REQUEST FOR QUALIFICATIONS

CONSTRUCTION MANAGER AT RISK

FOR

NEW CITY SERVICES EXPANSION

FOR THE CITY OF APACHE JUNCTION

PROJECT NO. 25220

CITY OF APACHE JUNCTION

300 EAST SUPERSTITION BOULEVARD

APACHE JUNCTION, ARIZONA 85119

Submittal Deadline: July 20, 2026, at 2:00 P.M. Arizona Time

REQUEST FOR STATEMENT OF QUALIFICATIONS FOR

CONSTRUCTION MANAGER AT RISK SERVICES

PROJECT NO.: 25220

NEW CITY SERVICES EXPANSION

Notice is hereby given that the City of Apache Junction (“City”) seeks sealed Statements of Qualifications (“SOQ”) for a construction manager at risk (“CM@R”) for pre-construction and construction services for the City Services Expansion (the “Project”) within the corporate city limits of Apache Junction.

Based on the submittals, the City will produce a final list of qualified respondents and will conduct interviews with the respondents on the final list with the intent to negotiate an agreement for the Project with a qualified firm. Information on the Request for Qualifications and requirements are available online at https://www.apachejunctionaz.gov/826/Current-Solicitations

RFQ Issued: June 18, 2026

Pre-submittal Meeting:

Mandatory, In-person

June 29, 2026 @ 11:00 A.M.

Questions Due: July 9, 2026 @ 11:00 A.M.

RFQ Due Date: July 20, 2026 @ 2:00 P.M.

Number of Responses: One (1) original and Seven (7) copies

Inquiry Contact: Anna Davis, Procurement Administrator Adavis1@apachejunctionaz.gov Project Number 25220

Responses Mailing Address: City Clerk 300 East Superstition Boulevard Apache Junction, AZ 85119

Response Delivery Location: City Clerk 300 East Superstition Boulevard Apache Junction, AZ 85119 https://protect.checkpoint.com/v2/r01/___https:/www.apachejunctionaz.gov/826/Current-Solicitations___.YXAzOmVkc21hbmFnZW1lbnQ6YzpvZmZpY2UzNjVfZW1haWxzX2F0dGFjaG1lbnQ6YTQ0ZjA5NmM5MzEyMDk4MTE1ZjVhODQxZmUzYzdkMGU6NzphOGJhOmFhNjZlYTc4ZWVmMTg3N2RmNjQwYzk0NTIzOWQ3Mzc5M2ZhYjdmNTlkMzQ5YzZkMzUxNGU4MmQ2Njk0ODQwNTY6cDpUOkY mailto:Adavis1@apachejunctionaz.gov

REQUEST FOR STATEMENT OF QUALIFICATIONS FOR

CONSTRUCTION MANAGER AT RISK (CM@R) SERVICES

PROJECT NO.: 25220

City Services Expansion

1. PURPOSE

The City prepared this RFQ for the purpose of selecting a qualified licensed CM@R to provide comprehensive construction services, including pre-construction services, for the expansion of city services, to be located near the southwest corner of Ironwood Drive and the planned Horton Drive in Apache Junction. Based on Responses to this RFQ, the City will produce a Final List of Qualified Respondents with the intent to negotiate a contract for the Project with the Qualified Firm.

2. DEFINITIONS

A. “City” shall mean the City of Apache Junction.

B. “CM@R” means Construction Manager at Risk.

C. “Firm” means any individual, corporation, partnership, or other business entity, organization, or agency that has experience in the CM@R project delivery method and are interested in submitting a Response.

D. “Final List” shall mean the list of Respondents who the City determines are the most qualified based on their interviews and responses to this RFQ.

E. “Project” means the new City Services Expansion, Project No. 25220.

F. “Qualified Firm” shall mean the highest qualified Respondent on the

Final List.

G. “Qualified Respondent” shall mean a Respondent that is on the Final

List.

H. “Respondent” means any individual, corporation, partnership, or other business entity, organization, or agency that submits a Response to this RFQ.

I. “Response” means the response to this RFQ submitted to the City by the submittal due date by a Respondent.

J. “RFQ” means this Request for Qualifications.

3. GENERAL DESCRIPTION OF PROJECT

In October of 2021, Apache Junction City Council annexed 6,600 acres (10 square miles), representing the first section out of a 275-square-mile swath of master-planned land known as “Superstition Vistas”. While the Arizona State Land Department still owns the majority of this tract, these 6,600 acres were the first to be sold and developed and will be a new economic driver for the City.

D.R. Horton was the winning bidder on 2,783 acres bounded by the Elliot Road alignment on the north, the Ray Road alignment on the south, Meridian Drive on the west and the Idaho Road alignment on the east. D.R. Horton is developing the western half and Brookfield Residential Properties is developing the eastern half.

The developers have set aside acreage for commercial use, schools, parks and recreation, and a municipal facilities site.

The municipal facilities site is a 22-acre parcel located on the southwest corner of Ironwood Drive and Horton Drive, in the D.R. Horton developed community called “Radiance at Superstition Vistas”. This new city facility will benefit all residents by offering new public safety, library and parks facilities.

