Standard Form of Agreement between Owner and Construction Manager

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1 Standard Form of Agreement between Owner and Construction Manager Agreement made as of the day of in the year 20 Between the Owner: Town of Warwick 132 Kings Highway Warwick, New York and the Construction Manager: for the following Project: Town Engineer: The Project is funded, in part, with a Federal Transportation Administration ( FTA ) grant(s) passed through to Owner by the County of Orange, New York ( County ). As such, certain aspects of the Project may require approvals by both Owner and County. Early schematic designs and other design criteria were prepared by a County consultant ( County Consultant ). County Consultant: Cambridge Systematics, Inc. 38 East 32 nd Street New York, New York The Owner and Construction Manager agree as set forth below. Construction of Warwick Public Transit Garage 1

2 ARTICLE 1 CONSTRUCTION MANAGER S RESPONSIBILITIES 1.1 CONSTRUCTION MANAGER S SERVICES The Construction Manager s services consist of those services performed by the Construction Manager, Construction Manager s employees and Construction Manager s consultants as enumerated in Articles 2 and 3 of this Agreement The Construction Manager s services shall be provided in conjunction with the services of the Town Engineer The Construction Manager shall provide sufficient organization, personnel and management to carry out the requirements of this Agreement in an expeditious and economical manner consistent with the interests of the Owner The services covered by the Agreement are subject to the time limitations contained in Time is of the essence and the Construction Manager s services shall be performed as expeditiously as is consistent with professional skill and care and the orderly progress of the Project. The Construction Manager shall submit for the Owner s approval and the Town Engineer s information, a schedule for the performance of the Construction Manager s services which may be adjusted, with Owner s approval, as the Project proceeds, and shall include allowances for periods of time required for the Owner s and Construction Manager s review and for approval of submissions from the Contractor and by authorities having jurisdiction over the Project. Time limits established by this schedule approved by the Owner shall not, except for reasonable cause, be exceeded by the Construction Manager or Owner The Construction Manager shall provide a Project Superintendent, to be approved by Owner, who shall be on-site, at minimum, whenever Work is occurring. Owner shall retain sole discretion throughout the Project to withdraw approval of any Project Superintendent and Construction Manager shall be obligated provide a new Project Superintendent, to be approved by Owner, at no additional cost to Owner Project Schedule. The Construction Manager shall diligently render services in accordance with the schedule specified in the attached and incorporated Attachment A, as may be modified from time to time upon written agreement of the Owner and the Construction Manager. This schedule excludes any approval time per Phase for the Owner to review and comment on documents prepared and includes one week per Phase for the Town Engineer to review and comment on documents prepared As part of Basic Services, at minimum, the Construction Manager shall provide the Cost Estimates to be provided to Owner at the following points of the Project s phases in accordance with the Project Schedule:.1 as necessary for the Town Engineer and Construction Manager to provide a report and estimate to Owner upon completion of any concept plan during the Schematic Design Phase; and.2 upon completion of the Design Development; and.3 upon not less than 60% completion of the Construction Documents; and Construction of Warwick Public Transit Garage 2

3 .4 upon completion of the Construction Documents As part of Basic Services, from the date of execution of this Agreement, the Construction Manager shall provide monthly written narrative reports to Owner on the progress of the Project, any issues with the quality of the Work or the construction feasibility in accordance with Contract Documents, the performance of any Contractor, Subcontractor, or Sub-Subcontractor; the ability to keep the Project on budget and schedule and all other matters relevant to the status of the Project. Such monthly reports shall also include, as applicable, originals or updates to: cost estimates, schedules of values, index of change orders and construction change directives, permits or approvals obtained, reports or inspection and test results, payment certifications and other similar relevant materials Duties, responsibilities and limitations of authority of the Construction Manager as set forth in the Contract Documents shall not be restricted, modified or extended without written consent of the Owner and the Construction Manager. ARTICLE 2 SCOPE OF CONSTRUCTION MANAGER S BASIC SERVICES 2.1 DEFINITION The Construction Manager s Basic Services consist of those services described in 2.2 and PRE-CONSTRUCTION PHASES: SCHEMATIC DESIGN, DESIGN DEVELOPMENT, CONSTRUCTION DOCUMENTS, BIDDING AND NEGOTIATION The Construction Manager shall review the program furnished by the Owner to ascertain the requirements of the Project and shall arrive at a mutual understanding of such requirements with the Owner The Construction Manager shall provide a preliminary evaluation of the Owner s program, schedule and construction budget requirements, each in terms of the other Based on early schematic designs and other design criteria prepared by the County Consultant and the Town Engineer, the Construction Manager shall prepare preliminary estimates of Construction Cost for program requirements using area, volume or similar conceptual estimating techniques. The Construction Manager shall provide cost evaluations of alternative materials and systems The Construction Manager shall expeditiously review design documents during their development and advise on proposed site use and improvements, selection of materials, building systems and equipment, and methods of Project delivery. The Construction Manager shall provide recommendations on relative feasibility of construction methods, availability of materials and labor, time requirements for procurement, installation and construction, and factors related to construction cost including, but not limited to, costs of alternative designs or materials, preliminary budgets, and possible economies The Construction Manager shall prepare and periodically update a Project Schedule based upon the initial Project Schedule in Attachment A, for the Town Engineer s review and the Owner s acceptance. The Construction Manager shall obtain the Town Engineer s approval for the portion of the Construction of Warwick Public Transit Garage 3

