contract & bid documents & technical specifications …

CONTRACT & BID DOCUMENTS & TECHNICAL SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION

City Project Number: 2006-02 Project Name: Water Treatment Plan Process Improvements Project Location: City of Ashland, Oregon Project Type: Water Project Duration: November 15, 2007 through April 15, 2008 Mandatory Pre-Bid Conference: October 18, 2007 @ 1:30 PM Bids Due by: November 1, 2007 @ 1:30 PM Submit Questions & Bid Proposals to: Paula C. Brown, PE, City of Ashland

DEPARTMENT OF PUBLIC WORKS

20 EAST MAIN STREET (mail) 51 WINBURN WAY(delivery)

ASHLAND OR 97520 541/488-5587 (voice) 541/488-6006 (fax)

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TABLE OF CONTENTS PAGE PART I – BID & CONTRACT DOCUMENTS 7-29 Advertisement for Bids ................................................................................................................ 7-8 Proposal & Bid Schedule ........................................................................................................... 9-16 Performance & Payment Bond ................................................................................................ 17-18 Bid Bond .......................................................................................................................................19 Contract Form .......................................................................................................................... 20-21 GENERAL REQUIREMENTS, PART 00710 .................................................................... 30-78 PART II – TECHNICAL SPECIFICATIONS DIVISION 1 GENERAL REQUIREMENTS

01010 SUMMARY OF WORK 01011 CONTRACT TIME 01014 WORK SEQUENCE 01015 CONTRACTOR’S USE OF PREMISES 01050 SURVEY INFORMATION 01060 SAFETY AND HEALTH 01071 STANDARD REFERENCES 01200 PROJECT MEETINGS 01300 SUBMITTALS 01310 CONSTRUCTION SCHEDULE 01380 PHOTOGRAPHS 01400 QUALITY CONTROL 01410 TESTING LABORATORY SERVICES 01500 CONTRACTOR’S UTILITIES 01560 ENVIRONMENTAL CONTROLS 01605 SHIPMENT, PROTECTION AND STORAGE 01660 EQUIPMENT AND SYSTEM PERFORMANCE AND OPERATIONAL TESTING 01662 COMMISSIONING 01664 TRAINING 01700 RESTORATION OF IMPROVEMENTS 01705 PROSECUTION, PROGRESS AND COMPLETION OF WORK 01710 FINAL CLEANUP 01720 RECORD DRAWINGS 01730 OPERATING AND MAINTENANCE INFORMATION 01800 ENVIRONMENTAL CONDITIONS 01900 SEISMIC ANCHORAGE AND BRACING REQUIREMENTS 01999 REFERENCE FORMS

DIVISION 2 SITE CONSTRUCTION

02100 SITE PREPARATION 02200 EARTHWORK 02270 EROSION, SEDIMENTATION, AND DUST CONTROL 02350 SHEETING, SHORING, AND BRACING 02360 AUGERCAST PILES 02951 TREE PROTECTION

DIVISION 3 CONCRETE 03200 CONCRETE REINFORCEMENT 03300 CAST-IN-PLACE CONCRETE 03600 GROUT

DIVISION 4 MASONRY

04200 UNIT MASONRY

DIVISION 5 METALS 05501 ANCHOR BOLTS 05505 MISCELLANEOUS METALWORK 05530 GRATING 05910 HOT-DIP ZINC COATING 05911 MECHANICAL ZINC COATING

DIVISION 9 FINISHES

09900 COATING SYSTEMS DIVISION 11 EQUIPMENT

11324 SUBMERSIBLE SUMP PUMPS 11382 A PERISTALTIC CHEMICAL METERING PUMPS 11382 B PERISTALTIC HOSE TYPE SODA ASH METERING PUMPS 11733 TEMPORARY SODIUM HYPOCHLORITE FEED SYSTEM

DIVISION 13 SPECIAL CONSTRUCTION

13236 FIBERGLASS REINFORCED PLASTIC (FRP) GRATING DIVISION 15 MECHANICAL

15050 PIPING SYSTEMS 15061 STEEL PIPE 15064 PLASTIC PIPE 15067 STAINLESS STEEL PIPING 15095 PIPING APPURTENANCES 15096 PIPE HANGERS AND SUPPORTS 15110 ECCENTRIC PLUG VALVES 15250 INSULATION FOR EXPOSED PIPING AND EQUIPMENT 15400 PLUMBING

DIVISION 16 ELECTRICAL

16000 GENERAL REQUIREMENTS FOR ELECTRICAL WORK 16030 ELECTRICAL ACCEPTANCE TESTING 16110 RACEWAYS, BOXES, AND SUPPORTS 16120 600 VOLT CONDUCTORS, WIRE, AND CABLE 16140 WIRING DEVICES 16175 MISCELLANEOUS ELECTRICAL DEVICES 16855 ELECTRICAL HEAT TRACING FREEZE PROTECTION SYSTEMS

DIVISION 17 INSTRUMENTATION 17000 GENERAL REQUIREMENTS FOR INSTRUMENTATION AND CONTROL 17030 PROCESS INSTRUMENTATION AND CONTROL TESTING 17110 INSTRUMENT AND CONTROL PANELS 17120 ANNUNCIATOR SYSTEMS 17130 POWER SUPPLY AND CONDITIONING EQUIPMENT 17200 INSTRUMENT INDEX 17211 PROCESS TAPS AND PRIMARY ELEMENTS 17212 TRANSMITTERS 17216 PROCESS SWITCHES 17271 SIGNAL CONDITIONING MODULES 17275 MISCELLANEOUS PANEL INSTRUMENTS 17310 PROGRAMMABLE LOGIC CONTROLLER (PLC) 17315 CONTROL SYSTEM PROGRAMMING AND DOCUMENTATION 17900 CONTROL STRATEGIES

Appendix A, Prevailing Wage Rates Website Reference ...............................................................79

PART III – PLANS – BOUND SEPARATELY GENERAL 1 G1 LOCATION MAP, VICINITY MAP, AND INDEX OF DRAWINGS 2 G2 ABBREVIATIONS, DESIGNATION SYSTEMS AND NOTES 3 G3 STANDARD SYMBOLS 4 G4 SITE PLAN AND PLANT PIPING CIVIL 5 C101 SITE PLAN 6 C102 CREEK CROSSING CONDUIT 7 C103 PIPING PLAN AND SECTIONS 8 C104 STREAM CROSSING SECTION AND ENERGY DISSIPATION DETAIL 9 C105 DETAILS DEMOLITION 10 D101 CHLORINE BUILDING DEMOLITION PLAN - 1 11 D102 CHLORINE BUILDING DEMOLITION PLAN - 2 PROCESS 12 P1 PROCESS SYMBOLS 13 P2 SYMBOLS AND GENERAL NOTES 14 P3 ABBREVIATIONS 15 P101 HYPOCHLORITE CONVERSION - 1 16 P102 HYPOCHLORITE CONVERSION - 2 17 P103 METERING SYSTEM 18 P104 SODA ASH FEED SYSTEM STRUCTURAL 19 S1 GENERAL NOTES 20 S2 CONCRETE STANDARD DETAILS - 1 21 S3 CONCRETE STANDARD DETAILS - 2 22 S301 CHLORINE BUILDING PLAN MECHANICAL 23 M301 HYPOCHLORITE FILL, VENT, AND OVERFLOW PIPING 24 M302 CHLORINE EFFLUENT PIPING 25 M303 CHEMICAL FEED PIPING PLAN - 1 26 M304 CHEMICAL FEED PIPING PLAN - 2 27 M305 SODA ASH FEED SYSTEM ELECTRICAL 28 E1 ELECTRICAL ABBREVIATIONS AND SYMBOLS 29 E2 ELECTRICAL STANDARD DETAILS 30 E101 CHLORINE BUILDING ELECTRICAL PLAN - SINGLE LINE 31 E102 CHEMICAL BUILDING ELECTRICAL PANEL L-10 32 E303 CHEMICAL FEED PLAN INSTRUMENTATION 33 N1 STANDARD INSTRUMENTATION DETAILS 1 34 N2 STANDARD INSTRUMENTATION DETAILS 2 35 N11 CONTROL PANEL LAYOUT 36 N21 CONTROL PANEL WIRING DIAGRAM 1 37 N22 CONTROL PANEL WIRING DIAGRAM 2 38 N23 CONTROL PANEL WIRING DIAGRAM 3 39 N24 CONTROL PANEL WIRING DIAGRAM 4 40 N24 CONTROL PANEL WIRING DIAGRAM 4

FOREWARD

The documents and forms which are attached, or for which provisions are made, must be used in submitting proposals for the Water Treatment Plant Process Improvements for the City of Ashland, Oregon. These bid and contract documents, specifications, and plans, although bound separately, are made a part of the complete document with the same force and effect as though all parts and plans referred to were under one binding. Should addenda to the specifications become necessary and be issued prior to the date of receiving bids, they shall be deemed a part of the Special Provisions. This project is funded by the City of Ashland.

PART I

BID & CONTRACT DOCUMENTS

CITY OF ASHLAND DEPARTMENT OF PUBLIC WORKS

ASHLAND, OREGON

ADVERTISEMENT FOR BIDS

Sealed proposals addressed to the City of Ashland, Oregon, and endorsed the “Ashland Water Treatment Plant Process Improvements” will be received at the Siskiyou Conference Room located at 51 Winburn Way (mailing address: 20 E. Main Street, Ashland OR 97520), until 1:30 PM on November 1st, 2007, at which time proposals will be publicly opened and read. If the total amount of the contract exceeds $75,000, the award of the contract must be approved by the Local Contract Review Board. A contract for work will be awarded or bids may be rejected, separately or entirely, within thirty (30) days after opening. The project duration is 100 days from Notice to Proceed issuance. The work shall consist of supplying all labor, equipment, and materials necessary to construct improvements including but not limited to the following approximate quantities for major work items:

Sodium hypochlorite conversion 115 feet of overflow piping including collection box, pipe supports, and ancillary

equipment. 52 feet of 30” piping across the creek including pipe supports and structural

requirements 102 feet of new 30” waste piping including pipe supports. Installation of new sump pumps and miscellaneous waste piping improvements. Chemical feed piping improvements including the installation of 50 feet of 10” steel

piping over the creek to be used as conduit to for chemical feed piping. Installation of new soda ash feed system New valving and improvements at water treatment plant waste pond Installation of new 24” magmeter and 24” transit time meter including all ancillary

instrumentation and electrical equipment. Providing a Temporary Hypochlorite Feed System

Plans, specifications, and documents may be examined at: 1. City Engineering Office

City of Ashland 51 Winburn Way 20 E Main Street (mailing Address) Ashland OR 97520 541/488-5347

2. Medford Builders Exchange 305 N Bartlett Medford OR 97501 541/773-5327

3. Grants Pass Builders Exchange 910-B SW 6th Street Grants Pass OR 97526 541/479-5526

4. Klamath Builders Exchange 725 Main Street Room 214 Klamath Falls OR 97061 541/882-9480

5. Daily Journal of Commerce Plan Center 2840 NW 35th Avenue Portland, OR 97296 503/274-0624 503/274-2616 FAX

A mandatory pre-bid conference will be held at the Community Development Building, Siskiyou Conference Room, 51 Winburn Way, Ashland, Oregon at 1:30 PM October, 18th, 2007. All bidders are encouraged to attend this meeting. Copies of the plans and specifications may be obtained at the City Engineering Office, 51 Winburn Way, Ashland Oregon. No bid shall be received or considered unless the bidder is registered with the Construction Contractor’s Board. There is a charge of $50.00 for the plans and specifications. This is a non-refundable charge. Bidders shall pre-qualify as provided by ORS Chapter 279C.430 and in accordance with the Standard Specifications for Public Works Construction, Oregon Chapter of APWA. Pre-qualification applications must be received by the City of Ashland at least five days prior to the opening of the bids. Contractor or Sub-Contractor do not need to be licensed under ORS 468A.720 (No asbestos removal). All projects in excess of $50,000.00 require the Contractor to pay prevailing wage rates. No bid shall be considered unless the bid contains a statement by the bidder as a part of the bid that the provisions of ORS 279C.800 through 279C.870 Prevailing Wage Rates will be complied with. All projects require the Contractor to provide a “Performance” bond and a “Payment” bond, each equal to the total amount of the contract. In addition, the Contractor is required to pay a fee to the Commissioner of the Bureau of Labor and Industries pursuant to the provisions of ORS 279C.825 and the administrative rule of the commissioner. The fee is one-tenth of one percent of the price of this Contract, but not less than $100 nor more than $5,000, regardless of the Contract price. Contractor is required to read the ORS 279 subchapter A and ORS 279 subchapter C. Contractor is also required to read City of Ashland’s Public Contracting rules as found in the Ashland Municipal Code, Chapter 2.50, “Public Contracts.” All public contracts that exceed $75,000 must be approved by the Local Contract Review Board (i.e. City Council) prior to award.

Contractors awarded a contract must provide proof of required insurance (as required in the City’s contract form) at the time of the execution of the contract. A contract is not accepted unless such proof of insurance is provided. The City of Ashland reserves the right to reject for any good cause any or all bids, waive formalities, or to accept any bid which appears to serve the best interests of the City. By Order of the City Council Ashland, Oregon //ss Paula C. Brown, P.E. Public Works Director/ City Engineer

PROPOSAL Mayor & City Council Ashland, Oregon The undersigned bidder declares that the bidder has received, read and understood all bid documents; received, read and understood all addenda; the bidder has taken no exceptions other than those clearly stated in this proposal; the bidder will be liable for increased costs (and attorney fees) for retaining a replacement bidder if the undersigned bidder is awarded the contract but refuses to sign the contract; the bidder has examined the plans and specifications, has visited the site, and made such investigation as is necessary to determine the character of the materials and conditions to be encountered in the work and that if this Proposal is accepted, the bidder will contract with the City of Ashland, Oregon for the construction of the proposed improvement in a form of contract contained in the bid documents, will provide the necessary equipment, materials, tools, apparatus, and labor, in accordance with the plans and specifications on file at the City Engineering Office, Ashland, Oregon, under the following conditions: 1. It is understood that all the work will be performed under a lump sum or unit price basis and that for the lump sum or unit price all services, materials, labor, equipment, and all work necessary to complete the project in accordance with the plans and specifications shall be furnished for the said lump sum or unit price named. It is understood that the quantities stated in connection with the price schedule for the contract are approximate only and payment shall be made at the unit prices named for the actual quantities incorporated in the completed work. If there shall be an increase in the amount of work covered by the lump sum price, it shall be computed on a basis of “extra work” for which an increase in payment will have been earned and if there be a decrease in the lump sum payment, it shall be made only as a result of negotiation between the undersigned and the Owner. Furthermore, it is understood that any estimate with respect to time, materials, equipment, or service which may appear on the plans or in the specifications is for the sole purpose of assisting the undersigned in checking the undersigned’s own independent calculations and that at no time shall the undersigned attempt to hold the Owner, the Engineer, or any other person, firm or corporation responsible for any errors or omissions that may appear in any estimate. 2. The undersigned will furnish the bonds required by the specifications and comply with all the laws of the Federal Government, State of Oregon, and the City of Ashland which are pertinent to construction contracts of this nature even though such laws or municipal ordinances may not have been quoted or referred to in these specifications. 3. All items for the contract for which forms are provided in the bid documents have been completed in full by the showing of a lump sum price or prices for each and every item and by the showing of other information indicated by the proposal form. The undersigned submits the unit prices set forth as those at which the bidder will perform the

work involved. The extensions in the column headed “Total” are made up for the sole purpose of facilitating comparison of bids and if there are any discrepancies between the unit prices and the totals shown, the unit prices shall govern. 4. The undersigned agrees that the “Time of Completion” shall be as defined in the specifications and that the bidder will complete the work within the number of consecutive calendar days stated for each schedule after “Notice to Proceed” has been issued by the Owner.

