HomeMy WebLinkAbout1 - Original Submission_ 1_4557_Public Works Agreement with Vet Industrial REVPUBLIC WORKS AGREEMENT – Page 1 of 10
(Between City of Bremerton and Vet Industrial, Inc.)
PUBLIC WORKS AGREEMENT
THIS AGREEMENT is entered into between the City of Bremerton, a Washington Municipal Corporation (“City”), and Vet Industrial, Inc. (“Contractor”), whose mailing address is 1234 Charleston Beach Road, Suite B, Bremerton WA 98312.
The parties agree as follows:
1. CONTRACTOR SERVICES. The Contractor shall perform the following services for the City in the Bid Documents titled: Northlake Way NW Pressure Reducing Valve Relocation.
2. TIME OF COMPLETION. Contractor shall complete the work within 90 calendar days
of the date of issuance of the Notice to Proceed. 3. COMPENSATION. The City shall pay the Contractor the total amount of $135,432.50 with Washington State Sales Tax, for the work and services contemplated in this agreement. The
Contractor shall invoice the City monthly. The City will pay for the portion of the work described in the
invoice that has been completed by the Contractor and approved by the City. The City payment shall not constitute a waiver of the City’s right to final inspection and acceptance of the project. A. Performance Bond. Pursuant to Chapter 39.08 RCW, the Contractor shall provide
the City a performance bond for the full contract amount to be in effect until thirty
(30) days after the date of final acceptance, or until receipt of all necessary releases from the State Department of Revenue and the State Department of Labor and Industries and until settlement of any liens filed under Chapter 60.28 RCW, whichever is later.
B. Retainage. The City shall hold back a retainage in the amount of five percent (5%) of any and all payments made to contractor for a period of thirty (30) days after the date of final acceptance, or until receipt of all necessary releases from the State Department of Revenue and the State Department of Labor & Industries and until
settlement of any liens filed under Chapter 60.28 RCW, whichever is later.
C. Defective or Unauthorized Work. The City reserves its right to withhold payment from Contractor for any defective or unauthorized work. Defective or unauthorized work includes, without limitation: work and materials that do not conform to the
requirements of this agreement; and extra work and materials furnished without the
City’s written approval. If Contractor is unable, for any reason, to satisfactorily complete any portion of the work, the City may complete the work by contract or otherwise, and Contractor shall be liable to the City for any additional costs incurred by the City. “Additional costs” shall mean all reasonable costs, including
legal costs and attorney fees, incurred by the City beyond the maximum Contract
price specified above. The City further reserves its right to deduct the cost to complete the Contract work, including any Additional Costs, from any and all amounts due or to become due the Contractor.
D. Final Payment: Waiver of Claims. THE MAKING OF FINAL PAYMENT
(EXCLUDING WITHHELD RETAINAGE) SHALL PRECLUDE ALL CLAIMS, EXCEPT THOSE PREVIOUSLY AND PROPERLY MADE AND IDENTIFIED
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BY CONTRACTOR AS UNSETTLED AT THE TIME REQUEST FOR FINAL PAYMENT IS MADE.
4. INDEPENDENT CONTRACTOR. Contractor is and shall be at all times acting as an
independent contractor and not as an employee of the City. The Contractor shall secure at its expense, and shall be responsible for all payments of income tax, social security, state disability insurance compensation, unemployment compensation, and all other payroll deductions for the Contractor, officer, agents, employees and sub-contractors. The Contractor shall also secure all applicable business licenses,
if required, in connection with the contract services, including all required licenses for Contractor's
officers, agents, employees and sub-contractors. 5. TERMINATION. The City may terminate this agreement for good cause. “Good cause” shall include, without limitation, any one or more of the following events:
A. The Contractor’s refusal or failure to supply a sufficient number of properly skilled workers or proper materials for completion of the Contract work. B. The Contractor’s failure to complete the work within the time specified in this
agreement.
C. The Contractor’s failure to make full and prompt payment to sub-contractors or for material or labor.
D. The Contractor’s persistent disregard of federal, state or local laws, rules or
regulations. E. The Contractor’s filing for bankruptcy or becoming adjudged bankrupt.
