00017940 Sample PI Contract.docx

ATTACHMENT B

SAMPLE PUBLIC IMPROVEMENT CONTRACT

FOR BIDDERS: Do not submit this Attachment B with your Bid. It is a sample of the resulting Contract between the Parties. The sample will be modified by ODOT into the final Contract document that will be sent to the Awarded Bidder for signature after ODOT confirms all required submittals have been received.

STATE OF OREGON PUBLIC IMPROVEMENT CONTRACT

for Middle Mountain – Ice Canopies Installation Project

PO-73000-00000000

This Public Improvement Contract for Middle Mountain – Ice Canopies Installation Project (the "Contract"), made by and between the State of Oregon, acting by and through the Department of Transportation, hereinafter called the Owner, and [contractor] hereinafter called the Contractor (collectively the “Parties”), is effective on the date this Contract has been signed by all the Parties and all required State of Oregon governmental approvals have been obtained. Unless otherwise defined in the Invitation to Bid or in this Contract, the capitalized terms used herein are defined in Section A.1 of the State of Oregon General Conditions for Public Improvement Contracts.

1. Contract Price The Contractor, in consideration of the sum of $[XX] (the “Contract Price”), to be paid to the Contractor by Owner in the manner and at the time hereinafter provided, and subject to the terms and conditions provided for in the Invitation to Bid, this Public Improvement Contract and other Contract Documents, all of which are incorporated herein by reference, hereby agrees to perform all Work described and reasonably inferred from the Contract Documents.

The Contract Price includes all items listed in the table below. All Work described in the Contract Documents but not specifically itemized in Exhibit 1 or in the table below is considered incidental to the Work, and Contractor agrees to furnish all necessary plant, labor, equipment, accessories, materials, permits, and perform all other incidental Work at no additional cost to the Agency.

Total Price

2. Representatives Unless otherwise specified in the Contract Documents, the Owner designates Gabriel Rendon as its Authorized Representative in the administration of this Contract. The above-named individual shall be the initial point of contact for matters related to performance, payment, and authorization, and to carry out the responsibilities of the Owner. Contractor has named [insert] its Authorized Representative to act on its behalf.

Owner’s Authorized Representative Contact Information:

email: Gabriel.RENDON@odot.oregon.gov / phone: 971.283.5725__________________

Contractor’s Authorized Representative Contact Information:

email: / phone: __________________

3. Contract Dates

4. Liquidated Damages Failure to complete the Project known as Middle Mountain – Ice Canopies Installation Project by the specified time will result in damage to the State of Oregon. Since actual damage will be difficult to determine, it is agreed that the Contractor shall pay to the State of Oregon, not as a penalty but as liquidated damages, $600.00 per calendar day for each day elapsed in excess of the Substantial Completion date stated in Section 3 of this Contract.

5. Exhibits The following exhibits are incorporated into this Contract by this reference. Contractor must utilize and comply with these documents and requirements in its performance of this Contract. The versions of the exhibits set forth herein replace any versions included in or as attachments to the ITB.

EXHIBIT 1 RESERVED

EXHIBIT 2 STATE OF OREGON PERFORMANCE BOND

EXHIBIT 3 STATE OF OREGON PAYMENT BOND

EXHIBIT 4 STATE OF OREGON GENERAL CONDITIONS FOR PUBLIC IMPROVEMENT CONTRACTS, SUPPLEMENTAL GENERAL CONDITIONS, CONTRACT CLOSEOUT COMPLIANCE CHECKLIST

6. Prevailing Wage Rates This Contract is subject to the Oregon Bureau of Labor and Industries (“BOLI”) prevailing wage rates and apprenticeship rates (and any applicable amendments) in effect as of the date the Project was first advertised, which while not physically attached, are available in the following publications at the website listed below and incorporated herein by reference with the same force and effect as though fully set forth herein:

BOLI Prevailing Wage Rates for Public Works Contracts, dated September 3rd, 2026

PWR Prevailing Wage Apprenticeship Rates, in effect September 3rd, 2026

These BOLI wage rates are available at: https://www.oregon.gov/boli/employers/Pages/prevailing-wage-rates.aspx.

The Work will take place in Hood River, BOLI Region 9

7. Certifications

a. Prevention of Sexual Harassment, Sexual Assault, and Discrimination. Contractor certifies, in accordance with ORS 279A.112, that it has in place a policy and practice of preventing sexual harassment, sexual assault, and discrimination against employees who are members of a "protected class" As a material term and condition of this Contract, Contractor must maintain, throughout the duration of this Contract, a policy and practice that complies with ORS 279A.112, including, but not limited to, giving employees written notice of the Contractor's policy and practice.

b. Discrimination in Subcontracting Prohibited (ORS 279A.110). Contractor certifies that it has not discriminated and will not discriminate against any disadvantaged business enterprise, minority-owned business, women-owned business, emerging small business, or business that a veteran owns, in obtaining any required subcontracts. Failure to do so shall be grounds for disqualification.

c. Debt. Contractor certifies that Contractor has no undisclosed liquidated and delinquent debt owed to the State or any department or agency of the State.

d. Subcontracts. Contractor certifies that all Subcontractors performing Work subject to the licensing requirement in ORS Chapter 701 will be licensed with the Construction Contractors Board or licensed by the State Landscape Contractors Board (as applicable) before the Subcontractors commence Work under the Contract.

