Consn11ction Contract Date): May 22, 2008 Amount: $649,128.00 Modifications to this Bond: CONTRACTOR AS PRINCIPAL Company: L & L Cargile, Inc. (Corporate Seal) (Any additional signatures appear on page (FOR IN'FORMA TION ONLY -Name, Address and Telephone) AGENT or BROKER: Wells Fargo Insurance Services Northwest, Inc., 601 W. Main Suite 1400, Spokane, WA 99201 [PHONE REDACTED] 1 The Contractor and the Surety, jointly and severally, bind themselves, their heirs, executors, administrators, successors 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, the Surety and the Contractor sha!! have no obligation under this Bond, except to prutlcipate in conferences as provided in Subparagraph 3. L 3 If there is no Owner Default, the Surety's obligation under this Bond shall arise after: 3.1 The Owner has notified the Contractor and the Surety at its address described in Paragraph \ 0 below that the Owner is considering declaring a Contractor Defau 1t and has requested and attempted to arrange a conference with the Contractor and the Surety to be held not later than fifteen days after receipt of such notice to discuss methods of performing the Construction Contract. If the Owner, the Contractor and the Surety agree, the Contractor shall be allowed a reasonable time to None SURETY D See Page 2 Company: Safeco Insurance (Corporate Seal) Compi of America ' it " Srgnature _iJ.;LJM( ).J,tJJ Name and Trtl1K:{hYG\f'r'y, Atto'f'ey-1.. F- a _ c _ t _ OVv'NER'S REPRESENTATIVE (Architect, Engineer or other party): perform the Construction Contract, but such an agreement shall not waive the Owner's right, if any, 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 declared earlier than twenty days after the Contractor and the Surety have received notice as provided in Subparagraph 3.1; 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 to perfonn the Construction Contract in accordance with the terms of the contract with the Owner. 4 When the OVv11er has satisfied the conditions of Paragraph 3, the Surety shall and at the Surety's expense rake one of the fo!iowing actions: SURETY 5026 (6-92) S-1852.1GEEF1 0!99 Page 1 of 2 ---PAGE BREAK--- 4.1 Arrange for the Contractor. with consent of the Owner, to perform and complete the Construction Contract; or 4.2 Undertake to perform and complete the Construction Contract itself_ through its agents or through independent contractors; or 4.3 Obtain bids or negotiated proposals from qualified contractors acceptable to the Owner for a contract for performance and completion of the Construction Contract, arrange for a contract to be prepared for execution bv rhc 0\'-'-nEr and the contractor selected with the Owner's concurrence, to be secured with performance and payment bonds executed by a qualified surety equivalent to the bonds issued on the Construction Contr3ct. ĩmd pay to the Owner the amount of damages as described in Paragraph 6 in excess 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 for completion, or obtain a ne\V contractor and with reasonable promptness under the circumstances: .1 After investigation, determine the amount for which it may be liable 10 the O>vner and, as soon as practicable after the amount IS determined, tender payment therefor to the 0\vner; or .2 Deny liability in \vho!e or in part and notify the Owner citing reasons therefor. 5 If the Surety does not proceed as provided in Paragraph 4 with reasonable promptness, the Surety shaH be deemed to be in default on this Bond fifteen days after receipt of an additional written notice from the Owner to the Surety demanding that the Surety perfonn its obligations under this Bond, and the Owner shall be entitled to enforce any remedy available to the Owner. If the Surety proceeds as provided in Subparagraph 4A, and the Owner refuses the payment tendered or the Surety has denied liability, in whole or in pare W!lhout further notice the Owner shall be entitled to enforce any remcJy available to the Ov.mer, 6 After the Owner has terminated the Contractor's right to complete the Construction Contract, and 1f the Surety elects to act under Subparagraph 4.1, 4.2, or 4.3 above, then the rcsponsrbilities of the Surety to the Owner shall not be greater than those of the Contractor under the Construction Contract, and the responsibilities of the Owner to the Surety shall not be greater than those of the Owner under the Construction Contract To the limit of the amount of this Bond, but subject to conunitment by the Owner of the Balance of the Contract Price to mitigation of costs and dama2es on the Construction Contract, the Surety is ob!i'£ated without duplicationĪ for: 6.1 The responsibihties of the Contractor for correction of defective work and completion of the Construction Contract; 6.2 Additional legal, design professional and delay costs resulting from the Contractor's Default and resulting from the actions or failure to act of the Surety under P.Jragraph 4; and 6.3 Liquidated damages" or 1f no liquidated damages are specified in the Construction Contract, actual damages caused by delayed performance or of the Contractor. MODIFICATIONS TO THIS BOND ARE AS FOLLOWS: 7 The Surc\y shall not be to the Owner or others for obiigat10ns of the Contractor that are unrelated to the Construction Contract and the Balance of the Contract Price shalt not be reduced or set off on aCcount of any such unrelated obligations. No right of act1on shall accrue on this Bond to any person or entity other than the 0\vner or its heirs. executors. administrators or successors. · · 8 The Surety hereby waives notice of any change, including changes of time, to the Construction Contract or to related subcontracts, purchase orders and other obligat1ons. 9 Any proceeding, legal or equitable, under this Bond may be instituted in any cou1i of competent jurisdiction in the location in which the work or part of the \vork is located and shall be instituted \Vithin two years after Contractor Default or within tv.ro years after the Contractor ceased working or \Vithtn t\VO years after the Surety refuses or fails to perform its obligations under th1s Bond, wh1chever occurs first. If the provisions of this Paragraph are vo!d or proh1b1ted by law, the minimum period of limitation available to sureties as a defense in the jurisdiction of the suit shall be applicable. 