CONTRACT

DOCUMENTS &

TECHNICAL

SPECIFICATIONS

WATER, SANITARY SEWER

AND DRAINAGE FACILITIES

TO SERVE

VIDA MAR, SECTION 4

GALVESTON COUNTY M.U.D. NO. 74 JOB #: 081111.009.550014

OCTOBER 2026

3200 Southwest Freeway, Suite 1600 | Houston, Texas 77027

GALVESTON COUNTY M.U.D. NO. 74 TABLE OF CONTENTS

TOC

TABLE OF CONTENTS

CONTRACT DOCUMENTS PAGE NO.

Contract Between Owner and Contractor ........................................................................................ 1 – 66

Special Conditions of The Agreement ............................................................................................... 1 – 9

Payment Bond .................................................................................................................. PAY-1 – PAY-3

Performance Bond............................................................................................................. PER-1 – PER-3

Maintenance Bond .............................................................................................................. MB-1 – MB-3

BIDDER INFORMATION

Notice to Bidders .................................................................................................................................. 1.1

Instructions to Bidders ................................................................................................................. 2.1 – 2.7

Bid Proposal ................................................................................................................................. 4.1 – 4.9

TECHNICAL SPECIFICATION

Earthwork .................................................................................................................................. 14.1 - 14.2 Special Grading ......................................................................................................................... 15.1 - 15.2 Earthwork for Detention Pond ............................................................................................................ 16.1 Hydromulch Seeding................................................................................................................. 17.1 - 17.2 Compacted Fill .......................................................................................................................... 18.1 - 18.2 Lime Stabilized Subgrade ................................................................................................................... 19.1 Concrete Paving ........................................................................................................................ 20.1 - 20.2 Concrete General....................................................................................................................... 21.1 - 21.4 Concrete Miscellaneous Materials ............................................................................................ 22.1 - 22.2 Metals Reinforcing Steel ........................................................................................................... 23.1 - 23.2 Cement Stabilized Sand ...................................................................................................................... 24.1 Storm Sewer System ................................................................................................................ 25.1 – 25.3 Sanitary Sewage Collection System.......................................................................................... 26.1 - 26.4 Water Distribution System ........................................................................................................ 27.1 - 27.4 Piping, Fittings, Valves and Gates ............................................................................................ 28.1 - 28.4 Trench Shoring .................................................................................................................................... 29.1 Storm Water Pollution Prevention Plan .............................................................................................. 30.1 Manholes

APPENDIX

TCEQ Form 1295

CONTRACT DOCUMENTS

Version 2025.1

GALVESTON COUNTY M.U.D. NO. 74 CONTRACT

CONTRACT BETWEEN OWNER, CONTRACTOR, AND DEVELOPER

The Parties To This Contract Are:

Owner

GALVESTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 74,

a political subdivision of the State of Texas.

c/o The Muller Law Group, PLLC 202 Century Square Boulevard Sugar Land, Texas 77478

Contractor

CONSTRUCTION COMPANY

Address

Address

Developer

ASHTON HOUSTON RESIDENTIAL, LLC

a Texas limited liability company.

THIS CONTRACT (“Contract”) is made and entered into this _______day of __________, 20__, among the Parties, for and in consideration of the mutual covenants hereinafter set forth, and under the conditions expressed in the Bonds bearing even date herewith, the Contractor and Owner hereby agree as follows.

All capitalized terms used herein shall be given the meanings set forth in Article II below.

One fully executed original Contract will be retained by Owner. A certified copy of the fully executed Contract will be provided to any parties requesting a copy.

\\us-hou-fs01\Projects\1130\5500-14\CONTRACT\UTILITY\1_Developer Financed Contract (Updated July 2025).docx

CONTENTS

CONTRACT BETWEEN OWNER, CONTRACTOR, AND DEVELOPER

ARTICLE I. PRINCIPLE CONDITIONS OF THE CONTRACT

ARTICLE II. DEFINITIONS

ARTICLE III. CONTRACT DOCUMENTS

ARTICLE IV. PRELIMINARY MATTERS

ARTICLE V. SITE ACCESS/ CONDITIONS/ REFERENCE POINTS

ARTICLE VI. CONTRACTOR’S RESPONSIBILITIES/ INDEMNITIES

ARTICLE VII. ENGINEER’S STATUS DURING CONSTRUCTION

ARTICLE VIII. EXTRA WORK/ CHANGE ORDERS/ CLAIMS

ARTICLE IX. TESTS AND INSPECTIONS/ DEFECTIVE WORK/ WARRANTY

ARTICLE X. PRICE FOR WORK/ PAYMENTS TO CONTRACTOR

ARTICLE XI. FINAL COMPLETION AND ACCEPTANCE

ARTICLE XII. SUSPENSION OF WORK/ TERMINATION/ DEFAULT

ARTICLE XIII. MISCELLANEOUS

INDEX

ATTACHMENT A

ARTICLE I. PRINCIPAL CONDITIONS OF THE CONTRACT

1.1 SCOPE OF WORK:

b. Contractor shall commence and complete the Work generally described as follows:

