6 DLNR Interim General Conditions Oct 1994.pdf

STATE OF HAWAII .

DEPARTMENT OF LAND AND NATURAL RESOURCES

DMSION OF WATER AND IAND DEVELOPMENT

J[NTERJ[M

GENERAL CONDITIONS

OCTOBER 1994

JOHN WAIHEE

Governor

BOARD OF LAND AND NATURAL RESOURCES

KEITH W. AHUE, Chairperson

HERBERT K. AP AKA, Jr., Kauai Member, Vice Chairperson

WILLIAM KENNISON, Maui Member

LIBERT K. LANDGRAF, Member at Large

MICHAEL H. NEKOBA, Oahu Member

CHRISTOPHER 1. YUEN, Hawaii Member

DEPARTMENT OF LAND AND NATURAL RESOURCES.

KEITH W. AHUE, Chairperson

JOHN p. KEPPELER n, Deputy

DONA L. HANAIKE, Deputy

DIVISION OF WATER AND LAND DEVELOPMENT

MANABU TAGOMORI, Manager-Chief Engineer

INTERIM GENERAL CONDITIONS

October 1994

TABLE OF CONTENTS

PAGE

TABLE OF CONTENTS . . . ~ . . . . . . . . . . . . . . . . . . . . . . . . . . . . -

SECTION 1--DEFINITIONS

SECTION 2--PROPOSAL REQUIREMENTS AND CONDITIONS

2.1 2.2 2.3 2.4

2 ·• 5 2,6 2.7 2.8 2.9 2.10 2.11

Qua1if ication of Bidders ............... ·

· Interpretation of Quantities in Bid Schedule Contents of Proposal Form Bidders Responsibility for Examination of Plans, Specifications, Site of Work, Etc Addenda and Interpretations ................ · Preparation of Proposal ... · Bid Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • Deli vecy of Proposals . . . . . . . . . . . • . . . . . . . . . . . . . . . . . . .. . . . . 1 7 Withdrawal or Revision of Proposals Public Opening of Proposals Disqualification of Bidders

SECTION 3--AWARD AND EXECUTION OF CONTRACT

3.1 Consideration of Proposals

3 . 2 Irregu.lar Proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 o 3 . 3 Award of Contract

3.4 Cancellation of Award

· 3. 5 Return of Bid Security ....... · ........•......•..... ·

3.6 Requirement of Performance and Payment Bonds

3 . 7 Execution of the Contract

3.8 Failure to Execute the Contract

3. 9 Notice to Proceed ..... ·

SECTION 4- -SCOPE OP WORlt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4

4 . 1 Intent of Contract

4.2 Changes and Claims for Adjustment

SECTION 5- -CONTROL OP WORlt ... · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 0

5.1 Authority of the Engineer

5.2 Shop Drawings and Other Submittals

5.3 Coordination of Contract Documents

5.4 Interpretation or Plans and Specifications

5.5 Cooperation Between the Contractor and the Department ... 34

5. 6 Inspection

5.7 Removai of Defective and Unauthorized Work

· 5. 8 Value Engineering Incentive

SECTION 6--CONTROL OF MATERIALS AND EQUIPMENT

6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11

Materials and Equipment Source of Supply & Quality of Materials ..........• Substitution of Materials and Equipment Asbestos Containing Materials Test Samples ...... : ................................. :

Material Samples Non-Conforming Materials ................... · Handling Materials Storage of Materials Property Rights in Materials Assignme.12t of Anti trust Claims for overcharges for Goods a.12d Materials Purchased

SECTION 7--PROSBctrrION AND PROGRESS

7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9

7.10 7.11 7.12 7.13 7.14 7.15

Prosecution of the Work ... :

Commencement Requirements ......... · Normal Working Hours . • • • • . . • • • • . • • • • • • . • • . . • • • • • • • • • • . . . 4 9 Hours of Labor ....••••••.•.••••..•••••....•.••.•....•. ~ . 4 9 Prevailing Wages Failure to Pay Required Wages .•......................... so Payrolls and Payroll Records ............................ so Overtime and Night Work . . . . . . . . . . . . • Overtime and Night Time Payment for State I~sl?ect~on Service .. :

L1m1 tat ions of Operations . . . . . . . . . . • Assignment or Change of Name .......•.• Laws to be Observed Patented Devices, Materials and Processes Sanitary, Health and Safety Provisions Preservation and Restoration Or Property, Trees, Monuments, Etc. • . • . . . • . . . . . . • •

7.16 Responsibility for Damage Claims ·········~·············· 56

7.17 Character of Workers or Equipment

7 .18 Contract Time

7. 19 Statement of Working Days

7. 20 Suspension of Work

7. 21 Disputes and Claims . . . . . . . . . . . . . . . . . . . . . . . . •

7.22 Failure to Complete the Work on Time

7.23 Termination of Contract

7. 24 Correcting Defects

7. 25 Final Cleaning Up

7. 26 Final Inspection

7.27 Project Acceptance Date

7. 28 Final Settlement Of Contract .............. ·

7.29 Contractor's Responsibility for Work

7.30 Personal Liability of Public Officials

7. 31 Guarantee Of Work

7. 32 Closing Contracts

7.33 ~ermination for Convenience of the State 7.34.Service Charge for Permanent Utility Connection

