-
Date:XX/SubcontraSubcontraCostCode
ThisAgreeGSEConst6950PresLivermoreTel:9254Fax:9254hereinafteFirmNamFirmAddFirmCityTel:FirmFax:FirmhereinafteudProjecJobShipAJobShipC
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hereinaftercalledOwner.WHEREAScopiesoftheDirectContractOwneragreementareonfileintheofficeoftheContractorandhavebeenexaminedbytheSubcontractor.Thelender,ifany,forthisProjectis(specifybranchaddress):FirmNameFirmAddressFirmCity,FirmStateFirmZipTel:FirmPhoneFax:FirmFaxIftheinformationaboveisnotcompleted,thereisnoknownlender.NOWTHEREFOREitisagreed:SECTION1.ENTIREAGREEMENT;SCOPEOFWORK
Subcontractoragreestofurnishalllabor,services,materials,supervision,installation,cartage,hoisting,supplies,
insurance,equipment,scaffolding,tools,andotherfacilitiesofeverykindanddescriptionforpromptandefficientexecutionofthefollowingdescribedwork(theWork):udScopeOfWorkProvideudNumofSubmittalsReqsetsofsubmittalsforSubcontractorWork.AllsubmittalsarerequiredbyudSubmittalsReqBy.Thephrase
ContractDocuments asusedherein isdefined tomean thisAgreement and
ExhibitsA(Insurance Requirements), [LIST OTHER EXHIBITS] thereto,
and any other attachments
referencedtherein;andtheagreementbetweenDirectContractorandOwner,
includingtheplans,specifications,general conditions, special
provisions drawings, specifications, addenda,
amendments,modifications,exhibits,andallotherdocumentsformingorbyreferencemadeapartthereof(DirectContract).ThisAgreement,
and all of the foregoing documents, shall be considered a part of
this Agreement byreference thereto, and Subcontractor agrees to be
bound to the Direct Contract by the terms
andprovisionsthereof,inthesamemannerthatDirectContractorisboundtoOwner.Subcontractor
certifies and agrees that it is fully familiar with all of the
terms of this
Agreement,includingtheContractDocuments,allofwhichSubcontractoracknowledgeshavebeenmadeavailabletoit,thelocationofthejobsite,andtheconditionsunderwhichtheWorkistobeperformedandthatitentersintothisAgreementbaseduponitsowninvestigationofallsuchmattersandisnotrelyingonanyopinionsor
representationsofDirectContractor.ThisAgreement isa fully
integratedagreementandrepresents the entire agreement betweenDirect
Contractor and Subcontractor, and supersedes
anypriororalorwrittenagreementsorrepresentations.TheContractDocumentsare
incorporated in thisAgreement by reference, and Subcontractor
agrees to bind its subcontractors and suppliers to the
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ContractDocumentsinsofarastheyrelateinanyway,directlyorindirectly,totheWorkcoveredbythisAgreement.
Where, in theContractDocuments, reference ismade toContractor,and
theWorkorspecificationsthereinpertaintoSubcontractorstrade,craftortypeofwork,suchworkorspecificationsshallbe
interpretedtoapplytoSubcontractor insteadoftoDirectContractor.
ThepartiesintendthatalltermsofthisAgreementbeconsideredascomplementary.However,intheeventofaconflictbetweenoramongthe
terms of this Agreement or the Contract Documents, the higher
standard or greater responsibility
forSubcontractorshallprevail.IntheeventofaconflictbetweenthisAgreementortheContractDocumentsontheonehand,andthelawsapplicabletothisAgreement,theAgreementandtheContractDocumentsshallbeenforceabletothemaximumextentpermittedbyapplicablelaw.ThisAgreementincludes,withoutlimitation,thefollowingaddenda:udAddenda.ThefollowingalternatesareincludedinthisAgreement:udAltNotesThefollowingadditionalprovisionsareincludedinthisAgreement:
udInclusionsNotesThefollowingareexcludedfromthisAgreement.
udExclusionsNotes
SECTION2.PAYMENT
(a)
DirectContractoragreestopaySubcontractorfortheperformanceofthisAgreement,asspecified,herein,thesumof:TotalOrigSLProjectsubject
to additions and deductions for changes agreed upon or determined,
as
hereinafterprovided.Bythe22thofeachmonth,SubcontractormustdelivertoDirectContractorsofficeattheProjectanapplicationforpayment,onDirectContractorsapplicationform,Exhibit__hereto.Subcontractorsapplication
should be based upon the Subcontractors Work performed and
materials
andequipmentinplaceupthedayjustpriortosubmittaloftheapplicationforpayment,andshouldinnoevent
forecastbillingbeyond the25thof themonth. Subcontractoracknowledges
that timelysubmissionofapplications forpayment isa critical
aspectofpaymenthereunderand
ismaterialconsiderationonDirectContractorspart in entering into
thisAgreement. Applications
receivedafterthe12thofthemonthwillnotbecomedueandpayableuntilthefollowingpayperiod,subjectto
all other conditions precedent to payment being satisfied,
including those stated in
thisAgreementandtheContractDocuments.DirectContractoragreestopaytoSubcontractormonthly
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progresspaymentsonaccountofWorkactuallyand
satisfactorilycompletedbySubcontractor, insumsequal
to___________percent (___%)of the labor,equipment,
servicesandmaterials thathave been placed in position, as reflected
inDirect Contractor's application for payment and asapproved by
Owner. The foregoing percentage shall be ninety percent (90%)
unless otherwisestatedunder thisAgreementor requiredby applicable
law. Payment shallbemade from fundsreceived from Owner within seven
(7) days of receipt of such funds paid on account
ofSubcontractorsWork,providedallother conditionshereofhavebeen
satisfiedand
therearenogroundsforwithholding.Asaconditiontopayment,Subcontractoragreestoprovidewaiversandreleases
for itselfand itssubcontractors and suppliers regardless of tier,
as well as other evidence of payment to suchpersons,
inaformsatisfactorytoDirectContractor, includingwithout
limitation,payrollaffidavits,receipts,vouchersorotherdocumentation,demonstratingthatSubcontractorhaspaidforalllabor,equipment,materials,services,taxesorothercharges
inanywayrelatingtoSubcontractor'sWorkandobligations
inconnectionwiththeProject.
UponcompleteperformanceofthisAgreementbySubcontractor,andaftertheentireworkrequiredbytheDirectContracthasbeenfullycompletedinconformitywith
theContractDocumentsandhasbeendelivered toandacceptedby
theOwner,Architect,andDirectContractor,DirectContractorwillmakefinalpaymenttoSubcontractorofthebalanceduehimunderthisAgreementfromfundspaidinfinalpaymentforworkundertheDirectContract,byOwner,orotherresponsibleparty,withinseven(7)daysinthecaseofapublicworkofimprovement,andten(10)daysinthecaseofaprivateworkofimprovement,withfundsreceivedby
Direct Contractor from Owner in final payment for work under the
Direct Contract.Subcontractor agrees to furnish, if and when
required by Direct Contractor, payroll
affidavits,receipts,vouchers, releasesofclaims for
labor,andmaterial,andagrees to furnishsame from
itssubcontractorsandsuppliersperformingworkor
furnishingmaterialsunder thisAgreement,all
informsatisfactorytoDirectContractor,and it
isagreedthatnopaymenthereundershallbemade,exceptatDirectContractorsoption,untilandunlesssuchdocumentshavebeenfurnished.DirectContractor,at
itsoption,maymakeanypaymentduehereunderbycheckmadepayable
jointlytoSubcontractor and any of its subcontractors and/or
suppliers who have performed work
orfurnishedmaterialsunderthisAgreement.Anypaymentmadehereunderpriortocompletionandacceptanceofthework,asreferredtoabove,shallnotbeconstruedasevidenceofacceptanceoracknowledgementofcompletionofanypartofSubcontractorsWork.IfOwnerorotherresponsiblepartydelaysinmakinganypaymenttoDirectContractorfromwhichpaymenttoSubcontractoristobemade,DirectContractoranditssuretiesshallhaveareasonabletime
to make payment to Subcontractor. Reasonable time shall be
determined according torelevant circumstances, but in no event
shall be less than the time Direct Contractor,
DirectContractorssureties,andSubcontractorrequiretopursuetoconclusiontheirlegalremediesagainstOwnerorotherresponsiblepartytoobtainpayment,including(butnotlimitedto)mechanicslienremedies.To
the greatest extent permitted by law, Subcontractor assumes the
risk of Owners or DirectContractors insolvencyorother inability
topay, andunderstands and agrees that
SubcontractorshallbepaidonlywhenDirectContractorispaidforSubcontractorswork.
(b)PaymentsmadetoSubcontractorshallbedeemedtobeheldintrustforbenefitofDirectContractorandofallpersonswhofurnishedlabor,equipment,andmaterialsfororonbehalfofSubcontractor,aswellas
for thebenefitof trust fundsandapprenticeshipprogramsowedmoney
inconnection
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with theProjectbySubcontractoror its lowertiersubcontractors.
Inadditiontoanyotherrightsandremediesthat
itmayhave,DirectContractorshallbeentitledtopursueaclaimforbreachoffiduciary
duty against Subcontractor in the event that Subcontractor violates
itsobligationswithrespecttofundspaidtoit.Withoutderogationtoanyotherrightsandremedies,DirectContractorshallbeentitledtosetoffagainstanyamountsowedtoSubcontractoranydebts,claims,demands,liabilitiesorothersumsowedtoDirectContractorbySubcontractor,includingthosethatarisefromotherprojectsorcontractsorthatarecontingentornotyetaccrued.
SECTION3.BONDING
IfrequestedbyDirectContractor,SubcontractorshallfurnishaPerformanceandPaymentBonds
inanamountequal to the fullsubcontractprice. DirectContractoragrees
topay for thecostof thebond,provided,however,
thatSubcontractorshallberesponsible forpaymentofanycosts inexcessof
twopercent of such bond. Such bonds shall be furnished by a Surety
satisfactory toDirect Contractor.Reasonable premiums for such
bonds, not to exceed two percent (2%), shall be paid by
DirectContractoruponreceiptofaninvoicefromtheSurety.
