1-KSB-2026-WV Bid Document flattened.pdf

i

ADVERTISEMENT

INSTRUCTIONS TO BIDDERS

FORM OF BID

FORM OF GUARANTY

GENERAL CONDITIONS

SPECIAL CONDITIONS

CONSTRUCTION SPECIFICATIONS

FORM OF AGREEMENT

CONTRACTOR’S RELEASE

STATEMENT OF SURETY COMPANY

CONTRACT BOND

LIST OF CONTRACT DRAWINGS

PENNSYLVANIA PREVAILING WAGE RATES

PUBLIC WORKS EMPLOYMENT VERIFICATION

DISADVANTAGED BUSINESS AND NON-DISCRIMINATION/SEXUAL HARASSMENT FORMS

APPENDIX A – CFA GRANT AGREEMENT AND FIRST AMENDMENT (REDACTED COPIES)

BOROUGH OF KENNETT SQUARE

KENNETT SQUARE, PENNSYLVANIA

WATER MAIN INSERTION VALVES

CONTRACT NO. KSB-2026-WV

MARCH 2026

PENNONI ASSOCIATES INC.

CHRISTIANA EXECUTIVE CAMPUS

121 CONTINENTAL DRIVE, SUITE 207

NEWARK, DE 19713

PROJECT NO. KESQB26005

All documents prepared by Pennoni Associates are instruments of service in respect of the project. They are not intended or represented to be suitable for reuse by Owner or others on extensions of the Project or on any other project. Any reuse without written verification or adaptation by Pennoni Associates will be at Owner's sole risk and without liability or legal exposure to Pennoni Associates; and Owner shall indemnify, and hold harmless Pennoni Associates from all claims, damages, losses, and expenses arising out of or resulting therefrom.

Water Main Insertion Valves Contract No. KSB-2026-WV ii

TABLE OF CONTENTS PAGE NO.

A. ADVERTISEMENT ............................................................................................................. A-1

B. INSTRUCTIONS TO BIDDERS ......................................................................................... B-1

C. FORM OF BID ..................................................................................................................... C-1

D. FORM OF GUARANTY ...................................................................................................... D-1

E. GENERAL CONDITIONS .................................................................................................. E-1

1. Definitions ............................................................................................................... E-1

2. Other Contracts ........................................................................................................ E-1

3. Sub-Contracts........................................................................................................... E-2

4. Mutual Responsibility Of Contractors ..................................................................... E-2

5. Fitting And Coordination Of Work .......................................................................... E-2

6. Superintendence By Contractor ............................................................................... E-2

7. Permits, Licenses And Taxes ................................................................................... E-2

8. Provisions Required By Law ................................................................................... E-3

9. Protection Of Work And Property ........................................................................... E-3

10. Temporary Provision For Public Travel .................................................................. E-3

11. Shop Drawings ......................................................................................................... E-3

12. Termination; Delays; Liquidated Damages ............................................................. E-4

13. Inconsistent Specifications And Drawings .............................................................. E-5

14. Use Of Premises ....................................................................................................... E-5

15. Possession Prior To Completion .............................................................................. E-5

16. Changes In The Work .............................................................................................. E-5

17. Claims For Extra Cost .............................................................................................. E-7

18. Disputes ................................................................................................................... E-7

19. Materials And Workmanship ................................................................................... E-7

20. Samples, Certificates, And Tests ............................................................................. E-8

21. Changes In Equipment And/Or Materials ................................................................ E-8

22. Patents ...................................................................................................................... E-9

23. Warranty Of Title ..................................................................................................... E-9

24. The Owner's Right To Do Work .............................................................................. E-9

25. The Owner's Right To Terminate Contract .............................................................. E-9

26. Damages................................................................................................................... E-10

27. Engineer’s Status ..................................................................................................... E-10

28. No Estoppel Or Waiver Of Legal Rights ................................................................. E-10

29. Safety And Health Regulations (OSHA) ................................................................. E-11

30. Remedies .................................................................................................................. E-11

31. Indemnification ........................................................................................................ E-11

32. Sub-Surface Information .......................................................................................... E-12

33. Warranty Of Materials And Equipment .................................................................. E-12

F. SPECIAL CONDITIONS ..................................................................................................... F-1

1. Contract Security ..................................................................................................... F-1

2. Contractor’s Insurance ............................................................................................. F-1

3. Special Coverage Terms .......................................................................................... F-3

4. Progress Schedule .................................................................................................... F-4

5. Location Of Utilities ................................................................................................ F-4

6. Inspection Of Work ................................................................................................. F-5

7. Use Of Explosives Is Not Permitted ........................................................................ F-5 iii

8. Night, Weekend And Holiday Work ....................................................................... F-5

9. Payment To Contractor ............................................................................................ F-5

10. Correction Of Work After Final Payment ............................................................... F-7

11. General Guaranty ..................................................................................................... F-8

12. Office Space (Not Required) ................................................................................... F-8

13. Sanitary Facilities .................................................................................................... F-8

14. Water... ..................................................................................................................... F-8

