HomeMy WebLinkAbout1997-077ORDINANCE NO 99' O??
AN ORDINANCE• ACCEP PING COMPETITIVE BIDS AND PROVIDING FOR THE AWARD
OF CONTRACTS FOR PUBLIC WORKS OR IMPROVEMENTS, PROVIDING FOR THE
EXPENDITURE OF FUNDS FHEREFOR, AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS the City has solicited, received and tabulated competitive bids for the
construction of public woiks of improvements in accordance with the procedures of STATE law
and City ordinances and
WHEREAS, the City Manager or a designated employee has received and recommended that
the herein described bids are the lowest responsible bids for the construction of the public works or
improvements described in the bid invitation, bid proposals and plans and specifications therein,
NOW, THEREFORE,
THE COUNCIL OF fHL CITY OF DENTON HEREBY ORDAINS
SEC NON I Ihat the following competitive bids for the construction of public works or
improvements, as described in the "Bid Invitations", "Bid Proposals" or plans and specifications on
file in the Office of the City's Put chasing Agent filed according to the bid number assigned hereto,
are hereby accepted and approved as being the lowest responsible bids
BID
NUMBER CONTRACTOR AMOUNT
2021 H AND J CONSTRUCTION $ 65,000 00
SECTION II That the acceptance and approval of the above competitive bids shall not
constitute a contract between the City and the person submitting the bid for construction of such
public works of impiovements herein accepted and approved, until such person shall comply with
all requirements specified in the Notice to Bidders including the timely execution of a written
contract and tuintshing of pcitoimance and payment bonds, and insurance certificate after
notification of the award of the bid
SECTION III That the City Manager is hereby authorized to execute all necessary written
contracts tot the pet lot mance of the construction of the public works or improvements in accordance
with the bids accepted and appioved herein, provided that such contracts are made in accordance
with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms,
conditions, plans and specifications, standaids, quantities and specified sums contained therein
SECTION IV That upon acceptance and approval of the above competitive bids and the
execution of cone acts ioi the public works and improvements as authorized herein, the City Council
hereby authorizes the expenditure of funds in the manner and in the amount as specified in such
approved bids and authorized contracts executed pursuant thereto
SECTION V That this oidmance shall become effective immediately upon its passage and
approval
PASSED AND APPROVED this the /G ' day of %7t.0"-'-- 1997
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
BYA" 2 XJ
E
JA MILLER, MAYOR
DATE MARCH 18, 1997
TO Mayor and Members of the City Council
FROM Kathy DuBose, Executive Director of Finance
SUBJECT BID #2021- EVERS PARK RESTROOM/CONCESSION BUILDING
RECOMMENDATION: We recommend this bid be awarded to the lowest responsible bidder,
H & J Construction, in the amount of $65,000 00 with completion in 100 calendar days
SUMMARY, This bid is for the construction of a restroom and concession building located in
Evers Park at 3300 Evers Parkway It is an approximate 864 sq ft masonry and concrete block
building with composition roofing Included in the design are men's and women's restrooms,
concession stand and storage facilities, parks department storage, as well as storage for athletic
equipment
PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED. Parks Department, Evers Park
Athletic Activities, and Parks Maintenance Division
FISCAL IMPACT. This is a CDBG funded project The budget for this construction was $70,000
set aside in account number 219-05A-CDA9-8502
Attachments Tabulation Sheet
Respectfully submitted
Kath ,PuB se
Executive Director of Finance
Approved
Name Tom D Shaw, C P M
Title Purchasing Agent
852 DOC
BID a - - - - 2021
—
-
--
BID NAME EVERS PARK RESTROOMI
H & J
DBR
CONCESSION BUILDING
CONSTRUCTION
CONSTRUCTION
OPEN DATE MARCH 11, 1997
# 'QUANTITY DESCRIPTION
VENDOR-_
VENDOR --
_-VENDOR _1
1 1- BASE BID ($)- _ - _ __ - _ _
I
_ $66,000 00
$93,989 00 -
_ ---
DAYS TO PERFORM WORK UPON
100 DAYS
110 DAYS
NOTICE TO PROCEED
BOND
YES
YES
I
4
CONTRACT AGREEMENT
STATE OF TEXAS
COUNTY OF DENTON S
THIS AGREEMENT, made and entered into this 18 day of
MARCH A.D., 19 97 , by and between
CITY OF DENTON
of the County of DENTON and State of Texas, acting
through TED BENAVIDES
thereunto duly authorized so to do, hereinafter termed "OWNER," and
H & J CONSTRUCTION
151 SOLITH MAIN STREET
XELLER. TEXAS 76248
of the City of XELLER , County of TARRANT
and State of TEXAS , hereinafter
termed "CONTRACTOR."
