Street Resurfacing.pdf

Town of China Grove — Street Resurfacing, Contract No. STR-27 | Page 1 of 62

TOWN OF CHINA GROVE

NORTH CAROLINA

INFORMAL BID PACKAGE

For

STREET RESURFACING

Contract No. STR-27

Bid No. 1

Informally bid pursuant to N.C. Gen. Stat. § 143-131

PUBLIC WORKS DEPARTMENT

618 Salisbury Street, China Grove, North Carolina 28023

Mailing: 333 North Main Street, China Grove, North Carolina 28023

(704) 857-2466

Town of China Grove — Street Resurfacing, Contract No. STR-27 | Page 2 of 62

REQUEST FOR INFORMAL BIDS

Town of China Grove — Public Works Department Date: September 18, 2026

Written bids will be received by the Town of China Grove at China Grove Town Hall, 333 North Main Street, China Grove, North Carolina 28023, until 2:00 p.m., local time, October 8th, 2026, for Street Resurfacing, Contract No. STR-27.

Bids will be opened and tabulated promptly after the time stated above by the Director of Public Works or the Director’s designee. Because this contract is let on informal bids, no public bid opening is required and none will be held. Pursuant to N.C. Gen. Stat. § 143-131(a), the Town will keep a record of all bids submitted, and that record is not subject to public inspection until the contract has been awarded.

Project Information.

The work under this contract includes, but is not limited to, the selected Contractor performing crack and joint sealing, patching, leveling, milling, resurfacing, re-striping, re-marking, re-installation of permanent raised pavement markings, and incidental concrete work on designated streets in the Town of China Grove as identified by the Public Works Department, including mobilizations and demobilizations; all labor including special subcontracting; permits, licenses, and certifications; handwork, fabrications, tools, equipment, all materials, miscellaneous hardware, consumables, preparations, and adhesives; excavation and grading; hauling; traffic control and work zone safety operations; site security and security of the work; infrastructure removals and resettings; incidental infrastructure relocations; removal of debris, cleanup, and disposal; seeding and mulching; testing; touch-up repairs; and all else required as necessary in accordance with the Contract documents to the satisfaction of the Director and the Town of China Grove.

Statutory Authority.

This solicitation is issued under Article 8 of Chapter 143 of the North Carolina General Statutes. The Town’s estimated cost of the work is thirty thousand dollars ($30,000) or more but less than five hundred thousand dollars ($500,000). The contract is therefore let on informal bids under N.C. Gen. Stat. § 143- 131 and is not subject to the formal sealed-bid procedure of N.C. Gen. Stat. § 143-129. Section 143-131 does not require formal advertisement of bids. The Town is soliciting bids directly from licensed contractors regularly engaged in this class of work and is posting this Request for Informal Bids on the Town’s website as a matter of Town practice. The work has not been divided or phased for the purpose of avoiding the formal bidding threshold of N.C. Gen. Stat. § 143-129(a).

The minimum-bid requirement of N.C. Gen. Stat. § 143-132 applies only to contracts to which N.C. Gen.

Stat. § 143-129 applies and does not apply to this contract. It is the Town’s practice to solicit bids from at least three (3) reputable and qualified contractors regularly engaged in this class of work, and the Town may award the contract on the bids received. Award will be made to the lowest responsible, responsive bidder, taking into consideration quality, performance, and the time specified in the bids for the performance of the contract, as required by N.C. Gen. Stat. § 143-131(a).

Contract Documents.

All bids must be in accordance with the Contract documents on file with the Town of China Grove Public Works Department. Copies of the Contract documents may be obtained from the Town of China Grove at the address stated above or by contacting the Town representative identified below.

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Licensing.

Bidders must be licensed general contractors in the State of North Carolina in the appropriate classification and limitation for the work bid, pursuant to Article 1 of Chapter 87 of the North Carolina General Statutes. All subcontractors performing work requiring licensure must likewise be licensed in North Carolina. A bid submitted by an unlicensed contractor, where licensure is required, will be rejected as non-responsive.

Basis of Bid.

Bids will be received on a unit price basis. Quantities shown on the Bid Form are estimated and are provided solely for the purpose of comparing bids and establishing the initial contract amount. Final payment will be based on actual quantities satisfactorily installed and accepted.

Bonds.

No bid security or bid bond is required for this solicitation. The five percent (5%) bid deposit prescribed by N.C. Gen. Stat. § 143-129(b) applies only to formally bid contracts and is not required for contracts let on informal bids under N.C. Gen. Stat. § 143-131.

The successful Bidder will be required to furnish a Performance Bond in the amount of one hundred percent (100%) of the contract price and a Payment Bond in the amount of one hundred percent (100%) of the contract price, on the forms provided by the Town and executed by a surety company authorized to do business in North Carolina. Where the total amount of construction contracts awarded for this project exceeds three hundred thousand dollars ($300,000) and the Contractor’s contract exceeds fifty thousand dollars ($50,000), these bonds are required by N.C. Gen. Stat. § 44A-26(a). Where the project falls below those thresholds, the Town requires the same bonds in the exercise of the discretion granted to the contracting body by N.C. Gen. Stat. § 44A-26(a).

