Brazoria County Municipal Utility District No. 48

Contract Documents and Specifications for Construction of

Peachtree, Section 5 Water, Sanitary Sewer, Storm Sewer Facilities and Reinforced Concrete Paving

Brazoria County, Texas

August 2026

TBPE Registration No. F-1046

10777 Westheimer, Suite 500 Houston, Texas 77042

281-558-8700

8/20/26

1/2 \\bgeinc\data2\00015405-00\LD-Single_Phase\03_Constr\01_Bid_Phase\02_Utilities\02_Bid_Docs\01_Front_Ends\Documents.docx

Contract Documents and Specifications for Construction of

Peachtree, Section 5 Water, Sanitary Sewer, Storm Sewer Facilities and Reinforced Concrete Paving

Brazoria County, Texas

CONTENTS

I. INVITATION TO BIDDERS

II. INSTRUCTIONS TO BIDDERS

II.(A) RESPONSIBLE CONTRACTOR POLICY

II.(B) CERTIFICATION RESPONSIBLE CONTRACTOR STATUS

III. BID

IV. CONTRACT

V. PERFORMANCE BOND

VI. PAYMENT BOND

VII. MAINTENANCE BOND

VIII. GENERAL CONDITIONS OF THE AGREEMENT

VIII.(A) ATTACHMENT A - INSURANCE REQUIREMENTS

VIII.(B) ATTACHMENT B - MINIMUM WAGE RATE SCALE

VIII.(C) ADDENDUM TO THE GENERAL CONDITIONS OF THE CONTRACT

IX.(A) SPECIAL CONDITIONS OF THE CONTRACT PART A

IX.(B) SPECIAL CONDITIONS OF THE AGREEMENT PART B

X. TEXAS SALES AND USE TAX EXEMPTION CERTIFICATION

2/2 \\bgeinc\data2\00015405-00\LD-Single_Phase\03_Constr\01_Bid_Phase\02_Utilities\02_Bid_Docs\01_Front_Ends\Documents.docx

XI. CONTRACTOR CONSTRUCTION FORMS

• XI(A) - AFFIDAVIT FOR PARTIAL PAYMENT

• XI(B) - AFFIDAVIT FOR FINAL PAYMENT AND BILLS PAID

• XI(C) - CERTIFICATE OF SUBSTANTIAL COMPLETION

• XI(D) - ENGINEER'S CERTIFICATION OF SUBSTANTIAL COMPLETION

• XI(E) - CERTIFICATE OF COMPLETION

XII. STANDARD SPECIFICATIONS

XIII. SPECIAL SPECIFICATIONS

XIV. STORM WATER POLLUTION PREVENTION PLAN

BRAZORIA COUNTY MUD NO. 48 INVITATION TO BIDDERS

Electronic and Paper Bid I - 1/2 September 2025

Date: August 21, 2026

INVITATION TO BIDDERS

Sealed Bids addressed to Board of Directors, Brazoria County Municipal Utility District No.

48, will be received electronically through www.civcastusa.com OR at the office of BGE, Inc., 10777 Westheimer, Suite 500; Houston, Texas, 77042 (Phone: 281-558-8700), until 2:00 PM Local Time, Wednesday, September 9, 2026, and then publicly opened and read at the office of BGE, Inc. for the furnishing of all material, equipment, labor and supervision necessary or incidental to “Construction of Peachtree, Section 5 Water, Sanitary Sewer, and Storm Sewer Facilities, and Reinforced Concrete Paving for Brazoria County MUD No. 48, Brazoria County, Texas.”

In addition to the opening of sealed Bids at the address above, you may view the public opening of sealed Bids via Microsoft Teams. To join via Microsoft Teams the Call-in number is (832) 680-2579 and the Conference ID is 111 998 365#.

Scope of Work of the Contract Documents includes the following:

1. Approx. 169 LF of 4-inch PVC, 223 LF of 6-inch PVC 5,000 LF of 8-inch PVC, and 650 LF of 12-inch PVC water line and all appurtenances

2. Approx. 6,000 LF of 8-inch PVC sanitary sewer line and all appurtenances

3. Approx. 2,500 LF of 24-inch, 658 LF of 30-inch, 803 LF of 36-inch, 1,571 LF of 42-inch, 120 LF of 54-inch, 23 LF of 60-inch storm sewer pipe and all appurtenances

4. Approx. 94 LF of 5'x2' RCB, 673 LF of 6'x4' RCB storm sewer and all appurtenances

5. Approx. 21,314 SY of 6-inch reinforced concrete pavement

Bids received after closing time will be returned unopened.

A non-mandatory pre-bid conference will be held on Wednesday, September 2, 2026, at 2:00 PM Local Time, remotely through Microsoft Teams. To join via Microsoft Teams the Call-in number is (832) 680-2579 and the Conference ID is 326 916 541#.

Each Bid must be accompanied by a Bid bond or a certified or cashier’s check, acceptable to the Owner, in an amount not less than two percent (2%) of the total amount Bid, as a guarantee that the successful bidder will enter into the Contract Documents and execute the Bonds on the forms provided and provide the required insurance certificates and Bonds within seven (7) days after the date Contract Documents are received by the successful bidder. If a certified or cashier’s check is provided, the successful bidder shall deliver, at the bid opening address, the original certified or cashier’s check within one (1) business day of receipt of the bid opening.

