HomeMy WebLinkAboutStandard Form of Agreement with Kreizenbeck Constructors for Water Department Building
_AlA Document 880f'CMa -1992
Standard Form of Agreement Between Owner and Construction Manager
where the Construction Manager is NOT a Constructor
AGREEMENT made as of the First day of December in the year of Two Thousand Six
(In words, indicate day, month and year)
BETWEEN the Owner:
(Name and address)
City of Meridian
660 East Watertower, Suite 200
Meridian, Idaho 83642
and the Construction Manager:
(Name and address)
Kreizenbeck Constructors, Limited Liability Company
251 East Front Street
Suite 110
Boi~l;:, Idaho 83702
for the following Project:
(include detailed description of Project, location, address and scope.)
06-021 Meridian Water Department Building
2235 Northwest 8th Street
Meridian, Idaho 83642
This project consists of a 10,600 square foot single story building of construction class
liB. In addition to normal building construction tasks, this work also includes
construction of fencing and temporary parking areas.
The Architect is:
(Name and address)
BRS Architects
1010 S. AIlante Street, Suite 100
Boise, ID 83709
The Owner and Construction Manager agree as set forth below.
ADDITIONS AND DELETIONS:
The author of this document has
added information needed for its
completion. The author may also
have revised the text of the original
AlA standard form. An Additions and
Deletions Report that notes added
information as well as revisions to
the standard form text is available
from the author and should be
reviewed. A vertical line in the left
margin of this document indicates
where the author has added
necessary information and where
the author has added to or deleted
from the original AlA text.
This document has important legal
consequenCeS. Consultation with an
allorney is encouraged with respect
to its completion or modification.
This document is intended to be
used in conjunction with the 1992
editions of AlA Documents
B141/CMa, A101/CMa and
A2Q1/CMa.
AlA Document 8801 TIICMa - 1992. Copyright @ 1973, 1980 and 1992 by The American Institute of Architects. All rights reserved. WARNING: This AlA"
Document IS protected by U.S. copyright LaW anCllnternltlonal Treaties. Unauthorized reproduction or distribution of this AlA- Document, or any 1
portion of it. may resuh In severe civil and criminal penalties, and will be prosecutld to the maximum extent possible under the law. This document
was produced by AlA software at 13:45:01 on 12/12/2006 under Order No.l000216595_1 which expires on 1/17/2007, and is not for resale.
User Notes: (3144937434)
ARTICLE 1 CONSTRUCTION MANAGER'S RESPONSIBILITIES
g 1.1 CONSTRUCTION MANAGER'S SERVICES
g 1.1.1 The Construction Manager's services consist ofthose services performed by the Construction Manager,
Construction Manager's employees and Construction Manager's consultants as enumerated in Articles 2 and 3 of
this Agreement and any other services included in Article 14.
g 1.1.2 The Construction Manager's services shall be provided in conjunction with the services of an Architect as
described in the edition of AlA Document B 141, Standard Form of Agreement Between Uwner and Architect,
current as of the date of this Agreement. The AIA Document Bl41 was executed before Owner considered
engaging a Construction Manager for this Project. Owner shall notify Architect of the involvement of the
Construction Manager and Owner shall negotiate with Architect any necessary modifications to the AlA Document
B141 to accommodate and incorporate the Construction Manager's services into the Project.
g 1.1.3 The Construction Manager shall provide sufficient organization, personnel and management to carry out the
requirements of this Agreement in an expeditious and economical manner consistent with the interests of the Owner.
g 1.1.4 The services covered by this Agreement are subject to the time limitations contained in Section 13.5.1.
ARTICLE 2 SCOPE OF CONSTRUCTION MANAGER'S BASIC SERVICES
g 2.1 DEFINITION
g 2.1.1 The Construction Manager's Basic Services consist ofthose described in Sections 2.2 and 2.3 and any other
services identified in Article 14 as part of Basic Services.
g 2.2 PRE.CONSTRUCTION PHASE
g 2.2.1 The Construction Manager shall review the program furnished by the Owner to ascertain the requirements of
the Project and shall arrive at a mutual understanding of such requirements with the Owner.
g 2.2.2 The Construction Manager shall provide a preliminary evaluation of the Owner's program, schedule and
construction budget requirements, each in terms of the other.
g 2.2.3 Based on early schematic designs and other design criteria prepared by the Architect, the Construction
Manager shall prepare preliminary estimates of Construction Cost for program requirements using area, volume or
similar conceptuale~liIIlating techniques. The Construction Manager shall provide cost evaluations of alternative
materials and systems.
g 2.2.4 The Construction Manager shall expeditiously review design documents during lheir development and advise
on proposed site use and improvements, selection of materials, building systems and equipment, and methods of
Project delivery. The Construction Manager shall provide recommendations on relative feasibility of construction
methods, availability of materials and labor, time requirements for procurement, installation and construction, and
factors related to construction cost including, but not limited to, costs of alternative designs or materials, preliminary
budgets, and possible economies.
g 2.2.5 The Construction Manager shall prepare and periodically update a Project Schedule for the Architect's review
and the Owner's acceptance. The Constnlction Manager shall obtain the Architect's approval for the portion of the
preliminary project schedule relating to the performance of the Architect's services. In the Project Schedule, the
Construction Manager shall coordinate and integrate the Construction Manager's services, the Architect's services
and the Owner's responsibilities with anticipated construction schedules, highlighting critical and long-lead-time
items.
~ 2.2.6 As the Architect progress with the preparation of the Schematic, Design Development and Construction
Documents, the Construction Manager shall prepare and update, at appropriate intervals agreed to by the Owner,
Construction Manager and Architect, estimates of Construction Cost of increasing detail and refinement. The
estimated cost of each Contract shall be indicated with supporting detail. Such estimate~ ~haU be provided for the
Architect's review and the Owner's approval. The Construction Manager shaU advise the Owner and Architect if it
appears that the Construction Cost may exceed the latest approved Project budget and make recommendations for
corrective action.
AlA Document 8801™CMa-1992. Copyright @1973, 1980 and 1992 by The American Institute of Architects. All rights reserved. WARNING: This AlA"
Document IS protected by U.S. Copyright Law and Inklmatlonal Treaties. Unauthorized reproduction or dlatributlon of this AlAe Document, or any 2
portion of h. may result In severe civil and criminal penalties. and will be prosecuted to the maximum extent possible undar the law. This document
was produced by AlA software at 13:45:01 on 12/12/2006 under Order No.1000216595_1 which expires on 1/17/2007, and is not for resale.
User Notes: (3144937434)
~ 2.2.7 The Construction Manager shall review the Construction Documents and make recommendations whenever
design details adversely affcct constructability, cost or schedules.
~ 2.2.8 The Construction Manager shall be responsible for the assignment of responsibilities for temporary Project
facilities and equipment, materials and services for common use of the Contractors. The Construction Manager shall
verify that such requirements and assignment of re~pun~ibililie~ are included in the proposed Contract Documents.
~ 2.2.9 The Construction Manager shall allocate responsibilities for safety programs among the Contractors.
~ 2.2.10 The Construction Manager shall advise on the division of the Project into individual Contracts for various
categories of Work, including the method to be used for selecting Contractors and awarding Contracts. If multiple
Contracts are to be awarded, the Construction Manager shall review the Construction Documents and make
recommendations as required to provide that (1) the Work of the Contractors is coordinated, (2) all requirements for
the Project have been assigned to the appropriate Contract, (3) the likelihood of jurisdictional disputes has been
minimized, and (4) proper coordination has been provided for phased construction.
5 2.2.11 The Construction Manager shall prepare a Proj ect construction schedule providing for the components of the
Work, including phasing of construction, times of commencement and completion required of each Contractor,
ordering and delivery of products requiring long lead time, and the occupancy requirements of the Owner. The
Construction Manager :shall provide the current Project construction schedule for cach set of bidding documents.
~ 2.2.12 The Construction Manager shall expedite and coordinate the ordering and delivery of materials requiring
long lead time.
~ 2.2.13 The Construction Manager shall assist the Owner in selecting, retaining and coordinating the professional
services of surveyors, special consultants and testing laboratories required for the Project.
~ 2.2.14 The Construction Manager shall provide an analysis of the types and quantities of labor required for the
Project and review the availability of appropriate categories of labor required for critical phases. The Construction
Manager shall make recommendations for actions designed to minimize adverse effects of labor shortages.
~ 2.2.15 The Construction Manager shall assist the Owner in obtaining information regarding applicable
requirements for equal employment opportunity programs for inclusion in the Contract Documents.
~ 2.2.16 Following the Owner's approval ofthe Construction Documents, the Construction Manager shall update and
submit the latest estimate of Construction Cost and the Project construction schedule for the Architect's review and
the Owner's approval.
(Paragraph deleted)
~ 2.2.18 The Construction Manager shall develop bidders' interest in the Project and establish bidding schedules. The
Construction Manager, with the assistance of the Architect, shall issue bidding documents to bidders and conduct
prebid conferences with prospective bidders. The Construction Manager shall assist the Architect with regard to
questions from bidders and with the issuance of addenda.
52.2.19 The Construction Manager shall receive bids, prepare bid analyses and make recommendations to the Owner
for the Owner's award of Contracts or rejection of bids.
~ 2.2.20 The Construction Manager shall assist the Owner in preparing Construction Contracts and advise the Owner
on the acceptability of Subcontractors and material suppliers proposed by Contractors.
~ 2.2.21 The Construction Manager shall assist the Owner in obtaining building permits and special permits for
permanent improvements, except for permits required to be obtained directly by the various Contractors. The
Construction Manager shall verify that the Owner has paid applicable fees and a~~e~~lIleIll~. The Construction
Manager shall assist the Owner and Architect in connection with the Owner's responsibility for filing documents
required for the approvals of governmental authorities having jurisdiction over the Project.
AlA Document B801™CMa -1992. Copyright @1973, 1980 and 1992 by The American Institute of Architects. All rights reserved. WARNING: This AlA"
Doc:umllnt 18 protected by U.S. Copyright Law "nd International T",,"tiea. Unauthorl_ reproduetlon or distribution of this AlA" Docum8nt. or any 3
portion of It, may rlIsuh In severe civil and criminal penahias. and will be prosecutad to the maximum axtent possible undar tha law. This document
was produced by AlA software aI13:4S:01 on 12/12/2006 under Order No.l000216595_1 which expires an 1/17/2007, and is not for resale.
