5-EJCDC Supplemental Conditions - Final 1.30.2024.pdf

SUPPLEMENTAL CONDITIONS

These Supplemental Conditions amend or supplement the Standard General Conditions of the Construction Contract (EJCDC C-700) (2007) and other provisions of the Contract

Documents as indicated below. All provisions, which are not so amended or supplemented, remain in full force and effect.

SC 1.01.A.2 Agreement:

At the end of the sentence, add the following:

also referred to as Contract

SC 1.01 Defined Terms

Revised Section 1.01.A.7 to include:

7. Bidding Documents – The Bidding Requirements and the proposed Contract

Documents (including all Addenda) is revised to include Job Orders Statement of Work, Job Orders Requests/Authorization Forms, and Job Order Offers.

Delete Section 1.01.A.12 in its entirety and substitute the following:

12. Contract Documents—Those items so designated in the Agreement, including, printed, hardcopies, and electronic versions of the items listed in the

Agreement are Contract Documents. Approved Shop Drawings, other

Contractor’s submittals, and the reports and drawings of subsurface and physical conditions are not Contract Documents.

Delete 1.01.29 in its entirety and substitute the following:

29. Owner—The City of Rio Rancho.

Delete Section 1.01.A.32 in its entirety and substitute the following:

32. Progress Schedule—The Baseline Schedule that is revised or modified during Application for Payment by Contractor.

At the end of subsection 1.01A, add the following:

52. Baseline Schedule—A fixed Project schedule developed by Contractor utilizing the critical path method that is the standard by which Project performance is measured.

SC 2.01 Delivery of Bonds and Evidence of Insurance

Add the following:

“Contractor shall also deliver simultaneously with the Agreement copies of certificates of insurance in accordance with Section 5.03 of the General

Conditions.”

SC 2.05 Before Starting Construction

Delete Section 2.05.A.1 in its entirety and substitute the following:

1. Baseline Schedule. The Engineer and Owner will notify Contractor in writing within ten (10) Days of the submittal of a Baseline Schedule if the schedule is “Accepted,”

“Accepted as noted,” or is “rejected.” Unless otherwise specified in the Contract, Contractor is wholly and solely responsible for construction means, methods or techniques, therefore the Engineer’s and Owner’s review of the Baseline Schedule will be for compliance with the Specifications and Contract requirements. Acceptance by the

Engineer and Owner shall not relieve Contractor of any of its responsibilities for the accuracy or feasibility of the schedule. Any Baseline Schedule which alters Contract

Time shall be deemed “rejected.” In no event, may approval of a Baseline Schedule revise the Contract Documents, including Contract Time, unless accompanied by a related Change Order. Contractor shall not commence Work until the Engineer and

Owner accepts a Baseline Schedule.

The Engineer and Owner will use the Baseline Schedule to establish major construction operations, to determine Contract Time extensions, and to measure the progress of the

Work. Contractor shall be responsible for assuring all Work, including all Subcontractor

Work, is included in the Baseline Schedule. Contractor shall be responsible for assuring that all Work sequences are logical and that the Baseline Schedule indicates a coordinated plan. Failure by Contractor to include any element of Work required for performance of the Contract shall not excuse Contractor from completing all Work within the required time.

For Baseline Schedules that are “rejected”, the Engineer and Owner shall communicate, in writing, to Contractor all portions of the schedule that are not in compliance with the

Contract requirements. Contractor shall, within seven (7) Days of receipt of the reasons for rejection of the schedule, provide a new Baseline Schedule and all additional information necessary for the Engineer and Owner to “Accept” the Baseline Schedule.

The Engineer and Owner will notify Contractor in writing within seven (7) Days of the submittal of the corrected Baseline Schedule if the schedule is “Accepted,” “Accepted as noted,” or is “rejected.” Contractor’s failure to provide a timely and acceptable new

Baseline Schedule in response to a rejected schedule waives any Claim the basis of which would have been documented by an acceptable Baseline Schedule.

Contractor shall provide a Baseline Schedule which clearly describes the following:

1. A reasonable and workable plan to complete the Work within the Contract Time;

2. The order and relationships of construction activities and the sequence of the

Work;

3. Construction activities in a format prescribed by the Engineer and Owner so the

Engineer and Owner can readily identify the Work and measure the progress of each construction activity;

4. The Project’s critical path;

5. The milestones or other key dates specified in the Contract; and;

6. Logic diagrams.

The Baseline Schedule shall consist of network diagrams and associated bar graphs and shall include a tabulation of each activity shown on the detailed network diagrams.

