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C O N S T R U C T I O N A G R E E M E N T
DUFFY GENERAL ENGINEERING INC.
THIS AGREEMENT is made this 10th day of March, 2026 by the CITY OF GARDEN GROVE, a municipal corporation, ("CITY"), and Duffy General Engineering Inc. , hereinafter referred to as ("CONTRACTOR").
RECITALS:
The following recitals are a substantive part of this Agreement:
1. This Agreement is entered into pursuant to Garden Grove City Council Authorization dated March 10 , 2026.
2. CITY desires to utilize the se rvices of CONTRACTOR to furnish material, equipment, and labor for the LAMPSON AVENUE AND KNOTT STREET STORM DRAIN IMPROVEMENTS PROJECT, CITY PROJECT NO. CP - 1414000
3. CONTRACTOR is qualified by virtue of experience, training, e ducation, and expertise to accomplish services.
AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:
5.1 General Conditions. CONTRACTOR certifies and agrees that all the terms, condition s and obligations of the Contract Documents as hereinafter define d, the location of the job site, and the conditions under which the work is to be performe d have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR'S investigation of all such matters and is in no way relying upon any opinions or repr esentations of CITY. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents including the Notice Inviting Bids, Special Instructions to Bidders, if any, Plans, Specifications, and CONTRACTOR's Proposal, are inco rporated in this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its subcontractors, if any, wil l be and are bound by any and all of said Contract Documents insofar as they relate i n any part or in any way, directly or indirectly, to the work covered by this Contract.
"Project" as used herein defines the entire scope of the work covered by all the Contract Documents. Anything mentioned in the Specifications and not in dicated in the Plans, or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of discrepancy in the Plans or Specifications, the matter shall be immediately submitted to CITY’S Engineer, witho ut whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTR ACTOR'S own risk and expense. The decision of the Engineer shall be final.
SECTION 5 - AGREEMENT (Continued)
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5.2 Materials and Labor. CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR'S own expense, all labo r and materials necessary, except such as are mentioned in the Specifications to be furnished by the CITY, to construct and complete the project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, CITY may settle such claims by making demand upon the surety to this Agreement. In the event of the failure or refusal of the surety to satisfy said claim s, CITY may settle them directl y and deduct the amount of payments from the Contract price and any amounts due to CONTRAC TOR. In the event CITY receives a stop notice from any laborer or material suppli er alleging non-payment by CONTRACTOR, CITY shall be entitled to deduct all of its costs a nd expenses incurred relating thereto, including but not limited to administrative and legal fees.
5.3 Project. The PROJECT is described as: L A M P S O N A V E N U E A N D K N O T T S T R E E T STORM DRAIN IMPROVEMENTS PROJECT, CITY PROJECT NO. CP - 1414000
5.4 Plans and Specifications. The work to be done is shown in a set of detailed Plans and Specifications entitled: LAMPSON AVENUE AND KNOTT STREET STORM DRAIN IMPROVEMENTS PROJECT, CITY PROJECT NO. CP - 1414000. Said Plans and Specifications and any revision, amendments or addenda thereto are attached hereto and incorporated herein as part of this Contract and referred to by reference. The work to be done must also be in accordance with the General Provisions, St andard Specifications and Standard Plans of the CITY, which are also incorporated her ein and referred to by, reference.
5.5 Time of Commencement and Completion. CONTRACTOR shall have ten (10) working days from the award of the Contract to execute the Contract and supply the CITY with all the documents and information required by the Instructions to B idders and the other Contract Documents, including but not limited to, the necessary bonds and insurance certificates and endorsements. Once the CITY receives the executed contract and all of the other properly drafted and executed documents and information, i t m a y i s s u e a N o t i c e t o Proceed to the CONTRACTOR. If CONTRACTOR refuses or fails to p rovide the required documents and information within the ten (10) city working days, the CITY may then rescind the award of the Contract and then award the Contract to the ne xt lowest responsive and responsible bidder.
The Contract time shall commence on April 20, 2026 per the Notice to Proceed issued by the City and the CONTRACTOR agrees to submit shop drawings within fourteen (14) calendar days. Further, upon receipt of the Notice to Proceed, the CONTRACTO R shall diligently prosecute the work within 40 (Forty) working days to completion as required per the plans and specifications excluding delays caused or authorized by the CITY as set forth in Sections 5.7, 5.8 and 5.9 hereof.
5.6 Time is of the Essence. Time is of the essence of this Contract.
Contractor shall have fourteen (14) calendar days f rom the award of the Contract t o execute the Contract and supply CITY with all of the documents and information required by the Instruction to Bidders and the other Contract Documents, including but not limited to, the necessary bonds and insurance certificates and endorsements. Once the CITY receives the executed Contract and all of the other properly drafted and exe cuted documents and information, it may issue a Notice to Proceed to the CONTRACTOR . If CONTRACTOR refuses or fails to execute the Contract or refuses or fails to provide the required documents and information within the fourteen (14) calendar days, the CIT Y may then rescind the SECTION 5 - AGREEMENT (Continued)
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award of the Contract and then award the Contract to the next l owest responsible and responsive bidder.
As required by the Contract Documents, CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples, and do all other thi ngs necessary and incidental to the prosecution of CONTRACTOR'S work in conformance with an approved construction progress schedule. CONTRACTOR shall coordinate the work covered by this Contract with that of all other CONTRACTORs, subcontractors and of the CITY, in a manner that will facilitate the efficient complet ion of the entire work in accor dance with Section 5.5 herein.
CITY shall have complete control of the premises on which the work is to be performed and shall have the right to decide the time or order in which the various portions of the work shall be installed or the priority of the work of other subcontractor s, and, in general, all matters representing the timely and orderly conduct of the work of CONTRACTOR on the premises.
5.7 Excusable Delays. CONTRACTOR shall be excused for any delay in the prosecution or completion of the Project caused by acts of God; inclement weat her; damages caused by fire or other casualty for which CONTRACTOR is not responsible; any act of negligence or default of CITY; failure of CITY to make timely payments to CONTRACTOR; late delivery of materials required by this CONTRACT to be furnished by CITY; co mbined action of the workers in no way caused by or resulting from default or collus ion on the part of CONTRACTOR; a lockout by CITY; or any other delays unforeseen by CONTRACTOR and beyond CONTRACTOR'S reasonable control.