User Notes: (3144937434)
! 2.3 CONSTRUCTION PHASE.ADMINISTRATION OF THE CONSTRUCTION CONTRACT
! 2.3.1 The Construction Phase will commence with the award of the initial Construction Contract or purchase order
and, together with the Construction Manager's obligation to provide Basic Serviccs under this Agreement, will end
30 days after final payment to all Contractors is due.
~ 2.3.2 The Construction Manager shall provide administration of the Contracts for Construction in cooperation with
the Architect as set forth below and in the edition of AlA Document A20l/CMa, General Conditions ofthe Contract
for Construction, Construction Manager-Adviser Edition, current as of the date of this Agreement.
! 2.3.3 The Construction Manager shall provide administrative, management and related services to coordinate
scheduled activities and responsibilities of the Contractors with each other and with those of the Construction
Manager, the Owner and the Architect to endeavor to manage the Project in accordance with the latest approved
estimate of Construction Cost, the Project Schedule and the Contract Documents.
i 2.3.3.1 The Construction Manager shall provide a full time Project Superintendent and any necessary assistants
during the construction phase. The Project Superintendent shall be approved by the Owner, which shall not be
unreasonable withheld. Ifthc Projcct Superintendent leaves the employ of the Construction Manager, the
Construction Manager shall submit his replacement to the Owner for prior approval, which shall not be
unreasonably withheld.
! 2.3.4 The Construction Manager shall schedule and conduct meetings to discuss such matters as procedures,
progress and scheduling. The Construction Manager shall prepare and promptly distribute minutes to the Owner,
Architect and Contractors.
! 2.3.5 Utilizing the Construction Schedules provided by the Contractors, the Construction Manager shall update the
Project construction schedule incorporating the activities of the Contractors on the Project, including activity
sequences and durations, allocation of labor and materials, processing of Shop Drawings, Product Data and Samples,
and delivery of products requiring long lead time and procurement. The Project construction schedule shall include
the Owner's occupancy requirements showing portions of the Project having occupancy priority. The Construction
Manager shall update and reissue the Project construction schedule as required to show current conditions. If an
update indicates that the previously approved Project construction schedule may not be met, the Construction
Manager shall recommend and implement corrective action upon the concurrence of the Owner.
~ 2.3.6 Consistent with the various bidding documents, and utilizing information from the Contractors, the
Construction Manager shall coordinate the sequence of construction and assignment of space in areas where the
Contractors are performing Work.
! 2.3.7 The Construction Manager shall endeavor to obtain satisfactory performance from each of the Contractors.
The Construction Manager shall recommend courses of action to the Owner when requirements of a Contract are not
being fulfilled. The Construction Manager shall implement corrective action to be taken upon the concurrence of
the Owner.
! 2.3.8 The Construction Manager shall monitor the approved estimate of Construction Cost. The Construction
Manager shall show actual costs for activities in progress and estimates for uncompleted tasks by way of comparison
with such approved estimate.
i 2.3.9 The Construction Manager shall develop cash flow reports and forecasts for the Project and advise the Owner
and Architect as to varianccs bctwccn actual and budgeted or estimated costs.
! 2.3.10 The Construction Manager shall maintain accounting records on authorized Work performed under unit
costs, additional Work pertormed on the ba~i~ of actual costs of labor and materials. and other Work requiring
accounting records.
! 2.3.11 The Construction Manager shall develop and implement procedures for the review and processing of
applications by Contractors for progress and final payments.
AlA Document B801™CMa ~ 1992. Copyright @1973, 1980 and 1992 by The American Institute of Architects. All rights reserved. WARNING: This AlA"
DoCument Is proteC1eCl by U.S. Copyright Law Bnd International Treaties. Unlluthorlmd reproduction or dllltrlbution of thlll AlA- Dooument, or any 4
portion of It. may resuh In aevera civil and criminal penalUes, and will be prosecuted to the maximum axtent possible under the law. This document
was produced by AlA software at 13:45:01 on 12/t2/2006 under Order No.l000216595_1 which expires on 1/17/2007, and is not for resale.
User Notes; (3144937434)
~ 2.3.11.1 Based on the Construction Manager's observations and evaluations of each Contractor's Application for
Payment, the Construction Manager shall review and certify the amounts due the respective Contractors.
~ 2.3.11.2 The Construction Manager shall prepare a Project Application for Payment based on the Contractors'
Certificates for Payment. The Construction Manager shall not submit a Project Application for Payment more than
once a month unless agreed to by the Owner.
~ 2.3.11.3 The Construction Manager's certification for payment shall constitute a representation to the Owner, based
on the Construction Manager's determinations at the site as provided in Section 2.3.13 and on the data comprising
the Contractors' Applications for Payment, that, to the best of the Construction Manager's knowledge, information
and belief, the Work has progressed to the point indicated and the quality of the Work is in accordance with the
Contract Documents. The foregoing representations are subject to an evaluation of the Work for conformance with
the Contract Documents upon Substantial Completion, to results of subsequent tests and inspections, to minor
deviations from the Contract Documents correctable prior to completion and to specific qualifications expressed by
the Construction Manager. The issuance of a Certificate for Payment shall further constitute a representation that the
Contractor is entitled to payment in the amount certified.
~ 2.3.11.4 The issuance of a Certificate for Payment shall not be a representation that the Construction Manager has
(1) made exhaustive or continuous on-site inspections to check the quality or quantity of the Work, (2) reviewed
construction means, methods, techniques, sequences for the Contractor'~ own Work, or pro\;euure~, (3) reviewed
copies of requisitions received from Subcontractors and material suppliers and other data requested by the Owner to
substantiate the Contractor's right to payment or (4) ascertained how or for what purpose the Contractor has used
money previously paid on account of the Contract Sum.
~ 2.3.12 The Construction Manager shall review the safety programs developed by each ofthe Contractors for
purposes of coordinating the safety programs with those of the other Contractors. The Construction Manager's
responsibilities for coordination of safety programs shall not extend to direct control over or charge of the acts or
omissions of the Contractors, Subcontractors, agents or employees of the Contractors or Subcontractors, or any other
persons performing portions of the Work and not directly employed by the Construction Manager.
! 2.3.13 The Construction Manager shall determine in general that the Work of each Contractor is being performed
in accordance with the requirements of the Contract Documents, endeavoring to guard the Owner against defects
and deficiencies in the Work. As appropriate, the Construction Manager shall have authority, upon written
authorization from the Owner, to require additional inspection or testing of the Work in accordance with thc
provisions of the Contract Documents, whether or not such Work is fabricated, installed or completed. The
Construction Manager, in consultation with the Architect, may reject Work which does not conform to the
requirements of the Contract Documents.
~ 2.3.14 The Construction Manager shall schedule and coordinate the sequence of construction in accordance with
the Contract Documents and the latest approved Project construction schedule.
~ 2.3.15 With respect to each Contractor's own Work, the Construction Manager shall not have control over or
charge of and shall not be responsible for construction means, methods, techniques, sequences or procedures, or for
safety precautions and programs in connection with the Work of each of the Contractors, since these are solely the
Contractor's responsibility under the Contract for Construction. The Construction Manager shall not be responsible
for a Contractor's failure to carry out the Work in accordance with the respective Contract Documents. The
Construction Manager shall not have control over or charge of acts or omissions of the Contractors, Subcontractors,
or thcir agents or employees, or any other persons performing portions of the Work not directly employed by the
Construction Manager.
~ 2.3.16 The Construction Manager ~hall tran~millo lhe Ardlilecl requests for interpretations of the meaning and
intent of the Drawings and Specifications, and assist in the resolution of questions that may arise.
~ 2.3.17 The Construction Manager shall review requests for changes, assist in negotiating Contractors' proposals,
submit recommendations to the Architect and Owner, and, if they are accepted, prepare Change Orders and
Construction Change Directives which incorporate the Architect's modifications to the Documents.
AlA Document B801 TMCMa ~ 1992. Copyright @ 1973. 1980 and 1992 by The American Institute of Architects. All rights reserved. WARNING: This AlA.
Document" prutecl8d by U.s. Copyright L..w IU1d International Treaties. Unauthorized reproductlon or distribution of this AlA- Document. or IIny
portion of It, may result In aevere clvlllnd crfmlnal penalties, and will be proeecuted to the maximum extant possible under the law. This document
was produced by AlA software at 13:45:01 on 12/12/2006 under Order No. t000216595_1 which expires on 1/17/2007, and is not for resale.
User Notes: (3144937434)
5
~ 2.3.18 The Construction Manager shall assist the Architect in the review, evaluation and documentation of Claims.
~ 2.3.19 The Constmction Manager shall receive certificatcs of insurance from the Contractors and forward them to
the Owner.
~ 2.3.20 in collaboration with the Architect, the Construction Manager shall establish and implement prm;edures for
expediting the processing and approval of Shop Drawings, Product Data, Samples and other submittals. The
Construction Manager shall review all Shop Drawings, Product Data, Samples and other submittals from the
Contractors. The Construction Manager shall coordinate submittals with information contained in related documents
and transmit to the Architect those which have been approved by the Construction Manager. The Construction
Manager's actions shall be taken with such reasonable promptness as to cause no delay in the Work or in the
activities of the Owner or Contractors.
~ 2.3.21 The Construction Manager shall record the progress of the Project. 'The Construction Manager shall submit
monthly written progress reports to the Owner and Architect including information on each Contractor and each
Contractor's Work, as well as the entire Project, showing percentages of completion. The Construction Manager
shall kecp a daily log containing a record of weather, each Contractor's Work on the site, number of workers,
identification of equipment, Work accomplished, problems encountered, and other similar relevant data as the
Owner may require.
~ 2.3.22 The Construction Manager shall maintain at the Project site for the Owner one record copy of all Contracts,
Drawings, Specifications, addenda, Change Orders and other Modifications, in good order and marked currently to
record changes and selections made during construction, and in addition, approved Shop Drawings, Product Data,
Samples and similar required submittals. The Construction Manager shall maintain records, in duplicate, of principal
building layout lines, elevations of the bottom of footings, floor levels and key site elevations certified by a qualified
surveyor or professional engineer. The Construction Manager shall make all such records available to the Architect
and upon completion ofthe Project shall deliver them to the Owner.
