USS 3066AB BK 2 LT 4B - ZCP 1/19/2018Kodiak Island Borough
Community Development Department
710 Mill Bay Rd. Rm 205
Kodiak AK 99615
Ph. (907) 486 - 9363 Fax (907) 486 - 9396
http://www.kodiakak.us
Zoning Compliance Permit
Print Form Submit by Email
24253
Permit No. BZ2018-037
The following information is to be supplied by the Applicant:
Property Owner / Applicant: Owner: The Salvation Army / Agent per contract: Mike Haffeman of Friend Contractors, LLC
Mailing Address:
Phone Number:
Other Contact email, etc.:
PO Box 101459, Anchorage, AK 99510/1950 Mill Bay Road, Kodiak, AK 99615
(907) 486-3908
jerrol@friendcontractors.com
Legal Description: Subdv: USS 3066AB
Block: 2 Lot: 4B
Street Address: 1867 Mission Road, Kodiak, AK 99615
Use & Size of Existing Structures:
Three commercial/institutional/residential structures (church/thrift store and combination retail -multi family residential build
Description of Proposed Action:
Remove and replace 5 doors, 17 windows, siding, and front deck on thrift store building at northeast portion of parcel. Proposed
action will not changed the building footprint of reduce the available off-street parking.
Site Plan to include: Lot boundaries and existing easements, existing buildings, proposed location of new construction, access points,
and vehicular parking areas.
Staff Compliance Review: Current Zoning: Business KIBC 17.90 PROP ID 24253
Lot Area: 1.36 acres Lot Width: Not Applicable Bld'g Height: 50'
Front Yard: 40' from ROW center Rear Yard: Not Applicable Side Yard: Not Applicable
Prk'g Plan Rvw? Not Applicable # of Req'd Spaces: 76
Staff Compliance Review Notes and Specific Plat / Subdivision Requirements:
Subd Case No. Plat No. Bld'g Permit No. TBD by Bldg Dept
Does the project involve NO
an EPA defined facility?
*Commercial buildings, installations (military bases),
institutions (schools, hospitals) and residences with
more than four (4) dwelling units.
Driveway
Permit?
Septic Plan
Approval:
Fire
Marshall:
N/A
N/A
TBD by Bldg Dept
Proof of EPA notification provided (if required)? NO
*Required for all demolitions, for renovations disturbing at least 160 square
feet, 260 linear feet or 35 cubic feet of Regulated Asbestos Containing Material (RACM), and
for renovations that remove a load -supporting structural member.
No permit will be issued for such projects without proof of EPA notification
Applicant Certification: I hereby certify thatl will comply with the provisions of the Kodiak Island Borough Code and that I
have the authority to certify this as the property owner, or as a representative of the property owner. 1 agree to have identifiable
corner markers in place for verification of building setback (yard) requirements.
Attachments? Other
Date: Jan 9, 2018
List Other: C6ontract authorizing Friend Contractors, LLC to perform work
Signature: Mike taffeZn:ofFriend Contractors, LLC
This permit is only for the proposed project as described by the applicant. If there are any changes to the
proposed project, including its intended use, prior to or during its siting, construction, or operation, contact
this office immediately to determine if further review and approval of the revised project is necessary.
THIS FORM DOES NOT AUTHORIZE CONSTRUCTION WHEN A BUILDING PERMIT IS REQUIRED.
** EXPIRATION. Any zoning compliance permit issued is subject to the same expiration, suspension, and revocation provisions as a
building permit issued for the same construction permit.**
CDD Staff Certification
Date: Jan 9, 2018 CDD Staff: Jack Maker
Payment Verification Zoning Compliance Permit Fee Paidble in
Not Applicable ❑ $0.00
Less than 1.75 acres:
1.76 to 5.00 acres:
5.01 to 40.00 acres:
40.01 acres or more:
❑X $30.00)
❑ $60.00
❑ $90.00
❑ $120.00
Office Room # 104 - Main floor of Borough Building
After -the -Fact 2X the published amount
❑ $0.00
❑ $60.00
❑ $120.00
❑ $180.00 ca 166,1-ir
❑ $240.tI
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JAM 0 9 ?PIP
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PAYMENT DATE
01/09/2018
COLLECTION STATION
CASHIER
RECEIVED FROM
FRIEND CONTRACTORS,
LLC
DESCRIPTION
THE SALVATION ARMY 1867 MISSION RD
Zoning
Kodiak Island Borough
710 Mill Bay Rd.
Kodiak, AK 99615
Zoning Compliance Permit
BZ 2018 037
Payments: Type Detail Amount
Check 16595 $30.00
Customer Copy
Total Amount:
BATCH NO.
