Constr Bid addendum 3.pdf

DTMB-0414 (Rev 10/22)

DEPARTMENT OF TECHNOLOGY, MANAGEMENT AND

BUDGET

State Facilities Administration Design and Construction Division

CONSTRUCTION BID ADDENDUM NO. 3

This form identifies an Addendum to Bidding Documents, and incorporates interpretations or clarifications, modifications, acceptance of proposed “or equal” materials, and other information into the Bidding Documents. Addenda will be numbered by the Professional and distributed through www.michigan.gov/SIGMAVSS as an attachment.

TO:

ALL BIDDERS

DATE ISSUED

2/9/2024

PROJECT NAME

Ralph A. MacMullan Conference Center- Roof Replacement- Lake Ontario, Lake Superior & Lake Michigan Lodges

FILE NUMBER

751/22434.TYC

PROFESSIONAL

Sidock Group, Inc.

PROJECT DIRECTOR

Todd Cordill, NCARB

BID OPENING DATE:

2/14/2024

ADDENDUM ITEMS: (attach additional sheets and drawings if required)

The bid schedule has been revised to include a provisional allowance.

The general conditions have been revised to address the state prevailing wages that are now effective under state statute and not just departmental conditions.

ACKNOWLEDGEMENT: This Addendum must be acknowledged by the Bidder in the space provided in the Bid Summary and Bid Form. Failing to acknowledge Addenda may be cause for the Bid to be rejected. Addenda will become part of the Contract Documents.

PROFESSIONAL: DATE: 2/9/2024

APPROVED BY:

DATE: 2/9/2024

http://www.michigan.gov/SIGMAVSS

Bidding and Contract Document (R 02/24) Project Name: File No. 751/22434.TYC

BID SCHEDULE

Base Bid Schedule - The Bidder will complete the Work and accept as full payment, for the Work items listed, the following Unit Prices and/or Item Bid Prices, as applicable:

Base Bid Item No.

Bid Quantity

Description Unit Price

Item Bid Price

ALLOWANCE AMOUNT

TOTAL (This amount should equal the Base Bid amount on the Bid Summary Form) $

Base Bid (Sum of Item Bid Prices for all Base Bid Items):

__________________________________________________________________ Dollars $__________________________ (use words) (in figures)

Schedule of Alternates - The Bidder will complete (or deduct from the Contract) the parts of the Work designated by the Alternates that follow and accept in full payment (or allow in full credit) for those parts of the Work the following Item Bid Prices:

$12,000

Bidding and Contract Document (R 02/24) Project Name: *** File No. 751/22434.TYC

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SECTION 00700 GENERAL CONDITIONS

1. Interpretations: Any requests for clarifications or interpretations of the Contract Documents must be in writing to the Professional, who will issue written clarifications or interpretations as appropriate. If the Contractor believes that such clarification or interpretation justifies an adjustment to the Contract Price/Time, the Contractor must promptly notify the Professional in writing before proceeding with the Work Involved.

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1.1 Standards: The Contract Documents describe the entire Work. The provisions of the Contract Documents must govern over any standard specifications, manual or code of any technical society, organization, or association but, if lower than the standards set by any Law applicable to the Work or the Project, the higher standards must govern. The Contractor’s responsibilities extend to cover Subcontractors and Suppliers if liable as a result of their actions or obligations.

1.2 Contract Time Computation: The time to complete the Work must be made in Calendar Days and must include both the first and last day. The first day is established by the Notice-to-Proceed.

1.3 Technical Specifications and Priority: The following applies whenever priority is called for in Contract Documents:

specifications must govern Drawings; figured dimensions must govern scaled dimensions; detail drawings must govern general drawings; Drawings must govern Submittals.

1.4 Indemnification: The Contractor is required to defend, indemnify and hold harmless the Owner and the Professional, their employees, agents, servants, and representatives from and against all claims, suits, demands, actions of whatever type and nature and all judgments, costs, losses and damages, whether direct, indirect or consequential including, but not limited to, charges of architects, engineers, attorneys and others and all court, hearing and any other dispute resolution costs arising from:

(a) any patent or copyright infringement by the Contractor.

(b) any damage to the premises or adjacent lands, areas, properties, facilities, rights-of-way, and easements, including loss of use to the business and property of others as a result of Contractor’s operations.

(c) any bodily injury, sickness, disease or death, or injury to or destruction of property, including loss of use due to or related to the Work and caused in whole or in part by the Contractor or Subcontractor or Supplier’s negligence, omissions, or failure to maintain the required insurance and coverage and,

(d) a failure by the Contractor to appropriately handle Hazardous Materials for the Work or the Contractor’s operations in compliance with the Owner requirements and/or applicable Laws and regulations.

The indemnification obligations are not affected by the limitation on the amount and types of damages, compensation or benefits payable by or for the Contractor or Subcontractor or Supplier under worker’s or workman’s compensation acts, disability benefit acts or other employee benefit acts.

