CDD_Abatement and Demolition_Contractor Discipline Policy_5.12.2025 (3).pdf

General Information

Effective Date: July 14, 2021 Revised Date: May 12, 2025

This policy describes the penalties to be imposed by the City of Detroit Construction & Demolition Department (“City”) should a contractor fail to perform any required component of the abatement and/or demolition process. The prime contractor is responsible for any and all infractions committed by a sub-contractor. The prime contractor is responsible for paying the associated fine only if the City of Detroit is held responsible for paying a stipulated fine to EGLE.

The City reserves the right to revise the terms and conditions of this policy at its discretion.

Below are contractual actions that the Detroit Construction & Demolition Department may impose:

Recommendation for Termination for Cause

This Contract shall remain in full force and effect until the end of its term unless otherwise terminated for cause or convenience according to the provisions of this Article.

The City reserves the right to terminate this Contract for cause. An event of default shall occur if there is a material breach of this Contract, and shall include the following:

1. The Contractor fails to begin work in accordance with the terms of this Contract; or

2. The Contractor, in the judgment of the City, is unnecessarily, unreasonably, or willfully delaying the performance and completion of the Work Product or Services; or

3. The Contractor ceases to perform under the Contract; or

4. The City is of the opinion that the Services cannot be completed within the time provided and that the delay is attributable to conditions within the Contractor's control; or

5. The Contractor, without just cause, reduces its work force on this Contract to a number that would be insufficient, in the judgment of the City, to complete the Services within a reasonable time, and the Contractor fails to sufficiently increase such work force when directed to do so by the City; or

6. The Contractor assigns, transfers, conveys or otherwise disposes of this Contract in whole or in part without prior approval of the City; or

7. Any City officer or employee acquires an interest in this Contract so as to create a conflict of interest; or

8. The Contractor violates any of the provisions of this Contract, or disregards applicable laws, ordinances, permits, licenses, instructions, or orders of the City; or the performance of the Contract, in the sole judgment of the City, is substandard, unprofessional, or faulty and not adequate to the demands of the task to be performed; or

9. The Contractor fails in any of the agreements set forth in this Contract; or

10. The Contractor ceases to conduct business in the normal course; or

11. The Contractor admits its inability to pay its debts as they become due.

Recommendation for Termination for Convenience

The City shall have the right to terminate the Contractor’s contract at any time at its convenience by giving the Contractor five (5) business days written Notice of Termination for Convenience. As of the effective date of the termination, the City will be obligated to pay the Contractor the following: (a) the fees or commissions for Services completed and accepted in accordance with Exhibit A (see Demolition Service Contract) in the amounts provided for in Exhibit B (see Demolition Service Contract) or Purchase Order; (b) the fees for Services performed but not completed prior to the date of termination in accordance with Exhibit A in the amounts set forth in the Contractor’s rate schedule as provided in Exhibit B or Purchase Order; and (c) the Contractor's costs and expenses incurred prior to the date of the termination for items that are identified in Exhibit B or Purchase Order. The amount due to the Contractor shall be reduced by payments already paid to the Contractor by the City. In no event shall the City pay the Contractor more than the maximum price if one is stated in this Contract.

Appealing a Disciplinary Action

Within seven (7) calendar days of transmittal, a contractor may appeal any disciplinary action articulated under this Policy.

Below is the appeal process:

1. Discipline citation(s) will be issued by Compliance Division

2. Contractor’s 1st Appeal is reviewed by the Deputy Demolition Director

3. Contractor’s Final Appeal is with the Demolition Director.

*A legal representative may accompany the contractor at the Final Appeals board hearing. However, the Director is not obligated to answer questions or confer with the attorney.

At any time during the appeals period, the contractor can accept responsibility for the action resulting in a citation and/or fine. The contractor should notify the Demolition Compliance Analyst and the Assistant Director-Contractor Compliance in writing that it will or will not appeal its suspension. The suspension period will begin on the date of the suspension letter from the Compliance team.