Nondiscrimination The Town of China Grove does not discriminate in administering any of its programs and activities. The Contractor awarded the contract will be required to assure that no person shall be denied employment or fair treatment, or in any way discriminated against on the basis of race, sex, religion, age, national origin, or disability. The Town will solicit participation by minority businesses in this contract and will maintain a record of the contractors solicited and of its efforts to recruit minority business participation, consistent with N.C. Gen. Stat. § 143-131(b).

Standard Specifications.

The North Carolina Department of Transportation Standard Specifications for Roads and Structures (“Standard Specifications”), latest edition, and the NCDOT Roadway Standard Drawings (“Standard Drawings”), latest edition, shall govern the work. The Contractor shall obtain and maintain a copy of each. Definitions shall be as stated in Section 101 of the Standard Specifications, except that terms that specifically delineate and apply to the North Carolina Department of Transportation and its Divisions shall be read as synonymous with and applied to the Town of China Grove and its comparable departments, and as further defined in Exhibit “G” of the Contract documents.

Drug-Free Workplace.

It is a requirement of the Town of China Grove that the project work site and work force be drug free. The Bidder's qualifications statement shall include a commitment to this requirement and a description of the plan by which the firm will ensure compliance.

Reservation of Rights.

The Town of China Grove reserves the right to reject any or all bids, including without limitation the right to reject any nonconforming, nonresponsive, unbalanced, or conditional bid, and to waive informalities.

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Award, if made, will be to the lowest responsible, responsive bidder, taking into consideration quality, performance, and the time specified in the Bid Form for performance of the work, as required by N.C.

Gen. Stat. § 143-131(a). Award of this contract is subject to approval by the China Grove Town Council and to the appropriation of funds in accordance with N.C. Gen. Stat. § 159-28.

If the contract is awarded, the Town will give the successful Bidder a Notice of Award within the number of days set forth in the Bid Form.

Questions.

All questions concerning this bid request shall be directed in writing to David Ketner, Director of Public Works, Town of China Grove, at dketner@chinagrovenc.gov or (704) 857-2466. Questions received less than five (5) days prior to the date bids are due may not be answered. Only answers issued by written Addendum will be binding.

BY: ______________________________________

Franklin D. Gover III, AICP, ICMA-CM Town Manager

Town of China Grove — Street Resurfacing, Contract No. STR-27 | Page 5 of 62

STANDARD FORM CONSTRUCTION CONTRACT

Street Resurfacing — Contract No. STR-27

This contract (together with all exhibits and valid amendments, the “Agreement” or the “Contract”) is made and entered into as of the Notice to Proceed Date specified on EXHIBIT “K,” by the TOWN OF CHINA GROVE, a North Carolina municipal corporation (“Town”), and ______________________________ (“Contractor”), ( ) a corporation, ( ) a professional corporation, ( ) a professional association, ( ) a limited liability company, ( ) a limited partnership, ( ) a sole proprietorship, or ( ) a general partnership; organized and existing under the laws of the State of ______________________ and authorized to transact business in the State of North Carolina.

Sec. 1. Background and Purpose.

This contract consists of the selected Contractor performing street preservation and other associated work on designated streets in the Town of China Grove. All work and materials shall meet and be in accordance with the provisions of the Occupational Safety and Health Administration, the North Carolina Department of Labor, the North Carolina Department of Transportation Standard Specifications for Roads and Structures (latest edition), the NCDOT Roadway Standard Drawings (latest edition), and the Manual on Uniform Traffic Control Devices (latest edition), together with the NC Supplement thereto. The Contractor shall keep itself fully informed of all federal, State, and local laws, ordinances, and regulations applicable to the work.

Sec. 2. Services and Scope to be Performed.

The work under this contract includes, but is not limited to, the selected Contractor performing crack and joint sealing, patching, leveling, milling, resurfacing, re-striping, re-marking, re-installation of permanent raised pavement markings, and incidental concrete work on designated streets in the Town of China Grove as identified by the Public Works Department, including mobilizations and demobilizations; all labor including special subcontracting; permits, licenses, and certifications; handwork, fabrications, tools, equipment, all materials, miscellaneous hardware, consumables, preparations, and adhesives; excavation and grading; hauling; traffic control and work zone safety operations; site security and security of the work; infrastructure removals and resettings; incidental infrastructure relocations; removal of debris, cleanup, and disposal; seeding and mulching; testing; touch-up repairs; and all else required as necessary in accordance with the Contract documents to the satisfaction of the Director and the Town of China Grove, at the charges set forth in Exhibit “G.”

Additional exhibits may be used to further define this Agreement when the Contractor and Town so agree. Any additional exhibits shall be designated with capitalized, sequential letters of the alphabet, shall be attached hereto and incorporated herein by reference as if fully recited, and shall become terms of this Agreement upon execution by both parties.

In this Contract, “services” means the services the Contractor is required to perform pursuant to this Contract and all of the Contractor's duties to the Town that arise out of this Contract. Any amendment, correction, or change order by either party must be made in writing and signed in the same manner as the original. The Town reserves the right to refuse payment for any work outside that authorized herein or pursuant to a duly approved amendment or change order.

Sec. 3. Complete Work without Extra Cost.