CITY shall extend the time fixed in Section 5.5 herein for comp letion of the Project by the number of days CONTRACTOR has thus been delayed, provided that CONTRACTOR presents a written request to CITY for such time extension with in fifteen (15) days of the commencement of such delay and CITY finds that the delay is justified. CITY'S decision will be conclusive on the parties to this Contract. Failure to file such request within the time allowed shall be deemed a waiver of the claim by CONTRACTOR.
No claims by CONTRACTOR for additional compensation or damages for delays will be allowed unless CONTRACTOR satisfies CITY that such delays were unavoidable and not the result of any action or inaction of CONTRACTOR and that CON TRACTOR took all available measures to mitigate such damages. Extensions of time and extra compensation as a result of incurring undisclosed utilities would be determi ned in accordance with SPECIAL PROVISIONS and Section 7-4 of the Standard Specificatio n s f o r P u b l i c W o r k s Construction 2024 Edition (GREEN BOOK). The CITY’S decision wi ll be conclusive on all parties to this Contract.
5.8 Extra Work. The Contract price includes compensation for all work perform ed by CONTRACTOR, unless CONTRACTOR obtains a written change order si gned by a designated representative of CITY specifying the exact nature o f the extra work and the amount of extra compensation to be paid all as more particularl y set forth in Section 5.9 hereof.
CITY shall extend the time fixed in Section 5.5 for completion of the Project by the number of days reasonably required for CONTRACTOR to perform the extra work, as determined by CITY’S Engineer. The decision of the Engineer shall be final.
5.9 Changes in Project.
SECTION 5 - AGREEMENT (Continued)
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5.9.1 CITY may at any time, without notice to any surety, by written order designated or indicated to be a change order, make any change in the work wit hin the general scope of the Contract, including but not limited to changes:
a. In the Specifications (including drawings and designs); b. In the time, method or manner of performance of the work; c. In the CITY -furnished facilities, equipment, materials, services or site; or d. Directing acceleration in the performance of the work.
If CONTRACTOR believes that the written order issued as part of this Section 5.9.1 has caused an increase in costs or time, the CONTRACTOR shall s ubmit a written request for equitable adjustment to the CITY that includes a detailed cost breakdown and time impact analysis in sufficient detail to allow the CITY to analyze the request.
Said notice shall be submitted via certified mail within twenty (20) days of the CONTRACTOR’S receipt of the written order. CONTRACTOR’S failur e to submit the written request for equitable adjustment within the required twenty (20) days shall constitute a waiver of any potential change order or claim for said alleged change.
The CITY shall review CONTRACTOR’S request and shall provide a written response within thirty (30) days of receipt of the request either approving or denying the request.
5.9.2 A change may also be any other conflict, difficulty or issue w hich the CONTRACTOR believes caused any change to the CONTRACTOR’S costs o r project schedule, provided CONTRACTOR gives the CITY written no tice and a request for equitable adjustment that includes a detailed cost breakdown and time impact analysis in sufficient detail to allow the CITY to analy ze the request. The notice shall also state the date the CONTRACTOR became aware of the issue, circumstances and source of the issue and that CONTRACTOR regar ds the issue as a change order. Said written notice shall be delivered to t he CITY via certified mail within twenty (20) days of CONTRACTOR’S first notice of th e issue.
CONTRACTOR’S failure to submit the notice, which includes the w ritten request for equitable adjustment within the required twenty (20) days s hall constitute a waiver of ant potential change order or claim for said alleged change. The CITY shall review CONTRACTOR’S request and shall provide a written r esponse within thirty (30) days of receipt of the request either approving or denying the request.
5.9.3 Except as provided in this Section 5.9, no order, statement o r conduct of the CITY or its representatives shall be treated as a change under this Section 5.9 or entitle CONTRACTOR to an equitable adjustment.
5.9.4 Except for claims based on defective specifications, no claim for any change under paragraph 5.9.1 or 5.9.2 above shall be allowed for any work performed more than 20 days before the CONTRACTOR gives written notice as required in paragraphs
5.9.1 and 5.9.2. In the case of defective specifications for w h i c h t h e C I T Y i s responsible, the equitable adjustment shall include any increas ed direct cost CONTRACTOR reasonably incurred in attempting to comply with tho se defective specifications.
5.9.5 If CONTRACTOR intends to assert a claim for an equitable adjus tment under this Section 5.9, it must, within thirty (30) days after receipt of a denial of a request for equitable adjustment under paragraphs 5.9.1 and 5.9.2, submit a written statement SECTION 5 - AGREEMENT (Continued)
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to the CITY setting forth the general nature and monetary exten t of such claim.
The CITY may extend the 30-day period. CONTRACTOR’S failure to submit the notice of a claim, within the required thirty (30) days shall constitute a waiver of the claim by the CONTRACTOR.
5.9.6 No claim by CONTRACTOR for an equitable adjustment shall be al lowed if made after final payment under this Agreement.
5.9.7 CONTRACTOR hereby agrees to make any and all changes, furnish the materials and perform the work that CITY ma y require without nullifying t his Contract.
CONTRACTOR shall adhere strictly to the Plans and Specification s unless a change there from is authorized in writing by the CITY. Under n o condition shall CONTRACTOR make any changes to the Project, either in additions o r deductions, without the written order of the CITY and the CITY shall not pay for any extra charges made by CONTRACTOR that have not been agreed upon in advance in writing by the CITY. CONTRACTOR shall submit immedi ately to the CITY written copies of its firm's cost or credit proposal for c hange in the work.
Disputed work shall be performed as ordered in writing by the CITY and the proper cost or credit breakdowns therefor shall be submitted without d elay by CONTRACTOR to CITY.
5.10 Liquidated Damages for Delay. The parties agree that if the total work called for under this Contract, in all parts and requirements, is not completed within the time specified in Section 5.5 herein, plus the allowance made for delays or exten sions authorized under Sections 5.7, 5.8 and 5.9 herein, the CITY will sustain damage which would be extremely difficult and impractical to ascertain. The parties therefor agree that CONTRACTOR will pay to CITY the sum of Two Thousand Dollars ($2,000.00) per day for each and every calendar day during which completion of the Project is so delay ed. CONTRACTOR agrees to pay such liquidated damages and further agrees that CITY may offset the amount of liquidated damages from any monies due or that may become due C ONTRACTOR under the Contract.
