CITY OF PACIFICA (OWNER)
151 Milagra Dr, Pacifica, CA 94044
CONTRACT
City of Pacifica Contract 12/22 v1 00 5205 - 1
CCWRP ADMIN BUILDING ELEVATOR MODERNIZATION PROJECT, DATE: July 15, 2025
1. Identification of Contractor.
CONTRACTOR: KONE, INC.
LICENSE NO: 179166 CLASS: C11 – ELEVATOR INSTALLATION
2. Scope of The Work. See Scope of Work attached as Appendix A.
Compensation for Work. Contractor’s total compensation for the Work performed under this Agreement (Contract Sum) is $205,232, to be paid as (check one): (1) ☐ lump sum; (2) ☒ lump sum with progress payments; (3) ☐ per attached schedule of rates and charges, up to a guaranteed not-to-exceed amount of $Enter Dollar Amount. All payments (check one): ☒ shall ☐ shall not be subject to a five percent retention.
Contractor’s hourly rates are listed in Exhibit A, Scope of Work and Cost Proposal. In the event payments to Contractor equal the “not to exceed” amount, and absent a written modification to this Agreement signed by the Owner, Contractor shall complete all services required under this Agreement without further compensation or cost reimbursement.
3. Schedule of Performance for the Work. Contractor shall commence and complete the Work by the following dates:
Commencement Date shall be on the date established in the Notice to Proceed. Owner reserves the right to modify or alter the Commencement Date of the Work.
Substantial Completion Date: Within 261 calendar days of Commencement Date.
Final Completion Date: Within 30 business days of Substantial Completion.
3.01 Liquidated Damage Amounts.
A. As liquidated damages for delay Contractor shall pay Owner Five Hundred dollars ($500.00) for each Day that expires after the time specified herein for Contractor to achieve Substantial Completion of the entire Work, until achieved.
B. As liquidated damages for delay Contractor shall pay Owner Five Hundred dollars ($500.00) for each Day that expires after the time specified herein for Contractor to achieve Final Completion of the entire Work, until achieved.
3.02 Scope of Liquidated Damages
A. Contractor and Owner agree that because of the nature of the Project, it would be impractical or extremely difficult to fix the amount of such actual damages incurred by Owner because of a delay in completion of all or any part of the Work. Contractor and Owner agree that specified measures of liquidated damages shall be presumed to be the amount of such damages actually sustained by Owner, and that because of the nature of the Project, it would be impracticable or extremely difficult to fix the actual damages.
B. Liquidated damages for delay shall cover administrative, overhead, interest on bonds, and general loss of public use damages suffered by Owner as a result of delay. Liquidated damages shall not cover the cost of completion of the Work, damages resulting from Defective Work, lost revenues or costs of substitute facilities, or damages suffered by others who then seek to recover their damages from Owner (for example, delay claims of other contractors, subcontractors, tenants, or other third-parties), and defense costs thereof. Owner may deduct from any money due or to become due to Contractor subsequent to time for completion of entire Work and extensions of time allowed pursuant to provisions hereof, a sum representing then-accrued liquidated damages.
4. Terms and Conditions.
4.01 Contractor shall perform the Work in accordance with the terms and conditions of this Agreement and the following attachments (together, Contract Documents):
A. Appendix A – Scope of Work
B. Appendix B – General Conditions
C. Appendix C – Insurance
D. Appendix D – Construction Performance Bond
E. Appendix E – Construction Labor and Materials Payment Bond F. Appendix F – Supplemental Conditions, if applicable
4.02 The Contract Documents are the sole and exclusive provisions that govern the Work described herein. Any provision contained in any purchase order issued in connection with this Agreement or the Work described herein shall be null and void and shall have no force or effect.
Agreement number must appear on all invoices and correspondence.
Send invoices in duplicate immediately upon performance of Work ordered hereon to:
City of Pacifica
151 Milagra Dr
Pacifica, CA 94044
City of Pacifica:
By: _______________________________________
Kevin Woodhouse, City Manager
ATTEST:
By: ___________________________________
Sarah Coffey, City Clerk
APPROVED AS TO FORM:
By: ___________________________________
Michelle Kenyon, City Attorney
CONTRACTOR
Name: ____KONE, Inc.________________________
By: _______________________________________
(signature)
Its: _______________________________________
Title (If Corporation: Chairman, President or Vice President) By: _______________________________________
(signature)
Its: _______________________________________
Title (If Corporation: Chairman, President or Vice President) 1099 INFORMATION
Contractor Taxpayer I.D. No.: __________________
Incorporated: ☐ Yes ☐ No
City of Pacifica Contract 12/22 v1 00 5205 - 2
Appendix A to Contract
SCOPE OF WORK
KONE INC. CONTRACT #: Page 1 of 2
RIDER No. 1
CCWRP Admin Building Elevator Modernization
The parties hereby agree to be bound to the terms contained in the Agreement between KONE Inc. (“Contractor”) and City of Pacifica (“Owner”) (the “Agreement”), together with those terms contained in this Rider No. 1. Provided, however, that notwithstanding any terms contained in the Agreement or any Contract Document to the contrary, in the event of conflict between terms contained in the Agreement or any Contract Document and terms contained in this Rider No. 1, the terms in this Rider No. 1 shall supersede and prevail.
1. Contractor’s Bid Proposal, including Attachments A and B thereto, and Ship Date Letter are included as referenced Contract Documents, and shall prevail in the event of conflicts hereunder. Contractor shall not be bound by or obligated to comply in any manner with any Contract Document which has not been given to Contractor prior to the execution of the Agreement.
2. In no event shall either party be liable to the other party for any consequential, special, punitive, exemplary, incidental, or indirect damages (including, but not limited to, loss of profits or revenue, loss of goodwill, loss of use, increase in financing costs) (collectively, "Consequential Damages") that arise out of or relate to the Agreement. Notwithstanding anything set forth in the Prime Contract to the contrary, Subcontractor’s liability for liquidated damages shall not exceed $ 500.00 / calendar day starting on the first day after substantial completion until the work is substantially complete Liquidated damages, if any, shall be proportionately assessed to the extent caused by Subcontractor’s failure to comply with the terms of the Agreement. Payment of liquidated damages, if any, shall be in lieu of and replacement of any other damages, of any type or nature.
3. Any references to “conditions precedent” to Contractor’s right to payment shall be interpreted to merely establish timing of payment.
Contractor reserves the right to delay and/or suspend its Work, including manufacturing, delivery, installation and/or final turnover of equipment, for non-payment, without risk of breach of contract if Contractor is not paid within 30 days of submission of Contractors payment application. Prior to turnover, Contractor requires a signed Final Acceptance Form. At the time of equipment turnover, Contractor must be paid in full, less 10% maximum retention, the Agreement Price including all unpaid Change Orders or outstanding change directives. Final payment, including retention, shall be due sixty (60) days after Contractor’s final invoice.
4. Contractor will provide its standard certificate of insurance.
5. Contractor and Owner have mutually agreed upon a schedule for the performance of Contractor’s Work, and it is attached to the Agreement.
Any changes or revisions, accelerations, resequencing, suspension, work stoppage or delays of Contractor’s Schedule may only be made upon Contractor’s mutual written consent and are not included in the Agreement Price.
6. Contractor shall not be obligated to continue performance of Extra Work without a fully executed Change Order if the estimated value of unexecuted Change Orders exceeds 10% of Contractor’s Agreement Price, or if there is a reasonable safety concern, a product limitation, or it is unreasonable to proceed.
7. If Contractor is delayed at any time in the performance of its Work by an act or neglect of the Owner or Architect/Consultant, or of a subordinate of any of them; or by labor disputes, unusual delay in deliveries, unavoidable casualties, Acts of God, sabotage, vandalism, theft, concealed conditions, hazardous materials, legal requirements, shortage or unavailability of materials, supplies, labor, equipment and systems; or by any other causes beyond Contractor’s control, then Contractor’s Schedule and the Agreement Price shall be adjusted accordingly.
8. If materials are manufactured more than twelve months after Contract date, Contractor shall be entitled to an equitable adjustment in the Price, including but not limited to, any increased costs between the time the Contract is signed and the date of manufacture for materials, labor, or shipping.
9. Contractor shall be entitled to an adjustment in the Price, including but not limited to any increased costs of materials, resulting from any change in law (by legislation, executive order, treaty, or other similar means), or any increase in duties or tariffs on imported materials, raw materials, and/or finished goods, whether imposed by domestic or foreign governments.
10. Contractor’s work shall not include any abatement or disturbance of asbestos containing material, presumed asbestos containing materials, or other hazardous materials (i.e. lead, PCBs) (collectively “HazMat”). Contractor shall have the right to discontinue its work in any location where suspected HazMat is encountered or disturbed. Any HazMat removal or abatement, or delays caused by such, shall be the Owner’s sole responsibility and expense.
11. Owner shall be responsible for any additional cost associated with bonds. Bond total 1% of contract value not to exceed $2,032.00
12. Owner shall be solely financially responsible for any unforeseen conditions in the event earthwork needs to be performed.
13. KONE shall provide necessary access to the hoistway and control room for State elevator inspecting authorities during normal working hours on regular working days. Any additional time spent by KONE beyond these hours due to requests from the City of Pacifica, as well as any additional inspections by the City of Pacifica, shall incur extra costs and will be scheduled and billed separately.
14. Section 2.06 – Termination; suspension; disputes – Owner shall remain financially responsible for all cost incurred and obligations accrued up to the date of suspension, termination or commencement of any dispute, regardless of the cause or nature thereof. Suspension, KONE INC. CONTRACT #: Page 2 of 2
termination, or dispute of this agreement shall not relive the owner of their duty to compensate KONE for work performed, materials procured, or commitments made in good faith prior to such events.
15. Section 3 – Liquidated damages; within 261 Calendar days of commencement date.
16. Section 3 - Completion date; within 30 days of substantial completion.
17. City of Pacifica can provide written authorization to perform work on T&M force account.
18. KONE to provide proof of added costs and reason for change order requested formally.
19. KONE contractor to enter into agreement and order material after NTP, down payment received and submittal approval.
20. If there is conflict between the Rider and proposal this Rider shall prevail.
21. KONE will carry the required electrical and fire life safety upgrade for the elevator modernization. If required, general contractor work will be carried by the customer.
22. KONE will apply for building permit through link provided by customer.
23. KONE will update The City of Pacifica’s Business license through our licensing department.
ACCEPTED:
City of Pacifica KONE INC.
BY: _____________________________ BY:
TITLE: TITLE:
DATE: DATE:
KONE INC. CONTRACT #: 0016720424
KONE Internal
KONE MODERNIZATION PROPOSAL
Proposal: 700 Pacific Coast Highway - 2025 Mod
Proposal Date: 02/24/2025
KONE Internal
06/25/25
KONE Inc.
Elevators & Escalators
567 7th Street
San Francisco, CA 94103
Mobile: 415-260-5028
[email protected]
www.kone.us
Dear Naomi & Matthew,
We are pleased to enclose, for your review and consideration, KONE's proposal to modernize your equipment located at the following address for $205,232.00 (incl. use tax):
● This proposal is based on 2025 installation.
● This proposal is valid for (30) days.
● This proposal includes P & P bond cost of: $2,032.00
● Anticipated downtime: 4-5 weeks per unit for modernization + inspection.
