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HomeMy WebLinkAboutStenz Construction/Incoomplete Contract no project description, scope of work, proof of insurance CONSTRUCTION MANAGEMENT AGREEMENT This Construction Management Agreement(the"Agreement") is executed this Nineteenth day of March, 2009 (the "Effective Date"), by and between The City of Carmel Redevelopment Commission ("CRC")and Stenz Construction Corporation (the"CM"). ARTICLE 1 -- RESPONSIBILITIES CM's services shall: (a) consist of the Basic Services (as defined in Section 2.1) and the Additional Services (as defined in Article 3); and (b) be provided in conjunction with the services of the Architect/Engineer of Record ("NE"). CM shall provide sufficient organization, personnel, and management to perform the Basic Services and the Additional Services and otherwise carry out its obligations under this Agreement in an expeditious and economical manner consistent with the interests of CRC. CM hereby acknowledges that: (a) CRC is contracting with CM for the express purpose of, among other things, CM's familiarity and compliance with the Public Bidding Requirements (as defined in Subsection 2.2(n)); and (b) CM has been directed to, and fully is familiar with, the Public Bidding Requirements. ARTICLE 2=-SCOPE OF SERVICES 2.1 Basic Services. The "Basic Services" shall consist of the services set forth in Sections 2.2 and 2.3, together with any other services identified as being a part of the Basic Services on Exhibit A. 2.2 Pre-Construction Phase. CM shall provide the following services in the pre-construction phase: (a) Review the program, schedule, and construction budget requirements (the "Project Requirements") furnished by NE or CRC to ascertain the requirements of the Project(as defined and described in Exhibit B) and demonstrate to NE an understanding of the foregoing. (b) Provide to CRC and NE a preliminary evaluation of the Project Requirements. (c) Based on early schematic designs and other design criteria prepared by NE: (i) prepare preliminary estimates of the Construction Cost (as defined in Section 5.1) using area, volume, or similar conceptual estimating techniques; and (ii) provide to A/E cost evaluations of alternative materials and systems. (d) Expeditiously: (i) review schematic, design development, and construction documents (the "Construction Documents") during the development thereof; and (ii) advise NE on proposed site use and improvements, selection of materials, building systems and equipment, and methods of Project delivery. (e) Provide recommendations to NE on: (i) relative feasibility of construction methods; (ii) availability of materials and labor; (iii) time requirements for procurement, installation and construction; and (iv) factors related to the Construction Cost, including costs of alternative designs or materials, preliminary budgets, and possible economies. (f) Prepare and monthly update a schedule for completion of the Project (the "Project Schedule") for review by NE and approval by CRC. The Project Schedule shall coordinate and integrate the services of CM and NE, and the responsibilities of CRC, with anticipated construction schedules, including schedules for performance of work by or for the City of Carmel, Indiana (the "City"), highlighting on the updated schedules critical and long lead time items. (g) As A/E progresses with the preparation of the Construction Documents, CM shall prepare, at intervals established by CM and NE, estimates of the Construction Cost in increasing detail and refinement, using supporting detail where applicable. Such estimates shall be provided for review by NE and approval by CRC. CM shall advise CRC and NE if, at any time, it appears that the Construction Cost may exceed the latest Construction Cost estimate. Following completion of the Construction Documents, CM shall update and submit the latest Construction Cost estimate and the Project Schedule for A/E's review and CRC's approval. (h) Consult with NE regarding the Construction Documents and make recommendations whenever design details adversely affect: (i) ability to construct; (ii) cost;or(iii)the Project Schedule. (I) Provide recommendations and information to A/E regarding the assignment of responsibilities for temporary Project facilities, equipment, materials, and services for common use of the contractors. CM shall verify that such requirements and assignment of responsibilities are included in the proposed documents to be executed with the contractors (the"Contract Documents"). (j) Provide recommendations and information to NE regarding the allocation of responsibilities for safety programs among the contractors. (k) Advise NE on the division of the Project into separate contracts for various categories of work, including: (i) providing an analysis of the types and quantities of labor required for the Project; (ii) reviewing the availability of appropriate categories of labor required for critical phases; and (iii) making recommendations for actions designed to minimize adverse effects of labor shortages. (I) Prepare a construction schedule for each component of the work (the "Component Schedule"), including: (i) phasing of construction; (ii) times of commencement and completion for each contractor; (iii) ordering and delivery of products; and (iv) the completion requirements of CRC. A current Component Schedule shall be provided to NE for each set of bidding documents. CM shall expedite and coordinate the ordering and delivery of materials requiring long lead time. (m) If multiple contractors are to be awarded contracts, review the Construction Documents and make recommendations to NE as required to provide that: (i) the work of the contractors will be coordinated; (ii) all requirements for the Project will be assigned to the appropriate contractor pursuant to the appropriate contract; (iii) the likelihood of jurisdictional disputes has been minimized; and (iv) proper coordination has been provided for phased construction. (n) Prepare bid packages and conduct the public bidding process in accordance with IC § 