Bidder furthermore agrees to pay as liquidated damages, for each calendar day thereafter, the amounts shown in Subsection 00180.50 of the Special Provisions, for each day the project remains incomplete.

5. The undersigned, as bidder, acknowledges that addenda(s) numbered through have been received by the bidder and have been examined as part of the contract documents. 6. If the proposed bid price will exceed $50,000.00 the undersigned, as bidder, acknowledges that provisions of ORS 279C.800 – 279C.870 relating to workers on public works to be paid not less than prevailing rate of wage shall be included in the contract, or in the alternative, if the project is to be funded with federal funds and is subject to the Davis-Bacon Act (40 U.S.C. §276a) bidder agrees to comply with the Davis-Bacon Act requirements. 7. Instructions for First-Tier Subcontractors Disclosure. Bidders are required to disclose information about certain first-tier subcontractors (those subcontractors contracting directly with the bidder) when the contract price exceeds $75,000 (see ORS 279C.370). Specifically, when the contract amount of a first-tier subcontractor is greater than or equal to: (i) 5% of the project bid, but at least $15,000, or (ii) $350,000 regardless of the percentage, you must disclose the following information about that subcontract within two working hours of bid closing:

7.1 The subcontractor’s name and address; 7.2 The subcontractor’s Construction Contractor Board registration number, if

one is required, and; 7.3 The subcontract dollar value.

If you will not be using any subcontractors that are subject to the above disclosure requirements, you are required to indicate “NONE” on the form. THE CITY MAY REJECT A BID IF THE BIDDER FAILS TO SUBMIT THE DISCLOSURE FORM WITH THIS INFORMATION WITHIN TWO HOURS OF BID CLOSING.

To determine disclosure requirements, the City recommends that you disclose subcontract information for any subcontractor as follows: 1) Determine the lowest possible contract price. That price will be the base bid amount

less all alternate deductive bid amounts (exclusive of any options that can only be exercised after contract award).

2) Provide the required disclosure information for any first-tier subcontractor whose

potential contract services (i.e., subcontractor’s base bid amount plus all alternate additive bid amounts, exclusive of any options that can only be exercised after contract award) are greater than or equal to: (i) 5% of the lowest contract price, but at least $15,000, or (ii) $350,000 regardless of the percentage. Total all possible work for each subcontractor in making this determination (e.g., if a subcontractor will provide $15,000 worth of services on the base bid and $40,000 on an additive alternate, then the potential amount of subcontractor’s services is $55,000. Assuming that $55,000 exceeds 5% of the lowest contract price, provide the disclosure for both the $15,000 services and the ($40,000 services).

The disclosure should be submitted on the following form:

City of Ashland

FIRST-TIER SUBCONTRACTOR DISCLOSURE FORM (As Required by ORS 279C.370 and OAR 137-049-360)

Water Treatment Plant Process Improvements PROJECT 2006-02 NUMBER

Bid Closing Date: November 1, 2007

NAME OF SUBCONTRACTOR CATEGORY OF WORK DOLLAR VALUE 1.

2.

3

4

5

6

7

8

9

10

* Attach additional pages if needed.

BID SCHEDULE PROJECT NAME

Project No. 2006-02 NO DESCRIPTION QTY. UNIT

UNIT PRICE

(FIGURES) AMOUNT

1

Mobilization for Dollars 1 LS

$ $

2

Sodium Hypochlorite Conversion. Including all new hypochlorite feed piping, peristaltic pumps, tanks, containment, ancillary equipment, Temporary hypochlorite feed system, electrical and Instrumentation for Dollars 1 LS

$ $

3

Installation of new 30” waste line and all necessary pipe supports. for Dollars 102 LF

$ $

4

Installation of new sump pump and modifications to existing 6” Drain and 8” Filter to Waste Piping for Dollars 1 LS

$ $

5

30” waste pond crossing across creek including all necessary piles and supports for Dollars 58 LF

$ $

6

Waste pond improvements including new valving, riprap and in pond work. for Dollars 1 LS

$ $

7

New 24” magmeter and 24” transit time meter including all electrical and instrumentation work for Dollars

1 LS

$ $

8

Site work including but not limited to fence relocation, new elevated walkway and gate, for Dollars 1 LS

$ $

BASE BID TOTAL $

ADDITIVE BID SCHEDULE PROJECT NAME

Project No. 2001-12

The following items are ADDITIVE BID ITEMS. The Award of the contract is based on the BASE BID TOTAL. The City of Ashland unilaterally reserves the option to require BIDDER to perform or not perform any combination of the work listed in the ADDITIVE BID ITEMS. ADDITIVE BID ITEMS are complete costs to perform the work, no other allowances such as project management will be paid in addition to the ADDITIVE BID PRICE. ADDITIVE A Installation of 10” Steel Chemical feed line conduit Including pipe supports, heat tracing and fabricated end box for Dollars 33 LF

$ $

ADDITIVE B

Installation of overflow weir and collection box with attachment to 10” Overflow Line for Dollars 1 LS

$ $

Installation of 10” Overflow Line and all necessary pipe supports for Dollars 136 LF

$ $

ADDITIVE C

Installation of new soda ash feed system including three new metering pumps, two new transfer pumps, new metering tank and two new transfer pumps, including all necessary piping and appurtenances For Dollars

1 LS

$ $

The City reserves the right to reject any and all bids, waive formalities, or accept any bid which appears to serve the best interests of the City in accordance with ORS 279B.100. The foregoing prices shall include all labor, materials, equipment, overhead, profit, insurance, and all other incidental expenses to cover the finished work of the several kinds called for. Unit prices are to be shown in both words and figures. In case of discrepancy, the amounts shown in words will govern. Upon receipt of written notice of the acceptance of this bid, Bidder shall execute the formal contract attached within ten days, deliver surety bond or bonds as required, and deliver required proof of insurance. The bid security attached in the sum of five percent of the total price for the bid or combination of bids is to become the property of the Owner in the event the contract and bond are not executed within the time above set forth as liquidated damages for the delay and additional expense to the Owner caused thereby. The Bidder is or is not ____ a resident Bidder as defined in ORS 279A.120. Firm Name of Bidder Signature of Bidder

Printed Name of Bidder

Official Title

State of Incorporation CCB Number Dated this day of 2007.

Name of Bidder

Address

Telephone No.

BID BOND We, the undersigned, as Principal, and as Surety, are held and firmly bound to City of Ashland, Oregon as OWNER, in the penal sum of for the payment of which jointly and severally bind ourselves, our successors, and assigns. Signed this day of , 20 The condition of the above obligation is such that whereas the Principal has submitted to the City of Ashland, Oregon, a certain BID, attached and made a part of this BOND, to enter into a contract in writing, for the proposal of Water Treatment Plant Process Improvements NOW, THEREFORE,

(a) If this BID shall be rejected, or; (b) If this BID shall be accepted and the Principal shall execute and deliver a

contract in the Form of Contract attached (properly completed in accordance with the BID) and furnish a BOND for the faithful performance of the contract, and for the payment of all persons performing labor or furnishing materials in connection with the contract, and shall in all respects perform the agreement created by the acceptance of the BID, then this obligation shall be void, otherwise the same shall remain in force and effect; it being expressly understood and agreed that the liability of the Surety for any and all claims under this BOND shall, in no event, exceed the penal amount of this obligation as stated.

The Surety, for value received, stipulates and agrees that the obligations of the

Surety and its BOND shall be in no way impaired or affected by any extension of the time within which the OWNER may accept such BID; and the Surety waives notice of any such extension.

(L.S.) Principal Surety By: IMPORTANT – Surety companies executing BONDS must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State of Oregon.

PERFORMANCE BOND The undersigned , as principal, further referred to in this bond as Contractor, and , as surety, further referred to in this bond as Surety, are jointly and severally bound unto City of Ashland, as obligee, further referred to in this bond as City, in the sum of Dollars ($ ). Contractor and City have entered into a written contract dated , for the following project: Water Treatment Plant Process Improvements. This contract is further referred to in this bond as the Contract and is incorporated into this bond by this reference. The conditions of this bond are:

1. If Contractor faithfully performs the Contract in accordance with the plans,

specifications and conditions of the contract within the time prescribed by the

Contract, as required by ORS 279C. 380 through 279C.385, then this

obligation is null and void; otherwise it shall remain in full force and effect.

2. If Contractor is declared by City to be in default under the Contract, the

Surety shall promptly remedy the default, perform all of Contractor’s

obligations under the contract in accordance with its terms and conditions and

pay to City all damages that are due under the Contract.

3. This bond is subject to claims under ORS 279C.380 through 279C.390.

4. This obligation jointly and severally binds Contractor and Surety and their

respective heirs, executors, administrators, successors.

5. Surety waives notice of modification of the Contract or extension of the

Contract time.

6. Nonpayment of the bond premium shall not invalidate this bond.

7. The bond number and the name, address, and telephone number of the agent

authorized to receive notices concerning this bond are as follows.

Bond Number:

Bond Agent:

Address:

Telephone:

SIGNED this day of 2007.

CONTRACTOR:

By:

Title:

Legal Address:

Attest:

Corporate Secretary

WITNESS:

(Corporate Seal)

SURETY:

By:

Title:

Legal Address:

Attest:

WITNESS:

(Corporate Seal)

Corporate Secretary

PAYMENT BOND The undersigned , as principal, further referred to in this bond as Contractor, and , as surety, further referred to in this bond as Surety, are jointly and severally bound unto City of Ashland, as obligee, further referred to in this bond as City, in the sum of Dollars ($ ). Contractor and City have entered into a written contract dated , for the following project: Water Treatment Plant Process Improvements. This contract is further referred to in this bond as the Contract and is incorporated into this bond by this reference. The conditions of this bond are:

1. If Contractor faithfully performs the Contract within the time prescribed by the

Contract, and promptly makes payment to all claimants, as defined in ORS

279C.600 through 279C.620, then this obligation is null and void; otherwise it

shall remain in full force and effect.

2. If Contractor is declared by City to be in default under the Contract, the Surety

shall promptly remedy the default, perform all of Contractor’s obligations under

the contract in accordance with its terms and conditions and pay to City all

damages that are due under the Contract.

3. This bond is subject to claims under ORS 279C.600 through 279C.620.

4. This obligation jointly and severally binds Contractor and Surety and their

respective heirs, executors, administrators, successors.

5. Surety waives notice of modification of the Contract or extension of the Contract

time.

6. Nonpayment of the bond premium shall not invalidate this bond.

7. The bond number and the name, address, and telephone number of the agent

authorized to receive notices concerning this bond are as follows:

Bond Number:

Bond Agent:

Address:

Telephone:

SIGNED this day of 2007.

CONTRACTOR:

By:

Title:

Legal Address:

Attest:

Corporate Secretary

WITNESS:

(Corporate Seal)

SURETY:

By:

Title:

Legal Address:

Attest:

WITNESS:

(Corporate Seal)

Corporate Secretary

CERTIFICATIONS OF REPRESENTATION

Contractor, under penalty of perjury, certifies that:

(a) The number shown on this form is its correct taxpayer ID (or is waiting for the number to be issued to it; and

(b) Contractor is not subject to backup withholding because (i) it is exempt from backup withholding or (ii) it has not been notified by the Internal Revenue Service (IRS) that it is subject to backup withholding as a result of a failure to report all interest or dividends, or (iii) the IRS has notified it that it is no longer subject to backup withholding. Contractor further represents and warrants to City that (a) it has the power and authority to enter into and perform the work, (b) the Contract, when executed and delivered, shall be a valid and binding obligation of Contractor enforceable in accordance with its terms, and

(c) The work under the Contract shall be performed in accordance with the highest professional standards, and

(d) Contractor is qualified, professionally competent and duly licensed to perform the work. Contractor also certifies under penalty of perjury that its business is not in violation of any Oregon tax laws, and it is a corporation authorized to act on behalf of the entity designated above and authorized to do business in Oregon or is an independent contractor as defined in the contract documents, and has checked four or more of the following criteria:

______ (1) I carry out the labor or services at a location separate from my residence or is in a specific portion of my residence, set aside as the location of the business.

______ (2) Commercial advertising or business cards or a trade association membership are purchased for the business.

______ (3) Telephone listing is used for the business separate from the personal residence listing.

______ (4) Labor or services are performed only pursuant to written contracts.

______ (5) Labor or services are performed for two or more different persons within a period of one year.

______ (6) I assume financial responsibility for defective workmanship or for service not provided as evidenced by the ownership of performance bonds, warranties, errors and omission insurance or liability insurance relating to the labor or services to be provided.

_________________________ ___________________ Contractor Date

CITY OF ASHLAND CONTRACT FOR PUBLIC WORKS CONSTRUCTION

Contract made this day of , , between the City of Ashland, (“City”) and “(Contractor”).

City and Contractor agree:

1. Contract Documents: This contract is made as a result of an Advertisement for Bid issued by City for the Water Treatment Plant Process Improvements. Contractor was awarded the bid as the lowest responsible bidder. In the event of any inconsistencies in the terms of this contract, the contract documents defined in the Advertisement for Bid and Contractor’s bid, this contract shall take precedence over the contract documents, which shall take precedence over the bid. This contract and attached exhibits constitute the entire agreement between the parties. No waiver, consent, or modification or change of terms of this contract shall bind either party unless in writing and signed by both parties. Such waiver, consent, modification or change, if made, shall be effective only in the specific instance and for the specific purpose given. There are no understandings, agreements, or representations, oral or written, not specified herein regarding this contract. Contractor, by signature of its authorized representative, hereby acknowledges that he/she has read this contract, understands it, and agrees to be bound by its terms and conditions. 2. Scope: Contractor shall begin and complete the project described in the contract documents within the time prescribed in the contract documents. The following exceptions, alterations, or modifications to the contract documents are incorporated into this contract: 3. Price & Payment: City shall pay Contractor amounts earned under the contract. All payments will be made at the times and in the manner provided in the contract documents. 4. Performance and Payment Bonds: Contractor shall, within five days after execution of the contract and prior to doing any work under the contract, furnish bonds to the City of Ashland in a form and with a surety satisfactory to City in the penal sum of conditioned upon the faithful payment and performance of this contract upon the part of the Contractor as required by ORS 279C.380. 5. Indemnification: Contractor agrees to defend, indemnify and save City, its officers, employees and agents harmless from any and all losses, claims, actions, costs, expenses, judgments, subrogations, or other damages resulting from injury to any person (including injury resulting in death,) or damage (including loss or destruction) to property, of whatsoever nature arising out of or incident to the performance of this contract by Contractor (including but not limited to, Contractor's employees, agents, and others designated by Contractor to perform work or services attendant to this contract.) Contractor shall not be held responsible for any losses, expenses, claims, subrogations, actions, costs, judgments, or other damages, directly, solely, and approximately caused by the negligence of City.