2018-00000346
RECEIPT NO.
2018-00000701
CASHIER
Teresa Medina
$30.00
Printed hv- Teresa Medina Pane 1 of 1 01/n9/2n1R U-52.44 AM
Construction Contract
THIS AGREEMENT, made and entered this date by and between The Salvation Army, a
California non-profit corporation, hereinafter called OWNER, and Friend Contractors, LLC
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whose address is 1950 MITI Bay Rd, Kodiak, AK hereinafter called CONTRACTOR,
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WITNESSETH, that the Owner and Contractor agree as follows:
ARTICLE I. GENERAL. PROVISIONS. This Contract includes and incorporates by
reference The Salvation Army Contractor Terms and Conditions.
ARTICLE II. DESCRIPTION OF WORK The Contractor shall perform all the
work, labor, services, materials, equipment, tools, scaffolds, appliances, and insurance required
for the prompt and efficient execution of the work described herein as set forth in Exhibit A, (the
"Work") and to perform the work necessary to complete said Work according to the plans and
specifications as finalized and attached hereto with respect to the premises located at
1855 Mission Rd. (the "Project").
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ARTICLE 11I. CONTRACT DOCUMENTS. The plans, specifications, and drawings
pertaining to the Project are referred to herein as the Contract Documents, The Contractor
represents and agrees that it has carefully examined and understands this Agreement, has
investigated the nature, locality, and site of the work and the conditions and difficulties under
which it is to be performed, and that it enters into this Agreement on the basis of its own
examination, investigation and evaluation of all such matters.
ARTICLE IV. TIME OF COMPLETION. Time is the essence of this Contract.
Contractor shall commence the work on or before 01-02-2018 and shall complete the
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several portions and the whole Work on or before 02-09-2018
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No provisions for extension of time shall be made without the express written consent of the
Owner. Upon Owner's request, Contractor agrees to provide, as a part of the contract documents,
a schedule to be attached to this contract, which shall indicate the beginning and various stages of
the work to be performed and the completion date.
ARTICLE V. PRICE. The sum to be paid by the Owner for the satisfactory
performance and completion of the work and all the duties, obligations, and responsibilities of the
Contractor under this Agreement is $147,182.98 The price includes all Federal, State,
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County, Municipal and other taxes imposed by law.
ARTICLE VI. ASSIGNMENT. Neither this Agreement nor any monies due or to
become due hereunder shall be assignable without the prior written consent of the Owner.
ARTICLE VII. ENTIRE AGREEMENT. This Agreement, including the exhibits
attached hereto, constitutes the entire agreement between the parties hereto. No oral
representations or other agreements have been made by the Owner except as stated in this
Agreement. This Agreement may not be changed in any way except as herein provided, and no
term or provision hereof may be waived by the Owner except in writing signed by its duly
authorized officer or agent.
CONTRACTOR REPRESENTS THAT IT IS PROPERLY LICENSED BY THE
CONTRACTORS STATE LICENSE BOARD OR AS OTHERWISE REQUIRED BY
LAW.
IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands this
J' day of;201_2>.
OWNER:
THE SA TION Y
By:
CONTRACTOR:
By:
Mike Haffeman
Name, Title: Estimator
License No. CONG26084
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Friend Contractor LLC
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FRIEND CONTRACTORS, LLC
PROPOSAL FOR SERVICES
For Salvation Army Thrift Store, 1855 Mission Road, Kodiak, AK
OVERVIEW
The Salvation Army Thrift Store building is in need of exterior and structural improvements.
Friend Contractors, LLC has been asked to assess and recommend a strategy that will Improve
the safety and structural integrity of the building. Friend Contractors will provide labor for
repairing structural damage and installing new siding, windows, and doors.
The Objective
To improve the safety, efficiency, and weather resistance of the existing building.