7. 35 Right to Audit Records

SECTION 8--MEASUREMENT AND PAYMENT

8 .1 Measurement of Quantities

8. 2 No Waiver of Legal Rights

8. 3 Pa}'Jllent and Compensation for Altered Quantities

8. 4 Payment for Additional Work

8.5 Progress and/or Partial Payments

8.6 Deduction from Payment

8. 7 Final Payment 8 • 8 Prompt Pa,Ymen t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 91

APPENDIX

Estimate. for Change Order ...................• Name of Corporation Form· Contract Form ............. : .................. • surety B1d Bond Porm ••.•••..••.•.•••••••••.• : . • • . . . . . • . 98 Surety Performance Bond l'orm . .. _ 'Performan.ce Bond Porm • . . . . . • • . • . . . . • • • • • • . • . . . . . . . • Surety Labor and Material Pa,Yment Bond Po.rm Labor and Material Pa,Yment Form Contractor Acknowledgement Form Surety Acknowledgement Form Certification of Recycled Content

SECTION 1-DEFINITIONS

Whenever the following terms or pronouns are used in these specifications, or in any documents or instruments where these specifications govern, the intent and meaning shall be interpreted as follows:

Addendum A written document which may be issued by the during the bidding period involving changes to the plans specifications which shall be considered and made a part contract.

Engineer and of the

Advertisement A public announcement inviting bids for work to be performed or materials to· be furnished.

Amendment A written document properly executed by the Contractor and the Engineer issued to amend the existing contract between the State and the contractor.

Bid or Proposal The offer of a bidder submitted in the prescribed manner, to perform at the prices quoted the work.

specified under the contract within the time prescribed for performance.

Bid Security The security furnished by the bidder as a warranty of good faith that he will enter into a contract with the state and to execute the required bonds covering the work contemplated, if his proposal is accepted.

Bidder Any individual, partnership, firm, corporation, joint venture, or other legal entity submitting, directly or through a duly authorized representative or agent, a proposal for the work contemplated.

Board of Land and Natural Resources The Board of Land and Natural Resources of the State of Hawaii as created by law, also sometimes referred to as the "Board", and acting either directly of through the Department of Land and Natural Resources or the Engineer.

By or To the Engineer To avoid cumbersome and confusing repetition of expressions in these specifications, it is provided that whenever the following words or word~ of like import are used, they shall be understood as if they were followed by the words "by the Engineer" or."to the Engineer", unless the context clearly indicates another meaning: contemplated, required, determined, directed, specified, authorized, ordered, giyen, designated, indicated, considered necessary, deemed necessary, permitted, reserved, suspended, estabiished, approval, approved, disapproved, acceptable, unacceptable, suitable, accepted, . satisfactory, unsatisfactory, sufficient, insufficient, rejected or condemned.

Calendar day Any day shown on the calendar beginning at midnight and ending at midnight the following day. If no designation of calendar or working day is made, "day" shall mean calendar day.

Change Order A written order issued by the Engineer to the contractor requiring the contract work to be performed in accordance with a change or changes that may involve an adjustment in contract _time and price or requiring performance of any·unforeseen work ~ssenti,1 to completion of the contract.· A change order signed by all the parties to the contract constitutes a supplemental agreement.

comptroller The comptroller of the state of Hawaii, Department of Accounting. and General Services.

contract The written agreement between the Contractor and the State of Hawaii, by which the Contractor is -bound to furnish all labor, equipment, and materials and to perform the specified work within the contract time stipulated, and by which· the state of Hawaii is obligated to compensate the Contractor therefor at the prices set forth therein. The contract shall include the Notice to contractors, Addenda, Proposal, Wage Schedule, List Of Subcontractors, General Conditions, Special Provisions, Plans, Technical Specifications, Contract Bonds and also any and all amendments and change orders which are required to complete the construction in an acceptable manner.

contract Time The number of working or calendar days provided in the contract for completion of the contract, exclusive of authorized time extensions. The number of days shall begin running on the effective date in the Notice to Proceed. If in lieu or providing a number of working or calendar days, the contract requires completion by a certain date, the work shall be completed by that date.

contracto·r Any individual, partnership, firm, corporation or joint venture, or other legal entity undertaking the execution of the work under the terms of the contract with the State of Hawaii, and acting directly or through his, their or its agents, or employees. ·

Department The Department of Land and Natural Resources, a body corporate of the State of Hawaii acting under the administrative direction of the Board of Land and Natural Resources.

Division of Water and Land Development An operating division of the Department of Land and Natural Resources.

Engineer The Manager-Chief Engineer of the Division of Water and Land Development, acting either directly or through authorized assistants.

Equal or Approved Equal Whenever this term is used in the plans and/or specifications this shall be interpreted to mean a brand or article in accordance with Subsection 6.3 "SUBSTITUTION OF MATERIALS AND EQUIPMENT" which may be used in place of the one specified.

Holidays The days of each year which are set apart and.

established as State holidays pursuant to ·chapter a, H.R.S.

Inspector Authorized assistant or representative of the Engineer assigned to make detailed inspections of contract performance and materials supplied.

Laws All Federal, State, City and County Laws, ordinances rules ·.and regulations, and standard specifications,. .. including any amendments thereto effective as of the date of the call for sealed tenders.