8. RESERVED

9. Integration THE CONTRACT, WHICH INCLUDES THIS CONTRACT AND THE REMAINING CONTRACT DOCUMENTS, CONSTITUTES THE ENTIRE CONTRACT BETWEEN THE PARTIES. NO WAIVER, CONSENT, MODIFICATION, OR CHANGE OF TERMS OF THE CONTRACT SHALL BIND EITHER PARTY UNLESS IN WRITING AND SIGNED BY BOTH PARTIES. SUCH WAIVER, CONSENT, MODIFICATION OR CHANGE, IF MADE, SHALL BE EFFECTIVE ONLY IN THE SPECIFIC INSTANCE AND FOR THE SPECIFIC PURPOSE GIVEN. THERE ARE NO OTHER UNDERSTANDINGS, AGREEMENTS, OR REPRESENTATIONS, ORAL OR WRITTEN, NOT SPECIFIED HEREIN REGARDING THE CONTRACT. CONTRACTOR, BY THE SIGNATURE BELOW OF ITS AUTHORIZED REPRESENTATIVE, HEREBY ACKNOWLEDGES THAT IT HAS READ THIS CONTRACT AND THE REST OF THE CONTRACT DOCUMENTS, UNDERSTANDS THEM, AND AGREES TO BE BOUND BY THE TERMS AND CONDITIONS OF THIS CONTRACT AND THE REMAINING CONTRACT DOCUMENTS.

Agreed to and Signed by:

CONTRACTOR:

(Legal Business Name)

(Address)

(Contractor’s CCB#) (Expiration Date)

(Authorized Representative Name) (Title)

(Authorized Representative Signature) (Date)

STATE OF OREGON

State of Oregon by and through its Department of Transportation

Procurement Authority:

(Authorized Representative Signature) (Date)

Expenditure Authority:

Expenditure Authority received via OregonBuys on 09/03/2026 (Authorized Representative Signature) (Date)

EXHIBIT 1

RESERVED

EXHIBIT 2

Form C019-DOJ051226R1

STATE OF OREGON PERFORMANCE BOND FORM

Public Improvement Contract – DOJ Approved (05/12/2026)

ITB Number – [S-73000-00017940] [Middle Mountain – Ice Canopies Installation Project] 1

Public Improvement Contract – DOJ Approved (05/12/2026)

ITB Number – [S-73000-00017940] [Middle Mountain – Ice Canopies Installation Project] 2

PERFORMANCE BOND

Bond No.:

Solicitation:

Project Name:

We, ________________________________, as Principal, and the above identified Surety(ies), authorized to transact surety business in Oregon, as Surety, hereby jointly and severally bind ourselves, our respective heirs, executors, administrators, successors and assigns firmly by these presents to pay unto the State of Oregon the sum of (Total Penal Sum of Bond) $___________________ (Provided, that we the Sureties bind ourselves in such sum “jointly and severally” as well as “severally” only for the purpose of allowing a joint action or actions against any or all of us, and for all other purposes each Surety binds itself, jointly and severally with the Principal, for the payment of such sum only as is set forth opposite the name of such Surety), and

WHEREAS, the Principal has entered into a contract with the State of Oregon, the plans, specifications, terms and conditions of which are contained in the above-referenced Solicitation;

WHEREAS, the terms and conditions of the contract, together with applicable plans, standard specifications, special provisions, schedule of performance, and schedule of contract prices, are made a part of this Performance Bond by reference, whether or not attached to the contract (all hereafter called “Contract”); and

WHEREAS, the Principal has agreed to perform the Contract in accordance with the terms, conditions, requirements, plans and specifications, and all authorized modifications of the Contract which increase the amount of the work, the amount of the Contract, or constitute an authorized extension of the time for performance, notice of any such modifications hereby being waived by the Surety:

NOW, THEREFORE, THE CONDITION OF THIS BOND IS SUCH that if the Principal herein shall faithfully and truly observe and comply with the terms, conditions and provisions of the Contract, in all respects, and shall well and truly and fully do and perform all matters and things undertaken by Contractor to be performed under the Contract, upon the terms set forth therein, and within the time prescribed therein, or as extended as provided in the Contract, with or without notice to the Sureties, and shall indemnify and save harmless the State of Oregon, the Oregon Transportation Commission, the Oregon Department of Transportation and their respective members, officers, agents and employees, against any direct or indirect damages or claim of every kind and description that shall be suffered or claimed to be suffered in connection with or arising out of the performance of the Contract by the Principal or its subcontractors, and shall in all respects perform said contract according to law, then this obligation is to be void; otherwise, it shall remain in full force and effect.

Nonpayment of the bond premium will not invalidate this bond nor shall the State of Oregon, the Oregon Transportation Commission or the Oregon Department of Transportation, be obligated for the payment of any premiums.

This bond is given and received under authority of ORS Chapter 279C, the provisions of which hereby are incorporated into this bond and made a part hereof.