In the past 12 months, the City issued solicitations for project management / construction management (“PM/CM”) and architectural/engineering (“A/E”) services for this project. EDS Management was selected as the City’s PM/CM consultant, and Arrington Watkins Architects (“AWA”), in association with Richard Kennedy Architects (“RKA”), was selected as the A/E team.

In 2025, this project team initiated master planning services for the Project. The Master Plan Report is anticipated to be published in July 2026. The design phase is anticipated to begin Summer 2026 and will take approximately 12-months.

The program, as identified in the Master Plan includes of the following:

• Design and Construction of:

o New 27,000 square foot police substation o New 15,000 square foot branch library o New 5,000 square foot park maintenance building with material corrals and laydown space o Secured and unsecured parking o Associated civil, landscaping, irrigation, and hardscape o Offsite road improvements

• Design Only – New Community Park with Urban Fishing Lake: The park and lake are being designed by the AWA/RKA design team, while construction will be performed by the developer. The selected CM@R should demonstrate its ability to effectively coordinate with the adjacent developer to ensure successful project delivery and integration of the park and lake improvements.

The estimated construction budget for the Project is approximately $49,000,000.

4. SCOPE OF WORK

4.1 Generally. The Project will be constructed pursuant to A.R.S. § 34- 601 et seq. The CM@R services will include the pre-construction services and the preparation and submission of the Guaranteed Maximum Price (“GMP”) under a Pre-Construction Contract and then complete construction services for the construction of the Project under a Construction Contract.

4.2 Pre-Construction Contract. After selection, the Qualified Firm shall enter into a pre-construction agreement with the City (the “Pre-Construction Contract”). The Pre-Construction Contract scope of work may include, but not be limited to, the following:

• Provide design assistance as part of the Project Design Team with City staff and AWA/RKA, including selection of durable and cost-effective materials, systems and equipment that meet design intent.

• Provide value analysis services, value engineering, and offer cost savings suggestions and best value recommendations.

• Provide constructability studies and reviews.

• Evaluate design for conformance with current building code requirements.

• Provide site logistics studies and schedule strategies for working alongside the developer who may be constructing the park & lake at similar time.

• Create Project scheduling, including pre-construction, permit acquisition, construction milestones, and critical path.

• Provide and initiate long-lead procurement plan.

• Prepare construction budgets at 30% and 60% design completion at a minimum, and more if this brings value to the project. Real-time cost estimating is encouraged to support key decision making to keep project on budget.

• Provide Guaranteed Maximum Price.

• If requested, oversee subsurface investigations (e.g. geotechnical, potholing, etc.).

• Coordinate with utility providers of the Project.

4.3 Construction Services Contract. After the City accepts the GMP provided by the Qualified Firm, the City and the Qualified Firm will enter into a GMP contract for the complete construction services for the construction of the Project (the “Construction Services Contract”). The Qualified Firm will be responsible for construction means and methods. The scope of work under the Construction Services Contract may include, but not be limited to, the following:

• Serve as the general contractor during construction.

• Arrange for procurement of materials and equipment, accept delivery of such materials and equipment, and secure all items delivered to the Project site until their inclusion into the Project.

• Manage the Project schedule, including updating critical path items.

• Oversee site access and logistics including, without limitation, laydown and staging areas, temporary utilities, temporary office space, temporary subcontractor parking, temporary signage, access and traffic/personnel control and fencing and security.

• Provide quality control for the construction of the Project.

• Maintain a safety program for the Project during construction.

• Attend and participate in weekly Project coordination meetings with the City, the Architect, and the Design Team.

• Coordinate with utility providers during construction the Project.

• Bond and insure the construction of the Project.

• Comply with all federal, state and local permitting requirements.

• Provide commissioning and closeout services.

5. PRE-SUBMITTAL CONFERENCE

A MANDATORY pre-submittal meeting will be held in-person on June 29,2026 at 11:00A.M., Arizona Time, at the City of Apache Junction Council Chambers located at 300 E. Superstition Blvd, Apache Junction, AZ 85119. At this meeting, the City’s Project Team will discuss the scope of work, general contract issues, and respond to questions from Firms. Respondents who do not attend the mandatory pre-submittal meeting will not be considered for the Final List.

6. CONTENTS OF RESPONSE

A selection committee (“Selection Committee”) will be scoring the responses.

Responses that do not follow this section will have points deducted. Responses shall be scored in accordance with Section 8 and must contain the following information in the following order:

6.1 Firm Information.

• Provide a general description of the Firm that identifies how the Firm is best suited for the Project.

• Explain the legal organization of the Firm. Identify the location of the

Firm’s principal office and percentage of the work to be done locally.

• List the Arizona professional and contractor licenses held by the Firm and the key personnel.

• For the past five (5) years, list all contracts and subcontracts entered into by the Firm or its principal employees for services that have been terminated unilaterally or by mutual consent, and the circumstances that led to the termination. List all projects for which the Firm and/or its employees have been dismissed as a result of a dispute of the rendering of services. Briefly describe the circumstances and the outcomes of each.

• For the past five (5) years, list any litigation against the Firm and any of its principal employees or subconsultants/subcontractors, and the disposition of the litigation, and any updates if still pending, if any.

