AGREEMENT BETWEEN OWNER AND DESIGN/BUILDER ON THE BASIS OF A STIPULATED PRICE
AGREEMENT
BETWEEN
OWNER AND DESIGN/BUILDER
ON
THE BASIS OF A STIPULATED PRICE
THIS
AGREEMENT is
made
and entered into this 14th
day of
July, 2006 by and between Show Me Ethanol, LLC, a Missouri limited liability
company (hereinafter called OWNER)
and ICM, Inc., a Kansas corporation (hereinafter called DESIGN/BUILDER).
OWNER
and
DESIGN/BUILDER, in consideration of the mutual covenants hereinafter set forth,
agree as follows:
Article
1. THE
PROJECT AND WORK.
1.01. DESIGN/BUILDER
shall complete all Work for the Project as specified or indicated in the
Contract Documents. The Project is generally described as the design and
construction of a dry mill fuel-grade ethanol plant to be located in or near
Carrolton, Missouri, as described in more detail in Exhibit B to this Agreement.
The Work includes such engineering, labor, materials, and equipment to design,
construct, startup and achieve guaranteed performance criteria of a dry mill
ethanol plant capable of producing no less than Fifty-Five (55) million gallons
per year of denatured fuel-grade ethanol and no less than One Hundred
Seventy-Six Thousand (176,000) tons per year of dry distillers’ grains at 100%
dry, as set forth in the Contract Documents. A more detailed described of the
Work is set forth in the attached Exhibits (other than OWNER’s responsibilities
set forth therein).
Article
2. CONTRACT
TIMES.
2.01. Days
to Achieve Substantial Completion and Final Payment.
The Work
will be Substantially Completed within Four Hundred Twenty (420) days after
the
date when the Contract Times commence to run as provided in paragraph 2.01.A
of
the General Conditions, and completed and ready for final payment in accordance
with paragraph 13.08 of the General Conditions within One Hundred Eighty (180)
days after Substantial Completion, unless otherwise provided in the Contract
Documents.
Article
3. CONTRACT
PRICE.
3.01. OWNER
shall pay DESIGN/BUILDER the Contract Price for completion of the Work in
accordance with the Contract Documents. The Contract Price may be adjusted
as
provided by the General Conditions. For all Work, OWNER shall pay to
DESIGN/BUILDER a price of *** (the “Contract Price”). The Contract Price will be
adjusted to consider (i) the number of days required to achieve Substantial
Completion (the “Time Adjustment”). The Time Adjustment shall be based upon the
number of calendar days from the date the Contract Times commence to run to
the
date the Work is Substantially Completed (the “Completion Time”). If the
Completion Time is less than ***, the Contract Price shall be increased by
***
for each calendar day less than such number of days with a maximum Contract
Price adjustment of ***. If the Completion Time is greater than ***, the
Contract Price shall be reduced by *** for each calendar day in excess of such
number of days with a maximum Contract Price adjustment of *** and such
reduction shall be OWNER’s sole remedy against DESIGN/BUILDER for failing to
achieve Substantial Completion within the period of time set forth in Section
2.01.
3.02. The
Work
to be performed by DESIGN/BUILDER shall not include those items designated
as
OWNER’s responsibilities in the Contract Documents. Those items designated as
OWNER’s responsibilities in the Contract Documents shall include all design,
procurement, fabrication, installation and start-up associated with such items.
1
3.03 DESIGN/BUILDER
shall provide to OWNER the training described in Exhibit G.
3.04 In
accordance with paragraph 5.02 of the General Conditions, DESIGN/BUILDER agrees
to maintain the insurance coverages, limits, and deductibles set forth in
Exhibit H.
Article
4. PAYMENT
PROCEDURES
4.01 DESIGN/BUILDER
shall submit and OWNER will process Applications for Payment in accordance
with
Article 13 of the General Conditions and Sections 5.01.A. through C. below.
A.
Down
Payment.
OWNER
shall make a down payment of *** of CONTRACT PRICE to DESIGN/BUILDER, which
shall be applied toward and credited to *** of each progress payment. The amount
of the down payment due hereunder is ***. The OWNER shall pay DESIGN/BUILDER
***
with the execution of the letter of intent between the parties. This amount
will
be credited toward the amount of the down payment. An additional amount of
***
shall be due and payable the date of this agreement is executed by the last
party hereto, and upon receipt will be credited toward the amount of the down
payment. Upon delivery of the Notice to Proceed, OWNER shall pay the remaining
balance of such down payment *** to DESIGN/BUILDER.
B. Progress
Payments; Retainage.
OWNER
shall make progress payments on account of the Contract Price on the basis
of
DESIGN/BUILDER's Applications for Payment, as provided in this Section 4.01.B.
Progress payments shall be due and payable in accordance with 13.04 of the
General Conditions. All such payments will be measured by the acceptable
Schedule of Values established under paragraph 2.03.A of the General
Conditions.
1. Prior
to
Substantial Completion, such progress payments will be made in an amount equal
to the percentage indicated below, but, in each case, less the aggregate of
payments previously made and less such amounts as OWNER may withhold in
accordance with paragraph 13.04.B of the General Conditions.
a. ***of
Work completed (with the balance being retainage).
b. ***
(with
the balance being retainage) of the cost of materials and equipment not
incorporated in the Work (but delivered, suitably stored and accompanied by
documentation satisfactory to OWNER as provided in paragraph 13.02.A of the
General Conditions).
2. Upon
Substantial Completion, payment will be made in an amount sufficient to increase
total payments to DESIGN/BUILDER to One Hundred percent (100%) of the Contract
Price, less (i) such amounts as OWNER may withhold in accordance with paragraph
13.04.B of the General Conditions, (ii) amounts mutually agreed by the parties
for completion of Punch List Items, and (iii) ***. Amounts withheld for Punch
List Items shall be paid by OWNER to DESIGN/BUILDER as such Work is
completed.
3. Upon
successful completion of the seven-day performance test described in Exhibit
A,
OWNER shall pay DESIGN/BUILDER the *** retained pursuant to Section
4.01.B.2.(iii) above.
C. Final
Payment.
OWNER
shall pay the remainder of the Contract Price, if any, to DESIGN/BUILDER in
accordance with paragraph 13.08 of the General Conditions.
2
Article
5. INTEREST.
5.01. All
monies not paid when due as provided in Article 13 of the General Conditions
shall bear interest at the rate of ***. If it is determined that OWNER
incorrectly withheld payment of any disputed payment, then such payment shall
bear interest from the date such payment would have otherwise been due until
the
date actually paid to DESIGN/BUILDER.
Article
6. DESIGN/BUILDER'S
REPRESENTATIONS.
