89-20251015-CCC.pdf

ADVERTISEMENT FOR BIDS

Sealed proposals will be received until 3:00 PM on November

20, 2025 at Cleveland Community College, 137 S. Post Road, Shelby, NC 28152 in the Jack Hunt Building, Room 2071, for the construction of:

Cleveland Community College Paksoy and Multi-Use Facility HVAC

Make Up Air Upgrade at which time and place bids will be opened and read.

A non-mandatory pre-bid conference will be held on November 6, 2025 in the same location as above, Jack Hunt Building, Room

2071.

Complete plans and specifications for this project can be obtained from AeroRaq Engineering, Inc. 8511 davis Lake Parkway, Suite C6 - 205, Charlotte, NC 26269 Attn: Hakeem Bailey hakeembailey@aeroraq.com and available only to prime bidders after October 15, 2025. (704)469-8463.

The state reserves the unqualified right to reject any and all proposals.

mailto:hakeembailey@aeroraq.com

Cleveland Community College

Paksoy and Multi-purpose facility Make Up Air Upgrade

FOR:

Facilities Services 137 South Post Rd.

Shelby, NC 28152

09/29/2025

SEALS PAGE

ARCHITECT

tructural Engineer

Mechanical Engineer

AeroRaq Engineering Inc 8511 Davis Lake Parkway Suite C6 - 205 Charlotte, NC 26269

Electrical Engineer AeroRaq Engineering Inc

8511 Davis Lake Parkway Suite C6 - 205 Charlotte, NC 26269

Civil Engineer

TABLE OF CONTENTS

A. INTRODUCTORY INFORMATION

Cover Sheet Seals Page Table of Contents

B. PROCUREMENT AND CONTRACTING REQUIREMENTS

Notice & Instructions to Bidders Informal Contract - Bid Proposal / Acceptance Form General Conditions of the Contract Supplementary Conditions of the Contract

C. TECHNICAL SPECIFICATIONS:

01 01 10 Summary of Concrete 01 73 10 Cutting and Patching 03 05 00 Common Work Results for Concrete 09 09 00 Painting 23 05 93 Testing Adjusting and Balancing 23 07 16 HVAC Insulation 23 31 00 HVAC Ducts and Casing 23 37 13 Diffusers, Registers and Grilles 23 73 00 Indoor Central Station Air Handling Units 23 74 00 Packaged Outdoor HVAC Equipment 26 05 00 Common Work Results for Electrical 26 05 19 Low Voltage Power Conductors and Cables 26 05 26 Grounding and Bonding for Electrical Systems 26 05 53 Identification for Electrical Systems 26 27 26 Wiring Devices 26 28 16 Enclose Switches and Breakers

END OF TABLE OF CONTENTS

NOTICE TO BIDDERS

Sealed proposals will be received by the Owner –Cleveland Community College, 137 South Post Rd.

, Shelby , NC 28152 up to 3:00 pm on Nov 20, 2025, for the furnishing of labor, material and equipment entering into the construction of the Make Up Air Upgrade.

Bids will be received for single prime contracts only . All proposals shall be lump sum.

All contractors are hereby notified that they must have proper license as required under the state laws governing their respe ctive trades.

NOTE: The bidder shall identify on its bid proposal the minority business participation it will use on the project. Forms are included within the Proposal Form in the bid documents. Failure to complete these forms is grounds for rejection of the bid.

(GS143-128.2c Effective 1/1/2002.)

CONTRACTOR’S LICENSE: General contractors are notified that Chapter 87, Article 1, General Statutes of North Carolina, will be observed in receiving and awarding general contracts. General contractors submitting bids on this project must have licen se classification for unlimited general construction.

NOTE: Under GS 87-1, a contractor that superintends or manages construction of any building, highway, public utility, grading, structure, or improvement shall be deemed as “general contractor” and shall be so licensed. Therefore, a single prime projec t that involves other trades will require the single prime contractor to hold a proper General Contractors license.

In the case of separate prime or dual bidding, Plumbing, mechanical and electrical prime contractors are notified that Genera l

Statutes Chapter 87, Articles 2 & 4, will be observed in receiving and awarding plumbing, mechanical and electrical contracts .

Payment will be made based on ninety-five percent (95%) of monthly estimates and final payment made upon completion and acceptance of work.

AWARD OF THE CONTRACT: No bid may be withdrawn after the scheduled closing time for the receipt of bids for a period of

30 days. The Bidder shall guarantee its Bid for a period of ninety (90) calendar days from the date of the opening . Award of this contract is subject to approval by the Board of Trustees of Cleveland Community College. The Owner reserves the right to waive informalities and to reject any and all bids.

OWNER’S RIGHTS RESERVED: The owner reserves the right to cancel this Notice Inviting Bids at any time, and further reserves the right to reject all submitted bids, without giving any reason for such action, at its sole discretion and withou t liability.

All costs incurred by Bidders, as a result of preparing Bids under this Notice Inviting Bids, shall be the sole responsibility of each

Bidder. This Notice Inviting Bids creates no obligation upon the OWNER to enter into a contract.