6.2 Relevant Experience. Identify at least three (3) comparable projects in which the Firm served as the CM@R. City staff may contact the owner of a project for a reference. For each comparable project, provide the following:

• Owner of the project.

• Contact information for the owner and any other relevant stakeholders. The Firm must provide at least two (2) contacts for each project.

• Description of project.

• Role of the Firm in the project.

• Identify the percent of self-performed work (if any) and what trade(s) were self-performed.

• Specify services provided during design phase, (cost of estimating, scheduling, value engineering, etc.).

• Original contracted construction cost and the final construction cost.

• Date construction began and when the project was substantially complete.

6.3 Experience of Key Personnel. List each key person who would be involved in this Project and provide the following:

• The key person’s professional qualifications, experience, professional affiliations or designations, and any other information pertaining to their ability to perform their duties on this Project.

• The role the key person will play in the Project.

• Length of time with the Firm.

• Percentage of time to be committed to each phase of the Project.

• At least two (2) comparable projects in which the key person played a primary role and include the information requested in Section 6.2 for each project.

• An organization chart showing key personnel. List each of the key professionals that would be involved in the Project.

6.4 Current Workload and Ability to Start Immediately. Provide a table or list that summarizes the current major assignments of all key team members, percentage of time committed to each assignment, anticipated end date of major assignments, and percentage of time to be committed to this project. Also include a statement as to when the team would be available to start work on the Project.

Firms that demonstrate their ability to start immediately and to effectively manage this Project, in addition to their current workload, may be awarded full points for this category.

6.5 Project Understanding and Approach to Performing Required Services.

• Describe the Firm’s understanding, project management approach, ensuring client satisfaction, and team organization during pre-construction and construction phase services.

• Describe systems used for planning, scheduling, estimating, risk management, managing construction, close-out and warranty processes.

• Briefly describe the Firm’s experience on quality control, dispute resolution, and safety management.

• The City has identified two (2) key issues for the project; (a) the ability to stay on budget and deliver value and (b) the ability to work with a developer on the same site. Please describe your approach in addressing these issues for the benefit of the project. In addition, identify up to (2) key issues your Firm has identified and how it would address those issues.

6.6 Subcontractor Selection Plan. Include in the Response the Firm’s proposed subcontractor selection plan. The proposed subcontractor selection plan must provide for the selection of subcontractors based on qualifications alone or in a combination of qualifications and price and shall not select subcontractors based on price alone.

6.7 Contract Exceptions. Submit exceptions to the Agreement, if any, with explanations for the exceptions and provide alternative language.

7. SUBMISSION OF RESPONSES

Responses shall include the following items. Responses that do not follow this section will be disqualified.

• Responses shall be sealed and contain one (1) signed original and seven (7) duplicate copies and shall be marked on the front in black lettering as: “CITY SERVICES EXPANSION, PROJECT NO. 25220.”

• Responses shall be limited to 15 content pages and does not include the cover page or the cover letter.

• Font must be at least 10 point.

• Cover page which includes Project name, project number, due date, and firm’s name, address, and phone number.

• Responses shall be organized based on the criteria in Section 6.

• Responses shall include a one-page cover letter indicating the Firm’s interest in this Project.

o The letter must be signed by a person duly authorized to execute the contract on behalf of the Respondent.

• Respondents shall confirm in the cover letter receipt of all addenda issued to this RFQ.

• Resumes for key personnel shall be limited to a maximum length of two (2) pages each and should be attached as an appendix to the Response.

• Provide a statement from an AM Best, Inc. rating of A or better surety company of the Firm’s bonding capacity and ability to meet the City’s insurance requirements. This should be attached as an appendix item to the Response.

Responses will be accepted in the City Clerk’s Office located at 300 East Superstition Boulevard, Apache Junction, Arizona, 85119 until July 20, 2026 at 2:00 P.M. Arizona time. Responses shall be marked on the front in black lettering as: “CITY SERVICES EXPANSION PROJECT NO. 25220”, along with the name and address of the Respondent.

Only one (1) submittal per Firm will be accepted. If multiple responses are received from Firms with common ownership interests or collective assets or is managed by the same individuals or other legal entities, such additional submittals will be deemed duplicitous and shall be disqualified from the RFQ process.

The City reserves the right to reject any and all Responses, to waive informalities and technicalities, and to suspend the procurement deadlines applicable to this process in its sole discretion.

Late or unsigned Responses will not be accepted.

Respondents shall confirm receipt of all addenda issued to this RFQ in its cover letter submitted with its Response. It is the Respondent’s sole responsibility to confirm receipt of all addenda issued to the RFQ. Failure to do so will result in the proposal being declared non-responsive. Respondents will NOT be notified of addenda. If addenda are issued, they will be published on the City’s electronic bidding platform at www.publicpurchase.com.

8. SELECTION CRITERIA AND SCORING

The selection criteria and relative weights for determining the order of Respondents on the Final List are as follows:

CRITERIA MAXIMUM SCORE

Firm Information 10 Relevant Experience 50 Experience of Key Personnel 40 Current Workload and Ability to Start Immediately 20 Project Understanding/ Approach to Performing Required Services 50 Subcontractor Selection Plan 10 Clarity and Thoroughness of Response 20

Total Maximum Points 200

Please be advised that failure to provide the information required in Section 6 and 7 will result in disqualification.

