4851-01-26 Addendum No. 1.pdf

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Attached to
General Services Expansion
Solicitation number
10474851-01-26A
Issued by
Lee County, North Carolina

About this file

This Addendum No. 1 to the Project Manual modifies the bidding documents for Lee County, North Carolina's General Services Building Expansion project in Sanford, North Carolina. The addendum, dated May 27, 2026, supersedes previous documents and introduces revised General Conditions of the Contract for Construction (Section 007200) and updates to Drawing A3.1.1 (Door, Window Frame Schedule and Details). A pre-bid conference was held on May 14, 2026, with the sign-in log posted to www.moseleydesigns.com/bidding for informational purposes. The project involves a 2,353 square foot addition to the existing 5,669 square foot General Services Building at 805 South 5th Street, Sanford, North Carolina, connected by a prefabricated canopy. The scope includes comprehensive building construction with electrical, plumbing, mechanical, interior and exterior work, plus site development featuring a new 25,000 square foot paved parking area. The addition will contain 13 office spaces, two toilet rooms, a training room, kitchenette, storage area, waiting area, corridors, and entry vestibule. Bid submission deadline is June 16, 2026, at 10:00 A.M. Eastern Standard Time at the Lee County Finance office, 115 Chatham Street, Suite 301, Sanford, North Carolina 27330. Substantial completion is required no later than July 2027, with final completion within 60 calendar days thereafter, measured from a Notice to Proceed within 45 calendar days from bid opening.

The contract establishes liquidated damages of $1,000 per calendar day for failure to achieve substantial completion and $500 per day for failure to achieve final completion. Performance and Payment Bonds, each covering 100 percent of the contract sum, are required, along with bid bonds equal to five percent of the bid amount, payable to Lee County, North Carolina. The project includes a 10 percent minority business enterprise (HUB-certified subcontractor) participation goal, with identified subcontractor categories for plumbing, mechanical, and electrical work. Bidders must comply with North Carolina's E-Verify employment verification requirements and provide certifications regarding Iran divestment and non-discrimination. The General Conditions establish comprehensive contractor obligations including insurance requirements (General Liability with $2,000,000 aggregate limits, Workers' Compensation as required by North Carolina law, and All Risk Property Insurance), indemnification provisions, safety compliance with OSHA and North Carolina occupational safety standards, and strict adherence to erosion control measures under the Sedimentation Pollution Control Act of 1973. The contract documents specify compliance with ASTM standards, ACI standards, and the North Carolina State Building Code, with special inspections required for structural steel welding, concrete placement, masonry construction, and soils work. Two copies of the complete bid package must be submitted by bidders.

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PROJECT MANUAL

LEE COUNTY GENERAL SERVICES

BUILDING EXPANSION

SANFORD, NORTH CAROLINA

ARCHITECT’S PROJECT NO.: 651939

LEE COUNTY BID NO.: 4851-01-26

ARCHITECT/ENGINEER RALEIGH, NORTH CAROLINA

WITHERSRAVENEL, INC.

CIVIL CONSULTANT RALEIGH, NORTH CAROLINA

VOLUME 1 OF 1

APRIL 8, 2026

ADDENDUM 01 - COVER SHEET

MAY 27, 2026

LEE COUNTY GENERAL SERVICES BUILDING EXPANSION

SANFORD, NORTH CAROLINA

MAY 27, 2026 ADDENDUM NO. 01 Page 1 of 1

GENERAL: 1

Planholders are requested to insert this Addendum in the front of their Project Manual. Inform all 2 concerned that the Bidding Documents are modified by this Addendum. 3

The following modifications and clarifications are hereby made a part of the Bidding Documents and 4 supersede or otherwise modify the provisions of the published Project Manual and Drawings, dated 5

MAY 27, 2026 - Addendum No. 01. Refer to the Drawings, Specification Sections, or other 6

Documents, if any, attached to this Addendum, which are hereby made a part of this Addendum. 7

A Pre-Bid Conference was held on May 14, 2026. A copy of the sign-in log has been posted to: 8 www.moseleydesigns.com/bidding for information only and is not considered a part of the Bidding 9

Documents. 10

MODIFICATIONS TO ADDENDUM NO. 1: 11

DELETE the previously issued Documents indicated below in their entirety and SUBSTITUTE the 12 revised Documents, noted as Addendum 01, dated MAY 27, 2026. 13

DRAWING A3.1.1 – DOOR, WINDOW FRAME SCHEDULE AND DETAILS 14

MODIFICATIONS TO THE PROJECT MANUAL AND DRAWINGS: 15

ADD new Documents in their entirety, noted as Addendum 01 dated MAY 27, 2026. 16

SECTION 007200 – GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION 17

DRAWING A3.1.1 – DOOR, WINDOW FRAME SCHEDULE AND DETAILS 18

DELETE the previously issued Documents indicated below in their entirety and SUBSTITUTE the 19 revised Documents in their entirety, noted as Addendum 01, dated MAY 27, 2026. 20

