055-17 - Puget Paving & Construction - ContractCITY OF PORT ORCHARD SMALL WORKS OVER 35K
CONSTRUCTION CONTRACT NO. C055-17
PUBLIC WORKS PROJECT NO. 2017-031
THIS Agreement is made effective as of the 26th day of September, 2017, by and between
CITY OF PORT ORCHARD, WASHINGTON (“CITY”)
216 Prospect Street
Port Orchard, Washington 98366
Contact: Mayor Robert Putaansuu Phone: 360.876.4407 Fax: 360.895.9029
and
PUGET PAVING & CONSTRUCTION (“CONTRACTOR”)
10817 26™ AvenueS
Lakewood, WA 98499
Email: stefan@pugetpaving.comPhone: 253.474.5616Contact:Stefan Gehring
for the following Project:
2017-2018 Roadway Asphalt Repair (“PROJECT”)
The City and Contractor agree as follows:
1. Contract Documents. The Contractor shall complete the Work described in the Contract
Documents for the Project. The following documents are collectively referred to as the
“Contract Documents”:
a. This Agreement signed by the City and the Contractor;
b. Division 1 of WSDOT Standard Specifications for Road, Bridge and Municipal
Construction, 2016 edition, together with APWA Supplement (1-99), subject to specific
provisions contained within the Public Works Terms and Conditions.
c. The attached Special Provisions, Plans and Specifications;
d. Written change orders or orders for minor changes in the Work issued after execution of
this Agreement,
e. Public Works Terms and Conditions;
f. Insurance and Bonding Requirements; and
City of Port Orchard and Puget Paving & Construction
Public Works Project No. 2017-031
Smalt Works Contract No. C055-I7
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g. The bid proposal submitted by the Contractor, except when inconsistent with Contract
Documents a-f.
The intent of the Contract Documents is to include all items necessary for the proper execution
and completion of the Work by the Contractor. These Contract Documents complement each
other in describing a complete work. Any requirement in one document binds as if stated in all.
The Contractor shall provide any work or materials clearly implied in the Contract even if the
Contract does not mention it specifically.
2. Date of Commencement and Substantial Completion Date. The date of commencement
shall be October 2, 2017. The Contractor shall substantially complete the Work not later
than May 1, 2018, subject to adjustment by change order.
3. The Contractor shall do all work and furnish all tools, materials, and equipment in
accordance with the above described Construction Contract Documents. The Contractor shall
provide and bear the expense of all equipment, work, and labor of any sort whatsoever that
may be required for the transfer of materials and for constructing and completing of the work
provided for in these Construction Contract Documents, except those items mentioned
therein to be furnished by the City.
4. Subject to additions and deductions by change order, the construction Contract Sum is the
base bid amount of $151,703.00 (including applicable sales tax). The construction Contract
Sum shall include all items and services necessary for the proper execution and completion
of the work. The City hereby promises and agrees with the Contractor to employ, and does
employ the Contractor to provide the materials and to do and cause to be done the work
described in the Construction Contract Documents and to complete and finish the same
according to the plans and specifications and the terms and conditions herein contained; and
hereby contracts to pay for the same at the time and in the manner and upon the conditions
provided for in this Contract.
5. The Contractor agrees to comply with all state and federal laws relating to the employment of
labor and wage rates to be paid. The Contractor agrees to furnish insurance of the types and
the amounts set forth in the Construction Contract Documents.
6. The Contractor agrees to repair and replace all property of the City and all property of others
damaged by himself, his employees, and sub-contractors.
7. The Contractor for himself and for his heirs, executors, administrators, successors, and
assigns, does hereby agree to the full performance of all the covenants herein upon the part of
the Contractor.
8. It is further provided that no liability shall attach to the City of Port Orchard by reason of
entering into this Construction Contract, except as expressly provided herein.
City of Port Orchard and Puget Paving & Construction
Public Works Project No. 2017-031
Small Works Contract No. C055-I7
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IN WITNESS WHEREOF, the parties hereto have caused this contract to be duly
executed on the date first written above.