1.5 Contract Documents Ownership: The State is the owner of the Contract Documents. The Contractor, Subcontractor or Supplier must not reuse any of the documents on any other Project without prior consent of the State and Professional. The Professional will furnish on behalf of the Owner at no cost to the Contractor, one (1) electronic copy of the Drawings and Project Manual. If the Contractor, or the Contractor’s Subcontractors or Suppliers request hard copy sets, reproduction of these documents will be the responsibility of the Contractor.

2. GENERAL PROVISIONS

2.1 Owner: The Project Director and/or Owner Field Representative will represent the Owner. Neither the Project Director nor the Owner Field Representative has the authority to interpret the requirements of the Contract Documents or to authorize any changes in the Work or any adjustment in Contract Price/Time. The State will provide the necessary easements for permanent structure and permanent changes in existing lands, areas, properties, and facilities. However, the Contractor must obtain, at no increase in Contract Price/Time, permits for any other lands, areas, properties, facilities, rights-of-way, and easements required by the Contractor for temporary facilities, storage, disposal of soil or waste material or any other purpose. The Contractor must submit copies of the permits and written agreements to the Owner. The Contractor must engage a registered land surveyor to establish the necessary reference points and/or base lines for construction and must be responsible for protecting them including benchmarks and Project elevations.

2.2 Professional: Acting as the Owner’s representative during the Contract Time period, the Professional will endeavor to guard the Owner from Defective work and to keep the Owner informed of the progress of the Work. Unless delegated by specific written notice from the Owner, the Professional and the Professional’s representatives do not have the authority to authorize any changes in the Work or any adjustment in Contract Price/Time. The On-site Inspections by the Owner Field Representative and/or the Professional do not relieve the Contractor from its obligation to provide the Work in accordance with the Contract Documents or represent acceptance of Defective Work.

2.3 Contractor: The Contractor must manage, supervise, and direct the Work competently, applying the management, supervision, skills, expertise, scheduling, coordination, and attention necessary to provide the Work in accordance with the Contract Documents with a minimum disturbance to or interference to the business operations on site or adjacent properties. The Contractor must assign and maintain a competent full-time superintendent on the Work, as its representative, at all times while Work is being done on site and must not be replaced without the Owner’s consent. The DTMB Superintendent Designation form must be completed by the Contractor and submitted before beginning any work. The Contractor shall enforce good order among its employees and shall not employ on the work any disorderly, intemperate, or unfit persons, or not skilled in the work assigned to them. The Contractor is solely responsible for his Means and Methods, safety precautions and programs related to safety, the Contractor’s failure to execute the Work in accordance with the Contract Documents and any act of omissions by the Contractor, Subcontractor or Supplier. The Contractor must compare Contract Documents for conflicts, unworkable or unsafe specified Means and Methods and verify against manufacturer’s recommendations for installations and handling and must notify the Professional in writing of the discovery of any such conflicts or errors. The Contractor is required to furnish certifications that https://scprod.michigan.gov/dtmb/-/media/Project/Websites/dtmb/Procurement/Design-and-Construction/Forms/Pink_Sheets.pdf?rev=69127eff91044dd5896ae22cf74a475e&hash=B3B0997B69B556AE2FCAA77EFAFE78CD

00-11 lines and grades for all concrete work were checked before and after placing concrete, and that final grades are as required by the Contractor Documents. Wherever required, the Contractor must be responsible for all cutting, fitting, drilling, fixing-up, and patching of concrete, masonry, gypsum board, piping and other materials that may be necessary to make in-place Work and dependent Work fit together properly. The Contractor must restore to pre-existing conditions all walks, roadways, paved or landscaped areas and other real and personal property not designated for alteration by the Contract Documents. The Contractor must maintain at the site one copy of safety data sheets (SDS) and one copy of all as built/Record Documents in good order and annotated in a neat and legible manner to show:

(a) all revisions made,

(b) dimensions noted during the furnishing and performance of the Work, and

(c) all deviations between the as-built installation and the Contract Documents, all approved Submittals and all clarifications and interpretations.

The Contractor must maintain and furnish promptly to the Owner and the Professional upon their request daily field reports and photos recording the on-site labor force and equipment (Contractor and Subcontractors); materials/equipment received; visits by Suppliers; significant in-progress and completed trade Work within major areas; and other pertinent information. The Contractor is obligated to act to prevent threatened damage, death, injury, or loss without any special instruction in emergencies and must give the Owner prompt written notice of any changes in Work resulting from the action taken for review and approval.

2.4 Subcontractors and Suppliers: The Owner assumes no contractual obligations to anyone other than the Contractor. All trade construction Drawings must be field coordinated before fabrication and/or installation. The Owner reserves the right to reject or revoke, for its convenience, any approved Subcontractor/Supplier. Work performed by any Subcontractor or Supplier must be through an appropriate written agreement that:

(a) expressly binds the Subcontractor/Supplier to the requirements of the Contract Documents,

(b) requires such Subcontractor or Supplier to assume toward the Contractor all the obligations that the Contractor assumes toward the Owner and the Professional, and

(c) contains the waiver of rights and dispute resolution provisions.