Liquidated Damages The amount prescribed in the General Conditions, Subsection 1.22 "FAILURE TO COMPLETE THE WORK ON TIME" to be paid to the state or to be deducted from any payments due or to become due the Contractor for each working day or calendar day (as applicable) delay in completing the whole or any specified portion of the work beyond ·the contract time allowed in the contract.

Letter of Award A written notice from the Board to the successful bidder(s) stating that his proposal has been accepted by the State.

Notice to Contractors The advertisement for proposals for all work or materials on which bids are required. such advertisement will indicate the location of the work to be done or the character of the material to .be furnished and the time and place of the opening of proposals.

Notice to Proceed A written notice from the Board to the Contractor advising him of the date on which he is to begin the prosecution of the work, which date shall also be the beginning of contract time.

Notice of Final Settlement A written notice published in a newspaper of general circulation, when the Board has determined and certified to the amount deemed by him to be due to or from the contractor after the work called for by the contract is fully completed although full payment is not then made and the amount may be subject to change.

Plans The contract drawings, which show the location, character, dimensions and details of the work to be done and which shall be a part of the contract.

Post Contract Drawings Drawings issued after the award of the contract for the purpose of clarification and/or change to the work indicated in the original plans and which shall be made a part of the contract.

Project contract Lim.its The portion of the site as delineated on the plans which define the Contractor's primary area of operation for the prosecution of the work. It does not define the exact limits of all construction that may be required under the contract.

Project Guarantee A guarantee issued by the Contractor to the State warranting against defects resulting from the use of defective materials or equipment and poor workmanship.

Proposal Porm The form prepared by the Department on which the written offer or formal bid for the work to be done is submitted by the bidder.

Questionnaire The specified forms on which the bidder shall furnish required information as to his ability to perform and finance the work.

special Provisions The specific clauses setting forth conditions or requirements peculiar to the individual project under consideration, which are not thoroughly or satisfactorily stipulated in these specifications.

specifications The directions, provisions and requirements, as contained in these General Conditions, addenda, special provisions, technical specifications, and change orders, pertaining to the method and manner of performing the work and the quantities and quantities of materials to be furnished under the contract.

state The State of Hawaii acting through its authorized representative.

SUbcontractor An individual, partnership, ~inn, corporation, joint venture or other legal entity, as covered in Chapter 444, Hawaii Revised statutes, which enters into an agreement with the contractor to perform a portion of the work for the Contractor.

superintendent The employee of the Contractor, authorized to receive and fulfill instructions from the Engineer, who is charged with the responsibility of all work.

surety The individual, firm or corporation other than the Contractor, which executes a bond with and for the contractor to insure his acceptable performances of the contract.

·work The furnishing of all labor, materials, equipment, and other incidentals necessary or convenient for the successful completion of the project and the execution of all the duties and obligations imposed by the contract.

Working day A calendar day, exclusive·of Saturdays, Sundays and State-recognized legal holidays, on which weather and conditionsnot under the 9ontrol of the Contractor will permit construction operations to proceed for at least six (6) hours or the day with the normal working force engaged in .performing the controlling item(s) of work in progress at the time, as determined by the Engineer.

SECTION 2--PROPOSAL RBQUIREMBRTS

AND CONDITIONS

2 .1 QUALIFICATION OF BJ:DDERS_--Prospective bidders must be capable of perforrcying the work for which bids are being called.

· In accordance with Section 103D-310, Hawaii Revised Statutes, each prospective bidder must file a written notice of his intention to bid. This written notice must be addressed to the Manager-Chief Engineer, Division of Water and Land Development,.who is the officer charged with letting the contract. The words, "intention to bid" must be clearly written or typed on the face of the envelope containing the written notice of intention to bid. The notice may be handcarried, mailed or sent by telephone facsimile to the office .or telephone facsimile number indicated in the Notice to contractors.

In either case, the written notice must be received in the above office no later than 2:00 p.m. on the 10th calendar day prior to the day designated for opening bids. If the 10th calendar day prior to the day designated for opening bids is a Saturday, Sunday, or legal state holiday, then the written notice must be received by the State no later than 2:00 p.m. on the last working day immediately prior to said Saturday, Sunday, or legal State holiday. The written notice will be time stamped when received by said office. The time designated by the time stamping device in said office shall be official. If the written notice is handcarried, then the bearer is responsible to ensure that the notice is time stamped by said office.

--rt is the responsibility of the prospective bidder to ensure that the written notice of intention to bid is received in time and the State assumes no responsibility for failure of timely delivery caused by the prospective bidder or by any method of conveyance chosen by the prospective bidder.

If two (2) or more prospective bidders desire to bid jointly as a joint venture on a single project, they must file an affidavit of joint venture with their notice of intention to bid.