15. Electricity ................................................................................................................. F-8

16. Lines, Grades And Construction Surveying ............................................................ F-8

17. Contract Standards Act ............................................................................................ F-8

18. Rates Of Wages ....................................................................................................... F-9

19. Pennsylvania Steel Products Procurement Act ........................................................ F-11

20. Act 287 ..................................................................................................................... F-12

G. CONSTRUCTION SPECIFICATIONS ............................................................................... G-1

011000 SUMMARY

012200 UNIT PRICES

013300 SUBMITTAL PROCEDURES

017700 CLOSEOUT PROCEDURES

017839 PROJECT RECORD DOCUMENTS

312333 TRENCHING AND BACKFILLING

324860 RESTORATION

329200 TURF AND GRASSES

331413 PUBLIC WATER DISTRIBUTION PIPING

H. FORM OF AGREEMENT ................................................................................................... H-1

I. CONTRACTOR'S RELEASE .............................................................................................. I-1

J. STATEMENT OF SURETY COMPANY ........................................................................... J-1

K. CONTRACT BOND* ........................................................................................................... K-1

L. LIST OF CONTRACT DRAWINGS ................................................................................... L-1

M. PENNSYLVANIA PREVAILING WAGE RATES ............................................................ M-1

N. PUBLIC WORKS EMPLOYMENT VERIFICATION FORM ........................................... N-1

O. DISADVANTAGED BUSINESS AND NON-DISCRIMINATION/SEXUAL

HARRASSMENT FORMS…………………………………………………………………O-1

APPENDIX A

CFA Grant Agreement and First Amendment (redacted copies)

A-1

A. ADVERTISEMENT

BOROUGH OF KENNETT SQUARE

KENNETT SQUARE, PENNSYLVANIA

Sealed bids will be received electronically through PennBid™ by the Borough of Kennett

Square for Water Main Insertion Valves, Contract KSB-2026-WV until 11:00 AM, prevailing time, on April 2, 2026, at which time they will be publicly read at the Borough of

Kennett Square office, 600 South Broad Street, Kennett Square, PA 19348. All documents and solicitation details are available online anytime at no cost at PennBid™

(www.PennBid.net).

Each bid must be accompanied by a certified check or bid bond payable to the Owner in an amount of not less than ten percent (10%) of the bid or bids. Only bonds from companies licensed to do business in the State where the Owner is located will be accepted and the bond shall so state the same.

This project involves installation of approximately 35 insertion valves on water mains throughout the Borough ranging in size from 6” to 12” diameter mains.

Bids must be submitted unconditionally. No bidder may withdraw bid within sixty (60) days after the scheduled closing time for receipt of bids.

The Owner reserves the right to waive any informality, or to reject any or all bids.

Pennsylvania Department of Labor and Industry Prevailing Wage Rates apply to this project.

This project is being funded in part with a grant through the Commonwealth of Pennsylvania, Commonwealth Financing Authority. All applicable funding program requirements, as further detailed in the bidding documents, apply. Contractors are reminded that a good faith effort be made to solicit MBE/WBE subcontractors.

B-1

B. INSTRUCTIONS TO BIDDERS

1. BIDDER'S RESPONSIBILITY

Each bidder shall familiarize himself with all of the attached forms, Instructions, General Conditions, Specifications, Drawings, et cetera (collectively “Contract Documents”), as he will be held responsible to fully comply therewith. Each bidder must visit the site of the work and acquaint himself with conditions affecting the work.

2. DELIVERY OF BIDS

Bids shall be collected electronically at PennBid™ (www.ebidexchange.com/pennbid). It is the responsibility of the bidder to submit his bid prior to the time of opening. No bid shall be considered after the time set for the receipt of bids.

Bids shall be submitted on the electronic Form of Bid furnished at PennBid™. Submission of paper Bid forms by mail, hand-delivery, e-mail, facsimile, or other method will not be accepted and shall not constitute a responsive bid.

All bid packages shall include:

• Form of Bid (to be completed electronically on PennBid™). ..................... Pgs. C-1 to C-3

• Form of Guaranty ........................................................................................ Pg. D-1

• Bid Security (certified check or bid bond)

• Public Works Employment Verification Form ............................................ Pg. N-1

• Disadvantaged Business Enterprise Contract Solicitation and Commitment Statement……………………………………………………Pg. O-1 to O-3

• Nondiscrimination/Sexual Harassment Form ……………………………. Pg. O-4 to O-5

The apparent three (3) low bidders shall be prepared to provide the original paper copy of all bid forms, including original signatures and seals, within three (3) days of bid opening to the offices of the Owner, if requested to do so by the Owner.

3. BULLETINS

Bidders shall acknowledge electronically on PennBid™ receipt of all bulletins which have been issued during period of bidding and agree that said bulletins shall become part of this contract. The bidders shall list the numbers and issuing dates of the bulletins received and acknowledge same on the appropriate page provided in the Form of Guaranty section of these specifications.