2.5 Prevailing Wages and Access to Payroll Records:

2.5.1 Prevailing Wages:

To the extent applicable, Contractor will comply with federal and state (2023 PA 10, MCL 408.1101 to 408.1126) prevailing wage requirements.

Federal Prevailing Wages -The federal prevailing wage requirements in the attached Federal Provisions Addendum apply when the Davis-Bacon Act (40 USC 3141-3148) as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”) applies.

State Prevailing Wages-The following provisions of this Article 7.15 apply when 2023 PA 10 applies.

Prevailing Wage and Fringe Benefits--The rates of wages and fringe benefits to be paid to each class of Construction Mechanic by DB Entity and Subcontractors, shall not be less than the wage rates and fringe benefit rates prevailing in the locality in which the work is performed.

Nondiscrimination, Nonretaliation- Contractor or a Subcontractor shall not discharge, discipline, retaliate against, or otherwise discriminate against a Construction Mechanic, or threaten to do any of these things, because the Construction Mechanic reported or was about to report a violation or suspected violation of the act.

Construction Mechanics under this Contract are intended beneficiaries of the contractual prevailing wage, fringe benefit, and nondiscrimination nonretaliation requirements of the Contract. Any such Construction Mechanic aggrieved by failure of a contractor or subcontractor to pay prevailing wages or benefits as specified in the Contract, or by violation of section 7 of 2023 PA 10, in addition to any other remedies provided by law, may bring an action in a court of competent jurisdiction against such contractor or subcontractor for damages or injunctive relief and may be awarded reinstatement or other appropriate relief, and all damages sustained, together with actual costs and attorney fees at trial and on appeal.

Contractor and Subcontractors shall keep posted on the construction site, in a conspicuous place, a copy of all prevailing wage and fringe benefit rates prescribed in this Contract and shall keep an accurate record showing the name and occupation of and the actual wages and benefits paid to each Construction Mechanic employed by it in connection with the Contract. This record shall be available for reasonable inspection by the State.

2.5.2 Payroll: The Contractor and its Subcontractors must maintain and keep, in accordance with generally accepted accounting principles, records pertaining to the bidding, award and performance of the Work, including, but not limited to certified payroll, employment records and all data used in estimating the Contractor’s prices for the Bid, Change Order, proposal or claim. The Owner or its representative must have access to those records, must have the right to interview the Contractor’s employees and must be provided with appropriate facilities for the purpose of inspection, audit/review and copying for five years after final payment, termination, or date of final resolution of any dispute, litigation, audit exception or appeal. The payroll and other employment records https://www.law.cornell.edu/uscode/text/40/subtitle-II/part-A/chapter-31/subchapter-IV https://www.law.cornell.edu/cfr/text/29/part-5

00-12 of workers assigned to the site must contain the name and address of each worker, correct wage classification, rate of pay, daily and weekly number of hours worked, deduction made, and actual wages paid. The Contractor must maintain records that show: (a) the anticipated costs or actual costs incurred in providing such benefits, (b) that commitment to provide such benefits is enforceable, and

(c) that the plan or program is financially responsible and has been communicated in writing to the workers affected.

3. Bonds and Insurance:

3.1 Both the Performance Bond and Payment Bond must remain in effect from the date of Contract Award until final completion of the Work or the end of Correction Period, whichever comes later. The surety bonds required for a Construction Contract will not be accepted by SFA unless the surety bonding company is listed in the current United States Government, Department of Treasury’s, Listing of approved sureties (bonding/insurance companies), Department Circular 570. Copies of the current Circular listing may be obtained through the internet web site https://www.fiscal.treasury.gov/fsreports/ref/suretyBnd/c570.htm.

Insurers must have an “A-“ A.M. Best Company Rating and a Class VII or better financial size category as shown in the most current A.M. Best Company ratings. Insurance must be provided by insurers authorized by the Department of Insurance and Financial Services (DIFS) to do business as an insurer in Michigan. The insurance company and must attach evidence of the authorization. These certificates must specify the Project File No., Project Title, and a description of the Project. The Contractor agrees that insurance coverage afforded under the policies as such coverage relate to the State under this Contract as determined by the Contractor will not be modified or canceled without at least thirty calendar days prior written notice to the State. The latest A.M. Best’s Key Ratings Guide and the A.M. Best’s Company Reports (which include the A.M. Best’s Ratings) are found at:

http://www.ambest.com. The Contractor must not perform any part of the Work unless the Contractor has all the required insurance in full force and effect.

3.2 The Contractor is required to provide proof of the minimum levels of insurance coverage as indicated below. The purpose of this coverage must be to protect the State from claims which may arise out of or result from the Contractor’s performance of services under the terms of this Contract, whether such services are performed by the Contractor, or by any subcontractor, or by anyone directly or indirectly employed by any of them, or by anyone for whose acts they may be liable.

The Contractor waives all rights against the State for recovery of damages to the extent these damages are covered by the insurance policies the Contractor is required to maintain pursuant to this Contract. The Contractor also agrees to provide evidence that all applicable insurance policies contain a waiver of subrogation by the insurance company.