PROJECT ADMINISTRATION: All communications relative to this PROJECT shall be directed to Hakeem R Bailey no later than seven (7) days prior to opening of the Bids at the following address:

*** Minority and Women Business Enterprises are Highly Encouraged to Apply ***

INSTRUCTIONS TO BIDDERS

Sealed bid for this work will be received by:

Mark Fox, Director of Capital Projects

137 South Post Rd, Shelby, NC 28152, 704-330-6234 up to 3:00 PM, on Nov 20th, 2025 and immediately thereaf ter publicly opened and read aloud.

Complete plans and specif ication and contract documents can be obtained f rom

AeroRaq Engineering Inc

8511 Davis Lake Parkway, Suite C6-205 Charlotte, NC 28269

704-469-8463

Contractors are hereby notif ied that they must have proper license under the State laws governing their respective trades and that North Carolina General Statute 87 will be observed in receiving and awarding contracts.

Contractors must have Plumbing license classif ication for Mechanical (HVAC) .

No bid may be withdrawn af ter the opening of bids for a period of 30 days. The Owner reserves the right to reject any or all bids and waive informalities.

Bids shall be made only on the BID PROPOSAL FORM provided herein with all blank spaces for bids properly f illed in and all signatures properly executed.

Please note on the envelope – Bid : Attn: Mark Fox

November 20, 2025

(Contractor) (License Number)

There will be a voluntary pre-bid meeting held on Thursday, Nov 06th, 2025 at 2:00 pm. The meeting will be held at the work site, 137 South Post Rd. Shelby, NC 28152.

State of North Carolina Standard Form of Informal Contract and General Conditions 1

STATE OF NORTH CAROLINA

STANDARD FORM OF INFORMAL CONTRACT

AND GENERAL CONDITIONS

FOR

Paksoy and Multi-Use Facility

SCOPE OF WORK

Remove and replace dedicated outdoor air handler with a split outdoor air handler and condensing unit for cooling and dehumidif ication of outside air. Remove and replace two packaged roof top units on the multi-purpose facility.

New thermostats will be provided. There is an alternate for adding patio heaters on the exterior of the multi-purpose facility.

Contractors are hereby notif ied that they must have proper license under the State laws governing their respective trades and that North Carolina General Statute 87 will be observed in receiving and awarding contracts. General

Contractors must have general license classif ication for limited classif ication.

No bid may be withdrawn af ter the opening of bids for a period of 30 days. The Owner reserves the right to reject any or all bids and waive informalities. Bids shall be made only on the BID/ACEPTANCE form provided herein with all blank spaces for bids properly f illed in and all signatures properly executed.

State of North Carolina Standard Form of Informal Contract and General Conditions 2

BID/ACCEPTANCE FORM

for

Paksoy and Multi-Use Facility HVAC Make Up Air Upgrade

The undersigned, as bidder, proposes and agrees if this bid is accepted to contract with the State of North Carolina through Cleveland Community College for the furnishing of all materials, equipment, and labor necessary to complete the construction of the work described in these documents in full and complete accordance with plans, specifications, and contract documents, and to the full and entire satisfaction of Cleveland Community College for the sum of:

BASE BID: Dollars $

ALTERNATE :1 BID: Dollars $

Respectively submitted this day of _____ _______20

(Contractor’s Name)

Federal ID#: By:

Witness: Title:

(Owner, partner, corp. Pres. Or Vice President) Address:

(Proprietorship or Partnership)

Attest: (corporation) Email Address:

(Corporate Seal)

By: License #:

Title:

(Corporation, Secretary./Ass't Secretary.)

ACCEPTED by the STATE OF NORTH CAROLINA through the

State of North Carolina Standard Form of Informal Contract and General Conditions 3

Total amount of accepted by the owner, included base bid and bid alternates:________________________

BY: TITLE:

Date:

State of North Carolina Standard Form of Informal Contract and General Conditions 4

G E N E R A L C O N D I T I O N S

1. GENERAL

It is understood and agreed that by submitting a bid that the Contrac tor has examined these contract documents, drawings and specif ications and has visited the site of the Work, and has satisf ied himself relative to the Work to be performed.

2. DEFINITIONS

Owner: "Owner" shall mean, The State of North Carolina through (Cleveland Community College)

Contractor: "Contractor" shall mean the entity that will provide the services for the Owner.

Designer: The designer(s) are those referred to within this contract, or their authorized representatives. The

Designer(s), as referred to herein, shall mean architect and/or engineer responsible for preparing the project plans and specif ications. They will be referred to hereinaf ter as if each were of the singular number, masculine gender.

Contract Documents: “Contract Documents” shall consist of the Notice to Bidders; General Conditions of the Contract; special conditions if applicable; Supplementary General Conditions; the drawing and specif ications, including all bulletins, addenda or other modif ications of the drawings and specif ications incorporated into the documents prior to their execution; the bid; the contract; the performance bond if applicable; and insurance certif icates. All of these items together form the contract.

INTENT AND EXECUTION OF DOCUMENTS

The drawings and specif ications are complementary, one to the other. That which is shown on the drawings or called for in the specif ications shall be as binding as if it were both called for and shown. The intent of the drawings and specif ications is to establish the scope of all labor, materials, transportation, equipment, and any and all other things necessary to provide a complete job. In case of discrepancy or disagreement in the Contract Documents, the order of precedence shall be: Form of Contract, specif ications, large-scale detail drawings, small-scale drawings.