Unless otherwise provided, the Contractor shall obtain and provide, without additional cost to the Town, all labor, materials, equipment, transportation, facilities, services, permits, and licenses necessary to perform the work.

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Sec. 4. Compensation.

The Town shall pay the Contractor for the work as described in Exhibit “A” and at the unit prices set forth in the Bid Form at Exhibit “G.” Any additional expense or charge shall be paid only after both the Town and the Contractor agree to and execute a written change order. The Town shall not be obligated to pay the Contractor any fee, payment, expense, or compensation other than those authorized in this Contract or in a duly approved change order. All payments shall be deemed inclusive of tax and other obligations.

Sec. 4a. Retainage.

Retainage shall be governed by N.C. Gen. Stat. § 143-134.1. The Town shall withhold no retainage on contracts having a total project cost of less than one hundred thousand dollars ($100,000). The Town may withhold retainage on contracts having a total project cost between $100,000 and $299,999. The Town shall withhold retainage on contracts whose total project cost exceeds $300,000. When withheld, retainage shall not exceed five percent (5%) of each periodic payment. After the project is fifty percent (50%) complete, the Town shall withhold no further retainage from subsequent payments, provided that

(i) the surety concurs in writing, (ii) the Contractor continues to perform satisfactorily, and (iii) any nonconforming work identified in writing by the engineer or the Town has been corrected by the Contractor and accepted. If the Town determines that the Contractor's performance is unsatisfactory, the Town may reinstate retainage of up to five percent (5%) from each subsequent payment. The Town may withhold amounts in excess of five percent (5%) for unsatisfactory job progress, defective construction not remedied, disputed work, third-party claims filed against the Town, or reasonable evidence that a third-party claim will be filed.

Definitions:

“Total Project Cost” means the total value of the Contract and any approved change orders or amendments.

“Project is Fifty Percent Complete” means the point at which the Contractor's validly issued gross project invoices (excluding the value of materials stored off site) equal or exceed fifty percent of the value of the Contract, except that the value of materials stored on site shall not exceed twenty percent of the Contractor's gross project invoices for purposes of determining whether the project is fifty percent complete.

Sec. 5. Term.

The Contractor shall commence work on the Notice to Proceed Date specified on EXHIBIT “K” (the “Commence Date”) and shall complete the work within sixty (60) calendar days from the Commence Date (the “Completion Date”). All work set forth in the Scope of Services at Exhibit “A” shall be completed between the Commence Date and the Completion Date. Any portion of the work that the Town specifies and directs to be completed on a date before the Completion Date shall be set out in writing between the Town and the Contractor. Time is of the essence.

If the Contractor's obligations are not completed by the Completion Date or other specified date, the Town reserves the right to terminate this Agreement, order the Contractor to cease all work and vacate the premises, and procure equivalent services. The Contractor shall be accountable for all damages incurred by the Town as a consequence of the missed Completion Date. The exercise of any of these rights shall not prejudice any other right the Town may have at law or in equity.

Renewal. This Contract may be renewed for one (1) additional term of up to twelve (12) months only by written amendment executed by both parties before the Completion Date, at rates not exceeding a five percent (5%) increase over the original unit prices. This Contract does not renew automatically. Any renewal term is expressly contingent upon the appropriation of funds by the Town Council for that fiscal year and upon a pre-audit certificate executed by the Town Finance Officer in accordance with N.C. Gen.

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Stat. § 159-28. No obligation of the Town extends beyond the current fiscal year absent such appropriation and certification.

Sec. 6. Contractor's Billings to Town.

The Contractor shall submit an original pay request (invoice) to the Town of China Grove Public Works Department, with a copy to the Town Finance Officer, by the twenty-fifth (25th) day of each month.

Upon receipt, the Director or the Director's designated representative shall verify quantities and amounts and, if correct, forward the request to the Finance Department for processing. Periodic payments shall be made within thirty (30) days of approval. Final payment shall be made in accordance with N.C. Gen. Stat.

§ 143-134.1. Within sixty (60) days after submission of the final pay request, the Town (with the written consent of the surety) shall release to the Contractor all retainage, provided the Town receives a certificate of substantial completion from the engineer or designer in charge of the project or the Town receives beneficial occupancy and use of the project. In either case, the Town may retain up to 2.5 times the estimated value of the work to be completed or corrected.

Sec. 7. Insurance.

The Contractor shall maintain, and shall cause all subcontractors to maintain, insurance policies at all times during the term of this Contract with minimum limits as follows:

Coverage Minimum Limits

Workers' Compensation Statutory limits; $100,000 each accident; $100,000 bodily injury by disease each employee; $500,000 bodily injury by disease policy limit

Commercial General Liability $1,000,000 per occurrence / $2,000,000 aggregate, regardless of contract size Automobile Liability $1,000,000 per occurrence, regardless of contract size

Umbrella / Excess Liability $1,000,000 per occurrence if the contract term does not exceed 180 days and the contract amount does not exceed $500,000; otherwise $2,000,000 per occurrence

The Contractor shall provide a Certificate of Insurance to the Town naming the Town of China Grove as an additional insured on all lines of coverage except Workers' Compensation. Such certificate shall be in a form acceptable to the Town. Nothing in this Section shall be construed as a waiver of the Town's governmental immunity except to the extent provided in N.C. Gen. Stat. § 160A-485.

