1-2026-014 RFB CRUISE TERMINAL 25 NW CORNER DEMOLITION.pdf

SPECIFICATIONS

FOR

CRUISE TERMINAL 25 NORTHWEST CORNER DEMOLITION

BOARD OF TRUSTEES OF THE GALVESTON WHARVES

(PORT OF GALVESTON)

GALVESTON, TEXAS

2026-014

Prepared by Port of Galveston Galveston, Texas October 2026

TABLE OF CONTENTS

SECTION NO. TITLE

I. Notice to Bidders

II. Bid Form

III.

Performance Bond and Labor and Material Payment Bond

IV. Construction Contract

V. General Conditions

VI. Special Conditions

VII. Technical Specifications

Attachment A Construction Drawings

Attachment B Cruise Operations Schedule

Attachment C Insurance and Indemnity Requirements

Attachment D Client Reference List

Attachment E Aerial Photos

BID REQUIREMENTS CHECKLIST

In order to receive consideration, make all bids in accordance with the following. Any omission(s) will result in immediate bid rejection:

Bid in triplicate including:

Page II-1:

Business Name and Submittal Date shown on Bid

Lump Sum for Cruise Terminal 25 NW Corner Demolition and related services requested in the Bid

Contractor’s demolition plan

Calendar days to substantially complete all work

Page II-2

Workers Compensation Experience Modification Rate as requested in the Bid

Cashier’s check or bid bond in the amount of 5% of the total bid amount

Company name, address, name and title of person signing Bid

Signature of person signing bid

Witness signature

Corporate seal (if corporation)

Acknowledgment of Addenda number and date (if any)

Page I-1

Submit bid in a sealed envelope properly marked as instructed in Notice to Bidders

SEALED FORMAL BIDS WILL BE RECEIVED UNTIL 2:00PM, CDT (GALVESTON, TEXAS TIME)

TUESDAY, NOVEMBER 24, 2026

B I D S N O T S U B M I T T E D O N T H E I N C L U D E D

B I D F O R M W I L L B E R E J E C T E D

SECTION I

NOTICE TO BIDDERS

I-1

1. Sealed bids, original and three (3) copies, addressed to the Board of Trustees of the Galveston Wharves, Attention, Purchasing Agent, 123 25th Street 8th Floor, Galveston, Texas 77550, will be received until 2:00 P.M., CDT (Galveston, Texas Time) Tuesday, November 24, 2026, and then publicly opened and read aloud, for furnishing all plans, labor, material and equipment and performing all work required for Cruise Terminal 25 Northwest Corner Demolition at the Port of Galveston, Galveston, Texas (hereinafter called Owner).

2. The work shall include Cruise Terminal 25 Northwest Corner Demolition as specified herein.

3. Bids shall be submitted in sealed envelopes upon the blank bid form furnished. Sealed envelopes shall be marked in the lower left hand corner as follows:

Do Not Open in Mail Room BID FOR Cruise Terminal 25 Northwest Corner Demolition

To be Opened and Read Aloud in Public at 2:00 P.M., CDT, TUESDAY, November 24, 2026

4. All bids shall be accompanied by a Cashier’s Check upon a nationally recognized bank in the amount of

5% of the “Total Bid Amount” made payable to the order of the Galveston Wharves, Galveston, Texas, or a bid bond from a Corporate Surety satisfactory to the Owner, as a guarantee that the bidder will enter into a contract and execute performance and payment bonds within ten (10) days after Notice of Acceptance of the Bid.

5. All checks will be returned to the unsuccessful bidders within fifteen (15) days after Notice of Acceptance.

6. The successful bidder must furnish separate performance and payment bonds upon the Owner’s standard forms in the amount of 100% of the contract price from a Corporate Surety satisfactory to the Owner.

7. The right is reserved, as the interest of the Owner may require, to reject any and all bids, and to waive any informality in bids received.

8. Any bid that fails to meet the material requirements of this solicitation, including required forms, bid guaranty, acknowledgments, signatures, and compliance with plans and specifications, will be deemed non-responsive and rejected.

9. Plans, specifications, and bidding documents may be secured at portofgalveston.com or from the Purchasing

Agent, of the Galveston Wharves, Galveston, Texas.

10. Bidders should carefully examine the plans, specifications and other documents, visit the site of the work, and fully inform themselves as to all conditions and matters, which can in any way affect the cost of the work thereof. Should a bidder find discrepancies in, or omissions from, the plans, specifications or other documents, or should they be in doubt as to their meaning, they should at once notify the Purchasing Agent, of the Galveston Wharves, Galveston, Texas, and obtain clarification prior to submitting any bid.

11. There will be a pre-bid conference held at 11:00 A.M. on Tuesday, November 3, 2026, at 123 25th Street, 8th floor, followed by a site visit. Attendance is not mandatory. Questions will be received, in writing to purchasing@portofgalveston.com, until Friday November 13, 2026, at 2:00 PM.