All insurance coverages provided relative to this Contract/Purchase Order is PRIMARY and NON-CONTRIBUTING to any comparable liability insurance (including self-insurances) carried by the State.

The Insurance must be written for not less than any minimum coverage herein specified or required by law, whichever is greater.

All deductible amounts for any of the required policies are subject to approval by the State.

The State reserves the right to reject insurance written by an insurer the State deems unacceptable.

BEFORE THE CONTRACT IS SIGNED BY BOTH PARTIES and BEFORE THE PURCHASE ORDER IS ISSUED BY THE STATE, THE CONTRACTOR MUST FURNISH TO THE DIRECTOR-DCD CERTIFICATE(S) OF INSURANCE VERIFYING INSURANCE COVERAGE. THE CERTIFICATE MUST BE ON THE STANDARD “ACCORD” FORM. THE CONTRACT OR PURCHASE ORDER NUMBER MUST BE SHOWN ON THE CERTIFICATE OF INSURANCE TO ASSURE CORRECT FILING.

All such Certificate(s) are to be prepared by the Insurance Provider and not by the Contractor. All such Certificate(s) must contain a provision indicating that coverages afforded under the policies WILL NOT BE CANCELLED, MATERIALLY CHANGED, OR NOT RENEWED without THIRTY days prior written notice, except for 10 days for non-payment of premium, having been given to the Director-DCD Such NOTICE must include the CONTRACT NUMBER affected and be mailed to the Project Director.

The Contractor is required to provide the type and amount of insurance below:

(a) Commercial General Liability Insurance with a limit of not less than $1,000,000 each occurrence. If such CGL insurance contains a general aggregate limit, it must apply separately to this project.

The Contractor must list the State, its departments, divisions, agencies, offices, commissions, officers, employees, and agents as ADDITIONAL INSUREDS on the Commercial General Liability policy.

(b) Vehicle Liability Insurance for bodily injury and property damage as required by law on any auto including owned, hired, and non-owed vehicles used in the Contractor’s business.

The Contractor must list the State, its departments, divisions, agencies, offices, commissions, officers, employers, and agents as ADDITIONAL INSUREDS on the vehicle liability policy.

(c) Worker’s disability compensation, disability benefit or other similar employee benefit act with minimum statutory limits.

NOTE:

https://www.fiscal.treasury.gov/fsreports/ref/suretyBnd/c570.htm http://www.ambest.com/

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(i) If coverage is provided by a State fund or if Contractor has qualified as a self-insurer, separate certification must be furnished that coverage is in the state fund or that Contractor has approval to be a self-insurer.

(ii) Any citing of a policy of insurance must include a listing of the States where that policy’s coverage is applicable;

and

(iii) This provision must not be applicable where prohibited or limited by Michigan law.

(d) Employer’s Liability Insurance with the following minimum limits:

$1,000,000 each accident $1,000,000 each employee by disease $1,000,000 aggregate disease

3.3 Liability Insurance: Liability insurance must be endorsed to list as additional insureds the Professional’s consultants and agents.

Worker’s Compensation, Employer’s Liability Insurance and all other liability insurance policies must be endorsed to include a waiver of rights to recover from the Owner, Professional and the other additional insureds. The Contractor’s liability insurance must remain in effect through the Correction Period and through any special correction periods. For any employee of the Contractor who is resident of and hired in Michigan, the Contractor must have insurance for benefits payable under Michigan’s Worker’s Compensation Law. For any other employee protected by Worker’s Compensation Laws of any other state, the Contractor must have insurance or participate in a mandatory state fund, where applicable, to cover the benefits payable to any such employee. These requirements must not be construed to limit the liability of the Contractor or its insurers. The Owner does not represent that the specified coverage or limits of insurance are sufficient to protect the Contractor’s interests or liabilities.

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3.4 Builder’s Risk Insurance: Unless indicated otherwise in the bid document, the Contractor will purchase and maintain property insurance for 100% of actual cash replacement value of the insurable Work (minimum amount to be the contract award amount) while in the course of construction, including foundations, additions, attachments, and all fixtures, machinery and equipment belonging to and constituting a permanent part of the building structures. The property insurance also will cover temporary structures, materials and supplies to be used in completing the Work, only while on the building site premises or within five hundred feet of the site. The property insurance insures the interests of the Owner, Contractor and all Subcontractors and Suppliers at any tier as their interest may appear. The property insurance insures against “all risk” of physical loss or damage to the extent usually provided in policy forms of insurers authorized to transact this insurance in Michigan. A copy of the master insurance policy will be available for review by the State, upon request. Any deductible shall be both the option and responsibility of the Contractor.

3.5 The Owner and Contractor intend that the required policies of property insurance must protect all the parties insured and provide primary coverage for all losses and damages caused by the perils covered. Accordingly, to the extent that the insurance company pays claims, the Owner and the Contractor and its Subcontractors/Suppliers waive all rights against each other for any such losses and damages and waive all such rights against the Professional and all other persons named as insureds or additional insureds.