Construction of Water, Sanitary Sewer and Drainage Facilities to serve Vida Mar, Section 4 for Galveston County Municipal Utility District No. 74, Galveston County, Texas, according to those particular Plans and Technical Specifications prepared by GFT (“Engineer”) and all Extra Work in connection therewith, under the terms as stated in the Contract, and, at Contractor’s own proper cost and expense, to furnish all the materials, supplies, machinery, equipment, tools, superintendence, labor, insurance, and other accessories and services necessary to complete the said Work, in accordance with the conditions and prices stated in the Bid attached hereto and in accordance with the Contract Documents, including, the Invitation to Bidders, Instructions to Bidders, Contractor’s Bid, the Contract, Plans, and other drawings and printed or written explanatory matter thereof, and the Technical Specifications, on file with Engineer. Contractor represents and warrants to the Owner that it has carefully examined this Contract and all other Contract Documents, which are made a part of the Contract, and is thoroughly familiar therewith.

c. Under this Contract and the Contract Documents, Contractor shall furnish all materials, appliances, tools, equipment, transportation, services, and all labor and superintendence necessary for the construction of the Work as described in the Technical Specifications and as shown on the Plans. The completed installation shall not lack any part that can be reasonably implied as necessary to its proper functioning or any subsidiary item that is customarily furnished, and Contractor shall deliver the installation to Owner in operating condition.

d. The Work, in general, under the Contract includes the purchase, installation, and construction of all structures, equipment, and materials, including appurtenances, as indicated on the Plans.

e. Major items of construction and services required are designated as follows:

i. Install and adjust waterlines, valves, valve boxes, flushing valves, fittings, and appurtenances

ii. Construct and adjust sanitary sewer, manholes, and appurtenances

iii. Repair existing pavement affected

iv. Furnish and install all subsidiary items as necessary to complete the project

v. Perform testing as specified on installed lines

vi. Clean-up project area upon completion

1.2 TIME FOR COMPLETION:

a. The Contractor hereby agrees to begin work within 10 calendar days after Engineer has given written Notice to Proceed. Contractor hereby also agrees to achieve Substantial Completion of the Work within 45 calendar days after the date of the written Notice to Proceed and to achieve Final Completion of the Work within 45 calendar days after the date of the written Notice to Proceed.

1.3 SURETY BONDS REQUIRED:

a. It is further agreed by the parties to this Contract that Contractor will execute:

i. a Payment Bond in the sum of 100% of the initial Contract Price, if the initial Contract Price is $25,000 or more

AND

ii. a Performance Bond in the sum of 100% of the initial Contract Price, if the initial Contract Price is $100,000 or more

AND

iii. a Maintenance Bond in the amount of 100% of the final Contract Price for the period reflected in Section 9.2 if the maintenance and warranty period is not covered by a Performance Bond.

for the satisfactory performance of the Work, the fulfilment of any guarantees required, and the prompt payment to all persons supplying labor and materials in the prosecution of the Work, in accordance with this Contract on the forms provided for this purpose; and it is agreed that this Contract shall not be in effect until such Bonds are furnished and approved by Owner. Upon increase of the Contract Price authorized by Change Order, Contractor shall 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 work on the Project.

b. All Bonds shall be in the form prescribed by the Contract Documents, except as required otherwise by Laws or Regulations, and shall be executed by such sureties as are named in the current list of “Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies” as published in Circular 570 (amended) by the Financial Management Service, Surety Bond Branch, U.S. Department of the Treasury. A certified copy of the agent’s authority to act must accompany all Bonds signed by an agent. Surety must have a minimum Best’s Key Rating of “B+”. 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 the underwriting limitation.

c. For bonds 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. 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.

d. The person executing the Bonds must be authorized by the surety company to execute the Bonds on behalf of the company in the amount required for the contract and such authorization must be recorded in the files of the Texas Department of Insurance. The Contract shall not be in effect until such bonds have been provided by the Contractor and accepted by the Owner.

e. If the surety on any Bond furnished by Contractor is declared bankrupt, becomes insolvent, 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 shall promptly notify Contractor, Owner and Engineer and shall, within 10 calendar days after the event giving rise to such notification, provide another Bond and surety to fulfill the required obligations.