36-1-12, et seq., including, without limitation, placing proper notice and/or advertising in print media (newspapers) and on the Internet. CM shall comply with Indiana law with respect to all bids and contracts for the Project, including, without limitation, IC § 36-1-12, et seq. and any rules or regulations promulgated or prescribed by the Indiana State Board of Accounts (collectively, the "Public Bidding Requirements"). CM shall keep CRC apprised of all actions taken by CM and required by this Subsection. Neither CRC nor its: (i) executive director, currently Les Olds (the "Executive Director"); (ii) other personnel; or(iii)contractors or attorneys; have given, or shall be responsible for 2 giving, advice to CM with respect to compliance with the Public Bidding Requirements; provided that CM may rely on the advice of such persons with respect to the Public Bidding Requirements if such advice is in writing and: (i) addressed or directed to CM; and (ii) is signed by the Executive Director or an attorney for CRC. (o) Obtain, compile, maintain, and make available for inspection by CRC and/or any person or entity designed by CRC, records establishing and evidencing compliance with the Public Bidding Requirements. Neither CRC nor its: (i) Executive Director; (ii) other personnel; or (iii) contractors or attorneys; shall be responsible for obtaining, compiling, maintaining, or reviewing the records required to be obtained, compiled, and maintained by CM under this Subsection. (p) Submit to NE a list of prospective bidders, develop bidders' interest in the Project, and assist CRC and NE with respect to questions from bidders. (q) Prepare bid analyses and make recommendations to NE for CRC's award of contracts or rejection of bids; provided that all contractors and other professionals whose services are required shall be selected in accordance with the public bidding process and procedures required by Indiana law. (r) Prepare Contract Documents on forms provided by CRC for review by NE and approval by CRC, and advise NE on the acceptability of subcontractors and material suppliers proposed by contractors. (s) Assist in obtaining permits, except for permits required to be obtained directly by the various contractors. (t) Verify that applicable fees and assessments have been paid by CRC, and assist in filing documents required for the approvals of governmental authorities having jurisdiction over the Project. 2.3 Construction Phase. The "Construction Phase" shall commence with the award of the initial construction contract or purchase order and, together with CM's obligation to provide the Basic Services, shall end 30 days after date of substantial completion. CM shall provide the following services during the Construction Phase: (a) Prepare bid packages and conduct the public bidding process in accordance with the Public Bidding Requirements. CM shall comply with the Public Bidding Requirements with respect to all bids and contracts for the Project. CM shall keep CRC apprised of all actions taken by CM and required by this Subsection. Neither CRC nor its: (i) Executive Director; (ii) other personnel; or (iii) contractors or attorneys; have given, or shall be responsible for giving, advice to CM with respect to compliance with the Public Bidding Requirements; provided that CM may rely on the advice of such persons with respect to the Public Bidding Requirements if such advice is in writing and: (i) addressed or directed to CM; and (ii) is signed by the Executive Director or an attorney for CRC. (b) Administer the Contract Documents in cooperation with NE. (c) Provide administrative, management, and related services to coordinate scheduled activities and responsibilities of the contractors with each other and with those of CM, CRC, the City, and NE for the purpose of managing the Project in accordance with the latest approved Construction Cost estimate, the Project Schedule, and the 3 Contract Documents. (d) Schedule and conduct meetings to discuss such matters as procedures, progress, and scheduling. CM shall prepare and distribute minutes of the foregoing to NE and the contractors in a prompt and timely manner. (e) Utilizing the construction schedules provided by the contractors, update the Project Schedule incorporating the activities of the contractors on the Project, including: (i) activity sequences and durations; (ii) allocation of labor and materials; (iii) processing of shop drawings, produce data, and samples; (iv) delivery of products requiring long lead time and procurement; and (v) CRC's completion requirements, showing portions of the Project having completion priority. CM shall update and reissue the Project Schedule to CRC and NE as required to show current conditions. If an update indicates that the previously approved Project Schedule may not be met, then CM shall recommend corrective action to A/E. (f) Consistent with the various bidding documents, and utilizing information from the contractors, CM shall coordinate the sequence of construction and assignment of space in areas where the contractors are performing work. (g) Endeavor to obtain satisfactory performance from each of the contractors, and recommend courses of action to NE when requirements of any of the Contract Documents are not being fulfilled. (h) In collaboration with NE, establish and implement procedures for requiring contractors to perform and complete work as required for the approval of governmental authorities having jurisdiction over the Project and otherwise as required by applicable law. (i) In collaboration with NE, coordinate the performance of tests and inspections required by the Contract Documents or by law. (j) In collaboration with NE, establish and implement procedures for addressing observed deficiencies. (k) Monitor the approved Construction Cost estimate showing actual costs for activities in progress and estimates for uncompleted tasks in comparison with such approved estimate. (I) Develop cash flow reports and forecasts for the Project, and advise A/E as to variances between actual and budgeted or estimated costs. (m) Maintain accounting records on authorized work performed under unit costs, additional work performed on the basis of actual costs of labor and materials, and other work requiring accounting records. (n) In collaboration with NE, develop a list of the items required for submission with applications by contractors for progress and final payments. (o) Develop and implement procedures for the review and processing of applications by contractors for progress and final payments, including confirmation that the required items have been submitted and review and processing of those items. 