Please note ranked based scoring will be applied. The SOQ scoring results will create the Final List for interviews. The SOQ score will not carry over to interview scoring.

9. SELECTION PROCESS

9.1 Selection Committee. The Selection Committee will evaluate each Response in accordance with the criteria set forth in Section 6, including verifying references from the owners set forth in the Relevant Experience section. The Selection Committee will produce a Final List of Qualified Respondents and will conduct interviews with the Qualified Respondents.

9.2 Interviews. The City will invite at least the top three (3) Qualified

Respondents to interview. The City will send a letter outlining the criteria to be addressed in the interview and the detailed scoring of the process to the Qualified Respondents who accept the invitation to interview. After interviews, the City will enter into negotiations with the Qualified Firm to enter into a Pre-Construction Contract. If the City is unsuccessful in negotiating a contract with the Qualified Firm, the City may terminate negotiations with the Qualified Firm and enter into negotiations with the next lower ranked Qualified Respondent until a contract is executed. The City may decide to terminate the selection process at any time.

9.3 Schedule: The following tentative schedule has been prepared for this selection process:

• RFQ Issued June 18, 2026

• Pre-Submittal Conference June 29, 2026 at 11:00 A.M.

• RFQ Due Date July 20, 2026 at 2:00 P.M.

• Interviews August 18, 2026

• Execution of Contract October 2026

10. INQUIRIES

All questions regarding this RFQ shall be made in writing to Anna Davis, Procurement Administrator, via Public Purchase Portal at no later than July 9, 2026, at 11:00A.M. All questions and answers will be posted as a formal Addendum to the RFQ, published on the City’s electronic bidding platform at www.publicpurchase.com as Q&A Clarifications.

11. BID PROTESTS

Other than a disqualification determination, any aggrieved person may protest the bid solicitation per Apache Junction City Code, Vol. I, § 3-7-8, Bid Protest and Appeal. The Apache Junction City Code is located at https://codelibrary.amlegal.com/codes/apachejunction/latest/overview.

12. GENERAL CONDITIONS

12.1 This RFQ does not commit the City to award a contract, to defray any costs incurred in the preparation of a Response, or to procure or contract for services.

12.2 The City reserves the right to cancel, in part or in its entirety, this RFQ including but not limited to selection schedule, submittal date, and submittal requirements. If the City cancels or revises the RFQ all Firms will be notified in writing by the City.

12.3 The City reserves the right to extend the date by which the submittals are due.

12.4 All submittals become the property of the City. Except for the name of Qualified Respondents on the Final List, no information contained in a Response shall be made public until after award and execution of a contract with the Qualified Firm.

12.5 The City reserves the right to request additional information and/or clarifications from any or all Respondents.

Attachments:

Sample CM@R Pre-Construction Services Contract Sample CM@R Construction Services Contract Exhibit A: Scope of Work Exhibit B: Conceptual program Exhibit C: Contractor’s Response to Request for Qualification Exhibit D: Master Plan Site Plan

SAMPLE

PRECONSTRUCTION SERVICES AGREEMENT BETWEEN

CITY OF APACHE JUNCTION AND

FOR NEW CITY SERVICES EXPANSION

THIS AGREEMENT is made as of the ____ day of ________ 20_____ (the

“Effective Date”) by and between the CITY OF APACHE JUNCTION an Arizona municipal corporation (“City”), and _________________________________ an __________(“Contractor”), sometimes collectively referred to as the “Parties” or individually as a “Party”.

RECITALS

A. City requires certain preconstruction construction services in connection with City Services Expansion, Project No. 25220 (the “Project”).

B. Contractor asserts its willingness, ability, and qualifications to provide the labor, materials, equipment, and services (the “Work”) called for in this Agreement.

C. City and Contractor desire to set forth their respective responsibilities and the manner and terms upon which Contractor shall complete the Work.

D. City has complied with the public bidding requirements under

Arizona Revised Statutes (“A.R.S.”) Title 34, and Apache Junction City Code Vol.

I, Chapter 3: Administration, Article 3-7: Procurement Procedures.

AGREEMENT

NOW, THEREFORE, in consideration of the Recitals noted above, the mutual covenants and conditions below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. CONTRACT DOCUMENTS AND ORDER OF PRECEDENCE. The term “Contract Documents” as used in this Agreement shall mean this Agreement including Exhibits A through C, which are attached hereto and incorporated in this Agreement by reference, and any future amendments to this Agreement or the exhibits from the Request for Qualifications. The Contract Documents also include any special provisions and addenda issued prior to the execution of this Agreement and other documents listed in this Agreement and modifications issued after execution of this Agreement.

Should the Contract Documents contain any discrepancy or inconsistency, then the following order of precedence of Contract Documents shall apply to resolve the same:

1. this Preconstruction Agreement, including any amendments to the Preconstruction Agreement with most recent taking precedent over prior;

2. the Preconstruction Scope of Work (Exhibit A);

3. the Conceptual Program (Exhibit B);

4. Contractor’s response to the Request for Qualifications issued June

18, 2026 (Exhibit C).

