HomeMy WebLinkAbout07- Martel Construction Agreement with Prugh & Lenon for the Intermodal Facility
1= AlA Document A 121'"CMc - 2003 and AGC
Document 565
Standard Form of Agreement Between Owner and Construction Manager
where the Construction Manager is Also the Constructor
AGREEMENT
madc as of the 19th day of June in the year of Two Thousand Seven
(In words, indicate day, month and year)
Bozeman Intermodal Facility
Black, Mendenhall and Tracy
Bozeman, MT 59715
ADDIl10NS AND DELETIONS:
The author of this document has
added information needed for its
completion. The author may also
have revised the text of the original
AlA standard form. An Additions and
Deletions Report that notes added
information as well as revisions to
the standard form text is available
from the author and should be
reviewed. A vertical line in the left
margin of this document indicates
where the author has added
necessary information and where
the author has added to or deleted
from the original AlA text.
This document has important legal
consequences. Consultation with an
attorney is encouraged with respect
to its completion or modification.
The 1997 Edition of AlA Document
A201, General Conditions of the
Contract for Construction, is referred
to herein. This Agreement requires
modification if other general
conditions are utilized.
BETWEEN the Owner:
(Name and address)
City of Bozeman
POBox 1230
Bozeman, MT 59715
and the Construction Manager:
(Name and address)
Martel Construction, Inc.
1203 South Church A venue
Bozeman, MT 59715
The Project is:
(Name, address and brief description)
The Architect is:
(Name and address)
Prugh & Lenon Architects, P.c.
27 East Main, Stc. 0
Bozeman, MT 59715
The Owner and Construction Manager agree as set forth below:
AlA Document A121 "'CMc -2003 end AGC Document 565. Copyright (\;) 1991 and 2003 by The American Institute of Architects and The Associated
General Confractors of America. All rights reserved. WARNING: This document is prolected by U.S. Copyright Law and Inlernalional Treaties.
Unauthori>:ed reproduction or distribution of lhls document, or any ponlon of ii, may result in severe civil and criminal penallles, and will be
prosecuted to the maximum extent possible under the law. This document was produced by AlA software at 15:19:50 on 07/10/2007 under Order
No.1000259422 1 which expires on 9/18/2007. and is not for resale.
User Notes: (1433524015)
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TABLE OF CONTENTS
ARTICLE 1 GENERAL PROVISIONS
i 1.1 Relationship of the Parties
i 1.2 General Conditions
ARTICLE 2 CONSTRUCTION MANAGER'S RESPONSIBILITIES
(Paragraph deleted)
S 2.2 Guaranteed Maximum Price Proposal and Contract Time
i 2.3 Construction Phase
i 2.4 Professional Services
S 2.5 Hazardous Materials
ARTICLE 3 OWNER'S RESPONSIBILITIES
i 3.1 Information and Services
i 3.2 Owner's Designated Representative
i 3.3 Architect
i 3A Legal Requirements
(Paragraphs deleted)
ARTICLE 5 COMPENSATION FOR CONSTRUCTION PHASE SERVICES
i 5.1 Compensation
S 5.2 Guaranteed Maximum Price
i 5.3 Changes in the Work
ARTICLE 6 COST OF THE WORK FOR CONSTRUCTION PHASE
S 6.1 Costs to Be Reimbursed
t 6.2 Costs Not to Be Reimbursed
i 6.3 Discounts, Rebatcs and Refunds
i 6A Accounting Records
ARTICLE 7 CONSTRUCTION PHASE
t 7.1 Progress Payments
i 7.2 Final Payment
ARTICLE 8 INSURANCE AND BONDS
i 8.1 Insurance Required of the Construction Managcr
i 8.2 Insurance Required of the Owner
i 8.3 Performance Bond and Payment Bond
ARTICLE 9 MISCELLANEOUS PROVISIONS
t 9.1 Dispute Resolution
S 9.2 Other Provisions
ARTICLE 10 TERMINATION OR SUSPENSION
S 10.1 Termination Prior to Establishing Guarantecd Maximum Priee
S 10.2 Termination Subsequent to Establishing Guaranteed Maximum Price
S 10.3 Suspension
ARTICLE 11 OTHER CONDITIONS AND SERVICES
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AlA Document A121 "'CMc - 2003 and AGC Document 565. Copyright @ 1991 and 2003 by The American Institute of Architects and The Associated
General Contractors of America. All rights reserved. WARNING: This document is protected by U.S. Copyright Law and International Treaties.
Unauthorized reprOduction or distribution of this document, or any portion of It, may result in severe civil and criminal penalties, end will bo
prosecuted to the maximum edent possible under the law. This document was produced by AlA soflware at 15;19:50 on 07/10/2007 under Order
No.1 000259422_. 1 which expires on 9/18/2007, and is not for resaiD.
User Notes: (1433524015)
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ARTICLE 1 GENERAL PROVISIONS
fi 1.1 RELATIONSHIP OF PARTIES
The Construction Manager accepts the relationship of trust and confidence established with the Owner by this
Agreement, and covenants with the Owner to furnish the Construction Manager's rcasonable skill and judgment and
to coopcratc with the Architect in furthering the interests of the OWner. The Construction Manager shall furnish
construction administration and management services and use the Construction Manager's best efforts to perform
the ProjCl:t in an expeditious and economical manner consistent with the interests of the Owner. The Owner shall
endeavor to promote harmony and cooperation among the Owner, Architect, Construction Manager and other
persons or entities employed by the Owner for the Projcct.
fi 1.2 GENERAL CONDITIONS
During the Construction Phase of this Project, the Construction Manager's responsibilities to the Owner shall be as
set forth in this Addendum and in the 1997 Edition of the AlA Document A20t, "General Conditions of the Contract
for Construction. The term Contractor as used in AlA Document A20 I shall mcan thc Construction Managcr.
ARTICLE 2 CONSTRUCTION MANAGER'S RESPONSIBILITIES
The Construction Manager shall perform the services described in this Articlc.
(Paragraphs deleted)
fi 2.2 GUARANTEED MAXIMUM PRICE PROPOSAL AND CONTRACT TIME
fi 2.2.1 At the end of the Bidding Phase, the Construction Manager shall propose, in writing, a guaranteed maximum
price (GMP) in the form of Amendment No.1, attached hereto. The GMP shall bc cakulated by adding: (i) the sum
of all of the awarded contracts for the Work; (ii) the Construction Manager's Reimbursable Direct Job Costs; (iii)
thc Construction Manager's Fee; and (iV) the Construction Contingcncy. The Construction Manager's fee shall be
calculated by adding the sum of all of thc awarded contracts for the Work and multiplying that sum by six percent
on thc base bid and 4.5 percent on the alternates.
The Construction Manager's Fee shall be established in accordance with Article 5, as amended.
If the proposed GMP is acceptable, the Owner shall, within tcn (10) days, approve Amendment No.1 and issue a
Notice to Proceed to the Construction Manager indicating its approval of the GMP and its decision to utilize the
Construction manager throughout the Construction Phasc of that portion of the Project.
Bids for construction work shall be formally awarded by the Construction Manager after the Construction Manager
receives the Notice to Proceed and shall be awarded on behalf of the Owner to the lowest responsible and responsive
bidder in accordance with Montana Law. Any bid for construction work for which the Construction Manager is the
lowest responsible and responsive bidder shall be awarded by the Owner to the Constmction Manager and shall
constitute a contract between the Owner and construction Manager and the Construction Manager shall be the
guarantor of such contract under the provisions of this Agreement relating to the GMP.
(Paragraphs deleted)
fi 2.2.3 The GMP shall include the Construction Contingency. The parties shall agree to the amount that will be
designated as the Construction Contingency. The purpose of the Contingency Account is to provide a means of
compensating the Construction Manager during the Construction Phase for costs which are properly reimbursable as
changc ordcrs approved by the Owner but which are not a basis for an increase in the GMP.
To effectuate a payment from the Contingency Account, the parties shall execute a change order. Any change order
to be paid from the Contingency Account shall be in the amount of the construction managcrs actual, substantiated
increase in the cost of Work caused by the change order plus the Construction Manger's fee specified in Section
5.1.1.
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AlA Document A121 Tl'CMe - 2003 and AGC Doeument 565. Copyright @ 1991 and 2003 by The American Institute of Architects and The Associated
General Contractors 01 America. All rights reserved. WARNING: This document is protected by U.S. Copyright Law and International Treaties.
Unauthorized reproduction or dlstrlbullon 01 this document, or any porllon 01 it, may result in severe civil and criminal penallles. and will be
prosecuted to the maximum extent possible under the lew. This document was produced by AlA software at 15;19;50 On 07/10/2007 under Order
No.1 000259422....1 which expires on 9/18/2007. and is not for resale.
User Notes: (1433524015)
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In the event the Owner fails or refuses to execute a change order for payment, in whole or in part, to the
Construction Manager form the Contingency Account and notwithstanding any provisions of the Contract
Documents to the contrary, the Construction manager may pursue a claim for payment from the Contingency
Account in accordance with the procedure provided AlA document A201.1997, including Article 4 and 7 thereof.