The Solution
• Remove and replace back wall, upper deck, stairs and awning
• Remove damaged insulation and Install new insulation where necessary
• Reconstruct walls where necessary
• Install windows and siding in congruence with local building codes
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OUR PROPOSAL
Friend Contractors, LLC estimates the labor, equipment and materials to complete the scope of work outlined as
stated below. All work will be conducted in a manner that meets all pertinent and current Kodiak Island Borough
building codes. Work will be on the building located at 1855 Mission Road, Kodiak, Alaska
While surveying the property under different weather conditions, related concerns have arisen that should be
addressed during this project The existing siding has been found to swell and contract during weather changes
causing funneling of water in certain areas. It is expected that extensive damage to the underlying framing will be
discovered beyond what is known
The building is comprised of several additions that are incorporated by means unknown. The back wall of the
building is open and exposed to the elements and will likely need a complete rebuild. Additionally, it is possible that
problems found in one area may effectually transfer to other areas, Increasing the cost of time and materials.
Execution Strategy
Our execution strategy incorporates proven methodologies, extremely qualified personnel, and a highly responsive
approach to managing deliverables Following is a description of our project methods, including how the project will
be developed, a proposed timeline of events, and reasons for why we suggest developing the project as described.
Friend Contractors Strategy:
• Permitting
• Exterior Demolition
o Removal of old deck, stairs and awning.
o Removal of old siding and damaged Insulation.
o Removal of 17 windows and 5 doors
o Remove garage door
o Remove rotted back wall and rafters
• Hauling and Dump Fees
Rebuild back wall and rafters
Doors and Windows
o Install 17 windows and 5 doors
o Trim windows
• Siding
o
Install weather barrier
o
Install exterior trim
o
Frame garage door opening
o
Install Siding
o
' Rebuild double doors
• Front
Deck
o
Install deck
o
Install stairs
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Install landing
o
Install windbreak
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Project Deliverables
Following is a complete list of all project deliverables:
Deliverable
Description
Permitting
Demolition
Obtain required building permit
Remove old materiel and prepare for new materials
Rebuild back wall
Prepare rear addition for roofing
New doors and windows
17 windows Excluding 3 existing windows on east side
Install siding
Reside entire building
New deck, stairs, and awning
Design and engineering required to meet current building codes
Timeline for Execution
Key project dates are outlined below. Dates are best -guess estimates and are subject to change due to weather
delays, materials or unforeseen delays.
Description
Start Date
End Date
Duration
Project Start
Demolition
1-2-2018
2-2-2018
1-12-2018
38 days
10 days
1-2-2018
Windows and doors installed
1-8-2018
1-19-2018
10 days
Rebuild back wall
Deck, stairs and awning installed
1-8-2018
1-19-2018
2-2-2018
10 days
10 days
1-19.2018
Siding installed
1-22-2018
2-09-2018
10 days
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CUSTOMER RESPONSIBILITY
Contractor Access
The apartment located on the second floor of the property Is vacant and should remain so until all work is complete
Workmen will need access to all parts of the facility and will provide adequate notice to business or services. There
may be occasional interruption of business or access to Thrift Store, All efforts will be made to limit the impact of
construction on daily business.
Supplied Material
The following materials are to be owner supplied by the Salvation Army for this project and in order to meet project
milestones, this material must be supplied on schedule The due dates included in the following table represent our
best guess based on current proposed project dates,
Materials to be supplied by Salvation Army Duo Data'
Siding and trim
Windows and doors
Roofing
1-2-2018
1-2-2D18
1-2-2018
We cannot be responsible for cost ovemins caused by ckwfa Mire to d0varmatamis by agreed-upon due dater
EXPECTED RESULTS
We expect our proposed solution to Salvation Army's requirements to provide the following results;
Financial Benefits
Improved heating efficiency
- Improved building longevity
- Employee and customer safety
Long lasting materials and workmanship
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Friend Contractors LLC
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Friend Contractors values the role of The Salvation Anny in the Kodiak Community. We pledge to provide the
highest quality workmanship to maximize the lifespan of the materials we use. This estimate includes every
eventuality we can forecast and any cost savings that we achieve will be passed on to The Salvation Army.
See attached Schedule of Values.
Billable Labor Charges
(C=Carpenter @$85/hr. L=Laborer@$581hr)
CCL $228.00
LL
$116.00
CLL
$201,00
CCLL
$286.00
CL
$143.00
EXCLUSIONS
The following possible costs will not be covered by this proposal and will be the responsible of the customer.
