2008-11-10 Regular Meeting, Public Hearing and Workshop Meeting of the La Porte City Council

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§ 8.1.4 Other coverage: Construction Manager shall include All Risk Policy with Windstorm and Hail coverage for 100% value of any structure through out the Project. Coverage shall be as set forth in Exhibit A to this Agreement and as may be further defined in Article 11 of the General Conditions of the Contract. (If Umbrella Excess Liability coverage is required over the primary insurance or retention, insert the coverage limits. Commercial General Liability and Automobile Liability limits may be attained by individual policies or by a combination of primary policies and Umbrella and/or Excess Liability policies. If Project Management Protective Liability Insurance is to be provided, state the limits here.) § 8.2 INSURANCE REQUIRED OF THE OWNER In its discretion, the Owner may purchase and maintain its usual liability and property insurance to protect Owner as may cover its Property under the Umbrella policies. Owner's decision to purchase insurance shall not alter or change the primary coverage status of the insurance provided by the Construction Manager. (Paragraphs deleted) § 8.3 PERFORMANCE BOND AND PAYMENT BOND § 8.3.1 The construction Manager shall furnish payment and performance bonds covering faithful performance of the Contract and payment of obligation arising thereunder. Payment and performance bonds shall be in separate instruments. Bonds may be obtained from an insurance company licensed t do business in the State of Texas, and, for bond amounts that exceed $100,000, that hold a certificate of authority from the U.S. Secretary of the Treasury or reinsurance for liability in excess of $100,000, from a reinsurer authorized and admitted as a reinsurer in the State of Texas and that is a holder of a certificate of authority from the U.S. Secretary of the Treasury to qualify as a surety or reinsurer on obligations permitted or required under federal law and the cost thereof shall be included in the Cost of the Work. The amount of each bond shall be equal to the Guaranteed Maximum Price. If a fixed contract amount or Guaranteed Maximum Price has not yet been determine at the time this Contract is awarded, then the penal sums of the payment and performance bonds delivered to the Owner must each be in an amount equal to the project budget, as specified in the Request for Proposal or Qualifications. The Construction Manager shall deliver the bonds no later than the tenth (I O b) day after the date the Construction Manager executes the Contract, unless the Construction Manager furnishes a bid bond or other financial security acceptable to the Owner to ensure that the Construction Manager will furnish the required payment and performance bonds when a Guaranteed Maximum Price is established. § 8.3.2 The Construction Manager shall deliver the required bonds to the Owner at least one week before the commencement of any Work at the Project site. § 8.3.3 All Payment and Performance Bonds provided by Construction Manager or any subcontractor shall comply with the requirements of Article 7.19-1 of the Texas Insurance Code. All bonds will be reviewed by the Architect for compliance with the Contract Documents prior to execution of the Contract. In the event that the Architect has any questions concerning the sufficiency of the bonds, the bonds will be referred to the Owner or the Owner's representative for review and decision. § 8.3.4 All bonds shall be originals. The Construction Manager shall require the attorney -in -fact who executes the required bonds on behalf of the surety to affix thereto a certified and current copy of the Power -of —Attorney. The name, address, and telephone number of a contact person for the bonding company shall be provided. § 8.3.5 Prior to the commencement of the Work, the construction Manager shall promptly furnish a copy of the bonds, and/or shall permit a copy to be made. § 8.3.6 Bonds shall be signed by an agent resident in the State of Texas and the date of the bond shall be the date of execution of the contract. If at any time during the continuance of the Contract, the surety of the Construction Manager's bonds becomes insufficient, Owner shall have the right to require additional and sufficient sureties which the Construction Manager shall furnish to the satisfaction of the Owner within ten (10) business days after notice to Init. AIA Document A121 TMCMc — 2003 and AGC Document 565. Copyright © 1991 and 2003 by The American Institute of Architects and The Associated General Contractors of America. All rights reserved. WARNING: This document is protected by U.S. Copyright Law and International Treaties. 21 Unauthorized reproduction or distribution of this document, or any portion of it, may result in severe civil and criminal penalties, and will be / prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 16:02:34 on 12/01/2008 under Order No.1000375455_1 which expires on 10/20/2009, and is not for resale. User Notes: (4283007293)