4. Prosecutions; Substantial Completion:

4.1 The Contractor must not start the Work at the site before the first day established by the Notice to Proceed and/or before all insurance is in effect. A pre-construction conference will be held with the Contractor to review its Progress Schedule, qualifications of its key personnel, its proposed access to the site, traffic and parking, procedures for submittal, change orders, etc., and to exchange emergency contact information. The Contractor must use its accepted Progress Schedule when making proposals or claims for adjustment in Contract Time/Price.

4.2 Except in an Emergency, all Work at the site must take place during normal working hours; 6:00 AM to 6:00 PM, during Business Days and in accordance with the special working conditions for the Agency. If the Contract Documents allow work outside the normal hours, the Contractor must provide a written notice to the Owner twenty-four hours before performing such Work and must reimburse the Owner any related increase in the costs incurred by the Owner such as overtime charges of the Professional and payments for custodial and security personnel.

4.3 If, upon inspection and completion of all pre-requisite testing of the Work, the Contractor considers that a portion of the work or all the Work is substantially completed, it must provide a list of items to be corrected or completed to the Owner and the Professional for joint inspection. Within ten Calendar Days of this joint inspection, the Professional will deliver to the Owner and Contractor a list of incomplete/Defective work or a Certificate of Substantial Completion with a Punch List. The certificate must:

(a) fix a reasonable date of Substantial Completion,

(b) fix a date for completion of the Punch List, and

(c) recommend the division of responsibilities between the Owner and Contractor for utilities, security, safety, insurance, maintenance, etc.

Upon issuing the Certificate of Substantial Completion, the Owner will pay for the completed Work subject to (a) withholding of two hundred percent of the value of any uncompleted Work, as determined by the Professional, and (b) any other deductions as the Professional may recommend or may withhold to cover Defective work, liquidated damages and the fair value of any other items entitling the Owner to a withholding. Prerequisites for Substantial Completion, over and above the extent of Work completion required, include (a) receipt by the Owner of operating and maintenance documentation, (b) all systems have been successfully tested and demonstrated by the Contractor for their intended use, and (c) the Owner having received all required certifications and/or occupancy approvals from the State and those Political Subdivisions having jurisdiction over the Work.

Receipt of all certifications and/or occupancy approvals from those Political Subdivisions with jurisdiction in and of itself does not necessarily connote Substantial Completion. The Contractor must provide all related operating and maintenance (O&M) documentation to the Owner before training if training is required and not later than Substantial Completion otherwise. The Contractor must give the Owner the final O&M documentation (with revisions made after Substantial Completion) before the request for final payment.

4.4 The Owner may decide to use, at its sole option, any functioning portion of the Work and will inform the Contractor in writing of the decision. The portion of Work to be used must be jointly inspected to determine the extent of completion if it has not undergone the inspection for Substantial Completion. The Professional must prepare a list of items to be corrected/completed and the Owner will allow the Contractor reasonable access to correct/complete the listed items and finish other work.

5. Warranty; Tests, Inspections and Approvals; Corrections of Work:

5.1 Warranty: The Contractor must furnish the State with a written guarantee to remedy any defects due to faulty materials or labor which appear in the Work within one year from the date of final acceptance by the State. This warranty excludes defect or damage caused by (a) abuse, modification by others, insufficient or improper operation or maintenance, or (b) normal wear and tear under normal usage. Manufacturer warranties for materials and equipment received by the Contractor must be assigned and promptly delivered to the Owner at Substantial Completion. The warranties period starts from the date of the substantial completion and must be in full force and effect for the entire duration of the Correction Period.

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Roof Warranty: For roofing systems, the following warranties are required as minimum:

(a) A two-year contractor’s warranty against any defects due to faulty materials or labor.

(b) A fifteen-year manufacturer’s total system warranty; and

(c) A twenty-year membrane/shingles/tiles warranty.

5.2 Tests, Inspections and Approvals: The Owner will perform or retain a professional/agency to perform inspections, tests or approvals for those materials required to meet quality control standards specified in the Contract Documents except for those inspections, tests or approvals specifically designated to the Contractor in the Contract Documents. However, the Contractor must assume full responsibility for any testing, inspection, or approval.

(a) required to meet code requirements, as promulgated by code inspecting authorities.

(b) required by Law.

(c) indicated or required by the Contract Documents as designated to the Contractor.

(d) required for the Professional’s acceptance of a Supplier, materials or equipment or mix designs submitted for prior approval by the Contractor; or

(e) Defective work, including an appropriate portion of the Delay and costs occasioned by discovery of Defective work. The

Contractor must (a) pay all related costs; (b) schedule related activities; and (c) secure and furnish to the Professional the required certificates of inspection, testing or approval. The Contractor must provide proper and safe access to the site for inspection, testing or approval. The Contractor must provide the Professional a timely notice whenever any Work is ready for inspection, testing or approval. If the Contractor covers any Work without proper approval by the Professional as required by the Contract Documents, the Contractor must, at its own expense, uncover, expose, or otherwise make available, when requested by the Professional or Owner, for testing, inspection, or approval of the covered Work.

