Conditions of Contract

Transcription

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2 Contents 1 General 1 2 First Schedule: Special 2 3 Second Schedule: Contract Agreement 13 4 Third Schedule: Form of Contractor s Performance Bond 15 5 Fifth Schedule: Form of Contractor's Bond In Lieu of Retentions 17 6 Sixth Schedule: Form of Producer Statement - Construction 19 7 Seventh Schedule: Information as to Contract Works Insurance 20 8 Eighth Schedule: Information as to Public Liability Insurance 21 9 Ninth Schedule: Information as to the Contractor's Construction Machinery Insurance Tenth Schedule: Information as to the Contractor s Motor Vehicle Insurance Twelfth Schedule: Cost Fluctuations 25

3 eral Co ndition s of Co ntract 1 General Conditions 1 Gen The General Conditions of contact shall be those included in NZS 3910: 2003 For Building and Civil Engineering Construction and the following clauses. CC 1

4 Schedu le: Sp ecial Cond ition s of Contract 2 First Schedule 2 First Schedules to the General Special (Clause numbers refer to General Conditions) PART A SPECIFIC CONDITIONS OF CONTRACT <<Examples referred are based on a contract>> <<Note: remove all guidance notes for final publication>> 1.2 The Principal is The NZ Transport Agency, a Crown entity, established on 1 August 2008 by Section 93 of the Land Transport Management Act 2003 of <<insert street address>> (a) The Contract Works comprises the following Separable Portions: <<insert Separable Portions>> i). Separable Portion: X, First X Years ii). iii). Separable Portion X, FourthYear Other This contract is a: a) Lump Sum contract; or (b) Measure and value contract; <<delete provision which does not apply>> 2.5 This contract is: a) A construction contract in public roads; or (b) A term maintenance contract (including a road maintenance contract) <<delete provision which does not apply>> This contract is: (a) This is a local authority cntract (b) Not a local authority contract. <<delete provision which does not apply>> <<insert number of sets that will be supplied>> CC 2

5 2 First Schedule X sets of Contract Documents shall be supplied free of charge to the Contractor upon the acceptance of tender in addition to tender, consent, and Contract Agreement sets A Contractor's Bond: (a) Is required Bonds and insurances are accepted in principle from those insurance companies and banks approved by the NZ Transport Agency. The current approved list is scheduled in NZTA s HNO Contract Procedures Manual. (b) Is not required. <<delete provision which does not apply>> <<ONLY include if Contractor s Bond is required (a) above>> The Contractor s Bond shall be for the sum of $XX,XXX.XX 10% of the Accepted Contract Price. The Contractor shall provide the Performance Bond within 21 calendar days of the date of acceptance. <<Refer to NZTA s HNO Contract Procedures Manual, generally no bond required for term maintenance contracts.>> A Principal's bond: (a) Is not required <<Insert following clause referencing 14.4 to 14.7 below if a 3 yr contract plus 1 year plus 1 year (+ one years being the separable portions)>> Subject to Clauses 14.4 to 14.7, the Contractor shall be given possession of the Site: OR The Contractor shall be given possession of the Site: (b) In respect of Separable Portions i). ii). iii). for Separable Portion 1 - First XX Years, on dd/month/year for Separable Portion 2 - Fourth Year, the dd/month/year. Other (g) Risks specifically excepted are <<insert risks or nil >> CC 3

6 2 First Schedule (b) There are no parts of the Contract Works to which Appendix D applies Quality management systems: (a) Are required and details shall be submitted by the time specified in the contract documents (a) (b) As-built drawings are not required (b) (b) Operation and maintenance manuals are not required The Engineer is <<insert name>> whose professional qualification is <<insert qualification>> The Engineer's costs will be based on the following rates, excluding GST: a) Engineer $XXX.XX/hour b) Engineer's Representative $ XXX.XX /hour c) Contract Manager and other personnel $XX.XX /hour d) Vehicle running $X.XX/km 8.1 and 8.6 (a) The Contractor shall insure as provided in 8.1; Contractor s Plant insurance is required for each item of construction machinery on the site owned by the Contractor that has a market value of more than: (a) $50,000;or 8.3 and 8.7 (a) The Contractor shall insure as provided in 8.3; Public liability insurance shall be effected for an amount not less than $5,000, CC 4

7 2 First Schedule <<Note: refer to Part B of General Conditions for mandatory inclusions of cover under PL insurance eg. Rural and Fires Act.>> Motor vehicle third party liability insurance shall be effected for an amount not less than $1,000, (b) Professional indemnity insurance for design by the Contractor is not required The existing structures are: (i) (ii) (iii) 8.6 For the insurance policies required under the following clauses: The insurers are: 8.6.2(a) 8.6.2(b) 8.6.2(c) The deductibles are: 8.6.2(a) 8.6.2(b) (c) The exclusion and other limitations, if any, are: 8.6.2(a) 8.6.2(b) 8.6.2(c) <<Insert following clause referencing 14.4 to 14.7 below if a 3 yr contract plus 1 year plus 1 year (+ one years being the separable portions)>> Subject to Clauses 14.4 to 14.7, the periods to be used for calculating the Due Date for Completion are: OR The periods to be used for calculating the Due Date for Completion are: (b) In respect of Separable Portions i). ii). iii). for Separable Portion 1, X weeks for Separable Portion 2, X weeks other CC 5