Such affidavit of joint venture will be valid only for the specific project for which it is filed~ No further license is required when all parties to the jo~nt venture possess current and appropriate contractor's licenses. Joint ventures are required to be licensed in accordance with Chapter 444 of the Hawaii Revised Statutes, as amended, and the rules and regulations of the contractor'.s License Board when any party to the joint venture agreement does not hold a current or appropriate to the contractor's license. 'I'he joint venture must register with the office of the Director of commerce and·consumer

_Affairs in accordance with Chapter 425 of the Hawaii Revised Statutes, as amended. ·

A written notice of· intention to bid must be filed for all construction of buildings, roads, other field construction work or other public works and in conjunction therewith, the furnishing and installing of furniture, equipment, appliances, material-and any combination of these items where to do such work requires a contractor's license under Chapter 444 of the. Hawaii Revised Statutes, as amended, and the rules and regulations of the Contractor's License Board. A written notice of intention to bid need not be filed for the mere furnishing and.installing of furniture, equipment, appliances, material and any combination of t~ese items when a contractor's license is not required under Chapter 444 of the Hawaii Revised Statutes, as amended,· and the rules and regulations of the Contracto~'s License Board.

No person, firm or corporation may bid where (l) the person, firm, or corporation, or (2) a corporation owned substantially by the person, firm, or corporation, or (3) a substantial stockholder or an officer of the corporation, or (4) a partner or substantial investor in the firm is in arrears in any payment owned to the State of Hawaii or any of its political subdivisions or is in default of any obligations to the State of Hawaii or to any of its political subdivisions, including default as a surety or failure to perform faithfully and diligently any previous contract with the state.

Any person, firm or corporation that submits a Notice of Intention to Bid must submit along with said Notice ot Intention to Bid a current statement or certificate from the Director of Taxation to the effect that all delinquent taxes levied or accrued under State statutes against said person, firm or co~poration have been paid, and any other evidence requested by and acceptable to the contracting otticer to demonstrate that the prospective bidder is not in default ot any obligations due to the State or any of its political subdivisions.

Any person, firm or corporation that is not presently doing business in the state of Hawaii and sul:)mits a Notice of Intention to bid must submit along with said Notice of Intention to Bid a certified letter stating that said person, firm or corporation is not doing business in the state of Hawaii and is not in default of any obligations due to the State or any of its political sul:)divisions.

The required tax certiricate or certiried letter must be

· riled along ·with the bidder's Notice or Intention to Bid.

Failure to submit the required tax certificate or certiried letter will be surricient grounds ror the state to refuse to .receive or consider the prospective bidder's proposal.

The Engineer may, in accordance with Section 103D-310 Hawaii Revised.Statutes, requir~ the prospective bidder to submit answers to question contained in the "Standard Qualification Questionnaire for Prospective Bidders on Public. Works Contracts", on the form provided by the Department, properly executed and notarized, setting forth a complete statement of the experience of such prospective bidder and his organization in performing similar work and a statement of the equipment proposed to be usedi;· together with adequate pi::oof of the availability of such equipment, at least forty-eight (48) hours prior to the time advertised for the opening of bids. If the information in the questionnaire proves satisfactory, the bidder's proposal will be received. All information contained in the answers to the·· questionnaire shall be kept confidentia~. The question~aire will be returned to the bidder after it has served its purpose.

If upon review of the Questionnaire, or otherwise, the· bidder appears not fully qualified or able to perform the intended work, the Engineer shall, after affording the bidder an opportunity to be heard and if still of the opinion that the bidder is not fully qualified to perform the work, refuse to receive or to consider·any bid offered by the prospective bidder.

Failure to complete the prequalification questionnaire will be sufficient cause for the Department to disqualify a prospective bidder.

2.2 INTERPRETATION OF QUANTITIES IN BID SCBBDULB--When quantities for individual items of work are listed in the proposal form for which respective unit prices are asked, said quantities are to be conslaered as approximate and are to be used by the Department only for the purpose of comparing on a uniform basis bids offered for the work. The Department does not, expressly or by implication, agr~e that the actual quantity of work will correspond therewith. The undersigned agrees that he is satisfied with and will at no time dispute said estimated quantities as a means of comparing the bids.

After determining the low bidder by comparison of bids submitted in accordance with the proposal form and Subsection 3 .1--"CONSIDERATION OF PROPOSALS" in these specifications, t:1e state reserves the right to increase or decrease the scope of the improvement, subject to the provisions of Subsection

4.2--"CHANGES AND CLAIMS FOR ADJUSTMENT".

On unit price bids, payment will be made only for the actual number of units incorporated into the finished project at the unit price bid.

It is understood and agreed that the contractor will make no claim for anticipated profit or loss of profit due to the Department's right to eliminate entirely portions of the work or to increase or decrease·any or all of the quantiti~s shown in the proposal .form. · ·

2.3 CONTENTS OF PROPOSAL FORMS--Prospective bidders will be

furnished with proposal forms giving the location, description, and the contr~ct time of the work contemplated for which a lump sum bid price is asked or containing a schedule of items, together with estimated quantities of work ~o be performed and materials to be furnished, for which ~nit bid.prices ~nd/or lump sum bid prices.are asked.

Proposal forms will also include a listing of.joint contractors and/or subcontractors indicating the name of each perso~ or firm to be engaged on the project as a joint contractor or subcontractor along with their contractor's license number.

· The prime contractor is responsible for verifying that their joint ~ontractors or subcontractors have the proper license at the time of submittal of the bid.

All papers bound with or attached to the proposal form shall be considered a part thereof and shall not be detached or altered when the proposal is submitted.

The plans, specifications and other documents designated in the proposal form, will also be considered a part thereof whether attached or not.