CITY OF PORT ORCHARD CONTRACTOR
Op
Robert Putaansuu, Mayor
By:
■ft^deAXIts:
ATTEST/A UTFIEN-TKMTE:
randy Rinearson, CMC, City Clerk
APPROVED AS TO FORM:
: <&•/<st
Sfwron Cates, City Attorney
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City of Port Orchard and Puget Paving & Construction
Public Works Project No. 2017-031
Small Works Contract No. C055-I7
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CERTIFICATE AS TO CORPORATE PRINCIPAL
&wt\n<vL ^ghfjOa
Signer)) certify that I am the )r|e/tT-V
(Corporate Officer (Not Contract
_____________________ (Corporate
Title) of the corporation named as the Contractor in the Agreement attached hereto; that
T^kef-pj^ f i i.)Q_____, (Contract Signer) who signed said Agreement on behalf
the Contractor, was thc\u yf_______ (Corporate Title) of said
corporation; that said Agreement was duly signed for and in behalf of said corporation by
authority of its governing body, and is within the scope of its corporate powers.
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City of Port Orchard and Puget Paving & Construction
Public Works Project No. 2017-031
Small Works Contract No. C055-I7
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CITY OF PORT ORCHARD
PUBLIC WORK PROJECT TERMS AND CONDITIONS
The following terms and conditions shall be used in conjunction with the Standard Specifications
for Road, Bridge and Municipal Construction, 2016 edition, together with the APWA
Supplement (Section 1-99), as issued by the Washington State Department of Transportation and
American Public Works Association, Washington State Chapter, hereinafter referred to as the
"standard specifications". The standard specifications, except as they may be modified or
superseded by these provisions, shall govern all phases of work under this contract, and they are
by reference made an integral part of these specifications and contract as if herein fully set forth.
When the provisions of the standard specification conflict with the terms and conditions as
contained herein, the terms and conditions shall prevail.
1. BID PRICE: The bid price(s) shall include all necessary permits, and fees and items of labor,
material, equipment, tools, overhead and compensation, supplies, taxes, utilities and other
incidentals necessary to complete the work in a fully functional and operational state. All prices
including bid prices are in US funds.
2. DEFINITIONS: The term “City” means Port Orchard, Washington, “successful bidder” means
the apparent lowest and best responsible bidder to whom an award is made, and "Contractor"
means the successful bidder who has satisfied the requirements for the award and who receives a
contract executed by the City. “Bidder” means the person, firm or corporation that has made an
offer in response to the invitation to bid. “Work” means the construction and services required by
the Contract Documents, whether completed or partially completed, and includes all other labor,
materials, equipment and services provided or to be provided by the Contractor to fulfill the
Contractor’s obligations.
3. LICENSING AND REGISTRATION: The Contractor must have a Washington State
certificate of registration per chapter 18.27 RCW; a current state unified business identifier
number; and if applicable, industrial insurance coverage for the bidder's employees working in
Washington, an Employment Security Department number, and a state excise tax registration
number. In addition, the bidder must not be disqualified from bidding on any public works
contracts under RCW 39.06.010 or 39.12.065(3).
4. PUBLIC WORK REQUIREMENTS: This project constitutes a public work under state law.
Bidders are warned to take into consideration statutory legal requirements, particularly, the
payment of prevailing wages and fringe benefits, payment and performance bonds and sales tax
implications in making their bids. It is the sole responsibility of the bidder to insure that the
appropriate labor classification(s) are identified and that the applicable wage and benefit rates are
taken into consideration when preparing their bid according to these specifications. The
Contractor shall complete and file State of Washington, Department of Labor & Industries,
Statement of Intent to Pay Prevailing Wages and Affidavit of Wages Paid forms and shall
familiarize itself with their requirements. The Contractor shall also be responsible for and pay all
costs pertaining to the processing of these forms.
5. INSURANCE REQUIREMENT: The successful bidder will furnish insurance as stipulated in
the Attachment entitled "Insurance Requirements.”
6. RECEIPT OF ADDENDA: All official clarifications or interpretations of the bid documents
will be by written addenda only.
City of Port Orchard and Puget Paving & Construction
Public Works Project No. 2017-031
Small Works Contract No. C055-I7
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7. PROJECT COMPLIANCE: In compliance with the request for quotation, Bidder hereby
proposes to perform all work for this project in strict accordance with the Contract Documents, at
the Contract Sum, and within the time set forth herein with the understanding that time is of the
essence in the performance of this contract.
8. TAXES: Proposals shall include all applicable taxes except sales tax which is a separate bid
item. It shall be the Bidder's responsibility to furnish Federal Excise Tax Exemption Certificate,
when applicable.