In such cases where the nature of the work requires clarif ication by the Designer/ Owner, the Designer/ Owner shall furnish such clarif ication. Clarif ications and drawings shall be consistent with the intent of the Contract Documents, and shall become a part thereof .

4. AS-BUILT MARKED-UP CONSTRUCTION DOCUMENTS

Contractor shall provide one complete set of legible “as -built” marked-up construction drawings and specif ications recording any and all changes made to the original design during the course of construction. In the event no changes occurred, submit construction drawings and specif ications set with notation “No Changes.” The Designer/Owner must receive “As-built” marked-up construction drawings and specif ications before the f inal pay request can be processed.

5. SUBMITTAL DATA

The Contractor awarded the contract shall submit all specif ied submittals to the Owner/ Designer. A minimum number of copies as specif ied by the owner, of all required submittal data pertaining to construction, performance and general dimensional criteria of the components listed in the technical specif ications shall be submitted. No material or equipment shall be ordered or installed prior to written approval of the submittals by the

Designer/Owner. Failure to provide submittal data for review on equipment listed in the technical specif ications will result in removal of equipment by the Contractor at his expense if the equipment is not in compliance with the specif ications.

6. SUBSTITUTIONS

State of North Carolina Standard Form of Informal Contract and General Conditions 5

In accordance with the provisions of G.S. 133-3, material, product, or equipment substitutions proposed by the bidders to those specif ied herein can only be considered during the bidding phase until f ive (5) days prior to the receipt of bids or by the date specif ied in the pre bid conference, when submitted to the Designer with suf f icient data to conf irm material, product, or equipment equality. Proposed substitutions submitted af ter this time will be considered only as potential change order.

Submittals for proposed substitutions shall include the following information:

a. Name, address, and telephone number of manufacturer and supplier as appropriate.

b. Trade name, model or catalog designation.

c. Product data including performance and test data, reference standards, and technical descriptions of material, product, or equipment. Include color samples and samples of available f inishes as appropriate.

d. Detailed comparison with specif ied products including performance capabilities , warranties, and test results.

e. Other pertinent data including data requested by the Designer to conf irm product equality.

If a proposed material, product, or equipment substitution is deemed equal by the Designer to those specif ied, all bidders of record will be notif ied by Addendum.

7. WORKING DRAWINGS AND SPECIFICATIONS AT THE JOB SITE

The contractor shall maintain, in readable condition at his job site one complete set of working drawings and specif ications for his work including all shop drawings. Such drawings and specif ications shall be available for use by the owner, designer or his authorized representative.

The contractor shall maintain at the job site, a day-to-day record of work-in-place that is at variance with the contract documents. Such variations shall be fully noted on project drawings by the contractor and submitted to the designer upon project completion and no later than 30 days af ter acceptance of the project.

8. MATERIALS, EQUIPMENT, EMPLOYEES

a. The contractor shall, unless otherwise specif ied, supply and pay for all labor, transportation, materials, tools, apparatus, lights, power, fuel, heat, sanitary facilities, water, scaf folding and incidentals necessary for the completion of his work, and shall install, maintain and remove all equipment of the construction, other utensils or things, and be responsible for the safe, proper and lawful construction, maintenance and use of same, and shall construct in the best and most workmanlike manner, a complete job and everything incidental thereto, as shown on the plans, stated in the specif ications, or reasonably implied therefrom, all in accordance with the contract documents.

b. All materials shall be new and of quality specif ied, except where reclaimed material is authorized herein and approved for use. Workmanship shall at all times be of a grade accepted as the best practice of the particular trade involved, and as stipulated in written standards of recognized organizations or institutes of the respective trades except as exceeded or qualif ied by the specif ications.

c. Upon notice, the contractor shall furnish evidence as to quality of materials.

d. Products are generally specif ied by ASTM or other reference standard and/or by manufacturer's name and model number or trade name. When specif ied only by reference standard, the Contractor may select any product meeting this standard, by any manufacturer. When several products or manufacturers are specif ied as being equally acceptable, the Contractor has the option of using any product and manufacturer combination listed. However, the contractor shall be aware that the cited examples are used only to denote the quality standard of product desired and that they do not restrict bidders to a specif ic brand, make, manufacturer or specif ic name; that they are used only to set forth and convey to bidders the general style, type, character and quality of product desired; and that equivalent products will be acceptable. Request for substitution of materials, items, or equipment shall

State of North Carolina Standard Form of Informal Contract and General Conditions 6 be submitted to the designer for approval or disapproval; the designer prior to the opening of bids shall make such approval or disapproval. Alternate materials may be requested af ter the award if it can clearly be demonstrated that it is an added benef it to the owner and the designer and owner approves.

e. The designer is the judge of equality for proposed substitution of products, materials or equipment.

f. If at any time during the construction and completion of the work covered by these contract documents, the language, conduct, or attire of any workman of the various craf ts be adjudged a nuisance to the owner or designer, or if any workman be considered detrimental to the work, the contractor shall order such parties removed immediately f rom grounds.

g. The Contractor shall cooperate with the designer and the owner in coordinating construction activities.

h. The Contractor shall maintain qualif ied personnel and ef fective supervision at the site at all times during the project, and exercise the appropriate quality control program to ensure compliance with the project drawings and specif ications. The designer is responsible for determining compliance with the drawings and specif ications.