Copies of the bidding documents may be reviewed and obtained from www.civcastusa.com, search: 15405-00. Bidders must register on this website to view and/or download specifications, plans, soils report, and environmental reports for this Project. There is NO charge to view or download documents.

A bidder submitting electronic Bids must submit its Bid and Bid Securities in compliance with Owner’s Order Adopting Section 49.2731 Electronic Bidding Rules and all electronic Bids and Bid Securities must be submitted through www.civcastusa.com. Bidder must register on this http://www.civcastusa.com/ http://www.civcastusa.com/

BRAZORIA COUNTY MUD NO. 48 INVITATION TO BIDDERS

Electronic and Paper Bid I - 2/2 September 2025 website to submit a Bid and Bid Security and there is no charge to submit Bids and Bid Securities on this website.

By submitting a Bid, bidder acknowledges and agrees that the Contract Documents may be accepted, executed or agreed to through the use of an Electronic Signature, as defined by and in accordance with Owner’s Electronic Signature Rules for Construction Contracts.

The Owner reserves the right to reject any or all Bids and to waive all defects and irregularities in bidding or bidding process except the time for submitting a Bid. The successful bidder, if any, will be the responsible bidder, which in the Board’s judgment will be most advantageous to the District and result in the best and most economical completion of the Project.

The requirements of Subchapter J, Chapter 552, Government Code, may apply to this Bid and the bidder agrees that the Contract Documents can be terminated if the bidder knowingly or intentionally fails to comply with a requirement of that subchapter.

BRAZORIA COUNTY MUD NO. 48

BRAZORIA COUNTY MUD NO. 48 INSTRUCTIONS TO BIDDERS

ABHR Approved for BCMUD48 II - 1

INSTRUCTIONS TO BIDDERS

1. PREPARATION OF BIDS. Unless otherwise directed in the Invitation to Bidders, each Bid must be submitted on the bid forms provided or on photocopies of the forms, in conformity with the requirements of the Invitation to Bidders, these Instructions to Bidders (“Instructions”), and the instructions printed on the bid form. In addition, if submitting a paper Bid, the Bid must be submitted in duplicate.

All blanks on the bid form must be completed and no change shall be made to the bid form or any other of the Contract Documents. All amounts must be in figures, with amounts extended and totaled. If minimum unit prices have been established for certain items, the minimum unit prices will be shown on the bid form. See Paragraph 8 of these Instructions. If the bidder chooses not to bid on optional items (if any), “No Bid” must be entered in the bid space. Any Bid may be rejected if it contains any omission, erasure, alteration, addition, irregularity of any kind, or items not called for; if it does not submit prices for each of the items in the bid form; if it is not signed by the bidder; if it is unbalanced; or if it in any manner, fails to conform to the conditions of the Invitation to Bidders and these Instructions. An “unbalanced” Bid means a Bid containing unit prices that are significantly less than cost for some items and significantly more than cost for others. This may be evidenced by submission of unit price Bid items where the cost is significantly higher/lower than the cost of the same Bid items submitted by other Bidders on the same Project.

The bidder must sign its Bid. If the Bid is made by a partnership or corporation, the name and address of the partnership or corporation must be shown together with the names and addresses of the partners or officers. If the Bid is made by an individual, it must be executed by that person; if made by a partnership, it must be executed by one of the partners (and if by a limited partnership, then executed by the general partner); or if made by a corporation, it must be executed in the corporate name by the president or a vice-president (or other corporate officer accompanied by evidence of authority to sign) and the corporate seal must be affixed and attested by the secretary or assistant secretary of the corporation. The corporate address and state of incorporation shall be shown below the signature.

When applicable, evidence of authority to conduct business as an out-of-state corporation in the State of Texas must be provided in accordance with the paragraph entitled QUALIFICATION OF BIDDERS. State contractor license number, if any, must also be shown.

The Bid and the Bid Security must be sealed and must identify the contents (i.e., Bid or Bid Security), the bidder’s name, and the job name and number, and be addressed to the Owner as prescribed in the Invitation to Bidders.

2. CONTRACT DOCUMENTS. The Contract Documents are complementary and must be read together as a whole; what is called for by one is binding as if called for by all.

Bidders desiring further information or further interpretation of any part of the Contract Documents are hereby obligated to submit a written request online to the www.civcastusa.com system for such information to Engineer not less than seventy-two hours (72 hours) before the Bid opening. If appropriate, answers to these requests will be given, in writing, to all bidders as addenda to the Contract Documents, and when each

ABHR Approved for BCMUD48 II - 2 addendum is issued it becomes a part of the Contract Documents. No explanation or interpretation of the Contract Documents, other than written addenda, is binding.

Should a bidder find discrepancies or errors in or omissions from the Contract Documents or should the bidder be in doubt as to any meaning, the bidder is hereby obligated to notify Engineer in writing. It is the responsibility of each bidder to determine if it has received all addenda, complete files of which will be maintained at the Engineer’s office and the office designated to receive the Bids, if any.

Each bidder must inform itself fully of the construction and labor conditions under which the Work will be performed and will be presumed to have inspected the Site and to have read and to be thoroughly familiar with the Contract Documents. Failure to do so will not relieve the successful bidder of its obligation to furnish all materials and labor necessary to carry out the requirements of the Contract Documents and to complete the Work for the consideration in its Bid.

