HomeMy WebLinkAboutAppendix B Construction Agreement
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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, ___________________________,
hereinafter referred to as “Contractor.” 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 _____________________ (the
“Construction Project”) and Contractor’s duties is set forth in the Scope of Services, attached as
Exhibit A and by this reference made a part of this Agreement.
b. Prior to the commencement of any work on Construction Project, Contractor’s
representatives and City’s representatives must hold a meeting to establish a working
understanding among the Parties as to the scope of Construction Project and duties of
Contractor. At this meeting, Contractor and City must resolve any outstanding issues related to
the plans, designs, drawings, and specifications. If the Parties are unable to resolve these issues
and City fails, refuses, or is unable to approve the same, no work must commence on
Construction Project until such issues are resolved and City approves the related plans, designs,
drawings, and specifications.
c. Except as provided elsewhere in this Agreement, Contractor must furnish all the
labor, materials, equipment, tools, and services necessary to perform and complete Construction
Project.
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d. During work on Construction Project, and as part of the final completion of
Construction Project, Contractor must 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 Construction Project.
2. City-Supplied Materials: City may supply materials from time to time in
furtherance of Construction Project. Such materials will be noted as an addendum to this
Agreement.
3. Time of Performance: Contractor must begin Construction Project after receiving
a Notice to Proceed from City and must complete Construction Project no later than
______________________. Time is of the essence of completion of all work and each phase of
Construction Project.
4. Liquidated Damages: If Construction Project is not completed within the time
provided by this Agreement, City may deduct for each day Construction Project remains
uncompleted the sum of Five Hundred Dollars ($500.00) from the compensation hereinafter
specified and retain that sum as payment for liquidated damages sustained by reason of
Contractor’s failure to complete Construction Project on time.
5. Compensation:
a. City must pay to Contractor, and Contractor must accept as full payment for the
performance of this Agreement and Construction Project, the amount of
_____________________________ Dollars ($_____________).
b. Prior to beginning work outside the original Construction Project, both Parties
must agree in writing to the additional work and costs (“Change Order”).
c. City may retain five percent (5%) of the total amount of compensation to be paid
to Contractor to ensure compliance with the terms and conditions of this Agreement and the
timely completion of Construction Project and any punch list items (“Retainage Amount”). City
must pay the Retainage Amount, if any, to Contractor thirty (30) days after City’s final acceptance
of Construction Project.
6. Inspection and Testing:
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a. City has the right to inspect and test any work performed by Contractor on
Construction Project. Contractor must allow City and its agents access to Construction Project at
all times and must provide access for inspection and testing, including temporarily discontinuing
portions of the work or uncovering or removing portions of the work. Any inspection and testing
performed by City and its agents is for the sole benefit of City and must not relieve Contractor of
its duties, responsibilities, and obligations to ensure the work strictly complies with the Scope of
Services and all applicable laws and building and safety codes. City’s inspection and testing is not
deemed or considered acceptance by City of any portion of Construction Project. City’s
inspection and testing does not serve to nullify, amend, or waive any warranties provided by
Contractor under this Agreement.
b. Contractor must, without charge, replace any material or correct any work found
by City or its agents to be defective or otherwise not in compliance with the terms and conditions
of this Agreement. If Contractor fails to replace or correct any defective work or materials after
receiving reasonable written notice by City, City may take corrective action. Corrective action
may include using City’s own materials and employees or retaining a third Party. City will deduct
the cost and expense of the corrective action from Contractor’s compensation.
7. Partial Utilization of Construction Project: City has the right to use or occupy any
portion of Construction Project City and Contractor mutually agree is substantially completed. If
City takes possession of any portion of Construction Project, this possession is not an acceptance
of Construction Project, in whole or in part. Any use by City of Construction Project is not grounds
for extensions of any construction deadlines or a change in Contractor’s compensation.
Contractor’s warranties runs from the completion of the total Construction Project and not from
the date City may take possession of selected portions of Construction Project.
8. Related Work at the Site: Nothing in this Agreement prevents or precludes City,
through its employees or by contract with a third Party, from performing work related to the
Project not otherwise addressed in the Scope of Services. Such work may not interfere with
Contractor’s performance of this Agreement. Contractor must allow access for any City
employee, agent or representative, or any third Party under contract with City to perform the
work.