5.11 Contract Price and Method of Payment. CITY agrees to pay and the CONTRACTOR agrees to accept as full consideration for the faithful performance of this Contract, subject to any subsequent additions or deductions as provided in approved change orders, the sum of Seven Hundred Eighty Seven Thousand, Four Hundred Dollars and Zero Cents ($ 787,400.00) as itemized in the bid proposal.
Progress payments shall be made to the CONTRACTOR on a monthly basis for each successive month as the work progresses. The CONTRACTOR shall be paid such sum as will bring the total payments received since the commencement of the work up to ninety-five percent (95%) of the value of the work completed, less all previous payments, provided that the CONTRACTOR submits the request for payment prior to the end of the day required to meet the payment schedule. The CITY will retain five percent ( 5%) of the amount of each such progress estimate and material cost until 30 days after the recordation of the Notice of Completion.
Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the CITY’S Engineer, stating that th e work for which payment is demanded has been performed in accordance with the terms of the Contract. Partial payments of the Contract price shall not be considered as an acceptance of any part of the work.
SECTION 5 - AGREEMENT (Continued)
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5.12 Substitution of Securities in Lieu of Retention of Funds. Pursuant to California Public Works Contract Code § 22300, the CONTRACTOR will be entitled to post approved securities with the CITY or an approved financial institution i n order to have the CITY release funds retained by the CITY to ensure performance of the Contract. CONTRACTOR shall be required to execute an addendum to this Contract together with escrow instructions and any other documents in order to effect this substitution.
5.13 Completion. Within 10 days after the contract completion date of the Proj ect, CONTRACTOR shall file with the CITY’S Engineer its affidavit st ating that all workers and persons employed, all firms supplying materials, and all subcon tractors upon the Project have been paid in full, and that there are no claims outstanding against the Project for either labor or material, except those certain items, if any, to be se t forth in an affidavit covering disputed claims, or items in connection with Stop Notices which have been filed under the provisions of the statutes of the State of California. CITY ma y require affidavits or certificates of payment and/or releases from any subcontractor, laborer or material supplier.
5.14 CONTRACTOR 's Employees Compensation
5.14.1 General Prevailing Rate. CITY has ascertained CONTRACTOR shall comply with all applicable requirements of Division 2, Part 7, Chapter 1 of the California Labor Code and all applicable federal requirements r especting the payment of prevailing wages. If there is a difference between t he minimum wage rates predetermined by the Secretary of Labor and the prevailin g wage rates determined by the Director of the Department of Industrial Rela tions (DIR) for similar classifications of labor, the CONTRACTOR and its Subcon tractors shall pay not less than the higher wage rate. The DIR will not accept lower State wage rates not specifically included in the Federal minimum wage det erminations. This includes "helper" (or other classifications based on hours of e xperience) or any other classification not appearing in the Federal Wage determin ations. Where Federal wage determinations do not contain the State wage rate determination otherwise available for use by the CONTRACTOR and Subcontractor s, the CONTRACTOR and its Subcontractors shall pay not less than the F ederal Minimum wage rate which most closely approximates the duties of the employees in question."
5.14.2 Forfeiture for Violation. CONTRACTOR shall, as a penalty to the CITY, forfeit one hundred dollars ($100.00) for each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or any subcontractor under it) less than the prevailing rate of per diem wages as set by the Direct or of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California.
5.14.3 Apprentices. Section 1777.5, 1777.6 and 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices is applicable to this Contract and the CONTRACTOR shall comply therewith; provided, h owever, that this requirement shall not apply if and/or to the extent that t he Contract of the general CONTRACTOR, or the contracts of specialty contractors n ot bidding for work through a general or prime contractor involve less than thirty thousand dollars ($30,000.00).
SECTION 5 - AGREEMENT (Continued)
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5.14.4 Workday. In the performance of this Contract, not more than eight (8) hours shall constitute a day's work, and CONTRACTOR shall not r equire more than eight (8) hours of labor in a day from any person employed by him hereunder except as provided in paragraph (5.14.2) above. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Sections 1810 et seq.) of the Labor Code of the State of California and shall forfeit to the CITY as a penalty, the s um of twenty-five Dollars ($25.00) for each worker employed in the execution of t his Contract by CONTRACTOR or any subcontractor for each calendar day during wh ich any worker is required or permitted to labor more than eight (8) ho urs in any one calendar day and forty (40) hours in any one week in violation of said Article.
CONTRACTOR shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by CONTRACTOR in connection with the Project.
5.14.5 Record of Wages: Inspection. CONTRACTOR agrees to maintain accurate payroll records showing the name, address, social security number, work classification, straight-time and overtime hours worked each da y and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed by it in connection with the Project and agrees to require that each of its subcontractors does the same. The applicable CONTR ACTOR or subcontractor or its agent having authority over such matters shall certify all payroll records as accurate. CONTRACTOR further agrees that its payrol l records and those of its subcontractors shall be available to the employee or employee's representative, the Division of Labor Standards Enforcement, an d the Division of Apprenticeship Standards and shall comply with all of the provisions of Labor Code Section 1776, in general. CONTRACTOR shall comply with all of the provisions of Labor Code Section 1776, and shall submit payroll records to th e Labor Commissioner pursuant to Labor Code section 1771.4(a)(3). The CONTRACTOR shall submit copies of certified payroll reports and cancelled checks f or l a bo r s, every two weeks to the Engineer. Certified payroll and cancel led checks submittals are due one month after start of construction and ev ery two weeks thereafter. If the certified payroll and cancelle d checks are not submitted, the CONTRACTOR will be notified that compliance is required within five (5) working days or contract work must cease. The CITY will not be responsible for any delay or acceleration charges or any incurred costs or damages as a result of the work stoppage due to CONTRACTOR’s failure to comply. Work shall be ceased in an orderly, safe fashion with all vehicle access restored. Should this not occur, CITY will correct the deficiencies and deduct the cost from funds du e to the CONTRACTOR. In addition, no progress payment shall be made until the copies of certified payroll reports and cancelled checks are submitted.