3. PRE-BID CONFERENCE. A non-mandatory pre-bid conference among Owner, Engineer, prospective bidders, and others will be held to discuss the scope of the Work and to answer questions concerning the Work. No addendum will be issued at this conference, but an addendum will be issued afterwards, if necessary, to answer questions. The non-mandatory pre-bid conference will be held at the place and time stated in the Invitation to Bidders or as modified by written addenda.

4. BID SECURITY. Each Bid must be accompanied by a bid bond or a certified or cashier’s check, acceptable to the Owner, in an amount not less than two percent (2%) of the total amount bid (the “Bid Security”), as a guarantee that the successful bidder will enter into the Contract and execute the required Bonds on the forms provided and provide the required insurance certificates and Bonds within seven (7) days after the date Contract Documents are received by the successful bidder. Bid Securities will be returned to all but the three (3) most qualified, responsible bidders within three (3) days after opening of Bids, and the latter’s Bid Securities will be returned after complete execution of the Contract Documents. If the successful bidder does not enter into the Contract after notice of award, then the bidder’s Bid Security will be forfeited and will be retained by Owner. If the award of the Contract to the successful bidder is canceled or not executed for any reason, the Owner may accept the next lowest bid and proceed with the next-lowest qualified bidder.

5. BONDS. The successful bidder must furnish a performance bond, a payment bond, and maintenance bond, each in the sum of 100 percent (100%) of the Contract Price.

The Bonds must be in the form prescribed by the Contract Documents except as required otherwise by Laws and Regulations. The Bonds must be from a surety company holding a permit from the State of Texas to act as surety. Unless otherwise specified, the cost of proving Bonds must be included in the bidder’s total Bid amount. The surety company must have a minimum Best Key Rating of “B+” or better. The surety company, the agency and agent issuing the Bonds must be authorized to issue Bonds in Texas in an amount equal to the total Contract Price and such authorization must be recorded in the files of the Texas Department of Insurance. The person executing the Bonds must be a licensed Texas local recording agent and such licensing must be recorded in the files of the Texas Department of Insurance. All Bonds signed by an agent must be accompanied by a certified copy of the agent’s authority to act. The Bonds must be executed by a duly appointed representative of the surety company licensed by the State of Texas as a

ABHR Approved for BCMUD48 II - 3

General Lines Agent and such licensing must be recorded in the files of the Texas Department of Insurance. If the surety company does not have such a rating due to the length of time it has existed, the surety company must be eligible to participate in the surety bond guarantee program of the Small Business Administration and must be an approved surety listed in the current U.S. Department of Treasury Circular 570, and must meet all of the rules and regulations of the Treasury Department with respect to performance and payment bonds for federal jobs, including specifically the rules related to underwriting limitation. For contracts over $100,000, the surety must also hold a certificate of authority from the United States Secretary of Treasury to qualify as a surety on obligations permitted or required under federal law, or have obtained reinsurance for any liability in excess of $1,000,000 from a reinsurer that is authorized and admitted as a reinsurer in the State of Texas and is the holder of a certificate of authority from the United States Secretary of Treasury to qualify as a surety or reinsurer on obligations permitted or required under federal law. If bidder’s proposed surety company, agency or agents do not meet the requirements herein, then Owner may refrain from considering the bidder for Contract award and Owner may require bidder to forfeit its Bid Security.

It is further agreed that the successful bidder will execute the Bonds required for the satisfactory performance of the Work, the fulfillment of any guarantees required, and the prompt payment to all persons supplying labor and materials in the prosecution of the Work, in accordance with the Contract Documents and on the forms provided for this purpose. It is agreed that this Contract is not in effect until the required Bonds are furnished and approved by Owner. Upon increase of the Contract Price authorized by Change Order, Contractor must immediately provide revised Bonds for such increased Contract Price. Contractor’s failure to provide compliant Bonds may be grounds for immediate termination regardless of whether the Contractor has started the Work on the Project.

If the surety on any Bond furnished by Contractor is declared bankrupt or becomes insolvent or its right to do business is terminated in any state where any part of the Project is located or it ceases to meet the requirements herein Contractor must promptly notify Owner; Developer, if there is a Special Conditions of the Contract Part B; and Engineer and must, within ten (10) calendar days after the event giving rise to such notification, provide another Bond and surety to fulfill the required obligations.

6. DELIVERY OF BIDS. It is each bidder’s responsibility to deliver its Bid and Bid Security as stated in the Invitation to Bidders before the closing time. The fact that a Bid and a Bid Security were dispatched will not be considered. The Bid and Bid Security must be timely delivered to be considered.

7. “OR EQUAL” SUBMISSIONS. Where materials or equipment are specified by a trade or brand name, it is not the intention of the Owner to discriminate against an equal product of another manufacturer, but to set a definite standard of quality or performance. In preparing its proposal, each bidder is expected to include in its base Bid the cost of the item so specified. However, in certain Technical Specification sections, manufacturers are listed followed by “or equal”. In certain other Technical Specification sections, manufacturers are listed with “or equal” not included. In those items where “or equal” is not included, it is hereby added and understood to be included, even though not specifically stated in each Technical Specification. If a bidder chooses to submit a suggested “or equal” product in lieu of a product by one of the named manufacturers, Owner will evaluate the item to determine if it is an “equal”. The bidder is responsible for providing all data required to evaluate an item submitted as a suggested “or equal.”

ABHR Approved for BCMUD48 II - 4

Owner’s decision on whether a suggested manufacturer is an “equal” is final. No claims for additional cost or time delay, etc. will be accepted if a suggested manufacturer is submitted by bidder as an “equal” and Owner decides the item is not “equal”.