9. CODES, PERMITS AND INSPECTIONS

The Contractor shall obtain the required permits, if required, give all notices, and comply with all laws, ordinances, codes, rules and regulations bearing on the conduct of the work under this contract. If the Contractor observes that the drawings and specif ications are at variance therewith, he shall promptly notify the Designer in writing. If the

Contractor performs any work knowing it to be contrary to such laws, ordinances, codes, rules and regulations, and without such notice to the Owner, he shall bear all cost arising there f rom.

All work under this contract shall conform to the current North Carolina Building Code and other state and national codes as are applicable.

Projects constructed by the State of North Carolina or by any agency or institution of the State are not subject to county or municipal building codes and may* not be subject to inspection by county or municipal authorities. Where appropriate, the Contractor shall, cooperate with the county or municipal authorities by obtaining building permits.

The contractor at no cost may obtain permits to the owner.

All f ire alarm work shall be in accordance with the latest State Construction Off ice (SCO) Guidelines for Fire Alarm Installation (NFPA72). Where the contract documents are in conf lict with the SCO guidelines, the SCO guidelines shall govern. The Contractor shall be responsible for all the costs for the correction of the work where he installs it in conf lict with the latest edition of the SCO Guidelines for Fire Alarm Installation..

10. PROTECTION OF WORK, PROPERTY, THE PUBLIC AND SAFETY

a. The contractors shall be jointly responsible for the entire site and the building or construction of the same and provide all the necessary protections, as required by the owner or designer, and by laws or ordinances governing such conditions. They shall be responsible for any damage to the owner's property or of that of others on the job, by them, their personnel, or their subcontractors, and shall make good such damages. They shall be responsible for and pay for any damages caused to the owner. All contractors shall have access to the project at all times , except as indicated in the

Supplemental General Conditions.

b. The contractor shall provide cover and protect all portions of the structure when the work is not in progress, provide and set all temporary roofs, covers for doorways, sash and windows, and all other materials necessary to protect all the work on the building, whether set by him, or any of the

*Inspection and certif ication of compliance by local authorities is necessary if an architect or engineer was not employed on the project, or if the plans and specif ications were not approved and the construction inspected by the State Construction Off ice.

State of North Carolina Standard Form of Informal Contract and General Conditions 7 subcontractors. Any work damaged through the lack of proper protection or f rom any other cause, shall be repaired or replaced without extra cost to the owner.

c. No f ires of any kind will be allowed inside or around the operations during the course of construction without special permission f rom the designer and owner.

d. The contractor shall protect all trees and shrubs designated to remain in the vicinity of the operations by building substantial boxes around it. He shall barricade all walks, roads, etc., as directed by the designer to keep the public away f rom the construction. All trenches, excavations or other hazards in the vicinity of the work shall be well barricaded and properly lighted at night.

e. The contractor shall provide all necessary safety measures for the protection of all persons on the job, including the requirements of the A.G.C. Accident Prevention Manual in Construction, as amended, and shall fully comply with all state laws or regulations and North Carolina State Building Code requirements to prevent accident or injury to persons on or about the location of the work. He shall clearly mark or post signs warning of hazards existing, and shall barricade excavations, elevator shaf ts, stairwells and similar hazards. He shall protect against damage or injury resulting f rom falling materials and he shall maintain all protective devices and signs throughout the progress of the work.

f . The contractor shall adhere to the rules, regulations and interpretations of the North Carolina Department of Labor relating to Occupational Safety and Health Standards for the Construction Industry (Title 29, Code of Federal Regulations, Part 1926, published in Volume 39, Number 122, Part

II, June 24, 1974, Federal Register), and revisions thereto as adopted by General Statutes of North Carolina 95-126 through 155.

i. In the event of emergency af fecting the safety of life, the protection of work, or the safety of adjoining properties, the contractor is hereby authorized to act at his own discretion, without further authorization f rom anyone, to prevent such threatened injury or damage. Any compensation claimed by the contractor on account of such action shall be determined as provided for under Article 13(b).

j. Any and all costs associated with correcting damage caused to adjacent properties of the construction site or staging area shall be borne by the contractor. These costs shall include but not be limited to f looding, mud, sand, stone, debris, and discharging of waste products.

11. SUBCONTRACTS AND SUBCONTRACTORS

The Contractor is and remains fully responsible for his own acts or omissions as well as those of any subcontractor or of any employee of either. The Contractor agrees that no contractual relationship exists between the subcontractor and the Owner in regard to the contract, and that the subcontractor acts on this work as an agent or employee of the Contractor.

12. CONTRACTOR-SUBCONTRACTOR RELATIONSHIPS

The Contractor agrees that the terms of these Contract Documents shall apply equally to each Subcontractor as to the Contractor, and the Contractor agrees to take such action as may be necessary to bind each Subcontractor to these terms. The Contractor further agrees to conform to the Code of Ethical Conduct as adopted by the Associated General Contractors of America, Inc., with respect to Contractor-Subcontractor relationships. The

Owner reserves the right to limit the amount of portions of work to be subcontracted as hereinaf ter specif ied.

