Specification. Page Utility Enterprises Powell Substation T2 - Steel Structures. May Bid #225

Transcription

1 Specification Page Utility Enterprises Powell Substation T2 - Steel Structures Bid #225 May 2018 Intermountain Consumer Professional Engineers, Inc East South Union Avenue Midvale, Utah (801)

2 TABLE OF CONTENTS Section Contents Page Notice to Bidders... iii Instructions to Bidders... iv Proposal... vii 1.0 GENERAL CONDITIONS 1.1 Contract Documents Definitions Execution of Contract Legal Addresses Scope and Intent of Contract Documents Assignments Oral Statements Referenced Standards No Waiver of Rights Engineering Inspection Contractor Default Delivery and Shipping Hindrances and Delays Suspension of Work Delayed Shipment Cancellation of Work Modifications Changes to the Contract Arbitration Laws and Regulations Patents Materials and Equipment Guarantee Insurance Indemnification Release of Liability Claims for Labor and Materials Invoicing Title Payment GENERAL DESCRIPTION AND SCOPE OF THE WORK 2.1 General Work Included Under These Specifications Miscellaneous Materials and Services Work Not Included Under These Specifications Contractor's Services Construction Management System Schedule GENERAL STRUCTURE SPECIFICATIONS 3.1 General Referenced Standards Materials and Equipment Page Utility Enterprises Substation Steel Structures Page i

3 3.4 Identification Preshipment Inspection Shipments Shipping Notice Materials List Correction of Errors Quality Assurance Shop Coating Protection ENGINEERING DATA 4.1 General Correspondence Test and Inspection Data Instruction Manuals DRAWING LIST 5.1 General SUBSTATION STEEL EQUIPMENT STRUCTURES - RECTANGULAR TUBULAR 6.1 General Drawings Codes and Standards Materials Fabrication Welding Identification Galvanizing DRAWINGS AND ANCHOR BOLT SCHEDULE Powell Substation S100 General Steel Notes S101 69kV Low Bus Support Structure PS01 S kv Bus Support Structure PS03 S104 Regulator Bypass Structure PS04 S105 Regulator Bypass Structure PS04 S109 Breaker Operating Platform PS08 S119 Anchor Bolts - Schedule S120 69kV High Switch Structure PS12 Page Utility Enterprises Substation Steel Structures Page ii

4 NOTICE TO BIDDERS NOTICE TO BIDDERS: Sealed proposals will be received by Page Utility Enterprises, at its offices located at 640 Haul Road - Page, Arizona, until 3:00 p.m. on May 31 st, 2018, for the furnishing of steel structures for the construction of the Page Utility Enterprises Powell Substations T2 Replacement Project. Bids will be publicly opened on May 31, 2018 at 3:00 pm and then evaluated at a later date. Purchaser shall enter into only one contract for the equipment to be supplied under this specification. Instructions, specifications and proposal blanks will be on file in the office of Intermountain Consumer Professional Engineers, Inc., ("Engineer") 1145 East South Union Avenue, Midvale, UT 84047, where they may be consulted or secured for the purpose of bidding. Page Utility Enterprises Substation Steel Structures Page iii

5 INSTRUCTIONS TO BIDDERS 1. SCOPE OF CONTRACT: Bidder shall be fully responsible for all labor, material and equipment necessary for complete construction of the structures and materials as required in the Contract Documents. 2. SECURING AND COMPLIANCE WITH BIDDING DOCUMENTS: Specifications and other bidding documents may be obtained at the time and place indicated in the Notice to Bidders. Bidders shall comply with all conditions stipulated in such bidding documents. 3. INTERPRETATION OF DRAWINGS AND DOCUMENTS: a. If any bidder is in doubt as to the true meaning of any part of the Contract Documents, or finds errors, discrepancies or omissions in them, he shall at once request interpretation or correction from the Engineer. b. The Engineer will promptly clarify the area in question and issue written instructions to all prospective bidders. Verbal instructions or interpretations will have no validity, regardless of source. c. Request for such clarifications must be in the office of the Engineer a minimum of three (3) days prior to bid opening. 4. PREPARING AND SUBMITTING BIDS: a. Bids shall be prepared on the forms as found in this specification. b. Bids will bear no marks, erasures, or writing changes, other than those provided or requested. c. No verbal or telephone bid modifications or cancellations will be considered. d. The bidder guarantees there shall be no revisions or withdrawal of bid amount for a period of sixty (45) days after bid opening. e. Bid shall be signed by a Principal duly authorized to make contracts. f. Bid proposals shall reflect the cost of all work required by the bidding documents, plus additions, deletions, or modifications required by addenda issued prior to bid opening. g. Bidder shall supply three (3) copies of proposals. h. Bids shall be submitted in opaque envelopes that bear bidders name, marked "Bid Powell Substation - T2 Steel Structures," and be sealed and addressed to: Mr. Phil Faulk, Project Manager Page Utility Enterprises 640 Haul Road Page, Az Telephone: (928) phil@pageutility.com i. It is the bidder's sole responsibility to see that his bid is received at the proper time and place. Any bid received after scheduled bid opening will be considered non-responsive. 5. EXCEPTIONS a. Each bidder shall list in the space provided on the proposal form all exceptions or conflicts between his proposal and the specifications and documents. If more space is required for this listing, additional pages may be added. If the bidder takes no exceptions, he shall write "None" in the space provided. Proposals which do not comply with this requirement will be considered irregular and may be rejected at the discretion of the Purchaser. In case of conflicts not stated as directed, the requirements of the specifications and documents shall govern. b. If the bidder takes exception, all such exceptions shall be specific in nature and carefully referenced to the applicable page number, article number, and article title of the specifications and documents. If the bidder proposes deletion of specification language and substitution of revised language, such deletion and Page Utility Enterprises Substation Steel Structures Page iv