IN WITNESS WHEREOF, WE HAVE CAUSED THIS INSTRUMENT TO BE EXECUTED AND SEALED BY OUR DULY AUTHORIZED LEGAL REPRESENTATIVES.

Dated this ________________ day of _______________, 20____.

PRINCIPAL:

SURETY:

Surety’s Seal

SURETY: [Add signatures for each surety if using multiple bonds]

EXHIBIT 3

STATE OF OREGON PAYMENT BOND FORM

Page - 1 - of 51

PAYMENT BOND

Bond No.:

Solicitation:

Project Name:

We, ________________________________, as Principal, and the above identified Surety(ies), authorized to transact surety business in Oregon, as Surety, hereby jointly and severally bind ourselves, our respective heirs, executors, administrators, successors and assigns firmly by these presents to pay unto the State of Oregon the sum of (Total Penal Sum of Bond) $__________________ (Provided, that we the Sureties bind ourselves in such sum “jointly and severally” as well as “severally” only for the purpose of allowing a joint action or actions against any or all of us, and for all other purposes each Surety binds itself, jointly and severally with the Principal, for the payment of such sum only as is set forth opposite the name of such Surety), and

WHEREAS, the Principal has entered into a contract with the State of Oregon, the plans, specifications, terms and conditions of which are contained in above-referenced Solicitation;

WHEREAS, the terms and conditions of the contract, together with applicable plans, standard specifications, special provisions, schedule of performance, and schedule of contract prices, are made a part of this Payment Bond by reference, whether or not attached to the contract (all hereafter called “Contract”); and

WHEREAS, the Principal has agreed to perform the Contract in accordance with the terms, conditions, requirements, plans and specifications, and schedule of contract prices which are set forth in the Contract and any attachments, and all authorized modifications of the Contract which increase the amount of the work, or the cost of the Contract, or constitute authorized extensions of time for performance of the Contract, notice of any such modifications hereby being waived by the Surety:

NOW, THEREFORE, THE CONDITION OF THIS BOND IS SUCH that if the Principal shall faithfully and truly observe and comply with the terms, conditions and provisions of the Contract, in all respects, and shall well and truly and fully do and perform all matters and things by it undertaken to be performed under said Contract and any duly authorized modifications that are made, upon the terms set forth therein, and within the time prescribed therein, or as extended therein as provided in the Contract, with or without notice to the Sureties, and shall indemnify and save harmless the State of Oregon, the Oregon Transportation Commission, the Oregon Department of Transportation and their respective members, officers, agents and employees, against any claim for direct or indirect damages of every kind and description that shall be suffered or claimed to be suffered in connection with or arising out of the performance of the Contract by the Contractor or its subcontractors, and shall promptly pay all persons supplying labor, materials or both to the Principal or its subcontractors for prosecution of the work provided in the Contract; and shall promptly pay all contributions due the State Industrial Accident Fund and the State Unemployment Compensation Fund from the Principal or its subcontractors in connection with the performance of the Contract; and shall pay over to the Oregon Department of Revenue all sums required to be deducted and retained from the wages of employees of the Principal and its subcontractors pursuant to ORS 316.167, and shall permit no lien nor claim to be filed or prosecuted against the State on account of any labor or materials furnished; and shall do all things required of the Principal by the laws of this State, then this obligation shall be void; otherwise, it shall remain in full force and effect.

Nonpayment of the bond premium will not invalidate this bond nor shall the State of Oregon, the Oregon Transportation Commission, or the Oregon Department of Transportation, be obligated for the payment of any premiums.

This bond is given and received under authority of ORS Chapter 279C, the provisions of which hereby are incorporated into this bond and made a part hereof.

IN WITNESS WHEREOF, WE HAVE CAUSED THIS INSTRUMENT TO BE EXECUTED AND SEALED BY OUR DULY AUTHORIZED LEGAL REPRESENTATIVES:

Dated this _______________ day of ______________, 20______.

PRINCIPAL:

SURETY:

Surety’s Seal

SURETY: [Add signatures for each surety if using multiple bonds]

EXHIBIT 4

STATE OF OREGON GENERAL CONDITIONS, SUPPLEMENTAL GENERAL CONDITIONS, CONTRACT CLOSEOUT COMPLIANCE CHECKLIST

The STATE OF OREGON GENERAL CONDITIONS FOR PUBLIC IMPROVEMENT CONTRACTS (“General Conditions”) dated January 1, 2012, which although not physically attached, are incorporated herein by reference with the same force and effect as though fully set forth herein. The General Conditions can be obtained on line at: http://www.oregon.gov/das/Procurement/Guiddoc/GenCon4PI.pdf

Supplemental General Conditions Project Name: Middle Mountain – Ice Canopies Installation Project

For the above referenced Project, the following supplemental general conditions modify the General Conditions. Where a portion of the General Conditions is modified or deleted by these Supplemental General Conditions, the unaltered portions of the General Conditions shall remain in effect.

SGC-1 In Sections A.1 and A.3.1, change “State of Oregon Public Improvement Agreement Form” to “State of Oregon Public Improvement Contract.”