WITNESSETH: That for and in consideration of the payments and
agreements hereinafter mentioned, to be made and performed by
OWNER, and under the conditions expressed in the bonds attached
hereto, CONTRACTOR hereby agrees with OWNER to commence and
complete performance of the work specified below:
BID #_2021 - EVERS PARR RESTROOM/CONCESSION BLDG.
in the amount of $65,000.00 and all extra work in
connection therewith, under the terms as stated in the General
Conditions of the agreement; and at his (or their) own proper cost
and expense to furnish all materials, supplies, machinery,
equipment, tools, superintendence, labor, insurance, and other
accessories and services necessary to complete the work specified
above, in accordance with the conditions and prices stated in the
Proposal attached hereto, and in accordance with all the General
Conditions of the Agreement, the Special Conditions, the Notice to
Bidders (Advertisement for Bids), Instructions to Bidders, and the
Performance and Payment Bonds, all attached hereto, and in
accordance with the plans, which includes all maps, plats,
CA - 1
blueprints, and other drawings and printed or written explanatory
matter thereof, and the Specifications therefore, as prepared by
DENTON PARRS AND RECREATION DEPARTMENT
all of which are made a part hereof and collectively evidence and
constitute the entire contract.
It is mutually understood and agreed by and between City and
Contractor that Contractor is an independent contractor and shall
not be deemed to be or considered an employee of the City of
Denton, Texas, for the purposes of income tax, withholding, social
security taxes, vacation or sick leave benefits, worker's
compensation, or any other City employee benefit. City shall not
have supervision and control of Contractor or any employee of
Contractor, and it is expressly understood that Contractor shall
perform the services hereunder according to the attached
specifications at the general direction of the City Manager of the
City of Denton, Texas, or his designee under this agreement.
Contractor shall and does hereby agree to indemnify and hold
harmless the City of Denton from any and all damages, loss, or
liability of any kind whatsoever, by reason of injury to property
or third persons occasioned by any error, omission or negligent act
of Contractor, its officers, agents, employees, invitees, and other
persons for whom it is legally liable, with regard to the
performance of this Agreement, and Contractor will, at its cost and
expense, defend and protect the City of Denton against any and all
such claims and demands.
This agreement shall be governed by the law of the State of
Texas and venue for its construction and enforcement shall lie in
the courts of Denton County, Texas.
The CONTRACTOR hereby agrees to commence work on or after the
date established for the start of work as set forth in written
notice to commence work and complete all work within the time
stated in the Proposal, subject to such extensions of time as are
provided by the General and Special Conditions.
The OWNER agrees to pay the CONTRACTOR in current funds the
price or prices shown in the Proposal, which forms a part of this
contract, such payments to be subject to the General and Special
Conditions of the Contract.
CA - 2
IN WITNESS WHEREOF, the parties of these presents have
executed this agreement in the year and day first above written.
ATTEST:
Rashaan Tinker
APPROVED AS TO FORM:
zgi4 / CM;Z�S�
City Attorney
AAA0184D
Rev 04/05/96
CA - 3
CITY OF DENTON
OWNER
By117
(SEAL)
A & J CONSTRUCTION
CONTRACTOR
_151 South main Street
Keller, Texas 76248
MAILING ADDRESS
817-379-5549
PHONE NUMBER
:7iMMUDIM061 11
FAX N BER
BY ! President
2
Henry J Tinker
PRINTED NAME
(SEAL)
PERFORMANCE BOND
STATE OF TEXAS S
COUNTY OF DENTON S
KNOW ALL MEN BY THESE PRESENTS. That a s J CONSTROCTION
, of the City of JaMZZR
County of TARRILUT , and State of TEXAS
as PRINCIPAL, and c„if Tncuranra Cnmpany
as SURETY, authorized under the laws of
the State of Texas to act as surety on bonds for principals, are
held and firmly bound unto the THE CITY OF DEWMN
as OWNER, in the penal sum of simm Frvz TaousAND AND no/too----
Dollars ($ 65,000-00 ) for the
payment whereof, the said Principal and Surety bind themselves, and
their heirs, administrators, executors, successors and assigns,
Jointly and severally, by these presents:
WHEREAS, the Principal has entered into a certain written
contract with the OWNER, dated the 18 day of MARCH
19 97, for the construction of BID $ 2021 — EVERS PARR RESTROOM /
CONCESSION BLDG
which contract is hereby referred to and made a part hereof as
fully and to the same extent as if copied at length herein.