5.14.6 Contractor Registration. CONTRACTOR and its subcontractors must be registered with the California Department of Industrial Relations pursuant to Labor Code Section 1725.5. This Agreement shall not be effective unti l CONTRACTOR provides proof of registration to the CITY.
5.14.7 Posting of Job Site Notices. CONTRACTOR shall comply with the job site notices posting requirements established by the Labor Commissioner pursuant to Title 8, California Code of Regulations Section 16461(e) or oth er regulation promulgated pursuant to Labor Code Section 1771.4(a) (2).
SECTION 5 - AGREEMENT (Continued)
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5.14.8 Notice of DIR Compliance Monitoring and Enforcement. Pursuant to Labor Code Section 1771.4, this Project is subject to compliance moni toring and enforcement by the California Department of Industrial Relations.
5.15 Surety Bonds. CONTRACTOR shall, prior to entering into performance of this Agreement, furnish a performance bond, on the CITY's bond form in the amount of one hundred percent (100%) of the Contract price, to guarantee the faithful performance of the work, and a payment bond, on the CITY's form in the amount of o ne hundred percent (100%) of the Contract price, to guarantee payment of all claim s for labor and materials furnished. Bonds submitted on any form other than the CITY's f orm will be rejected. The required bonds shall be from a surety licensed to do business in the State of California and with a current A.M. Best's rating of A-, VII. This Contract sh all not become effective until such bonds are supplied and approved by the CITY."
5.16 Insurance.
5.16.1 COMMENCEMENT OF WORK. CONTRACTOR shall not commence work under this Agreement until all certificates and endorsemen ts have been received and approved by the CITY. All insurance required by t his Agreement shall contain a statement of obligation on the part of the carr ier to notify the city of any material change, cancellation, or termination at least thirty (30) days in advance. A waiver of subrogation shall be provided by the insurer for each policy waiving subrogation against CITY, its officers, officials, emp loyees, agents, and volunteers for this contract and all public agencie s from whom permits will be obtained and their directors, officers, agents, and employees, as determined by the CITY, Claims made and modified occurrence policies shall not be accepted for any policy. All Subcontractors shall be required to provi de and maintain the same insurances as required of CONTRACTOR unde r this contract. CONTRACTOR shall be required to collect and maintain all required insurances from all Subcontractors.
5.16.2 CONTRACTOR is aware of the provisions of Section 3700 of the La bor Code, which requires every employer to be insured against liability for Workers’ Compensation or undertake self-insurance in accordance with the provisions of that Code, and will comply with such provisions before commenci ng the performance of the work of this Contract.
5.16.3 CONTRACTOR and all Subcontractors shall carry workers' compensation insurance for the protection of its employees during the progress of the work. The insurer shall waive its rights of subrogation against the CITY, its officers, officials, employees, agents, and volunteers for this contract and all pub lic agencies from whom permits will be obtained and their directors, officers, ag ents, and employees, as determined by the CITY, and shall issue a waiver of subrogation.
5.16.4 Before CONTRACTOR performs any work at, or prepares or delivers materials to, the site of construction, CONTRACTOR shall furnish:
Additional Insured Endorsements, ongoing and products-completed operations, for the Commercial General Liability policy , including mobile equipment and not excluding XCU. Endorsements shall designate CITY, its officers, officials, employees, agents, and volunteers for this contract and all public agencies from whom permits will be obtained and their di rectors, officers, SECTION 5 - AGREEMENT (Continued)
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agents, and employees, as determined by the CITY, as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR. CONTRACTOR shall provide to CITY proof of insuranc e and endorsement forms that conform to CITY’s requirements, as appro ved by the CITY. ( Form CG 20 26 07 04 & Form CG 20 37 07 04 or equivalent) ( Claims made and modified occurrence policies are not acceptable; Insurance companies must be acceptable to CITY and have a minimum A.M. Be st Guide rating of A-, class VII or better, as approved by CITY).
An Additional Insured Endorsement for an Automobile Liability policy and shall designate CITY, its officers, officials, employees, agents, and volunteers for this contract and all public agencies from whom permits will be obta ined and their directors, officers, agents, and employees, as determined by th e CITY, as additional insureds for automobiles owned, leased, hired, or bo rrowed by the CONTRACTOR. CONTRACTOR shall provide to CITY proof of insuranc e and endorsement forms that conform to CITY’s requirements, as appro ved by the C I T Y . (Form CA 20 48 02 99 or equivalent) ( Claims made and modified occurrence policies are not acceptable; Insurance companies must be acceptable to CITY and have a minimum A.M. Best Guide rating of A-, class VII or better, as approved by CITY).
In the event any of CONTRACTOR’S underlying policies do not me et policy limits as required here in, CONTRACTOR shall provide the schedu le of underlying polices for a follows form excess liability p o l i c y , s t a t e t h a t t h e excess policy follows form on the insurance certificate, and an additional insured endorsement for the excess liability policy designating CITY, its officers, officials, employees, agents, and volunteers for this contract and all pub lic agencies from whom permits will be obtained and their directors, officers, ag ents, and employees, as determined by the CITY, as additional insureds. ( Claims made and modified occurrence policies are not acceptable; Insurance companies must be acceptable to CITY and have a minimum A.M. Best Guide r ating of A-, class VII or better, as approved by CITY).
For any claims related to this Project, the CONTRACTOR’s insura nce coverage shall be primary insurance as respects CITY, its officers, offi cials, employees, agents, and volunteers for this contract and all public agencie s from whom permits will be obtained and their directors, officers, agents, and employees, as determined by the CITY. Any insurance or self-insurance maintained by the CITY, its officers, officials, employees, agents, and volunteers for this contract and all public agencies from whom permits will be obtained and their di rectors, officers, agents, and employees, as determined by the CITY, shall be exce ss of the CONTRACTOR’s insurance and not contribute with it.
5.16.5 Before CONTRACTOR performs any work at, or prepares or delive rs materials to, the site of construction, CONTRACTOR shall furnish:
CONTRACTOR shall maintain all of the foregoing insurance cove rage in force until the work under this Contract is fully completed. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of CITY by CONTRACTOR under Section 5.17 of this Contract. Not withstanding nor diminishing the obligations of CONTRACTOR with respect to t he foregoing, CONTRACTOR shall subscribe for and maintain in full force and e ffect during the SECTION 5 - AGREEMENT (Continued)
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life of this Contract, the following insurance in amounts not less than the amounts specified and issued by a company admitted and licensed in California and having a Best's Guide Rating of A-Class VII or better (claims made and modified occurrence policies are not acceptable):
Workers’ Compensation As required by the State of
California.