Bidder must submit its list of suggested “or equal” items at time of Bid submission. No additional suggested “or equal” items will be considered after bid opening.

8. MINIMUM UNIT PRICE ITEMS. If the approximate quantity and a minimum unit price have been established for items in the bid form, the bidder may not bid a unit price less than the minimum value; however, it may bid an amount greater than the minimum unit price. If no entry is made in the spaces provided, the minimum unit prices shown apply.

9. EXTRA UNIT PRICE ITEMS. Extra Unit Price Items are included to facilitate payment for changes and alterations that may be required to complete the Work. The Work, as provided by the Contract Documents, is described in bid items other than Extra Unit Price Items. When additional Work covered by Extra Unit Price Items is performed, payment will be based on the quantity constructed and the unit prices entered in the Bid.

10. TIME FOR COMPLETION. Contractor will not be allowed time extensions (i) due to inclement weather except for Force Majeure events as defined under Section 1.01 of the General Conditions of the Contract; (ii) due to non-availability of equipment or material, when the principal units of Work and tasks on the critical path are not in progress or are not delayed by the event of delay, interference, disruption, or hindrance; (iii) when at least seven (7) hours of available working time remain out of the working day; (iv) while materials are drying and it is possible for the Contractor to enclose the area and use drying devices; (v) when an event of delay, interference, disruption, or hindrance occurs on a day other than a working day or other day when the Contractor had not originally planned to work; (vi) when an event of delay, interference, disruption, or hindrance occurs after the expiration of the Contract Time; (vii) to the extent the Contractor could have anticipated or alleviated the impact of the event of delay, interference, disruption, or hindrance through reasonable efforts; (viii) when events of concurrent delay overlap the claimed delay; and/or

(ix) when an extension of time is precluded by any provision of the Contract Documents.

11. QUALIFICATION OF BIDDERS. The apparent most qualified, responsible bidder must adhere to the California State Teachers’ Retirement System Responsible Contractor Policy attached hereto, and submit to Owner within five (5) calendar days of notification of award of the Contract, a fully completed Certification of Responsible Contractor Status provided herein. Owner also requires bidder to submit either (i) a fully completed contractor’s statement of qualification or (ii) a written statement that the most recently submitted contractor’s statement of qualification is accurate, which statement of qualification must be considered in the award of the Contract. Failure to accurately complete the Certification of Responsible Contractor Status and either a contractor’s statement of qualification or to timely submit the statement of qualification will, at Owner’s option, disqualify the bidder from consideration in the award of the Contract. The form of the Contractor’s statement of qualification is available from the Engineer. Owner may reject, at Owner’s sole discretion, a bidder’s statement of qualification if the bidder’s statement of qualification is not on the form provided. Evidence of out-of-state incorporation to conduct business in the state in which the Work is to be performed, along with state contractor license number, must also be provided and is a consideration in the award of the Contract.

ABHR Approved for BCMUD48 II - 5

12. MODIFICATION AND WITHDRAWAL OF BIDS. Bids may be modified or withdrawn by an appropriate document duly executed (in the manner that a Bid must be executed) and delivered in the same manner as Bids were submitted at any time prior to the opening of Bids. If, within twenty-four (24) hours after Bids are opened, any bidder files a duly signed, written notice with Owner and promptly thereafter demonstrates to the reasonable satisfaction of Owner that there was a material and substantial mistake in the preparation of its Bid despite the exercise of ordinary care, that bidder may withdraw its Bid and the Bid Security will be returned.

13. HOUSE BILL 1295. Provision of Texas Ethics Commission Form 1295 (“TEC Form 1295”) pursuant to Texas Government Code § 2252.908 (the “Interested Party Disclosure Act” or the “Act”): Unless bidder is exempt from such requirements pursuant to Texas Government Code Section 2252.908(c)(4), the Owner may not award the Contract to a bidder unless the bidder has provided to the Owner a completed and signed TEC Form 1295 which has been assigned a certificate number by the Texas Ethics Commission (the “TEC”). Pursuant to the rules prescribed by the TEC, the TEC Form 1295 must be completed online through the TEC’s website, assigned a certificate number, printed, signed, and provided to the Owner. For purposes of completing the TEC Form 1295, the entity’s name is Brazoria County Municipal Utility District No. 48; the contract ID number is 15405-00; and the description of goods and services is Peachtree, Section 5 Water, Sanitary Sewer, Storm Sewer Facilities, and Reinforced Concrete Paving Neither the Owner nor its consultants have the ability to verify all of Contractor’s information included in a TEC Form 1295, and neither have an obligation nor undertake responsibility for advising any bidder with respect to the proper completion of the TEC Form 1295. ALL BIDDERS MUST SUBMIT THEIR TEC FORM 1295 WITH THEIR BID.

14. AWARD OF CONTRACT. Owner reserves the right to reject any or all Bids, including without limitation the right to reject any or all nonconforming, non-responsive, unbalanced or conditional Bids and to reject the Bid of any bidder if Owner believes that it would not be in the best interest of the Project to make award to that bidder, whether because the Bid is not responsive or the bidder is unqualified or of doubtful financial ability or fails to meet any other pertinent standard or criteria of Owner. Owner also reserves the right to waive all informalities and defects in bidding, except time of submitting a Bid.