Sec. 8. Documentation Requirements.

A. The Contractor shall provide the Town with a Certificate of Insurance for review prior to the issuance of any contract or purchase order. All Certificates of Insurance shall require written notice by the insurer or the Contractor's agent in the event of cancellation, reduction, or other modification of coverage: not less than thirty (30) days for nonrenewal by the insurer, not less than ten (10) days for cancellation due to nonpayment of premium, and as soon as possible for all other modifications. In addition, the Contractor shall provide the Town with written notice of any cancellation, reduction, or modification of coverage immediately upon the Contractor's receipt or knowledge of such modification. Upon failure of the Contractor to provide such notice, the Contractor assumes sole responsibility for all losses incurred by the Town for which insurance would have provided coverage. The certificate shall be renewed by the Contractor for each subsequent renewal period for so long as the contract remains in effect.

Coverage shall be placed with insurers rated “A-” or better by A.M. Best and acceptable to the Town. The Description of Operations shall read: “The Town of China Grove is named as additional insured as required by written contract. Waiver of subrogation is granted in favor of the Town of China Grove on General Liability and Workers' Compensation policies.” Failure to maintain the required insurance in force may be cause for termination of this Agreement.

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B. The Contractor shall provide a completed IRS Form W-9 to the Town prior to execution of this Agreement by the Town.

Sec. 9. Performance of Work by Contractor.

(a) The Contractor warrants that all work performed under this Contract conforms to the Contract requirements and is free of any defect in equipment, material, or design furnished, or workmanship performed, by the Contractor or any subcontractor or supplier at any tier. This warranty shall continue for a period of one (1) year from the date of issuance by the Town of written final acceptance of the work.

(b) The Contractor shall remedy at its own expense any failure to conform or any defect. In addition, the Contractor shall remedy at its own expense any damage to Town-owned or Town-controlled real or personal property when that damage results from (1) the Contractor's failure to conform to contract requirements, or (2) any defect of equipment, material, workmanship, or design furnished.

(c) The Contractor shall restore any work damaged in fulfilling the terms and conditions of this clause.

The Contractor's warranty with respect to work repaired or replaced shall run for one (1) year from the date of repair or replacement.

(d) The Town shall notify the Contractor in writing within a reasonable time, not to exceed thirty (30) days, after discovery of any failure, defect, or damage.

(e) If the Contractor fails to remedy any failure, defect, or damage within a reasonable time, not to exceed thirty (30) days unless otherwise agreed in writing and signed by the Town Manager or designee, after receipt of notice, the Town shall have the right to replace, repair, or otherwise remedy the failure, defect, or damage at the Contractor's expense.

(f) With respect to all warranties, express or implied, from subcontractors, manufacturers, or suppliers for work performed and materials furnished under this Contract, the Contractor shall (1) obtain all warranties that would be given in normal commercial practice; (2) require all warranties to be executed in writing for the benefit of the Town, if directed by the Town; and (3) enforce all warranties for the benefit of the Town, if directed by the Town.

(g) In the event the Contractor's warranty has expired, the Town may bring suit at its own expense to enforce a subcontractor's, manufacturer's, or supplier's warranty.

(h) Unless a defect is caused by the negligence of the Contractor or a subcontractor or supplier at any tier, the Contractor shall not be liable for the repair of any defect of material or design furnished by the Town, nor for the repair of any damage resulting from any defect in Town-furnished material or design.

Sec. 10. Performance of Work by Town.

If the Contractor fails to perform the work in accordance with the schedule referred to in Exhibit “A,” the Town may, in its discretion, perform or cause to be performed some or all of the work, and doing so shall not waive any of the Town's rights and remedies. Before doing so, the Town shall give the Contractor reasonable notice of its intention. The Contractor shall reimburse the Town for all costs incurred in exercising this right.

Sec. 11. Attachments.

The following attachments are made a part of this Contract and incorporated herein by reference:

(a) Exhibit “A” — Scope of Services / Fee for Scope of Services.

(b) Exhibit “B” — E-Verify Affidavit and Certifications (E-Verify, Iran Divestment Act, Israel Boycott, Gift Ban / Conflict of Interest).

(c) Exhibit “C” — Tax Forms.

(d) Exhibit “D” — Certificate of Insurance.

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(e) Exhibit “E” — Finance Forms.

(f) Exhibit “F” — Bond Forms (Performance Bond, Payment Bond).

(g) Exhibit “G” — General Conditions, Bid Form, and Debarred Firms Certification Form.

(h) Exhibit “H” — Special Provisions and Conditions.

(j) Exhibit “I” — Notice of Award.

(k) Exhibit “J” — Notice to Proceed.

(l) Attachment 1 — Street Schedule.

In case of conflict between an attachment and the text of this contract excluding the attachment, the text of this contract shall control. Any attachment that materially alters the standard terms contained herein must be reviewed by the Town Attorney and approved by the Town in writing.

Sec. 12. Notice.