SGC-2 Delete the order of precedence list in Section A.3.1 and replace it with the following descending order of precedence list:

1. Contract amendments and Change Orders, with those of later date having precedence over those of an earlier date;

2. The State of Oregon Public Improvement Contract;

3. The Supplemental General Conditions;

4. The General Conditions

5. The Plans and Specifications;

6. The Solicitation Document and any addenda thereto;

7. The accepted Offer.

SGC-3 Add the following new Sections A.3.5 and A.3.6 after A.3.4 under INTERPRETATION OF CONTRACT DOCUMENTS:

A.3.5 Items not indicated in the Plans and Specifications that can be legitimately and reasonably inferred to complete the Work must be furnished by the Contractor as though they were detailed in the Plans and Specifications.

A.3.6 The characterization of provisions of the Contract as material provisions or the failure to comply with certain provisions as a material breach of the Contract shall in no way be construed to mean that any other provisions of the Contract are not material or that failure to comply with any other provisions is not a material breach of the Contract.

A.3.7 Electronic Signatures. Contractor and Owner agree that signatures showing on PDF documents, including but not limited to PDF copies of the Contract, bonds, Change Orders and amendments, submitted or received via email, when submittal or receipt in that manner is required or allowed by Owner are “Electronic Signatures” under ORS Chapter 84 and bind the signing party and are intended to be and can be relied upon by the parties. Owner reserves the right at any time to require Contractor to deliver the hard copy originals of any documents.

SGC-4 Add the following after Section A.7 GOVERNMENT EMPLOYMENT STATUS:

A.8 TITLE VI NON-DISCRIMINATION PROVISIONS

During the performance of the Contract, Contractor, for itself, its assignees, and its successors in interest (hereinafter referred to as the “Contractor”) agrees as follows:

a. Compliance with Regulations: Contractor shall comply with the regulations relative to nondiscrimination in federally-assisted programs of the Department of Transportation Title 49, Code of Federal Regulations, Part 21, as they may be amended from time to time, (hereinafter referred to as the Regulations), which are herein incorporated by reference and made a part of the Contract.

b. Nondiscrimination: Contractor, with regard to the Work performed by it during the Contract, shall not discriminate on the grounds of race, color, sex, or national origin in the selection and retention of Subcontractors, including procurements of materials and leases of equipment. Contractor shall not participate either directly or indirectly in the discrimination prohibited by section 21.5 of the Regulations, including employment practices when the Contract covers a program set forth in Appendix B of the Regulations.

c. Solicitations for Subcontracts, Including Procurements of Materials and Equipment: In all solicitations either by competitive bidding or negotiation made by Contractor for work to be performed under a subcontract, including procurements of materials or leases of equipment, each potential Subcontractor or supplier shall be notified by Contractor of Contractor’s obligations under the Contract and the Regulations relative to nondiscrimination on the grounds of race, color, sex, or national origin.

d. Information and Reports: Contractor shall provide all information and reports required by the Regulations, or directives issued pursuant thereto, and shall permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by ODOT, FHWA or the Federal Transit Administration (“FTA”) as appropriate, to be pertinent to ascertain compliance with such Regulations, orders and instructions. Where any information required of Contractor is in the exclusive possession of another who fails or refuses to furnish this information, Contractor shall so certify to ODOT, FHWA or FTA as appropriate, and shall set forth what efforts it has made to obtain the information.

e. Sanctions for Noncompliance: In the event of Contractor’s noncompliance with the nondiscrimination provisions of the Contract, ODOT shall impose such Contract sanctions as ODOT, FHWA or FTA may determine to be appropriate, including, but not limited to:

(i) Withholding of payments to Contractor under the Contract until Contractor complies, and/or

(ii) Cancellation, termination or suspension of the Contract, in whole or in part.

f. Incorporation of Provisions: Contractor shall include the provisions of paragraphs (a) through (e) in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Regulations, or directives issued pursuant thereto. Contractor shall take such action with respect to any subcontract or procurement as ODOT of the federal government may direct as a means of enforcing such provisions including sanctions for non-compliance: Provided, however, that, in the event Contractor becomes involved in, or is threatened with, litigation with a Subcontractor or supplier as a result of such direction, Contractor may request ODOT, and, in addition, Contractor may request the United States to enter into such litigation to protect the interests of the United States.

SGC-5 Add the following at the end of Section B.3 MATERIALS AND WORKMANSHIP:

B.3.6 Material requiring weighing to be weighed by scale. Allowable scales with Engineer’s approval are commercial vehicle weigh scales, plant automatic weight batching and mixing control printer system, or plant weight hopper printer system.

Pay Items to be measured by weight shall include all Contractor costs for furnishing appropriate weight tickets and transporting Materials to the scales or to check weighing.

The scales shall conform to ORS 618, and NIST Handbook 44, and shall be:

The Owner may periodically have a representative at the scales to observe the weighing procedures.