8 2 First Schedule The periods to be used for calculating the allowance for inclement weather are: In respect of Separable Portions: (i) (ii) (iii) for Separable Portion 1, X Working Days; for Separable Porttion 2, X Working Days; Other (c) A producer statement is not required (b) In respect of Separable Portions i) for Separable Portion 1, $XX,XXX.XX per Week; ii) iii) for Separable Portion 2, $XX,XXX.XX per Week Other The Period of Defects Liability shall be: (a) In respect to the Contract Works, XX weeks. <<For Resurfacing Output contracts minimum period is 52 Weeks >> OR <<Insert following clause referencing 14.4 to 14.7 below if a 3 yr contract plus 1 year plus 1 year (+ one years being the separable portions)>> Subject to Clauses 14.4 to 14.7, the Period of Defects Liability shall be: (b) In respect of Separable Portions i). for Separable Portion 1, X weeks ii). for Separable Portion 2, X weeks iii). other <<delete provision which does not apply>> Prior to the issue of the Defects Liability Certificate: CC 6

9 2 First Schedule (c) A producer statement is not required; (b) No guarantees are required The form of guarantee shall be in the form annexed as the XXXXX schedule OR Not Applicable. <<Choose Not applicable if (b) has been selected for >> (b)(iv) (b) Advances for Temporary Works, Plant or Materials not yet on site shall not be made to the Contractor The percentage to be retained from each progress payment and the limit of the total sums retained shall be nil if the Contractor provides a Bond in Lieu of Retentions (see Fifth Schedule). The value of the bond shall be the applicable retention amount plus a further 10%. Otherwise the total sums retained shall be: <<delete provision which does not apply below (a or b)>> (a) In respect of the Contract Works: Total 10% for the first $200,000, plus 5% for the next $800,000, plus 1.75% for any amount in excess of $1,000,000 with a maximum of $100, when aggregated OR Defects liability retention 50% of total retention (b) In respect of the Contract Works: Total Retention 5% for the first $200,000, plus 2.5% for the next $800,000, plus 1% for any amount in excess of $1,000,000 with a maximum of $100, when aggregated Defects liability retention 50% of total retention <<delete provision which does not apply>> Cost fluctuation adjustments: (c) Shall be paid as set out in the Twelfth Schedule (a) Provisional Sums are included in the schedule of quantities CC 7

10 2 First Schedule (c) There are no Prime Cost Sums The contingency sum to be included in the contract is $XX,XXX.XX For the purpose of service of notices, the postal address of: (a) The Principal is the NZ Transport Agency, PO Box XXXX, CITY For the attention of: Fax No. insert fax number (b) The Engineer is insert name, title, address, City For the attention of: Fax No. insert fax number (c) The Contractor is the successful tenderer as identified in the Second Schedule (completed after award) For the attention of: Fax No. NOTE The General also provide in the following clauses for matters which may be dealt with by further specific conditions of contract: Cost reimbursement contract details Execution of Contract Agreement Variation or modification of General Conditions Access to adjoining properties 5.5 Separate contractors Exceptions to Contractor s obligation to supply Advances for Plant or Materials Programme 7.1.2(d) Risks specifically excepted 8.8.1(d) Risk, loss or damage not covered by Principal s insurance Variations carried out on Daywork basis Frequency of payment claims Contractor s bond in lieu of retentions Goods and services tax CC 8

11 2 First Schedule PART B OTHER CONDITIONS OF CONTRACT 1.2 Definitions The following definitions are provided in addition to the existing definitions. CLAUSE ## means Maintenance Specification, Clause ## CONTRACT MANAGEMENT PERSONNEL means the Contractor's Representative or Contract Manager (see Tender Documents, Clause 4.4) CQP means Contract Quality Plan (see Section 2) CYCLIC MAINTENANCE TASKS means those tasks paid for on a lump sum per month or kilometre per month basis. FAULT means any item within the network that does not comply with the Contract Documents and can be repaired under either a Unit Rate or Cyclic Maintenance Task. ITEM means Schedule Item MANAGEMENT TASKS means those tasks which are required to identify, implement and manage the Unit Rate and Cyclic Maintenance Tasks. NETWORK means the network described in Operational Requirements, Clause 2. OTHER PERSONNEL means any other of the Contractor's personnel (including sub-contractors personnel) that may be used to complete the Contract Works. RURAL AREA means any section of highway with a permanent speed limit greater than 70km/hr SECTION ## means Maintenance Specification, Section ## TASK means the proposed work to repair a Fault. TMP means Traffic Management Plan (see Section 6) UNIT RATE TASKS means those tasks paid for on a cost per unit of measure basis and require the Engineer's agreement before the work starts. URBAN AREA means any section of highway with a permanent speed limit up to and including 70km/hr Delete the existing working day definition and replace with the following WORKING DAY means any calendar day other than Sunday, or a Public Holiday where the day observed as the Public Holiday falls on any day of the week, except a Sunday. CC 9

