SUPPLEMENTARY CONDITIONS

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1 SUPPLEMENTARY CONDITIONS Instructions for Use The A.I.A. A , General Conditions of the Contract for Construction, with Additions and Deletions by Michigan State University, along with the Supplementary Conditions to A , were adopted for use by the Planning, Design and Construction (PDC) Department in May of One copy of the A.I.A. A with MSU Additions and Deletions should be attached with the Front End Documents of each set of construction specifications issued. Copies are available in.pdf format from the IPF website, ( ) or in hard copy from the Planning, Design and Construction office, Room 101 Infrastructure Planning and Facilities. The Supplementary Conditions, available in Microsoft WORD format or hard copy, which contain the details of the Additions to the contract required by MSU, should be attached immediately behind GC-1 GENERAL CONDITIONS OF THE CONTRACT. The Supplementary Conditions for each project issued must be altered, with respect to liquidated damages, payment schedule, contractor s liability insurance, and property insurance, according to the circumstances of each project. Hidden notes on the Microsoft WORD document direct the Architect/Engineer to choose the correct paragraphs for the project circumstances. To access these notes, open the document in Microsoft WORD. The NOTES will be hidden when opened. Right click anywhere on the toolbar and check Formatting. Click on the symbol to show the notes. The notes will not appear when the document is printed.

2 SC -1 MICHIGAN STATE UNIVERSITY SUPPLEMENTARY CONDITIONS TO A.I.A. A (Revised 7/15/2005) [The NOTES following will not show on a printed document. Delete NOTES as necessary if electronic document is used for the Contract. This is done by highlighting the note, clicking on Format Font - and unchecking the Hidden box. NOTE: If liquidated damages are to be employed, use the following. 8.4 LIQUIDATED DAMAGES This Work shall be completed within the time specified in the Instructions to Bidders It is agreed that the contract completion time is of prime importance, which the Contractor acknowledges, and any delay will cause the Owner to sustain substantial damages, though it would be difficult if not impossible to accurately ascertaining the amount of the loss that the Owner will suffer by reason of its inability to enter into possession, occupancy, or use the structure or facility In the event the Contractor shall fail to complete the Work within the time fixed for such completion, or within the time to which such completion may have been extended as described in Paragraph 8.3 of the General Conditions, the contractor shall pay to the Owner the amount detailed in the Advertisement for Bids for each and every calendar day that the time consumed in completing the Work exceeds the time allowed. This sum is fixed and agreed as the liquidated damages that the Owner will suffer by reason of such delay, in view of the difficulty of determining the Owner s actual damages, and is not imposed as a penalty The Owner will deduct and retain out of any of the moneys that may become due to the Contractor, the amount of such liquidated damages, and in case the amount that may become due is less than the amount of the liquidated damages owing to the Owner, the Contractor shall pay the difference upon demand by the Owner. {NOTE: For computing liquidated damages, one formula as follows: (Estimated Contract Price X 0.10) / Contract Time (Days), where 0.10=estimated time-related overhead. Liquidated Damages are meant to reflect the cost to the owner of late completion, when actual losses would be hard to determine. Penalties for late completion are not enforceable. Make sure any LD rate is based on a reasonable estimate of the University s damages (costs). If you are using LD s, you must list them with the completion dates in the Instructions to Bidders! Indicate if they are based on Substantial or Final Completion, or on another milestone (start of classes, move-in, Football Season, Cooling, etc.) Add the following subparagraphs: [NOTE: To be used when the estimated construction contract is less than $5,000,000. DELETE ONE OR THE OTHER PARAGRAPH