Provide, at a minimum, the following information on the Baseline Schedule:

1. Construction activity description;

2. Early start date (each activity);

3. Late start date (each activity);

4. Original duration, in workdays (each activity);

5. Total float and free float (each activity);

6. Sequence and interdependence of activities;

7. Workdays each week;

8. Contractor designated holidays;

9. Number of shifts per Day;

10. Number of hours per shift;

11. Scheduled Completion Date;

12. Anticipated weather events based on historical data; and

13. Resource Loading.

The Baseline Schedule shall include a report of projected Project completion measured in dollars and time. Float contained in the Baseline Schedule is not for the exclusive use or benefit of either the Owner or Contractor.

Contractor shall prepare and submit one (1) electronic copy and two (2) time-scaled color prints of the Baseline Schedule, using a Project scheduling software as directed by the

Engineer and Owner that includes the following features:

1. Display the schedule as a Gantt chart;

2. Clearly display the critical path of scheduled construction activities apart from the noncritical scheduled construction activities;

3. Calculate and display total float and free float for each construction activity;

4. Clearly display the early start, late start, early finish and late finish dates for each construction activity; and,

5. Ability to easily store and transfer the schedule as a file (or files) from one computer to another.

SC 2.07 Initial Acceptance of Schedules

Delete Section 2.07.A.1 in its entirety and add Section 2.08

2.08 Contractor shall submit an updated Baseline Schedule, the

Progress Schedule, monthly a minimum of five (5) Days before the Application of Payment. Failure by Contractor to submit the

Application for Payment is non-conformance and the Progress

Payment shall be withheld until a Progress Schedule is submitted.

Each construction activity in a monthly or revised schedule shall contain the same information required for the Baseline

Schedule. Contractor shall include in the schedule a report of projected percent complete, measured in dollars and time. An acceptable schedule shall conform to Section 2.05.A.1 hereof.

In no event may acceptance of a schedule revise the Contract

Documents, including Contract Time, unless accompanied by a related Change Order. Any monthly or revised schedule which alters Contract Time shall be deemed rejected.

Float contained in the Progress Schedule is not for the exclusive use or benefit of either the Owner or Contractor, except as follows: float generated on critical path construction activities due to the acceleration of Contractor’s performance, at the written direction of the Engineer and Owner, shall be for the exclusive use of the Owner; and, float generated on critical path construction activities due to the reduction or elimination of items shall be for the exclusive use of the Owner.

The Engineer and Owner may grant time extensions only to the extent that the construction activities on the critical path of the

Progress Schedule in effect at the time of the delay are impacted.

SC 3.03 Reporting and Resolving Discrepancies

Add the following Subsection:

3.03.B.2 Any conflict, error, ambiguity, or discrepancy amongst the following portions of the Contract Documents shall be resolved by giving precedence in the following order: Addenda, Construction Plans other than Standard Drawings, Supplemental Specifications other than Standard Specifications.

SC 4.02.A.1.a Reports and Drawings

If Applicable (E.g. GEO-TESTING REPORTS)

SC 4.05 Reference Points:

Delete Section 4.05 in its entirety and substitute the following:

SECTION 4.05 SURVEYING

4.05.A Surveys by Owners

4.05.A.1 Owner reserves the right to perform any other surveys

Owner deems necessary, including but not limited to surveys to verify pay quantities, construction staking by Contractor and conformance of constructed improvements with the lines, grades, locations and elevations shown on the plans. Performance or non-performance of such surveys by Owner shall not relieve Contractor of Contractor's responsibility to construct improvements in accordance with the lines, grades, locations, and elevations shown on the plans.

4.05.B Surveys by Contractor

4.05.B.1 Contractor shall furnish all construction staking and surveys required to construct the proposed improvements in accordance with the lines, grades, locations and elevations shown on the plans.

4.05.B.2 Contractor shall furnish any reconnaissance surveys necessary to "pothole" and record the locations of existing utilities shown on the plans, indicated by utility locators and/or encountered during construction.

4.05.B.3 Contractor shall furnish any surveys required to support quantities for payment requests. Such surveys and quantity determinations shall be subject to review and approval or rejection by ENGINEER.