(a) All notices and other communications required or permitted by this Contract shall be in writing and shall be given by personal delivery, by electronic mail with confirmed receipt, or by certified United States mail, return receipt requested, addressed as follows:

To the Town: With a copy to: To the Contractor:

Franklin D. Gover III, Town Manager Town of China Grove 333 North Main Street China Grove, NC 28023

(704) 857-2466

Town Attorney Town of China Grove 333 North Main Street China Grove, NC 28023

(b) Change of Address; Date Notice Deemed Given. A change of address, electronic mail address, or person to receive notice may be made by either party by notice given to the other party. Any notice under this Contract shall be deemed given at the time of actual delivery if personally delivered or sent by electronic mail with confirmed receipt. If sent by U.S. Mail, it shall be deemed given upon the third calendar day following the day on which it is deposited with the U.S. Postal Service, or upon actual delivery, whichever first occurs.

Sec. 13. Indemnification.

To the maximum extent allowed by law, the Contractor shall defend, indemnify, and save harmless the Town of China Grove, its agents, officers, and employees from and against all charges that arise in any manner from, in connection with, or out of this Contract as a result of the acts or omissions of the Contractor, its subcontractors, or anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, except for damage or injury caused solely by the negligence of the Town, its agents, officers, or employees. In performing its duties under this Section, the Contractor shall at its sole expense defend the Town of China Grove, its agents, officers, and employees with legal counsel reasonably acceptable to the Town. As used in this Section, “charges” means claims, judgments, costs, damages, losses, demands, liabilities, duties, obligations, fines, penalties, royalties, settlements, expenses, interest, reasonable attorneys' fees, and amounts for alleged violations of sedimentation pollution, erosion control, pollution, or other environmental laws, regulations, ordinances, rules, or orders.

Nothing contained in this Section or elsewhere in this Contract shall be deemed or construed to waive, or to constitute a waiver of, the governmental immunity of the Town of China Grove, its officers, agents, or employees, which immunity is expressly reserved except to the extent waived by the purchase of liability insurance under N.C. Gen. Stat. § 160A-485. Nothing in this Section shall affect any warranties in favor of the Town that are otherwise provided in or arise out of this Contract. This Section is in addition to and

Town of China Grove — Street Resurfacing, Contract No. STR-27 | Page 10 of 62 shall be construed separately from any other indemnification provision in this Contract, and shall survive termination or expiration of this Contract.

Sec. 14. Corporate Status.

If the Contractor is dissolved or suspended and the Contractor does not notify the Town of such dissolution or suspension within three (3) business days from the date thereof, or if the corporate status is not reinstated within thirty (30) days, this Contract, at the sole option of the Town and without prejudice to the Town's other remedies, shall be declared null and void, or the Contractor shall execute a new contract showing the Contractor's correct legal entity.

Sec. 15. Miscellaneous.

(a) Choice of Law and Forum. This Contract shall be deemed made in Rowan County, North Carolina, and shall be governed by and construed in accordance with the laws of North Carolina. The exclusive forum and venue for all actions arising out of this Contract shall be the appropriate division of the North Carolina General Court of Justice sitting in Rowan County. Such actions shall neither be commenced in nor removed to federal court. This Section shall not apply to subsequent actions to enforce a judgment entered in actions heard pursuant to this Section.

(b) Waiver. No action or failure to act by the Town shall constitute a waiver of any of its rights or remedies that arise out of this Contract, nor shall such action or failure to act constitute approval of or acquiescence in a breach hereunder, except as may be specifically agreed in writing.

(c) Performance of Government Functions. Nothing contained in this Contract shall be deemed or construed so as to in any way estop, limit, or impair the Town from exercising or performing any regulatory, policing, legislative, governmental, or other power or function.

(d) Severability. If any provision of this Contract shall be unenforceable, the remainder of this Contract shall be enforceable to the extent permitted by law.

(e) Assignment, Successors and Assigns. Without the Town's written consent, the Contractor shall not assign (which includes delegate) any of its rights (including the right to payment) or duties that arise out of this Contract. Unless the Town otherwise agrees in writing, the Contractor and all assigns shall be subject to all of the Town's defenses and shall be liable for all of the Contractor's duties that arise out of this Contract and all of the Town's claims that arise out of this Contract. Without granting the Contractor the right to assign, it is agreed that the duties of the Contractor that arise out of this Contract shall be binding upon it and its heirs, personal representatives, successors, and assigns.

(f) Compliance with Law. In performing all of the work, the Contractor shall comply with all applicable law. Without limitation:

(1) E-Verify. The Contractor shall comply with Article 2 of Chapter 64 of the North Carolina General Statutes (Verification of Work Authorization) and with N.C. Gen. Stat. § 143-133.3. If the Contractor utilizes a subcontractor, the Contractor shall require the subcontractor to comply with Article 2 of Chapter 64.

(2) Iran Divestment Act. Pursuant to the Iran Divestment Act, N.C. Gen. Stat. § 147-86.55 et seq., the Contractor certifies that, as of the effective date of this Agreement, the Contractor is not listed on the Final Divestment List created by the State Treasurer pursuant to N.C. Gen. Stat. § 147-

86.58. The Contractor further agrees that it will not utilize on this Contract any subcontractor that is identified on that list.

