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HomeMy WebLinkAbout08- Addendum #1 to the Standard Form of Agreement Between Owner and Construction Manager AIA Document A121 CMcADDENDUM #1 TO THE STANDARD FORM OF AGREEMENT BETWEEN OWNER AND CONSTRUCTION MANAGER AIA DOCUMENT A121 CMc - 2003 The following provisions modify, change, delete from or add to the agreement between Owner and Construction Manager, AIA Document A121 CMc, 2003 ("AIA Document A121 "). Except where any article of the standard form is modified, or any paragraph, subparagraph or clause thereof is modified or deleted by this Addendum, the provisions of that article, paragraph, paragraphs or clause shall remain in effect. For purposes of this Project, the term Construction Manager, General Contractor Construction Manager ("GCCM") and "Contractor" shall all mean the Construction Manager identified in this contract. For purposes of this Project and this Agreement, and except where otherwise noted, the term "Subcontractors" shall mean any contractors, subcontractors, trade contractors, or other entities who are successful bidders in the competitive bidding processes conducted by the Owner and who are awarded contracts for construction work on this Project. 1.1 1.2 Delete in its entirety Subparagraph 1.2 and replace with the following; 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 AIA Document A201, "General Conditions of the Contract for Construction," and the Supplementary Conditions, which are incorporated herein by reference (hereinafter collectively referred to as "AIA Document A201 "). For the Preconstruction Phase, or in the event that the Preconstruction and Construction Phases proceed concurrently, AIA Document A201 shall apply to the Preconstruction Phase only as specifically provided in this Agreement. The term Contractor as used in AIA Document A201 shall mean the Construction Manager. Add new Subparagraph to Article 1 as follows: 1.3 Preconstruction and Construction Phases of Work The Parties acknowledge and agree that the Construction Manager will provide services at the Preconstruction Phase, (which shall run through the Bidding Phase) and, if approved by the Owner, through the Construction Phase. The Parties agree and acknowledge that the Project will proceed with a phased or sequential bidding process and that portions of the Project may enter Construction Phase while other portions of the Project remain in the Preconstruction Phase. Until the Owner has given approval for use of the Construction Manager beyond the Preconstruction Phase of a phased or sequential portion of the Project, pursuant to Amendment No. 1 hereto or any subsequently numbered Amendment, the Construction Manager shall have the authority to provide services only through the Preconstruction Phase of that phased or sequential portion of the Project at the compensation set forth in Section 4.1.1, 2.1 2.1.6 Delete Subparagraph 2.1.6 in its entirety. 2.1.8 Replace the first sentence of Subparagraph 2.1.8 with the following: Except as may otherwise be provided herein, the Construction Manager does not warrantor guarantee estimates and schedules. It is understood that the Construction Manager/Architect team will invest substantial time before, during and after the bidding phase and that value engineering and minor scope changes to the design of the Project will frequently be necessary during the Preconstruction Phrase to protect and maintain the Owner's overall budget. It is ADDENDUM TO THE AIA A121 -PAGE 1 OF 16 City of Bozeman -Historic T.B. Story Mansion Interior Renovation recognized that neither the Owner nor the Construction Manager has control over the cost of labor, materials or equipment, competitive bidding, market or negotiating conditions. Accordingly, the Construction Manager cannot and does not warrantor represent that bids or negotiated prices will not vary from the Owner's Project budget or from any estimate of the Cost of Work or evaluation prepared by the Architect. Add new Subparagraph to Paragraph 2.1 as follows: 2.1.10 Overview of Services. Without assuming any responsibility for the design of the Work, the Construction Manager will, in addition to any other services set forth under Paragraph 2.1, provide the following Preconstruction services: .1 Consult with, advise, assist, and provide recommendations to the Owner and Architect on all aspects of the planning and design of the Work. The Architect is, however, ultimately responsible for the design of the Work. .2 Provide information, estimates, and participate in decisions regarding construction materials, methods, systems, phasing, and costs to assist in determinations that are aimed at providing the highest quality building within the budget and schedule. .3 Review in-progress design documents and provide input and advise on construction feasibility, alternative materials, and availability of materials and equipment; Review completed design documents and suggest modifications to improve completeness and clarity. .4 Provide input regarding the current construction market bidding climate, status of key subcontract markets, etc.; Recommend division of work to facilitate bidding and award of trade contracts, considering such factors as bidding climate, improving or accelerating construction completion, minimizing trade jurisdictional disputes and related issues. .5 