|
<br />Agreement between Client, KCDA and Contractor - Washington Page 15
<br />156691459.1
<br />.1 $1,000,000 Combined Single Limit protection for
<br />both bodily injury and property damage liability per
<br />occurrence and $2,000,000 general aggregate;
<br />
<br />.2 $1,000,000 per accident for bodily injury liability
<br />including sickness, disease or death and property
<br />damage liability because of damage to or destruction
<br />of property of others, including loss of use thereof
<br />arising out of the operation of automobiles.
<br />
<br />.3 $1,000,000 for personal injury liability coverage
<br />included and defined in the Commercial General
<br />Liability insurance policy for damages which are
<br />sustained by (1) a person as a result of an offense
<br />directly or indirectly related to employment of such
<br />person by the Contractor, or (2) by another person.
<br />
<br />.4 $1,000,000 for claims involving blanket contractual
<br />liability insurance (included and defined in the
<br />Commercial General Liability Insurance Policy)
<br />applicable to the Contractor’s obligations under
<br />Section 10.12.
<br />
<br />.5 In addition, the Contractor shall maintain a true
<br />umbrella policy that provides excess limits over the
<br />primary layer, in an amount not less than $2,000,000.
<br />
<br /> 17.1.2 The insurance described above shall include
<br />coverage for underground, collapse and explosion exposures.
<br />
<br /> 17.1.3 In addition, the Contractor shall purchase and
<br />maintain insurance for claims under workers’ compensation
<br />(industrial insurance), disability benefit and other similar
<br />employee benefit acts in the State statutory amount and
<br />Employer’s Liability with coverage of at least
<br />$250,000/$500,000.
<br />
<br /> 17.1.4 Before commencing the Work or exposure to
<br />loss can occur, and, in any event, within ten days after KCDA
<br />has issued its notice of intent to award contract, the Contractor
<br />shall furnish KCDA and the Client with Certificates of
<br />Insurance, in duplicate, as evidence of all insurance required by
<br />the Contract Documents. All policies and certificates must be
<br />signed copies and shall contain provision that coverages
<br />afforded under the policies cannot be materially altered,
<br />allowed to expire or canceled without first giving 45 days
<br />written notice by certified mail to KCDA and the Client. The
<br />Contractor shall furnish to KCDA and the Client copies of any
<br />subsequently issued endorsements amending, modifying,
<br />altering, or restricting coverage of limits.
<br />
<br /> 17.1.5 Coverage shall be maintained without
<br />interruption from the date of commencement of the Work until
<br />the date of Final Acceptance, except for any coverage required
<br />to be maintained after Final Acceptance. Completed operations
<br />coverage shall remain in force for three years after Final
<br />Acceptance.
<br />
<br /> 17.1.6 If KCDA or the Client is damaged by the
<br />failure of the Contractor to maintain any of the above insurance
<br />or to so notify KCDA and the Client, than the Contractor shall
<br />bear all costs properly attributable thereto. KCDA MAY
<br />WITHHOLD PAYMENT PENDING RECEIPT OF ALL
<br />CERTIFICATES OF INSURANCE. Failure to withhold
<br />payment shall not constitute a waiver.
<br />
<br /> 17.1.7 KCDA’s specification or approval of the
<br />insurance in this Agreement or of its amount shall not relieve or
<br />decrease the liability of the Contractor under the Contract
<br />Documents or otherwise. Coverages are the minimum to be
<br />provided and are not limitations of liability under the Contract,
<br />indemnification, or applicable law provisions. The Contractor
<br />may, at its expense, purchase larger coverage amounts or
<br />additional insurance.
<br />
<br /> 17.2 Property Insurance.
<br />
<br /> 17.2.1 The requirements for property insurance are
<br />addressed in Article 6 above.
<br />
<br /> 17.3 Waivers of Subrogation.
<br />
<br /> 17.3.1 KCDA, the Client, and the Contractor waive
<br />all rights against each other and any of their subcontractors of
<br />any tier, the A/E, their consultants, separate contractors
<br />described in Article 12 (if any), and any of their respective
<br />agents and employees, for damages caused by fire or other
<br />causes of loss to the extent covered by property insurance
<br />obtained pursuant to Articles 6 and 17.2 or other property
<br />insurance applicable to the Work, except such rights as they
<br />have to proceeds of such insurance held by the Client as
<br />fiduciary. KCDA and the Client do not waive their subrogation
<br />rights to the extent of the Client’s property insurance on
<br />structures or portions of structures that do not comprise the
<br />Work. A waiver of subrogation shall be effective as to a person
<br />or entity even though that person or entity would otherwise
<br />have a duty of indemnification, contractual or otherwise, did not
<br />pay the insurance premium directly or indirectly, and whether
<br />or not the person or entity had an insurable interest in the
<br />property damaged.
<br />
<br /> 17.4 Payment and Performance Bond.
<br />
<br /> 17.4.1 Pursuant to RCW 39.08, the Contractor is
<br />required to submit payment and performance bonds secured
<br />from a surety company licensed to do business in the State of
<br />Washington. The Contractor shall pay for the bonds in the full
<br />amount of the Contract Sum plus sales tax. Within seven days
<br />of entering into the Agreement, the Contractor shall deliver two
<br />copies of the bond (including the original bond) to KCDA and
<br />one copy each to the Client and the A/E. The price of the bond
<br />will be added to the total contract amount to be paid by the
<br />Client. KCDA MAY DECLINE TO ENTER INTO THE
<br />CONTRACT IF EVIDENCE OF BONDABILITY IS NOT
<br />RECEIVED, AND THE CLIENT MAY WITHHOLD ITS
<br />NOTICE TO PROCEED AND/OR WITHHOLD PAYMENT
<br />TO THE CONTRACTOR UNTIL SUCH SURETY BOND IS
<br />RECEIVED.
<br />
|