SECTION II

BID FORM

II-1

Business Name as Registered with the Secretary of State of Texas: ______________________________

Place: Galveston, Texas Date: ______________________________________

Board of Trustees of the Galveston Wharves Galveston, Texas

Gentlemen:

The undersigned, being familiar with the contract documents, including: (a) Notice to Bidders, (b) Proposal, (c) Performance Bond and Labor and Material Payment Bond, (d) Construction Contract, (e) General Conditions, (f) Special Conditions and (g) Technical Specifications, and having examined the plans for the Cruise Terminal 25 Northwest Corner Demolition does hereby propose to furnish all labor and material, necessary tools, equipment and all utilities and transportation services necessary to perform and complete the work of the entire project in a workmanlike manner according to the plans and specifications referred to above, for the following price:

ITEM

NO.

ITEM DESCRIPTION PRICE

1 Demolition and Removal Controlled demolition of the areas and items outlined in the construction drawings Haul off and removal of all demolished materials

Demolition Plan: Please provide a plan describing equipment, sequences, and methods that will be used to best complete this project while protecting Port Property.

Time Frame: The undersigned agrees, if awarded the contract, to complete all work within _________ calendar days after the date of Notice to Proceed.

Should the Contractor fail to complete the work in the time shown above, the amount of FIVE HUNDRED DOLLARS ($500.00) per day, not as a penalty, but as liquidated damages and to cover added expense for engineering supervision, shall be deducted from the contract.

The Port makes no representations of any kind that an award will be made as a result of this RFB.

General: Bids must set forth full, accurate, and complete information. Galveston Wharves reserves the right to reject a bid as not responsive if all information requested is not furnished. This contract will be awarded through competitive bidding. In determining the eventual award of a contract, consideration will be given to the price bid, the ability of the bidder to meet the specifications of the bid in the scheduled period, the experience in this field, and the financial responsibility of the bidder. The Workers’ Compensation Insurance “Experience Modification Rate” for the current and past two years is:

Current Year: , Past Year: , and Two Years Ago:

Is this Company certified as a Historically Underutilized Business (HUB)? Yes or No

SECTION II

BID FORM

II-2

Enclosed herewith is a Cashier’s Check in the amount of 5% of the lump sum bid, or a bid bond from a Corporate Surety acceptable to the Owner in the same amount, guaranteeing the execution of the contract and furnishing of the required bond.

The undersigned also agrees as follows:

If written Notice of the Acceptance of this bid is mailed, faxed or delivered to the undersigned within sixty (60) days after the date of opening of the bids, the undersigned will within ten (10) days after the date of such mailing, telegraphing or delivering such notice, execute and deliver a Contract and furnish to the Owner satisfactory performance and payment bonds each in the sum of the full amount of the bid and in the forms as shown in the (Bond Section VIII), which is made a part of this Contract, guaranteeing the faithful performance of the work and further guaranteeing payment of laborers and material as required by Chapter 2253, Texas Government Code and will start work within ten (10) days of Notice to Proceed.

The undersigned hereby designates as his office to which such Notice of Acceptance may be emailed, mailed, faxed or delivered:

Respectfully Submitted, Business Name: ___________________________________________________________________________

Office Address: ___________________________________________________________________________

City, State, Zip Code: _______________________________________________________________________

Signed By: _______________________________________________________________________________

Printed Name: _____________________________________________________________________________

Title: ____________________________________________________________________________________

Email Address: __

Telephone Number: (___) ______________________ Fax Number: (___) ______________________

Witness

SEAL If Bidder is a Corporation

The following Addenda have been received and are included in this Bid:

SECTION III

PERFORMANCE BOND

III-1

AMOUNT OF BOND: _____________________ BOND NUMBER: ____________________

KNOW ALL MEN BY THESE PRESENTS:

That we, , a Texas corporation, as Principal and , as Surety, a corporation authorized to write surety bonds in the State of Texas, hereby acknowledge ourselves firmly bound and obligated to pay to the BOARD OF TRUSTEES OF THE GALVESTON WHARVES the full Amount of Bond as described above, the payment of which in the City of Galveston, Texas, and we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, to perform all obligations of this Bond.

The foregoing obligation, however, is upon the condition that if the above bound Principal shall well and truly perform and fulfill each undertaking, covenant, term, condition, and agreement of the Construction Contract by and between such Principal and the Board of Trustees of the Galveston Wharves, which by reference is dated , for CRUISE TERMINAL 25 NORTHWEST CORNER DEMOLITION for the Port of Galveston, which Construction Contract is, in all its terms and provisions, incorporated herein and made a part hereof by reference, and all modifications, amendments, and extensions thereof. If having entered upon performance of such Construction Contract, such Principal shall perform and fulfill all duties and obligations imposed upon such Principal by the terms and provisions thereof, such obligation shall cease to be of force and effect; otherwise, it shall remain in full force and effect.

It is expressly stipulated that no change or alteration in the above mentioned contract or in the method of doing the work thereunder or in paying therefore agreed to by the parties to such contract or forbearance by one party to the other shall release the Surety on this bond, the latter hereby in advance consenting that any and all of such things may be agreed to without notice to the Surety hereon.

It is further expressly stipulated that successive recoveries may be had hereon to the full extent of amount above named.

The Principal and Surety expressly intend that this instrument fully comply with the provisions of Chapter 2253 of the Texas Government Code, as it may from time to time be amended.