Work with the Architect to develop and monitor the Project critical path schedule and recommend adjustments in the design documents or construction bid packaging to ensure completion of the Project in an expeditious manner, while addressing and meeting schedule requirements. .6 Prepare construction cost estimates for the project at appropriate times throughout the design phases of the work; Notify the Owner as soon as reasonably possible if the provided construction cost estimates appear to be exceeding the Owner's budget. .7 Work with the Owner and Architect to assist the Architect with its goal of achieving a building that will meet the Historic Preservation Restoration requirements. .8 Work with the Architect in order for the Architect to complete all design work in accordance with applicable government codes. .9 Attend a minimum of 3 meetings of the Required City Review Boards, at the Design Development, Construction Documents and Bidding Phase, as coordinated with the Owner and Architect. .10 Assist the Architect in the submission of the Construction Documents to the specific state and local agencies having jurisdiction over the Project, including but not limited to review under § 20-6-622, MCA and in securing written approval from those agencies. .11 Work with the Architect in the preparation of the advertisements for bids, as well as the necessary forms, record of bidders, plan deposits, proposals and other ADDENDUM TO THE AIA A121 -PAGE 2 OF 16 City of Bozeman -Historic T.B. Story Mansion Interior Renovation bidding and construction documents, all subject to the Owner's approval prior to distribution to prospective bidders. The Construction Manager shall also work with the Architect to ensure that the bid specifications and Construction Documents contain the provisions required by Montana law concerning prevailing wage (§§18-2403 and 18-2-422, MCA; ARM 24.16.9005), resident hiring preference (§ 18-2-403, MCA), nondiscrimination (§49-3-207, MCA), bid security (§18-2-302, MCA), posting of wages and maintenance of records (§§ 18-2-406 and 422, MCA, as amended) and all other provisions required by Montana and Federal law for public contracting .12 Assist the Owner and Architect in determining the number and nature of the bid packages to be placed for bid, open the bids on behalf of the Owner at a public meeting on school premises and following a review of the bids conducted with the Architect, assist the Architect in the preparation of a written bid analysis for presentation to the Owner, along with supporting documentation. .13 Work with the Architect to require that all contracts for construction contain requirements that the Subcontractors provide operations manuals and adequate training and support for the Owner in the operation of mechanical, electrical, heating and air conditioning systems installed by the Subcontractor. .14 Act as the advisor to and agent of the Owner. 2.1.11 Additional Pre-Construction Phase Responsibilities. The Construction Manager will work with the Architect in the preparation of the bidding information, which must be approved by the Owner before distribution to prospective bidders. Construction will not commence until plans and specifications have been submitted to and approved by the City of Bozeman. Plans and specifications must show in detail the proposed construction and indicate conformity with the applicable building code. (see §20-2-622, MCA.) 2.2 2.2.1 Replace Subparagraph 2.2.1 in its entirety with the following: 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 be calculated by adding: (i) the sum of all of the awarded contracts for the Work; (ii) the Construction Manager's Reimbursable Direct Job Costs; (iii) the Construction Manager's Fee; and (iv) the Construction Contingency. The Construction Manager's fee shall be calculated by adding the sum of all of the awarded contracts for the Work to the Construction Manager's Reimbursable Direct Job Costs, and multiplying that sum by 6%. The Owner shall have the right to pay Reimbursable Direct Job Costs directly where feasible, thereby reducing the overall GMP. If the GMP proposal exceeds the Construction Manager's most recent approved cost estimate relating to a portion of the construction work, the Construction Manager shall work with the Architect to bring the project within the approved cost estimate. 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 ten (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 Phase of that portion of the Project. ADDENDUM TO THE AIA A121 -PAGE 3 OF 16 City of Bozeman -Historic T.B. Story Mansion Interior Renovation 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 Construction 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. 2.2.2 Delete Subparagraph 2.2.2 in its entirety, 2.2.3 Replace Subparagraph 2.2.3 with the following: The Owner shall maintain the construction contingency and this cost shall not be included as part of the Construction Managers GMP. 2.2.4 Delete Subparagraph 2.2,4 in its entirety. Add the following new Subparagraphs to Paragraph 2.2: 2.2.11 If, after 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 shall 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 specified 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 Construction 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 all work associated with the alleged Change in Scope at issue without an increase in the GMP or the Contract Time, and without use of the Construction Contingency Account. 