4. BID GUARANTY

Each Bid shall be accompanied by either a certified check or Surety Company's Bid Bond as specified herein under "ADVERTISEMENT", in an amount of not less than ten (10) percent of the base bid, which check or bond shall be payable to the Owner as payee or obligee, and shall be forfeited as liquidated damages if the bidder fails to execute the contract in conformity with the Agreement incorporated in the Contract Documents, and furnish bonds as specified, within ten (10) days after receipt of Contract Documents. Such checks or bid bonds will be returned to all except the three lowest bidders immediately after the award, and the remaining unsuccessful bidders checks or bid bonds will be returned when the contracts executed by both parties are delivered to the successful bidder.

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5. METHOD FOR SUBMITTING BIDS

No bid will be considered unless submitted upon the electronic bid form for the project via PennBid™.

The blank spaces in the bid form shall be filled in correctly, where indicated, for each and every item for which a description is given, and the bidder must state the prices for which he proposes to do each part of the work contemplated.

The bidder shall submit his signed bid electronically in addition to attaching the associated signed forms. If the bid is made by an individual, in addition to his signature, his complete post office address should be given. If made by a firm of partnership, the complete post office address of each member of the firm or partnership must be given. If made by a corporation, the person signing the bid should be the President or Vice President, attested by its Secretary or Treasurer, along with indication of its principal place of business.

If bidder has been incorporated in some state other than Pennsylvania, bidder shall state whether the corporation is registered to do business in Pennsylvania. If bidder operates under an assumed or fictitious name, he shall state whether such name has been registered in Pennsylvania.

No contract will be awarded to a bidder who is a foreign corporation or operating under a fictitious or assumed name unless he has complied or agreed to comply with the proper registration under the laws of this Commonwealth.

6. PROOF OF BIDDER'S RESPONSIBILITY

On request, bidder shall file an experience questionnaire and financial statement with the Owner. The questionnaire and statement shall be certified to be true and correct by an affidavit sworn to or affirmed before a notary public, or other officer empowered to administer oaths or affirmations.

Upon request, bidder shall prove that he has liquid assets, available for the project upon which he is bidding in an amount equal to fifteen percentum (15%) of the first $100,000.00 of the amount of the bid plus ten percentum (10%) of the next $900,000.00 plus five percentum (5%) of the remainder of the bid.

None of the following will be considered as liquid assets:

(a) Capital Stock of the Contractor.

(b) Accounts receivable against which assignments have been made.

(c) Equity in real estate.

(d) Life Insurance.

(e) Reserve representing pre-payment of taxes or other expenses.

(f) Deposits held as security for other contracts.

(g) Capital of proposed subcontractors.

In addition to the financial qualifications, the bidder may be required to prove to the satisfaction of the Owner that he has successfully completed a contract for similar work in an amount of not less than seventy-five percentum (75%) of the amount of the proposed contract.

The foregoing will guide the Owner in determining the responsibility of the bidder, but additional information may be requested by the Owner whenever in its judgment such information is necessary to determine the responsibility of the bidder.

B-3

In the event the bidder fails, refuses or neglects to submit any required information within the reasonable time stated in any request therefore or fails to qualify as a responsible bidder, his bid guaranty shall be forfeited to the use of the Owner, not as a penalty, but as liquidated damages.

7. CHANGES WHILE BIDDING

During the bidding period, bidders may be furnished addenda or bulletins for additions to or alterations of the plans or specifications, if any, which shall be included in the work covered by the Bid and become a part of the contract documents.

If any prospective bidder on the proposed contract is in doubt as to the true meaning of any part of the plans, specifications, or other proposed contract documents, he may submit to the Engineer, electronically via PennBid™, a written request for an interpretation thereof. The bidder submitting the request will be responsible for its prompt delivery. Any interpretation of the proposed documents will be made only by an addendum duly issued electronically at PennBid™ (www.PennBid.net), and a copy of such addendum may be downloaded at any time by each prospective bidder who has received a set of such documents. The Engineer and/or Owner will not be responsible for any other explanations or interpretations of the proposed documents.

8. BID OPENING PROCEDURE

Sealed bids on projects will be received by the Owner via PennBidTM until the time stated in the "Advertisement" at which time all bids will be publicly opened and read. The Owner reserves the right to reject any or all bids, or parts thereof, as it may deem best for the interest of the Owner.

9. COLLUSIVE BIDS

The bid of any bidder or bidders who engage in collusive bidding shall be rejected. Any bidder who submits more than one bid in such manner as to make it appear that the bids submitted are on a competitive basis from different parties shall be considered a collusive bidder. The Owner may reject the bid proposals of any collusive bidder upon bid opening. However, nothing in this section shall prevent a bidder from revising their bid proposal electronically via PennBidTM at any time before the Bid due time.

10. WITHDRAWAL OF BIDS

After bid opening, no bidder may withdraw his bid within the time period indicated herein under "ADVERTISEMENT". Requests for withdrawal of bids after bid opening due to clerical error shall be made in accordance with Commonwealth of Pennsylvania Act. No. 4 (S.B. 793).