~ 2.3.23 The Construction Manager shall arrange for the delivery, storage, protection and security of Owner-
purchased materials, systems and equipment that are a part of the Project until such items are incorporated into the
Project.
~ 2.3.24 With the Architect and the Owner's maintenance personnel, the Construction Manager shall observe the
CUlItractors' final testing, commissioning, and start-up of utilities, operational systems and equipment.
Commissioning shall in this instance mean the effort required to demonstrate that the mechanical and electrical
systems of this building work and work together to accomplish the designed environment.
~ 2.3.25 When the Construction Manager considers each Contractor's Work or a designated portion thereof
substantially complete, the Construction Manager shall, jointly with the Contractor, prepare for the Architect a list of
incomplete or unsatisfactory items and a schedule for their completion. The Construction Manager shall assist the
Architect in conducting inspections to determine whether the Work or designated portion thereof is substantially
complete.
~ 2.3.26 The Construction Manager shall coordinate the correction and completion of the Work. Following issuance
of a Certificate of Substantial Completion of the Work or a designated portion thereof, the Construction Manager
shall evaluate the completion of the Work ofthe Contractors and make recommendations to the Architect when
Work is ready for final inspection. The Construction Manager shall assist the Architect in conducting final
inspections.
~ 2.3.27 The Construction Manager shall secure and transmit to the Architect warranties and similar submittals
required by the Cuntral:t DOl:uments for delivery to the Owner and dclivcr all keys, manuals, record drawings and
maintenance stocks to the Owner. The Construction Manager shall forward to the Architect a final Project
Application for Payment upon compliance with the requirements of the Contract Documents.
~ 2.3.28 Duties, responsibilities and limitations of authority of the Construction Manager as set forth in the Contract
Documents shall not be restricted, modified or extended without written consent of the Owner, Construction
Manager, Architect and Contractors. Consent shall not be unreasonably withheld.
AlA Document B801™CMa -1992. Copyright @ 1973,1980 and 1992 by The American Institute of Architects. All rights reserved. WARNING: This AlA'"
Documant Is protll..wd by U.S. Copyright Law and International Treaties. Unauthorlzod reproduction or distribution of this AlA'" Document, or any 6
portion of h, may resuh In severa civil and criminal penalUes. and will ba prosecuted to the maximum extent possibla under the law. This document
was produced by AlA software at 13:45:01 on 12/12/2006 under Order No.l000216595_1 which expires on 1/17/2007, and is not for resale.
User Notes: (3144937434)
~ 2.3.29 The Construction Manager shall provide coordination and procurement efforts during the Contractor's one
(1) year period of corrcction of Work for any repuir or maintenance services for work performed as part of this
construction project. Compensation for such effort shall be included as part of basic compensation for construction
phase services.
~ 2.3.30 The Construction Manager with the Architect and Owner shall conduct a site visit prior to the expiration of
the Contractor's one (1) year period of correction of Work regardless of final payment of compensation to the
Construction Manager.
ARTICLE 3 ADDITIONAL SERVICES
~ 3.1 GENERAL
~ 3.1.1 The services described in this Article 3 are not included in Basic Services unless so identified in Article 14,
and they shall be paid for by the Owner as provided in this Agreement, in addition to the compensation for Basic
Services. The Optional Additional Services described under Section 3.3 shall only be provided if authorized or
confirmed in writing by the Owner. If services described under Contingent Additional Services in Section 3.2 are
required due to circumstances beyond the Construction Manager's control, the Construction Manager shall notify
the Owner prior to commencing such services. If the Owner deems that such services described under Section 3.2
are not required, the Owner shall give prompt written notice to the Construction Manager. If the Owner indicates in
writing that all or part of such Contingent Additional Services are not required, the Construction Managcr shall havc
no obligation to provide those services.
~ 3.2 CONTINGENT ADDITIONAL SERVICES
~ 3.2.1 Providing services required because of significant changes in the Project including, but not limited to,
changes in size, quality, complexity or the Owner's schedule.
~ 3.2.2 Providing consultation concerning replacement of Work damaged by fire or other cause during construction,
and furnishing services required in connection with the replacement of such Work.
~ 3.2.3 Providing services made necessary by the termination or default of the Architect or a Contractor, by major
defects or deficiencies in the Work of a Contractor, or hy failure of performance of either the Owner or Contractor
under a Contract for Construction.
S 3.2.4 Providing services in evaluating an extensive number of claims submitted by a Contractor or others in
connection with the Work.
~ 3.2.5 Providing services in connection with a public hearing, arbitration proceeding or legal proceeding except
where the Construction Manager is party thereto.
S 3.3 OPTIONAL ADDITIONAL SERVICES
(Paragraphs deleted)
~ 3.3.6 Providing any other services not otherwise included in this Agreement.
ARTICLE 4 OWNER'S RESPONSIBILITIES
~ 4.1 The Owner shall provide full information regarding requirements for the Project, including a program which
shall set forth the Owner's objectives, schedule, constraints and criteria, including spacp. requirp.ments and
relationships, flexibility, expandability, special equipment, systems, and site requirements.
S 4.2 The Owner shall cstablish and update an overall budget for the Project based on consultation with the
Construction Manager and Architect, which shall include the Construction Cost, the Owner's other costs and
reasonable contingencies related to all of these costs.
AlA Document B801T11CMa -1992. Copyright @1973, 1980 and 1992 by The American Institute of Architects. All rights reserved. WARNING: This AlA"
Document Is protected by U.S. Copyright Law lInd Intcmlltlonlll Treaties. Unauthori:red reproduction or distribution of this AlA. Document, or any
portion of h, may result in severe civil and criminal penahies, and will be prosacuted to the maximum extent possible under the law. This document
was produced by AlA software at 13:45:01 on 12/12/2006 under Order No.1000216595_1 which expires on 1/17/2007, and is not for resale.
User Notes: (3144937434)
7
(Paragraph deleted)
~ 4.4 The Owner shall designate a representative authorized to act on the Owner's behulf with respect to the Project.
The Owner, or such authorized representative, shall render decisions in a timely manner pertaining to documents
submitted by the Construction Manager in order to avoid unreasonable delay in the orderly and sequential progress
of the Construction Manager's services.
~ 4.5 The Owner shall retain an architect whose services, duties and responsibilities are described in the edition of
AIA Document B 141, Standard Form of Agreement Between Owner and Architect, current as of the date of this
Agreement. The Terms and Conditions of the Agreement Between the Owner and Architect shall be furnished to the
Construction Manager and shall not be modified without written consent of the Construction Manager, which
consent shall not be unreasonably withheld. The Construction Manager shall not be responsible for actions taken by
the Architect.
6 4.6 The Owner shall furnish structural, mechanical, chemical, air and water pollution tests, tests for hazardous
materials, and other laboratory and environmental tests, inspections and reports required by law or the Contract
Documents.
g 4.7 The Owner shall furnish all legal, accounting and insurance counseling services as may be necessary at any
time for the Project, including auditing ~ervil:e~ the Owner may require to verify the Contractors' Applications for
Payment or to ascertain how or for what purposes the Contractors have used the money paid by or on behalf of the
Owner.
~ 4.8 The Owner shall furnish the Construction Manager with a sufficient quantity of Construction Documents.
~ 4.9 The services, information and reports required by Sections 4.5 through 4.8 shall be furnished at the Owner's
expense, and the Construction Manager shall be entitled to rely upon the accuracy and completeness thereof.
~ 4.10 Prompt written notice shall be given by the Owner to the Construction Manager and Architect if the Owner
becomes aware of any fault or defect in the Project or nonconformance with the Contract Documents.
~ 4.11 The Owner reserves the right to perform construction and operations related to the Project with the Owner's
own forces, and to award contracts in connection with the Project which are not part of the Construction Manager's
responsibilities under this Agreement. The Construction Manager shall notify the Owner if any such independent
action will interfere with the Construction Manager's ability to perform the Construction Manager's responsibilities
under this Agreement. When performing construction or operations related to the Project, the Owner agrees to be
subject to the same obligations and to have the same rights as the Contractors.
~ 4.12 Information or services under the Owner's control shall be furnished by the Owner with reasonable
promptness to avoid delay in the orderly progress of the Construction Manager's services and the progress of the
Work.
ARTICLE 5 CONSTRUCTION COST
~ 5.1 DEFINITION
fi 5.1.1 The Constrnction Cost shall be the total cost or estimated cost to the Owner of all elements of the Project
designed or specified by the Architect.
~ 5.1.2 The Construction Cost shall include the cost at current market rates of labor and materials furnished by the
Owner and equipment designed, specified, selected or specially provided for by the Architect, plus a reasonable
allowance for the Contractors' overhead and profit. In addition, a reasonable allowance for contingencies shall be
im.:luded for market conditions at the time of bidding and for changes in the Work during construction. Except as
provided in Section 5.1.3, Construction Cost shall also include the compensation ofthe Construction Manager and
Construction Manager's consultants.
~ 5.1.3 Construction Cost does not include the compensation ofthe Architect and Architect's consultants, costs of the
land, rights-of- way, financing or other costs which are the responsibility of the Owner as provided in Article 4. If
any portion of the Construction Manager's compensation is based upon a percentage of Construction Cost, then
AlA Document B801 TMCMa - 1992. Copyright @ 1973, 1980 and 1992 by The American Institute of Architects. All rights reserved. WARNING: This AlA-
Document III prat8Cted by U.S. Copyright Lew and International Treatlell. Unlluthorlzed reproduction or distribution of this AlA" Document, or any 8
portion of It, may resuh In severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document
was produced by AlA software at 13:45:01 on 12/12/2006 under Order No.1000216595_1 which expires on 1/17/2007, and is not for resale.