4 (p) Review and certify the amounts due the respective contractors, based on observations and evaluations of each contractor's application and submissions for payment, and prepare applications for payment based on the foregoing certifications. (i) The foregoing certifications for payment shall constitute representations to CRC and NE that, to the best of CM's knowledge, information, and belief based on adequate on-site inspections to check the quality or quantity of the work, the work has progressed to the point indicated and the quality of the work is in accordance with the Contract Documents, subject to: (A) results of subsequent tests and inspections; (B) minor deviations from the Contract Documents correctable prior to completion; and (C) specific reasonable qualifications set forth in the certification. The issuance of an application for payment also shall constitute a representation that the contractor is entitled to payment in the amount certified. (ii) The issuance of an application for payment shall not be a representation that CM has: (A) made exhaustive or continuous on-site inspections to check the quality or quantity of the work; (B) examined construction means, methods, techniques, sequences for the contractor's work, or procedures; or (C) ascertained how, or for what purpose, the contractor has used money previously paid to such contractor. (q) Coordinate communications among contractors regarding job site safety, endeavor to obtain compliance with contractors' contractual obligations regarding safety, and recommend to CRC a course of action when such contractual obligations are not being fulfilled; provided that CM's responsibilities shall not extend to direct control over, or charge of, the acts or omissions of the contractors or subcontractors, the agents or employees of the contractors or subcontractors, or any other persons performing portions of the work and not directly employed by CM. (r) Determine, based on adequate on-site inspections to check the quality or quantity of the work, that the work of each contractor is being performed in accordance with the requirements of the Contract Documents, endeavoring to guard CRC against defects and deficiencies in the work, and, when observed by CM, inform CRC of: (i) lack of coordination among contractors; and/or (ii) safety violations. As appropriate, CM shall have authority, upon written authorization from A/E, 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. CM, in consultation with NE, may reject work that does not conform to the requirements of the Contract Documents. (s) Schedule and coordinate the sequence of construction in accordance with the Contract Documents and the latest approved Project Schedule. (t) Transmit to A/E requests for interpretations of the meaning and intent of the Construction Documents, and assist in the resolution of questions that may arise. 5 (u) Review requests for changes, assist in negotiating contractors' proposals, submit recommendations to NE, and, if they are accepted, prepare change orders and construction change directives that incorporate NE's modifications to the Construction Documents. (v) Assist NE in the review, evaluation, and documentation of claims. (w) Secure certificates of insurance from the contractors, and forward such certificates to NE. (x) In collaboration with NE, establish and implement procedures for expediting the processing and approval of shop drawings, product data, samples, and other submittals. (y) Review all shop drawings, product data, samples, and other submittals from the contractors. (z) Coordinate submittals with information contained in related documents, and transmit to NE those that have been approved by CM, all of which shall be performed with such reasonable promptness as to cause no delay in the work or in the activities of CRC, NE, or the contractors. (aa) Record the progress of the Project, including: (i) submitting to CRC and NE written progress reports that include information on each contractor and its work, the progress of the entire Project, and percentages of completion; and (ii) keeping 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 NE may require. (bb) Maintain at the Project site: (i) one record copy of all contracts, drawings, specifications, addenda, change orders and other modifications, approved shop drawings, Project data, samples, and similar required submittals; and (ii) duplicate copies of principal building layout lines, elevations of the bottom of footings, floor levels, and key site elevations certified by a qualified surveyor or professional engineer; making all of the foregoing available to NE. All of the foregoing shall be delivered to CRC upon completion of the Project. (cc) Coordinate among contractors: (i) the delivery to the Project Site; and (ii) the storage, protection, and security on the Project Site; of materials, systems, and equipment to be incorporated into the Project. (dd) Review: (i) the delivery to the Project Site; and (ii) the storage, protection, and security on the Project Site; of CRC-purchased materials, systems, and equipment to be incorporated into the Project, and notify CRC if any of the foregoing is being handled improperly. (ee) With NE and representatives of CRC and the City, observe the contractors' final testing and start-up of utilities, operational systems, and equipment. (ff) At such time as a contractor's work, or a designated portion thereof, is substantially complete: (i) prepare for NE a list of incomplete or unsatisfactory items and a schedule for their completion; and (ii) assist NE in conducting inspections to determine whether the work, or a designated portion thereof, is substantially complete. 