4 preliminary project schedule relating to the performance of the Town Engineer s services. In the Project Schedule, the Construction Manager shall coordinate and integrate the Construction Manager s services, the Town Engineer s services and the Owner s responsibilities with anticipated construction schedules, highlighting critical and long-lead-time items As the Contractor progresses with the preparation of the Schematic, Design Development and Construction Documents, the Construction Manager shall prepare and update, in accordance with or at other appropriate intervals agreed to by the Owner, Construction Manager and Town Engineer, estimates of Construction Cost of increasing detail and refinement. The estimated cost of each Contract shall be indicated with supporting detail. Such estimates shall be provided for the Town Engineer s review and the Owner s approval. The Construction Manager shall advise the Owner and the Town Engineer if it appears that the Construction Cost may exceed the latest approved Project budget and make recommendations for corrective action The Construction Manager shall consult with the Owner, the Town Engineer and the Contractor regarding the Construction Documents and make recommendations whenever design details adversely affect constructability, cost or schedules The Construction Manager shall schedule and arrange for temporary Project facilities and equipment, materials and services for common use of the Contractors. The Construction Manager shall verify that such arrangements and the Construction Manager s and Contractors' responsibilities with regard to common facilities, equipment materials and services are included in the proposed Contract Documents. Alternatively, the Town, in its sole discretion, may provide temporary Project facilities at its Town hall The Construction Manager shall provide recommendations and information to the Owner regarding the allocation of responsibilities for safety programs among the Contractors A Project Labor Agreement will be executed allowing Design-Build and in that instance there will be only one contract The Construction Manager shall prepare a Project Schedule providing for the components of the Work, including phasing of construction, times of commencement and completion required of each Contractor, ordering and delivery of products requiring long lead time, and the occupancy requirements of the Owner. The Construction Manager shall provide the current Project Schedule for each set of bidding documents The Construction Manager shall expedite and coordinate the ordering and delivery of materials requiring long lead time The Construction Manager shall assist the Owner in selecting, retaining and coordinating the professional services of surveyors, special consultants and testing laboratories required for the project The Construction Manager shall provide an analysis of the types and quantities of labor required for the Project and review the availability of appropriate categories of labor required for critical phases. The Construction Manager shall make recommendations for actions designed to minimize adverse effects of labor shortages. If requested by Owner, the Construction Manager, in consultation with Owner shall negotiate and prepare a Project Labor Agreement, to be approved by Owner. Construction of Warwick Public Transit Garage 4

5 The Construction Manager shall assist the Owner in obtaining information regarding applicable requirements for equal opportunity programs for inclusion in the Contract Documents Following the Owner s approval of the Construction Documents, the Construction Manager shall update and submit the latest estimate of Construction Cost and the Project Schedule for the Town Engineer s review and the Owner s approval The Construction Manager in cooperation with Owner shall develop bidders interest in the Project and establish bidding schedules. The Construction Manager, in cooperation with Owner and the Town Engineer, shall issue bidding documents to bidders and conduct prebid conferences with prospective bidders. The Construction Manager, in cooperation with Owner and Town Engineer, shall address questions from bidders with the issuance of addenda The Construction Manager, in cooperation with Owner, shall receive bids, prepare bid analyses and make recommendations to the Owner for the Owner s award of Contracts or rejection of bids The Construction Manager shall assist the Owner in preparing Construction Contracts and advise the Owner on the acceptability of Subcontractors and material suppliers proposed by Contractors The Construction Manager shall assist the Owner in obtaining building permits and special permits for permanent improvements, except for permits required to be obtained directly by various Contractors. The Construction Manager shall assist the Owner and Town Engineer in connection with the Owner s responsibility for filing documents required for the approvals of governmental authorities having jurisdiction over the Project. 2.3 CONSTRUCTION PHASE - ADMINISTRATION OF THE CONSTRUCTION CONTRACT The Construction Phase for each Project Phase will commence with the execution of the initial Construction Contract or purchase order and, together with the Construction Manager s obligation to provide Basic Services under the Agreement, will end 30 days after final payment to all Contractors for that Project Phase is due The Construction Manager shall provide administration of the Contracts for Construction in cooperation with the Town Engineer as set forth below and in the General Conditions incorporated as Attachment B to this Agreement The Construction Manager shall provide administrative, management and related services to coordinate scheduled activities and responsibilities of the Contractors with each other and with those of the Construction Manager, the Owner and the Town Engineer to endeavor to manage the Project in accordance with the latest approved estimate of Construction Cost, the Project Schedule and the Contract Documents The Construction Manager shall schedule and conduct Project Meetings at least one (1) time per week to discuss such matters as procedures, progress and scheduling. Project Meetings shall include representatives of the Construction Manager, Owner, Town Engineer, and any Contractors, Subcontractors or Sub-Subcontractors working on site or scheduled to be on-site within two weeks or Construction of Warwick Public Transit Garage 5

