8H
Date: June 3, 2025
To: Honorable Mayor and Members of the City Council
From: Shant Megerdichian, General Services Director
By: Milton Sanabria, Administrative Services Manager | [email protected] Subject: General Services – Approve Design Build Agreement, Appropriate Funds for HVAC Replacement at Torrance Municipal Airport – Zamperini Field and Adopt California Environmental Quality Act (CEQA) Categorical Exemption Pursuant to Section 15301 Expenditure: $807,344 (Non-General Fund).
RECOMMENDATION
Recommendation of the General Services Director that City Council:
1. Approve a design build agreement with ACCO Engineered Systems in the amount of $733,949 and authorize a 10% project contingency of $73,395 for HVAC Replacement at Torrance Municipal Airport – Zamperini Field for a two-year period beginning June 3, 2025, and ending June 30, 2027; and
2. Appropriate $807,344 from Airport Fund’s fund balance to project FAC0017-6002-BI0001 (Renovate Airport Traffic Control Tower); and
3. Adopt a California Environmental Quality Act (CEQA) Categorical exemption pursuant to Section 15301 (Existing Facilities).
FUNDING
Funding is available from project FAC0017-6002-BI0001 (Renovate Airport Traffic Control Tower).
DISCUSSION
The Airport FAA Control Tower’s Heating, Ventilation, Air Conditioning (HVAC) system is experiencing critical flow issues and requires immediate attention for replacement to take place as early as possible. The facility index report identifies components to be addressed in the design build project, as the entire system requires upgrading, including updating the controls. The new equipment is anticipated to last approximately 20 years as the system operates 7 days per week, 16 hours per day.
ACCO Engineered Systems provided a thorough design build proposal, after extensive research to make sure everything required is included. The design build proposal includes Like-for-Like replacement, redundancy to critical equipment, and engineering to verify accurate equipment 1 City Council
June 3, 2025
5 2
0 selection. The proposal includes engineering for mechanical, electrical, controls, structural, procurement of equipment and controls and installation.
Design is anticipated to take one year before the onsite work can begin. Coordination with FAA will take place during the onsite work for any power interruptions.
ACCO Engineered Services is contracted through cooperative purchase to maximize cost savings, staff resources, and expedite the public bidding process. Many government agencies share contracting efforts through cooperative purchasing agreements. The Torrance Municipal Code (TMC) authorizes the City to participate in cooperative purchasing agreements like those established through Omnia while also adhering to the City’s procurement policies.
“ The Torrance Municipal Code (TMC) authorizes the City to participate in cooperative purchasing agreements like those established by OMNIA while also adhering to the City’s procurement policies. A cooperative purchase is allowable under TMC Section 22.3.100 entitled “Exceptions to the Competitive Process” which states: “The competitive selection processes set forth in this Chapter do not apply in the following categories however purchases shall be made in accordance with procedures and regulations established by the City Manager: d) A proposed purchase is at or below the current market price and will result in significant cost savings to the City, or that the proposed purchase is not more than the current market price, and that significant time will be saved by such a purchase.”
With council approval the agreement will be executed immediately.
ENVIRONMENTAL FINDINGS
The proposed action qualifies for exemption from review under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15301. This exemption applies to activities that involve the operation, repair, maintenance, permitting, leasing, licensing, or minor alterations of existing public or private structures, facilities, mechanical equipment, or topographical features, provided there is negligible or no expansion of use beyond what was in place at the time of the lead agency's determination. It includes interior or exterior modifications, such as installing interior partitions, plumbing, and electrical conveyances; maintenance of existing infrastructure like highways, streets, sidewalks, gutters, and trails; and the restoration or rehabilitation of deteriorated or damaged structures or equipment to meet current public health and safety standards, unless substantial damage from environmental hazards, like earthquakes or landslides, is identified.
ATTACHMENTS
1. Design Build Agreement - ACCO Engineered Systems Inc. - DBIA525
2. ACCO Proposal - Torrance Municipal Airport Control Tower - HVAC Replacement
3. ACCO Engineered Systems Inc - Official Signed Omnia Contract
4. ACCO Engineered Systems Inc - Omnia Contract 02-73 Extension 2 STANDARD FORM OF AGREEMENT
BETWEEN OWNER AND DESIGN-
BUILDER - LUMP SUM
Document No. 525
Second Edition, 2010
© Design-Build Institute of America
Washington, DC
3 ATTACHMENT 1
Design-Build Institute of America - Contract Documents
LICENSE AGREEMENT
By using the DBIA Contract Documents, you agree to and are bound by the terms of this License Agreement.
1. License. The Design-Build Institute of America (“DBIA”) provides DBIA Contract Documents and licenses their use worldwide. You acknowledge that DBIA Contract Documents are protected by the copyright laws of the United States. You have a limited nonexclusive license to: (a) Use DBIA Contract Documents on any number of machines owned, leased or rented by your company or organization; (b) Use DBIA Contract Documents in printed form for bona fide contract purposes; and (c) Copy DBIA Contract Documents into any machine-readable or printed form for backup or modification purposes in support of your permitted use.
2. User Responsibility. You assume sole responsibility for the selection of specific documents or portions thereof to achieve your intended results, and for the installation, use, and results obtained from the DBIA Contract Documents. You acknowledge that you understand that the text of the DBIA Contract Documents has important legal consequences and that consultation with an attorney is recommended with respect to use or modification of the text. You will not represent that any of the contract documents you generate from DBIA Contract Documents are DBIA documents unless (a) the document text is used without alteration or (b) all additions and changes to, and deletions from, the text are clearly shown.
3. Copies. You may not use, copy, modify, or transfer DBIA Contract Documents, or any copy, modification or merged portion, in whole or in part, except as expressly provided for in this license. Reproduction of DBIA Contract Documents in printed or machine-readable format for resale or educational purposes is expressly prohibited. You will reproduce and include DBIA’s copyright notice on any printed or machine-readable copy, modification, or portion merged into another document or program.
4. Transfers. You may not transfer possession of any copy, modification or merged portion of DBIA Contract Documents to another party, except that a party with whom you are contracting may receive and use such transferred material solely for purposes of its contract with you. You may not sublicense, assign, or transfer this license except as expressly provided in this Agreement, and any attempt to do so is void.
5. Term. The license is effective for one year from the date of purchase. DBIA may elect to terminate it earlier, by written notice to you, if you fail to comply with any term or condition of this Agreement.
6. Limited Warranty. DBIA warrants the electronic files or other media by which DBIA Contract Documents are furnished to be free from defects in materials and workmanship under normal use during the Term. There is no other warranty of any kind, expressed or implied, including, but not limited to the implied warranties of merchantability and fitness for a particular purpose. Some states do not allow the exclusion of implied warranties, so the above exclusion may not apply to you. This warranty gives you specific legal rights and you may also have other rights which vary from state to state. DBIA does not warrant that the DBIA Contract Documents will meet your requirements or that the operation of DBIA Contract Documents will be uninterrupted or error free.
7. Limitations of Remedies. DBIA’s entire liability and your exclusive remedy shall be: the replacement of any document not meeting DBIA’s "Limited Warranty" which is returned to DBIA with a copy of your receipt, or at DBIA’s election, your money will be refunded. In no event will DBIA be liable to you for any damages, including any lost profits, lost savings or other incidental or consequential damages arising out of the use or inability to use DBIA Contract Documents even if DBIA has been advised of the possibility of such damages, or for any claim by any other party. Some states do not allow the limitation or exclusion of liability for incidental or consequential damages, so the above limitation or exclusion may not apply to you.
8. Acknowledgement. You acknowledge that you have read this agreement, understand it and agree to be bound by its terms and conditions and that it will be governed by the laws of the District of Columbia. You further agree that it is the complete and exclusive statement of your agreement with DBIA which supersedes any proposal or prior agreement, oral or written, and any other communications between the parties relating to the subject matter of this agreement.
4 Instruction Sheet for DBIA Document No. 525 Page 1
© 2010 Design-Build Institute of America
INSTRUCTIONS
For DBIA Document No. 525 Standard Form of Agreement Between Owner and Design-Builder - Lump Sum (2010 Edition)
Checklist
Use this Checklist to ensure that the Agreement is fully completed and all exhibits are attached.