2.4 BIDDERS RESPONSIBILITY FOR BDKIHATIOH OF PLAHS,

SPECIFICATIONS, SITE OF won; ETC.-- The bidder shall examine carefully the site of work contemplated and the proposal, plans, specifications, supplemental specifications, special provisions and contract and bond forms therefore. The submission of a bid shall be considered as a warranty that the bidder has made such examination and is satisfied with the conditions to be encountered in performing the work and with the requirements of the plans, specifications, supplemental specifications, special provisions, contract and bonds.

No extra compensation will be given by reason of the Contractor's misunderstanding or lack of knowledge of the requirements of the work to be accomplished in performing the project.

Where an investigation of subsurface conditions has been made by the Department in respect to foundation or other design, the bidders may inspect the records of the Department as to such investigation, including examination of samples, if any, at the office of the Manager-Chief Engineer, Division of Water and Land Development, Honolulu, Hawaii. It is understood, however., that any such information furnished is for the bidders' convenience

· only and no assurance is given that conditions found at the time of the subsurface investigation, such as the presence or.absence of water, will be conditions that prevail at the time of construction.

When the contract plan includes a log of test borings showing a record of the data obtained by the-Department's investigation of subsurface conditions, said log represents only the gpinion of the Department as to the character of material encountered by it in its test borings and there is n~ warranty, eith~ expressed or implied, that the conditions indicated are representative of those existing throughout the work or any part of it, or that unforeseen developments may not occur.

Information regarding the site of the work given on the drawings or·specifications has been·obtained by the Department and is believed to be reasonably correct. However, it is the responsibility of the bidder to verify all such information.

During the progress of the work, i:f 'the Contractor encounters conditions at the site differing :from 'those shOll'Zl in the plans and specifications, he shall promptly, and before any such conditions are disturbed or damaged, notiZy 'the Engineer ox:

a. SUbsurface or latent physical conditions at the site differing materially from 'those indicated in the contract; or

b. UnknOll'Zl physical conditions at 'the site, of an unusual nature di:f:fering materially :from those ordinarily encountered and generally recognized as inherent in work of t:he character provided :for in this contract.

After receipt o:f such notice, the Engineer shall promptly.

investigate the site, and if it is :found that such conditions do materially so di:f:fer and cause an increase in the contractor's cost of, or the time required.for, performance of any part of the work under this contract, whether or not changed as a result of such conditions, an adjustment shall be made and the contract modified in writing accordingly. Any adjustment in contract price made pursuant to this clause shall be determined in accordance with SUbsection 4.2a •PRICE ADJCJSfllEN'l'•.

Nothing contained in this clause shall be grounds for an adjustment in compensation if the contractor had actual knowledge ot the existence ot such conditions prior to the submission ot bids.

At the•time of opening of bids, each bidder will be presumed to have conducted a detailed inspection of the project site, to have read and to be familiar with.the Plans, Specifications and other contract documents, including all Addenda. The failure or omission·of any bidder to thoroughly inspect the site or to receive or examine any form, instrument or document shall in no way relieve him from any obligation regarding his bid.

The bidder acknowledges that he has investigated and satisfied himself as to the conditions affecting the project site. These conditions include but are not limited to, those bearing on transportation, access, roads, uncertainties of weather, river stages, tides, underwater topography and similar physical conditions at the site. The bidder further acknowledges that he has satisfied himself as to the character, quality and quantity of surface and subsurface materials or obstacles to be encountered insofar as is reasonably ascertained from an inspection of the site and information presented in the.Plans, Specifications and other contract documents, including all · Addenda.

The failure of the bidder to acquaint himself with the available information will not relieve him from ·responsibility for estimating the difficulty or ~ost of successfully performing

.. the work, nor will the bidder be relieved of his obligations to furnish all materials, labor, equipment and incidentals necessary to perform the work set forth in his bid and to perform his contract, if awarded to him.

Any utilities that the Contractor encounters during the progress of the work, such as telephone ducts, electric ducts, water lines, sewer lines, electric lines and drainage pipes, whether shown or not on the contract plans, shall not be disturbed or damaged unless otherwise instructed in the plans and specifications.

In the event the utilities are damaged or disturbed by the contractor, the Contractor shall be.held liable for the damaged or disturbed utilities which were:

a. Shown on the plan.

b. Located and exposed on the job as it progressed.

c. Pointed out to the Contractor in the field.

The contractor shall repair the damaged or disturbed utilities to the existing condition at no cost to the State or

·the project. Any damage claims due to the disrµption of service caused by the utilities being-damaged shall be paid by the Contractor who shall save harmless the State from all suits, actions or claims of any character brought on account of such damages.

In the event utilities which were not shown on the plans and specifications are damaged or disturbed by the Contractor, the contractor shall not be held liable but shall notify the Engineer. Upon instruction -from the Engineer, the Contractor shall repair all damages which shall be considered to be · additional work as covered by Subsection 4.2b "ADDITIONAL WORK".

Utilities which must be relocated due to construction and not so indicated in the plans and specifications shall also be considered to be additional work as covered by Subsection 4.2b "ADDITIONAL WORK". The Contractor shall not in any case, if he encounters underground utilities, proceed with any work until he has ·notified the Engineer.