(Paragraphs deleted)
S 2.2.5 The Construction Manager shall meet with the Owner and Architect to review the Guaranteed Maximum
Price proposal and the written statement of its basis. In the event that the Owner or Architect discover any
inconsistencies or inaccuracies in the information presented, they shall promptly notify the Construction Manager,
who shall make appropriatc adjustments to the Guaranteed Maximum Price proposal, its basis, or both.
S 2.2.6 Unless the Owner accepts the Guaranteed Maximum Price proposal in writing on or before the date specitied
in the proposal for such acceptance and so notifies the Construction Manager, the Guaranteed Maximum Price
proposal shall not be effective without written acceptance by the Construction Manager.
S 2.2.7 Prior to the Owner's acceptance of the Construction Manager's Guaranteed Maximum Price proposal and
issuance of a Notice to Proceed, the Construction Manager shall not incur any cost to be reimbursed as part of the
Cost of the Work, except as thc Owner may specifically authorize in writing.
S 2.2.8 Upon acceptance by the Owner of the Guaranteed Maximum Price proposal, the Guaranteed Maximum Price
and its basis shall be set forth in Amendment No. I. The Guaranteed Maximum Price shall be subject to additions
and deductions by a change in the Work as provided in the Contract Documents, and the Date of Substantial
Completion shall be subject to adjustment as provided in the Contract Documents.
S 2.2.9 The Owner shall authorize and cause the Architect to revise the Drawings and Specifications to the extent
necessary to reflect the agreed-upon assumptions and clarifications contained in Amendment No. I. Such revised
Drawings and Specifications shall be furnished to the Construction Manager in accordance with schedules agreed to
by the Owner, Architect and Constmction Manager. The Construction Manager shall promptly notify the Architect
and Owner if such revised Drawings and Specifications are inconsistent with the agreed-upon assumptions and
clarifications.
g 2.2.10 The Guaranteed Maximum Price shall include in the Cost of the Work only those taxes which are enacted at
the time the Guaranteed Maximum Price is established.
S 2.2.11 If, ufter executing Amendment No.1, the parties agree to change the total sum of the GMP, both parties
shall sign a new, sequentially numbered, amendment in the form of Amendment No.1, evidencing their agreement
to change the total sum of the GMP. The GMP shull be amended only in the event of a Change in the Scope of
Work. and any amendment to the GMP shall be limited to the actual, substantiated increase or decrease in the Cost
of Work caused thereby plus or minus the Construction Manager's fee specitied in Section 5.1.1.
.1 A Change in Scope means a change to the Project that is initiated, requested or approved by the
Owner and (a) involves a change to a design, schedule or procurement previously approved by the
Owner; or (b) expands, enlarges or diminishes the Scope of the Work and the nature. quantity,
scope or quality of the Constmetion Manager's work and services; or (c) is approved by the
Owner in writing as a Change in Scope. A Change in Scope may result in an increase or decrease
to the GMP, an increase or decrease to the Project's Contract Time or a combination of the two.
.2 To effectuate a Change in Scope. either the Owner may initiate the Change or the Construction
Manager shall notify the Owner and Architect in Writing if it believes it is entitled
(a) to an increase in the GMP, or
(b) to an extension in the Contract Time, or
(c) to a combination of the two.
.3 The Construction Manager's failure to provide the Owner with written notice of a proposed
change in Scope within the 30 calendar days of the event giving rise to the Construction Manager's claim shall mean
that the Construction manager has waived any claim arising therefrom and the Construction Manager shall perform
Init.
AlA Document A121TMCMc - 2003 and AGC Document 565. Copyright @ 1991 and 2003 by The American Institute of Architects and The Associated
General Contractors of America. All rights reallrved. WARNING: This document Is protected by U.S. Copyright Lew and Internallonal Trealles.
Unauthori~ed reproducllon or dislrlbullon of this document, or any pOrllon 01 it. may result in severe civil and criminal penalties, and will be
prosecuted 10 the maximum ex lent possible under Ihe law. This document was produced by AlA software aI15:19:50 on 07/10/2007 under Order
No.l000259422~1 which expires on 9/18/2007, and is not for resaie.
User Noles: (1433524015)
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all work associated with the alleged Change in Scope at issue without an increase in the OMp or the Contract time,
and without use of the construction contingency Account.
~ 2.2.12 Within 30 calendar days of receiving the construction Manager's notice as provided in Section 2.2.11 or
after receiving the Construction Manager's comments, recommendations or alternatives as provided in Section
2.2.12, whichever is later, the Owner shall exercise one of the following options:
(a) agree with the Construction Manager's request to increase the OMp or the Contract Time, or both, as
requested in the Construction Manager's written notice; or
(b) accept only a portion of the Construction Manager's request to increase the GMP or the Contract Time
or both; or
(c) reject the Construction Manager's request for an increase to the GMP and the Contract Time or both
and direct the Construction Manager to proceed with the Work
In the event the Owner refuses to agree with the Construction Manager's request to increase the OMP or the
Contract Time, or both, in whole or in part, and notwithstanding any provision of the Contract Documents to the
contrary, the Construction Munager may pursue a claim for an increase in the OMp or the
Contract time, or both in accordance with the procedure provided AlA Document A20I-1997,
including Articles 4 and 7 thereof.
~ 2.3 CONSTRUCTION PHASE
~ 2.3,1 GENERAL
fi 2.3.1.1 The Construction Phase
(Paragraphs deleted)
with respect to any portion of the Project shall commence no later than the date of the issuance of the Notice to
Proceed.
fi 2.3,1.2 During the Construction Phase of any portion of the Project, the Construction Manager's obligations to the
Owner, in addition to those set forth herein, shall generally be as set forth in AlA Document A20l, and shall
specifically include the performance of general and comprehensive oversight of the Project on behalf of the Owner.
The Construction Manager shall, on behalf of the Owner, enter into contracts with Subcontractors that shall be
subject to AlA Document A20 I, as agreed upon by the Owner, Architect and Construction Manager. Such
documents shall become part of the Contract Documents governing the Work.
~ 2.3,1,2.1 The Construction Manager shall, on behalf of the Owner, enter into contracts in accordance with
Paragraph 2.2.1 above for the performance of the Work with all successful, responsive, and responsible bidders in
the competitive bidding process conducted by the Owner. In accordance with Section 2.2.1, the Owner will enter
into the contracts for specific work with the Construction Manager where the Construction Manager is the lowest
bidder. All such direct contracts with the Construction Manager are guaranteed by the Constmction Manager's
OMP and shall be treated in the same fashion as other subcontracts for all purposes except as otherwise noted herein
or expressly stated in the contracts themselves.
~ 2.3.1.2.2 The Construction Manager shall be directly obligated to the Owner for the administration and
performance of the Work under all of the contracts referenced in Subparagraph 2.3.1.2.1.
~ 2,3.1.2.3 The Construction Manager may undertake construction work with the Construction Manager's own forces
only under the following conditions: (I) such work is publicly bid according to the invitations to bid and
requiremcnts of state law; (2) the Construction Manager is the lowest responsive and responsible bidder for the work
as confirmed by the Architect and Owner.
~ 2,3.2 ADMINISTRATION
~ 2,3.2,1 Those portions of the Work that the Construction Manager does not customarily perform with the
Construction Manager's own personnel shall be performed under subcontracts or by other appropriate agreements
Inft.
AlA Document A1 21 ""CMc - 2003 and AGC Document 565. Copyright @ 1991 and 2003 by The American Inslilute of Architects and The Associated
General Contraclors of America. All rights reserved. WARNING: This document Is protected by U.S. Copyright Law and International Treaties.
Unauthorized reproduction or distributlon of this document, or any portion of It, may result in severe civil and criminal penalties, and will be
prosecuted to the maximum extent possible under the taw. This document was produced by AlA soltware at 15:19:50 en 07/10/2007 under Order
No.1 000259422_1 which expires on 9/16/2007, and is nOllor resale.
User Notes: (1433524015)
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with the Construction Manager. The Construction Manager shall obtain bids from Subcontractors and from suppliers
of materials or equipment fabricated to a special design for the Work from the list previously reviewed and, after
analyzing such bids, shall deliver such bids to the Owner and Architect. The Owner will determine, with the advice
of the Construction Manager, which bids will be accepted; provided however, the Construction Manager, at its sole
discretion, may rcquire that any bidder provide full performance and payments bonds as a condition precedent to
any work being awarded to such bidder. Thc Owner may designate specitic persons or entities from whom the
Construction Manager shall obtain bids; however, if the Guaranteed Maximum Price has been established, the
Owner may not prohibit the Construction Manager from obtaining bids from other qualified bidders. The
Construction Manager shall not be required to contract with anyone to whom the Construction Manager has
reasonable objection.
i 2.3.2.2 If thc Guaranteed Maximum Price has been established and a specific bidder among those whose bids arc
delivered by the Construction Manager to the Owner and Architect (I) is recommended to the Owner by the
Construction Manager; (2) is qualified to perform that portion of the Work; and (3) has submitted a bid which
conforms to the requirements of the Contract Documents without reservations or exceptions, but the Owner requires
that another bid be accepted, then the Construction Manager may require that a change in the Work be issued to
adjust the Contract Time and the Guaranteed Maximum Price by the difference between the bid of the person or
cntity recommended to the Owner by the Construction Manager and the amount of the subcontract or other
agreement actually signed with the person or entity designated by the Owner.
i 2.3.2.3 Subcontracts and agreements with suppliers furnishing material or equipment fabricated to a special design
shall conform to the payment provisions of Subparagraphs 7.1.8 and 7.1.9.
i 2.3.2A The Construction Manager shall schedule and conduct meetings at which the Owner, Architect,
Construction Manager and appropriate Subcontractors can discuss the status of the Work. The Construction
Manager shall prepare and promptly distribute meeting minutes.
i 2.3.2.5 The Construction Manager shall prepare a schedule in accordance with Paragraph 3.10 of AlA Document
A201, including the Owner's occupancy requirements.
i 2.3.2.6 The Construction Manager shall record the progress of the Project and shall submit monthly written
progress reports to the Owner and Architect including information on each Subcontractor's Work, as wcll as the
entire Project, showing percentages of completion. The Construction Manager shall keep a daily log containing a
record of weather, each Subcontractor's Work on site, number of workers, identitication of equipment, Work
accomplished, problems encountered, and other similar data as the Owner may require. The log shall be available to
the Owner and Architect.
i 2.3.2.7 The Construction Manager shall develop a system of cost control for the Work, including rcgular
monitoring of actual costs for activities in progress and estimatcs for uncompleted tasks and proposed changes. The
Construction Manager shall identify variances between actual and estimated costs and report the variances to the
Owner and Architect at regular intervals.