10 Notice to the Surety, the Owner or the Contractor shall be mailed or delivered to the address shown on the signature page. 11 When this Bond has been furnished to comply with a statutory or other !ega! requncment in the locat1on where the construction was to be performed,. any provision m this Bond conflicting with said statutory or !ega! requ1rcment shall be deemed deleted herefrom and provisions conforming to such statutory or other legal requirement shall be deemed incorporated herein. The intent is that this Bond shall be construed as a statutory bond and not as a common law bond. 12 DEFINITIONS 12.1 Balance of the Contract Price: The total amount payable by the Owner to the Contractor under the Construction Contract after all proper adjustments have been made, including allowance to the Contractor of any amounts received or to be received by the Owner in settlement of insurance or other claims for damages to which the Contractor is entitled, reduced by valid and proper payments made to or on behalf of the Contractor under the Construction Contract. 12.2 Construction Contract: The agreement between the Owner and the Contractor identified on the signature page, including all Contract Documents and changes thereto. 12.3 Contractor Default: Failure of the Contractor, which has neither been remedied nor waived, to perform or otherwise to comply with the terms of the Construction Contract 12.4 Owner Default: Failure of the 0\\'ner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perform and complete or comply with the other terms tbereof (Space is provided below for additional signatures of added parties, other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL SURETY Company: (Corporate Seal) Company: Signature: Signature: (Corporate Seal) Name and T rc-; .tl e - : @ Address: Narne Address: S-1852/GEEF 10/99 Page 2 of 2 ---PAGE BREAK--- PAYMENT BOND Bond No. 6506768 Conforms with The American Institute of Architects AlA Document A312 Any singular reference to Contractor, Surety, Owner or other party shall be considered plural where applicable. CONTRACTOR (Name and Address): SURETY: L & L Cargile, Inc. Safeco Insurance Company of America P.O. Box 11784 601 W. Main, Suite 1400 Spokane Valley, WA 99211 Spokane, WA 99201 OWNER (Name and Address): City of Moscow, Idaho P.O. Box 9302 Moscow, ID 83843-1703 CONSTRUCTION CONTRACT Date: May 20, 2008 Amount: $649, 128.00 Description (Name and Location): BOND South Lift Station - 2008 City of Moscow, Idaho Date (Not earlier than Construction Contract Date): May 22, 2008 Amount: $649, 128. 00 Modifications to this Bond: 0 None CONTRACTOR AS Al SURETY Company: L & L Cargile, Inc. Safeco lnsurang, Company of America 1/ ' v (FOR INFORMATION ONL Y·Name, Address and Telephone) AGENT orBROKER: Wells Fargo Insurance Services Northwest, Inc., 601 W. Main, Suite 1400 OWNER'S REPRESENTATIVE (Architect, Engineer or other party): Spokane, WA 99201 [PHONE REDACTED] 1 The Contractor and the Surety, jointly and severally, bind themselves, their heirs, executors, administrators, successors and assigns to the Owner to pay for labor, materials and equipment furnished for use in the performance of the Construction Contract, which is incorporated herein by reference. 2 With respect, to the Owner, this obligation shall be null and void if the Contractor: 2.1 makes payment, directly or indirectly, for all sums due Claimants, and 2.2 Defends, indemnifies and holds harmless the Owner 3 Page 1 of 3 S-2149GE 012008 from claims, demands, liens or suits by any person or entity whose claim, demand, lien or suit is for the payment for labor, materials or equipment furnished for use in the perfonnance of the Construction Contract, provided the OVrner has notified the Contrru:tor and the Surety (at the address described in Paragraph 12) of any claims, demands, liens or suits and tendered defense of such claims, demands, liens or suits to the Contractor and the Surety, and provided there is no Owner Default. With respect to Claimar1ts, this obligation shall be null XDP ---PAGE BREAK--- and void if the Contractor makes payment, directly or indirectly, for all sums due. 4 The Surety shall have no obligation to Claimants under this Bond until: 4.1 Claimants who are employed by or have a direct contract with the Contractor have given notice to the Surety (at the address described in Paragraph 12) and sent a copy, or notice thereof, to the Owner, stating that a claim is being made under this Bond and, with substantial accuracy, the amount of the claim. 4.2 Claimants who do not have a direct contract with the Contractor: .1 Have furnished written notice to the Contractor and sent a copy, or notice thereof, to the Owner, within 90 days after having last perfonned labor or last furnished materials or equipment included in the claim stating, with substantial accuracy, the amount of the claim and the name of the party to whom the materials were furnished or supplied or for whom the labor was done or performed; and . 2 Have either received a rejection in whole or in part from the Contractor, or not received within 30 days of furnishing the above notice any communication from the Contractor by which the Contractor has indicated the claim will be paid directly or indirectly; and .3 Not having been paid within the above 30 days, have sent a written notice to the Surety (at the address described in Paragraph 12) and sent a copy, or notice thereof, to the Owner, stating that a claim is being made under this Bond and enclosing a copy of the previous written notice furnished to the Contractor. 