2.2.12 After receiving the Construction Manager's notice as provided in Section 2.2.11, the Owner may request that the Construction Manager prepare and submit specific comments, recommendations and alternatives for modifying the Project to fit within the GMP and Completion Date(s). 2.2.13 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 ADDENDUM TO THE AIA A121 -PAGE 4 OF 16 City of Bozeman -Historic T.B. Story Mansion Interior Renovation 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 GMP 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 GMP or the Contract Time, or both, in whole or in part, and notwithstanding any provision of the Contract Documents to the contrary, the Construction Manager may pursue a claim for an increase in the GMP or the Contract Time, or both, in accordance with the procedure provided AIA Document A201-1997, including Articles 4 and 7 thereof. 2.3 2.3.1.1 Replace subparagraph 2.3.1.1 in its entirety with the following: The Construction Phase with respect to any portion of the Project shall commence no later than the date of the issuance of the Notice to Proceed. Add the following new Subparagraphs to Paragraph 2.3: 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 AIA Document A201 and the supplement conditions thereto, 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 AIA Document A201, and the supplemental conditions thereto, 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 Construction Manager's GMP 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: (1) such work is publicly bid according to the invitations to bid and requirements of state law; (2) the Construction Manager is the lowest responsive and responsible bidder for the work as confirmed by the Architect and Owner. 2.3.2.1 Delete the third sentence of Section 2.3.2.1 and insert a new third sentence as follows: 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 require that ADDENDUM TO THE AIA A121 -PAGE 5 OF 16 City of Bozeman -Historic T.B. Story Mansion Interior Renovation any bidder provide full performance and payments bonds as a condition precedent to any work being awarded to such bidder. 2.3.2.3 Replace Subparagraph 2.3.2.3 in its entirety with the following: 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. 2.3.2.5 Replace Subparagraph 2.3.2.5 in its entirety with the following: The Construction Manager shall prepare a schedule in accordance with Paragraph 3.10 of AIA Document A201, including the Owner's occupancy requirements. 2.3.2.6 Replace Subparagraph 2.3.2.6 in its entirety with the following: 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 well 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 the site, number of workers, identification 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. Add the following new Subparagraphs to Subparagraph 2.3.2: 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 bylaw, 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, MCA), and maintenance of records requirements (§18-2-406 and 422, MCA, 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 1 % of all payments due the Subcontractors. For each contract, the Construction Manager will file the necessary forms, including the Form PC-1 and related forms, with the Montana Department of Revenue containing the information set forth in ARM 42.31.2121, within 10 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. 2.3.2.9 Utilizing the construction schedules provided by the various Subcontractors, the Construction Manager shall update the Project construction schedule incorporating the activities of the Subcontractors on the Project, 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 shall recommend corrective action to the Owner and Architect. 2.3.2.10 Consistent with the various bidding documents and utilizing information from the Subcontractors, the Construction Manager shall coordinate the sequence of construction and the assigning of space in areas where the Subcontractors are performing work. 2.3.2.11 The Construction Manager shall determine in general that the Work of each Subcontractor is being performed in accordance with the requirements of the Contract Documents to guard the Owner against defects and deficiencies in the Work, As appropriate, ADDENDUM TO THE AIA A121 -PAGE 6 OF 16 City of Bozeman -Historic T.B. Story Mansion Interior Renovation the Construction Manager shall 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, whether 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. 2.3.2.12 The Construction Manager shall schedule and coordinate the sequence of construction in accordance with the Contract Documents and the latest approved Project construction schedule, as well as schedule and coordinate any outside inspections required by law so as to avoid unnecessary delays. 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 identified in the plans and specifications. 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 they are accepted, prepare Change Orders and Construction Change Directives which incorporate the Architect's modifications to the Documents. 