S 2.3.2.8 The Construction Manager shall, on behalf of the Owner, execute and enter into all contracts with
Subcontractors and shall ensure that the contracts contain all provisions required by law, including, but not limited
to, compliance with provisions addressing prevailing wages (~ 18.2.403, 422,MCA); Montana residential
preferences (~ 18-2-403, MCA), nondiscrimination (~ 49~3-207, MeA). and maintenance of records requirements
(* 18-2-406 and 422, MeA, as amended). )See generally Article 2.1.10(11) above).
The Construction Manager will conform to the provisions of ~ 15-50-206, MCA, requiring the withholding of I % of
all payments due the Subcontractors. Por each contract, the Construction Manager will file the necessary forms,
including the form PC-I and relatcd forms, with the Montana Department of Revenue containing the information set
forth in ARM 42.31.2121, withing I 0 days of the award of the contract. The Construction Manager will copy the
Owner with all filings and transmittals made with or to the Department of Revenue in fulfillment of its obligations
under this provision.
i 2.3.2.9 Utilizing the constmction schedules provided by the various Subcontractors, the Construction Manager
shall update the Project construction schedulc incorporating the activities of the Subcontractors on the Project.
In It.
AlA Document A12FMCMc - 2003 and AGe Document 565. Copyright crJ 1991 and 2003 by The American Institute of Architects and The Associated
General Contractors of America. All rights reserved. WARNING: This document is protected by U.S. Copyright Law and Inlernallonal Trllaties.
Unaulhorized reproduction or distribution of this document, or any porlion of it, may result In severe civil and criminal penalties, and will be
proseculed 10 Ihe maximum extent possible under Ihe law. This document was produced by AlA software at 15:19:50 on 07/10/2007 under Order
No.1000259422_1 which expires on 9/16/2007, and is not for resale.
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including activity sequences and durations, allocation of labor and materials, and delivery of products requiring
long-lead time and procurement. The Construction Manager shall maintain Shop Drawings, Product Data and
Samples and other submittal material from the Subcontractors in a separate tabular schedule. The Project
construction schedule shall include the Owner's occupancy requirements showing portions of the Project having
occupancy priority. The Construction Manager shall update and reissue the Project Construction schedule as
required to show current conditions. If an update indicates that the previously approved Project construction
schedule may not be met, the Construction Manager shaH recommend corrective action to the Owner and Architect.
i 2.3,2.10 Consistent with the various bidding documents and utilizing information from the Subcontractors, the
Construction Manager shall coordinate the seqllence of construction and the assigning of space in areas where the
Subcontractors are performing Work.
i 2.3.2.11 The Construction Manager shall determine in general that the Work of each Subcontractor is bdng
performed in accordance with the requirements of the Contract Documents to guard the Owner against defects and
deficiencies in the Work. As appropriate, the construction Manager shaH have the authority, upon written
authorization from the Owner, to require additional inspection or testing of the Work in accordance with the
provisions of the Contract Documents, whethcr or not such Work is fabricated, installed or completed. The
Construction Manager, in consultation with the Architect, may reject Work that does not conform to the
requirements of the Contract Documents.
g 2.3.2.12 The Construction Manager shall schedule and coordinate the sequcnce of construction in accordance with
the Contract Documents and the latest approved Project construction schedule, as weH as schedule and coordinate
any outside inspections required by law so as to avoid unnecessary delays.
g 2.3.2.13 The Construction Manager shall arrange for the delivery, storage, protection and security of Owner
purchased materials, systems and equipment that are part of the Project until such items are incorporated into the
Project, if such materials, systems and equipment are identificd in the plans and specifications.
i 2.3.2.14 The Construction Manager shall review requests for changes, assist in negotiating the Subcontractor's
proposals, submit recommendations to the Architect and Owner and, if incorporate the Architect's moditications to
the Documents.
i 2.3.2,15 In collaboration with thc Architect, the Construction Manager shall establish and implement procedures
for expediting the processing and approval of Shop Drawings, Product Data, Samplcs and other submittals. The
Construction Manager shall review all shop Drawings, Product Data, Samples and other submittals from thc
Subcontractors. The Construction Managcr shall coordinate submittals with information contained in related
documents and simultaneously transmit to the Architect and Owner those that have been approvcd by the
Construction Manager. The Construction Manager's actions shall be taken with such reasonable promptness as to
cause no delay in the Work or in the acti vi ties of the Owner or Subcontractors.
~ 2.3.2.16 The Construction Manager shall maintain at the Project site for the Owner one record copy of all
Contracts, Drawings, Specifications, addenda, Change Orders and other Modifications, in good order and marked
currently to record changes and selections made during construction, and in addition, approved Shop Drawings,
Product Data, Samples and similar required submittals. The Construction Manager shall maintain records, in
duplicate. of principal building layout lines, elevations of the bottom of the footing, floor levels and key site
elevations certified by a qualified surveyor or professional engineer. The Construction Manager shall make all such
records and record Drawings available to the Architect and upon completion of the Project shall deliver them to the
Owner.
i 2.3.2.17 With the Architect and the Owner's Maintenance personnel, the Construction Manager shall conduct the
final testing and start-up utilities, operating systems and equipment.
i 2.3.2.18 When the Construction Manager considers cllch Subcontractor's Work or designated portion thereof
substantially complete, the Construction Manager shall notify the Architect. The Construction Manager shall assist
AlA Document A121TMCMc - 2003 and AGe Document 565. Copyright @ 1991 and 2003 by The American Inslitule 01 Architocts and The Associated
General Contractors of America. All rights reserved. WARNING: This dooument is protected by U.S. Copyrlghl Law and International Treaties.
Unauthorized reproduclion Or distribution of this document, or any portion of it, may result in severe civil and oriminal penalties, and will be
prosecuted to the maximum extent possible under the law. This document was produced by AlA software at 15:19:50 on 07/10/2007 under Order
NO.1 000259422___1 which expires on 9/18/2007. and is not tor resale.
User Notes: (1433524015)
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the Architect in conducting inspections to determine whether the Work or designated portion thereof is substantially
complete.
S 2.3.2.19 The Construction Manager shall coordinate and administer any required correction and completion of the
Work or a designated portion thereof, the Construction Manager shall evaluate the completion of the Work of the
Subcontractors and make recommendations to the Architect when work is ready for final inspection. The
Construction Manager shall assist the Architect in making final inspections.
i 2.3.2.20 The Construction Manager shall. accompanied by the Architect and a representative of the Owner, make
thc following inspections per agreed dates on thc Schedule. "Substantial Completion" - to determine that building
systems are operational but not necessarily balanced, flooring is installed and walls painted, that all furnishings and
other material will be able to be staged in classrooms and offices. "Balance. - to determine that all building systems
will be balanced, all trim and cabinetry will be installed. the spaces will be completed and ready for staged materials
to be unpacked and the rooms put into use, the gymnasium will be completed and all outside hard surfaces will be
fully completed. "Final" - to determine that all outside landscaping shall be completed and all punch list items for
minor adjustments and repairs shall be completed. "Warranty" - such inspection shall be made approximately eleven
months after Substantial completion and acceptance of the work. These inspections may be at different times for
different portions of the work. The Construction Manager shall assist the Architect in determining whether the
Work has been completed in accordance with the Contract Documents and shall assist the Architect in endeavoring
to see that any remedial work found to be necessary is performed in a satisfactory and workmanlike manner by the
Subcontractor responsible for the same.
i 2.3.2.21 The Construction Manager shall secure and transmit to the Architect all warranties and similar submittals
required by the Contract Documents for delivery to the Owner and deliver all keys, manuals, record drawings and
maintenance stocks to the Owner. The Construction Manager shall forward to the Architect a final Project
Application for Payment upon compliance with the requirements of the contract documents.
S 2.4 PROFESSIONAL SERVICES
Section 3.12.10 of A20 FM-1997 shall apply to both the Preconstruction and Construction Phases.