If the City terminates this agreement for good cause, the Contractor shall not receive any further
monies due under this agreement until the Contract work is completed. 6. PREVAILING WAGES. Contractor shall file a “Statement of Intent to Pay Prevailing Wages” with the State of Washington Department of Labor & Industries prior to commencing the
Contract work. Contractor shall pay prevailing wages and comply with Chapter 39.12 of the Revised
Code of Washington, as well as any other applicable prevailing wage rate provisions. The latest prevailing wage rate revision issued by the Department of Labor and Industries is attached. 7. CHANGES. The City may issue a written work change directive for any change in the
Contract work during the performance of this agreement. If the Contractor determines, for any reason,
that a change order is necessary, Contractor must submit a written change order request to the City’s project manager within two (2) business days of the date the Contractor knew or should have known of the facts and events giving rise to the requested change. If the City determines that the change increases or decreases the Contractor’s costs or time for performance, the City will make an equitable adjustment.
The City will attempt, in good faith, to reach agreement with the Contractor on all equitable adjustments.
However, if the parties are unable to agree, the City will determine the equitable adjustment as it deems appropriate. The Contractor shall proceed with the change order work upon receiving a written work change directive or change order from the City. If the Contractor fails to require a change order within the time allowed, the Contractor waives its right to make any claim or submit subsequent change order
requests for that portion of the contract work. If the Contractor disagrees with the equitable adjustment
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the Contractor must complete the change order work; however, the Contractor may elect to protest the adjustment as provided below:
A. Procedure and Protest by the Contractor. If the Contractor disagrees with anything
required by a work change directive or change order, including any direction, instruction, interpretation, or determination by the City, the Contractor shall: 1. Immediately give a signed written notice of protest to the City;
2. Supplement the written protest within fourteen (14) calendar days with a written statement that provides the following information: a. The date of the Contract’s protest.
b. The nature and circumstances that caused the protest.
c. The provisions in this agreement that support the protest. d. The estimated dollar cost, if any, of the protested work and how that estimate was determined. e. An analysis of the progress schedule showing the schedule change
or disruption if the Contractor is asserting a schedule change or
disruption. The Contractor shall keep complete records of extra costs and time incurred as a result of the protested work. The City shall have access to any of the
Contractor’s records needed for evaluating the protest.
3. The City will evaluate all protests, provided the procedures in this section are followed. If the City determines that a protest is valid, the City will adjust payment for work or time by an equitable adjustment. No adjustment
will be made for an invalid protest.
B. Contractor’s Duty to Complete Protested Work. In spite of any protest, the Contractor shall proceed promptly with the work as the City has ordered.
C. Contractor’s Acceptance of Changes. The Contractor accepts all requirements of a
change order by: (1) endorsing it, (2) writing a separate acceptance, or (3) not protesting in the way this section provides. A change order that is accepted by Contractor as provided in this section shall constitute full payment and final settlement of all claims for contract time and for direct, indirect and consequential
costs, including costs of delays related to any work, either covered or affected by
the change. D. Failure to Protest Constitutes Waiver. By not protesting as this section provides, the Contractor also waives any additional entitlement and accepts from the City any
written order (including directions, instructions, interpretations, and determination).
E. Failure to Follow Procedures Constitutes Waiver. By failing to follow the procedures of this section, the Contractor completely waives any claims for protested work and accepts form the City any written order (including directions,
instructions, interpretations, and determination).
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8. CLAIMS. The Contractor shall give written notice to the City of all claims other than change orders within fourteen (14) calendar days of the occurrence of the events giving rise to the claims. Any claim for damages, additional payment for any reason, or extension of time, whether under this
agreement or otherwise, shall be conclusively deemed to have been waived by the Contractor unless a
timely written claim is made in strict accordance with the applicable provisions of this agreement; or, if (and only if) no such provision is applicable, unless that claim is set forth in detail in writing and received by the City within seven (7) calendar days from the date Contractor knew, or should have known, of the facts giving rise to the claim. At a minimum, a Contractor’s written claim must include the information
set forth regarding protests in Section 7.A.2.a.-e.