11. AWARD OF CONTRACT

The Owner shall have the right to reject any or all bids or any parts thereof, or items therein. The Owner’s Solicitor shall have the right to waive technicalities for the best interests of the Owner. If an award of Contract is made, it will be made to the lowest responsible bidder, based on the Base Bid or any combination of the Base Bid and any of the selected Add Items for that Contract within the time period indicated herein under “ADVERTISEMENT” or if not specified, within 60 days of the bid opening.

Thirty (30) day extensions of time may be made by the mutual written consent of the Owner and the lowest responsible bidder. If the lowest bidder withdraws his bid or refuses or fails to proceed

B-4 according to the Contract Documents, the Owner shall have the right to award the Contract to the next lowest responsible bidder or to reject all bids and re-bid the Project.

12. EXECUTION OF CONTRACT

The individual, firm or corporation to whom or to which the contract has been awarded within ten (10) days after receipt of said documents shall sign and return to the Owner, the contract documents and substitute for the certified check, or bid bond, which accompanied the bid, a contract bond or bonds in the penal sum at least equal to the amount of such contract, for the faithful performance of the contract, and also an additional bond for labor and materials, in the penal sum at least equal to the amount of such contract, to cover the prompt payment in full for all materials furnished and labor supplied or performed, executed by a surety company or companies qualified to do business in the state where bid and a maintenance bond in the amount stipulated herein under "SPECIAL CONDITIONS". Each such bond shall be on the form approved by the Owners Solicitor.

The contract shall be executed by the Owner and the successful bidder within 30 days of the date the contract is awarded unless the time shall be extended by the mutual written consent of the Owner and the successful bidder.

No bids or awards shall be considered binding upon the Owner unless and until the contract documents are properly executed by both parties.

13. FAILURE TO EXECUTE CONTRACT

If the lowest responsible bidder to whom the contract is awarded fails to submit bonds or execute the contract within the time specified, the amount of the bid guaranty shall be paid to the Owner as liquidated damages. In such case the Owner, at his discretion, may award the contract to the next lowest responsible bidder, or reject all bids.

14. SUBLETTING OR ASSIGNING OF CONTRACT

The Contractor shall not sublet, sell, transfer, assign or otherwise dispose of the contract or any portion thereof, of his right, title, or interest therein, without the written consent of the Owner.

15. REJECTION OF BIDS

The right is reserved by the Owner at its discretion to reject any or all bids or parts thereof. Bids may be rejected if they show any omission, alterations of form, addition or deductions not called for, conditional or uninvited alternate bids, or irregularities of any kind, or any other reason as the Owner shall determine. However, the Owner reserves the right to waive any defects or irregularities on bids.

16. SUB-SURFACE INFORMATION

If a prospective bidder desires to make borings or soundings or to dig test pits at or near the site of the work, he shall do so at his own expense subject to written approval of the Owner. Before making any excavations, borings or sounding or digging test pits the bidder shall check the records for any municipal, public utility, or privately-owned structures that may be disturbed. In Pennsylvania, PA One Call requires notice three (3) working days prior to start of work by calling 1-800-242-1776.

Bidders must obtain OWNER’S or ENGINEER’S permission three (3) working days before making any borings and shall close bore holes and test pits.

B-5

Prior to performing any sub-surface work, the Contractor must provide a Certificate of Insurance that names the Borough of Kennett Square as an “additional insured.” Limits of insurance shall be as specified in Section F.2 of these specifications.

Section C, Form of Bid, is to be completed ELECTRONICALLY via PennBidTM.

C-1

C. FORM OF BID

TO: Borough of Kennett Square 600 South Broad Street Suite 110 Kennett Square, PA 19348

Ladies & Gentlemen:

This bid is submitted in accordance with your advertisement inviting bids to be received until 11:00 AM., prevailing time, on April 2, 2026, for:

Having carefully examined the Contract Documents together with all Addenda or Bulletins, as prepared by the Engineers, and being familiar with the various conditions affecting the work, (including those under the General Conditions which provide for the payment of liquidated damages to the owner, hereafter set at $ 500.00 per calendar day, in the event the contract is not completed within the allotted time) the undersigned agrees to furnish all labor, materials and equipment to construct and complete within 90 consecutive calendar days, all the necessary contract work, in accordance with said contract documents, for which the following units and/or lump sum prices are submitted.

C-2

ITEM

NO.

QUANTITY DESCRIPTION UNIT PRICE

ESTIMATED

TOTAL

BASE BID

1. 40 Hours Subsurface Utility Locating. Price complete, in place, per hour:

DOLLARS $ $

2. 36 Each Soft Dig Test Pit. Price complete, in place, per each:

3. 13 Each 6” Insertion Valve on AC pipe, in pavement. Price complete, in place, per each:

4. 5 Each 6” Insertion Valve on DI or CI pipe, in pavement. Price complete, in place, per each:

________________________DOLLARS $ $

5. 1 Each 6” Insertion Valve on DI or CI pipe, in unpaved Area. Price complete, in place, per

__________________DOLLARS $ $

6. 5 Each 8” Insertion Valve on AC pipe, in

7. 1 Each 8” Insertion Valve on PVC pipe, in

_________________________ DOLLARS $ $

8. 5 Each 12” Insertion Valve on DI or CI pipe, in

C-3

ITEM

NO.