SECTION4.CHANGESSubcontractor shall make no changes in the Work
described in the Contract Documents and
thisAgreementexceptasdirectedbyDirectContractorinwriting.Suchchangeorwrittendirectionshallnotinvalidate
this Agreement. Direct Contractor is authorized tomake changes in
theWork,
includingdeletion,additions,andothermodifications.AllowanceforextraworkanddeductionsforomissionsshallbebymutualwrittenagreementbetweenDirect
Contractor and Subcontractor or determined in accordance with
procedures specified in
theDirectContract.TherequestedchangeinSubcontractorspricemustbesubmittedtoDirectContractorforreviewwithintheearlierofthree(3)workingdaysofthewrittenorder,orwithinsuchtimeasmaybe
required forDirectContractor toprovide timely information to
theOwner inaccordancewith
therequirementsoftheDirectContract.Failuretoprovidesuchpricingwithinthetimespecifiedshallresultinawaiverofclaimsandinnonpayment.DirectContractorshallnotbeheldliabletoSubcontractorforanyextralabor,materials,orequipmentfurnishedwithoutsuchwrittenorder.If
necessary, the Contract Price and the time for Subcontractors
performance shall be adjusted byappropriate additions or deductions
mutually agreed upon before the Subcontractor performs thechanged
work. Subcontractor shall supply Direct Contractor with all
documentation necessary
tosubstantiatetheamountoftheadditiontoordeductionfromthepriceortime.IfDirectContractorandSubcontractorcannotagreeontheamountoftheadditionordeletion,Subcontractorshallnonethelesstimely
perform the Work as changed by Direct Contractors written
direction. Once Subcontractorreceives Direct Contractors written
direction, Subcontractor is solely responsible for
timelyperformanceoftheWorkaschangedbythewrittendirection.PaymentforchangedWorkshallbemadeinaccordancewithSection2.IfSubcontractormakesanychanges
intheWorkdescribed
inSection1withoutwrittendirectionfromDirectContractor,suchchangeconstitutesanagreementbySubcontractor
that itwillnotbepaid
forthatchangedWork,evenifitreceivedverbaldirectionfromDirectContractororanyformofdirection,writtenorotherwise,
fromOwneroranyotherpersonorentity. Inaddition,Subcontractor
shallbe
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liableforanyandalllosses,costs,expenses,andliabilityofanynaturewhatsoeverassociatedwithorinanywayarisingoutofanysuchchange
itmakeswithoutwrittendirectionfromDirectContractor.
IfadisputearisesbetweenDirectContractorandSubcontractoraboutwhetherparticularWorkisachangein
the Work described in Section 1, Subcontractor shall timely perform
the disputed Work. IfSubcontractor intends tosubmitaclaim for
thedisputedWork, itshallgivepromptwrittennotice
toDirectContractorbeforeproceedingwiththeWork.
Inaddition,Subcontractorshallsubmititswrittenclaim
foradditionalcompensation for thatworkwithin ten
(10)daysaftersuchwork isperformed
insufficientdetailforDirectContractortomakeanevaluationofthemeritsoftheclaim.SubcontractorsfailuretoeithergivethewrittennoticebeforeproceedingwiththeWorkortosubmitthewrittenclaimwithintheten(10)daysconstitutesanagreementbyitthatitwillnotbepaidforthedisputedWork.Nochange,alteration,ormodification
toordeviation from thisAgreement, theContractDocuments,including
theDirect contract, plans, or specifications,whethermade in
themanner provided in
thissectionornot,shallreleaseorexonerate,inwholeorinpart,anybondoranysuretyonanybondgivenin
connectionwith thisAgreement,andnonotice is required tobegiven to
such suretyofany
suchchange,alteration,modification,ordeviation.DailytagsmustbesubmittedtoandsignedbyDirectContractorforallextraworkonthedaytheextraworkisperformed.Subcontractoragreesthatitsfailuretodososhallresultinandconstitutesawaiverofclaims,andthatnopaymentshallbedueforsuchwork.\If,
inordertoexpeditethecompletionoftheProject,DirectContractordirectsSubcontractortoworkovertime,asecondshift,and/ortoworkSaturdays,Sundaysoronlegalholidays(hereinaftercollectivelyreferredtoas"overtime"),forreasonsotherthanSubcontractor'sfailuretofulfill
itsobligationsunderthe Contract Documents, Subcontractor shall work
such overtime and it is understood that DirectContractor shallpay
to Subcontractoronly thepremiumportion (thedifferentialbetween
theactualrateandregularrate)oftheovertime.
Timeslipscoveringovertimemustbereviewed inwritingandsigned daily by
Direct Contractor as a condition precedent to payment by Direct
Contractor toSubcontractor for suchwork. DirectContractor's
reviewand signatureon such time slips
shallbeanacknowledgementofhoursworked,but shall not be an
acknowledgement that the Subcontractor isentitled tobepaid
forovertimepremium. Nooverheadorprofit is tobechargedby,orallowed
to,Subcontractorforovertime. If,
inDirectContractor'ssolediscretion,Subcontractor isbehindschedulein
theWork and/ordelaysor interfereswith
theprogressofotherWorknecessary to complete
theProjectonschedule,orotherwise fails to fulfill
itsobligationsunder theContractDocuments, then, ifdirected by
Direct Contractor, Subcontractor shall use overtime and/or increase
its manpower, asdeemednecessarybyDirectContractor, toexpedite
theprogressof theWork,and the
totalcostandexpensethereofshallbeborneentirelybySubcontractor.SECTION5.PROSECUTIONOFTHEWORK(a)Timeisoftheessence.SubcontractorshallprosecutetheWorkundertakeninapromptanddiligent
manner, in strict accordance with the Direct Contractors
directives and Direct
Contractorsschedule,revisedifnecessary,astheworkprogresses,including,withoutlimitation,wheneversuchWork,orpartofit,becomesavailable,oratsuchothertime(s)asDirectContractormaydirect,andsoastopromotethegeneralprogressoftheentireconstruction,andshallnotbydelayorotherwiseinterferewithorhinder
theworkofDirectContractororanyother
subcontractor.SubcontractorshallcomplywithDirectContractorsschedule,andshouldSubcontractorfailtocompletetheWorkwithin
the time specified in the contract schedule, Subcontractor agrees
to reimburse Direct
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ContractorforanyandallliquidatedoractualdamagesthatmaybeassessedagainstandcollectedfromDirectContractorwhichareattributabletoorcausedbySubcontractor'sfailuretoperformtheWorkrequiredbythisAgreementwithinthetimefixedorinthemannerprovidedforherein,andinaddition,agreestopaytoDirectContractorsuchotheradditionaldamagesasDirectContractormaysustainbyreasonofsuchdelaybySubcontractor.ThepaymentofsuchdamagesshallnotreleaseSubcontractor
from itsobligation tootherwise fullyperform thisAgreement.
Subcontractor
shallcoordinatetheWorkcoveredbythisAgreementwiththatofallothercontractors,subcontractors,and/orsuppliersandofDirectContractor,inamannerthatwillfacilitatetheefficientcompletionoftheentirework.DirectContractorshallhavetherighttodecidethetimeandorderinwhichvariousportionsof
theworkshallbe installedand the relativepriorityof
theWorkofSubcontractorandothersubcontractors,and,ingeneral,allothermatterspertainingtothetimelyandorderlyconductof
theWork of Subcontractor on the premises. Subcontractor
acknowledges that itwill have toperformWork in areas occupied by
other forces, and that itwill have to perform itsWork in
asequenceormannertoaccommodateandfacilitatetheprogressoftheworkasawhole,ratherthanin
themannermostefficientordesirable
forSubcontractor.Subcontractor'sprice
isbaseduponDirectContractorexercising the rights indicated in this
Section5andupon Subcontractorhavingplanned to perform itsWork under
such circumstances. Subcontractor shallmeet
allmilestonedatesassetforthintheContractDocuments,andanyrevisionsthereto.SubcontractorsfailuretomeetmilestonecompletiondatesshallbeamaterialbreachofthisAgreement.
(b) In the event that Subcontractor fails to comply or becomes
disabled from complying with the
provisionshereinastocharacterortimeofperformance,andthefailureisnotcorrectedwithintwoworking
days afterwritten request by Direct Contractor to Subcontractor,
Direct Contractor, bysubcontract or otherwise, may without
prejudice to any other right or remedy, take over andcomplete
theperformanceof thisAgreementat
theexpenseofSubcontractor,orwithout takingover the Work, may
furnish the necessary materials and/or employ the workmen necessary
toremedy the situation at the expense of Subcontractor. IfDirect
Contractor takes over
theWorkpursuanttothisparagraphitisspecificallyagreedthatDirectContractormaytakepossessionofthepremisesandofallmaterials,toolsandequipmentofSubcontractoratthesiteforthepurposeofcompletingtheWorkcoveredbythisSubcontract.
(c) It
isagreedthattheSubcontractorshallbeconsideredasdisabledfromsocomplyingwhenevera
petition in Bankruptcy or for the appointment of a receiver is
filed against him. Upon
theappointmentofareceiverforSubcontractororuponSubcontractormakinganassignmentforthebenefitofcreditors,orifSubcontractorseeksprotectionundertheBankruptcyCodeorcommitsanyotheractofinsolvency,DirectContractormay,absentanyapplicablelegallimitation,terminatethisAgreementupongivingtwo(2)workingdayswrittennotice,bycertifiedmailorovernightdeliveryexpressmail,
to Subcontractor and its surety, if any. If an order for relief is
entered under theBankruptcyCodewith respect
toSubcontractor,DirectContractormay terminate
thisAgreementupongivingfortyeight(48)hourswrittennotice,bycertifiedorovernightdeliveryexpressmail,toSubcontractor,itstrustee,anditssurety,ifany,unlessSubcontractor,thesurety,orthetrustee:
i)promptlycuresalldefaultsandprovidesadequateassuranceoffutureperformance;ii)compensatesDirectContractorforactualpecuniarylossresultingfromsuchdefaults;andiii)assumestheobligationsofSubcontractorwithinstatutorytimelimits.
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IfSubcontractor isnotperforming
inaccordancewiththescheduleofworkatthetimeofenteringan order for
relief or at any subsequent time,Direct Contractor,while awaiting
the decision ofSubcontractoror
itstrusteetorejectortoacceptthisAgreementandprovideadequateassuranceof
its ability to perform hereunder, may avail itself of such remedies
under this section as arereasonablynecessary tomaintain
thescheduleorwork.DirectContractormayoffsetagainstanysums due or to
become due Subcontractor all costs incurred in pursuing any of the
remediesprovidedhereunder,including,butnotlimitedto,reasonableoverhead,profitandactualattorneysfees
incurredasaresultofSubcontractorsnonperformance.Subcontractorshallbe
liableforthepaymentof any amountbywhich suchexpensemayexceed
theunpaidbalanceof theContractPrice.
(d)Subcontractorshallkeep,onthesiteduringtheprogressoftheWork,acompetentsuperintendent
whoshallbetheauthorizedrepresentativeofSubcontractor.Directionsandcommunicationstohimfrom
Direct Contractor in connection with the Work shall be treated as
directions andcommunicationstoSubcontractor.
(e) Subcontractor shall keep the premises and surrounding area
free from accumulation of waste
materials or rubbish caused by or in any way related to
operations performed under thisAgreement. Subcontractor shall
provide its own dumpster for the removal of debris.
IfSubcontractordoesnotcomplywiththisrequirement,DirectContractor,on24hoursnotice,maycompletethecleanupworkandbackchargeSubcontractor.