5.3 Correction of Work: If any testing, inspection, or approval reveals Defective Work and the Work is rejected by the Professional, the Contractor, at its sole expense, must promptly, as directed, correct, or remove the Defective Work from the site and replace it with non-Defective Work within the Correction Period. The Contractor must bear responsibility for its proportionate share of the Delay and costs resulting from the correction and/or removal and replacement of Defective Work. If the Contractor, within reasonable and agreed upon time after receipt of written notice, (a) fails to correct Defective Work or remove and replace rejected Work, or (b) fails to correct or complete items on any Punch List, or (c) fails to perform Work in accordance with the Contract Documents, or (d) fails to comply with any other provision of the Contract Documents, the Owner, directly or through others, after seven Calendar Days from the date of the written notice to the Contractor, may correct and remedy the Defective Work. To the extent necessary to correct and remedy such Defective Work, the Owner must be allowed to exclude the Contractor from all or part of the site; take possession of all or part of the Work and stop related operations of the Contractor; take possession of the Contractor’s tools, plant and office and construction equipment at the site; and incorporate into the Work materials and equipment for which the Owner has paid the Contractor. The Contractor must allow the Owner and the Professional easy access to the site to correct such Defective Work. The Owner must be entitled to an appropriate decrease in Contract Price for all claims, costs, losses, damages, and Delay incurred or sustained by the Owner which are attributable to the Contractor. Such costs may include, but not limited to, costs of correction or removal and replacement of Defective Work, costs of repair and replacement of other work destroyed or damaged by the action and related charges of the Professional. If the discovery of the Defective Work takes place after final payment and the Contractor fails to correct and pay the Owner any of these costs, the Owner must demand due performance under the Performance Bond. Until the period of limitation provided by Michigan Law, the Contractor must promptly, and upon receipt of written notice from the Owner, correct Defective Work. In the event of an Emergency or unacceptable risk of loss or damage or if appropriate under the circumstances, the Owner, directly or through others under contract with the Owner, may correct or remove and replace the Defective Work. The specified correction of Work requirements has no limitation on the rights of the Owner to have Defective Work corrected or removed and replaced, if rejected, except as otherwise provided by the Michigan Law.

5.4 Special Correction Period Requirements: Whenever the Owner undertakes any portion of the Work because the Contractor’s act or omission Delays completion of the Work or it is eligible for Partial Use, the warranties for all materials and equipment incorporated into that portion of the Work must remain in full force and effect between the start of such Partial Use and the date when the Correction Period starts. The Correction Period for any Defective Work that is corrected or rejected and replaced within the last three months of the Correction Period must be extended by an additional six months, starting on the date such Work was made non-Defective.

5.5 Special Maintenance Requirements: If the Contract Documents specify that the entire Work, or a portion of the Work, upon reaching Substantial Completion, must not be placed in use by the Owner, the Contractor must maintain the Work, or specified part of the Work, in good order and proper working condition and must take all other actions necessary for its protection between the certified date of Substantial Completion and the date when the Work, or designated part of the Work, is placed in use. If no separate price for such special maintenance period was requested and made part of the Contract Documents, the Owner will amend the Contract Documents to appropriately increase the Contract Price.

6. Changes:

6.1 Changes in the Work: The Owner may, at any time, without notice to sureties, make any changes bilaterally or unilaterally, by a written Change Order, in the Work within the general scope of the Contract, including but not limited to changes in the Specifications, materials, or Contract Time. In a bilateral change order, the Owner may direct the Professional to prepare a

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Bulletin describing the change being considered. Upon receiving the Bulletin, the Contractor establishes the cost and returns it to the Professional for review within 15 calendar days. The Contractor’s proposal must be irrevocable for 60 Calendar Days after it is submitted to the Professional. If the Professional recommends acceptance of the Bulletin and the Owner agrees with the changes, the Owner issues a written bilateral Contract Change Order to amend the Contract Documents. However, the Owner may issue a unilateral Change Order if the Owner and Contractor are unable to agree on the adjustment in Contract Price or Time. If the Contractor disagrees with such unilateral Contract Change Order, the Contractor must complete the Work and may deliver notice of a claim in accordance with the claim submittal process.

6.2 Differing Site Condition: The Owner does not warrant that any technical data, including the Project reference points, provided by the Owner is necessarily sufficient and complete for the purpose of selecting Means and Methods, initiating, maintaining, and supervising safety precautions and programs or discharging any other obligation assumed by the Contractor under the Contract Documents. If different or unknown site conditions are discovered, the Contractor must notify the Owner in writing before the conditions are disturbed or before proceeding with the affected Work. Upon review, if the Owner decides to agree with the differing site conditions, with the Professional’s advice, the Owner may issue a written Contract Change Order to amend the Contract Price or Time through the Bulletin authorization process. If the Owner decides to disagree with the Contractor and the Contractor disagrees with the Owner’s decision, the Contractor must complete the Work and may deliver notice of a claim in accordance with the claim submittal process. No proposal or claim by the Contractor due to differing site conditions will be allowed (a) if the Contractor knew of their existence before submitting its Bid or if those conditions could have been discovered by any reasonable examinations for which the Contractor, as Bidder, was made responsible under the Bidding Requirements and/or (b) unless the Contractor’s written notice is provided within not more than 21 days after the contractor first recognizes the condition giving rise to the proposal or claim and gives the Owner adequate opportunity to investigate the asserted differing site conditions. A full and detailed breakdown of cost and time requested, with supporting documentation, if not provided with the initial notice shall be delivered to the Professional and Owner within 15 days of the notice, unless otherwise agreed in writing, by the Owner prior to expiration of such time.

