HomeMy WebLinkAbout24 - Construction Agreements - Blanton Contracting LLC - Elevator Modernization Project - Stiff Professional BuiConstruction Agreement for Professional Building Elevator Machine Room Modernization
FY2024-2025
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CONSTRUCTION AGREEMENT
This Construction Agreement is made and entered into this _____ day of ____________,
202__ (“Effective Date”), by and between the CITY OF BOZEMAN, MONTANA, a self-
governing municipal corporation organized and existing under its Charter and the laws of the State
of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230,
Bozeman, MT 59771, hereinafter referred to as “City,” and, Blanton Contracting LLC, 34 Remmy
Way, Unit 1, Belgrade, MT 59714, hereinafter referred to as “Contractor.” The City and Contractor
may be referred to individually as “Party” and collectively as “Parties.”
In consideration of the covenants, agreements, representations, and warranties contained
herein, the parties agree as follows:
1. Work to be Performed:
a. A description of the work to be performed to Stiff Professional Building
Elevator Machine Room Modernization Project (the “Construction Project”) and
Contractor’s duties is set forth in the Scope of Services attached hereto as Exhibit A and
by this reference made a part hereof, and in the drawings, plans, and specifications provided
by the City, which are included in the Scope of Services attached hereto as Exhibit A.
b. Prior to the commencement of any work on the Construction Project,
Contractor’s representatives and City’s representatives shall hold a meeting to establish a
working understanding among the parties as to the scope of the Construction Project and
duties of the Contractor. At this meeting, Contractor and City shall resolve any outstanding
issues related to the plans, designs, drawings, and specifications. If the parties are unable
to resolve these issues and the City fails, refuses, or is unable to approve the same, no work
shall commence on the Construction Project until such issues are resolved and the City
approves the related plans, designs, drawings, and specifications.
c. Except as provided elsewhere in this Agreement, Contractor shall furnish
all the labor, materials, equipment, tools, and services necessary to perform and complete
the Construction Project.
d. During work on the Construction Project, and as part of the final completion
of the Construction Project, Contractor shall clean up the Project site, including the removal
and satisfactory disposal of all waste, garbage, excess materials, and equipment, and the
performance of any other work necessary to restore the site to at least as good order and
condition as at the commencement of the Construction Project.
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Construction Agreement for Professional Building Elevator Machine Room Modernization
FY2024-2025
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2. City-Supplied Materials: The City may supply materials from time to time in
furtherance of the Construction Project. Such materials will be noted as an addendum to this
Agreement.
3. Time of Performance: Contractor shall begin the Construction Project after
receiving a Notice to Proceed from City and shall complete the Construction Project no later than
August 15, 2024. Time is of the essence of completion of all work and each phase of the
Construction Project.
4. Liquidated Damages: If the Construction Project is not completed within the time
provided by this Agreement, the City may deduct for each day the Construction Project remains
uncompleted the sum of Zero Dollars ($0.00) from the compensation hereinafter specified and
retain that sum as payment for liquidated damages sustained by reason of the Contractor’s failure
to complete the Construction Project on time.
5. Compensation:
a. City shall pay to Contractor, and Contractor shall accept as full payment for
the performance of this Agreement and the Construction Project, the amount of One
Hundred and Seventy-Eight Thousand, Twenty-Two Dollars and 40 Cents ($178,022.40).
b. If work not included within the original Construction Documents is
requested by City, such additional work and the related compensation shall be agreed to in
writing by both parties prior to commencement of the additional work (“Change Order”).
c. City shall retain five percent (5%) of the total amount of compensation to
be paid to the Contractor to ensure compliance with the terms and conditions of this
Agreement and the timely completion of the Construction Project and any and all “punch
list” items (“Retainage Amount”). The Retainage Amount shall be paid to Contractor thirty
(30) days after the City’s final acceptance of the portion of work for which a separate price
is stated in the specifications for the Construction Project.
e. Upon acceptance of final payment and for other good and valuable
consideration, Contractor shall and hereby does release and forever discharge City, its
officers, agents, and employees of and from any and all claims, demands, actions, causes
of action, obligations, and liabilities of every kind and character whatsoever, in law and in
equity, whether now known or in the future discovered, arising from or related to this
Agreement or the Construction Project that Contractor may have or assert against City, its
officers, agents, and employees.