~ 2.5 HAZARDOUS MATERIALS
Section 10.3 of A20 I T~L 1997 shall apply to both the Preconstruction and Construction Phases. Except as otherwise
provided, the Owner, Construction Manager and Architect shall then proceed in the manner described in article 10
of AlA Documcnt A20 I. The Owner shall be responsible for ohtaining the services of a licensed laboratory to
verify the presence or absence of the material or substance reported by the Construction Manager and, in the event
such material or suhstance is found to he present, to verify that it has been rendered harmless. The Construction
Manager shall assist the Owner in procuring the services of persons or entities to perform tests verifying the
presence or absence of such material or substance or to perform the task of removal or safe containment of such
material or substance.
ARTICLE 3 OWNER'S RESPONSIBiliTIES
S 3.1 INFORMATION AND SERVICES
S 3.1.1 The Owner shall provide full information in a timely manner regarding the requirements of the Project,
including a program which sets forth the Owner's objectives, constraints and criteria, including space requirements
and relationships, flexibility and expandability requirements, special equipment and systems, and site requirements.
g 3.1.2 The Owner shall, at the written request of the Construction Manager prior to commencement of the
Construction Phase and thereafter, furnish to the Construction Manager reasonable evidence that financial
arrangements have been made to fulfill the Owner's obligations under the Contract. Furnishing of such evidence
shall be a condition precedent to commencement or continuation of the Work. After such evidence has been
furnished, the Owner shall not materially vary such tinancial arrangements without prior notice to the Construction
Manager.
S 3.1.3 The Owner shall establish and update an overall budget for the Project, based on consultation with the
Construction Manager and Architect, which shall include contingencies for changes in toe Work and other costs
which are the responsibility of the Owner.
AlA Document A121 TMCMc - 2003 and AGC Document 565. Copyright @ 1991 and 2003 by The American Institute of Architects and The Associated
General Contractors of America. All rights reserved. WARNING: This document Is protected by U.S. Copyright Law and International Trealles.
Unauthorized reproducllon or distribution of this document, or any portion of It, may result In severe clvll and criminal penalties, and will be
prosecuted to the maximum extent possible under the law. This document was produced by AlA software at 15:19:50 on 0711 0/2007 under Order
No.' 000259422.J which expires on 9/18/2007. and is not for resale.
User Notes: (1433524015)
8
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~ 3.1.4 STRUCTURAL AND ENVIRONMENTAL TESTS, SURVEYS AND REPORTS
In the Preconstruction Phase, the Owner shall furnish the following with reasonable promptness and at the Owner's
expense. Except to the extent that the Construction Manager knows of any inaccuracy, the Construction Manager
shall be entitled to rely upon the accuracy of any such information, reports, surveys, drawings and tests described in
Sections 3.1.4.1 through 3.1.4.4 but shall exercise customary precautions relating to the performance ofthc Work.
~ 3.1.4.1 Reports, surveys, drawings and tests concerning the conditions of the site which are required by law.
~ 3.1.4.2 Surveys describing physical characteristics, legal limitations and utility locations for the site of the Project,
and a written legal description of the site. The surveys and legal information shall include, as applicable, grades and
lines of street~, alleys, pavements and adjoining property and structures; adjacent drainage; rights-of-way,
restrictions, casements, encroachments, zoning, deed restrictions, boundaries and contours of the site; locations,
dimensions and necessary data pertaining to existing buildings, other improvements and trees; and information
concerning available utility services and lines, both public and private, above and below grade, induding inverts and
depths. All information on the survey shall be referenced to a project benchmark.
~ 3.1.4.3 The services of a geotechnical engineer when such services are requested by the Construction Manager.
Such services may include but are not limited to test borings, test pits. determinations of soil bearing values,
percolation tests, evaluations of hazardous materials, ground corrosion and resistivity tests, including necessary
operations for anticipating subsoil conditions, with reports and appropriate professional recommendations.
~ 3.1.4.4 Structural, mechanical, chemical, air and water pollution tests, tests for hazardous materials, and other
laboratory and environmental tests, inspections and reports which are required by law.
~ 3.1.4.5 The services of other consultants when such services are reasonably required by the scope of the Project and
are requested by the Construction Manager.
~ 3.2 OWNER'S DESIGNATED REPRESENTATIVE
The Owner shall designate in writing a representative who shall have express authority to bind the Owner with
respect to all matters requiring the Owner's approval or authorization. This representative shall have the authority to
make decisions on behalf of the Owner concerning estimates and schedules, construction budgets, and changes in
the Work, and shall rcndcr such decisions promptly and furnish information expeditiously, so as to avoid
unreasonable delay in the services or Work of the Construction Manager. Except as otherwise provided in Section
4.2.1 of A20I™-1997, the Architect does not have such authority.
~ 3.3 ARCHITECT
The Owner shall retain an Architect to provide Basic Services, including normal structural, mechanical and
electrical engineering services, other than cost estimating services, described in the edition of AIA@ Document
B 151 nL 1997, Abbreviated Standard Form (~f Agreement Between Owner and Architect current as of the date of
this Agreement. The Owner shall authorize and cause the Architect to provide those Additional Services described
in B 151 TM-1997, requested by the Construction Manager which must necessarily be provided by the Architect for
the Preconstruction and Constmction Phases of the Work. Such services shall be provided in accordance with time
schedules agreed to by the Owner, Architect and Construction Manager. Upon request of the Construction Manager,
the Owner shall furnish to the Construction Manager a copy of the Owner's Agreement with the Architect, from
which compensation provisions may be deleted.
~ 3.4 LEGAL REQUIREMENTS
The Owner shall determine and advise the Architect and Constmetion Manager of any special legal requiremcnts
rdating specifically to the Project which differ from those generally applicable to construction in the jurisdiction of
the Project. The Owner shall furnish such legal services as are necessary to provide the information and services
required under Section 3.1.
AlA Document A 121 ""CMc - 2003 and AGC Document 565. Copyright @ 1991 and 2003 by The American Institute of Architects and Tho Associated
General Contractors of America. All rights reserved. WARNING: This document is protected by U.S. Copyright Law and International Treaties.
Unauthorized reproduction or distribution of this document, or any portion of ii, may result in severe civil and criminal penallias, and will be
prosecuted to the milxlmum extent possible under the Iilw. This documont was producod by AlA software at 15:19;50 on 07/10/2007 under Order
No. 1000259422_1 Which expires on 9/18/2007, and Is not for resale.
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Inlt.
(Paragraphs deleted)
ARTICLE 5 COMPENSATION FOR CONSTRUCTION PHASE SERVICES
The Owner shall compensate the Construction Manager for Construction Phase services as follows;
f 5.1 COMPENSATION
f 5.1.1 For the Construction Manager's
(Paragraphs deleted)
services during the Construction Phase, the Construction Manager's Fee shall be 6.0 percent on the base bid and 4.5
percent on the alternates ofthe sum of all of the awarded contracts for the Work.
The Owner shall in no event be obligated to the Construction Manager for more than the amount set forth in this
Subparagraph 5.1.1 for Construction Phase fees in connection with this Project. Notwithstanding any other
provisions in the Contract Documents, the basis for computing the Construction Manager's compensation under this
paragraph shall specifically not include any increased contract sums necessitated by changes in the work, increased
costs, or costs approved for any other reason, except as provided by Sections 2.2.11 and 2.2.12.
~ 5.2 GUARANTEED MAXIMUM PRICE
f 5,2.1 The sum of the Cost of the Work as defined in Subparagraph 6.1.1 below, together with the Construction
Manager's Fee, is guaranteed by the Construction Manager not to exceed the Guaranteed Maximum Price provided
in amendment No.1 or any sequentially numbered Amendment, subject only to additions approved in accordance
with this Agreement and the General Conditions made a part hereof. Such maximum sum as adjusted by approved
changes in the work is referred to herein as the adjusted Guaranteed Maximum Price. Any costs or expenses that
cause the adjusted Guaranteed maximum Price to be exceeded shall be the sole responsibility of and paid by the
Construction Manager without reimbursement by the owner except as provided in Section 2.2.1 J and 2.2.12.
(Paragraphs deleted)
~ 5.3 CHANGES IN THE WORK
~ 5.3.1 Adjustments to the Guaranteed Maximum Price on account of changes in the Work subscquent to the
execution of Amendment No. I may be determined by any of the methods listed in Section 7.3.3 of A201 nL1997.
f 5.3.21n calculating adjustments to Subcontracts, the terms "cost" and "fee" as used in Subparagraph 7.3.3.3 of AlA
Document A20 I and the terms "cost' and "a reasonable allowance for overhead and profit" as used in Subparagraph
7.3.6 pf AlA Document A20l shall have the meanings assigned to them in that document and shall not be increased
based on changes to the work except as specifically provided in Section 5.1.1, 2.2.11 and 2.2.12, where the Owner
requcsts material changes which arc outside the scope of the Project.
(Paragraphs deleted)
ARTICLE 6 COST OF THE WORK FOR CONSTRUCTION PHASE
~ 6.1 COSTS TO BE REIMBURSED
~ 6.1.1 The term "Cost of the Work" shall mean the aggregate total of all Subcontracts competitively solicited and
awarded for construction work in connection with the Project, induding any contracts competitively solicited and
awarded to the Construction Manager for construction work in connection with the Project, Construction
Contingency Account and Reimbursable Direct Job Costs defined in Amendment L In the event inconsistency
between any Contract Document and Amendment I, Amendment I shall govern.