SGC-6 Make the following revisions to Section B.5 COMPLIANCE WITH GOVERNMENT LAWS AND REGULATIONS:

· Add the following to the end of Section B.5.1:

As required by ORS 279C.520, the Contractor must comply with the prohibitions set forth in ORS 652.220, and shall not discriminate against any of Contractor’s employees in the payment of wages or other compensation for work of comparable character, the performance of which requires comparable skills, or pay any employee at a rate less than another for comparable work, based on an employee’s membership in a “protected class”. For purposes of this provision, a “protected class” means a group of persons distinguished by race, color, religion, sex, sexual orientation, gender identity, national origin, marital status, veteran status, disability or age. Contractor’s failure to comply with these requirements is a breach of the Contract that entitles the Owner to terminate the Contract for cause.

Compliance with ORS 279C.520 includes, but is not limited to, not prohibiting employees from discussing wages, salaries, benefits and other compensation, and compliance with the wage related prohibitions in ORS 652.220. Compliance with ORS 279C.520 and ORS 652.220 is a material element of the Contract, and Contractor’s failure to comply is a breach of the Contract that entitles the contracting agency to terminate the Contract for cause.

All rights and remedies available to Owner under applicable federal, state and local laws are also incorporated by reference herein and are cumulative with all rights and remedies under the Contract.

· Section B.5.2(a) is deleted and replaced with the following:

(a) Pursuant to ORS 279A.110, Contractor shall not discriminate against a disadvantaged business enterprise, a minority-owned business, a woman-owned business, a veteran-owned business or an emerging small business, in the awarding of subcontracts.

· The following Section B.5.2(c) is added:

(c) Respecting certification as a disadvantaged business enterprise, minority-owned business, woman-owned business, business that a veteran-owned business or an emerging small business under ORS 200.055, as and when applicable, Contactor shall maintain the certification and require in its subcontracts that Subcontractors maintain the certification required by ORS 279A.107. Owner may require Contractor to terminate a subcontract with a Subcontractor that fails to maintain its certification under ORS 200.055 throughout the term of the subcontract and any extensions.

· The following Section B.5.2(d) is added:

(d) It is a material term of the Contract that the Contractor certifies by entering into the Contract that Contractor has a written policy and practice that meets the requirements described in ORS 279A.112 for preventing sexual harassment, sexual assault and discrimination against employees who are members of a protected class and that the Contractor shall maintain the policy and practice in force during the entire term of the Contract

· Section B.5.6 is deleted and replaced with the following revised Section B.5.6 B.5.6 Contractor shall comply with all Oregon tax laws, consistent with the Contractor’s certification of compliance with tax laws and the Contractor’s warranty that the Contractor has complied with the Oregon tax laws. Any violation of the Contractor’s certification of compliance or warranty will constitute a material breach of the Contract.

· The following Section B.5.7 is added:

B.5.7 RESERVED

· The following Section B.5.8 is added:

B.5.8 Failure to comply with any or all of the requirements of B.5.1 through B.5.7 shall be a material breach of Contract entitling the Owner to pursue and recover any and all of its available remedies at law or in equity that arise from the breach, including, but not limited to, recovery of damages, the termination of the Contract, and the exercise of the right of setoff, garnishment if applicable and the withholding of amounts otherwise due and owing to the Contractor without penalty. Damages or costs resulting from such non-compliance shall be the responsibility of the Contractor.

SGC-7 The provisions in Section B.15 GOVERNING LAW are deleted and replaced with the following provisions:

This ITB and the resulting Contract shall be governed by, construed, and enforced in accordance with the laws of State of Oregon without regard to principles of conflicts of law.

SGC-8 Add the following section after Section D.3 CLAIMS REVIEW PROCESS:

D.4 FALSE CLAIMS (OREGON FALSE CLAIMS ACT)

D.4.1 Contractor understands and acknowledges it is subject to the Oregon False Claims Act (ORS 180.750 to 180.785) and to any liabilities or penalties associated with the making of a false claim under that Act. By its execution of the Contract, Contractor certifies the truthfulness, completeness, and accuracy of any statement or claim it has made, it makes, it may make, or cause to be made that pertains to the Contract or the Project for which the services are being performed, including but not limited to Contractor’s statement of proposal and any invoices, reports, or other deliverables.

D.4.3 Contractor must include subsections D.4.1 and D.4.2 of this section in each subcontract Contractor may award in connection with the performance of the Contract. In doing so, Contractor may not modify the terms of those subsections, except to identify the Subcontractors or sub grantee that will be subject to those provisions.

SGC-9 Make the following revisions to Section E.2.4, related to Owner’s right to withhold payment:

· A new subsection is added to Section E.2.4 as subsection (i) and existing subsections (g) and (h) of Section E.2.4 are revised to read as follows:

(g) failure to carry out the Work in accordance with the Contract Documents;

(h) assessment of liquidated damages, when withholding is made for offset purposes; or

(i) The Contractor having liquidated and delinquent debt owed to the State of Oregon or any department or agency of the State of Oregon.

SGC-10 Delete Section E.5 RETAINAGE in its entirety and replace with the following:

E.5 RETAINAGE

E.5.1 Retainage shall be withheld and released in accordance with ORS 279C.550 to 279C.580.

E.5.2 Pursuant to OAR 137-049-0820(2), Owner will withhold retainage from progress payments in the amount of 5% of the payment.