SECTION6.DELAYS(a) If Subcontractor is delayed in
theprosecutionor completionof theWorkby the act,neglector
defaultofOwner,ArchitectorDirectContractor,orifSubcontractorisdelayedwaitingformaterialsrequiredbythisContracttobefurnishedbyOwnerorDirectContractor,orbydamagecausedbyfireorothercasualtyforwhichSubcontractor
isnotresponsible,orbythecombinedactionoftheworkmen,innowaycausedbyorresultingfromfaultorcollusiononthepartofSubcontractor,orintheeventofa
lockoutbyDirectContractor,thenthetimeherein fixed
forthecompletionoftheWork shall be extended the number of days that
Subcontractor has thus been delayed, but noallowance or extension
shall bemade unless a claim therefore is presented inwriting
toDirectContractorwithin threebusinessdaysof the commencementof
suchdelayor
twobusinessdayspriortothetimethatDirectContractormustgivenoticetoOwner,whicheverissooner,andunderno
circumstances shall the time of completion be extended to a
datewhichwill
preventDirectContractorfromcompletingtheentireprojectwithinthetimeallowedDirectContractorbyOwnerfor
such completion. If and only to the extent that Section 7102 of the
Public Contract Coderequiresasamatterofpublicpolicy that
subcontractorbe compensated fordelays: (1) recoveryshall be
permitted only for those circumstances recognized under the
Contract Documents ascompensable delays; (2) recovery shall only be
allowed for those delays that are unreasonableunder
thecircumstances involvedandnotwithin thecontemplationof
theparties, in lightof thenatureof theproject,
industrycustomandpractice,andother relevant factors; (3)
recoverymayonlybehadforthoseitemsofcostspermittedundertheDirectContract,plusthoseadditionalitemsof
costs, if any, that under Section 7102 of the Public Contract Code,
requires be paid; (4)Subcontractor is bound by and must comply with
all provisions of the Direct Contract andSubcontract (and any
portions thereof) that are not in conflict with Section 7102,
includingprovisionsconcerningnoticeandcertificationofclaimswith
respect tocompliancewith theFalse
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ClaimsAct.ForpurposesofSection6,aclaimthatSection7102ofthePublicContractrequiresbepermitted,
where the foregoing conditions have been satisfied, shall be
referred to as anAuthorized7102Claim.
(b)Except for an Authorized 7102 Claim, Subcontractors sole
remedy for delay, disruption or
suspension shall be an extension of time, and Subcontractor
shall not be entitled to recoveradditional compensation or damages
for delays, disruption or suspension, including withoutlimitation,
claims for anyproductivity losses, efficiency losses, increased
supervisory costs,homeofficeoverhead,extended
jobsiteoverhead,disruptioncosts,"rippleeffect"costs,tradestacking,compression,
acceleration, consequential damages, damages of any other type,
lost profits, lostopportunity costs, or similar damages or costs,
however denominated, as well as any
othermonetaryrelief,foranydelay,disruptionorsuspensionoftheWork(collectively,"ImpactCostsAndConsequentialDamages").ExceptforAuthorized7102Claims,SubcontractorwaivesanyClaimforImpact
Costs and Consequential Damages. However, in the event Direct
Contractor obtainsadditional compensation from Owner on account of
delays that otherwise would benoncompensable under this Section 6,
Subcontractor shall be entitled to such portion of
theadditionalcompensationsoreceivedbyDirectContractor fromOwneras
isequitableunderallofthe circumstances. In the event that Direct
Contractor prosecutes a claim against Owner
foradditionalcompensationforanydelay,SubcontractorshallcooperatefullywithDirectContractorinthe
prosecution thereof and shall pay costs and expenses incurred in
connection therewith,includingactualattorneys fees, to theextent
that saidclaim ismadebyDirectContractorat therequest of
Subcontractor.Nothing in this Section 6 shall be deemed to
authorize recovery forImpactCostsAndConsequentialDamagesor
towaiveDirectContractor's right to recovery
fromOwnerforsuchdamages.
(c)Noallowance foranextensionoftime,
foranycausewhatever,shallbeclaimedbySubcontractor
unlessSubcontractor shallhavemadewritten
requestuponDirectContractor, for suchextensionwithin two working
days after the cause of such extension occurred, or if the Direct
Contractprovidesforashorterperiod,withinsufficienttimetopermitDirectContractortogivenoticetotheOwnerwithinthetimeallowedbytheDirectContractforsuchnotice.
(d)Noallowanceofanextensionof time shall, inanyevent,bemade
toSubcontractor fordelayby
Subcontractor inpreparingdrawingsor in securingapprovalof
theArchitectorEngineer
theretowhensuchdrawingsarenotproperlypreparedorwhenSubcontractorbytheexerciseofreasonablediligenceandjudgmentcouldhaveanticipatedandavoidedthedelay.
SECTION7.COMMUNICATIONS
AllcommunicationsbetweenSubcontractorand
theArchitect,EngineerorOwnerwith respect to
theWorkshallbetransmittedthroughDirectContractor.SECTION8.INSURANCESubcontractor
and its lower tier subcontractors and suppliers shall comply with
the
insurancerequirementsandprovisionsstatedinthisSection8.DirectContractorsdelayorfailuretoenforceinatimelymanneranyoftheprovisionsofthisAgreement,includingwithrespecttoinsurance,shallnotactasawaiverofanyoftheseprovisionsatalaterdateintheperformanceofthisAgreement.
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Subcontractor shall, at its expense, procure and maintain
insurance on all of its operations,
withcompaniesacceptabletoDirectContractor,asfollows:Workers'CompensationandEmployersLiabilityInsurance.WorkersCompensationinsuranceshallbeprovided
as required by any applicable law or regulation. Employers
Liability insurance shall beprovidedinamountsnotlessthan:
$1,000,000eachaccidentforbodilyinjurybyaccident$1,000,000policylimitforbodilyinjurybydisease$1,000,000eachemployeeforbodilyinjurybydisease
IfthereisanexposureofinjurytoSubcontractorsemployeesundertheU.S.LongshoremanandHarborWorkersCompensationAct,theJonesActorunderlaws,regulations,orstatutesapplicabletomaritimeemployees,coverageshallbeincludedforsuchinjuriesorclaims.Awaiver
of subrogation endorsementmust be obtained and provided, and the
following coveragesmustbenotedonanyevidenceof insurance:
workers'compensation statutory;employers
liability;excessliability(totheextentrequiredbyOwnerortheContractDocuments).Renewalcertificatesshallbeprovidedattheendofthepolicyperiod.General
Liability Insurance. Subcontractor shall
carryprimaryCommercialGeneral Liability insurancecovering all
operations by or on behalf of Subcontractor providing insurance for
bodily injury andproperty damage liability for the limits of
liability indicated below and including, but not limited
to,coveragefor:(1) premisesandoperations;(2) products and completed
operations will be maintained for three years following project
completion;(3)
contractualliabilityinsuringtortobligationsassumedbySubcontractorinthisContract;(4)
broadformpropertydamage(includingcompletedoperations);(5)
explosion, collapse and underground hazards (including subsidence
and any other earth
movement);and(6) personalinjuryliability.
The limitsof liabilityshallbenot
lessthantheamountsrequiredofSubcontractorundertheContractDocuments,butinnoeventlessthan:
$1,000,000eachoccurrence(combinedsinglelimitforbodilyinjuryandpropertydamage);$1,000,000forpersonalinjuryliability;$2,000,000aggregateforproductscompletedoperations;$2,000,000generalaggregate.
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ThegeneralaggregatelimitshallapplyseparatelytoSubcontractorsworkunderthisContract.Ifeitherdefense
costsare included in theGeneralAggregate limitor if
theGeneralAggregate
limitdoesnotapplyseparatelytothisproject,thentherequiredGeneralAggregatelimitistobe$5,000,000.Direct
Contractor, its officers, directors and employees, and Owner shall
be named as additionalinsuredsunder theCommercialGeneral
LiabilitypolicyandExcess Liabilitypolicyand such insuranceafforded
theadditional insureds shallapplyasprimary insurance.Anyother
insurancemaintainedbyDirectContractororOwnershallnotbecalledupontocontributewiththisinsurance.Coverage
for theDirectContractor, itsofficers,directorsandemployeesand
theOwnerasadditionalinsuredsshallbeprovidedbyanendorsementprovidingcoverageatleastasbroadasAdditionalInsured(Form
B) endorsement form CG 2010 1185 as published by the Insurance
Services Office (ISO)
(orequivalent).Coverageforadditionalinsuredsmustincludeallofthecoveragesrequiredunderitems16above,
including products/completed operations coverage for the additional
insureds.
Additionalinsuredendorsementwillbeprovidedforthreeyearsfollowingprojectcompletion.Subcontractor
on behalf of itself and its insurerswaives all rights againstDirect
Contractor and anyconstructionmanager, includingsubrogationrights,
for loss, liability,costs,expenseordamage to
theextentsuchlossordamageiscoveredbyinsurance.Claims Made/Self
Insurance Provisions. Subcontractor shall not provide general
liability insuranceunder any Claims Made General Liability form
without the express prior written consent of
DirectContractor.Anyselfinsuranceprogramprovidingcoverageinexcessof$25,000peroccurrencerequiresthepriorwrittenconsentofDirectContractor.Automobile
Liability Insurance. Subcontractor shall carry automobile liability
insurance,
includingcoverageforallowned,hired,andnonownedautomobiles.The
limitsofliabilityshallbenotlessthan$1,000,000combinedsingle
limiteachaccidentforbodily injuryandpropertydamage.
Coverageshallnotbeprovidedona"modifiedoccurrence"ora"claimsmade"basis.
CoverageshallbeprovidedonAccord (01/95or later). DirectContractor,
itsofficers,directorsandemployees,andOwner
shallbenamedasadditionalinsuredsunderthepoliciesrequiredbythisparagraph.Additional
Requirements. All insurance under this provision (including, but
not limited to, generalliability, automobile liability, and workers
compensation and employers liability insurance, shall
beprovidedbyaCaliforniaadmittedcarrierwithanA.M.Best'sRatingofAorbetter,financialcapacityVIIorgreater
(except for State FundofCalifornia forworkers compensation
coverage).General liabilityinsurance shallbewrittenona format
leastasbroadas ISOoccurrence
formCG0001;AutomobileLiabilityInsuranceshallbeprovidedpursuanttoacoverageformatleastasbroadasISOformCA0001.DirectContractorreservestheright,initssoleandsubjectivediscretion,torejectaninsurerandrequireSubcontractortoobtainpoliciesfromanotherinsurer.
Certificates of insurance, as evidence of the insurance required
by this Contract and including therequiredadditional
insuredendorsement(s)shallbefurnishedbySubcontractortoDirectContractornolaterthanthirty(30)dayspriortothetimethatSubcontractorfirstperformsanyworkinconnectionwith
the Project or enters into this Agreement, whichever is earlier.