Please know that we are available to assist you in coordinating the work by others as further described in our “Bid Attachment B“. Should you have any questions or require additional information, please feel free to contact me directly.
We look forward to hearing from you and working together on this project.
Yours sincerely,
Jenny Bodas
www.kone.us T-0008204672 3(18)
KONE Internal
Appendix 1: KONE 24/7 Connected Services
Appendix 2: Clarifications
Appendix 3: Bid Attachment “A” / KONE Inc. General Terms and Conditions (Modernization) Appendix 4: Bid Attachment “B” / Site Requirements & Work by Other Trades www.kone.us T-0008204672 4(18)
KONE Internal
Why KONE?
KONE in brief
KONE is a global leader in the elevator
and escalator industry. Our mission is to
make cities better places to live.
Our versatile product portfolio features a
wide range of innovative products
including elevators, escalators,
autowalks, monitoring, access and
destination control systems.
Value for your project
KONE helps you to reduce operational costs, increase end-user satisfaction and value of your building by providing accessible and safe equipment through a professional and trouble-free modernization project.
Increased user satisfaction/minimal disturbance to end-users Improved eco-efficiency, reduced energy consumption
Improved safety according to latest standards
www.kone.us T-0008204672 5(18)
KONE Internal
Ensuring your project success
Project Overview
KONE Responsibility CUSTOMER Responsibility
KONE and CUSTOMER
Site Cornerstones
By ensuring that these cornerstones are in place you can ensure that your modernization project stays on schedule and that KONE technicians can perform their work quickly, safely, and with minimum disruption to building operations.
Site preparation requirements before materials arrive
● Loading and storage area of suitable size for materials, waste and waste storage, and tools ● Safe access route for new materials and materials being removed ● Access permissions and cards or other access devices for KONE technicians Other works as agreed in the project plan, if not managed by KONE ● Please refer to Appendix 4: Bid Attachment “B” / Site Requirements & Work by Other Trades Project kickoffFully executed
contract & down
payment
Materials delivered to
site and
modernization starts
Project
completion
Detailed site
survey
Submittals
approved if
required
Manufacturing Work by others
Installation and
testing
Third-party inspection
arranged
www.kone.us T-0008204672 6(18)
KONE Internal
Solution details
Elevator / Solution 1
Electrification
Product name KONE HydroMod DX
Elevator group size Simplex
Number of floors served 3
Code year 2004
Speed [FPM] 125
NEMA rating (HW) Hoistway rating is NEMA 1.
NEMA rating (MR) Machine room rating is NEMA 1.
Power supply voltage [v] 480
Type of power unit Submersible
Machine room duct KONE will remove all existing wiring, conduit and duct from the machine room. New conduit and duct properly sized and
constructed for the job requirements will be installed (in accordance with applicable codes).
New motor size (hp) 25
Motor Starts per Hour 80 Standard
Type of curtain of light This curtain of light is an electronic sensing device that operates across the car entrance. When activated, the curtain of light will prevent the doors from closing or cause them to stop and reopen if they are in the process of closing. The doors will remain open as long as the flow of traffic continues and will close shortly after the last person passes through the door opening. A 2-D type will be provided.
Qty of COPs 1
Out of service switch Yes
Hoistway duct KONE will remove all existing wiring, conduit and duct from the hoistway. New conduit and duct properly sized and constructed for the job requirements will be installed (in accordance with applicable codes).
Fixtures
Product name Custom Fixtures
Number of floors served 3
Capacity [LBS] 2100
Qty of COPs 1
Qty of new hall stations 2
Qty of car direction
lanterns
1 Qty of hoistway access
switches
2 www.kone.us T-0008204672 7(18)
KONE Internal
Doors
Product name Door Panel(s)
Number of floors served 3
Car panel finishing
material
New car door panel(s) shall be provided where applicable. New door(s) shall be UL fire rated 1 ½ hour. Finish will be #4 stainless steel.
Door type Single speed side opening.
Product name KONE ReNova Door Operator
Number of floors served 3
NEMA rating (HW) Hoistway rating is NEMA 1.
Door type Single speed side opening.
Door package type KONE ReNova M6 door package includes a new door operator, restrictive clutch, car door track, car gate switch, car hangers, car door panel adapters, OEM interlocks and hoistway pick up rollers.
Product name Curtain of Light
Number of floors served 3
Code year 2004
NEMA rating (HW) Hoistway rating is NEMA 1.
Type of curtain of light This curtain of light is an electronic sensing device that operates across the car entrance. When activated, the curtain of light will prevent the doors from closing or cause them to stop and reopen if they are in the process of closing. The doors will remain open as long as the flow of traffic continues and will close shortly after the last person passes through the door opening. A 2-D type will be provided.
www.kone.us T-0008204672 8(18)
KONE Internal
Shaft equipment
Product name Guide Shoes
Capacity [LBS] 2100
Speed [FPM] 125
Car guide shoe type KONE RG100 (Roller)
New car guide shoes New spring dampened roller guide shoes will be provided.
Hydraulic equipment
Product name Field Pipe & Accessories
Capacity [LBS] 2100
Speed [FPM] 125
Field Pipe Length (in) 240
Field Pipe Size 2"
Mainline Shutoff Valves A manual safety valve will be supplied in the oil line at the jack unit (pit) designed to shut off the flow of oil from the cylinder and bring the car to rest in case the car attains excessive down speed.
Seismic Rupture Valve A rupture valve will be provided which provides protection against supply line failure that causes overspeed in the down direction.
Product name Power Unit
Capacity [LBS] 2100
Speed [FPM] 125
Type of power unit Submersible
New motor size (hp) 25
Motor Starts per Hour 80 Standard
Control Valve OEM Maxton
Field Pipe Length (in) 240
Field Pipe Size 2"
Jack location Inground
Jack type Single Stage
Load class Passenger
Qty Jacks per Car 1
Seismic Rupture Valve A rupture valve will be provided which provides protection against supply line failure that causes overspeed in the down direction.
www.kone.us T-0008204672 9(18)
KONE Internal
Commercial Offer
Project notes • Required electrical and Fire Life Safety scope of work have been included in this proposal.
• 8 hours of standby time have been included in this proposal for cab floor installation by customer’s subcontractor. If floor contractor needs additional time than what has been allotted, customer will be responsible for additional standby labor hours.
• General contractors work not included in this proposal. If GC work is required customer is responsible for contracting that work and covering the cost of GC scope of work.
• Jack replacement and cost associated are not included in this proposal. • State elevator permit cost is included in this bid.
• Customer to provide safe and secure lay down/storage area for project material. • Customer to provide two on-site parking spaces for project technicians. • P & P Bond is included in this proposal. Total cost of bond: $2,032.00 Handover date Mutually agreeable project schedule will be determined at time of proposal acceptance.
Current delivery lead time is 15 weeks from when order receipt, deposit and approval of drawings have all been completed. The agreed delivery times for the project may need to be extended because of delays caused by measures undertaken to stop the spreading of the Coronavirus (2019-nCoV) epidemic, such as mandatory holiday extensions and transportation restrictions imposed by authorities in China and other countries, and the availability of personnel, logistics providers and supply chains, due to the epidemic.
Downtime period 5-6 weeks per unit
Warranty/maintenance Our proposal does not include any warranty maintenance.
Pricing
Equipment Price ($)
Elevator: Solution 1 $ 203,200.00
Total Sales Price, net including TAX $ 205,232.00
Additional options for your consideration:
• 1 year of warranty/preventative maintenance in the amount of $3540.00 ($295.00 monthly) Proposal pricing is based on the scope of work as defined herein. Any additional work required will be performed only upon purchaser’s approval of a mutually agreeable change proposal. Any other deficiencies revealed in the progress of the work will be promptly reported to the purchaser with recommendations and cost for corrective action. www.kone.us T-0008204672 10(18)
KONE Internal
www.kone.us T-0008204672 11(18)
KONE Internal
Tender Approval
KONE
Jenny Bodas
567 7th Street
San Francisco, CA 94103
[email protected]
Owner/Representative
City of Pacifica Water Plant
700 Pacific Coast Highway
Pacifica, CA 94044
Submitted by:
Jenny Bodas
MOD Sales
02/24/2025
We accept the offer constituted by this proposal (total sales price of $ 205,232.00, incl. use tax) and agree to the conditions contained therein.
Approved by Customer
___________________________________________
Printed name:
Title:
Company name:
Date:
www.kone.us T-0008204672 12(18)
KONE Internal
Appendix 1: KONE 24/7 Connected Services
KONE 24/7 Connected Services – improved safety, full transparency, and peace of mind In addition to a quality modernization project, we would be excited to discuss KONE 24/7 Connected Services with you and the continuing benefits KONE could bring to your business. KONE is leading the industry with KONE 24/7 Connected Services using the latest intelligent elevator technology allowing us to predict issues and take action before a shutdown occurs. Predictive maintenance allows fewer shutdowns, less call-outs, and improved up-time of equipment - all leading to a better user experience!
Read more at
kone.us/connected
www.kone.us T-0008204672 13(18)
KONE Internal
Appendix 2: Clarifications
1. Contract terms between KONE Inc. and Purchaser shall be based on our Proposal and Attachments “A” and “B”.
2. All new elevator equipment provided shall meet applicable ASME A17.1 code requirements. Any provisions of codes applicable to out-of-scope items shall be the Purchaser’s responsibility. Cost of any future code changes adopted prior to permitting and completion are excluded.
3. Existing cab and entrance dimensions, which may not meet current ADA or stretcher access rules, will be retained as is.
4. Our proposal includes inspections and testing as required by the AHJ. However, any re-testing required due to other trades’ failures to complete their work or tests in a timely manner will be billed at our regular billing rates.
5. The ASME code limits changes to the empty car weight + capacity of each elevator to 5% of the originally installed value. If past or proposed changes result in a change to the weight or system pressure (for hydraulic) greater than 5% above the original design values, the cost of any engineering and of any required modifications to the elevator system or structure shall be extra to this proposal scope and pricing. If this situation is discovered during the engineering process, KONE will notify purchaser and recommend an alternate design or other changes.
6. In order to provide best pricing, proposal excludes any extra demobilizations and remobilizations. If we must demobilize from the jobsite for any reason outside our control, we shall be compensated at our regular billing rates.
7. Proposal pricing is based on the scope of work as defined herein. Any additional work required will be performed only upon Purchaser’s approval of a mutually agreeable change proposal. Any other deficiencies revealed in the progress of the work will be promptly reported to purchaser with recommendations and cost for corrective action.
8. Asbestos: Notwithstanding anything contained to the contrary within this bid or contract, KONE’s work shall not include any abatement or disturbance of asbestos containing material (ACM) or presumed asbestos containing materials (PACM). Any work in a regulated area as defined by Section 1910 or 1926 of the Federal OSHA regulations is excluded from KONE’s scope of work without an applicable change order to reflect the additional costs and time. In accordance with OSHA requirements, the Customer shall inform KONE and its employees who will perform work activities in areas which contain ACM and/ or PACM of the presence and location of ACM and/or PACM in such areas which may be contacted during work before entering the area. Other than as expressly disclosed in writing, Customer warrants that KONE’s work area at all times meets applicable OSHA permissible exposure limits (PELs). KONE shall have the right to discontinue its work in any location where suspected ACM or PACM is encountered or disturbed. Any asbestos removal or abatement, or delays caused by such, required in order for KONE to perform its work shall be the Customer’s sole responsibility and expense.