4.05.B.4 Contractor shall furnish as-built survey information for all improvements.

4.05.B.5 Contractor shall furnish to ENGINEER two (2) copies of all survey notes and cut sheets. Contractor shall furnish as-built survey information and existing utility location information in the form of redlines markups on the project record plans. Receipt or non-receipt of such information by ENGINEER shall not obligate

Owner or ENGINEER in any manner nor relieve Contractor of

Contractor's responsibility to construct all improvements in accordance with the lines, grades, locations and elevations shown on the plans.

4.05.B.6 Throughout construction of the Project, Contractor shall maintain a record set of project construction plans on which

Contractor shall record the horizontal and vertical locations of constructed improvements and existing utilities encountered during construction, plan changes and other pertinent information. The record project construction plans shall be available at the project for review by ENGINEER at all times and shall be provided to

ENGINEER upon completion of construction.

4.05.C Preservation of Survey Monuments, Points and Staking

4.05.C.1 Contractor shall be responsible for the preservation of any and all existing survey monuments.

Contractor shall notify ENGINEER not less than seven (7) calendar days prior to starting work in order that ENGINEER may take necessary measures to reference the location or ensure the preservation of survey monuments. Contractor shall not disturb permanent survey monuments without the consent of ENGINEER and shall notify ENGINEER and bear the expense of replacing any that may be disturbed without permission. Only Owner shall do replacement. When a change is made in the finished elevation of the pavement of any roadway in which a permanent survey monument is located, Contractor shall, at his own expense, adjust the monument cover to the new grade unless otherwise specified.

4.05.C.2 Contractor shall be responsible for the preservation of any and all right-of way boundary points, and control points furnished by Owner. Contractor shall not disturb any points furnished by

Owner without the written consent of ENGINEER and shall notify

ENGINEER and bear the expense of replacing any that may be disturbed without permission. Only Owner shall do replacement of points furnished by Owner. The cost of replacement shall be charged against Contractor and shall be deducted from payment due

Contractor for the work. Contractor shall be responsible for any mistakes or delays that may be caused by loss or disturbance of points furnished by Owner.

4.05.C.3 Contractor shall be responsible for the preservation of all construction staking furnished by Contractor and shall notify

ENGINEER and bear the expense of replacing any that may be disturbed. Contractor shall be responsible for any mistakes or delays that may be caused by loss or disturbance of staking furnished by Contractor.

4.05.D Discrepancies

4.05.D.1 Contractor and ENGINEER shall notify each other immediately upon the discovery of any discrepancies in the plans, surveys, or staking. ENGINEER, in consultation with Contractor, shall promptly review the discrepancies and issue corrections or clarifications. If Contractor elects to proceed with construction before such corrections or clarifications are made, Contractor shall do so at Contractor's own risk and expense.

4.05.E Measurement and Payment

4.05.E.1 All Construction surveys furnished by Contractor, as required by the Supplementary Conditions, shall be included in the lump sum bid, or shall be considered incidental to the contract price.

SC 5.04 Contractor's Liability Insurance:

The limits of liability for the insurance required by Paragraph 5.04 of the

General Conditions shall provide the following coverages for not less than the following amounts or greater where required by Laws and Regulations.

SC 5.04.A.1 & 5.04.A.2 Worker's Compensation, etc. under Paragraph 5.04.A.1 and

5.04.A2 of the General Conditions:

(1) State: Statutory

(2) Applicable Federal (e.g., Longshoreman's): Statutory

(3) Employer's Liability: $1,000,000

SC 5.04.A.3, 5.0.4.A.4 & 5.04.A.5, and 5.04.B.3 Contractor's Liability Insurance under

Paragraphs 5.04.A.3, 5.04.A.4, 5.04.A.5, and 5.04.B.3 of the General Conditions which shall also include completed operations and product liability coverages and eliminate the exclusion with respect to property under the care, custody and control of Contractor:

(1) General Aggregate (Except Products-Completed Operations) $1,000,000

(2) Products-Completed Operations Aggregate $1,000,000

(3) Personal and Advertising Injury (Per Person/Organization) $1,000,000

(4) Each Occurrence (Bodily Injury and Property Damage) $1,000,000

(5) Property Damage liability insurance will provide Explosion, Collapse and

Underground coverages where applicable.

