2012-098ORDINANCE NO. 2� 12-�9g
AN ORDINANCE OF THE CITY OF DENTON, TEXAS ACCEPTING COMPETITIVE BIDS
AND AWARDING A BEST VALUE CONTRACT FOR STREET MILLING SERVICES FOR
THE CITY OF DENTON STREET DEPARTMENT; AUTHORIZING THE EXPENDITURE OF
FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 4936-BEST VALUE
BID FOR STREET MILLING SERVICES AWARDED TO DUSTROL, INC. 1N THE ANNUAL
ESTIMATED AMOUNT OF $300,000).
WHEREAS, the City has solicited, received, and tabulated competitive best value bids, for
the purchase of necessary materials, equipment, supplies or services in accordance with the
procedures of State law and City ordinances based on the best value as determined by using the
selection criteria set forth in the request for bids; and
WHEREAS, the City's selection committee has reviewed and recommended that the herein
described bids are the best value based on the selection criteria for the materials, equipment,
supplies or services as shown in the "Bid Proposals" submitted; and
WHEREAS, the City's Purchasing Agent has determined that the best value bid process
provides the best value to the City for this procurement; and
WHEREAS, the City Council has provided in the City Budget for the appropriation of funds
to be used for the purchase of the materials, equipment, supplies or services approved and accepted
herein; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and conclusions set forth in the preamble of this ordinance are
incorporated within the body of the ordinance.
SECTION 2. The options in the following numbered bids for materials, equipment,
supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing
Agent, is hereby accepted and approved as being the best value based on the selection criteria
contained in the request for bids for such items:
BID
NUMBER VENDOR AMOUNT
4936 Dustrol, Inc. Exhibit A
SECTION 3. By the acceptance and approval of the above items of the submitted bids, the
City accepts the offer of the persons submitting the bids for such items and agrees to purchase the
materials, equipment, supplies or services in accordance with the terms, specifications, standards,
quantities and for the specified sums contained in the Bid Invitations, Bid Proposals, and related
documents.
SECTION 4. The City Manager is hereby authorized to execute any and all necessary
written contracts for the performance of the services in accordance with the bids accepted and
approved herein, provided that such contracts are made in accordance with and relating to the items
specified in Section 1, which written contract(s) shall be attached hereto; provided that the written
contract is in accordance with the above Request to Submit Bids, Bid Proposals, and documents
relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and
specified sums contained therein.
SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the
authority to take any actions that may be required or permitted to be performed by the City of
Denton under Bid 4936 to the City Manager of the City of Denton, Texas, or his designee.
SECTION 6. By the acceptance and approval of the above enumerated bids, the City
Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with
the approved bids.
SECTION 7. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this�day of �% , 2012.
MARK A. BURROU , MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By:
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
I: i� �.� ��j
.,. � . —
Exhibit A
BID # 4936
DATE: 4/24/12
Best Value Bid for Annual Contract for Street Milling Services
ITEM # QTY UOM DESCRIPTION VENDOR
Dustrol, Inc.
Principle Place of Susiness: Roanoke, TX
1 732,300 SY Milling Machine - Track Type $0.19/
Caterpiller 450 or equal $139,137
Mobilization charge to include
lA 22 EA delivery, pick up, loading and $200 /
unloading as required. One time $4,400
charge per activation.
2 2 HR Pick-up Broom - Mobil TE3 or equal �50 /
$100
Mobilization charge to include $100 /
2A 2 EA delivery, pick up, loading & unloading g200
as required.
Trucking services per hour per truck $45 /
3 3,465 HR for disposal at City of Denton supplied $155,925
site.
Total Estimated Amount $299,762.00
Shipment can be made in days from receipt of order. 1
*Prices shall include a quali�ed operator or crew with each piece of equipment.
**In case of calculation error, unit price will prevail.
CONTRACT BY AND BETWEEN
CITY OF DENTON, TEXAS AND
IFB NO. 4936
THIS CONTRACT is made and entered into this 15 day of May A.D., 2012, by and
between Dustrol, Inc a corporation, whose address is PO Box 1728, Roanoke, TX 76262,
hereinafter referred to as "Contractor," and the CITY OF DENTON, TEXAS, a home rule
municipal corporation, hereinafter referred to as "City," to be effective upon approval of the
Denton City Council and subsequent execution of this Contract by the Denton City Manager or
his duly authorized designee.
