D-1
CONSTRUCTION CONTRACT
FOR
CONSTRUCTION OF
DOWNTOWN (ZONE 4) STREET OVERLAY AND WALKWAY
IMPROVEMENTS
(CIP C2217)
CITY OF LAGUNA BEACH
THIS Agreement, made and entered into this day of ,2026, by and between CITY OF LAGUNA BEACH, a municipal corporation of the State of California, hereinafter referred to as "CITY" and CT&T Concrete Paving, Inc., Contractor's License No. 875627, hereinafter referred to as "CONTRACTOR,"
WITNESSETH:
That the CITY and the CONTRACTOR, for the consideration hereinafter stated, mutually agree as follows:
1. The complete Agreement includes all of the contract documents, which are incorporated herein by this reference, to wit: Notice Inviting Bids, Instructions to Bidders, Bid Form and Proposal to the City of Laguna Beach, Standard Provisions, General Provisions, Special Provisions, Drawings, Plans, Performance Bond, Labor and Material Bond, Certificate of Insurance, this Agreement and all modifications and amendments thereto. The Agreement documents are complementary, and that which is required by one shall be as binding as if required by all. In the event of any discrepancy among Agreement documents, precedence shall be determined as specified in Section 2-5.2 of the Standard Specifications for Public Works Construction.
2. In the performance of the services under the Agreement, CONTRACTOR shall be, and is, an independent contractor, and is not an agent or employee of the CITY. The CITY shall not in any way or for any purpose become, or be deemed to be, a partner of CONTRACTOR in its business or otherwise, or a joint venturer, or a member of any joint enterprise with CONTRACTOR. CONTRACTOR shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of the CITY. The CONTRACTOR has and shall retain the right to exercise full control and supervision of the services, and full control over the employment, direction, compensation and discharge of all persons assisting CONTRACTOR in the performance of required services. CONTRACTOR shall be solely responsible and hold the CITY harmless for all matters relating to the payment of CONTRACTOR’s employees, including compliance with Social Security, withholding and all other regulations governing such matters. Neither CONTRACTOR nor any of CONTRACTOR’s employees shall, at any time, or in any way, be entitled to any sick leave, vacation, retirement or other fringe benefits from the CITY; and neither the CITY nor any of its employees shall be paid by the CITY at the rate of time and one-half for working in excess of forty hours in any one week or more than eight hours in any one day. Neither CONTRACTOR Attachment 2
4 D-2
nor any of CONTRACTOR’s employees shall be included in the competitive service, have any property right to any position, or any of the rights an employee may have in the event of termination of this Agreement.
3. CONTRACTOR shall perform everything required to be performed, shall provide and furnish all the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required for the following work of improvements: ZONE 4 STREET OVERLAY AND WALKWAY IMPROVEMENTS (CIP 2217), all in accordance with bidders proposal dated May 28, 2026, and the Agreement documents.
4. CONTRACTOR agrees to perform all the said work and furnish all the said materials at its own cost and expense, such as are set forth in the specifications to be furnished by the CITY, necessary to construct and complete in a good workmanlike and substantial manner and to the satisfaction of the City Engineer of the CITY, the work hereinafter set forth in accordance with the plans and the specifications therefor adopted by the CITY and as prepared by the CITY.
In compliance with Public Contracts Code, Chapter 4, Section 12169 and Section 12213, CITY requires the CONTRACTOR to provide, prior to final payment by CITY, a certification in writing of the minimum, or the exact, percentage of recycled content in the products used in the performance of the work of improvement.
5. CITY agrees to pay and CONTRACTOR agrees to accept in full payment for this work of improvement above agreed to be performed, the stipulated sum of Six Hundred Twenty-One Thousand Forty-One Dollars and Ninety-Four Cents ($621,041.94).
CITY agrees to make monthly payments and final payment in accordance with the method set forth in the specifications and other Agreement documents.
CONTRACTOR acknowledges and agrees that if this Agreement involves a project specified in Section 9203 of the California Public Contract Code with a Contract price that exceeds five thousand dollars ($5,000), City will withhold five percent (5%) of the Contract price until the Notice of Completion is issued and recorded.
6. CONTRACTOR agrees to commence construction of the work provided for herein within Ten (10) working days after the date of Notice to Proceed, and to continue in a diligent and workmanlike manner without interruption, and to complete the construction thereof within Forty (40) consecutive working days from the date of Notice to Proceed.
