KLB CONSTRUCTION INC. 6/23/2010 - Laserfiche WebLink

I 11. LIMITATIONS REGARDING CLAIMS FOR DAMAGES OR EXTRA COMPENSATION Bidder is hereby informed that funds for this project are limited and are public funds established through governmental budget process. The Owner's decision to proceed with this project and to award a Contract to the successful bidder is dependent on the Contractor's agreement to limit all claims for payment from the Owner to the unit prices or lump sum bids proposed herein. Further,in the event the bidder is awarded a Contract for the work stated herein and a dispute arises between the bidder and the Owner regarding unreasonable delays, claims for extra compensation,or any of the provisions of the Contract,Bidder agrees to limit all claims or damages to the total funds appropriated by the Owner or otherwise available from other sources to the Owner for this project. The above limitations on claims for damages shall apply only to disputed claims and shall not be construed to apply to payments for extra work pursuant to mutually agreed Change Orders or force account work in accordance with the Change Order clause. In the event that the project funding or appropriation equals the amount under Contract and an irreconcilable dispute arises between Owner and Contractor which the Contractor views as a breach of Contract by the Owner excusing the Contractor from further performance,the Contractor and the Owner may agree to increase the project appropriation and preserve the rights of both parties to future settlement or final resolution by a court of 111 law. Bidder shall visit the site,become familiar with the conditions under which this project is to be performed,and correlate observations with the requirements of all Contract plans,specifications,and conditions,and the bidder shall increase its bid to include any and all contingencies which may relate to delays or interference from all sources whatsoever,including but not limited to weather,soil conditions,underground obstructions, labor disputes,fire,flood,delays by third parties,particularly public and private utilities. The Owner, Construction Manager,or Design Engineer shall not be responsible for delays caused by the aforesaid contingencies,and the Contractor agrees to limit any and all claims or damages for unreasonable delays caused by the Owner,Construction Manager,or Design Engineer to only the actual labor and equipment idled directly as a result of unreasonable actions of the Owner and its authorized officers and agents. Claims for "unreasonable delays"shall include only acts of the Owner,Construction Manager,or Design Engineer which impact the critical path of the Contractor for performance of the overall project herein. Bidder agrees as a condition of accepting a Contract for the work herein that"unreasonable delays"by the Owner,Construction Manager,or Design Engineer shall not include or in any manner relate to the Owner's or Construction Manager's rights and duties pertaining to reasonable administration and control of the work,including but not limited to legal relations and responsibility to the public and measurement and payment,as provided in the General Conditions. In the event that the Contractor determines that it may be entitled to payment or damages from the Owner for unreasonable delays by the Owner,Contractor shall upon such determination give immediate notice to the Owner in writing and said notice shall not be effective unless it includes: 1. The names of all Owner or Construction Manager personnel involved and the precise acts causing unreasonable delays or extra work not included in the plans,specifications,or other Contract Documents. 2. The nature of the unreasonable delays,the additional time for performance which the unreasonable delays will require,and an estimate of idle labor and equipment which will be caused by the unreasonable delay. 3. The percentage of completion of the project at the time the unreasonable delay was encountered. Upon giving said notice,the Contractor agrees to reschedule the work in such a manner as to avoid or limit idle labor and equipment caused by the alleged unreasonable delay,and no liability to the City for payment for unreasonable delays shall commence until seven(7)days after the Owner's receipt of the aforedescribed written notice. Bidder agrees that Owner may elect to terminate the Contract for convenience of the Owner within 10 days of receipt of said notice of unreasonable delay,in which event Contractor's total payment for all Contract work,including profit,shall be limited to actual work performed to date of termination and demobilization expenses for five(5)working days thereafter,as determined by the Major Changes provision of the General Conditions. In addition to limiting claims for unreasonable delays to the actual down time of labor and equipment,as above provided,bidder agrees that,in the event bidder is awarded a Contract for this project,the Owner's 00100-6 1