6. Insurance: Contractor shall, at its own expense, at all times during the term of this agreement, maintain in force: 6.1 General Liability. A comprehensive general liability policy including coverage for contractual liability for obligations assumed under this Contract, blanket contractual liability, products and completed operations, owner's and contractor's protective insurance and comprehensive automobile liability including owned and non-owned automobiles. The liability under each policy shall be a minimum of $500,000 per occurrence (combined single limit for bodily injury and property damage claims) or $500,000 per occurrence for bodily injury and $100,000 per occurrence for property damage. Liability coverage shall be provided on an "occurrence" not "claims" basis. 6.2 Worker’s Compensation. Worker’s compensation insurance in compliance with ORS 656.017, which requires subject employers to provide Oregon workers’ compensation coverage for all their subject workers. 6.3 Automobile Liability. Automobile liability insurance with a combined single limit, or the equivalent, of not less than Enter one: $200,000, $500,000, $1,000,000, or Not Applicable for each accident for Bodily Injury and Property Damage, including coverage for owned, hired or non-owned vehicles, as applicable. The City of Ashland, its officers, employees and agents shall be named as additional insureds on each required insurance policy. Contractor shall submit certificates of insurance acceptable to the City with the signed contract prior to the commencement of any work under this agreement. These certificates shall contain provision that coverage afforded under the policies can not be canceled and restrictive modifications cannot be made until at least 30 days prior written notice has been given to City. Insuring companies or entities are subject to the City’s acceptance. If requested, complete copies of insurance policies, trust agreements, etc. shall be provided to the City. The Contractor shall be financially responsible for all pertinent deductibles, self-insured retentions and/or self-insurance. 7. Compliance with Law: 7.1. This contract will be governed by and construed in accordance with laws of the State of Oregon. Contractor shall promptly observe and comply with all present and future laws, orders, regulations, rules and ordinances of federal, state, City and city governments with respect to the services including, but not limited to, provisions of ORS 279C.505, 279C.515, 279C.520 and 279C.530. 7.2. Pursuant to ORS 279C.520(2) any person employed by Contractor who performs work under this contract shall be paid at least time and a half pay for all overtime in excess of 40 hours in any one week, except for persons who are excluded or exempt from overtime pay under ORS 653.010 to 653.261 or under 29 U.S.C. Sections 201 to 209. 7.3. Contractor is a "subject employer" as defined in ORS 656.005 and shall comply with ORS 656.017. Prior to commencing any work, Contractor shall certify to City that Contractor has workers' compensation coverage required by ORS Chapter 656. If Contractor is a carrier insured employer, Contractor shall provide City with a certificate of insurance. If Contractor is a self-insured employer, Contractor shall provide City with a certification from the Oregon Department of Insurance and Finance as evidence of Contractor's status.

7.4. Any claim, action, suit or proceeding (collectively, “the claim”) between the City (and/or any other or department of the State of Oregon) and the Contractor that arises from or relates to this contract shall be brought and conducted solely and exclusively within the Circuit Court of Jackson County for the State of Oregon. If, however, the claim must be brought in a federal forum, then it shall be brought and conducted solely and exclusively within the United States District Court for the District of Oregon filed in Jackson County, Oregon. Contractor, by signature herein of its authorized representative, hereby consents to the in personam jurisdiction of said courts. In no event shall this section be construed as a waiver by City of any form of defense or immunity, based on the Eleventh Amendment to the United States Constitution, or otherwise, from any claim or from the jurisdiction. 8. Default: A default shall occur under any of the following circumstances:

8.1 If the Contractor fails to begin the work under contract within the time specified, or fails to perform the work with sufficient workers or equipment or with sufficient materials to insure the prompt completion of the project, or shall neglect or refuse to remove materials or perform anew such work as shall be rejected as defective or unsuitable, or shall discontinue the prosecution of the work.

8.2 If the Contractor shall become insolvent or declared bankrupt, or commit any act of bankruptcy or insolvency, or allow any final judgment to stand against the Contractor unsatisfied for a period of forty-eight (48) hours, or shall make an assignment for the benefit of creditors.

8.3 From any other cause whatsoever, shall not carry on the work in an acceptable manner.

8.4 Contractor commits any material breach or default of any covenant, warranty, certification, or obligation it owes under the Contract;

8.5 Contractor loses its QRF status pursuant to the QRF Rules or loses any license, certificate or certification that it required to perform the Services or to qualify as a QRF;

8.6 Contractor attempts to assign rights in, or delegate duties under the Contract. 9. Remedies: In addition to the rights and remedies to which the City may be entitled by law for the enforcement of its rights under this contract, City shall have full power and authority, without violating this contract, to take prosecution of the work from the Contractor, and appropriate or use any or all of the materials and equipment on the ground that may be suitable and acceptable and may cause a contract for the completion of this contract according to its terms and provisions, or use such methods as required for the completion of the contract, in any acceptable manner. All costs and charges incurred by the City together with the costs of completing the work under the contract, shall be deducted from any money due or which shall become due the Contractor. In case the expense so incurred by the City shall be less than the sum which would have been payable under the contract if it had been completed by the Contractor, then the Contractor shall be entitled to received the difference less any damages for delay to which the City may be entitled. In case such expense shall exceed the sum which would have been payable under the contract, the Contractor and the surety shall be liable and agree to and shall pay the City the amount of the excess with damages for delay of performance, if any.

10. Termination: 10.1 Mutual consent. This contract may be terminated at any time by mutual consent of both parties. 10.2 City’s Convenience. This contract may be terminated at any time by City upon 30 days’ notice in writing and delivered by certified mail or in person. 10.3 For Cause. City may terminate or modify this contract, in whole or in part, effective upon delivery of written notice to Contractor, or at such later date as may be established by City under any of the following conditions: a. If City funding from federal, state, county, or other sources is not

obtained and continued at levels sufficient to allow for the purchase of the indicated quantity of services;

b. If federal or state regulations or guidelines are modified, changed or interpreted in such a way that the services are no longer allowable or appropriate for purchase under this contract or are no longer eligible for the funding proposed for payments authorized by this contract; or

c. If any license or certificate required by law or regulation to be held by Contractor to provide the services required by this contract for any reason denied, revoked, suspended, or not renewed.

10.4 For Default or Breach. a. Either City or Contractor may terminate this contract in the event of a

breach of the contract by the other. Prior to such termination the party seeking termination shall give to the other party written notice of the breach and intent to terminate. If the party committing the breach has not entirely cured the breach within 15 days of the date of the notice, or within such other period as the party giving notice may authorize or require, then the contract may be terminated at any time thereafter by a written notice of termination by the party giving notice.

b. Time is of the essence for Contractor’s performance of each and every obligation and duty under this contract. City by written notice to Contractor of default or breach, may at any time terminate the whole or any part of this contract if Contractor fails to provide services called for by this contract within the time specified herein or in any extension thereof.

c. The rights and remedies of City provided in this subsection (10.4) are not exclusive and are in addition to any other rights and remedies provided by law or under this contract.

10.5 Obligation/Liability of Parties: Termination or modification of this contract pursuant to subsections 10.1, 10.2, 10.3 and 10.4 above shall be without prejudice to any obligations or liabilities or either party already accrued prior to such termination or modification. However, upon receiving a notice of termination (regardless whether such notice is given pursuant to subsections 10.1, 10.2, 10.3 and 10.4 of this section, Contractor shall immediately ceased all activities under this contract, unless expressly directed otherwise by City in notice of termination. Further, upon termination, Contractor shall deliver to City all contract documents, information, works-in-progress and other property that are or would be deliverables had the contract been completed. City shall pay Contractor for work performed prior to the termination date if such work was performed in accordance with the Contract.

11. Funds Available and Authorized: City has sufficient funds currently available and authorized for expenditure to finance the costs of this contract within the City’s fiscal year budget. Contractor understands and agrees that City’s payment of amounts under this contract attributable to work performed after the last day of the current fiscal year is contingent on City appropriations, or other expenditure authority sufficient to allow City in the exercise of its reasonable administrative discretion, to continue to make payments under this contract. In the event City has insufficient appropriations, limitations or other expenditure authority, City may terminate this contract without penalty or liability to City, effective upon the delivery of written notice to Contractor, with no further liability to Contractor. 12. Prevailing Wage Rates: The Contractor shall pay a fee equal to one-tenth of one percent (0.1 percent) of price of this Contract. The fee shall be paid on or before the first progress payment or 60 days from the date work first begins on the Contract, whichever comes first. The fee is payable to the Bureau of Labor & Industries and shall be mailed or otherwise delivered to the Bureau at the following address: Bureau of Labor & Industries Wage & Hour Division Prevailing Wage Unit 800 N.E. Oregon Street #32 Portland OR 97232 The Contractor shall fully comply with the provisions of ORS 279C.800 through 279C.870 pertaining to prevailing wage rates. 13. Living Wage Rates: If the amount of this contract is $15,964 or more, and Contractor is not paying prevailing wage for the work, Contractor must comply with Chapter 3.12 of the Ashland Municipal Code by paying a living wage, as defined in this chapter, to all employees performing work under this contract and to any subcontractor who performs 50% or more of the work under this contract. Contractor must post the attached Living Wage *- notice predominantly in areas where it will be seen by all employees. 14. Assignment and Subcontracts: Contractor shall not assign this contract without the written consent of City. Any attempted assignment without written consent of City shall be void. Contractor shall be fully responsible for the acts or omissions of any assigns or subcontractors and of all persons employed by them, and the approval by City of any assignment or subcontract shall not create any contractual relation between the assignee or subcontractor and City. Contractor may not substitute any subcontractors from the submitted list of First-Tier Subcontractor Disclosure Form without written consent of the City, or by following the procedures of ORS 279C.585 and OAR 137-049-0360. 15. Governing Law; Jurisdiction; Venue: This contract shall be governed and construed in accordance with the laws of the State of Oregon without resort to any jurisdiction’s conflict of laws, rules or doctrines. Any claim, action, suit or proceeding (collectively, "the claim") between the City (and/or any other or department of the State of Oregon) and the Contractor that arises from or relates to this contract shall be brought and conducted solely and exclusively within the Circuit Court of Jackson County for the State of Oregon. If,

however, the claim must be brought in a federal forum, then it shall be brought and conducted solely and exclusively within the United States District Court for the District of Oregon filed in Jackson County, Oregon. Contractor, by the signature herein of its authorized representative, hereby consents to the in personam jurisdiction of said courts. In no event shall this section be construed as a waiver by City of any form of defense or immunity, based on the Eleventh Amendment to the United States Constitution, or otherwise, from any claim or from the jurisdiction. 16. MERGER CLAUSE: THIS CONTRACT AND ATTACHED EXHIBITS CONSTITUTE THE ENTIRE AGREEMENT BETWEEN THE PARTIES. NO WAIVER, CONSENT, MODIFICATION OR CHANGE OF TERMS OF THIS CONTRACT SHALL BIND EITHER PARTY UNLESS IN WRITING AND SIGNED BY BOTH PARTIES. SUCH WAIVER, CONSENT, MODIFICATION OR CHANGE, IF MADE, SHALL BE EFFECTIVE ONLY IN THE SPECIFIC INSTANCE AND FOR THE SPECIFIC PURPOSE GIVEN. THERE ARE NO UNDERSTANDINGS, AGREEMENTS, OR REPRESENTATIONS, ORAL OR WRITTEN, NOT SPECIFIED HEREIN REGARDING THIS CONTRACT. CONTRACTOR, BY SIGNATURE OF ITS AUTHORIZED REPRESENTATIVE, HEREBY ACKNOWLEDGES THAT HE/SHE HAS READ THIS CONTRACT, UNDERSTANDS IT, AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS. 16. Prior Approval Required: Approval of the City of Ashland Council or Public Contracting Officer is required before any work may begin under this contract. CONTRACTOR CITY OF ASHLAND

By: By: Signature Lee Tuneberg

Finance Director

Printed Name

Its:

REVIEWED AS TO FORM: REVIEWED AS TO CONTENT:

By: By: Legal Department Date: Department Head Date: Coding:

(For City use only)

GENERAL CONDITIONS PART 1--GENERAL INFORMATION 1.01 DEFINITIONS OF WORDS AND TERMS Where used in the project manual, the following words and terms shall have the meanings indicated. The meanings shall be applicable to the singular, plural, masculine and feminine of the words and terms. Acceptance. Formal action of the Owner in determining that the Contractor’s work has been completed in accordance with the contract and in notifying the Contractor in writing of the acceptability of the work. Act of God. A cataclysmic phenomenon of nature, such as an earthquake, flood or cyclone. Rain, wind, high water, or other natural phenomenon which might reasonably have been anticipated from historical records of the general locality of the work shall not be construed as acts of God. Addenda. Supplemental written specifications or drawings issued prior to execution of the contract which modify or interpret the project manual by addition, deletion, clarification, or corrections. Bid. Offer of a bidder submitted on the prescribed form setting forth the price or prices of the work to be performed. Bidder. Individual, partnership, corporation, or a combination thereof, including joint venture agreements, offering a bid to perform the work. Construction Manager. The person designated, in writing, by the Owner to act as its representative at the construction site and to perform construction inspection services and administrative functions relating to this contract. Initial contact by the Contractor with the Owner shall be through the Construction Manager. Contract. The writings and drawings embodying the legally binding obligations between the Owner and the Contractor for completion of the work. The contract comprises the following documents:

Project Manual Volume I—Specifications Advertisement for Bids Instructions to Bidders Proposal Form Bid Bond First-Tier Subcontractor Disclosure Form Contract Performance and Payment Bond

Oregon’s Reciprocal Preference Law Prevailing Wage Rates Project Specifications Permits Property Owner Release Agreements Volume II—Project Drawings Addenda Notice of Award Notice to Proceed Change Orders Directives

Contract Drawings. The drawings included in the project manual plus those prepared by the Owner and the Contractor pursuant to the terms of the contract. They include:

1. Drawings in Volume II of the project manual. 2. Modifying drawings issued by addenda. 3. Drawings submitted by the Contractor during the progress of the work

and accepted by the Owner either as attachments to change orders or as non-modifying supplements to drawings in Volume II and drawings issued by addenda.

4. Drawings submitted by the Owner to the Contractor during the progress

of the work either as attachments to the change orders or as explanatory supplements to drawings in Volume II and drawings issued by addenda.

Contract Price. Amount payable to the Contractor under the terms and conditions of the contract based on the price given on the bidding schedule, with adjustments made in accordance with the contract. The base amount given in the bidding schedule shall be either a lump sum bid or the summation of the unit price bids multiplied by the estimated quantities set forth in the bid form. Contract Time. Number of calendar days stated in the contract for the completion of the work or portions thereof. Contractor. The individual, partnership, corporation, or combination thereof, including joint venture agreements, who enter into the contract with the Owner for the performance of the work. The term covers subcontractors, equipment and material suppliers, and their employees. Contractor’s Plant and Equipment. Equipment, material, supplies, and all other items, except labor, brought onto the site by the Contractor to carry out the work, but not to be incorporated in the work. Day. Calendar day.

Direct. Action of the Owner or Construction Manager by which the Contractor is ordered to perform or refrain from performing work under the contract. Directive. Written documentation of the actions of the Owner or Construction Manager in directing the Contractor. Equipment. Mechanical, electrical, instrumentation, or other device with one or more moving parts, or devices requiring an electrical, pneumatic, electronic, or hydraulic connection. Furnish. To deliver to the job site or other specified location any item, equipment or material. Herein. Refers to information presented in the project manual. Holidays. Legal holidays designated by the state or specifically identified in the supplementary conditions. Install. Placing, erecting, or constructing complete in place any item, equipment, or material. May. Refers to permissive actions. Owner. A public or quasi-public agency or authority, corporation, association, partnership, or individual for whom the work is to be performed. Under this contract, the Owner is identified by name in the agreement.

Owner’s Representative. The person designated in writing by the Owner to act as its agent on specified matters relating to this contract. Paragraph. For reference or citation purposes, paragraph shall refer to the paragraph, or paragraphs, called out by section number and alphanumeric designator. For example, this definition is found in paragraph 00710-1.01; permits and licenses are discussed in paragraph 00710-1.05 B. Person. The term, person, includes firms, companies, corporations, partnerships, and joint ventures. Project. The undertaking to be performed under the provisions of the contract. Project Manual. Those contract documents prepared for bidding and as amended by addenda. Provide. Furnish and install, complete in place.