Discrepancies between the multiplication of units and unit prices in a Bid will be resolved in favor of the unit prices. Discrepancies between the indicated sum of any column of figures and the correct sum thereof will be resolved in favor of the correct sum if the correct sum is evident from the face of the Bid.

In evaluating Bids, Owner will consider, among other things, the qualifications of bidders, whether the Bids comply with the prescribed requirements, and such substitutions, alternates, unit prices and other data, as may be requested in the bid form or prior to the notice of award. Alternate bid items will not be considered unless requested in the bid form.

Owner may consider the qualifications and experience of subcontractors, suppliers, and other persons and organizations proposed for the Work. Owner also may consider the operating costs, maintenance requirements, performance data and guarantees of major items of materials and equipment proposed for incorporation in the Work.

Owner may conduct such investigations as Owner deems necessary to assist in the evaluation of any Bid and to establish the responsibility, qualifications and financial ability

ABHR Approved for BCMUD48 II - 6 of bidders, proposed subcontractors, suppliers and other persons and organizations to perform and furnish the Work in accordance with the Contract Documents, to Owner’s satisfaction.

BY SUBMITTING A BID, EACH BIDDER AUTHORIZES OWNER TO PERFORM ALL

INVESTIGATIONS INTO THE BIDDER’S BACKGROUND, CAPABILITIES, PRIOR

EXPERIENCE, AND OTHER FACTORS PERTAINING TO BIDDER’S PERFORMANCE

OF THE WORK, AS OWNER DEEMS NECESSARY IN ITS SOLE DISCRETION, AND

FOR THAT PURPOSE, SUBMISSION OF A BID ACTS AS BIDDER’S SPECIFIC

AUTHORIZATION TO PERSONS AND ENTITIES CONTACTED BY OWNER IN

CONNECTION WITH SUCH INVESTIGATIONS TO PROVIDE OWNER WITH THE

INFORMATION REQUESTED BY OWNER AND TO DISCUSS AND EXPRESS

OPINIONS CONCERNING BIDDER. FURTHER, BY SUBMISSION OF A BID, BIDDER

AGREES TO FULLY AND FOREVER WAIVE AND RELEASE ANY CLAIM (KNOWN OR

UNKNOWN) IT HAS OR MAY HAVE AGAINST THE OWNER, ENGINEER, DEVELOPER

AND THEIR RESPECTIVE ATTORNEYS, EMPLOYEES, CONSULTANTS,

REPRESENTATIVES, AND AGENTS (“THE EVALUATING PARTIES”) ARISING OUT

OF OR IN CONNECTION WITH THE: (1) ADMINISTRATION, EVALUATION, OR

RECOMMENDATION (OR LACK THEREOF) OF ANY BID; (2) WAIVER OF ANY

REQUIREMENTS UNDER THE BID DOCUMENTS OR THE CONTRACT DOCUMENTS;

AND (3) ACCEPTANCE OR REJECTION OF ANY BIDS AND AWARD OF THE

CONTRACT.

Owner reserves the right to award the Bid, at Owner’s discretion, based on the amount of the total base bid (without including “Extra Unit Price Items” or “alternate” bid items) or on the amount of the total amount bid (including “Extra Unit Price Items” or “alternate” bid items), or based on any other combination, means or method determined appropriate by Owner.

If the Contract is to be awarded, it will be awarded to the responsible bidder whose evaluation by Owner indicates that the award will be most advantageous to the Owner and result in the best and most economical completion of the Work.

If the Contract is to be awarded, Owner will give the successful bidder a notice of award within ninety (90) days after the day of the Bid opening. All bidders must honor their Contract Price on their bid form, if the Contract is awarded within the timeframe provided herein. A Notice to Proceed will be issued within a reasonable period after the Contract Documents are fully executed.

Within seven (7) calendar days of receipt from the Owner of the notice of award, the successful bidder must submit to the Engineer the payment and performance bonds and all information or other items necessary to complete the Contract Documents, including the required insurance, anticipated construction schedule, and Contractor’s safety program. See SAFETY under Section 5.20 of the General Conditions of the Contract.

The successful bidder must return the fully executed Contract Documents to Engineer within seven (7) calendar days of receipt, or Owner may at its sole discretion disqualify the Bid and accept another Bid and the bidder must, at Owner’s option, forfeit its Bid Security.

15. TAXES, LICENSES AND FEES. Certain taxes, licenses, fees, and other similar items are part of the cost of the Work, and it is bidder’s responsibility to familiarize itself with these costs and to observe and comply with the Laws and Regulations relating to same. The

ABHR Approved for BCMUD48 II - 7 prices, sums, rates, and other charges set forth in the bidder’s Bid must cover and include all such costs. Owner is exempt from Texas sales and use taxes pursuant to Texas Tax Code § 151.309 as a political subdivision of the State of Texas. Owner shall provide Contractor, if requested by Contractor in writing, with a completed Texas Sales and Use Tax Exemption Certification as evidence of the applicability of such exemption, as limited by applicable statute. In addition, Contractor, and all subcontractors to Contractor

(i) must not include any provision for Texas sales and use taxes with respect to such exempt items in any Bid or the Contract Price, and (ii) must pass on to the Owner cost savings due to the exempt status of such exempt items. Contractor’s contracts with all subcontractors to Contractor must include the foregoing provision regarding the exemption from Texas sales and use taxes. Contractor must pay taxes on items that are not exempt.