5 If a notice required by Paragraph 4 is given by the Owner to the Contractor or to the Surety, that is sufficient compliance. 6 When the Claimant has satisfied the conditions of Paragraph 4, the Surety shall and at the Surety's expense take the following actions: 6.1 Send an answer to the Claimant, with a copy to the Owner, within 45 days after receipt of the claim, stating the amounts that are undisputed and the basis for challenging any amounts that are disputed. 6.2 Pay or arrange for payment of any undisputed amounts. 7 The Surety's total obligation shall not exceed the amount of this Bond, and the amount of this Bond shall be credited for any payments made in good faith by the Surety. 8 Amounts owed by the Owner to the Contractor under the Construction Contract shall be used for the performance of the Construction Contract and to satisfy claims, if any, under any Construction Perfonnance Bond. By the Contractor furnishing and the Owner accepting this Bond, they agree that all funds earned by the Contractor in the performance of the Construction contract are dedicated to satisfY obligations of the Contractor and the Surety under this Bond, subject to the Owner's priority to use the funds for the completion of the work. 9 The Surety shall not be liable to the Ovmer, Claimants or others for obligations of the contractor that are unrelated to the Construction Contract. The Owner shall not be liable for payment of any costs or expenses of any Claimant under this Bond, and shall have under this bond no obligations to make payments to, give notices on behalf of, or othenvise have obligations to Claimants under this Bond. 10 The Surety hereby waives notice of any change, including changes of time, to the Construction Contract or to related subcontracts, purchase orders and other obligations. 11 No suit or action shall be commenced by a Claimant under this Bond other than in a court of competent jurisdiction in the location in which the work or part of the work is located or after the expiration of one year from the date on which the Claimant gave the notice required by Subparagraph 4.1 or Clause 4.2.3, or on which the last labor or service was performed by anyone or the last materials or equipment were furnished by anyone under the Construction contract, whichever of or first occurs. If the provisions of this Paragraph are void or prohibited by law, the minimum period of limitation available to sureties as a defense in the jurisdiction of the suit shall be applicable. 12 Notice to the Surety, the Owner or the Contractor shall be mailed or delivered to the address shown on the signature page . Actual receipt of notice by Surety, the Owner or the Contractor, however accomplished, shall be sufficient compliance as of the date received at the address shown on the signature page. 13 When this bond has been furnished to comply with a statutory or other legal requirement in the location where the construction was to be performed, any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted herefrorn and provisions conforming to such statutory or other legal requirement shall be deemed incorporated herein. The intent is that this Bond shall be construed as a statutory bond and not as a common law bond. 14 Upon request by any person or entity appearing to be a potential beneficiary of this Bond, the Contractor shall furnish a copy of this Bond or shall permit a copy to be made. 15 DEFINITIONS 15.1 Claimant: An individual or entity having a direct contract with the Contractor or with a subcontractor of the Contractor to furnish labor, materials or equipment for use in the performance of the Contract The intent of this Bond shall be to include without limitation in the terms 11labor, materials or equipment" that part of water, gas, power, light, heat, oil, gasoline, telephone service or rental equipment used in the Construction Contract, architectural and engineering services required for performance of the work of the Contractor and the Contractor's subcontractors, and all other items for which a mechanic's lien may be asserted in the jurisdiction where the labor, materials or equipment were furnished. 15.2 Construction Contract: The agreement between the Owner and the Contractor identified on the signature page, including all Contract Documents and changes thereto. 15.3 Owner Default: Failure of the Owner, which has neither been remedied nor waived, to pay the Contractor as required by the Construction Contract or to perform and complete or comply with the other terms thereof. S-2149GE 012008 Page2 of3 ---PAGE BREAK--- MODIFICATIONS TO THIS BOND ARE AS FOLLOWS: Sub paragraph 4.3 is added as follows: 4.3 Claimant has furnished to Surety proof of claim duly sworn to by Claimant, along with adequate supporting documentation which proves the amount claimed is due and payable. Paragraph 5 is amended as follows: 5 If a notice required by paragraph 4 is given by Owner to the Contractor and to the Surety, that is sufficient compliance. Paragraph 6 is deleted in its entirety and the following is substituted in its place: 6 When the Claimant has satisfied the conditions of Paragraph 4, and has submitted all supporting documentation and any proof of claim requested by the Surety, the Surety shall, within a reasonable period of time, notifY the Claimant of the amounts that are undisputed and the basis for challenging any amounts that are disputed, including, but not limited to, the lack of substantiating documentation to support the claim as to entitlement or amount, and the Surety shall, within a