After any removal or abatement, customer shall provide documentation that the asbestos has been abated from the KONE work area and air clearance reports shall be made available upon request prior to the start of KONE’s work.
9. Purchaser shall provide any security, escort or other building service support personnel required during demolition, installation, testing, and inspections.
10. For hydraulic elevators, we can assume no responsibility for unusual conditions such as hole cave in and complete hydraulic cylinder assembly embedded in concrete. The excavation of the hole to accommodate the new hydraulic cylinder assembly is based on encountering soil free of oil, rocks, boulders, building construction members, sand, water, quicksand, underground caves and/or any other obstructions or unusual conditions. Should such obstructions or unusual conditions be encountered, additional time above or beyond the working days estimated to complete this project may be required. We will proceed with this portion of the project on a time and material basis, based on our normal billing rates.
11. Proposed solution is subject to a complete engineering review by KONE engineering team to confirm feasibility of products proposed. Additional charges may apply for work not included, but required to meet system requirements. Additional charges for this work (if applicable) shall be mutually agreed upon. www.kone.us T-0008204672 14(18)
KONE Internal
Appendix 3: Bid Attachment “A” / KONE Inc. General Terms and Conditions (Modernization)
1. APPLICATION OF THESE TERMS
The parties agree to be bound by the terms and conditions contained in the Bid Letter, this Bid Attachment A and Bid Attachment B, including the documents incorporated herein by reference (collectively, the “Proposal”).
2. SPECIAL PURCHASING REQUIREMENTS
This Proposal is made without regard to compliance with any special sourcing and/or manufacturing requirements including, but not limited to, Buy America, Buy American, U.S. Steel, FAR clauses, minority / disadvantaged supplier requirements or similar federal and/or state procurement laws. Should such requirements be applicable to this Project, KONE reserves the right to modify and/or withdraw its Proposal.
3. PROPOSAL CONDITIONS
The Proposal shall be open for acceptance within the period stated in the Bid Letter or, when no period is stated, for a period of 30 days from the date of the Bid Letter. Prior to commencing manufacture of the equipment described in the Bid Letter (“Equipment”), KONE must have (i) a fully executed contract; (ii) a schedule acceptable to KONE identifying the Equipment installation start date, or alternatively, KONE’s letter specifying the ship date (“Ship Date Letter”) signed by Customer, which, as applicable, is incorporated by reference herein; (iii) the first payment in Section 4 herein; and (iv) fully approved KONE layouts.
4. PAYMENT TERMS
Payment of the total Price is due within 30 days from invoice date, as follows:
● 30% of the Price for engineering, site management, and overhead, billable and due upon execution of this Proposal or receipt of the subcontract;
● 50% of the Price for material and shipping, billable and due upon delivery of material to the jobsite or KONE Distribution Center;
● 20% of the Price for Equipment installation, billable and due at the billing cycle following the start of installation.
KONE imposes a surcharge for payments made via credit card that is not greater than our cost of acceptance. The surcharge that we impose for this type of transaction is a percentage of the amount paid via credit card, which will be notified to the Customer at the payment portal. KONE reserves the right to delay, suspend, or stop the work, including manufacturing, delivery, installation and/or Equipment turnover, for non-payment, without liability to KONE or being held in default. Simple interest at 1.5% per month shall be charged on amounts not paid when due. Payments to KONE are not contingent on any third-party payments to Customer. Customer shall reimburse KONE for all costs of collection, including courts costs and reasonable attorneys’ fees.
Prior to turnover, KONE must be paid in full, less 10% maximum retention, the Price including all change orders. Retention shall be due and payable within 30 days of execution of the Uniform Final Acceptance or Equipment turnover, whichever occurs first. If certified payroll reporting is required, KONE will submit the requested reporting in the format of the U.S. Department of Labor form WH 347 & WH 348.
The Price does not include Textura or any other special billing requirements, which can be added via change order at a rate of 0.3% of the Price.
5. INSTALLATION
Customer shall be responsible for procurement and cost of all permits, except permits related to installation of the Equipment. Where KONE’s scope of work or other responsibilities include the obligation to utilize materials and/or finishes resembling or identical to those pre-existing in the building, KONE shall use reasonable efforts to procure such materials and Customer acknowledges and accepts that the materials and/or finishes reasonably available may not be in all respects identical to those pre- existing in the building. This Proposal is conditioned upon KONE using its standard installation method. The installation of the Equipment shall start after Customer has completed all work set forth in Bid Attachment B and any other documents describing site requirements (“Site Requirements”), all of which are incorporated by reference herein. Within two (2) weeks prior to the scheduled delivery date for KONE’s materials, KONE shall conduct a standard visual site survey to verify that the Site Requirements are complete and notify Customer if there are outstanding deficiencies preventing KONE from beginning installation.
KONE’s site survey may include, but is not limited to, inspection of site access, working and safety conditions on site, wear and tear of any existing structures or surfaces, and planning of any dismantling or removal of existing equipment, components and materials, where applicable. KONE shall not be deemed to have surveyed any hidden structures, latent defects, subsurface conditions, or other non-visible matters, including but not limited to searching for hazardous substances and/or materials, which shall be subject to Section 16. If KONE’s site survey reveals any deficiencies, KONE shall be entitled to delay the start of installation and Customer shall be responsible for all additional costs incurred by KONE, including without limitation, costs associated with: labor reallocation, re- directing materials to and storage in a KONE Distribution Center, additional labor for double handling of materials, and additional trucking, freight and insurance.
Once the Site Requirements are completed, the start of installation shall be subject to the availability of labor and the delivery of material, if applicable.
KONE’s work shall be performed during regular union working hours of regular working days, Monday to Friday, statutory holidays excluded. If overtime is mutually agreed upon and performed, the additional costs for such work shall be added to the Price at KONE’s standard overtime rates. If the installation cannot be performed in an uninterrupted manner for any reason beyond KONE's control, Customer shall store the Equipment at Customer's cost and compensate KONE for any costs caused by such delay including, but not limited to, double handling of Equipment and demobilization. KONE shall not be required to perform overtime or any Customer directed change to its work (“Extra Work”) without an executed change order. No action by KONE, including but not limited to, performing Extra Work without an executed change order, shall be a waiver of KONE’s right to seek payment for Extra Work performed.
KONE shall be entitled to an extension of time and an equitable adjustment in the Price, including but not limited to, any increased costs of labor, including overtime, resulting from any change of schedule, re-direction of KONE personnel to another work area, acceleration, or out of sequence work.
KONE shall take reasonable methods to protect its work-in-place while KONE is actively on site and until execution of a KONE Uniform Final Acceptance, which is incorporated by reference herein. Should damage occur to KONE property, material or work-in- place by fire, water, theft or vandalism, Customer shall compensate KONE for said www.kone.us T-0008204672 15(18)
KONE Internal
damages.
Additionally, the Customer is solely responsible for ensuring that the equipment maintenance contractor, if not KONE, does not disturb, delay or interfere with KONE’s work. KONE shall abide by Customer’s safety policies and procedures to the extent such policies and procedures are not in conflict with KONE’s Safety Policy. Testing and/or security features of Equipment must be completed before Equipment turnover. KONE is not responsible for damages, either to Equipment or the building, or for any personal injury or death, arising out of or resulting from any code required safety tests performed on Equipment or hoistway access granted by Customer to other trades.
6. TEMPORARY USE
Temporary use of certain types of Equipment may be permitted, provided the use period allows adequate time for Equipment restoration for final turnover and Customer executes KONE’s Temporary Use Agreement. Temporary use shall be invoiced separately and subject to payment terms in Section 4 herein. At the end of temporary use, Customer shall return the Equipment to KONE in "like new" condition.
7. HAZARDOUS MATERIALS
KONE’s work shall not include any abatement or disturbance of asbestos-containing material (ACM), presumed asbestos-containing materials (PACM) or other hazardous materials (i.e., lead, PCBs) (collectively “HazMat”). KONE shall have the right to discontinue its work in any location where suspected HazMat is encountered or disturbed. Any HazMat removal or abatement, or delays caused by such, required for KONE to perform its work shall be the customer’s sole responsibility and expense. Prior to the execution of the contract, the owner and/or the general contractor are responsible for providing written notification to KONE of the existence of HazMat in any location where KONE’s work will be performed. Should the customer require elevator personnel to position/reposition the elevator equipment to allow the customer’s abatement company to perform abatement work, KONE will present a separate proposal for additional work to the customer.
8. TITLE AND RISK TO EQUIPMENT
Title to and ownership of all Equipment intended for incorporation in KONE’s work, whether installed or stored on or off site, shall remain with KONE until final payment is made. Risk of loss in KONE’s work and Equipment passes to Customer upon delivery to the site or off-site storage.
Any tools, devices, or other equipment that KONE uses to perform its work or monitor the Equipment remains the sole property of KONE. If this Proposal terminates or expires for any reason, Customer will give KONE access to the premises to remove such tools, devices or equipment at KONE’s expense.
9. TURNOVER
Prior to turnover, KONE must receive a final punch list. Upon turnover, KONE requires a signed Uniform Final Acceptance. KONE shall provide its standard electronic O&M manuals with CD-ROMs in electronic format, if applicable, upon execution of the Uniform Final Acceptance. Standard KONE samples shall be provided upon request.
No mock-ups or video training are included in the Price.
10. DELAY
KONE shall not be liable for any loss, damage, claim, or delay due to any cause beyond KONE's control, including, but not limited to, acts of domestic or foreign government (including a change in law), strikes, lockouts, work interruption or other labor disturbance, delays caused In the event of such delays, KONE shall be entitled to an extension in time equal to the length of such delay affecting KONE and an equitable adjustment in the Price. Customer shall compensate KONE for labor and material cost escalations resulting from Project delays not caused by KONE, which extend completion of KONE’s work beyond the end of the current calendar year. Customer is on notice that IUEC labor rates increase annually.
11. LIMITED WARRANTY
For one (1) year after the acceptance date set forth in the signed Uniform Final Acceptance, date of Equipment turnover, or date of Customer’s use of Equipment (unless such use is pursuant to the Temporary Use Agreement), whichever occurs first, KONE warrants Equipment against defect in workmanship and material. The warranty excludes remedy for damage or defect caused by abuse, misuse, vandalism, neglect; repairs, alteration or modifications not executed by KONE; improper or insufficient maintenance, improper operation, characteristics of the building such as electrical power or security features, natural or other catastrophe such as flood, fire, or storm, or normal wear and tear and normal usage. The warranty excludes training or instruction in the proper operation or maintenance of Equipment. Specific noise ratings and energy efficiencies cannot be guaranteed due to different building characteristics and ambient noise levels. Customer’s remedy is limited to repair or replacement of a defective part, in KONE’s sole discretion, and excludes labor.
12. INDEMNIFICATION
KONE shall only indemnify and hold Customer harmless for claims, damages, losses or expenses, but excluding loss of use (“Claims”) due to bodily injury, including death, or tangible property damage (other than the Project or KONE’s work itself) to the extent caused by KONE’s negligent acts or omissions. KONE shall not indemnify Customer for any other Claims. Customer agrees to indemnify and hold KONE harmless from any Claim for bodily injury, including death, or tangible property damage in connection with the use or operation of the Equipment. Each party shall defend itself in the event of a Claim.