6. Inspection and Testing:
a. City has the right to inspect and test any and all work performed by
Contractor on the Construction Project. Contractor shall allow City and its agents access
to the Construction Project at all times and shall provide every reasonable facility for the
purpose of such inspection and testing, including temporarily discontinuing portions of the
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work or uncovering or taking down portions of the finished work. Any inspection and
testing performed by the City and its agents is for the sole benefit of the City and shall not
relieve the Contractor of its duty, responsibility, and obligation to ensure that the work
strictly complies with the Agreement terms and conditions and all applicable laws and
building and safety codes. City’s inspection and testing shall not be deemed or considered
acceptance by the City of any portion of the Construction Project. City’s inspection and
testing shall not serve to nullify, amend, or waive any warranties provided by the
Contractor under this Agreement.
b. Contractor shall, without charge, replace any material or correct any work
found by the City or its agents to be defective or otherwise not in compliance with the terms
and conditions of this Agreement. In the event Contractor fails to replace or correct any
defective work or materials after reasonable written notice by the City to do so, the City
may take such corrective action, either with its own materials and employees or by
retaining any third party to do so, and deduct the cost and expense of such corrective action
from the Contractor’s compensation.
7. Partial Utilization of Construction Project: City shall have the right to use or
occupy any portion of the Construction Project that City and Contractor mutually agree is
substantially completed and constitutes a separately functioning and usable part of the
Construction Project for its intended purpose without significant interference with Contractor’s
performance of the remaining portions of the Construction Project. In the event City takes
possession of any portion of the Construction Project, such possession shall not be deemed an
acceptance of the Construction Project, in whole or in part. City’s use of any portion of the
Construction Project shall not be grounds for extensions of any construction deadlines or a change
in the Contractor’s compensation. Contractor’s warranties shall run from the completion of the
total Construction Project and not from the date the City may take possession of selected portions
of the Construction Project.
8. Related Work at the Site: Nothing in this Agreement shall prevent or preclude
City, through its own employees or by contract with any third party, from performing other work
related to the Construction Project at the construction site; provided such related work is not
otherwise addressed in this Agreement and provided such related work does not otherwise interfere
with Contractor’s performance of this Agreement or the completion of the Construction Project.
Contractor shall afford any City employee, agent or representative, or any third party under
contract with the City to perform the related work, proper and safe access to the construction site,
a reasonable opportunity for the introduction and storage of materials and equipment, the
opportunity to perform the related work, and shall properly coordinate the Contractor’s work on
the Construction Project with the related work.
9. Contractor’s Warranties: Contractor represents and warrants as follows:
a. Unless otherwise specified by the terms of this Agreement, all materials and
equipment used by Contractor on the Construction Project shall be new and where not
otherwise specified, of the most suitable grade for their intended uses.
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b. All workmanship and materials shall be of a kind and nature acceptable to
the City.
c. All equipment, materials, and labor provided to, on, or for the Construction
Project must be free of defects and nonconformities in design, materials, and workmanship
for a minimum period beginning with the commencement of the work on the Construction
Project and ending one (1) year from the final completion and acceptance by the City of
the Construction Project, regardless of whether such equipment, materials, or labor were
supplied directly by Contractor or indirectly by Contractor’s subcontractors or suppliers.
Other express warranties on materials that provide for a warranty period longer than one
year apply for the period of that express warranty and are not reduced by this provision.
Upon receipt of City’s written notice of a defective or nonconforming condition during the
warranty period, Contractor shall take all actions, including redesign and replacement, to
correct the defective or nonconforming condition within a time frame acceptable to the
City and at no additional cost to the City. Contractor shall also, at its sole cost, perform
any tests required by City to verify that such defective or nonconforming condition has
been corrected. Contractor warrants the corrective action taken against defective and
nonconforming conditions for a period of an additional one (1) year from the date of City’s
acceptance of the corrective action.
d. Contractor and its sureties are liable for the satisfaction and full
performance of all warranties.
e. Contractor shall give its personal attention to the faithful prosecution of the
completion of the Construction Project and Contractor, or its duly authorized representative
assigned to serve as the Construction Project Manager, shall be personally present at the
site of the Construction Project during working hours for the term of this Agreement until
the completion of the Construction Project.
f. Contractor shall have a complete, accurate, and up-to-date set of
construction plans, drawings, and specifications on site at all times.
g. Contractor has examined all available records and made field examinations
of the site of the Construction Project. Contractor has knowledge of the field conditions to
be encountered during the Construction Project. Contractor has knowledge of the types
and character of equipment necessary for the work, the types of materials needed and the
sources of such materials, and the condition of the local labor market.
h. Contractor is responsible for the safety of the work and shall maintain all
lights, guards, signs, temporary passages, or other protections necessary for that purpose at
all times.
i. All work must be performed at Contractor’s risk, and Contractor shall
promptly repair or replace all damage and loss at its sole cost and expense regardless of the
reason or cause of the damage or loss; provided, however, should the damage or loss be
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caused by an intentional or negligent act of the City, the risk of such loss shall be placed
on the City.
j. Contractor is responsible for any loss or damage to materials, tools, or other
articles used or held for use in the completion of performance of the Construction Project.
k. Contractor’s performance must be without damage or disruption to any
other work or property of the City or of others and without interference with the operation
of existing machinery or equipment.
l. Title to all work, materials, and equipment covered by any payment of
Contractor’s compensation by City, whether directly incorporated into the Construction
Project or not, passes to City at the time of payment, free and clear of all liens and
encumbrances.