12 2 First Schedule In addition to Section 5 of the General Conditions, there shall be a special condition as follows: During the term of the contract the Contractor must advise the Engineer to the Contract of any potential or actual conflicts of interest with any individual or company engaged to complete works included within the scope of the contract. This includes individuals and companies engaged in any subcontractor or other supply arrangement. The Contractor must advise the Engineer to the Contract the means that they intend to use to remove or mitigate such conflicts of interest. The Engineer to the Contract must then refer the matter to the Principal, and, the Principal will, in discussion with the Engineer to the Contract, decide the appropriate action required to remove or mitigate any actual or potential conflict of interest. The Engineer to the Contract must ensure the Contractor implements any action required In addition to Section 8, Clause of the General Conditions, there shall be a special condition as follows: Public Liability Insurance shall include cover required by the Forest and Rural Fires Act and will be for an amount not less than $250, <<Guidance note for any contract in a forested or rural area, cover shall be increased to the full minimum limit of $5M, ensure your sub-limits match those listed within 8 th Schedule >> Public Liability Insurance shall include liability arising out of Vibration, removal or weakening of support and will be for an amount not less than $250, <<Guidance note for any contract in an urban or built up area, cover shall be increased to the full minimum limit of $5M, ensure your sub-limits match those listed within 8 th Schedule>> Public Liability Insurance shall include liability arising out of damage to Underground Services and will be for an amount not less than $250, <<Guidance note for any contract where works are taken out above Underground Services cover shall be increased to the full minimum limit of $5M, ensure your sub-limits match those listed within 8th Schedule.>> CC 10

13 2 First Schedule <<Guidance note: Exclude Special Condition , and below for Resurfacing Output and Resurfacing Method Contracts. For all other contracts confirmation requried by Senior Asset Manager for inclusion>> Section 11, Clause of the General Conditions, is deleted and replaced with the following: The Contractor shall remedy all defects in the Contract Works arising prior to or within the Period of Defects Liability, from defective workmanship or Materials. The Engineer shall give notice in writing to the Contractor during the Period of Defects Liability or within five Working Days thereafter of defects to be remedied, including a date by which their remedy is required. In setting this date, the Engineer shall make an assessment of what is a reasonable time for the remedy of each of the defects identified. That date shall not be more than 30 days from the date the defect is notified to the Contractor unless the Engineer agrees otherwise in writing Section 11, Clause of the General Conditions, is deleted and replaced with the following: If the Contractor fails to complete the remedial works by the required date as set out under , the Principal shall be entitled, after giving the Contractor notice, to employ others to carry out such remedial work. The Principal shall be entitled to recover the Cost of such work from the Contractor, including all costs and expenses of assessment and supervision whether by the Engineer or otherwise, and a reasonable allowance for associated administrative and professional costs and expenses In addition to Section 11 of the General Conditions, there shall be a special condition as follows: An additional period of defects liability equivalent in length to the original period of defects liability shall apply to all works required to be remedied as a defect or required as a consequence of the remedy of a defect, unless the Engineer agrees otherwise in writing. CC 11

14 2 First Schedule <<Insert clauses 14.4 to 14.7 inclusive if a 3 yr contract plus 1 year plus 1 year (+ one years being the separable portions)>> In addition to Section 14 of the General Conditions, there shall be a special condition as follows: 14.4 Inadequate Performance by the Contractor In the event of the Performance Assessment for any given Separable Portion being Inadequate: a) The Principal may give notice to the Contractor that any or all subsequent Separable Portions will not form part of the Contract Works; and if so, b) The certificate of completion for the given Separable Portion shall constitute the certificate of Completion for the Contract Works If notice is given under clause 14.4, then clause applies as if the Principal had made an election under clause If: a) a Performance Assessment is not completed before the end of a Separable Portion; and/or b) the Principal grants a further Separable Portion to give the Contractor an opportunity to improve its performance following an unsatisfactory Performance Assessment, or on any other interim basis under this clause 14.6 the Principal is not prevented from exercising its powers under clause 14.4 even if work has commenced under the subsequent Separable Portion; but subject to payments in accordance with this Contract, or as separately agreed by the Principal and the Contractor, in respect of work actually performed under that subsequent Separable Portion The Performance Assessment for any Separable Portion may be preceded by one or more interim assessments conducted during the course of the Separable Portion and the outcome of any such interim assessment may or may not be incorporated into the final assessment for that Separable Portion at the Principal s discretion (to be notified to the Contractor at the time of the interim assessment). CC 12

15 Sched ule: Contract Agreement 3 Second Schedule 3 Second Contract Agreement Contract for complete THIS AGREEMENT is made on 20 BETWEEN ("the Contractor") AND ("the Principal") The NZ Transport Agency, a Crown entity, established on 1 August 2008 by Section 93 of the Land Transport Management Act 2003 IT IS AGREED as follows: 1. THE Contractor shall carry out the obligations imposed on the Contractor by the Contract Documents. 2. THE Principal shall pay the Contractor the sum of $ or such greater or lesser sum as shall become payable under the Contract Documents together with Goods and Services Tax at the times and in the manner provided in the Contract Documents. 3. EACH party shall carry out and fulfil all other obligations imposed on that party by the Contract Documents. 4. THE Contract Documents are this Contract Agreement and the following which form part of this agreement: (a) The Conditions of Tendering (b) Notices to Tenderers (give details with dates): (c) The Contractor s tender; (d) The notification of acceptance of tender; (e) The General, NZS 3910:2003 (f) The Special ; (g) Specifications issued prior to the Date of Acceptance of Tender; (h) Drawings issued prior to the Date of Acceptance of Tender; (i) The Schedule of Prices CC 13

16 3 Second Schedule (j) The following additional documents: (Identify any additional documents to be included for example agreed correspondence) WITNESS to the signature of the Contractor: Name: Occupation: Address: Contractor WITNESS to the signature of the NZ Transport Agency: Name: Occupation: Address: Principal CC 14