NOW, THEREFORE, the condition of this obligation is such, that
if the said principal shall faithfully perform said Contract and
shall in all respects, conditions and agreements in and by said
contract agreed and covenanted by the Principal to be observed and
performed, and according to the true intent and meaning of said
Contract and the Plans and Specifications hereto annexed, then this
obligation shall be void; otherwise to remain in full force and
effect;
PROVIDED, HOWEVER, that this bond is executed pursuant to the
provisions of the Texas Government Code, Chapter 2253 (Vernon, as
currently amended), and all liabilities on this bond shall be
determined in accordance with said provisions to the same extent as
if they were copied at length herein.
PH - 1
SO 12 N0110MISN00 I H 4E59 6LE L19 YNI BS 90 Lb F01b7
PROVIDED FURTHER, that if any legal action be filled upon this
bond, venue shall lie in Denton County, State of Texas.
Surety, for value received, stipulates and agrees that no
change, extension of time, alteration or addition to the terms of
the contract, or to the work performed thereunder, or the plans,
specifications, or drawings accompanying the same, shall in any way
affect its obligation on this bond, and it does hereby waive notice
of any such change, extension of time, alteration or addition to
the terms of the contract, or to the work to be performed
thereunder.
IN WITNESS WHEREOF, the said Principal and Surety have signed
and sealed this instrument this 14th day of April
19 97 ,
H & J Construction
Principal
By Henry J. TInker
Title president
Address: 151 South Main Street
Keller, Texas 76248
(SEAL)
Gulf Insurance Company
Surety —
Title Attorney -in -Fact
Address: F55D W Touhy Aye Su4te 400
Sy kia III Gnn;;
(SEAL)
The name and address of the Resident Agent of Surety is:
Boley-Featherston Ins Co
701 Lamar Wichita Falls, Tx. 76301
NOTE: Date of Bond must not be prior to date of Contract.
AAA0184D
Rev 04/05/96
PB — 2
90Z N011311HISN00 I H bCSS bLF LIR Xyd RS RO Lb 4OIV7
PAYMENT BOND
STATE OF TEXAS g
COUNTY OF DENTON S
KNOW ALL MEN BY THESE PRESENTS: That H s J CONSTRUCTION
of the City of mnj n±_
County of TAIM"M , and the State of TEXAS
as principal, and Gulf Insurance Company
authorized under the laws of the State of Texas to act as surety on
bonds for principals, are held and firmly bound unto
THE CITY OF DENTON , OWNER, In the penal sum of
SIXTY FIVE THOUSAND and no/IOU---------------- Dollars ($ 65,000.00 )
for the payment whereof, the said Principal and Surety bind
themselves and their heirs, administrators, executors, successors
and assigns, jointly and severally, by these presents
WHEREAS, the Principal has entered into a certain written
contract with the Owner, dated the 1e day of MARCH
1997
BID A 2�021 - EVERS PARR RESTROOM / CONCESSION BLDG
to which contract is hereby referred to and made a part hereof as
fully and to the same extent as if copied at length herein.
NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH,
that if the said Principal shall pay all claimants supplying labor
and material to him or a subcontractor in the prosecution of the
work provided for in said contract, then this obligation shall be
void, otherwise to remain in full force and effect;
PROVIDED, HOWEVER, that this bond is executed pursuant to
the provisions of the Texas Government Code, Chapter 2253 (Vernon,
as currently amended), and all liabilities on this bond shall be
determined in accordance with said provisions to the same extent as
if they were copied at length herein.
PB - 3
LOIn N0I1011HISN00 I H VVSS bLE LIR XNd RS RO Lb L0/V7
Surety, for value received, stipulates and agrees that no
change, extension of time, alteration or addition to the terms of
the contract, or to the work performed thereunder, or the plans,
specifications, or drawings accompanying the same, shall in any way
affect its obligation on this bond, and it does hereby waive notice
of any such change, extension of time, alteration or addition to
the terms of the contract, or to the work to be perfbrmed
thereunder.