10. Delays and Extensions of Time: If Contractor’s performance of this Agreement
is prevented or delayed by any unforeseen cause beyond the control of the Contractor, including
acts or omissions of the City, Contractor shall, within ten (10) days of the commencement of any
such delay, give the City written notice thereof. Further, Contractor shall, within ten (10) days of
the termination of such delay, give the City written notice of the total actual duration of the delay.
If the City is provided with these required notices and if the City determines that the cause of the
delay was not foreseeable, was beyond the control of the Contractor, and was not a result of the
fault or negligence of the Contractor, then the City will determine the total duration of the delay
and extend the time for performance of the Agreement accordingly. Unless the delay is caused by
the intentional interference of the City with the Contractor’s performance, Contractor shall make
no claim for damages or any other claim other than for an extension of time as herein provided by
reason of any delays.
11. Suspension:
a. The City may, by written notice to the Contractor and at its convenience for
any reason, suspend the performance of all or any portion of the work to be performed on
the Construction Project (“Notice of Suspension”). The Notice of Suspension shall set
forth the time of suspension, if then known to the City. During the period of suspension,
Contractor shall use its best efforts to minimize costs associated with the suspension.
b. Upon Contractor’s receipt of any Notice of Suspension, unless the notice
requires otherwise, Contractor shall: (1) immediately discontinue work on the date and to
the extent specified in the Notice of Suspension; (2) place no further orders or subcontracts
for materials, services, or equipment; (3) promptly make every reasonable effort to obtain
suspension upon terms satisfactory to City of all orders, subcontracts, and rental
agreements to the extent that they relate to the performance of the work suspended; and (4)
continue to protect and maintain the Project, including those portions on which work has
been suspended.
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c. As compensation for the suspended work, Contractor will be reimbursed for
the following costs, reasonably incurred, without duplication of any item, and to the extent
that such costs directly resulted from the suspension: (1) a standby charge paid during the
period of suspension which will be sufficient to compensate Contractor for keeping, to the
extent required in the Notice of Suspension, Contractor’s organization and equipment
committed to the Project in standby status; (2) all reasonably incurred costs for the
demobilization of Contractor’s and subcontractor’s crews and equipment; (3) an equitable
amount to reimburse Contractor for the cost to protect and maintain the Project during the
period of suspension; and (4) an equitable adjustment in the cost of performing the
remaining portion of the work post-suspension if, as a direct result of the suspension, the
cost to Contractor of subsequently performing the remaining work on the Construction
Project has increased or decreased.
d. Upon receipt of written notice by the City to resume the suspended work
(“Notice to Resume Work”), Contractor shall immediately resume performance of the
suspended work as to the extent required in the Notice to Resume Work. Any claim by
Contractor for time or compensation described in Section 11(c) shall be made within fifteen
(15) days after receipt of the Notice to Resume Work and Contractor shall submit a revised
Construction Schedule for the City’s review and approval. Contractor’s failure to timely
make such a claim shall result in a waiver of the claim.
e. No compensation described in Section 11(c) shall be paid and no extension
of time to complete the Construction Project shall be granted if the suspension results from
Contractor’s non-compliance with or breach of the terms or requirements of this
Agreement.
12. Termination for Contractor’s Fault:
a. If Contractor refuses or fails to timely do the work, or any part thereof, or
fails to perform any of its obligations under this Agreement, or otherwise breaches any
terms or conditions of this Agreement, the City may, by written notice, terminate this
Agreement and the Contractor’s right to proceed with all or any part of the Construction
Project (“Termination Notice Due to Contractor’s Fault”). The City may then take over
the Construction Project and complete it, either with its own resources or by re-letting the
contract to any other third party, and may immediately take possession of and use such
materials, appliances, tools, and equipment as may be on the site and which may be
necessary for the completion of the Construction Project.
b. In the event of a termination pursuant to this Section 12, Contractor shall be
entitled to payment only for those services Contractor actually rendered. In the case of a
lump sum or unit price contract, Contractor shall not be entitled to any further payment
until the Construction Project has been completed. Upon completion of the Construction
Project, if the unpaid balance of the Contractor’s compensation exceeds the cost to the City
of completing the work, including all costs paid to any subcontractors or third parties
retained by the City to complete the Construction Project and all administrative costs
resulting from the termination (“City’s Cost for Completion”), such excess shall be paid to
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the Contractor. If the City’s Cost for Completion exceeds the unpaid balance of the
Contractor’s compensation, then Contractor and its sureties shall be liable for and shall pay
the difference, plus interest at the rate applicable to court judgments, to the City.
c. Any termination provided for by this Section 12 shall be in addition to any
other remedies to which the City may be entitled under the law or at equity.
d. In the event of termination under this Section 12, Contractor shall, under no
circumstances, be entitled to claim or recover consequential, special, punitive, lost business
opportunity, lost productivity, field office overhead, general conditions costs, or lost profits
damages of any nature arising, or claimed to have arisen, as a result of the termination.