6 (gg) Coordinate the correction and completion of the work. (hh) Following issuance of a certificate of substantial completion of the work, or a designated portion thereof: (i) evaluate the completion of the work and make recommendations to NE when work is ready for final inspection; and (ii) assist A/E in conducting final inspections. (ii) Secure and transmit to NE warranties and similar submittals required by the Contract Documents, all keys, manuals, record drawings and maintenance stocks, and a final project application for payment upon compliance with the requirements of the Contract Documents. 2.4 Limitations. The following limitations shall apply: (a) With respect to each contractor's work, CM shall not: (i) have control over, charge of, or be responsible for, construction means, methods, techniques, sequences procedures, or safety precautions and programs; as the foregoing are the sole responsibility of each such contractor under the Contract Documents; (ii) be responsible for a contractor's failure to carry out the work in accordance with the applicable Contract Documents; or (iii) have control over, or charge of, acts or omissions of the contractors or subcontractors, the agents or employees of the contractors or subcontractors, or any other persons performing portions of the work and not directly employed by CM. (b) Duties, responsibilities, and limitations of authority of CM as set forth in the Contract Documents shall not be restricted, modified, or extended without the written consent of CRC, CM, and NE, which consent shall not be withheld unreasonably. ARTICLE 3--ADDITIONAL SERVICES The"Additional Services" shall consist of the following services: (a) Providing services required because of significant changes in the Project, including changes in size, quality, complexity, or the Project Schedule. (b) Providing consultation concerning replacement of work damaged by fire or otherwise during construction, and furnishing services required in connection with the replacement of such work. (c) Providing services made necessary by: (i)the termination of, or default by, NE or a contractor; (ii) major defects or deficiencies in the work of a contractor; or (iii)failure of performance of either CRC, NE, or a contractor under a construction contract. (d) Providing services in evaluating an extensive number of claims submitted by a contractor or others in connection with the work. (e) Providing services in connection with a public hearing, arbitration proceeding, or legal proceeding, except where CM is party thereto. (f) Providing services relative to future facilities, systems, and equipment. 7 (g) Providing services to investigate existing conditions or facilities, or to provide measured drawings thereof. (h) Providing services to verify the accuracy of drawings or other information furnished by CRC or NE. (i) Providing services required for or in connection with CRC's selection, procurement, or installation of furniture, furnishings, and related equipment. (j) Providing services for tenant improvements. (k) Providing any other services not otherwise included in this Agreement. The Additional Services: (a) shall not be included in the Basic Services, except to the extent specified on Exhibit A as being a part thePeof; and (b) except to the extent specified on Exhibit A as being part of the Basic Services, shall be provided only upon receipt by CM of notice of authorization from CRC. ARTICLE 4--CRC RIGHTS AND RESPONSIBILITIES 4.1 Responsibilities. CRC shall have the following responsibilities: (a) Provide through NE full information regarding requirements for the Project, including a program setting forth CRC's objectives, schedule, constraints, and criteria, including special equipment, systems, and site requirements. (b) Establish and update through NE an overall budget for the Project based on consultation by NE with CM, which shall include the Construction Cost, CRC's other costs, and reasonable contingencies related to all of these costs. (c) If requested by CM, furnish through NE evidence that financial arrangements have been made to fulfill CRC's obligations under this Agreement. (d) Cause NE, as the designated agent of CRC, to render decisions in a timely manner pertaining to documents submitted by CM in order to avoid unreasonable delay in the orderly and sequential progress of CM's services. CM shall not be responsible for actions taken by NE. (e) Furnish through NE structural, mechanical, chemical, air and water pollution tests, tests for hazardous materials, and other laboratory and environmental tests, inspections, and reports required by law or the Contract Documents. (f) Furnish all legal, accounting, and insurance counseling services as may be necessary, including auditing services CRC 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 CRC. (g) Furnish through NE a sufficient quantity of Construction Documents. (h) Require A/E to deliver prompt written notice to CRC and CM if NE becomes aware of any: (i) fault or defect in the Project; or (ii) nonconformance with the Contract Documents. 8 (i) Deliver prompt written notice to CM if CRC becomes aware of any: (i) fault or defect in the Project; or(ii) nonconformance with the Contract Documents. vi) Furnish through A/E information or services under CRC's control with reasonable promptness to avoid delay in the orderly progress of CM's services and the progress of the work. The services, information, and reports required by Subsections 4.1(d)-(g) shall be furnished at CRC's expense, and CM shall be entitled to rely upon the accuracy and completeness thereof. 4.2 Rights. In addition to rights of CRC set forth elsewhere in this Agreement, CRC reserves the right to: (a) perform construction and operations related to the Project with CRC's own forces or the forces of the City; and (b) award contracts in connection with the Project that are not part of CM's responsibilities under this Agreement; provided that CM shall notify CRC if any such independent action will interfere with CM's ability to perform CM's responsibilities under this Agreement. 