1.4 CONTRACT PRICE:

a. The Contract Price for this Work is Dollars and 00/100 ($ ). The initial Contract Price may increase or decrease due to Change Orders and Contract Price Adjustments, described below, as provided by the Contract Documents.

b. Contractor and Owner agree that time is of the essence of this Contract. Therefore, Contractor and Owner agree that for each and every calendar day the Work or any portion thereof is not Substantially Complete after the date provided for in Section 1.2 of this Contract, or as extended under the provisions of the Contract Documents, the Contract Price will decrease by $500 (“Contract Price Adjustment”). This Contract Price Adjustment is an “economic disincentive” for late completion of the Work, pursuant to Section 49.271(e), Texas Water Code. The Owner shall have the option to deduct and withhold the Contract Price Adjustment 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 performance bond.

c. Owner agrees to pay Contractor’s invoices for work performed, in accordance with the terms of the Contract Documents, in an aggregate amount not to exceed the Contract Price, plus Change Orders and Extra Work approved by the Board of Directors of the Owner.

Failure by Owner to make such payments to the Contractor shall constitute a default by

Owner and shall entitle the Contractor to all rights and remedies arising under the Contract Documents for a default in payment of sums due.

1.5 DEVELOPER’S OBLIGATION TO MAKE PAYMENTS FOR THE WORK:

a. Owner (“District”) shall be deemed and considered Owner for all purposes under the Contract Documents, except for purposes of Payment.

b. Ashton Houston Residential, LLC, a Texas Limited Liability Company (“Developer”) shall be considered “Owner” for purposes of approving requests for and making payments to the Contractor for all or any portion of the Contract Price and for paying all damages, if any, that might ever be due or payable by the District, including any costs associated with any Change Orders to the Contract. After submission to and approval by the District and by Developer of the invoices, certificates, and supporting documentation in connection with a request for payment, the Contractor agrees to and shall look solely to Developer for payment of such invoices. Developer agrees to pay Contractor’s invoices for work performed, in accordance with the terms of the Contract Documents, in an aggregate amount not to exceed the Contract Price, plus Change Orders and Extra Work approved by the Board of Directors of the District and by Developer. Failure by Developer to make such payments to the Contractor shall constitute a default by Owner and shall entitle the Contractor to all rights and remedies arising under the Contract Documents for a default in payment of sums due; provided, however, the District shall have no obligation for payment of sums due or to become due under the approved invoices or any part of the Contract Price.

c. In consideration for payment provisions described above, Developer, its officers, directors, and employees, shall be included as Indemnified Parties and subject to all rights afforded thereby under the Contract Documents, in law, and in equity.

d. Developer reserves the right to assign its payment obligations hereunder to District, subject to written acceptance thereof by the District. Developer further reserves the right to assign its obligations hereunder to a third party, subject to written consent of the District. A copy of such assignment and the acceptance or consent thereof, as applicable, by the District shall be provided to the Contractor, and thereafter the District shall be obligated to make all payments thereafter becoming due to the Contractor pursuant to this Contract and the obligations of Developer contained herein.

e. For purposes of convenient administration of this Contract, District may from time to time make payments due the Contractor pursuant to this Contract from funds available to the District; provided, however, no such payment by District will obligate District to make further payments due the Contractor or pursuant to the Contract unless and until District has accepted an assignment of Developer’s obligations hereunder and a copy of the assignment and the District’s acceptance is delivered to the Contractor, whereupon the District shall become liable for payment to the extent of the assignment.

1.6 NOTICE TO DEVELOPER:

a. If Owner breaches its obligations in any respect under the Contract Documents, before exercising any remedy the Contractor shall give written notice to Developer at the address above specifying the breach and the steps necessary to cure the breach. Developer shall have the right and power, within thirty (30) days after receipt of such notice, to cure or cause the breach to be cured, if it so elects, before Contractor exercises any of its remedies under the Contract Documents.

1.7 INTERESTED PARTY DISCLOSURE:

a. Contractor acknowledges that an appropriate disclosure of interested parties, as required under Section 2252.908, Texas Government Code, and meeting the requirements of Texas Ethics Commission Form 1295, has been submitted to the Owner.

ARTICLE II. DEFINITIONS

2.1 DEFINITIONS. The following terms shall be defined as described below, unless such definition is expressly modified by the Contract Documents. Any capitalized terms used in the Contract Documents not defined in this section shall have the meaning assigned to such term under the Contract Documents.

a. Actual Field Cost. Includes the cost of all workmen, such as foremen, timekeepers, mechanics, and labourers, and all materials, supplies, teams, trucks, and rentals on machinery and equipment for the time actually employed or used on such Extra Work, plus actual transportation charges necessarily incurred if such equipment or machinery be not already on the job together with all power, fuel, lubricants, water, and similar operating expenses;

also all necessary incidental expenses, incurred directly on account of such Extra Work, including Social Security, Old Age Benefits, and other payroll taxes, and a rateable proportion of premiums on all Bonds and all insurance as may be required by any law or ordinance, or required by Engineer or Owner, or as agreed to by them.

b. Bid. The offer or proposal of a Bidder submitted on the prescribed form setting forth the prices for the Work to be performed.

c. Bond(s). Performance bonds, maintenance bonds and payment bonds, or any of them, as required by the Contract Documents.