IN WITNESS WHEREOF, the said Principal and Surety have
signed and sealed this instrument this 14th day of April
19 97
H & J Construction
Principal
By Henry J. Tinker
Title President
Address: 151 South Main Street
Keller, Texas 76248
(SEAL)
Gulf Insurance Company
LSurety
L�==— f-�
Title Attorney -in -Fact
Address:
i659 W Teuhy 5"; %Q ann
Skokie, I11 60077
(SEAL)
The name and address of the Resident Agent of Surety is:
Boley-Featherston Ins Co
701 Lamar Wichita Falls, Tx 76301
AAA01840
Rev 04/05/96
PS - 4
90 QJ NOI1311HISN00 I H bRUS bLC LTR rV.1 99 90 Lb C0/67
GULF
, „ nusavvv n,
F ATTO NEY
ATTORNEY ARE PRINTED ON BLUE
K DUPLICATES SHALL HAVE THE
Y ORIGINAL ONLY WHEN ISSUED IN
KNOWN ALL MEN BY THESE PRESENTS That the Gulf Insurance Com
pany, a corporation duly organized under the laws of the State of Missouri having
its principal office in the city of Irvin Texas pursuant to the following resolution
adopted by the Finance & Executive Comimttee of the Board of Directors of the said
Company on the loth day of August 1993, to wit
RESOLVED that the President Executive Vice President or any Senior Vice
President of the Company shall have authority to make execute and deliver a Power
of Attorney constituting as Attorney in Fact such persons, firms or corporations as
may be selected from time to time and any such Attorney m fact may be removed
and the authority granted him revoked by the President or any Executive Vice
President or any Senior Vice President or by the Board of Directors or by the
Finance and Executive Committee of the Board of Directors
RESOLVED that nothing in this Power of Attorney sham be construed as a grant
of authority to the attorney(s) in fact to sign execute acknowledge deliver or other
wise issue a policy or policies of insurance on behalf of Gulf Insurance Company
RESOLVED that the signature of the President Executive Vice President or
any Senior Vice President and the Seal of the Company may be affixed to any suWh
Power of Attorney or any certificate relating thereto by facsimile and any such
powers so executed and certified by facsimile signature and facsimile seal shall be
valid and binding upon the Company in the future with respect to any bond and
documents relating to such bonds to which they are attached
Gulf Insurance Company does hereby make constitute and appoint
Laura Espinoza
AE 5919673
PRINCIPAL
H & J Construction
151 South Main
Keller, TX 76248
4-14-97
D AMOUNT
its tine and lawful atiorney(s) in fact with full power and authority hereby conferred in its name place and stead to sign execute acknowledge and deliver in its
behalf as surety any and all bonds and undertakings of suretyship, and to bind Gulf Insurance Company thereby as fully and to the same extent as if any bonds
undertakings and documents relating to such bonds and/or undertakings were signed by the duly authorized officer of the Gulf Insurance Company and all the acts of
said attorney(s) in fact pursuant to the authority herein given are hereby ratified and confirmed
The obligation of the Company shall not exceed one million ($1,000 000 00) dollars
IN WITNESS WHEREOF, the Gulf Insurance Company has caused these presents to be signed by any officer of the Company and its Corporate Seal to
be hereto affixed _
S,3RANCf
a��Ppoggr0 0,�4 GULF INSURANCE COMPANY
SEAL
80\3
STATE OF NEW YORK ) Christopher E Watson
SS President
COUNTY OF KINGS )
On this 1st day of June, 1996 A D, before me came Christopher E Watson, known to me personally who being by me duly sworn, did depose and say
that he resides in the County of Westchester, State of New York, that he is the President of the Gulf Insurance Company, the corporation described in and
which executed the above Instrument, that he knows the seal of said corporation, that the seal affixed to the said Instruments is such corporate seal that
It was so affixed by order of the Board of Directors of said corporation and that he signed his name, thereto by like order
Q\Pp K agNp a 1� yp^_/
" NOTggy in l �
m� 'OUBUO r SPIRO K `BANT'IS \
9r �oQ Notary Public, State of New York