6.01. DESIGN/BUILDER
makes the following representations:
A. DESIGN/BUILDER
has examined and carefully studied the Contract Documents listed in Sections
7.01.A through C, and, to the extent prepared (but not yet approved by OWNER)
prior to the Effective Date, the documents described in Section 7.01.D.3 and
.4.
B. DESIGN/BUILDER
is familiar with and is satisfied as to all federal, state and local Laws and
Regulations in existence on the Effective Date that may affect cost, progress,
performance, furnishing, and completion of the Work in accordance with the
Contract Documents.
C. DESIGN/BUILDER
is familiar with the work to be performed by OWNER and others at the Site that
relates to the Work as indicated in the Contract Documents.
D. DESIGN/BUILDER
has correlated the information known to DESIGN/BUILDER, reports and drawings
identified in the Contract Documents, and all additional examinations,
investigations, tests, studies and data with the Contract
Documents.
E. DESIGN/BUILDER
has given OWNER written notice of all conflicts, errors, ambiguities or
discrepancies that DESIGN/BUILDER has discovered in the Contract Documents
and
the written resolution thereof by OWNER is acceptable to DESIGN/BUILDER, and
the
Contract Documents are sufficient to indicate and convey understanding of all
terms and conditions for performance and furnishing of the Work.
Article
7. CONTRACT
DOCUMENTS.
7.01. The
Contract Documents which comprise the entire agreement between OWNER and
DESIGN/BUILDER concerning the Work consist of the following:
A. This
Agreement (pages 1 to 5, inclusive).
B. Exhibits
to this Agreement (A to M, inclusive).
C. General
Conditions of the Contract Between Owner and Design/Builder (pages 1 to 35,
inclusive).
D. The
following which may be delivered, prepared, or issued after the Effective Date
of this Agreement and are not attached hereto.
1.
Written
Notice to Proceed, in the form substantially similar to Exhibit M attached
hereto.
2. All
Written Amendments and other documents amending, modifying or supplementing
the
Contract Documents pursuant to paragraph 3.03.A of the General
Conditions.
3
3. Specifications
as defined in paragraph 1.01.A.31 of the General Conditions.
4. Drawings
as defined in paragraph 1.01.A.15 of the General Conditions.
7.02. There
are
no Contract Documents other than those listed above in this Article 7. The
Contract Documents may only be amended, modified or supplemented as provided
in
paragraph 3.03.A of the General Conditions.
Article
8. MISCELLANEOUS.
8.01. The
attached General Conditions of the Contract between Owner and Design/Builder
are
referred to herein as the General Conditions.
8.02. Terms
used in this Agreement which are defined in Article 1 of the General Conditions
will have the meanings indicated therein.
8.03. No
assignment by a party hereto of any rights under or interests in the Contract
Documents will be binding on another party hereto without the written consent
of
the party sought to be bound, which consent shall not be unreasonably withheld;
and, specifically but without limitation, moneys that may become due and moneys
that are due may not be assigned without such consent (except to the extent
that
the effect of this restriction may be limited by law), and, unless specifically
stated to the contrary in any written consent to an assignment, no assignment
will release or discharge the assignor from any duty or responsibility under
the
Contract Documents.
8.04. OWNER
and
DESIGN/BUILDER each binds itself, its successors, assigns and legal
representatives to the other party hereto, its successors, permitted assigns
and
legal representatives in respect to all covenants, agreements and obligations
contained in the Contract Documents.
8.05. Any
provision or part of the Contract Documents held to be void or unenforceable
under any Law or Regulation shall be deemed stricken, and all remaining
provisions shall continue to be valid and binding upon OWNER and DESIGN/BUILDER,
who agree that the Contract Documents shall be reformed to replace such stricken
provision or part thereof with a valid and enforceable provision that comes
as
close as possible to expressing the intention of the stricken
provision.
8.06. This
Agreement may be executed in any number of counterparts, each of which shall
be
deemed to be an original and all of which shall constitute one agreement that
is
binding upon all of the parties hereto, notwithstanding that all parties are
not
signatories to the same counterpart. Facsimile signatures of the parties hereto
shall be binding.
8.07. The
last
party to sign executes this Agreement. Within Sixty (60) days after such
effective date, OWNER shall provide to DESIGN/BUILDER the required Down Payment.
A minimum of Thirty (30) days prior to commencement date (May 01, 2007) as
set
in the letter of intent, OWNER shall provide to DESIGN/BUILDER the Notice to
Proceed and evidence, acceptable to DESIGN/BUILDER, of funding for the Project.
4
IN
WITNESS WHEREOF, OWNER and DESIGN/BUILDER have signed this Agreement on the
date
first written above.
OWNER: Show Me Ethanol LLC | DESIGN/BUILDER: ICM, Inc. | |
By: /s/
Xxxxx
Xxxxxx
Title: Chairman
8/7/2006
|
By: /s/
Xxxx Xxxxxx
Griend
Title: President/CEO
7/14/2006
|
|
Addresses for giving notices and representatives: | ||
Name:
_____________________________
Title:
______________________________
Address:
___________________________
Phone:
_____________________________
Facsimile:
___________________________
|
Name: Xxxx XxxxxxXxxxxx
Title: President/CEO
Address: 000 X. Xxxxx Xxxxxx, Xxxxxxx, XX
Phone: 000-000-0000
Facsimile:
000-000-0000
|
5
Exhibit
A
to
Agreement
Between Owner and Design/Builder
On
the Basis of a Stipulated Price
Performance
Criteria:
DESIGN/BUILDER
represents and warrants to OWNER that the completed Project will achieve each
of
the following performance criteria. After DESIGN/BUILDER determines the Plant
is
ready for start-up, DESIGN/BUILDER, with OWNER’s labor forces, will start-up the
Plant and conduct a seven-day performance test to establish compliance with
each
of the performance criteria except the atmospheric emissions. Compliance shall
be measured simultaneously for all criteria, and computed on the average over
the seven-day performance test. If the Project fails to reach any performance
criterion, then DESIGN/BUILDER shall (at no additional cost to OWNER) make
such
changes in design, construction, or equipment as required to meet the criteria,
and conduct another seven day performance test. Upon successful completion
of a
seven-day performance test, the Plant shall be considered to have achieved
the
performance criteria listed below (other than the atmospheric emissions
criteria) for purposes of the foregoing representation and warranty of
DESIGN/BUILDER.