Section 2.1.3 Identify other exhibits to the Agreement
_______ Section 4.2 Note the optional provisions that are provided Section 4.3.2 Complete blanks for additional sum for use of Work Product Section 5.2.1 Complete blanks for calendar days and note the optional language that is provided Section 5.2.2 Insert any interim milestones (optional)
Section 5.4 Complete blanks for liquidated damages and note the optional provisions that are provided
_______ Section 5.5 If the parties select the option provided they have to insert an amount _______ Section 5.6 Complete blanks for early completion bonus and note the optional provision that is provided
_______ Section 5.7 Note the optional provisions that are provided Section 6.1 Complete blanks for Contract Price
Section 6.2 Insert markups for changes and note optional provisions _______ Section 6.3.4 Note the optional provision that is provided _______ Section 6.4.1 Note optional provision
Section 7.1.1 Complete blanks for day of month
Section 7.2.1 Complete blanks for retention percentage and note optional provision Section 7.4 Complete blanks for interest rate
Section 8.1.3 Choose overhead/profit method for termination for convenience Section 8.2.1 Complete blanks for percentages
Section 8.2.2 Complete blanks for percentages
Section 9.1.1 Insert Owner’s Senior Representative’s name, etc. (optional) Section 9.1.2 Insert Owner’s Representative’s name, etc. (optional) Section 9.2.1 Insert Design-Builder’s Senior Representative’s name, etc. (optional) Section 9.2.2 Insert Design-Builder’s Representative’s name, etc. (optional) Section 10.1 Attach Insurance Exhibit
Section 10.2 Insert amount and conditions of bonds or other security and note the options that are provided
Section 11.1 Insert any other provisions (optional)
Last Page Owner’s and Design-Builder’s execution of the Agreement 5 Instruction Sheet for DBIA Document No. 525 Page 2
© 2010 Design-Build Institute of America
General Instructions
No. Subject Instruction
1. Standard Forms
Standard form contracts have long served an important function in the United States and international construction markets. The common purpose of these forms is to provide an economical and convenient way for parties to contract for design and construction services. As standard forms gain acceptance and are used with increased frequency, parties are able to enter into contracts with greater certainty as to their rights and responsibilities.
2. DBIA Standard
Form Contract
Documents
Since its formation in 1993, the Design-Build Institute of America (“DBIA”) has regularly evaluated the needs of owners, design-builders, and other parties to the design-build process in preparation for developing its own contract forms. Consistent with DBIA’s mission of promulgating best design-build practices, DBIA believes that the design-build contract should reflect a balanced approach to risk that considers the legitimate interests of all parties to the design-build process. DBIA’s Standard Form Contract Documents reflect a modern risk allocation approach, allocating each risk to the party best equipped to manage and minimize that risk, with the goal of promoting best design-build practices.
3. Use of Non-DBIA
Documents
To avoid inconsistencies among documents used for the same project, DBIA’s Standard Form Contract Documents should not be used in conjunction with non-DBIA documents unless the non-DBIA documents are appropriately modified on the advice of legal counsel. Moreover, care should also be taken when using different editions of the DBIA Standard Form Documents on the same project to ensure consistency.
4. Legal
Consequences
DBIA Standard Form Contract Documents are legally binding contracts with important legal consequences. Contracting parties are advised and encouraged to seek legal counsel in completing or modifying these Documents.
5. Reproduction
DBIA hereby grants to purchasers a limited license to reproduce its Documents consistent with the License Agreement accompanying these Documents. At least two original versions of the Agreement should be signed by the parties. Any other reproduction of DBIA Documents is strictly prohibited.
6. Modifications
Effective contracting is accomplished when the parties give specific thought to their contracting goals and then tailor the contract to meet the unique needs of the project and the design-build team. For that reason, these Documents may require modification for various purposes including, for example, to comply with local codes and laws, or to add special terms. DBIA’s latest revisions to its Documents provide the parties an opportunity to customize their contractual relationship by selecting various optional contract clauses that may better reflect the unique needs and risks associated with the project.
Any modifications to these Documents should be initialed by the parties. At no time should a document be re-typed in its entirety. Re-creating the document violates copyright laws and destroys one of the advantages of standard forms-familiarity with the terms.
7. Execution It is good practice to execute two original copies of the Agreement. Only persons authorized to sign for the contracting parties may execute the Agreement. 6 Instruction Sheet for DBIA Document No. 525 Page 3
© 2010 Design-Build Institute of America
Specific Instructions
Section Title Instruction
General Purpose of This
Agreement
DBIA Document No. 525 (“Agreement”) should be used only when the parties intend that Owner pay Design-Builder a lump sum fixed price for the completion of all design and construction services. There will be greater mutual understanding and cooperation if the lump sum is established based on Owner’s Project Criteria that are well defined.
If there is uncertainty about Owner’s Project Criteria, or it remains to be developed by Owner and Design-Builder jointly, a cost-plus/guaranteed maximum price (“GMP”) contracting approach may be more suitable. In such case, the parties should use DBIA Document No. 530.
General Purpose of These
Instructions
These Instructions are not part of this Agreement, but are provided to aid the parties in their understanding of the Agreement and in completing the Agreement.
General Related
Documents
This Agreement shall be used in conjunction with the General Conditions of Contract.
Other related Contract Documents are listed in Article 2 of this Agreement.
General Date
On Page 1, enter the date when both parties reach a final understanding. It is possible, due to logistical reasons, that the dates when the parties execute the Agreement may be different. Once both parties execute the Agreement, the effective date of the Agreement will be the date recorded on Page 1. This date does not, however, determine Contract Time, which is measured according to the terms of Article 5.
General
Parties: Owner
and Design-
Builder
On Page, 1 enter the legal name and full address of Owner and Design-Builder, as well as the legal form of each entity, e.g., corporation, partnership, limited partnership, limited liability company, or other.
2.1.2 Basis of Design
Documents
The Basis of Design Documents are critical in establishing the scope of work. These documents include the Owner’s Project Criteria, Design-Builder’s Proposal, and the Deviation List, if any, contained in the Design-Builder’s Proposal. Prior to the execution of this Agreement, Design-Builder will have submitted its Proposal based on Owner’s Project Criteria. To avoid ambiguities or conflicts between Owner’s Project Criteria and Design-Builder’s Proposal, Design-Builder’s Proposal shall specifically list any deviations from Owner’s Project Criteria. Design-Builder’s Deviation List shall, if accepted by Owner, become a Contract Document and shall have precedence over Owner’s Project Criteria.
2.1.5 Construction
Documents
After execution of the Agreement, and consistent with the requirements of Section 2.4 of the General Conditions of Contract, Design-Builder will prepare Construction Documents subject to Owner’s review and approval.
3.2 Order of
Precedence
The Contract Documents are listed in Section 2.1 in the order of their precedence. This hierarchy of documents reflects DBIA’s belief that the Basis of Design Documents are critical documents that take precedence over other Contract Documents existing at the time the Agreement is executed. This section also makes clear that if a Deviation List exists it takes precedence over the Owner’s Project Criteria. Moreover, Section 2.1.3 recognizes that there may be other exhibits attached to this Agreement. If this is the case, the parties should discuss whether these exhibits should be part of the Basis of Design Documents. If these exhibits are not made part of the Basis of Design Documents, these exhibits will not take priority over the Basis of Design Documents in the event of a conflict.
3.3 Definitions Terms, words and phrases used in the Agreement shall have the same meanings used in the General Conditions of Contract.
7 Instruction Sheet for DBIA Document No. 525 Page 4
© 2010 Design-Build Institute of America
Section Title Instruction
3.4 Design
Specification
The Owner is cautioned that if it includes design specifications in its Project Criteria, there is case law holding that the Design-Builder is entitled to rely on such information, and to the extent such information is not accurate, the Design-Builder will be entitled to an adjustment in the Contract Price and/or Contract Time. Accordingly, the Owner to avoid such potential liability should consider using performance specifications.
4.1 Work Product
This Agreement provides that the Design-Builder shall retain ownership of the Work Product it produces, but obligates Design-Builder to grant a limited license to Owner to use the Work Product according to the terms and circumstances described in Sections
4.2, 4.3, 4.4 and 4.5.
4.2 Owner’s Limited
License Upon
Payment in Full
Design-Builder shall grant Owner, at Owner’s sole risk, a limited license to use the Work Product at the completion of the Work in connection with Owner’s occupation of the Project. This Section also provides the parties with the option of transferring ownership of some or all of the Work Product to the Owner upon payment in full for all Work performed. Generally, where the Owner desires ownership of Work Product, it is sufficient to transfer ownership of unique architectural and design elements.
4.3 Owner’s Limited
License Upon
Owner’s
Termination for
Convenience or
Design-Builder’s
Election to
Terminate
Owner should not use the Termination for Convenience Clause to obtain Design- Builder’s valuable design concepts, and then seek lower bids from other design- builders. Therefore, where Owner terminates this Agreement for its convenience, and then decides to complete the Project with its own or third-party forces, Design-Builder shall grant Owner the rights set forth in Section 4.2, provided Owner pays Design- Builder all amounts due Design-Builder as required by the Contract Documents, including paying Design-Builder an additional sum per Section 4.3.2 for the use of the Work Product. In the event Design-Builder elects to terminate this Agreement for cause, for reasons set forth in Section 11.4 of the General Conditions of Contract, these same conditions apply to Owner’s use of the Work Product.
4.3.2 Additional
Compensation
To minimize disputes, the parties should negotiate prior to execution of the Agreement the amount Owner shall pay Design-Builder for the use of Design-Builder’s Work Product in the event Owner terminates this Agreement for its convenience or Design- Builder elects to terminate this Agreement for cause. Enter this amount.
4.4 Owner’s Limited
License Upon
Design-Builder’s
Default
If Design-Builder is properly terminated for default, Owner is granted a limited license to use the Work Product, to complete the Project, and Owner shall thereafter have the same rights and obligations as set forth in Section 4.2.