9. Contractor’s Representations and Warranties: Contractor represents and
warrants as follows:
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a. Unless otherwise specified by the terms of this Agreement, all materials used by
Contractor on Construction Project must be new and of the most suitable grade for their intended
uses.
b. The quality of services and materials must be of a kind and nature acceptable to
City. All services provided to, on, or for Construction Project must be free of defects and
nonconformities.
c. Contractor’s representation and warranty begins with the commencement of the
work on Construction Project and ends one (1) year from the final completion and acceptance by
City of Construction Project, regardless of whether such equipment, materials, or labor were
supplied by Contractor or by Contractor’s subcontractors or suppliers. Other express warranties
for materials that provide for a longer warranty period are not reduced by this provision. When
Contractor receives City’s written notice of a defective or nonconforming condition during an
applicable warranty period, Contractor must take all actions, including redesign and replacement,
to correct the defective or nonconforming condition within a time frame acceptable to City and
at no additional cost to City. Contractor must also, at its sole cost, perform any tests required by
City to verify that Contractor corrected the defective or nonconforming condition. 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 is responsible for the completion of Construction Project. Contractor,
or its duly authorized representative assigned to serve as Construction Project Manager, must be
personally present at the site of Construction Project during working hours for the term of this
Agreement until the completion of Construction Project.
f. Contractor must 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 Construction Project. Contractor has knowledge of the field conditions to be encountered
during 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.
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h. Contractor is responsible for the safety of the work and must maintain all lights,
guards, signs, temporary passages, or other protections necessary for safety of the site at all
times.
i. All work must be performed at Contractor’s risk, and Contractor must 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.
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 Construction Project.
k. Contractor’s performance must be without damage or disruption to any other
work or property of City or of others and without interference with the operation of existing
machinery or equipment, unless otherwise agreed to in writing.
l. Title to all work, materials, and equipment covered by any payment of
Contractor’s compensation by City, will pass to City at the time of payment, free and clear of all
liens and encumbrances.
10. Prevailing Wage Requirements
a. Montana Resident Preference. The nature of the work performed, or services
provided, under this Contract meets the statutory definition of a "public works contract" in 18-
2-401, MCA. Unless superseded by federal law, Montana law requires that contractors and
subcontractors give preference to the employment of Montana residents for any public works
contract in excess of $25,000 for construction or non-construction services. Contractor must
abide by the requirements set out in 18-2-401 through 18-2-432, MCA, and all administrative
rules adopted under these statutes.
The Commissioner of the Montana Department of Labor and Industry has established the
resident requirements in accordance with 18-2-403 and 18-2-409, MCA. Any and all questions
concerning prevailing wage and Montana resident issues should be directed to the Montana
Department of Labor and Industry.
b. Standard Prevailing Rate of Wages. In addition, unless superseded by federal law,
all employees working on a public works contract must be paid prevailing wage rates in
accordance with 18-2-401 through 18-2-432, MCA, and all associated administrative rules.
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Montana law requires that all public works contracts, as defined in 18-2-401, MCA, in which the
total cost of the contract is greater than $25,000, contain a provision stating for each job
classification the standard prevailing wage rate, including fringe benefits, travel, per diem, and
zone pay that Contractors, subcontractors, and employers must pay during the public works
contract. Wage rate adjustments for multiyear public works contracts are the sole responsibility
of the Contractor and must be done in accordance with 18-2-417, MCA.
c. Notice of Wages and Benefits. Furthermore, 18-2-406, MCA, requires that all
contractors, subcontractors, and employers who are performing work or providing services
under a public works contract post in a prominent and accessible site on the project staging area
or work area, no later than the first day of work and continuing for the entire duration of the
contract, a legible statement of all wages and fringe benefits to be paid to the employees in
compliance with 18-2-423, MCA.
d. Wage Rates, Pay Schedule, and Records. 18-2-423, MCA, requires that employees
receiving an hourly wage must be paid on a weekly basis. Each contractor, subcontractor, and
employer must maintain payroll records in a manner readily capable of being certified for
submission under 18-2-423, MCA, for not less than three years after Contractor's,
subcontractor's, or employer's completion of work on the public works contract.