9. ERROR IN EXTENSION: Unit price, when used, shall govern in case of extension error.
10. PERMITS AND FEES: The Contractor shall furnish all permits, inspection fees, and fees
required in the performance of this contract, including those charged under RCW 39.12.070 by
the Department of Labor and Industries works for the approval of statements of intent to pay
prevailing wages and the certification of affidavits of wages paid, etc. The Department may also
charge fees to persons or organizations requesting the arbitration of disputes under RCW
39.12.060. The Contractor is responsible for all fees resulting from these statutes.
11. CONTRACT: The Contract, when properly signed, will be the only form which will be
recognized by the City as an award. The executed Contract supersedes all previous
communications and negotiations, except as referenced herein, and constitutes the entire
agreement between the City and Contractor (parties), except as provided herein. The Contractor
shall not make any changes, alterations, or variations in the terms of the contract without the
written consent of the City. No terms stated by the Bidder in its proposal shall be binding on the
City unless accepted in writing by the City. The successful bidder may not assign the Contract
resulting from this invitation to bid without the City’s prior written consent. No waiver by the
City of a breach of any provision of the terms and conditions outlined in the invitation to bid
shall constitute a waiver of any other breach of such provision or of any other provisions.
12. CHANGE ORDERS: If the City or the Contractor requests a change in the Work, or either
party believes that a change is necessary, then the parties shall comply with the following
procedure to document and reflect a change in the Work: (a) The party requesting the change
shall write a description of the change and give the description to the other party (the “Change
Notice”); (b) Before proceeding with the change in Work, unless otherwise excused by
emergency, the Contractor shall provide the City with a fixed-price written estimate of the cost
and time impact of the change in Work; and (c) The City and the Contractor shall execute a
Change Order confirming their agreement as to the change in Work, the fixed-price cost, and the
extension of the Substantial Completion Date, if any. If the change in Work cannot be
performed on a fixed-price basis, the Change Order shall identify the agreed method of
compensation.
13. CHANGE DIRECTIVES: A “Change Directive” is a written order signed by the City,
directing a change in the Work prior to agreement on adjustment, if any, in the Contract Sum or
Substantial Completion Date, or both. The City may by Change Directive, without invalidating
the Contract, order changes in the Work within the general scope of the Contract consisting of
additions, deletions or other revisions, the Contract Sum and Substantial Completion Date being
adjusted accordingly. A Change Directive shall only be used in the absence of total agreement on
the terms of a Change Order. Upon receipt of a Change Directive, the Contractor shall promptly
proceed with the change in the Work and advise the City of its agreement or disagreement with
the proposed method for determining the proposed adjustment in the Contract Sum and/or
Substantial Completion Date, if any, provided in the Change Directive. A Change Directive
signed by the Contractor indicates agreement with all terms set forth in the Change Directive.
City of Port Orchard and Puget Paving & Construction
Public Works Project No. 2017-031
Small Works Contract No. COS5-17
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Such agreement shall be effective immediately and shall be recorded as soon as practical with a
Change Order. If the parties are unable to agree on an adjustment to the Contract Sum and/or
Substantial Completion Date, if any, then either party may submit the matter for determination in
accordance with Section 21.
14. MINOR CHANGES IN THE WORK: The City shall have the authority to order minor
changes in the Work not involving adjustment in the Contract Sum or extension of the
Substantial Completion Date and not inconsistent with the Contract documents. The Contractor
shall promptly carry out such written orders for minor changes in the Work.
15. COMPLIANCE WITH LAWS AND REGULATIONS: The Contractor warrants full
compliance with all applicable local, state or federal laws and regulations and agrees to
indemnify and defend the City against any loss, cost, liability or damage, including reasonable
attorney’s fees, by reason of successful bidder's violation of this paragraph.
16. INDEMNIFICATION: All services to be rendered or performed under contract will be
rendered or performed entirely at the Contractor’s own risk. The Contractor shall defend,
indemnify and hold the City, its officers, officials, employees and volunteers harmless from any
and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in
connection with the performance of this Agreement, except for injuries and damages caused by
the sole negligence of the City. Should a court of competent jurisdiction determine that this
Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of
bodily injury to persons or damages to property caused by or resulting from the concurrent
negligence of the Contractor and the City, its officers, officials, employees and volunteers, the
Contractor’s liability hereunder shall be only to the extent of the Contractor’s negligence. It is
further specifically and expressly understood that the indemnification provided herein constitutes
the Contractor’s waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the
purposes of this indemnification. This waiver has been mutually negotiated by the parties. The
provisions of this section shall survive the expiration or termination of this Agreement.
