Section 00500
Contract
THIS CONSTRUCTION CONTRACT FY 2026 STREET IMPROVEMENT PROGRAM (PAVEMENT REPAIRS), PROJECT NO. 16318 (“Contract”) is made this _____ day of _________, 2026, in the County of Orange, State of California, by and between the City of San Clemente, a municipal corporation (“CITY”), and TOWO Enterprise Inc., a California corporation with its principal place of business at 2536 Fender Avenue, Suite D, Fullerton, CA 92831 (“Contractor”). City and the Contractor for the considerations stated herein agree as follows:
SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated the contract and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5 below for the following Project:
FY 2026 Street Improvement Program (Pavement Repairs), Project No. 16318 The Contractor and its surety shall be liable to City for any damages arising as a result of the Contractor’s failure to comply with this obligation.
TIME FOR COMPLETION. The Work shall be commenced on the date stated in City’s Notice to Proceed. The Contractor is required to commence each work order within ten (10) working days of receiving a work request for specific Pavement Repair Services from the City. The Contractor shall complete all Work required by the Contract Documents within the number of working days from the date specified in the written Notice to Proceed for each work order. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.
CONTRACT PRICE. City shall pay to the Contractor as full compensation for the performance of the Contract and the Work, which includes everything that is reasonably foreseeable related thereto, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum listed on each work order, which shall be based on the unit prices contained in the Contractor’s Bid Form. Total compensation under this Contract shall not exceed Five Hundred Thousand Dollars ($500,000) for the initial one-year contract term, with an option to renew for up to three (3) additional one-year terms exercisable at the discretion of the City Manager. The City retains the right to exercise the optional renewal(s) at its sole and absolute discretion. Option year pricing may be negotiated by the Contractor upon written request at least ninety (90) days before the end of the then current term. Any unit cost price rate increase shall not exceed the percentage of change in the United States Bureau of Labor Statistics (BLS) Consumer Price Index “All Urban Consumers for Los Angeles-Riverside-Orange County, California (CPI-U)” not seasonally adjusted, for the most recent twelve months for which statistics are available. Renewal term(s) shall only be effective upon the City exercising its option in writing. Any price adjustments shall not be effective until execution of an amendment to the Contract by both parties. Payment shall be made as set forth in the General Conditions.
At any time during the term of the Contract, City may, pursuant to the terms and provisions of the Contract Documents, request that the Contractor perform additional work. Contractor shall not perform, nor be compensated for, additional work without written authorization from the City pursuant to the terms and provisions of the Contract Documents. Additional work that would cause total compensation to exceed Five Hundred Thousand Dollars ($500,000) per one contract year requires prior approval of City Council and shall not be authorized without such prior approval.
LIQUIDATED DAMAGES/EARLY COMPLETION INCENTIVE. In accordance with Government Code section 53069.85, it is agreed that the Contractor will pay City the sum of $1,000 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event that Liquidated Damages are not paid, the Contractor agrees City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents.
COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following:
Notice Inviting Bids
Instructions to Bidders
Bid Form
Contractor’s Certificate Regarding Workers’ Compensation Bid Bond
Non-Collusion Declaration Form
Contractor Information and Experience Form
List of Subcontractors Form
Iran Contracting Act Certification
Public Works Contractor Registration Certification
Contract
Performance Bond
Payment Bond
General Conditions
Special Conditions
Technical Specifications
Addenda
Plans and Drawings
Approved and fully executed change orders
Any other documents contained in or incorporated into the Contract The Contactor shall complete the Work in strict accordance with all of the Contract Documents.
All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties.
PROVISIONS REQUIRED BY LAW. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Project.
INDEMNIFICATION. Contractor shall provide indemnification as set forth in the General Conditions.
PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at CITY CLERK, CITY OF SAN CLEMENTE or may be obtained online at http//www.dir.ca.gov/dlsr. and which must be posted at the job site.
IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written. [Signatures on following page]
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed on the respective dates set forth opposite of their signatures.
CITY OF SAN CLEMENTE
By:________________________________
Andy Hall, City Manager
ATTEST: Dated: __________________, 20____
_____________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
_____________________________
Elizabeth A. Mitchell, City Attorney
APPROVED AS TO AVAILABILITY
OF FUNDING:
_____________________________
Finance Authorization
TOWO ENTERPRISE INC., a California corporation
(“CONTRACTOR”)
By:_____________________________
YUN SU CHUNG, CEO, Secretary, CFO
Dated: __________________, 20____
END OF CONTRACT
Attachment 2