11. Delays and Extensions of Time: If Contractor’s performance of this Agreement is
prevented or delayed by any unforeseen cause beyond the control of Contractor, including acts
or omissions of City, Contractor must, within ten (10) days of the commencement of any such
delay, give City written notice thereof. Further, Contractor must, within ten (10) days of the
termination of such delay, give City written notice of the total actual duration of the delay. If City
is provided with these required notices and if City determines that the cause of the delay was not
foreseeable, was beyond the control of Contractor, and was not a result of the fault or negligence
of Contractor, then 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 City with Contractor’s performance, Contractor must make no claim for damages
or any other claim other than for an extension of time as herein provided by reason of any delays.
12. Suspension:
a. City may, by written notice to Contractor and at its convenience for any reason,
suspend the performance of all or any portion of the work to be performed on Construction
Project (“Notice of Suspension”). The Notice of Suspension must set forth the time of suspension,
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if then known to City. During the period of suspension, Contractor must 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 must: (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.
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 Construction Project has increased or decreased.
d. Upon receipt of written notice by City to resume the suspended work (“Notice to
Resume Work”), Contractor must 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) must be made within fifteen (15) days after receipt of
the Notice to Resume Work and Contractor must submit a revised Construction Schedule for
City’s review and approval. Contractor’s failure to timely make such a claim must result in a
waiver of the claim.
e. No compensation described in Section 11(c) must be paid and no extension of time
to complete Construction Project must be granted if the suspension results from Contractor’s
non-compliance with or breach of the terms or requirements of this Agreement.
13. Termination for Contractor’s Fault:
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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, City may, by written notice, terminate this Agreement and
Contractor’s right to proceed with all or any part of Construction Project (“Termination Notice
Due to Contractor’s Fault”). City may then take over 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 Construction Project.
b. In the event of a termination pursuant to this Section 13, Contractor must be
entitled to payment only for those services Contractor actually rendered. In the case of a lump
sum or unit price contract, Contractor must not be entitled to any further payment until
Construction Project has been completed. Upon completion of Construction Project, if the
unpaid balance of Contractor’s compensation exceeds the cost to City of completing the work,
including all costs paid to any subcontractors or third Parties retained by City to complete
Construction Project and all administrative costs resulting from the termination (“City’s Cost for
Completion”), such excess must be paid to Contractor. If City’s Cost for Completion exceeds the
unpaid balance of Contractor’s compensation, then Contractor and its sureties must be liable for
and must pay the difference, plus interest at the rate applicable to court judgments, to City.
c. Any termination provided for by this Section 13 must be in addition to any other
remedies to which City may be entitled under the law or at equity.
d. In the event of termination under this Section 13, Contractor must, 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.
14. Termination for City’s Convenience:
a. Should conditions arise which, in the sole opinion and discretion of City, make it
advisable to City to cease work on Construction Project, City may terminate this Agreement by
written notice to Contractor (“Notice of Termination for City’s Convenience”). The termination
must be effective in the manner specified in the Notice of Termination for City’s Convenience
and must be without prejudice to any claims that City may otherwise have against Contractor.
b. Upon receipt of the Notice of Termination for City’s Convenience, unless
otherwise directed in the Notice, Contractor must immediately cease work on Construction
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Project, discontinue placing orders for materials, supplies, and equipment for Construction
Project, and make every reasonable effort to cancel all existing orders or contracts upon terms
satisfactory to City. Contractor must 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 14, 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 City’s sole property.
d. The compensation described in Section 14(c) is the sole compensation due to
Contractor for its performance of this Agreement. Contractor must, 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.
15. 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 must be limited to contract damages and Contractor 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 must 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 must waive all rights to assert such claim.
c. Upon acceptance of final payment and for other good and valuable consideration,
Contractor must 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 Construction Project that
Contractor may have or assert against City, its officers, agents, and employees.
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16. Representatives and Notices:
a. City’s Representative: City’s Representative for the purpose of this Agreement
must be _____________________or such other individual as City must designate in writing.