13. INTELLECTUAL PROPERTY
KONE shall retain title and ownership of all intellectual property rights relating (directly or indirectly) to the Equipment provided by KONE, including but not limited to software or firmware (whether in the form of source code, object code or other), drawings, technical documentation, or other technical information delivered under the Proposal. KONE grants Customer a non-exclusive and non-transferable license and right to use the software and firmware in connection with the use and maintenance of the Equipment. Customer shall not use any drawings, technical documentation or other technical information supplied by or on behalf of KONE for any purposes other than those directly related to the Proposal or to the use and maintenance of the Equipment.
Customer shall not in any form copy, modify or reverse engineer the software, or give access to the software for such use to any third party without KONE’s prior written consent.
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by others, fire, explosion, theft, floods, inclement weather, riot, civil commotion, war, malicious mischief, infectious diseases, epidemic, pandemic, quarantine, border or port of entry and exit restrictions or acts of God.
14. INSURANCE
In lieu of any Customer insurance requirements, KONE shall provide its standard certificate of insurance, which shall be deemed to satisfy all insurance requirements for this Project. KONE shall not provide loss runs, insurance rate information, copies of its insurance policies or any other information which KONE considers confidential. KONE shall not provide coverage for professional (E&O) liability, pollution liability, data privacy/security, or no-fault medical payments. If the Project is covered by a Wrap Up Insurance Program, KONE agrees to participate provided there is no cost to KONE, no reduction in the Price, and subject to KONE’s review of the proposed program. If KONE’s primary limits are sufficient to satisfy insurance coverage requirements, excess/umbrella liability will not be required or if excess/umbrella is required, KONE’s excess coverage does not follow form although typically provides broader coverage than KONE’s primary policies. The excess coverage is not AM Best Rated nor licensed to do business within the jurisdiction although the carrier has strong Standard & Poor’s and Moody’s financial ratings that may be evidenced upon request.
15. LIMITATION OF LIABILITY
In no event shall either party be liable to the other party for any consequential, special, punitive, exemplary, liquidated, incidental, or indirect damages (including, but not limited to, loss of profits or revenue, loss of goodwill, loss of use, increase in financing costs) (collectively, "Consequential Damages") that arise out of or relate to this Proposal even if such party has been advised of the possibility of such Consequential Damages. The limitation set forth in this section shall apply whether the claim is based on contract, tort or other theory.
16. CONCEALED OR UNKNOWN CONDITIONS
If during the course of its work, KONE encounters conditions at the site that are subsurface, differ materially from what is represented in the contract documents, or otherwise concealed physical conditions, KONE shall be entitled to an extension of time and additional costs for the performance of its work, which shall not be subject to any payment conditions or contingencies.
17. TECHNICAL SURVEY
KONE’s Price and obligations under this Proposal are subject to a technical survey to be performed on Customer’s existing units within 90-days of the effective contract start date. If a safety hazard or code violation is identified during KONE’s technical survey, Customer shall immediately remove the unit from service until repairs are performed.
KONE is not obligated to perform tests, correct outstanding violations or deficiencies that were not addressed by the prior service provider and/or the owner, or make related necessary repairs or component replacements on the unit. If additional work is necessary, KONE shall provide a separate proposal or recommendation for such work.
Customer agrees to indemnify, defend, and hold KONE harmless for any claims arising out of Customer's failure to comply with KONE's recommendations and proposal, and any obligation on the part of KONE to indemnify or defend Customer with regard to such claim shall be null and void. If Customer does not immediately approve KONE’s proposal or recommendation, KONE reserves the right to terminate this Proposal/contract without penalty.
18. TERMINATION
If a party materially breaches this Proposal, the other party shall provide written notice of the breach and a reasonable time to cure the breach, but in no event less than 30 days. If the breaching party fails to cure the breach within the specified time period, the non-breaching party may terminate the Proposal upon 15 days written notice to the other party. If KONE notifies Customer of a material breach pursuant to this paragraph, KONE may temporarily suspend its work without liability.
19. GOVERNING LAW AND DISPUTE RESOLUTION
The parties agree that this Proposal shall be governed by the laws of the state where the Project is located, and venue for disputes shall be located in that state. KONE does not agree to participate in arbitration proceedings.
20. PRICE ADJUSTMENT
If the materials are manufactured more than twelve months after the Contract date, KONE shall be entitled to an equitable adjustment in the Price, including but not limited to, any increased costs between the time the Contract is signed and the date of manufacture for materials, labor, or shipping. Further, KONE shall be entitled to an equitable adjustment in the Price for any increase in costs resulting from any change in law or tariffs.
21. 24/7 EMERGENCY VIDEO COMMUNICATIONS
Applicable only for projects where KONE 24/7 Emergency Video Communications is included: The KONE 24/7 Emergency Video Communications contract addendum and General Terms and
Conditions for KONE Digital Services must be signed by the Building Owner. This contract addendum requires the Building Owner to pay a fee for audio, video, and data connectivity. This payment obligation, among other provisions, survives termination of any maintenance agreement.
22. MISCELLANEOUS
This Proposal, including the documents incorporated herein by reference, constitutes the entire agreement of the parties and supersedes all prior negotiations, understandings, and representations whether written or oral in relation to the subject matter hereof. Where a conflict or ambiguity exists between this Proposal and any other contract document (including but not limited to, Customer’s drawings and specifications), the terms and conditions of this Proposal shall control. This Proposal may be amended only in writing by the duly authorized representative of both parties. This Proposal may be executed in one or more counterparts. Each counterpart shall be considered an original and all of the counterparts shall constitute a single agreement binding all the parties as if all had signed a single document. For purposes of executing this Proposal, a document signed by electronic means is to be treated as an original document.
The failure of either party to insist upon performance or strict performance of any of the terms or conditions of this Proposal shall not be deemed a waiver of any rights or remedies that such party may have or a waiver of any subsequent breach or default under this Proposal. Neither party may assign or transfer the benefit or burden of this Proposal without prior written consent of the other party. www.kone.us T-0008204672 17(18)
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Appendix 4: Bid Attachment “B” / Site Requirements & Work by Other Trades
The work described below is a summary of work to be performed by others (“Work by Other Trades”) that may be required in conjunction with the elevator modernization performed by KONE (the “Work”). Purchaser shall provide any and all building electrical, structural and mechanical system upgrades required for code compliance, life safety, and proper equipment installation and operation. The Authorities Having Jurisdiction (AHJ) may require additional remedial or preparatory work. All required remedial or preparatory work shall be performed by properly licensed trade contractors in compliance with applicable codes and based on a schedule of performance that allows for uninterrupted progress of the Work. Under no circumstances shall KONE be responsible for any cost associated with the performance of remedial work by others. Purchaser shall provide the following unless specifically included in KONE’s Work:
1. ELECTRICAL
● A properly rated three phase fused disconnect switch, externally operable and lockable in the open position,
located as required by code. Accommodate any increases
in motor size or feeder loads.
● A dedicated 110 VAC fused disconnect switch, externally operable and lockable in the open position adjacent to the machine room door for cab lighting and ventilation, located as required by code.
● Shunt-trip disconnect if fire sprinklers are present in machine room or hoistway.
● GFI 120 VAC convenience outlets in machine room and
pit.
● Separate outlet in the pit area if a sump pump is installed. ● Telephone line service brought to the elevator machine room for emergency communication device.
● Any required RF shielding of TV or radio transmitters, antennae and/or wave-guides.
● Conduit with pull boxes from each elevator bank to any remote fire control or communication panels specified.
● Provide a separate 15-amp, 115 VAC fused service with ground (powered by building emergency power system,
when available) for KONE 24/7 Emergency
Communications, when specified. Must include the means
to disconnect each service and lock-off in the “open”
position (NFPA 70 article 620.22 and 620.53 or CEC
article 38.22 and 38.53).
If required by building code: standby/emergency power, sufficiently sized to provide power of permanent characteristics to each elevator’s disconnect, simultaneously, upon loss of regular power, including feeders, transfer switches and auxiliary contact signal outputs to elevator controllers.
2. MACHINE ROOM
● A code-compliant machine room. Provide or maintain fire rating as required by building code.
● Fire-rated door for access into the machine room. Door shall be self-closing and self-locking, operable from inside the room without the use of a key.
● Independent ventilation or an air conditioning system for the elevator machine room, to assure temperature is
maintained between 65 degrees and 95 degrees
Fahrenheit.
● Fire extinguisher inside machine room.
● Minimum clear machine room height of 7’-0”.
● Suitable lighting that provides a minimum of 19 ftc at floor. ● Removal of any non-elevator related equipment and
materials from within the machine room and proper
disposal of oil and other hazardous or non-hazardous
substances and materials.
3. HOISTWAY
● A code-compliant hoistway, constructed in accordance
with KONE's requirements and specifications. Provide or maintain fire rating as required by building code.
● Patching of all holes in hoistway walls with fire rated material.
● Beveling all ledges within hoistway measuring over 4”. ● Removal of any non-elevator related equipment and
materials from within the hoistway and proper disposal of oil and other hazardous or non-hazardous substances and materials.
● A guarded light fixture and light switch in pit. Switch must be located 42” above the lowest landing floor level.
● A means of displacing water located in the pit and
containing and disposing of oil, chemicals, and other
substances in compliance with environmental laws and
regulations (KONE assumes no responsibility for
discharge of oil, chemicals, and other substances into
storm water systems, sanitary sewer systems, retention
ponds, etc.). Elevator hoistway ventilation to the outside atmosphere as required by building code.
4. FIRE SERVICE
● Fire alarm smoke detectors with wiring and relays in the machine room terminating at elevator controller.
● Fire alarm initiating devices must be located in front of each elevator entrance as well as in the machine room
and at the top of the hoistway.
● Where sprinklers exist in the machine room and/or
hoistway, a fire alarm initiating device within 12” of each sprinkler head.
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5. ACCESS INTEGRATION/SECURITY
● Our proposal includes KONE logic and provisions for the specified Touchscreen(s), Keypad Destination Operating
Panel(s), Monitoring System(s) and Multi-Media
Equipment.
● Card Readers and/or any additional required hardware & software for proper functionality of access control/security system(s) shall be furnished and installed by others.
● Any required software to ensure proper communication
between KONE control system(s) and building system(s)
shall be the responsibility of others.
● A designated 115V 15A circuit is required at each of the remote monitoring stations.
● KONE recommends a minimum 100 Mbit/s Ethernet for
each of the following application(s): Integrated
Touchscreen/Keypad Destination Operating Panels,
Monitoring System, Multi-Media Equipment, and Card
Readers.
6. COUNTERWEIGHTING
● Pricing is based upon the existing car to counterweight weight ratio being consistent with elevator industry
standards. This is defined as the counterweight weight
being equal to the empty car weight plus 40%. The actual assemblies will be weighed during the modernization
process. If modifications are required to correct the
existing weight balance, these modifications will be
provided at additional cost.
7. RK1 FUSES AND CIRCUIT BREAKERS
● Fuses are to be current limiting class RK1 or equivalent.
Circuit breakers are to have current limiting characteristics equivalent to RK1 fuses. Provisions of these fuses are the responsibility of others, not KONE.
8. GENERAL
● Access to the building to perform the Work and for
deliveries with dry, protected storage adjacent to the
hoistway.