STATE OF NEW YORK ) FOF NE`N No 24 4861345
SS Qualified in Kings
COUNTY OF NEW YORK ) Commission Expires May 12, 1995
I, the undersigned, Executive Vice President of the Gulf Insurance Company, a Missouri Corporation, DO HEREBY CERTIFY that the foregoing and
attached POWER OFATTORNEY remains In full force
(SAL
6pRANC$ C
Signed and Sealed at the City of New York S
Dated the 14th dayof April
,19 97
Lawrence P Miniter
Executive Vice President
CITY OF DENTON
INSURANCE REQUIREMENTS FOR CONTRACTORS
Bidder's attention Is directed to the Insurance requirements below It Is highly
recommended that bidders confer with their respective insurance carriers or brokers
to determine in advance of Bid submission the availability of insurance certificates and
endorsements as prescribed and provided herein If an apparent low bidder falls to
comply strictly with the Insurance requirements, that bidder may be disqualified from
award of the contract. Upon bid award, all Insurance requirements shall become
contractual obligations which the successful bidder shall have a duty to maintain
throughout the course of this contract
STANDARD PROVISIONS:
Without limiting any of the other obligations or liabilities of the Contractor, the
Contractor shall provide and maintain until the contracted work has been completed
and accepted by the City of Denton, Owner, the minimum Insurance coverage as
Indicated hereinafter
As soon as practicable after notification of bid award, Contractor shall file with the
Purchasing Department satisfactory certificates of Insurance, containing the bid
number and title of the project Contractor may, upon written request to the
Purchasing Department, ask for clarification of any Insurance requirements at any
time, however, Contractors are strongly advised to make such requests prior to bid
opening, since the Insurance requirements may not be modified or waived after bid
opening unless a written exception has been submitted with the bid Contractor shall
not commence any work or deliver any material until he or she receives notification
that the contract has been accepted, approved, and signed by the City of Denton
All Insurance policies proposed or obtained In satisfaction of these requirements shall
comply with the following general specifications, and shall be maintained In
compliance with these general specifications throughout the duration of the Contract,
or longer, if so noted
• Each policy shall be Issued by a company authorized to do business in the
State of Texas with an A M Best Company rating of at least a
• Any deductibles or self -Insured retentions shall be declared in the bid
proposal If requested by the City, the insurer shall reduce or eliminate
such deductibles or self -Insured retentions with respect to the City, Its
AAA00350
REVISED 10/12/94 Cl - 1
Insurance Requirements
Page 2
officials, agents, employees and volunteers; or, the contractor shall procure
a bond guaranteeing payment of losses and related Investigations, claim
administration and defense expenses
• Liability policies shall be endorsed to provide the following
•• Name as additional insured the City of Denton, its Officials, Agents,
Employees and volunteers.
• • That such insurance is primary to any other insurance available to the
additional insured with respect to claims covered under the policy and
that this insurance applies separately to each insured against whom
claim is made or suit is brought The inclusion of more than one
insured shall not operate to increase the insurer's limit of liability
• All policies shall be endorsed to provide thirty(3O) days prior written notice
of cancellation, non -renewal or reduction in coverage
• Should any of the required insurance be provided under a claims -made
form, Contractor shall maintain such coverage continuously throughout the
term of this contract and, without lapse, for a period of three years beyond
the contract expiration, such that occurrences arising during the contract
term which give rise to claims made after expiration of the contract shall
be covered.