Table
1
ethanol
plant criteria – 55 MGY
capacity
Criteria
|
Specification
|
Testing
Statement
|
Documentation
|
Plant
Capacity - fuel-grade ethanol
|
Operate
at a rate of 55 million gallons per year of denatured fuel grade
ethanol
meeting the specifications of ASTM 4806
|
Seven-day
performance test
|
Concurrence
of production records and a written report from
DESIGN/BUILDER.
|
Wet
Distillers Grains with Solubles OR Dry Distillers Grains
|
Operate
at a rate of 176,000 tons per year of approximately 11% moisture
DDG at
100% dry.
|
Determined
by calculation of mass flow from centrifuge (s) in a seven- day
performance test
|
Concurrence
of production records and a written analysis from
DESIGN/BUILDER.
|
Carbon
Dioxide
|
Approximately
146,000 tons per year of raw CO2
gas.
|
Determined
as a function of fermented gallons in a seven-day performance
test.
|
Mass
flow calculation by DESIGN/BUILDER.
|
Grain
to Ethanol Conversion ratio; Corn/Sorghum 56#/bu., 16% or less moisture,
zero aflatoxin tolerance
|
Not
be less than 2.80 denatured gallons (2.67 gallons undenatured) of
ethanol
per bushel of ground corn.
|
As
determined by meter readings during a seven-day performance
test.
|
Concurrence
of production records and written analysis by
DESIGN/BUILDER.
|
Electrical
Energy
|
0.75
kWh per denatured gallon of fuel grade ethanol. Does not include
kWh used
to operate CO2 plant,
CO2
gas system, grain handling system or chiller.
|
As
determined by meter readings during a seven-day performance test.
|
Concurrence
of production records and written analysis by
DESIGN/BUILDER.
|
Natural
Gas
|
Consumption
shall not exceed 34,000 Btu per denatured gallon of fuel-grade
ethanol.
|
As
determined by meter readings during a seven-day performance
test.
|
Concurrence
of production records and written analysis by
DESIGN/BUILDER.
|
Process
Water Discharge
|
zero
gallons under normal operations
|
Process
discharge meter readings during seven day performance test
|
Plant
control system reports from
DESIGN/BUILDER
|
Atmospheric
Emissions
|
As
prescribed and approved by the applicable Department of Environmental
Quality or similar agency for the State in which the Plant is located
as
of the Effective Date of the Agreement.
|
As
determined by written emissions compliance report from a third party
mutually selected by the parties confirming regulatory compliance
of the
air emissions performance tests prescribed
by the applicable Department of Environmental Quality or similar
agency
for the State in which the Plant is located as of the Effective Date
of
the Agreement.
|
As
determined by written emissions compliance report from a third party
mutually selected by the parties confirming regulatory compliance
of the
air emissions performance tests prescribed
by the applicable Department of Environmental Quality or similar
agency
for the State in which the Plant is located as of the Effective Date
of
the Agreement.
|
OWNER’s
failure to materially comply with the operating procedures issued by
DESIGN/BUILDER shall void the foregoing performance criteria and all other
guarantees and warranties set forth in the Contract Documents.
OWNER
understands that the startup of the plant requires resources and cooperation
of
OWNER, vendors and other suppliers to the Project. DESIGN/BUILDER disclaims
any
liability and OWNER indemnifies DESIGN/BUILDER for non-attainment of the
foregoing performance criteria directly or indirectly caused by the material
non-performance or negligence of third parties not retained by
DESIGN/BUILDER.
Exhibit
B
to
Agreement
Between Owner and Design/Builder
On
the Basis of a Stipulated Price
General
Project Scope:
Construct
a no less than Fifty-Five (55) million gallon per year (MGY) dry mill fuel-grade
ethanol plant located in or near Carrolton, Missouri. The plant will grind
approximately Twenty (20) million bushels per year to produce approximately
Fifty-Five (55) MGY of fuel-grade ethanol denatured with five percent gasoline
(or a similar product). The plant will also produce not less than 176,000 tons
per year of 11% moisture Dryer Distillers Grains with Solubles (DDGS) at one
hundred percent (100%) dry, and approximately 146,000 tons per year of raw
carbon dioxide (CO2)
gas.
OWNER
to
provide DESIGN/BUILDER a level site and which shall have a soil load bearing
capacity as specified in the attached table.
Ground
grain will be mixed in a slurry tank and routed through a working system
consisting of a hydroheater, xxxx tube, and flash tank. The mash will continue
through liquefaction and associated heat exchangers to fermentation.
Simultaneously, propagated yeast will be added to the mash as the fermenter
is
filling. After batch fermentation is complete, the beer will be pumped to the
beer well and then to the beer column to vaporize the alcohol from the
mash.
Alcohol
streams are dehydrated in the distillation column, the side stripper and the
molecular sieve system. Two hundred proof alcohol is pumped to the tank farm
shift tanks and blended with five percent denaturant as the product is being
pumped into a final storage tank.
Corn
mash
from the beer stripper is dewatered by decanter type centrifuge. Wet cake from
the centrifuge is conveyed to the wetcake pad or drying system. Water in the
thin stillage can be evaporated and recycled by the Bio-Methanation system.
Fresh
water for the boilers, cooking and other processes will be obtained from area
process xxxxx or city water system that supply the needs of the plant. Boiler
water may be conditioned in regenerative softeners will be pumped through a
deaerator scrubber and into a deaerator tank. Appropriate boiler chemicals
will
be added as preheated water is sent to the boiler.
DESIGN/BUILDER
will provide its standard design for the fire pump house and water treatment
space. Any additional requirements will be an additional cost to
OWNER.
The
design includes a compressed air system consisting of compressors, a receiver
tank, pre-filter, coalescing filter and air dryer.
The
design also incorporates the use of a clean-in-place (CIP) system for cleaning
xxxx, fermentation, distillation, evaporation, centrifuges and other systems.
Fifty percent caustic soda is received by truck and stored in a tank. The CIP
system uses tanks for receiving, make-up, CIP return and CIP waste which is
fed
to the methanator. The CIP system includes a CIP Tank, a 50% Caustic tank,
and a
Waste CIP tank. A screen is used to remove the solids.
Under
normal operating circumstances, the Plant will not have any wastewater
discharges that have been in contact with corn and sorghum mash, cleaning system
or contact process water. A bio-methanator manufactured by
DESIGN/BUILDER/Phoenix will reduce the organic acids in process water allowing
complete reuse within the Plant and is included in the Contract Price. The
Plant
will have blowdown discharges from the cooling tower, water softeners, and
Reverse Osmosis system. OWNER is responsible for all permits, purchase and
installation of pumps, waterline construction, sanitary sewer construction,
necessary to discharge the blowdown from the cooling tower, water softeners,
and
Reverse Osmosis system.
Carbon
Dioxide (CO2) is a co-product of the fermentation process. CO2 is allowed under
current Laws and Regulations to be vented to the atmosphere. Installation of
a
plant or system to capture, clean and compress the CO2 is not included in the
Work. OWNER, at its cost, may add a blower, certain associated equipment and
a
small amount of piping to move the CO2 from the fermenter to a collection point
for sale or further processing.