6 substitution shall be carefully presented by typing complete paragraphs or articles of the original specification language and incorporating the substitute language. Proposed deletions shall be set off by brackets, thus: [delete this language], and proposed substitute language shall be indicated by underlining, thus: substitute this language. Exceptions which are general, which make reference to the bidder's standard terms and conditions, or which make reference to the bidder's descriptive information as a whole will not be acceptable. Proposals which do not comply with these requirements for the presentation of exceptions will not be acceptable and may be rejected. c. If a proposal includes express or implied exceptions that are not listed as required, the requirements of the specifications and documents shall govern. The bidder shall not alter any part of the specifications and documents in any way, except by stating his exceptions. 6. BID WITHDRAWALS: Prior to the bid opening, bidders may withdraw a bid by written request or by reclaiming bid envelopes. 7. BID OPENING AND DATE: Bid opening time and date is as per the Notice to Bidders found in this Contract Document. 8. BID PROPOSAL: a. Firm prices shall be quoted. The Bidders proposal shall include sales tax. Prices shall be quoted on the proposal form provided. b. The Purchaser reserves the right to waive minor irregularities or minor errors in any proposal if it appears to the Purchaser that such irregularities or errors were made inadvertently. Any such irregularities or errors so waived must be corrected in the Proposal in which they occur prior to the execution of any contract which may be awarded thereon. c. All Bidders will be notified of any changes in the specifications in addendum letters. Receipt of addendum letters must be acknowledged in the bid proposal. 9. BIDDER QUALIFICATIONS: In order for their proposals to be considered, Bidders must, upon request, demonstrate to the satisfaction of the Purchaser that they are qualified to satisfactorily perform the specified work. The Bidder shall submit written evidence of his qualifications to the Purchaser and the Engineer, in duplicate, not less than three (3) days before the date of proposal opening. Such evidence shall include all information necessary to certify that the Bidder: a. Is regularly engaged in the manufacture of and repair of substation steel structures of the type specified within the United States of America. b. Does not anticipate change in ownership or major policy during the period of the proposed work. If such change is anticipated the scope and effect thereof shall be defined. c. Has adequate plant and manufacturing capacity available to do the work properly and expeditiously within the time period specified. d. Has adequate financial status to meet the financial obligations incident to the work. e. Has no just or proper claims pending against him regarding the quality or performance of his work. f. Has designed and manufactured steel structures for six (6) or more substations of comparable size having similar design requirements, each of which has been in successful commercial operation for at least two years. The evidence shall consist of a selected listing of the substations, indicating for each substation the owner's name location, date of initial operation, and rating. The listing shall be specially prepared for this particular bidding and shall list only those whose substations falling under the above requirements. 10. INTERPRETATION AND ADDENDA a. If any prospective Bidder is in doubt as to the true meaning of any part of the proposed contract documents, he may submit to the Engineer a written request for an interpretation. The person submitting the request will be responsible for its prompt delivery. Any interpretation of the proposed documents will be made only by addendum transmitted to each party receiving a set of such documents. The Purchaser will not be responsible for any other explanations or interpretations of the proposed documents. Page Utility Enterprises Substation Steel Structures Page v

7 b. It shall be the Bidder's responsibility to advise the Engineer, before the time specified for receipt of proposals, of conflicting requirements or omissions of information which require clarification. Those questions not resolved by addenda shall be listed in the space provided on the proposal form, together with statements of the basis upon which the proposal is made as affected by each question. 11. AWARD OR REJECTION OF BID: The Purchaser reserves the right to reject, without cause, any and all bids and to waive any irregularities therein. 12. ACCEPTANCE OF BID: No Bidder shall consider himself under contract until a Letter of Acceptance, bearing an authorized signature, and purchase order number is provided by the Purchaser to the Bidder. Page Utility Enterprises Substation Steel Structures Page vi