Punch List. List of incomplete items of work and of items of work which are not in conformance with the contract. The list will be prepared by the Construction Manager when the Contractor (1) notifies the Construction Manager in writing that the work has been completed in accordance with the contract and (2) requests in writing that the Owner accept the work. Shall. Refers to actions by either the Contractor or the Owner and means the Contractor or Owner has entered into a covenant with the other party to do or perform the action. Shown. Refers to information presented on the drawings, with or without reference to the drawings. Specifications. That part of the contract documents consisting of written descriptions of the technical features of materials, equipment, construction systems, standards, and workmanship. Specify. Refers to information described, shown, noted or presented in any manner in any part of the contract. Submittals. The information which is specified for submission to the Construction Manager in accordance with Specification Section 01300. Substantial Completion. Sufficient completion of the project or the portion thereof to permit utilization of the project, or portion thereof for its intended purpose. Substantial completion requires not only that the work be sufficiently completed to permit utilization, but that the Owner can effectively utilize the substantially completed work. Determination of substantial completion is solely at the discretion of the Owner. Substantial completion does not mean complete in accordance with the contract nor shall substantial completion of all or any part of the project entitle the Contractor to acceptance under the contract. Substantial Completion Date. Date when the Owner puts into service the project, or that portion of the project that has been determined to be substantially complete. Will. Refers to actions entered into by the Contractor or the Owner as a covenant with the other party to do or to perform the action. Work. The labor, materials, equipment, supplies, services, and other items necessary for the execution, completion and fulfillment of the contract. 1.02 JOINT VENTURE CONTRACTOR In the event the Contractor is a joint venture of two or more contractors, the grants, covenants, provisos and claims, rights, power, privileges and liabilities of the contract shall be construed and held to be several as well as joint. Any notice, order, direct request or any communication required to be or that may be given by the Owner

or the Construction Manager to the Contractor under this contract, shall be well and sufficiently given to all persons being the Contractor if given to any one or more of such persons. Any notice, request or other communication given by any one of such persons to the Owner or the Construction Manager under this contract shall be deemed to have been given by and shall bind all persons being the Contractor. 1.03 CONTRACT REQUIREMENTS A. SUCCESSORS’ OBLIGATIONS: The grants, covenants, provisos and claims, rights, powers, privileges and liabilities obtained in the contract documents shall be read and held as made by and with, and granted to and imposed upon, the Contractor and the Owner and their respective heirs, executors, administrators, successors and assigns. B. ASSIGNMENT OF CONTRACT: The contract shall not be assigned in whole or in part without the written consent of the Owner. Involuntary assignment of the contract as caused by the Contractor being adjudged bankrupt, assignment of the contract for the benefit of Contractor's creditors or appointment of a receiver on account of Contractor’s insolvency shall be considered as failure to comply with the provisions of the contract and subject to the termination provisions contained herein. C. WAIVER OF RIGHTS: Except as herein provided, no action or want of action on the part of the Contractor, Owner, Owner’s Representative, or Construction Manager at any time with respect to the exercise of any right or remedies conferred upon them under this contract shall be deemed to be a waiver on the part of the Contractor and Owner of any of their rights or remedies. No waiver shall be effective except in writing by the party to be charged. No waiver of one right or remedy shall act as a waiver of any other right or remedy or as a subsequent waiver of the same right or remedy. D. OFFER OF ASSIGNMENT OF ANTITRUST ACTIONS: In entering into a public works contract or a subcontract to supply goods, services, or materials pursuant to a public works contract, the Contractor or subcontractor offers and agrees to assign to the awarding body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 [commencing with Section 16700] of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time the awarding body tenders final payment to the Contractor, without further acknowledgment by the parties.

E. AMENDMENT OF GENERAL CONDITIONS: These general conditions may be amended only by mutual consent of the Owner and the Contractor in writing. F. REQUESTS FOR CLARIFICATIONS Requests for clarifications specified above should go to:

Contractual Questions to: Paula C. Brown, P.E. Public Works Director / City Engineer City of Ashland 51 Winburn Way Ashland, OR 97250 (541) 488-5587 Technical Questions to: Daniel Wilson Brown and Caldwell / Project Manager 6500 S.W. Macadam, Suite 200 Portland, Oregon 97239 (503) 244-7005

1.04 LABOR STANDARDS

A. WAGES:

1. GENERAL: The Contractor and each subcontractor engaged in the work shall pay each employee an amount not less than the rate established for each trade or occupation listed in the Prevailing Wage Rates section of the project manual. An employee whose type of work is not covered by any of the classified wage rates shall be paid not less than the rate of wage listed for the classification which most nearly corresponds to the type of work to be performed.

2. STATE: The Owner has obtained from the State of Oregon, Bureau of Labor and Industries the general prevailing rate of wages in the vicinity of the work to be performed under this contract. These wage rates are maintained on file by the Owner. B. PREFERENCE FOR RESIDENT LABOR: In the employment of labor for performance of the work, the Contractor shall give preference to qualified persons residing within the general area of the work.

C. HOURS OF LABOR: Pursuant to the Oregon law, workers employed on a public works job more than eight hours in a day, or four ten hour days, or 40 hours in a week, on Saturday, Sunday or legal holidays must be paid overtime for each additional hour so worked (ORS 279.334).

D. OVERTIME WORK: Overtime and shift work may be established as a regular procedure by the Contractor with reasonable notice and written permission of the Owner. No work other than overtime and shift work established as a regular procedure shall be performed between the hours of 6:00 p.m. and 7:00 a.m. nor on Saturdays, Sundays or holidays except such work as is necessary for the proper care and protection of the work already performed or in case of an emergency. Contractor agrees to pay the costs of overtime inspection except those occurring as a result of overtime and shift work established as a regular procedure. Overtime inspection shall include inspection required during holidays, Saturdays, Sundays and weekdays between the hours of 6:00 p.m. and 7:00 a.m. Costs of overtime inspection will cover engineering, inspection, general supervision and overhead expenses which are directly chargeable to the overtime work. Contractor agrees that Owner shall deduct such charges from payments due the Contractor. 1.05 LAWS, REGULATIONS, AND PERMITS A. GENERAL: The Contractor shall give the notices required by law and comply with all laws, ordinances, rules and regulations pertaining to the conduct of the work. The Contractor shall be liable for violations of the law in connection with work provided by the Contractor. If the Contractor observes that the drawings, specifications or other portions of the project manual are at variance with any laws, ordinances, rules or regulations, he shall promptly notify the Construction Manager in writing of such variance. The Owner shall promptly review the matter and, if necessary, shall issue a change order or take any other action necessary to bring about compliance with the law, ordinance, rule or regulation in question. Contractor agrees not to perform work known to be contrary to any laws, ordinances, rules or regulations.

This contract is subject to the provisions of ORS Chapter 279 and the Owner and Contractor shall be bound by such provisions. B. PERMITS AND LICENSES: Unless otherwise specified herein, permits and licenses from governmental agencies which are necessary only for and during the prosecution of the work and the subsequent guarantee period shall be secured and paid for by the Contractor.

Permits and licenses of regulatory agencies which are necessary to be maintained after completion of the guarantee period shall be secured and paid for by the Owner. The successful bidder shall, prior to the start of work, obtain a City of Ashland Business License. Sub-contractors on the project shall also be required to have a current business license. Licenses may be acquired through the City of Ashland Utility Office during regular business hours. C. PATENTS AND ROYALTIES: The costs involved in fees, royalties, or claims for any patented invention, article, process or method that may be used upon or in a manner connected with the work under this contract or with the use of completed work by the Owner, shall be paid by the Contractor. The Contractor and his sureties shall protect and hold the Owner, the design engineer, and the Construction Manager, together with their officers, agents and employees, harmless from any and all loss, defense cost, and expenses and against any and all demands made for such fees or claims brought or made by the holder of any invention or patent. Before final payment is made on the account of this contract, the Contractor shall, if requested by the Owner, furnish acceptable proof of a proper release from all such fees or claims. Should the Contractor, his agent, employee or any of them be enjoined from furnishing or using any invention, article, material or plans supplied or required to be supplied or used under this contract, the Contractor shall promptly pay such royalties and secure the requisite licenses; or, subject to acceptance by the Owner, substitute other articles, materials or appliances in lieu thereof which are of equal efficiency, quality, finish, suitability and market value to those planned or required under the contract. Descriptive information of these substitutions shall be submitted to the Construction Manager for determination of general conformance to the design concept and the construction contract. Should the Owner elect to refuse the substitution, the Contractor agrees to pay such royalties and secure such valid licenses as may be requisite for the Owner, his officers, agents and employees or any of them, to use such invention, article, material or appliance without being disturbed or in any way interfered with by any proceeding in law or equity on account thereof. 1.06 HEADINGS Headings to parts, divisions, sections, paragraphs, sub paragraphs and forms are inserted for convenience of reference only and shall not affect the interpretation of the contract documents. 1.07 SUBCONTRACTS The Contractor shall perform with his own organization not less than one-half of the work and shall not sublet to one subcontractor more than one-third of the work without the previous written consent of the Owner.

PART 2--OWNER-CONTRACTOR RELATIONS 2.01 AUTHORITY OF OWNER A. GENERAL: The Owner, acting through the Owner’s Representative and the Construction Manager, shall have the authority to act as the sole judge of the work and materials with respect to both quantity and quality as set forth in the contract. It is expressly stipulated that the drawings, specifications and other contract documents set forth the requirements as to the nature of the completed work and do not purport to control the method of performing work except in those instances where the nature of the completed work is dependent on the method of performance. B. AUTHORITY OF OWNER’S REPRESENTATIVE:

1. GENERAL: The Owner's Representative has the authority to act on behalf of the Owner on change orders, progress payments, contract decisions, acceptability of the Contractor's work, and early possession.

2. CHANGE ORDERS: The Owner’s Representative has the authority

to accept or reject change orders proposed by either the Construction Manager or the Contractor.

3. PROGRESS PAYMENTS: The Owner’s Representative has the

authority to accept or reject requests for progress payments which have been submitted by the Contractor and recommended by the Construction Manager.

4. CONTRACT DECISIONS: Should the Contractor disagree with the

Construction Manager’s decision with respect to the contract, the Contractor may request that the Owner's Representative review the Construction Manager’s decision and make a determination on behalf of the Owner in the manner provided under paragraph 00710-2.05 F.2.

5. ACCEPTABILITY OF WORK: The Owner’s Representative has the

authority to make the final determination of the acceptability of the work as provided under paragraph 00710-7.05. The Owner’s Representative also has the authority to accept or reject the Construction Manager's recommendations regarding retention of defective work as provided in paragraph 00710-4.09 B.

6. EARLY POSSESSION: The Owner’s Representative has the

authority to take early possession in accordance with paragraph 00710-7.06.

C. AUTHORITY OF CONSTRUCTION MANAGER:

1. GENERAL: The Construction Manager is the construction site representative of the Owner employed to act as advisor and consultant to the Owner in construction matters related to the contract. The Owner has delegated his authority to the Construction Manager to make initial decisions regarding questions which may arise as to the quality or acceptability of materials furnished and work performed and as to the manner of performance and rate of progress of the work under the contract. The Construction Manager interprets the intent and meaning of the contract and makes initial decisions with respect to the Contractor's fulfillment of the contract and the Contractor's entitlement to compensation. The Contractor shall look initially to the Construction Manager in matters relating to the contract. The Construction Manager's decisions are subject to review by the Owner's Representative in accordance with paragraph 00710-2.05 F.2.

2. INSPECTION OF CONSTRUCTION: The Construction Manager shall have access to the work and to the site of the work and to the places where work is being prepared or where materials, equipment, and machinery are being obtained for the work. If requested by the Construction Manager, the Contractor shall provide the assistance necessary for obtaining such access, and shall provide information related to the inspection of construction.

3. CHANGE ORDERS: The Construction Manager has the authority to initiate or recommend change orders. Such change orders are subject to review and approval by the Owner. 2.02 RESPONSIBILITIES OF OWNER A. ATTENTION TO WORK: The Owner shall notify the Contractor in writing of the name of the Owner’s Representative and of the Construction Manager. The Construction Manager normally will be at the site of the work. During his absences, the Contractor may contact a previously designated representative of the Construction Manager. B. OWNER’S EMPLOYEES: The Owner shall be responsible for the adequacy, efficiency, and sufficiency of his employees and of any consultant, supplier or subcontractor employed by the Owner.

2.03 AUTHORITY OF CONTRACTOR A. CONTRACTOR'S REPRESENTATIVE: The Contractor shall notify the Owner in writing of the name of the person who will act as the Contractor's representative and shall have the authority to act in matters relating to this contract. This person shall have authority to carry out the provisions of the contract and to supply materials, equipment, tools and labor without delay for the performance of the work. B. CONSTRUCTION PROCEDURES: The Contractor will supervise and direct the work. He has the authority to determine the means, methods, techniques, sequences and procedures of construction, except in those instances where the Owner, to define the quality of an item of work, specifies in the contract, a means, method, technique, sequence or procedure for construction of that item of work. C. SUBCONTRACTORS: Subcontractors will not be recognized as having a direct relationship with the Owner. The persons engaged in the work, including employees of subcontractors and suppliers, will be considered employees of the Contractor and their work shall be subject to the provisions of the contract. References in the project manual to actions required of subcontractors, manufacturers, suppliers, or any person other than the Contractor, the Owner or the Construction Manager shall be interpreted as requiring that the Contractor shall require such subcontractor, manufacturer, supplier or person to perform the specified action. 2.04 RESPONSIBILITIES OF CONTRACTOR A. SUBCONTRACTORS, MANUFACTURERS AND SUPPLIERS: The Contractor shall be responsible for the adequacy, efficiency and sufficiency of subcontractors, manufacturers, suppliers and their employees. B. CONTRACTOR'S EMPLOYEES: The Contractor shall be responsible for the adequacy, efficiency and sufficiency of his employees. Workers shall have sufficient knowledge, skill and experience to perform properly the work assigned to them. C. PAYMENT FOR LABOR AND MATERIALS: The Contractor shall pay and require his subcontractors to pay any and all accounts for labor including Workers Compensation premiums, State Unemployment and Federal Social Security payments and other wage and salary deductions required

by law. The Contractor also shall pay and cause his subcontractors to pay any and all accounts for services, equipment, and materials used by him and his subcontractors during the performance of work under this contract. Such accounts shall be paid as they become due and payable. If requested by the Owner, the Contractor shall furnish proof of payment of such accounts to the Owner. D. ATTENTION TO WORK: The Contractor, acting through his representative, shall give personal attention to and shall manage the work so that it shall be prosecuted faithfully. When his representative is not personally present at the project site, his designated alternate shall be available and shall have the authority to act on the contract. E. EMPLOYEE SAFETY: The Contractor alone shall be responsible for the safety of his and his subcontractor's employees. The Contractor shall maintain the project site and perform the work in a manner which meets the Owner's responsibility under statutory and common law for the provision of a safe place to work. F. PUBLIC SAFETY AND CONVENIENCE: The Contractor shall conduct his work so as to insure the least possible obstruction to traffic and inconvenience to the general public and the residents in the vicinity of the work and to insure the protection of persons and property. No road or street shall be closed to the public except with the permission of the Construction Manager and the proper governmental authority. Fire hydrants on or adjacent to the work shall be accessible to fire fighting equipment. Temporary provisions shall be made by the Contractor to insure the use of sidewalks, private and public driveways and proper functioning of gutters, sewer inlets, drainage ditches and culverts, irrigation ditches and natural water courses. G. COOPERATION WITH CONSTRUCTION MANAGER: The Contractor, when requested, shall assist the Construction Manager in obtaining access to work which is to be inspected. The Contractor shall provide the Construction Manager with information requested in connection with the inspection of the work. 2.05 OWNER-CONTRACTOR COORDINATION A. SERVICE OF NOTICE: Notice, order, direction, request or other communication given by the Construction Manager or Owner to the Contractor shall be deemed to be well and sufficiently given to the Contractor if left at any office used by the Contractor or delivered to any of his officers, clerks or employees or posted at the site of the work

or mailed to any post office addressed to the Contractor at the address given in the contract document or mailed to the Contractor's last known place of business. If mailed by first-class mail, any form of communication shall be deemed to have been given to and received by the Contractor a day after the day of mailing. B. SUGGESTIONS TO CONTRACTOR: Plan or method of work suggested by the Owner or the Construction Manager to the Contractor but not specified or required, if adopted or followed by the Contractor in whole or in part, shall be used at the risk and responsibility of the Contractor. The Owner and the Construction Manager assume no responsibility therefore and in no way will be held liable for any defects in the work which may result from or be caused by use of such plan or method of work. C. COOPERATION: The Contractor agrees to permit entry to the site of the work by the Owner or other contractors performing work on behalf of the Owner. The Contractor shall afford to the Owner, other contractors and their employees, reasonable facilities and cooperation and shall arrange his work and dispose of his materials in such a manner as to not interfere with the activities of the Owner or of others upon the site of the work. The Contractor shall promptly make good any injury or damage that may be sustained by other contractors or employees of the Owner at his hands. The Contractor shall join his work to that of others and perform his work in proper sequence in relation to that of others. If requested by the Contractor, the Owner shall arrange meetings with other contractors performing work on behalf of the Owner to plan coordination of construction activities. The Owner shall keep the Contractor informed of the planned activities of other contractors. Differences or conflicts arising between the Contractor and other contractors employed by the Owner or between the Contractor and the workers of the Owner with regard to their work shall be submitted to the Construction Manager for his decision in the matter. If the work of the Contractor is affected or delayed because of any act or omission of other contractors or of the Owner, the Contractor may submit for the Owner's consideration, a documented request for a change order. D. DEVIATION FROM CONTRACT: Neither the Contractor nor the Owner shall make an alteration or variation in, addition to, or deviation or omission from the terms of this contract without the written consent of the other party.