Certificates shall set forthdeductible amounts applicable to each
policy and all exclusions or limitations not set forth in
ISOCommercialGeneralLiabilityFormCG0001.TheDirectContractormayallowdeductibleprovisions
ifSubcontractor iswillingto increaseretentionsaccordingly.Standard
ISOFormCG0001exclusionswill
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12
also be allowed.Allowance of any additional exclusions or
coverage limiting endorsements is at thediscretionof
theDirectContractorandSubcontractorsbid shallbe subject
toupwardadjustment
tocompensatefortheexistenceofsuchexclusions.Subcontractorsinsuranceandadditionalinsuredcoverageshallnotincludethefollowingexclusionsorprovisions:
crosssuits and/or crossinsureds exclusion of coverage, mold/water
damage/earthmovementexclusions,requirementsbytheinsurerthatsubcontractorsorsuppliersmaintaininsuranceoragreetodefendorindemnifyDirectContractororowner.Subcontractorshallcauseitspoliciestobeamendedorendorsedtoremoveanysuchexclusions,provisions,orlimitations.NotationonanAcordformisNOTacceptableasevidenceofcompliancewithrequirements,includingwithout
limitation,requirementswithrespecttoadditional
insureds,noticeofcancellation,completedoperations,etc.Regardless of
the allowance of exclusions, coverage limitations or deductibles by
the
Subcontractor,Subcontractorshallberesponsibleforanydeductibleamountoranylossarisingoutofcoveragedenialsby
its insurance carrier(s).Certificatesof insurance shallprovide that
therewillbenocancellationorreductionofcoveragewithoutfirstgivingthirty(30)dayspriorwrittennoticetoDirectContractor.AnyacceptanceofinsurancecertificatesbyDirectContractorshallinnowaylimitorrelieveSubcontractorofitsdutiesandresponsibilitiesunderthisAgreement,
includingthedutytodefend,
indemnify,andholdharmlessOwner.Subcontractor shall take such steps
as are necessary to assure Subcontractors compliance with
itsobligations.Shouldanyinsurancepolicylapseorbecancelledduringthecontractperiod,Subcontractorshall,priortotheeffectiveexpirationorcancellationdate,furnishtheDirectContractorwithevidenceofrenewalorreplacementofthepolicy.Failuretocontinuouslysatisfyinsurancerequirementsashereinprovided
isamaterialbreachof contract. In theeventSubcontractor fails
tomaintainany
insurancecoveragerequired,DirectContractormay,butisnotrequiredto,maintainsuchcoverageandchargetheexpensetoSubcontractororterminatethiscontract.Any
acceptance of insurance certificates by Direct Contractor shall in
no way limit or relieveSubcontractor of its duties and
responsibilities under this Contract including the duty to
indemnify,defendandholdharmlessDirectContractorandotherpersonsassetforthintheContractDocuments.Nowork
shallbeperformedby Subcontractorat theproject siteuntil
certificatesandendorsementshavebeenfurnishedandapproved.Paymentmaybewithheld,attheoptionoftheDirectContractor,untilrequiredcoveragehasbeenobtained,andcertificatesandendorsementshavebeenfurnished,orifuponreceiptofacancellationnoticeonapolicy,untilwithdrawalofthenoticeorthereinstatementofthecancelledpolicy.Insurance
coverage in theminimum amounts set forth herein shall not be
construed to relieve theSubcontractor for liability inexcessof such
coveragenor shall itpreclude theDirectContractor
fromtakingsuchotheractionsasisavailabletoitunderanyotherprovisionofthecontractorlaw.Ifhigherlimitsorother
formsof insurancearerequired in
theContractDocuments,Subcontractorwillcomplywithsuchrequirements.Additional
insured endorsements shall be obtained and furnished to Direct
Contractor up to andthrough the end of the limitations periods
under Code of Civil Procedure Section 337.15, and shall
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includeall coverage requiredhereunder, including
completedoperations coverage.
FailurebyDirectContractortorequestsuchendorsementsortogivenoticeoftheirnothavingbeenfiledshallnotwaivethisrequirement.
Subcontractorshallnotprovideany
liabilitycoverageunderawastingpolicyorotherformofpolicythatreducestheamountofcoverage,inwholeorinpart,byamountsexpendedondefenseofclaims.Thefollowingadditionalrequirementsshallalsobesatisfied:(a)
HazardousMaterials. If Subcontractor and/or its subcontractors or
suppliers, regardless of tier,
performremediationofhazardousmaterialsoriftheiroperationscreateanexposuretohazardousmaterials
as those terms are defined in federal, state or local law,
Subcontractor and
itssubcontractorsandsuppliersmustobtainaContractorsPollutionLiabilitypolicywith
limitsnotless than $1,000,000 per occurrence and not less than
$2,000,000 aggregate for Bodily Injury,Personal Injury and Property
Damage, naming Direct Contractor as an additional insured.
IfSubcontractor or its subcontractors or suppliers haul hazardous
material (including, withoutlimitation,waste), the policymust
extend pollution coverage to the transportation of
hazardousmaterialsorpollutantsbywastehaulingvehicles.
IfSubcontractor issubjecttotheMotorCarrierActof 1980,
theMotorCarrierAct endorsementMCS90mustbeobtained and attached to
thepolicy.
(b)Professional Liability. If Subcontractor (or its
subcontractors or suppliers, regardless of tier)
performsanydesign/buildworkorservices,oranyotherservicesofaprofessionalnature,suchasthose
requiring an engineering or architectural license, it shall obtain
a Professional
LiabilityInsurancePolicy.Design/buildworkincludes,withoutlimitation,design/buildworkwithrespecttomechanical,
electrical, structural, plumbing and fire sprinkler systems.
Professional liabilityinsuranceshallbe
foraminimumof$1million,orsuchgreateramountasDirectContractormayrequire.EvidenceofcoverageintheformofaCertificateofInsuranceshallbeprovidedpriortothestartof
theproject. Subcontractor shallobtaincoverage foraminimumof
threeyears
followingcompletionoftheproject,eitherthroughcontinuedpurchaseofpoliciesforsuchyearsorthroughpurchase
of an extended reporting period. If Owner or Direct Contractor
elects to purchase aproject design policy, Subcontractors policy
shall be endorsed to indicate that
Subcontractorspolicyshallprovidecoverageoncetheprojectdesignpolicyhasbeenexhausted.
(c) Riggers Liability. Should Subcontractors work involve the
moving, lifting, lowering, rigging, or
hoistingofpropertyorequipment, Subcontractor shall carryRiggers
Liability Insurance to
insureagainstphysicallossordamagetothepropertyorequipment.
(d) Cargo Insurance (Required for Truckers). If Subcontractor
provides trucking or similar
transportation services, it shall obtain andmaintain all risk
coverage including shift of load
andunidentifiedtrailers.Limitshouldbenolessthan$250,000witha$2,500deductible.
(e) Aircraft Liability. If Subcontractor (or its
subcontractorsor suppliers, regardlessof tier) use any
owned,leased,charteredorhiredaircraftofanytypeintheperformanceofthiscontract,theyshallmaintain
aircraft liability insurance in an amount of not less than
$10,000,000 per occurrence,includingPassengerLiability.
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14
(f)
WorkNearRailroads.IfSubcontractor(includinganylowertiersubcontractororsupplier)performsanyworkorconductsanyoperationswithinfiftyfeetofanyrailroad(includingany
lightrail,fixedrail or other rail system), Subcontractor shall
obtain an endorsement of its CommercialGeneralLiability Policy to
delete any exclusion, including the Contractual Liability
exclusion, for workperformedwithin fifty feetofarailroad.
Acopyofsuchendorsementshallbeprovided toDirectContractorprior
toanyworkoroperationsby Subcontractorwithin fifty feetofany
railroad. Inaddition, if required by any railroad, the Owner, or
the Contract Documents, or any permit orlicense,Subcontractor
shallobtainanendorsementadding the
railroadownerorotherpartiesasadditionalinsureds.
(g) EquipmentandPropertyCoverage.
Subcontractorshallprocureandmaintainat itsownexpense
property and equipment insurance for Subcontractors tools,
equipment, temporary structures,work in progress,work in transit
and/or in temporary storage, aswell as those of its lower
tiersubcontractors and suppliers. If builders risk insurance is not
provided by Owner or
DirectContractor,Subcontractorshallpurchaseandmaintaininstallationfloatercoveragewrittentocoverall
risksofphysical loss except those specifically excluded in
thepolicy, and shall insure at
leastagainsttheperilsoffireandextendedcoverage,theft,vandalism,maliciousmischief,andcollapse.ThisinsuranceshallbewritteninanamounttoprovidefullprotectionforSubcontractorsworkandequipment.Thisinsuranceshallapplyonareplacementcostbasis.Anydeductibleshallbethefullresponsibility
of Subcontractor. If builder's risk insurance purchased by Owner(s)
or DirectContractor provides coverage for Subcontractor for loss or
damage to Subcontractors
work,SubcontractorshallberesponsiblefortheinsurancepolicydeductibleamountapplicabletodamagetoSubcontractor'sworkand/ordamagetootherworkcausedbySubcontractor.
(h) Waiver of Subrogation. Subcontractor waives all rights
against Direct Contractor and any
constructionmanagerfor loss,
liability,costs,expenseordamagetotheextentreimbursedbyanyinsurance
applicable to thework, except such rights as theymay have to the
proceeds of
suchinsurance.IfanyapplicablepoliciesofinsurancereferredtointhisSectionrequireanendorsementorconsentoftheinsurancecompanytoprovideforcontinuedcoveragewherethereisawaiverofsubrogation,theownersofsuchpolicieswillcausethemtobesoendorsedorobtainsuchconsent.
(i)
RequirementsforSubsubcontractors,Vendors,andSuppliers.Subcontractorshallensurethatall
tiersofitssubcontractors,vendorsandsuppliersshallmaintaininsuranceinlikeformandamounts,shallcomplywiththeadditionalinsuredrequirementsassetforthabove,shallwaivesubrogationasset
forthabove, shallotherwisecomplywithall requirementsof
thisSection8,and
shallprovideDirectContractorwithevidenceofinsurancepriortocommencingwork.