Once the Construction Agreement is executed by Contractor and the City, this Preconstruction Agreement and its exhibits will be superseded and replaced by the Construction Agreement and its exhibits.

2. PRECONSTRUCTION SERVICES. Contractor shall provide the services set forth in this Section 2 and as set forth in this Preconstruction Scope of Services. Contractor shall perform the following required services, in addition to the services more fully described in Exhibit A, as expeditiously as is consistent with professional skill and care and the orderly progress of the Work:

2.1 Design Assistance. Contractor shall provide design assistance to the

Project as part of the Design Team. Contractor shall attend regular meetings with the City and Architect during the development of the Project in order to generally advise the City and Architect on the Project, including without limitation, costs, site use and improvements, selection of materials, systems and equipment.

Contractor shall use its unique expertise on the design process by providing recommendations as to construction feasibility; availability of materials and labor; time requirements for installation and construction; value engineering including factors to be considered relating to costs of alternative designs or materials, preliminary budgets and possible economies which may be achieved;

and such other matters as might facilitate the completion of the Project in a timely and economical manner.

2.2 Schedule. Within thirty (30) calendar days after Contractor is provided with the Schematic Design Documents from Architect, Contractor shall prepare a detailed construction schedule (the “Construction Schedule”) for the Project. Within thirty (30) calendar days after Contractor is provided with the Design Development Documents, Contractor shall prepare an updated Construction Schedule that coordinates and integrate the Architect’s design efforts with construction activities.

2.3 Construction Management. Contractor shall review the Conceptual

Program and Project Schedule and determine logistic planning for the Project.

Contractor shall identify and budget design options, value engineering, alternate materials, alternative solutions whenever design details affect construction feasibility, cost or time schedules and bid alternates for review by the Project Manager and the City.

2.4 Long-Lead Procurement Plan. Contractor shall create a long-lead procurement plan and recommend and provide justification for purchase of any long lead-time items and, if directed by the City, purchase and expedite the procurement of such long lead-time items to ensure their delivery by the required date. Long Lead Procurement Plan shall be updated at each milestone cost estimate and shall be part of the GMP package.

2.5 Governmental Approvals. If requested by the City, Contractor shall consult with and make presentations before applicable regulatory authorities to determine the limitations on the Project design and to assist the City in obtaining all necessary approvals for construction of the Project.

2.6 Guaranteed Maximum Price. Within thirty (30) calendar days after

Contractor is provided with the Bid Set from Architect, Contractor shall develop and submit to the City for its review and approval: (1) a Guaranteed Maximum Price (“GMP”) proposal for complete construction of the Project; and (2) a cost breakdown for the construction of the Project. The GMP proposal shall be the sum of the Cost of the Work, as such term is defined in Section 5.2.1 of the AIA A102- 2017. The Contractor’s Fee (defined as corporate overhead plus profit) shall be ________ % of the Cost of Work. Contractor shall also include with the GMP proposal a written statement describing the basis for the GMP proposal, which shall include, but is not limited to the following:

2.6.1 A list of the drawings and specifications, including all addenda thereto and the conditions of the contract, which were used in preparation of each GMP proposal;

2.6.2 A list of allowances and a statement of their basis;

2.6.3 A list of the clarifications and assumptions made by Contractor in the preparation of the GMP proposal to supplement the information contained in the drawings and specifications; and

2.6.4 A statement of the estimated cost organized by trade

categories, allowances, contingency, tax, insurance, bonds, and other items and the fee that comprise the GMP.

2.6.5 A list of alternates, if applicable.

2.6.6 Definition and review of all the general conditions and general requirements.

2.6.7 A list of the wages or salaries of the Contractor’s supervisory, cost estimating, accounting, and administrative personnel when stationed at the site, or at Contractor’s principal office. Contractor shall include the percentage of time that will be charged to the Work for each of the personnel and the rates at which their time will be charged to the Work.

2.6.8 The date of substantial completion and final completion upon which the GMP is based and the Construction Schedule upon which its based.

2.6.9 All the documents indicated in this Section 2.6 shall be referred to as the “GMP Documents.”

2.7 Reporting. Contractor will submit such written reports as may be required by the City to fully inform the City of the status of the Project and of Contractor’s services under this Agreement no less than on a monthly basis.

Contractor also shall prepare and submit to the City special written reports as directed by the City.

2.8 Staffing. Contractor shall provide to the City the names and qualifications of the proposed employees of Contractor who will be primarily involved in providing the services required under the Contract Documents (the “Senior Project Team”). The Senior Project Team shall include the following personnel:

[Insert names and titles] _______________________________

The Project Manager shall be competent and be in attendance at the

Project site during the progress of the Work. The Project Manager shall represent and be the agent of Contractor and communications given to the Project Manager shall be as binding as if given to Contractor.

Contractor shall not make any change in the Senior Project Team without the prior written approval of the City. Contractor shall not employ any member of the Senior Project Team or major subcontractor or material supplier to whom the City has made reasonable objection. If Contractor proposes to change a member of the Senior Project Team or a major subcontractor or materials supplier during the Project, Contractor shall provide to the City the name and qualifications of the individual or firm to replace the member of the Senior Project Team or major subcontractor or materials supplier for their review and approval.

