11-14-16 Regular Meeting of the La Porte City Council

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In the event the lowest and most responsible bid for the construction of the Project is an amount in excess of the sum allocated in the construction line item of the budget, detailed in Exhibit B of this Agreement, La Porte shall have the following four (4) options: a. La Porte shall notify the County of the bid and request in writing additional funds to fund the construction costs to meet the lowest and most responsible bid received by La Porte. If the County approves the use of additional funds to meet the lowest and most responsible bid, then La Porte, upon receipt of such notification, shall proceed to let the contract, incorporating all required provisions, and continue with construction of the Project; or b. La Porte shall notify the County of the bid and agree in writing to pay the additional cost of the Project. In the event La Porte agrees in writing to pay the additional costs, then and in that event, La Porte shall proceed to let the contract and continue with the construction of the Project. If La Porte fails to agree in writing to pay said additional costs and the County fails to use contingency funds, then and in that event, La Porte may reject all bids and elect not to proceed with the letting of the contract and terminate the Project without any further obligations to the County; or c. La Porte shall notify the County of the bid and undertake to negotiate with the County for the County to agree in writing to reduce or delete specific items in the bid proposal so that bids will be within the amount available for construction. In the event the County agrees in writing to reduce or delete items in the bid proposal, La Porte shall re-bid the Project and proceed as if it were the original bid; or d. La Porte shall reject all bids and elect not to proceed with the letting of the contract and terminate the Project, giving the County written notice of its termination. 4. Construction Contract and Subcontractor Written Agreements Within fifteen (15) days after notification by the County to La Porte that the bid has been approved, La Porte shall provide written notice of award to the lowest and most responsible bidder, in accordance with applicable Federal, State and local procurement procedures and regulations. La Porte shall contract directly with its Contractor, incorporating all requirements of this Agreement herein. The contract between La Porte and its Contractor and all contracts between the Contractor and its Subcontractors shall be in accordance with the guidelines of this Agreement and with all applicable FTA regulations and applicable sections of OMB Super Circular 2 CFR Part 200. La Porte shall be responsible for incorporating into the construction contract any and all FTA and County Harris County Community Services Department Construction Policies and Guidelines,Exhibit C. The construction contract must contain the required insurance and bonding; in lieu of one or more of the bonds otherwise required pursuant to Section VI (D) of this Agreement, La Porte may provide or cause to be provided one or more irrevocable letters of credit in favor of the County in a form acceptable to the County. Page 4 of 58