7. Time is of the essence of this Agreement, and it is agreed that it would be impracticable or extremely difficult to ascertain the extent of actual loss or damage, which the CITY will sustain by reason of any delay in the performance of this Agreement. It is, therefore, agreed that CONTRACTOR will pay as liquidated damages to the CITY the following sum: Two Thousand Dollars ($ 2,000.00) for each day's delay beyond the time herein prescribed for finishing work. If liquidated damages are not paid, as designated by the CITY, the CITY may deduct the amount thereof from any money due or that may become due the CONTRACTOR under this agreement in addition to any other remedy available to CITY. The CONTRACTOR 5 D-3
shall not be assessed liquidated damages for any delay caused by the failure of a public utility to relocate or remove an existing utility required for the performance of this Agreement so long as such failure is not caused by CONTRACTOR’S breach of its obligations hereunder.
8. CONTRACTOR shall pay, and will require all of its subcontractors to pay, all employees on said work a salary or wage at least equal to the prevailing salary or wage established for such work as set forth in the wage determinations and wage standards applicable to this work, a copy of which is on file in the Public Works office. Travel and subsistence pay shall be paid in accordance with Labor Code Section 1773.8. Pursuant to Labor Code section 1771.1, no subcontractor may be listed on a bid proposal for any work related to the Project unless registered with the California Department of Industrial Relations (“DIR”). Furthermore, Contractor is hereby notified that no subcontractor may be awarded a contract for any work related to the Project unless registered with the DIR. Pursuant to Labor Code section 1771.4, Contractor is hereby notified that the Project is subject to compliance monitoring and enforcement by the DIR. Contractor will maintain and will require all subcontractors to maintain valid and current DIR Public Works Contractor registration during the term of this Construction Services Agreement. Contractor shall notify the City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contractor’s or any of its subcontractor’s DIR registration status has been suspended, revoked, expired, or otherwise changed.
9. CONTRACTOR will forfeit to the CITY, as a penalty, Two Hundred Dollars ($200) for each calendar day or portion thereof for each worker paid (either by him or any subcontractors under him) less than the prevailing rate described above on the work provided for in this Agreement, all in accordance with Section 1775 of the Labor Code of the State of California.
10. In the performance of this Agreement, not more than eight (8) hours shall constitute a day's work and not more than forty (40) hours constitute any one calendar week, and the CONTRACTOR will not require more than eight (8) hours of labor in a day or more than forty (40) hours of labor in a week from any person employed by CONTRACTOR hereunder, except as provided in the Labor Code of the State of California. CONTRACTOR will conform to Article 3, Chapter 1, Part 7 (Sections 1810, et. seq.) of the Labor Code of the State of California, and it is agreed that the CONTRACTOR will forfeit to the CITY as a penalty the sum of Two Hundred Dollars ($200) for each worker employed in the execution of this Contract by the CONTRACTOR or any subcontractor for each calendar day or calendar week during which any worker is required or permitted to labor more than eight (8) and forty (40) hours, respectively, in violation of said article.
11. CONTRACTOR, by executing this Agreement, hereby certifies: "I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this AGREEMENT."
CONTRACTOR further agrees to require all subcontractors to carry Workers’ Compensation Insurance as required by the Labor Code of the State of California. 6 D-4
12. CONTRACTOR will, prior to the execution of this Agreement, furnish two bonds approved by the CITY, one in the amount of One Hundred Percent (100%) of the Contract price, to guarantee the faithful performance of the work, and one in the amount of One Hundred Percent (100%) of the Contract price to guarantee payment of all claims for labor and materials furnished. This Agreement shall not become effective until such bonds are supplied to and approved by the CITY.
13. If any action or arbitration is filed by either party to enforce or determine rights under this Agreement or any other Agreement document, the prevailing party shall be entitled to recover its reasonable attorneys' fees in addition to any other relief stated by the Court or arbitrator.
14. CONTRACTOR certifies that each and every one of its employees, and every employee of its subcontractors, is not “ineligible” as the term is defined in Labor Code section 1777.1.
15. In entering into this Agreement, the Contractor or subcontractor to supply goods, services or materials pursuant to this Agreement offers and agrees to assign to the City all rights, title and interest in and to all causes of action it may have under section 4 of the Clayton Act (15 U.S.C.
Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with section 16700) of Part 2 of Division 7 of the Business and Professional Code), arising from purchases of goods, services or materials pursuant to the Contract or subcontracts. This assignment shall be made and become effective at the time CITY tenders final payment to CONTRACTOR, without further acknowledgment by the parties.