REFER TO DRAWINGS ATTACHED TO THE END OF THIS ADDENDUM 22

REFER TO SPECIFICATION SECTIONS ATTACHED TO THE END OF THIS ADDENDUM 24

END OF ADDENDUM NO 01 32

Initial Here: ____

GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

Table of Contents

ARTICLE 1. DEFINITIONS

ARTICLE 2. CORRELATION, INTERPRETATION AND INTENT OF CONTRACT

DOCUMENTS

ARTICLE 3. FAMILIARITY WITH WORK, CONDITIONS AND LAWS

ARTICLE 4. BONDS

ARTICLE 5. INSURANCE AND INDEMNITY

ARTICLE 6. OTHER DOCUMENTS AND SUBMITTALS

ARTICLE 7. CONTRACTOR

ARTICLE 8. OWNER

ARTICLE 9. CONSTRUCTION MANAGER

ARTICLE 10. DESIGNER

ARTICLE 11. CONTRACT TIME

ARTICLE 12. CHANGES IN THE WORK

ARTICLE 13. CHANGE OF THE CONTRACT PRICE

ARTICLE 14. UNFORESEEN CONDITIONS

ARTICLE 15. CORRECTION OF WORK BEFORE FINAL PAYMENT

ARTICLE 16. CORRECTION OF WORK AFTER SUBSTANTIAL COMPLETION;

WARRANTIES AND GUARANTIES

ARTICLE 17. OWNER’S RIGHT TO DO WORK

ARTICLE 18. PARTIAL PAYMENTS

ARTICLE 19. FINAL PAYMENT

ARTICLE 20. CONTRACTOR, SUBCONTRACTOR AND SUPPLIER AFFIDAVIT

ARTICLE 21. ASSIGNMENTS AND SUBCONTRACTS

ARTICLE 22. MEASUREMENTS

ARTICLE 23. CONTRACTOR AND SUBCONTRACTOR RELATIONSHIPS

ARTICLE 24. USE OF PREMISES

ARTICLE 25. DISPUTE RESOLUTION

*AD-01

GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION MAY 27, 2026

SECTION 07200SECTION 007200

ARTICLE 26. TAXES

ARTICLE 27. OPERATION OF OWNER’S FACILITIES

ARTICLE 29. TERMINATION OR SUSPENSION BY THE OWNER FOR CAUSE

ARTICLE 29. TERMINATION OR SUSPENSION BY THE OWNER FOR CONVENIENCE

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ARTICLE 1. DEFINITIONS

1.1 Agreement- the Contract Agreement, these general conditions, and any supplementary conditions, advertisement, instructions to bidders, specifications, drawings, bonds, addendums, drawings.

1.2 Beneficial Occupancy- the point at which the Project can be occupied by the Owner for its intended purpose, upon achievement of Substantial Completion, as defined in 1.35.

1.3 Change Order- a written order to the Contractor signed by the Owner and the Designer authorizing an addition, deletion, or revision in the Work and/or an adjustment in the

Contract Price and/or the Contract Time issued after execution of the Contract Agreement.

1.4 Completion Date- those dates identified as completion dates in the Contract Construction

Schedule or elsewhere in the Contract Documents.

1.5 Contract Agreement- the document executed by the Contractor and Owner to formally memorialize their consent to the terms of the Agreement.

1.6 Construction Change Directive- a written order to the Contractor signed by the Owner and the Designer directing an addition, deletion, or revision in the Work after execution of the

Contract Agreement, in circumstances when the parties have been unable to agree on an adjustment to the Contract Price or the Contract Time, but the Owner requests that the

Contractor proceed with said Work subject to adjustment of the Contract Price and/or

Contract Time under the procedures described herein.

1.7 Construction Manager- the person or firm designated as the Construction Manger in the

Contract Documents, or their authorized representatives. The Construction Manager, as referred to herein, will be referred to hereinafter as if each were of the singular number, masculine gender.

1.8 Contract Construction Schedule- that schedule identified as the Contract Construction

Schedule.

1.9 Contract Documents- all of the documents that make up the Agreement, plus the Drawings and Specifications that describe the scope of the work, plus allowable modifications to the contract documents.

1.10 Contract Price- the total monies payable to the Contractor under the Contract Documents.

1.11 Contract Time- the number of calendar days stated in, or computed from, the Contract

Documents for the completion of the Work, or any portion thereof. Time of completion is of the essence. The time used and referred to on the Project will be that time which is observed in Sanford, Lee County, North Carolina, being Eastern Daylight Savings Time, Eastern

Standard Time, or other as designated by the Designer.

1.12 Contractor- the Contractor shall be that party identified in the Agreement.

1.13 Days- unless otherwise indicated, the term “days” shall mean consecutive calendar days.

1.14 Daylight Hours- the hours or portion of hours between sunrise and sunset local time.

1.15 Designer- the person or firm designated as the Designer, in the Contract Documents, or their authorized representatives. The Designer(s), as referred to herein, shall mean architect, landscape architect, and/or engineer. They will be referred to hereinafter as if each were of the singular number, masculine gender.

1.16 Drawings- the drawings are the graphic and pictorial portions of the Contract Documents, wherever located and whenever issued, showing the design, location, and dimensions of the

Work, and generally including plans, elevations, sections, details, schedules and diagrams. A list of the Drawings is contained in the Supplemental General Conditions.

1.17 Field Order- a written order issued by the Designer which clarifies or interprets the

Contract Documents or orders minor changes in the Work in accordance with the Contract

Documents.

1.18 Final Completion- the point at which the Contractor has, as determined by the Designer, completed the Work, with the exception of guaranty and warranty obligations, and becomes entitled, upon the recommendation of the Designer and determination by the Owner, to final payment.

1.19 Liquidated Damages- An amount, as stated in the Contract Agreement, reasonably estimated in advance to cover the consequential damages associated with the Owner’s economic loss in not being able to use the Project for its intended purposes at the end of the contract’s completion date as amended by change order, if any, by reason of failure of the contractor(s) to complete the work within the time specified.