Employer’s Liability
Not less than $1,000,000 per
accident for bodily injury or disease.
Commercial General Liability
(including on-going operations, products
- completed operations, and mobile
equipment, and not excluding XCU)
Not less than $5,000,000 per
occurrence for bodily injury,
personal injury and property
damage.
Automobile Liability, for all automobiles
including non-owned and hired vehicles
Not less than $2,000,000 combined
single limit for bodily injury and
property damage.
Follows Form Excess Liability
Required for any underlying policy
that does not meet the underlying
policy limits required herein.
If contractor maintains higher insurance limits than the minimu ms shown above, CONTRACTOR shall provide coverage for the higher limits otherwi se maintained by the CONTRACTOR.
CITY or its representatives shall at all times have the right to inspect and receive a certified copy of all said policies of insurance, including certificates and endorsements at CONTRACTORS sole cost and expense. CONTRACTOR shall pay the pr emiums on the insurance hereinabove required.
5.17 Risk and Indemnification. All work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone.
CONTRACTOR agrees to save, indemnify and keep the CITY, its Off icers, Agents, Employees, Engineers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their directors, Officers, Agents and Employees harmless against any and all liability, claims, judgments, costs and dem ands, including demands arising from injuries or death of persons (CONTRACTOR'S employe es included) and damage to property, arising directly or indirectly out of the o bligations herein undertaken or out of the operations conducted by CONTRACTOR, save and except claims or litigation arising through the sole negligence or sole willful misconduct of CITY and will make good to reimburse CITY for any expenditures, including reasonable attor neys' fees CITY may incur by reason of such matters, and if requested by CITY, will defen d any such suits at the sole cost and expense of CONTRACTOR.
5.18 Termination.
SECTION 5 - AGREEMENT (Continued)
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This Contract may be terminated in whole or in part in writing b y t h e C I T Y i n t h e event of substantial failure by the CONTRACTOR to fulfill its o bligations under this Agreement, or it may be terminated by the CITY for its convenience in the manner provided for in subsections A and B below. If termination for default or convenience is effected by the CITY, an equitable adjustment in the price provided for in this Contract shall be made, but ( 1) no amount shall be allowed for anticipated profit on unperformed services or other work, and ( 2) any payment due to the CONTRACTOR at the time of termination may be adjusted to cover any additional costs to the CITY because of the CONTRACTOR'S default. Upon receipt of a termina tion action, the CONTRACTOR shall (1) promptly discontinue all affected work (unless the no tice directs otherwise), and (2) deliver or otherwise make available to the CITY all data, drawings, spe cifications, reports, estimates, summaries and such other information and materials as may have been accumulated by the CONTRACTOR in performing this Contract whether completed or in process. Upon termination, the CITY may take over the work and may award another party an agre ement to complete the work under this Contract.
A. Termination for Default.
If the CONTRACTOR refuses or fails to prosecute the work or any separable part thereof with such diligence as will ensure its completion withi n the time specified herein, or any authorized extension thereof, or fails to perform the work in a manner required by the Contract Documents and/or industry standards, or fails to complete such work within such time as required under the Contract Documents or, if the CONTRACTOR should be ad judged as bankrupt, or is otherwise deemed insolvent by CITY based on good cause and is u nable to proceed with the work, or if the CONTRACTOR should make a general assignment for the b enefit of creditors, or if a receiver should be appointed on account of insolvency, or if th e CONTRACTOR files a petition to take advantage of any debtor’s act, or should any subcontractor violate any of the provisions of the Contract Documents, or if the CONTRACTOR should persistently or repeatedly refuse or fail, except in cases for which an authorized extension of time is provided, to supply enough properly skilled workers or proper materials to complete the work in the time sp ecified, or if the CONTRACTOR should fail to make prompt payment to subcontractors for materi al or labor, or if the CONTRACTOR should persistently disregard laws, or instructions given by CITY, or if the CONTRACTOR otherwise substantially fails to fulfill its obligations under the Contract Documents, CITY may, without prejudice to any other right or remedy, serve written notice upon the CON TRACTOR and Sureties of CITY’s intention to terminate the CONTRACTOR’s performance under the c ontract. Said notice shall contain the reasons for such intention to terminate the CONTRAC TOR’s performance under the contract, and unless, within ten (10) days after the service of such notice, such violations cease and/or satisfactory arrangements for the corrections thereof ha ve been made, the CITY may terminate CONTRACTOR’s performance under the contract and the C ONTRACTOR shall not be entitled to receive any further payment until the work is completed.
In the event of any such termination, CITY shall serve written notice thereof upon the Surety and CONTRACTOR, and the Surety shall have the right to t ake over and perform the contract. However, if the Surety, within five (5) days after th e service of a notice of termination, does not give CITY written notice of its intention to take over and perform the contract, and if it serves such notice of its intent to take over and perform the contract and does not begin performance thereof within fifteen (15) days from the date of serving said notice, CITY may take over the work and prosecute the same to completion by contract or by any other method it may deem advisable for the account and at the expense of the CONTRACTOR, and the Suret ies and/or CONTRACTOR shall be liable to CITY for any excess cost or other damage inc urred by CITY thereby. If the Surety assumes the CONTRACTOR’s terminated work, it shall take the CON TRACTOR’s place in all respects for that part and shall be paid by CITY for all work p erformed by it in accordance with the terms of the Contract Documents. If the Surety assumes the enti re contract, all money due the SECTION 5 - AGREEMENT (Continued)
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CONTRACTOR at the time of its default shall be payable to the S urety as the work progresses, subject to the terms of the contract.
CONTRACTOR hereby consents to assigning to CITY and/or CITY’s r eplacement contractor all subcontracts and other agreements of any and all subcontractors and/or suppliers that may be on the worksite and/or may be necessary to complete the work in the event of Termination for Default or Termination for Convenience, as set forth below. CONTRACTOR agrees to obtain, by way of a subcontract provision, the consent of each and every s ubcontractor and/or supplier for such assignment prior to the commencement of each such subcontractor’s and/or supplier’s work on the PROJECT.