16. CONTRACTOR acknowledges and agrees that if this Agreement involves a dollar amount greater than or a number of working days greater than that specified in Labor Code Section 1777.5, then the provisions of Labor Code Section 1777.5 govern this Agreement. It shall be CONTRACTOR’S responsibility to become fully acquainted and ensure compliance with Labor Code Section 1777.5 for all apprenticable occupations.
17. CONTRACTOR acknowledges the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including but not limited to disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with Section 5200) of Part 5 of Division 9 of the Family Code. CONTRACTOR further acknowledges that, to the best of its knowledge, it has fully complied with the earnings assignment order of all employees and has provided the names of all new employees to the New Hire Registry maintained by the Employment Development Department.
7 D-5
IN WITNESS WHEREOF, the said Contractor, the City Manager and City Clerk of the City have executed this AGREEMENT pursuant to the City Council action of the day and year first above written.
Signature:
Name: Jose Carvajal
Title: President and Secretary
Company: CT&T Concrete Paving, Inc.
ATTEST:
_________________________
Ann Marie McKay, City Clerk CITY OF LAGUNA BEACH
A Municipal Corporation
Dave Kiff, City Manager
8 D-6
CORPORATE CERTIFICATE
I, , certify that I am
the of the corporation named as CONTRACTOR
in the foregoing Agreement; that , who signed said
Contract on behalf of the CONTRACTOR was then the of
said corporation; and that said Agreement was duly signed for and in behalf of said corporation by authority of its governing body and is within the scope of its corporate powers.
(Corporate Seal)
9 D-7
FAITHFUL PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS: That
WHEREAS, the City Council of the CITY OF LAGUNA BEACH, has awarded to , hereinafter designated as "Principal," an Agreement for ZONE 4 STREET OVERLAY AND WALKWAY IMPROVEMENTS (CIP C2217), in the City of Laguna Beach, in accordance with the plans and specifications and other contract documents therefor; and
WHEREAS, said Principal is required under the terms of said Agreement to furnish a bond for the faithful performance of said Agreement;
NOW, THEREFORE, we, the Principal, and ,
organized and doing business under and by virtue of the laws of the State of , and licensed to transact surety business in the State of California, as Surety, are held and firmly bound unto the CITY OF LAGUNA BEACH, hereinafter called the "Obligee," in the penal sum of Dollars ($ ), lawful
money of the United State of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators and successors, jointly and severally and firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that if the above-bounden Principal, its heirs, executors, administrators, successors or assigns shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in said Agreement, and any alteration thereof made as therein provided, on its part to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the Obligee, its officers and agents, as therein stipulated, this obligation shall become null and void; otherwise, it shall be and remain in full force and virtue. And, the said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Agreement, or to the work to be performed thereunder, or the specifications accompanying the same, shall in any wise affect its obligation on this bond, and it does thereby waive notice of any such change, extension of time, alternation or addition to the terms of the Agreement, or to the work or to the specifications, and said Surety agrees that in case the CITY must call on this bond, Surety will pay CITY reasonable attorneys' fees and administrative costs incurred by the CITY related to the termination of the CONTRACTOR and securing the CITY’S rights hereunder. 10 D-8
IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the Principal and Surety above named, on the day of , 20___.
Signature:
Name:
Title:
(Surety Seal) Company:
ADDRESS & TELEPHONE NUMBER
OF LOCAL BOND COMPANY
REPRESENTATIVE:
(Address - Local Representative)
(Telephone Number - Local Representative)
PRINCIPAL
(Principal Seal)
(Attach Acknowledgments for By
Surety and Principal)
Attorney-in-Fact
11 D-9
LABOR AND MATERIAL BOND
KNOW ALL PERSONS BY THESE PRESENTS: That
WHEREAS, the City Council of the CITY OF LAGUNA BEACH has awarded to , hereinafter designated as "Principal," an Agreement for ZONE 4 STREET OVERLAY AND WALKWAY IMPROVEMENTS (CIP C2217), in the City of Laguna Beach, in accordance with the plans and specifications, and other contract documents therefor; and
WHEREAS, said Principal is required to furnish a bond in connection with said Agreement providing that if said Principal or any of its subcontractors shall fail to pay for any materials, provisions, provender or other supplies, or teams used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Act, the Surety on this bond will pay the same to the extent hereinafter set forth;
NOW, THEREFORE, we, the Principal, and ,
organized and doing business under and by virtue of the laws of the State of , and licensed to transact business in the State of California, as Surety, are held and firmly bound unto the CITY OF LAGUNA BEACH in the penal sum of Dollars ($
), lawful money of the United States of America, for the payment of which sum well and truly to be made we bind ourselves, our heirs, executors, administrators, successors, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION is such that if said Principal, its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay for any materials, provisions, provender or other supplies or teams used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act as required by the provisions of Sections 4200-4208, inclusive, of the Government Code, then said Surety will pay the same in or to an amount not exceeding the amount hereinabove set forth, and also will pay, in case suit is brought upon this bond, such reasonable attorneys' fees as shall be fixed by the Court, awarded and taxed as in the above-mentioned statute provided.