EXECUTED this ____day of _________, 2026.

PRINCIPAL:

By:

Name:

Title:

SURETY:

SECTION III

PAYMENT BOND

III-2

AMOUNT OF BOND: _____________________ BOND NUMBER: ____________________

KNOW ALL MEN BY THESE PRESENTS:

That we, , a Texas corporation, as Principal and , as Surety, a corporation authorized to write surety bonds in the State of Texas, hereby acknowledge ourselves firmly bound and obligated to pay to the BOARD OF TRUSTEES OF THE GALVESTON WHARVES the full Amount of Bond as described above, the payment of which in the City of Galveston, Texas, and we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, to perform all obligations of this Bond.

The foregoing obligation, however, is upon the condition that if the above bound Principal shall promptly make payment to all persons supplying labor or material in the prosecution of the work described in the Construction Contract by and between the Principal and the Board of Trustees of the Galveston Wharves, which by reference is dated for CRUISE TERMINAL 25 NORTHWEST CORNER DEMOLITION for the Port of Galveston, which Construction Contract is, in all its terms and provisions, incorporated herein and made a part hereof by reference, and all modifications, amendments, and extensions thereof. If having entered upon performance of such Construction Contract, such principal shall promptly pay all persons furnishing labor and materials in the prosecution of such contract, such obligation shall cease to be of force and effect; otherwise, it shall remain in full force and effect.

It is expressly stipulated that any change or alteration in the above mentioned contract or in the method of doing the work thereunder or in paying therefore agreed to by the parties to such contract of forbearance by one party to the other shall release the Surety on this bond, the latter hereby in advance consenting that any and all of such things may be agreed to without notice to the Surety hereon.

It is further expressly stipulated that successive recoveries may be had hereon to the full extent of the amount above named.

The Principal and Surety expressly intend that this instrument fully comply with the provisions of Chapter 2253 of the Texas Government Code, as it may from time to time be amended.

EXECUTED this day of , 2026.

PRINCIPAL:

SURETY:

SECTION IV

CONSTRUCTION CONTRACT

IV-1

THE STATE OF TEXAS

COUNTY OF GALVESTON

THIS AGREEMENT is entered into by and between ______________________, for convenience below called “Contractor” and the BOARD OF TRUSTEES OF THE GALVESTON WHARVES, a separate utility and agency of the City of Galveston, Texas, for convenience below called “Owner”.

W I T N E SS E TH

1.

For the consideration hereinafter named, Owner agrees to employ Contractor and Contractor binds and obligates itself to furnish all labor, including proper and expert supervision, together with all necessary equipment and materials, and to perform in accordance with good, accepted practice in strict conformity to specifications prepared by Owner and the following, which are, by reference, incorporated herein and made a part of this contract:

Notice to Contractors, Proposal, General Conditions, Special Conditions, Technical Specifications, and Plans and all Exhibits or Addenda thereto, all as set forth in Specifications for CRUISE TERMINAL 25 NORTHWEST CORNER DEMOLITION at the Port of Galveston, Galveston, Texas, prepared by Port of Galveston, Galveston, Texas, ______________ 2026, (collectively as amended or modified, the “Proposal Package”) covering the furnishing of labor, material and equipment necessary for CRUISE TERMINAL 25 NORTHWEST CORNER DEMOLITION for the Galveston Wharves, Galveston, Texas.

(a) The Bonds of Contractor attached hereto.

(b) Contractor’s Proposal Form.

All of the documents described above are collectively referred to herein as the “Contract Documents”. All capitalized terms not defined in this Agreement have the meanings given to them in the Contract Documents. All contractual terms set forth in the Contract Documents are incorporated herein by reference.

2.

The work herein contracted for shall be upon the site selected by Owner, upon Owner’s properties, as outlined in the Contract Documents. The Contract shall include all work as described in the Contract Documents relating to Lump Sum Proposal in Contractor’s Proposal Form (herein called the “Work”).

3.

Except when extended for cause as provided in Paragraph 4 hereof, the Work shall commence within ten (10) calendar days after Notice to Proceed and shall be completed in a good and workmanlike manner, free from defects, both patent and latent, in workmanship and materials within the calendar days stated in The Contractor’s Proposal.

4.

(a) The time for the completion of the Work shall be extended for such number of working days during which commencement of the Work, or during which Work is actually delayed, by Act of God, casualty, lockout, strike or cause beyond control of Contractor other than non–availability of labor and materials, or inclement weather on workdays. No extension of time shall be granted because of weather conditions on any working day except such working days on which the Work is prevented by one–half or more of Contractor’s force by the weather for more than four hours in Contractor’s eight–hour working day.

IV-2

In order to obtain extensions of time because of delays due to any one or more of the above stated causes, Contractor in each instance, shall make written claim therefore to the Owner within five (5) days after the occurrence of each delay, and upon Contractor’s failure to do so, it’s right, if any, to such extension will be considered as waived. Owner shall render its decision in writing, granting, or refusing said application for extension, within ten (10) days after receipt of said application.

(b) Contractor warrants that all equipment, material, tools, and incidentals necessary to complete the

Work under this Contract are available and now either on order or will immediately be placed on order by Contractor.