In the event of such termination, the CONTRACTOR will be paid t he actual amount due based on unit prices or lump sums Bid and the quantity of w ork completed at the time of termination, less damages caused to CITY by acts of the CONTRAC TOR causing the termination, including but not limited to, all costs to CITY arising from pr ofessional services and attorneys' fees and all costs generated to insure or bond the work of substitut ed CONTRACTORS or subcontractors utilized to complete the work, such excess shall be paid to the CONTRACTOR. If such costs exceed the unpaid balance, the CONTRACTOR shall pay the difference to CITY promptly upon demand. On failure of the CONTRACTOR to pay, the Surety shall pay on demand by CITY. Any portion of such difference not paid by the CONTRACTOR or Surety within thirty (30) days following the mailing of a demand for such costs shall earn int erest at the maximum rate authorized by California law.
The CONTRACTOR and CITY agree that nothing in this section is i ntended to be or is a prevailing party clause as it pertains to attorney’s fees.
The foregoing provisions are in addition to and not in limitati on of any other rights or remedies under law or in equity available to CITY.
If it is later determined by CITY that the CONTRACTOR had an ex cusable reason for not performing, such as a fire, flood, or other event which was not the fault of or was beyond the control of the CONTRACTOR, CITY, after setting up a new perform ance schedule, may allow the CONTRACTOR to continue work, or treat the termination as a term ination for convenience, and the rights and obligations of the parties shall be the same as if t he termination had been issued for the convenience of CITY.
B. Termination for Convenience.
CITY may terminate the CONTRACTOR’s performance under the contr act, either in whole or in part, at its own discretion or when conditions enco untered during the work make it impossible or impracticable to proceed, or when CITY is prevent ed from proceeding with the contract by act of God, by law, or by official action of a publ ic authority, or upon a determination that such termination is in the best interest and convenience of CIT Y, or whenever CITY is prohibited from completing the work for any reason. CITY shall provide no less than ten (10) days written notice of its intent to terminate the Contract for convenience and shall provide the CONTRACTOR with consultation with CITY prior to termination.
1. Upon receipt of such written notice of termination, the CON TRACTOR shall:
a. Stop Work as specified in the written notice;
SECTION 5 - AGREEMENT (Continued)
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b. Terminate all orders and Subcontractors except as necessary to complete Work which is not terminated;
c. If directed in writing by CITY to do so, assign all right, t itle and interest in subcontracts and materials in progress, in which ca se CITY will have the right at its discretion to settle, or pay an y or all claims arising out of the termination of such Subcontractors, b ut in no event shall recovery by any CONTRACTOR include lost profits for uncompleted portions of Work;
d. Deliver or otherwise make available to CITY all data, Drawin gs, Specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONTRACTOR in performing this Contract whether completed or in process;
e. Settle outstanding liabilities and claims with the approval of CITY;
f. Complete performance of such part of the work as has not bee n terminated; and
g. Take such other actions as may be necessary, or as may be directed by CITY for the protection and preservation of the Pro ject and/or property related to the contract.
2. Upon receipt of CITY’s written notice of termination for co nvenience, and within a period of 30 to 60 days, as determined by the Engi neer at the time of termination, the CONTRACTOR shall submit to the Engineer a Termination Proposal which shall include, but is not limited to, the CONTRACTOR’s estimated costs to be incurred by the CONTRACTOR as a result of the termination for convenience, and as allowed by the Contract Documents, including all documentation to support such costs; the status of the Work at time of terminati on; the status of termination of the CONTRACTOR’s subcontractor(s) and supplier(s) agreement(s) including the amount of each said agreement, amount paid under each agreement up to the date of termination, and the amount that currently remains due and owing under each agreement for work completed as of the date of termination, if any; a list, certified as to quantity and quality, of termination inve ntory not previously disposed of, excludi ng items authorized for disposit ion by the Engineer; and any other information and/or documentation as required by the CITY.
Upon receipt of the CITY’s written notice of termination for convenience, the CONTRACTOR shall submit to the Engineer a request for final payment, pursuant to the requirements set for th in the contract. Such request shall be submitted promptly, but no late r than sixty (60) days from the effective date of termination.
3. The final payment to the CONTRACTOR after termination for convenience shall be limited to amounts due and owing under the contract at time of termination, including the following:
SECTION 5 - AGREEMENT (Continued)
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a. Any actual costs incurred by the CONTRACTOR for restocking charges;
b. The agreed upon price of protecting the work in any manner, if any, as directed by CITY;
c. The cost of settling and paying claims arising out of the te rmination of the work under subcontract agreements or orders with CITY’s approval, as specified above, exclusive of the of the amounts p aid or payable on account of goods delivered or work furnished by subcontractor prior to the effective date of the termination; and
d. The contract price allocable to the portion of the work prop erly performed or goods supplied by the CONTRACTOR as of the date of termination, as determined in accordance with the Contract Documents, reduced by any sum s previously paid to the
CONTRACTOR.
4. CITY shall have the right to withhold any portion or the wh ole of the final payment under this provision in the event there are any outstanding claims for compensation asserted by CITY against th e CONTRACTOR, or by any third party against CITY which arises out of the CONTRACTOR’s work.
5.18.1 This Contract may be terminated in whole or in part in writing by the CITY for its convenience, provided that the CONTRACTOR is given (1) not less than ten (10) calendar days written notice (delivered by certified mail, return receipt requested) of intent to terminate, and (2) an opportunity for c onsultation with the terminating party prior to termination.
5.18.2 If termination for default or convenience is effected by the C ITY, an equitable adjustment in the price provided for in this Contract shall be made, but (1) no amount shall be allowed for anticipated profit on unperformed s ervices or other work, and (2) any payment due to the CONTRACTOR at the time of termination may be adjusted to cover any additional costs to the CITY becau se of the CONTRACTOR'S default.
5.18.3 Upon receipt of a termination action under paragraph (5.18.1) or (5.18.2) above, the CONTRACTOR shall (1) promptly discontinue all affected work (unless the notice directs otherwise), and (2) deliver or otherwise make av ailable to the CITY all data, drawings, specifications, reports, estimates, summari es and such other information and materials as may have been accumulated by the C ONTRACTOR in performing this Contract whether completed or in process.