13. CHANGES IN THE WORK AND CLAIMS FOR EXTRA COST

a. The owner may have changes made in the work covered by the contract. These changes will not invalidate and will not relieve or release the contractor f rom any guarantee given by him pertinent to the contract provisions. These changes will not af fect the validity of the guarantee bond and will not relieve the surety or sureties of said bond. All extra work shall be executed under conditions of the original contract.

b. Except in an emergency endangering life or property, no change shall be made by the contractor except upon receipt of approved change order f rom the designer, countersigned by the owner authorizing such change. No claim for adjustments of the contract price shall be valid unless this

State of North Carolina Standard Form of Informal Contract and General Conditions 8 procedure is followed. Should a claim for extra compensation by the contractor be denied by the designer or the owner, the contractor may pursue his claim in accordance with G.S. 143-135.3.

In the event of emergency endangering life or property, the contractor may be directed to proceed on a time and material basis whereupon the contractor shall proceed and keep accurately on such form as specif ied by the designer or owner, a correct account of costs together with all proper invoices, payrolls and supporting data. Upon completion of the work the change order will be prepared as outlined under either Method "c(1)" or Method "c(2)" or both.

c. In determining the values of changes, either additive or deductive, contractors are restricted to the use of the following methods:

1. Where the extra work involved is covered by unit prices quoted in the proposal, or subsequently agreed to by the Contractor, Designer, Owner and State Construction Off ice the value of the change shall be computed by application of unit prices based on quantities, estimated or actual as agreed of the items involved, except is such cases where a quantity exceeds the estimated quantity allowance in the contract by one hundred percent (100%) or more. In such cases, either party may elect to proceed under subparagraph c (2) herein. If neither party elects to proceed under c (2), then unit prices shall apply.

2. The contracting parties shall negotiate and agree upon the equitable value of the change prior to issuance of the change order, and the change order shall stipulate the corresponding lump sum adjustment to the contract price.

d. Under Paragraph “b” and Methods "c(2)" above, the allowances for overhead and prof it combined shall be as follows: all contractors (the single contracting entity (prime), his subcontractors(1 st tier subs), or their sub-subcontractors (2nd tier subs, 3rd tier subs, etc.) shall be allowed a maximum of 10% on work they each self -perform; the prime contractor shall be allowed a maximum of 5% on contracted work of his 1st tier sub; 1st tier, 2nd tier, 3rd tier, etc. contractors shall be allowed a maximum of 2.5% on the contracted work of their subs. ; Under Method "c(1)", no additional allowances shall be made for overhead and prof it. In the case of deductible change orders, under

Method "c(2)" and Paragraph (b) above, the contractor shall include no less than f ive percent (5%) prof it, but no allowances for overhead.

e. The term "net cost" as used herein shall mean the dif ference between all proper cost additions and deductions. The "cost" as used herein shall be limited to the following:

1. The actual costs of materials and supplies incorporated or consumed as part of the work;

2. The actual costs of labor expended on the project site; labor expended in coordination, change order negotiation, record document maintenance, shop drawing revision or other tasks necessary to the administration of the project are considered overhead whether they take place in an of f ice or on the project site.

3. The actual costs of labor burden, limited to the costs of social security (FICA) and

Medicare/Medicaid taxes; unemployment insurance costs; health/dental/vision insurance premiums; paid employee leave for holidays, vacation, sick leave, and/or petty leave, not to exceed a total of 30 days per year; retirement contributions; worker’s compensation insurance premiums; and the costs of general liability insurance when premiums are computed based on payroll amounts; the total of which shall not exceed thirty percent (30%) of the actual costs of labor;

4. The actual costs of rental for tools, excluding hand tools; equipment; machinery; and temporary facilities required for the work;

5. The actual costs of premiums for bonds, insurance, permit fees and sales or use taxes related to the work.

State of North Carolina Standard Form of Informal Contract and General Conditions 9

Overtime and extra pay for holidays and weekends may be a cost item only to the extent approved by the owner.

f . Should concealed conditions be encountered in the performance of the work below grade, or should concealed or unknown conditions in an existing structure be at variance with the conditions indicated by the contract documents, the contract sum and time for completion may be equitably adjusted by change order upon claim by either party made within thirty (30) days af ter the condition has been identif ied. The cost of such change shall be arrived at by one of the foregoing methods.

All change orders shall be supported by a unit cost breakdown showing method of arriving at net cost as def ined above.

g. Change orders shall be submitted by the contractor in writing to the owner/designer for review and approval. The contractor will provide such proposal and supporting data in suitable format. The designer shall verify correctness. Delay in the processing of the change order due to lack of proper submittal by the contractor of all required supporting data shall not constitute grounds for a time extension or basis of a claim. Within fourteen (14) days af ter receipt of the contractor’s accepted proposal including all supporting documentation required by the designer, the designer shall prepare the change order and forward to the contractor for his signature or otherwise respond, in writing, to the contractor’s proposal. Within seven (7) days af ter receipt of the change order executed by the contractor, the designer shall, certify the change order by his signature, and forward the change order and all supporting data to the owner for the owner's signature. The owner shall execute the change order, within seven (7) days of receipt.