(6) Excess Liability

General Aggregate $1,000,000

Each Occurrence $500,000

SC 5.04.A.6 Automobile Liability Insurance shall include coverage for all owned, non-owned and hired vehicles:

(1) Bodily Injury: Each Person $1,000,000

Each Accident $1,000.00

Property Damage: Each Accident $1,000,000

Or

(2) Combined Single Limit (Bodily Injury and Property Damage):

Each Accident $1,000,000

SC 5.04.B.4 Contractual Endorsement

The Contractual liability coverage required by Paragraphs 6.11 and 6.20 of the General

Conditions shall provide coverage for not less than the following amounts:

(1) General Aggregate $ 1,000,000

(2) Each Occurrence (Bodily Injury and Property Damage) $ 500,000

SC 5.04.B.7a Additional Insured:

“The City of Rio Rancho.”

SC 5.05.A Additional Types and Amounts of Insurance Required by Owner:

None.

SC 5.06 Property Insurance:

Contractor shall purchase and maintain property insurance upon the Work at the site in the amount of the full replacement cost thereof. The requirements of

Section 5.06 of the General Conditions shall remain unchanged except that

Contractor is responsible for obtaining and maintaining said property insurance.

SC 5.06.A Additional Insured:

“The City of Rio Rancho”

SC 6.02 Labor; Hours Worked

Add the following Sections:

6.02.C. Sanitary Conveniences.

Contractor shall establish and maintain in a sanitary condition necessary sanitary facilities for use by Contractor's employees, Subcontractors, Suppliers and other Project personnel. Sanitary facilities shall be screened from public view. Contractor shall strictly enforce use of sanitary facilities.

6.02.D. Certified Weekly Payroll Certificates.

Contractor and all subcontractors shall submit one certified copy of the project weekly payrolls to Owner, email is preferred, and one certified copy directly to the New Mexico Department of Workforce Solutions, not later than five (5) working days after the close of each payroll period. Contractor shall be responsible for the submission of copies of payrolls of all Subcontractors."

6.02.E State of New Mexico-Labor and Industrial Commission Labor

Requirements.

6.02.E.1 The minimum wages to be paid the various classes of mechanics and laborers engaged by Contractor and Subcontractors for work under this contract including any additional, omitted or changed work, shall not be less than the amount as determined and established by the State Labor Commission as provided in Section 13-4-11, NMSA 1978, or the Federal wage rates, where applicable, and in full force and effect, without exception, on the date of the contract and during the lifetime of this contract.

6.02.E.2 Contractor and each of his Subcontractors shall pay each of his employees working under this contract in full, in cash, and not less than once a week, less all legally required deductions or withholdings. When circumstances are such that payment in cash is not feasible or is impractical, payment may be made by check, provided, however, that adequate funds to cover same are on deposit at the bank upon which the checks are drawn, and further that the checks may be cashed without charge, trace requirements or undue inconvenience to the payee.

6.02.E.3 The minimum wage rates, if any, specified for apprentices shall apply only to persons working with the tools of the trade that they are learning, and under the direct supervision of the Journeyman or master mechanics. Except as otherwise required by law, the number of apprentices in each trade or occupation employed by Contractor or any Subcontractor shall not exceed the number permitted by the applicable standard of the United States Department of Labor, or in the absence of such standards the number permitted under, the usual practice prevailing between trade unions and Employees Associated of the respective trades or occupations.

6.02.E.4 Extra Work - Minimum Wages: In case Owner orders Contractor to perform extra work or additional work which may make it necessary for

Contractor or any Subcontractor under him, to employ in the performance of such work, any person in any trade or occupation for which no minimum wage is specified, Owner will include the Contract Change Order for such extra or additional work the minimum wage rate for such trade or occupation, and insofar as such extra or additional work is concerned, there shall be paid each employee engaged in the work in such trade or occupation, not less than the minimum wage rate included.

6.02.E.5 Wage Underpayments and Adjustments: Contractor agrees that, in case of underpayment of wages to any worker on the project under this contract, that Owner may withhold out of payments due, an amount sufficient to pay such worker the difference between the wages required to be paid under this contract and the wages actually paid such worker for the total number of hours worked and that Owner may disburse such amount so withheld by it, for and on account of Contractor to the employee to which such amount is due.