(Paragraphs deleted)
Init.
AlA Documenl A121 T~CMc _ 2003 and AGC Documenl565. Copyright @ 1991 and 2003 by The American Institute of Architects and The Associated
General Contractors of Amollca. All rlghlS reserved. WARNlHG: Thl$ document Isprotecled by U.S. Copyrlghllaw llnd Intemolional frBllties.
Uwrulhorlmd teprOduetion at dl$lrllMlliDn 01 thill documenl. .or any portion 0111, milY resull in sanr. clv\l and crimlnalpenallles, and will ~
prosecuted to the maximum extent possiDle under Ihe law. This document was produced by AlA software at 15:19:50 on 0711 0/2007 under Order
NO.1 000259422._1 which explros on 9/18/2007, and i$ not for resalo.
Us..r Not..lI: (1433524015)
10
(Table deleted)
(Paragraphs deleted)
A 6.2 COSTS NOT TO BE REIMBURSED
(Paragraphs deleted)
A 6.3 DISCOUNTS, REBATES AND REFUNDS
A 6.3.1 Cash discounts obtained on paymcnts made by the Construction Manager shall accrue to the Owner if (I)
before making the payment, the Construction Manager included them in an Application for Payment and receivcd
payment therefor from the Owner, or (2) the Owner has deposited funds with the Construction Manager with which
to make payments; otherwise, cash discounts shall accrue to the Construction Manager. Trade discounts, rebates,
refunds and amounts received from sales of surplus materials and equipment shall accrue to the OWncr, and the
Construction Manager shall make provisions so that they can be secured.
A 6.3.2 Amounts which accrue to the Owner in accordance with the provisions of Section 6.3.1 shall be credited to
the Owner as a deduction from the Cost of the Work.
g 6.4 ACCOUNTING RECORDS
A 6.4.1 The Construction Manager shall keep full and detailed accounts and exercise such controls as may be
necessary for proper tlnancial management under this Contract; the accounting and control systems shall be
satisfactory to the Owner. The Construction Manager shall maintain records for all subcontracts, change orders and
scope of Work changes rcsulting from all Subcontractors. The Owner and the Owner's accountants shall be
afforded access to the Construction Manager's records, books, correspondence, instructions, drawings, rcceipts,
subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project, and the Construction
Manager shall preserve these for a period of three years after final payment, or for such longer period as may be
requircd by law.
ARTICLE 7 CONSTRUCTION PHASE
g 7.1 PROGRESS PAYMENTS
g 7.1.1 Based upon Applications for Payment submitted to the Architect by the Construction Manager and
Certificates for Payment issued by the Architect, the Owner shall make progress payments to the Construction
Manager as provided below and elsewhere in the Contract Documents.
A 7.1.2 The period covered by each Application for Payment shall be one calendar month cnding un the last day of
the month, or as follows:
~ 7.1,3 Progress Paymcnts are due and payable pursuant to * 28-2-2101 et seq., MCA, which provides, in part, that a
contractor's request for payment is considered approved by the Owner 21 days after receipt of the request by the
Owner or the person designated in the contract by the Owner to receive the payment request unless, prior to that
time, the Owner provides the contractor with a written statement containing specific items in the request for
payment that are being disapproved by the Owner. If the Owner approves all or a portion of a contractor's request
for payment as provided in the statute, the Owner shall pay the contractor the approved amount within 7 days after
contractor's request for payment is approved.
g 7.1,4 With each Application for Payment, the Constl'Uetion Manager shall submit payrolls, petty cash accounts,
receipted invoices or invoices with check vouchers attached and any other evidence required by the Owner or
Architect to demonstrate that cash disbursements already made by the Construction Manager on account of the Cost
of the Work cqual or exceed (I) progress payments already received by the Construction Manager; less (2) that
portion of those payments attributable to the Construction Manager's Fcc; plus (3) payrolls for the period covered by
the present Application for Payment.
~ 7.1.5 Each Application for Payment shall be based upon the most recent schedule of values submitted by the
Construction Manager in accordance with the Contract Documents. The schedule of values shall allocate the entire
Guaranteed Maximum Pricc among the various portions of the Work, except that the Construction Manager's Fee
shall be shown as a single separate item. The schedule of values shall be prepared in such form and supported by
AlA Document A121 'MCMc - 2003 and AGe Document 565. Copyright @ 1991 and 2003 by The American Institute of Architects and The Associated
General Contractors of America. All rights reserved. WARNING; This document is protected by U.S. Copyright Law and International Treaties.
Unauthorl2ed reproduction or distribution of this document, or any portion of it, may result In severe civil and criminal penalties, and will be
prosecuted to the maximum extent possible under the law. This document was produced by AlA soltware at 15;19:50 on 07/10/2007 under Order
No_1000259422____1 which expires on 9/18/2007, and is not for resale.
User Notes: (14335240 t 5)
11
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such data to substantiate its accuracy as the Architect may require. This schedule, unless objected to by the
Architect, shall be used as a basis for reviewing the Construction Manager's Applications for Payment.
t 7.1.6 Applications for Payment shall show the percentage completion of each portion of the Work as of the end of
the period covered by the Application for Payment. The percentage completion shall be the lesser of (I) the
percentHge of that portion of the Work which has actually been completed or (2) the percentage obtained by dividing
(a) the expense which has actually been incurred by the Construction Manager on account of that portion of the
Work for which the Construction Manager has made or intends to make actual payment prior to the next Application
for Payment by (b) the share of the Guaranteed Maximum Price allocated to that portion of the Work in the schedule
of values.
t 7.1.7 Subject to other provisions of the Contract Documents, the amount of each progress payment shall be
computed as follows:
.1 Take that portion of the Guaranteed Maximum Price properly allocable to completed Work as
determined by multiplying the percentage completion of each portion of the Work by the share of the
Guaranteed Maximum Price allocated to that portion of the Work in the schedule of values. Pending
final determination of cost to the Owner of changes in the Work, amounts not in dispute may be
included as provided in Section 7.3.8 of A201nL1997, even though the Guaranteed Maximum Price
has not yet been adjusted by Change Order.
.2 Add that portion of the Guaranteed Maximum Price properly allocable to materials and equipment
delivered and suitably stored at the site for subsequent incorporation in the Work or, if approved in
advance by the Owner, suitably stored off the site at a location agreed upon in writing.
.3 Add the Construction Manager's Fee, less retainage of rive percent ( 5.00% ). The Construction
Manager's Fee shall be computed upon the Cost of the Work described in the two preceding Sections
at the rate stated in Section 5.1.1 or, if the Construction Manager's Fee is stated as a fixed sum in that
Section, shall be an amount which bears the same ratio to that fixed-sum Fee as the Cost of the Work
in the two preceding Sections bears to a reasonable estimate of the probable Cost of the Work upon
its completion.
.4 Subtract the aggregate of previous payments made by the Owner.
.5 Subtract the shortfall, if any, indicated by the Construction Manager in the documentation required by
Section 7.1.4 to substantiate prior Applications for Payment, or resulting from errors subsequently
discovered by the Owner's accountants in such documentation.
.6 Subtract amounts, if any, for which the Architect has withheld or nullitlcd a Certificate for Payment
as provided in Section 9.5 of A20 ITM.-I 997.
S 7.1.8 After the words "retainage of' in the tirst sentence of Subparagraph 7.1.7.3, insert the words "tive percent
(5%)". All retainage amounts under this provision shall be placed in an interest-bearing account by the Owner in the
name of both parties in accordance with Montana law. The interest from that account shall be payable to the
Construction Manager as it is accrued. The payment of the escrow account shall be made to the Construction
Manager simultaneously with the final payment, less only such amount as may reasonable be necessary to correct
any identified deficiency in the Work in accordance with Sections 28-2-2101, et seq, of the Montana Code
Annotated.
Except with the Owner's prior approval, payments to Subcontractors shall be subject to retention of not less than
five percent (5%).
S 7.1.9 Except with the Owner's prior approval, the Construction Manager shall not make advance payments to
suppliers for materials or equipment which have not been delivered and stored at the site.
S 7.1.10 In taking action on the Construction Manager's Applications for Payment, the Architect shall be entitled to
rely on the accuracy and completeness of the information furnished by the Construction Manager and shall not be
deemed to represent that the Architect has made a detailed examination, audit or arithmetic verification of the
documentation submitted in accordance with Section 7.1.4 or other supporting data, that the Architect has made
exhaustive or continuous on-site inspections or that the Architect has made examinations to ascertain how or for
what purposes the Construction Manager has used amounts previously paid on account of the Contract. Such
examinations, audits and verifications, if required by the Owner, will be performed by the Owner's accountants
acting in the sole interest of the Owner.
Inlt.
AlA Docum$nt A121"'CMc - 2003 and AGe Document 565. Copyright @ 1991 and 2003 by The American Institute of Architects and The Associated
General Contractors of America. All rights reserved. WARNING: This document is protected by U.S. Copyright Law and International Treaties.
Unauthorl:l:ed reproduction or distribution of this dOCUment, or any portion of it, may result in severe civil and criminal penalties, and will be
prosecuted to the maximum extant possible under the law. This document was produced by AlA soflwara at 15:19:50 on 07/10/2007 undor Order
No.l000259422__1 which expires on 9/18/2007, and is not for resale.