SECTION9.INDEMNIFICATIONANDDEFENSEOBLIGATIONSTo the greatest
extent permitted by law, Subcontractor shall defend, indemnify and
hold harmlessDirectContractor,
Owner,andOwnersarchitectandengineer,andanyof their
respectivedirectors,officers,agents,employees,parents,affiliates,subsidiaries,partners,andrepresentatives,andanyotherpersons
or entities designated by any of them (collectively, the
"Indemnitees") from and against
allcausesofaction,penalties,assessments,fines,actionsbygovernmentalauthorities,demands,liabilities,claims,
damages, costs, losses and expenses, including but not limited to
attorney's fees,
consultantfees,andotherlegalcosts("Claims"),whichariseoutoforareinanywayrelated(i)tothisAgreement;(ii)
toactualorallegedactionsoromissionsbySubcontractororanyof its
subcontractors, suppliers,vendors, employees, or persons for whom
it is responsible, or (iii) Subcontractors presence at the
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15
Projectsiteand/or itsWork.Notwithstandingtheforegoing,
ifanyoftheContractDocuments
imposemorestringentdefense,indemnity,contributionorholdharmlessobligationsthanaresetforthherein,then
the more stringent provisions shall apply, and Subcontractor shall
owe the same
defense,indemnity,contribution,andholdharmlessobligationstoDirectContractorasDirectContractorowestoOwner.SubcontractorsdutytodefendIndemniteesshallapply,andSubcontractorshallberequiredtofurnishadefense,notwithstandingthattherehasnotyetbeenadetermination,adjudicationorfindingofliabilityorfaultonthepartofSubcontractororanypartyorpersontobeindemnified.To
the greatest extent permitted by law, the obligations of this
Section 9 shall apply regardless ofwhether the Claims were caused
in part or contributed to by Indemnitees; however,
obligationsspecified above shall not extend to: (a) Claims that
arise out of, pertain to, relate to the activenegligence or willful
misconduct of Direct Contractor, of a subcontractor to Direct
Contractor, aconstruction managerwho is an Indemnitee, or any of
their other agents, other servants, or otherindependent contractors
who are responsible to them (b) to defects in design furnished by
theIndemnitee,or(c)totheextentClaimsdonotariseoutofthescopeofworkofSubcontractor.Items(a)through
(c) intheprecedingsentenceshallbereferredto
inthisprovisionas"IndemnityLimitations."UponwrittentenderbyanyIndemnitee,includingDirectContractor,ofaClaim,Subcontractorshall:Defendtheclaimwithcounselofitschoice,whoisreasonablyqualifiedandexperiencedinsuchmattersanddoesnothavea
conflictof interest in representing the tenderingparty,and
Subcontractor shallmaintain control of the defense for any claim or
portion of claim to which the defense obligationapplies. If
Subcontractor elects to defend under this subparagraph (a),
Subcontractor shall
providewrittennoticeoftheelectiontothetenderingpartyareasonabletimeperiodfollowingreceiptofthewrittentender,andinnoeventlaterthan30daysfollowingthatreceipt.Subjectonlytothelimitationssetforthabove,thedefenseprovidedbySubcontractorshallbeacompletedefenseoftenderingpartyof
allClaimsorportions thereof to the extent alleged tobe causedby
Subcontractor, including anyvicarious liability claims the
tendering party resulting from Subcontractor's scope of work, but
notincludingclaimsresultingfromthescopeofwork,actions,oromissionsofthetenderingparty,oranyotherparty.AnyvicariousliabilityimposeduponthetenderingpartyforClaimscausedbySubcontractorelecting
to defend under this paragraph shall be directly enforceable
against Subcontractor.Subcontractor shall promptly provide the
tendering party with all information, documentation, orevidence, if
any, relating to any assertionby Subcontractor that anotherparty is
responsible for thetenderedClaim.Pay, within 30 days of receipt of
an invoice from the tendering party, no more than a
reasonableallocated share of the tendering party's defense fees and
costs, on an ongoing basis during thependency of the claim, subject
to reallocation consistent with the limitations set forth above,
andincludinganyamountsreallocateduponfinalresolutionofClaim,eitherbysettlementorjudgment.ThetenderingpartyshallallocateasharetoitselftotheextentaClaimisallegedtobecausedbyitswork,actions,oromissions,andashare
toeachsubcontractor to theextent that theClaim isalleged tobecaused
by Subcontractor's work, actions, or omissions, regardless of
whether the party seeking
adefensefromSubcontractoractuallytenderstheclaimtoanyparticularsubcontractor,andregardlessofwhether
that Subcontractor is participating in the defense. Any amounts not
collected from
anyparticularsubcontractormaynotbecollectedfromanyothersubcontractor.Notwithstandinganyotherprovisionoflaw,ifSubcontractorfailstimelyandadequatelytoperformitsobligationsundersubparagraph(a),thepartytenderingtheClaimshallhavetherighttorecoverfromSubcontractorforanyresultingcompensatorydamages,consequentialdamages,reasonableattorney's
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16
fees,consultantfees,andotherlegalcosts.IfSubcontractorfailstotimelyperformitsobligationsundersubparagraph(b),thepartytenderingtheClaimshallhavetherighttorecoverfromSubcontractorforanyresultingcompensatorydamages,interestondefenseandindemnitycosts,fromthedateincurred,at
therateset forth insubdivision (g)of formerCivilCodeSection3260
(nowrecodifiedatCivilCodeSection 8818), consequential damages, and
reasonable attorney's fees incurred to recover
theseamounts.ThepartytenderingtheClaimshallbeartheburdenofprooftoestablishbothSubcontractorsfailuretoperformundereithersubparagraph(a)or(b),andanyresultingdamages.
Inadditiontotheforegoing remedies, and without limitation or
derogation of them, Subcontractor agrees to
payliquidateddamagesof$100pereachdaythatSubcontractorfailstoperformitsobligationsundereithersubparagraph
(a)or (b),whichare intendedtocompensatethetenderingpartyfor
lossofreputation,administrative costs, and other losses that are
difficult to quantify and that are not
adequatelycompensatedunderthisprovisionandSection2782.05oftheCivilCode.Subcontractoragreesthatthesumof$100perdayconstitutesareasonableestimateofsuchdamagesorlosses.TheobligationsunderthisSection9areinnowaylimitedorrelievedbySubcontractorhavingobtainedinsurance,by
the Insuranceorotherprovisionsof thisAgreement,and/or to
theextentpermittedbylaw,bytheprovisionsofanyworkerscompensationlaw,regulationorarrangement.TheobligationsofSection
9 shall survive the expiration or termination of this Agreement, as
well as Subcontractor'scompletionofitsotherobligations.Ifandonly
ifaclaim fordefenseor indemnity relates toaproject that
isgovernedbyCaliforniaCivilCode Sections 895 et seq. and Direct
Contractor is determined to be a Builder for purposes
ofCaliforniaCivilCodeSection2782(d), thenas
toclaimsofconstructiondefects
(DefectClaims)only,theforegoingindemnityismodifiedsuchthatSubcontractorisnotobligatedtoindemnifyOwnertotheextentthatsuchDefectClaimsariseoutof,pertainto,orrelatetothenegligenceoftheOwner,ortheOwnersotheragents,otherservants,orotherindependentcontractorswhoaredirectlyresponsibletoOwner,orfordefects
indesignfurnishedbythosepersons,ortotheextenttheDefectClaimsdonotarise
out of, pertain to, or relate to the scope of work covered by this
Agreement; however,Subcontractor shallneverthelessbeobligated
todefendOwnerandDirectContractor fromany suchDefect Claims, within
five (5) days of obtaining knowledge of any such Defect Claims,
subject toreallocationafter final resolutionof theclaimspursuant
toCivilCodeSection2782(d).
IndemnityanddefenseobligationsnotaffectedorrestrictedbyCivilCodeSection2782(d)or(e),suchasforpropertydamagenotcausedbyconstructiondefectsorothermattersnot
involvingDefectClaims,shallnotbelimited, impairedormodifiedby the
foregoingsentence,andsuch
indemnityanddefenseobligationsshallremaininfullforceandeffect.
SECTION10.LIENSANDCLAIMS
Subcontractorshall,asandwhenrequested,furnishevidencesatisfactorytoDirectContractorandtheOwnerthatclaimsfor
laborandmaterialsfurnishedbySubcontractor
inconnectionwithperformanceofthisSubcontracthavebeenpaid,
includingpayrolltaxesandemployeebenefits.SubcontractorshallfurnishDirectContractorreleasesofbondrightsand
lienrightsbypersonswhohave furnished
labor,materialsorotherthingsintheperformanceofthisSubcontract,itbeingagreedthatpaymentofmoneyotherwisedueSubcontractorneednotbemadebyDirectContractoruntilsuchreleasesarefurnished.Subcontractor
shall take all necessary steps to ensure that no claims, liens,
lawsuits, stop paymentnotices, or other liens are asserted in
connection with the Project by any of its subcontractors
orsuppliers (regardlessof tier), itsor theiremployees, trust funds,
taxingauthoritiesorothercreditors,andpursuanttothedutiessetforthhereinshallfullydefend,holdharmlessandindemnifyOwnerand
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17
Direct Contractor against all such claims at Subcontractors sole
expense. At Subcontractors
soleexpense,uponDirectContractorsrequest,Subcontractorshallwithinareasonableperiodnottoexceedfive(5)calendardays,bondaroundanystoppaymentnoticesorliens,sothatthejobandanyfundingthereforshall
remain free fromencumbrancesand liens,andSubcontractorshall
takesuchotherandfurther stepsasmaybenecessary to remove
theeffectofany liens, stoppaymentnoticesor
claimsfromtheProjectoranyfundsfortheProject.
SECTION11.DEFAULT
(a) IfSubcontractor
failstosupplysufficientqualifiedworkersand/orpropermaterials,or
failstoprosecuteitsworkdiligentlyandproperly,orfailstomakepromptpaymenttoitsworkers,subsubcontractorsorsuppliers,orbecomesdelinquentwithrespecttocontributionsorpaymentstoanybenefit,apprenticeshiporotheremployeeprogramortrust,orfailstoprovideadequateassurances,or
isotherwiseguiltyofamaterialbreachofaprovisionofthisAgreementorthelaw,
and failswithin fortyeight (48) hours after receipt ofwritten
notice to commence
andcontinuesatisfactorycorrectionofsuchdefaultwithdiligenceandpromptness,andtocompletethecureofsuchdefaultwithinthetimeperiodstatedinDirectContractor'sdefaultnotice,thenDirectContractor,withoutprejudicetoanyrightsorremedies,shallhavetherighttoanyorallofthefollowingremedies:
i.
supplysuchworkersandquantityofmaterials,equipmentandotherfacilitiesasDirect
ContractordeemsnecessarytocompleteSubcontractorswork;
ii.
contractwithothercontractorstoperformsuchpartofSubcontractorsworkasDirectContractorshalldeemappropriate;
iii.
terminateSubcontractorsrighttoperformanduseanymaterials,equipment,ortools
furnishedbyorbelongingtoSubcontractorworkwithoutanyfurthercompensationtoSubcontractorforsuchuse;and
iv. withhold payment of any monies due Subcontractor pending
corrective action;
provided,however,
thatDirectContractormaywithholdpaymentwithoutgiving
suchnoticetothegreatestextentpermittedbylaw.
Insuchanevent,DirectContractorshallbeentitledtorecoverfromSubcontractor,backchargeagainstSubcontractor,and/orsetoffagainstamountsowedtoSubcontractor,theactualdirectand
indirect costs thatDirectContractorhas incurred (includingattorneys
feesand
litigationcosts)plusmarkupoffifteenpercent(15%)foroverheadandtenpercent(10%)forprofit.Inanemergency,DirectContractormayproceedasabovewithoutnotice.
Inaddition
toanyotherremediesavailable,uponwrittennoticeDirectContractorshallbeentitledtoperformusing
itsownorotherforcesthosecleanupdutiesthatSubcontractorhasfailedtoperform,toremedysafety
deficiencies, or otherwise to remedy Subcontractors failure to have
complied
withrequirementsofthisAgreementordirectivesbyDirectContractor.
TosecureperformancebySubcontractor and the prompt payment of any
funds expended byDirect Contractor,DirectContractor shall have a
lien upon all materials, tools, appliances, and equipment
ofSubcontractorattheProjectorusedinconnectionwithSubcontractor'swork.
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(b) RecourseAgainstDirectContractor.
IfDirectContractorwrongfullyterminatesSubcontractor,DirectContractor
shallbe liable to Subcontractor for the
costsDirectContractorwouldhavepaid ifDirect Contractorwould have
terminated Subcontractor for convenience pursuant
toSection12hereof.Subcontractorexpresslyunderstandsandagreesthatitsremedyhereundershallbeexclusive,andexpresslywaivesanyandallotherrightsandremedieswhichitmayhavewhetheratlaworinequity.NothinghereundershallbeconstruedtopreventDirectContractorfromwithholdingmoniesfromSubcontractorunderotherprovisionsofthisAgreement.
SECTION12.TERMINATIONFORCONVENIENCE.Onwrittennotice,Direct
Contractormay terminate allorpartof thisAgreementor
SubcontractorsworkforDirectContractorsconvenience.Uponsuchtermination,Subcontractorshallbeentitledto:(1)the
reasonable cost of thework completed in conformitywith
thisAgreement; plus, (2) such otherreasonable costs actually
incurred by Subcontractor as are permitted by the Direct Contract
andapprovedbyOwner;plus (3) fifteenpercent (15%)of thecostof
thework referred to in item (1)
foroverheadandprofit.TheforegoingamountsshallbereducedbyareasonableandappropriateamountifSubcontractorwouldhavesufferedalossontheProject.ThereshallbedeductedfromtheforegoingsumstheamountofanypaymentsmadetoSubcontractor.Subcontractorshallnotbeentitledto
lostprofitsonworknotperformedoranyclaimorclaimoflienagainstDirectContractororOwnerforanyadditionalcompensationordamagesintheeventofsuchtermination.TheamountrecoverableunderaconvenienceterminationshallnotexceedtheContractPrice.