17 Sch edu le: Fo rm of Contractor s Performan ce Bond 4 Third Schedule 4 Third Form of Contractor's Performance Bond Contract for: complete THIS DEED is made on BY of ( the Contractor ) AND of ( the Sureties ) IT IS MADE IN THE FOLLOWING CIRCUMSTANCES: A The Contractor has entered into an agreement with the NZ Transport Agency ( the Principal ) to carry out and fulfil the obligations imposed on the Contractor by the Contract Documents forming part of the agreement including any to design, construct, complete, and deliver, and remedy defects in, certain works described in the Contract Documents. B The Contract Documents require the Contractor to provide the Principal with security in the form of a bond to ensure performance of the Contractor s obligations under the Contract Documents. BY THIS DEED: 1. THE Contractor and Sureties are jointly and severally held and bound to the Principal in the sum of $ and bind themselves, their successors and assigns jointly and severally for the payment of that sum. 2. THE condition of this bond is that it shall be null and void if: (a) The Contractor duly carries out and fulfils all the obligations imposed on the Contractor by the Contract Documents prior to the commencement of the Period of Defects Liability referred to in the Contract Documents; or (b) The Contractor satisfies and discharges the damages sustained by the Principal in respect of all defaults by the Contractor up to the commencement of the Period of Defects Liability or the termination of the contract; or (c) The Sureties satisfy and discharge up to the amount of the bond the damages sustained by the Principal in respect of all defaults by the Contractor up to the commencement of the Period of Defects Liability or the termination of the contract; or (d) A Practical Completion certificate has been issued in respect of the Contract Works in accordance with clause 10.4 of the General. 3. EXCEPT as provided in clause 2 above this bond shall be and remain in full force and effect. 4. THE Sureties shall not be released from any liability under this bond: (a) By any alteration in the terms of the contract between the Principal and the Contractor; (b) By any alteration in the extent or nature of the Contract Works to be completed, delivered and having defects remedied; CC 15

18 4 Third Schedule (c) By any allowance of time by the Principal or by the Engineer appointed by the Principal under the Contract Documents; (d) By any forbearance or waiver by the Principal or by the Engineer in respect of any of the Contractor s obligations or in respect of any default on the part of the Contractor. 5. THIS bond shall be governed by New Zealand law. THE COMMON SEAL of ) ) was affixed in the presence of: ) THE COMMON SEAL of ) ) was affixed in the presence of: ) SIGNED by ) ) in the presence of: ) SIGNED by ) ) in the presence of: ) NOTE This bond must be executed by the Contractor and by the Surety or Sureties in the manner required for execution of a deed. Any of these parties which is a company or body corporate must execute by affixing its seal, which may be attested in the manner provided in its articles of association or other constitution. Alternatively, a company may execute the bond by having it signed, under the name of the company, by two or more directors. If there is only one director, it is sufficient if the bond is signed under the name of the company by that director, but the signature must be witnessed. In the case of a party who is an individual, the party must sign and the signature must be witnessed by another person. The witness must not only sign but must also add their occupation and address CC 16

19 5 Fifth Schedule 5 Fifth Schedule: Form of Contractor's Bond In Lieu of Retentions Form of Contractor s Bond In Lieu of Retentions Contract for: complete THIS DEED is made on 20 BY of ( the Contractor ) AND of ( the Sureties ) IT IS MADE IN THE FOLLOWING CIRCUMSTANCES: A B The Contractor has entered into an agreement with the NZ Transport Agency ( the Principal ) to carry out and fulfil the obligations imposed on the Contractor by the Contract Documents forming part of the agreement including any to design, construct, complete, and deliver, and remedy defects in, certain works described in the Contract Documents. The Contractor has agreed to provide the Principal with security in the form of a bond in lieu of retentions additional to any other bond required under the Contract Documents. BY THIS DEED 1. THE Contractor and Sureties are jointly and severally held and bound to the Principal in the sum of $ ("the bond amount") and bind themselves, their successors and assigns jointly and severally for the payment of that sum. 2. THE condition of this bond is that it shall be null and void if: (a) The Contractor duly carries out and fulfils all the obligations imposed on the Contractor by the Contract Documents prior to the issue of the Defects Liability Certificate referred to in the Contract Documents; or (b) The Contractor satisfies and discharges the damages sustained by the Principal in respect of all defaults by the Contractor up to the issue of the Defects Liability Certificate or the termination of the contract; or (c) The Sureties satisfy and discharge up to the amount of the bond the damages sustained by the Principal in respect of all defaults by the Contractor up to the issue of the Defects Liability Certificate or the termination of the contract. 3. EXCEPT as provided in clause 2 above this bond shall be and remain in full force and effect. 4. THE Sureties shall not be released from any liability under this bond: (a) By any alteration in the terms of the contract between the Principal and the Contractor; (b) By any alteration in the extent or nature of the Contract Works to be completed, delivered and having defects remedied; (c) By any allowance of time by the Principal or by the Engineer appointed by the Principal under the Contract Documents; CC 17

20 5 Fifth Schedule (d) By any forbearance or waiver by the Principal or by the Engineer in respect of any of the Contractor s obligations or in respect of any default on the part of the Contractor. 5. THIS bond shall be governed by New Zealand law. THE COMMON SEAL of ) ) was affixed in the presence of: ) THE COMMON SEAL of ) ) was affixed in the presence of: ) SIGNED by ) ) in the presence of: ) SIGNED by ) ) in the presence of: ) NOTE - This bond must be executed by the Contractor and by the Surety or Sureties in the manner required for execution of a deed. Any of these parties which are a company must execute the bond by having it signed, under the name of the company, by two or more directors. If there is only one director, it is sufficient if the bond is signed under the name of the company by that director, but the signature must be witnessed by another person. The witness must not only sign but must also add their occupation and address. Alternatively, companies may execute under power of attorney. Any party which is a body corporate (other than a company) must execute by affixing its seal, which must be attested in the manner provided for in the rules of, or applicable to, the body corporate. In the case of a party who is an individual, the party must sign and the signature must be witnessed by another person. The witness must not only sign but must also add their occupation and address CC 18