4.5 Owner’s
Indemnification
for Use of Work
Product
Owner’s use or alteration of the Work Product shall be at its sole risk, and Owner must agree to defend, indemnify and hold harmless Design-Builder and anyone working by or through Design-Builder, including Design Consultants of any tier.
5.1 Date of
Commencement
Design-Builder’s obligation to commence work is triggered by its receipt of a Notice to Proceed unless the parties mutually agree otherwise.
5.2.1 Substantial
Completion of the
Entire Work
Enter the calendar days duration by which Substantial Completion has to be achieved.
The parties in this Section have the option of modifying the definition of Substantial Completion set forth in the General Conditions of Contract if they want to use a Temporary Certificate of Occupancy as the benchmark. If this option is selected, Substantial Completion will be deemed to be achieved no later than the date a Temporary Certificate of Occupancy is issued if applicable to the Project. 8 Instruction Sheet for DBIA Document No. 525 Page 5
© 2010 Design-Build Institute of America
Section Title Instruction
5.2.2 Interim
Milestones
It may be that some portions of the Work must be completed in phases or within a prescribed period of time to accommodate Owner’s needs. The parties may, at their option, identify these portions of the Work to be completed prior to Substantial Completion of the entire Work. Enter the calendar days, starting from the Date of Commencement, for achieving Substantial Completion of these identified portions of the Work. If these portions of the Work are required to be substantially completed by certain milestone dates, enter those dates. As presently drafted no remedy is provided to the Owner if an interim milestone is not met. If the Owner has special requirements as it relates to interim milestones, the Owner may want to consider a remedy for the Design-Builder’s failure to meet an interim milestone, as well as a bonus to the Design- Builder for satisfying such interim milestone.
5.4 Liquidated
Damages
Owner should make a good faith evaluation of the amount that is reasonably necessary to compensate it for delay. Owner should not establish liquidated damages to penalize Design-Builder.
Section 5.4 establishes a grace period between the Scheduled Substantial Completion Date and the assessment of liquidated damages in order to prevent disputes as to which party bears responsibility for only a few days of delay. The parties should enter the calendar days that may pass following the Scheduled Substantial Completion Date before liquidated damages will be assessed. The parties are also provided the option of establishing liquidated damages if the Design-Builder fails to achieve Final Completion within a specified number of days after Substantial Completion. If this option is selected, the parties have to negotiate the number of days, as well as the liquidated damages amount. The parties in negotiating liquidated damages should keep in mind that the amount of liquidated damages for failing to achieve Final Completion should be a considerably scaled down amount and should reflect the financial harm to the Owner.
In no case should the total amount of liquidated damages for the Project exceed an amount that is reasonably necessary to compensate Owner for Project delay.
The parties also have the option here of eliminating liquidated damages altogether, in which case the Owner can recover actual damages for Project delay at an amount that is capped by the parties. The Owner is cautioned that even if this option for actual damages is selected it still cannot recover consequential damages, as these are waived under Section 10.5.1 of the General Conditions of Contract.
5.5 Liquidated
Damages Cap The parties can agree to cap liquidated damages for delay at a negotiated amount.
5.6 Early Completion
Bonus
If the Project economics justify liquidated damages, then it is appropriate to couple these liquidated damages with an early completion bonus. The parties should enter the number of calendar days prior to the Scheduled Substantial Completion Date that will set the Bonus Date. Also, enter the amount of the bonus to be paid per day that will allow Owner to share with Design-Builder the economic benefits of early completion.
The parties also have the option in Section 5.6 of capping the early completion bonus at a negotiated amount.
5.7 Compensation for
Force Majeure
Events
The parties are provided the opportunity of providing the Design-Builder the right to receive compensation for Force Majeure Events. By selecting this option, the parties agree to modify Section 8.2.2 of the General Conditions of Contract, in which case the parties have to negotiate how many cumulative days of Force Majeure delays must occur before the Design-Builder is entitled to either a negotiated amount per day for delay or the direct costs it has incurred as a result of such delay.
6.1 Contract Price
Enter the lump sum price Owner will pay Design-Builder for the Scope of Work. The Contract Price should compensate Design-Builder for the services it provides and the risk it assumes in providing single point responsibility to Owner. 9 Instruction Sheet for DBIA Document No. 525 Page 6
© 2010 Design-Build Institute of America
Section Title Instruction
6.2 Markups for
Changes
Enter the markups agreed upon by Design-Builder and Owner to be used for pricing Changes to the Work. Prior to negotiating or agreeing to these markups, both parties should familiarize themselves with Article 9 of the General Conditions of Contract, Changes to the Contract Price and Time. For additive Change Orders, the parties have to negotiate the Fee the Design-Builder will receive. For deductive Change Orders, parties have the option by checking the appropriate box of whether there will be no additional reduction or whether there will be an additional reduction based on a negotiated percentage.
6.3.4 Allowance Value
This section recognizes that the parties may agree that certain items of Work should be treated as an Allowance Item and priced based on Allowance Values. The Allowance Value for which the Design-Builder will be entitled to receive compensation includes direct cost of labor, materials, equipment, transportation, taxes and insurance associated with the Allowance Item. All other costs associated with the Allowance Item, such as design fees, general conditions costs and fee, are deemed to be included in the Contract Price. However, the parties agree that in the event the actual cost of the Allowance Item is greater than or less than the Allowance Value by a negotiated percentage, then Design-Builder’s right to Fee and markup shall be determined pursuant to Section 6.2.
6.4 Performance
Incentives
There may be performance incentives that will influence Project success. Such incentives may include award fees tied to the Design-Builder achieving certain standards relative to client satisfaction, safety, and personnel retention. The parties are encouraged to discuss the use of such incentives during negotiation of this Agreement.
Any agreement on the use of incentives should be set forth in an exhibit attached to this Agreement.
7.1.1 Progress
Payments
Enter the day of the month when Design-Builder shall submit its Application for Payment.
7.2.1 Retainage
Enter the percentage Owner will retain from Progress Payments to Design-Builder until fifty percent (50%) of the Work is completed. Owner should recognize that it creates undue hardship to hold retainage on Subcontractors that have completed their work early in the Project. Owner should accordingly consider releasing retainage on Subcontractors that complete work early in the Project, providing that these Subcontractors have satisfactorily performed their portion of the Work.
The parties are provided the option of modifying the retainage provision by checking the box. This option excludes from retainage the Design-Builder’s General Conditions costs and amounts paid to Design-Builder’s Design Consultant. The rationale for selecting this option is that the Design-Builder is obligated to pay its General Conditions costs in full each month and that under the design-bid-build delivery method, the Owner typically does not retain sums from its designer.
7.4 Interest
The parties should enter the rate at which interest will accrue on Design-Builder’s payments if unpaid five (5) days after due. Late payment creates a hardship for Design- Builder, its Design Consultants and Subcontractors.
7.5 Record Keeping
The Owner is provided access to Design-Builder’s accounting information as it relates to changes of the Work. However, if the parties have agreed to multipliers or markups for changes, the time to challenge and negotiate those percentages is at the time the parties execute the Agreement and not during the Project or after it has been completed. Accordingly, the Owner can at any time audit these percentages only to confirm that such percentage has been properly charged and not to challenge the composition of such percentage.
10 Instruction Sheet for DBIA Document No. 525 Page 7
© 2010 Design-Build Institute of America
Section Title Instruction
8.1.3 Termination for
Convenience:
Overhead and
Profit
The parties should choose prior to execution of the Agreement the method that will be used to determine overhead and profit paid to Design-Builder in the event Owner terminates Design-Builder for its convenience. The parties may choose to set percentage rates for overhead and profit prior to execution of the Agreement, or may choose to determine reasonable sums to be paid for overhead and profit at the time of the termination. If the parties choose to set overhead and profit rates prior to execution of the Agreement, the percentages should be entered in Section 8.1.3.
8.2 Termination for
Convenience:
Additional
Payments
Although it is important for Owner to have a process for terminating this Agreement for convenience, the process must consider the interests of Design-Builder. If Owner terminates this Agreement for its own convenience, compensating Design-Builder for its costs will not be adequate because Design-Builder will have committed its resources for a small amount of revenue. Therefore, in addition to the overhead and profit paid in Section 8.1, Owner shall pay Design-Builder an additional sum, calculated as a percentage of the remaining balance of the Contract Price. Enter the percentages Owner shall pay Design-Builder if Owner terminates this Agreement for its own convenience prior to or after the start of construction.
8.3 Termination for
Convenience:
Owner’s Use of
Work Product
Owner should not use the Termination for Convenience clause to obtain Design- Builder’s valuable design concepts and then seek lower bids from another design- builder. If Owner terminates this Agreement for its own convenience, and chooses to proceed with the Project using Design-Builder’s Work Product, Owner should pay an additional sum for the use of Design-Builder’s Work Product pursuant to Section 4.3.
Article
9 Representatives
of the Parties
Enter the name, title, address and telephone number of Owner’s Senior Representative and Owner’s Representative at Sections 9.1.1 and 9.1.2, respectively.