13. Termination for City’s Convenience:
a. Should conditions arise which, in the sole opinion and discretion of the City,
make it advisable to the City to cease work on the Construction Project, the City may
terminate this Agreement by written notice to Contractor (“Notice of Termination for
City’s Convenience”). The termination shall be effective in the manner specified in the
Notice of Termination for City’s Convenience and shall be without prejudice to any claims
that the City may otherwise have against Contractor.
b. Upon receipt of the Notice of Termination for City’s Convenience, unless
otherwise directed in the Notice, the Contractor shall immediately cease work on the
Construction Project, discontinue placing orders for materials, supplies, and equipment for
the Construction Project, and make every reasonable effort to cancel all existing orders or
contracts upon terms satisfactory to the City. Contractor shall do only such work as may
be necessary to preserve, protect, and maintain work already completed, in progress, or in
transit to the construction site.
c. In the event of a termination pursuant to this Section 13, Contractor is
entitled to payment only for those services Contractor actually rendered and materials
actually purchased or which Contractor has made obligations to purchase on or before the
receipt of the Notice of Termination for City’s Convenience, and reasonably incurred costs
for demobilization of Contractor’s and any subcontractor’s crews. It is agreed that any
materials that City is obligated to purchase from Contractor will remain the City’s sole
property.
d. The compensation described in Section 13(c) is the sole compensation due
to Contractor for its performance of this Agreement. Contractor shall, under no
circumstances, be entitled to claim or recover consequential, special, punitive, lost business
opportunity, lost productivity, field office overhead, general conditions costs, or lost profits
damages of any nature arising, or claimed to have arisen, as a result of the termination.
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14. Limitation on Contractor’s Damages; Time for Asserting Claim:
a. In the event of a claim for damages by Contractor under this Agreement,
Contractor’s damages shall be limited to contract damages and Contractor hereby expressly
waives any right to claim or recover consequential, special, punitive, lost business
opportunity, lost productivity, field office overhead, general conditions costs, or lost profits
damages of any nature or kind.
b. In the event Contractor wants to assert a claim for damages of any kind or
nature, Contractor shall provide City with written notice of its claim, the facts and
circumstances surrounding and giving rise to the claim, and the total amount of damages
sought by the claim, within ten (10) days of the facts and circumstances giving rise to the
claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights
to assert such claim.
15. Representatives and Notices:
a. City’s Representative: The City’s Representative for the purpose of this
Agreement shall be Max Ziegler, Facilities Assistant Superintendent, or such other
individual as City shall designate in writing. Whenever approval or authorization from or
communication or submission to City is required by this Agreement, such communication
or submission shall be directed to the City’s Representative and approvals or authorizations
shall be issued only by such Representative; provided, however, that in exigent
circumstances when City’s Representative is not available, Contractor may direct its
communication or submission to other designated City personnel or agents and may receive
approvals or authorization from such persons.
b. Contractor’s Representative: The Contractor’s Representative for the
purpose of this Agreement shall be Jake Berger, Project Manager, or such other individual
as Contractor shall designate in writing. Whenever direction to or communication with
Contractor is required by this Agreement, such direction or communication shall be
directed to Contractor’s Representative; provided, however, that in exigent circumstances
when Contractor’s Representative is not available, City may direct its direction or
communication to other designated Contractor personnel or agents.
c. Notices: All notices required by this Agreement shall be in writing
and shall be provided to the Representatives named in this Section. Notices shall be
deemed given when delivered, if delivered by courier to Party’s address shown above
during normal business hours of the recipient; or when sent, if sent by email or fax (with a
successful transmission report) to the email address or fax number provided by the Party’s
Representative; or on the fifth business day following mailing, if mailed by ordinary mail
to the address shown above, postage prepaid.
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16. Locating Underground Facilities: Contractor shall be responsible for obtaining
and determining the location of any underground facilities, including but not limited to, the
location of any pipelines or utility supply, delivery, or service lines in accordance with the
provisions of §69-4-501, et seq., Montana Code Annotated (MCA). Contractor shall make every
effort to avoid damage to underground facilities and shall be solely responsible for any damage
that may occur. If City personnel assume responsibility for locating any underground facilities,
this fact shall be noted in writing prior to commencement of such location work.