reasonable period of time, pay or make arrangements for payment of any undisputed amount; provided, however, that the failure of the Surety to timely discharge its obligations under this paragraph or to dispute or identifY any specific defense to all or any part of a claim shall not be deemed to be an admission of liability by the Surety as to such claim or otherwise constitute a waiver of the Contractor's or Surety defenses to, or right to dispute such claim. Rather, the Claimant shall have the immediate right, without further notice, to bring suit against the Surety to enforce any remedy available to it under this Bond. (Space is provided below for additional signatures of added parties, other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL SURETY Company: (Corporate Seal) Company: Signature:----------- Name and Title: Address: S-2149GE 012008 Signature: Name and Title: Address: Page 3 of 3 ---PAGE BREAK--- POWER Safeco Insurance Company of America General Insurance Company of America Safeco Plaza OF ATTORNEY Seattle, WA 98185 KNOW ALL BY THESE PRESENTS: 946 No. That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA, each a Washington corporation, does each hereby appoint -HEATHER ANDERSON; WM. DINNEEN; KATHY GURLEY; CHRIS lARSON; H. KEITH MCNALLY; JO ANN MIKKELSEN; GEORGE(. SCHROEDER; W. W. WELLER; Spokane, WA*uuJHIJIIHJU*I'*''n• 1 n 'H'*uu •unu u11gu*u its true and !awful attomey(s}..jn-fact, wUh tun authority to execute on its behalf fidelity and surety bonds or undertakings and other documents of a similar character issued in the course of its business, and to bind the respective company thereby. IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERtCA have each executed and attested these presents 7th January 2008 this day of STEPHANIE DALEY·WATSON,SECRETARY TIM MIKOLAJEWSKI, SENIOR VICE-PRESIDENT, SURETY CERTIACATE Ex!rnct from the By-Laws of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA: ÈArticle V, Section 13. • FIDELilY AND SURETY BONDS the President, any Vice President, the Secretary, and any Assistant Vice President appointed for that purpose by the officer in charge of surety operations, shall each have authority to appoint individuals as attomeysMinMfact or under other appropriate titles with authority to execute on behalf of the company fidelity and surety bonds and other documents of similar character issued by the company in the course of its business On any instrument making or evidencing such appointment, the signatures may be affixed by facsimile. On any instrument conferring such authority or on any bond or undertaking of the company, the seal, or a facsimile thereof, may be impressed or affixed or in any other manner reproduced; provided, however, that the seal shall not be necessary to the validity of any such instrument or undertaking." Extract from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA adopted JuD 28, 1970. Éon any .certificate executed by the Secretary or an assistant secretary of the Company setting out, The provisions of Article V, Section 13 of the By-Laws, and {ii) A copy of the power-of-attorney appointment, executed pursuant thereto, and (iii) Certifying that said power-of-attorney appointment is in full force and effect, the signature of the certifying officer may be by facsimile, and the sea! of the Company may be a facsimile thereof.È I, Stephanie Daley-Watson , Secretary of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA. do hereby certify that the foregoing extracts of the ByMLaws and of a Resolution of the Board of Directors of these corporations, and of a Power of Attomey issued pursuant thereto, are true and correct. and that both the By--Laws, the Resolution and the Power of Attorney are still in full force and effect. IN WITNESS WHEREOF, l have hereunto set my hand and affixed the facsimile seal of said corporation this 22nd day of May 2008 STEPHANIE DALEYǛWATSON, SECRETARY Safeco® and the Safeco iogo are registered trademarks of Safeco Corporation. S-0974/DS 4/05 WEB PDF ---PAGE BREAK--- ACORDm CERTIFICATE OF LIABILITY INSURANCE I DATE !MMIDD!YYI 05122/08 PRODUCER Wells Fargo Insurance Services I CAL#0531 007 601 W. Main Ave. Suite 1400 Spokane, WA 99201 - - - INSURED L & L Cargile, Inc. P.O. Box 11784 Spokane Valley WA 99211 COVERAGES [PHONE REDACTED] THIS CERTIFICATE IS ISSUED AS A MATTER DF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE \NSURER 'Ins. Co. iNSURER 8: 'NSURER C: INSURER D: INSURER E: · . . . THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WH!CH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PA!D CLAIMS. 'iNSJf' LTR TYPE OF INSURANCE A GENERAl LIABILITY ! rrrM GENERAL LIABILITY C i _ I, CLAIMS MADE l X. _i OCCUR ' . ! - , AGGREïǙ!.; LIMIT APPLIǘî PER· 1 -i PoucY · ! !Lee A ;-h-:OMOBilE LIABILITY ð---6 ; ANY AUTO A A ALL OWNED AUTOS r- SCHEDULED AUTOS HIRED AUTOS NON-OWNED AUTOS I GARAGE LIABILITY I : ANY AUTO EXCESS LIABILITY ocCUR DEDUCTiBlE RETENTION CLAIMS MADE $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY I I OTHER : POLICY NUMBER CWP249637925 CWP249637925 • . I CU2496382-24 CWP249637925 WA STOP GAP ONLY ' ;---lVj\Jttg%T-1 Pgi!feY45678J.:$ r - liMITS j 12131/07 1 2/31 /08 12131/07 12/31108 ' • 12/31107 • 12/31/08 • 12/31/07 ! 