21 Sch edule: Form of Produ cer Statement - Con structio n 6 Sixth Schedule 6 Sixth Form of Producer Statement - Construction Contract for: complete ISSUED BY:... (Contractor) TO: The NZ Transport Agency... (Principal) IN RESPECT OF:... (Description of Contract Works) AT:... (Address) has contracted to the NZ Transport Agency... (Contractor) (Principal) to carry out and complete certain building works in accordance with a contract, titled ( the contract ) (Project) I... a duly authorised representative of... (Duly Authorised Agent) (Contractor) believe on reasonable grounds that...has carried out and completed (Contractor) All Part only as specified in the attached particulars of the building works in accordance with the contract.... Date... (Signature of Authorised Agent on behalf of)... (Contractor)... (Name)... (Occupation)... (Address) CC 19

22 Sch edule: Informat ion as to Contract W orks Insuran ce 7 Seventh Schedule 7 Seventh Information as to Contract Works Insurance Contract for: complete To: NZ Transport Agency (Insert name of Principal) Address: From: Address: We confirm having effected Contract Works insurance for: In respect of The Sums Insured are: (Insert Postal Address) (Name of Insurance Company) (Insert Postal Address) (The Contractor) (The Principal) (Project Title) Contract Price $ (Plus GST) Costs of Demolition $ (Plus GST) Professional Fees $ (Plus GST) Value of items incorporated or to be incorporated $ (Plus GST) Increased construction costs $ (Plus GST) TOTAL SUM INSURED $ (Plus GST) The policy deductibles are: Non earthquake (GST inclusive) $ Earthquake (GST inclusive) $ Other (name) (GST inclusive) $ We advise that the special terms, copy attached, have been applied to this policy 8.5.3, Policy cover terms included are: (a) Automatic reinstatement No cancellation for non-payment without prior notification Severally insured No settlement delay due to exercise of subrogation Project specific policy Construction period Defects liability period (both subject to alteration under construction date) Annual run-off policy Annual cut-off policy Policy expiry date We undertake that this policy will not be cancelled or amended by us within the period of insurance without written advice to the insured party which has arranged the insurances. The insurance issued is subject to the terms and conditions of the policy. We do not warrant that this policy complies with the requirements of NZS 3910:2003. Insurance Company Stamp Date SIGNED BY SIGNATORY S TITLE CC 20

23 Schedu le: Information as to Public Liabilit y Insuran ce 8 Eighth Schedule 8 Eighth Information as to Public Liability Insurance Contract for: complete To: NZ Transport Agency (Insert name of Principal) Address: From: Address: We confirm having effected Public Liability insurance for (Insert Postal Address) (Name of Insurance Company) (Insert Postal Address) In respect of (The Contractor) (The Principal) (Project Title) Annual Policy: Policy Expiry Date: The Limit of Indemnity $ (Plus GST) Sub limit insured for vibration, removal or weakening of support Sub limit insured for Forest and Rural Fires Act $ Sub limit insured for damage to underground services $ $ We advise that additional terms, copy attached, have been specifically applied to this project The policy covers Liability arising out of: The ownership/use of construction machinery not required to be registered for road use The use of hired plant The ownership / use of watercraft up to 8m The ownership / use of aircraft The use of explosives 8.5.3, Policy cover terms included are: Automatic reinstatement No cancellation for non-payment without prior notification Severally insured No settlement delay due to exercise of subrogation We undertake that this policy will not be cancelled or amended by us within the period of insurance without written advice to the insured party which has arranged the insurances. The insurance issued is subject to the terms and conditions of the policy. We do not warrant that this policy complies with the requirements of NZS 3910:2003. Insurance Company Stamp Date SIGNED BY SIGNATORY S TITLE CC 21

24 8 Eighth Schedule CC 22

25 Sch edule: Informatio n as to the C ontractor' s Con stru ction M ach inery In surance 9 Ninth Schedule 9 Ninth Information as to the Contractor s Construction Machinery Insurance Contract for: complete To: NZ Transport Agency (Insert name of Principal) Address: (Insert Postal Address) From: (Name of Insurance Company) Address: (Insert Postal Address) We confirm having effected Plant insurance for In respect of (The Contractor) (The Principal) (Project Title) Annual Policy Policy Expiry Date: The sums insured are: Schedule of construction machinery attached $ (Plus GST) The policy deductible is (GST inclusive) $ We advise that special terms, copy attached, have been applied to this policy Policy cover terms included are: Automatic reinstatement No cancellation for non-payment without prior notification No settlement delay due to exercise of subrogation We undertake that this policy will not be cancelled or amended by us within the period of insurance without written advice to the insured party which has arranged the insurances. The insurance issued is subject to the terms and conditions of the policy. We do not warrant that this policy complies with the requirements of NZS 3910:2003. Insurance Company Stamp Date SIGNED BY SIGNATORY S TITLE CC 23