Enter the name, title, address and telephone number of Design-Builder’s Senior Representative and Design-Builder’s Representative at Sections 9.2.1 and 9.2.2, respectively.
The parties can elect to establish Representatives during the performance of the Project rather than at the time of execution of this Agreement. If Representatives are identified after execution of the Agreement, an appropriate amendment should be made to the Agreement at the time these individuals are designated.
10.1 Insurance
Attach an Insurance Exhibit setting forth in detail the insurance coverages required for the Project. Parties are advised to familiarize themselves with the terms of Article 5 of the General Conditions of Contract, Insurance and Bonds, and to consult their insurance advisor.
10.2 Bonds
Enter the type and amount of bonds or other performance security required for the Project. Where bonding is not required by statute, Owner may want to evaluate the project risks versus the bonding costs in deciding what type of performance security to require.
11.1 Other Provisions
Insert any other provisions. For example, the parties may elect to have disputes resolved through litigation rather than arbitration in which case the optional language in this Section should be included.
11 TABLE OF CONTENTS
Article Name
Page
Article 1 Scope of Work ..................................................................................................2 Article 2 Contract Documents.........................................................................................2 Article 3 Interpretation and Intent ...................................................................................2 Article 4 Ownership of Work Product..............................................................................3 Article 5 Contract Time ...................................................................................................4 Article 6 Contract Price...................................................................................................7 Article 7 Procedure for Payment.....................................................................................8 Article 8 Termination for Convenience............................................................................9 Article 9 Representative of the Parties ........................................................................10 Article 10 Bonds and Insurance.....................................................................................11 Article 11 Other Provisions ............................................................................................12 12 DBIA Document No. 525 Page 1
Standard Form of Agreement Between Owner and Design-Builder - Lump Sum © 2010 Design-Build Institute of America
Standard Form of Agreement Between
Owner and Design-Builder - Lump Sum
This document has important legal consequences. Consultation with an attorney is recommended with respect to its completion or modification.
This AGREEMENT is made as of the 2nd day of June in the year of 2025, by and between the following parties, for services in connection with the Project identified below.
OWNER:
(Name and address)
City of Torrance
3031 Torrance Blvd
Torrance, CA 90503
DESIGN-BUILDER:
(Name and address)
ACCO Engineered Systems, Inc.
888 E Walnut Street
Pasadena, CA 91101
PROJECT :
(Include Project name and location as it will appear in the Contract Documents) HVAC Replacement at Torrance Municipal Airport Control Tower In consideration of the mutual covenants and obligations contained herein, Owner and Design-Builder agree as set forth herein.
13 DBIA Document No. 525 Page 2
Standard Form of Agreement Between Owner and Design-Builder - Lump Sum © 2010 Design-Build Institute of America
Article 1
Scope of Work
1.1 Design-Builder shall perform all design and construction services, and provide all material, equipment, tools and labor, necessary to complete the Work described in and reasonably inferable from the Contract Documents.
Article 2
Contract Documents
2.1 The Contract Documents are comprised of the following:
2.1.1 All written modifications, amendments, minor changes and Change Orders to this Agreement issued in accordance with DBIA Document No. 535, Standard Form of General Conditions of Contract Between Owner and Design-Builder (2010 Edition) (“General Conditions of Contract”);
2.1.2 The Basis of Design Documents, including the Owner’s Project Criteria, Design-Builder’s Proposal and the Deviation List, if any, contained in the Design-Builder’s Proposal, which shall specifically identify any and all deviations from Owner’s Project Criteria;
2.1.3 This Agreement, including all exhibits and attachments, executed by Owner and Design- Builder (List for example, performance standard requirements, performance incentive requirements, markup exhibits, allowances, or unit prices); - Copy of DBIA Document No. 535, General Conditions of Contract - National Cooperative Purchasing Alliance Request for Proposals for HVAC Equipment, Installation, Services, & Related Products – Supplemental – No. #29-19 - Proposal
2.1.4 The General Conditions of Contract; and
2.1.5 Construction Documents prepared and approved in accordance with Section 2.4 of the General Conditions of Contract.
Article 3
Interpretation and Intent
3.1 Design-Builder and Owner, prior to execution of the Agreement, shall carefully review all the Contract Documents, including the various documents comprising the Basis of Design Documents, for any conflicts or ambiguities. Design-Builder and Owner will discuss and resolve any identified conflicts or ambiguities prior to execution of the Agreement.
3.2 The Contract Documents are intended to permit the parties to complete the Work and all obligations required by the Contract Documents within the Contract Time(s) for the Contract Price. The Contract Documents are intended to be complementary and interpreted in harmony so as to avoid conflict, with words and phrases interpreted in a manner consistent with construction and design industry standards. In the event inconsistencies, conflicts, or ambiguities between or among the Contract Documents are discovered after execution of the Agreement, Design-Builder and Owner shall attempt to resolve any ambiguity, conflict or inconsistency informally, recognizing that the Contract Documents shall 14 DBIA Document No. 525 Page 3
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take precedence in the order in which they are listed in Section 2.1 hereof. Conflicts existing within Section 2.1.2 shall be resolved by giving precedence first to the Deviation List, if any, then the Owner’s Project Criteria, and then the Design-Builder’s Proposal.
3.3 Terms, words and phrases used in the Contract Documents, including this Agreement, shall have the meanings given them in the General Conditions of Contract.
3.4 If Owner’s Project Criteria contain design specifications: (a) Design-Builder shall be entitled to reasonably rely on the accuracy of the information represented in such design specifications and their compatibility with other information set forth in Owner’s Project Criteria, including any performance specifications; and (b) Design-Builder shall be entitled to an adjustment in the Contract Price and/or Contract Time(s) to the extent Design-Builder’s cost and/or time of performance have been adversely impacted by such inaccurate design specification.
3.5 The Contract Documents form the entire agreement between Owner and Design-Builder and by incorporation herein are as fully binding on the parties as if repeated herein. No oral representations or other agreements have been made by the parties except as specifically stated in the Contract Documents.
Article 4
Ownership of Work Product
4.1 Work Product. All drawings, specifications and other documents and electronic data, including such documents identified in the General Conditions of Contract, furnished by Design-Builder to Owner under this Agreement (“Work Product”) are deemed to be instruments of service and Design-Builder shall retain the ownership and property interests therein, including but not limited to any intellectual property rights, copyrights and/or patents, subject to the provisions set forth in Sections 4.2 through 4.5 below.
4.2 Owner’s Limited License Upon Project Completion and Payment in Full to Design-Builder.
Upon Owner’s payment in full for all Work performed under the Contract Documents, Design-Builder shall grant Owner a limited license to use the Work Product in connection with Owner’s occupancy of the Project, conditioned on Owner’s express understanding that its alteration of the Work Product without the involvement of Design-Builder is at Owner’s sole risk and without liability or legal exposure to Design- Builder or anyone working by or through Design-Builder, including Design Consultants of any tier (collectively the “Indemnified Parties”), and on the Owner’s obligation to provide the indemnity set forth in Section 4.5 below.
[At the parties’ option, one of the following may be used in lieu of Section 4.2]:
Upon Owner’s payment in full for all Work performed under the Contract Documents, Design- Builder: (a) grants Owner a limited license to use the Work Product in connection with Owner’s occupancy of the Project; and (b) transfers all ownership and property interests, including but not limited to any intellectual property rights, copyrights and/or patents, in that portion of the Work Product that consists of architectural and other design elements and specifications that are unique to the Project. The parties shall specifically designate those portions of the Work Product for which ownership in the Work Product shall be transferred. Such grant and transfer are conditioned on Owner’s express understanding that its alteration of the Work Product without the involvement of Design-Builder is at Owner’s sole risk and without liability or legal exposure to Design-Builder or anyone working by or through Design-Builder, including Design Consultants of any tier (collectively the “Indemnified Parties”), and on the Owner’s obligation to provide the indemnity set forth in Section 4.5 below. or
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Upon Owner’s payment in full for all Work performed under the Contract Documents, Design- Builder transfers to Owner all ownership and property interests, including but not limited to any intellectual property rights, copyrights and/or patents, in the Work Product. Such transfer is conditioned on Owner’s express understanding that its alteration of the Work Product without the involvement of Design-Builder is at Owner’s sole risk and without liability or legal exposure to Design-Builder or anyone working by or through Design-Builder, including Design Consultants of any tier (collectively the “Indemnified Parties”), and on the Owner’s obligations to provide the indemnity set forth in Section 4.5 below.
4.3 Owner’s Limited License upon Owner’s Termination for Convenience or Design-Builder’s Election to Terminate. If Owner terminates this Agreement for its convenience as set forth in Article 8 hereof, or if Design-Builder elects to terminate this Agreement in accordance with Section 11.4 of the General Conditions of Contract, Design-Builder shall, upon Owner’s payment in full of the amounts due Design-Builder under the Contract Documents, grant Owner a limited license to use the Work Product to complete the Project and subsequently occupy the Project, and Owner shall thereafter have the same rights as set forth in Section 4.2 above, conditioned on the following:
4.3.1 Use of the Work Product is at Owner’s sole risk without liability or legal exposure to any Indemnified Party and on the Owner’s obligation to provide the indemnity set forth in Section 4.5 below; and
4.3.2 Owner agrees to pay Design-Builder the additional sum of Zero Dollars ($ 0 ) as compensation for the right to use the Work Product to complete the Project and subsequently use the work Product in accordance with Section 4.2 if Owner resumes the Project through its employees, agents, or third parties.