12/31/08 • . I EACH ' FfM MAIL DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, J@lt)f}(!)4XOC'(O(OO)("X!XX #$JWQ>ae%&I<)I()QJ\XXJ\)(i)(t)()(1X11Q')(1);)01-oo:>\)O)(X i<<-vnv CORPORATION 1988 ---PAGE BREAK--- IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy{ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s), DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer{s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD 25-S 17197) ---PAGE BREAK--- CWP 2496379 • 25 12/31/07 CMJ 01/15/08 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -OWNERS, LESSEES O R CONTRACTORS- COMPLETED OPERATIONS AUTOMATIC STATUS WHEN REQUIRED BY WRITTEN CONTRACT This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART Section II -Who Is An Insured is amended to include as an additional insured any person or organization for whom you are performing operations when you and such person or organization have agreed in writing in a contract or agreement that such person or organization be added as an additional insured on your policy. Such person or organization is an additional insured only with respect to "bodily injury" and "property damage" caused, in whole or in part, by "your work" at locations specified in the written contract or agreement and included in the "products-completed operations hazard". With respect to the insurance afforded to these additional insureds, this insurance does not apply to "bodily injury" or "property damage" that occurs prior to the execution of, or subsequent to the expiration of, the contract or agreement in which you agreed that such person or organization be added as an additional insured on your policy. CL CG 20 14 01 07 Includes copyrighted material of Insurance Services Offices, Inc., with its permission Page 1 of 1 ---PAGE BREAK--- CWP 2496379 - 25 12!31/07 CMJ 01/15!08 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. CONTRACTORS' COMM E RCIAL GENERAL LIABILITY ENHANCEMENT ENDORSEM ENT This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART A. MEDICAL PAYMENTS If SECTION 1 - COVERAGE C MEDICAL PAY MENTS is not otherwise excluded from this Coverage Part: 1. The Medical Expense Limit provided by this policy, subject to the terms of SECTION Ill - LIMITS OF INSURANCE, shall be the greater of: a. $10,000; or b. The Medical Expense Limit shown in the Declarations of this Coverage Part. B. FIRE, LIGHTNING, EXPLOSION, SMOKE AND SPRINKLER LEAKAGE DAMAGE TO PREM ISES YOU RENT If damage to premises rented to you under Cov erage A. is not otherwise excluded from this pol icy, the following applies: 1. The last paragraph of SECTION I - COV ERAGE A.2. Exclusions is deleted and re placed by the following: Exclusions c. through n. do not apply to damage by fire, lightning, explosion or sprin kler leakage to premises while rented to your or temporarily occupied by you with permis sion of the owner. A separate limit of insur ance applies to this coverage as described in SECTION Ill - LIMITS OF INSURANCE. 2. Paragraph 6. of SECTION Ill - LIMITS OF INSURANCE is deleted and replaced by the following: 6. Subject to 5. above, the greater of: a. $300,000; or b. the Damage To Premises Rented To You Limit shown in the Declara tions; is the most we will pay under COVER AGE A for damages because of "prop erty damage" to any one premises, while rented to you, or temporarily occupied by you with the permission of the owner arising out of any one fire, lightning, ex plosion or sprinkler leakage incident. 3. Paragraph 4.b.(1)(b) Other Insurance of SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS is deleted and re placed by the following: That is Fire, Lightning, Explosion or Sprinkler Leakage insurance for prem ises rented to you or temporarily occu pied by you with the permission of the owner; 4. Paragraph 9.a. of SECTION V - DEFINI TIONS is deleted and replaced by the follow ing: a. A contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or organization for damage by fire, lightning, explosion or sprinkler leakage to premises while rented to you or temporarily occupied by you with permission of the owner is not an "in sured contract"; C. NON-OWNED WATERCRAFT 1. Paragraph g.(2) of SECTION I - COVER AGE A.2. Exclusions is deleted and re placed by the following: A watercraft you do not own that is: Less than 51 feet long; and Not used to carry persons or property for a charge. D. SUPPLEMENTARY PAYMENTS SECTION I - SUPPLEMENTARY PAYMENTS - COVERAGES A AND B is amended as fol lows: 1. The limit of insurance in paragraph 1.b. is increased from $250 to $2,500; and 2. The limit of insurance in paragraph 1.d. is increased from $250 to $500. E. AUTOMATIC ADDITIONAL INSURED SPECIFIED RELATIONSHIPS The following is added to Paragraph 2. of SEC TION II - WHO IS AN INSURED: e. Any person or organization described in paragraph f. below, whom you and such per son or organization have agreed in writing in a contract or agreement that such person or organization be added as an additional in sured on your policy. CL CG 00 20 03 07 Includes copyrighted materia! of Insurance Services Office, lnc., with its permission Page 1 of 6 ---PAGE BREAK--- Such person or organization is an insured provided: The written or oral contract or agree ment is: Currently in effect or becomes effec tive during the policy period; and Executed prior to an "occurrence" or offense to which this insurance would apply. They are not specifically designated as an additional insured under any other provision of, or endorsement added to, this policy. f. Only the following persons or organizations are additional insureds under this endorse ment, and coverage provided to such addi tional insureds is limited as provided herein: The manager or lessor of a premise leased to you, but only with respect to li ability arising from the ownership, main tenance or use of that part of the prem ises leased to you and subject to the fol lowing additional exclusions: This insurance does not apply to: Any "occurrence" which takes place after you cease to be a tenant of that premises. Structural alterations, new construc tion or demolition operations per formed by or on behalf of the man ager or lessor. Any person or organization from whom you lease equipment, but only with re spect to liability for "bodily injury", "prop erty damage" or "personal and advertis ing injury" caused, in whole or in part, by your maintenance, operation or use of equipment leased to you by such per son(s) or organization(s). However, this insurance does not apply to any "occurrence" which takes place after the equipment lease expires. Any state or political subdivision, subject to the following additional provision: This insurance applies only with respect to the following hazards lor which the state or political subdivision has issued a permit in connection with premises you own, rent, or control and to which this in surance applies: The existence, maintenance, repair, construction, erection, or removal of advertising signs, awnings, cano pies, cellar entrances, coal holes, driveways, manholes, marquees, hoist away openings, sidewalk vaults, street banners, or decora tions and similar exposures; or The construction, erection, or re moval of elevators; or The ownership, maintenance, or use of any elevators. F. ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS - AUTOMATIC STATUS 1. SECTION II - WHO IS AN INSURED is amended to include as an additional insured any person or organization for whom you are performing operations when you and such person or organization have agreed in writ ing in a contract or agreement that such per son or organization be added as an addi tional insured on your policy. Such person or organization is an additional insured only with respect to liability for "bodily injury'', "property damage" or "personal and adver tising injury" caused, in whole or in part, by: a. Your acts or omissions; or b. The acts or omissions of those acting on your behalf; in the performance of your ongoing opera tions for the additional insured. A person's or organization's status as an ad ditional insured under this policy ends when your operations for that additional insured are completed. 2. With respect to the insurance afforded to these additional insureds, the following addi tional exclusions apply: This insurance does not apply to: a. "Bodily injury'', "property damage" or "personal and advertising injury'' arising out of the rendering of, or the failure to render, any professional architectural, engineering or surveying services, in cluding: The preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or draw ings and specifications; or Supervisory, inspection, architec tural or engineering activities. b. "Bodily injury" or "property damage" occurring after: All work, including materials, parts or equipment furnished in connec tion with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered opera tions has been completed; or That portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcon tractor engaged in performing op erations for a principal as a part of the same project. CL CG 00 20 03 07 Includes copyrighted material of Insurance Services Office, Inc., with its permission Page 2 of 6 ---PAGE BREAK--- ·.:lfi: 3. The insurance provided by this endorsement is primary insurance and we will not seek contribution under any insurance policy un der which such additional insured is a named insured, if such policy was procured and paid for by such additional insured, or a parent or related entity of such additional in sured. 4. With respect to the insurance afforded to these additional insureds. SECTION Ill - LIMITS OF INSURANCE is amended as fol lows: The limits applicable to the additional in sured are those specified in the written con tract or agreement or the limits stated in the Declarations. whichever is less. If no limits are specified in the written contract or agreement, the limits applicable to the addi tional insured are those specified in the Dec larations. The lim its of insurance are inclu sive of and not in addition to the limits of in surance shown in the Declarations. G. PROPERTY DAMAGE TO BORROWED EQUIPMENT 1 . Paragraph 2.j. of SECTION I - COVER AGES, COVERAGE A BODILY INJURY AND PROPERTY DAMAGE LIABILITY is amended as follows: Paragraphs and of this exclusion do not apply to tools or equipment loaned to you, provided they are not being used to per form operations at the time of loss. 2. SECTION Ill - LIMITS OF INSURANCE is deleted and replaced by the following: The most we will pay in any one "occur rence" for "property damage" to borrowed equipment is $1 5,000. This limit of insur ance is the most we will pay regardless of the number of: a. Insureds; b. Claims made or "suits" brought; or c. Persons or organizations making claims or bringing "suits". 3. Deductible a. Our obligation to pay damages on behalf of the insured applies only to the amount of damages in excess of $250 as appli cable to "property damage" as the result of any one "occurrence", regardless of the number of persons or organizations who sustain damages because of that "occurrence". b. The terms of this insurance, including those with respect to our right and duty to defend the insured against any "suits" seeking those damages; and your duties in the event of an "occurrence", claim, or "suit" apply irrespective of the application of the deductible amount. c. We may pay any part or all of the de ductible amount to effect settlement of any claim or suit and, upon notification of the action taken; you shall reimburse us for such part of the de ductible amount as we have paid. H. BROADENED NAMED INSURED Paragraph 3. of SECTION II - WHO IS AN IN SURED is deleted and replaced by the following: Any organization, other than a joint venture. over which you maintain ownership or majority inter est of more than 50% will be a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only u ntil the 1 80th day after you acquire or form the organization or the end of the policy period, whichever is earlier. b. COVERAGE A does not apply to "bodily in jury" or "property damage" that occurred be fore you acquired or formed the organiza tion. c. COVERAGE B does not apply to "personal and advertising injury" arising out