091-22 - K & K Construction, LLC - Supplement / Change Order 1CITY OF PORT ORCHARD
Authorization for Change Order No. 1
Date: September 22, 2022
DCD Building Repairs South
Project: Face
Contract / Job # C091-22, PW2022-016
Consultant: K&K Construction, LLC
6696 Richards Ave SE
Port Orchard. WA 98367
Description of reason for amendment:
The requirement for Builders Risk Insurance is waived. In lieu of this a Performance and Payment Bond in
the amount of the total contract sum will be provided by the contractor. Retainage of 5% will be
withheld pursuant to RCW 60.28.011(1)(a). (See attachment A)
There is no change in contract price and no change in the substantial completion date of October 31,2022
Amount
Contract History
Sales Tax Total
Date Appvd b
Original Contract
$21,685.00
$1,995.02
$23,680.02
09-Aug-22
Council
Amendment #1
$0.00
$0.00
$0.00
22-Sep-22
Interim Public Works
Director
Total Contract $21,685.00
$1,995.02 $23,680.02
1 have reviewed the Chanee Order information above and certifv that to the best of my knowledee descriptions a
costs are true and accurate.
G 3
Contract r Approval S gnature Int Im Pubic 1&rks Director/City Engineer
Gregory Bergemann Member
Printed Name & Title
K. Chris Hammer, PE, PMP
Printed Name
Change Orders that do not exceed 10%, with a maximum of
$50,000, of either legally authorized budget limit or contract Approved:
amount established by City Council can be approved by the Public
Works Director.
Change Orders that do not exceed 10%, with a maximum of Attest:
$100,000, of either legally authorized budget limit or contract
amount established by City Council are to be approved by the
Mayor.
Change Orders over $100,000 or exceed a total of 10% require
Council Action.
Mayor
City Clerk
Council Approval Date
A
UA4_Facilihes\C_0CD Building(720_Prospect)\2022\DCD Building Repairs South Face\7.0 Contract\7 1 Contract Documents\C091-22- CO 1 K&K Const.doc
Page 1
C091-22 C/O No. 1 Attachment A
CITY OF PORT ORCHARD
INSURANCE REQUIREMENTS
Insurance Term. The Contractor shall procure and maintain for the duration of the Contract with
the City, insurance as described herein, without interruption from commencement of the
Contractor's work through the term of the contract and for thirty (30) days after the physical
completion date, unless otherwise indicated herein. Such insurance shall be against claims for
injuries to persons or damage to property which may arise from or in connection with the
performance of the work hereunder by the Contractor, their agents, representatives, employees,
and subcontractors and shall meet the requirements herein.
No Limitation. The Contractor's maintenance of insurance, its scope of coverage and limits as
required herein shall not be construed to limit the liability of the Contractor to the coverage
provided by such insurance, or otherwise limit the City's recourse to any remedy available at law
or in equity.
Minimum Scope of Insurance. The Contractor shall obtain insurance of the types described
below:
• Automobile Liability insurance covering all owned, non -owned, hired and leased vehicles.
Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute
form providing equivalent liability coverage. If necessary, the policy shall be endorsed to
provide contractual liability coverage.
• Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01
and shall cover liability arising from premises, operations, stop gap liability, independent
contractors, products -completed operations, personal injury and advertising injury and
liability assumed under an insured contract. The Commercial General Liability insurance
shall be endorsed to provide the Aggregate Per Project Endorsement ISO form CG 25 03
1185 or an equivalent endorsement. There shall be no endorsement or modification of
the Commercial General Liability Insurance for liability arising from explosion, collapse, or
underground property damage. The City shall be named by endorsement as an additional
insured underthe Contractor's Commercial General Liability insurance policy with respect
to the work performed for the City using ISO Additional Insured endorsement CG or
substitute endorsements providing equivalent coverage.
• Workers' Compensation coverage as required by the Industrial Insurance laws of the State
of Washington.
• Employers' Liability coverage to include bodily injury, and bodily injury by disease.
Employers Liability coverage may be included in the Contractor's General Liability
Coverage or as a stand-alone policy.
City of Port Orchard and K&K Construction LLC_ Rev. IBDR 4-2022
Public Works Project No. PW2022-016
Small Works Contract No. C091-22
C091-22 C/O No. 1 Attachment A
-- - - - - - •-
•-
- -
if Pill. -•-
--
.. -- --
- -
A.
...
• Employer's Liability insurance limit of $1,000,000 each accident, Employer's Liability
Disease each employee $1,000,000 and Employer's Liability Disease — Policy limit
$1,000.000.
Minimum Amounts of Insurance. The Contractor shall maintain the following insurance limits:
• Automobile Liability insurance with a minimum combined single limit for bodily injury and
property damage of $1,000.000 per accident.