8 PROPOSAL NAME OF BIDDER: DATE: TO: Page Utility Enterprises 640 Haul Road Page, AZ Gentlemen: The undersigned, in compliance with your invitation for bids for providing the substation structural steel for the Page Utility Enterprise s Powell Substation T2 Replacement Project, having examined the specifications and related documents and being familiar with all of the conditions affecting the work, do hereby propose to furnish all structures, materials and supplies as required in accordance with the contract documents as prepared by, within the time set forth and at the price stated below. This price is to cover all expenses incurred in providing the structures and materials required under the contract documents of which this proposal is a part. The undersigned hereby declares that the following list states any and all variations from and exceptions to the requirements of the contract documents and that, otherwise, it is the intent of this Proposal that the work will be performed in strict accordance with the contract documents. (Attach additional pages as required.) 1. LUMP SUM PRICE: The undersigned bidder hereby proposed to furnish to the project site the substation structures and materials complete in accordance with the contract documents listed in Paragraph 1. I of the General Conditions for the firm lump sum price of: (Price in Words) Dollars ($) 2. DELIVERY a. Delivery date FOB to Page Electric Utility Powell Substation, Page, Az. weeks after receipt of Purchase Order. Page Utility Enterprises Substation Steel Structures Page vii

9 3. BID PRICES AND WEIGHTS a. Substation Equipment Structures Drawing No Description (STR ID) Qty Wt. (lbs. Each) Total Cost S kv Low Bus Support Structure PS01 1 ea. S kv Bus Support Structure PS03 1 ea. S104/S105 Regulator Bypass Structure PS04 1 ea. S109 Breaker Operating Platform PS08 1 ea. S119 Anchor Bolts 1 lot S kv High Switch Structure-PS12 1 ea. -- Freight to Site 1 LS Sales Tax NA Total Steel Cost b. Qualifications/Material Specifications i. Are the fabricator's welding inspectors certified in accordance with AWS QCI ii. iii. iv. Is the fabricator shop certified in accordance with AISC Quality Certification Program? (If yes, list category of certification.) Type of welding inspection to be used ASTM Specification, grade, yield point and minimum thickness of tubular steel material v. Attachment material specification and grade vi. Baseplate material specification and grade vii. Anchor Bolt material specification Page Utility Enterprises Substation Steel Structures Page viii

10 4. PROPOSAL DATA a. GENERAL i. Each Bidder shall submit complete and definitive information on the offering in sufficient detail to permit a complete analysis of the proposal. The requirements stated in the Instructions to Bidders relative to information submittal shall be followed. ii. The requirements for information contained in this section are basic requirements. Additional information shall be provided as requested by the Engineer or the Purchaser. b. SUPPLEMENTARY INFORMATION i. The following supplementary information shall be submitted with the Proposal. (1) Equipment storage requirements including inside or outside requirements. (2) An outline of recommended maintenance procedures and recommended maintenance intervals. (3) Location of the nearest factory or factory authorized repair facility. c. Manufacturer's Technical Services. The following adjusting prices will be used to adjust the contract amount to or deductions from the manufacturer's service representatives time specified in Section 2.5B (General Description and Scope of Work Section). (1) Per diem at the site of the work $ ii. Per round trip to and from the site of the work $ d. Addenda. The undersigned bidder acknowledges receipt of the following addenda, which have been considered in preparing this Proposal. Number Number Number Number Dated Dated Dated Dated e. Declarations and Signatures. i. The undersigned hereby declares that only the persons or firms interested in the proposal as principals are named herein, and that no other persons or firms than herein mention have any interest in this Proposal or in the contract to be entered into; that this Proposal is made without connection with any other person, company, or parties likewise submitting a bid or proposal; and that it is in all respects for and in good faith, without collusion or fraud. ii. If this Proposal is accepted, the undersigned Bidder agrees to complete delivery of equipment and materials in accordance with the specified schedule listed in Section 2.7. The undersigned fully understands that the time of equipment and materials delivery is vital to the completion of the project and is of the essence of the contract. iii. If written notice of the acceptance of this Proposal is delivered to the undersigned within forty-five (45) days after the time set for receipt of proposals, or any time thereafter before this Proposal is withdrawn by the Bidder, the Bidder's Proposal, Letter of Acceptance, including issuance of purchase order number, and the specification shall constitute Contract/Agreement. The undersigned shall then commence with requirements of the Contract/Agreement. Page Utility Enterprises Substation Steel Structures Page ix

11 Dated at: this day of 20 Bidder (SEAL) By (Signature) (Printed or Typed) Title Attest: Complete Business Address of Bidder: State of Incorporation: Complete Address of Principal Offices: Name, Address and Telephone Number of Person to Contact Regarding this Proposal. Include both Mail and Street Addresses: Telephone: Facsimile: Page Utility Enterprises Substation Steel Structures Page x