1.20 Modification- a written amendment to the Contract Documents signed by the Owner and the Contractor and identified therein as such, or a Change Order, or a Construction Change

Directive, or a Field Order.

1.21 Notice to Proceed- see Article 11.3.

1.22 Owner- the Owner is the person designated as such in the Agreement.

1.23 Owner’s Authorized Representative- a person or persons, employed by the Owner and designated from time to time by written notice to the Contractor to administer the Contract

Documents, and to observe and monitor the Work on behalf of the Owner with authority and responsibility as herein specified.

1.24 Notice- the term “notice” or “written notice” as used herein shall mean and include all written notices, demands, instructions and claims, approvals and disapprovals furnished by the Owner or the Designer to obtain compliance with the requirements of the Contract

Documents as well as all written notices, demands, instructions and claims furnished by the

Contractor as required by the Contract Documents. Where notice is required under the terms of the Contract Documents, written notice shall always be required, and oral or

“constructive” notice shall be insufficient and ineffective as notice unless specifically allowed by the Supplementary Conditions or a Modification to the Agreement. Written notice shall be deemed to have been duly served on the date that it is delivered in person to the individual or to a member of the firm, to an officer of the corporation for whom it is intended, to an authorized representative of such individual, firm, or corporation, or on the date that it is mailed by registered or certified mail, return receipt requested, addressed to the last business address of such individual, firm, or corporation. Written notice may also be given by facsimile transmission, provided that proof of delivery is obtained. In the case of delivery in person, such delivery shall not be effective unless and until a written and signed receipt showing the date and time of deliver is obtained.

1.25 Project- the total construction of which the Work performed under the Contract

Documents may be the whole or a part.

1.26 Project Expediter- As used herein, is an entity stated in the Contract Documents, designated to effectively facilitate scheduling and coordination of Work activities. For the purpose of a single prime contract, the single prime contractor is designated as the Project

Expediter.

1.27 Project Manager- that person designated by the Contractor who shall be in general charge of the Work and its performance.

1.28 Request for Information- a written communication from the Contractor to the Designer for any interpretation of, or information needed, required, or desired under the Contract

Documents. The Owner reserves the right to determine the reasonable format and contents required for a Request for Information. In any Request for Information, the Contractor shall state a reasonable date by which a response is necessary in order to avoid delay in progress of the Work and shall make such request sufficiently in advance of such date as to avoid any such delay.

1.29 Request for Payment- document approved by Owner, which is to be used by the

Contractor in requesting progress payments and which is to include a Schedule of Values as required by the Contract Documents and an affidavit of the Contractor that progress payments theretofore received from the Owner on account of the Work have been applied by the Contractor to discharge in full all the Contractor's obligations incurred in connection with Work covered by all prior applications for payment.

1.30 Superintendent- that person designated by the Contractor who has day-to-day responsibility for the prosecution of the Work and the obtaining of proper materials and equipment, and adequate labor.

1.31 Schedule of Values- any breakdown of the Contract Price which may be required by the Contract Documents and designated as such.

1.32 Specifications- the portion of the Contract Documents consisting generally of the written requirements for materials, equipment, construction systems, standards, and workmanship for the Work and performance of related services.

1.33 Subcontractor- a person, firm, or corporation who has entered into a direct contract with the Contractor to perform any of the Work of the Project.

1.34 Submittal- shop drawings, product data, samples, and other documents required by the Contract Documents to be submitted by the Contractor to the Designer.

1.35 Substantial Completion- the point at which the Work, and Work by other Contractors on or in connection with the Project, as determined by the Designer, is sufficiently complete in accordance with the Contract Documents that it can be beneficially occupied by the Owner, and the Work can be utilized by the Owner for its intended use, and all necessary permits and permissions for Beneficial Occupancy and utilization having been obtained by the

Contractor. All operations and maintenance manuals, Owner training, and as-built drawings must be submitted prior to Substantial Completion being achieved.

1.36 Work- the construction and services required by the Contract Documents, including all labor, materials, equipment, and services provided or to be provided by the Contractor to fulfill the Contractor’s obligations.

ARTICLE 2. CORRELATION, INTERPRETATION AND INTENT OF CONTRACT

DOCUMENTS

2.1 It is the intent of the Specifications and Drawings and other Contract Documents to describe a complete Project in accordance with the Contract Documents.

2.2 The Contract Documents are complementary; what is called for by one is as binding as if called for by all. If the Contractor finds a conflict, error or discrepancy in the Contract

Documents, the Contractor shall notify the Designer in writing before proceeding with the Work affected thereby. In resolving such conflicts, errors and discrepancies, the Contract Documents shall be given preference in the following order: Contract Agreement, Modifications, Addenda, Supplemental Conditions, General Conditions, Specifications, and Drawings. Figure dimensions on Drawings shall govern over scale dimensions, and detailed Drawings shall govern over general Drawings. Any Work that may reasonably be inferred from the Contract Documents as being required to produce the intended result shall be supplied whether or not it is specifically called for. Work, materials or equipment described in words which, so applied, have a well known technical trade meaning shall be deemed to refer to such meaning and to incorporate any recognized standards which are a part of such meaning.