4.3 Architect as Agent. CRC has designated NE as its agent for the purpose of day to day contact with CM. CRC has authorized NE to make all decisions with respect to the Project as set forth herein; provided that A/E is not authorized to make any decisions that would: (a) require any part of the work for the Project to be re-bid; (b) result in a scope change; (c) increase CRC's costs; or(d) delay completion; in any of the foregoing cases without the prior written consent of CRC, and CM shall not take any actions with respect to such decisions until it has received the required consent. ARTICLE 5--CONSTRUCTION COST 5.1 Definition. (a) The "Construction Cost" shall: (i) be the total cost or estimated cost to CRC of all elements of the Project designed or specified by NE; and (ii) include: (A) the cost, at current market rates, of: (1) labor and materials required to complete the Project; and (2) equipment designed, specified, or selected for the Project; (B)a reasonable allowance for the contractors' overhead and profit; and (C) a reasonable allowance for: (1) contingencies for market conditions at the time of bidding; and (2) changes in the work during construction. Except as provided in Subsection 5.1(b), the Construction Cost shall include the compensation of CM and its consultants. (b) The Construction Cost shall not include: (i) the compensation of NE and its consultants; (ii) costs of the land or rights-of-way; (iii) costs of financing; or (iv) other costs that are the responsibility of CRC pursuant to Section 4.1. If any portion of CM's compensation is based upon a percentage of the Construction Cost, then, for purposes of determining such portion, the Construction Cost shall not include the compensation of CM or its consultants, agents, or employees. 5.2 Responsibility. (a) Evaluations of CRC's Project budget, preliminary Construction Cost estimates, and detailed Construction Cost estimates prepared by CM represent CM's best judgment as an entity familiar with the construction industry. It is recognized that neither CM nor CRC has control over: (i) the cost of labor, materials, or equipment; (ii) contractors' methods of determining bid prices; or (iii) bidding, market, or negotiating conditions. Accordingly, CM cannot and does not warrant or represent that bids or negotiated prices 9 will not vary from the Project budget proposed, established, or approved by CRC, or from any cost estimate or evaluation prepared by CM. (b) No fixed limit of Construction Cost shall be established as a condition of this Agreement by the furnishing, proposal, or establishment of a Project budget, unless such fixed limit has been agreed in writing and signed by CM and CRC. If such a fixed limit has been established, then CM shall: (i)be permitted to include reasonable contingencies for design, bidding, and price escalation; and (ii) consult with NE to: (A) determine what materials, equipment, component systems, and types of construction are to be included in the Contract Documents; (B) suggest reasonable adjustments in the scope of the Project; and (C) suggest inclusion of alternate bids in the Construction Documents to adjust the Construction Cost to the fixed limit. Fixed limits, if any, shall be increased in the amount of any increase in the contract sums occurring after execution of the construction contracts. (c) If the bidding or negotiation phase has not commenced within 90 days after submittal of the Construction Documents to CRC, then any Project budget or fixed limit of Construction Cost shall be adjusted to reflect changes in the general level of prices in the construction industry between the date of submission of the Construction Documents to CRC and the date on which proposals are sought. (d) If a fixed limit of Construction Cost (adjusted as provided in Subsection 5.2(c)) is exceeded by the sum of the lowest bona fide bids or negotiated proposals plus CM's estimate of other elements of Construction Cost for the Project, then CRC shall: (i) give written approval of an increase in such fixed limit; (ii) authorize rebidding or renegotiating of the Project within a reasonable time; (iii) if the Project is abandoned, terminate in accordance with Section 8.3; or (iv) cooperate in revising the Project scope and quality as required to reduce the Construction Cost; provided that, if CRC elects this option, then CM, without additional charge, shall cooperate with CRC and A/E as necessary to bring the Construction Cost within the fixed limit, if established as a condition of this Agreement. ARTICLE 6-- CONSTRUCTION SUPPORT ACTIVITIES Construction support activities, if provided by CM, shall be governed by separate agreements, except to the extent provided on Exhibit A. Reimbursable expenses listed in Section 10.2 for construction support activities may be subject to trade discounts, rebates, refunds, and amounts received from sales of surplus materials and equipment that shall accrue to CRC, and CM shall make provisions so that they can be secured. ARTICLE 7-- A/E DOCUMENTS The Construction Documents and other documents prepared by NE (the "NE Documents") are instruments of A/E's service through which the work to be executed by the contractors is described. CM: (a) may retain one record set of the NE Documents; but(b) shall not own or claim a copyright in the NE 10 Documents. All copies of the A/E Documents, except CM's record set, shall be returned to NE upon completion of the Project. The NE Documents, and copies thereof furnished to CM, are: (a) for use solely with respect to the Project; and (b) not to be used by CM on other projects, or for additions to this Project outside the scope of the work, without the specific written consent of CRC and NE. CM is granted a limited license to use and reproduce portions of the A/E Documents appropriate to, and for use in, the performance of CM's services under this Agreement; provided that all