E.5.3. Owner will hold all retained moneys in an Owner fund or account, and, for all accounts other than those contemplated by subsection E.5.4, interest is not required to accrue on the retained moneys.

E.5.4. Interest Bearing Account. Following the Contract Award, Contractor may elect to have the Owner deposit the retainage, as the retainage accumulates, in an interest-bearing account in a bank or other financial institution for the benefit of the Owner. Any such election must be made timely such that it does not result in schedule delays. The account must be established through the State Treasurer. Earnings on the account accrue to the Contractor. When a Contractor elects to have the Owner deposit the accumulated retainage in an interest-bearing account, the Contractor, within 30 days following payment of the final amount due for construction of the Public Improvement, shall pay to each subcontractor that performed work on the construction the subcontractor’s proportional share of the interest earnings that accrued to the Contractor as a result of the election. A subcontractor’s share of the total amount of interest earnings under this subsection must be determined by the proportion that the amount of retainage withheld from the subcontractor bears to the amount of retainage withheld from the Contractor and the length of time the retainage was withheld from the subcontractor. A share of the interest earnings shall be paid to a subcontractor under this subsection only when Retainage is withheld from the subcontractor for more than 60 days after the day on which the first partial payment was due the subcontractor under the terms of the subcontract; and the amount of interest earnings due the subcontractor exceeds $100.

E.5.5. Reduction or Elimination of Retainage.

(a) 50% Completion Milestone. After 50 percent of the work under the Contract is complete, the Contractor may request elimination or reduction of retainage by Written application, which shall include Written approval of the Contractor’s surety. Following receipt of a Written application by the Contractor, the Owner shall consider whether work is progressing satisfactorily, requirements are being met, and the Owner’s interests will be protected if retainage is eliminated or reduced. In its sole discretion, the Owner shall decide whether to grant the reduction or elimination of retainage and shall respond in Writing with its decision within a reasonable time.

(b) 97.5% Completion Milestone. After 97.5 percent of the work under the Contract is complete, at the Owner’s discretion and without application by the Contractor, the Owner may reduce the retained amount to 100 percent of the value of the Contract work remaining to be done.

E.5.6. Procedures for Payment of Retainage Following Final Completion. The retainage held by Owner must be included in and paid to the Contractor as part of the final payment of the Contract Price.

(a) Notification of Final Completion. The Contractor shall notify the Owner in Writing when the Contractor considers the work complete. Within 15 days after receipt, the Owner shall either:

(A) Notify the Contractor that the work has been accepted and pay the amount held as retainage to the Contractor as part of the final payment of the Contract Price following notification of final completion. Additionally, the Owner shall pay interest at the rate of 1.5 percent per month on the final payment due the Contractor, interest to commence 30 days after the work under the Contract has been completed and accepted and to run until the date when the final payment is tendered to the Contractor; or

(B) Notify the Contractor that the work has not been accepted and describe the work yet to be performed on the Contract; however, if the Owner does not provide such notice within the 15-day period, the interest provided by this subsection shall commence to run 30 days after the end of the 15-day period. The amount held as retainage shall be paid following the Contractor’s completion of the work and the Owner’s acceptance, as part of final payment of the Contract Price.

(b) Failure to Reach Final Completion. If the Contractor abandons the work or leaves the work unfinished or otherwise fails to reach final completion, the Owner may apply all or part of the retainage to costs incurred arising from the Contractor's failure to reach final completion. If there is a dispute with respect to compensation due under the Contract, retainage held may be released to the Contractor in conjunction or in accordance with resolution of such dispute.

E.5.7. Alternatives In Lieu of Cash Retainage - Requirements Contractor may submit and Owner shall accept from Contractor in lieu of withholding moneys for all or a portion of the retainage required under the Contract: (i) a Retainage Surety Bond, or (ii) deposit of bonds, securities or other instruments. Owner may reject surety bonds, bonds, securities or other instruments that Contractor submits only if the Owner first finds in Writing good cause for the rejection that is based on unique project circumstances.

(a) Retainage Surety Bonds. A Retainage Surety Bond compliant with the requirements of this section may be submitted to Owner in lieu of all or any portion of the amount of funds retained, or to be retained, by the Owner. A Retainage Surety Bond must be in substantially the form specified in ORS 701.435(4). A surety bond must be executed by a surety bonding company that is authorized to transact surety business in Oregon and may not be a surety obligation of an individual. The surety bond and any proceeds of the surety bond must be made subject to all claims and liens and in the same manner and priority specified for retainage under ORS 279C.550 to 279C.570 and 279C.600 to 279C.625.

(A) Amount of Retainage Surety Bond.

(i) Full Retainage Surety Bond. Contractor may provide a Retainage Surety Bond in lieu of all retainage required by the Contract. The amount of the Retainage Surety Bond shall be calculated by applying the retainage percentage to the Contract Price and must include a provision for coverage of any increases in the Contract Price. If a full Retainage Surety Bond is provided by Contractor at any time after the first progress payment has been made, the Owner, within 30 days after receipt, shall pay any retained amount to the Contractor.