QUANTITY DESCRIPTION UNIT PRICE

ESTIMATED

TOTAL

9. 1 Each 12” Insertion Valve on DI or CI pipe in Unpaved Area. Price complete, in place, per

10. 10 Days Traffic Control with Flaggers. Price complete, in place, per day:

11. 25 C.Y. Miscellaneous Excavation and Backfill.

Price complete, in place, per cubic yard:

12. 31 Each Remove Existing Valve Box. Price Complete, in place, per each:

________________________DOLLARS $ $

TOTAL BASE BID FOR CONTRACT NO. KSB-2026-WV

(Based on Estimated Quantities) $

C-4

ITEM

NO.

QUANTITY DESCRIPTION UNIT PRICE

ESTIMATED

TOTAL

ADD ITEMS

13. 1 Each 4” Insertion Valve No. 1 on DI pipe or CI pipe in Pavement. Price complete, in place, lump sum:

__________________________DOLLARS $ $

14. 1 Each 4” Insertion Valve No. 2 on DIP or CIP in Pavement. Price complete, in place, lump sum:

15. 1 Each 4” Insertion Valve No. 3 on DI pipe or CI pipe in Pavement. Price complete, in place, lump sum:

16. 1 Each 6” Insertion Valve No. 14 on AC pipe, in

17. 1 Each 6” Insertion Valve No. 15 on AC pipe in

TOTAL AMOUNT BID INCLUDING BASE BID AND ALL ADD ITEMS

FOR CONTRACT NO. KSB-2026-WV

(Based on Estimated Quantities) $ __

D-1

D. FORM OF GUARANTY

Accompanying this Bid is a in the amount of

Dollars ($ ) as bid security.

BULLETINS:

The bidder acknowledges receipt of the hereinafter enumerated bulletins which have been issued during period of bidding and agrees that said bulletins shall become a part of this contract. The bidder shall list below the numbers and issuing dates of the bulletins.

Bulletin No. Issuing Date

The undersigned hereby certifies that this Bid is genuine, and not sham or collusive, or submitted in the interest or on behalf of any person, firm or corporation not herein named, and has not, induced any other persons to refrain from biddings, and has not in any way sought by collusion to secure for himself an advantage over any other bidder.

FIRM NAME

ADDRESS

PHONE

Official Seal

Attest By By

TITLE TITLE

E-1

E. GENERAL CONDITIONS

1. DEFINITIONS

The OWNER is the party referred to in the Advertisement and whenever the word Owner is used herein, it shall refer to and designate the party of the first part of the contract contained herein.

The CONTRACTOR is the individual, group, partnership, or corporation undertaking to do the work herein specified (including his or their heirs, legal representatives, successors or assigns) and is the party of second part of the contract contained herein.

The ENGINEER, the person, firm, or corporation who is designated by the OWNER on the contract contained herein.

The CONTRACT DOCUMENTS consist of the Advertisement, Instructions to Bidders, Form of Bid, General and Special Conditions, Construction Specifications, Form of Agreement, Form of Bond, List of Contract Drawings, Standard Details and the plans.

A SUBCONTRACTOR is an individual group, partnership, or corporation, having a direct contract with the Contractor to furnish a special service, labor or material towards the completion for the Contractor’s contract.

An INSPECTOR is an authorized representative of the Engineers and/or Owner, assigned to inspect the work performed and the materials supplied by the Contractor as to compliance with the Contract Documents.

The term WORK, used herein, includes all labor and/or materials, equipment, and any other facilities necessary for the Contractor to complete the contract.

The term APPROVED, used herein, shall be held to mean as approved by the Engineer.

The term SUBSTANTIAL COMPLETION used herein shall be held to mean construction that is sufficiently completed in accordance with the Contract Documents and certified by the Engineer of the Owner, as modified by change orders agreed to by the parties, so that a project can be used, occupied, or operated for its intended use. In no event, shall a project be certified as substantially complete until at least 90% of the work on the project is completed.

NOTICE shall be deemed to have been duly served if written and delivered in person to the individual, or to a member of the firm, or to an officer of the corporation for whom it is intended, or if delivered at or sent by registered mail to the last business address known to him who gives notice.

2. OTHER CONTRACTS

The Owner may award, or may have awarded other contracts for additional work, and the Contractor shall cooperate fully with such other Contractors, by scheduling his own work with that to be performed under other contracts as may be directed by the Owner. The Contractor shall not commit or permit any act which will interfere with the performance of work by any other Contractor as scheduled.

E-2

3. SUB-CONTRACTS

No part of the contract shall be sublet without the prior written approval of the Owner and setting forth requirements to be met.