(c) It is understood and agreed that Owner has relied upon the warranty of Contractor, as above expressed, as a primary inducement to the making of this Contract with Contractor.

5.

Contractor agrees that at its expense, it will obtain all necessary permits and licenses to perform the work.

6.

All drawings, plans, tracings, blueprints, specifications, and engineering data pertaining to the Work shall be and remain the property of the Owner.

7.

Contractor shall be fully and solely responsible for all materials except those furnished by the Owner, used in the performance of this Contract, as well as the entire Work, until final acceptance of the entire Work has been made by Owner, which acceptance shall not be unreasonably withheld.

8.

(a) Owner shall not be liable for any extra work performed under the Contract unless Owner first authorizes same in writing.

(b) The Contractor shall begin the Work as outlined in the Contract Documents.

9.

(a) Owner shall not be liable or responsible for, and shall be saved and held harmless by Contractor from and against any and all suits, actions, losses, damages, claims, or liability of any character, type, or description, including all expenses of litigation, court costs, and attorney’s fees for injury or death to any person, or injury to any property, received or sustained by any person or persons or property, arising out of, or occasioned by, directly or indirectly, the performance of Contractor under this agreement, including claims and damages arising in whole or in part from the negligence of Owner.

(b) IT IS THE EXPRESS INTENT OF THE PARTIES TO THIS AGREEMENT THAT THE

INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY CONTRACTOR

TO INDEMNIFY AND PROTECT OWNER’S OWN NEGLIGENCE WHETHER THAT NEGLIGENCE IS

THE SOLE OR CONTRIBUTORY CAUSE OF THE RESULTANT INJURY, DEATH OR DAMAGE.

IV-3

10.

(a) For the completion of all of the Work covered hereby in place, free from defects, both patent and latent, and the full performance by Contractor of all duties and obligations imposed upon Contractor by the terms and provisions of this Contract, Contractor shall be paid by Owner, at Galveston, Texas an amount equal to the Work actually performed by the Contractor (whether more or less than the estimated quantities as set forth in Contractor’s Proposal) at the unit prices for such Work as set forth in Contractor’s Proposal. Partial payments thereof shall be made as the Work covered by the Contractor progresses, as follows: On or before the fifth day of each calendar month, Contractor shall furnish to Owner, a certified estimate, in triplicate, setting forth in detail the quantity of the Work performed, and on or before the 20th day of the calendar month in which the estimate is submitted, a sum equal to ninety-five percent (95%) of such estimate, as approved by the Owner, less any previous payments, shall be paid to the Contractor.

(b) Owner shall be authorized and empowered to deduct from the amount which would otherwise be due and payable to Contractor on any estimate an amount sufficient to cover any defective Work or materials which have not been remedied and replaced to the Owner’s satisfaction; however, failure to so withhold any part of such money cannot constitute a waiver of any valid claim of the Owner against the Contractor.

(c) Upon completion of the entire Work in every detail, free from defects, both patent and latent, in workmanship and materials, and Owner has accepted all of such Work, which acceptance shall not be unreasonably withheld, and Owner has been furnished by the Contractor with satisfactory evidence showing that all claims for labor and materials furnished, or caused to be furnished by Contractor in the prosecution of the Work hereunder, have been paid in full and that no laborer, subcontractor, mechanic or materialman has any sum due or owing to them, Owner shall pay Contractor the balance of the contract price in accordance with the Contract Documents. In no event shall Owner be obligated to pay such amount until the expiration of thirty (30) days after such completion of the Work.

11.

All covenants and agreements herein contained shall be extended to and binding upon the successors and assigns of Owner and the successors, executors, or legal representatives of Contractor. It is further provided that the Contractor may not assign this contract or any money to become due and payable hereunder, except with the written consent of Owner.

12.

No waiver by Owner of any breach on the part of Contractor of any of the obligations herein contained shall constitute a waiver of any breach of the same or any other obligations.

13.

In the event of any conflict between any term or provisions expressed in this Contract and any term or provisions in any of the other Contract Documents, the terms or provisions of this instrument shall govern to the extent of the conflict.

14.

The City of Galveston shall never be liable to respond in damages or make indemnity or compensation of any character from any source other than the income and revenues arising from the operation of the property operated by the Board of Trustees of the Galveston Wharves by reason of, or due to, or caused by the operation of the Galveston Wharves. The members of the Board of Trustees of the Galveston Wharves, either singularly or collectively, shall not be personally liable to anyone by reason of, or due to, or caused by the management of the Galveston Wharves.

IV-4

EXECUTED, in duplicate originals, at Galveston, Texas, this ___ day of ______, 2026.

Owner:

BOARD OF TRUSTEES OF

THE GALVESTON WHARVES

Rodger Rees, Port Director/CEO

Approved as to form:

Counsel to the Board of Trustees of the Galveston Wharves

Contractor:

ATTEST:

IV-5

COUNTY OF GALVESTON

BEFORE ME, the undersigned authority, on this day personally appeared Rodger Rees, Port Director of the Board of Trustees of The Galveston Wharves, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purpose and consideration therein expressed in the capacity therein stated, as the act and deed of the Board of Trustees of The Galveston Wharves.