(ii) Partial Retainage Surety Bond. Contractor may provide a Retainage Surety Bond in lieu of a portion of the retainage required by the Contract. Following receipt of a Retainage Surety Bond in an amount less than the full amount required to be retained, the Owner, within 30 days of receipt, shall pay to the Contractor any retained amounts up to the amount of the Retainage Surety Bond. If the amount of the Retainage Surety Bond is less than the amount retained by the Owner, the Owner will pay to the Contractor the retainage in the amount of the Retainage Surety Bond, and the remaining required retainage will be subject to Section (4). If the amount of the Retainage Surety Bond is in excess of the amount retained by the Owner, the Owner will pay to the Contractor the retained amount, and will reduce the moneys the Owner holds as retainage from progress payments in an amount equal to the value of the Retainage Surety Bond in excess of the amount retained as of the date of the bond.

(B) Subcontracting Requirements for Retainage Surety Bonds. When Owner accepts a Retainage Surety Bond in lieu of retainage from Contractor under this section, the Contractor shall accept surety bonds from subcontractors or suppliers from which the Contractor has withheld retainage.

(i) At any time before final payment on the Contract, a subcontractor may submit a surety bond to a Contractor and request that the Contractor on the Contract submit a surety bond to the Owner for the portion of the Contractor’s retainage that pertains to the subcontractor. The surety bond the subcontractor provides to the Contractor must meet the requirements set forth in paragraph (a)(A). When Contractor at a subcontractor’s request obtains and submits to the Owner a surety bond under this subsection, the Contractor may withhold from payments to the subcontractor an amount equivalent to the portion of the Contractor’s surety bond premium for which the subcontractor is responsible.

(ii) Within 30 days after a subcontractor’s request, the Contractor shall provide, and the Owner shall accept, a surety bond that meets the requirements set forth in subsection (a) unless:

(I) The Owner has found in Writing good cause to reject the surety bond based on unique project circumstances;

(II) The surety bond is not commercially available; or

(III) The subcontractor refuses to pay to the Contractor the subcontractor’s portion of the surety bond premium or refuses to provide the Contractor with a surety bond that meets the requirements of subsection (a).

(iii) A surety bond the subcontractor submits under this section, and any proceeds from the surety bond, must be made subject to all claims and liens and in the same manner and priority specified for retainage under ORS 279C.550 to 279C.570 and 279C.600 to 279C.625.

(iv) Contractor must, within 30 days after receiving a surety bond from a subcontractor or supplier, release to the subcontractor or supplier the amount the Contractor holds as retainage that is equivalent to the amount the subcontractor or supplier submitted as the surety bond.

(v) A surety bond under this section must be in substantially the form specified in ORS 701.435(4).

(b) Requirements for Deposit of Bonds, Securities or Other Instruments (“Deposit”) Submitted by Contractor in Lieu of Retainage.

(A) Bonds, securities and other instruments deposited or acquired by Contractor in lieu of retainage must be of a character approved by the Director of the Oregon Department of Administrative Services, including but not limited to:

(i) Bills, certificates, notes or bonds of the United States.

(ii) Other obligations of the United States or agencies of the United States.

(iii) Obligations of a corporation wholly owned by the federal government.

(iv) Indebtedness of the Federal National Mortgage Association.

(v) General obligation bonds of the State of Oregon or a political subdivision of the State of Oregon.

(vi) Irrevocable letters of credit issued by an insured institution, as defined in ORS 706.008.

(B) Bonds, securities or other instruments may be deposited with: (i) the Owner, or (ii) in a bank or other financial institution for the Owner to hold for the Owner’s benefit.

(C) Interest or earnings on the bonds, securities or other instruments accrue to the Contractor.

(D) Amount of Deposit.

(i) Deposit Equivalent to Full Amount of Retainage. Contractor may provide a Deposit meeting the requirements of this section in lieu of all retainage required by the Contract. The amount of the Deposit shall be calculated by applying the retainage percentage to the Contract Price and must include a provision for coverage of any increases in the Contract Price. If a Deposit equivalent to the full amount of retainage is provided by Contractor at any time after the first progress payment has been made, the Owner shall pay any retained amount to the Contractor.

(ii) Partial Deposit. If Contractor provides a Deposit in lieu of a portion of the retainage required in an amount less than the full amount required to be retained, the Owner shall pay to the Contractor any retained amounts up to the amount of the Deposit. If the amount of the Deposit is less than the amount retained by the Owner, the Owner will pay to the Contractor the retainage in the amount of the Deposit, and the remaining retainage will be remain subject to E.5.6. If the amount of the Deposit is in excess of the amount retained by the Owner, the Owner will pay to the Contractor the retained amount, and will reduce the moneys the Owner holds as retainage from progress payments in an amount equal to the value of the surety bond in excess of the amount retained as of the date of the Deposit.

E.5.8 Costs Incurred Holding Retainage or Amounts in Lieu of Retainage.