5.18.4 Upon termination under paragraphs (5.18.1) and (5.18.2) above, the CITY may take over the work and may award another party an agreement to complete the work under this Contract.
5.19 Warranty. The CONTRACTOR agrees to perform all work under this Contract i n accordance with the CITY’s designs, drawings and specifications.
SECTION 5 - AGREEMENT (Continued)
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The CONTRACTOR guarantees for a period of one (1) year from th e date of the notice of completion of the work that the completed work is free from all defects due to faulty materials, equipment or workmanship and that he shall promptly make whatever adjustments or corrections which may be necessary to cure any defects, including repairs or any damage to other parts of the system resulting from such def ects. The CITY shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections or o ther work made necessary by such defects, the CITY may do so and charge the CO NTRACTOR the cost incurred. The performance bond shall remain in full force and effect through the guarantee period.
The CONTRACTOR'S obligations under this clause are in addition to the CONTRACTOR'S other express or implied assurances of this Contract or state law and in no way diminish any other rights that the CITY may have against the CONTRACTOR for faulty materials, equipment or work.
5.20 Attorneys' Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Contract, each shall bear its own attorneys' fees , costs and necessary disbursements. Notwithstanding the foregoing, if any action is brought against the CONTRACTOR or any subcontractor to enforce a Stop Notice or Notice to Withhold, which named the CITY as a party to said action, the CITY shall be entitled to reasonable attorneys' fees, costs and necessary disbursements arising out of the defe nse of such action by the CITY. The CITY shall be entitled to deduct its costs for any Stop Notice filed, whether court action is involved or not.
5.21 Notices. Any notice required or permitted under this Contract may be g iven by ordinary mail at the address set forth below. Any party whose address changes shall notify the other party in writing.
TO CITY: TO CONTRACTOR:
City of Garden Grove. Duffy General Engineering Inc.
Public Works Department Attention: Nick Duffy
Attention: Nick Hsieh 31544 Millcreek Dr.
11222 Acacia Parkway Menifee, CA 92584
Garden Grove, CA 92842 (951) 378-7334
(714) 741-5180
(714) 741-5578 Fax
[SIGNATURES ON NEXT PAGE]
SECTION 5 - AGREEMENT (Continued)
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IN WITNESS THEREOF, these parties have executed this Construction Agreement on the day and year shown below.
Date: "CITY"
CITY OF GARDEN GROVE
B y :
Lisa L. Kim
City Manager
ATTEST:
City Clerk
Date:
"CONTRACTOR"
Duffy General Engineering Inc.
CONTRACTOR'S State License No. 1118574
(Expiration Date: 03/31/2028
CONTRACTOR'S DIR No.1001154440
Attached Copy of your DIR Certificate.
B y :
Title: Nick Duffy, Secretary
Date:
APPROVED AS TO FORM:
______________________________
Garden Grove City Attorney
If CONTRACTOR is a corporation, a Corporate
Resolution and/or Corporate Seal is required.
Date___________________________
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FAITHFUL PERFORMANCE BOND
Bond No.
Premium
NOTICE: TO WHOM IT MAY CONCERN: those we, ,
,
as Principal, and
as Surety, are held and firmly bound unto the City of Garden Grove, (CITY) in the sum of
Lawful money of the United States, for the payment of which we bind heirs, our executors, administrators, successors, and ourselves jointly and severally.
That the Surety's office is located at ,
telephone no. ; the Surety is licensed to do business in the State of California; and the California Insurance Agent's License No., address, and telephone no. are as follows:
License No.:
Address:
Telephone No.:
That the following clause must be completed if, in fact, a non -resident agent for the Surety is a party to the transaction:
Name of non-resident agent:
Non-resident agent's office address:
Telephone No.:
THE CONDITION OF THIS OBLIGATION IS SUCH, that:
1. The Principal has agreed entered into a contract attached he reto, dated the day of , 20 , with the CITY OF GARDEN GROVE for LAMPSON AVENUE AND KNOTT STREET STORM DRAIN IMPROVEMENTS PROJECT, CITY PROJECT NO. CP - 1414000.
2. If the Principal shall well and truly perform, or cause to b e performed, each and all of the requirements and obligations of the contract to be performed by the Principal, as set forth in the contract, then this bond shall be null and void; otherwise, it shall remain in full force and effect.
In the event that suit is instituted to recover on this bond, t he Surety will pay reasonable attorneys' fees.
3. Further, the Surety, for value received, hereby stipulates a nd agrees that no change, extension of time, alteration, or modification of the contract documents or of work performed shall in any way affect its obligation on this bond, and it does hereby waive notice of any change, extension of time, alteration, or modification of the contract documents, or of work to be performed.
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FAITHFUL PERFORMANCE BOND (Continues)
Executed this day of , 20___
Principal Principal
B y :
Surety
B y :
Attorney-in-Fact
California Resident Agent
B y :
Non-resident Agent - Attorney-in-Fact
STATE OF CALIFORNIA )
)
COUNTY OF ) ss.
On this day of , 20 , bef ore me, a Notary Public in and for said County, residing therein, duly commissioned and sworn, personally appeared known to me to be the Attorney-in-Fact of the , of (Corporation)
, and acknowledged that it executed the attached bond to the (State)
City of Garden Grove as such Attorney-in-Fact and as the free a ct and deed of the corporation, and that the bond was executed on behalf of the corporation by authority of its Board of Directors.
IN WITNESS WHEREOF, I have herewith set my hand and affixed my Official Seal, the day and year in this certificate first above written.
(Acknowledgment by Non-
resident Agent as Attorney-
in-Fact must be attached.)
Notary Public in and for said County and State
My Commission expires:
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LABOR AND MATERIAL BOND
Bond No.
Premium
NOTICE: TO WHOM IT MAY CONCERN: those we,
,
as Principal, and , as Surety,
are held and firmly bound unto the City of Garden Grove, California ("CITY") in the sum of ____ Dollars ($ ), lawful money of the United States, for the payment of the sum, we bind heirs, our executor s, administrators, successors, and ourselves jointly and severally.