16. NUMBER OF SIGNED SETS OF DOCUMENTS. The Contract Documents will be prepared in at least four (4) original sets for signature, one (1) for delivery to the successful bidder. Owner will furnish the successful bidder six (6) sets of Plans and Technical Specifications free of charge, and additional sets may be obtained from Engineer at Engineer’s reproduction rates.

17. ELECTRONIC COUNTERPARTS; FORM OF BONDS TO BE PROVIDED TO OWNER.

The Contract Documents may be executed and delivered in any number of counterparts, each of which so executed and delivered will be deemed to be an original and all of which will constitute one and the same instrument. Electronic Signatures, as defined by and in accordance with the Owner’s Order Adopting Electronic Signature Rules for Construction Contracts, will be deemed original signatures for purposes of the Contract Documents and all matters related thereto, with such Electronic Signatures having the same legal effect as physical, wet-ink signatures. Owner; Engineer; Contractor; and Developer, if there is a Special Conditions of the Contract Part B, agree that the Contract Documents may be accepted, executed, or agreed to using an Electronic Signature. Any document accepted, executed, or agreed to in conformity with such Order is binding on Owner, Engineer, Contractor, and Developer, if applicable, the same as if it were physically executed, and Owner, Engineer, Contractor, and Developer, if applicable, each hereby consent to the use of any third-party electronic signature capture service provider that may be chosen by Owner or Engineer. Notwithstanding the foregoing, all Bonds must be provided to Owner either as a physical, wet-ink original, or in the form of a certified and complete copy of such Bond, which may be provided to Owner in electronic form, such as a .pdf file.

18. INSURANCE. See section entitled “INSURANCE REQUIREMENTS” attached to and incorporated into the General Conditions of the Contract as Attachment A to the General Conditions of the Contract and Special Conditions of the Contract Part B, if attached..

19. SOILS REPORT. If a soils investigation has been made for this Project, the soils report and log of borings is available for bidder’s information only. The report is not a warranty of subsurface conditions, nor is it a part of the Contract Documents. Bidders are expected to examine the Site and such reports and then decide for themselves the soils or conditions that may be encountered.

Owner, Engineer, and Developer, if applicable, disclaim any responsibility for the accuracy, true location and extent of the surface and subsurface investigations that have been prepared by others. Owner, Engineer, and Developer, if applicable, further disclaim responsibility for interpretation of that data by bidder, e.g., projecting soil-bearing values, https://www.lawinsider.com/clause/counterparts-and-electronic-signatures

ABHR Approved for BCMUD48 II - 8 rock profiles, soil stability and the presence, level and extent of underground water or other underground facilities or utilities.

20. LABOR CLASSIFICATION AND MINIMUM WAGE SCALE.

(A) General: Chapter 2258 of the Texas Government Code provides that any political subdivision of the State of Texas shall determine the general prevailing wage rate received by the classes of workers employed on projects similar to this Project and shall specify in the call for bids and in the Contract Documents the minimum wage rates which must be paid for each type of worker. This statute further provides that the Contractor or subcontractors must pay, as penalty to Owner, Sixty Dollars ($60.00) for each worker employed for each calendar day or part of the day that the worker is paid less than the wage rates stipulated in the Contract. Owner is authorized to withhold from the Contractor the amount of this penalty from any payment due under the Contract Documents.

The statute likewise requires that the Contractor and subcontractors keep an accurate record of the names and occupations of all persons employed by them on the construction of the Project and to show the actual per diem wages paid to each worker. These records are open to the inspection of Owner.

(B) The minimum wage rates that apply to this Contract are specified in Attachment B to the General Conditions of the Contract. Contractor and subcontractors must review and ascertain such wage rates and pay at least such minimum rates.

21. ECONOMIC DISINCENTIVES. The Contractor and the Owner agree that time is of the essence of this Contract. The Contractor and the Owner agree that a breach of this Contract by failure to complete the Work in the specified time will cause harm to the Owner. Therefore, the Contractor and the Owner agree that for each and every calendar day the Work or any portion thereof shall remain uncompleted after the expiration of the time limit(s) set in the Contract, or as extended under the provisions of these General Conditions (including, without limitation, due to a delay caused by Contractor’s failure to comply with the Contract Documents or due to Owner’s termination of Contractor for default under the Contract Documents), Contractor shall be liable to Owner for economic disincentives under Section 49.271(e) of Texas Water Code, in the amount of One Thousand Dollars ($1,000.00) for each such calendar day. The Owner shall have the option to deduct and withhold said amount from any monies that the Owner owes the Contractor or its sureties or to recover such amount from the Contractor or the sureties on the Contractor’s bond.

California State Teachers' Retirement System

Responsible Contractor Policy February 6, 2015

I. INTRODUCTION

The California State Teachers’ Retirement System has a deep interest in the condition of workers employed by CalSTRS and its advisors. CalSTRS, through the Responsible Contractor Policy described below, supports and encourages fair wages and fair benefits for workers employed by its contractors and subcontractors, subject to fiduciary principles concerning duties of loyalty and prudence, both of which further require competitive returns on CalSTRS’ investments. CalSTRS endorses small business development, market competition, and control of operating costs. CalSTRS supports many of the ideals espoused by labor unions and encourages participation by labor unions and their signatory contractors in the development and management of CalSTRS’ investments.

CalSTRS believes that an adequately compensated and trained worker delivers a higher quality product and service.