6 who have not yet received final payment for their completed portion of the Work. Participation in Project Meetings via telephone may be acceptable if there is no immediate need for a participant to observe or attend to any matter on-site. The Construction Manager shall prepare and promptly distribute minutes to the Owner, Town Engineer and Contractors. Contractors shall promptly distribute minutes to Subcontractors and Sub-Subcontractors. The Construction Manager shall promptly notify Owner of any required party s persistent failure to participate in Project Meetings Utilizing the Construction Schedules provided by the Contractors, the Construction Manager shall update the Project Schedule incorporating the activities of the Contractors on the Project, including activity sequences and duration, allocation of labor and materials, processing of Shop Drawings, Product Data and Samples, and delivery of products requiring long lead time and procurement. The Project Schedule shall include the Owner s occupancy requirements showing portions of the Project having occupancy priority. The Construction Manager shall update and reissue the Project Schedule as required to show current conditions. If an update indicates that the previously approved Project Schedule may not be met, the Construction Manager shall recommend corrective action to the Owner Consistent with the various bidding documents, and utilizing information from the Contractors, the Construction Manager shall coordinate the sequence of construction and assignment of space in areas where the Contractors are performing Work The Construction Manager shall endeavor to obtain satisfactory performance from each of the Contractors. The Construction Manager shall recommend courses of action to the Owner when requirements of a Contractor's contract are not being fulfilled The Construction Manager shall monitor the approved estimate of Construction Cost. The Construction Manager shall show actual costs for activities in progress and estimates for uncompleted tasks by way of comparison with such approved estimate The Construction Manager shall develop cash flow reports and forecasts for the Project and advise the Owner and Town Engineer as to variances between actual and budgeted or estimated costs The Construction Manager shall maintain accounting records on authorized Work pursuant to a schedule of values approved by Owner, additional Work performed on the basis of actual costs of labor and materials, and other Work requiring accounting records The Construction Manager shall develop and implement procedures for the review and processing of applications by Contractors for progress and final payments..1 Based on the Construction Manager s observations and evaluations of each Contractor s Application for Payment, the Construction Manager shall review and certify the amounts due the respective Contractors and shall prepare, for the Owner s review and certification, a Project Application for Payment based on the Contractors Certificates for Payment..2 The Construction Manager s Project Application for Payment or Project Certificate for Payment shall constitute a representation to the Owner, based on the Construction Manager s determinations at the site as provided in and on the data comprising the Contractors Applications for Payment, that, to the best of the Construction Construction of Warwick Public Transit Garage 6

7 Manager s knowledge, information and belief, the Work has progressed to the point indicated and the quality of the Work is in accordance with the Contract Documents. The foregoing representations are subject to an evaluation of the Work for conformance with the Contract Documents upon Substantial Completion, to results of subsequent tests and inspections, to minor deviations from the Contract Documents correctable prior to completion and to specific qualifications expressed by the Construction Manager. The issuance of a Project Application for Payment or Project Certificate for Payment shall further constitute a representation that the Contractor is entitled to payment in the amount certified..3 The Construction Manager may withhold certification pursuant to the applicable provisions of the General Conditions The Construction Manager shall review the safety programs developed by each of the Contractors for purposes of coordinating the safety programs with those of the other Contractors. The Construction Manager s responsibilities for coordination of safety programs shall not extend to direct control over or charge of the acts or omissions of the Contractors, Subcontractors, agents or employees of the Contractors or Subcontractors, or any other persons performing portions of the Work and not directly employed by the Construction Manager The Construction Manager shall determine in general that the Work of each Contractor is being performed in accordance with the requirements of the Contract Documents, endeavoring to guard the Owner against defects and deficiencies in the Work. As appropriate, the Construction Manager shall have authority, upon written authorization from the Owner, to require additional inspection or testing of the Work in accordance with the provisions of the Contract Documents, whether or not such Work is fabricated, installed or completed. The Construction Manager, in consultation with the Owner, may reject Work which does not conform to the requirements of the Contract Documents The Construction Manager shall be responsible for promptly notifying the Owner of the failure of the Contractors, Subcontractors, Sub-Subcontractors or any other persons performing any of the Work, to carry out the Work in accordance with the Contract Documents or the Project Schedule or to follow standard safety procedures, but only to the extent the Construction Manager becomes aware of such failure, or should when exercising professional due diligence The Construction Manager shall coordinate all Contractors' schedules and the sequence of construction in accordance with the Contract Documents and the latest approved Project Schedule With respect to each Contractor s own Work, the Construction Manager shall not have control over or charge of and shall not be responsible for construction means, methods, techniques, sequence or procedures, or for safety precautions and programs in connection with the Work of each of the Contractors, since these are solely the Contractor s responsibility under the Contract for Construction. The Construction Manager shall not be responsible for a Contractor s failure to carry out the Work in accordance with the respective Contract Documents, excepting the Construction Manager s negligence in failing to stop work that appears grossly not in accordance with the Contract Documents. The Construction Manager shall not be responsible for the services performed by the Town Engineer or the County Consultant on behalf of the Owner. The Construction Manager shall not have control over or charge of acts or omissions of the Contractors, Subcontractors, or their agents or employees, or any Construction of Warwick Public Transit Garage 7