6.3 Responsibilities for Underground Utilities: The Contractor must comply with the 2013 PA 174, as amended, MCL 460.721 et seg., and all other Laws concerning Underground Utilities. Before performing site Work, all Underground Utilities, lines, and cables (public and private) must be located and marked. The Contractor must notify MISS DIG to locate and mark utilities on properties that are not State properties. In addition, the Contractor must be responsible for immediately notifying the Owner of any contact with or damage to Underground Utilities, and for the safety, protection of and repairing any damage done to any Work, surface, and subsurface facilities. If the Contractor encounters Underground Utilities that inaccurately located by the Contract Documents or not previously located/marked, which could not be reasonably have been seen, the Owner may issue a written Contract Change Order to amend the Contract Price or Time through the Bulletin authorization process.

6.4 Hazardous Material Conditions: If the Contractor encounters material reasonably believed to be Hazardous Material, which was not described in the Drawings and/or Specifications and was not generated or brought to the site by the Contractor, the Contractor shall immediately stop all affected work, give written notice to the Owner of the conditions encountered, and take appropriate health and safety precautions in accordance with all federal, state, and local laws. Upon receipt of the notice, the Owner will investigate the conditions and (a) may stop the Work and terminate the affected Work or the Contract for convenience;

(b) may contract others to have the Hazardous Material removed or rendered harmless or (c) issue a written Contract Change Order to amend the Contract Price/Time through the Bulletin authorization process. If the Hazardous Material is brought to site by the Contractor or as a result in whole or in part from any of its violation of any Law covering the use, handling, storage, disposal of, processing, transport and transfer or from any other act or omission within its control, the Contractor is responsible for the Delay and costs to clean up the site, remove and render harmless the Hazardous Material to the satisfaction of the Owner, State and all Political Subdivisions with jurisdiction.

6.5 Incidents with Archaeological Features: The Contractor must immediately notify the Owner in writing of any Archeological Feature deposits encountered at the site and must protect the deposits in a satisfactory manner. If the Contractor encounters such features, which result in an anticipated change to the Contract Price/Time, the Owner may issue a written Contract Change Order through the Bulletin authorization process.

6.6 Unit Price Work: Quantities as listed have been carefully estimated but are not guaranteed. The Owner reserves the right to increase or decrease the quantities of the Work to be performed at the Unit Price by amounts up to 20 percent of the listed estimated quantities. For Unit Price Work, the Contractor must promptly inform the Professional in writing if actual quantities differ from the estimated quantities for any item. For quantities over 120% or below 80% of the estimated quantity, the Owner may negotiate a Unit Price with the Contractor, or direct a unilateral change, or bid that Work under separate contract. Any adjusted Unit Price agreed upon by the Owner will only apply to the actual quantities above 120% or below 80% of the estimated quantity. No adjustment due to quantity variations must be allowed (a) unless the Contractor met the notice requirements, or (b) if any Unit Price increase results in whole or in part from any act or omission within the control of the Contractor (errors in the Contractor's Bid, unbalanced Unit Prices, etc.). If a dispute arises between the Owner and the Contractor on the adjusted Unit Price, the Contractor must carry on the Work with due diligence during the disputes/disagreements.

6.7 Cash Allowances; Provisionary Allowances: The Contractor must obtain the Professional’s and Project Director’s written acceptance before providing materials, equipment, or other items covered by Cash Allowance. Work authorized under any Provisionary Allowance may consist of (a) changes required by actual conditions, as determined by the Professional, and (b) any other Work authorized and completed under the pertinent provisions of the Contract Documents.

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6.8 Changes in Contract Price:

6.8.1 The Contractor’s proposals or claims for Work Involved must detail all affected items of Work, whether increased, revised, added, or deleted, and must be fully documented and itemized as to (a) individual adds and deducts in Work quantities and labor man-hours; (b) corresponding itemized cost of Work Involved; (c) materials and equipment cost including transportation, storage, and suppliers’ field services; and (d) Fee.

6.8.1.1 No proposal or claim by the Contractor on account of any asserted change not issued as a Bulletin by the PSC or Owner, shall be allowed unless initiated by written notice of such proposal or claim to the Professional and Owner within 21 days after the occurrence of the event giving rise to the proposal or claim. A full and detailed breakdown of cost and time requested, with supporting documentation, if not provided with the initial notice shall be delivered to the Professional and Owner within 15 days of the notice, unless otherwise agreed in writing, by the Owner prior to expiration of such time.

6.8.2 For Contractor’s proposals or claims for adjustments in Contract Price arising from Delays, the Contractor’s estimates must be as comprehensive and detailed as may be appropriate to support the proposal or claim. Examples of related information include labor manpower levels, production data and Progress Schedule revision.