GIVEN UNDER MY HAND and SEAL of office this day of , 2026.

NOTARY PUBLIC, STATE OF TEXAS

COUNTY OF GALVESTON

BEFORE ME, the undersigned authority on this day personally appeared , known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated, as the act and deed of .

GIVEN UNDER MY HAND and SEAL of office this day of , 2026.

NOTARY PUBLIC, STATE OF TEXAS

SECTION V

GENERAL CONDITIONS

V-1

1. SCOPE OF CONTRACT

Contract Documents shall be the Contractor’s Bond, Performance Bond, Labor and Material Payment Bond, the Construction Contract, General Conditions, Special Conditions, Technical Specifications and addenda thereto, if any. Galveston Wharves’ prescribed forms of the several documents may be procured from the Galveston Wharves upon application. Unfamiliarity with or failure to procure copies of any such document shall be at Contractor’s and Contractor’s risk and responsibility.

In the event of any conflict between any provision or provisions of the standard form of Contract and any provision or provisions of any other Contract Document, the provision or provisions of the form of Contract shall prevail.

The GENERAL CONDITIONS, in conjunction with the other Contract Documents, all of which constitute a part of the CONTRACT, are each intended to be cooperative, a provision occurring in one is as binding as though occurring in all and are intended to describe and provide a finished piece of work, complete in every detail and executed with material and workmanship of first quality.

The complete execution of the work described herein and all operations incidental thereto, shall be included in the contract to be entered into, except such details as are specifically excluded.

All work included is to be executed for the Board of Trustees of the Galveston Wharves, and the party to whom the Galveston Wharves has awarded the contract shall be referred to hereinafter as the “Contractor”.

Subcontractors, as such, will not be recognized. No subcontractor shall, under any circumstances, relieve the Contractor of his liabilities and obligations under this contract, should such subcontractor fail to perform the work undertaken by him in a satisfactory manner.

The Contractor shall at all times be represented on the work in person or by a foreman or duly designated agent who shall be conclusively presumed to be authorized to receive and execute instructions or notices given by Engineer or Galveston Wharves. Instructions and information given by the Engineer to the Contractor’s foreman or agent on the work shall be considered as having been given to the Contractor. When two or more Contractors are engaged on installation or construction work in the same vicinity, the Engineer shall be authorized to direct the manner in which each shall conduct his work, so far as it affects other Contractors.

Each Contractor, firm, or corporation having a contract with Galveston Wharves must have an office or agent in Galveston during the period of construction. The location of this office or the post office address of the agent must be filed with the Engineer and notice delivered to Contractor’s foreman or other agent at the job–site or sent to such office or agent at the address on file in the office of the Engineer, or said Galveston Wharves, will be considered full and sufficient notice under the provisions hereof.

For all purposes of this Contract it is agreed and understood that written notice to Contractor will be assumed to have been received on the day when delivered in person to the Contractor or at his designated office to the foreman or other person in charge at the site of the work or on the second day after date of letter written by the Galveston Wharves, said letter being mailed to Contractor’s address as shown in the Contract Documents or to the last known address of the Contractor.

All Contractors and their employees are positively forbidden to give or lend money, or other thing of value, to any officer of employee of the Galveston Wharves, and should it appear that this provision has been violated, the Galveston Wharves, at its option, may terminate any contract that may exist between said Contractor and the Galveston Wharves.

V-2

The Galveston Wharves will be represented on the work by its Engineer or his authorized assistants, whose authority in all matters shall be defined in the Contract Documents. On all questions concerning the acceptability of material or machinery, the classification of material, the execution of work, conflicting interest of Contractors performing related work and the determination of costs, the decision of Engineer shall be final.

Inspectors are required to see that all the provisions of the contract and specifications are faithfully adhered to. Any inspector may, if authorized by the Engineer, stop the work entirely if there is not sufficient quantity of suitable and approved material on the ground to carry it on properly, or for any other good and sufficient cause. Any work done in the absence of an inspector may be ordered opened up for thorough examination and must be rebuilt or replaced at the Contractor’s sole expense. But no approval by an inspector shall be construed into an acceptance of defective or improper work for material, which must be rebuilt or properly replaced whenever discovered, at any stage of the work during guaranteed period. Inspectors do not have the power to give orders or directions under any possible circumstances, except as herein defined and provided, and on authority of the Engineer. In case of dispute or misunderstanding, no verbal arrangement or agreement will be considered, and Contractor must produce written authority in support of his contentions.

2. FORM OF PROPOSAL, FILING–ACCEPTANCE OR REJECTION:

Proposals shall be filed in triplicate on the form provided therefor. Blank spaces therein shall be properly filled without change in phraseology and without addition thereto. Unauthorized conditions, limitations, or provisos attached or added to a proposal or proposal will render it informal and may cause it rejection. No proposal filed after the designated hour will be received or considered. No telegraphic proposal or telegraphic modification of a proposal will be considered by the Galveston Wharves. The Galveston Wharves reserves the right to reject all proposals not made on the blank form furnished by it to Contractors, the right to accept or reject any or all proposals or parts of proposals, and to waive formalities as may best serve the public interest.