For and in consideration of the covenants and agreements contained herein, and for the
mutual benefits to be obtained hereby, the parties agree as follows:
I.
SCOPE OF SERVICES
Contractor shall provide all labor, supervision, materials and equipment necessary for
IFB 4936 — Annual Contract for Street Millinq Services. These products and services shall be
provided in accordance with the Specifications for IFB 4936, a copy of which is attached hereto
and incorporated herein as Exhibit "A" (or on file in the office of the Purchasing Agent),
and the Contractor's Bid in response thereto, a copy of which is attached hereto and
incorporated herein for all purposes as Exhibit "B". The Contract consists of this written
agreement and the following items which are attached hereto and incorporated herein by
reference:
(a) Specifications for IFB 4936; (Exhibit "A" or on file in the office of the
Purchasing Agent).
(b) Contractor's Bid. (Exhibit "B");
(c) Insurance Requirements. (Exhibit "C");
These documents make up the Contract documents and what is called for by one shall
be as binding as if called for by all. In the event of an inconsistency or conflict in any of the
provisions of the Contract documents, the inconsistency or conflict shall be resolved by giving
precedence first to the written agreement then to the contract documents in the order in which
they are listed above. These documents shall be referred to collectively as "Contract
Documents."
ii.
TIME OF COMPLETION
Contractor agrees and covenants that all work hereunder shall be complete within one
(1 ) day following notice to proceed from City.
Or
III.
TERM OF CONTRACT
The initial term of this Contract shall be one year from date of contract execution unless
otherwise stated.
IV.
WARRANTY
Contractor warrants and covenants to City that all goods and services provided by
Contractor, Contractor's subcontractors, and agents under the Agreement shall be free of
defects and produced and perFormed in a skillful and workmanlike manner and shall comply
with the specifications for said goods and services as set forth in this Agreement and the Bid
Specifications attached hereto and incorporated herein as Exhibit "A"(or on file in the office
of the Purchasing Agent). Contractor warrants that the goods and services provided to City
under this Agreement shall be free from defects in material and workmanship, for a period of
three (3) year commencing on the date that City issues final written acceptance of the project.
V.
PAYMENT
Payments hereunder shall be made to Contractor following city's acceptance of the
work and within thirty (30) days of receiving Contractor's invoice for the products and services
delivered. Compensation under this contract shall be per the proposed pricing as submitted in
Exhibit B.
Contractor recognizes that this Contract shall commence upon the effective date herein
and continue in full force and effect until termination in accordance with its provisions.
Contractor and City herein recognize that the continuation of any contract after the close of any
given fiscal year of the City of Denton, which fiscal year ends on September 30th of each year,
shall be subject to Denton City Council approval. In the event that the Denton City Council
does not approve the appropriation of funds for this contract, the Contract shall terminate at
the end of the fiscal year for which funds were appropriated and the parties shall have no
further obligations hereunder.
VI.
PROTECTION AGAINST ACCIDENT TO EMPLOYEES AND THE PUBLIC
Contractor shall at all times exercise reasonable precautions for the safety of
employees and others on or near the work and shall comply with all applicable provisions of
Federal, State, and Municipal safety laws. The safety precautions actually taken and the
adequacy thereof shall be the sole responsibility of the Contractor. Contractor shall indemnify
City for any and all losses arising out of or related to a breach of this duty by Contractor
pursuant to paragraph VIII. INDEMNIFICATION and paragraph IX. COMPLIANCE WITH
APPLICABLE LAWS set forth herein.
VII.
LOSSES FROM NATURAL CAUSES
Unless otherwise specified, all loss or damage to Contractor arising out of the nature of
the work to be done, or from the action of the elements, or from any unforeseen circumstances
in the prosecution of the same, or from unusual obstructions or difficulties which may be
encountered in the prosecution of the work, shall be sustained and borne by the Contractor at
its own cost and expense.