The contractor and/or their representative are expected to attend the Final Appeals Board meeting at their assigned date and time. A Contractor may request a one-time deferment to the following month’s Appeals Board meeting. This option is only available for Letter of Discipline violations. Therefore, if a contractor is under consideration for an award with a pending LOD decision that may result in a suspension, the City reserves the right to determine if the contractor is eligible for an award. The suspension period will start on the original scheduled Appeals Board meeting date.

Appeals Board meetings will be scheduled as needed.

Awarding of Work during Suspension Period

A contractor who is currently suspended will be disqualified from being awarded any new City of Detroit work.

City of Detroit Construction & Demolition

Department Contractor Disciplinary Actions

Group Offense I

First Offense: Written Discipline Letter-No suspension

Second Offense: Written Discipline Letter-No suspension

Third Offense: Written Discipline Letter-No suspension

Fourth Offense: Written Discipline Letter-No suspension

Fifth Offense (Non-Data): 183 Day Suspension from being awarded new Contract Awards or Notice of Assignment (within 365 calendar days of first offense)

Fifth Offense (Data): 90 Day Suspension from being awarded new Contract Awards or Notice of Assignment (within 90 calendar days of first offense)

Sixth Offense (Non-Data): 365 Day Suspension from being awarded new Contract Awards or Notice of Assignment (within 365 calendar days of first offense)

Sixth Offense (Data): 120 Day Suspension from being awarded new Contract Awards or Notice of Assignment (within 365 calendar days of first offense)

Over Six offenses (Non-Data): If appealed, 365 Day Suspension starts from date of final appeals decision. If not appealed, 365 Day suspension starts from date of notification from contractor or date after end of appeals period (within 365 calendar days of first offense)

Over Six offenses (Data): If appealed, 120 Day Suspension starts from date of final appeals decision. If not appealed, 120 Day suspension starts from date of notification from contractor or date after end of appeals period (within 365 calendar days of first offense)

*A warning letter may be issued prior to the issuance of a Letter of Discipline

Examples:

• Fail to hang demolition posters

• Improperly installed (i.e., falling or sagging) fencing

• Failed to report all required data on the designated reporting platform (i.e., knock down dates, PAV pass dates, abatement start dates, scheduling dates) by the prescribed deadlines.

• Failure to meet expected progress goals and requirements as outlined in the contract, scope of service, stop work order or RFP

• Failure to complete any work for any properties within the required timeframes established in the contract and/or scope of services

• Failure to obtain all required permits, inspections, or authorizations before demolition

• The return of properties that are under contract with the City of Detroit

• Failure to update EGLE-MIOSHA notifications

• Use of an adjacent or a surrounding property to execute any aspect of these Services unless otherwise permitted in writing by the Owner. This includes but is not limited to property access, staging/storing of equipment, vehicles, dumpsters, or stockpiling of any materials.

• Failure to exercise all necessary and appropriate care to protect all people from harm or injury and protect infrastructure and property (both real and personal) from damage. This includes but is not limited to any structures, vehicles, improvements (i.e. fencing), appurtenances, and landscaping on surrounding properties.

• Failure to verify the assigned site(s) and identify the parcel boundaries.

• Failure to execute Abatement and/or Demolition services in a manner that avoids the creation of any hazard, undue disturbance, or nuisance to the community

• Failure to comply with applicable laws, regulations, rules, industry standards or Abatement and/or Demolition Scope of Services requirements which are not covered elsewhere in this policy.

Group Offense II

First Offense: 30 Day Suspension from being awarded new Contract Awards or Notice of Assignment

Second Offense: 60 Day Suspension from being awarded new Contract Awards or Notice of Assignment (within 365 calendar days of first offense)

Third Offense: 183 Day Suspension from being awarded new Contract Awards or Notice of Assignment (within 365 calendar days of first offense)

Fourth Offense: Recommendation for Termination of Contract(s) (within 365 calendar days of first offense)

• Fail to use water during the demolition process (including load out)

• Failure to fence the demolition site

• Fail to cant the open hole

• Fail to use authorized backfill materials

• Fail to mobilize to an imminent danger (emergency) demolition within the time frame required by Scope of Service.

• Fail to demolish an imminent danger (emergency) demolition within the time frame required by Scope of Service.