E. DIFFERING SITE CONDITIONS: The Contractor shall promptly, and before such conditions are disturbed, notify the Owner in writing of:

1. Subsurface or latent physical conditions at the site differing materially from those indicated in this contract.

2. Unknown physical conditions at the site, of an unusual nature,

differing materially from those ordinarily encountered and generally recognized as inhering in work of the character provided for in this contract.

The Owner shall promptly investigate the conditions. If he finds that such conditions do materially differ and cause an increase or decrease in the Contractor's cost of, or the time required for, performance of any part of the work under this contract, whether or not changed as a result of such conditions, an equitable adjustment shall be made and the contract modified in writing accordingly. No claim of the Contractor under this clause shall be allowed unless the Contractor has given the notice required, except that the Owner may extend the prescribed time. No claim by the Contractor for an equitable adjustment hereunder shall be allowed if asserted after final payment under this contract. F. CLAIMS: 1. DISPUTE RESOLUTION: All claims, disputes and other matters in question of the Contractor arising out of or relating to the Contract or the breach thereof (“claims”), except claims which have been waived under the terms of the Contract, shall be decided exclusively by the following dispute resolution procedure unless the parties mutually agree in writing otherwise. The Contractor shall give written notice to the Owner and Construction Manager of all claims within fourteen (14) days of the event giving rise to them. Failure to properly give such notice shall constitute waiver of the claim. The Contractor shall not be entitled to any change in the Contract sum or the Contract schedule, nor any other compensation, for any events or costs that occurred more than fourteen (14) days before the written notice. The Contractor shall provide data supporting the claim prior to the Level 1 meeting; however, the Owner will be entitled to give the Contractor written notice to delay the start of a Level 1 meeting for up to seven (7) days in order to review the supporting data or to require more accurate or complete data to support the claim. The notice of claim shall be deemed to include a statement that the claim covers all changes in cost and in time (direct, indirect, impact, consequential, and otherwise) to which the Contractor (and Subcontractors and Suppliers of any tier) is entitled. Prior to being obliged to attend

the Level 2 meeting, the Owner or its representatives shall have the right to audit and copy the claim-related books and records of the Contractor and of any Subcontractor or Supplier of any tier making a claim. Level 1 Within seven (7) days of receipt of the written notice, the senior site

representative of the Contractor and the Construction Manager shall meet, confer, and attempt to resolve the claim.

Level 2 If the claim is not resolved within ten (10) days of the close of the Level 1 meeting, the Contractor may require that the project manager of the Contractor, the Owner and the Owner’s Representative (none of whom attended the Level 1 meeting) meet, confer, and attempt to resolve the claim within fourteen (14) DAYS THEREAFTER.

Level 3 If the claim is not resolved within fourteen (14) days of the close of the Level 2 meeting, the Contractor may require that an officer of the Contractor (who did not attend the Level 1 or 2 meetings), a principal of the Owner’s Representative, and the Owner’s Director or designer (who did not attend the Level 1 or 2 meetings) meet, confer, and attempt to resolve the claim within fourteen (14) days thereafter. Other Owner personnel may also attend the Level 3 meeting.

The terms of the resolution of all claims concluded in Levels 1, 2 or 3 meetings shall be memorialized in writing and signed by each party.

2. MEDIATION: If a claim or dispute has not been resolved through direct discussions, or as provided above within a reasonable time, the parties to this Contract agree to first endeavor to settle the matter by submitting the dispute or claim to a mutually acceptable mediator under the Construction Industry Mediation Rules, before having a recourse to a judicial forum. 3. JUDICIAL FORUM: If the methods as described above do not result in resolution of the matters, all claims, disputes and other matters in question between the Contractor and the Owner arising out of or relating to the Contract Documents or the breach thereof, and except for claims which have been waived by the making or acceptance of final payment shall be decided by a court of law under regular rules of civil procedure. Unless otherwise stated in writing, the Contractor shall carry on the work and maintain progress during any court proceedings.

PART 3--SPECIFICATIONS AND DRAWINGS 3.01 INTERPRETATION OF SPECIFICATIONS AND DRAWINGS A. GENERAL: The specifications and drawings are intended to be explanatory of each other. Work specified on the drawings and not in the specifications, or vice versa, shall be executed as if specified in both. B. REQUEST FOR CLARIFICATION: In the event the work to be done or matters relative thereto are not sufficiently detailed or explained in the contract documents, the Contractor shall apply to the Construction Manager for further explanations as may be necessary and shall conform thereto so far as may be consistent with the terms of the contract. In the event of doubt or question arising respecting the true meaning of the specifications or drawings, reference shall be made to the Construction Manager for his decision. Should the Contractor disagree with the Construction Manager's decision, he may appeal to the Owner's Representative in accordance with paragraph 00710-2.05 F.2. 3.02 DIVISION OF SPECIFICATIONS AND DRAWINGS Specifications and drawings are divided into groups for the convenience of the Owner and Construction Manager. These divisions are not for the purpose of apportioning work or responsibility for work among subcontractors, suppliers and manufacturers. 3.03 DISCREPANCIES IN SPECIFICATIONS AND DRAWINGS A. ERRORS AND OMISSIONS: If the Contractor, in the course of the work, becomes aware of any claimed errors or omissions in the contract documents or in the Owner's field work, he shall immediately inform the Construction Manager in writing. The Construction Manager shall promptly review the matter and if he finds an error or omission has been made, he shall determine the corrective actions and advise the Contractor accordingly. If the corrective work associated with an error or omission increases or decreases the amount of work called for in the contract, the Owner shall issue an appropriate change order. After discovery of an error or omission by the Contractor, related work performed by the Contractor shall be done at his risk unless authorized by the Construction Manager. In the event the Contractor disagrees with the determination of the Construction Manager under this provision, he may appeal to the Owner's Representative in accordance with paragraph 00710-2.05 F.2.

B. CONFLICTING PROVISIONS: In cases of conflict between the specifications and drawings, the specifications shall govern. Figure dimensions on drawings shall govern over scale dimensions and detail drawings shall govern over general drawings. In the event an item of work is described differently in two or more locations on the drawings and in the specifications, the Contractor shall request a clarification from the Construction Manager. C. UTILITIES: The Owner has endeavored to determine the existence of utilities at the site of the work from the records of the owners of known utilities in the vicinity of the work. The positions of these utilities as derived from such records are shown on the drawings. No excavations were made to verify the locations shown for underground utilities. Service connections to water gas and sewer lines are shown where records exist. However, it shall be the responsibility of the Contractor to determine the exact location of utilities and service connections thereto. The Contractor shall make his own investigations, including exploratory excavations, to determine the locations and type of existing utilities, including service connections, prior to commencing work which could result in damage to such utilities. The Contractor shall immediately notify the Construction Manager as to any utility discovered by him in a different position than shown on the drawings or which is not shown on the drawings. Work on utilities shall be performed and paid for as follows:

1. Known utilities. The Contractor shall provide all labor, equipment, materials and services necessary to remove, relocate, or maintain utilities specified on the drawings. The work on each utility shall be performed in a manner satisfactory to the utility owner. The utility owner has the option of doing such work with his own forces at the Contractor's expense, or permitting the work to be performed by the Contractor.

2. Service connections. Locations of service connections for all

utilities are not specified in all cases on the drawings. The Contractor shall provide all labor, equipment and material to remove, relocate or maintain service connections as required. The work on service connections shall be performed in a manner satisfactory to the service connection owner. The service connection owner has the option of doing such work with his own force at the Contractor's expense, or permitting the work to be performed by the Contractor.

3. Unknown utilities. When a utility is not specified on the drawings,

or it is located in a position different from that specified on the drawings, and interferes with the work, a change order based on

changed site conditions will be issued in accordance with paragraph 00710-7.02. Interference with the work is defined as a utility that crosses or projects into the plane of the work at an elevation between the top and bottom of the work. If it is necessary to remove, relocate, or temporarily maintain the utility, that work shall be included in the change order. The utility owner has the option of doing such work at the Contractor's expense, or permitting the work to be performed by the Contractor. In either case, the cost of the work will be included in the change order.

No representations are made that the obligations to move or temporarily maintain the utility and to pay the cost thereof is or is not required to be borne by the owner of such utility, and it shall be the responsibility of the Contractor to investigate to find out whether or not said cost is required to be borne by the owner of the utility. The right is reserved to governmental agencies and to owners of utilities to enter upon streets, alleys, rights-of-way, or easements for the purpose of making changes in their property made necessary by the work and for the purpose of maintaining and making repairs to their property. D. OBSTRUCTIONS: Obstructions for the purpose of these contract documents shall be considered as including, but not limited to: trees, tree roots, stumps, abandoned piling, abandoned concrete structures, and existing manholes indicated for removal or replacement. Obstructions shall refer to items which may be removed and do not require replacements.

1. KNOWN OBSTRUCTIONS: Known obstructions are those above grade and visible by site inspection, those designated by the contract documents, and those otherwise previously known to the Contractor. The Contractor shall be responsible for disposition of known obstructions at no change in contract price.

2. UNKNOWN OBSTRUCTIONS: Unknown obstructions are those

below grade or concealed by site improvements and not visible in the site inspection or not designated in the contract documents.

Upon encountering unknown obstructions, the Contractor shall notify the Construction Manager in writing describing the time, location, and nature of the unknown obstruction. The Contractor shall at no additional cost, remove any element which can be removed by means and methods presently in use or intended to be in use for the work. The Contractor shall request the Construction Manager to make revisions to avoid unknown obstructions which cannot be removed by means and methods presently in use or intended to be in use for the work. If such revisions can be

made without adversely affecting the intended functioning of the sewerage works, the Construction Manager shall direct the Contractor in writing to make such revision. If such revisions change the amount of work, either an increase or decrease, payment shall be in accordance with paragraph 00710.702 from the allowance for unknown utilities and obstructions. The Construction Manager may direct the Contractor to implement means and methods necessary to remove the underground obstructions. Payment shall be in accordance with paragraph 00710-702 from the allowance for unknown utilities and obstructions. 3.04 SUBMITTALS Where required by the specifications, the Contractor shall submit specified information which will enable the Construction Manager to advise the Owner whether the Contractor's proposed materials, equipment or methods of work are in general conformance to the design concept and in compliance with the drawings and specifications. The requirements for submittals are specified in Section 01300. 3.05 CONTRACTOR'S COPIES OF PROJECT MANUALS The Contractor may obtain additional sets of project manuals, including half-size or full-size drawings, from the source and at the price listed in the Advertisement for Bids. The Contractor is advised that revisions incorporating changes by addenda will not be incorporated into the reduced or full-size drawings furnished under the provisions of this paragraph. The Contractor shall keep at the construction site at least one set of the project manual and one set of full-size drawings. PART 4--MATERIAL, EQUIPMENT AND WORKMANSHIP 4.01 GENERAL Unless otherwise specifically stated in the contract documents, the Contractor shall provide and pay for materials, labor, tools, equipment, water, light, power, transportation, supervision, and temporary construction of any nature, and other services and facilities of any nature, whatsoever necessary, to execute, complete and deliver the work within the specified time. Material and equipment shall be new and of a quality equal to that specified. Equipment offered shall be current modifications which have been in successful regular operation under comparable conditions. This requirement does not apply to minor details, nor to thoroughly demonstrated improvements in design or in materials of construction. Construction work shall be executed in conformity with the standard practice of the trade.

4.02 PRODUCT DATA Where required by the specifications, the Contractor shall provide product data which is a submittal furnished for information only. The information and data furnished is required by the Owner for inspecting, testing, operating and maintaining parts of the work. The requirements for product data are specified in Specification Section 01300. 4.03 QUALITY Where the contract requires that materials or equipment be provided or that construction work be performed, and detailed specifications of such materials, equipment or construction work are not set forth, the Contractor shall perform the work using materials and equipment of the best grade in quality and workmanship obtainable in the market, from firms of established good reputations, and shall follow standard practices in the performance of construction work. The work performed shall be in conformity and harmony with the intent to secure the standard of construction and equipment of work as a whole and in part. 4.04 MATERIAL AND EQUIPMENT SPECIFIED BY NAME A. GENERAL: When material or equipment is specified by reference to two or more patents, brand names, or catalog numbers, it shall be understood that this is referenced for the purpose of defining the performance or other salient requirements, and that other materials or equipment, of equal capacities, quality and function shall be considered by the Owner upon the Contractor's request for substitution. Requests for substitution shall be made in accordance with paragraph 00710-4.05. B. SINGLE SOURCE PRODUCTS: If material or equipment is specified by only one patent or proprietary name, or by the name of only one manufacturer, it is for the purpose of standardization, or because the Owner knows of no equal. If standardization is the reason for using one name to specify any material or equipment, the specifications will so state, and substitutions will not be considered. In other cases, the Contractor may offer substitutions of products considered to be equal to that specified. Such substitutions shall be requested in accordance with paragraph 00710-4.05. 4.05 REQUESTS FOR SUBSTITUTION The Contractor may offer material or equipment of equal or better quality and performance in substitution for those specified. The Owner will consider offers for substitution only from the Contractor and will not acknowledge or consider such offers from suppliers, distributors, manufacturers, or subcontractors. The Contractor's offers

of substitution shall be made in writing to the Construction Manager and shall include sufficient data to enable the Construction Manager to assess the acceptability of the material or equipment for the particular application and requirements. If the offered substitution necessitates changes to or coordination with other portions of the work, the data submitted shall include drawings and details showing such changes. Contractor agrees to perform these changes as part of the substitution of material or equipment at no additional cost to the Owner. Within 30 calendar days after receipt of the offer of substitution, the Construction Manager will review the material submitted by the Contractor and advise the Contractor of objections, if any, to the proposed substitution or if further information is required. Upon notification by the Construction Manager, the Contractor shall either provide material or equipment which complies with project specifications or furnish requested additional information. While the Construction Manager might not take any objections to the proposed substitution, such action shall not relieve the Contractor from responsibility for the efficiency, sufficiency, quality and performance of the substitute material or equipment, in the same manner and degree as the material and equipment specified by name. Any cost differential associated with a substitution shall be reflected in the offer and the contract documents shall be modified by a change order. 4.06 DEMONSTRATION OF COMPLIANCE WITH CONTRACT REQUIREMENTS A. INSPECTION: To demonstrate his compliance with the contract requirements, the Contractor shall assist the Construction Manager in his performance of inspection work. The Contractor shall grant the Construction Manager access to the work and to the site of the work, and to the places where work is being prepared, or whence materials, equipment or machinery are being obtained for the work. The Contractor shall provide information requested by the Construction Manager in connection with inspection work. If the contract documents, laws, ordinances, or any public regulatory authority require parts of the work to be specially inspected, tested or approved, the Contractor shall give the Construction Manager adequate prior written notice of the availability of the subject work for examination. If parts of the work are covered in contravention of the Construction Manager's directive, the cost of exposing the work for inspection and closing shall be borne by the Contractor regardless of whether or not the work is found to be in compliance with the contract. If any work is covered in the absence of the Construction Manager's directive to the contrary, the Contractor shall, if directed by the Construction Manager, uncover, expose or otherwise make available for inspection, portions of covered work. If it is found that such work is defective, the Contractor shall bear the expense of uncovering

and reconstructing. If the work is found to be in compliance with the contract, the Contractor will be allowed an increase in the contract price, or an extension in the contract time, or both. A change order shall be issued.