d. Certificate of coverage. A copy of a certificate of insurance, a certificate of authority to self-insure issued by the commission, or a coverage agreement (TWCC-81, TWCC-82, TWCC- 83, or TWCC-84), showing statutory workers’ compensation insurance coverage for the person’s or entity’s employees providing services on a project, for the duration of the project.

e. Change Order. A document signed by Contractor, Engineer and Owner and entered into in accordance with the Contract Documents that authorizes an addition, deletion, or revision in the Work or an adjustment in the Contract Price or the time for completion.

f. Claim. A “Claim” is a claim, demand, or assertion by the Contractor seeking for itself or on behalf of a Subcontractor or supplier: adjustment or interpretation of any Contract term, including without limitation, adjustment of the Contract Price or Contact Time; payment of money; relief from obligations; or other relief or recovery with respect to the terms of the Contract. The term “Claim” also includes other disputes and matters in question asserted by the Contractor (whether for itself or on behalf of a Subcontractor or supplier) arising out of or relating to the Contract.

g. Contract. The entire and integrated written agreement between the Owner and Contractor concerning the Work. The Contract supersedes prior negotiations, representations, or agreements, whether written or oral.

h. Contract Documents. In addition to this Contract, the Contract Documents include: the Invitation to Bidders, Instructions to Bidders, Bid, the Contract, Technical Specifications, Plans, Change Orders, any written amendment to the Contract signed by both Contractor and Owner, Written Work Orders, written interpretations of the Contract or addenda issued by Engineer, and all other documents designated as incorporated by reference. Documents incorporated by reference are Contract Documents, whether attached or not. Approved Shop Drawings and other Contractor’s submittals, inspections and reports, such as testing of subsurface and physical or environmental conditions, are not Contract Documents.

i. Contract Price. The amount of money stated in the Contract as payable by Owner to Contractor for timely completion of the Work in accordance with the Contract Documents, plus or minus any increases or decreases to the initial Contract Price agreed to by Owner as provide by the Contract.

j. Contract Time. The number of days or the dates stated in the Contract to achieve Final Completion, expressed as a number of calendar days or as a reference to the date of Final Completion. If the Contract Time is measured by calendar days, each and every calendar day shall be counted against the Contract Time. Also includes “duration of the project.”

k. Contracting Information. The following information maintained by a governmental body or sent between a governmental body and a vendor, contractor, potential vendor, or potential contractor:

i. Information in a voucher or contract relating to the receipt or expenditure of public funds by a governmental body;

ii. Solicitation or bid documents relating to a contract with a governmental body;

iii. Communications sent between a governmental body and a vendor, contractor, potential vendor, or potential contractor during the solicitation, evaluation, or negotiation of a contract;

iv. Documents, including bid tabulations, showing the criteria by which a governmental body evaluates each vendor, contractor, potential vendor, or potential contractor responding to a solicitation and, if applicable, an explanation of why the vendor or contractor was selected; and

v. Communications and other information sent between a governmental body and a vendor or contractor related to the performance of a final contract with the governmental body or work performed on behalf of the governmental body.

l. Contractor Parties. The Contractor, Subcontractor, supplier and their respective agents, representatives or employees, or any of them.

m. Engineer. The design consultant so identified in the Contract, or such other firm that Owner may designate, is herein called Engineer and is to act as Owner’s representative, assume all duties and responsibilities, and have the rights and authority assigned to Engineer in the Contract Documents in connection with completion of the Work in accordance with the Contract Documents.

n. Extra Unit Price Items. All extra unit price items or alternate unit price items so specified in the Bid.

o. Extra Work. All work that may be required by Engineer or Owner to be done by Contractor to accomplish any change, alteration, or addition to the Work shown upon the Plans, implied by the Technical Specifications, or otherwise within the Contract Documents and not covered by Contractor’s Bid. Notwithstanding the foregoing, Extra Unit Price Work required by Engineer or Owner as described herein is not included in the definition of Extra Work.

p. Final Completion. The date on which the entire Work or an agreed portion thereof is complete in strict conformance with the Contract Documents. If any governmental entity has jurisdiction to approve or accept Contractor’s work on the Project, or any portion thereof, Final Completion is not achieved unless and until written approval or acceptance of the entity is received.

q. Force Majeure. Fire, flood, or act of God, earthquakes, hurricanes, tornadoes, epidemics, war, riot, civil disturbance, sabotage, terrorism, governmental or judicial restraint but only to the extent such event (i) is beyond the control of and cannot be reasonably anticipated by, or the effects alleviated by, the Contractor and (ii) prevents the performance of the Work.