2.3 Miscellaneous items, accessories and work which are not specifically mentioned, but which are essential to produce a complete and properly operating installation, or useable structure or plant providing the indicated function shall be furnished and installed without change in the Contract Price. Such miscellaneous items and accessories shall be of the same quality standards, including material, style, finish, strength, class, weight and other applicable characteristics, as specified for the major component of which the miscellaneous item or accessory is an essential part, and shall be approved by the Designer before installation. This requirement is not intended to include major components not covered by or inferable from the

Contract Documents.

2.4 The Work of all trades under the Contract Documents shall be coordinated by the

Contractor in such a manner as to obtain the best workmanship possible for the entire Project and all components of the Work shall be installed or erected in accordance with the best practices of the particular trade.

2.5 The Contractor shall fully complete the Work and shall be responsible for all of the Work under the Contract Documents to which the Construction Agreement applies. If the Contractor is prevented from doing so by any limitation of the Contract Documents, the Contractor shall immediately give notice thereof to the Designer and the Owner in writing before proceeding with the construction in the area where the problem or limitation exists.

2.6 Standard specifications or manufacturers' literature, when referenced, shall be of the latest revision or printing unless otherwise stated and is intended to establish the minimum requirements acceptable.

2.7 For those materials specified without the use of brand names, the Contractor shall submit within thirty (30) days after his receiving the Contract Agreement for signatures, any product that meets the express requirements of the Specifications.

Such Submittal shall include manufacturer's data, test reports, performance data and certifications, samples, erection details, and other applicable information as required to permit determination by the Designer whether such proposed products are suitable. The Designer shall be the sole judge as to the suitability of any proposed product. The burden of proof of quality rests with the Contractor.

2.8 The Contractor is required to examine and read the complete set of Contract

Documents for information concerning the Work, because some of the Work for which the

Contractor will be responsible may be indicated on or in documentation applying primarily to the Work of one or more other separate prime contractors. No allowance will be made for the

Contractor’s failure to become familiar with the complete set of project documents.

2.9 Contractor’s requests for clarification or information shall clearly define the cause(s) of

Contractor’s request and, as appropriate, shall include Contractor’s interpretation and

Contractor’s proposed solution.

ARTICLE 3. FAMILIARITY WITH WORK, CONDITIONS AND LAWS

3.1 The Contractor has investigated prior to bidding and is satisfied with all conditions affecting the Work, including but not restricted to those bearing upon transportation, disposal, handling and storage of materials, availability of labor, water, electrical power, roads and uncertainties of weather, or similar physical conditions at the Project site, and the character of equipment and facilities needed prior to and during prosecution of the Work. The Contractor is satisfied as to the character, quality and quantity of surface and subsurface materials or obstacles to be encountered insofar as this information is reasonably ascertainable from inspection of the Project site, including all exploratory work done by the Owner, as well as from information presented by the

Contract Documents, or any other information made available to the Contractor prior to receipt of bids. Any failure by the Contractor to become acquainted with the available information shall not relieve the Contractor from the responsibility for estimating properly the difficulty or cost of successfully performing the Work.

3.2 The Contractor shall be entitled to rely upon all information furnished to the Contractor in writing by the Owner with respect to the Project site and to make all inferences from it that would reasonably be made by a contractor having knowledge and experience with similar work;

however, the Contractor shall not be entitled to infer from Owner-supplied information any fact or condition which would not be inferred by a contractor having knowledge and experience with similar work and, if the Owner-supplied information is inadequate or insufficient in any respect, the Contractor shall be required to obtain independently such other information as a knowledgeable and experienced contractor would prudently obtain in order to evaluate any such condition.

3.3 The Contractor specifically acknowledges familiarity with all Federal, State, and local laws, ordinances, rules and regulations which may in any manner affect those engaged or employed in the Work, or the materials or equipment in or about the Work, or in any way affect the conduct of the Work and agrees that the Contractor and the Contractor’s employees, subcontractors, and suppliers will, at all times, comply with same. If the Contractor shall discover any provisions in the Contract Documents which are contrary to or inconsistent with any such law, ordinance, rule, or regulation, the Contractor shall immediately give notice thereof to the Designer and the

Owner in writing, identifying any items of Work affected, and the Contractor shall not proceed until the Contractor has received written direction from the Designer with respect to these items.

If the Contractor performs contrary to or inconsistently with any such law, ordinance, rule, or regulation without giving such notice, the Contractor shall bear all costs which are a consequence of such performance.

3.4 At times selected by the Designer after execution by the Contractor of the Construction

Agreement, a pre-construction conference shall be scheduled and conducted for the benefit of the Project.

ARTICLE 4. BONDS

4.1 A performance bond in the full amount of the Contract Price shall be required of the

Contractor to guarantee the faithful performance of the Work in compliance with the Contract

Documents, in such form as may be required by law and approved by the Owner. The bond shall be dated the same date as the Construction Agreement and must be accompanied by a current copy of the power of attorney for the attorney-in-fact executing such bond on behalf of a surety company licensed to do business in the state of North Carolina.

4.2 A payment bond in the full amount of the Contract Price shall be required of the Contractor to guarantee the payment of all labor and material costs or claims in connection with compliance with the Contract. The payment bond shall be in such form as may be required by law and approved by the Owner. Said bond shall be dated and executed in the same manner as the performance bond in paragraph 4.1.