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~ 7.1.11 The Construction Manager shall develop and implement procedures for the timely review and processing of
application for payment by Subcontractors for progress and final payments.
~ 7.1.12 Based on the Construction Manager's observations and evaluations of each Subcontractor's application for
payment, the Construction Manager shall review and certify the amounts due the respective Subcontractors and shall
incorporate such certified amounts due the respective Subcontractors and shall incorporate such certitied amounts
into the Application for Payment developed under Subparagraph 7.1.5 above.
~ 7.1.13 The Construction Manager's certification for payment shall constitute a representation to the Owner, based
on the Construction Manager's determinations at the site and on the data comprising the Subcontractor's
applications for payment, that, to the best of the Construction Managers knowledge, information and belief, the
Work has progressed to the point indicated and the quality of Work is in accordance with the Contract Documents.
The foregoing representations arc subject to an evaluation of the Work for conformance with the Contract
Documents upon Substantial Completion, to results of subsequent tests and inspections, to minor deviations from
the Contract Documents correctable prior to completion and to specific qualifications expressed by the Constmction
Managcr in writing. The issuance of a Certificate for Payment shall further constitute a representation that the
various Subcontractors arc entitled to payment in the amount certified.
~ 7,2 FINAL PAYMENT
~ 7.2.1 Except as may otherwise be provided herein, final payment shall be made by the Owner to the Construction
Manager when (1) this Agreement has been fully performed by the Construction Manager and all Work completed
by the Subcontractors, except for thcir respective responsibilities to (a) correct nonconforming Work as provided in
ALA Document A20 1 and (b) satisfy other requirements, if any, which necessarily survive final payment; (2)
(2) a 11nnl Application for Payment and a final accounting for the Cost of the Work have been submitted by the
Construction Manager and reviewed by the Owner and/or its accountants; and (3) a final Certificate for Paymcnt has
then been issued by the
(Paragraphs deleted)
Architect. Such final payment shall be made pursuant to ~ 28-2-2101 et seq., MCA.
~ 7.2.2 The amount of the final payment shall be calculated as follows:
.1 Take the sum of the Cost of the Work substantiated by the Construction Manager's final accounting
and the Construction Manager's Fee, but not more than the Guaranteed Maximum Pricc.
.2 Subtract amounts, if any, for which the Architect withholds, in whole or in part, a final Certificate for
Paymcllt as provided in Section 9.5.1 of A201™-1997 or other provisions of the Contract
Documents.
.3 Subtract the aggregate of previous payments made by the Owner.
If the aggrcgatc of previous payments made by the Owner exceeds the amount due the Construction Manager, the
Construction Manager shall reimburse the difference to the Owner.
~ 7.2.3 The Owner's accountants will review and report in writing on the Construction Manager's lInal accounting
within 30 days after delivery of the final accounting to the Architect by the Construction Manager. Based upon such
Cost of the Work as the Owner's accountants report to be substantiated by the Construction Manager's final
accounting, and provided the othcr conditions of Section 7.2.1 have been met, the Architect will, within seven days
after receipt of the written report of the Owner's accountants, either issue to the Owner a final Certificate for
Payment with a copy to the Construction Manager or notify the Construction Manager and Owner in writing of the
Architect's reasons for withholding a certificate as provided in Section 9.5.1 of A20 JT~L1997 . The lime periods
stated in this Section 7.2 supersede those stated in Scction 9.4.1 of A20JT~LI997.
~ 7.2,4 If the Owner's accountants report the Cost of the Work and AlA Document A20 I Expenses as substantiated
by the Construction Manager's final accounting to be less than claimed by the Construction Manager, the
Construction Manager shall be entitled to proceed to resolve such dispute under Article 9 or as otherwise provided
herein without a furthcr decision of the Architect. Pending a final resolution of the disputcd amount, the Owner
shall pay the Construction Manager the amount certified in the Architect's final Certificate for Payment.
AlA Document A 121 TMCMc - 2003 and AGC Document 565. Copyright (jJ) 1991 and 2003 by The American Instltule of Archilecls and The Associated
General Contractors of America. All rights reserved. WARNING: This document is protected by U.s. Copyright Law and Inlernatlonal Treaties.
Unauthorized reproduction or distribution of this document, or any portion of it, may result In Sllvere civil and criminal penalties, and will be
prosecuted to the maximum ex lent possible under the law. This documenl was produced by AlA soltware at 15:19:50 on 07/10/2007 undor Order
No.l000259422 1 which expires on 9/18/2007, and is not for resale.
User Notes: (1433524015)
13
Init.
(Paragraphs deLeted)
ARTICLE 8 INSURANCE AND BONDS
g 8.1 INSURANCE REQUIRED OF THE CONSTRUCTION MANAGER
During both phases of the Project, the Construction Manager shall purchase and maintain insurance as set forth in
Section 11.1 of A20 I TM-1997. Such insurance shall be written for not less than the following limits, or greater if
required by law;
g 8.1.1 Without limiting any of the other obligations or liabilities of the Construction Manager, the Construction
Manager shall secure and maintain such insurance from an admitted insurance company (or companies) authorized
to write insurance in the State of Montana, with a minimum "A.M. Best Rating" of A, as will protect himself, his
subcontractors, the Owner and the ArchiteetlEngineer and their respective agents and employees from claims for
bodily injury, death, or property damage which may arise from operations and completed operations under this
Agreement. Such coverage shall be written for claims arising out of all premises/operations, and all liability
assumed by the Construction Manager under any contract or agreement. Construction Manager shall not commence
work under this Agreement until such insurance has been obtained and certificates of insurance, with binders, or
certified copies of the insurance policy, shall have been filed with the Owner and the Architect/Engineer.
All insurance coverages shall remain in effect throughout the life of the Agreement, except that the construction
Manager shall maintain the Commercial General Liability coverage for a period of at least one year following the
substantial completion date for property damage resulting from occurrences during the agreement period.
Each insurance policy shall contain a clause providing that it will not be cancelled by the insurance company with
45 days written notice to the Owner and Architect/Engineer of intention to cancel.
Owner and Architect/Engineer are to be added as additional insured under the Genera Liability Coverages.
However, The Owner and the Construction Manager understand that the insurance coverage procured by the
construction Manager shall not provide coverage for design related liabilities, it being the responsibility of the
Architect to provide for the same. Certificates of Insurance shall be provided identifying such interests.
The minimum amount of such primary insurance coverages shall be as follows:
.1 Commercial General Liability - Occurrence Form
Bodily Injury and Property Damage;
$1,000.000.00 per occurrence
$2,000000.00 General Aggregate
$2.000000.00 Products and Completed
Coverage to include:
Premises Operations
Products Completed Operations
Contractual Liability
Operations of Independent Contractors
Personal Injury
Broad Form Property Damage
Deductible: Not more than $5000.00 per occurrence on property damage
.2 Automobile Liability-Combined Single Limit
Combined Single Limits: $1,000,000.00 each accident
Uninsured / Underinsured Motorist Limits: $1,000,000.00
Bodily Injury and Property Damage: Coverage to include:
All owned autos
All Hired Autos
Inlt,
AlA Document A121 "'CMe - 2003 and AGC Doeument565. Copyright @ 1991 and 2003 by The American Institute of Architects and The Associated
General Contractors of America. All rights reserved. WARNING: This document is protected by U.S. Copyright Law and International Treaties.
Unauthori~ed reproduction or distribution of this document, or any portion of ii, may result in severe civil and criminal penalties, and will be
proseculed to the maximum extent possible under Ihe law. This document was produced by AlA software at 15:19:50 on 07/1012007 undor Order
No.1000259422_1 which expires on 911812007, and is not for rosalo.
User Notes: (1433524015)
14
All non,owned autos
.3 Umbrella or Excess Insurance
Per Occurrence Limit: $5,000,000.00
Annual Aggregate Limit: $5,000,000.00
This coverage to apply to the commercial general liability and the automobile liability. Total
limit of liability coverage requested is $5,000,000.00 and can be made up of a combination of the
primary and the umbrella or excess insurance coverage.
.4 Workers Compensation
Occupational injury and Disease Statutory Employer's Liability;
These requirements may be written with General Liability Policy by endorsement if unavailable
from Workers' Compensation carrier.
(Paragraphs deleted)
g 8.2 INSURANCE REQUIRED OF THE OWNER
During both phases of the Project, the Owner shall purchase and maintain liability and property insurance, including
waivers of subrogation. as set forth in Sections 11.2 and 11.4 of A20 PM-1997. Such insurance shall be written for
not less than the following limits, or greater if rcquired by law:
g 8.2.1 Property Insurance:
Deductible Per Occurrence
Aggregate Deductible
f 8.2.2 The Owner shall purchase and maintain liability and property insurance as follows:
Builders Risk:
General Liability:
Boiler and Machinery Insurance:
$10,600,000.00
$1,000,000.00 per occurrence
$10,600,000.00
The Construction Manager shall be added as an additional insured under the Owner's liability and property
insurance.
g 8.3 PERFORMANCE BOND AND PAYMENT BOND
g 8.3.1 The Construction Manager shall furnish bonds covering the faithful performance of this contract and all
contracts competitively solicited and awarded for construction work in connection with the Project and payment of
all obligations arising thereunder, including labor and materials. Bonds may be obtained through the Construction
Manager's usual source and the cost thereof shall be included in the Cost of the Work. The amount of each bond
shall he equal to 100% of the Contract Sum of this contract and any and all contracts competitively solicited and
awarded for construction work in connection with the Project. Both the Construction Manager and the Owner shall
be listed as obligees on the payment and performance bonds.
g 8.3.2 The Construction Manager shall deliver the required bonds to the Owner at least three days before the
commencement of any Work at the Project site.