User Notes: (3144937434)
Construction Cost, for the purpose of determining such portion, shall not include the compensation of the
Construction Manager or Construction Manager's consultants.
i 5.2 RESPONSIBILITY FOR CONSTRUCTION COST
i 5.2.1 Evaluations of the Owner's Project budget, preliminary estimates of Construction Cost and detailed estimates
of Construction Cost prepared by the Construction Manager represent the Construction Manager's bcst judgmcnt as
a person or entity familiar with the construction industry. It is recognized, however, that neither the Construction
Manager nor the Owner has control over the cost of labor, materials or equipment, over Contractors' methods of
determining bid prices, or over competitive bidding, market or negotiating conditions. Accordingly, the Construction
Manager cannot and does not warrant or represent that bids or negotiated prices will not vary from the Project
budget proposed, established or approved by the Owner, or from any cost estimate or evaluation prepared by the
Construction Manager.
~ 5.2.2 No fixed limit of Construction Cost shall be established as a condition of this Agreement by the furnishing,
proposal or establishment of a Project budget unless such fixed limit has been agreed upon in writing and signed by
the parties hereto. If such a fixed limit has been established, the Construction Manager shall be permitted to include
contingencies for design, bidding and price escalation, and shall consult with the Architect to determine what
materials, equipment, component systems and types of construction are to be included in the Contract Documents, to
suggest reasonable adjustments in the scope of the Project, and to suggest inclusion of alternate bids in the
Construction Documcnts to adjust the Construction Cost to the fixed limit. Fixed limits, if any, shall be increased in
the amount of any increase in the Contract Sums occurring after execution of the Contracts for Construction.
~ 5.2.3 If the Bidding or Negotiation Phase has not commenced within 90 day~ aner ~ubIIlitlal of the Construction
Documents to the Owner, any Project budget or fixed limit of Construction Cost shall be adjusted to reflect changes
in the general1evel of prices in the construction industry between the date of submission of the Construction
Documents to the Owner and the date on which proposals are sought.
~ 5.2.4 If a fixed limit of Construction Cost (adjusted as provided in Section 5.2.3) is exceeded by the sum of the
lowest bona fide bids or negotiated proposals plus the Construction Manager's estimate of other elements of
Construction Cost for the Project, the Owner shall:
.1 give written approval of an increase in such fixed limit;
.2 authorize rebidding or renegotiating of the Project within a reasonable time;
.3 if the Project is abandoned, terminate in accordance with Section 9.3; or
.4 cooperate in revising the Project scope and quality as required to reduce the Construction Cost.
g 5.2.5 Ifthe Owner chooses to proceed under Section 5.2.4.4, the Construction Manager, without additional charge,
~hal1 cooperate with the Owner and Architect as necessary to bring the Construction Cost within thc fixed limit, if
established as a condition of this Agreement.
ARTICLE 6 CONSTRUCTION SUPPORT ACTIVITIES
g 6.1 Construction support activities, if provided by the Construction Manager, shall be governed by separate
contractual agreements unless otherwise provided in Article 14.
g 6.2 Reimbursable expenses listed in Article 14 for construction support activities may be subject to trade discounts,
rebates. refunds and amounts received from sales of surplus materials and equipment which shall accrue to the
Owner, and the Construction Manager shall make provisions so that they can be secured.
ARTICLE 7 OWNERSHIP AND USE OF ARCHITECT'S DRAWINGS. SPECIFICATIONS AND OTHER DOCUMENTS
g 7.1 The Drawings, Specifications and other documents prepared by the Architect are instruments of the Architect's
service through which the Work to be executed by the Contractors is described. The Construction Manager may
retain one record set. The Construction Manager shall not own or claim a copyright in the Drawings, Specifications
and other documents prepared by the Architect, and unless otherwise indicated the Architect shall be deemed the
author of them and will retain all common law, statutory and other reserved rights, in addition to the copyright. All
copies of them, except the COIl~truction Manager's record set, shall be returned or suitably accounted for to the
Architect, on request, upon completion of the Project. The Drawings, Specifications and other documents prepared
by the Architect, and copies thereof furnished to the Construction Manager, are for use solely with respect to this
Project. They are not to be used by the Construction Manager on other projects or for additions to this Project
AlA Document B801TMCMa~ 1992. Copyright @ 1973.1980 and 1992 by The American Institute of Architects. All rights reserved. WARNING: This AlAe
Document Is protactad by U.S. Copyright Law and International Treatl8s. UnauthorlZlld reproduction or dilltrlbutlon of this AlAe Document. or any
portion of h, may resuh in severe civil and criminal penahiall, and will be prosecuted to the maximum extent possible under the law. This document
was produced by AlA software at 13:45:01 on 12/12/2006 under Order No_1000216595_1 which expires on 1/17/2007, and is not for resale.
User Notes: (3144937434)
9
outside the scope of the Work without the specific written consent of the Owner and Architect. The Construction
Manager is granted a limited license to use and reproduce applicable portions of the Drawings, Specifications and
other documents prepared by the Architect appropriate to and for use in the performance of the Construction
Manager's services under this Agreement.
All copies made under this license shall bear the statutory copyright notice, if any, ~hown un lhe Drawings,
Specifications and other documents prepared by the Architect. Submittal or distribution to meet official regulatory
requirements or for other purposes in connection with this Project is not to be construed as publication in derogation
of the Architect's copyright or other reserved rights.
ARTICLE 8 ARBITRATION
8.5 Refer to Article 14.
(Paragraphs deleted)
ARTICLE 9 TERMINATION, SUSPENSION OR ABANDONMENT
59.1 This Agreement may be terminated by either party upon not less than seven days' written notice should the
other party fail substantially to perform in accordance with the terms of this Agreement through no fault of the party
initiating the termination.
59.2 If the Project is suspended by the Owner for more than 30 consecutive days, the Construction Manager shall be
compensated for services performed prior to notice of such suspension. When the Project is resumed, the
Construction Manager's compensation shall be equitably adjusted to provide for expenses incurred in the
interruption and resumption of the Construction Manager's services.
59.3 This Agreement may be terminated by the Owner upon not less than seven days' written notice to the
Construction Manager in the event that the Project is permanently abandoned. If the Project is abandoned by the
Owner for more than 90 consecutive days. the Construction Manager may terminate this Agreement by giving
written notice.
5 9.4 Failure of the Owner to make payments to the Construction Manager in accordance with this Agreement shall
be considered substantial nonperformance and cause for termination.
5 9.5 If the Owner fails to make payment when due the Construction Manager for services and expenses, the
Construction Manager may, upon seven days' written notice to the Owner, suspend performance of services under
this Agreement. Unless payment in full is received by the Construction Manager within seven days of the date ofthe
notice, the suspension shall take effect without funher notice. In the event of a suspension of services, the
Construction Manager shall have no liability to the Owner for delay or damage caused to the Owner because of such
suspension of services.
5 9.6 In the event of termination not the fault of the Construction Manager, the Construction Manager shall be
compensated for services performed prior to termination, together with Reimbursable Expenses then due and all
Termination Expenses as defined in Section 9.7.
fi 9.7 Termination Expenses are those costs directly attributable to termination for which the Construction Manager
is not otherwise compensated.
ARTICLE 10 MISCELLANEOUS PROVISIONS
fi 10.1 Unless otherwise provided, this Agreement shall be governed by the law of the place where the Project is
located.
fi 10.2 Terms in this Agreement shall have the same meaning as those in the edition of AlA Document A20l/CMa,
General Conditions of the Contract for Construction, Construction Manager-Adviser Edition, current as of the date
of this Agreement.
AlA Document B801 TMCMa - 1992. Copyright @ 1973. 1980 and 1992 by The American Institute of Architects. All rights reserved. WARNING: This AlA-
Document 18 protected by U.S. Copyright Law and International Treatlee. Unauthorized reproduction or distribution of this AlA. Document. or any 10
portion of h, may resuh In severe civil and criminal penalties, and will be prosecuted to the maximum extent possible undar the law. This document
was produced by AlA software at 13:45:01 on 12/1212006 under Order No.l000216595_1 which expires on 1/17/2007, and is not for resale.
User Notes: (3144937434)
(Paragraph deleted)
~ 10.3 Refer to Atticle 14.
~ 10.4 Waivers of Subrogation. The Owner and Construction Manager waive all rights against each other and against
the Contractors, Architect, consultants, agents and employees of any of them, for damages, but only to the exlenl
covered by property insurance during construction, except such rights as they may have to the proceeds of such
insurance as set forth in the edition of AlA Document A20l/CMa, General Conditions of the Contract for
Construction, Construction Manager-Adviser Edition, current as of the date of this Agreement. The Owner and
Construction Manager each shall require similar waivers from their Contractors, Architect, consultants, agents, and
persons or entities awarded separate contracts administered under the Owner's own forces.
g 10.5 The Owner and Construction Manager, respectively, bind themselves, their partners, successors, assigns and
legal representatives to the other party to this Agreement and to the partners, successors, assigns and legal
representatives of such other party with respect to all covenants of this Agreement. Neither Owner nor Construction
Manager shall assign this Agreement without the written consent of the other.
~ 10.6 This Agreement represents the entire and integrated agreement between the Owner and Construction Manager
and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be
amended only by written instrument signed by both Owner awl Con~tru(;Lion Manager.
g 10.7 Nothing contained in this Agreement shall create a contractual relationship with or a cause of action in favor
of a third party against either the Owner or Construction Manager.
g 10.8 Unless otherwise provided in this Agreement, the Construction Manager and the Construction Manager's
consultants shall have no responsibility for the discovery, presence, handling, removal or disposal of or exposure of
persons to hazardous materials in any form at the Project site, including but not limited to asbestos, asbestos
products, polychlorinated biphenyl (PCB) or other toxic substances.
~ 10.9 The Construction Manager shall be licensed in the State of Idaho and conform to all applicable requirements
ofIdaho Code, Title 54, Chapter 45.
g 10.10 Construction Manager shall perform all of Construction Manager's services in compliance with all
applkab1e laws, ordinances, rules, regulations, or orders of any public authority having jurisdiction over the Project,
any applicable permits and any recorded covenants, conditions, and restrictions affecting the Site.
g 10.11. The Construction Manager shall indemnify, defend, and hold harmless the Owner, its officers, agent~, and
employees from and against any liability, claims, damages, losses, expenses, actions and suits, including but not
limited to attorney's fees, arising out of or resulting from the negligent performance or omission by the Construction
Manager, its employees, agents, or anyone for whose acts they may be liable under this Agreement. This
indemnification shall survive completion of services provided under or the termination of this agreement. The
Construction Manager's liability is limited to the limits of insurance set forth in article 14.1.