8 other persons performing portions of the Work not directly employed by the Construction Manager. However all inadequacies noticed by Construction Manager shall be reported to Owner The Construction Manager shall transmit to the Town Engineer requests for interpretations of the meaning and intent of the Drawing and Specifications, and assist in the resolution of questions that may arise The Construction Manager shall review requests for changes, assist in negotiating Contractors proposals, submit recommendations to the Town Engineer and Owner, and, if they are accepted, prepare Change Orders and Construction Change Directives which incorporate the Contractor s modifications to the Documents and deliver approved Change Orders and Construction Change Directives to Contractors The Construction Manager shall assist the Town Engineer in the review, evaluation and documentation of Claims The Construction Manager shall receive certificates of insurance from the Contractors and forward them to the Owner The Construction Manager shall establish and implement procedures for expediting the processing and approval of Shop Drawings, Product Data, Samples and other submittals. The Construction Manager shall review all Shop Drawings, Product Data, Samples and other submittals from the Contractors. The Construction Manager shall coordinate submittals with information contained in related documents and transmit to the Town Engineer and Owner those which have been approved by the Construction Manager. The Construction Manager s actions shall be taken with such reasonable promptness as to cause no delay in the Work or in the activities of the Owner or Contractors The Construction Manager shall record the progress of the Project. The Construction Manager shall submit written progress reports to the Owner and the Town Engineer including information on each Contractor and each Contractor s Work, as well as the entire Project, showing percentages of completion. The Construction Manager shall keep a daily log containing a record of weather, each Contractor s Work on the site, number of workers, identification of equipment, Work accomplished, problems encountered, and other similar relevant data as the Owner may require The Construction Manager shall maintain at the Project site for the Owner one record copy of all Contracts, Drawings, Specifications, Addenda, Change Orders, and other Modifications, in good order and marked currently to record changes and selections made during construction, and in addition, approved Shop Drawings, Product Data, Samples and similar required submittals. The Construction Manager shall maintain records, in duplicate, of principal building layout lines, elevations of the bottom of footing, floor levels and key site elevations certified by a qualified surveyor or professional engineer. The Construction Manager shall make all such records available to the Town Engineer and upon completion of the Project shall deliver them to the Owner The Construction Manager shall arrange for the delivery, storage, protection and security of Owner-purchased materials, systems and equipment that are part of the Project until such items are incorporated into the Project. Construction of Warwick Public Transit Garage 8

9 With the Owner s maintenance personnel, the Construction Manager shall observe the Contractor s final testing and start-up of utilities, operational systems and equipment When the Construction Manager considers each Contractor s Work or a designated portion thereof Substantially Complete, the Construction Manager shall, jointly with the Contractor, prepare for a Punch List of incomplete or unsatisfactory items and a schedule for their completion. The Construction Manager shall conduct the inspections to determine whether the Work or designated portion thereof is Substantially Complete. The Construction Manager shall coordinate the correction and completion of the Work. Following the Town Engineer s issuance of a Certificate of Substantial Completion of the Work or a designated portion thereof, the Construction Manager shall evaluate the completion of the Work of the Contractors and make recommendations to the Town Engineer when Work is ready for final inspection. The Construction Manager shall assist the Town Engineer in conducting final inspections. The Construction Manager shall secure and transmit to the Town Engineer warranties releases or waivers, keys, manuals, record drawings maintenance stocks and any other items required by of the General Conditions for the Town Engineer s delivery to the Owner. The Construction Manager shall forward to the Town Engineer a Final Project Application for Payment upon compliance with the requirements of the Contract Documents Upon written approval of Owner, the Construction Manager shall schedule and arrange for all laboratory and environmental tests, inspections and reports required by Owner, law or the Contract Documents, including but not limited to: structural, mechanical, chemical, air and water pollution or hazardous materials tests. The costs of such tests, inspections and reports shall be at Owner s expense and shall be performed by an independent third party retained by the Construction Manager or the appropriate public authority. Notwithstanding the Construction Manager's duties under this or 3.23 of the General Conditions, to arrange for tests, inspections and approvals; the Owner reserves the right to contract directly with any entity for testing, inspections or approvals. ARTICLE 3 ADDITIONAL SERVICES 3.1 GENERAL The services described in Article 3 are not included in Basic Services and they shall be paid for by the Owner as provided in this Agreement, in addition to the compensation for Basic Services. The Additional Services described under shall only be provided if authorized or confirmed in writing by the Owner The following shall be considered Additional Services:.1 Providing services required because of significant changes in the Project including, but not limited to, changes in size, quality, complexity or the Owner s schedule..2 Providing consultation concerning replacement of Work damaged by fire or other cause during construction, and furnishing services required in connection with the replacement of such Work..3 Providing services made necessary by the termination or default of the Town Engineer, a Contractor, by major defects or deficiencies in the Work of a Contractor, or by failure of performance of either the Owner or Contractor under a Contract for Construction. Construction of Warwick Public Transit Garage 9