● Cutting of existing walls, floors and finishes, together with all repairs made necessary by such cutting or changes,
e.g. cutting of lobby walls for flush hall fixtures and removal of encroaching lobby features such as wallmounted ashtrays. Removal, replacement, and/or repair of any mirrors, millwork, plaster, stone or other special hall finishes.
● All work of other trades must be complete and ready at time of first elevator inspection, or elevator will not be released for operation by the AHJ. If the AHJ does allow temporary operation under a Temporary Operating
Inspection (TOI), any associated costs shall be
Purchaser’s responsibility.
● Our tender is based on suitable site conditions, material and tooling storage space, and bathroom access being
available on site.
● Safe working environment must be provided and
supported by provision for adequate entrance protection, means of hoisting, hoistway dividing screens, and
protection of floors walls and doors etc.
● Emergency evacuation procedures to be clearly defined where required. Subject to site survey and actions agreed. ● Any portion of the Work that is subject to the permissions of local authorities beyond the elevator permits must be identified to KONE. Responsibility for permits to be
agreed. Permits and appropriate signage indicating any
changes to pedestrian access routes for building users
must be in place prior to start of the Work.
● Elevator installation methods requires the integrity of the existing Safety Gear and Overspeed protection devices,
and are therefore subject to verification of suitability prior to commencement of the work. Any remedial work
required or alternative solution is not included in this tender.
● If KONE 24/7 Emergency Video Communications: For
units with travel greater or equal to 60 ft (18 m), or if located in a seismic zone and the code year is 2016 or
later (regardless the travel): Customer will provide a
dedicated Windows-based PC or laptop with Chrome
browser and 24-hour/day Internet access. This computer
must be accessible by emergency personnel to
communicate through voice and text with people in the
elevator and to have a video display of the cab interior.
City of Pacifica Contract 05/20 v1 00 5205 - 3
(End of Appendix A)
Appendix B to Contract
GENERAL CONDITIONS
City of Pacifica Contract 12/22 v1 00 5205 - 4
ARTICLE 1 TERMS OF PERFORMANCE
1.01 Construction Services Agreement (Agreement) Force and Effect. The provisions of the Agreement and other Contract Documents constitute the entire agreement between the Contractor and Owner regarding the Work described herein. No representation, term or covenant not expressly specified in the Contract Documents shall, whether oral or written, be a part of this agreement. The Agreement and other Contract Documents shall govern the Work described herein (whenever performed), and shall supersede all other purchase orders and agreements between Contractor and Owner, and any proposal, with respect to the Work described herein.
1.02 No Modification or Waiver. The Contract Documents may not be modified, nor may compliance with any of its terms be waived, except by written instrument executed and approved by fully authorized representatives of Owner and Contractor. Contract Documents headings are for convenience only and do not affect the construction of the Contract Documents.
1.03 Performance of Work/No Assignment. Time is of the
essence in the performance of the Work. Contractor will perform the Work in a skillful and workmanlike manner; comply fully with criteria established by Owner, and with applicable laws, codes, and all applicable industry standards. Contractor shall maintain its work area in a clean and sanitary condition, clear debris and trash at the end of each work day, and shall not damage or disrupt any property unless specifically part of the scope of the Agreement. Contractor shall not contract any portion of the Work or otherwise assign the Agreement without prior written approval of Owner, and any assignment without Owner’s prior written approval shall be null and void. (Contractor shall remain responsible for compliance with all terms of the Contract Documents, regardless of the terms of any such assignment.) The Contractor shall permit Owner (or its designees) access to the work area, Contractor’s shop, or any other facility, to permit inspection of the Work at all times during construction and/or manufacture and fabrication. The granting of any progress payment, and any inspections, reviews, approvals or oral statements by any Owner representative, or certification by any governmental entity, shall in no way limit Contractor’s obligations under the Contract Documents. Either party’s waiver of any breach, or the omission or failure of either party, at any time, to enforce any right reserved to it, or to require strict performance of any provision of the Contract Documents, shall not be a waiver of any other right to which any party is entitled, and shall not in any way affect, limit, modify or waive that party’s right thereafter to enforce or compel strict compliance with every provision hereof. Owner shall have, at all times, set-off rights with respect to any payment and Contractor’s failure to perform the terms of the Contract Documents.
ARTICLE 2 LEGAL AND MISCELLANEOUS
2.01 Records and Payment Requests. Contractor shall submit all billings with all necessary invoices or other appropriate evidence of proper performance, after which Owner shall make payment within thirty (30) days. Upon Owner’s written request, Contractor shall make available to Owner, its authorized agents, officers, or employees, any and all ledgers, books of accounts, invoices, vouchers, cancelled checks, and other records or documents evidencing or relating to the Work or the expenditures and disbursement charged to Owner, and all correspondence, internal memoranda, calculations, books and accounts, records documenting its Work under the Agreement, and invoices, payrolls, timecards, records and all other data related to matters covered by the Agreement. Contractor shall furnish to Owner, its authorized agents, officers, or employees, such other evidence or information as Owner may require with regard to the Work or any such expenditure or disbursement charged by Contractor. Contractor shall maintain all such documents and records prepared by or furnished to Contractor during the course of performing the Work for at least five years following completion of the Work, except that all such items pertaining to hazardous materials shall be maintained for at least thirty (30) years. Contractor shall permit Owner to audit, examine and make copies, excerpts and transcripts from such records. The State of California or any federal agency having an interest in the subject of the Agreement shall have the same rights conferred to Owner by this section. Such rights shall be specifically enforceable.
2.02 Independent Contractor. Contractor is an independent Contractor and does not act as Owner’s agent in any capacity, whatsoever. Contractor is not entitled to any benefits that Owner provides to Owner employees including, without limitation, insurance, worker’s compensation benefits or payments, pension benefits, health benefits or insurance benefits. Terms within the Contract Documents regarding directives apply to and concern the result of the Contractor’s provision of Work not the means, methods, or scheduling of the Contractor’s Work. Contractor shall be solely responsible for the means, methods, techniques, sequences and procedures with respect to its provision of Work under the Contract Documents. Contractor shall pay all payroll taxes imposed by any governmental entity and will pay all other federal, state, or local taxes not specifically identified in the Contract Documents as Owner’s responsibility.
2.03 Indemnity/Liability. Contractor shall defend, indemnify, and save harmless, to the fullest extent permitted by law, the Owner and each of its council members, officers, directors, representatives, agents, employees, and volunteers (Owner Indemnities), against all claims, suits, actions, loss, cost, damage, expense, and liability arising from or related to bodily injury to or death of any person or damage to any property, or resulting from any breach and/or Contractor’s negligence in performing the Work pursuant to the Contract Documents.
Notwithstanding any provision of the Contract Documents, Owner shall not be liable to Contractor or anyone claiming under it, in contract or tort, for any special, consequential, indirect or incidental damages arising out of or in connection with the Contract Documents or the Work. Owner’s rights and remedies, whether under the Agreement or other applicable law, shall be cumulative and not subject to limitation. Contractor’s obligations to defend, indemnify, and save harmless the Owner Indemnities are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained within this Agreement.
Contractor’s responsibility for such defense and indemnity obligations shall survive the termination or completion of this Agreement for the full period of time allowed by law.
2.04 Defective Work; Warranties. Contractor warrants that all construction services shall be performed in accordance with generally accepted professional standards of good and sound construction practices, all Contract Documents requirements, and all laws, codes, standards, licenses, and permits. Contractor warrants that all materials and equipment shall be new, of suitable grade of their respective kinds for their intended uses, and free from defects. Contractor hereby grants to Owner for a period of one year following the date of completion its unconditional warranty of the quality and adequacy of all of the Work including, without limitation, all labor, materials and equipment provided by Contractor and its Subcontractors of all tiers. If either prior to completion of the Work, or within one year after completion, any Work (completed or incomplete) is found to violate any of the foregoing warranties (Defective Work), Contractor shall promptly, without cost to Owner and in accordance with Owner’s written instructions, correct, remove and replace the Defective Work with conforming Work, and correct, remove and replace any damage to other Work or other property resulting therefrom. If Contractor fails to do so, Contractor shall pay all of the Owner’s resulting claims, costs, losses and damages. Where Contractor fails to correct Defective Work, or defects are discovered outside the correction period, Owner shall have all rights and remedies granted by law.
2.05 Compliance with Laws; Conflict of Interests. Contractor agrees to comply with all applicable federal and state laws, regulations and policies, as amended, including those regarding discrimination, unfair labor practices, anti-kick-back, collusion, and the provisions of the Americans with Disability Act. Contractor, its officer, partners, associates, agents, and employees, shall not make, participate in making, or in any way attempt to use the position afforded them by the Contract Documents to influence any governmental decision in which he or she knows or has reason to know that he or she has a financial interest under applicable state, federal and local conflict of interest regulations. Contractor warrants that no person or agency has been employed or retained to solicit or obtain the Agreement upon an agreement or understanding for a contingent fee, except a bona fide employee or agency. Contractor shall not engage in unlawful employment discrimination including, but not limited to, discrimination based upon a person’s race, religion, color, national origin, ancestry, physical handicap, medical condition, marital status, gender, citizenship, sexual orientation, or sexual identity as prohibited by state or federal law.
2.06 Termination; Suspension; Disputes. Owner may direct Contractor to terminate, suspend, delay, interrupt or accelerate Work, in City of Pacifica Contract 05/20 v1 00 5205 - 5
whole or in part, for such periods of time as Owner may determine in its sole discretion. Owner will issue such directives in writing, and may do so, in whole or in part, for its convenience or due to Contractor’s fault.
Owner will compensate Contractor for extra costs resulting from such directives only to the extent that Owner issues such directives for its convenience and not due to Contractor’s fault (but Owner shall not compensate Contractor for costs, profit or overhead anticipated to be earned or incurred on Work terminated for Owner’s convenience.) Contractor shall continue its Work throughout the course of any dispute, and Contractor’s failure to continue Work during a dispute shall be a material breach of the Contract Documents. All claims by Contractor against Owner shall be submitted in writing to Owner, and shall be governed by Public Contract Code Sections 9204 and 20104 – 20104.6, after which time the one year time period in Government Code Section 911.2 shall be, pursuant to Government Code Section 930.2, reduced to 90 days. Should Contractor be terminated for default, and such termination is subsequently determined to be wrongful, such termination will be converted to a termination for convenience as provided herein.
2.07 Execution; Venue; Limitations. The Agreement shall be deemed to have been executed in City of Pacifica, California.
Enforcement of the Contract Documents shall be governed by the laws of the State of California, excluding its conflict of laws rules. Except as expressly provided in the Contract Documents, nothing in the Contract Documents shall operate to confer rights or benefits on persons or entities not party to the Agreement. As between the parties to the Agreement, any applicable statute of limitations for any act or failure to act shall commence to run on the date of Owner’s issuance of the final Certificate for Payment, or termination of the Contract Documents, whichever is earlier, except for latent defects, for which the statute of limitation shall begin running upon discovery of the defect and its cause.
2.08 Employee Wages; Records; Apprentices. Contractor shall pay prevailing wages to its employees on any contract in excess of $1,000.00. Copies of the general prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Contract, as determined by Director of the State of California Department of Industrial Relations, are on file at the City’s Public Works Department and may be obtained from the California Department of Industrial Relations website
[http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm].