2.3.2.15 In collaboration with the Architect, the Construction Manager shall establish and implement procedures for expediting the processing and approval of Shop Drawings, Product Data, Samples and other submittals. The Construction Manager shall review all Shop Drawings, Product Data, Samples and other submittals from the Subcontractors. The Construction Manager shall coordinate submittals with information contained in related documents and simultaneously transmit to the Architect and Owner those that have been approved 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 activities 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 footings, 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. 2.3.2.17 With the Architect and the Owner's maintenance personnel, the Construction Manager shall conduct the final testing and start-up of utilities, operating systems and equipment. 2.3.2.18 When the Construction Manager considers each Subcontractor's Work or designated portion thereof substantially complete, the Construction Manager shall notify the Architect. The Construction Manager shall assist the Architect in conducting inspections to determine whether the Work or designated portion thereof is substantially complete. 2.3.2.19 The Construction Manager shall coordinate and administer any required correction and completion of the Work. Following issuance of a Certificate of Substantial 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 ADDENDUM TO THE AIA A121 -PAGE 7 OF 16 City of Bozeman -Historic T.B. Story Mansion Interior Renovation in making final inspections. 2.3.2.20 The Construction Manager shall, accompanied by the Architect and a representative of the Owner, make the following inspections per agreed dates on the 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 materials 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. 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. 2.5 .5 Insert the following after the first sentence of Subparagraph 2.5 with the following: Except as otherwise provided, the Owner, Construction Manager and Architect shall then proceed in the manner described in Article 10 of AIA Document A201. The Owner shall be responsible for obtaining 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 substance is found to be 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. 4.1 4.1.1 Replace Subparagraph 4.1.1 in its entirety with the following: For the Construction Manager's services during the Preconstruction phase, the Construction Manager shall be paid the fixed sum of $6,200 and the Construction Manager will keep a log of services rendered during this period 4.1.2 Delete Subparagraph 4.1.2 in its entirety. 4.1.3 Delete Subparagraph 4.1.3 in its entirety. 4.2.1 Add the following to Subparagraph 4.2.1: Payments 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 ADDENDUM TO THE AIA A121 -PAGE 8 OF 16 City of Bozeman -Historic T.B. Story Mansion Interior Renovation amount within 7 days after contractor's request for payment is approved. 4.2.2 Delete Subparagraph 4.2.2 in its entirety. 5.1 5.1.1 Replace Subparagraph 5.1.1 in its entirety with the following: For the Construction Manager's services during the Construction Phase, the Construction Manager's Fee shall be 6% of the sum of all of the awarded contracts for the Work plus the Construction Manager's Reimbursable Direct Job Costs as defined in Subparagraph 2.2.1 above, less any credit amount under Subparagraph 4.1.1 above 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 5.2.1 Replace Subparagraph 5.2.1 in its entirety with the following: 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 and Supplemental 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 2.2.11 and 2.212. 5.3 5.3.2 Replace Subparagraph 5.3.2 in its entirety with the following: In calculating adjustments to Subcontracts, the terms "cost" and "fee" as used in Subparagraph 7.3.3.3 of AIA Document A201 and the terms "cost" and "a reasonable allowance for overhead and profit" as used in Subparagraph 7.3.6 of AIA Document A201 shall have the meanings assigned to them in that document and shall not be modified by this Article 5. The Construction Manager's fee and/or overhead and profit shall not be increased based on changes to the work except as specifically provided in Section 5.1.1, where the Owner requests material changes which are outside the scope of the Project. 5.3.3 Delete Subparagraph 5.3.3 in its entirety. 5.3.4 Delete Subparagraph 5.3.4 in its entirety. 6.1 6.1.1 Replace Subparagraph 6,1.1 in its entirety with the following: 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, including any contracts competitively solicited and awarded to the Construction Manager for construction work in connection with the Project, and Reimbursable Direct Job Costs defined on Exhibit A. In the event inconsistency between any Contract Document and Exhibit A, Exhibit A shall govern. 6.1.2 Delete Subparagraph 6.1.2 in its entirety. 6.1.3 Delete Subparagraph 6.1,3 in its entirety. 6.1.4 Delete Subparagraph 6.1.4 in its entirety. 6.1.5 Delete Subparagraph 6.1.5 in its entirety. ADDENDUM TO THE AIA A121 -PAGE 9 OF 16 City of Bozeman -Historic T.B. Story Mansion Interior Renovation 6.1.6 Delete Subparagraph 6.1.6 in its entirety. 6.1.7 Delete Subparagraph 6.1.7 in its entirety. 6.1.8 Delete Subparagraph 6.1.8 in its entirety, 6.1.9 Delete Subparagraph 6,1.9 in its entirety. 6.2 6.2.1 Delete Subparagraph 6,2.1 in its entirety. 