(3) Companies Boycotting Israel. Pursuant to N.C. Gen. Stat. § 147-86.81, the Contractor certifies that it is not identified on the list of restricted companies determined by the State Treasurer to be

Town of China Grove — Street Resurfacing, Contract No. STR-27 | Page 11 of 62 engaged in a boycott of Israel, and that it will not utilize on this Contract any subcontractor that is so identified.

(4) Gifts and Favors; Conflicts of Interest. The Contractor certifies that it has not offered, given, or agreed to give any Town official or employee any gift or favor in violation of N.C. Gen. Stat. § 133-32, and that no Town official or employee has a prohibited interest in this Contract under N.C. Gen. Stat. § 14-234.

(5) Debarment. The Contractor certifies that neither it nor any of its subcontractors has been suspended or debarred under N.C. Gen. Stat. § 133-27.

(g) Town Policy. The Town opposes discrimination on the basis of race and sex and urges all of its contractors to provide a fair opportunity for minorities and women to participate in their work force and as subcontractors and vendors under Town contracts.

(h) EEO Provisions. During the performance of this Contract, the Contractor agrees as follows: (1) The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, political affiliation or belief, age, or disability. The Contractor shall take affirmative action to ensure that applicants are employed and that employees are treated equally during employment, without regard to those characteristics. The Contractor shall post in conspicuous places available to employees and applicants for employment notices setting forth these EEO provisions.

(2) In all solicitations or advertisements for employees placed by or on behalf of the Contractor, the Contractor shall state that all qualified applicants will receive consideration for employment without regard to those characteristics.

(i) No Third-Party Right Created. This Contract is intended for the benefit of the Town and the Contractor and not any other person.

(j) Principles of Interpretation. In this Contract, unless the context requires otherwise, the singular includes the plural and the plural the singular. Reference to statutes or regulations includes all statutory or regulatory provisions consolidating, amending, or replacing the statute or regulation. References to contracts and agreements shall be deemed to include all amendments to them. The word “person” includes natural persons, firms, companies, associations, partnerships, trusts, corporations, governmental agencies and units, and any other legal entities.

(k) Modifications; Entire Agreement. A modification of this Contract is not valid unless signed by both parties and otherwise in accordance with requirements of law. Further, a modification is not enforceable against the Town unless the Town Manager or other duly authorized official signs it for the Town and, where required, it is pre-audited by the Town Finance Officer under N.C. Gen. Stat. § 159-28. This Contract contains the entire agreement between the parties pertaining to its subject matter.

(l) Corporate Seal. If a corporate seal is included by any party to this Contract, it is only for authentication purposes. This Contract is not signed under seal.

(m) No Employment Relationship. For all matters relating to this Agreement, the Contractor shall be deemed an independent contractor. Nothing in this Agreement shall be construed to create an employee-employer relationship between the Town and the Contractor.

(n) Public Records. The Contractor acknowledges that the Town is subject to Chapter 132 of the North Carolina General Statutes. Pursuant to N.C. Gen. Stat. § 143-131(a), the record of bids submitted is not subject to public inspection until the contract has been awarded; after award, bids are public records. Any material the Contractor contends is a trade secret must be marked as such at the time of submission in accordance with N.C. Gen. Stat. § 132-1.2. Blanket designations of an entire bid as confidential will not be honored.

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(o) Appropriation. All obligations of the Town under this Contract are subject to the appropriation of funds by the Town Council. No obligation of the Town extends beyond the fiscal year in which funds have been appropriated and pre-audited pursuant to N.C. Gen. Stat. § 159-28.

Sec. 16. Bonding.

Performance and payment bonds, each in an amount equal to one hundred percent (100%) of the contract price, are required and shall be attached. The performance bond shall be conditioned upon faithful performance of the Contract in accordance with the plans, specifications, and conditions of the Contract, and shall be solely for the protection of the Town. The payment bond shall be conditioned upon the prompt payment for all labor or materials for which the Contractor or a subcontractor is liable, and shall be solely for the protection of persons furnishing materials or performing labor for which the Contractor or a subcontractor is liable. Bonds shall be executed by a surety company authorized to do business in North Carolina, in accordance with Article 3 of Chapter 44A of the North Carolina General Statutes.

Sec. 17. Dispute Resolution.

The Town specifies this Section as the dispute resolution process to be used on this Project. The amount in controversy shall be at least fifteen thousand dollars ($15,000) before this dispute resolution procedure may be used. This dispute resolution process is based on non-binding mediation and will be effective only to the extent that the parties to any mediated dispute participate in good faith. The Town is under no obligation to secure or enforce the participation of any other party.

17.1 Any dispute arising between or among the parties listed in Section 17.3 that arises from an agreement to construct the Project, including without limitation a breach of such agreement, shall be subject to non-binding mediation administered by the American Arbitration Association under its Construction Industry Mediation Rules (the “Rules”), except as otherwise expressly set forth in this Section. To the extent any provision of the Rules is inconsistent with this Section, this Section controls.

17.2 For purposes of this Section: (a) “agreement to construct the Project” means an agreement for the construction of the Project; (b) “construct” or “construction” refers to and includes the erection, construction, alteration, or repair of the Project; (c) “party” or “parties” refers to the parties listed in Section 17.3; and (d) “Project” means the work to be performed pursuant to this Agreement.