ARTICLE 11 INSURANCE
g 11.1 CONSTRUCTION MANAGER'S LIABILITY INSURANCE
g 11.1.1 Thc Construction Munuger shull purchase from and maintain in a company or companies lawfully
authorized to do business in the jurisdiction in which the Project is located such insurance as will protect the
Construction Manager from claims set forth below which may arise out of or result from the Construction
Manager's operation~ under llus Agreement and for which the Construction Manager may be legally liable.
.1 claims under workers compensation, disability benefit and other similar employee benefit acts which
are applicable to the operations to be performed;
.2 claims for damages because of bodily injury, occupational sickness or disease, or death of the
Construction Manager's employees;
AlA Document B801™CMa -1992. Copyright @ 1973,1980 and 1992 by The American Institute of Architects. All rights reserved. WARNING: This AlA.
Document Is pro1ec\ed by U.S. Copyright Law and lntemotlorwtl Treaties. Unauthorlmd reproduction or diatrlbution of this AlA. Dooument. or any 11
portion of ", may reau" In severe clvUand criminal pana"illll. and will be prosecuted to the maximum extent possible undar tha law. This document
was produced by AlA software at 13:45:01 on 12/12/2006 under Order No.1 000216595_1 which expires on 1/17/2007, and is not for resale.
User Notes: (3144937434)
.3 claims for damages because of bodily injury, sickness or disease, or death of any person other than
the Construction Manager's employees;
.4 claims for damages insured by usual personal injury liability coverage which are;: sustained (1) by a
person as a result of an offense directly or indirectly related to employment of such person by the
Construction Manager, or (2) by another person;
.5 claims for damages, other than to the Work itselt, because ot injury to or destruction of tangible
property, including loss of use resulting therefrom;
.6 claims for damages because of bodily injury, death of a person or property damage arising out of
ownership, maintenance or use of a motor vehicle.
5 11.1.2 The insurance required by Section 11.1.1 shall be written for not less than limits of liability specified in
Article 14 or required by law, whichever coverage is greater. All required coverage, except for any required
professional liability coverage, must be written on an occurrence basis and shall be maintained without interruption
from date of commencement of services under this Agreement until date of final payment and termination of any
coverage required to be maintained after final payment. Policies required by Section 11.1.1 shall name Owner as an
additional insured.
~ 11.1.3 The Construction Manager shall provide errors and omissions professional liability insurance in the amount
specified in Article 14 on an aggregate limits "claims made" basis. Construction Manager shall maintain the
specified levels of aggregate limits "claims made" insurance for no less than two years after completion or
termination of Construction Manager's services under this Agreement.
~ 11.1.4 Certificates of insurance acceptable to Owner shall be filed with the Owner prior to performance of services
under this Agreement. Each certificate shall contain the following covenant of the issuer: "Should any of the above
described policies be cancelled before the expiration date thereof, the issuing company will mail 10 day's written
notice to the certificate holder."
~ 11.1.5 Refer to Articlc 14.
ARTICLE 12 PAYMENTS TO THE CONSTRUCTION MANAGER
g 12.1 DIRECT PERSONNEL EXPENSE
~ 12.1.1 Direct Personnel Expense is defined as the direct salaries of the Construction Manager's personnel engaged
on the Project and the portion of the cost of their mandatory and customary contributions and benefits related
thereto, such as employment taxes and other statutory employee benetlts, insurance, sick leave, holidays, vacations,
pensions and similar contributions and benefits.
~ 12.2 REIMBURSABLE EXPENSES
~ 12.2.1 Reimbursable Expense are in addition to compensation for Basic and Additional Services and include
expenses incurred by the Construction Manager and Construction Manager's employees and consultants in the
interest of the Project, as identified in the following Clauses.
~ 12.2,1.1 Expense of long distance communications and fees paid for securing approval of authorities having
jurisdiction over the Project.
~ 12.2.1.2 Expense ofreproductions, postage, express deliveries and handling of Drawings, Specifications and other
documents.
g 12.2.1.3 If authorized in advance by the Owner, expense of ovenime work requiring higher than regular rate~.
~ 12.3 PAYMENTS ON ACCOUNT OF BASIC SERVICES
AlA Document B801T1lCMa -1992. Copyright @1973, 1980 and 1992 by The American Institute of Architects. All rights reserved. WARNING: This AlA"
Documant IS pro1ected by U.S. Copyright Law and Intarnatlonal Treatle.. Unauthorized reproduction or distribution of this AlA" Document, or any 12
portion of h. may resuh In sevare civllsnd criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document
was produced by AlA software at 13:45:01 an 12/12/2006 under Order No.1 000216595_1 which expires on 1/17/2007, and is not for resale.
User Notes: (3144937434)
(Paragraph deleted)
g 12,3,2 Subsequent payments for Basic Services shall be made monthly and, where applicable, shall be in
proportion to services performed within each phase of service, on the basis set forth in Section 13.2.1.
912,3,31f and to the extent that the time initially established in Section 13.5.1 of this Agreement is exceeded or
extended through no fault of the Construction Manager, compensation for any services rendered during the
additional period of time shall be computed in the manner set forth in Section 13.3.1.
9 12.3.4 When compensation is based on a percentage of Construction Cost and any portions of the Project are
deleted or otherwise not constructed. compensation for those portions of the Project shall be payable to the extent
services are performed on those portions, in accordance with Section 13.2.1, based on (1) the lowest bona fide bids
or negotiated proposals, or (2) if no such bids or proposals are received, the latest approved estimate of such portions
of the Project.
912.4 PAYMENTS ON ACCOUNT OF ADDITIONAL SERVICES AND REIMBURSABLE EXPENSES
g 12.4.1 Payments on account of the Construction Managcr's Additional Scrviccs and fOf Reimbursable Expenses
shall be made monthly upon presentation of the Construction Manager's statement of services rendered or expenses
incurred.
g 12.5 PAYMENTS WITHHELD
g 12.5.1 No deductions shall be made from the Construction Manager's compensation on account of penalty,
liquidated damages or other sums withheld from payments to Contractors, or on account of the cost of changes in
Work other than those for which the Construction Manager has been found to be liable.
fi 12,6 CONSTRUCTION MANAGER'S ACCOUNTING RECORDS
fi 12,6,1 Records of Reimbursable Expenses and expenses pertaining to Additional Services and services performed
on the hasis of a multiple of Direct Personnel Expense shall be available to the Owner or the Owner's authorized
representative at mutually convenient times.
ARTICLE 13 BASIS OF COMPENSATION
The Owner shall compensate the Construction Manager as follows:
g 13,1 AN INITIAL PAYMENT of Zero Dollars and Zero Cents ($ 0.00 ) shall be made upon execution of this
Agreement and credited to the owner's account at final payment.
913.2 BASIC COMPENSATION
fi 13.2.1 FOR BASIC SERVICES, as described in Article 2, and any other services included in Article 14 as part of
Basic Services, Basic Compensation shall be computed as follows:
For Pre-Construction Phase Services:
(Insert basis of compensation, including stipulated sums, multiples or percenta!{es.)
Por Construction Phasc Scrviccs:
(Insert basis of compensation, including stipulated sums, multiples or percentages.)
Compensation for construction phase is 6.25% of Con~tru(;tion Co~t to be fixed at the completion of the bidding
phase and incorporated into this Agreement by written addendum.
913.3 COMPENSATION FOR ADDITIONAL SERVICES
fi 13.3.1 FOR ADDITIONAL SERVICES OF THE CONSTRUCTION MANAGER, as described in Article 3, and
any other services included in Article 14 as Additional Services, compensation shall be computed as follows:
AlA Document B801T11CMa -1992. Copyright @ 1973.1980 and 1992 by The American Institute of Architects. All rights reserved. WARNING: This AlAe
Document Is protelOkld by U,S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AlA. Document, or any 13
portion of h, may result In severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document
was produced by AlA software at 13:45:01 on 12/12/2006 under Order No.1000216595_1 whiCh expires on 1/17/2007, and is not for resale.
User Notes: (3144937434)
(Insert basis of compensation, including rates and/or multiples of Direct Personnel Expense for Principals and
employees, and identify Principals and classify employees, if required. Identify specific services to which particular
methods of compensation apply, if necessary.)
Direct cost plus 6.25%.
~ 13.4 REIMBURSABLE EXPENSES
~ 13.4.1 FOR REIMBURSABLE EXPENSES, as described in Section 12.2, and any other items included in Article
14 as Reimbursable Expenses, a multiple of One ( 1.00 ) times the expenses incurred by the Construction
Manager and the Construction Manager's employees and consultants in the interest of the Project.
~ 13.4.2 At the completion of the bidding phase, Construction Manager shall present to Owner a budget allowance
for Reimbursable Expense which, if approved by Owner, shall be incorporated into this Agreement by written
amendment.
~ 13.5 ADDITIONAL PROVISIONS
~ 13.5.1 IF THE BASIC SERVICES covered by this Agreement have not been completed within Eighteen (18)
months of the date hereof, through no fault of the Construction Manager, extension of the Construction Manager's
services beyond that time shall be compensated as providcd in Scctions 12.3.3 and 13.3.1.
~ 13.5.2 Payments are due and payable Fifteen ( 15 ) days from the date of the Construction Manager's invoice.
Amounts unpaid Thirty ( 30 ) days after the invoice date shall bear interest at the rate entered below, or in the
absence thereof at the legal rate prevailing from time to time at the principal place of business of the Construction
Manager.
(Insert rate of interest agreed upon.)
10.25% per annum
(Usury laws and requirements under the Federal Truth in Lending Act, similar state and local consumer credit laws
and other regulations at the Owner's and Construction Manager's principal places of business. the location of the
Project and elsewhere may affect the validity of this provision. Specific legal advice should be obtained with respect
to deletions or modifications, and also regarding requirements such as written disclosures or waivers.)