Contractor shall comply with the 8-hours per day/40 hours per week/overtime/working hours restrictions for all employees, pursuant to the California Labor Code. Contractor and all subcontractors shall keep and maintain accurate employee payroll records for Work performed under the Agreement. The payroll records shall be certified and submitted as required by law, including Labor Code Sections 1771.4 (if applicable) and 1776, including to the Labor Commissioner no less frequently than monthly. Contractor shall comply fully with Labor Code Section 1777.5 in the hiring of apprentices for work relating to the Agreement. If the Agreement exceeds $2,000 and is funded with federal funds, then Contractor shall pay federal Davis Bacon wages and comply with applicable federal requirements.
2.09 Mandatory Contractor and Subcontractor Registration.
Pursuant to Labor Code Section 1771(a), Contractor represents that it and all of its Subcontractors are currently registered and qualified to perform public work pursuant to Labor Code Section 1725.5. Contractor covenants that any additional or substitute Subcontractors will be similarly registered and qualified.
2.10 Worker’s Compensation. Pursuant to Labor Code Sections 1860 and 1861, in accordance with the provisions of Section 3700 of the Labor Code, every contractor will be required to secure the payment of compensation to his employees. Contractor represents that it is aware of the provisions of Labor Code Section 3700 that require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that Code, and Contractor shall comply with such provisions before commencing the performance of the Work.
2.11 Construction Performance Bond; Construction Labor
and Materials Payment Bond; Securities in Lieu of Retention Escrow Account.
A. If Contract Sum under the Agreement exceeds (or is expected to exceed) $25,000, Contractor shall provide a construction performance bond in form attached hereto as Appendix D – Construction Performance Bond and a construction labor and material payment bond, in accordance with Civil Code Section 9550 and in form attached hereto Appendix E – Construction Labor and Materials Payment Bond.
Contractor may not substitute cash in lieu of the required bond(s).
B. If the Agreement specifies performance retention, Contractor may elect to substitute securities or direct payment to an escrow account, pursuant to Public Contract Code Section 22300 (incorporated herein by this reference).
2.12 Earthwork and Underground Facilities. If the Work
involves digging trenches or other excavations that extend deeper than four feet below the surface, Contractor shall notify Owner in writing of any material that Contractor believes may be hazardous waste that is required to be removed in accordance law, subsurface or latent physical conditions at the site differing from those indicated by information about the site made available to bidders prior to the deadline for submitting bids, or unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Contract Documents, pursuant to Section 7104 of the Public Contract Code. For any Work involving trench shoring that costs in excess of $25,000, Contractor shall submit and Owner (or a registered civil or structural engineer employed by Owner) must accept, in advance of excavation, a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches, pursuant to Labor Code Section 6705. If such plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer. Consistent with Government Code Section 4215, as between Owner and Contractor, Owner will be responsible for the timely removal, relocation, or protection of existing main or trunk line utility facilities located on the Site only if such utilities are not identified in the Contract Documents or information made available for bidding.
2.13 Public Records Act. Contractor is aware that this Agreement and any documents provided to the Owner may be subject to the California Public Records Act and may be disclosed to members of the public upon request. It is the responsibility of the Contractor to clearly identify information in those documents it considers tobe confidential under the California Public Records Act. To the extent that Owner agrees with that designation, such information will be held in confidence whenever possible. All other information will be considered public.
2.14 Claims.
A. Should any clarification, determination, action or inaction by Owner, Work, or any other event, in the opinion of Contractor, exceed the requirements of or not comply with Contract Documents, or otherwise result in Contractor seeking additional compensation in time or money or damages for any reason (collectively "Disputed Work"), then Contractor and Owner will make good faith attempts to resolve informally any and all such issues, claims and/or disputes. Before commencing the Disputed Work, or within seven Days after Contractor's first knowledge of the Disputed Work, whichever is earlier, Contractor shall file a written notice and cost proposal for the Disputed Work with City stating clearly and in detail its objection and reasons for contending the Work or interpretation is outside the requirements of Project Documents. If a written notice and cost proposal for Disputed Work is not issued within this time period, or if Contractor proceeds with the Disputed Work without first having given the notice required by this paragraph, Contractor shall waive its rights to further claim on the specific issue.
B. Owner will review Contractor's timely notice and cost proposal for Disputed Work and provide a decision. If, after receiving the decision, Contractor disagrees with it or still considers the Work required of it to be outside of the requirements of Project Documents, it shall so notify Owner, in writing, within seven Days after receiving the decision, by submitting a notice of potential claim, stating that a formal claim will be issued. Within 30 Days of receiving the decision, Contractor shall submit its claim in the form specified herein and all arguments, justification, cost or estimates, schedule analysis, and detailed documentation supporting its position. Contractor's failure to furnish notification within seven Days and all justifying documentation within 30 Days will result in Contractor waiving its right to the subject claim.
C. Claim Format
1. A. Contractor shall submit the claim justification in the following format:
City of Pacifica Contract 05/20 v1 00 5205 - 6
(a) Cover letter and certification;
(b) Summary of claim, including underlying facts, entitlement, schedule analysis, quantum calculations, Project provisions supporting relief;
(c) List of documents relating to claim including Specifications, Drawings/Plans clarifications/requests for information, schedules, notices of delay, cost calculations and any others;
(d) Chronology of events and correspondence:
(e) Analysis of claim merit;
(f) Analysis of claim cost; and
(g) Attach supporting documents referenced in paragraph
2.14,C.1(c), above.
D. Required Provisions on Contract Claim Resolution
1. Public Contract Code Section 9204 specifies provisions on resolving contract claims of any size, and Public Contract Code Section 201014, et seq., specifies required provisions on resolving contract claims less than $375,000. Those statutes constitute a part of this Contract. In the event any other Contract provision violates such statutes, the applicable statute controls.
(End of Appendix B)
Appendix C to Contract
INSURANCE
City of Pacifica Contract 12/22 v1 00 5205 - 7
1. Commercial General Liability Insurance, written on an “occurrence” basis with coverage at least as broad as Insurance Services Office (ISO) form CG 00 01, which shall provide coverage for bodily injury, death and property damage resulting from operations, liability for slander, false arrest and invasion of privacy, blanket contractual liability, broad form endorsement, and completed operations, personal and advertising liability, with limits of not less than $5,000,000 general aggregate and $5,000,000 each occurrence. All self-insurance, self-insured retentions, and deductibles must be declared and approved by the Owner.
2. Business Automobile Liability Insurance using ISO Business Auto Coverage form CA 00 01 (or equivalent), with limits not less than $5,000,000 each accident including coverage for owned, non-owned and hired vehicles. All self-insurance, self-insured retentions, and deductibles must be declared and approved by the Owner.
3. Workers’ Compensation Employers’ Liability limits not less than $1,000,000 each accident, $1,000,000 per disease and $1,000,000 aggregate. Contractor’s Workers’ Compensation Insurance policy shall contain a Waiver of Subrogation against the Owner, its council members, officers, directors, officials, agents, employees and volunteers. In the event Contractor is self-insured, it shall furnish Certificate of Permission to Self-Insure signed by Department of Industrial Relations Administration of Self-Insurance, State of California.
4. Builder’s Risk Insurance including, without limitation, coverage against loss or damage to the Work by fire, lightening, wind, hail, aircraft, riot, vehicle damage, explosion, smoke, falling objects, vandalism, malicious mischief, collapse, and other such hazards as are normally covered by such coverage. Such insurance shall be in amount equal to the full replacement value on an "all-risk" or special causes of loss basis, including earthquake and flood (without deduction for depreciation and subject to stipulated value in lieu of average clause) of all construction constituting any part of the Work, excluding the cost of excavations, of grading and filling of the land, and except that such insurance may be subject to deductible clauses not to exceed $10,000 for any one loss.
The Contractor shall be the named insured, and the Owner and subcontractors of any tier shall be named as insureds. Such insurance will not cover loss or damage to Contractor’s equipment, scaffolding or other materials not to be consumed in the construction of the Work. The insurer shall waive all rights of subrogation against Owner.
5. Any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits shall be available to the Owner Indemnities as Additional Insureds. The requirements for coverage and limits shall be the greater of either the minimum coverage and limits specified in this Agreement or the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured.
6. Insurance policies in this Appendix C shall contain an endorsement containing the following terms:
6.01 Owner Indemnities shall be named as Additional Insureds, but only with respect to liability arising out of the activities of the named insured, and there shall be a waiver of subrogation as to each named and Additional Insured. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the Owner has received a waiver of subrogation endorsement from the insurer.
6.02 The policies shall apply separately to each insured against whom claim is made or suit is brought except with respect to the limits of the company’s liability.
6.03 Written notice of cancellation, non-renewal or of any material change in the policies shall be mailed to City of Pacifica thirty (30) days in advance of the effective date thereof.
6.04 Contractor insurance shall be primary insurance as to Owner and no other insurance or self-insured retention carried or held by any named or Additional Insureds other than Contractor shall be called upon to contribute to a loss covered by insurance for the named insured.
6.05 Certificates of Insurance and Endorsements shall have clearly typed thereon the Project Name, shall clearly describe the coverage and shall contain a provision requiring the mailing of written notices of cancellation described in clause 6.03 above. Contractor shall furnish the Owner with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the Owner before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The Owner reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
7. All policies of insurance shall be placed with insurers acceptable to Owner. The insurance underwriter(s) must be duly licensed to do business in the State of California and (other than for workers’ compensation) must have an A. M. Best Company rating of A-VII or better. Required minimum amounts of insurance may be increased should conditions of Work, in the opinion of Owner, warrant such increase. Contractor shall increase required insurance amounts upon direction by Owner.
8. The insurance coverage limits may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of Owner and Additional Insureds, to the extent required by this Agreement, before the Owner’s insurance or self-insurance may be called upon to protect Owner as a named insured.
9. All self-insured retentions (SIR) must be disclosed to Owner for approval and shall not reduce the limits of liability coverage. Policies containing and SIR provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named Contractor/named insured or Owner.
10. Contractor agrees to include with all subcontractors in their subcontracts the same requirements and provisions of this Agreement that is required of Contractor including, without limitation, the indemnity and insurance requirements to the extent they apply to the scope of the subcontractor’s work. Subcontractors hired by Contractor shall agree to be bound to Contractor and Owner in the same manner and to the same extent as Contractor is bound to Owner under this Contract and its accompanying documents. Subcontractors shall further agree to include these same provisions with any lower tier subcontractors. A copy of the indemnity and insurance provisions of this Agreement will be furnished to the Subcontractor upon request. Contractor shall require all subcontractors to provide a valid Certificate of Insurance and the required endorsements included in the subcontract agreement, and will provide proof of compliance to the Owner prior to commencement of any work by the subcontractor.
11. Special Risks or Circumstances: City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. (End of Appendix C)
Appendix D to Contract
CONSTRUCTION PERFORMANCE BOND
City of Pacifica Contract 12/22 v1 00 5205 - 8
KNOW ALL PERSONS BY THESE PRESENTS:
12. THAT WHEREAS, City of Pacifica, a political subdivision of the State of California (Owner) has awarded to KONE, INC, as Principal, a Purchase Order Agreement, dated the 15th day of July, 2025 (Agreement), titled THE CCWRP ADMIN BUILDING ELEVATOR
MODERNIZATION PROJECT in the amount of $205,232, which
Agreement is by this reference made a part hereof, for the work described as follows:
13. The CCWRP Admin Building Elevator Modernization Project includes: installing new wiring, conduit, and duct, installing new car door panel, new door operator, restrictive clutch, car door track, gate switch, car hangers, door panel adapters, OEM interlocks, and hoistway pick up rollers. Installing new spring dampened roller guide shoes, safety valves, and submersible power unit and other miscellaneous work, described in Appendix A Scope of Work.