10 .4 Providing services in evaluating Post-Construction litigation claims submitted by a Contractor or others in connection with the work..5 Providing services in connection with a Post-Construction arbitration proceeding or legal proceeding except where the Construction Manager is a party thereto..6 Providing services relative to future facilities, systems and equipment not specified in this Agreement..7 Providing any other services not otherwise included in this Agreement. ARTICLE 4 OWNER S RESPONSIBILTIES 4.1 The Owner shall provide full information regarding requirements for the Project, including a program which shall set forth the Owner s objectives, schedule, constraints and criteria, including space requirements and relationships, flexibility, expandability, special equipment, systems, and site requirements. 4.2 The Owner shall establish and update an overall budget for the Project based on consultation with the Construction Manager and Town Engineer, which shall include the Construction Cost, the Owner s other costs and reasonable contingencies related to all of these costs. 4.3 The Owner shall designate a representative authorized to act on the Owner s behalf with respect to the Project. The Owner, or such authorized representative, shall render decisions in a timely manner pertaining to documents submitted by the Construction Manager in order to avoid unreasonable delay in the orderly and sequential progress of the Construction Manager s services. 4.4 The Construction Manager shall not be responsible for actions taken by the Town Engineer or the County Consultant. 4.5 The Owner shall furnish all legal, accounting and insurance counseling services as may be required by the Owner for the Owner at any time for the Project, including auditing services the Owner may require to verify the Contractors Applications for Payment or to ascertain how or for what purposes the Contractors have used the money paid by or on behalf of the Owner. 4.6 The Owner shall furnish the Construction Manager with a sufficient quantity of Contract Documents. One copy of Instruments of Services requiring review by the Construction Manager shall be provided to Construction Manager. Revised Contract Documents, or portions thereof, shall be provided as necessary under the same limitations. Such necessary additional copies shall be provided by the Town Engineer or Contractor, as applicable, at the Owner s expense. 4.7 The services, information and reports required by 4.4 through 4.6 shall be furnished at the Owner s expense, and the Construction Manager shall be entitled to rely upon the accuracy and completeness thereof. However, Owner shall not be liable in law or in equity for Construction Manager s reliance on any services, information, surveys or reports prepared by Construction Manager or Construction Manager s consultants and provided by Construction Manager to Owner for this Project under separate contract or agreement. Construction of Warwick Public Transit Garage 10

11 4.8 Prompt written notice shall be given by the Owner to the Construction Manager and the Town Engineer if the Owner becomes aware of any fault or defect in the Project or nonconformance with the Contract Documents. 4.9 The Owner reserves the right to perform construction and operations related to the Project with the Owner s own forces, and to award contracts in connection with the Project which are not part of the Construction Manager s responsibilities under this Agreement. The Construction Manager shall notify the Owner if any such independent action will interfere with the Construction Manager s ability to perform the Construction Manager s responsibilities under this Agreement Information or services under the Owner s control shall be furnished by the Owner with reasonable promptness to avoid delay in the orderly progress of the Construction Manager s services and the progress of the Work. ARTICLE 5 CONSTRUCTION COST 5.1 DEFINITION The Construction Cost (labor, materials, contractor s profit, and contingency) of the Project Phases specified in this Agreement should stay within a budget of Number Dollars ($000.00) The Construction Cost shall be the total cost or estimated cost to the Owner of all elements of the Project and approved by Owner within the budget set forth in The Construction Cost shall include the cost at current lawful market rates of labor and materials furnished by the Owner and equipment designed, specified, selected or specially provided for, plus a reasonable allowance for the Contractor s labor, materials, overhead and profit. In addition, a reasonable allowance for contingencies shall be included for market conditions at the time of bidding and for changes in the Work during construction Construction Cost does not include the compensation of the Town Engineer, the Town Engineer s consultants, the County Consultant, the Construction Manager and the Construction Manager s consultants, the costs of the land, rights-of-way, financing, furniture, technology, permitting or other costs which are the responsibility of the Owner as provided in Article RESPONSIBILITY FOR CONSTRUCTION COST Evaluations of the Owner s Project budget, preliminary estimates of Construction Cost and detailed estimates of Construction Cost prepared by the Construction Manager represent the Construction Manager s best judgment as a person or entity familiar with the construction industry. It is recognized, however, that neither the Construction Manager nor the Owner has control over the cost of labor, materials or equipment, over Contractor s methods of determining bid prices, or over competitive bidding, market or negotiating conditions. Accordingly, the Construction Manager cannot and does not warrant or represent that bids or negotiated prices will not vary from the Project budget proposed, established or approved by the Owner, or from any cost estimate or evaluation prepared by the Construction Manager. Construction of Warwick Public Transit Garage 11