26 Sch edule: Information as to th e Contractor s Motor Veh icle In surance 10 Tenth Schedule 10 Tenth Information as to the Contractor s Motor Vehicle Insurance Contract for: complete To: NZ Transport Agency (Insert name of Principal) Address: (Insert Postal Address) From: (Name of Insurance Company) Address: (Insert Postal Address) We confirm having effected Motor Vehicle insurance for: In respect of (The Contractor) (The Principal) (Project Title) Annual Policy Policy Expiry Date: The sums insured are: Section 2 - liability $ (Plus GST) The policy deductibles are: Section 2 (GST inclusive) $ We advise that special terms, copy attached, have been applied to this policy Policy cover terms included are (a) Automatic reinstatement No cancellation for non-payment without prior notification No settlement delay due to exercise of subrogation We undertake that this policy will not be cancelled or amended by us within the period of insurance without written advice to the insured party which has arranged the insurances. The insurance issued is subject to the terms and conditions of the policy. We do not warrant that this policy complies with the requirements of NZS 3910:2003. Insurance Company Stamp Date SIGNED BY SIGNATORY S TITLE CC 24

27 welfth Sched ule: Cost Flu ctuation s 11 Twelfth Schedule 11 T <<The following rules apply to this Schedule (this has been structured to allow for a combined contract which includes maintenance, reseals or maintenance and reseals): Include C M only, for all Highways and Maintenance contracts; AND Include C R for Highways and Maintenance contracts with large Reseal Components (RO and/or RM) For RO and RM contracts use C R only and refer to Guidance note under Clause 4. Cost Fluctuation 1 The provisions of this Schedule shall apply when provided for in the Special Conditions. 2 Subject to the remainder of this Schedule, the amounts payable by the Principal, to the Contractor under the Contract shall be adjusted up or down by amounts calculated in accordance with the following formula: C Total = C M + C R C M =V M a 1 (W -W ) b 1(G - G ) c1(b - B ) d1(t - T ) e1(r - R ) W G B T R f 1(F1 - F1 ) F1 C R =V R a 2 (W -W ) b + W 2 (G - G ) c + G 2 (B - B ) d + B 2 (T - T ) e + T 2 (R - R ) + R f 2(F2 - F2 ) F2 Where: C M The sum given by the equations in either square bracket shall be rounded to four decimal places before final multiplication with valuation of work, V M or V R. = General Maintenance cost fluctuation adjustment for the quarter under consideration. C R = Reseal Cost fluctuation adjustment for the quarter under consideration. V M = Valuation of work certified for payment as having been completed during the quarter under consideration for all contract scheduled items excluding schedule items Surfacing Design and Acceptance, Resealing and Thin Asphaltic Surfacing, without deduction of retentions and excluding the cost fluctuation adjustment V R = Valuation of work certified for payment as having been completed during the quarter under consideration for contract works completed under scheduled items Surfacing Design and Acceptance, Resealing and Thin Asphaltic Surfacing only, without deduction of retentions and excluding the cost fluctuation adjustment. W G B T = Labour Index - published by Statistics New Zealand for the quarter under consideration. (Index reference LCIQ.SG53Z9) = Producers Price Index Inputs - Non-Metallic mineral product manufacturing, Published by Statistics New Zealand for the quarter under consideration. (Index reference PPIQ.SQNCC6100) = Producers Price Index Inputs - Construction Published by Statistics New Zealand for the quarter under consideration. (Index reference PPIQ.SQNEE0000) = Producers Price Index Inputs Tansport, postal and warehousing, Published by Statistics New Zealand for the quarter under consideration. (Index reference PPIQ.SQNII0000) CC 25

28 11 Twelfth Schedule R = Producers Price Index Inputs - Road Transport, Published by Statistics New Zealand for the quarter under consideration. (Index reference PPIQ.SQNII1100) F 1 = All Farming Inputs Price Index Fuel and oil, Published by Statistics New Zealand for the quarter under consideration. (Index reference FPIQ.SI9J) F 2 = Bitumen Price Index published by Land Transport New Zealand for the quarter under consideration. W, G, B, T, R, F 1, F 2 = As defined for W, G, B, T, R, F 1, F 2 respectively, but applying for the quarter during which tenders close. a 1, b 1, c 1, d 1, e 1, f 1 = The proportions of inputs W, G, B, T, R, F 1 respectively in the Contract, under the General Maintenance Index. a 2, b 2, c 2, d 2, e 2, f 2 = The proportions of inputs W, G, B, T, R, F 2 respectively in the Contract, under the Revised Reseal Index. 3 The proportions of each input represented by a 1, b 1, c 1, d 1, e 1 and f 1 in Clause 2, shall be as specified in Table 1 below: Table 1: Proportion of Each Input in General Maintenance Index Labour Cost Index, a 1 Non-Metallic Minerals, b 1 Construction, c 1 Transport, Postal and Warehousing, d1 Road Transport, e 1 Fuel and Oil, f The proportions of each input represented by a 2, b 2, c 2, d 2, e 2 and f 2 in Clause 2, shall be as specified in Table 2 below: Table 2: Proportion of Each Input in Revised Reseal Index Labour Cost Index, a 2 Non-Metallic Minerals, b 2 Construction, c 2 Transport, Postal and Warehousing, d 2 Road Transport, e 2 Bitumen Price Index, f Guidance Note for Clause 4 <<Guidance note: For Resurfacing Output and Resurfacing Method Contracts only. Cost Fluctuations will apply upon commencement of the Contract. Delete Clause 4 and 5 below and replace Clause 4 with: >> "Cost Fluctuation provisions shall be applied from the commencement of the Contract period. 4 Unless Clause 5 applies, no cost fluctuation provision shall apply in: the first 12 months from the commencement of the contract period; or in the first 14 months from the date tenders close, CC 26