ARTICLE 5. INSURANCE AND INDEMNITY

5.1 CONTRACTOR PROVIDED INSURANCE

The Contractor shall, without limiting its obligations or liabilities, procure, pay for and maintain such insurance as is required by law and as is required by this Agreement to protect the Contractor and the Owner from claims for damages for bodily injury, including death, and from claims for property damage which may arise from the Contractor's or its representatives', consultants', Subcontractors', agents', or employees' operations under this Agreement. Such insurance shall be of the kinds and have limits of liability and coverages not less than the minimum limits hereinafter specified or required by law, whichever is greater. The Owner makes no representation as to the adequacy or sufficiency of such coverages. The following requirements shall in no way be construed to limit or eliminate the liability of the Contractor, which arises from performance of Work under the Agreement. The Contractor is strictly responsible for any losses, claims, and costs of any kind which exceed the Contractor's limits of liability, or which may be outside the coverage scope of the policies.

The insurance specified shall be provided by an insurer approved by the Owner authorized to do such business in the State of North Carolina, and on terms approved by the Owner. Insurance companies utilized shall have a minimum rating of A- and Class VII as evaluated by the most current A.M. Best Rating Guide. If the insurer has a Best Rating less than A-and Class VII, the

Contractor must receive specific written approval from the Owner prior to proceeding with any

Work under the Agreement. All agents and brokers shall hold valid licenses from the State of

North Carolina. Before commencing mobilization to the Project site and not later than 7 days after the receipt of the Construction Agreement by the Contractor for signatures, the Contractor shall furnish to the Owner a certificate or certificates of insurance in a form satisfactory to the

Owner. Upon request of the Owner, the Contractor shall provide the Owner with certified copies of the insurance policies required by this Article, including without limitation declaration pages, conditions, exclusions and endorsements, and confirmation that each policy premium has been paid for the required term of this Agreement. A copy of the umbrella policy shall be provided to the Lee County Finance Department. Certificates shall be signed by a person authorized by that insurer to bind coverage on its behalf. In the event of any such cancellation, non-renewal, reduction, restriction, or change in any insurance, the Contractor is obligated to replace such insurance within 7 days without a gap in coverage and file accordingly such notice with the

Owner, and other interested parties. Failing immediate receipt of evidence of such replacement of insurance the Owner reserves the right to procure such insurance as the Owner considers desirable and the Contractor shall pay or reimburse the cost of the premium in respect thereof. It is expressly provided, however, that any action or inaction on the part of the Owner in this respect shall in no way change or reduce the Contractor's responsibilities and liabilities under this

Agreement. Self-funded, policy fronting, or other non-risk transfer insurance mechanisms are not acceptable without prior written approval of the Owner. Full disclosure of such a program must be made prior to commencing mobilization to the Project site. Failure to make a full disclosure constitutes a material breach of the Agreement, justifying termination for default.

The Contractor shall name the Owner and Designer as additional insureds under all its insurance contracts (except workers' compensation) with respect to and including without limitation liability arising out of activities performed by or on behalf of the Contractor, products and completed operations of the Contractor, and automobiles owned, hired, leased, or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to additional insureds.

For any claims related to this Project, the Contractor's insurance or self-insurance shall be primary and noncontributory with respect to the Owner’s insurance. Any insurance or self-insurance maintained by the Owner shall be excess and noncontributory with respect to the

Contractor's insurance.

All policies of insurance shall contain a clause waiving rights of subrogation against the Owner, unless the Owner approves otherwise in writing.

Limits of coverage are not to be amended by deductible clauses of any nature without the express written consent of the Owner. The Contractor shall be solely responsible for any deductible assumptions that may exist in any insurance policies required under this Agreement.

In addition, the Contractor shall be responsible and shall not be reimbursed for any losses arising from any risk or exposure not insured as required herein, or not covered as a result of a normal policy extension or that falls within the self insured retention, if Contractor is self insured.

The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

The claim provisions in the Contractor’s insurance policies must specifically state the insurance company or Contractor’s Third Party Administrator, if self insured, has both the right and duty to adjust a claim and provide defense.

The policies shall not contain any provision or definition which would serve to exclude or eliminate from coverage third party claims, including exclusions of claims for bodily or other injury to shareholders, partners, officers, directors, or employees of the insured, the premises owner, real estate manager, or the insured's Subcontractor, or any family relative of such persons.

If the policies contain any warranty stating that coverage is null and void (or words to that effect) if the Contractor does not comply with the most stringent regulations governing the

Work, it shall be modified so that coverage shall be afforded in all cases except for the

Contractor's willful or intentional noncompliance with applicable government regulations.

Any failure by any person to comply with reporting or other provisions of the policy including breach of warranties, shall not affect coverage provided to the Owner and its representatives, officials, and employees.

The insolvency or bankruptcy of the Insured or of the Insured's estate shall not relieve the insurance companies of their obligations under these policies. Any clauses to the contrary are unacceptable and must be stricken.

Failure to comply with these requirements shall be a material breach of this Agreement justifying termination for default.

5.2 CONTRACTOR PROVIDED WORKER’S COMPENSATION AND EMPLOYER’S

LIABILITY INSURANCE

The Contractor and its Subcontractors shall procure and maintain Workers' Compensation

Insurance in the amount and type required by the State of North Carolina and federal law for all employees employed under the Agreement who may come within the protection of Workers'

Compensation Laws and covering all operations under the Agreement whether performed by the

Contractor or by his Subcontractors. In jurisdictions not providing complete Workers'

Compensation protection, the Contractor and his Subcontractors shall maintain employers' liability insurance in an amount, form, company, and agency satisfactory to the State of North

Carolina and the Owner for the benefit of all employees not protected by Workers'

Compensation Laws and covering all operations under the Agreement whether performed by the

Contractor or by his Subcontractors.