17. TERMINATION: This Contract may be terminated in whole or in part, without penalty,
under the following conditions: 1) by mutual written agreement; 2) by the City for breach by the
Contractor of any of the obligations or requirements set forth in the contract documents which
would, at the option of the City, require the Contractor to assume liability for any and all
damages, including the excess of re-procuring similar products or services; 3) for convenience of
the City; or 4) by the City for non-appropriation of funds.
18. TERMINATION BY THE CITY WITHOUT CAUSE: Notwithstanding any other provisions
contained herein, the City, without cause, may terminate the contract between the parties by
providing notice to the Contractor. Upon termination under this section: 1) All remaining
obligations of the parties are discharged, but any right based upon breach or performance
occurring prior to termination survives; 2) If the reasonable costs of performance incurred by the
Contractor prior to termination exceed the amount paid by the City to the Contractor on the
Contract Sum, the City shall reimburse the Contractor in the amount of such excess; 3) If the
amount paid by the City to the Contractor on the Contract Sum exceeds the reasonable costs of
performance incurred by the Contractor prior to termination, the Contractor shall reimburse the
City in the amount of such excess; 4) Any funds obtained or retained by the Contractor as
provided in subsections 2) or 3), above, shall constitute full payment and consideration for the
services performed by the Contractor prior to termination.
City of Port Orchard and Puget Paving & Construction
Public Works Project No. 2017-03 I
Small Works Contract No. C055-17
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19. COMPLIANCE WITH TERMS: The City may at any time insist upon strict compliance with
these terms and conditions, not withstanding any previous custom, practice, or course of dealing
to the contrary.
20. PAYMENT: Contractor shall maintain time and expense records and provide them to the
City along with monthly invoices in a format acceptable to the City for work performed to the
date of the invoice. All invoices shall be paid by the City within 45 days of receipt of a proper
invoice. If the services rendered to not meet the requirements of the Contract, Contractor will
correct or modify the work to comply with the contract. City may withhold payment for such
work until work meets the requirements of the Contract.
21. DISPUTE RESOLUTION: In the event there is a dispute between the parties, the parties
agree to resolve that dispute in the following manner: (a) The parties shall attempt in good faith
to resolve any dispute promptly through negotiation. Either party may give the other party
written notice that a dispute exists (a “Notice of Dispute”). The Notice of Dispute shall include a
statement of such party’s position. Within ten (10) days of the delivery of the Notice of Dispute,
the parties shall meet at a mutually acceptable time and place and attempt to resolve the dispute;
(b) If the parties are unable to resolve the dispute, they may elect to submit the dispute to
mediation. The cost of the mediation shall be borne equally by each party. The mediator shall be
selected by the mutual agreement of the parties; (c) If the mediation does not result in a
settlement of the dispute, the dispute shall be settled by binding arbitration by the Judicial and
Arbitration Mediations Service (“JAMS”) in accordance with the then operative construction
rules of JAMS. The parties may select an arbitrator by mutual agreement, or if unable to agree,
the arbitrator will be selected pursuant to the rules of JAMS. The parties shall be bound by the
decision of such arbitrator. The arbitration shall be conducted in Kitsap County, Washington;
provided, if JAMS is unable to conduct the arbitration in Kitsap County, then the arbitration shall
be held in such location as the parties may agree after consulting with JAMS.
City of Port Orchard and Puget Paving & Construction
Public Works Project No. 2017-031
Small Works Contract No. C055-I7
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CITY OF PORT ORCHARD
INSURANCE REQUIREMENTS
The Contractor shall procure and maintain for the duration of the Contract with the City,
insurance 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.
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 11 85 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 under the 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.
• Builders Risk insurance covering interests of the City, the Contractor, Subcontractors, and
Sub-subcontractors in the work. Builders Risk insurance shall be on an all-risk policy
form and shall insure against the perils of fire and extended coverage and physical loss or
damage including flood, earthquake, theft, vandalism, malicious mischief, collapse,
temporary buildings and debris removal. The Builders Risk insurance covering the work
will have a deductible of $5,000 for each occurrence, which will be the responsibility of
the Contractor. Higher deductibles for flood and earthquake perils may be accepted by
the City upon written request by the Contractor and written acceptance by the City. Any
City of Port Orchard and Puget Paving & Construction
Public Works Project No. 2017-031
Small Works Contract No. C055-17
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increased deductibles accepted by the City will remain the responsibility of the
Contractor. The Builders Risk insurance shall be maintained until final acceptance of the
work by the City.