• Rot Repair
• Additional engineering fees above $1000 allocation
Electrician fees
• Plumbing fees
• Discoverables
QUALIFICATIONS
Friend Contractors, LLC is continually proven to be an industry leader for high quality product and guaranteed service
in the following ways:
• Alaska Licensed Residential Contractor Endorsement
• Alaska Licensed General Contractor Regulation of Construction Contractors and Home Inspectors
• Alaska Certified Energy Rater
US SBA 8(a) Certified
Alaska DBE (Disadvantaged Business Enterprise) Certified
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AUTHORIZATION
Estimate good for 30 days from delivery. We require a 50% deposit to order materials and will Invoice the balance
upon completion of the Job.
et------r'—
Mike Heffernan
Estimator
Friend Contractors, LLC
An Alaskan Native — Woman Owned — Small Business
Date
I certify that I am an authorized signer on behalf of
the Salvation Army.
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The Salvation Army
Contractor Terms and Conditions
I. Time is the essence of this Agreement.
2. GENERAL PROVISIONS. The Contractor agrees that with respect to all work performed under the
Contract, the following shall apply:
a. The Salvation Army (hereinafter "Owner" or "The Salvation Army") is represented by
, the Facility Administrator for this project (hereinafter
New
"Facility Administrator"). The Facility Administrator is the only person with actual or
apparent authority to act on behalf of the Owner for this project.
b. All work will be coordinated with the Facility Administrator to prevent disruption of
services to the extent possible.
c. Contractor and all its employees will comply with the Owner's non-smoking policy.
d. Permission for special parking of Contractor's vehicles must be obtained from the
Facility Administrator; vehicles may not be parked in or around the premises without
special permission.
e. The Facility Administrator shall be notified in advance of any interruption of utilities or
other operating systems. Such notification shall be made 72 hours in advance whenever
possible.
f. Neither Contractor nor its employees shall use loud or abusive language. Contractor and
its employees shall be courteous to residents, invitees, and the Owner's staff.
g. Any penetration of smoke or fire walls shall be repaired and sealed with fire caulk before
final payment is made to Contractor.
h. Contractor shall make daily activity reports to the Facility Administrator.
i, Contractor shall provide copies of its contractor's license and its insurance policy as
required under this contract prior to commencement of work.
j. In any construction zone, all exits shall be kept unobstructed and useable, the
construction area shall be restricted from the rest of the building, and an alternate access
route shall be provided. No work shall be performed from on
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k. At the completion of the construction project, the Contractor shall provide as -built
drawings for the work, shall provide service and repair manuals for any and all
equipment, and shall provide all written warranties on equipment and building
components installed, which Owner has not already obtained. These final documents are
to be provided to the Facility Administrator. The contract price allows $500.00 for any
engineeringreQtited for this ottroose. If additional work Is required beyond this, a
chance order will bg required.
3. On or before the of each month, the Contractor shall submit to the Owner a
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written application for payment. Contractor shall submit such documentation as the Owner may
require in addition to and as part of the application for payment, including but not limited to a
conditional lien and conditional lien releases from all subcontractors, vendors, and materialmen.
Contractor shall submit the application for final payment on this contract within thirty (30) days after
the notice of completion has been filed by the Owner and acceptance of the work by the Owner,
provided first that (1) the Contractor shall have furnished evidence satisfactory to the Owner that
there are no claims, obligations, or liens outstanding for or in connection with the work; (2)
Contractor shall have famished a full lien release conditioned upon final payment and full lien
p.1 of 6
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releases from all subcontractors, vendors, and materialmen, conditioned only upon final payment; (3)
the Contractor shall have executed and delivered in a form satisfactory to the owner a General
Release running to and in favor of the Owner; and (4) the Contractor shall have completed and
submitted all documents required by the Owner, including but not limited to any and all warranties,
whether from itself or from manufacturers and vendors, and as -built drawings.
If the work has been performed in accordance with the Contract, the Owner shall make final payment
within 30 days of its receipt of Contractor's application for final payment. In the event Contractor
fails to submit its application within 60 days after the Owner has filed the notice of final completion,
Contractor shall waive any and all rights to final payment and Contractor shall be deemed to have
been paid in full for the Work under this Contract.
It is agreed that acceptance of final payment by Contractor hereunder shall release Owner from any
suits, claims, liability or damages arising out of this agreement and shall constitute a waiver of any
and all of Contractor's rights.
No payment (final or otherwise) made under or in connection with this agreement shall be conclusive
evidence of the performance of the work or of this Agreement, in whole or in part, and no such
payment shall be construed to be an acceptance of defective, faulty or improper work or materials nor
shall it release the Contractor from any of its obligations under this Agreement; nor shall entrance and
use by the Owner constitute acceptance of the work or any part thereof.