17.3 The Town and any party contracting with the Town or with any first-tier or lower-tier subcontractor for the construction of the Project agree to participate in good faith in any mediation of a dispute subject to this Section, including without limitation the following parties (if any): engineer(s), surveyor(s), construction manager, prime contractor(s), surety(ies), subcontractor(s), and supplier(s).

17.4 The Contractor and all other parties shall include this Section 17 in every agreement to which any of them is a party for the construction of the Project, without variation or exception. Failure to do so constitutes a breach of this Agreement, and the party failing to include this Section shall indemnify and hold harmless the remaining parties from and against any and all claims, including reasonable attorneys' fees and other costs of litigation, arising in any manner from such breach. The parties are intended to be and shall be third-party beneficiaries of this Section.

17.5 The following disputes are not subject to mediation: (i) a dispute seeking a non-monetary recovery;

and (ii) a dispute seeking a monetary recovery of $15,000 or less.

17.6 A dispute seeking the extension of any time limit set forth in an agreement to construct the Project shall be subject to mediation only if the damages that would be suffered by the party seeking the extension would exceed $15,000 if the disputed extension is denied. To the extent liquidated damages are set forth as the measurement of damages for failure to meet such time limit, those liquidated damages shall be the exclusive standard for determining the amount of damages associated with such dispute.

Town of China Grove — Street Resurfacing, Contract No. STR-27 | Page 13 of 62

17.7 A dispute is limited to the recovery of monetary damages from the same transaction or occurrence against a single party or two or more parties alleged to be liable jointly, severally, or in the alternative.

Two or more disputes may not be consolidated or otherwise combined without the consent of all parties to such disputes.

17.8 In addition to such matters as are required by the Rules, a request for mediation shall include the amount of the monetary relief requested.

17.9 Prior to requesting mediation, a party must form a good faith belief, based on a reasonable and prudent investigation, that it is entitled under applicable law to recover the monetary amount to be included in the request from one or more of the remaining parties.

17.10 If a party breaches Section 17.9, it shall indemnify and hold harmless all other parties from any costs, including reasonable attorneys' fees and other costs of litigation, and damages incurred by such other parties arising from the breach.

17.11 All expenses incurred by a party in preparing and presenting any claim or defense at the mediation shall be paid by that party. All other expenses of the mediation, including filing fees and the mediator's required travel and other expenses, shall be borne one half by the party requesting the mediation, with the remaining parties paying equal shares of the remaining expenses; provided that if the Town is named as a party to the mediation, the Town shall pay at least one-third of the mediation expenses and costs divided among the parties.

17.12 The mediation shall be held at a location agreeable to the mediator and all parties; provided that if no agreement can be reached, the mediation will be held at such location in Rowan County as the mediator shall determine.

17.13 The provisions of this Section are subject to any other provision of this Agreement concerning the submission, documentation, or proof of any claim or dispute. Such other provisions shall apply in full force and shall be satisfied as a condition precedent to mediation.

17.14 Mediation in accordance with this Section shall be a condition precedent to institution of any legal or equitable proceeding seeking monetary recovery based on any dispute subject to mediation under this Section.

Sec. 18. Breach.

In the event of a violation of any material term of this Agreement, the non-violating party may terminate the Agreement upon written notice. Such notice shall state the violation with specificity and shall give ten

(10) days to cure. The cure period shall be measured as ten (10) days from the date of receipt of notice by the violating party or, if that date is not known, thirteen (13) days from the date the notice is placed in the United States mail. If the violation remains uncorrected at the end of the cure period, the Agreement shall terminate without further action by the non-violating party. Any remaining disputes shall be subject to the dispute resolution procedure set forth above, if applicable.

[Signature Page to Follow]

Town of China Grove — Street Resurfacing, Contract No. STR-27 | Page 14 of 62

IN WITNESS WHEREOF, the Town of China Grove and the Contractor have caused this Contract to be executed by their respective duly authorized agents or officers.

TOWN OF CHINA GROVE: [CONTRACTOR]

By: ______________________________

Franklin D. Gover III, Town Manager

Date: ____________________________

By: ______________________________ Signature of President / Vice President / Manager / Partner

Printed Name: _____________________

Title: ____________________________

Date: ____________________________

ATTEST:

Pamela Mills, Town Clerk

ATTEST:

By: ______________________________ Signature of Vice President, Secretary, or other officer

Printed Name: _____________________

Title: ____________________________

(SEAL)

APPROVED AS TO FORM:

Town Attorney, Town of China Grove

PRE-AUDIT CERTIFICATE

This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act.

Finance Officer, Town of China Grove Date: _____________________________________

Town of China Grove — Street Resurfacing, Contract No. STR-27 | Page 15 of 62

EXHIBIT “A”

SCOPE OF SERVICES / FEE FOR SCOPE OF SERVICES

This document is an Exhibit to the Agreement for Street Resurfacing, Contract No. STR-27, between the TOWN OF CHINA GROVE and [CONTRACTOR], dated as of the Notice to Proceed Date specified on

EXHIBIT “K.”