6.8.3 If the Contract Documents use lump sum or Unit Prices for the Work Involved, those prices must be used in estimating the price change. Otherwise, the Owner may direct the Contractor to proceed (a) on a negotiated lump sum; or (b) on an actual cost basis with or without a guaranteed maximum; or (c) through a unilateral Change Order on a lump sum basis or a not-to-exceed basis, based on the Professional’s estimate of the anticipated Cost of the Work Involved and a fee. Items making-up the Cost of the Work Involved must be allowable to the extent (a) consistent with those prevailing in the Project locality, (b) necessary, reasonable, and clearly allocable to the Work Involved, and (c) limited to labor costs, subcontract costs, material and equipment costs, construction equipment costs and general conditions costs.

6.8.4 In estimating any additional cost by the Contractor or its Subcontractor, the rates for the craft labor man-hour used in estimating changes in Contract Price must not exceed the rates in Means Cost Data (Means) or other cost guide acceptable to the Owner.

If the rates exceed the acceptable cost guides, the Contractor must provide proper justifications acceptable to the Professional and the Owner. The payroll costs may be used to quote a Bulletin. However, the payroll costs must include wages, labor burdens and a factor for field supplies and purchase costs (less market values if not consumed) of tools not owned by the workers. Labor burdens must be certified by an authorized financial representative of the Contractor and may include social security, unemployment, taxes, workers’ compensation, health and retirement benefits, vacation, and holiday pay. The factor for field supplies and tools (individually valued at less than $1,000.00) must not exceed 4% of the wages without burdens, unless detailed data, which supports higher costs, is provided. Rates for owned, rented, or leased construction equipment must be in accordance with the contract price rates. Otherwise, the appropriate hourly, daily, weekly, or monthly rates listed in Means must be used.

However, if the total rental or lease cost of an item to the Project exceeds the reasonable purchase price of the rented or leased item, the Owner reserves the right to pay only the purchase price of the item and take title to the item. Operating cost must not exceed the hourly operating rate in Means and for multiple shifts, rates must not exceed the shift work adjustments recommended in the cost guide.

6.8.5 The cost of any Work Involved may include necessary general conditions costs to the extent those costs increase or decrease on account of, or are directly attributable to, the performance of the furnishing and/or performance of the additional Work Involved or are required due to an extension in Contract Times or Delays. Such costs may include payroll costs of personnel, temporary facilities at the site, liability insurance and bond premiums, Subcontractors, royalty payments and fees for permits and licenses and taxes on the Work Involved.

6.8.6 A contractor or subcontractor who performs the Work may charge a fee of up to 15% of the cost of Work involved for overhead and profit. Contractor may charge a mark-up fee of up to 5% of its Subcontractor’s cost excluding fees if the Work is performed by the Subcontractor. If Work is to be performed by lower tier subcontractor(s), intermediate subcontractors and the Contractor must share a fee of up to 5% of the lowest tier subcontractor’s cost excluding fees. The total mark-up fees for the Work must not exceed 20% of the lowest tier subcontractor’s cost excluding fees. If the adjustment to the Contract Price incorporates a contractor reservation of rights to claim additional adjustments, the fees must be reduced by one-third. Contractor’s administrative costs and home office overhead must be non-reimbursable expenses covered by the Fee for the Work.

6.9 Changes in Contract Time:

6.9.1 If a justified extension beyond the Contract Time is not reasonably anticipatable under the circumstances, the Owner may approve an extension to the Contract Time through the Bulletin authorization process at no additional cost to the Owner.

Examples of events that may justify an extension in the Contract Time include acts of God; acts of the public enemy; fires;

floods; and strikes.

6.9.2 If, at any time during the life of this Contract, the Contractor finds that for reasons beyond its control, it will be impossible to complete the Work on or before the Contract completion date, a written request for a change to the Contract extending the time of completion must be submitted. Such a request must set forth in precise detail the reasons believed to justify an extension and must be in such format as the State may require.

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6.9.3 When submitting a quotation for a Contract change authorization for extra work or change in plans, the Contractor must include as part of the quotation, a statement requesting any extra time necessary to complete the related Work. Lack of such a statement will serve as notification that the extra time will not be required to complete the Contract work and will waive the right to a later claim. The Owner will not pay additional compensation to the Contractor for performing Contract Work during any extension period granted.

6.9.4 If the Progress Schedule and the funding allow for an early completion date, the Contractor may submit to the Owner for approval, a request to shorten the Contract Time. If approved by the Owner, the new Contract Time applies to the Project and liquidated damages, if any, will be assessed for any delays after the new completion date.

6.10 Price Reduction for Defective Cost or Pricing Data: Whenever the Contractor signs a proposal for a change in the Contract or claim settlement, the Contractor will be deemed to have certified on behalf of itself, Subcontractors and Suppliers, to its best knowledge and belief that the proposal and its contents (a) were made in good faith and are consistent with the facts and the provisions of the Contract; and (b) are current, complete, and accurate.