Events not specifically listed herein shall not constitute events of Force Majeure.

r. Hazardous Environmental Condition. The presence at the Site of Asbestos, PCBs, Petroleum, Hazardous Waste, Contaminants, or Radioactive Material in such quantities or circumstances that may present a substantial danger to persons or property exposed thereto in connection with the Work.

s. Indemnified Parties. Owner, Engineer, and the officers, directors, employees, agents, and representatives of each such party.

t. Laws and Regulations. Any and all applicable federal, state and local laws, rules, regulations, codes, and orders of any and all governmental bodies, agencies, authorities, and courts having jurisdiction and any and all rules of common law pertaining to the Contractor’s services, the Site, Contractor’s employees and Subcontractor’s employees and/or the Work, and those of any other governmental entities with jurisdiction, including, without limitations all applicable laws of the State of Texas, Chapter 411 of the Texas Labor Code, Title VII (Equal Employment Opportunity) of the Civil Rights Act of 1964, The Occupational Safety and Health Act of 1970, The National Environmental Policy Act, The Federal Water Pollution Control Act, The Clean Air Act, The Clean Water Act, The Toxic Substance Control Act, The Resource Conservation and Recovery Act, and all amendments thereof.

The agencies charged with the administration and enforcement of the Laws and Regulations include, but are not limited to, the Department of the Interior, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, the Environmental Protection Agency, the U.S. Corps of Engineers, the National Fire Protection Association, the U.S. Geological Survey, the Minerals Management Service, the Texas Commission on Environmental Quality, the county in which the Owner is located, and the municipality, as applicable, in whose corporate or extraterritorial jurisdiction the Owner is located. Certain of the specific regulations that may be applicable to the Work are the Occupational Safety and Health Construction and General Industry Standards (29 CFR Part 1926 and 1910), and various environmental regulations.

u. Notice to Proceed. A written notice given by or on behalf of Owner to Contractor fixing the date on which the Contract Time will begin to run and on which Contractor shall start to perform the Work.

v. Plans. That part of the Contract Documents which graphically shows the scope, extent, and character of the Work to be performed by Contractor.

w. Project. The total construction on the Site, which may include work performed by the Owner or other Contractors.

x. Regulatory Agencies. Any and all governmental bodies, agencies, authorities, counties, municipalities, and courts having jurisdiction over the Project.

y. Shop Drawing. All drawings, diagrams, illustrations, schedules, and other data or information which are specifically prepared or assembled by or for Contractor and submitted by Contractor to illustrate some portion of the Work.

z. Site. The land or area furnished by Owner upon which the Work is to be performed, including rights-of-way and easements for access.

aa. Subcontractor. Includes all persons or entities performing all or part of the services the Contractor has undertaken to perform on the project, regardless of whether that person contracted directly with the Contractor and regardless of whether that person has employees. This includes, without limitation, independent Contractors, Subcontractors, leasing companies, motor carriers, owner-operators, employees of any such entity, or employees of any entity that furnishes persons to provide services on the project. “Services” include, without limitation, providing, hauling, or delivering equipment or materials, or providing labor, transportation, or other service related to a project. “Services” does not include activities unrelated to the project, such as food/beverage vendors, office supply deliveries, and delivery of portable toilets.

bb. Substantial Completion. The time at which the Work, or any portion thereof, is sufficiently completed in accordance with the Contract Documents so that Owner can occupy the entirety of the Work and put it to the full and unrestricted use for which it was intended, and all required certificates of occupancy and other permits, approvals, licenses, and documents required to occupy the Project by all entities, agencies and governmental authorities having jurisdiction over the Project and/or the operation and occupancy of the Project, as determined by the Engineer, have been given so that the Project may operate for its intended purpose, although the Project may still require minor miscellaneous Work and adjustment. The Work will not be considered substantially complete if any Project systems included in the Work are not operational as designed and scheduled, if designated instructions of Owner, Engineer, or Owner’s other representative in the operation of systems has not been completed, or any final finishes within the Contract Documents are not in place. The terms “substantially completed” or “substantially complete” as applied to all or part of the Work shall have the same meanings as set forth here.

cc. Technical Specifications. That part of the Contract Documents, including any written addenda thereto, consisting of written requirements for materials, equipment, systems, standards, and workmanship as applied to the Work, and certain administrative requirements and procedural matters applicable to the Work.

dd. Work. All obligations of the Contractor under the Contract Documents and all equipment, materials, labor, construction, management, supervision, services, and activities of every kind and nature, whether commenced or not, or completed or partially completed, undertaken by the Contractor, provided or to be provided by the Contractor, required of the Contractor, or inferable from the Contract Documents to perform and fulfill all of the Contractor’s obligations pursuant to the Contract Documents.

ee. Worker. Employees of the Contractor or Subcontractor, hired to perform job services on the Project.

ff. Written Work Order. A written statement to Contractor signed by Owner or Engineer ordering an addition, deletion, or revision in the Work, or responding to differing or unforeseen subsurface or physical conditions. A Written Work Order will not change the Contract Price or Contract Time, but is evidence that the parties expect that the Written Work Order will be incorporated in a subsequently issued Change Order following agreement by the parties as to its effect, if any, on the Contract Price or Contract Time.