II. DEFINITION OF A RESPONSIBLE CONTRACTOR

A responsible contractor, as used in this policy, is a contractor or subcontractor who pays workers a “fair wage” and a “fair benefit” as evidenced by payroll and employee records. Fair benefits are defined as including, but are not limited to, employer-paid family health care coverage, pension benefits, and apprenticeship programs. What constitutes a fair wage and fair benefit depends on the wages and benefits paid on comparable investment projects, based upon local market factors, that include the nature of the project (for example, residential or commercial; public or private), comparable job or trade classifications, and the scope and complexity of services provided.

III. INITIAL REQUIREMENTS OF THE RESPONSIBLE CONTRACTING POLICY

A. Duty of Loyalty: Notwithstanding any other considerations, assets shall be managed for the exclusive benefit of the participants and the beneficiaries of CalSTRS. CalSTRS’ as well as its advisors’, duty to the participants and their beneficiaries shall take precedence over any other duty.

B. Prudence: CalSTRS Board, staff and advisors are charged with the fiduciary duty to exercise the care, skill, prudence and diligence appropriate to the task.

C. Competitive Return: To comply with duties of loyalty and prudence, all investments and services must be made and managed in a manner that produces a competitive risk-adjusted return.

D. Competitive Bidding: Contractors and their subcontractors for construction, maintenance, and services shall be selected through a competitive bidding and selection process. The purpose of this provision is to encourage fair competition and to actively seek bids from all qualified sources within an area, particularly those identified as responsible contractors.

Advisors and their subcontractors shall create a bidding process that includes notification and invitations to bid, and is distributed to a broad spectrum of potential bidders, particularly those identified as responsible contractors. The review of the bids shall include consideration of loyalty, prudence, and competitive risk-adjusted returns (factors to be considered include experience, reputation for honesty, integrity, timeliness, dependability, fees, safety record, and the adherence to the Responsible Contracting Policy).

E. Local, state and national laws. All advisors, property managers, contractors, and their subcontractors shall observe all local, state, and national laws (including by way of illustration those pertaining to insurance, withholding taxes, minimum wage, labor relations, health, and occupational safety).

IV. SELECTION PREFERENCE OF A RESPONSIBLE CONTRACTOR

If the requirements in Section III are satisfied, CalSTRS expresses a strong preference that responsible contractors be hired.

V. TRANSITION, ENFORCEMENT, MONITORING, AND ADMINISTRATION

A. Applicable Investments and Phasing: This policy shall apply to all applicable real estate and infrastructure investments. The policy shall not apply to investments such as hybrid debt, opportunity funds, ventures with public companies, and other investments where CalSTRS does not have greater than 50 percent ownership and/or full control of the investment. However, in those instances where CalSTRS does not have greater than 50 percent ownership and/or full control of the investment, staff will make reasonable attempts to encourage partners to comply with the spirit and practice of responsible contracting.

B. Notification: CalSTRS shall provide all applicable current and prospective advisors with a copy of this policy, including investments where CalSTRS has greater than 50 percent ownership and/or full control of the investment.

C. Solicitation Documents: All requests for proposal and invitations to bid covered by this policy shall include the terms of this policy and a copy of the Certification of the Responsible Contractor Status form (Appendix A). Responses by bidders shall include information to assist the staff in evaluating a bid.

D. Contracts and Renewals: All contracts entered into after the effective date of this Policy and pertaining to applicable investments, including renewals of such contracts, shall require compliance with this policy.

E. Responsibilities: The responsibilities of CalSTRS’ staff, advisors, property managers, contractors and unions are defined as follows:

a. Staff: CalSTRS staff shall have the responsibility for the following:

i. Review the advisors’ annual certification statement regarding compliance with the policy.

ii. Develop and maintain contact lists for all CalSTRS’ properties and provide a copy to inquiring parties.

iii. Insert appropriate contract language where applicable.

iv. In those instances where CalSTRS does not have greater than 50 percent ownership and/or full control of an investment, make reasonable attempts to encourage partners to comply with the spirit and practice of Responsible Contracting.

b. Advisors/Joint Ventures and Similar Business Partners: Advisors/joint ventures and similar business partners will have responsibility for the following:

i. Communicate the policy to all property managers.

ii. Review a contract listing for each property prepared by each property manager.

iii. Maintain a simplified bid summary for each applicable contract. The summary should include identifying contract, successful bidder, and bidder’s status as responsible contractor.

iv. Maintain an annual report in their home office, describing their own efforts as well as those by property managers and their contractors.

v. Monitor and enforce the policy including investigation of potential violations.

vi. Annually, the signatory to the CalSTRS contract will file a certification statement that their firm complied with the Responsible Contractor Policy for the preceding year and upon request will provide written substantiation of such compliance. This provision will be subject to periodic audits.

vii. When selecting contractors, utilize industry best practices when reviewing their pre-qualifications; oversee efforts by contractors to assure industry best practices are utilized when selecting subcontractors.

c. Property Managers: Property managers will have responsibility for the following:

i. Communicate in bid documents the Responsible Contractor Policy to contractors seeking to secure construction or building service contracts.

ii. Communicate the policy to any interested party.

iii. Ensure there is a competitive bidding process that is inclusive of potentially eligible responsible contractors.

iv. Require bidders to provide to property manager a responsible contractor self-certification on a form approved by CalSTRS.

v. Prepare and send to advisors a contract listing for applicable service contracts for each property under management. The building trades and service trades and other potential bidders will have access to this list.