.
14. AND WHEREAS, Principal is required to furnish a bond in connection with the Agreement, guaranteeing the faithful performance thereof;
15. NOW, THEREFORE, we, the undersigned Principal and
_________________________ as Surety are held and firmly bound unto Owner in the sum of 100% OF THE CONTRACT SUM to be paid to Owner or its successors and assigns; for which payment, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
16. THE CONDITION OF THIS OBLIGATION IS SUCH, that if
Principal, or its heirs, executors, administrators, successors, or assigns approved by Owner, shall promptly and faithfully perform the covenants, conditions, and agreements of the Agreement during the original term and any extensions thereof as may be granted by Owner, with or without notice to Surety, and during the period of any guarantees or warranties required under the Agreement, and shall also promptly and faithfully perform all the covenants, conditions, and agreements of any alteration of the Agreement made as therein provided, notice of which alterations to Surety being hereby waived, on Principal’s 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, defend, protect, and hold harmless Owner as stipulated in the Agreement, then this obligation shall become and be null and void; otherwise it shall be and remain in full force and effect.
17. No extension of time, change, alteration, modification, or addition to the Agreement, or of the work required thereunder, shall release or exonerate Surety on this bond or in any way affect the obligation of this bond; and Surety does hereby waive notice of any such extension of time, change, alteration, modification, or addition.
18. Whenever Principal shall be and declared by Owner in default under the Agreement, Surety shall promptly remedy the default, or shall promptly:
18.01 Undertake through its agents or independent contractors, reasonably acceptable to Owner, to complete the Agreement in accordance with its terms and conditions and to pay and perform all obligations of Principal under the Agreement including, without limitation, all obligations with respect to warranties, guarantees, indemnities, and the payment of liquidated damages; or
18.02 Obtain a bid or bids for completing the Agreement in accordance with its terms and conditions, and, upon determination by Owner of the lowest responsible bidder, reasonably acceptable to Owner, arrange for a contract between such bidder and Owner and make available as work progresses (even though there should be a default or a succession of defaults under the contract or contracts of completion arranged under this paragraph) sufficient funds to pay the cost of completion less the balance of the Contract Sum, and to pay and perform all obligations of Principal under the Agreement including, without limitation, all obligations with respect to warranties, guarantees, and the payment of liquidated damages; but, in any event, Surety’s total obligations hereunder shall not exceed the amount set forth in the third paragraph hereof. The term “balance of the Contract Sum,” as used in this paragraph, shall mean the total amount payable by Owner to the Principal under the Agreement and any amendments thereto, less the amount Owner paid to Principal.
19. Surety’s obligations hereunder are independent of the obligations of any other surety for the performance of the Agreement, and suit may be brought against Surety and such other sureties, jointly and severally, or against any one or more of them, or against less than all of them without impairing Owner’s rights against the others. Surety may not use Contractor to complete the Agreement absent Owner’s written consent.
20. No right of action shall accrue on this bond to or for the use of any person or corporation other than Owner or its successors or assigns.
21. Surety may join in any proceedings brought under the Agreement and shall be bound by any judgment.
22. Correspondence or claims relating to this bond shall be sent to Surety at the address set forth below.
IN WITNESS WHEREOF, we have hereunto set our hands
this 15th day of July, 2025.
CONTRACTOR AS PRINCIPLE
Company: KONE, INC. (Corp. Seal)
_____________________________________________
Signature
_____________________________________________
Name
_____________________________________________
Title
_____________________________________________
Street Address
_____________________________________________
City, State, Zip Code
SURETY
Company: (Corp. Seal)
_____________________________________________
Signature
_____________________________________________
Name
_____________________________________________
Title
_____________________________________________
Street Address
_____________________________________________
City, State, Zip Code
Appendix E to Contract
CONSTRUCTION LABOR AND MATERIAL PAYMENT BOND
City of Pacifica Contract 12/22 v1 00 5205 - 9
KNOW ALL PERSONS BY THESE PRESENTS:
23. THAT WHEREAS, the City of Pacifica, a political subdivision of the State of California (Owner) has awarded to KONE, INC., as Principal, a Construction Services Agreement, dated the 15th day of July, 2025 (Agreement), titled THE CCWRP ADMIN BUILDING ELEVATOR MODERNIZATION PROJECT located at 700 Pacific
Coast Highway, Pacifica, CA 94044 in the amount of $205,232, which Agreement is by this reference made a part hereof, for the work described as follows:
The CCWRP Admin Building Elevator Modernization Project includes:
installing new wiring, conduit, and duct, installing new car door panel, new door operator, restrictive clutch, car door track, gate switch, car hangers, door panel adapters, OEM interlocks, and hoistway pick up rollers. Installing new spring dampened roller guide shoes, safety valves, and submersible power unit and other miscellaneous work, described in Appendix A Scope of Work.
.
24. AND WHEREAS, Principal is required to furnish a bond in connection with the Agreement to secure the payment of claims of laborers, mechanics, material suppliers, and other persons as provided by law;
25. NOW, THEREFORE, we, the undersigned Principal and
______________________________ as Surety, are held and firmly bound unto Owner in the sum of 100% OF THE CONTRACT SUM Two Hundred Five thousand and Two Hundred Thirty-Two Dollars ($205,232), for which payment well and truly to be made we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
26. THE CONDITION OF THIS OBLIGATION IS SUCH, that if
Principal, or its heirs, executors, administrators, successors, or assigns approved by Owner, or its subcontractors shall fail to pay any of the persons named in California Civil Code Section 9100, or amounts due under the State of California Unemployment Insurance Code with respect to work or labor performed under the Agreement, or for any amounts required to be deducted, withheld, and paid over to the State of California Employment Development Department from the wages of employees of Principal and subcontractors pursuant to California Unemployment Insurance Code Section 13020 with respect to such work and labor, that Surety will pay for the same in an amount not exceeding the sum specified in this bond, plus reasonable attorneys’ fees, otherwise the above obligation shall become and be null and void.
27. This bond shall inure to the benefit of any of the persons named in California Civil Code Section 9100, as to give a right of action to such persons or their assigns in any suit brought upon this bond. The intent of this bond is to comply with the California Mechanic’s Lien Law.
28. Surety, for value received, hereby expressly agrees that no extension of time, change, modification, alteration, or addition to the undertakings, covenants, terms, conditions, and agreements of the Agreement, or to the work to be performed thereunder, shall in any way affect the obligation of this bond; and it does hereby waive notice of any such extension of time, change, modification, alteration, or addition to the undertakings, covenants, terms, conditions, and agreements of the Agreement, or to the work to be performed thereunder.
29. Surety’s obligations hereunder are independent of the obligations of any other surety for the payment of claims of laborers, mechanics, material suppliers, and other persons in connection with the Agreement; and suit may be brought against Surety and such other sureties, jointly and severally, or against any one or more of them, or against less than all of them without impairing Owner’s rights against the other.
30. Correspondence or claims relating to this bond shall be sent to Surety at the address set forth below.
IN WITNESS WHEREOF, we have hereunto set our hands this 15th day of July, 2025.
CONTRACTOR AS PRINCIPLE
Company: KONE, INC. (Corp. Seal)
_____________________________________________
Signature
_____________________________________________
Name
_____________________________________________
Title
_____________________________________________
Street Address
_____________________________________________
City, State, Zip Code
SURETY
Company: (Corp. Seal)
_____________________________________________
Signature
_____________________________________________
Name
_____________________________________________
Title
_____________________________________________
Street Address
_____________________________________________
City, State, Zip Code
(End of Appendix E)
Appendix F to Contract
SUPPLEMENTAL CONDITIONS
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1. Plans
Project plans will be required for this Project.
2. Shop Drawings
Shop drawings will be required on this Project.
3. Dust Control and Cleanup
During the construction period, the dust level shall be kept at a minimum. The premises shall also be kept free from the
accumulation of waste material or rubbish. Failure to meet this requirement may result in project shutdown.
The final cleaning shall leave the facilities ready for use with no additional cleanup. Use no cleaning materials which will contaminate the ocean. At the completion of the contract, the Contractor shall remove all remaining litter, debris, materials, temporary structures and equipment from the site. The premises shall be left in a clean and orderly condition acceptable to the City Engineer.
In the event Contractor leaves the job overnight in an unclean condition, City may take action to provide necessary requirements and will deduct the cost of doing so from subsequent Contractor payments.
4. Public Safety
Contractor shall be responsible during all phases of work to provide for public safety and convenience. It shall be the Contractor’s responsibility to provide adequate provisions to assure the safety of the general public throughout the duration of the project, including periods when no work is being performed.
The site shall be thoroughly fenced-off when work is not actively in progress, and lighted barricades shall be placed around any obstructions not encompassed by this fence.
In the event Contractor leaves the job overnight in an unsafe condition, or fails to provide for public safety and convenience, City may take action to provide necessary requirements and will deduct the cost of doing so from subsequent Contractor
payments.
All applicable safety regulations shall be complied with to protect the public and the Contractor’s employees. Strict compliance with Cal/OSHA safety requirements in doing the work is required.
5. Prevailing Wage Rates
The Contractor shall post, in a location on the job site, the prevailing wage rate Determination which is applicable to this project.
6. Discrimination
No discrimination shall be made in the employment of persons upon public works because of the race, sex, age, color, national origin, creed, sexual orientation or marital status of such persons and every contractor for public works violating this section is subject to all the penalties imposed for a violation of Section 1735 of the California Labor Code.
7. Employment of Apprentices
Attention is directed to the provisions in Sections 1777.5 (Chapter 1411, Statutes of 1967) and 1777.6 of the Labor Code concerning the employment of apprentices by the Contractor or any
subcontractor under him.
The Contractor and any subcontractor shall comply with the requirements of Sections 1777.5 and 1777.6 in the employment of apprentices.
Information relative to apprenticeship standards, wage schedules and other requirements may be obtained from the Director of Industrial Relations, ex officio the Administrator of Apprenticeship, San Francisco, California, or from the Division of Apprenticeship Standards and its branch offices.
8. Materials and Supplies
All materials and supplies called for by contractor’s scope and proposal and shall be new unless otherwise specified.
9. Protection
The Contractor shall provide adequate protection for the site and surroundings throughout the work. All damage done to existing property shall be neatly repaired or replaced at the Contractor’s expense. Work shall be executed in a careful and orderly manner with the least possible disturbance to public and occupants of the area.
The Contractor shall conduct his operations in such a manner as to avoid damage to existing improvements and adjacent property.
The Contractor shall, at its sole cost and expense, repair or replace any damage occurring from his operations to pursue completion of the contract. The repairs and replacement shall be to the satisfaction of the Engineer and according to City standards and practices. The minimum repair or replacement shall be equal to surrounding existing conditions or better, and the Engineer’s decision as to acceptable repair or replacement shall be final. The burden of proof as to whether there was existing damage by the Contractor shall rest with the Contractor.