copies made under this license shall bear the statutory copyright notice, if any, shown on the A/E Documents. Submittal or distribution to meet official regulatory requirements or for other purposes in connection with this Project shall not be construed as publication in derogation of any copyright or other reserved rights. ARTICLE 8--TERM AND TERMINATION 8.1 Term. The initial term of this Agreement shall be for a period: (a) commencing on the Effective Date; and (b) ending on the date that is 12 months thereafter, unless earlier terminated in accordance with the terms and conditions of this Agreement. At the expiration of the initial term or the applicable extension term, as applicable, the term of this Agreement automatically shall be extended for an additional 12 months; provided that: (a) there shall be only four such automatic extensions; and (b) notwithstanding the foregoing, CRC may elect to have the term of this Agreement end with the expiration n of the initial term or the then current extension term, as applicable, by delivering written notice to CM on or before November 30 of the initial term or the then current extension term, respectively. 8.2 Termination. (a) Either party may terminate this Agreement upon not less than seven days'written notice if the other party fails to perform substantially in accordance with the terms of this Agreement through no fault of the party initiating the termination. Failure of CRC to make payments to CM in accordance with this Agreement shall be considered substantial nonperformance and cause for termination. (b) Either party may terminate this Agreement upon written notice at any time after the Basic Services and the Additional Services (if applicable) have been provided, so that no further services are required by CM pursuant to this Agreement. (c) CRC may terminate this Agreement upon written notice if, at any time, Leo Stenz no longer: (i) is a principal of CM; or(ii)directs the business operations of CM. (d) If this Agreement is terminated for reasons other than the fault of CM, then CM shall be compensated for services performed prior to termination, together with: (i) Reimbursable Expenses (as defined in Section 10.2) then due; and (ii) all reasonable costs, including, without limitation, attorneys' fees and court costs, directly attributable to termination for which CM is not otherwise compensated. (e) If this Agreement is terminated due to the fault of CM, then CRC: (i) shall be compensated for all reasonable costs, including, without limitation, attorneys' fees and court costs, directly attributable to termination for which CRC is not otherwise compensated; and (ii) may exercise any other remedy available hereunder, at law, or in equity. 11 8.3 Project Suspension. CRC may suspend work on the Project at any time by issuing a stop work order; provided that such suspension shall not result in a termination by either party, except to the extent that such termination is permitted pursuant to Subsection 5.2(d) or Section 8.2. If the Project is suspended by CRC for more than 30 consecutive days, then CM shall be compensated for services performed prior to notice of such suspension. When the Project is resumed, CM's compensation shall be equitably adjusted to provide for expenses incurred in the interruption and resumption of CM's services. 8.4 Performance Suspension. If CRC fails to make payment when due to CM for services and expenses, then CM, upon seven days' written notice to CRC, may suspend performance of services under this Agreement. In the event of a suspension of services as permitted by this Section, CM shall have no liability to CRC for delay or damage caused to CRC because of such suspension of services. ARTICLE 9—INSURANCE 9.1 Required Insurance. CM shall purchase and maintain, from a company or companies lawfully authorized to do business in the State of Indiana, such insurance as will protect CM from the following claims that may arise out of, or result from, CM's operations under this Agreement and for which CM may be legally liable: (a) Claims for workers compensation, disability benefit, and other similar employee benefit acts that are applicable to the operations to be performed; (b) Claims for damages because of bodily injury, occupational sickness or disease, or death of any person; © Claims for damages insured by usual personal injury liability coverage that are sustained by any person; (d) Claims for damages, other than to the work itself, because of injury to or • destruction of tangible property, including loss of use resulting therefrom; and (e) Claims for damages because of bodily injury, death of a person, or property damage arising out of ownership, maintenance, or use of a motor vehicle. 9.2 Required Coverages. The insurance required by this Article shall be written for limits of liability not less than those specified on Exhibit C or required by law, whichever coverage is greater. Coverages, whether written on an occurrence or claims-made basis, shall be maintained without interruption from the date of commencement of operations under this Agreement until th e date of final payment and termination of any coverage required to be maintained after final payment. As specified in Exhibit C, policies of insurance shall: (a) name CRC as a named insured or additional insured, as applicable; and (b) provide that the policy may not be cancelled without 30 days' advance written notice to CRC. CM shall provide to CRC and NE certificates of all insurance required by this Article. 