ARTICLE III. CONTRACT DOCUMENTS

3.1 INTERPRETATION OF CONTRACT DOCUMENTS AND PHRASES

a. Whenever the words “required,” “permitted,” “designated,” “considered necessary,” “prescribed,” or words of like import are used, it shall be understood that the requirement, permission, order, designation, or prescription of Engineer is intended and similarly, the words “approval,” “acceptable,” or “satisfactory,” or words of like import shall mean approved by, or acceptable to, Engineer.

b. Whenever in the Technical Specifications or Plans accompanying this Contract, the terms or descriptions of various qualities relative to finish, workmanship, or other qualities of similar kind, which cannot from their nature be specifically and clearly described and specified, are necessarily described in general terms, the fulfillment of which must depend on individual judgment, then, in all such cases, any question of the fulfillment of said judgment of said Technical Specifications or Plans shall be decided by Engineer, and said Work shall be done in accordance with Engineer’s interpretations of the meaning of the words, terms, or clauses defining the character of the Work.

c. The parties hereto agree that these Contract Documents shall not be construed against any party hereto on the basis that such party did or did not draft the Contract Documents.

d. The section headings used herein are for convenience only and shall not affect the construction or terms hereof.

e. If there is an irreconcilable conflict between Contract Documents, the document highest in precedence shall control, but except in such event and to avoid such conflict, every construction of provisions shall be that each is in aid to, or supplementary to or complementary of, each other provision, to control and secure for Owner the completion of the entire Work in an expeditious, orderly and coordinated manner. The precedence, from highest to lowest, shall be in the following order:

i. Permits for the Work from governmental authorities as may be required by law

ii. Contract between Owner and Contractor

iii. Plans and Specifications

The most recently issued document takes precedence over previously issued forms of the same document. Modifications take precedence over applicable previously issued documents under items ii and iii above. Detailed drawings shall take precedence over general drawings. In the event of any discrepancies between the Plans and Technical Specifications, or likewise, in the event of any doubt as to the meaning and intent of any portion of the Contract, including the Technical Specifications or Plans, Engineer shall define that which is intended to apply to the Work.

f. When any period of time is referred to in the Contract Documents by days, it will be computed to exclude the first and include the last day of such period.

3.2 EXHIBITS. All Work shall be done and all materials furnished in strict conformity with the Contract Documents, all of which are hereto attached (or considered as if attached) and are hereby made a part of this Contract.

3.3 ACCURACY. These Contract Documents, including the Technical Specifications, Plans, and Bid, are intended to show all Work to be done and material to be furnished hereunder.

Contractor understands and acknowledges that errors may exist in the Contract Documents and that the Owner does not warrant the accuracy or sufficiency thereof. The Contractor accepts any lack of completeness of the Contract Documents, including the Plans, Technical Specifications and Bid, and acknowledges that such documents were sufficiently detailed, accurate and comprehensive to enable Contractor to have adequately estimated and established the Contract Price and to perform the Work within the time for completion.

3.4 TECHNICAL SPECIFICATIONS

a. Technical Specifications are of the abbreviated, simplified, or streamlined type and include incomplete sentences. The omission of words or phrases such as “Contractor shall,” “in conformity therewith,” “shall be,” “as noted on Plans,” “according to Plans,” “a,” “an,” “the,” and “all,” are intentional. Omitted words or phrases shall be supplied by inference in same manner as they are when a “note” occurs on Plans.

b. The Technical Specifications are interpreted to require that Contractor shall provide all items, articles, materials, operation or methods listed, mentioned, or scheduled either on Plans or specified herein, or both, including all labor, materials, equipment, and incidentals necessary and required for their completion.

c. Whenever the words “designated,” “submitted,” “observed,” or similar words or phrases are used, it shall be assumed that the word “Engineer” follows the verb as the object of the clause, such as “observed by Engineer.”

d. All references to standard Technical Specifications or manufacturer’s installation directions shall mean the latest edition thereof on the date Bids are due unless specifically noted otherwise

e. Reference to technical society, organization, or body is made in Technical Specifications in accordance with following abbreviations:

AASHTO American Association of State Highway and Transportation Officials

ACI American Concrete Institute

ASTM American Society for Testing Materials

AWWA American Waterworks Association

FS Federal Specifications

PCA Portland Cement Association

IEEE Institute of Electrical and Electronic Engineers

NEC National Electric Code

UL Underwriters’ Laboratories

AISI American Iron and Steel Institute

API American Petroleum Institute

IPCEA Insulated Power Cable Engineers Association

NEMA National Electrical Manufacturers Association

AWS American Welding Society

PCI Prestressed Concrete Institute

AISC American Institute of Steel Construction

ANSI American National Standards Institute (Formerly ASA)

f. Some Technical Specification items cover construction requirements and materials in comprehensive manner, and only pertinent portions of these items apply.