The site shall be maintained in a neat and orderly manner at all times. All existing facilities shall be protected and, if they are damaged or destroyed by the Contractor, shall be restored or replaced in kind at his expense, to their original conditions, or better, as approved by the City or other owner thereof. The site shall be secured at the conclusion of each work day.
10. Inspections
Inspectors, employed by the City, shall be authorized to inspect all work done and all materials furnished. Such inspection may extend to all or any part of the work on the project and to the preparation, fabrication or manufacture of the materials to be used. An inspector is not authorized to revoke, alter or waive any requirements of the specifications. He is authorized to call the attention of the Contractor to any failure of the work or materials to conform to the specifications and contract. He shall have the authority to reject materials or suspend the work until any question at issue can be referred to and decided by the Engineer.
An inspector will in no case act as foreman or perform other duties for the Contractor, nor interfere with the Contractor’s management of the work.
In case the Contractor refuses to suspend operations on verbal order, the inspector giving such verbal order will then issue the order in writing. After placing the order in the hands of the person in charge of the work for the Contractor, the inspector will immediately leave the job. Work done during the absence of the inspector will not be accepted or compensated.
The Contractor shall prosecute work only in the presence of an authorized inspector or authorized representative of the Engineer, and any work done without such inspection shall be at the Contractor’s risk and be subject to rejection.
The Contractor shall furnish the Engineer with every reasonable facility for ascertaining whether or not the work, as performed, is Appendix F to Contract
SUPPLEMENTAL CONDITIONS
City of Pacifica Contract 05/20 v1 00 5205 - 11
in accordance with the requirements and intent of the
specifications and contract. The Contractor shall at all times and for any purpose permit the Engineer and any of his
representatives and representatives of the City to have access to the work and the premises used by the Contractor.
11. Defective Materials
Any materials condemned or rejected by the Engineer as not meeting the requirements of these specifications may be branded or otherwise marked by the Engineer and shall, on demand, be at once removed by the Contractor to a satisfactory distance from the work.
If the Contractor does not remove such material within a reasonable time, fixed by written notice, the City may remove and store the materials at the expense of the Contractor. If the Contractor does not pay the expense of such removal and storage within ten days thereafter, the City may, upon ten days’ written notice, sell such materials at auction or at private sale. The City will account for the net proceeds thereof after deducting all the costs and expenses that should have been borne by the
Contractor.
No partial payment, inspection, taking possession of, or other act made or done by the Engineer or the City with respect to the work prior to the final completion and acceptance thereof shall relieve Contractor from performing the Work in accordance with this contract, and shall not affect or prejudice the right of the Engineer or the City to reject any defective work or material or to require the Contractor complete fulfillment of all the provisions of the contract.
If the Engineer deems it expedient and not in the best interests of the City to correct work injured or done not in accordance with the contract, the defective work may be accepted subject to an equitable deduction from the contract price which may be made therefor by the City upon certificate from the Engineer.
12. Temporary Suspension of Work and Extension of Time for Performance
When conditions at the site of the proposed work are
unsatisfactory for the prosecution of a part or all of the work as adjudged by the Contractor and he is forced to suspend such work until reasonable conditions for its prosecution exist, he may request, in writing, that the Engineer authorize such suspension of work. Without the Engineer’s approval, any suspensions violate this specification. Unsatisfactory conditions may include, but not limited to: inclement weather, excessively high surf and/or tides, strikes, excessive high or low ambient temperature and inability of delivery of materials by suppliers for good reason.
When, in the opinion of the Engineer, suspensions of work are beyond the control of both the Contractor and the City (including, without limitation, adverse weather, conditions, earthquakes, force majeure events), the time of performance as set forth in the Agreement will be extended by the Engineer, in writing, by a period of time equal to that lost due to the delay occasioned by the allowed suspension, all at no additional cost to the City and without waiver of remedies for nonproliferation of the work. Such allowed suspension of work shall not relieve the Contractor of his contractual responsibilities.
13. Laws and Regulations
The Contractor shall comply with all local, regional, State and Federal laws and regulations at all times. In addition, the Contractor shall meet the standards set by the Air Quality Act for Noise and Pollution. If there is any conflict between these specifications and provisions and any laws or regulations, the matter shall be brought to the attention of the Engineer immediately.
14. Sound Control Requirements
The Contractor shall comply with all local sound control and noise level rules, regulations and ordinances which apply to any work performed pursuant to the contract.
Each internal combustion engine, used for any purposes on the job or related to the job, shall be equipped with a muffler of a type recommended by the manufacturer. No internal combustion engine shall be operated on the project without said muffler.
15. Air Pollution Control
The Contractor shall comply with all air pollution control rules, regulations, ordinances and statutes which apply to any work performed pursuant to the contract, involving any air pollution control rules, regulations, ordinances and statutes specified in Section 11017 of the Government Code.
16. Water Pollution
General:
Contractor shall take all measures necessary to prevent debris or contamination from entering the ocean. Best Management
Practice (BMP) shall be enforced at all times.
Correction of Inadequate Pollution and Erosion Control
Measures:
If the measures being taken by the Contractor are inadequate to control water pollution effectively, the City Engineer may direct the Contractor to revise operations. The directions will be in writing and will specify the items of work for which the Contractor’s water pollution control measures are inadequate. No further work shall be performed on those items until the water pollution control measures are made adequate.
Abatement of Other Water Pollution:
The cleanup of water pollution by chemicals, petroleum products, cement or by the escape of any other material that is harmful or potentially harmful, from the work site as a result of the Contractor’s operations, into drainage systems or the ocean shall be the financial responsibility of the Contractor. The means of cleanup and the party or parties to be engaged to perform the cleanup work shall be determined by the Engineer in consultation with appropriate hazardous materials, pollution control, safety, health and wildlife authorities and officials. The Contractor shall immediately carry out cleanup orders issued to him through or by the Engineer and shall make the work site accessible to personnel and equipment from outside pollution control resources called in by the Engineer. The cost of cleanup action called for by the Engineer and performed by outside resources shall be deducted from any monies due or become due the Contractor.
Compensation:
Full compensation for conforming to the requirements of this section shall be considered as included in the Contract Sum paid for the various items of work and no additional compensation will be allowed therefor.
17. Environmental Protection Requirements
Source Reduction and Recycling
The California Integrated Waste Management Act of 1989 (AB 939) mandates that 25 percent of the waste stream in the City of Pacifica be diverted from landfill by 1995 and that this diversion increase to 50 percent by 2000. AB 939 also required the City of Pacifica to prepare and adopt a Source Reduction and Recycling Appendix F to Contract
SUPPLEMENTAL CONDITIONS
City of Pacifica Contract 05/20 v1 00 5205 - 12
Element (SRRE) outlining recommended programs to meet the above noted diversion goals. One of the approved SRRE
programs is to require the utilization of recycled construction materials for City projects. All work performed under this contract and all contractors and their associates and/or employees shall utilize recycled materials and recycle construction materials where feasible. Construction/Demolition Recycling Resources Lists are available from the Pacifica Planning Department and the California Integrated Waste Management Board.
Contractor shall reuse or recycle any useful construction materials generated during the project.
Disposal
At the end of each working day, the Contractor shall collect all scrap, debris and waste material and dispose of such materials properly.
Hazardous Material/Waste Management
A. Storage
The Contractor shall label and store all hazardous
materials, such as pesticides, paints, thinners,
solvents, and fuels; and all hazardous wastes, such as
waste oil and antifreeze; in accordance with the City of Pacifica Hazardous Materials Storage Ordinance and
all applicable State and Federal regulations.
The Contractor shall store all hazardous materials and
all hazardous wastes in accordance with secondary
containment regulations, and it is recommended that
these materials and wastes be covered, as needed, to
avoid potential management of collected rain water as
a hazardous waste.
The Contractor shall keep an accurate, up-to-date
inventory, including Material Safety Data Sheets
(MSDSs), of hazardous materials and hazardous
wastes stored on-site, to assist emergency response
personnel in the event of a hazardous materials
incident.
B. Disposal
The Contractor shall use secondary containment, such
as a drip pan, to catch leaks or spills any time that
vehicle or equipment fluids are dispensed, changed or
poured.
The Contractor shall keep a stockpile of spill cleanup
materials, such as rags or absorbents, readily
accessible on site.
The Contractor shall clean up leaks and spills of vehicle or equipment fluids immediately and dispose of the
waste and cleanup materials as hazardous waste, as
described in the section above.
The Contractor shall not wash any spilled material into streets, gutters, storm drains or creeks and shall not
bury spilled hazardous materials.
The Contractor shall report any hazardous materials
spill to the City of Pacifica Building Division at (650) 738-7344.
The Contractor shall inspect vehicles and equipment
arriving on site for leaking fluids and shall promptly
repair leaking vehicles and equipment. Drip pans shall
be used to catch leaks until repairs are made.
C. Activity-Specific Requirements
The following requirements shall be met on all projects within the City of Pacifica that include the listed
activities.
Concrete, Grout and Mortar Waste Management
Material Management:
The Contractor shall store concrete, grout,
and mortar away from drainage areas and
ensure that these materials do not enter the
storm drain system or the ocean waters.
Concrete Truck/Equipment Wash Out:
The Contractor shall not wash out concrete
trucks or equipment into streets or gutters.
The Contractor shall perform washout of
concrete trucks or equipment off-site or in a
designated area on-site where the water will
flow onto dirt or into a temporary pit in a dirt
area. The Contractor shall let the water
percolate into the soil and dispose of the
hardened concrete in a trash container. If a
suitable dirt area is not available, then the
Contractor shall collect the wash water and
remove it off-site.
18. Layout of Work
Layout of work shall be done by the Contractor. Contractor shall mark the work area limits and facilities to be removed and replaced. All layout shall be approved by the City.
19. Substitutions
Substitutions in material or methods of construction, when necessary because of material shortages or in order to avoid serious delay may be made only after they are approved by the City Engineer in writing.
20. Traffic Control and Public Access
The Contractor shall be responsible for proper traffic control to assure public safety and convenience. Continuous safe public access shall be maintained to residential structures at all times.
21. Material and Workmanship
All materials and workmanship are to be the best of their respective kinds. The terms “or equal,” “approved,” “selected” and so forth shall mean as approved, etc. by the City Engineer. All materials and equipment used should be in accordance with the manufacturer’s printed directions.
Use adequate numbers of skilled workmen who are thoroughly trained and experienced in necessary crafts and who are completely familiar with the specified requirements and methods needed for proper performance of work specified. Use equipment adequate in terms of size, capacity and numbers to accomplish work in a timely manner.
22. Drug-Free Workplace
The Contractor is required to comply with the Drug-Free Workplace Act of 1988. The requirements of the Drug-Free Appendix F to Contract
SUPPLEMENTAL CONDITIONS
City of Pacifica Contract 05/20 v1 00 5205 - 13
Workplace Policy are described in City of Pacifica Administrative Policy Number 46.
23. Harassment and Discrimination
The Contractor is required to comply with City of Pacifica Administrative Policy Number 33, Harassment and Discrimination in the Workplace.
24. Payroll Records
Contractor and each Sub-Contractor shall keep an accurate payroll record, showing the name, address, social security number, work week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him in connection with the public work. All payroll records shall be certified and maintained by the Contractor and be made available to auditors and managers from the City upon request.
(End of Appendix F)