9.3 Subrogation. CRC and CM waive and release all rights of recovery that they may have against: (a) the other party or its consultants, contractors, agents, and employees; and (b) NE or its consultants, contractors, agents, and employees; for loss or damage, whether or not caused by any alleged negligence of the other party, NE, or the consultants, contractors, agents, or employees of the other party or NE, to the extent that such loss or damage is or would be covered by any insurance required to be maintained under this Article (or that otherwise is maintained). Each of CRC and CM shall require similar waivers from: (a) NE; and (b) the consultants, contractors, agents, and employees of CRC and CM, respectively, and NE. 12 ARTICLE 10—PAYMENT 10.1 Direct Personnel Expense. "Direct Personnel Expense" shall mean the labor rates of CM's personnel engaged on the Project as set forth on Exhibit D. 10.2 Reimbursable Expenses. "Reimbursable Expenses" shall mean the following actual out-of- pocket expenses incurred by CM and CM's consultants, agents, and employees in the interest of the Project: (a) long-distance communication expenses; (b) fees paid for securing approval of governmental authorities having jurisdiction over the Project; (c)reproduction, postage, express delivery, and electronic facsimile transmission expenses; (d) any additional expense of overtime work requiring higher than regular rates, to the extent authorized in advance by CRC; provided that, except for such additional expense of overtime work, Reimbursable Expenses shall not include Direct Personnel Expense; and (e) any general conditions costs, to the extent authorized in advance by CRC. Reimbursable Expenses will be charged to CRC"at cost" and without any"mark up". 10.3 Compensation. Compensation for Basic Services and Additional Services shall be computed in the manner set forth on Exhibit D. 10.4 Monthly Statements. Except as set forth on Exhibit D, payment for Basic Services, Additional Services, and Reimbursable Expenses shall be based on a written statement of CM's services, compensation, expenses, and charges (the"Monthly Statement")that: (a) is submitted by CM to CRC and NE by the first day of a calendar month; (b) describes all services rendered; and (c) sets forth: (i) all compensation for Basic Services and the computation of those charges; (ii) all compensation for Additional Services and the computation of those charges; (iii) all charges for Reimbursable Expenses and the actual out-of-pocket expenses comprising the Reimbursable Expenses; and (iv) a certification by CM that: (A) such payment is due to CM under this Agreement; and (B) CM has computed all compensation in the manner set forth in Exhibit D. 10.5 Monthly Payments. Each Monthly Statement that is submitted by CM to CRC and NE by the first day of a calendar month will be considered for approval at the next regular public meeting held by CRC. If a Monthly Statement is not submitted by CM to CRC and A/E by the first day of a calendar month, then CRC reserves the right to delay the consideration of that Monthly Statement until the regular public meeting held by CRC in the following calendar month, and CRC reserves the right to reject or table any Monthly Statement on any legitimate basis, including legitimate questions concerning the basis of any charge or the computation of any compensation; provided that, to the extent that: (a) charges on a Monthly Statement are separated into discrete, specified services; and (b) there are charges on such Monthly Statement for discrete, specified services that CRC does not question or dispute; then CRC shall approve the charges for the discrete, specified services for which CRC does not have any questions or disputes. Any Monthly Statement rejected or tabled will be considered for approval at the next regular meeting held by CRC. All compensation and charges that are set forth on a Monthly Statement approved by CRC will be paid to CM by the last day of the calendar month in which CRC approved the Monthly Statement. 10.6 Withholding. No deductions shall be made from CM's compensation on account of: (a) penalty, liquidated damages, or other sums withheld from payments to contractors; or (b) the cost of changes in work, other than those for which CM has been found to be liable. If any subcontractor or consultant of CM or any other person or entity acting for, through, or under CM files a notice of lien or claim with or against CRC, then, notwithstanding any other term or condition of this Agreement, CRC may: (a)withhold payment to CM in an amount equal to 200% of the lien or claim; and (b) continue withholding such amount of payment until the lien or claim is released or waived to the reasonable satisfaction of CRC. 13 10.7 Record. Records of: (a) Reimbursable Expenses; and (b) expenses with respect to: (i)Additional Services; and (ii) services performed on the basis of labor rates; shall be available to CRC or CRC's authorized representative at reasonable times and at reasonable locations. 14.9 Public Bidding. Requirements. CM hereby acknowledges that, pursuant to the laws of the State of Indiana, CM's failure to comply with the Public Bidding Requirements as described in Section 2.1 may result in the voiding of contracts, payments not being permitted, and/or other legal sanctions. ARTICLE 11 —ENVIRONMENTAL Except: (a) to the extent caused by CM or its consultants, contractors, agents, or employees; or(b) in the case of a failure of CM substantially to perform in accordance with the terms and conditions of this Agreement; CM 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 asbestos, asbestos products, polychlorinated biphenyl (PCB), or other toxic substances. ARTICLE 12—AMENDMENT This Agreement represents the entire agreement between CRC and CM and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended only by written instrument signed by both CRC and CM. Notwithstanding the foregoing, if CRC and CM desire to amend this Agreement to change or add to: (a) the Basic Services and/or the Additional Services; and/or (b) the definition of the Project; then such amendment may be effected by attaching hereto additional exhibits that: (a) are initialed by both CRC and CM; and (b) describe the: (i) change or addition to the Basic Services and/or the Additional Services; and/or (ii)the change in the definition of the Project. Accordingly, to effect such amendment, it is not necessary that the parties execute a separate instrument amending this Agreement. ARTICLE 13— NOTICE Any notice required or permitted to be given pursuant to this Agreement shall be in writing, and shall be deemed to have been given when: (a) delivered in person; or (b) sent by national overnight delivery service, with confirmation of receipt, addressed follows: to CRC at City of Carmel, Indiana, One Civic Square, Carmel, Indiana 46032, Attn: Les Olds, with a copy to: Karl P. Haas, Esq., Weilack, Somers & Haas, One Indiana Square, Suite 1500, Indianapolis, Indiana 46204, Facsimile: 317-231-9900; and to CM at , Attn: . Either party may change its address for notice from time to time by delivering notice to the other party as provided above. ARTICLE 14— MISCELLANEOUS 14.1 Choice of Laws. This Agreement shall be governed by the laws of the State of Indiana. The parties agree that, in the event of a lawsuit on this Agreement: (a)they shall waive the right to a jury trial, if any; and (b) an appropriate court in Hamilton County, Indiana shall be the venue for, and have jurisdiction over,the lawsuit. 