B. SAMPLES OF MATERIALS: In cases where compliance with contract requirements for materials to be incorporated in the work requires laboratory examination or special testing, the Contractor shall provide samples or specimens as requested by the Construction Manager. Such samples or specimens shall be provided in ample time to permit making proper test analysis and examinations before the time at which it is desired to incorporate the material into the work. Tests of material will be conducted in accordance with the technical specifications. In the absence of a specific test requirement, the Construction Manager will determine the appropriate standard test to be used. C. CERTIFICATION: In cases where compliance of materials or equipment to contract requirements is not readily determinable through inspection and tests, the Construction Manager shall request that the Contractor provide properly authenticated documents, certificates or other satisfactory proof of compliance. These documents, certifications and proofs shall include performance characteristics, materials of construction and the physical or chemical characteristics of materials. D. INSPECTION AT POINT OF MANUFACTURING: If inspection and testing of materials or equipment in the vicinity of the work by the Owner is not practicable, the specifications may require that such inspection and testing or witnessing of tests take place at the point of manufacture. In this case and in the event the remote inspection and testing is not specified and is requested by the Owner, the required travel, subsistence, and labor expenses shall be paid by the Owner. If the Contractor requests the Owner to inspect and test material or equipment at the point of manufacture, then the additional cost to the Owner for travel, subsistence, and labor expenses shall be paid by the Contractor. 4.07 STORAGE OF MATERIALS AND EQUIPMENT Materials and equipment shall be stored so as to insure the preservation of their quality and fitness for the work. Stored equipment and materials shall be located so as to facilitate inspection. The Contractor shall be responsible for damages that occur in connection with the care and protection of materials and equipment until final acceptance of the work.

4.08 MANUFACTURER'S DIRECTIONS Manufactured articles, material and equipment shall be applied, installed, connected, erected, adjusted, tested, operated and maintained as recommended by the manufacturer, unless otherwise specified. Manufacturer's installation instructions and procedures shall be provided prior to installation of the manufactured articles, material and equipment. 4.09 DEFECTIVE WORK A. CORRECTION OF DEFECTIVE WORK: When, and as often as the Construction Manager determines through his inspection procedures, material, equipment or workmanship incorporated in the project do not meet the requirements of the contract, the Construction Manager shall give written notice of the noncompliance to the Contractor. Within five days from the receipt of such notice, the Contractor shall undertake the work necessary to correct the deficiencies, and to comply with the contract. If the Contractor disagrees with the Construction Manager's determination and believes that the corrective work should be covered by a change order, he shall immediately notify the Owner's Representative, in writing, setting forth his position. Within five days after receipt of the Contractor's notification, the Owner's Representative will review the matter and notify the Contractor, in writing, of his determination. If the Owner's Representative determines that the corrective work is required to comply with the contract, the Contractor shall proceed with such work. As a condition precedent to the Contractor's request for either additional compensation or time extension, or both, resulting from the performance of such corrective work, the Contractor shall, within 15 calendar days after receipt of the Owner's Representative's determination, notify the Owner's Repre-sentative in writing of his intent to claim additional compensation, time or both. The Contractor shall document the cost information associated with the corrective work with daily records in accordance with paragraph 00710-7.02 F and shall provide such information to the Construction Manager monthly. Receipt of the cost data by the Construction Manager shall not be construed to be an acceptance of the corrective work, or an authorization for a change order to cover the corrective work. B. RETENTION OF DEFECTIVE WORK: Prior to acceptance of the project, the Owner may, at his option, retain work which is not in compliance with the contract if the Owner determines that such defective work is not of sufficient magnitude or importance to make the work dangerous or undesirable. The Owner also may retain defective work, if, in the opinion of the Construction Manager, and with concurrence of the Owner's Repre-sentative, removal of such work is impractical or will create conditions which are dangerous or undesirable. Just and reasonable value for such defective work shall be judged by the Owner and appropriate deductions shall be made in the payments due,

or to become due to the Contractor. Final acceptance shall not act as a waiver of the Owner's right to recover from the Contractor an amount representing the deduction for retention of defective work. 4.10 GUARANTEE The guarantee period shall be for 730 days. Except for work accepted as substantially complete, the guarantee period shall commence on the date of acceptance of the work. For work described as substantially complete, the guarantee period shall commence on the date of substantial completion. During the guarantee period, the Contractor shall, upon the receipt of notice in writing from the Owner, promptly make all repairs arising out of defective materials, workmanship or equipment. The Owner is hereby authorized to make such repairs, if ten days after giving of such notice to the Contractor, the Contractor has failed to make or undertake the repairs with due diligence. In case of an emergency, where, in the opinion of the Owner, delay could cause serious loss or damage, repairs may be made without notice being sent to the Contractor and the expenses in connection therewith shall be charged to the Contractor. For the purpose of this paragraph, "acceptance of the work" shall mean the acceptance of the project or a portion of the project by the Owner, in accordance with paragraph 00710-7.07. "Acceptance of the work" shall not extinguish any covenant or agreement on the part of the Contractor to be performed or fulfilled under this contract which has not, in fact, been performed or fulfilled at the time of such acceptance. All covenants and agreements shall continue to be binding on the Contractor until they have been fulfilled. The Owner and the Contractor agree that guarantee on the equipment possessed and used by the Owner in accordance with paragraph 00710-7.06 shall commence on the date that the Owner takes possession of the equipment and so notifies the Contractor in writing. Owner and Contractor further agree that such taking possession and use shall not be deemed as substantial completion or acceptance of any part of the work. Takeover of equipment shall be at the Owner's option and will not be made until the equipment can be put into routine service on a permanent basis. PART 5--LIABILITY AND INSURANCE 5.01 LIABILITY OF CONTRACTOR The Contractor shall be liable for any and all losses or damages from whatever cause which, prior to final acceptance, may occur on or to any part of the work. The Contractor shall not be liable for losses or damages caused solely by the act of the Owner.

The Contractor shall be liable for damages and injury which shall be caused to persons owning property, on or in the vicinity of the work, or which shall occur to a person, or persons, or property whatsoever, arising out of the Contractor's performance of this contract. The Contractor's liability shall not be dependent upon whether or not such damage or injury be caused by the negligence of the Contractor, and whether or not such damage or injury be caused by the inherent nature of the work as specified. The Contractor shall indemnify and hold the Owner, the Construction Manager, the design engineer, and their officers, principals, agents, subcontractors, and employees, harmless from any and all loss, defense cost, expense, claims, demand or liability whatsoever, arising from allegations of injuries to persons or damage to property related to the performance of this contract, regardless of concurrent negligence on the part of such indemnities. The indemnification obligation shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the Contractor or any subcontractor under workers compensation acts, disability benefit acts, or other employee benefit act. In case suit or legal proceeding shall be brought against the Owner, the Construction Manager, the design engineer, or their officers, principals, agents, subcontractors, or employees, on account of loss or damage sustained by person, or persons, or property, as a result of the performance of the work covered by this contract, the Contractor agrees to assume the defense thereof, and to pay the expenses connected therewith, and the judgments that may be obtained against the Owner, the Construction Manager, the design engineer, or their officers, principals, agents, subcontractors, or employees, in such suits. In the event that a lien is placed against the property of the Owner, the Construction Manager, the design engineer, or their officers, principals, agents, subcontractors, or employees, as a result of such suits, the Contractor agrees to at once cause the same to be dissolved and discharged by giving bond or otherwise. The Contractor's agreement to defend and to pay the related expenses shall exist whether or not such injuries or damage be due to the negligence of the Contractor, and whether or not such injuries or damage be caused by the inherent nature of the work, as specified. The mention of specific duties or liabilities imposed on the Contractor shall not be construed as a limitation or restriction of general duties or liabilities imposed upon the Contractor by the contract. Reference to specific duties or liabilities is made herein, merely for the purpose of explanation. 5.02 BONDS The Contractor shall provide a performance and a payment bond, each in the amount of 100 percent of the contract price. The bonds shall serve as security for the faithful performance of the work and the as security for the faithful payment and satisfaction of the persons furnishing materials and performing labor on the work. The bonds shall be issued by a corporation duly and legally licensed to transact surety business in the State of Oregon. Such bonds shall remain in force

throughout the period required to complete the work, and thereafter for a period of 365 calendar days for equipment and 730 calendar days for all other work after final acceptance of the work. The bonds must be executed by a duly licensed surety company, which is listed in the latest Circular 570 of the United States Treasury Department, as being acceptable as surety on federal bonds. No surety's liability on the bonds shall exceed the underwriting limitations for the respective surety specified in Circular 570. The scope of the bonds or the forms thereof prescribed in the project manual shall in no way affect or alter the liabilities of the Contractor to the Owner as set forth herein. 5.03 INSURANCE A. GENERAL:

1. EVIDENCE OF INSURANCE: Prior to execution of the contract, the Contractor shall file, with the Owner, evidences of insurance from the insurer, certifying to the coverage of the insurance required herein. The evidences of insurance shall be certified by a properly authorized officer, agent, general agent or qualified representative of the insurer, and shall certify the names of the insured, the type and amount of insurance, the location and operations to which the insurance applies, and the expiration date. The evidences shall include the agreement of the insurer to give, by registered mail, notice to the Owner at least 30 calendar days prior to the effective date of cancellation, lapse, or material change in the policy.

This Certificate of Insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies listed herein. Notwithstanding any requirement, term, or condition of the contract with respect to which this certificate is issued, the insurance afforded by the policies described herein is subject to the terms, exclusions and conditions of such policies.

2. CANCELLATION OF INSURANCE: The Contractor shall deliver to the Owner policies of insurance and the receipts for payment of premiums thereon. Should the Contractor neglect to obtain and maintain in force such insurance, and deliver such policy or policies and receipts to the Owner, then it shall be lawful for the Owner to obtain and maintain such insurance. The Contractor hereby appoints the Owner his true and lawful attorney, to do the things necessary for this purpose. Money expended by the Owner under the provisions of this paragraph for insurance premiums shall be charged to the Contractor. Failure of the Owner to obtain such insurance shall in no way relieve the Contractor of his responsibilities under this contract.

B. PUBLIC LIABILITY: The Contractor shall provide public liability insurance covering bodily injury, in an amount of not less than a combined single limit of one million dollars ($ 1,000,000) for one or more persons injured in each occurrence. This insurance shall cover bodily injuries or death suffered, or alleged to have been suffered by any person or persons by reason of or in the course of operations, under this contract, whether occurring by

reason of acts or omissions of the Contractor, or any subcontractor, or both. Such insurance shall be maintained until final acceptance of the work and shall include completed operations and products liability insurance, with aggregate limit in the amount specified above, which shall continue for a period of 365 calendar days after final acceptance of the work. The Contractor shall provide property damage insurance in an amount of not less than a combined single limit of one million dollars ($1,000,000) for property damaged in each occurrence. The insurance shall cover damages to property suffered or alleged to have been suffered, by person, or persons, by reason of, or in the course of, the operations under the contract, whether occurring by reason of acts or omissions of the Contractor, or any subcontractor, or both. Such insurance shall be maintained until final acceptance of the work, and shall include completed operations and products liability insurance, which shall continue for a period of 365 calendar days after the final acceptance of the work. Liability insurance shall indemnify the Contractor and his subcontractors against loss from liability, imposed by law, upon or assumed under contract by the Contractor or his subcontractors, for damages on account of such bodily injury and property damage. The insurance shall also indemnify the Contractor and his subcontractors against losses related to completed operations and products. The insurance shall be provided by a comprehensive, broad form occurrence property damage liability policy written by licensed underwriters. The policies shall cover operations, owned and non-owned vehicles and equipment, contractors protective coverage blanket, contractual liability, and completed operations liability. The liability insurance shall not exclude explosion, collapse, underground excavation, or removal of lateral support and shall include cross liability. The Owner, the Construction Manager, the design engineer, and their officers, principals, agents, subcontractors, and employees shall be named as insured on the liability policies. C. WORKERS COMPENSATION INSURANCE: The Contractor and the subcontractors shall cover or insure under applicable laws relating to workers compensation or employers liability insurance, their employees, working on or about the construction site, regardless of whether such coverage or insurance is mandatory or merely elective under the law. The Contractor shall defend, protect, save harmless the Owner from and against claims, suits and actions arising from failure of the Contractor or the subcontractors to maintain such insurance. Have Owner determine the maximum allowed deductible for builders risk insurance and insert the amount in the first paragraph. See Notes to Specifier for additional comments. D. BUILDERS RISK: Contractor shall secure all-risk type of builders risk insurance covering work performed under the contract and materials, equipment or other items to be

incorporated therein, while the same are located at the construction site, stored off site, or at the place of manufacture. The policy shall cover not less than losses due to fire, flood, explosion, hail, lightning, vandalism, malicious mischief, wind, collapse, riot, aircraft, and smoke until the date of final acceptance of the work. The policy may exclude loss or damage caused by or resulting from errors in design or from the use of substandard materials or supplies used knowingly by or at the direction of the insured, but not excluding results, physical loss, or damage to other property covered hereunder. Neither exclusion shall apply in the event of fire, explosion, or acts of God. The maximum deductible allowable under this policy shall be $100,000. The policies providing this insurance shall name the Owner, the Construction Manager, the design engineer, and their subconsultants as additional insureds as their respective interests shall appear. The making of progress payments to the Contractor shall not be construed as creating an insurable interest by or for the Owner or being construed as relieving the Contractor or his subcontractors of responsibility for loss or direct physical loss, damage or destruction occurring prior to final acceptance. PART 6--PROGRESS AND COMPLETION 6.01 NOTICE TO PROCEED After execution of the contract by the Owner, written notice to proceed will be given by the Owner to Contractor. Notwithstanding other provisions of the contract, the Contractor shall not be obligated to perform work, and the Owner shall not be obligated to accept or pay for work performed by the Contractor, prior to date of the notice to proceed. The Owner's knowledge of work being performed prior to date of the notice to proceed shall not obligate the Owner to accept or pay for such work. 6.02 CONTRACT TIME A. GENERAL: Time shall be of the essence of the contract. The Contractor shall promptly start the work after the date of the notice to proceed and shall prosecute the work so that the project shall be complete within the time specified in the Proposal Form. During periods when weather or other conditions are unfavorable for construction, the Contractor shall pursue only such portions of the work as shall not be damaged thereby. No portions of the work where acceptable quality or efficiency will be affected by unfavorable conditions shall be constructed while those conditions exist. It is expressly understood and agreed by and between the Contractor and the Owner that the contract time for completion of the work described herein is a reasonable time taking into consideration the average climatic and economic conditions and other factors prevailing in the locality of the work.