• Should any of the required insurance be provided under a form of coverage
that includes a general annual aggregate limit providing for claims
investigation or legal defense costs to be included in the general annual
aggregate limit, the contractor shall either double the occurrence limits or
obtain Owners and Contractors Protective Liability Insurance
• Should any required insurance lapse during the contract term, requests for
payments originating after such lapse shall not be processed until the City
receives satisfactory evidence of reinstated coverage as required by this
contract, effective as of the lapse date If insurance is not reinstated, City
may, at its sole option, terminate this agreement effective on the date of
the lapse
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REVISED 10/12/94 Cl - 2
Insurance Requirements
Page 3
SPECIFIC ADDITIONAL INSURANCE REQUIREMENTS:
All Insurance policies proposed or obtained In satisfaction of this Contract shall
additionally comply with the following marked specifications, and shall be maintained
In compliance with these additional specifications throughout the duration of the
Contract, or longer, if so noted:
[x] A. General Liability Insurance:
General Liability Insurance with combined single limits of not less than
soo,000 shall be provided and maintained by the contractor The policy
shall be written on an occurrence basis either In a single policy or In a
combination of underlying and umbrella or excess policies
If the Commercial General Liability form (ISO Form CG 0001 current
edition) Is used
• Coverage A shall Include premises, operations, products, and
completed operations, Independent contractors, contractual liability
covering this contract and broad form property damage coverage
• Coverage B shall Include personal Injury
• Coverage C, medical payments, Is not required
If the Comprehensive General Liability form (ISO Form GL 0002 Current
Edition and ISO Form GL 0404) Is used, It shall Include at least
• Bodily Injury and Property Damage Liability for premises,
operations, products and completed operations, Independent
contractors and property damage resulting from explosion, collapse
or underground (XCU) exposures
• Broad form contractual liability (preferably by endorsement)
covering this contract, personal Injury liability and broad form
property damage liability
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REVISED 10/12/94 CI - 3
Insurance Requirements
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[4 Automobile Liability Insurance:
Contractor shall provide Commercial Automobile Liability insurance with
Combined Single Limits (CSL) of not less than $500,000 either in a single
policy or in a combination of basic and umbrella or excess policies The policy
will include bodily injury and property damage liability arising out of the
operation, maintenance and use of all automobiles and mobile equipment used
in conjunction with this contract
Satisfaction of the above requirement shall be in the form of a policy
endorsement for
• any auto, or
• all owned, hired and non -owned autos
[id Workers Compensation Insurance
Contractor shall purchase and maintain Worker's Compensation insurance
which, in addition to meeting the minimum statutory requirements for issuance
of such insurance, has Employer's Liability limits of at least $100,000 for each
accident, $100,000 per each employee, and a $500,000 policy limit for
occupational disease, The City need not be named as an "Additional Insured"
but the insurer shall agree to waive all rights of subrogation against the City,
its officials, agents, employees and volunteers for any work performed for the
City by the Named Insured For building or construction projects, the
Contractor shall comply with the provisions of Attachment 1 in accordance
with §406.096 of the Texas Labor Code and rule 28TAC 110 110 of the Texas
Worker's Compensation Commission (TWCC)
[ I Owner's and Contractor's Protective Liability Insurance
The Contractor shall obtain, pay for and maintain at all times during the
prosecution of the work under this contract, an Owner's and Contractor's
Protective Liability insurance policy naming the City as insured for property
damage and bodily injury which may arise in the prosecution of the work or
contractor's operations under this contract Coverage shall be on an
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REVISED 10/12/94 Cl - 4
Insurance Requirements
Page 5
"occurrence" basis, and the policy shall be issued by the same insurance
company that carries the contractor's liability insurance Policy limits will be
at least combined bodily Injury and property damage per
occurrence with a aggregate
[ I Fire Damage Legal Liability Insurance
Coverage is required if Broad form General Liability is not provided or is
unavailable to the contractor or if a contractor leases or rents a portion of a
City building Limits of not less than each occurrence are required
[ I Professional Liability Insurance
Professional liability insurance with limits not less than per claim
with respect to negligent acts, errors or omissions in connection with
professional services is required under this Agreement
[ I Builders' Risk Insurance
Builders' Risk Insurance, on an All -Risk form for 100% of the completed value
shall be provided Such policy shall include as "Named Insured" the City of
Denton and all subcontractors as their interests may appear
[ I Additional Insurance
Other insurance may be required on an individual basis for extra hazardous
contracts and specific service agreements If such additional insurance is
required for a specific contract, that requirement will be described in the
"Specific Conditions" of the contract specifications
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Insurance Requirements
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ATTACHMENT 1
[xl Worker's Compensation Coverage for Budding or Construction Projects for
Governmental Entities
A. Definitions*
Certificate of coverage ("certificate") -A copy of a certificate of Insurance,
a certificate of authority to self -insure Issued by the commission, or a
coverage agreement (TWCC-81, TWCC-82, 7WCC-83, or TWCC-84),
showing statutory workers' compensation insurance coverage for the
person's or entity's employees providing services on a project, for the
duration of the project
Duration of the project - includes the time from the beginning of the work
on the project until the contractor's/person's work on the project has been
completed and accepted by the governmental entity
Persons providing services on the project ("subcontractor" in §406.096) -
includes all persons or entities performing all or part of the services the
contractor has undertaken to perform on the project, regardless of whether
that person contracted directly with the contractor and regardless of
whether that person has employees. This includes, without limitation,
independent contractors, subcontractors, leasing companies, motor
carriers, owner -operators, employees of any such entity, or employees of
any entity which furnishes persons to provide services on the project
"Services" include, without limitation, providing, hauling, or delivering
equipment or materials, or providing labor, transportation, or other service
related to a project. "Services" does not include activities unrelated to the
project, such as food/beverage vendors, office supply deliveries, and
delivery of portable toilets.