Most
of
the processes within the Plant will be computer controlled by a Siemens/Xxxxx
APACS distributed control system with graphical user interface and three
workstations all located in the plant control room, which is included in the
Contract Price. No workstation is provided for the administrative building
or
any other location. It is estimated that the system will consist of 200 discrete
inputs, 200 discreet outputs, 175 analog inputs and 120 analog outputs.
Programmable logic controllers (PLCs) will control certain process
equipment.
The
Work
provided by DESIGN/BUILDER will meet specifications, criteria, and allowances
as
provided in the Construction Permit and all other applicable Laws and
Regulations enacted as of the Effective Date.
Exhibit
C
to
Agreement
Between Owner and Design/Builder
On
the Basis of a Stipulated Price
Buildings
and Structures by DESIGN/BUILDER:
Construction
of buildings and structures, as listed in Table 2 and Table 3, is included
in
the Contract Price.
Table
2
Ancillary Buildings and Structures by DESIGN/BUILDER
Building
|
Type
|
Preliminary
Dimensions
|
Addition
Info
|
MCC
Buildings
|
CMU
block wall, insulated, climate controlled
|
20’
x 10’
|
Located
near cooling tower and grain storage silos.
|
Cooling
Tower
|
Xxxxxxx
Fir Structure Induced Draft Counter Flow
|
34’
x 90’
|
Includes
three (3) cooling tower cells
|
Scale
|
One
grain scale at admin building
|
70’
Long
|
Standard
scale
|
Wetcake
Pad
|
Cast-in-Place
Concrete Structure
|
80’
x 120’
|
Table
3
Buildings and Structures by DESIGN/BUILDER
Building
|
Type
|
Preliminary
Dimensions
|
Addition
Info
|
Process
|
Structural
steel, steel siding - Insulated
|
60’
x 140’ x 35’
|
Includes
laboratory, control room & offices, MCC room
|
Energy
Center
|
Structural
steel, steel siding - Insulated
|
90’
x 100’ x30’
|
Includes
centrifuge area, office, MCC room
|
Evaporation
|
Structural
steel, steel siding - Insulated
|
50’
x 45’ x 35’
|
|
Exhibit
D
to
Agreement
Between Owner and Design/Builder
On
the Basis of a Stipulated Price
Administration
Building and other items by OWNER:
The
Contract Price does not include the cost of the following additional
items:
Table
4
Administration Building and other items
Description
|
Additional
Description
|
Est.
Amount
|
Administration
Building
|
Free
standing (37’ x 70’ x 10’)
|
***
|
Scale
|
Above
ground located near storage tanks
|
***
|
Grain
Receiving
|
Structural
Steel, steel siding, roof insulation only
|
***
|
Office
Computer System
|
Microsoft
Windows 2000 network server and five personal computers, one laser
printer. Includes setup, software and labor.
|
***
|
Telephone
System
|
Digital
phone system with voice mail for office and plant.
|
***
|
Office
Copier & fax machine
|
Black
& white with sheet feeder and collator. Plain paper fax
machine.
|
***
|
Office
Furniture
|
Office
desks, chair & side chairs, conference room table & chairs, three
four-drawer filing cabinets, and 10 two-drawer filing
cabinets.
|
***
|
Exhibit
E
to
Agreement
Between Owner and Design/Builder
On
the Basis of a Stipulated Price
OWNER’S
Required Permits and Services List:
OWNER
shall provide all of the permits, authorizations and services, including but
not
limited to:
1) |
Land
and Grading – Land and Grading - OWNER shall provide
the Site near or in Carrolton, Missouri. OWNER shall obtain all legal
authority to use the Site for its intended purpose and perform technical
due diligence for DESIGN/BUILDER to perform including but not limited
to
proper zoning approvals, elevation restrictions, soil tests, and
water
tests. The Site shall be rough graded per DESIGN/BUILDER specifications
and be within six inches of final grade including the rough grading
for
Site roadways. The Site soils shall be modified as required to provide
a
minimum allowable soil bearing pressure as specified in the attached
table
for all foundation elements. The site soils shall be modified as
required
to provide a minimum allowable soil bearing pressure of 4,500 pounds
per
square foot in the fermenter area, 6,500 pounds per square foot in
the
grain storage concrete silos area and 3,000 pounds per square foot
for all
other foundation elements. The soils beneath the foundation elements
shall
not exceed the total or differential settlements such that the Plant
is
unable to perform its intended purpose. If the existing soil conditions
are such that over-excavation and re-compaction or pilings are required,
OWNER will be responsible for this work. OWNER is also responsible
for any
dewatering required at the site during construction.
|
Other
items to be provided by the OWNER include, but are not limited to, the
following: initial site survey (boundary and topographic) as required by the
design engineers, layout of the property corners including two construction
benchmarks, soil borings and subsequent geotechnical report (the results of
which are acceptable to DESIGN/BUILDER and consistent with the specifications
set forth herein) describing recommendation for roads, foundations and if
required, soil stabilization/remediation, site engineering and detailed drawings
(to the extent not provided by DESIGN/BUILDER), land disturbance permit, erosion
control permit, site grading as described above with minimum soil standards,
placement and maintenance of erosion control measures, access road from a city,
county, state or federal road designed to meet city or local county road
standards (provided that such road must contain a minimum of twelve (12) inches
of crushed rock with geo-fabric and compacted base), storm and sanitary sewers,
water main branches, to be within five (5) feet of the designated building
locations, roads as specified and designed for the permanent elevations and
effective depth, paving, “construction” grading plan as drawn (including site
retention pond), all site seeding, landscaping, rock, plant water well and
associated permit(s), environmental monitoring, environmental monitoring
equipment, environmental testing for both air and water, chemicals, corn or
other feedstock, enzymes, a risk management plan, laboratory equipment specified
by DESIGN/BUILDER, and all start-up supplies, including, but not limited to
hoses, equipment labels, and other items specified by DESIGN/BUILDER,
2) |
Roads – OWNER
shall provide or have provided, an access road of sufficient quality
to
withstand semi-truck traffic of 25,000+ annual loads with weight
of 80,000
lbs each.
|
3) |
Air
Quality Permit –A
permit for construction shall be obtained from the proper authorities
prior to the issuance of the Notice to Proceed. OWNER shall obtain
an
Operating Permit in timely manner to allow startup of the Plant as
scheduled by DESIGN/BUILDER.
|
4) |
Storm
Water Runoff Permit –
OWNER
shall obtain the permanent industrial storm water runoff permit.