VII1.
INDEMNIFICATION
Contractor shall release, defend, indemnify and hold the City, its elected officials,
officers and employees harmless from and against all claims, damages, injuries (including
death), property damages (including loss of use), losses, demands, suits, judgments and
costs, including attorney's fees and expenses, in any way arising out of, related to, or resulting
from the services provided by Contractor under this Agreement or caused by the negligent act
or omission or the intentional act or omission of Contractor, its officers, agents, employees,
subcontractors, licensees, invitees or any other third parties for whom Contractor is legally
responsible (hereinafter "Claims"). Contractor is expressly required to defend City against all
such Claims.
In the event the City is a named party to a suit arising out of the subject matter of this
Contract, the City shall have reasonable input into the selection of defense counsel to be
retained by Contractor in fulfilling its obligation hereunder to defend and indemnify City. City
reserves the right to provide a portion or all of its own defense; however, City is under no
obligation to do so. Any such action by City is not to be construed as a waiver of Contractor's
obligation to defend City or as a waiver of Contractor's obligation to indemnify City pursuant to
this Contract. Contractor shall retain defense counsel within seven (7) business days of City's
written notice that City is invoking its right to indemnification under this Contract. If Contractor
fails to retain counsel within such time period, City shall have the right to retain defense
counsel on its own behalf, and Contractor shall be liable for all costs incurred by City.
IX.
COMPLIANCE WITH APPLICABLE LAWS
Contractor shall at all times observe and comply with all Federal, State and local laws,
ordinances and regulations including all amendments and revisions thereto, which in any
manner affect Contractor or the work, and shall indemnify and save harmless City against
any claim related to or arising from the violation of any such laws, ordinances and
regulations whether by Contractor, its employees, officers, agents, subcontractors, or
representatives. If Contractor observes that the work is at variance therewith, Contractor
shall promptly notify City in writing.
X.
VENUE
The laws of the State of Texas shall govern the interpretation, validity, performance and
enforcement of this Contract. The parties agree that this Contract is perFormable in Denton
County, Texas, and that exclusive venue shall lie in Denton County, Texas.
XI.
ASSIGNMENT AND SUBLETTING
Contractor agrees to retain control and to give full attention to the fulfillment of this
Contract, that this Contract shall not be assigned or sublet without the prior written consent of
City, and that no part or feature of the work will be sublet to anyone objectionable to City.
Contractor further agrees that the subletting of any portion or feature of the work, or materials
required in the perFormance of this Contract, shall not relieve Contractor from its full obligations
to City as provided by this Contract.
XII.
INDEPENDENT CONTRACTOR
Contractor covenants and agrees that Contractor is an independent contractor and not an
officer, agent, servant or employee of City; that Contractor shall have exclusive control of an
exclusive right to control the details of the work performed hereunder and all persons performing
same, and shall be responsible for the acts and omissions of its officers, agents, employees,
contractors, subcontractors and consultants; that the doctrine of respondent superior shall not
apply as between City and Contractor, its of�cers, agents, employees, contractors, subcontractors
and consultants, and nothing herein shall be construed as creating a partnership or joint
enterprise between City and Contractor.
XIII.
INSURANCE AND CERTIFICATES OF INSURANCE
Contractor shall procure and maintain for the duration of the contract insurance
coverage as set forth in the Insurance Requirements marked Exhibit "C" attached hereto and
incorporated herein by reference. Contractor shall provide a signed insurance certificate
verifying that they have obtained the required insurance coverage prior to the effective date of
this Contract.
XIV.
HINDRANCES AND DELAYS
No claims shall be made by Contractor for damages resulting from hindrances or delays
from any cause during the progress of any portion of the work embraced in this Contract.
XV.
AFFIDAVIT OF NO PROHIBITED INTEREST
Contractor acknowledges and represents it is aware of all applicable laws, City Charter,
and City Code of Conduct regarding prohibited interests and that the existence of a prohibited
interest at any time will render the Contract voidable. Contractor has executed the Affidavit of
No Prohibited Interest, attached and incorporated herein as Exhibit "D".
XVI.