12 5.2.2 If the fixed limit of Construction Cost set forth in is exceeded by the sum of the lowest bona fide bid or negotiated proposal, the Owner shall, at the Owner s sole discretion:.1 give written approval of an increase in such fixed limit:.2 authorize rebidding or renegotiating of the Project within a reasonable time;.3 if the Project is abandoned, terminate this Agreement in accordance with Article 8, or.4 cooperate in revising the Project scope and quality as required to reduce the Construction Cost If the Owner chooses to proceed under , the Construction Manager and the Town Engineer, without additional charge, shall cooperate as necessary to bring the Construction Cost within the fixed limit if established as a condition of this Agreement. The Construction Manager shall be entitled to no additional fee for this service, however, Reimbursable Expenses as set forth in 11.2, if incurred shall be compensated. ARTICLE 6 CONSTRUCTION SUPPORT ACTIVITIES 6.1 Construction support activities, if provided by the Construction Manager, shall be governed by separate contractual agreements. 6.2 Reimbursable Expenses listed in Schedule B for construction support activities may be subject to trade discounts, rebates, refunds and amounts received from sales of surplus materials and equipment which shall accrue to the Owner, and the Construction Manager shall make provisions so that they can be secured. ARTICLE 7 OWNERHSHIP AND USE OF THE TOWN ENGINEER, COUNTY CONSULTANT, AND CONTRACTOR S DRAWINGS, SPECIFICATIONS AND OTHER DOCUMENTS 7.1 The Drawings, Specifications and other documents prepared by the Town Engineer, the County Consultant, and the Contractor, as the design-build contractor, are Instruments of Service through which the Work to be executed by the Contractors is described. The Construction Manager may retain one record set. The Construction Manager shall not own or claim a copyright in the Instruments of Service prepared by the Town Engineer, the County Consultant, and the Contractor. All copies of them, except the one record set the Construction Manager, the Town Engineer, and each Contractor is entitled to retain, shall be returned or suitably accounted for to the Owner, on request, upon completion of the Project. The Instruments of Service prepared by the Town Engineer, the County Consultant, and the Contractor, and copies thereof furnished to the Construction Manager, are for use solely with respect to this Project. They are not to be used by the Construction Manager on other projects of for additions to this Project outside the scope of the Work without the specific written consent of the Owner and the Town Engineer, the County Consultant, and the Contractor, as applicable. The Construction Manager is granted a limited license to use and reproduce applicable portions of the Instruments of Service prepared by the Town Engineer, the County Consultant, and the Contractor appropriate to and for use in the performance of the Construction Manager s services under this Agreement. Submittal or distribution to meet official regulatory requirements or for other purposes in connection with this Project is not be construed as publication in derogation of copyright or other reserved rights as applicable. Construction of Warwick Public Transit Garage 12

13 ARTICLE 8 TERMINATION, SUSPENSION OR ABANDONMENT 8.1 This Agreement may be terminated by the Owner upon not less than seven (7) days written notice should the Construction Manager fail substantially to perform in accordance with the terms of this Agreement. 8.2 This Agreement may be terminated by the Owner upon not less than seven (7) days written notice to the Construction Manager in the event that the Project is permanently abandoned. 8.3 In the event of termination not the fault of the Construction Manager, the Construction Manager shall be compensated for services performed prior to termination, together with Reimbursable Expenses then due and all Termination Expenses as defined in Any time during the effectiveness of this Agreement, the Owner shall have the right, upon thirty (30) days written notice to the Construction Manager, to terminate this Agreement in whole or in part or to suspend or to abandon all or any part of the Project. In the event of such termination, suspension or abandonment, the Owner shall pay the Construction Manager, pursuant to 12.4, after the Construction Manager submits a bill therefore, all amounts due in accordance with this Agreement through the date of termination, suspension or abandonment, provided the Construction Manager shall have submitted to the Owner all deliverables pertaining to the portions of the Project which are terminated, suspended or abandoned and provided further, that Construction Manager shall have performed all its obligations under this Agreement to the date of termination, suspension or abandonment. 8.5 If the Project is suspended for more than six (6) months, the Construction Manager s compensation shall be equitably adjusted. 8.6 If payment for undisputed services rendered or reimbursable expenses incurred is not received within sixty (60) days of the receipt of such invoice, the Construction Manager has the right to stop work, if Owner fails to cure such delinquency after the Construction Manager has provided written notice to Owner, advising Owner that it has fifteen (15) days from the receipt of such notice to cure. 8.7 Termination, suspension or abandonment of the Project, in whole or in part, shall not give rise to any cause of action against the Owner for damages or extra remuneration beyond that described herein. 8.8 Termination Expenses are in addition to compensation for Basic and Additional Services, and include expenses which are directly attributable to termination for which the Construction Manager is not otherwise compensated. Termination Expenses shall be computed as a percentage of the total compensation for Basic Services and Additional Services earned to the time of termination, as follows: Twenty (20) percent of the total compensation for Basic and Additional Services earned to date for that Project Phase if termination occurs before or during the Schematic Design Phase of the applicable Project Phase; or Ten (10) percent of the total compensation for Basic and Additional Services earned to date for that Project Phase if termination occurs during the Design Development Phase of the applicable Project Phase; or Construction of Warwick Public Transit Garage 13