4.4 Owner’s Limited License upon Design-Builder's Default. If this Agreement is terminated due to Design-Builder's default pursuant to Section 11.2 of the General Conditions of Contract, then Design- Builder grants Owner a limited license to use the Work Product to complete the Project and subsequently occupy the Project, and Owner shall thereafter have the same rights and obligations as set forth in Section 4.2 above. Notwithstanding the preceding sentence, if it is ultimately determined that Design- Builder was not in default, Owner shall be deemed to have terminated the Agreement for convenience, and Design-Builder shall be entitled to the rights and remedies set forth in Section 4.3 above.
4.5 Owner’s Indemnification for Use of Work Product. If Owner is required to indemnify any Indemnified Parties based on the use or alteration of the Work Product under any of the circumstances identified in this Article 4, Owner shall defend, indemnify and hold harmless such Indemnified Parties from and against any and all claims, damages, liabilities, losses and expenses, including attorneys’ fees, arising out of or resulting from the use or alteration of the Work Product.
Article 5
Contract Time
5.1 Date of Commencement. The Work shall commence within five (5) days of Design-Builder’s receipt of Owner’s Notice to Proceed (“Date of Commencement”) unless the parties mutually agree otherwise in writing.
5.2 Substantial Completion and Final Completion.
5.2.1 Substantial Completion of the entire Work shall be achieved no later than June 30, 2026 ( 393 ) calendar days after the Date of Commencement (“Scheduled Substantial Completion Date”).
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[At the parties’ option, the following supplemental language may be inserted at the end of Section 5.2.1. if the Project is subject to a Temporary Certificate of Occupancy] The parties agree that the definition for Substantial Completion set forth in Section 1.2.18 of the General Conditions of Contract is hereby modified to read as follows:
“ Substantial Completion is the date on which the Work, or an agreed upon portion of the Work, is sufficiently complete in accordance with the Contract Documents so that Owner can occupy and use the Project or a portion thereof for its intended purposes, provided, however, that Substantial Completion shall be deemed to have been achieved no later than the date of issuance of a Temporary Certificate of Occupancy issued by the local building official.”
5.2.2 Interim milestones and/or Substantial Completion of identified portions of the Work (“Scheduled Interim Milestone Dates”) shall be achieved as follows: (Insert any interim milestones for portions of the Work with different scheduled dates for Substantial Completion) June 2, 2025 – June 30, 2026 for HVAC Replacement at Torrance Municipal Airport Control Tower
5.2.3 Final Completion of the Work or identified portions of the Work shall be achieved as expeditiously as reasonably practicable. Final Completion is the date when all Work is complete pursuant to the definition of Final Completion set forth in Section 1.2.7 of the General Conditions of Contract.
5.2.4 All of the dates set forth in this Article 5 (collectively the “Contract Time(s)”) shall be subject to adjustment in accordance with the General Conditions of Contract.
5.3 Time is of the Essence. Owner and Design-Builder mutually agree that time is of the essence with respect to the dates and times set forth in the Contract Documents.
5.4 Liquidated Damages. Design-Builder understands that if Substantial Completion is not attained by the Scheduled Substantial Completion Date, Owner will suffer damages which are difficult to determine and accurately specify. Design-Builder agrees that if Substantial Completion is not attained by 6/30/26
( 393 ) days after the Scheduled Substantial Completion Date (the “LD Date”), Designer-Builder shall pay Owner five hundred Dollars ($ 500 ) as liquidated damages for each day that Substantial Completion extends beyond the LD Date. [The parties may want to consider the following supplemental language within Section 5.4 if they want to assess liquidated damages for failing to meet Final Completion. In this case, the first sentence in Section 5.2.3 should be deleted and replaced with the following language.]
Design-Builder understands that if Final Completion is not achieved within days of the Substantial Completion Date, Owner will suffer damages which are difficult to determine and accurately specify. Design-Builder agrees that if Final Completion is not achieved within days of Substantial Completion, Design-Builder shall pay to Owner Dollars ($ ), as liquidated damages for each calendar day that Final Completion is delayed beyond the above-referenced number of days.
[In lieu of the liquidated damages specified in Section 5.4 or the alternate provided herein, the Parties may decide that the Agreement will provide for actual damages in the event of Project delay, with Owner being cautioned that there is a waiver of consequential damages under Section 10.5.1 of the General Conditions of Contract. In this case, delete Sections 17 DBIA Document No. 525 Page 6
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5.4 and 5.5 and insert the following]
5.4 Design-Builder and Owner have agreed not to provide for liquidated damages in this Agreement for failure of Design-Builder to achieve the Contract Time(s) set forth in this Article 5. Design- Builder understands, however, that Owner may suffer actual damages in the event the Contract Time(s) set forth herein are not timely achieved. Owner shall be able to recover such actual damages from Design-Builder to the extent it can demonstrate that actual damages have been incurred, are directly related and caused by Design-Builder’s failure to meet the Contract Time(s) set forth herein, and are not waived by Section 10.5.1 of the General Conditions of Contract. Notwithstanding the foregoing, in no event shall Design-Builder’s liability for actual damages for delays exceed Dollars ($ ).
5.5 Any liquidated damages assessed pursuant to this Agreement shall be in lieu of all liability for any and all extra costs, losses, expenses, claims, penalties and any other damages, whether special or consequential, and of whatsoever nature incurred by Owner which are occasioned by any delay in achieving the Contract Time(s).
[The Parties may also desire to cap the liquidated damages payable under this Agreement, in which case the following language should be included at the end of Section 5.5.] Owner and Design-Builder agree that the maximum aggregate liability Design-Builder has for any liquidated damages that may be assessed under this Agreement for failure to achieve the Contract Time(s) shall be Dollars ($ ).
5.6 Early Completion Bonus. If Substantial Completion is attained on or before ( ) days before the Scheduled Substantial Completion Date (the “Bonus Date”), Owner shall pay Design-Builder at the time of Final Payment under Section 7.3 hereof an early completion bonus of Dollars ($ ) for each day that Substantial Completion is attained earlier than the Bonus Date. (If an early completion bonus is applicable to any dates set forth in Section
5.2.2 or 5.2.3 hereof, this Section 5.6 will need to be modified accordingly) [The Parties may also desire to cap the early completion bonus payable under Section 5.6, in which case the following language should be included.] Owner and Design-Builder agree that the maximum aggregate amount that Design-Builder shall receive as the early Completion Bonus is Dollars ($ ).
5.7 [The Parties may also desire to modify Article 8.2.2 of the General Conditions of Contract relative to compensability of delays that would cause the Contract Time(s) to be extended. In such case, the following option can be used.]
In addition to Design-Builder’s right to a time extension for those events set forth in Section 8.2.1 of the General Conditions of Contract, Design-Builder shall also be entitled to an appropriate adjustment of the Contract Price for those events set forth in Section 8.2.1 of the General Conditions of Contract, provided, however, for Force Majeure Events, Design-Builder shall only be entitled to an increase in the Contract Price if said events exceed 60 cumulative days. Said additional compensation shall be limited to:
[Check one box only]
$ dollars a day for each day work is delayed beyond the Scheduled Substantial Completion Date.
or
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the direct costs and expenses Design-Builder can demonstrate it has reasonably and actually incurred as a result of such event.
Article 6
Contract Price
6.1 Contract Price. Owner shall pay Design-Builder in accordance with Article 6 of the General Conditions of Contract the sum of seven hundred and thirty three thousand nine hundred and forty nine Dollars ($ 733,949.00 ), plus a contingency of $73,395.00 if first approved in writing by Owner. (“Contract Price”), subject to adjustments made in accordance with the General Conditions of Contract.
Unless otherwise provided in the Contract Documents, the Contract Price is deemed to include all sales, use, consumer and other taxes mandated by applicable Legal Requirements.
6.2 Markups for Changes. If the Contract Price requires an adjustment due to changes in the Work, and the cost of such changes is determined under Sections 9.4.1.3 or 9.4.1.4 of the General Conditions of Contract, the following markups shall be allowed on such changes:
6.2.1 For additive Change Orders, including additive Change Orders arising from both additive and deductive items, it is agreed that Design-Builder shall receive a Fee of Fifteen percent ( 15 %) of the additional costs incurred for that Change Order, plus any other markups set forth at Exhibit N/A hereto.
6.2.2 For deductive Change Orders, including deductive Change Orders arising from both additive and deductive items, the deductive amounts shall include:
[Check one box only]
No additional reduction to account for Design-Builder’s Fee or any other markup. or
An amount equal to the sum of: (a)
percent ( %) applied to the direct costs of the net reduction (which amount will account for a reduction associated with Design-Builder’s Fee); plus (b) any other markups set forth at Exhibit hereto applied to the direct costs of the net reduction.