DESIGN/BUILDER shall obtain the construction storm water runoff
permit.
|
5) |
Natural
Gas Supply and Service Agreement –
Continuous
supply of natural gas of at least 1.9 Billion cubic
feet per year, at a rate of 000 XXXxx per hour and at a minimum pressure
of 60 psig at a location specified by DESIGN/BUILDER . OWNER shall
provide
supply meter and regulators to provide burner tip pressures as specified
by DESIGN/BUILDER. OWNER will be responsible for the design, procurement,
fabrication and installation of any and all equipment necessary to
deliver
the gas to all locations specified by
DESIGN/BUILDER.
|
6) |
Electrical
Service – Continuous supply of 12,000 kVA,
12,400-volt electrical energy or more to a point immediately adjacent
to
the site. OWNER shall supply a high voltage switch and, if required,
a
substation. OWNER shall supply metering as specified by the power
company.
This electrical capacity will be sufficient to support the operations
of
the Plant as specified by DESIGN/BUILDER. OWNER will be responsible
to
design, provide, and install electricity connections to all locations
specified by DESIGN/BUILDER (including the high-voltage permanent
power
loop, transformers and pads). Design and installation of the permanent
power loop will be by DESIGN/BUILDER and all costs will be split
50-50
between OWNER and DESIGN/BUILDER.
|
7) |
Water
Supply and Service Agreement – For process (contact
and non-contact) and sanitary purposes, OWNER shall design, procure,
fabricate and install all equipment for the supply of fresh water,
and
supply such water to all locations specified by DESIGN/BUILDER. The
water
augmentation plan and all associated fees, forms, permits and incidental
requirements is the responsibility of OWNER. OWNER shall make such
water
supply available at the Site, and shall provide DESIGN/BUILDER with
a
water sample from such supply, at least two (2) months prior to the
commencement of Construction.
|
8) |
Wastewater
Discharge Permit – For discharges of cooling tower
blowdown, water softening, and RO system blowdown under normal operating
procedures. Process wastewater discharges during emergency failure
of
wastewater treatment plant to treat all process wastewater.
|
9) |
Railroad –
OWNER shall design, procure, fabricate and install any railroad track
siding to the Site, at grades specified by DESIGN/BUILDER, including
all
necessary earth work to properly locate the track, preparation of
the
railroad track bed, and track, ties and ballast to railroad company
specifications and all required
permits.
|
10) |
Regulatory
Contingency – Until satisfactory atmospheric
emissions compliance, OWNER shall maintain a fund of no less than
*** to
cover any unforeseen governmental regulation changes implemented
after the
Effective Date of the Agreement. This contingency is not part of
the
Contract Price, and its use may be authorized only by agreement of
OWNER
and DESIGN/BUILDER.
|
11) |
Water
treatment – DESIGN/BUILDER shall design, procure,
fabricate and install all water treatment equipment as deemed necessary
by
DESIGN/BUILDER. This might include reverse osmosis, softening equipment,
iron removal, sulfate removal, or other items specified by DESIGN/BUILDER.
All costs to complete work on Water Treatment are not included in
base
contract price, and will be billed to the Owner at cost plus 15%.
|
12) |
Road
Paving –
After
Substantial Completion, OWNER
will be responsible for paving of all roads.
|
13) |
BATF
Application/Misc Permits –
OWNER
will be responsible for completing, submitting and obtaining Bureau
of
Alcohol Tobacco and Firearms permitting to produce fuel grade alcohol,
tank farm permits, discharge permits required by hydro testing the
Plant,
and an SPCC Plan.
|
14) |
Office
Equipment – With the exception of the DCS control
systems, OWNER will be responsible for office furnishings, computers
and
software to run the day-to-day operations of the
Plant.
|
15) |
Construction
Power – OWNER will provide and pay for all
electricity needed during the Construction, including the permanent
power
loop required by DESIGN/BUILDER, by contracting with DESIGN/BUILDER
for
the installation of the same and which will be billed to OWNER as
an
additional cost, and not part of, the Contract Price.
|
16) |
Fire
water system – DESIGN/BUILDER shall be responsible
for the design, procurement, fabrication and installation of the
fire
water system including, without limitation: fire water pump station,
fire
water loop with hydrants, deluge systems, fire alarm panels, smoke
and
heat detection in any building or MCC room, as required by Laws and
Regulations and the insurance company(ies) which provide insurance
pursuant to the Contract Documents. All costs to complete fire water
system are not included in base contract price, and will be billed
to the
Owner at cost plus 15%.
|
17) |
At
least forty-five (45) days prior to Substantial Completion, OWNER
shall
complete construction of an administration building at the Site with
all
utilities connected and operating to such
building.
|
18) |
Prior
to start-up of the Plant, OWNER shall furnish to DESIGN/BUILDER the
following:
|
a) Fully
executed copies of all permits required to operate the Plant;
b) Fully
executed Certificate of Substantial Completion; and
c) Preliminary
Punchlist pursuant to paragraph 13.05 of the General Conditions.
In
the
event OWNER desires that DESIGN/BUILDER perform all or any part of the foregoing
obligations of OWNER, and DESIGN/BUILDER agrees to perform such obligations,
the
Contract Price shall be increased by the amount determined pursuant to paragraph
10.02 of the General Conditions unless otherwise agreed by the
parties.
Exhibit
F
to
Agreement
Between Owner and Design/Builder
On
the Basis of a Stipulated Price
LICENSE
AGREEMENT
THIS
LICENSE AGREEMENT (this “License Agreement”) is entered into and made effective
as of the 14th
day of
July, 2006 (“Effective Date”) by and between Show Me Ethanol, LLC a Missouri
limited liability company (“OWNER”), and ICM, Inc., a Kansas corporation
(“ICM”).
WHEREAS,
OWNER and ICM have entered into that certain AGREEMENT BETWEEN OWNER AND
DESIGN/BUILDER ON THE BASIS OF A STIPULATED PRICE dated July 14th,
2006
(the “Contract”), under which ICM is to design and construct a Fifty-Five (55)
million gallons per year ethanol plant for OWNER to be located in or near
Carrolton, Missouri (the “Plant”);
WHEREAS,
ICM will use proprietary technology and information of ICM in the design and
construction of the Plant; and
WHEREAS,
OWNER desires from ICM, and ICM desires to grant to OWNER, a license to use
such
proprietary technology and information in connection with OWNER’s ownership and
operation of the Plant, all upon the terms and conditions set forth
herein;
NOW,
THEREFORE, the parties, in consideration of the foregoing premises and the
mutual promises contained herein and for other good and valuable consideration,
receipt of which is hereby acknowledged, agree as follows:
1. Upon
substantial completion of the Plant by ICM pursuant to the terms of the
Contract, ICM agrees to grant to OWNER a limited license to use the Proprietary
Property (hereinafter defined) solely in connection with the ownership,
operation, maintenance and repair of the Plant, subject to the limitations
provided herein (the “Purpose”). This license may be suspended by ICM in the
event that the Owner fails to timely pay to ICM amounts due and owing under
the
Contract. Notwithstanding anything to the contrary contained herein, ICM shall
not be entitled to receive any revenue derived from the commercial operation
of
the Plant, it being understood that ICM's right to receive payment shall be
limited to the Contract Price and any interest, late fees, or penalties as
provided herein.