FAILURE TO PROVIDE A COMPLETE, WRITTEN NOTIFICATION OF CLAIM WITHIN THE TIME ALLOWED SHALL BE AN ABSOLUTE WAIVER OF ANY CLAIMS ARISING IN ANY WAY FROM THE FACTS OR EVENTS SURROUNDING THAT CLAIM OR CAUSED BY THAT
DELAY.
Contractor must, in any event, file any claim or bring any suit arising from or connected with this agreement within 120 calendar days from the date the contract work is complete.
9. WARRANTY. The Contractor shall correct all defects in workmanship and materials
within one year from the date of the City’s acceptance of the Contract work. When defects are corrected, the warranty for that portion of the work shall extend for one year form the date such correction is completed and accepted by the City. The Contractor shall begin to correct any defects within seven (7) calendar days of its receipt of notice from the City of the defect. If the Contractor does not accomplish
the corrections within a reasonable time, the City may complete the corrections and the Contractor shall
pay all costs incurred by the City in order to accomplish the correction. 10. INDEMNIFICATION. Contractor shall defend, indemnify and hold the City, its officer, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or
suits including all legal costs and attorney fees, arising out of or in connection with the performance of
this agreement, except for injuries and damages caused by the City’s sole negligence. The City’s inspection or acceptance of any of Contractor’s work when completed shall not be grounds to avoid any of these covenants of indemnification.
Should a court of competent jurisdiction determine that this agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the City, its officials, employees, agents and volunteers, the Contractor’s liability hereunder shall be only to the extent
of the Contractor’s negligence.
IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THIS INDEMNIFICATION CONSTITUTES THE CONTRACTOR’S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSE OF THIS
INDEMNIFICATION. THE PARTIES ACKNOWLEDGE THAT THEY HAVE MUTUALLY
NEGOTIATED THIS WAIVER. The provisions of this section shall survive the expiration or termination of this agreement.
11. INSURANCE. The Contractor shall procure and maintain for the duration of this
agreement insurance of the types and in the amounts described below against claims for injuries to
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persons or damage to property which may arise from or in connection with the performance of the work by the Contractor, its agents, representative, employees, sub-consultants or sub-contractors.
Before beginning work on the project described in this agreement, the Contractor shall provide a
Certificate of Insurance evidencing: A. Automobile Liability insurance with limits no less than $1,000,000 combined single limit per accident for bodily injury and property damage; and
B. Commercial General Liability insurance written on an occurrence basis with limits no less than $1,000,000 combined single limit per occurrence and $2,000,000 general aggregate for personal injury, bodily injury and property damage. Coverage shall include but not be limited to: blanket contractual;
products/completed operations/broad form property damage; explosion, collapse
and underground (XCU); and C. Excess Liability insurance with limits not less than $1,000,000 per occurrence and aggregate; and
D. Workers Compensation insurance as statutorily required by the Industrial Insurance Act of the State of Washington, Title 51, Revised Code of Washington and employer's liability with limits not less than $1,000,000.
Any payment of deductible or self-insured retention shall be the sole responsibility of the
Contractor. The City, its officials, employees, agents and volunteers shall be named as an additional insured on the insurance policy, as respects work performed by or on behalf of the Contractor and a copy
of the endorsement naming the City as additional insured shall be attached to the Certificate of Insurance.
The Contractor’s insurance shall contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer’s liability.
The Consultant's insurance shall be primary and non-contributory insurance as respects the City and shall contain a waiver of subrogation against the City for claims arising out of any operations, liabilities and obligations to which coverage applies. It shall be an affirmative obligation upon Consultant to advise the City’s Risk Manager by fax at (360) 473-5161, or by certified mail, return receipt requested
to City of Bremerton, attn: Risk Management, 345 6th Street, Suite 100, Bremerton, WA 98337 within
two days of the cancellation, suspension or substantive change of any insurance policy set out herein, and failure to do so shall be construed to be a breach of this Agreement. The City reserves the right to receive a certified copy of all the required insurance policies.
12. MISCELLANEOUS.
A. Equal Employment Opportunity Statement. In the hiring of employees for the
performance of work under this Agreement, the Contractor, its subcontractors, or any person acting on behalf of Contractor shall not discriminate in any employment practice on the basis of age (40+), sex,
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race, creed, color, national origin, sexual orientation/gender identity, marital status, military status, or the presence of any physical, mental or sensory disability.