3 CITY’S PROJECT MANAGER. The City has appointed a Project

Manager to manage this Project and represent the City on the Project Site. The Project Manager will assume all duties and responsibilities and will have all rights and authority assigned to the City in the Contract Documents.

4 TERM. The Term of this Agreement shall be for a period commencing

________, 202_ and ending on the earlier of: (1) the date that the Construction Agreement has been executed by both Parties; or (2) _________, 202_. This Agreement may be extended upon mutual written consent of the Parties provided that any amendment shall be executed by an authorized signatory of the Parties and provide in writing the amended term of the Agreement and, if applicable, a specified dollar amount of additional payment to be owed by the City to Contractor for the amended Term.

5 CHANGE ORDERS. A change order is a written order from the City to Contractor issued after execution of the Contract authorizing a change in the Work and setting forth the amount of the adjustment, if any, in the Contract Sum and the extent of the change, if any, in the Progress Schedule. Change Orders do not invalidate the Contract. Changes in the Work shall be performed under the applicable provisions of the Contract Documents, and the Contractor shall proceed promptly, unless otherwise provided in the Change Order. A Change Order signed by the Contractor indicates the Contractor’s agreement therewith, including the adjustment in the Contract Sum and Progress Schedule or the method for determining them. There shall be no increase to the Contract Amount for changes or additions to the Work without the prior written approval of the City.

Any extra or changed Work performed by Contractor without such prior written approval (including Work known to or requested by the City or Architect) shall conclusively be presumed to involve no adjustment to the Contract Amount;

further, absent such prior written approval, Contractor shall be conclusively presumed to waive any claim for adjustment to the Contract Amount for such Work.

6 COMPENSATION. The total amount payable by the City to the Contractor is an amount not to exceed ______ Dollars and ____ Cents ($0.00) (the “Contract Sum”).

6.1 Application for Payment. Contractor shall submit an application for payment to the City which reflects the Work rendered during the preceding month. The application for payment shall include all such supporting and substantiating documentation as the City and Project Manager shall require no later than the twenty-fifth (25th) day of the month immediately following the month covered by the application for payment. Payment shall be due from the City within thirty (30) calendar days after an application for payment, with all supporting documentation, has been reviewed and approved by the City and Project Manager, provided the Contractor has fulfilled all duties and obligations stated in this Agreement.

6.2 Review of the Application for Payment. The Architect, Project

Manager, and the City shall review and approve the application for payment submitted by Contractor. In conducting the review, the Architect, Project Manager, and the City will analyze the Work to determine if it is satisfactory before payment is authorized. If the City finds that only a portion of the Work covered by the application for payment is satisfactory, the City may authorize a partial payment based on the portion of the work that was satisfactorily performed by the Contractor.

6.3 [RESERVED]

6.4 Third-Party Payments. The City shall have no obligation to pay or to be responsible in any way for payment to a subcontractor of the Contractor or any other third-party. To the extent an invoice submitted by the Contractor reflects any payments made by the Contractor to subcontractors and/or materials suppliers, the Contractor, in requesting such payments, thereby warrants and guarantees to the City that for each such payment requested, all Work represented by such payment has been performed to the Contractor’s satisfaction and/or all materials represented by such payment have been delivered to the Contractor’s satisfaction. The Contractor therefore warrants that it has approved such Work and materials for payment as requested in the invoice.

In addition, the Contractor warrants that each such payment to a subcontractor or material supplier that is reflected in the application for payment has either already been made to the subcontractor or material supplier or that such payment will be made to the subcontractor or material supplier within five (5) business days after the Contractor’s receipt from the City of payment representing Work performed by the subcontractor or materials furnished by the supplier.

Contractor shall be ineligible to submit any further application for payment until it has provided to the City documentary evidence of such payment to each subcontractor or material supplier.

6.5 Final Completion of the Work and Final Payment. The Contractor shall receive final payment upon the final completion of the Work. Final completion of the Work shall be achieved when the Contractor has full performed all obligations of the this Agreement, and has submitted a final application for payment has been reviewed and approved by the City.

6.6 [RESERVED]

6.7 [RESERVED]

6.8 Waiver. The City may, in its sole discretion, waive these requirements of strict compliance in connection with any particular claim, notice or demand, provided that any such waiver or failure to insist on strict compliance shall not waive such requirements with respect to any other claim, notice or demand. The Contract Sum and Contract Time may be changed only by Change Order.

6.9 Records. Contractor and all consultants and subcontractors employed by Contractor shall keep records of all expenditures made and all costs, liabilities and obligations incurred under the Contract Documents.

Notwithstanding anything to the contrary in this Agreement, the expense of all bookkeeping and accounting services and any associated electronic storage necessary to produce and maintain such records shall be at Contractor’s sole expense and shall not be a separate reimbursable expense under the Contract Documents. Such records shall be kept on the basis of generally accepted accounting principles. and shall be available to the City and the City’s authorized representatives at all reasonable times during ordinary business hours.