12 PART 1 - GENERAL CONDITIONS 1.1 CONTRACT DOCUMENTS. It is understood and agreed that the Notice to Bidders, Instructions to Bidders, Proposal, General Conditions, Specifications, Drawings, Addenda, and Change Orders issued by the Owner or the Engineer are each included in this Contract and the work shall be done in accordance therewith. 1.2 DEFINITIONS. Words, phrases, or other expressions used in these contract documents shall have meanings as follows: A. "Contract" or "contract documents" shall include the items enumerated above under CONTRACT DOCUMENTS. B. "Purchaser" shall mean Page Electric Utility. C. "Bidder" shall mean the corporation, company, partnership, firm, or individual named and designated who has entered into this Contract for the performance of the work covered thereby, and it's, his, or their duly authorized representatives. D. "Manufacturer" shall mean and refer only to a corporation, partnership or individual having a direct contract with the Bidder for performing work covered by these contract documents. E. "Engineer" shall mean the firm of, or its duly authorized agents, such agents acting within the scope of the particular duties entrusted to them in each case. F. "Date of contract" or equivalent words, shall mean the date written in the Letter of Acceptance. G. "Day" or "days", unless herein otherwise expressly defined, shall mean a calendar day or days of 24 hours each. H. "The work" shall mean the equipment, supplies, materials, labor and services to be furnished under the contract and the carrying out of all obligations imposed by the contract documents. I. "Drawings" or "plans" shall mean all (a) drawings furnished by the Purchaser as a basis for proposals, (b) supplementary drawings furnished by the Purchaser to clarify and to define in greater detail the intent of the contract drawings and specifications, (c) drawing furnished by the Purchaser to the Bidder during the progress of the work. J. Whenever in these contract documents the words "as ordered", "as directed", "as required", "as permitted", "as allowed", or words or phrases of like import are used, it shall be understood that the order, direction, requirements, permission or allowance of the Purchaser or Engineer is intended only to the extent of judging compliance with the terms of the contract; none of these terms shall imply that the Purchaser or the Engineer has any authority or responsibility for supervision of the Bidder's forces or construction operations, such supervision and the sole responsibility therefore being strictly reserved for the Bidder. K. Similarly the words "approved", "reasonable". "suitable", "acceptable", "proper", "satisfactory" or words of like effect and import, unless otherwise particularly specified herein, shall mean approved, reasonable, suitable, acceptable, proper or satisfactory in the judgment of the Purchaser or Engineer, to the extent provided in (J) above. L. Whenever in these contract documents the expression "it is understood and agreed" or an expression of like import is used, such expression means the mutual understanding and agreement of the parties executing the Contract Agreement. Page Electric Utility Substation Steel Structures Page 1

13 M. "Official acceptance" shall mean the Purchaser's written acceptance of all work performed under this Contract, based on the Engineer's final inspection and issuance of a final payment certificate. 1.3 EXECUTION OF CONTRACT. A. Through receipt of written notice of the acceptance of the Proposal and issuance of a purchase order number, by the Purchaser, the Bidder shall be under contract to provide structural steel as specified herein. The date of contract shall be the date of the Letter of Acceptance. 1.4 LEGAL ADDRESSES. The business address of the Bidder listed in the Proposal is hereby designated as the place to which all notices, letters, and other communication to the Bidder will be mailed or delivered. The address of the Purchaser appearing below is hereby designated as the place to which all notices, letters, and other communication to the Owner shall be mailed or delivered. Either party may change his address at any time by an instrument in writing delivered to the Engineer and to the other party. Mr. Bryan Hill, General Manager Page Utility Enterprises 640 Haul Road Page, Az Telephone: (928) bryan@pageutility.com 1.5 SCOPE AND INTENT OF CONTRACT DOCUMENTS A. The various parts of the contract documents are intended to supplement but not necessarily duplicate each other. Any work exhibited in one part and not in another shall be executed as if it had been set forth in all parts, so that the work will be performed according to the complete design as determined by the Engineer. B. Should anything necessary for a clear understanding for the work be omitted from the contract documents, or should the requirements appear to be in conflict, the Bidder shall secure written instructions from the Engineer before proceeding with the work affected thereby. It is understood and agreed that the work shall be performed according to the true intent of the contract documents. 1.6 ASSIGNMENT A. The Bidder shall not assign the work, or any part thereof, without the previous written consent of the Purchaser, nor shall he assign, by power of attorney or otherwise, any of the money payable under this contract unless written consent of the Purchaser has been obtained. No right under this Contract, nor claim for any money due or to become due hereunder shall be asserted against the Purchaser, or persons acting for the Purchaser, by reason of any so-called assignment of this Contract or any part thereof, unless such assignment has been authorized by the written consent of the Purchaser. In case the Bidder is permitted to assign moneys due or to become due under this Contract, the instrument of assignment shall contain a clause subordinating the claim of the assignee to all prior liens for services rendered or materials supplied for the performance of the work. 1.7 ORAL STATEMENTS A. It is understood and agreed that the written terms and provisions of this agreement shall supersede all oral statements of representatives of the Purchaser, and oral statements shall not be effective or be construed as being a part of this Contract. 1.8 REFERENCED STANDARDS Page Electric Utility Substation Steel Structures Page 2