Whenever approval or authorization from or communication or submission to City is required by
this Agreement, such communication or submission must be directed to City’s Representative
and approvals or authorizations must 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: Contractor’s Representative for the purpose of this
Agreement must be ________________ or such other individual as Contractor must designate in
writing. Whenever direction to or communication with Contractor is required by this Agreement,
such direction or communication must 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 must be in writing and must
be provided to the Representatives named in this Section. Notices must 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.
17. Locating Underground Facilities: Contractor must 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 must make every
effort to avoid damage to underground facilities and must be solely responsible for any damage
that may occur. If City personnel assume responsibility for locating any underground facilities,
this fact must be noted in writing prior to commencement of such location work.
18. Permits: Contractor must 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
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and charges in connection therewith, and perform all surveys and locations necessary for the
timely completion of Construction Project.
19. 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 Construction Project, must be promptly furnished to City (“City
Documents and Information”). All City Documents and Information must be the exclusive
property of City and must be deemed to be works-for-hire. Contractor hereby assigns all right,
title, and interest in and to City Documents and Information, including but not limited to, all
copyright and patent rights in and to 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.
20. Laws and Regulations: Contractor must 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.
21. Nondiscrimination and Equal Pay: Contractor agrees that all hiring by Contractor
of persons performing this Agreement must be on the basis of merit and qualifications.
Contractor will have a policy to provide equal employment opportunity in accordance with all
applicable state and federal anti-discrimination laws, regulations, and contracts. 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. Contractor must 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
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Pay Act). Contractor must report to 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 must require these nondiscrimination terms of its subcontractors providing
services under this Agreement.
22. Generative Artificial Intelligence (AI): City’s representative may, in their
discretion, permit or deny Contractor’s use of Generative AI. If Contractor is permitted to use
Generative AI, Contractor agrees to review any work created by Generative AI for accuracy, bias,
and copyright infringement. Contractor agrees it will never submit any confidential or personal
identifiable information acquired through this Agreement into a Generative AI system. For the
purposes of this section, Generative AI is defined as a deep learning model that can generate high
quality content such as stories or writings, images, voice replication and music.
23. Intoxicants; DOT Drug and Alcohol Regulations: Contractor must not permit or
suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, upon the site
of Construction Project. Contractor acknowledges it is aware of and must 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 must have the
right to request proof of such compliance and Contractor must be obligated to furnish such proof.
Contractor must be responsible for instructing and training Contractor's employees and
agents in proper and specified work methods and procedures. Contractor must provide
continuous inspection and supervision of the work performed. Contractor is responsible for
instructing its employees and agents in safe work practices.
24. Labor Relations:
a. In the event that, during the term of this Agreement and throughout the course
of Contractor’s performance of Construction Project, any labor problems or disputes of any type
arise or materialize which in turn cause any work on 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 must take to resume work on Construction Project must
be left to the discretion of Contractor; provided, however, that Contractor must bear all costs of
any related legal action. Contractor must provide immediate relief to City so as to permit the
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work on Construction Project to resume and be completed within the time frames set forth in
the Construction Schedule at no additional cost to City.
b. In addition to Contractor’s indemnification obligations under paragraph 29(a) of
this Agreement, Contractor must indemnify, defend, and hold 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. The provisions of paragraph 28(b) – (g) apply to this
subsection.
25. Subcontractors:
a. Contractor may employ subcontractors for any work on Construction Project.
Contractor must 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 must remain
fully responsible and liable for the timely completion of Construction Project.
c. Contractor is solely liable for any and all payments to subcontractors. Contractor
must hold all payments received from City in trust for the benefit of subcontractors, and all such
payments must be used to satisfy obligations of Construction Project before being used for any
other purpose. Contractor must 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 City. In the event of a dispute regarding any subcontractor’s invoice,
Contractor must 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.
26. Indebtedness and Liens: Before City may make any final payment to Contractor,
Contractor must furnish City with satisfactory proof that there are no outstanding debts or liens
in connection with Construction Project. If 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
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any lien or claim is filed or made by any subcontractor, material supplier, or any other person,
Contractor must immediately notify City and must cause the same to be discharged of record
within thirty (30) days after its filing.