of an of fense committed before you acquired or formed the organization. CONSTRUCTION PROJECT GENERAL AG GREGATE LIMIT 1. For all sums which the insured becomes legally obligated to pay as damages caused by "occurrences" under COVERAGE A (SECTION and for all medical expenses caused by accidents under COVERAGE C (SECTION which can be attributed only to ongoing operations at a single construction project away from premises owned by or rented to the insured: a. A Single Construction Project General Aggregate Limit applies to each con struction project away from premises owned by or rented to the insured, and that limit is equal to the amount of the General Aggregate Limit shown in the Declarations. b. The Single Construction Project General Aggregate Limit is the most we will pay for the sum of all damages under COV ERAGE A, except damages because of "bodily injury" or "property damage" in cluded in the "products-completed op erations hazard", and for medical ex penses under COVERAGE C regardless of the number of: (1 ) Insureds; Claims made or "suits" brought; or Persons or organizations making claims or bringing "suits". CL CG 00 20 03 07 Includes copyrighted materia! of Insurance Services Office, Inc., with its permission Page 3 of 6 ---PAGE BREAK--- c. Any payments made under COVERAGE A for damages or under COVERAGE C for medical expenses shall reduce the Single Construction Project General Ag gregate Limit for that construction pro ject away from premises owned by or rented to the insured. Such payments shall not reduce the General Aggregate Limit shown in the Declarations nor shall they reduce any other Single Construc tion Project General Aggregate limit for any other separate construction project away from premises owned by or rented to the insured. d. The limits shown in the Declarations for Each Occurrence, Fire Damage and Medical Expense continue to apply. However, instead of being subject to the General Aggregate Limit shown in the Declarations, such limits will be subject to the applicable Single Construction Project General Aggregate Limit. 2. For all sums which the insured becomes legally obligated to pay as damages caused by "occurrences" under COVERAGE A (SECTION and for all medical expenses caused by accidents under COVERAGE C (SECTION which cannot be attributed only to ongoing operations at a single desig nated construction project away from prem ises owned by or rented to the insured: a. Any payments made under COVERAGE A for damages or under COVERAGE C for medical expenses shall reduce the amount available under the General Ag gregate Limit or the Products-Completed Operations Aggregate Limit, whichever is applicable; and b. Such payments shall not reduce any Single Construction Project General Ag gregate Limit. 3. When coverage for liability arising out of the "products-completed operations hazard" is provided, any payments for damages be cause of "bodily injury" or "property damage" included in the "products-completed opera tions hazard" will reduce the Products Completed Operations Aggregate Limit, and not reduce the General Aggregate Lim tt nor the Single Construction Project General Ag gregate Limit. 4. If the applicable construction project away from premises owned by or rented to the in sured has been abandoned, delayed, or abandoned and then restarted, or if the au thorized contracting parties deviate from plans, blueprints, designs, specifications or timetables, the project will still be deemed to be the same construction project. 5. The provisions of Limits Of Insurance (SECTION Ill) not otherwise modified by this endorsement shall continue to apply as stipulated. J. KNOWLEDGE OF OCCURRENCE The following is added to paragraph 2. Duties In The Event Of Occurrence, Offense, Claim Or Suit of SECTION IV - COMMERCIAL GEN ERAL LIABILITY CONDITIONS: e. A report of an "occurrence", offense, claim or "suit" to: You, if you are an individual, A partner, if you are a partnership, An executive officer, if you are a corporation, or A manager, if you are a limited liability company; is considered knowledge and requires you to notify us of the "occurrence", offense, claim, or "suit" as soon as practicable. f. We are considered on notice of an "occurrence", offense, claim or "suit" that is reported to your Workers' Compensation insurer for an event which later develops into an "occurrence", offense, claim or "suit" for which there is coverage under this policy. However, we will only be considered on notice if you notify us as soon as you know the claim should be addressed by this policy rather than your Workers' Compensation policy. K. UNINTENTIONAL OMISSIONS The following is added to paragraph 6. Repre· sentations of SECTION IV • COMMERCIAL GENERAL LIABILITY CONDITIONS: d. If you unintentionally fail to disclose any ex posures existing at the inception date of your policy, we will not deny coverage u nder this Coverage Part solely because of such failure to disclose. However, this provision does not affect our right to collect additional pre mium or exercise our right of cancellation or non-renewal. This provision does not apply to any known injury or damage which is excluded under any other provision of this policy. L. MENTAL ANGUISH M. Paragraph 3. of SECTION V - DEFINITIONS is deleted and replaced by the following: 3. "Bodily injury" means bodily injury, sickness or disease sustained by a person, including mental anguish or death resulting from any of these at any time. WAIVER OF TRANSFER OF RIGHTS OF RE· COVERY AGAINST OTHERS Paragraph 8. Transfer Of Rights Of Recovery Against Others To Us of SECTION IV - COM· MERCIAL GENERAL LIABILITY CONDITIONS is amended by the addition of the following: CL CG 00 20 03 07 Includes copyrighted material of Insurance Services Office, !nc., with its permission Page 4 of 6 ---PAGE