2. The
“Proprietary Property” means, without limitation, documents, Operating
Procedures (hereinafter defined), materials and other information that are
furnished by ICM to OWNER in connection with the Purpose whether orally,
visually, in writing, or by any other means, whether tangible or intangible,
directly or indirectly and in whatever form or medium including, without
limitation, the design, arrangement, configuration, and specifications of (i)
the combinations of distillation, evaporation, and alcohol dehydration equipment
(including, but not limited to, pumps, vessels, tanks, heat exchangers, piping,
valves and associated electronic control equipment) and all documents supporting
those combinations; (ii) the combination of the distillers grain drying (DGD),
and heat recovery steam generation (HRSG) equipment (including, but not limited
to, pumps, vessels, tanks, heat exchangers, piping and associated electronic
control equipment) and all documents supporting those combinations; and (iii)
the computer system, known as the distributed control system (DCS and/or PLC)
(including, but not limited to, the software configuration, programming,
parameters, set points, alarm points, ranges, graphical interface, and system
hardware connections) and all documents supporting that system. The “Operating
Procedures” means, without limitation, the process equipment and specifications
manuals, standards of quality, service protocols, data collection methods,
construction specifications, training methods, engineering standards and any
other information prescribed by ICM from time to time concerning the Purpose.
Proprietary Property shall not include any information or materials that OWNER
can demonstrate by written documentation: (i) was lawfully in the possession
of
OWNER prior to disclosure by ICM; (ii) was in the public domain prior to
disclosure by ICM; (iii) was disclosed to OWNER by a third party having the
legal right to possess and disclose such information or materials; or (iv)
after
disclosure by ICM comes into the public domain through no fault of OWNER or
its
members, directors, officers, employees, agents, contractors, consultants or
other representatives (hereinafter collectively referred to as
“Representatives”). Information and materials shall not be deemed to be in the
public domain merely because such information is embraced by more general
disclosures in the public domain, and any combination of features shall not
be
deemed to be within the foregoing exceptions merely because individual features
are in the public domain if the combination itself and its principles of
operation are not in the public domain.
F-1
3. OWNER
shall not use the Proprietary Property for any purpose other than the Purpose.
OWNER shall not use the Proprietary Property in connection with any expansion
or
enlargement of the Plant. ICM and its Representatives shall have the express
right at any time to enter upon the premises of the Plant to inspect the Plant
and its operation to ensure that OWNER is complying with the terms of this
License Agreement.
4. OWNER’s
failure to materially comply with the Operating Procedures shall void all
guarantees, representations and warranties, whether expressed or implied, if
any, that were given by ICM to OWNER in the Contract concerning the performance
of the Plant. OWNER agrees to indemnify, defend and hold harmless ICM and ICM’s
Representatives from any and all losses, damages and expenses including, without
limitation, reasonable attorneys’ fees resulting from, relating to or arising
out of OWNER’s or its Representatives’ (i) failure to materially comply with the
Operating Procedures or, (ii) negligent use of the Proprietary Property.
5. Any
and
all modifications to the Proprietary Property by OWNER or its Representatives
shall be the property of ICM. OWNER shall promptly notify ICM of any such
modification and OWNER agrees to assign all of its right, title and interest
in
such modification to ICM; provided, however, OWNER shall retain the right,
at no
cost, to use such modification in connection with the Purpose.
6. ICM
has
the exclusive right and interest in and to the Proprietary Property and the
goodwill associated therewith. OWNER will not, directly or indirectly, contest
ICM’s ownership of the Proprietary Property. OWNER’s use of the Proprietary
Property does not give OWNER any ownership interest or other interest in or
to
the Proprietary Property except for the limited license granted to OWNER herein.
7. OWNER
shall pay no license fee or royalty to ICM for OWNER’s use of the Proprietary
Property pursuant to the limited license granted to OWNER, the consideration
for
this limited license is included in the amounts payable by OWNER to ICM for
the
construction of the Plant under the Contract.
8. OWNER
may
not assign the limited license granted herein, in whole or in part, without
the
prior written consent of ICM, which will not be unreasonably withheld or
delayed, provided that, subject to approval by ICM of the form of assignment,
OWNER may assign this license to a lending institution as collateral for the
financing the Plant. Prior to any assignment, OWNER shall obtain from such
assignee a written instrument, in form and substance reasonably acceptable
to
ICM, agreeing to be bound by all the terms and provisions of this License
Agreement. Any assignment of this License Agreement shall not release OWNER
from
(i) its duties and obligations hereunder concerning the disclosure and use
of
the Proprietary Property, or (ii) damages to ICM resulting from, or arising
out
of, a breach of such duties or obligations by OWNER or its Representatives.
ICM
may assign its right, title and interest in the Proprietary Property, in whole
or part, subject to the limited license granted herein.
F-2
9. The
Proprietary Property is confidential and proprietary. OWNER shall keep the
Proprietary Property confidential and shall use all reasonable efforts to
maintain the Proprietary Property as secret and confidential for the sole use
of
OWNER and its Representatives for the Purpose. OWNER shall retain all
Proprietary Property at its principal place of business and/or the Plant. OWNER
shall not at any time without ICM’s prior written consent, copy, duplicate,
record, or otherwise reproduce the Proprietary Property, in whole or in part,
or
otherwise make the same available to any unauthorized person. OWNER shall not
disclose the Proprietary Property except to its Representatives who are directly
involved with the Purpose, and even then only to such extent as is necessary
and
essential for such Representative’s involvement. OWNER shall inform such
Representatives of the confidential and proprietary nature of such information
and, if requested by ICM, OWNER shall obtain from such Representative a written
instrument, in form and substance reasonably acceptable to ICM, agreeing to
be
bound by all of the terms and provisions of this License Agreement. OWNER shall
make all reasonable efforts to safeguard the Proprietary Property from
disclosure by its Representatives to anyone other than permitted hereby. OWNER
shall notify ICM immediately upon discovery of any unauthorized use or
disclosure of the Proprietary Property, or any other breach of this License
Agreement by OWNER or its Representatives, and shall cooperate with ICM in
every
reasonable way to help ICM regain possession of the Proprietary Property and
prevent its further unauthorized use or disclosure. In the event that OWNER
or
its Representatives are required by law to disclose the Proprietary Property,
OWNER shall provide ICM with prompt written notice of same so that ICM may
seek
a protective order or other appropriate remedy. In the event that such
protective order or other appropriate remedy is not obtained, OWNER or its
Representatives will furnish only that portion of the Proprietary Property
which
in the reasonable opinion of its or their legal counsel is legally required
and
will exercise its reasonable efforts to obtain reliable assurance that the
Proprietary Property so disclosed will be accorded confidential
treatment.