4. Contractor is an independent contractor and is responsible for the means and methods of carrying out
its work under this Contract. Contractor shall be solely responsible at its sole expense for the
compliance with all laws, ordinances, rules, regulations and orders of public authorities applicable to
the performance of the Work of this Contract, including but not limited to those pertaining to safety.
Contractor shall give all notices and secure and pay for all permits and governmental fees, licenses
and inspections necessary for proper execution and completion of Contractor's Work. Without
limiting the foregoing, Contractor shall comply with all Federal, State and local tax laws, social
security acts, unemployment compensation acts and Workers Compensation acts and all health, safety
and labor acts and regulations insofar as applicable to the performance of this Contract.
The Contractor shall take reasonable precautions for safety of, and shall provide reasonable protection
to prevent damage, injury or loss to:
a. employees other persons who may be affected thereby;
b. the Work and materials and equipment to be incorporated therein, whether in storage on
or off the site, under care, custody or control of the Contractor or the Contractor's
Subcontractors or Sub -subcontractors;
c. other property at the site or adjacent thereto, such as trees, shrubs, lawns, walks,
pavements, roadways, structures and utilities not designated for removal, relocation or
replacement in the course of construction; And
d. Employees of Owner, residents, guests, or any other third parties on or in the vicinity of
the premises.
6. In the event Contractor encounters on the site material redsonably believed to be asbestos, lead,
polychlorinated biphenyl (PCB) or any other hazardous or toxic substances or materials which has not
been rendered harmless, Contractor shall immediately stop work in the area affected and report the
condition to the Facility Administrator in writing. The Work in the affected area shall resume in the
absence of asbestos, lead, PCB or any other hazardous or toxic substances or materials, or when it has
been rendered harmless, by written agreement of Owner and Contractor. The Contractor shall use the
least hazardous or toxic materials available in performing the work required, and shall not leave any
p.2 of 6
Last updated 0312014, v 2 1
unused hazardous materials behind upon completion of work. In the event of any disposal or an�
release of any hazardous or toxic substances by the Contractor or its employees or others for whom it
is responsible, Contractor shall immediately notify the Facility Administrator in writing and shall
immediately commence and thereafter diligently continue any and all remediation measures necessary
in accordance with applicable law to remedy such disposal or release. Contractor hereby indemnifies,
holds harmless, and agrees to defend Owner from and against any and all losses, claims, damages,
costs or expenses, including legal fees, arising from or relating to any breach by Contractor of the
provisions of this Paragraph 6. This indemnity shall survive final payment and completion of the
Work.
7. The Contractor warrants without limitation to the Owner that materials and equipment furnished
under the Contract will be of good quality and new unless otherwise required or permitted by the
Contract Documents, that the Work will be free from defects not inherent in the quality required or
permitted, and that the Work will conform to the requirements of the Contract Documents and
industry standards. Work not conforming to these requirements, including substitutions not properly
approved and authorized in writing, shall be considered defective.
8. The Contractor shall keep the premises and surrounding area free from accumulation of waste
materials or rubbish caused by operations under the Contract. At completion of the Work, the
Contractor shall remove from and about the Project waste materials, rubbish, the Contractor's tools.
construction equipment, machinery and surplus material. If the Contractor fails to clean up as
provided in the Contract Documents, the Owner may do so and the cost thereof shall be charged to
the Contractor.
9. Owner may order Contractor to perform additional work, including work beyond the scope of the
Contract. Contractor shall perform the additional work but only if a Change Order is executed by the
parties, in writing prior to the performance of the additional work. Contractor shall not be entitled to
payment for extra work in the absence of a written Change Order. ANY ADDITIONAL WORK,
OR WORKED CLAIMED BY THE CONTRACTOR TO BE ADDITIONAL WORK,
PERFORMED BY CONTRACTOR WITHOUT THE PRIOR, EXPRESS, WRITTEN
AUTHORIZATION OF THE FACILITY ADMINISTRATOR SHALL BE AT THE
CONTRACTOR'S SOLE COST AND EXPENSE.