14 A. Reference to the standards of any technical society, organization, or association, or to codes of local or state authorities, shall mean the latest standard, code, specification, or tentative standard adopted and published at the date of taking bids, unless specifically stated otherwise. 1.9 NO WAIVER OF RIGHTS A. Neither the inspection by the Purchaser or Engineer or any of their officials, employees, or agents, nor any order by the Purchaser or Engineer for payment of money, or any payment for, or acceptance of, the whole or any part of the work by the Purchaser or Engineer, nor any extension of time, nor any possession taken by the Purchaser or its employees, shall operate as a waiver of any provision of this Contract, or of any power herein reserved to the Purchaser, or any right to damages herein provided, nor shall any waiver of any breach in this Contract be held to be a waiver of any other or subsequent breach ENGINEERING INSPECTION A. The Purchaser may appoint (either directly or through the Engineer) such inspectors as the Purchaser deems proper to inspect the work for compliance with the contract documents. The Bidder shall furnish all reasonable assistance required by the Engineer, or inspectors, for the proper inspection of the work. Should the Bidder object to any interpretation of the contract by an inspector, the Bidder may make written appeal to the Engineer for a decision. B. Inspectors shall have the authority to reject work which is unsatisfactory, faulty, or defective or does not conform to the requirements of the contract documents. Inspection shall not relieve the Bidder from any obligation to perform the work strictly in accordance with the contract documents CONTRACTOR DEFAULT A. If the work to be done under this Contract is abandoned by the Bidder; or if this Contract is assigned by him without the written consent of the Purchaser; or if the Bidder is adjudged bankrupt; or if a general assignment of his assets is made for the benefit of his creditors' or if a receiver is appointed for the Bidder or any of his property; or if at any time the Engineer certifies in writing to the Purchaser that the performance of the work under this Contract is being unnecessarily delayed, that the Bidder is violating any of the conditions of this Contract, or that he is executing the same in bad faith or otherwise not in accordance with the terms of said contract; or if the work is not substantially completed within the time named for its completion or within the time to which such completion date may be extended; then the Purchaser may serve written notice upon the Bidder of the Purchaser's intention to terminate this Contract. Unless within five (5) days after serving of such notice, a satisfactory arrangement is made for continuance, this Contract shall terminate. In the event of such termination, the Purchaser may take over and prosecute the work to completion, by contract or otherwise. The Bidder shall be liable to the Purchaser for all excess cost sustained by the Purchaser by reason of such prosecution and completion. The Purchaser may take possession of, and utilize in completing the work, all materials, equipment, tools, and plant on the site of the work DELIVERY AND SHIPPING A. The Purchaser requires delivery of structural steel and anchor bolts as specified in Paragraph 2.7.D unless otherwise mutually agreed to by both parties. Firm delivery dates shall be of prime concern during the bid evaluation. Date of shipment shall be as promised by the Bidder, based upon prompt receipt of all necessary information. The date of shipment shall be defined as the date the bill of lading is signed by the carrier. It is expected that the anchor bolts shall be delivered prior to delivering of the structural steel and in accordance with the schedule indicated in Paragraph 2.7.D. B. Any change in the delivery date shall be reported immediately by telephone, followed by a written confirmation and explanation thereof. The delivery date shall be extended for the period of any reasonable delay due exclusively to causes beyond the control and without the fault of the Bidder. Page Electric Utility Substation Steel Structures Page 3

15 C. Shipping shall be FOB destination. The title to the material and apparatus furnished hereunder shall pass to the Owner at the destination point. D. The apparatus shall be shipped in assembled units insofar as is consistent with good shipping practice. The apparatus shall be carefully packed for shipment. If items must be disassembled for shipment, they shall be "match-marked". All units and their containers shall be "piece-marked" and shall show the purchase order number. E. On the same day that any shipment to the Purchaser is originated, a transmission, including the following, shall be forwarded to the Owner: 1. Packing List - Two (2) copies. 2. Bill of Lading - Original and two (2) copies. 3. Packing list shall also accompany each shipment. F. The owner shall be notified as to the whereabouts of the steel structures 48 hours prior to their scheduled arrival at the destination point. If the Bidder is not contractually responsible for unloading, the Bidder shall pay any costs associated with unloading in the event that the structural steel is not on site at this notified time. G. Failure to deliver prior to 1:00 p.m. on a Thursday will not guarantee unloading until the following Monday. Layover costs will be paid by the Bidder HINDRANCES AND DELAYS A. The Bidder expressly agrees that in undertaking to complete the work within the time specified, he has made allowance for all hindrances and delays which might usually be expected to occur in performing the work. No claims shall be made by the Bidder for such hindrances and delays. B. If the Bidder experiences hindrances and delays which, in his opinion, are not usually to be expected in the performance of the work and which affect the performance of the work, he may request a change in the contract. Such hindrances and delays may include, but not be limited to, acts or failure to act by the Purchaser or other contractors employed by the Purchaser, fires, floods, labor disputes, epidemics, abnormal weather conditions, or acts of God. Claims by the Bidder for any change in the contract due to such hindrances and delays shall be made in accordance with the requirements of Paragraph 1. 18, CHANGES TO THE CONTRACT. The Bidder shall use all reasonable means to minimize the extent of the delay SUSPENSION OF WORK A. The Purchaser reserves the right to suspend and reinstate execution of the whole or any part of the work without invalidating the provisions of the contract. B. Suspension or reinstatement of the work will be by written notice to the Bidder from the Purchaser. C. Suspension of work shall not automatically entitle the Bidder to additional compensation or a change in the contract time; however, the Bidder will be reimbursed for real and unavoidable direct costs incurred by him as a result of such suspension and/or the contract will be extended as required to compensate for any delay due to such suspension. Claims by the Bidder for change of contract time or an adjustment of the contract price, due to work suspensions order by the Owner, shall be made in accordance with the requirements of Paragraph 1. 18, CHANGES TO THE CONTRACT. The Bidder shall use all reasonable means to minimize the consequences of such suspension DELAYED SHIPMENT Page Electric Utility Substation Steel Structures Page 4