6.4 6.4.1 Add the following to Paragraph 6.4.1 after the first sentence: The Construction Manager shall maintain records for all subcontracts, change orders and scope of Work changes resulting from all Subcontractors, 7.1 7.1.1 Delete the words "on account of the Contract Sum" from the first sentence of Subparagraph 7.1.1. 7.1.3 Replace Subparagraph 7.1.3 in its entirety with the following: Progress payments 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. Replace Subparagraph 7,1.8 in its entirety with following: 7.1.8 After the words "retainage of in the first sentence of Subparagraph 7.1.7.3, insert the words "five 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 reasonably 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%). Add the following new Subparagraphs to Subparagraph 7.1: 7.1.11 The Construction Manager shall develop and implement procedures for the timely review and processing of applications 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 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 Manager's knowledge, information and belief, the Work has progressed to the point indicated and the quality of the Work is in accordance with the Contract Documents, The foregoing ADDENDUM TO THE AIA A121 -PAGE 10 OF 16 City of Bozeman -Historic T.B. Story Mansion Interior Renovation representations are 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 Construction Manager in writing. The issuance of a Certificate for Payment shall further constitute a representation that the various Subcontractors are entitled to payment in the amount certified. 7.2 7.2.1 Replace Subparagraph 7.2.1 in its entirety with the following: 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 their respective responsibilities to (a) correct nonconforming Work as provided in AIA Document A201 and (b) satisfy other requirements, if any, which necessarily survive final payment; (2) a final Application for Payment and a final accounting for the Cost of the Work and General Condition Expenses have been submitted by the Construction Manager and reviewed by the Owner and/or its accountants; and (3) a final Certificate for Payment has then been issued by the Architect. Such final payment shall be made pursuant to §28-2-2101 et seq., MCA. 7.2.4 Replace Subparagraph 7.2.4 in its entirety with the following: If the Owner's accountants report the Cost of the Work and AIA Document A201 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 further decision of the Architect, Pending a final resolution of the disputed amount, the Owner shall pay the Construction Manager the amount certified in the Architect's final Certificate for Payment. 7.2.5 Delete Subparagraph 7,2.5 in its entirety. 8.1 8.1.1 Replace Subparagraph 8.1.1 in its entirety with the following: 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 Architect/Engineersnd 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 without 45 days written notice to the Owner and Architect/Engineer of intention to cancel, ADDENDUM TO THE AIA A121 -PAGE 11 OF 16 City of Bozeman -Historic T.B. Story Mansion Interior Renovation Owner and Architect/Engineersre to be added as additional insureds under the General 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 $3,000,000.00 Annual Aggregate Coverage to include; Premises Operations Products Completed Operations Contractual Liability Operations of Independent Contractors Personal Injury Broad Form Property Damage Deductible: Not more than $5,000.00 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 All non-owned autos .3 Umbrella or Excess Insurance Per Occurrence Limit : $3,000,000.00 Annual Aggregate Limit: $3,000,000.00 This coverage to apply to the commercial general liability and the automobile liability. Total limit of liability coverage requested is $4,000,000 per occurrence 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. 8.1.2 Delete Subparagraph 8.1.2 in its entirety. 8.1.3 Delete Subparagraph 8.1.3 in its entirety. 8.1.4 Delete Subparagraph 8.1.4 in its entirety. 8.2 8.2 Replace in its entirety with the following: During both phases of the Project, The Owner will maintain liability and property insurance with the City's insurance carrier at the recommended carrier's levels. 8.3 8.3.1 Replace Subparagraph 8.3.1 in its entirety with the following: The Construction Manager shall furnish bonds covering the faithful performance of this contract and all contracts competitively solicited and awarded for construction work in ADDENDUM TO THE AIA A121 -PAGE 12 OF 16 City of Bozeman -Historic T.B. Story Mansion Interior Renovation 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 be 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. 9.1 9.1.1 Replace Subparagraph 9.1.1 in its entirety with the following: During both the Preconstruction and Construction Phases, Claims, disputes or other matters in question between the parties to this Agreement shall be resolved as provided in Sections 4.3 through 4.6 in AIA Document A201, except that, during the Preconstruction Phase, no decision by the Architect shall be a condition precedent to mediation. 9.2 9.2.1 Replace Subparagraph 9.2.1 in its entirety with the following: 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 the AIA Document A201, 9.2.2 Replace Subparagraph 9.2.2 in its entirety with the following: 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 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 the Construction Manager. If any document incorporated into this Agreement or its Addendum is inconsistent with either, this Agreement and its Addendum shall govern. 