29 11 Twelfth Schedule whichever period ends first. Thereafter cost fluctuations shall be calculated quarterly in accordance with this Schedule, and shall be applied for payment of work completed during the quarter in consideration. 5 A cost fluctuation provision shall be made under this Schedule in any full quarter that occurs within a period described in Clause 4 above if one or more of the indices used in the cost fluctuation formula (see Clause 2) moves by more than 100 index points in that quarter. If such a move in an index occurs, for the quarter in which the index moved, the formula in Clause 2 will be applied for payment of work certified for payment as having been completed during that quarter, using the weighted proportion of the affected input (as outlined in Clause 3) and 80% of the index which moved. The unaffected inputs will remain at their original values for the adjustment calculation. For the quarter under consideration, the Contractor shall be paid the lesser of the amount of a) the adjustment made on the index that moved more than 100 index points, as outlined above or b) the amount calculated by the application of the entire formula. 6 For the purpose of calculating the cost fluctuation adjustment in Clause 2, any Daywork, Prime Cost Sums, Variations and other payment items which are based on actual cost, or current prices and any advances shall be excluded from the Engineer's valuation. 7 No other cost fluctuation adjustment shall be made by reason of any inaccuracy in the proportions of inputs specified. 8 The Contractor shall not be entitled to claim or have deducted any cost fluctuation adjustment for any further changes in indices which occur after the Due Date for Completion of the Contract. 9 The indices to be used in the calculation of the cost fluctuation in Clause 2 shall be those first published by Statistics New Zealand for the appropriate quarter. 10 Where indices for the quarter have not yet been published, interim payments shall be made on the basis of the indices for the most recent quarter for which indices are available. 11 If at any time any of the indices referred to in Clause 2 are no longer published by Statistics New Zealand, or if the basis of any index is materially changed, the adjustment shall thereafter be calculated by using such other index, or in such other manner as will fairly reflect the changes as previously measured by that index. CC 27

30 11 Twelfth Schedule 12 <<Example of Twelfth Schedule for RM and RO Contracts>> Cost Fluctuation 1 The provisions of this Schedule shall apply when provided for in the Special Conditions. 2 Subject to the remainder of this Schedule, the amounts payable by the Principal, to the Contractor under the Contract shall be adjusted up or down by amounts calculated in accordance with the following formula: a(w -W ) b(g - G ) c(b - B ) d(t - T ) e(r - R ) C = V W G B T R f(f - F ) F Where: The sum given by the equation in square brackets shall be rounded to four decimal places before final multiplication with valuation of work, V. C = Cost fluctuation adjustment for the quarter under consideration. V = Valuation of work certified for payment as having been completed during the quarter under consideration, without deduction of retentions and excluding the Cost Fluctuation adjustment. W = Labour Cost Index - published by Statistics New Zealand for the quarter under consideration. (Index reference LCIQ.SG53Z9) G = Producers Price Index Inputs - Non-Metallic mineral product manufacturing, Published by Statistics New Zealand for the quarter under consideration. (Index reference PPIQ.SQNCC6100) B = Producers Price Index Inputs - Construction Published by Statistics New Zealand for the quarter under consideration. (Index reference PPIQ.SQNEE0000) T = Producers Price Index Inputs Tansport, postal and warehousing, Published by Statistics New Zealand for the quarter under consideration. (Index reference PPIQ.SQNII0000) F = Bitumen Price Index - published by Land Transport New Zealand for the quarter under consideration. W, G, B, T, R, F = As defined for W, G, B, T, R, F respectively, but applying for the quarter during which tenders close. a, b, c, d, e, f = The proportions of inputs W, G, B, T, R, F respectively in the Contract. 3 The proportions of each input, represented by a, b, c, d, e and f in Clause 2 as specified in the following table. Alternatively the Principal shall specify in the Special Conditions that one of the following standard indexes shall apply: CC 28

31 11 Twelfth Schedule Standard Index Revised Reseal Index Labour Cost Index, a Non-Metallic Minerals, b Proportion of Each Input Construction, c Transport, Postal and Warehousing, d Bitumen Price Index, f Cost Fluctuation provisions shall be applied from the commencement of the contract period. 5 For the purpose of calculating the cost fluctuation adjustment in Clause 2, any Daywork, Prime Cost Sums, Variations and other payment items which are based on actual cost, or current prices and any advances shall be excluded from the Engineer's valuation. 6 No other cost fluctuation adjustment shall be made by reason of any inaccuracy in the proportions of inputs specified. 7 The Contractor shall not be entitled to claim or have deducted any cost fluctuation adjustment for any further changes in indices which occur after the Due Date for Completion of the Contract. 8 The indices to be used in the calculation of the cost fluctuation in Clause 2 shall be those first published by Statistics New Zealand for the appropriate quarter. 9 Where indices for the quarter have not yet been published, interim payments shall be made on the basis of the indices for the most recent quarter for which indices are available. 10 If at any time any of the indices referred to in Clause 2 are no longer published by Statistics New Zealand, or if the basis of any index is materially changed, the adjustment shall thereafter be calculated by using such other index, or in such other manner as will fairly reflect the changes as previously measured by that index. CC 29