2.s ADDENDA ARD INTERPRETATIOHS--Discrepancies, omissions, or doubts as to the meaning of drawings and specifications should be communicated in writing to MANAGER-CHIEF ENGINEER; DIVISION OF

WATER AND LAND DEVELOPMENT, P.O. BOX 373, HONOLULU, HAWAII, 96809

for interpretation and must be received by the Division of Water and Land Development no later than fourteen (14) calendar days prior to the date fixed for bid opening. Any interpretation, if made, and any supplemental instructions will be in the form of written addenda to the plans and specifications, which will be mailed to all prospective bidders at the respective addresses furnished for such purposes, eight (8) calendar days prior to the date fixed for the opening bids. Failure of any bidder to receive any such addendum or interpretation shall not relieve such bidder from any obligation under his bid as submitted. All.addenda so issued shall become part of the contract documents.

2.6 PREPARATION OF PROPOSAL--The bidder's proposal must be

submitted on the proposal form furnished by the Department. The proposal must be prepared in full accordance with the instructions thereon. The bidder must state, both in words and numerals, the lump sum price at which the work contemplated is proposed to be done. These prices must be written in ink or typed. Prices written in pencil are not acceptable. In case of a discrepancy between the prices written in words and those written in figures, the words shall govern over the figures. The bidder shall sign the proposal in the spaces provided with ink.

If the proposal is made by an individual, his name and post office address must be shown in the space provided. If made by a partnership the name and post office address of each member of the partnership must be shown and the proposal signed by all partners or evidence in the form of a partnership agreement must be submitted showing the authority of the partner to enter, on behalf of said partnership, into contract with the state. If made by a corporation the proposal must show the name, titles, and business address of the president, secretary and treasurer and .also evidence in the form of a corporate 1:esolution must be submitted showing the authority of the particular corporate representative to enter on behalf of said corporation into contract with the state. (See sample in Appendix.) If made by a joint venture the name and post office address of each member of the individual firm, partnership or corporation comprising the joint-venture must be shown with other pertinent information required of individuals, partnerships or corporations as the case

·.may be. The proposal must be-signed by all.parties to the Joint-Venture or evidence in the form of a Joint-Venture Agreement must be submitted showing the authority of the Joint Ventura's representative to enter on behalf of said Joint Venture into contract with the State.

Pursuant to the requirements of Section 103D-302,. Hawaii Revised Statutes, each bidder shall include in his bid the name of each person or firm to be engaged by the bidder on the project as joint contractor or subcontractor indicating also the nature and scope of work to be performed by such joint contractor and/or subcontractor.

2.1 BID SECCJRITY--No proposal estima'ted by t:he state to total more than $25,000 will be considered unless accompanied by one of the following:

a. surety bid l,Qnd undezwrif:f:en by a company licensed to issue bonds in f:his Sf:ate (See Standard Form in Appendix); or

b. Legal 'l'ender; or

c. Cerf:i~icaf:e of Deposit; share cerf:i~icaf:e; or cashier's, f:reasurer's, f:eller's or official check drawn by, or a certified check accepf:ed by, and payable on demand to the state by a bank, a savings instituf:ion, or credit union insured by the Federal Deposit: Insurance Corporation or t:he National credit Union Administration.

1)

2)

'l'hese instruments may be utilized only to a marimwn of $100,000.

If the required security or bond amount totals over $100,000, more than one instrument not exceeding $100,000 each and issued by different financial institutions shall be accepted.

CAUTION--Bidders are cautioned that certiLicates oL deposit or share certiLicates with an early withdrawal penalty must have a face value sufficient to cover the maximum penalty amount in addition to the proposal guaranty requirement. Also if the certificate is made out to two names, the certificate must be assigned unconditionally to the Comptroller, State of Hawai.i_.

Unless otherwise stated, the bid securit:y shall be at least five (5) percent of the bid amount:.

If the bidder is a corporation, evidence in the form of a corporate resolution, authorizing the corporate representative to execute the ~ond must be submitted with the proposal. (See sample in Appendix.) If the bidder is a partnership, all partners must sign-·the bond or evidence in the form of a partnership agreement must_-be submitted showing the authori~y of the partner.

""If the bidder is a joint venture, all parties to the joint venture must sign the bond or evidence in the.form of a joint-venture agreement must be submitted showing the authority of the bidder to sign the bond on behalf of the joint-venture.

In the case where the award will be made on a group or item basis, the amount of bid security shall be based on the total bid for all groups or items submitted.

·Bidders are cautioned that surety bid bonds which place a limit in value to the difference between the bid amount and the next acceptable bid, such value not to exceed the purported amount of the bond, are not acceptable. Also, surety bid bonds which place a time limit on the right of the State to make claim other than allowed by statutes or these GZNBRAL CONDITIONS are not acceptable. Bidders are hereby noti~ied that a surety bid bond containing such limitation(s) is not acceptable and a bidder's bid.accompanied by such surety bid bond will be automatically rejected.

2.8 DELIVERY OF PROPOSALS--The entire proposal shall be placed together with the bid security, in a sealed envelope no smaller than 9-1/2" x 12", so marked as to 'indicate the identity of the project, the project number, the date of bid opening and the name and address of the bidder and then delivered as indicated in the Notice to Contractors. Bids which do not comply with this requirement may not be considered. Proposals will be received up to the time fixed in the public notice for opening of bids and must be in the hands of the official by the time indicated. The words "SEALED BID" must be clearly written or typed on the face of the sealed envelope containing the proposal and bid security.