Contractor shall maintain records for a period of at least three (3) years after expiration of this Agreement, and shall make such records available during that retention period for examination or audit by City personnel during regular business hours.

6.10 [RESERVED]

7 STANDARD OF PERFORMANCE. The Work shall be performed by qualified professional construction contractors licensed in Arizona, selected and paid by Contractor and acting in the interest of Contractor. While performing the Work, Contractor and its subcontractors shall exercise the reasonable professional care and skill customarily exercised by reputable members of Contractor’s profession practicing in the Phoenix Metropolitan Area and shall use reasonable diligence and best judgment while exercising its professional skill and expertise. Contractor shall be responsible for all errors and omissions committed by Contractor or its subcontractors in the performance of the Work.

8 [RESERVED]

9 [RESERVED]

10 DAMAGE. Contractor shall be responsible for and promptly remedy any damage or loss of property caused in whole or in part by the Contractor, a subcontractor, or anyone directly or indirectly employed by Contractor, or by anyone for whose acts Contractor may be liable and for which Contractor is responsible under the Contract, except where such damage or loss is directly attributable to the negligent acts or omissions of City or by anyone for whose acts City may be liable and not attributable to the fault or negligence of the Contractor.

City shall make claims regarding all damage or loss to Contractor within a reasonable time after the first observance of such injury or damages.

11 INSURANCE.

11.1. General Requirements. Contractor, at its own expense, shall purchase and maintain during the Term the insurance required by this Agreement with companies duly licensed, possessing a current A.M. Best, Inc. Rating of B++6, or approved unlicensed in the State of Arizona with policies and forms satisfactory to City.

All insurance required by this Agreement shall be maintained in full force and effect until the Work is accepted by the City. Failure to do so may, at the sole discretion of City, constitute a material breach of this Agreement.

Contractor’s insurance shall be primary insurance as respects the City, and any insurance or self-insurance maintained by City shall not contribute to it.

Any failure to comply with the claim reporting provisions of the insurance policies or any breach of an insurance policy warranty shall not affect coverage afforded under the insurance policies to protect City.

The insurance policies, except Workers’ Compensation, shall contain a waiver of transfer rights of recovery (subrogation) against City, its agents, officers, officials and employees for any claims arising out of Contractor’s acts, errors, mistakes, omissions, Work or service.

The insurance policies may provide coverage which contains deductibles or self-insured retentions. Such deductible and/or self-insured retentions shall not be applicable with respect to the coverage provided to City under such policies.

Contractor shall be solely responsible for the deductible and/or self retention and City, at its option, may require Contractor to secure payment of such deductibles or self-insured retentions by a surety bond or an irrevocable and unconditional letter of credit.

The insurance policies required by this Agreement, except Workers’ Compensation and Professional Liability, shall name City, its elected officials, agents, officers, and employees as additional insured parties.

Contractor shall expressly bind any subcontractors, or any other lower tier subcontractors, used in the performance of any aspect of the Work, to the insurance requirements in this Agreement, making such obligations applicable to the other subcontractor to the same extent as it is applicable to Contractor. The purpose of this provision is to require any lower tier subcontractor, regardless of level, to provide insurance and indemnity required by this Agreement.

11.2. Commercial General Liability. Contractor shall maintain Commercial General Liability insurance with a limit of not less than $2,000,000 for each occurrence with a $2,000,000 Products/Completed Operations Aggregate and a $4,000,000 General Aggregate limit. The policy shall include coverage for bodily injury, broad form property damage, personal injury, products and completed operations and blanket contractual coverage including, but not limited to, the liability assumed under the indemnification provisions of this Agreement, which coverage will be at least as broad as that on Insurance Service Office, Inc. Policy Form No. CG 00011093, or the equivalent thereof.

Such policy shall contain a severability of interest provision and shall not contain a sunset provision or commutation clause, nor any provision which would serve to limit third party action over claims.

The Commercial General Liability additional insured endorsement shall be at least as broad as the Insurance Service Office, Inc.’s Additional Insured, Form B, CG 20101185, or the equivalent thereof, and shall include coverage for Contractor’s operations and products and completed operations.

If Contractor sublets any part of the Work, Contractor shall purchase and maintain, at all times during prosecution of the Work an Owner and Contractor’s Protective Liability insurance policy for bodily injury and property damage, including death, which may arise in the prosecution of the Work. Coverage shall be on an occurrence basis with a limit of not less than $1,000,000 per occurrence, and the policy shall be issued by the same insurance company that issues Contractor’s Commercial General Liability insurance.

11.3. Automobile Liability. Contractor shall maintain Commercial/Business Automobile Liability insurance with a combined single limit for bodily injury and property damage of not less than $1,000,000 each occurrence with respect to Contractor’s owned, hired, and non-owned vehicles assigned to or used in performance of the Work. Coverage will be at least as broad as coverage code 1, “any auto” (Insurance Service Office, Inc. Policy Form CA 00011293, or the equivalent thereof). Such insurance shall include coverage for loading and off-loading hazards. If hazardous substances, materials or wastes are to be transported, federal mandatory motor carrier safety (“MCS”) 90 endorsement shall be included and $5,000,000 per accident limits for bodily injury and property damage shall apply.