At the time of signing a change order, the contractor shall be required to certify as follows:

"I certify that my bonding company will be notif ied forthwith that my contract has been changed by the amount of this change order, and that a copy of the approved change order will be mailed upon receipt by me to my surety."

h. A change order, when issued, shall be full compensation, or credit, for the work included, omitted or substituted. It shall show on its face the adjustment in time for completion of the project as a result of the change in the work.

i. If , during the progress of the work, the owner requests a change order and the contractor's terms are unacceptable, the owner, may require the contractor to perform such work on a time and material basis whereupon the contractor shall proceed and keep accurately on such form as specif ied by the Designer or owner, a correct account of cost together with all proper invoices, payrolls and supporting data. Upon completion of the work a change order will be prepared with allowances for overhead and prof it per paragraph d. above and “net cost” and “cost” per paragraph

e. above. Without prejudice, nothing in this paragraph shall preclude the owner f rom performing or to have performed that portion of the work requested in the change order.

14. ANNULMENT OF CONTRACT

If the contractor fails to begin the work under the contract within the time specif ied, or the progress of the work is not maintained on schedule, or the work is not completed within the time specif ied, or fails to perform the work with suf f icient workmen and equipment or with suf f icient materials to ensure the prompt completion of said work, or shall perform the work unsuitably or shall discontinue the prosecution of the work, or if the contractor shall become insolvent or be declared bankrupt or commit any act of bankruptcy or insolvency, or allow any f inal judgment to stand against him unsatisf ied for a period of forty-eight (48) hours, or shall make an assignment for the benef it of creditors, or for any other cause whatsoever shall not carry on the work in an acceptable manner, the owner may give notice in writing, sent by certif ied mail, return receipt requested, to the contractor and his surety (if applicable) of such delay, neglect or default, specifying the same, and if the contractor within a period of seven (7) days af ter such notice shall not proceed in accordance therewith, then the owner shall, declare this contract in default, and, thereupon, the surety shall promptly take over the work and complete the performance of this contract in the manner and within the time f rame specif ied. In the event the contractor, or the surety (if applicable) shall fail to take over the work to be done under this contract within seven (7) days af ter being so notif ied and notify the owner in writing, sent by certif ied mail, return receipt requested, that he is taking the same over and stating that he will diligently pursue and complete the same, the owner shall have full power and authority, without violating the contract, to take the prosecution of the work out of the hands of said contractor, to appropriate or use any or all

State of North Carolina Standard Form of Informal Contract and General Conditions 10 contract materials and equipment on the grounds as may be suitable and acceptable and may enter into an agreement, either by public letting or negotiation, for the completion of said contract according to the terms and provisions thereof or use such other methods as in his opinion shall be required for the completion of said contract in an acceptable manner. All costs and charges incurred by the owner, together with the costs of completing the work under contract, shall be deducted f rom any monies due or which may become due said contractor and surety (if applicable). In case the expense so incurred by the owner shall be less than the sum which would have been payable under the contract, if it had been completed by said contractor, then the said contractor and surety (if applicable) shall be entitled to receive the dif ference, but in case such expense shall exceed the sum which would have been payable under the contract, then the contractor and the surety (if applicable) shall be liable and shall pay to the owner the amount of said excess.

15. TERMINATION FOR CONVENIENCE

a. Owner may at any time and for any reason terminate Contractor’s services and work at Owner's convenience, af ter notif ication to the contractor in writing via certif ied mail. Upon receipt of such notice, Contractor shall, unless the notice directs otherwise, immediately discontinue the work and placing of orders for materials, facilities and supplies in connection with the performance of this Agreement.

b. Upon such termination, Contractor shall be entitled to payment only as follows: (1) the actual cost of the work completed in conformity with this Agreement; plus, (2) such other costs actually incurred by Contractor as approved by Owner; (3) plus ten percent (10%) of the cost of the balance of the work to be completed for overhead and prof it. There shall be deducted f rom such sums as provided in this subparagraph the amount of any payments made to Contractor prior to the date of the termination of this Agreement. Contractor shall not be entitled to any claim or claim of lien against Owner for any additional compensation or damages in the event of such termination and payment.

16. OWNER'S RIGHT TO DO WORK

If , during the progress of the work or during the period of guarantee, the contractor fails to prosecute the work properly or to perform any provision of the contract, the owner, af ter seven (7) days' written notice sent by certif ied mail, return receipt requested, to the contractor f rom the designer, may perform or have performed that portion of the work. The cost of the work may be deducted f rom any amounts due or to become due to the contractor, such action and cost of same having been f irst approved by the designer. Should the cost of such action of the owner exceed the amount due or to become due the contractor, then the contractor or his surety, or both, shall be liable for and shall pay to the owner the amount of said excess.

17. REQUESTS FOR PAYMENT

Contractor shall refer to the Supplemental General Conditions for specif ic directions on payment schedule, procedures and the name and address where to send applications for payments for this project. It is imperative that invoices be sent only to the above address in order to assure proper and timely delivery and handling.