SEVERABILITY
The provisions of this Contract are severable. If any paragraph, section, subdivision,
sentence, clause, or phrase of this Contract is for any reason held to be contrary to the law or
contrary to any rule or regulation having the force and effect of the law, such decisions shall
not affect the remaining portions of the Contract. However, upon the occurrence of such
event, either party may terminate this Contract by giving the other party thirty (30) days written
notice.
XVII.
TERMINATION
City may, at its option, with or without cause, and without penalty or prejudice to any
other remedy it may be entitled to at law, or in equity or otherwise under this Contract,
terminate further work under this contract, in whole or in part by giving at least thirty (30) days
prior written notice thereof to Contractor with the understanding that all services being
terminated shall cease upon the date such notice is received.
XVIII.
ENTIRE AGREEIVIENT
This Contract and its attachments embody the entire agreement between the parties
and may only be modified in writing if executed by both parties.
XIX.
CONTRACT INTERPRETATION
Although this Contract is drafted by City, should any part be in dispute, the parties agree
that the Contract shall not be construed more favorably for either party.
XX.
SUCCESSORS AND ASSIGNS
This Contract shall be binding upon the parties hereto, their successors, heirs, personal
representatives and assigns.
XXI.
HEADINGS
The headings of this Contract are for the convenience of reference only and shall not
affect in any manner any of the terms and conditions hereof.
XXII.
RIGHT TO AUDIT
The OWNER shall have the right to audit and make copies of the books, records and
computations pertaining to this agreement. The CONTRACTOR shall retain such books,
records, documents and other evidence pertaining to this agreement during the contract period
and five years thereafter, except if an audit is in progress or audit findings are yet unresolved,
in which case records shall be kept until all audit tasks are completed and resolved. These
books, records, documents and other evidence shall be available, within 10 business days of
written request. Further, the CONTRACTOR shall also require all Subcontractors, material
suppliers, �and other payees to retain all books, records, documents and other evidence
pertaining to this agreement, and to allow the OWNER similar access to those documents. All
books and records will be made available within a 50 mile radius of the City of Denton. The
cost of the audit will be borne by the OWNER unless the audit reveals an overpayment of 1%
or greater. If an overpayment of 1% or greater occurs, the reasonable cost of the audit,
including any travel costs, must be borne by the CONTRACTOR which must be payable within
five business days of receipt of an invoice.
Failure to comply with the provisions of this section shall be a material breach of this contract
and shall constitute, in the OWNER'S sole discretion, grounds for termination thereof. Each of
the terms "books", "records", "documents" and "other evidence", as used above, shall be
construed to include drafts and electronic files, even if such drafts or electronic files are
subsequently used to generate or prepare a final printed document.
IN WITNESS WHEREOF, the parties of these presents have executed this agreement
in the year and day first above written.
CONT CTOR
BY: ,.��i�-
�r�c�,� -8'I�Pd�EF�(SIGNATURE)
Date: � - �o ' � �-
Name: Kevin Koehler
Secretary
Title:
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MAILING ADDRESS
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PHONE NUMBER
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FAX NUMBER
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PRINTED NAME
CITY OF DENTON, TE
BY: ��
CIT MANAGER
DATE: [�/� f'� �
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DEPARTMENTAL APPROVAL
APPROVED AS TO LEGAL FORM
ANITA BURGESS, CITY ATTORNEY
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EXHIBIT C
CITY OF DENTON
INSURANCE REQUIREMENTS FOR CONTRACTORS
Bidder's atte�ztion is directed to the i�lsurance requireme�its below. It is highly i�ecommended
that biddei�s co�rfe�� witlz their i�espective iitsurarrce carriers or brokers to determine iia advance
of Bid submission tlze availability of itzsuraitce ce�tificates and e�zdorsements as presct•ibed
a�zd provided Izerein. If a�t appaf•ent low biddeY fails to co�tply strictly with tlze insu�°a�zce
r•equiYenaeiz.ts, that bidde�• may be disqualift.ed from award of the co�z.t�°act. Upo�Z bid awai�d, all
i�zsu��ar�ce requi��eme�zts shall become contractual obligatioils, wlzich tlze successful bidder
slzall have a duty to nzai�atai�z tlirouglzout t/ae cout�se of this co�ztract.
