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HomeMy WebLinkAbout26 - Construction Agreements - Peak Water Services - MDT Lift Station 100 Nelson RoadConstruction Agreement for MDT sewer lift station 2026 Page 1 of 16 CONSTRUCTION AGREEMENT This Construction Agreement is made and entered into this 13th day of July, 2026 (“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, Peak Water Services, 81 Gold Miner Ln, Belgrade MT 59714, 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.Contractor will make entry into the sewer wet well for the Montana Department of Transportation sewer lift station, located at 100 Nelson Road, to investigate and repair leaks, (the “Construction Project”). 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. 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. The City will vacuum the fluid from the wet well prior to each entry. 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 Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 Construction Agreement for MDT sewer lift station 2026 Page 2 of 16 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 upon execution of this agreement by the Owner. The contract shall remain in effect for a period of one year from above date of Agreement or until the work has been completed. Time is of the essence of completion of all work and each phase of Construction Project. 4.Compensation: a.City must pay to Contractor, and Contractor must accept as full payment for the performance of this Agreement and Construction Project an amount in accordance with the scheduled rates attached as Exhibit A of this agreement not to exceed $10,000. Any additional payment requested shall be agreed to by the Parties via a written change order. 5.Inspection and Testing: 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. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 Construction Agreement for MDT sewer lift station 2026 Page 3 of 16 6.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. 7.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. 8.Contractor’s Representations and Warranties: Contractor represents and warrants as follows: 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 Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 Construction Agreement for MDT sewer lift station 2026 Page 4 of 16 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 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. g.Contractor is responsible for the safety of the work and the safety of the site at all times. i.Fall protection must be utilized when the wet well hatches are open. ii.Proper OSHA procedures for confined space entry and fall protection must be followed. iii.Contractor acknowledges that wet well entry to perform this service is required and this may be considered an abnormally dangerous activity. iv.Contractor assumes all responsibility for ensuring and enforcing safe working conditions and compliance with all safety-related rules and regulations for the benefit of its own employees, the employees of subcontractors and the public when conducting the work, including all duties related to safety and will indemnify the City for any losses or damages the City may incur as a result of work conditions. h.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. i.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. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 Construction Agreement for MDT sewer lift station 2026 Page 5 of 16 j.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. k.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. 9.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, 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 10, Contractor is entitled to payment only for those services Contractor actually rendered. In the case of a lump sum or unit price contract, Contractor is not 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 10 is 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 10, Contractor is not, under any circumstances, 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. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 Construction Agreement for MDT sewer lift station 2026 Page 6 of 16 10.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 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 11, 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 11(c) is the sole compensation due to Contractor for its performance of this Agreement. Contractor is not, under any circumstances, 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. 11.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 Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 Construction Agreement for MDT sewer lift station 2026 Page 7 of 16 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. 12.Representatives and Notices: a.City’s Representative: City’s Representative for the purpose of this Agreement is Nick Pericich, Water & Sewer Superintendent, 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 Jennifer Bos 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. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 Construction Agreement for MDT sewer lift station 2026 Page 8 of 16 13. 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 and charges in connection therewith, and perform all surveys and locations necessary for the timely completion of Construction Project. 14. 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. 15. 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 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. 16. 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 Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 Construction Agreement for MDT sewer lift station 2026 Page 9 of 16 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. 17. 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 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 20(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. 18. 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. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 Construction Agreement for MDT sewer lift station 2026 Page 10 of 16 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. 19.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. 20.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. 21.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 Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 Construction Agreement for MDT sewer lift station 2026 Page 11 of 16 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). 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 Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 Construction Agreement for MDT sewer lift station 2026 Page 12 of 16 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; • 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 Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 Construction Agreement for MDT sewer lift station 2026 Page 13 of 16 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. 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. 22. 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. 23. 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. 24. Survival: Contractor’s indemnification and warranty obligations must survive the termination or expiration of this Agreement for the maximum period allowed under applicable law. 25. 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. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 Construction Agreement for MDT sewer lift station 2026 Page 14 of 16 26. 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. 27. 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 reasonable attorney's fees and costs, including fees, salary, and costs of in-house counsel including City Attorney’s Office staff. 28. Severability: If any portion of this Agreement is held to be void or unenforceable, the balance thereof must continue in effect. 29. Applicable Law: The Parties agree that this Agreement is governed in all respects by the laws of the State of Montana. 30. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs, legal representatives, successors, and assigns of the Parties. 31. Amendments: This Agreement may not be modified, amended, or changed in any respect except by a written document signed by all Parties. 32. 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. 33. Counterparts: This Agreement may be executed in counterparts, which together constitute one instrument. 34. 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. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 Construction Agreement for MDT sewer lift station 2026 Page 15 of 16 35. 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. 36. 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 contractors of Contractor and at no time will they be the employees, agents, or representatives of City. 37. 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. 38. 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 Jennifer Bos, Vice President of Operations Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 Construction Agreement for MDT sewer lift station 2026 Page 16 of 16 APPROVED AS TO FORM: By: _______________________________ Greg Sullivan, City Attorney Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9 Corporate Office 81 Gold Miner Ln, Unit A Belgrade, MT 59714 www.peakwaterservices.com 406.813.7035 Exhibit A 2026 Rate Chart For MT, ID, ND, UT, CO & WY Regions Rate Unit Additional Call Out Rate (One-time fee) Minimum Charge1 LABOR Standard Straight Time (between 8am & 5pm local time) $140.00 per man hour -$500.00 Contract Straight Time $120.00 per man hour -- Specialized Labor2 $165.00 per man hour -$500.00 ADDITIONS TO STRAIGHT TIME Confined Space3 / Hazardous Space4 -$500 per entrant, per day -$500.00 After Hours5 --$250.00 - Weekends --$250.00 - Holidays6 --$250.00 - Per Diem (lodging not included) + $75.00 per tech, per day -- Various Consumables7 ---$50.00 SPECIALTY EQUIPMENT Crane Truck $250.00 per day -$250.00 Hotsy $250.00 per day -$250.00 Fixturlaser Evo (Shaft Alignment) $125.00 per day -$125.00 Acoem Falcon (Vibration Analysis) $200.00 per day -$200.00 All Test Pro (Motor Circuit Analysis) $125.00 per day -$125.00 Travel Time will be included with standard rate or contract rate for time traveled from shop to shop, per tech. We generally send two (2) service technicians to respond to service calls. Minimum Charge1 does not apply to contract customers. Specialized Labor2 includes work that demands specialized skills or expertise in particular fields involving tasks requiring advanced knowledge and the use of specialty equipment such as vibration analysis to accomplish ‘complex’ objectives. Docusign Envelope ID: 2BB7D9A7-2588-8DC9-8316-58C90AE79DF9