• 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.
Builders Risk insurance shall be written in the amount of the completed value of the
project with no coinsurance provisions.
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 by the 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 provided by 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.
City of Port Orchard and Puget Paving & Construction
Public Works Project No. 2017-031
Small Works Contract No. C055-I7
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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 have sole responsibility for determining the insurance
coverage and limits required, if any, to be obtained by subcontractors, which determination shall
be made in accordance with reasonable and prudent business practices.
Notice of Cancellation. 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 Puget Paving & Construction
Public Works Project No. 2017-031
Small Works Contract No. CO55-17
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CITY OF PORT ORCHARD
DECLARATION OF OPTION FOR PERFORMANCE
BOND OR ADDITIONAL RETAINAGE
(APPLICABLE TO CONTRACTS OF S150.000 OR LESS -RCW 39.08.010)
Note: This form must he submitted at the time the Contractor executes the Contract. The
Contractor shall designate the option desired by checking the appropriate space.
The Contractor elects to:
(1) Furnish a performance bond in the amount of the total contract sum. An executed
iond on the required form is included with the executed contract documents.performai
) 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 provided in said
option 2; otherwise, the funds shall be retained until the Contractor fulfills the said obligations.
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City of Port Orchard and Puget Paving & Construction
Public Works Project No. 2017-031
Small Works Contract No. CO55-17
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uctroirtContract 2017-2018 PavingdocPage 12 of21
SELECTION OF RETAINAGE OPTION
CITY OF PORT ORCHARD
2017-2018 ROADWAY ASPHALT REPAIR PROJECT
PUBLIC WORKS PROJECT PW2017-031
Cfcs-rti
Contract/Purchase Order Number:
Pursuant to RC W 60.28.011. five percent (5%) of all monies earned by the Contractor on estimates during
the progress of the work shall be retained by the City for the purposes mentioned in said statute. The
Contractor elects to have these monies (check oneV.
ef Retained in a fund by the Owner until sixty (60) days following the final acceptance of said
improvement or work is completed;
I I Deposited by the Owner in an interest bearing account in a bank, mutual savings bank, or savings
and loan association, not subject to withdrawal until after the final acceptance of said improvement
or work is completed, or until agreed to by both parties: Provided that interest on such account shall
be paid to the Contractor; or
I I Placed in escrow with a bank or trust company by the Owner until sixty (60) days following the
final acceptance of said improvement or work is completed. When the monies reserved are to be
placed in escrow, the Owner shall issue a check representing the sum of the monies reserved
payable to the bank or trust company and the Contractor jointly. Such check shall be converted into
bonds and securities chosen by the Contractor and approved by the Owner and such bonds and
securities shall be held in escrow. Interest on such bonds and securities shall be paid to the
Contractor as the said interest accrues. Contractor hereby further agrees to be fully responsible for
payment of all costs or fees incurred as a result of placing said retained percentage in escrow and
investing it as authorized by statue. The City of Port Orchard shall not be liable in any way for any
cost or fees in connection therewith.
Name of Financial Institution
Address of Financial Institution
City, State, Zip Code of Financial Institution
Escrow Account Number
Contractor’s Signature Date
SJ
PERFORMANCE AND PAYMENT BOND
ICHARDCITY OF PORT
CITY CLERKS OFFICECITY OF PORT ORCHARD
CONTRACT NO. C055-17
Bond to City of Port Orchard, Washington
Bond No. 023040373
We, Puget Paving & Construction, Inc.
(Principal)
. and The Ohio Casualty Insurance Company
(Surety)
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
One Hundred Fifty One Thousand Seven Hundred Three and 00/100thsDollars ($ 151,703.00
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 September 26 , 20 1 7 , between Principal
and Owner for a project entitled 2017-2018 Roadway Asphalt Repair
Contract No. C055-17
Price, including sales tax, as specified in the Proposal submitted by Principal.
a New Hampshire
(“Contract”). The initial penal sum shall equal 100 percent of the Total Bid
NOW, THEREFORE, this Performance and Payment Bond shall be satisfied and released only upon the
condition that Principal:
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; and
• 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.
The surety shall indemnify, defend, and protect the Owner against any claim of direct or indirect loss
resulting from the failure:
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.