Contractors shall place the three copies of the proposal in the same envelope, seal and mark on the outside of the envelope what the proposal is on and the date to be filed. Mark envelope clearly “Do Not Open In Mail Room”. File all proposals at the Galveston Wharves’ office at 123–25th Street, Galveston, Texas, not later than the date and hour set out in the proposal form or specifications.

If the proposal is made by an individual it shall be signed with the full name and address shall be given; if it is made by a firm it shall be given; and if it is made by a corporation it shall state the state of incorporation, the address thereof, shall be signed by an officer of the corporation, the signature to be attested with the impress of the corporate seal and the names and titles of the corporate officers shall be given.

Contractors are invited to be present at the opening of proposals or proposals.

Contractors shall insert in the blank spaces provided in the proposal form the prices at which the material called for will be delivered, all charges prepaid, to the location and place specified in the proposal form or detailed specifications; or if the proposal is for material and labor at the unit prices or specified sum thereof, as the case may be, for each item specified. If the unit price and the total price named by a Contractor for any item do not agree, the unit price alone will be considered as representing the Contractor’s intention.

The quantities noted in the proposal or schedule are approximations for comparing proposals and no claim shall be made against Galveston Wharves for excess or deficiency therein, absolute or relative. Payment at the prices agreed upon will be in full for the completed work, and will cover materials, supplies, labor, tools, machinery and all other expenditures incident to satisfactory compliance with the contract.

No oral interpretations shall be made to any Contractor as to the meaning of any of the contract documents or be effective to modify any of the provisions of the contract documents. Every request for an interpretation shall be made in writing and addressed to the Purchasing Agent, of the Galveston Wharves, Galveston, Texas.

V-3

3. DEPOSIT:

The proposal shall be accompanied by a cashier’s or certified check or a Contractor’s bond executed by a responsible corporate surety authorized to do business in Texas, in the amount of five percent (5%) of the total amount of the proposal, payable to the Galveston Wharves, as a guarantee that the Contractor will, if awarded the contract, enter into a contract with the Galveston Wharves as provided herein. Only one deposit or bond is required with the triplicate proposal. If the proposal is based upon alternates, such deposit or bond must be at least five percent (5%) of the highest amount for which the Contractor offers to do all or any part of the work proposal upon.

If Contractor files a Contractor’s bond, it shall be conformable to Galveston Wharves’ standard form;

therefore, subject only to such eliminations from, additions to or changes in the provisions thereof as may necessarily result from any particular terms of work as covered by any or all of the Contract Documents. The corporate surety on such bond shall fulfill all qualification requirements set out in Paragraph 6 hereof for corporate surety on the contract performance bond in Paragraph 6 provided for.

Deposits will be returned to all unsuccessful Contractors upon award of the contract and to the successful Contractor when he has signed the contract and the surety bond furnished, as required hereinafter, has been approved by Galveston Wharves’ Counsel.

Proposals not accompanied by deposit or bond will be subject to automatic rejection.

4. CONTRACT:

The Contractor shall be required to enter into a Contract with the Galveston Wharves on the standard form of contract of the Galveston Wharves and in accordance with the Contract Documents and Contractor’s Proposal.

Any Contractor whose proposal shall be accepted shall be required to appear at the office of the Executive Director in person, or if a firm or corporation, a duly authorized representative shall so appear, to execute the contract within ten (10) days after notice that the contract has been awarded to him, and failure or neglect to do so shall constitute a breach of agreement effected by the acceptance of the proposal. The damages of the Owner for such breach will include loss from interference with his construction program and other items whose accurate amount will be difficult or impossible to compute. The amount of the certified check or Contractor’s bond accompanying the proposal of such Contractor shall be retained by the Galveston Wharves as liquidation damages for such breach. In the event any Contractor whose proposal shall be accepted shall fail or refuse to execute the contract as herein before provided, the Executive Director may at his option, determine that such Contractor has abandoned the contract and thereupon his proposal and the acceptance thereof shall be null and void and the Owner shall be entitled to liquidation damages as above provided.

A corporation to which an award of the work is made may be required, when such requirement is deemed proper by the Galveston Wharves, before the contract is executed by the Galveston Wharves, to furnish a certificate of its corporate existence and of its good standing, and evidence that the officers signing the contract for the corporation is each duly authorized to do so.

5. NON–LIABILITY OF THE CITY OF GALVESTON AND BOARD OF TRUSTEES OF THE

GALVESTON WHARVES:

It is understood and agreed that members of the Board of Trustees of Galveston Wharves are contracting here only in their capacity as members of the Board, and neither they nor the City of Galveston shall be liable hereunder for any amount of money, except insofar as same may be paid from the revenues of the Galveston Wharves.