4. MUTUAL RESPONSIBILITY OF CONTRACTORS

If, through acts or neglect on the part of the Contractor, any other Contractors, or any subcontractor, shall suffer loss or damage on the work, the Contractor shall settle with such other Contractor or subcontractor by agreement or arbitration, if such other Contractor or subcontractor will so settle. If such other Contractor, or Subcontractor shall assert any claim against the Owner on account of any damage alleged to have been so sustained, the Contractor shall defend and indemnify Owner for any and all claims, including but not limited to, claims for delay, liquidated damages, increased costs, damage to materials or work, overhead, property damage or personal injury, made by other Contractors and Subcontractors performing work or supplying materials to the project alleged to have been caused in whole in part by any Act or Omission of the Contractor whether or not caused in whole or in part by the acts or omissions of Owner, its Engineers, employees or Contractors.

5. FITTING AND COORDINATION OF WORK

The Contractor shall be responsible for the proper fitting of all work and for the coordination of the operations of all trades, subcontractors, or materialmen engaged upon this contract. He shall be prepared to guarantee to each of his subcontractors the locations and measurements which they may require for the fitting of their work to all surrounding work.

6. SUPERINTENDENCE BY CONTRACTOR

At all times during which work is being performed under or affecting this contract, the Contractor shall keep a competent superintendent acceptable to the Engineer constantly on the site from the commencement of work under this contract until the completion thereof, who shall be constantly in touch with work and in all interlocking contracts affected thereby. The superintendent shall, in the absence of the Contractor, see that the instructions of the Engineer are carried out and all directions given such superintendent shall be as binding as if given to the Contractor.

7. PERMITS, LICENSES AND TAXES

The Contractor shall give all notice required by and comply with all applicable laws, ordinances, and codes of the Local Government, all construction work and/or utility installations shall comply with all applicable ordinances, and codes including all written waivers. Before installing any work, the Contractor shall examine the Drawing and Detail Specifications for compliance with applicable ordinances and codes and shall immediately report any discrepancy to the Owner. Where the requirements of the Drawings and Detail Specifications fail to comply with such applicable ordinances or codes, the Owner will adjust the Contract by Change Order to conform to such ordinances or codes (unless waivers in writing covering the difference have been granted by the governing body or department) and make appropriate adjustment in the Contract Price or stipulated unit prices.

Should the Contractor fail to observe the foregoing provisions and proceed with the construction and/or install any utility varying with any applicable Ordinance or code, including any written waivers (notwithstanding the fact that such installation is in compliance with the Drawings and Detail Specifications) the Contractor shall remove such work without cost to the Owner.

E-3

The Contractor shall at his own expense, secure and pay to the appropriate department of the Local Government the fees, or charges for all permits required by the local regulatory body or any of its agencies.

Permits for the opening and/or occupation of Township or Borough roads shall be obtained by the Contractor and State Highway permits shall be obtained by the Owner. However, all inspection fees and/or any other charges shall be borne by the Contractor, whether same is billed directly to him or to the Owner. Should any such bill be left unpaid by the Contractor, the Owner shall be empowered to pay such bills and the cost thereof deducted from any monies due or to become due the Contractor.

Whenever the proposed construction requires a sale, consumers use, or other similar tax, the contractor shall pay for same.

8. PROVISIONS REQUIRED BY LAW

Each and every provision of law and clause required by law to be inserted in this Contract shall be deemed to be inserted herein and the Contract shall be read and enforced as though it were included herein; and, if through mistake or otherwise, any such provision is not inserted or is not correctly inserted, then upon the application of either party the Contract shall forthwith be physically amended to make such insertion.

9. PROTECTION OF WORK AND PROPERTY

The Contractor shall provide adequate protection against injury or loss arising in connection with this contract for all his work and the property of the Owner. He shall make good any such damage, injury, or loss, except such as may be due directly to errors in the drawings or specifications or caused by agents or employees of the Owner. He shall adequately protect adjacent property as provided by law and the specifications and drawings. He shall provide facilities for protection required by public authority or local conditions as passageways, guard fences, lights, etc.

The Contractor shall preserve and protect all trees, shrubs, and grass on or adjacent to the site which do not reasonably interfere with the construction as may be determined by the Engineer and the Contractor shall be responsible for all unauthorized cutting or damaging or trees and shrubs, including damage due to careless operation of equipment, stockpiling of materials or tracking of grass areas by equipment. The Contractor shall remove only those trees designated by the Engineer to be removed.

10. TEMPORARY PROVISION FOR PUBLIC TRAVEL

The Contractor shall perform his work in such a manner as to interfere as little as possible with the use of intersecting roads or adjoining property. No excavation shall be left open or other obstruction allowed to remain longer than is absolutely necessary; and the Contractor shall provide all safeguards and temporary passageways that may be necessary for the convenience and protection of all persons using said property either day or night.