• Commercial General Liability insurance shall be written with limits no less than
$1,000,000 each occurrence, $2,000,000 general aggregate and a $2,000,000 products -
completed operations aggregate limit.
• Workers' Compensation insurance as required by the State of Washington.
• Employer's Liability insurance with Washington Stop Gap Employers' Liability minimum
limits of $1,000,000 each accident, $1,000,000 disease - each employee, $1,000,000
disease - policy limit.
The City will not be responsible for payment of industrial insurance premiums or for any other
claim or benefit for this Contractor or any sub -Contractor or employee of the Contractor which
might arise under the industrial insurance laws during the performance of duties and services
under this contract. If the Department of Labor and Industries, upon audit, determines that
industrial insurance payments are due and owing as a result of work performed under this
contract, those payments shall be made by the Contractor; the Contractor shall indemnify the
City and guarantee payment of such amounts.
City of Port Orchard and K&K Construction LLC_ Rev. IBDR 4-2022
Public Works Project No. PW2022-016
Small Works Contract No. C091-22
C091-22 C/O No. 1 Attachment A
Public Entity Full Availability of Contractor Limits. If the Contractor maintains higher insurance
limits than the minimums shown above, the Public Entity shall be insured for the full available
limits of Commercial General and Excess or Umbrella liability maintained by the Contractor,
irrespective of whether such limits maintained by the Contractor are greater than those required
by this contract or whether any certificate of insurance furnished to the Public Entity evidences
limits of liability lower than those maintained by the Contractor.
Other Insurance Provisions. The Contractor's Automobile Liability, Commercial General Liability
and Builders Risk insurance policies are to contain or be endorsed to contain that they shall be
primary insurance as respects the City. Any insurance, self-insurance or insurance pool coverage
maintained bythe City shall be excess of the Contractor's insurance and shall not contribute with
it. If any coverage is written on a "claims made" basis, then a minimum of three (3) year extended
reporting period shall be included with the claims made policy, and proof of this extended
reporting period shall be provided to the City.
Contractor's Insurance for Other Losses. The Contractor shall assume full responsibility for all
loss or damage from any cause whatsoever to any tools, including but not limited to the
Contractor's employee -owned tools, machinery, equipment, or motor vehicles owned or rented
by the Contractor, or the Contractor's agents, suppliers, or contractors as well as any temporary
structures, scaffolding and protective fences.
Waiver of Subrogation. The Contractor waives all rights against the City, any of its Subcontractors,
Sub -subcontractors, agents, and employees, for damages caused by fire or other perils to the
extent covered by Builders Risk insurance or other property insurance obtained pursuant to this
Insurance Requirements Section of the Contract or other property insurance applicable to the
work. The Contractor's insurance shall be endorsed to waive the right of subrogation against the
City, or any self-insurance, or insurance pool coverage maintained by the City. The City will not
waive its right to subrogation against the Contractor. The Contractor's insurance shall be
endorsed acknowledging that the City will not waive its right to subrogation.
Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating
of not less than A:VII.
Verification of Coverage. The Contractor shall furnish the City with original certificates and a copy
of the amendatory endorsements, including but not necessarily limited to the additional insured
endorsement, evidencing the Automobile Liability and Commercial General Liability insurance of
the Contractor before commencement of the work. Before any exposure to loss may occur, the
Contractor shall file with the City a copy of the Builders Risk insurance policy that includes all
applicable conditions, exclusions, definitions, terms, and endorsements related to this project.
Subcontractors. The Contractor shall cause each and every Subcontractor to provide insurance
coverage that complies with all applicable requirements of the Contractor -provided insurance as
set forth herein (with the exception of Builders Risk insurance. The Contractor shall ensure that
City of Port Orchard and K&K Construction LLC_ Rev. IBDR 4-2022
Public Works Project No. PW2022-016
Small Works Contract No. C091-22
C091-22 C/O No. 1 Attachment A
the Public Entity is an additional insured on each and every Subcontractor's Commercial General
liability insurance policy using an endorsement as least as broad as ISO CG 20 10 10 01 for ongoing
operations and CG 20 37 10 01 for completed operations.
Notice of Cancellation. The Contractor's insurance shall be endorsed to state that coverage shall
not be cancelled by either party, except after thirty (30) days prior written notice by certified
mail, return receipt requested, has been given to the City. The Contractor shall provide the City
and all Additional Insureds for this work with written notice of any policy cancellation, within two
business days of their receipt of such notice.