6.3 Allowance Items and Allowance Values.
6.3.1 Any and all Allowance Items, as well as their corresponding Allowance Values, are set forth in an Exhibit hereto.
6.3.2 Design-Builder and Owner have worked together to review the Allowance Items and Allowance Values based on design information then available to determine that the Allowance Values constitute reasonable estimates for the Allowance Items. Design-Builder and Owner will continue working closely together during the preparation of the design to develop Construction Documents consistent with the Allowance Values. Nothing herein is intended in any way to constitute a guarantee by Design-Builder that the Allowance Item in question can be performed for the Allowance Value.
6.3.3 No work shall be performed on any Allowance Item without Design-Builder first obtaining in writing advanced authorization to proceed from Owner. Owner agrees that if Design-Builder is 19 DBIA Document No. 525 Page 8
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not provided written authorization to proceed on an Allowance Item by the date set forth in the Project schedule, due to no fault of Design-Builder, Design-Builder may be entitled to an adjustment of the Contract Time(s) and Contract Price.
6.3.4 The Allowance Value for an Allowance Item includes the direct cost of labor, materials, equipment, transportation, taxes and insurance associated with the applicable Allowance Item. All other costs, including design fees, Design-Builder’s overall project management and general conditions costs, overhead and fee, are deemed to be included in the original Contract Price, and are not subject to adjustment, regardless of the actual amount of the Allowance Item. [In the alternative, the parties may want to delete Section 6.3.4 and add the following provision.]
In the event the actual direct cost of labor, materials, equipment, transportation, taxes and insurance associated with an Allowance Item is percent ( %) greater than or less than the Allowance Value for such Allowance Item, Design-Builder and Owner agree that Design-Builder’s right to Fee and markup shall be adjusted in accordance with Section 6.2.
6.3.5 Whenever the actual costs for an Allowance Item is more than or less than the stated Allowance Value, the Contract Price shall be adjusted accordingly by Change Order, subject to Section 6.3.4. The amount of the Change Order shall reflect the difference between actual costs incurred by Design-Builder for the particular Allowance Item and the Allowance Value.
6.4 Performance Incentives.
6.4.1 Owner and Design-Builder have agreed to the performance incentive arrangements set forth in Exhibit N/A .
[The parties are encouraged to discuss and agree upon performance incentives that will influence project success. These incentives may consist of Award Fees, incentives for safety, personnel retention, client satisfaction and similar items.] Article 7
Procedure for Payment
7.1 Progress Payments.
7.1.1 Design-Builder shall submit to Owner on the fifteenth ( 15 ) day of each month, beginning with the first month after the Date of Commencement, Design- Builder’s Application for Payment in accordance with Article 6 of the General Conditions of Contract.
7.1.2 Owner shall make payment within ten (30) days after Owner’s receipt of each properly submitted and accurate Application for Payment in accordance with Article 6 of the General Conditions of Contract, but in each case less the total of payments previously made, and less amounts properly withheld under Section 6.3 of the General Conditions of Contract.
7.2 Retainage on Progress Payments.
7.2.1 Owner will retain Five percent ( 5 %) of each Application for Payment provided, however, that when fifty percent (50%) of the Work has been satisfactorily completed by Design-Builder and Design-Builder is otherwise in compliance with its contractual obligations, Owner will not retain any additional retention amounts from Design-Builder’s 20 DBIA Document No. 525 Page 9
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subsequent Applications for Payment. Owner will also reasonably consider reducing retainage for Subcontractors completing their work early in the Project. [Design-Builder and Owner may want to consider substituting the following retainage provision.]
Owner will retain percent ( %) from Design-
Builder’s Applications for Payment, exclusive of general conditions costs, and any amounts paid to Design-Builder’s Design Consultant, from each Application for Payment provided, however, that when fifty percent (50%) of the Work has been satisfactorily completed by Design-Builder and Design-Builder is otherwise in compliance with its contractual obligations, Owner will not retain any additional amounts from Design-Builder’s subsequent Applications for Payment. Owner will also reasonably consider reducing retainage for Subcontractors completing their work early in the Project.
7.2.2 Within fifteen (15) days after Substantial Completion of the entire Work or, if applicable, any portion of the Work, pursuant to Section 6.6 of the General Conditions of Contract, Owner shall release to Design-Builder all retained amounts relating, as applicable, to the entire Work or completed portion of the Work, less an amount equal to (a) the reasonable value of all remaining or incomplete items of Work as noted in the Certificate of Substantial Completion and (b) all other amounts Owner is entitled to withhold pursuant to Section 6.3 of the General Conditions of Contract.
7.3 Final Payment. Design-Builder shall submit its Final Application for Payment to Owner in accordance with Section 6.7 of the General Conditions of Contract. Owner shall make payment on Design-Builder’s properly submitted and accurate Final Application for Payment within thirty (30) days after Owner’s receipt of the Final Application for Payment, provided that Design-Builder has satisfied the requirements for final payment set forth in Section 6.7.2 of the General Conditions of Contract.
7.4 Interest. Payments due and unpaid by Owner to Design-Builder, whether progress payments or final payment, shall bear interest commencing five (5) days after payment is due at the rate of Zero percent ( 0 %) per month until paid.
7.5 Record Keeping and Finance Controls. With respect to changes in the Work performed on a cost basis by Design-Builder pursuant to the Contract Documents, Design-Builder shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management, using accounting and control systems in accordance with generally accepted accounting principles and as may be provided in the Contract Documents. During the performance of the Work and for a period of three (3) years after Final Payment, Owner and Owner’s accountants shall be afforded access to, and the right to audit from time-to-time, upon reasonable notice, Design-Builder’s records, books, correspondence, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to changes in the Work performed on a cost basis in accordance with the Contract Documents, all of which Design-Builder shall preserve for a period of three (3) years after Final Payment. Such inspection shall take place at Design-Builder’s offices during normal business hours unless another location and time is agreed to by the parties. Any multipliers or markups agreed to by the Owner and Design-Builder as part of this Agreement are only subject to audit to confirm that such multiplier or markup has been charged in accordance with this Agreement, with the composition of such multiplier or markup not being subject to audit.
Article 8
Termination for Convenience
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8.1 Upon ten (10) days’ written notice to Design-Builder, Owner may, for its convenience and without cause, elect to terminate this Agreement. In such event, Owner shall pay Design-Builder for the following:
8.1.1 All Work executed and for proven loss, cost or expense in connection with the Work;
8.1.2 The reasonable costs and expenses attributable to such termination, including demobilization costs and amounts due in settlement of terminated contracts with Subcontractors and Design Consultants; and
8.1.3 (Choose one of the following:)
The fair and reasonable sums for overhead and profit on the sum of items 8.1.1 and 8.1.2 above.
or
Overhead and profit in the amount of percent ( %) on
the sum of items 8.1.1 and 8.1.2 above.
8.2 In addition to the amounts set forth in Section 8.1 above, Design-Builder shall be entitled to receive one of the following as applicable:
8.2.1 If Owner terminates this Agreement prior to commencement of construction, Design- Builder shall be paid zero percent ( 0 %) of the remaining balance of the Contract Price.
8.2.2 If Owner terminates this Agreement after commencement of construction, Design-Builder shall be paid zero percent ( 0 %) of the remaining balance of the Contract Price.
8.3 If Owner terminates this Agreement pursuant to Section 8.1 above and proceeds to design and construct the Project through its employees, agents or third parties, Owner’s rights to use the Work Product shall be as set forth in Section 4.3 hereof. Such rights may not be transferred or assigned to others without Design-Builder’s express written consent and such third parties’ agreement to the terms of Article 4.
[The following Article 9 should be used only if the Owner and Design-Builder agree to establish their respective representatives at the time the Agreement is executed rather than during the performance of the Project.]
Article 9
Representatives of the Parties
9.1 Owner’s Representatives.
9.1.1 Owner designates the individual listed below as its Senior Representative ("Owner’s Senior Representative"), which individual has the authority and responsibility for avoiding and resolving disputes under Section 10.2.3 of the General Conditions of Contract: (Identify individual’s name, title, address and telephone numbers)
Milton Sanabria, Administrative Services Manager, General Services Department 22 DBIA Document No. 525 Page 11
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9.1.2 Owner designates the individual listed below as its Owner’s Representative, which individual has the authority and responsibility set forth in Section 3.4 of the General Conditions of Contract: (Identify individual’s name, title, address and telephone numbers) Milton Sanabria, Administrative Services Manager, General Services Department
9.2 Design-Builder’s Representatives.
9.2.1 Design-Builder designates the individual listed below as its Senior Representative ("Design-Builder’s Senior Representative"), which individual has the authority and responsibility for avoiding and resolving disputes under Section 10.2.3 of the General Conditions of Contract:
(Identify individual’s name, title, address and telephone numbers)
9.2.2 Design-Builder designates the individual listed below as its Design-Builder’s Representative, which individual has the authority and responsibility set forth in Section 2.1.1 of the General Conditions of Contract: (Identify individual’s name, title, address and telephone numbers) Article 10
Bonds and Insurance
10.1 Insurance. Design-Builder and Owner shall procure the insurance coverages set forth in the Insurance Exhibit attached hereto and in accordance with Article 5 of the General Conditions of Contract.