a. Hourly labor Rates for change orders are $85.00 for skilled labor and $58.00 for basic
labor, For any adjustments to the Contract Sum which are based on other than the unit
prices method, the Contractor agrees to charge, and accept, as payment for Overhead and
Profit (OH&P), the following percentages of costs attributable to the change in the Work:
Five percent (5%) for all Work by the Contractor including that performed by
Subcontractors;
When both additions and credits are involved in any one change, the allowance
for overhead and profit shall be figured on the basis of the net increase or
decrease;
iii. For additional Work ordered as described above which will be executed by
Subcontractors, it is agreed Subcontractors will be permitted to charge five
percent (5%) for Work not involving Sub -subcontractors and five (5°/a) for Work
by Sub -subcontractors.
p.3 of 6
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iv. Percentage markups for Overhead and Profit fees are to be calculated on the sum
of all costs prior to the addition of General Excise Tax and the OH&P fee
percentages. Percentage markups to provide for OH&P fee on OH&P fee will
not be allowed.
Each Change Order Proposal shall be submitted with full supporting detail
including breakdowns of all costs to indicate labor hours and base hourly labor
rates, payroll taxes and hourly fringe benefit costs for each work item, material
unit breakdowns to indicate material quantities and unit costs, equipment
operating hours and rental rates and similar detail for all other costs. Additional
costs for jobsite office expenses including staff and facilities will not be allowed
except For such costs directly attributable to the change. In general additional
staff and facilities costs will not be al lowed except for those changes that result in
an approved extension of the contract time. General markups to cover jobsite
office staff and facilities will not be allowed.
b. Agreement on any Change Order shall constitute a final settlement of all matters relating
to the change in the Work that is the subject of the Change Order, including, but not
limited to, all direct and indirect costs and consequential damages associated with such
change and any and all adjustments to the Contract Sum and the construction schedule.
10. Should the Contractor be delayed in the commencement, prosecution, or completion of the work by
the act, omission, neglect or default of anyone employed by the Owner, or by any caused by fire or
other casualty or by the combined action of workmen in no way chargeable to the Contractor, or by
any extraordinary conditions arising out of war or government regulations, or by any other cause
beyond the Contractor's control and not due to any fault, neglect, act or omission on its part, then the
contractor shall be entitled to an extension of time, such extension to be for a period equivalent to the
time lost by reason of any and all of the aforesaid causes, as determined by the Owner. In addition to
an extension of time, Contractor shall be entitled to reimbursement for its direct, out-of-pocket
expenses caused by the delay. Such direct expenses shall not be calculated based upon a daily rate for
general conditions, but instead shall be based upon Contractor's provable and reasonable costs and
expenses directly caused by the delay.
In no event shall Contractor be entitled to labor inefficiency, home -office overhead expenses, lost
profit, or any form of consequential loss or damages,
11. Insurance. Contractor shall provide the following insurance coverages, evidenced by an ACORD-
form or similar certificate of insurance to be delivered to Owner prior to commencement of the Work:
a. Commercial General Liability insurance, applicable to all premises and operations,
including Bodily Injury, Property Damage, Personal Injury, Blanket Contractual
Liability, Independent Contractors, Products and Completed Operations, Broad Form
Property Damage (including Completed Operations) and coverage for explosion,
collapse, and underground hazards with limits of liability of not less than $1,000,000 per
occurrence and $2,000,000 aggregate. Such insurance policy and related certificate will
be endorsed to name the Owner as an additional named insured, and Contractor shall
provide Owner with an additional -insured endorsement. Such policies shall be primary
and non-contributory to any similar coverage maintained by Owner and shall expressly
waive the right of subrogation against Owner and its insurers.
b. Workers' Compensation Insurance with not less than statutory limits of liability.
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c. Benefits required by union labor contracts and benefits required by an employee benefit
act or other statutes applicable where the Work is performed, as applicable.
d. Employer's Liability Insurance with a limit of liability of not less than $1,000,000.
e. Business Automobile Liability Insurance, applicable to any automobile, including owned,
non -owned, and hired automobiles, with a limit of liability of not less than $1,000,000
per occurrence plus $1,000,000 excess or $2,000,000 primary per each accident. Such
insurance policy and related certificate will be endorsed to name the Owner as an
additional named insured, and Contractor shall provide Owner with an additional -insured
endorsement. Such policies shall be primary and non-contributory to any similar
coverage maintained by Owner and shall expressly waive the right of subrogation against
Owner and its insurers.
All insurance furnished under this Paragraph 1 I shall provide for ten days' notice of cancellation by
Contractor's insurers to Owner at least ten days prior to such cancellation. Contractor shall be
responsible for ensuring that any of its subcontractors cavy coverage conforming to the requirements
of this Paragraph 1 l .