3 " Upon certification by the Architect, payment will be made to the Contractor for such work as has been completed under this Contract based upon ninety percent (90%) of the Contract Price for that portion of the Work completed and/or materials stored. " [NOTE: To be used when the estimated construction contract is greater than $5,000,000. SC -2 " Upon certification by the Architect, payment will be made to the Contractor for such work as has been completed under this Contract. Until the Work is fifty percent (50%) complete, the Owner will pay ninety percent (90%) of the amount due the Contractor on account of progress payments. At the time the Work is fifty percent (50%) complete, if the manner of completion of the Work and its progress are and remain satisfactory to the Architect and the Owner s Project Representative, and in the absence of other good and sufficient reasons not to do so, the Architect shall, on presentation by the Contractor of Consent of Surety, authorize any remaining partial payments to be paid in full. The full contract retainage may be reinstated if the manner of completion of the Work and its progress do not remain satisfactory to the Architect and the Owner, if Consent of Surety is withheld, or for other good and sufficient reasons. " 11.1 CONTRACTOR'S LIABILITY INSURANCE [NOTE: Use Following subparagraph if estimated construction contract is expected to be less than $10 Million Commercial General Liability Insurance written on ISO 1998 form CG0001 or equivalent, with a limit of $2,000,000 each occurrence to include coverage for independent contractors, contractual liability and products/completed operations. If such insurance contains a general aggregate limit, it shall apply separately to this Contract. The policy must be endorsed to name Michigan State University, its Board of Trustees, agents, officers, employees, and volunteers as Additional Insureds. [NOTE: Use Following subparagraph if estimated construction contract is expected to be more than $10 Million Commercial General Liability Insurance written on ISO 1998 form CG0001 or equivalent, with a limit of $5,000,000 each occurrence to include coverage for independent contractors, contractual liability and products/completed operations. If such insurance contains a general aggregate limit, it shall apply separately to this Contract. The policy must be endorsed to name Michigan State University, its Board of Trustees, agents, officers, employees, and volunteers as Additional Insureds. [NOTE: Use Following subparagraph if estimated construction contract is expected to be less than $10 Million, and there are no extraordinary environmental risks involved with the project Pollution Legal Liability Insurance with limit of $1,000,000. Coverage shall apply to sudden and gradual pollution legal liability including defense costs and completed operations. If the coverage is written on a claims-made basis, the Contractor warrants that any retroactive date applicable to coverage under the policy precedes the effective date of this contract; and that continuous coverage

4 SC -3 will be maintained or an extended discovery period will be exercised for a period of three years beginning from the time that work under this Contract is completed. Contractors or subcontractors responsible for remediation, including containerization, transportation, or disposal of any hazardous or toxic wastes, materials, or substances requiring permits or licenses by state or Federal Law or regulation shall maintain Pollution Liability Insurance with limit no less than $5,000,000. Coverage shall extend for 3 years after completion of the Work and be evidenced by annual certificates of insurance. [NOTE: Use Following subparagraph if estimated construction contract is expected to be more than $10 Million, or there are extraordinary environmental risks involved with the project Pollution Legal Liability Insurance with limit of $5 million. Coverage shall apply to sudden and gradual pollution legal liability including defense costs and completed operations. If the coverage is written on a claims-made basis, the Contractor warrants that any retroactive date applicable to coverage under the policy precedes the effective date of this contract; and that continuous coverage will be maintained or an extended discovery period will be exercised for a period of three years beginning from the time that work under this Contract is completed. Contractors or subcontractors responsible for remediation, including containerization, transportation, or disposal of any hazardous or toxic wastes, materials, or substances requiring permits or licenses by state or Federal Law or regulation shall maintain Pollution Legal Liability Insurance with limit no less than $5,000,000. Coverage shall extend for 3 years after completion of the Work and be evidenced by annual certificates of insurance PROPERTY INSURANCE [NOTE: Use Following Subparagraphs if estimated construction contract is expect to be less than $250,000 and on an existing building Unless otherwise provided, the Owner shall purchase and maintain, in a company or companies lawfully authorized to do business in the jurisdiction in which the Project is located, property insurance written on a builder's risk "all-risk" or equivalent policy form in the amount of the initial Contract Sum, plus the value of subsequent Contract modifications and cost of materials supplied or installed by others, comprising total value for the entire Project at the site on a replacement cost basis without optional deductibles. Such property insurance shall be maintained, unless otherwise provided in the Contract Documents or otherwise agreed in writing by all persons and entities who are beneficiaries of such insurance, until final payment has been made as provided in Section 9.10 or until no person or entity other than the Owner has an insurable interest in the property required by this Section 11.4 to be covered, whichever is later. This insurance shall include interests of the Owner, the Contractor, Subcontractors and Sub-subcontractors in the Project Property insurance shall be on an "all-risk" or equivalent policy form and shall include, without limitation, insurance against the perils of fire (with extended coverage) and physical loss or damage including, without duplication of coverage, theft, vandalism, malicious mischief, collapse, earthquake, flood, windstorm, falsework, testing and startup, temporary buildings and debris removal including demolition occasioned