The Contractor shall pay such assessments as will protect the Contractor and the Owner from claims under the Workers’ Compensation laws, workers’ or workmen’s’ compensation disability benefits, and other similar employee benefit acts. The current Experience

Modification Factor shall be indicated on the Certificate of Insurance.

Coverage under this section shall be as required by federal and state Workers' Compensation and Occupational Disease Statutes, and shall have minimum limits as follows:

Coverage A: Statutory, State of North Carolina

Employers' Liability: Each Accident $1,000,000

Disease - Policy Limit $1,000,000

Disease - Each Employee $1,000,000

Such insurance shall include Voluntary Compensation coverage, a Waiver of Subrogation in favor of the Owner as well as other endorsements that may be required by applicable jurisdictions, i.e. United States Longshoremen and Harbor Workers Act and maritime coverage

(Jones Act).

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5.3 CONTRACTOR PROVIDED AUTOMOBILE LIABILITY INSURANCE

The Contractor shall procure and maintain automobile insurance against liability for bodily injury and property damage as described below, that may arise with respect to the Work being performed under the Agreement, and as will provide protection from claims which may arise out of or result from the Contractor's performance of the Work and the Contractor's other obligations under the Agreement, whether such performance of the Work is by the Contractor, by any representative or Subcontractor, by anyone, both officially and personally, directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable.

This policy of insurance shall carry the following minimum Limit of Liability:

Combined Single Limit $1,000,000

The policy of insurance shall contain or be endorsed to include the following:

a) owned, hired, and non-owned automobile liability.

b) If the policy contains a warranty stating that coverage is null and void

(or words to that effect) if the transporter does not comply with the most stringent regulations governing the Work, it shall be modified so that coverage shall be afforded in all cases except for the transporter's willful or intentional noncompliance with applicable government regulations.

Any failure by any party to comply with reporting or other provisions of the policy including breach of warranties, shall not affect coverage provided to the Owner and its representatives, officials, and employees.

No subcontracting of waste hauling shall be permitted without prior, written approval of the Owner.

5.4 CONTRACTOR PROVIDED GENERAL LIABILITY

This policy must be written on an Occurrence basis, with the following minimum Limits of

Liability:

General Aggregate per project $2,000,000.00

Products/Completed Operations Aggregate $2,000,000.00

Bodily Injury and Property Damage csl/each occurrence $1,000,000.00

Personal Injury and Advertising Injury $2,000,000.00

The policy of insurance shall contain or be endorsed to include the following:

a) Blanket Contractual Liability covering Contractor’s indemnification obligations under this Agreement, in accordance with ISO policy form CG 00 01. Modifications to the standard provision will not be acceptable if they serve to reduce coverage.

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b) Premises/Operations Liability.

c) Explosion, collapse, and underground fault.

d) Independent Contractors and Independent Subcontractors coverage.

e) Broad Form Property Damage.

f) Personal Injury

g) Cross Liability/Severability of Interest clause.

h) Employer’s Stop-Gap Liability endorsement, if applicable.

i) Amendment of the Pollution Exclusion Endorsement to allow coverage for bodily injury or property damage caused by heat, smoke, or fumes from a hostile fire.

j) Designated General Aggregate Limit Endorsement if required by the Supplemental

General Conditions.

5.5 CONTRACTOR PROVIDED PROPERTY INSURANCE

The Contractor shall purchase All Risk Property Insurance on a Completed Value Form in the names of the Owner, Contractor, Subcontractors, and sub-subcontractors as their interests may appear with limits as follows:

a) Full insurance value of the Work, or

b) Amount equal to the Contract Price for the Work, whichever is higher.

The Contractor is responsible for all physical damage to owned or rented machinery, tools, equipment, forms, and other items owned, rented or used by the Contractor and/or

Subcontractor(s) in the performance of the Work. The insurance coverage evidencing such shall include a waiver of subrogation in favor of the Owner.

5.6 CLAIMS

The Contractor shall notify the Owner within 24 hours of any claims or alleged claims received by the Contractor covered by any of the policies of insurance required in this Agreement. The

Contractor shall provide a written copy of the claim or alleged claim to the Owner within 3 days of the Contractor's receipt of the claim or alleged claim. If a claim is settled to the satisfaction of the claimant, the Contractor shall submit a copy of the claimant’s release to the Owner.

If a claim or alleged claim is rejected by the Contractor and/or its insurance company, the

Contractor shall immediately report this fact to the Owner.

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Should 30 days elapse after the claim or alleged claim has been received by the Contractor, and the Contractor is not able to report a settlement or rejection of the claim, it shall report to the

Owner the steps being taken with respect to the claim.

Without limiting the foregoing, the Contractor shall notify in writing the County risk manager of any paid or incurred claims which may impair annual aggregate or general liability.

5.7 CONTRACTOR’S DEDUCTIBLES AND SELF-INSURED RETENTIONS

Any deductibles or self-insured retentions must be declared to and approved by the Owner. At the option of the Owner, either: the insurer shall reduce to a maximum of $250,000 or eliminate such deductibles or self-insured retentions with respect to the Owner, or the Contractor shall provide evidence of collateral provided to insurers or procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses within the deductible or self-insured retention amount. Any self-insured retention or deductible amount on the policy shall not reduce the amount of collectible limits or liability.