2., WI'l'HDRAWAL OR REVISION OP PROPOSALS--O~fers may be modified or withdrawn prior to the deadline for submittal of offers by the following documents:

a. Withdrawal of offers:

1. A written notice received in the office designated in the solicitation; or

2. A written notice faxed to the.office designated in the solicitation; or · ·

3. A telegraphic message received by telephone by the office designated in the solicitation from the receiving telegraph company ofLice, provided the telegraph company conZJ.rms the .. telephone message by sending a written copy of ~e telegram shOt1ing that the message was received at such office prior to the time and date set ~or the opening • .

b. Modification of offers:

1. A written notice received 1n the office designated in the solicitation, stating that a modification to the offer is submitted; and

2. The actual modifications securely sealed in a separate envelope or container, accompanying the written notice.

2.10 PUBLIC OPDING OF PROPOSALS--Proposals will be opened and read publicly at the time and place indicated in the Notice to contractors. Bidders, their authorized agents and other interested parties are invited to be present.

2.11 DISQUALIFICATION OP BIDDERS-~Any one or more of the

following causes will be considered as sufficient for the disqualification of a bidder and the rejection of his proposal or proposals:

a. Non-compliance with Subsection 2.1 "QUALIFICATION OF

BIDDERS".

b. Evidence of collusion among bidders.

c. Debarment or suspension in accordance with Section 1030-702, Hawaii Revised Statutes.

d. Being in arrears on existing contracts with the state of Hawaii, or having defaulted on a previous contract.

e. Lack of proper equipment and/or sufficient experience to perform the work contemplated, as revealed by the Standard Questionnaire and Financial Statement for · Bidders.

f. No contractor's license or a contractor's license which does not cover type of work contemplated.

g. More than one proposal for the same work from an individual, firm, partnership, corporation or joint venture under the same or different name.

-··h. Delivery of bids after the 2: 00 p.m. deadline specified in the advertisement calling for bids.

i. Failure to pay, or satisfactorily settle, all bills overdue for labor and materials of former contracts in force at the time of issuance of proposal forms.

3.1 CONSIDERATION 0~ PROPOSALS--After the proposals are opened and read, the figures will be extended and/or totaled in accordance with the bid prices of the acceptable proposals and the totals will be compared and the results of such comparison shall be made public. In the event of a tie bid, the low bidder shall be determined by lot. In the comparison of bids, words written in the proposals will govern over figures and unit prices will govern over totals. Until the award of the contract, however, the right will be reserved to reject any and all proposals and to waive any defects or technicalities as may be deemed best for the interest of the State.

a. Sul>contracting--The contractor shall perform with his own organization, work amounting to not 1ess than twenty percent (20%) of the total contract cost, except that any items designated by the State in the contract as "specialty items" may be performed by sul>contract and the cost of any such specialty items so·performed by subcontract may be deducted from the total contract cost before computing the amount of work required to be performed by the Contractor with his own organization.

3.2 IRREGOLAR PROPOSALS--Proposals will be considered irregular and may be rejected for the following reasons:

a. If the proposal is unsigned.

b. If Bid security is not in accordance with Subsection

2.7 "BID SECURITY".

c. If proposal is on a form other than that furnished by the Department; or if the form is altered or any part thereof detached.

d. If the proposal shows any non-compliance with applicable law, alteration of form, additions not called, conditional bids, incomplete bids, uninitialed erasures, other defects, or·if the prices are obviously unbalanced.

e. If the bidder adds any provisions reserving the right to accept or reject an award, or to enter into a contract pursuant to an award. This does not exclude a proposal limiting the maximum gross amount• of awards acceptable to any one bidder at any one bid letting, provided that any selection of awards will be made by the Department.

f. When a proposal is signed by_ an officer or officers of a corporation and a currently certified corporate resolution authorizing such signer(s) to submit such proposal is not submitted with the proposal or when the proposal is signed by an agent other than the officer or officers of a corporation or a member of a partnership and a power of Attorney is not submitted with the proposal.

g. Where there is an incomplete or ambiguous listing of joint contractors and/or subcontractors the proposal may be rejected. All work which is not listed as being performed by joint contractors and/or subcontractors must be performed by the bidder with his own employees.

Additions to the list of joint contractors or subcontractors will not be allowed. Whenever there is a doubt as to the completeness of the list, the bidder will be required to submit within five (5) working days, a written confirmation that the work in question will be performed with his own work force. Whenever ther~ is more than one joint contractor and/or subcontractor listed for the same item of work, the bidder will be required to either confirm in writing within five (5) working days that all joint contractors or subcontractors listed will actually be engaged on the project or obtain within five (5) working days written releases from those joint contractors and/or subcontractors who will not' be engaged.

3.3 AWARD or CONTRACT--The award of contract, if it be awarded,

· will be made within sixty (60) consecutive calendar days after the opening of the proposals to the lowest responsible and responsive bidder (including the alternate or alternates which may be selected by the Engineer in the case of alternate bids) whose proposal complies with all the requirements prescribed, but

· in no ca.se will an award be made until all necessary investigations are made. The successful bidder will be notified, by letter mailed to the ~ddress shown on the proposal, th~t his bid has been accepted and that he has been awarded the contract.