(a) Contractor’s costs. Contractor shall bear additional costs that the Contractor incurs after the date on which the Contractor submits a bid or proposal to the Owner that arise from (a) utilizing Retainage Surety Bonds, Bonds, Securities, or Other Instruments in lieu of holding retainage as described in E.5.7 (including Retainage Surety Bond premiums), or (b) requesting that the Owner deposit retainage in an interest bearing account as set forth in E.5.4. These costs are not reimbursable project costs and the Owner is not responsible for paying these costs.

(b) Recovery of Additional Costs Incurred by Agency. If Owner incurs additional costs arising from Contractor’s exercise of (a) utilizing Retainage Surety Bonds, Bonds, Securities, or Other Instruments in lieu of holding retainage as described in E.5.7, or (b) requesting that the Owner deposit retainage in an interest bearing account as set forth in E.5.4, the Owner may recover the additional costs from the Contractor by reducing the final payment. As work on the Contract progresses, the Owner shall, upon demand, inform the Contractor of all accrued costs.

E.5.9 Separate Retainage When Certified Payroll Statements Not Filed - Notwithstanding ORS 279C.555 or 279C.570(7) or OAR 137-049-0820, if Contractor is required to file certified statements under ORS 279C.845(7), the Owner shall retain 25 percent of any amount earned by the Contractor on the public works until the Contractor has filed with the Owner certified statements in accordance with applicable BOLI rules.

SGC-11 Add the following at the end of Section E PAYMENTS:

E.7 REPORT OF SUBCONTRACTORS PAID: Following each payment to Contractor, including final payment and any progress payments, Contractor shall submit to the Owner ODOT Form 734-2882, Paid Summary Report. Contractor shall complete and submit the form as specified in the form instructions, which are available online, along with the form at: http://www.oregon.gov/ODOT/Forms/2ODOT/2882.pdf

SGC-12 Add the following new sections at the end of Section F.2 PROTECTION OF WORKERS, PROPERTY AND THE PUBLIC:

F.2.7 Contractor shall comply with applicable State of Oregon Governor’s executive orders and Oregon Administrative Rules promulgated by the Department of Consumer and Business Services, Oregon Occupational Safety and Health Division. Additionally, Contractor shall regularly consult Oregon OSHA guidance publications regarding construction contractors and construction sites (found at https://osha.oregon.gov/pubs/Pages/index.aspx and utilize those resources and information to develop, update and enforce the Contractor’s policies for safety planning and safety practices on the Project. Contractor shall also comply with all other federal, state and local government statutes, regulations, administrative rules, ordinances, executive orders, Owner policies and other laws/requirements applicable to the Project pertaining to workplace health and safety requirements.

F.2.8 UTILITIES AND UTILITY FACILITIES: Contractor shall be responsible for locating any and all public or private utilities or utility facilities on the Project site prior to commencement of site work, including all costs associated with obtaining such locates. This shall include both Public and Private Locating services.

This Project may be located within the Oregon Utility Notification Center area which is a notification system for notifying owners of utility facilities about Work being performed in the vicinity of their facilities. The utilities notification system telephone number is 811 (or 1 800 332 2344).

SGC-13 Add the following new sections to SECTION F: Job Site Conditions:

F.8 MATERIAL SALVAGE FOR DEMOLITION CONTRACTS: Pursuant to ORS 279C.510 the Contractor and all Subcontractors involved in demolition work are required to salvage or recycle construction and demolition debris, if feasible and cost-effective.

F.9 ASBESTOS ABATEMENT LICENSING REQUIREMENTS: If the work under this Contract involves an asbestos abatement project, Contractor or Subcontractor must hold a license issued by the Department of Environmental Quality as required by ORS 468A.720. Contractor or Subcontractor carrying out an asbestos abatement project shall be responsible for the safe and proper handling and delivery of waste that includes asbestos-containing material to a landfill authorized to receive such waste.

SGC-14 Delete Section G.2.1 in its entirety and replace with the following:

G.2.1 The Contractor shall furnish and maintain in effect at all times during the Contract Period, a performance bond in a sum equal to the Contract Price and a separate payment bond also in a sum equal to the Contract Price.

SGC-15 Delete Section G.3 INSURANCE in its entirety and replace with the following:

G.3 INSURANCE

G.3.1 Contractor: The Contractor shall obtain the insurance specified below prior to the execution of the Contract. The Contractor shall maintain the insurance in full force at the Contractor’s expense throughout the duration of the Contract and all warranty periods that apply.

G.3.1.2 Subcontracting: If the Contractor specifies prior to the execution of the Contract that a Subcontractor will satisfy an insurance requirement, that is permitted to be satisfied by a Subcontractor, the Contractor shall obtain Owner approval of Subcontractor and Subcontractor’s insurance coverage(s), at least 35 Calendar Days prior to commencement of subcontracted work. After the Contractor receives Owner approval of the Subcontractor, the Contractor may contractually obligate the Subcontractor to obtain and maintain, at the Subcontractor's expense or at the Contractor's expense, the insurance permitted.

G.3.1.3 The Contractor shall require that all Subcontractors carry insurance coverage that the Contractor deems appropriate based on the risks of the subcontracted work. The Contractor shall obtain proof of the required insurance coverages, as applicable, from any Subcontractor providing services related to the Contract.

G.3.1.4 Neither the insurance provided by…