10. OWNER
agrees to indemnify ICM for any and all damages (including, without limitation,
reasonable attorneys’ fees) arising out of or resulting from any unauthorized
disclosure or use of the Proprietary Property by OWNER or its Representatives.
OWNER agrees that ICM would be irreparably damaged by reason of a violation
of
the provisions contained herein and that any remedy at law for a breach of
such
provisions would be inadequate. OWNER agrees that ICM shall be entitled to
seek
injunctive or other equitable relief in a court of competent jurisdiction
against OWNER or its Representatives for any unauthorized disclosure or use
of
the Proprietary Property without the necessity of proving actual monetary loss
or posting any bond. It is expressly understood that the remedy described herein
shall not be the exclusive remedy of ICM for any breach of such covenants,
and
ICM shall be entitled to seek such other relief or remedy, at law or in equity,
to which it may be entitled as a consequence of any breach of such duties or
obligations.
11. The
duties and obligations of OWNER under this License Agreement, and all provisions
relating to the enforcement of such duties and obligations shall survive and
remain in full force and effect notwithstanding any termination or expiration
of
the Contract or this License Agreement.
F-3
12. ICM
may
terminate the limited license granted to OWNER herein upon written notice to
OWNER if OWNER willfully or wantonly uses the Proprietary Property for any
purpose, or discloses the Proprietary Property to anyone, other than permitted
herein. Upon termination of the license, OWNER shall cease using the Proprietary
Property for any purpose (including the Purpose) and, upon request by ICM,
shall
promptly return to ICM all documents or other materials in OWNER’s or its
Representatives’ possession that contain Proprietary Property in whatever
format, whether written or electronic, including any and all copies or
reproductions of the Proprietary Property. OWNER shall permanently delete all
such Proprietary Property from its computer hard drives and any other electronic
storage medium (including any backup or archive system). OWNER shall deliver
to
ICM a written certificate which certifies that all electronic copies or
reproductions of the Proprietary Property have been permanently
deleted.
13. The
laws
of the State of Kansas, United States of America, shall govern the validity
of
the provisions contained herein, the construction of such provisions, and the
interpretation of the rights and duties of the parties. Any legal action brought
to enforce or construe the provisions of this License Agreement shall be brought
in the federal or state courts located in Kansas, and the parties agree to
and
hereby submit to the exclusive jurisdiction of such courts and agree that they
will not invoke the doctrine of forum non conveniens or other similar defenses
in any such action brought in such courts. Notwithstanding the foregoing,
nothing in this License Agreement will affect any right ICM may otherwise have
to bring any action or proceeding relating to this Agreement against OWNER
or
its properties in the courts of any jurisdiction.
14. OWNER
hereby agrees to waive all claims against ICM and ICM’s Representatives for any
consequential damages that may arise out of or relate to this License Agreement,
the Contract or the Proprietary Property whether arising in contract, warranty,
tort (including negligence), strict liability or otherwise, including but not
limited to losses of use, profits, business, reputation or financing. OWNER
agrees that the aggregate amount OWNER (and anyone claiming by or through OWNER)
may collectively recover from ICM (and its Representatives), for the Plant
as a
whole under the Contract and this License Agreement shall be limited to
***.
15.
The
terms and conditions of this License Agreement constitute the entire agreement
between the parties with respect to the subject matter hereof and supersede
any
prior understandings, agreements or representations by or between the parties,
written or oral. Any rule of construction to the effect that any ambiguity
is to
be resolved against the drafting party shall not be applicable in the
interpretation of this License Agreement. This License Agreement may not be
modified or amended at any time without the written consent of the
parties.
16.
All
notices, requests, demands, reports, statements or other communications (herein
referred to collectively as "Notices") required to be given hereunder or
relating to this License Agreement shall be in writing and shall be deemed
to
have been duly given if transmitted by personal delivery or mailed by certified
mail, return receipt requested, postage prepaid, to the address of the party
as
set forth below. Any such Notice shall be deemed to be delivered and received
as
of the date so delivered, if delivered personally, or as of the third business
day following the day sent, if sent by certified mail. Any party may, at any
time, designate a different address to which Notices shall be directed by
providing written notice in the manner set forth in this paragraph.
17.
In
the event that any of the terms, conditions, covenants or agreements contained
in this License Agreement, or the application of any thereof, shall be held
by a
court of competent jurisdiction to be invalid, illegal or unenforceable, such
term, condition, covenant or agreement shall be deemed void ab initio and shall
be deemed severed from this License Agreement. In such event, and except if
such
determination by a court of competent jurisdiction materially changes the
rights, benefits and obligations of the parties under this License Agreement,
the remaining provisions of this License Agreement shall remain unchanged
unaffected and unimpaired thereby and, to the extent possible, such remaining
provisions shall be construed such that the purpose of this License Agreement
and the intent of the parties can be achieved in a lawful manner.
F-4
18.
The
duties and obligations herein contained shall bind, and the benefits and
advantages shall inure to, the respective successors and permitted assigns
of
the parties hereto.
19.
The
waiver by any party hereto of the breach of any term, covenant, agreement or
condition herein contained shall not be deemed a waiver of any subsequent breach
of the same or any other term, covenant, agreement or condition herein, nor
shall any custom, practice or course of dealings arising among the parties
hereto in the administration hereof be construed as a waiver or diminution
of
the right of any party hereto to insist upon the strict performance by any
other
party of the terms, covenants, agreement and conditions herein
contained.
20. In
this
License Agreement, where applicable, (i) references to the singular shall
include the plural and references to the plural shall include the singular,
and
(ii) references to the male, female, or neuter gender shall include references
to all other such genders where the context so requires.
F-5
IN
WITNESS WHEREOF, the parties hereto have executed this License Agreement, the
Effective Date of which is indicated on page 1 of this License
Agreement.
OWNER:
|
ICM:
|
|
ICM,
Inc.
|
By:
/s/Xxxxx Xxxxxx
|
By:
/s/ Xxxx XxxxxxXxxxxx
|
Title:
Chairman
|
Title:
CEO
|
Date
Signed:8-7-2006
|
Date
Signed: 7-15-2006
|
Address
for giving notices:
|
Address
for giving notices:
|
000
X Xxxxx Xxxxxx
Xxxxxxx,
XX 00000
|
F-6
Exhibit
G
to
Agreement
Between Owner and Design/Builder
On
the Basis of a Stipulated Price
ICM
Training:
The
Contract Price includes a commitment by DESIGN/BUILDER to perform certain
training for certain personnel of OWNER at OWNER’s ethanol plant, which is
located in Carrolton, Missouri.