Inlt.
AlA Document A 121 TMCMc - 2003 and AGC Document 565. Copyright @ 1991 and 2003 by The American Institute 01 Architects and Tho Associated
General Contractors of America. All rights reserved. WARNING: This documenlls prolecled by U.S. Copyrighllaw and Inlernallonal Trealles.
Unaulhorlzed reproducllon or dlslrlbution of Ihls documenl, or any porlion of iI, may resullln severe civil and criminal penallles, and will be
prosecuted to the maximum eXlenl possible under Ihe lew. This document was produced by AlA software at 15;19;50 on 0711 0/2007 under Order
No.l000259422_1 which expires on 9/18/2007. and is nollor resale.
User Noles: (1433524015)
15
ARTICLE 9 MISCELLANEOUS PROVISIONS
g 9.1 DISPUTE RESOLUTION
g 9.1.1 During both the Preconstruction and Construction Phases, Claims, disputes or other matters in question
betwecn the parties to this Agreement shall be resolved as provided in Sections 4.3 through 4.6 in AlA Document
A20 I TM_1997 except that, during the Preconstruction Phase, no decision by the Architect shall be a condition
precedent to mediation.
g 9.2 OTHER PROVISIONS
g 9.2.1 Unless otherwise noted or unless otherwise inconsistent with their intended meaning in this Agreement, the
terms used in this Agreement shall have the same meaning as those in A20}TM-1997, General Conditions of the
Contract jtJr Construction.
g 9.2.2 EXTENT OF CONTRACT
This Contract, which includes this Agreement, its Addendum, its Amendments and the other documents
incorporated herein by reference, represents the entire and integrated agreement between the Owner and the
Construction Manager and supersedes all prior negotiations, representations or agreements, either written or oral.
This Agreement and its Addendum may be amended only by written instrument signed by both the Owner and
Construction Manager. If any document incorporated into this Agreement or its Addendum is inconsistent with
either, this Agreement, this Agreement and its Addendum shall govern.
g 9.2.3 OWNERSHIP AND USE OF DOCUMENTS
Article 1.6 of A20 \T~L 1997 shall apply to both the Preeonstruction and Construction Phases.
g 9.2.4 GOVERNING LAW
The Contract shall be governed by the law of the place where the Project is located.
g 9.2.5 ASSIGNMENT
The Owner and Construction Manager respectively bind themselves, their partners, successors, assigns and legal
representatives to the other party hereto and to partners, successors, assigns and legal representatives of such other
party in respect to covenants, agreements and obligations contained in the Contract Documents. Except as provided
in Section 13.2.2 of A20 I TM~ 1997, neither party to the Contract shall assign the Contract as a whole without written
consent of the other. If either party attempts to make such an assignment without such consent, that party shall
nevertheless remain legally responsible for all obligations under the Contract.
ARTICLE 10 TERMINATION OR SUSPENSION
g 10.1 TERMINATION PRIOR TO ESTABLISHING GUARANTEED MAXIMUM PRICE
g 10.1.1 During the preconstruction Phase, the Owner may terminate this Agreement at any time without cause, and
the Construction Manager may tcrminate this Agreement for any of the reasons described in Section 14.1.1 of
A20 I TIle 1997 .
g 10.1,2 If the Owner or Construction Manager terminates this Agreement pursuant to this Section 10. 1.1 above prior
to commencement of the Construction Phase, the Construction Manager shall be equitably compensated for
Preconstruction Phase Services performed prior to receipt of notice of termination: provided, however, that the
compensation for such services shall not exceed the compensation set forth in Section 4.1.1.
g 10.1.3 After commencement of the Construction Phase, the Construction Manager
(Paragraphs deleted)
may terminate this Agreement for any of the reasons set forth in and pursuant to Subparagraph 14. I of AlA
Document A20 I. The Owner may terminate this Agreement for any of the reasons set forth and pursuant to
Subparagraphs 14.2 or 14.4 of AlA Document A20I. The Owner may terminate this Agreement for any of the
reasons set forth and pursuant to Subparagraphs 14.2 or 14.4 of AlA Document A201.
g 10.1.4 If the Owner or Construction Manager terminates this Agreement Pursuant to Paragraph 10.1.3, the
Construction Manager shall be entitled to compensation for services rendered prior to termination in an amount that
bears the same ratio to the Construction Manager's total Fee as the amount of Work completed during the
Construction Manager's total Fee as the amount of Work completed during the Construction Manager's period of
Construction Phase scrvices bears to the total Cost of the Work. The aggregate uf previous payments made by the
Init.
AlA Documant A 121 mCMc - 2003 and AGC Document 565. Copyright @ 1991 and 2003 by The American Institute 01 Architects and The Associated
General Contractors of America. All rights reserved. WARNING: This document Is protected by U.S. Copyright Law and International Treaties.
Unauthorized reproduction or distribution of thi$ document, or any portion of it, may result in $evere civil end criminal panallle$, and will be
pro$ecuted to the maximum extent possible under the law. Thi$ documsnl was produced by AlA software at 15:19:50 on 07/10/2007 under Order
No.l000259422_1 which expires on 9/16/2007, and is not for resale.
User Notes: (1433524015)
16
Owner with respect to the Construction Manager's Fee shall be deducted from the figure arrived at through the
above-referenced ratio. No amounts beyond amounts that are tied to actual work performed shall be paid to the
Construction Manager,
g 10.2 TERMINATION SUBSEQUENT TO ESTABLISHING GUARANTEED MAXIMUM PRICE
Subsequent to execution by both parties of Amendment No. I, the Contract may be terminated as provided in Article
14 of A20P'~q997.
(Paragraphs deleted)
g 10.3 SUSPENSION
The Work may be suspended by the Owner as provided in Article 14 of A20Jl~LI997. Add Article 11 and the
following Subparagraphs of Article II.
ARTICLE 11 OTHER CONDITIONS AND SERVICES
g 11.1 The Construction Manager shall itself comply with and shall ensure the compliance of the various
Subcontractors with ~ 18~2-403, MCA in terms of giving preference to the employment of bona fide Montana
residents in the work it performs under this Agreement and in paying the standard prevailing wage rate of wages,
including travel allowance and fringe benefits, in effect and applicable to the operations that are conducted in
performing the Work on this Project. The Construction Manager will properly classify its employees and ensure
that the various Subcontractors properly classify their respective employees in accordance with the most recent
Montana prevailing wage rates as established by the Montana Department of Labor prior to commencing operations
under this Agreement. A copy ofthe applicable prevailing wage rates are contained in the Project Manual and arc
expressly incorporated herein by reference.
~ 11.2 No waiver of any breach of anyone of the agreements, terms, conditions or covenants of this Agreement by
the Owner or Construction Manager shall be deemed to imply or constitute a waiver of any other agreement, term,
condition or covenant of this Agreement. Thc failure of either party to insist on strict performance of any
agreement. tcrm. condition or covenant herein set forth, shall not constitute or be construed as a waiver of the rights
of either or the other thereafter to enforce any other default of such agreement, term, condition or covenant; neither
shall such failure to insist upon strict performancc bc dcemed sufficient grounds to enable either party to forego or
subvert or otherwise disrcgard any other agreement, term, condition or covenant of this Agreement.
~ 11.3 If in any instance any provision hereof shall be determined to be invalid or unenforceable under any
applicable law, such provision shall not apply in such instances, but the remaining provisions shall be given effect in
accordance with the terms.
~ 11.4 Any notices required or permitted under this Agreemcnt or which any party elects to givc shall be in writing
and delivcred either personally to the other party's authorized agent set forth below (or as changed by written
notice); or by depositing such notice with the United States Postal Service, postage fully prepaid, to the person at the
address set forth below; by certified mail, return receipt requested; or to such other address as either party may latcr
designate in writing. Any notice given by mail as herein provided shall be deemed given when deposited in the
United States mail:
Owner:
Owner's Construction Representative
City of Bozeman
Artn: James Goehr;ung
POBox 1230
Bozeman, MT 59715
Inlt.
AlA Document A12pMeMc - 2003 and AGC Document 565. Copyright @ 1991 and 2003 by The American Instiluto of Architects and The Associatod
General Contractors of America. All rights reserved. WARNING: This document is protected by U.s. Copyright Law and Intern;lUonal Treaties.
Unauthorized reproduction or distribution of this document, or any portion of it, may result In severe civil and criminal penalties, and will be
prosecuted \0 the maximum extent possible under the law. This document was produced by AlA soflwaro at 15:19:50 on 0711012007 undor Order
No.1 000259422_1 which expires on 911812007. and is not for resale.
User Notes: (1433524015)
17
Construction Manager;
Martel Construction, Inc..
Attn: Mark Brown
1203 South Church
Bozeman, MT 59715
~ 11.5 This Agreement may be executed in several counterparts, and each such counterpart shall be deemed an
original.