The Designer/Owner will process all Contractor pay requests as the project progresses. The Contractor shall receive payment within thirty (30) consecutive days af ter Designer/Owner’s approval of each pay request. Payment will only be made for work performed as determined by the Designer/Owner.

Retainage:

a. Retainage withheld will not exceed 5% at any time.

b. The same terms apply to general contractor and subcontractors alike.

c. Following 50% completion of the project no further retainage will be withheld if the contractor/subcontractor has performed their work satisfactorily.

d. Exceptions:

1. Owner/Contractor can reinstate retainage if the contractor/subcontractor does not continue to perform satisfactorily.

State of North Carolina Standard Form of Informal Contract and General Conditions 11

2. Following 50% completion of the project, the owner is authorized to withhold additional retainage f rom a subsequent periodic payment if the amount of retainage withheld falls below 2.5%.

Final payment will be made within forty-f ive (45) consecutive days af ter acceptance of the work, receipt of marked -up “as-built” drawings and specif ications and the submission both of notarized Contractor's af f idavit and f inal pay request. All pay requests shall be submitted to the Designer/Owner for approval.

THE CONTRACTOR'S FINAL PAYMENT AFFIDAVIT SHALL STATE: "THIS IS TO CERTIFY THAT ALL COSTS OF MATERIALS, EQUIPMENT, LABOR, SUBCONTRACTED WORK, AND ALL ELSE ENTERING INTO THE

ACCOMPLISHMENT OF THIS CONTRACT, INCLUDING PAYROLLS, HAVE BEEN PAID IN FULL."

18. PAYMENTS WITHHELD

The designer with the approval of the Owner may withhold payment for the following reasons:

a. Faulty work not corrected.

b. The unpaid balance on the contract is insuf f icient to complete the work in the judgment of the designer.

c. To provide for suf f icient contract balance to cover liquidated damages that will be assessed.

d. The secretary of the Department of Administration may authorize the withholding of payment for the following reasons:

i.Claims f iled against the contractor or evidence that a claim will be f iled.

ii.Evidence that subcontractors have not been paid.

When grounds for withholding payments have been removed, payment will be released. Delay of payment due the contractor without cause will make owner liable for payment of interest to the contractor as provided in G.S.

143-134.1. As provided in G.S. 143-134.1(e), the owner shall not be liable for interest on payments withheld by the owner for unsatisfactory job progress, defective construction not remedied, disputed work, or third -party claims f iled against the owner or reasonable evidence that a third -party claim will be f iled.

19. MINIMUM INSURANCE REQUIREMENTS

The work under this contract shall not commence until the contractor has obtained all required insurance and verifying certif icates of insurance have been approved in writing by the owner. These certif icates shall document that coverages af forded under the policies will not be cancelled, reduced in amount or coverages eliminated until at least thirty (30) days af ter mailing written notice, by certif ied mail, return receipt requested, to the insured and the owner of such alteration or cancellation. If endorsements are needed to comply with the notif ication or other requirements of this article copies of the endorsements shall be submitted with the certif icates.

a. Worker’s Compensation and Employer's Liability

The contractor shall provide and maintain, until f inal acceptance, workmen's compensation insurance, as required by law, as well as employer's liability coverage with minimum limits of $100,000.

b. Public Liability and Property Damage

The contractor shall provide and maintain, until f inal acceptance, comprehensive general liability insurance, including coverage for premises operations, independent contractors, completed operations, products and contractual exposures, as shall protect such contractors f rom claims arising out of any bodily injury, including accidental death, as well as f rom claims for property

State of North Carolina Standard Form of Informal Contract and General Conditions 12 damages which may arise f rom operations under this contract, whether such operations be by the contractor or by any subcontractor, or by anyone directly or indirectly employed by either of them and the minimum limits of such insurance shall be as follows:

Bodily Injury: $500,000 per occurrence Property Damage: $100,000 per occurrence / $300,000 aggregate

In lieu of limits listed above, a $500,000 combined single limit shall satisfy both conditions.

Such coverage for completed operations must be maintained for at least two (2) years following f inal acceptance of the work performed under the contract.

c. Property Insurance (Builder’s Risk/Installation Floater)

The contractor shall purchase and maintain property insurance until f inal acceptance, upon the entire work at the site to the full insurable value thereof . This insurance shall include the interests of the owner, the contractor, the subcontractors and sub -subcontractors in the work and shall insure against the perils of f ire, wind, rain, f lood, extended coverage, and vandalism and malicious mischief . If the owner is damaged by failure of the contractor to purchase or maintain such insurance, then the contractor shall bear all reasonable costs properly attributable thereto; the contractor shall ef fect and maintain similar property insurance on portions of the work stored of f the site when request for payment per articles so includes such portions.

d. Deductible

Any deductible, if applicable to loss covered by insurance provided, is to be borne by the contractor.

e. Other Insurance

The contractor shall obtain such additional insurance as may be required by the owner or by the General Statutes of North Carolina including motor vehicle insurance, in amounts not less than the statutory limits.

f. Proof of Carriage

The contractor shall furnish the owner with satisfactory proof of carriage of the insurance required before written approval is granted by the owner.