17. Permits: Contractor shall provide all notices, comply with all applicable laws,
ordinances, rules, and regulations, obtain all necessary permits, licenses, including a City of
Bozeman business license, and inspections from applicable governmental authorities, pay all fees
and charges in connection therewith, and perform all surveys and locations necessary for the timely
completion of the Construction Project.
18. Ownership of Documents; Indemnification: All plans, designs, drawings,
specifications, documents, sample results and data, in whatever medium or format, originated or
prepared by or for Contractor in contemplation of, or in the course of, or as a result of this
Agreement or work on the Construction Project, shall be promptly furnished to the City (“City
Documents and Information”). All City Documents and Information shall be the exclusive
property of the City and shall be deemed to be works-for-hire. Contractor hereby assigns all right,
title, and interest in and to the City Documents and Information, including but not limited to, all
copyright and patent rights in and to the City Documents and Information. Neither party grants to
the other any express or implied licenses under any patents, copyrights, trademarks, or other
intellectual property rights, except to the extent necessary to complete its obligations to the other
under this Agreement.
19. Laws and Regulations: Contractor shall comply fully with all applicable state and
federal laws, regulations, and municipal ordinances including, but not limited to, all workers’
compensation laws, all environmental laws including, but not limited to, the generation and
disposal of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules,
codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, all applicable City,
County, and State building and electrical codes, the Americans with Disabilities Act, and all non-
discrimination, affirmative action, and utilization of minority and small business statutes and
regulations.
20. Nondiscrimination and Equal Pay: The Contractor agrees that all hiring by
Contractor of persons performing this Agreement shall be on the basis of merit and qualifications.
The Contractor will have a policy to provide equal employment opportunity in accordance with all
applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor
will not refuse employment to a person, bar a person from employment, or discriminate against a
person in compensation or in a term, condition, or privilege of employment because of race, color,
religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual
orientation, gender identity, physical or mental disability, except when the reasonable demands of
the position require an age, physical or mental disability, marital status or sex distinction. The
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Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section
140, Title 2, United States Code, and all regulations promulgated thereunder.
Contractor represents it is, and for the term of this Agreement will be, in compliance with
the requirements of the Equal Pay Act of 1963 and Section 39-3-104, MCA (the Montana Equal
Pay Act). Contractor must report to the City any violations of the Montana Equal Pay Act that
Contractor has been found guilty of within 60 days of such finding for violations occurring during
the term of this Agreement.
Contractor shall require these nondiscrimination terms of its subcontractors providing
services under this Agreement.
21. Intoxicants; DOT Drug and Alcohol Regulations: Contractor shall not permit or
suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, upon the site
of the Construction Project. Contractor acknowledges it is aware of and shall comply with its
responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations
governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the
right to request proof of such compliance and Contractor shall be obligated to furnish such proof.
The Contractor shall be responsible for instructing and training the Contractor's employees
and agents in proper and specified work methods and procedures. The Contractor shall provide
continuous inspection and supervision of the work performed. The Contractor is responsible for
instructing its employees and agents in safe work practices.
22. Labor Relations:
a. In the event that, during the term of this Agreement and throughout the
course of Contractor’s performance of the Construction Project, any labor problems or
disputes of any type arise or materialize which in turn cause any work on the Construction
Project to cease for any period of time, Contractor specifically agrees to take immediate
steps, at its own expense and without expectation of reimbursement from City, to alleviate
or resolve all such labor problems or disputes. The specific steps Contractor shall take to
resume work on the Construction Project shall be left to the discretion of Contractor;
provided, however, that Contractor shall bear all costs of any related legal action.
Contractor shall provide immediate relief to the City so as to permit the work on the
Construction Project to resume and be completed within the time frames set forth in the
Construction Schedule at no additional cost to City.
b. Contractor shall indemnify, defend, and hold the City harmless from any
and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting
from, or occurring in connection with any labor problems or disputes or any delays or
stoppages of work associated with such problems or disputes.
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23. Subcontractors:
a. Contractor may employ subcontractors for any work on the Construction
Project. Contractor shall provide City with a list of all subcontractors employed.
b. Contractor remains fully responsible for the acts and omissions of any
subcontractor, just as Contractor is for its own acts and omissions, and Contractor shall
remain fully responsible and liable for the timely completion of the Construction Project.
c. Contractor is solely liable for any and all payments to subcontractors.