City of Port Orchard and Puget Paving & Construction
Public Works Project No. 2017-031
Small Works Contract No. C055-I7
U \ENGlNEERlNG'STREET\Pavmg\20l7\Cily Paving^Pugcl Paving & Construction\Contract_2017-20l8 Paving doc
Page 13 of21
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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
3rd day of October 20 17 •
Puget Paving & Construction, Inc.The Ohio Casualty Insurance Company
Principal Surety
C\■c
Signature^of^irthOuzed Official
CSft6>ehr/il&
Printed Name and Title
Signature of Authorized Official
By Heather L. Allen
Attorney in Fact (Attach Power of Attorney)
Name and address of local office of
Agent and/or Surety Company:Propel Insurance
1201 Pacific Ave, Suite 1000
Tacoma, WA 98402
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 Puget Paving & Construction
Public Works Project No. 2017-031
Small Works Contract No. C055-I7
U:\ENQNEERING\STREET\Pavini;\20l7\City Paving\Pui»ct Paving & Constmction\Contract_20l7-20l8 Paving doc
Page 14 of21
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ACKNOWLEDGEMENT
Corporation, Partnership, or Individual
STATE OF
)ss.
- day /) ■> before me, the undersigned, a Notary Public in and for the
State of Washington, duly commissioned and sworn, personally appeared ^f-S’Adhl (atThs*kl£L
to me known to be the (check one of the following boxes):
B- (M-OUdA
corporation,
COUNTY OF
On this
iuy4 fa'mUof C * the
□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
H] she was authorized to execute said instrument.
WITNESS my hand and official seal hereto affixed the day and year first above written.
Dated:
/ \
: i NOTARy \ s
: s
'ORm-
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 Puget Paving & Construction
Public Works Project No. 2017-031
Small Works Contract No. C055-I7
U AENGINEERlNG'STREEr\Poving\20l7\City Paving\Pugel Paving & Construction\Contracl_2017-20l8 Paving doc
Page 15 of 21
Rev 6/30/17
SURETY ACKNOWLEDGEMENT
WashingtonSTATE OF
)ss.
PierceCOUNTY OF
On this 3rd _________ , 2017 before me, the undersigned, a Notary Public in and
for the State of Washington, duly commissioned and sworn, personally appeared Heather L. Allen.
_______________ of The Ohio Casualty Insurance Company , 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 O he 0 she was authorized to execute said instrument.
day 0f October
to me known to be the Attornev-in-Fact
WITNESS my hand and official seal hereto affixed the day and year first above written.
Dated' October 3, 2017______f______
15/ HOTARy\g“=
Christopher M. Kinyon
Print or type name
NOTARY PUBLIC,
in and for the State of Washington
‘‘lint 11*1
Residing at: Puyallup, WA
My Commission expires: 5/17/2018
Notary Seal with Ink Stamp
City of Port Orchard and Puget Paving <£ Construction
Public Works Project No. 2017-031
Small Works Contract No. CO5 5-17
^'ENGINEERING'S ! RRE1 \PavingV2017\City Paving\Pugct Paving & ConslmclioniContract 2017-2018 Paving doc
Page 16 of 21
Rev 6/30/17
THIS POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PRINTED ON RED BACKGROUND,
This Power of Attorney limits the acts of those named herein, and they have no authority to bind the Company except in the manner and to the extent herein stated.
Certificate No. 7806606
Liberty Mutual Insurance Company
The Ohio Casualty Insurance Company West American Insurance Company
POWER OF ATTORNEY
KNOWN ALL PERSONS BY THESE PRESENTS: That The Ohio Casualty Insurance Company is a corporation duly organized under the laws of the State of New Hampshire, that
Liberty Mutual Insurance Company is a corporation duly organized under the laws of the State of Massachusetts, and West American Insurance Company is a corporation duly
organized under the laws of the State of Indiana (herein collectively called the “Companies"), pursuant to and by authority herein set forth, does hereby name, constitute and appoint,
Aliceon A. Keltner; Annelies M. Richie; Brandon K. Bush; Brent E. Heilesen; Carley Espiritu; Christopher Kinyon; Cynthia L. Jay; Diane M. Harding; Eric
A. Zimmerman; Heather L. Allen; James B. Binder; Jamie Marques; Jon J. Oja; Julie R. Truitt; Karen C. Swanson; Kyle J. Howat; Mary S. Norrell; Peter
J. Comfort
state of WA each individually if there be more than one named, its true and lawful attorney-in-fact to make, execute, seal, acknowledgeall of the city of Tacoma
and deliver, for and on its behalf as surety and as its act and deed, any and all undertakings, bonds, recognizances and other surety obligations, in pursuance of these presents and shall
be as binding upon the Companies as if they have been duly signed by the president and attested by the secretary of the Companies in their own proper persons.