14.2 Effect. This Agreement shall bind, and inure to the benefit of, CRC and CM, and the respective members, partners, successors, and assigns of each. This Agreement shall not be construed to create a contractual relationship with, give rights or benefits to, or create a cause of action in favor of, anyone other than the parties hereto. 14 14.3 Relationship. CM shall be an independent contractor of CRC, and nothing herein shall be deemed to create an employment relationship between CRC and CM. The employees of CM: (i) are(and shall be considered for all purposes to be) the employees or contractors of CM; and (ii) are not(and shall not be considered for any purpose to be) the employees or contractors of CRC or the City. Accordingly, CRC and the City shall have no obligations or liabilities with respect to such employees, who shall look exclusively to CM to discharge all obligations and duties as their employer or principal. CM shall indemnify and hold harmless CRC from and against all claims, suits, judgments, liabilities, losses, costs, and expenses (including, without limitation, reasonable attorneys' fees and court costs) that result from any claim for wages, benefits, or otherwise by any agent, employee, or contractor of CM. The indemnities set forth in this Section shall survive the termination of this Agreement and the completion of the Work by CM. 14.4 Assignment. CM shall not assign this Agreement or any of its obligations hereunder without the prior written consent of CRC, which consent may be withheld in CRC's sole discretion. CRC may assign this Agreement without the prior written consent to the City or any agency or instrumentality thereof. CRC otherwise shall not assign this Agreement without the prior written consent of CM, which consent may be withheld in CM's sole discretion. In the event of any assignment in accordance with this Section, CRC or CM shall remain liable to CM or CRC, respectively, for the performance such obligations. 14.5 Nondiscrimination. In connection with the performance of this Agreement, CM shall not discriminate against any employee, applicant for employment, and/or other person in the subcontracting and/or performance of the Basic Services and/or the Additional Services with respect to hire, tenure, terms, conditions, or privileges of employment or any matter directly or indirectly related to employment, because of race, age, color, religion, sex, disability, national origin, or ancestry. No notice or cure period shall apply with respect to the obligation of CM under this Section, and a default under this Section shall be an immediate event of default. 14.6 Enforceability. The invalidity or unenforceability of any term or condition of this Agreement shall not affect the other terms and conditions, and this Agreement shall be construed in all respects as if such invalid or unenforceable term or condition had not been contained herein. 14.7 Authority. Each of the undersigned persons executing this Agreement on behalf of CRC and CM represents and certifies that: (a) he or she is empowered and authorized by all necessary action of CRC and CM, respectively, to execute and deliver this Agreement; (b) he or she has full capacity, power, and authority to enter into and carry out this Agreement; (c) the execution, delivery, and performance of this Agreement have been authorized by CRC and CM, respectively; and (d) this Agreement is the legal, valid, and binding obligation of CRC and CM, respectively. 14.8 Exhibits. All Exhibits referenced herein are attached hereto and incorporated herein by reference. 14.9 Counterparts. This Agreement may be executed in separate counterparts, each of which when so executed shall be an original, but all of such counterparts shall together constitute but one and the same instrument. [Signature page to follow.] 15 IN WITNESS WHEREOF, CRC and CM have executed this Agreement as of the Effective Date. CRC: THE CITY OF CARMEL R •EV.t6 MENT •M SON By: Printed: Ron o,Id C. Ca P- ter Pr Title: f f 5+014/14 CM: STENZ CONSTRUCTION CO. ORAJ -rinted: Leo N. Stenz Ti -: Preside 16 INDEX TO EXHIBITS Exhibit A Basic Services Exhibit B The Project Exhibit C Required Insurance Coverages Exhibit D Compensation and Charges(Including Computation) EXHIBIT A Basic Services (REFER TO ARTICLE 2) EXHIBIT C Required Insurance Coverages IREFER TO ARTICLE 9) EXHIBIT D Compensation and Charges (Including Computation) Pre-Construction Phase: Direct Personnel Expenses shall be billed at the actual cost to CM, plus a labor burden factor of 25%. Reimbursable Expenses shall be billed at the actual cost to CM. Construction Phase: Direct Personnel Expenses shall be billed at the actual cost to CM, plus a labor burden factor of 25%. A 5% construction management fee shall be calculated as a percentage of the Construction Costs. General conditions shall be billed at the actual cost to CM. Additional Services: Direct Personnel Expenses shall be billed at the actual cost to CM, plus a labor burden factor of 25%. A 5% construction management fee shall be calculated as a percentage of the Construction Costs. General conditions shall be billed at the actual cost to CM. Reimbursable Expenses shall be billed at the actual cost to CM.