Failure to Maintain Insurance. The insurance required by this Section will not be canceled,
materially changed, or altered without forty-five (45) days prior written notice submitted to the
City. Failure on the part of the Contractor to maintain insurance as required shall constitute a
material breach of contract, upon which the City may, after giving five business days' notice to
the Contractor to correct the breach, immediately terminate the Contract, or, at its discretion,
procure or renew such insurance and pay any and all premiums in connection therewith, with
any sums so expended to be repaid to the City on demand, or at the sole discretion of the City,
offset against funds due the Contractor from the City.
City of Port Orchard and K&K Construction LLC_ Rev. IBDR 4-2022
Public Works Project No. PW2022-016
Small Works Contract No. C091-22
C091-22 C/O No. 1 Attachment A
CITY OF PORT ORCHARD
DECLARATION OF OPTION FOR PERFORMANCE AND PAYMENT
BOND OR ADDITIONAL RETAINAGE
(APPLICABLE TO CONTRACTS OF $150,000 OR LESS — RCW 39.08.010)
Note 1: This form must be submitted at the time the Contractor executes the Contract. The
Contractor shall designate the option, where applicable, desired by checking the appropriate
space.
Note 2: Regardless of choice under Section 2 of this form, the Contractor will be required to
provide a warranty/maintenance bond effective at project close out prior to either release of the
performance bond or release of the 10% retainage.
1. The Contractor shall provide 5% retainage, pursuant to RCW 60.28.011(1)(a).
2. The Contractor elects to (select one):
X(1) Furnish a performance and payment bond in the amount of the total
contract sum. An executed performance and payment bond on the required form
is included with the executed contract documents.
(2) Have the City retain, in lieu of the performance and payment bonds,
ten percent (10%) of the total contract amount for a period of thirty days after
date of final acceptance, or until receipt of all necessary releases from the
department of revenue and the department of labor and industries and
settlement of any liens filed under chapter 60.28 RCW, whichever is later. RCW
39.08.010.
In choosing option 2, the Contractor agrees that if the Contractor, its heirs,
executors, administrators, successors, or assigns, shall in all things stand to and
abide by, and well and truly keep and perform the covenants, conditions and
agreements in the Contract, and shall faithfully perform all the provisions of such
Contract and shall also well and truly perform and fulfill all the undertakings,
covenants, terms, conditions and agreements of any and all duly authorized
modifications of the Contract that may hereafter be made, at the time and in the
manner therein specified, and shall pay all laborers, mechanics, subcontractors,
and materialmen, and all persons who shall supply such person or persons, or
subcontractors, with provisions and supplies for the carrying on of such work, on
his or her part, and shall defend, indemnify, and save harmless the City of Port
Orchard, Washington, its officers and agents from any claim for such payment,
then the funds retained in lieu of a performance bond shall be released at the time
City of Port Orchard and K&K Construction LLC_ Rev. IBDR 4-2022
Public Works Project No. PW2022-016
Small Works Contract No. C091-22
C091-22 C/O No. I Attachment A
provided in said option 2; otherwise, the funds shall be retained until the
Contractor fulfills the said obligations.
Contractor Signature, Date 9/28/2022
Bond No.
City of Port Orchard and K&K Construction LLC_ Rev. IBDR 4-2022
Public Works Project No. PW2022-016
Small Works Contract No. C091-22
C091-22 C/O No. 1 Attachment A
PERFORMANCE AND PAYMENT BOND
CITY OF PORT ORCHARD
DCD Building Repairs South Face
CONTRACT NO. C091-22
Bond to City of Port Orchard, Washington
Bond No.
We, , and ,
(Principal) (Surety)
a Corporation, and as a surety corporation authorized
to become a surety upon Bonds of Contractors with municipal corporations in Washington State,
are jointly and severally bound to the City of Port Orchard, Washington ("Owner"), in the penal
sum of Dollars
($ ), the payment of which sum, on demand, we bind ourselves and our
successors, heirs, administrators, executors, or personal representatives, as the case may be. This
Performance Bond is provided to secure the performance of Principal in connection with a
contract dated , 20 , between Principal and Owner for a project entitled DCD
Building Repairs South Face Contract No. C091-22 ("Contract"). The initial penal sum shall equal
100 percent of the Total Bid Price, including sales tax, as specified in the Proposal submitted by
Principal.
NOW, THEREFORE, this Performance and Payment Bond shall be satisfied and released only upon
the condition that Principal, its heirs, executors, administrators, successors, or assigns:
• Faithfully performs all provisions of the Contract and changes authorized by Owner in
the manner and within the time specified as may be extended under the Contract;
• Pays all laborers, mechanics, subcontractors, lower tier subcontractors, material
persons, and all other persons or agents who supply labor, equipment, or materials
to the Project;
• Pays the taxes, increases and penalties incurred on the Project under Titles 50, 51 and
82 RCW on: (A) Projects referred to in RCW 60.28.011(1)(b); and/or (B) Projects for
which the bond is conditioned on the payment of such taxes, increases and penalties;
and
• Posts a two-year warranty/maintenance bond to secure the project. Such bond shall
be in the amount of twenty percent (20%) of the project costs.