10.2 Bonds and Other Performance Security. Design-Builder shall provide the following performance bond and labor and material payment bond or other performance security:
Performance Bond.
[Check one box only. If no box is checked, then no bond is required.] Required Not Required
Payment Bond.
[Check one box only. If no box is checked, then no bond is required.] Required Not Required
Other Performance Security.
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[Check one box only. If no box is checked, then no other performance security is required.
If the “Required” box is checked, identify below the specific performance security that is being required and all salient commercial terms associated with that security.] Required Not Required
Article 11
Other Provisions
11.1 Other provisions, if any, are as follows: (Insert any additional provisions)
COOPERATIVE PURCHASE
Design-Builder is contracted via cooperative purchase, through the National Cooperative Purchasing Alliance (NCPA), a wholly owned Subsidiary of Omnia Partners. Omnia Partners conducts competitive solicitations for construction services, which include pre-established unit prices and specifications covering materials, equipment, and labor. Based on these solicitations, Omnia Partners awards contracts and makes them available to eligible state and local government agencies, including Owner, through cooperative purchasing agreements. Cooperative purchasing maximizes cost savings, staff resources, and expedites the public bidding process. Torrance Municipal Code Section 22.3.15 authorizes Owner to participate in cooperative purchasing agreements while also adhering to the City’s procurement policies.
This Agreement satisfies the cooperative purchasing requirements of Torrance Municipal Code Section
22.3.15. FORCE MAJEURE
If any party fails to perform its obligations because of strikes, lockouts, labor disputes, embargoes, acts of God, inability to obtain labor or materials or reasonable substitutes for labor or materials, governmental restrictions, governmental regulations, governmental controls, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other causes beyond the reasonable control of the party obligated to perform, then that party’s performance shall be excused for a period equal to the period of such cause for failure to perform.
BUSINESS LICENSE
The Design-Builder must obtain a City of Torrance business license prior to the start of work under this Agreement, unless Design-Builder is qualified for an exemption.
PREVAILING WAGE
All Services rendered pursuant to this agreement must be provided in accordance with all ordinances, resolutions, statutes, rules, regulations, and laws of the City of Torrance and any Federal, State, or local governmental agency of competent jurisdiction. Design-Builder is aware of the requirements of California Labor Code Sections 1720, et seq., and 1770, et seq., as well as of California Code of Regulations, Title 8, Sections 1600, et seq., (collectively, the “Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “Public works” and “Maintenance” projects. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is ONE THOUSAND DOLLARS ($1,000) or more, Design-Builder agrees to fully comply with the Prevailing Wage Laws including, but not limited to, requirements related to the maintenance of payroll records and the employment of apprentices.
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Pursuant to California Labor Code Section 1725.5, no contractor or subcontractor may be awarded a contract for public work on a “Public works” project unless registered with the California Department of Industrial Relations (“DIR”) at the time the contract is awarded. If the Services are being performed as part of an applicable “Public works” or “Maintenance” project, as defined by the Prevailing Wage Laws, this project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations (“DIR”). Design-Builder will maintain and will require all subcontractors to maintain valid and current DIR Public Works Contractor registration during the term of this Agreement. Design- Builder must notify Owner in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Design-Builder’s or any of its subcontractor’s DIR registration status has been suspended, revoked, expired, or otherwise changed.
It is understood that it is the responsibility of Design-Builder to determine the correct salary scale.
Design-Builder will make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Services available to interested parties upon request, and post copies at Design-Builder’s principal place of business and at the project site, if any. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced.
Design-Builder must forfeit to Owner TWENTY FIVE DOLLARS ($25.00) per day for each worker who works in excess of the minimum working hours when Design-Builder does not pay overtime. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8) hours is the legal working day.
Design-Builder must also comply with State law requirements to maintain payroll records and must provide for certified records and inspection of records as required by California Labor Code Section 1770 et seq., including Section 1776. Design-Builder will defend (with counsel selected by Owner), indemnify, and hold Owner, its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It is agreed by the parties that, in connection with performance of the Services, including, without limitation, any and all “Public works” (as defined by the Prevailing Wage Laws), Design-Builder will bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Design- Builder acknowledges and agrees that it will be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with those laws. Design-Builder will require the same of all subcontractors.
CONFLICT OF INTEREST
A. No officer or employee of the Owner may have any financial interest, direct or indirect, in this Agreement, nor may any officer or employee participate in any decision relating to the Agreement that affects the officer or employee’s financial interest or the financial interest of any corporation, partnership or association in which the officer or employee is, directly or indirectly interested, in violation of any law, rule or regulation.
B. No person may offer, give, or agree to give any officer or employee or former officer or employee, nor may any officer or employee solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, preparation or any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any way pertaining to any program requirement, contract or subcontract, or to any solicitation or proposal.
COMPLIANCE WITH STATUES AND REGULATIONS
Design-Builder will be knowledgeable of and will comply with all applicable federal, state, county and city statutes, rules, regulations, ordinances and orders.
PUBLIC RECORDS ACT
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Standard Form of Agreement Between Owner and Design-Builder - Lump Sum © 2010 Design-Build Institute of America
Any documents submitted by the CONTRACTOR; all information obtained in connection with the CITY’s right to audit and inspect the CONTRACTOR’s documents, books, and accounting records pursuant to paragraph 14 Contractor’s Accounting Records; Other Project Records; as well as those documents which were required to be submitted in response to the Bid used in the solicitation process for this Contract, become the exclusive property of the City. All such documents become a matter of public record and shall be regarded as public records. Exceptions will be those elements in the California Government Code Section 7920.000 et seq. (Public Records Act) and which are marked “trade secret”, “confidential”, or “proprietary”. The CITY shall not in any way be liable or responsible for the disclosure of any such records including, without limitation, those so marked, if disclosure is required by law, or by an order issued by a court of competent jurisdiction.
In the event the CITY is required to defend an action on a Public Records Act request for any of the aforementioned documents, information, books, records, and/or contents of a proposal marked “trade secret”, “confidential”, or “proprietary”, the CONTRACTOR agrees to defend and indemnify the CITY from all costs and expenses, including reasonable attorney’s fees, in action or liability arising under the Public Records Act.
[Section 2.3.1 of the General Conditions of Contract sets forth a traditional negligence standard as it relates to the Design-Builder’s performance of design professional services.
If the Basis of Design Documents identify specific performance standards that can be objectively measured, the parties, by including the following language, agree that the Design-Builder is obligated to achieve such standards.] Notwithstanding Section 2.3.1 of the General Conditions of Contract, if the parties agree upon specific performance standards in the Basis of Design Documents, the design professional services shall be performed to achieve such standards.
[In lieu of Sections 10.3.1 through 10.3.3 of the General Conditions of Contract, the parties may want to delete such sections and include the following alternative dispute resolution clause.]
Any claims, disputes, or controversies between the parties arising out of or related to the Agreement, or the breach thereof, which have not been resolved in accordance with the procedures set forth in Section 10.2 of the General Conditions of Contract shall be resolved in a court of competent jurisdiction in the state in which the Project is located. [ALL SIGNATURES ON FOLLOWING PAGE]
26 DBIA Document No. 525 Page 15
Standard Form of Agreement Between Owner and Design-Builder - Lump Sum © 2010 Design-Build Institute of America
In executing this Agreement, Owner and Design-Builder each individually represents that it has the necessary financial resources to fulfill its obligations under this Agreement, and each has the necessary corporate approvals to execute this Agreement, and perform the services described herein.
OWNER: DESIGN-BUILDER:
(Name of Owner) (Name of Design-Builder)
(Signature) (Signature)
(Printed Name) (Printed Name)
(Title) (Title)
Date: Date:
ATTORNEY APPROVAL AS TO FORM
ON BEHALF OF:
PATRICK Q. SULLIVAN
CITY ATTORNEY
(Signature)
Galen Bean
(Printed Name)
Deputy City Attorney
(Title)
Date:
Caution: You should sign an original DBIA document which has this caution printed in blue. An original assures that changes will not be obscured as may occur when documents are reproduced.
27 City of Torrance
Municipal Airport HVAC Replacement
SNA-01 Warehouse RTU
Installation
2903 S Tech Center Dr.
Santa Ana, CA 92705
March 4, 2025
28 ATTACHMENT 2
RE: Torrance Municipal Airport
3301 Airport Dr.
Torrance, CA 90505
1 | P a g e
Mechanical Services
949 / 205-9511 Cell
265 McCormick Ave.
Costa Mesa, CA 92626
March 4, 2025 OMNIA CONTRACT # 02-73
To: Mr. Milton Sanabria
City of Torrance
[email protected]
310-357-6922
Subject: Torrance Municipal Airport – HVAC Replacement
ACCO Engineered Systems is pleased to provide the following proposal for the above -referenced facility. ACCO is prepared to provide our full engineering and construction resources for this project to ensure that all plan check and construction timelines are accommodated.