Intheeventthatanyterminationotherthan for convenience is later
determined to have beenwithout cause or improper,
Subcontractor'sremedy shall be to have the termination converted to
a termination for convenience, andSubcontractor's recovery shallbe
limited inaccordancewith the termsof thisSection12.
Uponanytermination,whetherforcauseorconvenience,DirectContractorshallhavetherighttotakeimmediatepossessionof,utilize
foranypurpose,
inspect,andcopyanyandallofSubcontractor'sdocumentsorinformation
related to the project, and the obligations of Subcontractor and
rights and remedies ofDirect Contractor thatwould continue after
substantial completion in the absence of a
termination,includingwithout limitation, Subcontractor's dutieswith
regard to indemnity, payment of
creditors,compliancewithlaws,insurance,warranty,anddefectivework,shallremaininfullforceandeffect.
SECTION13.POSSESSIONPRIORTOCOMPLETION
Whenever it may be useful or necessary for Direct Contractor to
do so, Direct Contractor shall
bepermittedtooccupyand/oruseanyportionoftheWorkwhichhasbeenpartiallyorfullycompletedbySubcontractor
before final inspection and acceptance thereof by the Owner, but
such use and/oroccupationshallnotrelieveSubcontractorof
itsguaranteeofsaidWorknorof itsobligation
tomakegoodatitsownexpenseanydefectsinmaterialand/orworkmanshipwhichmayoccurordeveloppriortoContractorsreleasefromresponsibilitytotheOwner.
SECTION14.OTHERCONTRACTS
ItisunderstoodandagreedthattheWorkprovidedforinthisAgreementconstitutesonlyapartofthework
being performed for theOwner byDirect Contractor and other
subcontractors.
Subcontractor,therefore,agreestoperformtheWorkcalledforinthisAgreementinsuchamannerthatSubcontractorwillnot
injure,damageordelayanyworkperformedbyDirectContractororothersubcontractorsorsuppliers,
and Subcontractor further agrees topayor reimburseDirectContractor
for any
additionalcosts,damageordelaythatmaybecausedtosuchotherworkofDirectContractor,subcontractorsorsuppliers,
by Subcontractor or its agents or employees. Subcontractor shall
participate in the
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19
preparationofcoordinateddrawings,thereviewofexistingdrawings,contractorotherwise,and/orthereview
and/or preparation of other information asmay be necessary to
specifically note and adviseDirect Contractor of potential
conflicts between the work of Subcontractor and that of
DirectContractor,othersubcontractorsortheOwnersownforces.
SECTION15.LABORCOMPLIANCE
Subcontractorandalllowertiersubcontractorsshallcomplywithandperformallworkcoveredbyanycollective
bargaining agreement(s) towhichDirect Contractor is a party orwhich
otherwisemay beapplicable to the Project, under the terms of said
agreement(s) and shall become signatory to theapplicable
agreement(s) as a condition of performing work. In addition,
Subcontractor and itssubcontractors, suppliers, vendors, and
employees shall complywith the termsof any Project LaborAgreement
thatmayapply to theProject. ShouldDirectContractorat its
solediscretionestablishareserved gate system on the Project,
Subcontractor agrees that its employees, subcontractors,
andsupplierswillusethereservegate(s)designatedforthembyDirectContractor.Subcontractorherebyexpresslyagreesthatalloftheprovisionsoftheapplicablelaboragreementsareincorporated
into thisAgreementas if theywere set forth in theirentirety.
Subcontractoragrees tocomplywith all of the terms and conditions of
those labor agreements as if itwere a party to
saidagreementsincludingsignatorystatusifrequired.Subcontractorfurtheragreestopaythewagerates,maketherequiredtrustfundpaymentsintotherespectivelabortrustfunds,andobservethehoursandallother
termsandconditions set forth in the respective laboragreements.
Subcontractoragrees tocomplywith the termsandprovisionsof
saidagreements setting forth thegrievanceandarbitrationprovisions.
Furthermore, Subcontractor agrees to comply with the terms and
provisions of saidagreements setting forth the jurisdiction and
scope of work therein for resolution of jurisdictionaldisputes. In
the absence of any such procedure or if such procedure fails to
promptly resolve thejurisdictionaldispute,Subcontractoragrees,at
itsown costandexpenseandupon requestbyDirectContractor, to take any
and all lawful steps to secure a binding and final determination of
saidjurisdictionaldisputebytheNationalLaborRelationsBoard.
Subcontractoracknowledgesthattermsandconditionsofthe
laboragreementswiththeunions
listedbelowmayrequirethatSubcontractorcomplywithadditionallaboragreements.Subcontractoragreestobindandrequireallofitssubcontractors,regardlessoftier,toagreetoalloftherequirementsunderthisSection15.[INSERTUNIONSWITHWHICHGSEHASLABORAGREEMENTS]
SECTION16.COMPLIANCEWITHLAWSANDSAFETYREQUIREMENTS(a)
Subcontractor agrees to fully comply with all Federal, State and
local laws, ordinances and
regulations.
(b)
Atitssoleexpense,Subcontractorshallinvestigateandcomplywith,andagreestobeboundby,allapplicable
laws and regulations, including without limitation, laws regarding
licensing
ofcontractors,theFairLaborStandardsAct,theAmericanswithDisabilityAct,thefederalFamilyandMedicalLeaveAct,federal,stateandlocalfamilyrightsandmedicalleavelaws,civilrightsandfairemployment
laws,theCaliforniaLaborCode,Proposition65,
lawsconcerningwagesandbenefitstobepaid,andallotherconstruction,environmental,workplaceandsafety
laws. Subcontractor
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20
acceptsexclusive liability forcompliancewithsuch laws,
includingtheFederalSocialSecurityActwithrespecttoitsemployees,salesandusetaxlaws,andanyotherlawsandregulations.
(c)
Subcontractorshallalsocomply,atitssoleexpense,withallDBE,MBE,UDBE,WBE,DVBE,LBE,local
hiringandsimilarrequirementspertainingtotheProject.IntheeventofaterminationasaresultofanymisrepresentationoffactsrelatingtoSubcontractor'sstatusasaDBE,MBE,UDBE,WBE,DVBE,and/orLBE,Subcontractorshallnotbeentitledtoanycompensationnotalreadypaid.
(d) Subcontractoracknowledges that ithasconducted itsown
independent investigationof thewage
rates to be paid and whether its Work will be subject to
prevailing wage requirements or therequirements of the DavisBacon
Act and that it has not relied upon any statements
orrepresentationsbyDirectContractorwithrespecttosuchmatters.
SubcontractoragreesthattheSubcontract Price shall be deemed to be
full compensation for compliance with such
laws,regulations,orrequirements,includingpaymentofallapplicablewagerates,andthatnoadditionalcompensationwillbeowedtoSubcontractorintheeventthatSubcontractorisrequiredthereundertopayhigherwagesorincuradditionalcoststhatSubcontractorcontendsthatitdidnotanticipate.
(e)
Uponrequest,SubcontractorshallsubmitcertifiedpayrollrecordstoDirectContractornolaterthan
three(3)workingdaysafterDirectContractor'srequestandfurtheragreestocooperatefullyinanyeffort
by Direct Contractor to verify compliance with labor laws and
regulations, includingrequirements under the DavisBacon Act or the
California Labor Code. Such cooperation shallinclude, without
limitation, furnishing copies and originals of records and
providing access toemployeesorwitnesses for interviewsand
statements. Inaddition
toandwithoutderogationofanyotherrightsthatDirectContractormayenjoy,DirectContractormaywithholdsufficientfundsto
protectDirect Contractor against any claims related to labor
requirements,
includingwithoutlimitation,requirementsundertheDavisBaconActortheCaliforniaLaborCode.
(f) Onallprojectssubject to stateor localprevailingwage
requirements,Subcontractorshallcomply
withanyapplicableCaliforniaprevailingwagelaws.Withrespecttosuchprojects,theprovisionsofCaliforniaLaborCodeSections1771,1775,1776,1777.5,1813and1815areattachedasExhibitAand
incorporated herein. On such projects, as a condition precedent to
final
payment,Subcontractoragrees,ifrequestedinwritingbyDirectContractor,toprovideanaffidavitsignedbySubcontractorunderpenaltyofperjury,
stating thatSubcontractorhaspaid the
specifiedgeneralprevailingrateofperdiemwagestoitsemployeesontheprojectandanyamountsdue.
(g) thatcomplieswiththetermsofLaborCodeSection1775(b)(4).
(h) At its soleexpense, Subcontractor shall
instituteandmaintaina reasonable andadequate safety
program that fullycomplieswith the law,andshall
fullycooperatewithandadhere toanysafetyprogramor
requirementsofDirectContractorand/orOwner.
AllpersonnelofSubcontractor, itssubcontractors, and suppliers
shallwear hard hats, safety vests, and any other necessary
safetyequipment,while visitingorworkingata construction site.
Subcontractor
shallprovidematerialdatasheetsandothersubmittalsoritemsnecessarytocomplywithapplicablelaws.Subcontractoragrees
to obtain and pay for all permits, licenses and official
inspections necessary for propercompletionofitsWork.
(i) Ifhazardousor toxic substances,of a typeofwhich anemployer
is requiredby law tonotify its
employees,arebeingusedon the sitebySubcontractor, its
subcontractorsoranyonedirectlyor
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21
indirectlyemployedbythem,Subcontractorshall,priortoexposureofanyemployeesonthesitetosuch
substance, givewritten notice of the chemical composition thereof
toDirect Contractor insufficient detail and time to permit
compliance with such laws by Direct Contractor,
othersubcontractorsandemployersonthesite.
(j) Subcontractor acknowledges that the EPA and California
regulatory authorities have mandated
certain requirements for permits under the National Pollutant
Discharge Elimination System(NPDES),
includingStormWaterPollutionPreventionPlan (SWPPP) requirements.
Subcontractorhas undertaken its own independent and thorough
investigation of all such matters, includingwithout limitation, a
thorough reviewof all requirementsunder theContractDocuments
and/orthatareimposedbyanypermitsthatapplytotheProject,andSubcontractorwarrantsthatitisnotrelyinguponanystatementsorrepresentationsbyDirectContractororOwnerwithrespecttosuchmatters.
Subcontractor agrees, at its sole cost, to conform to any and all
requirements of anyenvironmental, air and water pollution statutes,
regulations and measures, and/or
permits,includingNPDESpermits,andSubcontractoralsoshallconformtoanyandallSWPPPrequirementsapplicable
to theProject,as furtherset forth in thisAgreementand
theContractDocuments.Forexample, on projects subject to the
California Standard Specifications, such as Caltrans
projects,Subcontractor'sattentionisdirectedtoCaliforniaStandardSpecificationsSections13.1.01through1310.03,"WaterPollution",andSections141.01through14.204,"EnvironmentalStewardship",and
on all projects, to any special provisions or other contract
provisions concerning
NPDES,DepartmentofFish&Game,andotherpermits,airandwaterpollutionstatutes,regulations,andmeasures,
and SWPPP requirements, and Subcontractor at its own cost agrees to
comply fullytherewith.