10.1 10.1.1 Replace Subparagraph 10.1.1 in its entirety with the following: During the Preconstruction Phase, the Owner may terminate this Agreement at any time without cause, and the Construction Manager may terminate this Agreement for any of the reasons described in Subparagraph 14.1.1 of AIA Document A201. 10.1.2 Replace Subparagraph 10.1.2 in its entirety with the following: If the Owner or Construction Manager terminates this Agreement pursuant to Subparagraph10.1.1 above prior to the 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 Subparagraph 4.1.1. 10.1.3 Replace Subparagraph 10.1.3 in its entirety with the following: After commencement of the Construction Phase, the Construction Manager may terminate this Agreement for any of the reasons set forth in and pursuant to Subparagraph 14.1 of AIA Document A201. The Owner may terminate this Agreement for any of the reasons set forth and pursuant to Subparagraphs 14.2 or 14.4 of AIA Document A201. 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 period of Construction Phase services bears to the total Cost of the Work. The aggregate of ADDENDUM TO THE AIA A121 -PAGE 13 OF 16 City of Bozeman -Historic T.B. Story Mansion Interior Renovation previous payments made by the 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. 10.2 10.2.1 Delete Subparagraph 10.2.1 in its entirety. 10.2.2 Delete Subparagraph 10.2.2 in its entirety. 10.3 10.3 Replace Subparagraph 10.3 in its entirety with the following: The Work may be suspended by the Owner as provided in Article 14 of AIA Document A201. Add Article 11 and the following Subparagraphs of Article 11: ARTICLE 11 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 of the applicable prevailing wage rates are contained in the Project Manual and are expressly incorporated herein by reference. 11.2 No waiver of any breach of any one 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. The failure of either party to insist on strict performance of any agreement, term, 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 performance be deemed sufficient grounds to enable either party to forego or subvert or otherwise disregard 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 their terms. 11.4 Any notices required or permitted under this Agreement or which any party elects to give shall be in writing and delivered 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 later designate in writing. Any notice given by mail as herein provided shall be deemed given when deposited in the United States mail: Owner: James Goehrung Construction Manager: R & R Taylor Construction, Inc. ADDENDUM TO THE AIA A121 -PAGE 14 OF 16 City of Bozeman -Historic T.B. Story Mansion Interior Renovation Director of Facility Services P.O. Box 1234 City of Bozeman Bozeman, MT 59715 P 0 Box 1230 Bozeman, MT 59771 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 June 30, 2008. 11.7 The Construction Manager shall reject the use of any hazardous material in the construction of the project, including but not limited to asbestos, asbestos products, polychlorinated biphenyl (PCB) or other toxic substances. Further, if any such materials are discovered in the course of the construction, the Construction Manager shall notify the Owner immediately, 11.8 In the event either party files 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 ADDENDUM No. 1 entered into on this 19TH day ~f DECEMBER , 2008. OWNER: CONSTRUCTION MANAGER: City of Bozeman R& R Taylor Construction, Inc. P.O. Box 1230 P.O. B 1234 Boz M~ 59771 n, MT 59 5 By: ~ gy. Chris Kukulski, City Manager R L OLSEN, PRESIDENT ATTEST; Stacy I en, ity Clerk AMENDMENT NO. 1 TO AGREEMENT BETWEEN OWNER ADDENDUM TO THE AIA A121 -PAGE 15 OF 16 City of Bozeman -Historic T.B. Story Mansion Interior Renovation AND CONSTRUCTION MANAGER Pursuant to Subparagraph 2.2 of the Agreement between Owner and Construction Manager (as modified by Addendum No 1), dated this 19TH day Of DECEMBER , 2008, between the City of Bozeman ("Owner") and R & R Taylor Construction, Inc. ("Construction Manager") for the Historic T,B. Story Mansion Renovation Project, the Owner and Construction Manager hereby establish a Guaranteed Maximum Price and Contract Time for this portion of the Project as set forth below: GUARANTEED MAXIMUM PRICE The Construction Manager's Guaranteed Maximum Price (GMP) for the Work, including the Cost of the Work as defined in Article 6 and the Construction Manager's Fee as defined in Article 5 is as follows: $ 8s2,o26.0o Total of all Contracts competitively solicited and awarded for construction work in connection with the Project. $ 164 , 014 . oo Construction Manager's Fee for Construction Phase of the Project. $ 25 , 202 . oo Reimbursable Direct Job Costs identified on Exhibit A, that are not paid for directly by the Owner. $ 1, o~ 1, 242 _ nn TOTAL GUARANTEED MAXIMUM PRICE CONTRACT TIME The date of Substantial Completion for the Work underlying the contracts identified in Article 2 is: June 30, 2009. This Amendment No. 1 is entered into on this 19TH day pf DECEMBER , 2008. 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