Contractor shall hold all payments received from the City in trust for the benefit of
subcontractors, and all such payments shall be used to satisfy obligations of the
Construction Project before being used for any other purpose. Contractor shall make any
payments due to any subcontractor within seven (7) days of Contractor’s receipt of
payment, including a proportional part of the retainage Contractor has received from the
City. In the event of a dispute regarding any subcontractor’s invoice, Contractor shall
promptly pay the undisputed amount to the subcontractor and notify the subcontractor in
writing of the amount in dispute and the reasons for the dispute. Any withholding of
payment must comply with the requirements of §28-2-2103, MCA. In the event Contractor
is unwilling or unable to make timely and proper payment to any subcontractor, City may
elect to withhold any payment otherwise due to Contractor and upon seven (7) days’
written notice to Contractor, may pay subcontractor by direct or joint payment.
24. Indebtedness and Liens: Before City may make any final payment to Contractor,
Contractor shall furnish City with satisfactory proof that there are no outstanding debts or liens in
connection with the Construction Project. If the Contractor allows any indebtedness to accrue to
subcontractors or others during the progress of the work, and fails to pay or discharge the same
within five (5) days after demand, then City may either withhold any money due to Contractor
until such indebtedness is paid or apply the same towards the discharge of the indebtedness. If
any lien or claim is filed or made by any subcontractor, material supplier, or any other person, the
Contractor shall immediately notify the City and shall cause the same to be discharged of record
within thirty (30) days after its filing.
25. Hazard Communication: Contractor shall comply with all hazard communication
requirements dictated by the Environmental Protection Agency, the Montana Department of
Agriculture, OSHA, Hazard Communications Standard, 29 CFR 1910.1200, and applicable City
ordinances. Contractor shall supply a chemical list, the associated material safety data sheets
(MSDS), and other pertinent health exposure data for chemicals that the Contractor’s,
subcontractor’s or the City’s employees may be exposed to while working on City property during
the course of the Construction Project. One copy of this documentation must be delivered to City
to the attention of the City’s Representative. This documentation must be delivered before work
involving these chemicals may commence.
26. Accounts and Records: During the term of this Agreement and for two (2) years
following the City’s final acceptance of the Construction Project, Contractor shall maintain
accounts and records related to the Construction Project. Upon reasonable notice, City shall have
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the right to inspect all such accounts and records, including but not limited to, Contractor’s records,
books, correspondence, instructions, drawings, specifications, field and site notes, receipts,
invoices, bills, contracts, or other documents relating to the Construction Project.
27. Indemnification; Insurance; Bonds:
a. Contractor agrees to release, defend, indemnify, and hold harmless the City,
its agents, representatives, employees, and officers (collectively referred to for purposes of
this Section as the City) from and against any and all claims, demands, actions, fees and
costs (including attorney’s fees and the costs and fees of and expert witness and
consultants), losses, expenses, liabilities (including liability where activity is inherently or
intrinsically dangerous) or damages of whatever kind or nature connected therewith and
without limit and without regard to the cause or causes thereof or the negligence of any
party or parties that may be asserted against, recovered from or suffered by the City
occasioned by, growing or arising out of or resulting from or in any way related to: (i) the
negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent,
reckless, or intentional misconduct of any of the Contractor’s agents.
b. Such obligations shall not be construed to negate, abridge, or reduce other
rights or obligations of indemnity that would otherwise exist. The indemnification
obligations of this Section must not be construed to negate, abridge, or reduce any
common-law or statutory rights of the indemnitee(s) which would otherwise exist as to
such indemnitee(s).
c. Contractor’s indemnity under this Section shall be without regard to and
without any right to contribution from any insurance maintained by City.
d. Should the City be required to bring an action against the Contractor to
assert its right to defense or indemnification under this Agreement or under the
Contractor’s applicable insurance policies required below the City shall be entitled to
recover reasonable costs and attorney fees incurred in asserting its right to indemnification
or defense but only if a court of competent jurisdiction determines the Contractor was
obligated to defend the claim(s) or was obligated to indemnify the City for a claim(s) or
any portion(s) thereof.
e. In the event of an action filed against the City resulting from the City’s
performance under this Agreement, the City may elect to represent itself and incur all costs
and expenses of suit.
f. Contractor also waives any and all claims and recourse against the City,
including the right of contribution for loss or damage to person or property arising from,
growing out of, or in any way connected with or incident to the performance of this
Agreement except “responsibility for [City’s] own fraud, for willful injury to the person or
property of another, or for violation of law, whether willful or negligent” as per 28-2-702,
MCA.
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g. These obligations shall survive termination of this Agreement and the
services performed hereunder.
h. In addition to and independent from the above, Contractor shall at
Contractor’s expense secure insurance coverage through an insurance company or
companies duly licensed and authorized to conduct insurance business in Montana which
insures the liabilities and obligations specifically assumed by the Contractor in this Section.