No contract will be awarded to any person ·or firm suspended under the provisions of Chapter 103D-702, Chapter 104 and Chapter 444, Hawaii Revised statutes as amended.

-"·The contract will be drawn on the forms shown in the Appendix, which will be furnished by the Engineer.

3.4 CANCELLATION OF AWARD--The Department reserves the right to cancel the award of any contract at any.time before the execution of said contract by all parties without any liability to the awardee and to any other bidder. ·

3.5 RETURN OF BID SECORITY--All bid securities, except those of the four (4) lowest bidders, will be returned following the opening and checking of the proposals. The retained bid securities of the remaining two (2) lowest bidders will be returned within five (5) working days following the execution of contract. The successful bidder's bid security will be returned after a satisfactory contract bond has been furnished and the contract has been executed. ·

3.6 REQUIREMENT OF PBRFORIIANCB AND PAYHBirP BOBDS--Per:formance and Payment Bonds shal.1 be required ~or cont:raats 8%ceeding $25,000.

At the time of the execution of the contract, the successful bidder shall file good and sufficient per~o.rJDaDce and payment bonds on the form furnished by the Department (see Appendix), each in an amount equal to one hundred percent (1001) of the amount of the contract price unless otherwise stated in the solicitation of bids. Acceptable performance and payment bonds shall be limited to the following:

a. SUrety bond undezwritten by a company licensed to issue bonds in this State; or

b. Legal Tender; or

c. A certificate of deposit; share certificate; or cashier's, treasurer's, teller's o~ official check drawn by, or a certified check accepted by, and payable on demand to the State by a bank, a savings institution, or credit union insured by the Federal Deposit Insurance corporation or the National credit Union Administration.· · ·

1) These instruments may be utilized only to a maximum of $100,000.

2) If the required securicy or bond amount totals· over $100,000, more than one instrument not exceeding $100,000 each.and.issued by different financial institutions. shall.be acceptable.

If the cont:ractor fails to deliver the required performance and payment bonds, the contractor's award shall b~ cancelled, its bid security enforced and award of the contract shall be made to the ~ext lowest bidder.

3.7 EXECU'?ION OP HE CON'l'RACT--The contract shall be signed by ... the successful bidder and returned, together with satisfactory ,_ performance and payment bonds, within ten (10) calendar days ···. after the bidder is awarded the contract for execution or within such further time as the Manager-Chief Engineer may allow. No proposal or contract shall be considered binding upon the State until the contract has been fully and properly executed by all parties thereto and the Comptroller of the State has endorsed thereon his certificate, as-required by Section 103D-309, Hawaii Revised Statutes, that there is an available unexpended · appropriatio~·or balance of an appropriation over and above all outstanding contracts sufficient to cover the State's amount required by such contract.

On any individual award totalling less than $25,000.00, the State ~eserves the right to execute the contract by the issuance of a State Purchase Order. Acceptance shall result in a binding contract between the parties without further action by the State.

Executing the contract Purchase Order shall not be deemed a waiver of these specification requirements.

3.8 FAILURE TO EXECUTE THE CONTRACT--If the Bidder to whom a

contract is awarded shall fail or neglect to enter into the contract and to furnish satisfactory security within ten (10) calendar days after such award or within such further time as the Manager-Chief Engineer may allow, the award shall be cancelled and the bid security shall be declared forfeited. The bid security shall thereupon become a realization of the State, not as a penalty, but in liquidation of the damages sustained. The Board may thereupon award the contract to the next lowest responsible bidder or may call for new bids, whichever method he may deem is to the best interest of the State.

· 3.9 NOTICE TO PROCEED--After the -contract is.fully executed and signed by the Engineer, the Contractor will be sent a formal "Notice to Proceed" advising the Contractor of the date on which he may proceed with the work. The Contractor shall be allowed ten

(10) consecutive working days from said date to begin his work.

In the event.that the contractor refuses or neglects to start the work, th~ ~ngineer may terminate the contract in accordance with Subsectj,.on 7.23. "TERMINATION 01' CONTRACT".

'-'!'he Contractor may commence his operations prior to receipt of a·-formal notice to proceed, provi4e4 he makes a written request and receives approval from the Engineer in writing. All work performed shall be conducted in accordance with subsection

7~1 "PROSECUTION OF THE WORK".

In certain cases, the State, with-agreement of the contractor, may issue a "Notice to Proceed" before full execution of the contract and concurrently with the notice of "Award".

In the event the Notice to Proceed is not issued within 180 days after the opening date of the proposals, the contractor may submit a claim for increased labor, material and overhead costs which are directly attributable to the project. such claims shall be accompanied with the necessary documentation to justify the claim.

SECTION 4--SCOPE OF WORK

4.1 INTENT OF CONTRACT--The intent of the contract is to provide for the construction, complete in every detail, of the work described. The Contractor shall furnish all labor, materials, equipment, tools, transportation and supplies .. required to complete the work in accordance with the. plans, ... specifications and terms of the contract.

4.2 CHANGES AND CLAIMS FOR ADJUSTMBN'l'--The Engineer may at any time, during the progress of the work, by written order, and without notice to the sureties, make changes in the drawings and/or specifications of the…