16 A. The Owner reserves the right to order the Bidder to delay shipment of equipment and materials herein contracted. In the event of such a delay is ordered by the Purchaser in writing, the Purchaser will pay the Bidder reasonable and proper extra charges incurred by the Bidder as a result of the delay. Such extra charges shall include storage charges, handling charges, insurance, interest on investment, and transportation charges to the storage facility CANCELLATION OF WORK A. The Purchaser reserves the right to cancel the unshipped portion of the work by giving written notice to the Bidder. In the event of cancellation, the Purchaser will pay the Bidder reasonable and proper cancellation costs. B. Cancellation of the work shall not constitute the basis for a claim for damages or loss of anticipated profits. C. The Bidder shall, after consultation with the Purchaser, take all reasonable steps to minimize the costs related to cancellation. The Bidder shall provide the Purchaser with an accounting of costs claimed, including adequate supporting information, and the Purchaser may, at its expense, audit the claimed costs and supporting information MODIFICATIONS A. The Bidder shall modify the work whenever so ordered by the Purchaser and such modifications shall not affect the validity of the contract. Modifications may involve changes in the amount of the work to be performed or changes in the contract time for which appropriate changes to the contract will be made. B. Contract changes due to modifications shall be made in accordance with the requirements of Paragraph 1.18, CHANGES TO THE CONTRACT CHANGES TO THE CONTRACT A. The contract may be changed only by duly executed change orders issued by the Purchaser. B. If, in the opinion of the Purchaser or the Bidder, any event or action by the other party justifies a change in the contract, either party shall initiate with the other party, within five (5) days after such event or action, a request for a change to the contract. All documentation required to substantiate the proposed change shall be submitted within a minimum reasonable time, not to exceed 30 days, after initiating the request for change. Upon the parties reaching agreement regarding the proposed change, the Purchaser will issue a written change order therefore. C. Notwithstanding the foregoing provisions requiring duly authorized change orders, in the event agreement has been reached between authorized representatives of the parties regarding the change in the contract pending processing of such change order, the Bidder shall proceed with the work on the basis of written interim authorization from the Purchaser. D. If the Bidder claims that any instruction, request, drawing, specifications or other direction or action of the Purchaser or the Engineer constitutes a change in the contract, but has not been authorized as such by a change order in writing by the Purchaser, the Bidder shall immediately request a written interim authorization and proceed without delay to perform the work in accordance with such authorization. The Bidder shall provide written notice of the claim or dispute to the Engineer and the Purchaser within five (5) days of the request for interim authorization. The Bidder's failure to give said written notice within the five (5) day period shall constitute a waiver and relinquishment of any such claim or dispute. The Purchaser's written interim authorization shall not constitute approval of the claim for increased or decreased work, but shall be a condition precedent to the Bidder's right to receive payment for such work and the Bidder's right to prosecute or maintain any proceeding to recover from such work. Page Electric Utility Substation Steel Structures Page 5