11. SHOP DRAWINGS

The Contractor shall check and verify all field measurements and shall submit with such promptness as to cause no delay in his own work or in that of any other Contractor, three copies, checked and approved by him, of all shop or setting drawings and schedules required for the work of the various trades. The Engineers shall review, with reasonable promptness, such schedules and drawings only for conformance with the design concept of the Project and compliance with the information given in the

E-4

Contract Documents. The Contractor shall make any corrections required by the Engineers, file with him two copies and furnish such other copies as may be needed. The Engineers' review of such drawings or schedules shall not relieve the Contractor from responsibility for deviations from Drawings or Specifications, unless he has in writing called the Engineers' attention to such deviations at the time of submission, and secured his written approval, nor shall it relieve him from responsibility for errors in shop drawings or schedules.

12. TERMINATION; DELAYS; LIQUIDATED DAMAGES

If the Contractor refuses or fails to prosecute the work with such diligence as will insure its completion within the time specified in these Contract Documents, or as modified as provided in these Contract Documents, the Owner, by written notice to the Contractor, may terminate the Contract and the Contractor's right to proceed with the work. Upon such termination, the Owner may take over the work and prosecute the same to completion by contract or otherwise, and the Contractor and his sureties shall be liable to the Owner for additional cost incurred by the Owner, as well as liquidated damages for any delay in the completion of the work as provided below. If the Contractor's right to proceed is so terminated, the Owner may take possession of and utilize in completing the work any materials, tools, equipment, and plant on the site of the work as necessary to complete the project.

If the work is not completed within the time stipulated, including any extensions of time for excusable delays as herein provided, the Contractor shall pay to the Owner Liquidated Damages for each calendar day of delay, as set forth in the Form of Agreement, and the Contractor and his sureties shall be liable to the Owner for the amount thereof.

The right of the Contractor to proceed shall not be terminated nor shall the Contractor be charged with Liquidated Damages for any delays in the completion of the work due:

To any acts of the Government, including controls or restriction upon or requisitioning of materials, equipment, tools, or labor by reason or war, national defense, or any other national emergency;

To any acts of the Owner;

To causes not reasonably foreseeable by the parties to this contract at the time of the execution of the contract which are beyond the control and without the fault of negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, acts of another Contractor in the performance of some other contract with the Owner, fires, floods, epidemics, quarantine, restrictions, strikes, freight embargoes, and weather of unusual severity such as hurricanes, tornadoes, cyclones and other extreme weather conditions; and

To any delay of any subcontractor occasioned by any of the causes specified in sub-paragraphs above.

Provided, however, that the contractor promptly notified the Owner within ten (10) days in writing of the cause of the delay. Upon receipt of such notification, the Owner shall ascertain the facts and the cause and extent of delay. If, upon the basis of the facts and the terms of this contract, the delay is properly excusable, the Owner shall extend the time of completing the work for a period of time commensurate with the period of excusable delay.

Should the completion of the work be delayed beyond the time herein specified for completion for any reason other than the act of neglect of the Owner, or an approved extension of time, the Contractor shall pay the Owner the actual engineering expenses incurred by the Owner as a result of such delay and the Owner may deduct such engineering costs from any payments due or to become due the

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Contractor.

Waiver of Liquidated / Consequential Damages:

Expect as mutually agreed by the Parties, Contractor agrees to waive all claims for Liquidated and Consequential Damage, damages that may arise out of or relate to this Contract, expect those specific items mutually agreed upon by the Parties.

13. INCONSISTENT SPECIFICATIONS AND DRAWINGS

Anything mentioned in the Detail Specifications and not shown on the Drawings, or shown on the Drawings and not mentioned in the Detail Specifications, shall be of like effect as if shown on or mentioned in both. In case of difference between Drawings and Detail Specifications, the better quality or greater quantity of work or materials and the more stringent requirements shall be included in the bid, and unless otherwise ordered in writing, shall be performed or furnished.

14. USE OF PREMISES

The Contractor shall confine his equipment, storage of materials and construction operations to the Contract Limits as shown on the Drawings and as prescribed by ordinances or permits, or as may be directed by the Owner, and shall not unreasonably encumber the site or public rights of way with his materials and construction equipment. No material of any kind may be stored on Borough, Township or State Roads.

The Contractor shall comply with all reasonable instructions of the Owner and the ordinances and codes of the Local Government regarding signs, advertising, traffic, fires, explosives, danger signals, and barricades.

15. POSSESSION PRIOR TO COMPLETION

The Owner shall have the right to take possession or use any completed or partially completed part of the work, but such possession or use shall not be deemed an acceptance of any work not completed in accordance with the Contractor.

16. CHANGES IN THE WORK

The Owner may make changes in the scope of the work required to be performed by the Contractor under the Contract or make additions thereto, or omit work therefrom, without invalidating the Contract, and without relieving or releasing the Contractor from any of his obligations under the Contract or any guarantee given by him pursuant to the Contract provisions, and without affecting the validity of the guaranty bonds, and without relieving or releasing the surety or sureties of said bonds.

All such work shall be executed under the terms of the original Contract unless it is expressly provided otherwise in writing by the Owner.

Except for the purpose of affording protection against endangering life or property, the Contractor shall make no changes in the materials used or in the specified manner of constructing and/or installing the improvements or supply additional labor, services, or materials beyond that actually required for the execution of the Contract, unless in pursuance of a written order from the Owner authorizing the Contractor to proceed with the change. No claim for an adjustment of the Contract price will be valid unless so ordered.