5 SC -4 by enforcement of any applicable legal requirements, and shall cover reasonable compensation for Architect's and Contractor's services and expenses required as a result of such insured loss If the Owner does not intend to purchase such property insurance required by the Contract and with all of the coverages in the amount described above, the Owner shall so inform the Contractor in writing prior to commencement of the Work. The Contractor may then affect insurance, which will protect the interests of the Contractor, Subcontractors, and sub subcontractors in the Work, and by appropriate Changed the cost thereof shall be charged to the owner. If the contractor is damaged by the failure or neglect of the Owner to purchase or maintain insurance s described above, without so notifying the Contractor in writing, then the Owner shall bear all reasonable costs properly attributable to such damage If the property insurance requires deductibles, the Owner shall pay costs of covered because of such deductibles This property insurance shall not cover portions of the Work stored off the site or portions of the Work in transit Deleted Boiler and Machinery Insurance. The Owner shall purchase and maintain boiler and machinery insurance required by the Contract Documents or by law, which shall specifically cover such insured objects during installation and until final acceptance by the Owner Deleted Deleted If during the Project construction period the Owner insures properties, real or personal or both, at or adjacent to the site by property insurance under policies separate from those insuring the Project, or if after final payment property insurance is to be provided on the completed Project through a policy or policies other than those insuring the Project during the construction period, the Owner shall waive all rights in accordance with the terms of Section for damages caused by fire or other causes of loss covered by this separate property insurance. All separate policies shall provide this waiver of subrogation by endorsement or otherwise Deleted Waivers of Subrogation. The Owner and Contractor waive all rights against (1) each other and any of their Subcontractors, subsubcontractors, agents and employees, each of the other, and (2) the Architect, Architect's consultants, separate contractors described in Article 6, if any, and any of their subcontractors, sub-subcontractors, agents and employees, for damages caused by fire or other causes of loss to the extent paid by property insurance obtained pursuant to this Section 11.4 or other property insurance applicable to the Work, except such rights as they have to proceeds of such insurance held by the Owner as fiduciary. The Owner or Contractor, as appropriate, shall require of the Architect, Architect's consultants, separate contractors described in Article 6, if any, and the subcontractors, sub-subcontractors, agents and employees of any of them, by appropriate agreements, written where legally required for validity,

6 SC -5 similar waivers each in favor of other parties enumerated in this section The policies shall provide for such waivers of subrogation by endorsement or otherwise. A waiver of subrogation shall be effective as to a person or entity even though that person or entity would otherwise have a duty of indemnification, contractual or otherwise, did not pay the insurance premium directly or indirectly, and whether or not the person or entity had an insurable interest in the property damaged A loss insured under the Owner's property insurance shall be adjusted by the Owner and made payable to the Owner for the insureds, as their interests may appear, subject to the requirements of any applicable mortgagee clause and of Section The Contractor shall pay Subcontractors their just shares of insurance proceeds received by the Contractor, and by appropriate agreements, written where legally required for validity, shall require Subcontractors to make payments to their Sub-subcontractors in similar manner Deleted The Owner shall have the power to adjust and settle a loss with insurers unless one of the parties in interest shall object in writing within five days after occurrence of loss to the Owner's exercise of this power; if such objection is made, the dispute shall be resolved as provided in Article 4. [NOTE: Use the following subparagraphs for all new buildings and additions, and for all work in existing buildings estimated to be greater than $250, The Contractor shall purchase and maintain, in a company or companies lawfully authorized to do business in the jurisdiction in which the Project is located, property insurance written on a builder's risk "all-risk" or equivalent policy form in the amount of the initial Contract Sum, plus the value of subsequent Contract modifications and cost of materials supplied or installed by others, comprising total value for the entire Project at the site on a replacement cost basis without optional deductibles. Such property insurance shall be maintained, unless otherwise provided in the Contract Documents or otherwise agreed in writing by all persons and entities who are beneficiaries of such insurance, until final payment has been made as provided in Section 9.10 or until no person or entity other than the Owner has an insurable interest in the property required by this Section 11.4 to be covered, whichever is later. This insurance shall include interests of the Owner, the Contractor, Subcontractors and Sub-subcontractors in the Project Property insurance shall be on an "all-risk" or equivalent policy form and shall include, without limitation, insurance against the perils of fire (with extended coverage) and physical loss or damage including, without duplication of coverage, theft, vandalism, malicious mischief, collapse, earthquake, flood, windstorm, falsework, testing and startup, temporary buildings and debris removal including demolition occasioned by enforcement of any applicable legal requirements, and shall cover reasonable compensation for Architect's and Contractor's services and expenses required as a result of such insured loss If the property insurance requires deductibles, the Contractor shall pay costs not covered because of such deductibles