~ 13.5.3 The rates and multiples set forth for Additional Services shall be annually adjusted in accordance with
normal salary review practices of the Construction Manager.
ARTICLE 14 OTHER CONDITIONS OR SERVICES
(Insert descriptions of other services, identify Additional Services included within Basic Compensation and
modifications to the payment and compensation terms included in this Agreement.)
8.5 Claims, disputes or other matters in question between the parties to this agreement arising out of or relating to
this agreement or breach thereof shall be subject to mediation as a condition precedent to the institution of legal or
equitable proceedings by either party.
8.5.1 The parties shall endeavor to resolve their claims by mediation which, unless the parties mutually agree
otherwise, shall be in accordance with the Construction Industry Mediation Rules of the American Arhitration
Association currently in effect. Request for mediation shall be filed with the other party to the agreement. The
request may be made concurrently with the filing of a legal action but, in such event, mediation shall proceed in
advance of legal or equitable procccdings, which shall be stuyed pending mediation for a period of sixty (60) days
from the date of filing, unless stayed for a longer period by agreement of the parties or court order. .
8.5.2 The parties shall endeavor to mutually agree on an independent, prore~~iolla1 mediator within 15 days of the
request for mediation. The parties shall share the mediator's fee equally. Agreements reached in Mediation shall be
enforceable as settlement agreements in any court having jurisdiction thereof. The parties shall pay all of their own
expenses associated with mediation, including any attorney tees and travel expenses.
AlA Document B801™CMa -1992. Copyright @1973, 1980 and 1992 by The American Institute of Architects. All rights reserved. WARNING: This AlA"
Document la proIBctad by U.S. Copyright Law and International Treaties. Unauthorl_d reprocluetlon or distribution of this AlA- Document, or any 14
portion of h. may reauh In sevara civil and criminal penalties, and will be prosecutad to the maximum extent possible under the law. This document
was produced by AlA software at 13:45:0t on 12/12/2006 under Order No.l000216595_1 which expires on 1/17/2007, and is not for resale.
User Notes: (3144937434)
8.5.3 In the event that legal or equitable proceedings are instituted between the parties to this Agreement to enforce
the terms and conditions of this agreement or arising from the breach of any provision hereof, the prevailing party
will be entitled to receive from the other party all costs, damages, and expenses, including reasonable attorney's
fees, incurred by the prevailing party, whether or not such controversy or claim is litigated or prosecuted to
judgment. The prevailing party will be that party who was awarded judgment as a result of trial or other proceeding
and determined to be the prevailing party by the judge or other presiding authority.
10.3 Causes ot action between the parties to this agreement pertaining to acts or failures to act shall be deemed to
have accrued and the applicable statutes of limitations shall commence to run not earlier than the date of issuance of
final Certificate of Payment.
AlA Document B801TNCMa-1992. Copyright @ 1973.1980 and 1992 by The American Institute of Architects. All rights reserved. WARNING: This AlA"
Document la proteGted by U.S. Copyright Law and International Treaties. Unauthorized roproduction or distribution of this AlA- Dooument, or any 15
portion of It, may resuh in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document
was produced by AlA software at 13:45:01 on 12/12/2006 under Qrder No.1000216595_1 which expires on 1/17/2007, and is not for resale.
User Notes: (3144937434)
514.1 LIMITS ON INSURANCE
The insurance required by Article 11 shall be written for not less than the following limits, or greater if required by
law:
(Paragraph deleted)
11.1.3
Worker's Compensation:
a) State: Idaho
b) Applicable Federal
c) Employer's Liability
Statutory
Statutory
$100,000 per accident
$500,000 Disease, Policy Limit
$100,000 Disease, Each Employee
.Comprehensive or Commercial General Liability (including Premises-Operations; Independent Contractors' Protective;
Products and Completed Operations; Broad Form Properly Damage):
a) Bodily Injury: $1,000,000 Each Occurrence
$2,000,000 Aggregate
$1,000,000 Each Occurrence
$2,000,000 Aggregate
Products and Completed Operations to be maintained for at least three years after final payment:
$1,000,000 Aggregate
d) Properly Damage Liability Insurance shall provide X, C, and U coverage.
e) Broad Form Properly Damage Coverage shall include Completed Operations.
Contractual Liability:
a) Bodily Injury:
b) Properly Damage:
Properly Damage:
b)
c)
$1,000,000
$1,000,000
$2,000,000
Personal Injury, with Employment Exclusion deleted:
$1,000,000 Aggregate
Business Automobile Liability (including owned, non-owned and hired vehicles):
a) Bodily Injury: $1,000,000 Each Occurrence
b) Property Damage: $1,000,000 Each Occurrence
Professional Liability:
Each Occurrence
Each Occurrence
Aggregate
$1,000,000
Aggregate
14.2
See Exhibit "A" attached hereto and made a part thereof.
(Rows deleted)
This Agreement entered into as of the day and year first written above.
OWNER ~
~~
(Signature)
I Tammy de Weerd, Mayor
(Printed name and title)
CONSTRUCTION MANAGER
Mt/I;} /S/11,rd,?c---v
(Signature) /
David B. Maloney, General Manager
(Printed name and title)
Attest:
::::
AlA Document B801™CMa -1992. Copyright @ 1973,1980 and 1992 by The American Institute of Architects. All righta reserved. ..WARNING: This AlA"
Document IS protected by U.S. Copyright Law and International Treaties. Unsuthortzed reproduction or distribution of this AlA: Document, or sny 16
portion of h, may result In severe civil and criminal penaltlea, and will ba prosacutad to the maximum extent possible under the law. This document
was produced by AlA software at 13:45:01 on 12/12/2006 under Order No.10002t6595_t which expires on 1/17/2007, and is not for resale.
User Notes: (3144937434)
EXHIBIT" A"
Meridian City Water Department Building
Construction Management Services
Project Fee Proposal
Date: December 11, 2006
Typical Reimbursable General Conditions Costs: items will be added or deleted as the
specific job requires.
Superintendent
Job Trailer Set Up
Office Furniture/Supplies
Bid Advertising
Construction Photographs
Quality Control & Testing
Surveying/Layout
Crane/F orklift
Small Tools
Project Identification
Temporary Roads and Staging
Temporary Fencing and Trailers
Temporary Electric Service
Temporary Power & Light
Temporary Electrical Consumption
Temporary Sanitary Facilities
Construction Water Service
Drinking Water
Job Trailer
Storage Trailer (if required)
Telephone/Fax Line
Reproduction of Plans/Specs
Postage/Express
Safety and First Aid
Security
Continuous Cleanup/Gopher
Dust Control
Trash Containers
Final Clean Up
Temporary Heat
Temporary Protection
Miscellaneous General Conditions
Permits and Fees
Bond
Liability Insurance
Professional Liability
Additions and Deletions Report for
I/JJ TM
AlA Document 8801 CMa - 1992
This Additions and Deletions Report, as defined on page 1 of the associated document, reproduces below all text the author has
added to the standard form AlA document in order to complete it, as well as any text the author may have added to or deleted from
the original AlA text. Added text is shown underlined. Deleted text is indicated with a horizontal line through the original AlA text.
Note: This Additions and Deletions Report is provided for informatiOn purposes only and is not incorporated into or constitute any
part of the associated AlA document. This Additions and Deletions Report and its associated document were generated
simultaneously by AlA software at 13:45:01 on 12/12/2006.
PAGE 1
AGREEMENT made as of the First day of December in the year of Two Thousand Six
City of Meridian
660 East Watertower. Suite 200
Meridian. Idaho 83642
Kreizenbeck Constructors. Limited Liability Company
251 Ea~L FronL Su-eeL
Suite 11 0
Boise. Idaho 83702
06-021 Meridian Water Department Building
2235 Northwest 8th Street
Meridian. Idaho 83642
This proiect consists of a 10.600 square foot single story building of construction class lIIB. In addition to normal
building construction tasks. this work also includes constrl,lctj()Il_ of fencing and temDOr1lD'_par:]gngill"ka_~
BRS Architects
1010 S. Allante Street. Suite 100
Boise. ID 83709
PAGE 2
g 1.1.2 The Construction Manager's services shall be provided in conjunction with the services of an Architect as
described in the edition of AlA Document BI11/-CMa, B141. Standard Form of Agreement Between Owner and
Architect, CORstructioR Manager Aaviser EaitisR, current as of the date of this Agreement. The AlA Document
B 141 was executed before Owner considered engaging a Construction Manager for this Proiect. Owner shall notify
Architect of the involvement of the Construction Manager and Owner shall negotiate with Architect any necessary
modifications to the AlA Document B141 to accommodate and incoroorate the Construction Manager's services
into the Proiect.
PAGE 3
g 2.2.7 The Construction Manager shall cOflsult with review the OWRef afta :\remteet regarEliRg the Construction
Documents and make recommendations whenever design details adversely affect constructability, cost or schedules.
g 2.2.8 The Construction Manager shall provide reconunendatiofls and iRfefHl.atisR te me O',VRer aRa Architect
regaraiag be responsible for the assignment of responsibilities for temporary Project facilities and equipment,
materials and services for common use of the Contractors. Thc Construction Manager shall verify that such
requirements and assignment of responsibilities are included in the proposed Contract Documents.
Additions and Deletions Report for AlA Document 8801 TMCMa -1992. Copyright @ 1973. 1980 and 1992 by The American Institute of Architects. All
rights reserved. WARNING: Thl. AlA- Document" protected by U.s. COpyright Law and Intematlonal Treatlea. UnAuthomlld reproduetlon or 1
distribution or thle AlA. Document, or any portion of h. may Rl8ult In save", civil and criminal penllhl8ll, and will be prosecuted to the mllXlmum
extent posalbJa under the law. This document was produced by AlA software at 13:45:0t on t 2/12/2006 under Order No.1 000216595_1 which expires on
1/17/2007, and is notfor resale.
Ullor NOlO"': (3144937434)
t 2.2.9 The Construction Manager shall flfl'l\'ise reeaHlIlleRsal'iElRs aRa iRfarmatiaR tEl the O"JRer regaraiRg t-he
allseal'isR sf allocate responsibilities for safety programs among the Contractors.