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6. BONDS:

The Contractor to whom the contract is awarded shall furnish, without cost to the Galveston Wharves, a

Performance Bond and a Labor and Material Payment Bond written by a bonding company authorized by law to do business in the State of Texas, written by an agency and local representative located in the State of Texas, and with surety satisfactory to the Galveston Wharves, in the amount of one hundred percent (100%) of the total amount of the contract. The Corporate Surety on said bonds shall execute the same by and through a duly authorized Attorney–in Fact, who is a resident of, or doing business in, Galveston, Galveston County, Texas, unless Contractor can obtain said Surety on said bonds shall execute the same by and through a duly authorized Attorney–in–Fact, who is a resident of, or doing business in, Galveston, Galveston County, Texas, unless Contractor can obtain said bonds at less premium by having the Corporate Surety execute the same by and through an Attorney–in–Fact, who is not a resident of, nor doing business in Galveston, Galveston County, Texas. This is to guarantee to the Galveston Wharves the proper performance by the Contractor of all and singular the obligations assumed by said Contractor. These bonds shall be conformable to Galveston Wharves’ form therefore, subject only to such elimination from, additions to or changes in the provisions therefore as may necessarily result from any particular terms of the work as covered by any or all the Contract Documents.

These bonds will be canceled and sureties released upon completion and acceptance of the work described covered by the Contract Documents.

Bonding companies whose name appears on the current list published by the (United States) Treasury Department of accepted sureties on Federal bonds need not submit with the bonds any proof of their being so qualified and licensed by the Texas Board of Insurance Commissioners, but any company which is not on such Treasury Department’s current list desiring to become a surety upon any such performance bond and payment bond must submit with the bonds at the time it is tendered to the Galveston Wharves for approval and acceptance a certificate by the Texas Board of Insurance Commissioners, bearing date no more than five (5) days prior to the date the bond is so tendered for approval, to the effect that the company in question is so licensed and qualified under such statutory provisions, express attention being called to the fact that a bonding company which instead of being qualified and licensed under the statutes just referred to above holds merely a license as a “trust company” under applicable law will not be approved as a surety upon such performance bond.

To insure prompt approval of such performance bonds, the agent or attorney executing the bonds for the bonding company will, whether the company is or is not on the Treasury Department’s approved list, attach to the bonds or insert in the document immediately following the bonds, his power of attorney or other appropriate proof of his authority to have executed bond.

In any case, in which the performance bond is in a penal sum in excess of $50,000.00 and in which the bonding company is not on the Treasury Department’s approved list, the Galveston Wharves reserves the right to require that the bonds be signed by two surety companies.

7. TERMS:

Whenever in the specifications the following terms are used, the meaning shall be as follows:

OWNER:

Whenever the word Owner, or the expression Party of the First Part, or First Party, is used in the

Contract, it shall be understood as referring to the Board of Trustees of the Galveston Wharves.

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CONTRACTOR:

Whenever the word Contractor, or the expression Party of the Second Party, or Second Party, is used, it shall be understood to mean the person, persons, co–partnership or corporation who or which has agreed to perform the work embraced in this contract or to his, their, or its legal representatives, successors and assigns.

SPECIFICATIONS:

Shall be understood to mean the Documents listed in Paragraph 1, Section IX, Construction Contract, as well as all sections describing materials and construction methods and attached to this contract as listed on the index sheet enclosed.

ENGINEER:

Except as otherwise expressly provided herein to the contrary, the term Engineer shall be deemed to designate and refer to the Engineer of the Galveston Wharves; and Inspector shall be deemed to designate and refer to an assistant or representative of said Engineer.

8. INTERPRETATION OF PHRASES:

Whenever the words “directed”, “required”, “permitted”, “designated”, “considered necessary”, “prescribed”, or words of like import are used, it shall be understood that the direct, requirement, permission, order designation or prescription of the Engineer is intended, and similarly, the words “approval”, “acceptable”, satisfactory”, or words of like import shall mean: Approved by or acceptable or satisfactory to the Engineer.

Whenever in the specifications or drawings accompanying this agreement, the terms or description of various qualities relative to finish, workmanship, or other qualities of similar kind which cannot from their nature, be specifically and clearly described and specified, but are necessarily described in general terms, the fulfillment of which must depend on individual judgment, then, in all cases, any questions of the fulfillment of said specifications shall be decided by the Engineer, and said work shall be done in accordance with his interpretations of the meanings of the words, terms or clauses defining the character of the work.

9. KEEPING OF PLANS AND SPECIFICATIONS ACCESSIBLE:

The Contractor shall be furnished with a digital copy of all plans and specifications and shall keep one copy of the same constantly accessible to the work.

10. RIGHT OF ENTRY:

The Owner reserves the right to enter the property or location in which the work, herein contracted for, is to be constructed or installed, by such agent or agents as it may elect, for the purpose of inspecting the work, for the purpose of constructing or installing such collateral work as said Owner’s Lessees may desire.