Contractor further agrees that the amounts to be withheld pursuant to this paragraph may be in addition to the percentages to be retained by Owner pursuant to other provisions of this contract. A copy of the New Mexico State

Office of Labor Commission Minimum Wage Rates and Apprentices minimum wage scales in effect at the time of this contract shall be posted or otherwise made available to Contractor's employees at all times on the job.

SC 6.02.F Affirmative Action/Equal Employment Opportunity and Non-

Discrimination

Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, age, national origin or ancestry, or physical or mental handicap. Contractor will take affirmative action to ensure that applicants for employment are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, age, national origin or ancestry, physical or mental handicap.

Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment, recruitment advertising, layoff, termination, disciplinary actions and grievances, rates of pay or other forms of compensation, other terms and conditions of employment and selection for training, including apprenticeship. Contractor shall include the provisions of this Paragraph in every Subcontract or purchase order so that such provisions shall be binding upon every Subcontractor.

SC 6.04 Progress Schedule

Delete reference to Paragraph 2.07 in Section 6.04 in its entirety and replace with

Paragraph 2.08.

SC 6.05.A Substitutes and “Or –Equals”

Delete Section 6.05.A in its entirety and substitute the following:

Whenever an item of material or equipment is specified or described in the

Contract Documents by using the name of a proprietary item or brand name, or the name of a Supplier, the specification or description is intended to establish the particular type, function, appearance, and quality required. Unless the specification or description contains or is followed by the words reading that a like, equivalent, or “or-equal” item or substitute is permitted, other items of material or equipment or materials or equipment of other Suppliers may not be submitted to Engineer for review. In the event the specification or description does contain or is followed by the words reading that a like, equivalent, or “or-equal” item or substitute is permitted, such “or-equal” items or substitute may be submitted to the Engineer for review under the circumstances described below.

SC 6.10 Taxes

6.10.B.1 GROSS RECEIPTS SURETY. Contractor's attention is called to the requirements of a gross receipts surety bond as may be required by the State of

New Mexico Bureau of Revenue. It shall be Contractor's responsibility to ascertain if he is required to purchase a bond or not, and as such will be wholly responsible for all costs so incurred and without cost to Owner.

SC 6.16 Emergencies.

6.16.B Contractor shall designate at least one responsible employee to represent him in case of an emergency. Such employee, or employees, shall have a local telephone at which he may be reached at any hour of the day or night. Directions for contacting such employee shall be given to the Rio

Rancho Police Department, and Owner and ENGINEER.

SC 6.17 Shop Drawings and Samples

6.17.1 Traffic Control Plan

Contractor shall prepare a Traffic Control Plan for all areas where construction activities will occur within or immediately adjacent to the public right-of-way.

This Traffic Control Plan will be submitted to the ENGINEER for review.

Contractor must obtain the ENGINEER's written approval of the Traffic

Control Plan prior to the beginning of construction activities in the affected areas. Approval of the Traffic Control Plan by the ENGINEER shall not relieve Contractor of any liability arising from the design or maintenance of all traffic control devices. Traffic control devices shall be maintained by

Contractor in good working order at all times during the construction period, until such time as the work is completed and permanent access control items such as fences, barrier rails and gates have been installed. The Traffic Control

Plan shall conform to the standards set forth in the Manual on Uniform Traffic

Control Devices (MUTCD), latest edition."

SC 6.19 Contractor's General Warranty and Guarantee:

6.19.D After the approval of final payment and prior to the expiration of one (1) year after the date of Substantial Completion or such longer period of time as may be prescribed by law or by the terms of any applicable special guarantee required by the Contract Documents, if any work is found to be defective, Contractor shall promptly, without cost to Owner and in accordance with Owner's written instruction, either correct such defective work or, if it has been rejected by Owner, remove it from the site and replace it with non-defective work. Contractor shall also reimburse Owner for the cost of any reasonable testing or exploratory work conducted to verify the limits of the defective work. If Contractor does not promptly comply with the terms of such instructions, Owner may have the defective work removed and replaced and all direct and indirect cost of such removal and replacement, including compensation for additional professional services, shall be paid by Contractor.

SC 11.01 Cost of the Work

Delete Section 11.01.A.5.c in its entirety and substitute the following:

“Rentals of all construction equipment and machinery, and the parts thereof whether rented from Contractor or others in accordance with rental agreements approved by Owner with the advice of Engineer, and the costs of transportation, loading, unloading, assembly, dismantling, and removal thereof.