14 8.8.3 Five (5) percent of the total compensation for Basic and Additional Services earned to date if termination occurs during any subsequent Project Phase. ARTICLE 9 MISCELLANEOUS PROVISIONS 9.1 Construction Manager shall render all services under this Agreement in accordance with applicable provisions of all federal, state and local laws, rules and regulations as are in effect at the times such services are rendered. Any and all disputes involving this Agreement, including the breach or alleged breach thereof, may not be submitted to arbitration unless specifically agreed thereto in writing by the Supervisor of the Town of Warwick on behalf of Owner, but must instead only be heard in Supreme Court of the State of New York, with venue in Orange County, or if appropriate, in the Federal District Court with venue in the Southern District of New York, White Plains Division. 9.2 Terms in this Agreement shall have the same meaning as those in the General Conditions incorporated in Attachment B. 9.3 For causes of action between the parties to this Agreement pertaining to acts or failures to act, the applicable statutes of limitations shall commence to run as per New York Civil Practice Laws and Rules. 9.4 To the extent damages are covered by property insurance during construction, the Owner and Construction Manager waive all rights against each other and against the Contractors, Town Engineer, the County Consultant, consultants, agents, employees, persons or entities awarded separate contracts administered under the Owner s own forces for damages, except such rights as they may have to the proceed of such insurance. Whether or not damages are covered within the meaning of this paragraph shall be based upon a final determination by the applicable insurance carrier, or upon the exhaustion of the remedies from such determination that are available to and pursued by the insured. Until such final determination, the parties preserve and do not waive any rights against each other for such damages, and may pursue any remedies available to them in order to preserve and protect such rights, including, but not limited to, filing claims, notices, legal actions or proceedings. 9.5 The Owner and Construction Manager, respectively, bind themselves, their partners, successors, assigns and legal representatives to the other party to this Agreement and to the partners, successors, assigns and legal representatives of such other party with respect to all covenants of this Agreement. Neither Owner nor Construction Manager shall assign this Agreement without the written consent of the other. 9.6 This Agreement represents the entire and integrated agreement between the Owner and Construction Manager and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended only by written instrument signed by both Owner and Construction Manager. 9.7 Nothing contained in this Agreement shall create a contractual relationship with or a cause of action in favor of a third party against either the Owner or Construction Manager. 9.8 Unless otherwise provided in this Agreement, the Construction Manager and the Construction Manager s consultants shall have no responsibility for the discovery, presence, handling removal or disposal of or exposure of persons to hazardous materials in any form at the Project site, including but Construction of Warwick Public Transit Garage 14

15 not limited to asbestos, asbestos products, polychlorinated biphenyl (PCB) or other toxic substances. This provision shall not limit Construction Manager s or Construction Manager s consultants liability for mishandling of any such hazardous materials by the Construction Manager or Construction Manager s Consultants or their directors, officers, agents, employees, consultants or other representatives. 9.9 Independent Contractor Status: In performing the services and/or supplying goods and incurring expenses under this Agreement, Construction Manager shall operate as, and have the status of, an independent contractor and shall not act as agent, or be an agent, of the Owner. As an independent contractor, Construction Manager shall be solely responsible for determining the means and methods of performing the services and/or supplying the goods and shall have complete charge and responsibility for Construction Manager s personnel engaged in the performance of the same. In accordance with such status as independent contractor, Construction Manager covenants and agrees that neither it nor its employees or agents will hold themselves out as, nor claim to be officers or employees of the Owner, or of any department, agency or unit thereof by reason hereof, and that they will not, by reason hereof, make any claim, demand or application to or for any right or privilege applicable to an officer or employee of the Owner including, but not limited to, Worker s Compensation coverage, health coverage, Unemployment Insurance Benefits, Social Security coverage or employee retirement membership or credit Non-assignment; Inability to Subcontract: Construction Manager shall not assign any of its rights, interest or obligations under this Agreement, or subcontract any of the services to be performed by it under this Agreement, without the prior express written consent of the Owner. Any such subcontract, assignment, transfer, conveyance, or other disposition without such prior consent shall be void and any Services provided thereunder will not be compensated. Any subcontract or assignment properly consented to by the Owner shall be subject to all of the terms and conditions of this Agreement. Failure of Construction Manager to obtain any required consent to any assignment, shall be grounds for termination for cause, at the option of the Owner and if so terminated, the Owner shall thereupon be relieved and discharged from any further liability and obligation to Construction Manager, its assignees or transferees, and all monies that may become due under this Agreement shall be forfeited to the Owner except so much thereof as may be necessary to pay Construction Manager s employees for past service. The provisions of this clause shall not hinder, prevent, or affect any assignment by Construction Manager for the benefit of its creditors made pursuant to the laws of the State of New York. This agreement may be assigned by the Owner to any corporation, agency, municipality or instrumentality having authority to accept such assignment Order of Precedence: Any inconsistencies in the Contract Documents shall be resolved by giving precedence in the following order: Federal Contract Clauses (Attachment D) Federal Transit Administration Certifications and Assurances (Attachment E) New York State Contract Clauses (Attachment F) This Agreement Project Schedule (Attachment A) Construction of Warwick Public Transit Garage 15