That the Surety's office is located at ,
telephone no. ; the Surety is licensed to do busines s in the State of California; and the California Insurance Agent's License No., address, and telephone no. are as follows:
License No.:
Address:
Telephone No.:
That the following clause must be completed if, in fact, a non -resident agent for the Surety is a party to the transaction:
Name of non-resident agent:
Non-resident agent's office address:
Telephone No.:
THE CONDITION OF THIS OBLIGATION IS SUCH, that:
1. The Principal has entered into a contract attached hereto, d ated day of ________________, 20 , with the CITY OF GARDEN GROVE LAMPSON AVENUE AND KNOTT STREET STORM DRAIN IMPROVEMENTS PROJECT, CITY PROJECT NO. CP - 1414000.
2. If the Principal, its heirs, executors, administrators, succ essors, or assigns, or subcontractors, shall fail to pay for any materials, provisions, provender, or other supplies or teams, implements, or machinery used in, upon, for, or about, the performance of the improvement, or for any work or labor thereon of any kind, or for amounts due under the Unemployment Insurance Code with respect to work or labor, and provided that the claimant shall have complied with the provision of the code, the Surety or Sureties will pay for same in the amoun t not exceeding the sum specified in this bond; otherwise, the above obligation shall be void. In case suit is brought upon this bond, the Surety will pay reasonable attorneys' fees.
3. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or modification of the contract documents, or of wo rk performed, shall in any way affect its obligation on this bond, and it does hereby waive no tice of any change, extension of time, alteration, or modification of the contract documents, or of work to be performed.
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LABOR AND MATERIAL BOND (Continues)
4. This bond shall inure to the benefit of any and all persons, companies, and corporations entitled to the claims under Civil Code 3181 et seq., so as to give a ri ght of action to them or their assignees in any suit brought upon this bond.
Executed this day of , 20 .
Principal Principal
B y :
Surety
B y :
Attorney-in-Fact
California Resident Agent
B y :
Non-resident Agent - Attorney-in-Fact
STATE OF CALIFORNIA )
)
COUNTY OF ) ss.
On this day of , 20 , bef ore me, a Notary Public in and for said County and State, personally appeared
known to me to be the Attorney-in-Fact of
the , of (Corporation)
, and acknowledged that it executed the attached bond to the (State)
City of Garden Grove as such Attorney-in-Fact and as the free a ct and deed of the corporation, and that the bond was executed on behalf of the corporation by authority of its Board of Directors.
IN WITNESS WHEREOF, I have herewith set my hand and affixed my Official Seal, the day and year in this certificate first above written.
(Acknowledgment by Non-
resident Agent as Attorney-
in-Fact must be attached.)
Notary Public in and for said County and State
My Commission expires:
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ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION This Escrow Agreement is made and entered into by and between whose address is ,
hereinafter called "owner", ,
whose address is ,
hereinafter called "contractor", ,
and , whose address
is ,
hereinafter called "escrow agent."
For the consideration hereinafter set forth, the owner, contrac tor, and escrow agent agree as follows:
(1) Pursuant to Section 22300 of the Public Contract Code of th e State of California, the contractor has the option to deposit securities with the escrow agent as a substitute for retention earnings required to be withheld by the owner pursuant to the c onstruction contract entered into between the owner and contractor for in the amount of _ dated (hereafter referred to as the "contract"). Alternatively, on written request of the contractor, the owner shall make payments of the retention earnings directly to the escrow agent. When the contractor deposits the securities as a substitute for the contract earnings, the escrow agent shall notify the owner within ten days of the deposit. The market value of the securities at the time of the substitution shall be at least eq ual to the cash amount then required to be withheld as retention under the terms of the contract betwee n the owner and contractor.
S e c u r i t i e s s h a l l b e h e l d i n t h e n a m e o f t h e , and shall designate the contractor as the beneficial owner.
(2) The owner shall make progress payments to the contractor fo r those funds which otherwise would be withheld from progress payments pursuant to the contract provision, provided that the escrow agent holds securities in the form and amount specified above. (3) When the owner makes payment of retentions earned directly to the escrow agent, the escrow agent shall hold them for the benefit of the contrac tor until such time as the escrow created under this contract is terminated. The contractor may direct the investment of the payments into securities. All terms and conditions of this agreement an d the rights and responsibilities of the parties shall be equally applicable and binding when the owner pays the escrow agent directly. (4) The contractor shall be responsible for paying all fees for the expenses incurred by the escrow agent in administering the escrow account. These ex penses and payment terms shall be determined by the contractor and escrow agent.
(5) The interest earned on the securities or the money market a ccounts held in escrow and all interest on the interest shall be the sole account of c ontractor and shall be subject to withdrawal by contractor at any time and from time to time without notice to the owner. (6) The contractor shall have the right to withdraw all or any part of the principal in the escrow account only by written notice to the escrow agent accom panied by written authorization from the owner to the escrow agent that the owner consents to t he withdrawal of the amount sought to be withdrawn by contractor.
(7) The owner shall have a right to draw upon the securities in the event of default by the contractor. Upon two days' written notice to the escrow agent from the owner of the default, the
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escrow agent shall immediately convert the securities to cash a nd shall distribute the cash as instructed by the owner.
(8) Upon receipt of written notification from the owner certify ing that the contract is final and complete, and that the contractor has complied with all req uirements and procedures applicable to the contract, the escrow agent shall release to the contract or all securities and interest on deposit less escrow fees and charges of the escrow account. The escrow shall be closed immediately upon disbursement of all moneys and securities on deposit and payment of fees and charges. (9) The escrow agent shall rely on the written notifications fr om the owner and the contractor pursuant to Sections (1) to (8), inclusive, of this agreement and the owner and contractor shall hold the escrow agent harmless from the escrow agent's re lease, conversion, and disbursement of the securities and interest as set forth above. (10) The names of the persons who are authorized to give writte n notice or to receive written notice on behalf of the owner and on behalf of the cont ractor in connection with the foregoing, and exemplars of their respective signatures are as follows:
On behalf of the owner: On behalf of the contractor:
On behalf of the owner: On behalf of the contractor:
Title Title
Name Name
Signature Signature
Address Address
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On behalf of the escrow agent:
Title Title
Name Name
Signature Signature
Address Address
At the time the escrow account is opened, the owner and contrac tor shall deliver to the escrow agent a fully executed counterpart of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement by their proper officers on the date first set forth above.
Owner/Contractor Dated:
Title/Title
Approved as to Form
City Attorney