11.4. Workers’ Compensation. Contractor shall carry Workers’

Compensation insurance to cover obligations imposed by federal and state statutes having jurisdiction over Contractor’s employees engaged in the performance of the Work; and Employer’s Liability insurance of not less than $100,000 for each accident, $100,000 disease for each employee, and $500,000 disease policy limit.

By execution of this Agreement, Contractor certifies as follows:

“I am aware and understand the provisions of A.R.S. § 23-901 et seq. which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of this chapter, and I will comply with such provisions before commencing the performance of the Work of this Agreement.”

If Contractor has no employees for whom Workers’ Compensation insurance is required by federal or state statutes, Contractor shall submit a declaration or affidavit to City so stating and covenanting to obtain such insurance if and when Contractor employs any employees subject to coverage.

11.5. Certificates of Insurance. Prior to commencing the Work, Contractor shall furnish City with Certificates of Insurance, or formal endorsements as required by the Agreement, issued by Contractor’s insurer(s), as evidence that policies providing the required coverages, conditions and limits required by this Agreement are in full force and effect. City shall not be obligated, however, to review same or to advise Contractor of any deficiencies in such policies and endorsements, and such receipt shall not relieve Contractor from, or be deemed a waiver of, City’s right to insist on strict fulfillment of Contractor’s obligations under this Agreement.

The form of the certificates of insurance and endorsements shall be subject to the approval of the Apache Junction City Attorney’s Office, shall comply with the terms of this Agreement. Policies or certificates and completed forms of City’s Additional Insured Endorsement (or a substantially equivalent insurance company form acceptable to the City Attorney) evidencing the coverage required by this Agreement shall be delivered to City Attorney, City of Apache Junction, 300 East Superstition Boulevard, Apache Junction, AZ 85119. The policy or policies shall be in the usual form of public liability insurance, but shall also include the following provision:

“Solely as respects work done by or on behalf of the named insured for the City of Apache Junction, it is agreed that the City of Apache Junction and its elected officials, officers, agents, and employees are added as additional insured parties under this policy.”

In the event any insurance policies required by this Agreement are written on a “claims made” basis, coverage shall extend for two (2) years past completion and acceptance of Contractor’s Work or services and as evidenced by annual Certificates of Insurance.

Contractor shall require its insurers to provide City thirty (30) calendar days’ prior written notice of any nonrenewal, cancellation, or material change in the coverage under such policy reducing coverage to below the amounts required by this Agreement. If a policy does expire during the life of the Agreement, a renewal certificate must be sent to the City Attorney’s Office thirty (30) calendar days prior to the expiration date.

12. [RESERVED]

13. [RESERVED]

14. TAXES. Contractor shall pay as they become due all license, sales, consumer, transaction privilege, use and other similar taxes for the Work or portions of the Work which are legally enacted at the time bids are received whether or not yet effective or subsequently applicable due to acts of jurisdictions or bodies other than City.

15. CITY LICENSES. Contractor understands that the activity described in the Contract constitutes “doing business in the City of Apache Junction” and Contractor agrees to obtain a business license pursuant to Chapter 8 of the Apache Junction City Code, Vol. I, and keep such license current until the Work is accepted by the City. Contractor also acknowledges that the tax provision of the Apache Junction Tax Code, Chapter 8A, may also apply and if so, shall obtain a transaction privilege license and/or other licenses as may be required by the city code. Any activity by consultants and subcontractors within the corporate city limits will invoke the same sales tax and business licensing regulations on the consultants and subcontractors, and Contractor shall require and ensure its consultants and subcontractors obtain and keep all applicable licenses current.

16. TERMINATION.

16.1 Termination by City.

16.1.1 City may terminate this Agreement in whole or part if the city manager or his or her designee determines Contractor has failed to fulfill its obligations under the Contract through no fault of City. Such termination may be effected by City giving Contractor not less than ten (10) calendar days written notice by certified mail, return receipt requested of City’s intent to terminate.

Contractor shall have ten (10) calendar days to cure the failure to the satisfaction of City. If City terminates this Agreement for reasons of default by Contractor, the amount of compensation provided for in this Agreement shall be reduced to reflect the percentage of Work completed and the Contractor shall not be entitled to payment for anticipated profits or unperformed services.

16.1.2 City may also terminate this Agreement or a portion

thereof if conditions encountered during the progress of the Work make it impossible or impracticable to proceed with the Work. In such case, Contractor shall appraise the Work completed and submit an application for payment reflecting the percentage of Work completed. The City shall review and approve the application for payment submitted by Contractor to confirm the percentage of Work completed. In conducting the review, the City will review the Work to determine if it is satisfactory before payment is authorized. The City shall make this final payment within thirty (30) calendar days from the Contractor’s submission of the application for payment with the requisite supporting documentation and delivery of the partially completed items. No claim for loss of anticipated profits will be considered. Upon such termination, the Contractor shall deliver to the City all drawings, reports, special provisions, and estimates entirely or partially completed, together with all used materials supplied by City.

16.2 Termination by Contractor. Contractor may terminate this

Agreement if City fails to make payment as agreed upon in this Agreement.