All such cost of rentals of all construction equipment and machinery shall be determined in accordance with the nationally accepted equipment rental rates as amended from time to time. The rental of any such equipment, machinery, or parts shall cease when the use thereof is no longer necessary of the Work.”

SC 11.02 Allowances

11.02.E Lump Sum Allowances specified in the Contract Documents have been established for one or more of the following reasons: to cover unanticipated costs

(contingencies); in lieu of additional scope requirements and design specifications, and/or to defer the selection of materials and equipment to a later date when additional information is available to Owner; for materials testing, and/or quality control and quality assurance; for the location and/or relocation of existing utilities; and for SWPPP preparation and implementation. Any and all work performed under allowance items shall be authorized at the sole discretion of Owner prior to being undertaken and the amount of compensation thereof will be based on the reasonable costs incurred by Contractor in performing such work

(determined as provided in Paragraph 11.01) and may include a Contractor’s fee for overhead and profit (determined as provided in Paragraph 12.01.C). “The following equipment rates shall be used in determining the cost of rental construction equipment and machinery in accordance with SC 11.01.c:

11.02.F Unit Price Allowances specified in the Contract Documents shall be authorized at the sole discretion of Owner prior to being undertaken and the amount of compensation thereof for Unit Price Work shall be determined as provided in Paragraph 11.03

SC 12.01 Change of Contract Price

Delete Section 12.01.B.2 in its entirety and substitute the following:

12.01.B.2 Where the Work involved is not covered by unit prices contained in the Contract Documents, by a mutually agreed lump sum (which may include an allowance for overhead and profit determined in accordance with Paragraph

12.01.C.2). Change orders involving a reduction in the Contract Price shall include itemized amounts representing Contractor’s fee for overhead and profit deducted as determined in accordance with Paragraph 12.01.C.2.

SC 12.03 Delays

Delete Sections 12.03.A, B and C in their entirety and substitute the following:

A. Where Contractor is prevented from completing any part of the Work within the

Contract Times due to delay beyond the control of Contractor, the Contract Times will be extended in an amount equal to the time lost due to such delay if a Claim is made therefor as provided in Paragraph 12.02.A. Delays beyond the control of

Contractor shall include, but not be limited to, acts or neglect by Owner, or acts or neglect of other contractors performing other work as contemplated by Article

7, fires, floods, epidemics, abnormal weather conditions, or acts of God.

B. If Owner, Engineer, or other contractors performing other work for Owner as contemplated by Article 7, or anyone for whom Owner is responsible, delays, disrupts, or interferes with the performance or progress of the Work, then

Contractor shall be entitled to an equitable adjustment in the Contract Price or the

Contract Times, or both. Contractor’s entitlement to an adjustment of the

Contract Times is conditioned on such adjustment being essential to Contractor’s ability to complete the Work within the Contract Times.

C. If Contractor is delayed in the performance or progress of the Work by fire, flood, epidemic, abnormal weather conditions, acts of God, or other causes not the fault of and beyond control of Owner and Contractor, then Contractor shall be entitled to an equitable adjustment in Contract Times, if such adjustment is essential to

Contractor’s ability to complete the Work within the Contract Times. Such an adjustment shall be Contractor’s sole and exclusive remedy for the delays described in this Paragraph 12.03.C.

Add the following subsections:

12.03.F Contractor shall be solely responsible for determining in advance of their construction operations, if any of the utility lines are in conflict with construction operations. Contractor shall be solely responsible for coordinating and scheduling with the appropriate utility owner to relocate the utility conflict. Payment for utility coordination and scheduling shall not exceed the amount provided for in the Bid Form labeled Utility Coordination Allowance. Contractor shall assume full and sole liability for schedule delays and/or cost overruns due to failed coordination and scheduling of relocations with utility companies. Contractor shall keep a detailed log of all utility coordination and scheduling activities.

12.03.G Contractor shall be liable for all amounts chargeable to Owner by third parties resulting from delays within Contractor’s control, including but not limited to additional design and/or construction oversight expenses, and materials testing costs. Such amounts may be deducted from Contractor’s Application for Payment either at the time the cost is incurred or from the final Application for Payment as decided by Owner. If the total amounts for which Contractor is liable under this subsection exceed the amounts due Contractor under the Contract, Contractor shall remit such excess to Owner within thirty (30) days after Substantial

Completion.