7 This property insurance shall cover portions of the Work stored off the site or portions of the Work in transit. SC Partial occupancy or use in accordance with Section 9.9 shall not commence until the insurance company or companies providing property insurance have consented to such partial occupancy or use by endorsement or otherwise. The Owner and the Contractor shall take reasonable steps to obtain consent of the insurance company or companies and shall, without mutual written consent, take no action with respect to partial occupancy or use that would cause cancellation, lapse or reduction of insurance Boiler and Machinery Insurance. The Owner shall purchase and maintain boiler and machinery insurance required by the Contract Documents or by law, which shall specifically cover such insured objects during installation and until final acceptance by the Owner Deleted Deleted If during the Project construction period the Owner insures properties, real or personal or both, at or adjacent to the site by property insurance under policies separate from those insuring the Project, or if after final payment property insurance is to be provided on the completed Project through a policy or policies other than those insuring the Project during the construction period, the Owner shall waive all rights in accordance with the terms of Section for damages caused by fire or other causes of loss covered by this separate property insurance. All separate policies shall provide this waiver of subrogation by endorsement or otherwise The Contractor shall file with Owner a copy of each policy that includes insurance coverages required by this Section Each policy shall contain all generally applicable conditions, definitions, exclusions and endorsements related to this Project. Each policy shall contain a provision that the policy will not be canceled or allowed to expire, and that its limits will not be reduced, until at least 30 days' prior written notice has been given to the Contractor Waivers of Subrogation. The Owner and Contractor waive all rights against (1) each other and any of their subcontractors, sub-subcontractors, agents and employees, each of the other, and (2) the Architect, Architect's consultants, separate contractors described in Article 6, if any, and any of their subcontractors, sub-subcontractors, agents and employees, for damages caused by fire or other causes of loss to the extent covered by property insurance obtained pursuant to this Section 11.4 or other property insurance applicable to the Work, except such rights as they, as insureds, have to proceeds of such insurance held by the Owner as fiduciary. The Owner or Contractor, as appropriate, shall require of the Architect, Architect's consultants, separate contractors described in Article 6, if any, and the subcontractors, subsubcontractors, agents and employees of any of them, by appropriate agreements, written where legally required for validity, similar waivers each in favor of other parties enumerated herein. The policies shall provide such waivers of subrogation by endorsement or otherwise. A waiver of subrogation shall be effective as to a person or entity even though that person or entity would otherwise have a duty of

8 indemnification, contractual or otherwise, did not pay the insurance premium directly or indirectly, and whether or not the person or entity had an insurable interest in the property damaged. SC A loss insured under the Owner's property insurance shall be adjusted by the Owner and made payable to the Owner as fiduciary for the insureds, as their interests may appear, subject to requirements of any applicable mortgagee clause and of Section The Contractor shall pay Subcontractors their just shares of insurance proceeds received by the Contractor, and by appropriate agreements, written where legally required for validity, shall require Subcontractors to make payments to their Sub-subcontractors in similar manner Deleted The Owner may adjust and settle a loss with insurers unless one of the parties in interest shall object in writing within five days after occurrence of loss to the Owner's exercise of this power; if such objection is made, the dispute shall be resolved as provided in Article 4.

Document A141 TM Exhibit B. Insurance and Bonds. for the following PROJECT: (Name and location or address)

Document A141 TM Exhibit B. Insurance and Bonds. for the following PROJECT: (Name and location or address) Insurance and Bonds Document A141 TM 2014 Exhibit B for the following PROJECT: (Name and location or address) Native Village of Eyak Community Health Center Repair Project P.O. Box 1388 Cordova, AK 99574