This bond shall inure to the benefit of any and all persons, companies and corporations entitled to file claims under Section 1192.1 of the California Code of Civil Procedure, so as to give a right to action to them or their assigns in any suit brought upon this bond, and the said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Agreement, or the work to be performed thereunder, or the specifications accompanying the same, shall in any wise affect its obligation on this bond, and it does hereby waive notice of any such change, extension of time, alternation or addition to the terms of the Agreement, or to the work, or to the specifications, and said Surety agrees that in case the CITY must call on this bond, Surety will pay CITY reasonable attorneys' fees and administrative costs incurred by the CITY related to the termination of the CONTRACTOR and securing the CITY’S rights hereunder. 12 D-10
IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the Principal and Surety above named on the day of , 20___.
Signature:
Name:
Title:
(Surety Seal) Company:
ADDRESS & TELEPHONE NUMBER
OF LOCAL BOND COMPANY
REPRESENTATIVE:
(Address - Local Representative)
(Tel. Number - Local Representative)
PRINCIPAL
(Principal Seal)
(Attach Acknowledgments for By
Surety and Principal)
Attorney-in-Fact
13 D-11
SAMPLE CERTIFICATE OF INSURANCE AND ENDORSEMENT
Description of Contract:
Type of Insurance: General Liability, Automobile Liability, Excess Liability, Workers’ Compensation
THIS IS TO CERTIFY that the following numbered policies have been issued by the below-stated company in conformance with the limits and requirements as set forth in the General Provisions (Section "C").
NOTE: CONTRACTOR MUST PROVIDE WRITTEN CONFIRMATION
NAMING THE CITY AS ADDITIONAL INSURED UNDER
CONTRACTOR’S INSURANCE POLICIES, AS WELL AS
PROVIDING CERTIFICATES ACCEPTABLE TO THE CITY
(ACCORD FORM OR SIMILAR) EVIDENCING AMOUNTS OF
INSURANCE COVERAGE HELD.
The insurance company is required to give at least thirty (30) days written notice by registered mail to the City of Laguna Beach prior to any material change or cancellation of said policy or policies. Said policies shall remain in force and effect for one year after completion of, and Citys acceptance of the work performed pursuant to the contract.
TYPE
EFFECTIVE
POLICY NO'S.
EXPIRATION
DATE DATE AMOUNT
GENERAL
LIABILITY
AUTOMOBILE
LIABILITY
EXCESS
LIABILITY
WORKER'S
COMPENSATION
Note: If Workers’ Compensation Insurance is provided by a different agency, a form must be provided showing this coverage.
14 D-12
ENDORSEMENT:
As additional insured under these policies, this insurance shall cover and apply to the City of Laguna Beach and its representatives and consultants, and each of its officers, and agents, only while acting in their capacity as such, and only as respects operations of the original named insured, its subcontractors, agents and employees in the performance of the above-referenced Contract; Provided, however, that if the loss or damage is ultimately determined to be the proximate result of the sole negligence of one or more of the aforesaid additional named insured, this insurance shall not apply to said party.
This endorsement shall not operate to increase the Company's total limits of liability hereunder. The insurance company hereby waives its rights of subrogation against the additional named insureds.
Named Insured Insurance Company
Street Number Street Number
City and State City and State
By
Authorized Representative
Attach Acknowledgment
ACCORD (OR SIMILAR) FORM AND ANY OTHER FORM EVIDENCING
REQUIRED INSURANCE COVERAGE, SUCH AS FOR WORKERS
COMPENSATION INSURANCE, MUST ALSO BE ATTACHED, AS
INDICATED ABOVE.
15