32 Operational Requirements

33 Contents Operational Requirements 1 Scope 32 2 Network Location Classes Resource Consents 33 3 Specific Tender Requirements 33 4 Contract Requirements Contract Management Board State Highway Benchmark and Calibration Sections Organisations to be Notified Hours Contractor cannot work on Sites Programming Constraints Surface Defect Repairs Pothole Repairs in Structural Asphaltic Concrete Pavement Geotextile Fabric Other Digout Maintenance Treatments Other Depression Maintenance Treatments Maintenance Aggregate Grading Other Drainage Systems Required Winter Maintenance Levels of Service for Specific Locations Indicative Seasonal Quantities for Winter Maintenance Treatments Grit Stockpile Locations Urban Detritus Removal Specific Inclusions Control of Plant Pests Verge Maintenance at Special Stormwater Control Locations Seasonal Signs Pavement Marking Materials P/20 Initial Remark Date P/20 Residual Life Highway Lighting Planned Maintenance Traffic Signal Programmed Maintenance Surface Shape Repairs Crack Sealing Additive Cold Milling Depth Other Surfacing Treatments Membrane Seal Modified Membrane Seal Possession of Site Accessways Polymer Modified Binder Additive Polymer Modified Emulsion Additive Polymer Modified Porous Asphalt Additive Construction of Asphalt Concrete Ramps Other Thin Asphaltic Surfacings 43 5 Specific Contract Requirements [Other] 43

34 1 Scope This Section sets out the specific requirements that apply to this contract and are not covered elsewhere in these Contract Documents. 2 Network Each requirement is referenced to the appropriate section and/or clause of these documents. 2.1 Location The network comprises approximately [km] of state highway as described in the following tables and shown in Appendix Classes The following table(s) states the classification, length and location of each state highway within the network. All Years <<Include separate tables for each year if required, eg where the network may be increased in later years due to the amalgamation of a local road into the network.>> Table 2.1: Motorways and Expressways State Highway SH RS RP RS RP Length AADT (vpd) District and/or City State Highway Table 2.2: Rural SH RS RP RS RP Length AADT (vpd) District and/or City Table 2.3: Class R1 State Highways State Highway SH RS RP RS RP Length AADT (vpd) District and/or City Table 2.4: Class R2 State Highways State Highway SH RS RP RS RP Length AADT (vpd) District and/or City

35 Table 2.5: Class R3 State Highways State Highway SH RS RP RS RP Length AADT (vpd) District and/or City Table 2.6: Class R4 State Highways State Highway SH RS RP RS RP Length AADT (vpd) District and/or City State Highway Table 2.7: Urban SH RS RP RS RP Length AADT (vpd) District and/or City 2.3 Resource Consents <<Included if scheduled item 7 is selected.>> <<Specify if it is the Contractor s responsibility to obtain resource consents or not. Provide specific requirements associated with each resource consent listed in Appendix 7.1>> 3 Specific Tender Requirements <<Include specific tendering information and/or instructions to tenderers.>> 4 Contract Requirements <<Include specific contract requirements in this section.>> 4.1 Contract Management Board <<Clause 4.1 Optional - Included if CMB has been approved for inclusion into this Contract.>> Board Membership The Contract Management Board (CMB) in terms of this Contract will comprise the following senior management representatives: a) The NZTA Regional Manager for the Contract Area b) The Regional Manager for the Contract Area Network Management Consultant c) A Management (not operational) Representative for the Contract Area Network Maintenance Contractor who has a comparable level of responsibility for the financial outcomes of their Company as the nominee s under a) and b) above. It is expected that the CMB representatives will not be involved in the day-to-day operation of the contract.

36 4.1.2 Objectives The principle objectives of the CMB will be to: foster the development of a cooperative working environment between the three contracted parties and the maintenance of open channels of communication at the management level consider any areas of concern from any of the parties at an early stage and, wherever possible, facilitate a means of resolution. The CMB will take every opportunity to encourage and enhance the motivation, attitude and behaviour of operational staff of any of the three parties. provide an opportunity to assess the effect that the Contractors, Consultants or Principals actions have on the overall condition of the network. The CMB will consider indicators that focus on measures directly related to contract deliverables and those designed to indicate the impact that these are having on the condition of the network Key Roles and Responsibilities The key roles of the CMB will be: General The operational requirements section of this contract includes enhancements to the standard documentation that are focused on management of the contract. The requirements relating to the establishment of a CMB is an example. The Principal s intent in introducing these enhancements is to achieve maximum efficiency through the establishment of good working relationships applying to all management aspects of the contract and leaving behind any historic legacies. It is expected that the Engineer s Representative and the Contractors Representative will establish effective working relationships based on the principles outlined as follows. Roles The Engineer s Representative role is principally associated with auditing and monitoring the Contractor s activities to ensure that the specified outputs are being satisfactorily achieved. It is expected that the Contractor will take primary responsibility and an innovative outlook to find solutions to achieve the outcomes that the Principal requires. It is expected that the level of monitoring and auditing at any point will be related to the extent to which the Contractor is delivering the specified outputs. That is, that the level will be varied upwards and downwards depending on the degree of compliance apparent. Environment It is expected that the working relationship between all parties will be based on the premise that the Contractor is correct and has the interests of the Principal in mind, reverting to a narrower view only when the Contractor demonstrates through their performance that this is warranted. The parties must be looking for opportunities to reinstate the preferred premise after deficiencies in performance or outputs have required a shift from this while corrective actions are being implemented. Key Elements