STANDARD PROVISIONS:
Witl�out linaiti�zg crny of t7ie otlier obligatioias oi� liabilities of tlze Co�ztNactor, tlae Contr^c�ctor shall
pl°ovide a��d �ncti��taii� ul�til tlz.e contracted work Iaas been co»apleted aiad accepted by the City of
Deizto», Owne�°, tlze Tnininau�n i�ZSUYance cove��age as indicated I�ereinafter.
As sooiz as p�°acticable afte�° �zotificatio�z of bid award, Coizt�°actor slzall file witlz the Purchasi��g
Depc�i°tmeizt sc�tisfactory ce�°tificates of insuNai2ce, co�ztaini�zg the bid izu�7a.ber a�Zd title of tlZe
project. Co�ztracto�� ia�ay, upo�z writteJa request to the PuYChasi�Zg Department, ask for
clai°ificcatio�z of c�iTy iiasurc�izce requirelnents at a��y time; Izoweve�°, Coiztractors are stro�zgly
advised to �a2ake such �°equests p�°ior to bid. ope�2iiag, since t1a.e ii�suralzce Nequire»zents »zay not be
»�,odified o1� wccived nfter bid opening uTZless a w�°itte�z exceptioi� lzas been subnZitted witlz tlae bid.
Cont�actor shall rrot co�n�ne�7ce a�zy work or deliver a�zy material u�ztil he o�° sl2e receives
iZOtificatio�z t1�at the coi�tl�act has been accepted, c�pproved, c��zd sigiZed by t1�e City ofDeiiton.
All i�ZSUrance policies pi•oposed o�� obtained i�z satisfaction of these J°equire�ne�zts shall co�nply
wit1� tlie following genercrl specifications, and shall be maintai��ed in co�npliaizce with tl�ese
geizeral specifications tl�i°oughout the du�atio�2 of the Cont�act, or lo��ger, if so ��oted:
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- VII or better.
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 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
EXHIBIT C
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.
• Cancellation; The Cify requires 30 day written notice should any
of the policies described on the certificate be cancelled or
materially changed before the expiration dafe.
• 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.
EXHIBIT C
SPECIFIC ADDITIONAL INSURANCE REQUIREMENTS:
All insurance policies proposed or obtai�zed in satisfaction of this Cotttract shall additionally
comply witlz tlze followii7g marked specifications, and shall be maintai�ied i�a contplia�zce witll
t/aese additioiaal specifcations throughout the duration of tlze Contract, or longer, if so noted:
[X] A. General Liability Insurance:
General Liability insurance with combined single limits of not less than
$1,000,000.00 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.
[X] Automobile Liability Insurance:
Contractor shall provide Commercial Automobile Liability insurance with
Combined Single Limits (CSL) of not less than $500,000.00 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.
i�:cn:��r.;
Satisfaction of the above requirement shall be in the form of a policy endorsement
fo r:
any auto, or
all owned, hired and non-owned autos.
[X] 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).
[] 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
"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.
[ ] 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.
[ ] 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
EXHIBIT C
Denton and all subcontractors as their interests may appear.
[ ] Commercial Crime
Provides coverage for the theft or disappearance of cash or checks, robbery
inside/outside the premises, burglary of the premises, and employee fidelity. The
employee fidelity portion of this coverage should be written on a"blanket" basis
to cover all employees, including new hires. This type insurance should be
required if the contractor has access to City funds. Limits of not less than
each occurrence are required.
[ ] 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.
EXHIBIT C
ATTACHMENT 1
[X] Worker's Compensation Coverage for Building 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, TWCC-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.
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
EXHIBIT C
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 mail
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.
I. The cvntractor 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, a new
certificate of coverage showing extension of coverage, if the coverage
EXHIBIT C
period shown on the current certificate of coverage ends during the
duration of the project;
4) obtain from each other person with whom it contracts, and provide to the
contractor:
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
7) contractually require each person with whom it contracts, to perForm 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 co.ntract 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.