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Where applicable, when unit prices are contained in the Bid, the Owner may order the Contractor to proceed with desired changes in the work. The value of such changes is to be determined by the measured quantities involved and the applicable unit prices specified in the Contract. The Owner shall, before ordering the Contractor to proceed with desired changes, request an itemized bid from him covering the work involved in the change, following which the procedure shall be as follows:

If the bid is acceptable, the Owner will prepare the change order in accordance therewith for acceptance by the Contractor and;

If the bid is not acceptable, and prompt agreement between the two parties cannot be reached, the Owner may order the Contractor to proceed with the work on a COST OF WORK basis.

Payment under COST OF WORK will be for the actual and necessary direct cost of the work in accordance with the orders of the Engineer, and in addition thereto the percentage of such cost hereafter stated. "Actual and necessary direct cost" shall be deemed to include the following:

(a) The actual expenditure for labor for the time actually engaged in the work, including the distributed cost of foreman in direct charge of such labor and insurance, taxes and other payments applicable to such labor.

(b) The actual expenditure for materials used up or incorporated in the work.

(c) A reasonable hourly, weekly or monthly rental as applicable, as determined by the Engineers, for use of motor trucks and special equipment such as power-operated shovels, cranes, drills, paving breakers, etc. (but not including small hand tools), at a rate not to exceed the current local rate charged for the type of equipment used, for the time that such equipment is required on the work for the performance of COST OF WORK EXCLUSIVELY. The rental price shall be for the equipment provided on the work and shall include transportation to and from the work, fuel, power, lubricants, operating tools, repairs, depreciation, replacements, and the sharpening of drills and other tools required to keep them in the best working condition.

To the actual and necessary direct cost of the work done under COST OF WORK as noted above, fifteen (15) percent will be added to the expenditure for labor as set forth in sub-paragraph (1) above and then (10) percent will be added to the expenditure for materials. No additions will be allowed to the rental of trucks, and special equipment. These percentages, and the rental price for equipment furnished, shall be deemed to cover the cost of heat, light, use and upkeep of small hand tools, administration, engineering, superintendence, all loss, damage, risk, and expenses incidental to the work and profit. The Contractor shall have no claim in excess of the above, such payments being in full compensation for the performance of such work and the furnishing of such materials and for all expense in connection therewith and incidental thereto.

Should the Contractor sublet any portion of the work to be executed under COST OF WORK payment for that portion will be computed as the actual and necessary direct cost as defined above, exclusive of any profit to the subcontractor, plus the percentages allowed, plus five (5) percent of the total paid to the sub-contractor.

The Contractor shall submit daily a statement in duplicate of work done on a COST OF WORK basis within twenty-four hours of the time the work is done, and representatives of the Engineer and the Contractor shall make daily comparison of the time and rates of labor, material used, etc., as given therein. After correction, if necessary, this comparison shall be signed by each and filed with the Engineer and the Contractor. The Contractor shall submit to the Engineer monthly, prior to each

E-7 current estimate, four copies of an itemized statement of the amount and value of labor and materials furnished, accompanied by the original receipted bills for commodities purchased or for work performed under a subcontract, and by an affidavit certifying the correctness of the said statement. The Engineer shall have access to any books, vouchers, records, and memoranda showing the labor employed and the materials actually used on the specific operation and the actual net cost thereof. It is hereby agreed and understood that deadlines for submissions including but not limited to daily statements of work done, itemized statements of amount of value of labor, original receipts for bills and commodities purchased, and an affidavit certifying the correctness of the said statements are of the essence and failure to submit in a timely manner shall constitute a waiver of Contractor’s claim for changes in the work as defined under paragraph 16.

17. CLAIMS FOR EXTRA COST

If the Contractor claims that any instructions by Drawing or otherwise involve extra cost or extension of time, he shall, within ten (10) days after the receipt of such instructions, and in any event before proceeding to execute the work, submit his protest thereto in writing to the Owner, stating clearly and in detail the basis of his objections. No such claim will be considered unless so made.

Any discrepancies which may be discovered between actual conditions and those represented by the Drawings and maps shall at once be reported to the Owner and work shall not proceed except at the Contractor's risk, until written instructions have been received by him from the Owner. If, on the basis of the available evidence, the Owner determines that an adjustment of the Contract Price and/or Time is justifiable, the procedure shall then be as provided herein.

18. DISPUTES

All disputes arising under this Contract or its interpretation, whether involving law or fact or both, or extra work and all claims for alleged breach of contract within (10) days of commencement of the dispute be presented by the Contractor to the Owner for decision. All papers pertaining to claims shall be filed in quadruplicate. Such notice need not detail the amount of the claim but shall state the facts surrounding the claims in sufficient detail to identify the claim, together with its character and scope.

In the meantime, the Contractor shall proceed with the work as directed. Any claim not presented within the time limit specified within this paragraph shall be deemed to have been waived, except that if the claim is of a continuing character and notice of the claim is…