The insurance coverage shall not contain any exclusion for liabilities specifically assumed
by the Contractor in subsection (a) of this Section. The insurance shall cover and apply to
all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed
against, recovered from, or suffered by the City without limit and without regard to the
cause therefore and which is acceptable to the City. Contractor shall furnish to the City an
accompanying certificate of insurance and accompanying endorsements in amounts not
less than as shown below:
• Workers’ Compensation – not less than statutory limits;
• Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate;
• Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual
aggregate;
• Products and Completed Operations – $1,000,000;
• Automobile Liability - $1,000,000 property damage/bodily injury; $2,000,000
annual aggregate (all owned, hired, non-owned vehicles);
• Builder’s Risk/Property Insurance at least as broad as that provided by the ISO
special causes of loss form (CP10 30) naming at a minimum the City in an
amount equal to greater of Contractor’s compensation or full replacement value of
the work (covering at a minimum all work, buildings, materials and equipment,
whether on site or in transit, loss due to fire, lightening, theft, vandalism,
malicious mischief, earthquake, collapse, debris removal, demolition occasioned
by enforcement of laws, water damage, flood if site within a flood plain, repair or
replacement costs, testing and start-up costs) on an all risk coverage basis. This
insurance must include waivers of subrogation between the City and Contractor to
the extent that damage to the Construction Project or City Hall is covered by other
insurance;
• Owner’s and Contractor’s Protective Liability: one policy designating the City
(including its agents, representatives, employees, and officers) as the insured and
another independent policy designated the City’s Representative (including its
consultants, consultants, agents and employees) as the insured on the declarations
with both policies covering: (i) operations performed by the Contractor under this
Agreement for the City; and (ii) the City’s and City’s Representatives acts or
omissions, including negligent acts, in connection with its general supervision of
the work of the Contractor’s and its subcontractors - $1,000,000 per occurrence;
$2,000,000 aggregate;
• Contractual Liability Insurance (covering the Contractor’s indemnity
obligations described in this Agreement) - $1,000,000 per occurrence $2,000,000
aggregate
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The amounts of insurance provided shall be exclusive of defense costs. The City of
Bozeman shall be endorsed as an additional or named insured on a primary non-
contributory basis on both the Commercial General and Automobile Liability policies. The
insurance and required endorsements must be in a form suitable to City and shall include
no less than a thirty (30) day notice of cancellation or non-renewal. Contractor shall notify
City within two (2) business days of Contractor’s receipt of notice that any required
insurance coverage will be terminated or Contractor’s decision to terminate any required
insurance coverage for any reason.
The City must approve all insurance coverage and endorsements prior to the
Contractor commencing work.
• The Contractor shall furnish a Performance Bond and a Payment Bond in favor of the
City each in an amount equal to one-hundred Percent (100%) of the Agreement amount.
28. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all
appropriate employee withholdings. Contractor understands that all contractors or subcontractors
working on a publicly funded project are required to pay or have withheld from earnings a license
fee of one percent (1%) of the gross contract price if the gross contract price is Five Thousand
Dollars ($5,000) or more. This license fee is paid to the Montana Department of Revenue.
29. Dispute Resolution:
a. Any claim, controversy, or dispute between the parties, their agents,
employees, or representatives shall be resolved first by negotiation between senior-level
personnel from each party duly authorized to execute settlement agreements. Upon mutual
agreement of the parties, the parties may invite an independent, disinterested mediator to
assist in the negotiated settlement discussions.
b. If the parties are unable to resolve the dispute within thirty (30) days from
the date the dispute was first raised, then such dispute shall be resolved in a court of
competent jurisdiction in compliance with the Applicable Law provisions of this
Agreement.
30. Survival: Contractor’s indemnification and warranty obligations shall survive the
termination or expiration of this Agreement for the maximum period allowed under applicable
law.
31. Headings: The headings used in this Agreement are for convenience only and are
not be construed as a part of the Agreement or as a limitation on the scope of the particular
paragraphs to which they refer.
32. Waiver: A waiver by City of any default or breach by Contractor of any covenants,
terms, or conditions of this Agreement does not limit City’s right to enforce such covenants, terms,
or conditions or to pursue City’s rights in the event of any subsequent default or breach.
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33. Attorney’s Fees and Costs: In the event it becomes necessary for either Party to
retain an attorney to enforce any of the terms or conditions of this Agreement or to give any notice
required herein, then the prevailing Party or the Party giving notice shall be entitled to reasonable
attorney's fees and costs, including fees, salary, and costs of in-house counsel including the City
Attorney’s Office staff.
34. Severability: If any portion of this Agreement is held to be void or unenforceable,
the balance thereof shall continue in effect.