5.8 CONTRACTOR’S SUBCONTRACTORS

The Contractor shall include all Subcontractors as Insureds under its policies, or shall furnish separate certificates, policies, and endorsements for each Subcontractor the Contractor intends to use. If a Subcontractor does not take out insurance in his own name and the Contractor wishes to provide insurance protection for such Subcontractor and such Subcontractor's employees, the Contractor shall either (a) procure appropriate policies in the name of the

Subcontractor, or (b) cause a rider or riders to be attached to the Contractor's policies which shall identify the Subcontractor thereby covered; provided, however, in the case of the latter option, such a rider need not be attached to the Contractor's workers' compensation policy if such policy by its terms is sufficiently broad to cover the employees of all Subcontractors performing Work under the Contract Documents. Except as otherwise approved by the Owner in writing, Limits of Liability and coverage scope must be at a minimum as stringent as required of the Contractor by the Contract Documents. All Work performed for the Contractor by any

Subcontractor shall be pursuant to an appropriate agreement between the Contractor and the

Subcontractor which shall contain provisions that waive all rights the contracting parties may have against one another for damages caused by fire or other perils covered by insurance as provided herein. Insurance monies received from any loss shall be divided as the respective interest of the parties affected shall appear.

5.9 INDEMNIFICATION

To the fullest extent provided by law, the Contractor shall indemnify and hold harmless the owner, the designer and the agents, consultants and employees of the owner and designer, from and against all claims, damages, losses and expense, including, but not limited to, attorneys’ fees, arising out of or resulting from the performance or failure of performance of the work, provided that any such claim, damage, loss or expense 1) is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the work itself) including the loss of use resulting therefrom, and 2) is caused in whole or in part by any

1 3 negligent act or omission of the Contractor, the Contractor’s subcontractor, or the agents of either the Contractor or the Contractor’s subcontractor. Such obligation shall not be construed to negate, abridge or otherwise reduce any other right or obligation of indemnity which would otherwise exist as to any party or person described in this article.

The provisions of this paragraph shall survive the termination or cancellation or completion of this Agreement.

ARTICLE 6. OTHER DOCUMENTS AND SUBMITTALS

The Contractor acknowledges that the processing of shop drawings and other submittals is directly impacted by the clarity, completeness, and accuracy of said documents and that it is the

Contractor’s responsibility to (i) review and coordinate each submittal with all other related or affected Work and (ii) approve each submittal before submitting same to the Designer for approval.

No substitutions and no deviations from any requirement of the Contract Documents shall be deemed allowed unless the Contractor has specifically informed the Designer and the Owner in writing of such deviations at the time of submittal and the Designer and the Owner have given written and specific approval to the substitutions or deviations. In proposing a deviation or substitution the Contractor warrants to the Owner, notwithstanding any review, allowance or approval by the Designer or the Owner that the deviation or substitution is at least equal to or better in quality and for the purpose intended, and that Contractor shall not by reason of any such review, allowance or approval be relieved from any obligation or responsibility contained in the Contract Documents.

ARTICLE 7. CONTRACTOR

7.1 The Contractor shall supervise and direct the Work efficiently and with the Contractor’s best skill and attention. Except as may be set forth specifically in the Contract Documents, the

Contractor shall be solely responsible for the means, methods, techniques, sequences, and procedures of construction, and for safety precautions and programs in connection with the

Work. The Contractor shall be responsible to see that the finished Work complies accurately with the Contract Documents.

7.2 The Contractor shall appoint a Project Manager and shall keep on the Project at all times during its progress a competent Resident Superintendent and necessary assistants who shall not be replaced without prior written approval by the Owner except under extraordinary circumstances, in which event immediate written notice shall be given to the Designer and the

Owner. The Project Manager and the Resident Superintendent may be the same person or different persons. At any time, the Owner, in its sole and absolute discretion, may require the

Contractor to replace the Project Manager or Resident Superintendent with an experienced and competent person or persons upon seven (7) days written notice from the Owner to the

Contractor. Such replacement shall be at the Contractor's expense and at no cost to the Owner.

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Both the Project Manager and the Resident Superintendent shall have authority to act on behalf of the Contractor, and instructions, directions or notices given to either of them shall be as binding as if given to the Contractor.

7.3 The Contractor shall provide sufficient competent and suitably qualified personnel, equipment, and supplies to lay out the Work and perform construction as required by the

Contract Documents. The Contractor will at all times maintain good discipline and order at the site, and will comply with all applicable OSHA standards.

Any person employed by the Contractor, any Subcontractor, or any sub-subcontractor who, in the opinion of the Designer or the Owner, does not perform his Work in a proper and skillful manner or is intemperate or disorderly shall, at the written request of the Owner or Designer, be removed forthwith by the Contractor, Subcontractor, or sub-subcontractor employing such person without cost to the Owner, and shall not be employed again in any portion of the Work without the written approval of the Owner or Designer.

Should the Contractor fail to remove such person or persons or fail to furnish suitable and sufficient personnel for the proper prosecution of the Work within three (3) days after written order, the Owner may withhold further payment by written notice until compliance with such order.

7.4 If, in the opinion of the Designer or the Owner, any Subcontractor on the Project is incompetent or otherwise unsatisfactory, he shall be replaced by the Contractor with no increase in the Contract Price if and when directed by the Designer or the Owner in writing.

7.5 The Contractor shall furnish all materials, equipment, labor, transportation, construction equipment and machinery, tools appliances, fuel, light, heat, and all other facilities and incidentals necessary for the execution, maintenance, initial operation, and completion of the

Work, other than those specifically excluded by the Contract Documents and to be furnished by the Owner or others. When use or storage of hazardous materials or equipment or methods of more than ordinary risk are necessary in accomplishing the Work, the Contractor shall give the

Owner and Designer reasonable advance notice.