S 2.2.17 The CeRstrlieaeR MaHager shall s\!l:lRlit the list efflreSfleetive eiseers fer tee .'\reeiteet's Feview aHa tee
OWRer's aflflfaval.
PAGE 4
~ 2.3.3.1 The Construction Manager shall provide a full time Proiect Superintendent and any necessary assistants
during the construction phase. The Proiect Superintendent shall be approved by the Owner. which shall not be
unreasonable withheld. If the Proiect Superintendent leaves the emplov ot the Construction Manager, the
Construction Manager shall submit his replacement to the Owner for prior approval. which shall not be
unreasonably withheld.
~ 2.3.5 Utilizing the Construction Schedules provided by the Contractors, the Construction Manager shall update the
Project construction schedule incorporating the activities of the Contractors on the Project, including activity
sequences and durations, allocation of labor and materials, processing of Shop Drawings, Product Data and Samples,
and delivery of products requiring long lead time and procurement. The Project construction schedule shall include
the Owner's occupancy requirements showing portions of the Project having occupancy priority. The Construction
Manager shall update and reissue the Project construction schedule as required to show current conditions. If an
update indicates that the previously approved Project construction schedule may not be met, the Construction
Manager shall recommend and implement corrective action fe-upon the concurrence of the OVl'l1er and
.'\rehiteet.Owner.
~ 2.3.7 The Construction Manager shall endeavor to obtain satisfactory performance from each of the Contractors.
The Construction Manager shall recommend courses of action to the Owner when requirements of a Contract are not
being fulfilled. The Construction Manager shall implement corrective action to be taken upon the concurrence of
the Owner.
PAGE 5
~ 2.3.11.2 The Construction Manager shall prepare a Project Application for Payment based on the Contractors'
Certificates for Payment. The Construction Manal!:er shall not submit a Proiect Application for Pavment more than
once a month unless agreed to by the Owner.
PAGE 6
~ 2.3.19 The Construction Manager shall receive certificates of insurance from the Contractors and forward them to
the O"l/Rer with a eaflY ta me A.rdlitect.Owner.
~ 2.3.21 The Construction Manager shall record the progress of the Project. The Construction Manager shall submit
monthlv written progress reports to the Owner and Architect including intormation on each Contractor and each
Contractor's Work, as well as the entire Project, showing percentages of completion. The Construction Manager
shall keep a daily log containing a record of weather, each Contractor's Work on the site, number of workers,
identification of equipment, Work accomplished, problems encountered, and other similar relevant data as the
Owner may require.
~ 2.3.24 With the Architect and the Owner's maintenance personnel, the Construction Manager shall observe the
Contractors' final tesaftg-testing. commissioning, and start-up of utilities, operational systems and equipment.
CommissioninB shall in this instance mean the effort required to demonstrate that the mechanical and electrical
systems of this building work and work together to accomolish the designed environment.
PAGE 7
Additions and Deletions Reportfor AlA Document B801 TMCMa -1992. Copyright @ 1973, 1980 and 1992 by The American Institute of Architects. All
rights reserved. WARNING: This AlAe Document Is protected by U.S. Copyright Law IInd IntArnlltlonll1 Trelltle!!l. Unlluthorl%ed reproduction or 2
distribution of this AlAe Document. or any portion of h. may rasult in severe civil and criminal penllhie!!l. and will be prosecuted to the maximum
extent poaslble under the law. This document was produced by AlA software at 13:45:01 on 12/12/2006 under Order No.1 000216595_1 which expires on
1/17/2007, and is not for resale.
User Notes: (~'449~74~4)
~ 2.3.29 The Construction Manager shall provide coordination and procurement efforts during the Contractor's one
(1 ) year period of correction of Work for any repair or maintenance services for work performed as part of this
construction proiect. Compensation for such effort shall be included as part of basic compensation for construction
phase services.
~ 2.3.30 The Construction Managcr with the Architect and OwneT shall condul.:l a ~ile vi~it prior to the expiration of
the Contractor's one (1) vear period of correction of Work regardless of final payment of compensation to the
Construction Manager.
! 3.3.1 PFfJ"iEliag services relative te flHliFe facilities, systeffis and eq1:1iflffieRt.
i 3.3.2 ProvidiRg ser'lises te investigate eKistiag eonditions or faeilities or to previae measured drawiags thefe€lf.
! 3.3.3 PFeviEliag sel'Yices to verify the aeeuracy of dfawiags Elf ether infermatien fliffiished by the O\Vfier.
i 3.3.4 Pr{lviEiiag servises reEJ:1:1ired for er iR seRBestion with the OWRer's selection, pres1:1rement or installat-ieR ef
f1:1rnit\:H'e, flH'fl.ishiRgs aRc;l mlateEl eEIl:lipml;!l1t.
! 3.3.5 ProvidiRg servises fer tenant improvemeRts.
PAGE 8
i 1.3 If requested by the CeastracEiuIl Maflitgcf, thl:! OWRl:!r shall furRish eviEleace that financial arrangements have
BeeR Hiade to f1:1lfill1'he O\'/aer's eBligations 1:1Rc;ler t-lUs :\greement.
~ 4.5 The Owner shall retain an architect whose services, duties and responsibilities are described in the edition of
AIA Document B 1411Cma, B 141. Standard Form of Agreement Between Owner and Architect, ConstructioR
MaRager f.4viser EditieR, current as of the date of this Agreement. The Terms and Conditions of the Agreement
Between the Owner and Architect shall be furnished to the Construction Manager and shall not be modified without
written consent of the Construction Manager, which consent shall not be unreasonably withheld. The Construction
Manager shall not be responsible for actions taken by the Architect.
PAGE 10
8.5 Refer' 11.1 Claiffis, disputes or ether matters in fJ.uestion betweeR the flarties to this AgreemeRt ansiag 01:1t
ef er relatiag 1e this Agreemeat or Breaeh 1'hereef shall be subjest 1e anc;l c;leeided by arbitfatieR iR aeeordance with
1;he Ceftsk'lietisR IRatl.stry L\orbitFittieR Rales af the Am,encan L'\{o1:JikatJea L'\sSBetaliuIll;JUUI:)Rlly iR l:1ffeet unless the
flames lfiI:it1:lally agree otherwise.
911.2 Demand for arbitratieR saall13e HIed in writing with the otller flarty to Article 14.this L'\greement and with the
American ArBitFaaeR AssesiatJeR. A demand fur MBitrat'ieft shall Be made wltaiR a reaseRal31e time after tae slaim,
ai6lHK6 er e~er maaer in questisR has anseR. In ae event shall the c;lemaREl fer arbitration be maae after ~e flate
whea iastitutien of legal er eE):1:1itaBle flreeeeEliRgs based on such claim, aisJ:llite or other matter ia EIu8stion would be
barred by the applicable statutes ef limitaaeas.
i B.3 No arbitratiOR arising out ef er f0latiRg te this Agreement shall iRsl1:1ele, By consolidation, jeiReler sr iR any
other manner, aR aElaitieeal J:lerssH or entity Ret a flarty 1e this Agreement, eJl:66flt BY ,...fla:eR eSflsent containing a
specifie refeF0Rse 1e this Agreement signed by tile O\')Rer, CAA!':tmction Manager, aRe aay other person or eRtit?'
sought te Be jeiReEl. CeRs6Rt te lifBitratiea involving an additieRal fl6rsaa ar entity shall not seRstit-l:l1e eaflsent to
arbitratieR ef liBY slaim, c;lisfl1:11e er ether matter in que stieR Ret c;lessriBeEl ia the written seRseRt sr with a person or
9Rtit?' Rst Ram9a sr c;l9s9riBea therein. The foregoing agreement to arbitrateand-<Jther agreements to arbitrate '""itk aR
additieRal flerseR er entity dilly consented to by the parties to this Agreement shall be speeifieally enforceable in
asserc;laRse with aflfllicable law in any ee1:1Ft haviRg jllrisc;lietiaR thereof.
i 11.4 The aWlifa FeRaered by the arbitfater er ar13itFaters shall be final, aaaj1:1c;lgm0Rt lHaY be entered HfleR it iR
accordance with applicable law in liBY SS1:1Ft having jurisdiction thereof.
Additions and Deletions Report for AlA Document B801 TMCMa -1992. Copyright @ 1973, 1980 and 1992 by The American Institute of Architects. All
rights reserved_ WARNING: Thill AJA. Documant Is protected by U.s. Copyright ~ ancIlntematloMl TN.tIea. Unauthorl:l=ec1 reproduction or 3
dlstrtbutlon 01 thle AlAB Document, or any portion CJI ". may result In Mvere civil and criminal penaltlea, and will be prosecutld to the maximum
extent pouIble under the law. This document was produced by AlA software at 13:45:0t on 12/12/2006 under Order No.1 000216595_1 which expires on
1/17/2007, and is not for resale.
User Notes: (3144037434)
PAGE 11
~ 10,3 Causes of astian !:letV:BBR tRB flartie~ ta tRis AgFeement pertaiFling to aets or failures to act shall 138 deemed to
aa'le aOef\l.ea &Ba the aJlplieable staffites af lilBitatiens shall eaHlHience ta nln not later than either tee date of
Sl:l!:lstaatial CelBflletian fer aets ar faih:ll'€ls ta aet aeel:lITiag priar te SUBstantial CalBpletion, Elr the date of issuance
of the final Preje~t CertiHeate for Payment for acts OF faihlr8s t6 aot 6661:1fflng after Sl:Il:JiSlimti<t1 CemplctioR.
~ 10.3 Refer to Article 14.
610.9 The Construction Manager shall be licensed in the State ofIdaho and conform to all applicable requirements
of Idaho Code. Title 54. Chapter 45.
~ 10.10 Construction Manager shall perform all of Construction Manager's s~rvices in compliance with all
applicable laws. ordinances. rules. regulations. or orders of any public authority having iurisdiction over the Proiect.
any applicable permits and any recorded covenants. conditions. and restrictions affecting the Site.
& 10.11. The Construction Manager shall indemnifv. defend. and hold harmless the Owner. its officers. agents. and
employees from and against any liability. claims. damages. losses. expenses. actions and suits. including but not
limited to attorney's fees. arising out of or resulting from the negligent performancc or omission by the Construction
Manager. its employees. agents. or anyone for whose acts they may be liable under this Agreement. This
indemnification shall survive completion of services provided under or the termination of this agreement. The
Construction Manager's liabilitv is limited to the lilIliL~ uf in~urance set forth in article ] 4.1.