SC 13.03 Tests and Inspections.

13.03.B.4 Contractor shall pay for all retesting due to the first test or subsequent tests failing to show results meeting specifications. If not previously deducted from progress payments, costs for such tests shall be deducted from the final payment of the contract.

13.03.G Job Mix Formula and Design Mixes. The preparation of job mix formulae and design mixes together with necessary sampling, and testing as required for this Contract shall be at Contractor's expense and at no cost to

Owner. Such sampling and testing shall be performed by an approved testing laboratory under the supervision of a New Mexico Registered Professional

Engineer. Mix, design and job mix formulae submittals shall state the methods used in preparing the designs for formulae together with substantiating data and graphic representations as appropriate, shall respond to all pertinent material requirements listed in the Technical Specifications and shall give recommendations for job procedures and job mix tolerance limits necessary to give reasonable assurances that the specification requirements will be met in the field, when appropriate.

13.03.H Materials or Manufactured Items Testing of materials or manufactured items shall be at Contractor's expense. Tests for materials or items manufactured within the State of New Mexico shall be certified as meeting contract specifications by an approved testing laboratory under the supervision of a New Mexico Registered Professional Engineer or a testing laboratory under the supervision of a professional engineer registered in the state of manufacture or a testing laboratory approved by the ENGINEER.

13.03.I Field Testing. The field testing of all locally processed or produced material directly incorporated into the work, including the establishment of density curves representative of materials to be used in subgrade and backfilling operations and concrete, and compliance tests will be provided by

Contractor except as provided in Section 13.03 of the General Conditions or in the Technical Specifications for certain materials and tests. ENGINEER shall determine the number, type, and location of tests. Contractor shall furnish, incidental to this Contract, necessary equipment, tools, and labor, except testing equipment, to assist the testing agency in the performance of field tests.

Copies of all laboratory and field tests shall be forwarded to ENGINEER, Contractor and Owner.

Contractor shall submit invoices from materials testing firm and other information at the request of Owner substantiating reimbursement under the

Allowance for Materials Testing and Contractor Quality Control.

13.03.J Contractor shall, and shall cause his Subcontractor(s) to protect carefully his and their work and materials against damage or injury from the weather. If, in the opinion of the ENGINEER, any work or materials shall have been damaged or injured by reason of failure on the part of Contractor or any of his Subcontractors so to protect his work, such materials, shall be removed and replaced at the expense of Contractor. Until Owner accepts the project, Contractor shall be responsible for protecting completed work, work in progress, equipment, materials and property from storm water, erosion, sediment, and related elements. Damage resulting from storm water, erosion, sediment, and related elements shall be Contractor's responsibility to replace, repair, or otherwise rectify."

SC 13.07 Correction Period

13.07.F The one year correction period shall begin upon Substantial

Completion of the entire Work.

SC 14.01 Schedule of Values

Add the following Subsections:

14.01.B Close-Out Item

1. The Schedule of Values shall include a separate line item for close-out and completion of punch-list items (“Close-Out”), valued at not less than five percent (5%) of the Contract Price, representing the faithful final completion of the Work, including but not limited to correction of incomplete or deficient items identified in the final inspection; final cleaning and removal of temporary facilities and controls; preparation and delivery of operation and maintenance manuals, record drawings, and other project records and documents; completion of all required demonstrations and training; completion of all close-out submittals; and all other close-out procedures and requirements, if any, required for the Project;

2. Any change in the Contract Price made in accordance with the Contract

Documents shall be reflected by a proportionate change in the value assigned to Close-Out; and

3. Close-Out shall be included in Contractor’s final application for payment and paid for as all or part of the Owner’s final payment in assuming faithful completion of Close-Out and satisfaction of any and all other conditions to such payment set forth in the Contract Documents.

14.01.C Mobilization Item

Mobilization

If Contractor's Bid Item Price for mobilization is equal to or less than 10% of the

Total Original Contract Amount less mobilization, the City will pay Contractor using the following procedure:

1. If Contractor has performed Work representing less than 5% of the Total

Original Contract Amount less mobilization, the City will pay 25% of the mobilization bid amount;

2. If Contractor has performed Work representing from 5% to less than 10% of the Total Original Contract Amount less mobilization, the City will pay 50% of the Bid Item Price for mobilization; and

3. If Contractor has performed Work representing 10% or more of the Total

Original Contract Amount less mobilization, the City will pay 100% of the Bid

Item Price for mobilization.