Scope of Services The work under this contract includes, but is not limited to, the selected Contractor performing crack and joint sealing, patching, leveling, milling, resurfacing, re-striping, re-marking, re-installation of permanent raised pavement markings, and incidental concrete work on designated streets in the Town of China Grove as identified by the Public Works Department, including mobilizations and demobilizations; all labor including special subcontracting; permits, licenses, and certifications; handwork, fabrications, tools, equipment, all materials, miscellaneous hardware, consumables, preparations, and adhesives; excavation and grading; hauling; traffic control and work zone safety operations; site security and security of the work; infrastructure removals and resettings; incidental infrastructure relocations; removal of debris, cleanup, and disposal; seeding and mulching; testing; touch-up repairs; and all else required as necessary in accordance with the Contract documents to the satisfaction of the Director and the Town of China Grove.

The streets designated for work under this contract are listed at Attachment 1 — Street Schedule. Streets included in this contract are on the Town of China Grove municipal street system as reported for State Street-Aid (Powell Bill) purposes under N.C. Gen. Stat. § 136-41.1 et seq., unless otherwise noted.

All work and materials shall meet and be in accordance with the provisions of the Occupational Safety and Health Administration, the North Carolina Department of Labor, the NCDOT Standard Specifications for Roads and Structures (latest edition), the NCDOT Roadway Standard Drawings (latest edition), and the Manual on Uniform Traffic Control Devices (latest edition). The Contractor shall keep itself fully informed of all federal, State, and local laws, ordinances, and regulations.

Fee for Scope of Services The fee for services shall be on a unit price basis, whereby the quantities of items satisfactorily installed, verified, and accepted by the Director or the Director's designated representative shall be the actual quantities used in determining the basis of payment. Payment at the unit prices for the various items listed on the Bid Form will be full compensation for all items covered by the work.

Invoices shall be directed to: Town of China Grove, Attention: David Ketner, Director of Public Works, 333 North Main Street, China Grove, North Carolina 28023, with a copy to the Town Finance Officer.

Should changes or extra services be needed that would cause a cost overrun, the Contractor shall consult with the Town for adjustment by written change order prior to conducting the work. No payment will be made for work performed outside the scope of this Contract absent a duly executed change order.

The budget for the scope of services is based on historical cost data, engineering judgment, the Town's pavement condition assessment and prioritization, and the FY 2026-2027 Budget Ordinance adopted by the China Grove Town Council. All obligations are subject to N.C. Gen. Stat. § 159-28.

Town of China Grove — Street Resurfacing, Contract No. STR-27 | Page 16 of 62

EXHIBIT “B”

CONTRACTOR AFFIDAVIT AND CERTIFICATIONS

STATE OF NORTH CAROLINA

COUNTY OF ROWAN

I, ______________________________________ (the individual signing below), being duly authorized by and on behalf of ______________________________________________ (the legal name of the entity entering the contract, “Employer”), after first being duly sworn, hereby swear or affirm as follows:

A. E-Verify (N.C.G.S. Ch. 64, Art. 2; N.C.G.S. § 143-133.3)

1. Employer understands that E-Verify is the federal E-Verify program operated by the United States Department of Homeland Security and other federal agencies, or any successor or equivalent program used to verify the work authorization of newly hired employees pursuant to federal law, in accordance with N.C. Gen. Stat. § 64-26.

2. Employer understands that employers must use E-Verify. Each employer, as defined in N.C. Gen. Stat.

§ 64-25, after hiring an employee to work in the United States, shall verify the work authorization of the employee through E-Verify in accordance with N.C. Gen. Stat. § 64-26(a). Employer attests that it is in compliance with the requirements of federal and State law relevant to E-Verify.

3. Employer is a person, business entity, or other organization that transacts business in the State of North Carolina. Employer employs 25 or more employees in this State (mark Yes or No): a. YES ______

b. NO ______

4. Employer attests that all subcontractors employed by it as part of this contract comply with the requirements of E-Verify, and Employer will ensure compliance with E-Verify by any subcontractors subsequently hired by Employer as part of any contract with the Town of China Grove.

5. Employer shall have a continuing duty to inform the Town of China Grove of any change to this sworn information.

B. Iran Divestment Act (N.C.G.S. § 147-86.55 et seq.)

6. Employer certifies that, as of the date of this affidavit, it is not listed on the Final Divestment List created by the North Carolina State Treasurer pursuant to N.C. Gen. Stat. § 147-86.58, and that it will not utilize on this contract any subcontractor that is identified on that list.

C. Companies Boycotting Israel (N.C.G.S. § 147-86.81)

7. Employer certifies that it is not identified on the list of restricted companies determined by the State Treasurer to be engaged in a boycott of Israel, and that it will not utilize on this contract any subcontractor that is so identified.

D. Gifts, Favors, and Conflicts of Interest (N.C.G.S. §§ 133-32, 14-234)

8. Employer certifies that it has not offered, given, or agreed to give any Town of China Grove official or employee any gift or favor in violation of N.C. Gen. Stat. § 133-32, and that, to the best of its knowledge, no Town official or employee has an interest in this contract prohibited by N.C. Gen. Stat. § 14-234.

E. Non-Collusion

9. Employer certifies that this bid is genuine and not made in the interest of or on behalf of any…