IN WITNESS WHEREOF, this Power of Attorney has been subscribed by art authorized officer or official of the Companies and the corporate seals of the Companies have been affixed
thereto this 16th day of June >201Z.
■u
The Ohio Casualty Insurance Company
Liberty Mutual Insurance Company
West American Insurance Company
>I CPol li 199119191912 .EpSI 1 #-r 3(A ■^VQlATlj>
I >CD •k Ot-U'7By:a>> iDavid M. Carey,Assistant Secretary £i;
STATE OF PENNSYLVANIA
COUNTY OF MONTGOMERY
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= oSt-2017 . before me personally appeared David M, Carey, who acknowledged himself to be the Assistant Secretary of Liberty Mutual Insurance
Company, The Ohio Casualty Company, and West American Insurance Company, and that he, as such, being authorized so to do, execute the foregoing instrument for the purposes
therein contained by signing on behalf of the corporations by himself as a duly authorized officer.
On this 16th day of June
STm
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o aIN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my notarial seal at King of Prussia, Pennsylvania, on the day and year first above written.
COMMONWEALTH OF PENNSYLVANIA
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Notarial Seal
Teresa Pastella, Notary Public
Upper MeriortTwp,, Montgomery County
My Commission Expires March 28,2021
By:
3 2 OF Teresa Pastella, Notary Public
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Member, Pennsylvania Asseeiatiars of Notaries
This Power of Attorney is made and executed pursuant to and by authority of the following By-laws and Authorizations of The Ohio Casualty Insurance Company, Liberty Mutual
Insurance Company, and West American Insurance Company which resolutions are now in full force and effect reading as follows:
ARTICLE IV - OFFICERS - Section 12, Power of Attorney. Any officer or other official of the Corporation authorized for that purpose in writing by the Chairman or the President, and subject
to such limitation as the Chairman or the President may prescribe, shall appoint such attorneys-in-fact, as may be necessary to act in behalf of the Corporation to make, execute, seal,
acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. Such attorneys-in-fact, subject to the limitations set forth in their respective
powers of attorney, shall have full power to bind the Corporation by their signature and execution of any such instruments and to attach thereto the seal of the Corporation, When so
executed, such instruments shall be as binding as if signed by the President and attested to by the Secretary. Any power or authority granted to any representative or attorney-in-fact under
the provisions of this article may be revoked at any time by the Board, the Chairman, the President or by the officer or officers granting such power or authority.
ARTICLE XIII - Execution of Contracts - SECTION 5. Surety Bonds and Undertakings. Any officer of the Company authorized for that purpose in writing by the chairman or the president,
and subject to such limitations as the chairman or the president may prescribe, shall appoint such attorneys-in-fact, as may be necessary to act in behalf of the Company to make, execute,
seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. Such attorneys-in-fact subject to the limitations set forth in their
respective powers of attorney, shall have full power to bind the Company by their signature and execution of any such instruments and to attach thereto the sea! of the Company. When so
executed such instruments shall be as binding as if signed by the president and attested by the secretary.
Certificate of Designation - The President of the Company, acting pursuant to the Bylaws of the Company, authorizes David M. Carey, Assistant Secretary to appoint such attorneys-in-
fact as may be necessary to act on behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety
obligations.
Authorization - By unanimous consent of the Company's Board of Directors, the Company consents that facsimile or mechanicaiiy reproduced signature of any assistant secretary of the
Company, wherever appearing upon a certified copy of any power of attorney issued by the Company in connection with surety bonds, shall be valid and binding upon the Company with
the same force and effect as though manually affixed.
I, Renee C. Llewellyn, the undersigned, Assistant Secretary, The Ohio Casualty Insurance Company, Liberty Mutual Insurance Company, and West American Insurance Company do
hereby certify that the original power of attorney of which the foregoing is a full, true and correct copy of the Power of Attorney executed by said Companies, is in full force and effect and
has not been revoked.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed the seals of said Companies this
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LMS_12873_022017