B. ADA Statement. The City of Bremerton does not discriminate on the basis of
disability in programs and activities, which it operates pursuant to the requirements of the Americans with Disabilities Act of 1990, and ADA Amendments Act. This policy extends to both employment and admission to participation in the programs, services and activities of the City of Bremerton. Reasonable accommodation for employees or applicants for employment will be provided.
C. Compliance with Laws. Contractor shall comply with all federal, state and local laws, rules and regulations throughout every aspect in the performance of this agreement. D. Work Performed at Contractor’s Risk. Contractor shall take all precautions
necessary and shall be responsible for the safety of its employees, agents, and subcontractors in the
performance of this agreement. All work shall be done at Contractor’s own risk, and Contractor shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work.
E. Nonwaiver of Breach. The failure of the City to insist upon strict performance of
any of the terms and rights contained herein, or to exercise any option herein conferred in one or more instances, shall not be constructed to be a waiver or relinquishment of those terms and rights and they shall remain in full force and effect
F. Governing Law. This agreement shall be governed and construed in accordance
with the laws of the State of Washington. If any dispute arises between the City and Contractor under any of the provisions of this agreement, resolution of that dispute shall be available only through the jurisdiction, venue and rules of the Kitsap County Superior Court, Kitsap County, Washington.
G. Attorney’s Fees. To the extent not inconsistent with RCW 39.04.240, in any claim
or lawsuit for damages arising from the parties’ performance of this agreement, each party shall be responsible for payment of its own legal costs and attorney’s fees incurred in defending or bringing such claim or lawsuit; however, nothing in this subsection shall limit the City’s right to indemnification under Section 10 of this agreement.
H. Written Notice. All communications regarding this agreement shall be sent to the parties at the addresses listed on the signature page of this agreement, unless otherwise notified. Any written notice shall become effective upon delivery, but in any event three (3) calendar days after the date of mailing by registered or certified mail, and shall be deemed sufficiently given if sent to the addressee at
the address stated on this agreement.
I. Assignment. Any assignment of this agreement by the Contractor without the written consent of the City shall be void.
J. Modification. No waiver, alteration, or modification of any of the provisions of
this agreement shall be binding unless in writing and signed by a duly authorized representative of the City and Contractor. K. Severability. If any one or more sections, sub-sections, or sentences of this
agreement are held to be unconstitutional or invalid, that decision shall not affect the validity of the
remaining portion of this agreement and the remainder shall remain in full force and effect.
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L. Entire Agreement. The written provisions and terms of this agreement, together with any attached Exhibits, supersede all prior verbal statements by any representative of the City, and
those statements shall not be construed as forming a part of or altering in any manner this agreement.
This agreement and any attached Exhibits contain the entire agreement between the parties. Should any language in any Exhibit to this agreement conflict with any language contained in this agreement, the terms of this agreement shall prevail.
M. Liquidated Damages. City and the Contractor recognize that time is of the essence
for this Agreement and that the City will suffer financial loss if the work is not completed by August 15, 2022, plus any extensions mutually agreed upon by the Parties as allowed under this Agreement. The Parties also recognize the delays, expense and difficulties involved in proving in a legal proceeding the actual loss suffered by the City if the work is not completed on time. Accordingly, instead of requiring
any such proof, Contractor shall pay the City liquidated damages in the amount of $500 per day which
will begin accumulating the day after the Substantial Completion date. IN WITNESS WHEREOF, the parties below have executed this agreement.
VET INDUSTRIAL, INC.: THE CITY OF BREMERTON
Print Name: Ike Holmes ______ Print Name: Greg Wheeler Title: President Title: Mayor
DATE DATE Notices to be sent to: Notices to be sent to:
VET INDUSTRIAL, INC.: CITY OF BREMERTON:
Paula L. Sunkel Angela Hoover 1234 Charleston Beach Rd. Suite B 345 6th Street, Suite 100 Bremerton, WA 98312 Bremerton, WA 98337
(360) 377-2955 (360) 473-2348
APPROVED AS TO FORM:
Kylie J. Finnell Bremerton City Attorney
ATTEST:
Angela Hoover, City Clerk
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2/18/2022 2/18/2022
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