17 1. Contract Price Changes- The contract price may be changed due to modifications which involve extra work or decreased work; or due to work suspensions, hindrances, and delays over which the bidder has no control except for the cost of material items relating to the manufacturer of this equipment. Claims for changes in the contract price shall conform to the requirements specified herein. a. Increased Price (1) If a change in the contract is required due to work suspensions or hindrances and delays, the contract price will be increased according to agreed lump sums, agreed acceleration costs, or other demonstrable costs submitted by the Bidder and substantiated to the satisfaction of the Purchaser. (2) If a change in the contract price is required due to a modification which increases the amount of the work, and the added work or any part thereof is of a type and character which can properly and fairly be classified under one or more unit price items of the contract, then the contract price will be increased according to the amount actually done and at the applicable unit price. Otherwise, such work shall be paid for as hereinafter provided. (3) Contract price changes for modifications involving extra work will be based on agreed lump sums or on agreed unit prices whenever the Purchaser and the Bidder agree upon such prices before the extra work is started; otherwise, payments for extra work will be based on actual direct cost plus a percentage allowance. The percentage allowance shall include the Bidder's extra profit and extra overhead and, unless otherwise agreed by the Bidder and the Purchaser,, the percentage allowance shall be 15 percent of the total direct cost. (4) For the purpose of determining whether proposed extra work will be authorized, or for determining the payment method for extra work, the Bidder shall submit to the Engineer, upon request, a detailed cost estimate for proposed extra work. The estimate shall indicate itemized quantities and charges for all elements of direct cost and a percentage allowance to cover extra profit and extra overhead. Unless otherwise agreed upon by the Bidder and the Purchaser, the percentage allowance shall be 15 percent of the total direct cost. b. Decreased Price 1.19 ARBITRATION (1) If a change in the contract price is required due to a modification which decreased the amount of work, such decrease shall not constitute the basis for a claim for damages or anticipated profits on work affected by such decrease. Where the value of omitted work is not covered by applicable unit prices, the engineer shall determine on an equitable basis the amount of: (a) Credit due the Purchaser for contract work deleted as a result of an authorized change. (b) Allowance to the Bidder for any actual loss incurred in connection with the purchase, delivery, and subsequent disposal of materials or equipment required for use on the work as planned and which could not be used in any part of the work actually built. (c) Any other adjustment of the contract amount where the method to be used in making such adjustment is not clearly defined in the contract documents. (2) Contract Time Changes- The contract time may be changed due to work modifications, hindrances and delays, and work suspensions over which the Bidder has no control. A. Before bringing any action in court pertaining to a decision of the Engineer, or claim, dispute, or other matter in question between the Purchaser and Bidder arising out of, or relating to the contract documents or the breach thereof, the objector (hereinafter referred to as Party A) shall first offer to arbitrate the question with the other party to the contract (hereinafter referred to as Party B) by notifying him in writing and setting forth in such notice the question to be arbitrated. Page Electric Utility Substation Steel Structures Page 6

18 B. Party B can elect to arbitrate or not. If Party B agrees to arbitrate, he shall so advise Party A in writing within 10 days after receipt of Party A's notice. Notice by Party B that he does not wish to arbitrate, or failure of Party B to notify Party A within the 10 day period, will give Party A the right to start action in court. C. If Party B agrees to arbitrate, the arbitration proceeding shall be governed by the Construction Industry Arbitration Rules or Commercial Arbitration Rules of the American Arbitration Association as appropriate of the matter to be arbitrated. The award rendered by the arbitrators shall be final, and judgment may be entered upon it in any court having jurisdiction. D. The Bidder shall not cause a delay of work during the arbitration proceedings, except by agreement with the Purchaser. It is understood and agreed by the parties to the contract that no requirement or statement herein shall be intercepted as curtailing the power of the Engineer to determine the amount, quality, and acceptability of work LAWS AND REGULATIONS A. The bidder shall observe and comply with all ordinances, laws, and regulations and shall protect and indemnify the Purchaser and the Purchaser's officers and agents, including the Engineer, against any claim or liability arising from or based on any violation of the same PATENTS A. Royalties and fees for patents covering materials, articles, apparatus, devices, equipment, or processes used in the work shall be included in the contract amount. The Bidder shall satisfy all demands that may be made at any time for such royalties or fees and he shall be liable for any damages or claims for patent infringements. The Bidder shall, at his own cost and expense, defend all suits or proceedings that may be instituted against the Purchaser for alleged infringement of any patents involved in the work and, in case of an award of damages, the Bidder shall pay such award. Final payment to the Bidder by the Purchaser will not be made while any such suit or claim remains unsettled MATERIALS AND EQUIPMENT A. Unless specifically provided otherwise in each case, all materials and equipment furnished for permanent installation in the work shall conform to applicable standard specifications and shall be new, unused, and undamaged when installed or otherwise incorporated in the work. No such material or equipment shall be used by the Bidder for any purpose other than that intended or specified, unless such use is specifically authorized by the Purchaser in each case GUARANTEE A. The Contractor guarantees that the work herein contracted will be as specified and will be free from defects in design, workmanship and materials. If within the guarantee period the work fails to meet the provisions of this guarantee, the Bidder shall promptly correct any defects, including nonconformance with the contract documents, by adjustment, repair, or replacement of all defecting parts or materials. B. Except as otherwise prescribed by the terms of any special guarantees specified elsewhere in the contract documents, the guarantee period shall begin on the date of final payment or on the date of initial operation, whichever is later, and shall end 12 months later. C. If manufacturer's field representatives are included in the contract, such services shall be furnished by the Bidder without cost for the correction of any defects. D. This guarantee shall be extended to cover all repairs and replacements furnished under the guarantee and the period of the guarantee for each such repair or replacement shall be 1 year after installation and Page Electric Utility Substation Steel Structures Page 7