(k) Subcontractorshallcomplywithallprovisionsof"Proposition65"
(CaliforniaStateDrinkingWater
Act of 1986, California statutes) which shall include, but not
be limited to, posting in a
timelymannerofanyrequirednotices.Subcontractorshallnotuseorbringon
to theProjectanyof
thechemicalsorcompoundslistedbytheCaliforniaStateAttorneyGeneralfromtimetotime,includinganychemicalsorcompoundsaddedaftertheeffectivedateofthisAgreementundertheprovisionsof
Proposition 65 (the List)without delivering a clearwritten notice,
at the time submittals arewritten, toDirect Contractor andOwner
informing them of the dates and locationswhere suchitems
shallbedelivered,used,or stored. Notwithstandinganything to
thecontrarycontainedorindicatedhereinor in anyof
theContractDocumentsor anywhere else, Subcontractor
shallnotincorporateintothework,orallowtobeincorporatedintothework,anyofthelisteditemsonsuchlistwithoutspecificadvancedwrittennoticehavingfirstbeendeliveredtoDirectContractorpriortoSubcontractorbecomingactuallycontractuallyobligatedtopurchaseortakedeliverythereoffromitssuppliers,andthenonlytotheextentDirectContractorgivesclearwrittenapprovaloftheusesproposed
in the notice. The notice shall contain clear descriptions of the
type, amount,
uses,locations,andcontentofsuchitemsincorporatedintoorusedinsaidwork.
(l)
Subcontractorshallberesponsibleforholdingweeklysafetytoolboxmeetingsasrequiredbylawonitsowntimeatitsownexpense.Ifrequested,recordsofsuchmeetingsshallbesubmittedtoDirectContractor.Failuretoprovidesuchminutesmaybereasonforwithholdingpaymentfortheworkperformed.
(m)
HardhatsandappropriatesafetyclothingandequipmentarerequiredontheProjectsite.SECTION17.CALTRANSA&BPROJECTS
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NOTUSED.SECTION18.PROTECTIONOFTHEWORKSubcontractor shall
effectually secure and protect the Work done hereunder and assumes
fullresponsibilityandriskofalllossordamagetoitsWork,material,orequipmentuntilfinalacceptancebyArchitect,OwnerandDirectContractor.
Subcontractor furtheragrees toprovide
suchprotectionasnecessarytoprotecttheWorkandtheworkmenofDirectContractor,Ownerandothersubcontractorsfromitsoperations.Subcontractorshallbeliableforanylossordamagetoworkinplaceortoanyequipmentandmaterialsonthejobsitecausedbyitoritsagents,employeesorguests.If
Subcontractor installs items provided by others or performs Work in
areas to be constructed
orpreparedbyothers,Subcontractorshallcarefullyinspectandshallaccept,atthetimeofdeliveryorfirstaccess,theitemssoprovidedandtheworkbyothers.Failuretoconductaninspectionortogivenoticeof
anydiscrepanciesorproblems shallbedeemed to constitute acceptanceby
Subcontractorof
theitemsorworkofothers.LossordamageduetoactsofSubcontractorshallbechargedtoSubcontractor.Subcontractor
is responsible for alldamagesor losses it causes toothersor towork,
equipment,orpropertyofothers.SECTION19.ALTERNATIVEDISPUTERESOLUTION
Any dispute resolution procedure in the Contract Documents shall be
deemed incorporated in thisAgreement, and shall apply to any
disputes arising hereunder that involve the Direct Contractor
orOwner, including,without limitation,suchaspass throughclaims.
Subcontractorshallcooperate insuch procedures and shallparticipate
in themwhen requested. Any claimsnot involving
theDirectContractororOwnermaybe resolved,atDirectContractors
soleoption, throughbindingarbitrationadministered by a provider to
be determined by Direct Contractor, under Judicial Arbitration
andMediationServiceorAmericanArbitrationAssociationConstruction
IndustryRules ineffectasof
thedateofanyarbitrationdemandmadebyDirectContractor.Priortothefilingofanylawsuitordemandforarbitration,thepartiesshallmeetinformallytoattempttoresolvethedisputeand,ifrequestedbyDirectContractor,shallparticipateinnonbindingmediation,witheachpartytobearitsownfeesandcosts.The
award rendered by the arbitrator(s) shall be final and judgment may
be entered upon it
inaccordancewithapplicablelawinanycourthavingjurisdiction.Notwithstanding
any dispute, and to the greatest extent permitted by law,
Subcontractor agrees tocontinuewith itsperformance andmaintain the
scheduleofworkpending resolutionof any and alldisputes,
includingdisputesregardingpaymentorwhetherwork
iswithinSubcontractor'sscope.
TheforegoingsentenceconstitutesanadvancewaiverbySubcontractor,tothegreatestextentpermittedbylaw,ofanyactualorallegedrighttostopwork,rescind,orabandontheProject.Subcontractor,and
its subcontractorsand suppliers (regardlessof tier),agreeupon
requestbyDirectContractortojoininandbeboundbyproceedingsinvolvingDirectContractor,includingthoseinvolving
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23
Ownerorotherparties. It shallbe the responsibilityof
Subcontractor
toprepareDirectContractor'scase,totheextenttheproceedingsarerelatedtothisAgreement.Nothinghereinshallbedeemedtowaiverightsorremediesthatbylawmaynotbewaived.
SECTION20.WAIVEROFATTORNEY'SFEES
Notwithstanding any other provision of this Agreement, the
Contract Documents or applicable
law,neitherSubcontractornorDirectContractorshallbepermittedtorecoverattorneysfeesorcostsinanydisputeor
litigationandSubcontractorexpresslywaives theright
torecoverattorney's
feesandcostsfromDirectContractorandfromDirectContractor'ssuretiesexceptwherethesameispermittedtoberecoveredunderthefirstsentenceofthisSection20.Thiswaiveroftherighttofeesandcosts,totheextentpermittedby
law,shallbeeffectiveas tostatutory rightssuchas
thoseaffordedbyCivilCodeSection 9564 et seq. This provision shall
not limit, impair orwaive Direct Contractor's rights to
bedefendedby,tobeindemnifiedby,tobeheldharmlessby,toreceivecontributionfrom,andtoreceivethebenefitsof
insurance furnishedbySubcontractororanyotherpersons,with regard
toattorney'sfees,expertcostsandotherexpenses.IntheeventthatacourtweretofindthatthisprovisionwouldallowanawardoffeesevenwhentheconditionsunderthefirstsentenceofthisSection20werenotsatisfied,
then thisAgreementshallbe reformed toeliminateandwaiveany right to
fees
fromeitherpartyoritssureties,exceptwheresuchawaiverwouldviolatepublicpolicy.
SECTION21.INDEPENDENTCONTRACTOR;TAXESSubcontractorisanindependentcontractorandshall,atitssolecostandexpense,andwithoutincreasein
theContractPrice, complywith all laws, rules,ordinances and
regulationsof all governingbodieshaving jurisdiction over the work:
obtain all necessary permits and licenses therefore, pay
allmanufacturerstaxes,salestaxes,usetaxes,processingtaxes,andallfederalandstatetaxes,insuranceand
contributions for social security and unemploymentwhich aremeasured
bywages, salaries,
orotherremunerationspaidtoSubcontractorsemployees,whetherleviedunderexistingorsubsequentlyenacted
laws, rulesor regulations. Subcontractor upon request shall furnish
evidence satisfactory
toDirectContractorthatanyoralloftheforegoingobligationshavebeenfulfilled.
SECTION22.EQUALOPPORTUNITY/AFFIRMATIVEACTION(a) If
theDirectContract contains
anyprovisionwhichprohibitsdiscriminationon thebasisof race,
color, religion, sex,ornationalorigin,hereinafter referred
toasEqualOpportunity,or ifany law,regulation or order has any
application thereto and is applicable to this Subcontract,
thenSubcontractorherebyagreestocomplywithsuchprovision,law,regulationororder.
(b) Subcontractor hereby acknowledges that Direct Contractor is
an Equal Opportunity Employer /
AffirmativeAction,and isboundbytheclausesandconditions
identified inExecutiveorder11246,asamendedby,
theVietnamEraVeteransReadjustmentAssistanceActof1974,asamended,38USC4212,andSection503oftheRehabilitationActof1973,asamended,andtheir
implementingregulationsandwhichbythisclauseareincorporatedherein.
SECTION23.ARCHITECTENGINEER
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The words "Architect or Engineer" as used herein refer to the
person appointed by the Owner
tosupervisetheworkofDirectContractoronbehalfoftheOwner.
SECTION24.ASSIGNMENT
WithoutfirstgivingwrittennoticeandthenobtainingDirectContractor'swrittenconsent,Subcontractorshallnotassign,hypothecate,
transferor sublet: (1)anyportionorpartof thework requiredor
theobligations hereunder; (2) payments to Subcontractor; or (3) any
cause of action related to
thisAgreement.Subcontractoracknowledgesandstipulatesthat
itsperformanceconstitutesauniqueandpersonalobligation.
Anyassignment,hypothecation,
transfer,orsublettingbySubcontractorwithoutDirect
Contractor'swritten consent shall be void and invalid,
notwithstanding actual or
constructiveknowledgebyDirectContractorofthepurportedassignment,hypothecation,transferorsubletting.
SECTION25.PRIORUNDERSTANDINGORREPRESENTATIONS
TheDirectContractorassumesnoresponsibilityforanyunderstandingorrepresentationsmadebyanyof
itsdirectors,officers, employees,or agentsprior to the executionof
thisAgreement,unless suchunderstanding or representations by Direct
Contractor are expressly stated in this Agreement. Theterms and
conditions of this Agreement shall take precedence over any
conflicting conditions orstatements.
SECTION26.ADDITIONALPROVISIONS
Layout: DirectContractorshallestablishprincipalaxis linesand
levels,andSubcontractorshall
layoutandshallbestrictlyresponsiblefortheaccuracyofSubcontractorsWork.Subcontractorshallexerciseprudencesothatactualfinalconditionsanddetailsshallresultinperfectalignmentoffinishedsurfaces.
ProvisionsforInspections:SubcontractoratalltimesshallfurnishtoDirectContractor,Owner,andanyrepresentatives
of them, safe and ample facilities for inspecting materials and
work at the site
ofconstruction,shops,factories,yardsoranyotherplacesofbusinessofSubcontractor,itssubcontractorsorsuppliers,wherevermaterialsunderthisAgreementmaybeinthecourseofpreparation,processing,manufacture,paintingortreatment.SubcontractorshallfurnishtoDirectContractor,asoftenasDirectContractorrequires,fullreportsoftheprogressoftheWorkatanyplacematerialsmaybeinthecourseofconstruction,treatmentormanufacture.Suchreportsshallshowtheprogressofsuchconstruction,treatment,andmanufacture
insuchdetailasmayberequiredbyDirectContractor,
includingbutnotlimitedto,anyplans,drawings,ordiagramsinthecourseofpreparation.
INWITNESSWHEREOF,thepartiesheretohaveexecutedthisSubcontractbyitsproperofficersordulyauthorizedagents.
