ESBD_556287_1790181498999_Attachment 3 - Supplementary General Conditions.pdf

This is a Supplementary General Conditions attachment to a state and local contract opportunity. The document establishes two primary contractual requirements for the contractor. First, the contractor must obtain and maintain umbrella liability insurance during the entire contract term in an amount equal to one hundred percent (100%) of the total awarded contract sum, including any selected alternate pricing amounts. This umbrella policy must provide coverage as broad as the primary liability coverages and must include "drop down" coverage provisions to ensure protection when underlying primary insurance coverage limits are insufficient or exhausted. Second, the contract establishes liquidated damages at a fixed rate of three hundred dollars ($300.00) per day, which will be assessed for contract non-compliance or delays.

The insurance and damages provisions reflect standard risk allocation mechanisms typical of construction or service contracts. The umbrella liability requirement ensures comprehensive coverage protection proportional to the contract value, while the liquidated damages clause provides a predetermined remedy for performance failures without requiring the government entity to prove actual damages. These terms establish clear financial and insurance obligations that the contractor must satisfy throughout the contract period.