Provided, further that this bond shall remain in full force and effect until released in writing by
the City at the request of the Surety or Principal.
The Surety shall indemnify, defend, and protect the Owner against any claim of direct or indirect
loss resulting from the failure:
City of Port Orchard and K&K Construction LLC_ Rev. IBDR 4-2022
Public Works Project No. PW2022-016
Small Works Contract No. C091-22
C091-22 C/O No. 1 Attachment A
• Of the Principal (or any of the employees, subcontractors, or lower tier subcontractors
of the Principal) to faithfully perform the contract; or
Of the Principal (or any subcontractor or lower tier subcontractor of the Principal) to
pay all laborers, mechanics, subcontractors, lower tier subcontractors, material
person, or any other person who provides supplies or provisions for carrying out the
work.
The liability of Surety shall be limited to the penal sum of this Performance and Payment Bond.
Principle and Surety agree that if the Owner is required to engage the services of an attorney in
connection with enforcement of this bond each shall pay the Owner reasonable attorney's fees,
whether or not suit is commenced, in addition to the penal sum.
No change, extension of time, alteration, or addition to the terms of the Contract or to the Work
to be performed under the Contract shall in any way affect Surety's obligation on the
Performance Bond. Surety hereby waives notice of any change, extension of time, alteration, or
addition to the terms of the Contract or the Work, with the exception that Surety shall be notified
if the Contract time is extended by more than twenty percent (20%).
If any modification or change increases the total amount to be paid under the Contract, Surety's
obligation under this Performance and Payment Bond shall automatically increase in a like
amount. Any such increase shall not exceed twenty-five percent (25%) of the original amount of
the Performance and Payment Bond without the prior written consent of Surety.
This Performance and Payment Bond shall be governed and construed by the laws of the State
of Washington, and venue shall be in Kitsap County, Washington.
IN WITNESS WHEREOF, the parties have executed this instrument in two (2) identical
counterparts this day of , 20
Principal
Signature of Authorized Official
By
Printed Name and Title
Name and address of local office of
Agent and/or Surety Company:
Surety
Signature of Authorized Official
By
Attorney in Fact (Attach Power of Attorney)
Surety companies executing bonds must appear on the current Authorized Insurance List in the
State of Washington per Section 1-02.7 of the Standard Specifications.
City of Port Orchard and K&K Construction LLC_
Public Works Project No. PW2022-016
Small Works Contract No. C091-22
Rev. IBDR 4-2022
C091-22 C/O No. 1 Attachment A
ACKNOWLEDGEMENT
Corporation, Partnership, or Individual
STATE OF )
)ss.
COUNTY OF
On this day of , 20 , before me, the undersigned, a Notary Public in and
for the State of Washington, duly commissioned and sworn, personally
appeared , to me known to be the (check one of the following
boxes):
❑ of , the
corporation,
® of , the
partnership,
❑ individual,
that executed the foregoing instrument to be the free and voluntary act and deed of said ❑
corporation, ❑ partnership, ❑ individual for the uses and purposes therein mentioned, and on
oath stated that ❑ he ❑ she was authorized to execute said instrument.
WITNESS my hand and official seal hereto affixed the day and year first above written.
Print or type name
NOTARY PUBLIC,
in and for the State of Washington
Residing at
My Commission expires:
Notary Seal with Ink Stamp
City of Port Orchard and K&K Construction LLC_ Rev. IBDR 4-2022
Public Works Project No. PW2022-016
Small Works Contract No. C091-22
SURETY ACKNOWLEDGEMENT
STATE OF
)ss.
COUNTY OF )
C091-22 C/O No. 1 Attachment A
On this day of , 20 , before me, the undersigned, a Notary
Public in and for the State of Washington, duly commissioned and sworn, personally
appeared , to me known to be the
of , the corporation that executed the foregoing
instrument, and acknowledged the said instrument to be the free and voluntary act and deed of
said corporation, for the uses and purposes therein mentioned, and on oath stated that ❑ he
❑ she was authorized to execute said instrument.
WITNESS my hand and official seal hereto affixed the day and year first above written.
Notary Seal with Ink Stamp
City of Port Orchard and K&K Construction LLC_
Public Works Project No. PW2022-016
Small Works Contract No. C091-22
Print or type name
NOTARY PUBLIC,
in and for the State of Washington
Residing
at:
My Commission expires:
Rev. IBDR 4-2022