PAGE 12
fi 11.1.2 The insurance required by Section 11.1.1 shall be written for not less than limits of liability specified in
Article 14 or required by law. whichever coverage is greater. CO\'8fages, '."Rether All required coverage. except for
any required orofessionalliabilitv coverage. must be written on an occurrence af elaims made basis, basis and shall
be maintained without interruption from date of commencement of operations services under this Agreement until
date of final payment and tenninlltion of any covcrage required to be maintained after final payment. Pulicies
required by Section 11.1.1 shall name Owner as an additional insured.
~ 11.1.3 The Con~lructiun Manager shall provide errors and omissions professional liability insurance in the amount
specified in Article 14 on an aggregate limits "claims made" basis. Construction Manager shall maintain the
sDecified levels of aggregate limits "claims made" insurance for no less than two years after completion or
termination of Construction Manager's services under this Agreement.
~ 11.1.4 Certificates of insurance acceptable to Owner shall be filed with the Owner prior to l1erfonnance of services
under this Agreement. Each certificate shall contain the following covenant of the issuer: "Should any of the above
described policies be cancelled before the expiration date thereof. the issuing company will mail 30 day's written
notic~ to the_c_~rtificate holder."
611.1.5 Refer to Article 14.
g 12.2.1.1 Expense of transportation in ceaaeetien v:ith the Projeet, e~.penses in cOflflectiea with authorized om ef
town travel; laag aistilaee eommumeatiaas; long distance communications and fees paid for securing approval of
authorities having jurisdiction over the Projeot.
g 12.2.1.2 Expense of reproductions, postage, express deliveries, elcct-r-enie faesimile transmissiens deliveries and
handling of Drawings, Specifications and other documents.
Additions and Deletions Report for AlA Document 8801 TMCMa - 1992. Copyright @ 1973, 1980 and 1992 by The American Institute of Architects. All
rights reserved. WARNING: This AlA" Document Is protected by U.S. Copyright Law and Internlltional Treatles. Unauthorized reproduction or 4
distribution of this AlA" Document. or any portion of h, may result In severe civil and criminal penalties, and will be prosecuted to tha maximum
axtent possible under the law. This document was produced by AlA software at 13:45:01 on 12/12/2006 under Order No.1 000216595_1 which expires on
1/17/2007, and is notfor resale.
User Notes: (3144937434)
! 12.2.1.4 EXfleRse sf aacl:itioRal iBli1:lfaRee eevcrage er liR1:its requested BY the Owncr iB e)(eess of that Bermall)"
eanieEl. hy tlls CI3R&trlletion Ma.Rllg8r..
PAGE 13
! 12.3.1 AR initial payment as set furth iB SectieR 13.1 is the minim1:l.FR paYFRcnt under Hlis .'\greemcnt.
9 13.1 AN INITIAL PAYMENT of ~Zero Dollars and Zero Cents ($ 0.00 ) shall be made upon execution of
this Agreement and credited to the owner's account at final payment.
1('\'
Comoensation for construction phase is fi.2"i% of Construction Cost to be fixed at the comoletion of the biddinl,!
phase and incomorated into this Agreement by written addendum.
PAGE 14
Direct cost plus 6.25%.
913.4.1 FOR REIMBURSABLE EXPENSES, as described in Section 12.2, and any other items included in Article
14 as Reimbursable Expenses, a multiple of One ( 1.00 ) times the expenses incurred by the Construction
Manager and the Construction Manager's employees and consultants in the interest of the Project.
6 13.4.2 At the completion of the bidding phase. Construction Manager shall present to Owner a budget allowa_nce
for Reimbursable Expense which, if approved by Owner. shall be incorporated into this Agreement bv written
amendment.
~ 13.5.1 IF THE BASIC SERVICES covered by this Agreement have not been completed within Eighteen (j-lll
months of the date hereof, through no fault of the Construction Manager, extension of the Construction Manager's
services beyond that time shall be compensated as provided in Sections 12.3.3 and 13.3.1.
fi 13.5.2 Payments are due and payable Fifteen (liJ days from the date of the Construction Manager's invoice.
Amounts unpaid Thirty ( ~) days after the invoice date shall bear interest at the rate entered beluw, or in the
absence thereof at the legal rate prevailing from time to time at the principal place of business of the Construction
Manager.
10.25% per annum
8.5 Claims, disputes or other matters in question between the parties to this agreement arising out of or relating to
this agreement or breach thereof shall be subiect to mediation as a condition precedent to the institution of legal or
equitable proceedings by either Party.
8.5.1 The parties shall endeavor to resolve their claims by mediation which. unless the parties mutually agree
otherwise. shall be in accordance with the Construction Industrv Mediation Rules of the American Arbitration
Association currently in effect. Request for mediation shall be filed with the other party to the agreement. The
request may be made concurrently with the filing of a legal action but, in such event. mediation shall proceed in
advance of legal or equitable proceedings. which shall be staved pending mediation for a period of sixty (60) davs
from the date of filing, unless stayed for a longer period by agreement of the parties or court order. .
8.5.2 The parties shall endeavor to mutuallv agree on an independent, JJrofe:s~ional mediator within 15 days of the
request for mediation. The oarties shall share the mediator's fee equally. Agreements reached in Mediation shall be
enforceable as settlement agreements in any court having iurisdiction thereof. The parties shall pay all of their own
exoenses associated with mediation, including any attorney fees and travel expenses.
Additions and Deletions Report for AlA Document 9801 TMCMa -1992. Copyright @ 1973. t 980 and 1992 by The American Institute of Architects. All
rights reserved. WARNING, This AlA" Documont Is protected by U.S. Copyright Law snd International Treaties. Unsuthorlzed reproduction or
distribution of this AlA" Document. or any portion of II, may rasult in severe civil and criminal panaltias. and will be prosacuted to tha maximum
axtant possible under the law. This document was produced by AlA software aI13;45;01 on 12/12/2006 under Order No.1 000216595_1 which expires on
1/17/2007, and is not for resale.
User Notes' (3144937434)
5
8.5.3 In the event that legal or eouitable proceedings are instituted between the parties to this Agreement to enforce
the terms and conditions of this alZreement or arising from the breach of any provision hereof. the prevailing party
will be entitled to receive from the other Party all costs. damages. and expenses. including reasonable attorney's
fees. incurred bv the prevailing party. whether or not such controversv or claim is litigated or Drosecuted to
iudgment. Thc prevailing party will be that party who was awarded iudgment a~ a re~ult uf trial or other proceeding
and determined to be the prevailing party bv the iudge or other presiding authority.
10.3 Causes of action between the parties to this agreement pertaining to acts or failures to act shall be deemed to
have accrued and the applicable statutes of limitations shall commence to run not earlier than the date of issuance of
final Certificate of Payment.
PAGE 16
Additions and Deletions Report for AlA Document 8801lMCMa -1992. Copyright @ 1973, 1980 and 1992 by The American Institute of Architects. All
rights reserved. WARNING: Thl. AlAe Document I. protected by U.S. Copyright Law and Internlltlonal T....atlse. UnauthorlO:ed reproduotlon or 6
distribution of this AlA- Document. or any portion of h. may result In severe civil end criminal penahles, and will be prosecuted to the maximum
axtent poaalble under the law. This document was produced by AlA software at 13:45:01 on 12/12/2006 under Order No.1 000216595_1 WhiCh expires on
1/17/2007, and is not for resale.
UsorNotoll: (3144937434)
A 14.1 LIMITS ON INSURANCE
(!!'lEeR IhB SfJBBifie iileUar 9mmmts fer the appropriate insumnce limits of liability.)
11.1.3
StHhJtorv
Statutory
$100,000 per accident
$500.000 Disease. Policv Limit
$100.000 Disease. Each Emvlovee
,Comvrehensive or Commercial General Liabilitv (includine Premises-Overations: hldependent Contractors' Protective:
Products and Completed Ooerations: Broad Form Provertv Damage):
a) Bodilv Injury' $1 000000 Each Occnrrence
$2.000.000 A!!lrre!!ate
$ 1.000.000 Each Occurrence
$2.000.000 A!!lrre!!ate
Products and Comoleted Qoerations to be maintained for at least three years after final payment:
$1.000.000 Agl!regate
d) Property Damage Liability hlsurance shall provide X. C. and U coverage.
e) Broad Form Pronertv Damage Coverage shall include Completed Operations
Contractual Liabilitv'
a) Bodilv Iniurv:
b) Prooertv Damage:
Worker's Comvensation:
a) State' Idaho
b) Aoolicable Federal
c) Employer's Liabilitv
b)
Property Damaee:
c)
$ 1.000.000
$1.000.000
$2.000.000
Personal Iniurv, with Emvlovment Exclusion deleted:
$1.000.000 Aggregate
Business Automobile Liabilitv (including owned non-owned and hired vehicles):
a) Bodilv Iniurv: $1.000.000 Each 'Occurrence
b) Prooerty Damage: $1.000 000 Each Occurrence
Professional Liabilitv:
Each Occurrence
Each Occurrence
Aggregate
$ 1.000.000
A!!~n:~!:!i:I.lt:
14.2 See Exhibit "AU attached hereto and made a Dart thereof.
Type af iR6YF3RCle limit af liability ($ 0.00)
Tammv de Weerd. Mavor
David B. Malonev. General Manager
Attest:
City Clerk
Additions and Deletions Report for AlA Document B801""CMa - 1992. Copyright @ 1973, 1980 and 1992 by The American Institute of Architects. All
rights reeerved. WARNING: Thle AlA. Document Ie protected by U.S. Copyright Law end International Treatlee. Uneuthorlzed reproduction or
distribution of this AlA- Document, or any portion Of It. may result In severe civil and criminal penahles, and will be prosecuted to the maximum
extent possible under the law. This document was produced by AlA software at 13:45:01 on 12/12/2006 under Order No.1 000216595_1 which expires on
1/17/2007, and is not for resale.
User Hotes: (3144937434)
7