16 The General Conditions (Attachment B) Direct Personnel Rates (Schedule A) Fee Summary (Attachment C) Reimbursable Expenses (Schedule B) ARTICLE 10 INSURANCE 10.1 INSURANCE Insurance: For all of the services set forth herein and as hereinafter amended, Construction Manager shall maintain or cause to be maintained, in full force and effect during the term of this Agreement, at its expense, Worker s Compensation insurance, liability insurance covering personal injury and property damage, and other insurance with stated minimum coverages as listed below. Such policies are to be in the broadest form available on usual commercial terms and shall be written by insurers with an A.M. Best rating of A- or better who have been fully informed as to the nature of the services to be performed. Except for Worker s Compensation and professional liability, the Owner shall be an additional insured on all such policies with the understanding that any obligations imposed upon the insured (including, without limitation, the liability to pay premiums) shall be the sole obligation of Construction Manager and not those of the Owner. Notwithstanding anything to the contrary in this Agreement, Construction Manager irrevocably waives all claims against the Owner for all losses, damages, claims or expenses resulting from risks which have actually been insured. The provisions of insurance by Construction Manager shall not in any way limit Construction Manager s liability under this Agreement Types and Limits of Coverage: Type of Coverage Worker s Compensation Disability Employer s liability or similar insurance Business Automobile liability with Bodily Injury and Property damage Comprehensive General Liability including Broad Form Contractual Liability, Bodily Injury, Property Damage, Products/Completed Operations and Fire Legal Liability Excess Liability Limit of Coverage Statutory Statutory $1,000,000 each occurrence $1,000,000 aggregate $1,000,000 each occurrence $1,000,000 aggregate $1,000,000 each occurrence $4,000,000 aggregate Construction of Warwick Public Transit Garage 16

17 Owners & Contractors Protective Liability Builders Risk Insurance All Risk Policy Environmental Impairment Liability $4,000,000 each occurrence $2,000,000 aggregate $1,000,000 each occurrence To be provided by Owner. In an amount not less than $1,000,000 for bodily injury, property damage and environmental remediation Policies: Construction Manager shall attach to this Agreement, certificates of insurance evidencing Construction Manager s compliance with these requirements. Each policy of insurance shall contain clauses to the effect that (i) such insurance shall be primary without right of contribution of any other insurance carried by or on behalf of the Owner with respect to its interests, (ii) it shall not be cancelled, including, without limitation, for non-payment of premium, or materially amended, without fifteen (15) days prior written notice to the Owner, directed to the Town Supervisor on behalf of the Owner and the Owner shall have the option to pay any necessary premiums to keep such insurance in effect and charge the cost back to Construction Manager Claims Made Policies: To the extent it is commercially available, each policy of insurance shall be provided on an occurrence basis. If any insurance is not commercially available on an occurrence basis, it shall be provided on a claims made basis, and all such claims made policies shall provide that:.1 Policy retroactive dates coincide with or precede Construction Manager s start of the performance of this Agreement (including subsequent policies purchased as renewals or replacements);.2 Construction Manager will maintain similar insurance for at least six (6) years following final acceptance of the services;.3 If the insurance is terminated for any reason, Construction Manager agrees to purchase a two (2) or three (3) year extended reporting provision, at the Owner's discretion, to report claims arising from the services performed or goods provided for the Owner; and.4 Immediate notice shall be given to the Owner through the Commissioner of Public Works and the Owner s Risk Management Division of circumstances or incidents that might give rise to future claims with respect to the services performed under this Agreement. ARTICLE 11 PAYMENTS TO THE CONSTRUCTION MANAGER 11.1 CATEGORIES OF PAYMENTS Payments to the Construction Manager for either Basic Services or Additional Services shall be made for Direct Personnel Expenses, Reimbursable Expenses and Construction Management Fees, as applicable to each Project Phase. Construction of Warwick Public Transit Garage 17

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