B The contractor shall provide coverage, based on proper reporting of
classification codes and payroll amounts and filing of any overage
agreements, which meets the statutory requirements of Texas Labor Code,
Section 401 011(44) for all employees of the contractor providing services
on the project, for the duration of the project
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C The Contractor must provide a certificate of coverage to the governmental
entity prior to being awarded the contract
D. If the coverage period shown on the contractor's current certificate of
coverage ends during the duration of the project, the contractor must, prior
to the end of the coverage period, file a new certificate of coverage with
the governmental entity showing that coverage has been extended
E The contractor shall obtain from each person providing services on a
project, and provide to the governmental entity
(1) a certificate of coverage, prior to that person beginning work on the
project, so the governmental entity will have on file certificates of
coverage showing coverage for all persons providing services on the
project, and
(2) no later than seven days after receipt by the contractor, a new
certificate of coverage showing extension of coverage, If the coverage
period shown on the current certificate of coverage ends during the
duration of the project
F The contractor shall retain all required certificates of coverage for the
duration of the project and for one year thereafter
G The contractor shall notify the governmental entity In writing by certified
mall or personal delivery, within 10 days after the contractor knew or
should have known, of any change that materially affects the provision of
coverage of any person providing services on the project
H The contractor shall post on each project site a notice, In the text, form and
manner prescribed by the Texas Workers' Compensation Commission,
informing all persons providing services on the project that they are
required to be covered, and stating how a person may verify coverage and
report lack of coverage
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The contractor shall contractually require each person with whom it
contracts to provide services on a project, to.
(1) provide coverage, based on proper reporting of classification codes
and payroll amounts and filing of any coverage agreements, which
meets the statutory requirements of Texas Labor Code, Section
401 011(44) for all of its employees providing services on the project,
for the duration of the project,
(2) provide to the contractor, prior to that person beginning work on the
project, a certificate of coverage showing that coverage is being
provided for all employees of the person providing services on the
project, for the duration of the project,
(3) provide the contractor, prior to the end of the coverage period, anew
certificate of coverage showing extension of coverage, if the coverage
period shown on the current certificate of coverage ends during the
duration of the project;
14► obtain from each other person with whom it contracts, and provide to
the contractor
(a) a certificate of coverage, prior to the other person beginning
work on the project, and
(b) a new certificate of coverage showing extension of coverage,
prior to the end of the coverage period, if the coverage period
shown on the current certificate of coverage ends during the
duration of the project,
(5) retain all required certificates of coverage on file for the duration of
the project and for one year thereafter,
(6) notify the governmental entity in writing by certified mail or personal
delivery, within 10 days after the person knew or should have known,
of any change that materially affects the provision of coverage of any
person providing services on the project, and
AAAW350
REVISED 10/12/94 CI - 8
Insurance Requirements
Page 9
(7) contractually require each person with whom it contracts, to pierform
as required by paragraphs (1) - (7), with the certificates of coverage
to be provided to the person for whom they are providing services
J. By signing this contract or providing or causing to be provided a certificate
of coverage, the contractor is representing to the governmental entity that
all employees of the contractor who will provide services on the project will
be covered by workers' compensation coverage for the duration of the
project, that the coverage will be based on proper reporting of classification
codes and payroll amounts, and that all coverage agreements will be filed
with the appropriate Insurance carrier or, In the case of a self -Insured, with
the commission's Division of Self -Insurance Regulation Providing false or
misleading information may subject the contractor to administrative
penalties, criminal penalties, civil penalties, or other civil actions
K. The contractor's failure to comply with any of these provisions Is a breach
of contract by the contractor which entitles the governmental entity to
declare the contract void If the contractor does not remedy the breach
within ten days after receipt of notice of breach from the governmental
entity.
AAA00350
REVISED 10112/04 Cl - 9