If Contractor's Bid Item price for mobilization is greater than 10% of the Total

Original Contract Amount less mobilization, the City will only apply the previous payment procedure to that portion of Contractor's Bid Item Price for mobilization equal to 10% of the Total Original Contract Amount less mobilization. The City will pay Contractor the remainder of the Bid Item Price for mobilization upon completion of the Work.

Basis of Payment

Pay Item Pay Unit

Mobilization Lump Sum

The City will not make additional payments for demobilization and remobilization due to shutdowns or suspensions of the Work, or for other mobilization activities required for satisfactory completion of the Contract.

SC 14.02.A.4 Progress Payments

14.02.A.4 Amounts ascertained as payable per Article 14 shall be paid to

Contractor until such time as the sum of the progress payments equals ninety five (95%) of the Contract Price, as adjusted for by Change Orders.

Thereafter, no additional progress payments shall be made until after faithful final completion of the Work, including but not limited to correction of incomplete or deficient items identified in the final inspection; final cleaning and removal of temporary facilities and controls; preparation and delivery of operation and maintenance manuals, record drawings, and other project records and documents; completion of all required demonstrations and training;

completion of all close-out submittals; and all other close-out procedures and requirements, if any, required for the Project.

SC 14.06 Final Inspection

Add the following language:

14.06.A The Engineer, Owner, and Contractor will schedule and complete a

Final Inspection of the Work within 14 days of Substantial Completion.

During this Final Inspection, the Engineer and Owner will revise the tentative list of items to be completed or corrected, developed at Substantial

Completion, and submit it to Contractor within 2 days of the Final

Inspection.

Contractor shall remediate the incomplete or defective items identified during the Final Inspection, within 25 calendar of Substantial Completion

Failure of Contractor to complete the punchlist within the 25 days will result in assessment of Liquidated Damages, per the Contract, until all the incomplete or defective items are completely remediated and accepted by the

Engineer and Owner.

SC 14.07 Final Payment

Add the following language:

14.07.A.2e Contractor shall, within 14 days of obtaining approval that the list of incomplete or defective items is complete and has submitted all required documents per the Contract Documents, make application for final payment following the procedure for progress payments.

14.07.B If the Engineer rejects the Application for Final Payment to

Contractor, then Contractor will resubmit the revised Application for Final

Payment within 2 days or the assessment of Liquidated Damages will begin, per the Contract.

SC 15.02.A.1 Owner May Terminate for Cause

Delete reference to Paragraph 2.07 in Section 15.02.A.1 in its entirety and substitute it with Paragraph 2.08.

SC 16.01 Dispute Resolution:

16.01.D Any and all other references to arbitration in the Contract Documents shall be deleted.

SC 17.01 Giving Notice:

Add the following Subsections:

17.01.A.3 All notices, demands, requests, instructions, approvals, and proposals and claims must be in writing.

17.01.A.4 Any notice to or demand upon Contractor shall be sufficiently given if delivered at the office of Contractor stated on the signature page of the agreement (or an such other offices as Contractor may from time to time designate in writing to Owner), or if deposited in the United States mail in a sealed, postage-prepaid envelope, or delivered with charges prepaid to any telegraph company for transmission in each case addressed to such office.

17.01.A.5 All papers required to be delivered to Owner shall, unless otherwise specified in writing to Contractor, be delivered to the City of Rio

Rancho, Department of Public Works, 3200 Civic Center Circle NE, Rio

Rancho, New Mexico, 87144 and any notice to or demand upon Owner shall be sufficiently given if so delivered, or if mailed in the United States mail in a sealed, postage pre-paid envelope to City of Rio Rancho, Department of Public

Works, 3200 Civic Center Circle NE, Rio Rancho, New Mexico 87144, or delivered with charges pre-paid to any telegraph company for transmission to the same at such address, or to other representatives of Owner or to such other address as Owner may subsequently specify in writing to Contractor for such purpose.

17.01.A.6 Any such notice shall be deemed to have been given as of the time of actual delivery or in the case of mailing, when the same should have been received in due course of post, or in the case of telegrams, at the time of actual receipt, as the case may be.