3.5 MANUFACTURER’S REPRESENTATIVE. When required by Technical Specifications, Contractor shall provide the services of trained, qualified technicians to check final equipment installation, to assist as required in placing same in operation, and to instruct operating personnel in the proper manner of performing routine operation and maintenance of the equipment.

ARTICLE IV. PRELIMINARY MATTERS

4.1 CONSTRUCTION SCHEDULE. The Contractor shall submit a construction schedule based on critical path method (“CPM”) or other method specifically approved by the Engineer, which is sufficiently accurate, during the entire Contract Time to determine if the Contractor is performing on schedule.

Within 10 days following the end of each month after the Notice to Proceed, or at more frequent intervals when requested by Engineer, the Contractor shall submit an updated and revised schedule. The revision must be current as of the immediate past schedule period. Each element shall be updated to reflect the actual start and stop dates, actual duration and actual number of days worked, anticipated changes to future start and stop dates, and changes due to change in amount of Work or Contract Time. When requested by Engineer, the Contractor will submit only that portion of the CPM or other approved method submittal required.

Failure to meet any schedule submission dates, or to comply with any requested submittal, or failure to provide an acceptable submittal will be cause to withhold payment of all or portions of the next scheduled monthly payment or any portions of future monthly payment until an acceptable submittal has been made.

At a minimum, the Contractor shall make available at least one individual with authority to maintain and revise the schedule as needed to reflect the actual and planned work schedule. This individual is to cooperate with Engineer’s staff and be available to discuss the schedule with Engineer’s staff when requested.

4.2 SCHEDULE OF VALUES. If directed by Engineer, following the Notice to Proceed, the Contractor shall submit, within 10 calendar days, a schedule of values showing the subdivision of the Contract into various items of payment of construction. This schedule of values must state quantities and prices to the smallest common measurement, e.g., cubic yard, pound, linear feet, etc., which will then be used as a basis for computing the value of Work to be paid by the Owner in partial payments. Except for work associated with prices bid as supplemental items listed in the Bid, the schedule of values will also be used to determine the value of like or similar work that may be added to or deleted from the Contract. The above-mentioned schedule of values must be in a format and of such detail to be acceptable to the Engineer. No partial payments will be made unless Contractor has submitted the schedule of values, and the Engineer accepts such schedule. Engineer may require that the schedule of values be cross-referenced to the CPM with each item on the schedule of values to show which CPM activity corresponds to or includes the item.

4.3 KEEPING PLANS AND SPECIFICATIONS ACCESSIBLE. Contractor shall be furnished with five copies of all Plans and Technical Specifications without expense to him, and shall keep one copy of each constantly accessible on the Site.

4.4 SALES TAX. 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. Contractor shall not collect Texas sales and use taxes from Owner with respect to this Contract. Contractor and all Subcontractors to Contractor shall issue a Texas Sales and Use Tax Exemption Certification with respect to, and shall not pay Texas sales and use taxes on, all purchases of the following items that are exempt from Texas sales and use taxes pursuant to Texas Tax Code § 151.311: (i) tangible personal property that will be incorporated into Owner’s realty; (ii) tangible personal property that is necessary and essential for the performance of this Contract and is consumed entirely on the job site; and (iii) taxable services for use in the performance of this Contract that are performed at the job site and are either integral to the performance of this Contract or expressly required to be provided by this Contract. In addition, Contractor and all Subcontractors to Contractor (i) shall not include any provision for Texas sales and use taxes with respect to such exempt items in any bid or contract amount, and (ii) shall pass on to Owner cost savings due to the exempt status of such exempt items. Contractor’s contracts with all Subcontractors to Contractor shall include the foregoing provision regarding the exemption from Texas sales and use taxes. The Certification is included as Attachment A.

4.5 SHOP DRAWING SUBMITTALS

a. Shop Drawing Submittal List. Contractor shall submit for the Engineer’s review a complete Shop Drawing submittal list, with each submittal to be numbered with a consecutive numbering system, within 15 days after the date of the Notice to Proceed. The list is to include Shop Drawings for all equipment and manufactured materials to be furnished under this Contract. The list should also include, but is not limited to, the following,:

i. Name (description) of submittal

ii. Applicable specification number or drawing number

iii. Scheduled submission date

iv. Latest date acceptable submittal required to prevent delay in purchase

The Engineer may waive all or portions of the submittal requirements for any Shop Drawing on the submittal list. No payment will be made for the Work until the Engineer accepts the submittal list.

b. Contractor’s Duties. The Contractor shall review Shop Drawings prior to submittal to verify field measurements, field construction criteria, manufacturer model number and other pertinent data, to ensure conformance with the Contract Documents, coordination with other submittals, and schedule for submittal and review.