B. CONSTRUCTION SCHEDULE: The Contractor shall provide a construction schedule and reports as specified in Section 01310 for scheduling and coordinating the work within the contract time. Contract time extensions shall be incorporated into updated schedules, reflecting their effect at the time of occurrence. Failure of the Contractor to comply with these requirements for submittal of the construction schedule and reports shall be cause for delay in review of progress payments by the Construction Manager. C. CONSTRUCTION PROGRESS: The Contractor shall furnish such manpower, materials, facilities and equipment as may be necessary to insure the prosecution and completion of the work in accordance with the accepted schedule. If work falls 14 days or more behind the accepted construction schedule, the Contractor agrees that he will take some or all of the following actions to return the project to the accepted schedule. These actions may include the following:

1. Increase manpower in quantities and crafts.

2. Increase the number of working hours per shift, shifts per working day, working days per week, or the amount of equipment, or any combination of the foregoing.

3. Reschedule activities.

If requested by the Construction Manager, the Contractor shall prepare a proposed schedule revision demonstrating a plan to make up the lag in progress and insure completion of the work within the contract time. The proposed revision shall be submitted to the Construction Manager in accordance with Section 01300. Upon receipt of an acceptable proposed schedule, the revision to the construction schedule shall be made in accordance with paragraph 01310-4. All actions to return the project to the accepted schedule are at the Contractor's expense. The Contractor shall pay all costs incurred by the Owner which result from the Contractor's action to return the project to its accepted schedule. Contractor agrees that Owner shall deduct such charges from payments due the Contractor. It is further understood and agreed that none of the services performed by the Construction Manager in monitoring, reviewing and reporting project status and progress shall relieve the Contractor of responsibility for planning and managing construction work in conformance with the construction schedule. D. DELAYS:

1. NOTICE OF DELAYS: When the Contractor foresees a delay in the prosecution of the work and, in any event, immediately upon the occurrence of a delay which the Contractor regards as unavoidable, he shall notify the Construction

Manager in writing of the probability of the occurrence of such delay, the extent of the delay, and its possible cause. The Contractor shall take immediate steps to prevent, if possible, the occurrence or continuance of the delay. If this cannot be done, the Construction Manager shall determine how long the delay shall continue and to what extent the prosecution and completion of the work are being delayed thereby. He shall also determine whether the delay is to be considered avoidable or unavoidable and shall notify the Contractor of his determination. The Contractor agrees that no claim shall be made for delays which are not called to the attention of the Construction Manager at the time of their occurrence.

2. AVOIDABLE DELAYS: Avoidable delays in the prosecution of the work shall include delays which could have been avoided by the exercise of care, prudence, foresight and diligence on the part of the Contractor or his subcontractors. Avoidable delays include:

a. Delays which may in themselves be unavoidable but which affect only a portion of the work and do not necessarily prevent or delay the prosecution of other parts of the work nor the completion of the whole work within the contract time.

b. Time associated with the reasonable interference of other

contractors employed by the Owner which do not necessarily prevent the completion of the whole work within the contract time.

3. UNAVOIDABLE DELAYS: Unavoidable delays in the prosecution or

completion of the work shall include delays which result from causes beyond the control of the Contractor and which could not have been avoided by the exercise of care, prudence, foresight and diligence on the part of the Contractor or his subcontractors. Delays in completion of the work of other contractors employed by the Owner will be considered unavoidable delays insofar as they interfere with the Contractor's completion of the work. Delays due to normal weather conditions shall not be regarded as unavoidable as the Contractor agrees to plan his work with prudent allowances for interference by normal weather conditions. Delays caused by acts of God, fire, unusual storms, floods, tidal waves, earthquakes, strikes, labor disputes, freight embargoes and shortages of materials shall be considered as unavoidable delays insofar as they prevent the Contractor from proceeding with at least seventy-five percent (75%) of the normal labor and equipment force for at least five hours per day toward completion of the current controlling item on the accepted critical path schedule. Should abnormal conditions prevent the work from beginning at the usual starting time, or prevent the Contractor from proceeding with seventy-five percent (75%) of the normal labor and equipment force for a period of at least five hours per

day, and the crew is dismissed as a result thereof, he will not be charged for a working day whether or not conditions change so that the major portion of the day could be considered to be suitable for work on the controlling item. E. EXTENSION OF TIME:

1. AVOIDABLE DELAYS: In case the work is not completed in the time specified, including extension of time as may have been granted for unavoidable delays, the Contractor will be assessed damages for those costs incurred by the Owner which are attributable to the fact that the work was not completed on schedule.

The Owner may grant an extension of time for avoidable delay if he

deems it in his best interest. If the Owner grants an extension of time for avoidable delay, the Contractor agrees to pay actual costs, including charges for engineering, inspection and administration, as specified in paragraph 00710-7.04, incurred during the extension.

2. UNAVOIDABLE DELAYS: For delays which the Contractor

considers to be unavoidable, he shall submit to the Construction Manager complete information demonstrating the effect of the delay on the controlling operation in his construction schedule. The submission shall be made within 30 calendar days of the occurrence which is claimed to be responsible for the unavoidable delay. The Construction Manager shall review the Contractor's submission and determine the number of days of unavoidable delay and the effect of such unavoidable delay on controlling operations of the work. The Owner agrees to grant an extension of time to the extent that unavoidable delays affect controlling operations in the construction schedule. During such extension of time, neither extra compensation or engineering inspection and administration nor damages for delay will be charged to the Contractor. It is understood and agreed by the Contractor and Owner that time extensions due to unavoidable delays will be granted only if such unavoidable delays involve controlling operations which would prevent completion of the whole work within the specified contract time.

3. DAMAGES FOR DELAYS: For the period of time that any portion of

the work remains unfinished after the time fixed for completion in the contract documents, as modified by extensions of time granted by the Owner, it is understood and agreed by the Contractor and the Owner that the Contractor shall pay the Owner the amount of actual damages representing actual costs which the Owner suffers by failure of the Contractor to complete the work within the stipulated time. 6.03 SUSPENSION PROCEDURES The Owner may, at his convenience and at any time and without cause, suspend, delay, or interrupt all or any part of the work for a period of not more than 90 days by notice in writing to the Contractor. The Owner shall fix the date on which the work shall be resumed. The work shall be resumed by the Contractor within 10 days after receiving written notice from the Owner to do so. The Contractor will be allowed

an increase in the contract price or an extension of contract time, or both, directly attributable to any suspension if he makes a claim therefore as provided in the paragraphs related to change of contract price and change of contract time. 6.04 TERMINATION PROCEDURES A. TERMINATION BY OWNER FOR DEFAULT: The Owner may terminate the contract upon 7 days written notice to Contractor and his surety whenever the Contractor is deemed to be in default or fails to fulfill, in a timely and proper manner, the contract obligations, or is in violation of any provisions or covenants of the contract. For purposes of this paragraph, the Contractor shall be deemed to be in default upon the occurrence of any one or more of the following events:

1. If Contractor is bankrupt or insolvent. 2. If Contractor makes a general assignment for the benefit of

creditors. 3. If a trustee or receiver is appointed for Contractor, or for any of

Contractor's property.

4. If Contractor files a petition to take advantage of any debtor's act, or to reorganize under any bankruptcy chapter or law.

5. If Contractor repeatedly fails to make prompt payments to

subcontractors or others for labor, materials, or equipment.

6. If Contractor disregards laws, ordinances, rules, regulations, or orders of any public body having jurisdiction.

7. If Contractor disregards the authority of Construction Manager.

8. If Contractor violates in any substantial way the provisions of the

contract documents by failing, neglecting, or refusing to proceed according to and in full compliance with the provisions and covenants of the contract documents.

After termination of Contractor for default, the Owner may exclude the Contractor from the site and take possession of the work and all of the Contractor's tools, appliances, construction equipment, and machinery at the site and use the same to the full extent they could be used by the Contractor. The Owner may incor-porate in the work all materials and equipment stored at the site or for which the

Owner has paid the Contractor, but which are stored elsewhere. In such case, the Contractor shall not be entitled to receive any further payment until the work is finished. If the unpaid balance of the contract price exceeds the direct and indirect cost of the completed work, including compensation for additional professional services, such excess shall be paid to the Contractor. If such costs exceed such unpaid balance, the Contractor shall pay the difference to the Owner. Such costs incurred by the Owner shall be verified by the Construction Manager and incorporated into a change order, but in finishing the work, the Owner will not be required to obtain the lowest figure for work performed. Where the Contractor's services have been so terminated by the Owner, the termination shall not affect any rights of the Owner against the Contractor then existing or which may thereafter accrue. Any retention or payment of monies due the Contractor by the Owner will not release the Contractor from liability. If the Owner terminates this agreement for default, and it is thereafter determined that the Contractor had not so failed to perform its obligations or defaulted in any way, the termination shall then be deemed to have been effected for the convenience of the Owner. In that event, any adjustment of compensation to Contractor shall be in accordance with paragraph 00710-6.04 B. B. TERMINATION BY OWNER FOR OTHER THAN DEFAULT: The Owner may, without prejudice to any other remedy it may have under the provisions of the contract, terminate this contract, in whole or in part, at any time by giving written notice to Contractor or its representative by certified mail, return receipt requested. Termination shall be effective upon receipt of such notice by Contractor. Contractor shall immediately discontinue work and take all reasonable steps with its suppliers and subcontractors to minimize cancellation charges and other costs. In the event of termination for reasons other than default of Contractor, Contractor shall be entitled to recover all reasonable costs incurred in connection with performance of the work, plus any cost and expense reasonably and necessarily incurred in connection with such termination, plus a percentage of the profit based on the percentage of completion of the work. C. TERMINATION BY CONTRACTOR: If the work is stopped by order of a court, a public authority or the Owner for a period of 90 calendar days or more through no act or fault of the Contractor or anyone employed by him or his subcontractors, then the Contractor may terminate the contract 10 calendar days after written notice to the Owner. Upon receipt of the written notice, the Owner shall implement procedures as set forth in paragraph 00710-6.04 B.

PART 7--MEASUREMENT AND PAYMENT 7.01 PAYMENTS TO CONTRACTOR A. BREAKDOWN OF CONTRACT PRICES: Except in cases where unit prices form the basis for payment under the contract, the Contractor shall, within 20 days of receipt of the notice to proceed, submit a breakdown of the contract price showing the value assigned to each part of the work including an allowance for profit and overhead. In submitting the breakdown, the Contractor certifies that it is not unbalanced and that the value assigned to each part of the work represents his estimate of the actual cost, including profit and overhead, of performing that part of the work. The breakdown shall be sufficiently detailed to permit its use by the Construction Manager as one of the bases for evaluating requests for payment. B. PROJECT STATUS REVIEW: Contractor and Construction Manager shall meet each month prior to the Contractor submitting the progress payment request for the previous month. The purpose of the meeting is to review project status in relation to the construction schedule; review value of work completed during the previous month; and, if applicable, review Contractor's plans to return project status to that required by the schedule. Within 5 days following this meeting, the Contractor shall submit a written progress report comprising:

1. A copy of the current construction schedule marked up to indicate percent complete, actual completion or start dates since the previous review, and the estimated remaining duration for each activity in progress.

2. Reasons any activities are behind schedule and a description of

the corrective steps being taken. C. PROGRESS PAYMENTS:

1. PAYMENT REQUEST PROCEDURES: By the 1st day of each month, the Contractor shall submit to the Construction Manager a partial payment estimate filled out and signed by the Contractor covering acceptable work performed during the previous month, or since the last partial payment estimate was submitted. If requested by the Construction Manager, the Contractor shall provide such additional data as may be reasonably required to support the payment estimate. Such data may include satisfactory evidence of payment for equipment, materials and labor including payments to subcontractors and suppliers. Request for payment for delivered equipment and material shall be accompanied by certified invoices by the suppliers. Such equipment and material shall be suitably and safely stored at the site of the work.

2. REVIEW PROCEDURES: Within 10 days after receipt of the partial payment estimate, the Construction Manager will review the estimate and either indicate in writing to the Owner's Representative his concurrence with the estimate and his recommendation that payment be made, or indicate in writing to the Contractor his reasons for not concurring with the estimate. If the Construction Manager recommends payment and the Owner's Representative concurs, the Owner will, within 30 days after receipt of the Construction Manager's recommendation, pay the Contractor a progress payment on the basis of the approved partial payment estimate. The payments will take into account the retention provisions provided for herein.

In the event the Construction Manager does not concur with the estimate, the Contractor may make the changes necessary to obtain the Construction Manager's concurrence and resubmit the partial payment estimate, or submit the original progress payment estimate directly to the Owner's Representative, indicating in writing his reasons for refusing to make the changes necessary to obtain concurrence.

3. RETENTION: The Owner shall retain a percentage of each payment except as specified below. The retained amount is available for the protection and payment of the person, or persons, mechanics, subcontractors, or material men who shall perform labor upon the contract or work thereunder, and persons who shall supply such person, or persons, or subcontractors with components and supplies for carrying on such work.

The Owner will deduct and retain 5 percent of the amount earned for work satisfactorily completed or materials delivered to the job site. In lieu of the 5 percent retainage, provisions may be made as provided for in ORS 279 for depositing with the owner, approved bonds or securities. The Contractor shall select the method of handling retainage when the Contract is executed.

4. WITHHOLDING: The Construction Manager may refuse to recommend the whole or any part of any payment if in the Construction Manager's opinion it would be incorrect to make such recommendation to the Owner. The Construction Manager may also refuse to recommend any such payment, or because of subsequently discovered evidence or the result of tests, may nullify any such payment previously recommended to such extent as may be necessary in the Construction Manager's opinion to protect the Owner from loss as a result of:

a. Defective or damaged work. b. A deductive change order.

c. Persistent failure of the Contractor to perform the work in

accordance with the contract documents, including failure to maintain the progress of the work in accordance with the construction schedule. Persistent failure to maintain

the progress of the work shall mean that for a period of two consecutive months following a written notice from the Construction Manager, the Contractor fails to correct a behind-schedule condition at a rate that would reasonably indicate that he will finish the project on schedule.

d. Disregard of authority of the Construction Manager or the

laws of any public body having jurisdiction.

The Owner may refuse to make payment of the full amount recommended by the Construction Manager because of claims made against the Owner on account of Contractor’s performance or furnishing the work or because liens have been filed in connection with the work or there are other items entitling Owner to reduce the amount recommended. In such case, the Owner shall give Contractor prompt written notice with copy to the Construction Manager stating the reasons for each action. D. FINAL PAYMENT: The Owner will make final payment to the Contractor in the manner provided by law following the expiration of 35 calendar days after acceptance of the work and filing of the notice of completion by the Owner providing no liens or claims are outstanding. Final payment shall include the entire sum found to be due hereunder after deducting therefrom previous payments and such other lawful amounts as the terms of this contract describe. Prior estimates and payments, including those relating to extra work or work omitted, shall be subject to correction by the final payment. Acceptance by the Contractor of final payments shall be and shall operate as a release to the Owner of all claims and all liability to the Contractor other than claims in stated amounts that may be specifically excepted by the Contractor for things done or furnished in connection with this work and for every act and neglect of the Owner and others relating to or arising out of this work. Payment by the Owner shall not release the Contractor or his surety from any obligation under the contract or under the performance bond and payment bonds. 7.02 CHANGE ORDERS A. GENERAL: The Owner may, at any time, without notice to the sureties, by written order designated or indicated to be a change order, make any change in the work within the general scope of the contract, including but not limited to the following changes:

1. In the specifications (including drawings and designs). 2. In the method or manner of performance of the work. 3. In the Owner-furnished facilities, equipment, materials, services,

or site. 4. Directing acceleration in the performance of the work.