35. Applicable Law: The parties agree that this Agreement is governed in all respects
by the laws of the State of Montana.
36. Binding Effect: This Agreement is binding upon and inures to the benefit of the
heirs, legal representatives, successors, and assigns of the parties.
37. Amendments: This Agreement may not be modified, amended, or changed in any
respect except by a written document signed by all parties.
38. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the
parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or
enforced by a third party.
38. Counterparts: This Agreement may be executed in counterparts, which together
constitute one instrument.
39. Assignment: Contractor may not assign this Agreement in whole or in part without
the prior written consent of the City. No assignment will relieve Contractor of its responsibility
for the performance of the Agreement and the completion of the Construction Project. Contractor
may not assign to any third party other than Contractor’s subcontractors on the Construction
Project, the right to receive monies due from City without the prior written consent of City.
40. Authority: Each party represents that it has full power and authority to enter into
and perform this Agreement and the person signing this Agreement on behalf of each party has
been properly authorized and empowered to sign this Agreement.
41. Independent Contractor: The parties agree and acknowledge that in the
performance of this Agreement and the completion of the Construction Project, Contractor shall
render services as an independent contractor and not as the agent, representative, subcontractor, or
employee of the City. The parties further agree that all individuals and companies retained by
Contractor at all times will be considered the agents, employees, or independent contractors of
Contractor and at no time will they be the employees, agents, or representatives of the City.
42. Integration: This Agreement and all Exhibits attached hereto constitute the entire
agreement of the parties. Covenants or representations not contained therein or made a part thereof
by reference, are not binding upon the parties. There are no understandings between the parties
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other than as set forth in this Agreement. All communications, either verbal or written, made prior
to the date of this Agreement are hereby abrogated and withdrawn unless specifically made a part
of this Agreement by reference.
43. Consent to Electronic Signatures: The Parties have consented to execute this
Agreement electronically in conformance with the Montana Uniform Electronic Transactions Act,
Title 30, Chapter 18, Part 1, MCA.
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
IN WITNESS WHEREOF, Contractor and City have caused this Agreement to be
executed, effective on the date written above, and intend to be legally bound thereby.
CITY OF BOZEMAN, MONTANA CONTRACTOR
By: _______________________________ By:
Jeff Mihelich, City Manager
Print Name:
Title:
APPROVED AS TO FORM:
By: _______________________________
Greg Sullivan, City Attorney
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Owner
Vince BlantonXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Chuck Winn, Interim City Manager
EXHIBIT A
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DocuSign Envelope ID: 7115901E-2416-4A82-BCEE-5243E8D7F1F5
DocuSign Envelope ID: 7115901E-2416-4A82-BCEE-5243E8D7F1F5
Elevator Modernization Project – Stiff Professional Building
The City of Bozeman will be modernizing the elevator in the Stiff Professional Building at 20 E Olive St.
Otis Elevator Co. will be retrofitting the existing elevator to bring it up to modern standards. With this
project, there are several improvements to the machine room and elevator hoistway needed to bring
the system up to code which are outside the scope of Otis Elevators contract.
We are looking for a general contractor to undertake those improvements, which are summarized
below.
Carpentry:
- Install 7’6” drop ceiling in machine room below pipes to meet fire rating requirement – fire
rated access hatches to any plumbing controls
- Remove all flammable sound dampening from machine room
- Install second layer of sheetrock in machine room, patch and seal all penetrations to meet fire
rating requirement
- Inside hoistway, install 75 degree angle on top of horizontal surfaces (ledge at second floor)
- Install new machine room door and jamb – fire rated same as machine room with auto close and
spring lock
- Patch holes in concrete block in hoistway, maintaining hoistway fire rating
- sheetrock gaps between elevator door jambs and walls inside hoistway
Plumbing:
- Sump Pump designed for elevators with oil separator pinned to floor of bottom of hoistway
discharged to sanitary sewer
Electrical:
- Machine room thermostatic fire rated exhaust fan for temperature control requirement vented
to hoistway and a fire rated passive air intake. Fan should have ~135cfm capacity.
- Relocate existing light in machine room for drop ceiling, increase overall lighting
- Replace elevator main power disconnect with shunt trip
- Re-route conduit to elevator machinery
- Replace electrical conduit in pit to be either 4’ above bottom of pit or watertight
- 110v in machine room – overload protection in room- elevator code 620
- Replace outlet in pit with GFCI
- Install outlet for sump pump connection.
Fire Suppression Systems:
- Relocate smoke/heat detectors at top of shaft to next to sprinkler
- Relocate smoke/heat detectors in machine room after hard lid installed
- Relocate machine room sprinkler heads through new drop ceiling
- Smoke/heat at bottom of shaft not needed
- Shunt trip breaker fire protection interconnect as required by code
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