• Fail to properly condition a fire hydrant per established standards and protocols

• Fail to properly dispose of demolition debris in accordance with the scope of service and/or policy

• Improperly staging any material and/or equipment on adjacent and/or surrounding properties to execute any aspects of services in violation of scope of service and/or policy.

• The Contractor may not ventilate any enclosure in the direction of any adjacent, occupied structure

• Fail to remove polyurethane after Post-Abatement Air Monitoring

• Performing any abatement work in an area of the assigned site(s) at risk of unplanned collapse as identified in the engineering survey(s).

• Fail to properly remove, transport, and dispose of all safely accessible hazardous/regulated materials on the assigned site(s)

• Failure to comply with applicable laws, regulations, rules, industry standards or Abatement and/or Demolition Scope of Services requirements which are not covered elsewhere in this policy.

Group Offense III

First Offense: 60 Day Suspension from being awarded new Contract Awards, or Notice of Assignment, and any fine(s) imposed by regulatory agency against the City of Detroit.

Second Offense: 183 Day Suspension from being awarded new Contract Awards, or Notice of Assignment, and any fine(s) imposed by regulatory agency against the City of Detroit (within 365 calendar days of first offense).

Third Offense: 365 Day Suspension from being awarded new Contract Awards, or Notice of Assignment, and any fine(s) imposed by regulatory agency against the City of Detroit (within 365 calendar days of first offense).

Fourth Offense: Recommendation for Termination of Contract(s) and any fine(s) imposed by regulatory agency against the City of Detroit (within 365 calendar days of first offense).

*Fines will only apply while the Consent Judgement between the City and EGLE is still in effect.

• Failure to thoroughly inspect the facility prior to demolition (EGLE Fine $3,500 per violation).

National Emission Standard for Asbestos (40 CFR 61.145(a)). City of Detroit Consent Judgement, Paragraph 5.1.

• Failure to notify EGLE no later than the time set forth in the regulations; include all required information on the notification; Update the notification as required (EGLE Fine $3,500 per violation). National Emission Standard for Asbestos (40 CFR 61.145 (b) (1) (2) (3) (4)). City of Detroit Consent Judgement, Paragraph 5.1.

• Failure to remove all RACM from the facility as required (EGLE Fine $3,500 per violation).

National Emission Standard for Asbestos (40 CFR 61.145 (c) (1) (4) (6) (8)). City of Detroit Consent Judgement, Paragraph 5.1.

• Failure to collect, process, package, and transport ACWM as required under the regulations (EGLE Fine $3,500 per violation). National Emission Standard for Asbestos (40 CFR 61.150 (a) (1)). City of Detroit Consent Judgement, Paragraph 5.1.

• Failure to deposit ACWM in accordance with the regulations (EGLE Fine $3,500 per violation).

National Emission Standard for Asbestos (40 CFR 61.150 (b) (1)). City of Detroit Consent Judgement, Paragraph 5.1.

• Failure to mark vehicles used to transport ACWM in accordance with the regulations (EGLE Fine $3,500 per violation). National Emission Standard for Asbestos (40 CFR 61.150 (c)). City of Detroit Consent Judgement, Paragraph 5.1.

• Failure to maintain and upload waste shipment records. (EGLE Fine $2,000 per violation per calendar day). City of Detroit Consent Judgement, Paragraph 5.12.

• Failure to wait three working days after the posting of the post-abatement inspection report to a public website to demolish a structure (EGLE Fine $2,000 per violation per calendar day). City of Detroit Consent Judgement, Paragraph 5.7.

• Failure to have one person who is part of the demolition personnel on each site which has the required training/accreditations (EGLE Fine $2,000 per violation). City of Detroit Consent Judgement, Paragraph 5.8.

Group Offense IV

Progressive Discipline

First Offense: Based on the outcome of an investigation, the contractor may receive a 365-Day

Suspension from being awarded new Contract Awards Contract Awards, or Notice of Assignment, and any fine(s) imposed by regulatory agency against the City of Detroit and Recommendation for Termination of Contract(s).

• False Representation and/or Fraud

• Demolition of wrong structure

• Demolition of structure without a notice to proceed

• Inappropriate conduct or behavior by any sub-contractor or contractor’s employees

• Criminal activity

• Bringing ill repute as defined by the City of Detroit