11. METHOD OF PAYMENT AND ACCEPTANCE OF WORK:

About the last day of each month, the Engineer will make an estimate of the work theretofore done by the Contractor and of the value thereof, based upon the unit proposal price (or otherwise estimated by him where the work involves an entire structure, at a lump sum without the unit prices). Such monthly estimate will be approximate only, and no attempt will be made to make exact measurements or determination of exact quantities until the final completion of the work. Based upon the Engineer’s monthly estimate of work and the value thereof done by the Contractor, the Contractor shall be entitled to receive a payment upon such estimate in such amount that when taken together with previous such payments to him on estimates, the amount paid will aggregate the value of the work therefore done less 5% percent to be retained by the Galveston Wharves as

V-6 security that the entire work will be completed in accordance with the contract and the plans and specifications therefor. In addition to the amount which the Contractor shall be entitled to be paid from month to month in accordance with the foregoing provisions for payments to the extent of 90 percent of the value of the work done, he shall be entitled to have included any monthly estimate 90 percent of the value of acceptable non– perishable materials delivered on the site of right–of–way of the work and which have not been used in the work prior to such estimate; provided that the payment to him of such additional amount on account of materials delivered on the job but of yet used, shall be subject to his furnishing to the Engineer certified copies of invoices and freight bills covering the material in question. The inclusion at his request in any monthly estimate of such 95 percent credit for materials not yet used shall operate to affect a passage of the title to such materials to the Galveston Wharves as fully as if a bill of sale covering the same had been executed and delivered by the Contractor of the Galveston Wharves. Thereafter in making up of monthly estimate based on work actually performed, the engineer will, as such materials are from time to time used, appropriately adjust the estimates to avoid a double credit on account of such materials. The fact that an estimated value of any work may have been included in monthly estimates shall not be deemed a cause for including it in any subsequent estimate, if subsequent investigation shall have shown the work to have been unsatisfactory and not in accordance with the specifications.

On completion of the Contract, all portions of the work must be gone over carefully by the Contractor personally, or by a member of the firm or an officer of the corporation holding the Contract, who shall satisfy himself that every item is completed and all defects made good, and that all surplus materials, refuse, dirt, or rubbish is cleaned, removed and/or disposed of as the Engineer may direct, and that the whole work is in a finished, satisfactory, neat and tidy condition and ready in all respects for acceptance by the Galveston Wharves. A sworn statement that the condition of the work is as just stated will be required from the Contractor, in addition to the report of the Engineer, before the work will be accepted by the Galveston Wharves, and the Galveston Wharves shall not be held to have accepted the work until the Galveston Wharves passes a resolution to that effect.

Upon the entire completion of the work, the Engineer shall proceed with due diligence to measure up and inspect the work and shall render to the Galveston Wharves and to the Contractor a final estimate of all work performed and materials used or furnished, based upon which the Contractor shall be entitled to be paid the remainder of the contract price payable to the unit prices proposal, or the balance lump sum price and without unit prices, subject to the furnishing by him to the Galveston Wharves of satisfactory proof that all bills for labor, material and equipment rental in connection with the work have been paid, which proof shall consist of the Contractor’s affidavit to that effect, upon the form therefore required by the Galveston Wharves; but if the Galveston Wharves is dissatisfied with such proof, or has reason to believe that in fact all such bills have not been paid, it may require further proof including waiver or release of lien or claims from laborers or materialmen or the renters or the furnishers of equipment. The Engineer will, when he deems it necessary, make test cuts at any place he may select to determine the character of the material and workmanship, and to check dimension, before approving any monthly estimate or the final estimate; and if the work is not in accordance with the specifications, both monthly and final estimates may be held in abeyance until the work is put into satisfactory shape.

12. TIME, ORDER OF COMPLETIONS, DELAYS, EXTENSION OF TIME:

The Contractor further agrees that he will commence work within ten (10) working days after the date of written notice to do so shall have been given to the Contractor, and will complete the work or in the case of material purchases, to complete delivery within the time specified in the Proposal Form, such time beginning on the day written notice to deliver is received, or as otherwise provided by Proposal Form or Contract. Contractor must not begin work before he receives written notice to do so.

A “working day” is defined as a calendar day, excluding Saturdays, Sundays, or any labor holidays (unless otherwise defined in the Special Conditions or Proposal Form).

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It is the meaning and intent of this Contract, unless otherwise herein specifically provided that the

Contractor shall be allowed to prosecute his work at such time and seasons, in such order of precedence, and in such manner as shall be more conducive to economy of construction; provided, however, that the order and time of prosecution shall be such that the work shall be completed in accordance with the Contract, plans and specifications, and within the time of completion designated in this paragraph; provided, also, that when the Galveston Wharves is having other work done, either by Contractor or his own force, the Engineer may direct the time and manner of constructing work done under this Contract so that conflict will be avoided and the construction of the various works being done for the Galveston Wharves shall be harmonized.

Time is of the essence in this contract, it being important that this public improvement be quickly completed. The Contractor and Galveston Wharves understand and agree that a breach of this contract as to completion on time will cause damage to the Galveston Wharves, but further agree that such damages cannot be accurately measured or that the ascertainment will be difficult. Therefore, the parties agree that for each and every working day the work, or any portion thereof shall remain uncompleted after the expiration of the time limit set in the contract, or as extended by the Galveston Wharves, the contract price will be reduced daily at the rate shown in the Proposal Form for every day until completion.

However, the foregoing agreement as to liquidate damages constitutes only an agreement by the Galveston

Wharves and the Contractor as to the minimum amount of damages, which the Galveston Wharves will sustain in any event by reason of the Contractor’s failure to complete the work within the specified time.