All equipment which is proposed to be used in the Work shall be of sufficient size and in such mechanical condition as to meet the requirements of the Work and produce a satisfactory quality of work. Equipment used on any portion of the Work shall be such that no injury to previously completed Work, adjacent property, or existing facilities shall result from its use.

When the methods and equipment to be used by the Contractor accomplishing the Work are not prescribed in the Contract Documents, the Contractor shall be free to use any methods or equipment that will accomplish the Work in conformity with the requirements of the Contract

Documents.

When the Contract Documents specify the use of certain methods and equipment, such methods and equipment shall be used unless others are authorized by the Designer. If the

Contractor desires to use a method or type of equipment other than specified in the Contract

Documents, the Contractor may request authority from the Designer to do so. The request shall be in writing and shall include a full description of the methods and equipment proposed and of

1 5 the reasons for desiring to make the change. If approval is given, it shall be on the condition that the Contractor shall be fully responsible for producing Work in conformity with the requirements of the Contract Documents. If, after trial use of the substituted methods or equipment, the Designer determines that the Work produced does not meet the requirements of the Contract Documents, the Contractor shall discontinue the use of the substitute method or equipment and shall complete the remaining Work with the specified methods and equipment at no additional cost to the Owner. The Contractor shall remove any deficient Work and replace it with Work of specified quality, or take such other corrective action as the Designer may direct. No change in the Contract Price or in Contract Time shall be made as a result of authorizing a change in methods or equipment under this paragraph.

7.6 All materials and equipment shall be new, except as otherwise provided in the Contract

Documents. When special makes or grades of material which are normally packaged by the supplier or manufacturer are specified or approved, such materials shall be delivered to the

Project site in their original packages or containers with seals unbroken and labels intact.

Materials shall be so stored as to assure the preservation of their quantity, quality and fitness for the Work. Stored materials, even though approved before storage, may again be inspected by the

Designer or Owner prior to their use in the Work and shall meet the requirements of the Contract

Documents at the time they are incorporated into the Work. Stored materials shall be located so as to facilitate their prompt inspection. The Contractor shall coordinate the storage of all materials with the Designer and the Owner. Materials to be stored at the Project or on the

Owner's property shall not create an obstruction to the Owner's or other contractor's reasonable activities. Private property shall not be used for storage purposes without written permission of the owner or lessee of such property. The Contractor shall make all arrangements and bear all expenses for the storage of materials on private property. Upon request, the Contractor shall furnish the Owner a copy of the property owner's permission. All storage sites on private or the

Owner's property shall be restored to their original condition by the Contractor at his entire expense, except as otherwise agreed to (in writing) by the owner or lessee of the property.

7.7 All materials and equipment shall be applied, installed, connected, erected, used, cleaned and conditioned in accordance with the instructions of the applicable manufacturer, fabricator, or processor, except as otherwise provided in the Contract Documents.

7.8 The Contractor will be fully responsible for all acts and omissions of his Subcontractors and of persons directly or indirectly employed by them and of persons for whose acts any of them may be liable to the same extent that the Contractor is responsible for the acts and omissions of the Contractor’s own employees. Nothing in the Contract Documents shall create any contractual relationship between any Subcontractor or supplier and the Owner or the Designer, or any obligation on the part of the Owner or the Designer to pay or see to the payment of any money due any such Subcontractor or material furnisher except as may otherwise be required by law.

The Owner or the Designer may furnish to any Subcontractor or supplier, to the extent practicable, evidence of amounts paid to the Contractor on account of specific Work done.

7.9 The divisions and sections of the Specifications and the identifications of any Drawings shall not control the Contractor in dividing the Work among Subcontractors.

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7.10 The Contractor agrees to bind specifically every Subcontractor to the terms and conditions of the Contract Documents for the benefit of the Owner and to furnish written evidence thereof to the Designer and the Owner.

7.11 The Contractor shall attend job progress conferences and all other meetings or conferences as directed by the Designer. The Contractor shall be represented at these job progress conferences by a representative having the authority of the Project Manager and by such other representatives as the Designer may direct. Job progress conferences shall be open to

Subcontractors, suppliers and any others who may contribute beneficially toward maintaining required job progress, and such personnel shall be encouraged by the Contractor to attend. It shall be the principal purpose of job progress conferences to effect coordination, cooperation and assistance in every practical way toward the end of maintaining progress of the Project on schedule and to complete the Work and the Project by the specified Completion Dates. The

Contractor shall be prepared to assess progress of the Work as required in the Contract

Documents and to recommend remedial measures for correction of progress as may be appropriate. The Designer shall preside as chairman and arrange for minutes to be taken and circulated.

In the event that the prosecution of the Work is discontinued for any reason, the Contractor shall notify the Designer and the Owner at least forty-eight (48) hours in advance of resuming operations.

Should the terms of the Contract Documents require completion of one or more portions of the

Work for the Beneficial Occupancy of the Owner prior to completion of the entire Work, the

Contractor shall complete such portion(s) of the Work on or before the date specified. Such completion shall include the obtaining of all government or other permits, permission, and/or approvals necessary to occupancy. The Contractor shall independently estimate the difficulties involved in arranging the Work to permit such Beneficial Occupancy and shall not claim any additional compensation or time extension by reason of any delay or increased cost due to completing such portion(s) of the Work.

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