12. The Owner shall have the right to require the Contractor to furnish bonds covering faithful
performance of the Contract and payment of obligations arising thereunder as stipulated in bidding
requirements or specifically required in the Contract Documents on the date of execution of the
Contract. Upon the request of any person or entity appearing to be a potential beneficiary of bonds
covering payment of obligations arising under the Contract, the Contractor shall promptly furnish a
copy of the bonds or shall authorize a copy to be furnished.
13. Contractor (the "Indemnifying Party") shall indemnify, defend and hold harmless the Owner, its
respective subsidiaries, directors, officers, employees, successors, and agents (collectively the
"Indemnified Party") from and against all actions, causes of action, liabilities, claims, demands, suits,
judgments, liens, awards, damages, expenses, and losses of any kind and nature whatsoever, including
reasonable and necessary attorneys' fees and expert's fees, arising out of or proximately caused by
breach of this Agreement or by the negligence or fault of the Indemnifying Party, its employees,
agents, subcontractors or suppliers for property damage, personal injury, or death (including without
limitation injury to or death of employees of the other or any subcontractor thereof) provided
however, that the Indemnifying Party shall not be liable for or be required to indemnify the other
party with respect to any injuries and/or damages to any person or property to the extent resulting
from the negligent or wrongful acts or omissions of such other party, their respective subsidiaries,
directors, officers, employees, successors, and agents. In no event shall a party's obligations
hereunder be limited to the extent of any insurance available to or provided by a party or any
subcontractor thereof.
14. The Contractor shall promptly correct Work which fails to conform to the requirements of the
Contract or is otherwise defective, whether discovered before or after Substantial Completion and
whether or not fabricated, installed or completed. Costs of correcting such rejected Work, including
but not limited to additional testing and inspections and compensation for the Owner's costs and
expenses made necessary thereby; attorneys' and experts fees; fees for architectural services; and any
other loss, cost, or expense that is caused by the non -conforming or defective work, shall be at the
Contractor's expense. If Work is not completed to conform with the Contract, at Owner's sole
discretion, Owner will hire another contractor to complete the Work and such costs will be deducted
from the original Contract price. if the costs exceed the remaining balance of the Contract price,
Contractor shall promptly pay Owner upon receipt of Owner's invoice for such costs.
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15. The Owner may terminate the Contractor for Cause, after giving Contractor seven (7) days written
notice of its intent to terminate, if the Contractor:
a. persistently or repeatedly refuses or fails to supply enough properly skilled workers or
proper materials;
b. fails to make payment to Subcontractors for materials or labor in accordance with the
respective agreements between the Contractor and the Subcontractors;
c. persistently disregards laws, ordinances, or rules, regulations or orders of a public
authority having jurisdiction; or
d. otherwise is guilty of substantial breach of a provision of the Contract Documents.
16. Any disputes or claims that cannot be amicably and efficiently settled between the parties shall be
subject to mediation as a condition precedent to arbitration or the institution of legal or equitable or
other binding dispute -resolution proceedings by either party. Disputes or claims that have not been
resolved by mediation shall be decided by arbitration, which unless the parties mutually agree
otherwise, shall be in accordance with the Construction industry Arbitration Rules of the American
Arbitration Association currently in effect at the time of the arbitration. The demand for arbitration
shall be filed in writing with the other party to the Design -Build Contract and with the American
Arbitration Association or with the person or entity administering the arbitration. The matter shall be
submitted to arbitration through the American Arbitration Association or such other person or entity
that the parties may select. The award rendered by the arbitrator shall be final, and judgment may be
entered upon and in accordance with applicable law in any court having jurisdiction thereof.
17. In any arbitration or litigation arising from or related to the contract or these General Conditions, the
prevailing party shall be entitled to an award of its reasonable costs, including expert's fees, and
attorney fees.
18. Written notice by either party to the other shall be effective only when delivered to the other party's
address as specified in this Paragraph 18 and upon either (1) three business days after being sent by
certified, first-class snail; (2) the next business day following hand delivery; or (3) the next business
day following delivery by overnight courier. Contractor's notice address shall be the address stated in
the recitals on the first page of the Construction Contract to which these Contractor Terms and
Conditions are attached. Owner's notice address shall be:
Secretary for Business Administration
The Salvation Army
180 East Ocean Boulevard
Long Beach, California 90802
with copy to:
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