CONTRACTORS ARE REQUIRED BY LAW TO BE LICENSED AND REGULATED BY
THE CONTRACTORSSTATE LICENSE BOARD, WHICH HAS JURISDICTION TO
INVESTIGATE COMPLAINTS AGAINSTCONTRACTORS IFA COMPLAINT REGARDINGA
PATENTACTOROMISSION IS FILEDWITHIN FOURYEARS OF THE DATE OF THE
ALLEGED VIOLATION. A COMPLAINT REGARDING A LATENT ACT
OROMISSIONPERTAININGTOSTRUCTURALDEFECTSMUSTBEFILEDWITHIN10YEARSOFTHEDATEOFTHEALLEGEDVIOLATION.ANYQUESTIONSCONCERNINGACONTRACTORMAYBEREFERREDTOTHEREGISTRAR,CONTRACTORSSTATELICENSEBOARD,P.O.BOX26000,SACRAMENTO,CA95826.DIRECTCONTRACTOR
SUBCONTRACTOR
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By:_____________________________
By:________________________________Title:_____________________________
Title:________________________________G.S.E.CONSTRUCTIONCOMPANY,INC.
FirmNameDATE: DATE:CONTR.LICENSE401498
CONTR.LICENSENo.________________
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C:\Documents and Settings\phavlicek\Desktop\May 6 2014 GSE
Subcontract - CLEAN (00158763) (2).docx
EXHIBIT A
Attachment for California Prevailing Wage Projects Labor Code
Sections 1771, 1775, 1776, 1777.5, 1813 and 1815
1771. Except for public works projects of one thousand dollars
($1,000) or less, not less than the general prevailing rate of per
diem wages for Work of a similar character in the locality in which
the public Work is performed, and not less than the general
prevailing rate of per diem wages for holiday and overtime Work
fixed as provided in this chapter, shall be paid to all workers
employed on public works. This section is applicable only to Work
performed under contract, and is not applicable to Work carried out
by a public agency with its own forces. This section is applicable
to contracts let for maintenance Work. 1775. (a) (1) The contractor
and any subcontractor under the contractor shall, as a penalty to
the state or political subdivision on whose behalf the contract is
made or awarded, forfeit not more than two hundred dollars ($200)
for each calendar day, or portion thereof, for each Worker paid
less than the prevailing wage rates as determined by the director
for the Work or craft in which the Worker is employed for any
public Work done under the contract by the contractor or, except as
provided in subdivision (b), by any subcontractor under the
contractor. (2) (A) The amount of the penalty shall be determined
by the Labor Commissioner based on consideration of both of the
following: (i) Whether the failure of the contractor or
subcontractor to pay the correct rate of per diem wages was a good
faith mistake and, if so, the error was promptly and voluntarily
corrected when brought to the attention of the contractor or
subcontractor. (ii) Whether the contractor or subcontractor has a
prior record of failing to meet its prevailing wage obligations.
(B) (i) The penalty may not be less than forty dollars ($40) for
each calendar day, or portion thereof, for each Worker paid less
than the prevailing wage rate, unless the failure of the contractor
or subcontractor to pay the correct rate of per diem wages was a
good faith mistake and, if so, the error was promptly and
voluntarily corrected when brought to the attention of the
contractor or subcontractor. (ii) The penalty may not be less than
eighty dollars ($80) for each calendar day, or portion thereof, for
each Worker paid less than the prevailing wage rate,
if the contractor or subcontractor has been assessed penalties
within the previous three years for failing to meet its prevailing
wage obligations on a separate contract, unless those penalties
were subsequently withdrawn or overturned. (iii) The penalty may
not be less than one hundred twenty dollars ($120) for each
calendar day, or portion thereof, for each Worker paid less than
the prevailing wage rate, if the Labor Commissioner determines that
the violation was willful, as defined in subdivision (c) of Section
1777.1. (C) If the amount due under this section is collected from
the contractor or subcontractor, any outstanding wage claim under
Chapter 1 (commencing with Section 1720) of Part 7 of Division 2
against that contractor or subcontractor shall be satisfied before
applying that amount to the penalty imposed on that contractor or
subcontractor pursuant to this section. (D) The determination of
the Labor Commissioner as to the amount of the penalty shall be
reviewable only for abuse of discretion. (E) The difference between
the prevailing wage rates and the amount paid to each Worker for
each calendar day or portion thereof for which each Worker was paid
less than the prevailing wage rate shall be paid to each Worker by
the contractor or subcontractor, and the body awarding the contract
shall cause to be inserted in the contract a stipulation that this
section will be complied with. (b) If a Worker employed by a
subcontractor on a public works project is not paid the general
prevailing rate of per diem wages by the subcontractor, the prime
contractor of the project is not liable for any penalties under
subdivision (a) unless the prime contractor had knowledge of that
failure of the subcontractor to pay the specified prevailing rate
of wages to those workers or unless the prime contractor fails to
comply with all of the following requirements: (1) The contract
executed between the contractor and the subcontractor for the
performance of Work on the public works project shall include a
copy of the provisions of this section and Sections 1771, 1776,
1777.5, 1813, and 1815. (2) The contractor shall monitor the
payment of the specified general prevailing rate of per diem wages
by the subcontractor to the employees, by periodic
-
review of the certified payroll records of the subcontractor.
(3) Upon becoming aware of the failure of the subcontractor to pay
his or her workers the specified prevailing rate of wages, the
contractor shall diligently take corrective action to halt or
rectify the failure, including, but not limited to, retaining
sufficient funds due the subcontractor for Work performed on the
public works project. (4) Prior to making final payment to the
subcontractor for Work performed on the public works project, the
contractor shall obtain an affidavit signed under penalty of
perjury from the subcontractor that the subcontractor has paid the
specified general prevailing rate of per diem wages to his or her
employees on the public works project and any amounts due pursuant
to Section 1813. (c) The Division of Labor Standards Enforcement
shall notify the contractor on a public works project within 15
days of the receipt by the Division of Labor Standards Enforcement
of a complaint of the failure of a subcontractor on that public
works project to pay workers the general prevailing rate of per
diem wages. 1776. (a) Each contractor and subcontractor shall keep
accurate payroll records, showing the name, address, social
security number, work classification, straight time and overtime
hours worked each day and week, and the actual per diem wages paid
to each journeyman, apprentice, worker, or other employee employed
by him or her in connection with the public work. Each payroll
record shall contain or be verified by a written declaration that
it is made under penalty of perjury, stating both of the following:
(1) The information contained in the payroll record is true and
correct. (2) The employer has complied with the requirements of
Sections 1771, 1811, and 1815 for any work performed by his or her
employees on the public works project. (b) The payroll records
enumerated under subdivision (a) shall be certified and shall be
available for inspection at all reasonable hours at the principal
office of the contractor on the following basis: (1) A certified
copy of an employee's payroll record shall be made available for
inspection or furnished to the employee or his or her authorized
representative on request. (2) A certified copy of all payroll
records enumerated in subdivision (a) shall be made available for
inspection or furnished upon request to a representative of the
body awarding the contract
and the Division of Labor Standards Enforcement of the
Department of Industrial Relations. (3) A certified copy of all
payroll records enumerated in subdivision (a) shall be made
available upon request by the public for inspection or for copies
thereof. However, a request by the public shall be made through
either the body awarding the contract or the Division of Labor
Standards Enforcement. If the requested payroll records have not
been provided pursuant to paragraph (2), the requesting party
shall, prior to being provided the records, reimburse the costs of
preparation by the contractor, subcontractors, and the entity
through which the request was made. The public may not be given
access to the records at the principal office of the contractor.
(c) The certified payroll records shall be on forms provided by the
Division of Labor Standards Enforcement or shall contain the same
information as the forms provided by the division. The payroll
records may consist of printouts of payroll data that are
maintained as computer records, if the printouts contain the same
information as the forms provided by the division and the printouts
are verified in the manner specified in subdivision (a). (d) A
contractor or subcontractor shall file a certified copy of the
records enumerated in subdivision (a) with the entity that
requested the records within 10 days after receipt of a written
request. (eExcept as provided in subdivision (f), any copy of
records made available for inspection as copies and furnished upon
request to the public or any public agency by the awarding body or
the Division of Labor Standards Enforcement shall be marked or
obliterated to prevent disclosure of an individual's name, address,
and social security number. The name and address of the contractor
awarded the contract or the subcontractor performing the contract
shall not be marked or obliterated. Any copy of records made
available for inspection by, or furnished to, a multiemployer
Taft-Hartley trust fund (29 U.S.C. Sec. 186(c)(5)) that requests
the records for the purposes of allocating contributions to
participants shall be marked or obliterated only to prevent
disclosure of an individual's full social security number, but
shall provide the last four digits of the social security number.
Any copy of records made available for inspection by, or furnished
to, a joint labor-management committee established pursuant to the
federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec.
175a) shall be marked or obliterated only to prevent disclosure of
an individual's social security number. (f) (1) Notwithstanding any
other provision of law, agencies that are included in the Joint
Enforcement
-
Strike Force on the Underground Economy established pursuant to
Section 329 of the Unemployment Insurance Code and other law
enforcement agencies investigating violations of law shall, upon
request, be provided nonredacted copies of certified payroll
records. Any copies of records or certified payroll made available
for inspection and furnished upon request to the public by an
agency included in the Joint Enforcement Strike Force on the
Underground Economy or to a law enforcement agency investigating a
violation of law shall be marked or redacted to prevent disclosure
of an individual's name, address, and social security number. (2)
An employer shall not be liable for damages in a civil action for
any reasonable act or omission taken in good faith in compliance
with this subdivision. (g) The contractor shall inform the body
awarding the contract of the location of the records enumerated
under subdivision (a), including the street address, city, and
county, and shall, within five working days, provide a notice of a
change of location and address. (h) The contractor or subcontractor
has 10 days in which to comply subsequent to receipt of a written
notice requesting the records enumerated in subdivision (a). In the
event that the contractor or subcontractor fails to comply within
the 10-day period, he or she shall, as a penalty to the state or
political subdivision on whose behalf the contract is made or
awarded, forfeit one hundred dollars ($100) for each calendar day,
or portion thereof, for each worker, until strict compliance is
effectuated. Upon the request of the Division of Labor Standards
Enforcement, these penalties shall be withheld from progress
payments then due. A contractor is not subject to a penalty
assessment pursuant to this section due to the failure of a
subcontractor to comply with this section. (i) The body awarding
the contract shall cause to be inserted in the contract
stipulations to effectuate this section. (j) The director shall
adopt rules consistent with the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title
1 of the Government Code) and the Information Practices Act of 1977
(Title 1.8 (commencing with Section 1798) of Part 4 of Division 3
of the Civil Code) governing the release of these records,
including the establishment of reasonable fees to be charged for
reproducing copies of records required by this section. 1777.5 (a)
Nothing in this chapter shall prevent the employment of properly
registered apprentices upon public works.
(b) Every apprentice employed upon public works shall be paid
the prevailing rate of per diem wages for apprentices in the trade
to which he or she is registered and shall be employed only at the
work of the craft or trade to which he or she is registered. (c)
Only apprentices, as defined in Section 3077, who are in training
under apprenticeship standards that have been approved by the Chief
of the Division of Apprenticeship Standards and who are parties to
written apprentice agreements under Chapter 4 (commencing with
Section 3070) of Division 3 are eligible to be employed at the
apprentice wage rate on public works. The employmen