~ 11.6 Time is of the essence, and the Construction Manager agrees to proceed with the provision of services under
this Agreement with due diligence and without delay, in order to meet the Owner's schedule of construction and
occupancy. It is expressly agreed and understood between the parties that the Project must reach Substantial
Completion no later than August ,
~ 11.7 The Construction Manager shall reject the use of any hazardous material in the construction of the project,
induding but not limited to asbestos, asbestos products, polychlorinated biphenyl (PCB) or other toxic substances.
Further, if any such materials arc discovered in the course of the construction, the Construction Manager shall notify
the Owner immediately.
~ 11.8 In the event either party tiles suit to enforce their rights under this agreement, the prevailing party shall be
entitled to recover their costs and attorneys fees from the other party, in addition to any other damages awarded by
the court. It is understood and agreed that any suit filed to interpret or enforce any of the provisions of this
agreement shall be filed in the Eighteenth Judicial District court of the State of Montana.
This Agreement entered into as of the day and year first written above.
~<~.
CONSTRUCTION MANAGER
;1;1;,(J. ~
(Signatu e)
Anthony W. Martel, Vice
President/Secretary
(Printed name and title)
7./7.07
Date~ ~.
ATTEST
p~-
Init.
AlA Documllnt A121 "'CMc - 2003 and AGC Document 565. Copyright @ 1991 and 2003 by The American Institute 01 Architects and The Associated
General Contractors of America. All rights reserved. WARNING: This document is protected by U.S. Copyright Law and International Treaties.
Unauthorized reproduction or distribuUQn of this document, or any portion of it, may result in severe civil and criminal penalties, and will be
prosecuted to the maximum extent possible under the law. This document was produced by AlA software at 15:19:50 on 07110/2007 under Order
No.1000259422 1 which e<pires on 9118/2007, and is not for resale.
User Notes: (1433524015)
18
.:AIX Document A121'"CMc - 2003
Amendment No.1
AMENDMENT NO. 1
TO AGREEMENT BETWEEN OWNER AND CONSTRUCTION MANAGER
Pursuant to Section 2.2 of the Agreement, dated June 19, 2007 between City of
Bozeman, A Municipal Corporation (Owner) and Martel Construction, Inc., Subchapter
S Corporation (the Construction Manager), for Bozeman lntermodal Facility (the
Project), the Owner and Construction Manager establish a Guaranteed Maximum Price
and Contract Time for the Work as set forth below.
ARTICLE I GUARANTEED MAXIMUM PRICE
The Construction Manager's Guaranteed Maximum Price for the Work, including the
estimated Cost of the Work as defined in Article 6 and the Construction Manager's Fcc as
defined in Article 5, is Eight Million, Six Hundred Ninety Nine Thousand, Eight
Hundred Fifty Two Dollars ( $8,699,852.00 ). This Price is for the performance of
the Work in accordance with the Contract Documents listed and attached to this
Amendment and marked Exhibits A through P, as follows;
Exhibit A Drawings, Specifications, addenda and General
Supplementary and other Conditions of the Contract on which the Guaranteed
Maximum Price is based ( 1) one volume of 24x36 Drawings dated April 2007
and Volume I and II of the Project Manuals dated April 2007.,
Exhibit B
Attached Amendment No. I Spreadsheet dated June 11, 2007.
Exhibit C Assumptions and Clarifications made in preparing the
Guaranteed Maximum Price, pages through , dated
Exhibit D
11,2007
Completion Schedule, pages 1 through
, dated July
Exhibit E
Alternate Prices, pages
through
, dated
Exhibit F
Unit Prices, pagcs
through
, dated
ADDI110NS AND DELETIONS:
The author of this document has
added information needed for its
completion. The author may also
have revised the text of the original
AlA standard form. An Additions and
Deletions Report that notes added
information as well as revisions to
the standard form text Is available
from the author and should be
reviewed. A vertical line in the left
margin of this document indicates
where the author has added
necessary information and where
the author has added to or deleted
from the original AlA text.
This document has important legal
consequences. Consultation with an
attorney is encouraged with respect
to its completion or modification.
Inlt.
1
AlA Document A121T1lCMc ~2003 Amendment No.1. Copyright (ID 1991.1998 and 2003 by The American Institute of Architects and The Associated
Goneral Contractors of America. All rights reserved. WARNING: This document is protected by U.S. Copyright Law snd International Treaties.
Unauthorized reproduction or distribution of this document, or any portion of it, may result In severe civil Bnd criminal penalties, and will be
prosecuted to the maximum extent possible under the law. This document was produced by AlA software at 10:21 :19 on 07111/2007 under Order
No.1000259422_1 which expires on 9/1812007, and is not for resale.
User Notes: (722476724)
ARTICLE II CONTRACT TIME
The date of Substantial Completion established by this Amendment is: Augustl, 2008
CONSTRUCTION MANAGER
ff!:#O .~
(Signature)
Q,W\fA.ja.C' Anthony W. Martel
(Printed name and title)
7./7.D7
-~JL.R~
ATTEST
Inlt
AlA Document A121"'CMo -2003 Amendment No.1. Copyright (ll) 1991,1998 and 2003 by The American Instituta of Architacts and Tha Associated
General Contractors of Amarica. All rights reserved. WARNING: Thlis document I. protected by U.s. Copyright Law and Internallonal Treelles.
Un.uthorl:ted reproduotlon or dlstrlbullon of this document, or any portion of II. may re.ultln severe civil end crIminal penalties, end will be
prosecuted to the mulmum extent possible under the law. This document was produced by AlA soflwara at 10:21 :19 on 07/11/2007 undar Ordar
No.1000259422_1 which axplras on 9/18/2007, and is not for resale.
User Notes: (722476724)
2
Bozeman Intermodal Facility
June 11, 2007 Amendment No.1
Martel Construction, Inc.
Bid Packages Bid Day Bid Day Bid Day Trade Contractor
Base Bid Alternate 1 Alternate 2
General Requirements
1A General Requirements, Bonds & GIL Insurance 456,872 94,000 0 Martel
456,872
Site Work
2A&2B Site Clearing, Building Earthwork & Site Utilities 717,780 0 0 Walker
2C Site Concrete 116,688 0 0 JTL
20 Trees & Irrigation. ALLOWANCE 0 0
2E Asphalt Paving 56,886 0 0 Gallatin Asphalt
2F Traffic Control Plan, Slgnage Etc. 198,366 0 0 Montana Lines
Concrete Work
3A Concrete Work 3,080,000 673,000 0 Martel
Masonry
4A Masonry 835,000 196,051 4,560 Anderson
Metals
SA Supply Steel Package 472,175 44,000 0 Martel (Steel West)
5B Install Steel Package 234,000 35,000 0 Martel (Struct. Sys.)
Carpentry
6A Supply & Install Finish Carpentry & Casework 6,000 0 0 Martel (Stahl)
Thermal & Moisture
7A Metal Wall & Soffit Panels 94,215 0 0 Tri-Jack
78 & 7C EPDM Roofing I Sheet Metal Flashing & Trim 107,398 0 0 Missoula Sheet MtI.
70 Joint Sealants 26,000 5,000 0 Martel (Rollinger)
Doors, Frames & Hardware
8A Supply & Install Doors, Frames, Hardware 49,000 11,000 0 Martel (Kalmont)
8B Aluminum Storefronts & Glass & Glazing 191,200 30,965 0 Valley Glass
Finishes
9A Metal Studs, Insulation, Carpentry, Drywall, Tape & Finish 244,630 28,480 0 Martel (wI subs)
98 Acoustical Panel Ceilings 3,000 0 0 Martel (Empire)
9C Resilient Wall Base 600 0 0 Rich's
90 Painting 59,928 15,225 0 T & L Painting
Specialties
10A Supply & Install Division 10 Specialties 1,500 0 0 Martel (wI suppliers)
Parking Control Equipment
Supply & Install Parking Control Equipment by Owner by Owner
Hoisting
14A Hydraulic Elevators 160,000 24,788 1,227 Gallatin Elevator
Mechanical Complete
15A Mechanical. Plumbing, HVAC & Fire Protection 461,000 12,000 0 Williams P & H
Electrical
16A Electrical, Fire Alarm & Communication Complete 573,000 47,393 0 Valley Electric
Page 1 of 2
Bozeman Intermodal Facility
June ii, 2007
Martel ConstrucUon, Inc.
Bid Packages
Amendment No.1
Bid Day
B8se Bid
Bid Day
Alternate 1
Bid Day
Alternate 2
Trade Contractor
Total Bid Packages 8,160,238 1,216,902 5,787
Construction IndIrect Costs
Construction Management Services (6% base, 4.5% Alt.) 489,614 54,761 260
Paid Direct bv The City of Bozeman
Building Permits 40,453
Impact Fees 172,709
Commissioning - if Required 0
Material Testing 0
Builders Risk 9,584
Utility Line Relocation. Allowance 200,000
Parking Control Equipment - Allowance 135,328
Subtotal 558,074
Total Indirect Costs 489,614 54,781 260
Total Construction Costs & Indirect Costs 8,649,852 1,271,663 6,047
Construction Contingency. COB to Administer with Martel 50,000 20,000 0
Page 2 of 2
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