20. ASSIGNMENT

No assignment of the Contractor's obligations or the Contractor's right to receive payment hereunder shall be permitted. However, upon written request approved by the Owner and solely as a convenience to the Contractor, the Owner may: (1) forward the Contractor's payment check directly to any person or entity designated by the Contractor, and (2) include any person or entity designated by Contractor as a joint payee on the Contractor's payment check. In no event shall such approval and action obligate the Owner to anyone other than the Contractor, and the Contractor shall remain responsible for fulf illment of all contract obligations.

21. CLEANING UP AND RESTORATION OF SITE

The Contractor shall keep the sites and surrounding area reasonably f ree f rom rubbish at all times and shall remove debris f rom the site f rom time to time or when directed to do so by the Owner. Before f inal inspection and acceptance of the project, the Contractor shall thoroughly clean the sites, and completely prepare the project and site for use by the Owner.

At the end of construction, the contractor shall oversee and implement the restoration of the construction site to its original state. Restoration includes but not limited to walks, drives, lawns, trees and shrubs, corridors, stairs and other elements shall be repaired, cleaned or otherwise restored to their original state.

22. GUARANTEE

State of North Carolina Standard Form of Informal Contract and General Conditions 13

The contractor shall unconditionally guarantee materials and workmanship against patent defects arising f rom faulty materials, faulty workmanship or negligence for a period of twelve (12) months following the f inal acceptance of the work and shall replace such defective materials or workmanship without cost to the owner.

Where items of equipment or material carry a manufacturer's warranty for any period in excess of twelve (12) months, then the manufacturer's warranty shall apply for that particular piece of equipment or material. The contractor shall replace such defective equipment or materials, without cost to the owner, within the manufacturer's warranty period.

Additionally, the owner may bring an action for latent defects caused by the negligence of the contractor, which is hidden or not readily apparent to the owner at the time of benef icial occupancy or f inal acceptance, whichever occurred f irst, in accordance with applicable law.

Guarantees for roof ing workmanship and materials shall be stipulated in the specif ications sections governing such roof , equipment, materials, or supplies.

23. STANDARDS

All manufactured items and/or fabricated assemblies subject to operation under pressure, operation by connection to an electric source, or operation involving a connection to a manufactured, natural, or LP gas source shall be constructed and approved in a manner acceptable to the appropriate State inspector which customarily requires the label or re-examination listing or identif ication marking of appropriate safety standard organization, such as the American Society of Mechanical Engineers for pressure vessels; the Underwriters Laboratories and/or National Electrical Manufacturers Association for electrically operated assemblies; or the American Gas Association for gas operated assemblies, where such approvals of listings have been established for the type of device of fered and furnished. Further, all items furnished shall meet all requirements of the Occupational Safety and Health Act (OSHA), and State and federal requirements relating to clean air and water pollution.

All equipment and products must be independent third party tested and labeled (UL, FM, or CTS) before f inal connections to Owner services or utilities.

24. TAXES

a. Federal excise taxes do not apply to materials entering into state work (Internal Revenue Code, Section 3442(3)).

b. Federal transportation taxes do not apply to materials entering into state work (Internal Revenue

Code, Section 3475(b) as amended).

c. North Carolina sales tax and use tax, as required by law, do apply to materials entering into state work and such costs shall be included in the bid proposal and contract sum.

d. Local option sales and use taxes, as required by law, do apply to materials entering into state work as applicable and such costs shall be included in the bid proposal and contract sum.

e. Accounting Procedures for Refund of County Sales & Use Tax

Amount of county sales and use tax paid per contractor's statements:

Contractors performing contracts for state agencies shall give the state agency for whose project the property was purchased a signed statement containing the information listed in G.S. 105- 164.14(e).

The Department of Revenue has agreed that in lieu of obtaining copies of sales receipts f rom contractors, an agency may obtain a certif ied statement as of April 1, 1991 f rom the contractor setting forth the date, the type of property and the cost of the property purchased f rom each vendor, the county in which the vendor made the sale and the amount of local sales and use taxes paid thereon. If the property was purchased out-of -state, the county in which the property was

State of North Carolina Standard Form of Informal Contract and General Conditions 14 delivered should be listed. The contractor should also be notif ied that the certif ied statement may be subject to audit.

In the event the contractors make several purchases f rom the same vendor, such certif ied statement must indicate the invoice numbers, the inclusive dates of the invoices, the total amount of the invoices, the counties, and the county sales and use taxes paid thereon.

Name of taxing county: The position of a sale is the retailer's place of business located within a taxing county where the vendor becomes contractually obligated to make the sale. Therefore, it is important that the county tax be reported for the county of sale rather than the county of use.

When property is purchased f rom out-of -state vendors and the county tax is charged, the county should be identif ied where delivery is made when reporting the county tax.

Such statement must also include the cost of any tangible personal property withdrawn f rom the contractor's warehouse stock and the amount of county sales or use tax paid thereon by the contractor.

Similar certif ied statements by his subcontractors must be obtained by the general contractor and furnished to the claimant.

Contractors are not to include any tax paid on supplies, tools and…