Any other written order or an oral order (which terms as used in this paragraph shall include direction, instruction, interpretation, or determination) from the Owner, which causes any such change, shall be treated as a change order under this clause, if the Contractor gives the Owner written notice stating the date, circumstances, and source of the order and if the Contractor regards the order as a change order. Except as provided in this clause, no order, statement, or conduct of the Owner shall be treated as a change under this clause or shall entitle the Contractor to an equitable adjustment. If any change under this clause causes an increase or decrease in the Contractor's cost of, or the time required for, the performance of any part of the work under this contract, whether or not changed by any order, an equitable adjustment shall be made and the contract modified in writing accordingly. However, except for claims based on defective specifications, no claim shall be allowed for any costs incurred more than 20 days before the Contractor gives written notice as required. Also, in the case of defective specifications for which the Owner is responsible, the equitable adjustment shall include any increased cost reasonably incurred by the Contractor in attempting to comply with such defective specifications. If the Contractor intends to assert a claim for an equitable adjustment under this clause, he must, within 30 days after receipt of a written change order or the furnishing of a written notice, submit to the Owner a written statement setting forth the general nature and monetary extent of such claim, unless the Owner extends this period. The statement of claim hereunder may be included in the notice. No claim by the Contractor for an equitable adjustment hereunder shall be allowed if asserted after final payment under this contract. B. EXTRA WORK: Extra work means the providing of materials and equipment and the performing of work not directly or by implication called for by the contract. Changes in measured quantity under a unit price contract or item shall not be considered extra work. If the Owner requires extra work he may (1) do it himself, (2) employ others to do it, (3) direct the Contractor to perform the extra work at unit bid price or a combination of such items, (4) direct the Contractor to perform the extra work at a mutually agreed upon lump sum, or (5) direct the Contractor to perform the extra work on a time and expense basis. C. OMITTED WORK: The Owner may, by written order to the Contractor, omit work, equipment and material to be provided under the contract, and the value of the omitted work, equipment and material will be deducted from the contract price. The deducted value will be a lump sum or unit bid price agreed upon in writing by the Contractor and Owner based on breakdown and cost information submitted by the Contractor.

D. UNIT BID PRICE CHANGE: Increases or decreases in the quantity of a contract item of work will be made by comparing the total pay quantity of such item of work with the Construction Manager's estimate therefore. When changes in quantities exceed 15 percent of the original bid quantity and the total dollar change of that bid item is significant, the Owner will review the unit price to determine if a new unit price should be negotiated. No increase in unit price will be allowed to compensate for extended or unabsorbed home office overhead and field overhead expenses to the extent that there is an unbalanced allocation of such expenses among the contract bid items. No increase in unit price will be allowed to compensate for consequential damages or loss of anticipated profits. E. LUMP SUM CHANGES: Whenever the Contractor is directed to perform extra work on a lump sum basis, changes in contract price resulting from the extra work will be determined from a mutually agreed upon lump sum price. The Contractor's proposal for such changes shall include a detailed breakdown of labor and materials costs for the extra work to be performed by his forces and the forces of his subcontractors or material suppliers as may be required. The breakdown shall include labor surcharge and sales tax cost. Whenever the Owner requests that the Contractor prepare a lump sum price in connection with a change order, the Contractor shall be entitled to the costs incurred in the preparation of that price whether or not the lump sum amount is finally accepted by the Owner. Such costs will be incorporated in the lump sum amount. Compensation for the extra work shall be based on the direct costs as listed in the detailed proposal, plus a mutually agreed upon percent of direct costs for overhead and profit, plus 1 percent of such direct costs for bond. The allowance for overhead and profit shall include full compensation for overhead, including superintendence, and additional overhead attributable to a time extension granted because of the change order. When the change order involves work omitted, the reduction of the contract price shall be based on the direct costs listed in the detailed proposal submitted by the Contractor. An additional reduction may be made of an amount which can be identified as reduced overhead costs attributable to the work omitted. No reduction will be made for profit originally attributable to the omitted work. F. TIME AND EXPENSE CHANGES:

1. GENERAL: Whenever the Contractor is directed to perform extra work on a time and expense basis, he will maintain accurate records. Each day a record of labor, materials, and equipment costs will be submitted to the Construction Manager for verification. These records will reflect the actual and necessary expenses pertaining to the extra work and shall be available for audit. Audits

conducted under this provision shall be in accordance with generally accepted auditing standards and established procedures and guidelines of the reviewing or audit agency(ies).

Payment to the Contractor for extra work performed on a time and expense basis shall consist of the actual necessary expense for doing the extra work, plus an allowance of 15 percent of labor, material and equipment rental for overhead, general superintendence and profits, plus 1 percent for bond. This basis of payment applies to work done directly by the Contractor and to work done by a subcontractor, except the 1 percent allowance for bond shall not apply to work performed by a subcontractor. When the work is done by a subcontractor, the Contractor may add 5 percent to the subcontractor's charges to cover overhead and profit and 1 percent for bond.

In determining time and expense compensation, the term "actual

necessary expense" shall mean the sum of (1) materials and equipment, (2) labor, (3) supervision, (4) construction equipment, (5) professional services, and (6) other costs. Charges for such items shall mean the actual cost whether incurred by the Contractor, a subcontractor or others. The items making up "actual necessary expense" are defined as follows.

2. MATERIALS AND EQUIPMENT: Costs for materials and equipment

provided by the Contractor and necessarily used in the work shall include applicable taxes.

3. LABOR: The cost of labor shall be the sum of actual wages, labor

surcharge, and subsistence and travel allowances. Actual wages paid shall include employer payments to or on behalf of the worker for health and welfare, pension, vacation and similar purposes. The labor surcharge includes applicable labor related taxes, Workers Compensation Insurance premiums, public liability and property damage insurance premiums, and other legally required costs directly related to labor. Where subsistence and travel allowance are required for performance of extra work, the charges shall consist of the actual amount paid to each worker for these items.

4. SUPERVISION: If, in the Owner's judgment, full-time supervision of

the extra work is required, it will be authorized in writing by the Construction Manager and charges for such supervision will be included as an actual necessary expense. Charges for supervision of the extra work by the Contractor's representative are not regarded as part of actual necessary expense.

5. CONSTRUCTION EQUIPMENT: Charges for the use of construction equipment required in the performance of extra work shall be based on rental rates listed by the local section of the Associated General Contractors. If the equipment is not listed by the Associated General Contractors, the rental rate will be mutually agreed upon in writing between the Contractor and Owner prior to the use of said unlisted equipment. The reasonable cost of moving equipment onto and off the job site shall be included, but equipment rental shall not be paid when the

equipment is inoperative due to breakdowns. Charges for the ownership portion of rental rates for equipment that is already onsite and being used on a regular basis for construction of the original contract work are considered included in the original contract amount and will not be included in costs for changes. Charges for the operation and maintenance portion of rental rates for this equipment may be included in costs for changes. Individual pieces of equipment or small tools having a replacement value of $1000 or less shall be considered expendable and no payment therefore shall be made.

The rental rate charged, either hourly, daily, weekly, or monthly shall be based on the hours used and determined using the rate which results in the lowest cost to the Owner. Adjustments to the rates will be made in accordance with the tables and instructions provided by the publisher.

When equipment is required in the performance of extra work which the Contractor rents from an independent third party company, the cost of this equipment shall be paid for at the invoiced cost less any discounts. The Contractor shall provide copies of invoices to document these costs.

6. PROFESSIONAL SERVICES: Professional services shall be included in “actual necessary expense” provided both the Owner has determined that such services are necessary and the Construction Manager has authorized in writing the provision of such services.

7. OTHER COSTS: Charges for items not included in paragraphs 7.02 F.1 through 6 may be included as "actual necessary expense" if such additional items are authorized in advance and in writing by the Construction Manager. 7.03 CHARGES TO CONTRACTOR Everything charged to the Contractor under the terms of this contract shall be paid by the Contractor to the Owner on demand. Such charges may be deducted by the Owner from money due or to become due to the Contractor under the contract. The Owner may recover such charges from the Contractor or from his surety. 7.04 COMPENSATION TO OWNER FOR TIME EXTENSION The Owner, in exchange for granting an extension of time for avoidable delay, shall be compensated by the Contractor for the actual costs to the Owner of engineering, inspection, general supervision and overhead expenses which are directly chargeable to the work and which accrue during the period of such extension. The actual costs do not include charges for final inspection and preparation of the final estimate by the Owner.

7.05 SUBSTANTIAL COMPLETION The Contractor, on considering the work to be substantially complete and ready for its intended use, shall so notify the Construction Manager in writing. The notification shall include an itemized list of remaining incomplete work. If the Construction Manager determines that the work is not substantially complete, he will so notify the Contractor in writing identifying the reasons for such a determination. If the Construction Manager finds the work substantially complete, he will meet with the Contractor to (1) prepare a punch list of incomplete items of work; (2) define the division of responsibility between Owner and Contractor with respect to security, operation, maintenance, heat, utilities, insurance, and warranties; and (3) describe any other issues related to acceptance of the substantially completed work. Upon reaching agreement with the Contractor, the Construction Manager will write to the Owner, certifying that the work is substantially complete, listing the items of incomplete work, stating the date for completion of incomplete work, defining the division of responsibilities, and setting forth any other terms related to acceptance. The Owner, who has sole discretion for determination of substantial completion, will review the Construction Manager's certification that the work is substantially complete and concurring with that certification, will notify the Contractor, in writing, that the work is accepted as substantially complete. Except for any portion(s) of work specified for early completion or required by the Owner for early possession (paragraph 00710-7.06), substantial completion will not occur for any work until the entire project is ready for possession and use. The acceptance notice will include a punch list of incomplete work items, set the date for their completion, describe the division of responsibility between the Owner and Contractor, and describe any other terms of acceptance. The Contractor will acknowledge receipt of the acceptance notice in writing, indicating acceptance of all of its terms and provisions. Upon receipt of the Contractor's acknowledgment letter, the Owner shall take possession of the work or portion of the work and put it into its intended service. The date that the work or portion of the work is put into service will become the date of substantial completion. Unless otherwise specified, warranties will begin on the date of substantial completion. Subsequent to the substantial completion date, the Owner may exclude the Contractor from the work during such periods when construction activities might interfere with the operation of the project. The Owner, however, shall allow the Contractor reasonable access for completion or correction of incomplete punch list items. 7.06 POSSESSION OF PORTIONS OF THE PROJECT Should the Contractor fail to meet any date specified for substantial completion of the work or any portion of the work requiring early possession and use by the Owner, the Owner may, after a 10-day written notice to the Contractor, take over such

portion or all of the work that is behind schedule. In such case, the Construction Manager will prepare a punch list of incomplete work. The Owner may allow the Contractor reasonable access to the work at such times that the operation of the project will not be affected or he may complete the work himself after giving the Contractor notice of his intention to do so. The cost of Owner's work will be charged to and deducted from amounts due to the Contractor. The substantial completion date will be established as the date when the Owner actually begins using the project or portion of the project for its intended purpose. Division of responsibilities between Owner and Contractor, beginning of warranties, and any other issues relating to substantial completion shall be as specified in paragraph 00710-7.05. 7.07 ACCEPTANCE OF THE PROJECT Upon completion of the work, including portions of the work previously accepted as substantially complete, the Contractor shall so notify the Construction Manager in writing. Upon receipt of the notification, the Construction Manager will determine if the work conforms to the terms of the contract. If he finds materials, equipment, or workmanship which do not meet the terms of the contract, he shall prepare a punch list of such items and submit it to the Contractor. Following completion of the corrective work by the Contractor, the Construction Manager shall notify the Owner that the work has been completed in accordance with the contract. Final determination of the acceptability shall be made by the Owner. Upon acceptance of the project, the Owner shall immediately file a notice of completion. For portions of the project not previously accepted as substantially complete, the conditions of guarantee shall commence on the date that the Owner files a notice of completion. The final application for payment shall be accompanied by all required documentation called for in the contract including complete and legally effective releases or waivers of liens in a form acceptable to Owner. Subject to prior approval of Owner, Contractor may submit in lieu of the lien releases and waivers: (1) receipts of releases in full; (2) an affidavit that the releases and receipts cover all labor, services, materials, and equipment for which a lien could be filed and that all payrolls, materials, and equipment bills and other indebtedness connected with the work for which Owner or Owner's property might in any way be responsible have been paid or otherwise satisfied; and (3) consent of the surety, if any, to final payment. If any subcontractor or supplier fails to furnish a release or receipt in full, Contractor may furnish a bond or other collateral satisfactory to Owner to indemnify Owner against any lien. If, after reviewing the Contractor's final application for payment including all documentation required, the Construction Manager determines that the work is complete, he will recommend that final payment, including all retainages, be made by the Owner. The final payment will be due and payable by the Owner within 30 days after any legal notice periods have expired.

PART 8--VALDEZ PRINCIPLES On May 5, 1990, the Ashland City Council adopted the attached Valdez Principles. In addition to the requirements of ORS 279C.525, all contractors working within the City of Ashland shall adhere to the Valdez Principles in the course of their work.

VALDEZ PRINCIPLES By endorsing these Principles, we publicly affirm our belief that the City of Ashland, Oregon, has a direct responsibility for the environment. We believe that we must conduct the public’s business as responsible stewards of the environment and seek goals only in a manner that leave the Earth healthy and safe. We believe that the City must not compromise the ability of future generations to sustain their needs. We recognize this to be a long term commitment to update our practices continually in light of advances in technology and new understandings in health and environmental science. We intend to make consistent, measurable progress toward the ideal that these principles describe, and to apply them wherever we operate, in a manner consistent with our other obligations under law.

1. Protection of the Biosphere. We will minimize and strive to eliminate the release of any pollutant that may cause environmental damage to air, water or earth or its inhabitants. We will safeguard habitats in creeks, ponds, wetlands, natural areas and will minimize contributing to global warming, depletion of the ozone layer, acid rain or smog.

6. Safe Products and Service. We will provide services that minimize adverse environmental impacts and that are safe for consumers. We will inform consumers of the environmental impacts of our service.

2. Sustainable Use of Natural Resources. We will make sustainable use of renewable natural resources, such as water, soils and forests. We will conserve nonrenewable natural resources through efficient use and careful planning. We will protect wildlife habitat, open spaces and wilderness, while preserving biodiversity.

7. Damage Compensation. We will take responsibility for any harm we cause to the environment by making every effort to fully restore the environment and to compensate those persons who are adversely affected.

3. Reduction of Disposal of Waste. We will minimize the creation of waste, and wherever possible, recycle materials. We will dispose of all wastes through safe and responsible methods.

8. Disclosure. We will disclose to our employees and to the public incidents relating to our operations that cause environmental harm or pose health or safety hazards. We will disclose potential environmental, health or safety hazards posed by our operations, and we will not take any action against employees who report any condition that creates a danger to the environment or poses health and safety hazards.

4. Wise Use of Energy. We will make every effort to use environmentally safe and sustainable energy sources to meet our needs. We will invest in and promote energy efficiency and conservation in our operations and that of our citizens

9. Environmental Directors and Managers. At least one member of management will be a person qualified to represent environmental interests and will commit management resources to implement these Principles.

5. Risk Reduction. We will minimize the environmental, health and safety risks to our employees and the communities in which we operate by employing safe technologies and operating procedures and by being constantly prepared for emergencies.

10. Annual Assessment. We will conduct and make public an annual self-evaluation of our progress in implementing these Principles and in complying with all applicable laws and regulations

Appendix A

BOLI Prevailing Wage Rates

The Oregon Bureau of Labor and Industries is responsible for administering Oregon’s prevailing wage rate (PWR) laws. General information about PWR can be found at the following web site. http://www.boli.state.or.us/BOLI/WHD/PWR/W_PWR_Pwrbk.shtml Pursuant to OAR 839-025-0020(3) and (4), the existing prevailing wage rates applicable to this project are incorporated in these specifications by reference. The current and past prevailing wage rates can be found at the following web site. http://www.boli.state.or.us/BOLI/WHD/PWR/pwr_state.shtml PWR forms can be found at the following web site. http://www.boli.state.or.us/BOLI/WHD/PWR/W_PWR_Forms.shtml