27. Hazard Communication: Contractor must 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 must supply a chemical list, the associated material safety data sheets
(MSDS), and other pertinent health exposure data for chemicals that Contractor’s,
subcontractor’s or City’s employees may be exposed to while working on City property during
the course of Construction Project. One copy of this documentation must be delivered to City to
the attention of City’s Representative. This documentation must be delivered before work
involving these chemicals may commence.
28. Accounts and Records: During the term of this Agreement and for two (2) years
following City’s final acceptance of Construction Project, Contractor must maintain accounts and
records related to Construction Project. Upon reasonable notice, City must have 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 Construction Project.
29. 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
Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of Contractor’s agents.
b. Such obligations must 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).
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c. Contractor’s indemnity under this Section must be without regard to and without
any right to contribution from any insurance maintained by the City.
d. Should the City be required to bring an action against Contractor to assert its right
to defense or indemnification under this Agreement or under Contractor’s applicable insurance
policies required below the City must 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 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 [the 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.
g. These obligations must survive termination of this Agreement and the services
performed hereunder.
h. In addition to and independent from the above, Contractor must 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 Contractor in this Section. The insurance coverage must not
contain any exclusion for liabilities specifically assumed by Contractor in subsection (a) of this
Section. The insurance must 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 must 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;
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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 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 Contractor
under this Agreement for the City; and (ii) the City’s and the City’s
Representatives acts or omissions, including negligent acts, in connection with its
general supervision of the work of Contractor’s and its subcontractors -
$1,000,000 per occurrence; $2,000,000 aggregate;
Contractual Liability Insurance (covering Contractor’s indemnity obligations
described in this Agreement) - $1,000,000 per occurrence $2,000,000 aggregate
The amounts of insurance provided must be exclusive of defense costs. The City of Bozeman must
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 the City and must include no less than a thirty (30)
day notice of cancellation or non-renewal. Contractor must notify the 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.
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The City must approve all insurance coverage and endorsements prior to Contractor
commencing work.
i. Pursuant to the City’s authority provided for in 18-2-201(4) MCA, Contractor may
not be required to provide bonds as required by 18-2-201(1) MCA under this Agreement.
30. 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 must comply with 15-50-101 through 15-50-
311, MCA.
31. Dispute Resolution:
a. Any claim, controversy, or dispute between the Parties, their agents, employees,
or representatives must 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 must be resolved in a court of competent
jurisdiction in compliance with the Applicable Law provisions of this Agreement.
32. Survival: Contractor’s indemnification and warranty obligations must survive the
termination or expiration of this Agreement for the maximum period allowed under applicable
law.
33. 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.
34. 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.
35. 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 must be entitled to
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reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel
including City Attorney’s Office staff.
36. Severability: If any portion of this Agreement is held to be void or unenforceable,
the balance thereof must continue in effect.
37. Applicable Law: The Parties agree that this Agreement is governed in all respects
by the laws of the State of Montana.
38. Binding Effect: This Agreement is binding upon and inures to the benefit of the
heirs, legal representatives, successors, and assigns of the Parties.
39. Amendments: This Agreement may not be modified, amended, or changed in any
respect except by a written document signed by all Parties.
40. 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.
41. Counterparts: This Agreement may be executed in counterparts, which together
constitute one instrument.
42. Assignment: Contractor may not assign this Agreement in whole or in part
without the prior written consent of City. No assignment will relieve Contractor of its
responsibility for the performance of the Agreement and the completion of Construction Project.
Contractor may not assign to any third Party other than Contractor’s subcontractors on
Construction Project, the right to receive monies due from City without the prior written consent
of City.
43. 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.
44. Independent Contractor: The Parties agree and acknowledge that in the
performance of this Agreement and the completion of Construction Project, Contractor must
render services as an independent contractor and not as the agent, representative,
subcontractor, or employee of City. The Parties further agree that all individuals and companies
retained by Contractor at all times will be considered the agents, employees, or independent
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contractors of Contractor and at no time will they be the employees, agents, or representatives
of City.
45. 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 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.
46. 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:
Chuck Winn, City Manager
Print Name:
Title:
APPROVED AS TO FORM:
By: _______________________________
Greg Sullivan, City Attorney