Proposal Based on the Following:
1. Site Meetings conducted on 3/27/24 & 4/9/24
Project Max Duration – 12 months
Design & Engineering – 3 months
Plan Check & Permitting – 1 month
Equipment Lead Times – 3-6 months
Installation – 2 month
Closeout & Training – 2 weeks
BASE SCOPE OF WORK
Mechanical
1. Provide design build engineering for Mechanical, Electrical, Controls and Structural.
2. Receive permit from city
3. Procure following HVAC equipment
(1) Carrier 15-ton chiller
i. Brazed Plate Heat Exchanger, Evaporator Heater
ii. Single Point No disconnect
iii. Standard Compressor
iv. Dual Pump 1.5 HP no VFD
v. Microchannel Coil
vi. Green speed Intelligence, High-Efficiency Variable Condenser Fans (1) Carrier 7.5 ton chilled water air handler
i. Chilled water coil
ii. 2-speed – vane axial fan
iii. Standard medium static
iv. Electromechanical Unit control Board
29 RE: Torrance Municipal Airport
3301 Airport Dr.
Torrance, CA 90505
2 | P a g e
Mechanical Services
949 / 205-9511 Cell
265 McCormick Ave.
Costa Mesa, CA 92626
(5) Console Fan Coil Units
i. 4.0 kW Electric Heater
ii. ECM V2 Variable Airflow for 0-10 VDC
iii. 4 Rows Cooling
iv. High speed Fan with standard motor
v. Vertical Room Fan Coil Unit
4. Remove and replace inline duct heater for 7.5-ton air handler of equal capacity.
5. Reuse existing concrete pad for new chiller replacement.
6. Utilize crane and necessary rigging equipment to demo and install new equipment.
7. Safe-off all connections for piping, electrical and sheet metal.
8. Detail, fabricate and install new sheet metal connections for 7.5-ton air handler and furnish new base.
9. Detail, fabricate and install new piping and connections for chilled water lines. Reuse existing exterior mains and branch. Provide connection equipment POC.
10. Install new control valves and sensors.
11. Furnish and install (1) new chemical pot feeder.
12. Use existing opening for removal of penthouse air handler.
13. Startup, test and verify proper operation of new equipment.
14. Provide 1-year warranty on parts and labor.
15. Provide closeout documentation and training.
Controls
1. Furnish and install an EC-BOS-9 Supervisory Controller which will tie into the existing front end located at the
• HVAC Mechanical shop for City of Torrance. *IT Network Drop Required for Integration.
2. Provide controls for (1) Chiller to include the following points:
• CHWS Temperature
• CHWR Temperature
• CHW Differential Pressure
• OSA Temperature
• CHW Flow
• CHWP Control
• BACnet Integration
3. Provide controls for (1) Air Handling Unit to include the following points:
• Supply Air Temperature
• Return Air Temperature
• Mixed Air Temperature
• Smoke Alarm Status
• High Static Cutout
• CHW Valve Command *Valve and actuator to be provided by Sunbelt Controls and installed by others.
• Damper Control
• (1) Supply Fan to include
Start/stop
30 RE: Torrance Municipal Airport
3301 Airport Dr.
Torrance, CA 90505
3 | P a g e
Mechanical Services
949 / 205-9511 Cell
265 McCormick Ave.
Costa Mesa, CA 92626
Status
• (1) Return Fan to include
Start/Stop
Status
4. Provide controls for (5) FCUs to include the following points:
• Zone Temperature (ECY-STAT)
• Unit Enable
• Unit Status
5. Install all necessary conduit and wire for low voltage points, communication, and low voltage power.
6. Provide NEMA 3R rated panel for chiller plant controls and land 120V power.
7. Engineering, programming, graphics, and functional start up.
Electrical
1. LOTO Circuitry prior to working on equipment.
2. Demo (8) electrical connections to existing equipment to be removed by others (CH-1, AHU-1, FCU-1,2,3,4,5
3. Demo Back and safe off existing feeder as required allowing for removal of HVAC Equipment. Feeders are to be reused for new equipment.
4. Demo (1) existing 6” x6” junction box at 4th Floor homerun for air handler/ duct heater feeder to be replaced with larger junction box.
5. Demo following equipment:
a. (2) 100A disconnect (CH-1, DH-1)
b. (1) 30A Disconnect (AHU-1)
6. Provide and install the following electrical equipment a. (1) 100A, 240V, 3PH NEMA 3R fused disconnect (CH-1A) b. (1) 100A, 240V, 3ph, NEMA 1 Disconnect (DH-1A)
c. (1) 30A, 240V, 3ph NEMA 1 Fused Disconnect (AHU-1A)
7. Provide and install (1) 12” x 12” NEMA 1 junction box to allow for splicing and rerouting of existing air handler / duct heat feeder
8. Provide and install the following feeder/branch
a. Re-extend (1) 1 ¼” GRC conduit w/ (3) #2 THHN + (1) #1 THHN wire from junction box to chiller
b. Re-extend (1) 1 ¼” EMT conduit w/ (3) #1 THHN + (1) #1 THHN wire from junction box to duct heater
c. Re-extend (1) 3/4” EMT conduit w/ (3) #10 THHN + (1) #10 THHN wire from junction box to air handler
d. Re-extend (5) 1/2” EMT conduit w/ (2) #12 THHN + (1) #12 THHN wire from junction box to fan coils
9. Provide and install (5) toggle switch disconnect for fan coil unit (FC-1,2,3,4,5)
31 RE: Torrance Municipal Airport
3301 Airport Dr.
Torrance, CA 90505
4 | P a g e
Mechanical Services
949 / 205-9511 Cell
265 McCormick Ave.
Costa Mesa, CA 92626
ADD ALTERNATE SCOPE #1
1. Provide redundancy for critical equipment (Chiller).
2. Procure additional 15-ton Chiller.
3. Provide spare AHU Motor for stock.
4. Extend concrete pad to accommodate new chiller installation. Rework fencing for new enclosure.
5. Detail and install new piping for redundant configuration.
6. Provide additional control components for chiller, including valves and sensors.
7. Provide new electrical wiring and conduit to power new Chiller.
8. Insulate new Chilled Water lines with aluminum jacketing.
ADD ALTERNATE SCOPE #2
1. Provide Engineering to verify accurate equipment selection
2. Procure (1) wall mounted new Bard unit
3. Perform core to open wall for exterior mounting.
4. Mount new equipment and properly secure
5. Verify electrical panel location Install new electrical conduit and wiring.
Clarifications
1. The proposal is submitted in accordance with and adheres to the terms and conditions set forth by Omnia Partners Contract #02-73
2. Work affecting the Cab area is required to be performed on OT. Work performed outside of the Cab to be performed on straight time.
3. This job covers only those items listed in the above scope of work no work outside the scope of work will be performed without prior approval from customer’s representation.
4. All work by ACCO and subcontractors will follow prevailing wage requirements.
5. Due to ongoing tariff negotiations, ACCO is experiencing rapid price increases from suppliers and volatile supply chains. Pricing is valid for 10 days due to unknown market conditions.
6. Demoed equipment will be properly disposed of at an offsite recycling facility.
7. ACCO to perform Pre and Post Air Reads of existing and new equipment.
8. All equipment and material for required for complete replacement are provided in this proposal.
9. The project scope excludes any structural modifications beyond minor adjustments to accommodate new equipment.
Exclusions
1. Detection, abatement, encapsulation or removal of asbestos or products, materials or equipment containing asbestos. ACCO assumes work areas to be fully abated & cleared of asbestos.
2. Upgrading electrical and structural foundation, unless otherwise stated. 32 RE: Torrance Municipal Airport
3301 Airport Dr.
Torrance, CA 90505
5 | P a g e
Mechanical Services
949 / 205-9511 Cell
265 McCormick Ave.
Costa Mesa, CA 92626
3. Relocation of existing utilities.
4. Repair or replacement of existing systems not mentioned in the scope of work above.
5. Moving and protection of existing owner furniture and/or equipment.
6. Liquidated Damages.
7. Unforeseen conditions.
8. Painting panel covers, conduit, boxes, etc. to match walls and/or surfaces (we will supply the standard grey covers and metallic finished materials).
9. Redundancy for penthouse air handler.
10. Working in energized electrical gear, or on energized electrical devices.
11. Any structural or drywall work needed for backing to install the new electrical scope.
12. Building drain down and refill without representation from the city.
PRICING
SCOPE COST
BASE BID – Like-for-Like Replacement $448,623.00
ADD ALTERNATE #1 – Redundancy Chiller $215,286.00
ADD ALTERNATE #2 – Bard Unit for Server Room $70,040.00 TOTAL $733,949.00
Proposal Terms:
This proposal is valid for 10 days unless otherwise indicated. Thank you for this opportunity to quote this project and we look forward to working with you. Should you have any questions or require additional information, please call.
Respectfully,
ACCO Engineered Systems
Josh Marrs
949-205-9511
33 34
ATTACHMENT 3
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ATTACHMENT 4