The Contractor must have acceptable Shop Drawings at the Site. Failure of the Contractor to supply acceptable drawings will be deemed sufficient cause for Owner to delay the Work at Contractor’s risk and expense until such drawings are available. This procedure shall not entitle Contractor to an extension of time

The Contractor shall stamp and sign the submittals with a stamp that states: “This submittal is certified to be in conformance with Contract Documents unless noted herein.” The Engineer will rely on this statement when performing the review of the submittal. All submittals without this certification will not be reviewed and will be returned to the Contractor for proper submission.

The Contractor shall schedule submittals to allow sufficient time for review process and to coordinate submittals with the Project schedule to prevent delay to Work.

No Work may be performed in connection with fabrication, manufacturer, or purchase of materials or equipment until submittals have been reviewed and marked “No Exception Taken” or “Make Corrections Noted.” Work performed on submittals marked “Make Corrections Noted” must be in accordance with all corrections noted thereon.

The Contractor shall correct submittals and resubmit or shall prepare new submittals for review by Engineer for all submitted items marked “Submit Specified Item,” “Rejected,” or “Revise and Resubmit.” No claims for extra time or delays will be considered due to any time required for review of submittals or resubmittals.

c. Engineer’s Duties. The Engineer shall review submittals as quickly as possible, but not later than 14 calendar days from the date of submittal, with a thorough review and consistent with the type of information submitted. Engineer’s failure to comply with such review period shall not constitute the basis of a Claim by Contractor.

Such review by the Engineer shall be for the sole purpose of determining the general conformity of said Shop Drawings or schedules to the Contract Documents and shall not relieve the Contractor of his duty as an independent Contractor as set forth herein. It is expressly understood and agreed that the Engineer does not assume any duty to pass upon the propriety or adequacy of such drawings or schedules, or any means or methods reflected thereby, in relation to the safety of any person or property during Contractor’s performance hereunder. The Engineer’s review of drawings will not constitute an acceptance of all dimensions, quantities, and details of the material, equipment, device, or item shown and does not relieve the Contractor from any responsibility for errors or deviations from the Contract requirements.

The Engineer shall clearly mark the required four copies of submittals with any required corrections and shall stamp drawings noting the appropriate action to be taken, signature, and date.

d. Form of Submittal. The Contractor must submit four copies of all submittals. One copy of the appropriately marked submittal will be retained at the Engineer’s office, one copy will be retained at the Engineer’s field office, and two copies will be returned to the Contractor for Contractor’s use. The Engineer will not mark additional copies for the Contractor. If the Contractor desires additional copies, they must be marked by the Contractor.

The Contractor shall submit a complete copy, with each submittal, of relevant Contract Document items that have been marked by the manufacturer to certify compliance with the Contract Document item and noting each point of deviation.

The Contractor must also submit relevant literature, catalog cuts, or written descriptive matter backing up all points of the Contract Documents item compliance.

Contractor must submit comparative life cycle, cost, performance, or other data supporting consideration of all points of any Contract Documents item deviation.

Contractor shall, with each submittal, carefully and completely cross-reference any relevant Contract Document item requirements.

When required by an individual Contract Document item, the Contractor shall submit a written step-by-step test plan for functional checkout and demonstration test of the respective equipment.

Submissions that do not conform to the form of submittal as outlined herein will not be considered and will be returned to the Contractor for proper submission.

e. Installation Drawings. When required by individual items of the Technical Specifications, the Contractor shall provide, for the Engineer’s use, two copies of installation drawings and instructions consisting of all necessary details required for field assembly, erection, and installation of a particular component of Work, including, but not limited to, unloading and storage instructions, layout/placement drawings, erection sequences, assembly drawings, connection details, and wiring diagrams.

4.6 VARIATIONS AND ALTERNATE DESIGNS. Foundations, structural supports, electrical work, and piping, when shown on Plans for items of equipment, may be changed if necessary to accommodate any furnished equipment. Every effort has been made to design foundations, structural supports, electrical work, and piping so that no changes will be necessary; however, exact dimensions and size of subject foundations and structural supports and exact electrical and piping installations cannot be finally determined until various items of equipment are purchased and manufacturer’s certified Shop Drawings are secured. Structural or electrical changes must be signed and sealed by a professional engineer licensed in the State of Texas. If such changes are required, Contractor shall make such changes, after prior consultation with the Engineer, and at no cost to Owner.

If substitute items of equipment are authorized that vary materially from those shown on Plans, Contractor shall prepare equipment data and detailed drawing covering the necessary modifications and submit such to the Engineer for approval. Contractor shall make the drawings in the same size as the Plans and of comparable quality. Contractor shall make payment of any charges resulting from such modifications, including engineering charges for checking modifications.

If alternate design features are proposed for the convenience of the Contractor, the Contractor shall submit design calculations and detailed drawings covering the proposed changes and any required modifications of the…