BREAK--- We waive any right of recovery we may have be cause of payments we make for injury or dam age arising out of your ongoing operations or "your work" done under a contract requiring such waiver with that person or organization and in cluded in the "products-completed operations hazard". However, our rights may only be waived prior to the "occurrence" giving rise to the injury or dam age for which we make payment under this Cov erage Part. The insured must do nothing after a loss to impair our rights. At our request, the in sured will bring "suit" or transfer those rights to us and help us enforce those rights. N. LIMITED JOB SITE POLLUTION 1. Exclusion f. under Section I - Coverage A is replaced by the following: 2. Exclusions This insurance does not apply to: f. Pollution "Bodily injury'' or "property dam age" arising out of the actual, al leged or threatened discharge, dispersal, seepage, migration, release or escape of "pollut ants": At or from any premises, site or location on which any insured or any contractors or subcontractors working directly or indirectly on any insured's behalf are per forming operations if the operations are to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way re spond to, or assess the ef fects of, "pollutants"; or At or from a storage tank or other container, ducts or piping which is below or par tially below the surface of the ground or water or which, at any time, has been buried under the surface of the ground or water and then subsequently exposed by erosion, excavation or any other means if the ac tual, alleged or threatened discharge, dispersal, seep age, migration, release or escape of "pollutants" arises at or from any premises, site or location which any in sured or any contractors or subcontractors working di rectly or indirectly on any in sured's behalf are perform ing operations if the "pollut ants" are brought on or to the premises, site or loca tion in connection with such operations by such insured, contractor or subcontractor. Subparagraph does not apply to "bodily injury' or "property damage" arising out of heat, smoke or fumes from a "hostile fire". Any loss, cost or expense aris ing out of any: Request, demand, order or statutory or regulatory re quirement issued or made pursuant to any environ mental protection or envi ronmental liability statutes or regulations that any insured test for, monitor, clean up, remove, contain, treat, de toxify or neutralize, or in any way respond to, or assess the effects of, "pollutants"; or Claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, con taining, treating, detoxifying or neutralizing or in any way responding to or assessing the effects of, "pollutants". However, this paragraph does not apply to liability for those sums the insured becomes le gally obligated to pay as dam ages because of "property dam age" that the insured would have in the absence of such re quest, demand, order or statu tory or regulatory requirement, or such claim or "suit" by or on behalf of a governmental author ity. 2. With respect to "bodily injury'' or "property damage" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants": a. The "Each Occurrence Limit" shown in the Declarations does not apply. b. Paragraph 7. of Limits Of Insurance (Section Ill) does not apply. c. Paragraph 1. of Section Ill - Limits Of Insurance is replaced by the following: The Limits Of Insurance shown in this endorsement, or in the Declarations and the rules below fix the most we will pay regardless of the number of: Insureds; CL CG 00 20 03 07 Includes copyrighted material of Insurance Services Office, tnc., with its permission Page 5 of 6 ---PAGE BREAK--- Claims made or "suits" brought; or Persons or organizations making claims or bringing "suits". d. The following are added to Section 111 - Limits Of Insurance: 8. Subject to 2. or 3. above, whichever applies, the most we will pay for the sum of: a. Damages under Coverage A; and b. Medical expenses under Cover- age e because of "bodily injury" or "prop erty damage" arising out of the ac tual, alleged or threatened dis charge, dispersal, seepage, migra tion, release or escape of "pollut ants" is $100,000. 9. Subject to 8. above, the Medical Expense Limit is the most we will pay under Coverage C for all medi cal expenses because of "bodily in jury" sustained by any one person arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or es cape of "pollutants". g0. OTHER INSURANCE If this policy includes a Coverage Form or an Endorsement which provides coverage for loss or damage covered by one or more of the Ex tensions of this endorsement, the limit and the coverage provided by this endorsement are de leted and replaced by the lim it and coverage provided by that Coverage Form or Endorse ment. CL CG 00 20 03 07 Includes copyrighted materia! of Insurance Services Office, lnc., with its permission Page 6 of 6 ---PAGE BREAK--- C01Vl:MERCIAL AUTO THIS El\'DORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL IlfSURED DESIGNATED PERSON OR ORGA.l\TIZATION This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE PART GARP.GE COVERAGE PART TRUCKERS COVERAGE PART SCHEDULE Name of P erson or Organization: AS NAMED IN THE C ON TRAC T AGREEMENT a . The person or organization shown in the Schedule i s included as an insured but only if liable for the conduct of an "Insured" and only to the extent of that liability. b. CANCELLATION . . If we cancel the policy, we will mail notice to such person or organization iJ accordance \Vitb the Commcn Policy Condition. · 2 . If you cancel the policy, we will mail notice to such person o r organization. 3 . Cancellation ends this agreement. Includes cop):ri g1Yed rnaterlcl of bsurc.nce Ser-vices Office, Inc. ·,;•itb jts permissi::-,n. Copy!igbt,. Ser-dces Offce, be., 1 98 8 CL!CA 9 9 0 9 J O 90