19 energization, except as otherwise prescribed by the terms of any special guarantees specified elsewhere in the contract documents. E. The Bidder will be given an opportunity to confirm the existence of the defect but he shall not delay the correction while making such determination. F. If within ten (10) days after the Purchaser has notified the Bidder of a defect, failure, or abnormality in the work, the Bidder has not started to make the necessary repairs or adjustments, the Purchaser is hereby authorized to make the repairs or adjustments or to order the work to be done by a third party, or to be performed by the Purchaser, the cost of the work to be paid by the Bidder. G. In the event of an emergency where, in the judgment of the Purchaser, delay would cause serious loss or damage, repairs or adjustments may be made by the Purchaser or a third party chosen by the Purchaser without advance notice to the Bidder and the cost of the work shall be paid by the Bidder INSURANCE A. Except as otherwise specified in this Contract, the Bidder and his subcontractors of any tier will be required at their own expense to maintain in effect at all times during the performance of the work insurance coverages with limits not less than those set forth below with insurers and under forms of policies satisfactory to the Purchaser. It shall be the responsibility of the Bidder to maintain adequate insurance coverage and to assure that subcontractors are adequately insured at all times. Failure of the Bidder to maintain adequate coverage shall not relieve him of any contractual responsibility or obligation. B. The requirements specified herein as to types, limits, and Purchaser's approval of insurance coverage to be maintained by the Bidder and his subcontractors are not intended to and shall not in any manner limit or qualify the liabilities and obligations assumed by the Bidder and his subcontractors under this Contract. C. Any insurance carried by the Purchaser or the Engineer which may be applicable shall be deemed to be excess insurance and the Bidder's insurance primary for all purposes despite any conflicting provision in the Bidder's policies to the contrary. D. If the Bidder does not furnish onsite field services, the workmen's compensation and employer's liability, comprehensive automobile liability, comprehensive general liability, and umbrella liability insurance specified herein may be omitted. E. For insurance purposes, the title of ownership of equipment and materials furnished under this Contract shall remain with the Bidder until the Purchaser receives such equipment and materials at the jobsite. 1. Certificates of Insurance. a. The Bidder and his subcontractors shall furnish the Purchaser and the Engineer with certificates of insurance as evidence that policies providing the required coverages and limits of insurance are in full force and effect. The certificates shall provide that any company issuing an insurance policy for the work under this Contract shall provide not less than 15 days advance notice in writing to the Purchaser and the Engineer prior to cancellation, termination, or material change of any policy of insurance. In addition, the Bidder shall immediately provide written notice to the Purchaser and Engineer upon receipt of notice of cancellation of an insurance policy or a decision to terminate or alter an insurance policy. All certificates of insurance shall clearly state that all applicable requirements have been satisfied, including certification that the policies are of the "occurrence" type. Certificates of insurance for Bidder -and subcontractor- furnished insurance and notices of any cancellations, terminations, or alterations of such policies shall be mailed to the Purchaser and the Engineer at the addresses listed in Paragraph 1.4. b. Each certificate shall quote the insuring agreement and all exclusions and additions as they appear in the policy; or in lieu of certificates, copies of the complete policy may be submitted. Page Electric Utility Substation Steel Structures Page 8

20 c. Certificates of insurance covering physical loss or damage to equipment and materials shall be submitted at least 30 days before the first shipment of the equipment and materials. A certificate for each of the other insurance policies shall be submitted at least 30 days prior to the expected arrival of the Bidder's personnel at the site of installation. 2. Additional Insureds a. All insurance coverages furnished under this Contract shall include the Purchaser, the Engineer, and their partners, directors, officers, agents, and employees as additional insureds with respect to the activities of the Bidder and his subcontractors. b. These policies shall contain a "cross liability" or "severability of interest" clause or endorsement. Notwithstanding any other provision of these policies, the insurance afforded shall apply separately to each insured, named insured, or additional insured with respect to any claim, suit, or judgment made or brought by or for any other insured, named insured, or additional insured as though a separate policy had been issued to each, except the insurer's liability shall not be increased beyond the amount or amounts for which the insurer would have been liable had only one insured been named. c. The Purchaser or the Engineer shall not by reason of their inclusion under these policies incur liability to the insurance carrier for payment of premium for these policies. 3. Waiver of Subrogation a. The Bidder and his subcontractors shall require their insurance carriers, with respect to all insurance policies, to waive all rights or subrogation against the Owner and the Engineer, their partners, directors, officers, agents, and employees and against other contractors and subcontractors. 4. Workmen's Compensation and Employer's Liability a. This insurance shall protect the Bidder and the additional insureds against all claims under applicable state workmen's compensation laws. The insureds shall also be protected against claims for injury, disease, or death of employees which, for any reason, may not fall within the provisions of a workmen's compensation law. This policy shall include an "all states" endorsement. b. The liability limits shall not be less than: (1) Workman's' compensation Statutory (2) Employers Liability $100,000 each occurrence 5. Comprehensive Automobile Liability a. This insurance shall be written in comprehensive form and shall protect the Bidder and the additional insureds against all claims for injuries to members of the public and damage to property of others arising from the use of motor vehicles, and shall cover operation on or off the site of all motor vehicles license for highway use, whether they are owned, non-owned, or hired. b. The liability limits shall not be less than: (1) Bodily injury $500,000 combined single and property damage limit each occurrence 6. Comprehensive General Liability a. This insurance shall be an "occurrence" type policy written in comprehensive form and shall protect the Bidder and the additional insureds against all claims arising from bodily injury, sickness. disease or death of any person other than the Bidder's employees, or subcontractors. Page Electric Utility Substation Steel Structures Page 9