vi. Provide advisors with a simplified bid summary for each contract.

vii. Provide property level annual report information to advisor.

viii. Maintain documentation for successful bidders.

ix. Seek from trade unions/service unions input in the development of responsible contractor lists.

x. Maintain list of any interested responsible contractors. (Names, addresses and telephone numbers).

xi. When selecting contractors, utilize industry best practices when reviewing their pre-qualifications; oversee efforts by contractors to assure industry best practices are utilized when selecting subcontractors.

d. Contractors: Contractors will have the responsibility for the following:

i. Submit to property manager a responsible contractor self-certification on a form approved by CalSTRS.

ii. Communicate to subcontractors the Responsible Contractor Policy.

iii. Provide to property manager responsible contractor documentation.

iv. Utilize industry best practices when selecting subcontractors.

e. Unions: Trade unions/service unions shall be asked to perform the following tasks:

i. Deliver to the property manager or advisor lists of names and phone numbers of responsible contractors.

ii. Refer interested and qualified responsible contractors to the property manager.

iii. Continually monitor the local labor markets to update the lists.

iv. Provide technical input as appropriate.

F. Outreach: CalSTRS staff will develop and maintain a list of all CalSTRS greater than 50 percent owned and/or fully controlled properties. The list will include the property name, address, advisor and property manager, and phone number of the property manager and real estate advisors. The CalSTRS’ staff will provide this list to anyone who requests a copy. Actual contract expiration inquiries will be referred to the property level. Property managers shall provide solicitation documents to any potential contractor who has, in writing, expressed an interest in bidding for relevant contract.

G. Minimum Contract Size: The policy shall absolutely apply to all contracts of a minimum size of $100,000, individually or annually as applicable. Minimum contract size refers to the total project value of the work being contracted for and not to any desegregation by trade or task. For example, a $100,000 contract to paint two buildings in a single office complex would not be treated as two $50,000 contracts, each less than the minimum contract size. Desegregation designed to evade the requirements of the policy is not permitted.

H. Applicable Expenditures Categories: The policy shall apply to tenant improvements, capital expenditures, and operational service contracts (such as cleaning).

I. Fair Wage, Fair Benefits, and Training: The policy avoids a narrow definition of fair wage, fair benefits, and training that might not be practical in all markets.

Furthermore, the policy does not require a “prevailing wage”, as defined by government surveys. Instead, the policy looks to local practices with regard to type of trade and type of project. The policy recognizes that practices and labor market conditions vary across the country and that flexibility in its implementation is very important.

In determining fair wages and fair benefits with regard to a specific contract in a specific market, items that may be considered include local wage practices, state laws, prevailing wages, labor market conditions, and other items.

In place of a prevailing wage standard, the policy requires a broad outreach and competitive bidding program, as described in Section III.D, and V.F and J. This program is premised upon the availability of a list of responsible contractors in every market in which CalSTRS directly owns a property. While advisors and their property managers and contractors are responsible for gathering and analyzing information relevant to identifying and hiring a responsible contractor, compilation of this list does not depend solely on the advisors, property managers, or contractor. This policy instead invites the various local trades to suggest contractors, which in their view qualify as responsible contractors. Sources of information include local building and service trade councils, builders association, and governments.

J. Annual Reports: Advisors must file a Responsible Contractor Annual Report with

CalSTRS. Advisors will complete a reporting template provided by CalSTRS. They shall also provide certification of their ongoing efforts in areas such as competitive bidding, under the policy requirements, following each fiscal year. This annual review will ensure that advisors are adhering to the requirements as stated in the policy.

K. Competitive Bidding: Property managers and contractors should give notice for applicable bids in local trade publications, bulletin boards and union building trades councils. Property managers should seek input from building trades councils to develop lists of responsible contractors for inclusion in the bidding process.

Property managers may choose from the list of responsible contractors a reasonable number of contractors to be invited to bid. Given the time and expense required to solicit and evaluate bids, it is not essential that advisors, property managers, and contractors invite all potential bidders.

The property manager must ensure that there is a competitive bidding process, which is inclusive of potentially eligible responsible contractors. Inclusion is not necessarily assured by large numbers of bidders. Care must be taken that bidders include potentially eligible responsible contractors.

Although the policy does not require hiring union workers, the trade unions will be invited to (1) deliver to the property manager or advisor lists of names and phone numbers of responsible contractors including those responsible contractors who have expressed any interest in bidding, and (2) continually monitor the local markets to update the lists. Property managers shall maintain these lists supplied by the trade unions

L. Neutrality: CalSTRS recognizes the rights of employees to representation, and supports and strongly encourages a position of neutrality, in the event there is a legitimate attempt by a labor organization to organize workers employed in the construction, maintenance, operation, and services at a CalSTRS owned property.

Resolution of any inter-jurisdictional trade disputes will be the responsibility of the trades and the various state and national building trades councils. This policy does not call for any involvement by the advisors, property managers, or contractors in inter-jurisdictional trade disputes.

M. Enforcement: If staff becomes aware of non-compliance, CalSTRS will place a non- complying advisor or property manager on a probation watch list. If the advisor or property manager does not modify this pattern of conduct even after discussions with CalSTRS’ staff, CalSTRS will consider this pattern of conduct along with other information when it reviews the advisor or property manager contract for possible renewal. The key indicator is a pattern of conduct that is inconsistent with the provisions of the policy.