Employee
training will be coordinated by operational personnel of DESIGN/BUILDER with
the
support of personnel of OWNER on location at OWNER’s ethanol plant. Vendor
training will also occur in conjunction with this training. The specific
schedule, attendees and training detail will be provided as Plant start up
date
is determined.
Such
personnel of OWNER will have the opportunity to operate the ethanol plant under
the supervision of operators of DESIGN/BUILDER . It is anticipated that
personnel participating in such training will include the plant manager,
laboratory manager and shift supervisors who will work at the Plant for a period
of 1-3 weeks. DESIGN/BUILDER will not charge any fee to OWNER for this startup
training and DESIGN/BUILDER will provide all training materials. Expenses for
OWNER’s employees such as travel, salaries, rooms and meals of the participants
will be the responsibility of OWNER.
Exhibit
H
to
Agreement
Between Owner and Design/Builder
On
the Basis of a Stipulated Price
INSURANCE
DESIGN/BUILDER’S
Employers’ Liability, Business Automobile Liability, and Commercial General
Liability policies, as required in General Conditions paragraph 5.02 shall
be
written with at least the following limits of liability:
1. Employers’
Liability Insurance
a.
$1,000,000
Bodily
Injury by Accident
Each
Accident
b. |
$1,000,000
|
Bodily
Injury by Disease
Policy
Limit
c. |
$1,000,000
|
Bodily
Injury by Disease
Each
Employee
2. Business
Automobile Liability Insurance
a. |
$1,000,000
|
Each
Accident
3. Commercial
General Liability Insurance
a.
$1,000,000
Each
Occurrence
b. |
$2,000,000
|
General
Aggregate
c. |
$2,000,000
|
Products/Completed
Operations
Aggregate
d. |
$1,000,000
|
Personal
and Advertising
Injury
Limit
4. Liability
Umbrella policy: $4,000,000 (in addition to the underlying limits).
5. Professional
Errors & Omissions policy. $1,000,000 per policy year.
Exhibit
I
to
Agreement
Between Owner and Design/Builder
On
the Basis of a Stipulated Price
Equipment
Warranty:
The
warranty for Plant production rates, product quality, efficiencies and emissions
standards is covered in Exhibit A. This Exhibit I specifically defines
DESIGN/BUILDER’s operating warranty for Plant equipment inside the battery
limit.
DESIGN/BUILDER
reserves the right at its own discretion, to void any and all warranty if the
operation of the Plant and/or its subsystems, exceeds nameplate capacity by
five
percent (5%) or more.
DESIGN/BUILDER
is OWNER’s first point of contact for any claim of warranty by OWNER against
DESIGN/BUILDER concerning Plant equipment, during the warranty period.
The
cost
of labor performed by vendors other than DESIGN/BUILDER to settle a warranty
claim situation, without written permission from DESIGN/BUILDER, will not be
covered under any warranty expressed or implied by DESIGN/BUILDER.
What
is
furnished under the warranty:
The
warranty will furnish replacement consumables and parts covered under the
warranty. Labor will only be furnished by DESIGN/BUILDER to repair items
warranted for workmanship and originally designed and built by
DESIGN/BUILDER.
What
is
covered by the warranty:
Workmanship
and materials on all plant equipment including pumps, instruments, controls,
DCS, switchgear, wiring, conveyors, gearboxes, auger flighting, valves 2” size
and above, valve actuators, tanks, vessels, air compressors, boilers, cooling
towers, motors, couplers, belts, sheaves, chains, sprockets, heat exchangers,
agitators, centrifuges, fans, blowers, Hvac units, and other related
equipment.
Warranty
will cover failures of seals for lack of coolant flush during the seven (7)
day
performance test described in Exhibit A.
Warranty
will cover failure of seals and couplers caused by misalignment during the
seven
(7) day performance test described in Exhibit A.
Warranty
will cover failure of pump seals caused by product misapplication.
Warranty
will cover labor and parts to repair all leakage from pipes, exchangers and
valves during the seven (7) day performance test described in Exhibit
A.
Page
1 of 3
What
is
not covered by the warranty:
Warranty
does not cover damage to process equipment of any kind, from, improper
maintenance, improper operation, operator negligence or abuse.
Warranty
does not cover catastrophic failures of the critical path equipment by chain
reaction, from improper operation, abuse or neglect of other equipment or
procedures in the process equipment critical path and/or acts of God, whether
upstream or downstream.
Warranty
does not cover damage caused by customer modification of equipment included
in
the warranty list during the warranty period, without the written consent of
DESIGN/BUILDER.
Warranty
does not cover pipe gaskets, sight glasses, valves under 2” in size, door knobs,
walk in doors and closers, pipe and border painting, man-way gaskets,
countertops and window glasses after the seven (7) day performance test
described in Exhibit A.
Warranty
does not cover pump seals, pump motors and bearings that fail for lack of
coolant flush after the seven (7) day performance test described in Exhibit
A.
Warranty
does not cover pump seals or couplers after the seven (7) day performance test
described in Exhibit A that fail from misalignment.
Warranty
will not cover failure of any size valve when failure is determined to be a
result of owner welding on or near the valve.
Warranty
will not cover failure of any equipment due to improper grounding of welding
equipment.
Warranty
will not cover any equipment damaged by lightning strikes, power surges, power
outages or poor quality power from the electricity supplier.
Warranty
will not cover leaking plate and frame exchangers after the seven (7) day
performance test described in Exhibit A.
Procedure
for warranty claim:
DESIGN/BUILDER
does not expect OWNER to remain out of service with equipment that has failed
during the warranty period while trying to settle the warranty claim. Whether
covered by warranty or not the plant must operate.
Consumable
items such as motors, gearboxes, seals, switchgear and similar equipment should
be replaced and the damaged unit returned to DESIGN/BUILDER or made available
for inspection by DESIGN/BUILDER. DESIGN/BUILDER reserves the right to return
the item to the manufacturer for evaluation before settling a warranty issue.
Failure
to return or produce for inspection the damaged parts or equipment will void
any
warranty expressed or implied.
1. |
The
first step by OWNER to satisfy a warranty question is to call
DESIGN/BUILDER’s project manager (or the delegated alternate) and notify
that person of the claim. Provide the following
information:
|
A. |
Item
nomenclature
|
Page
2 of 3
B. |
Equipment
or part number
|
C. |
Description
of failure
|
D. |
Corrective
action taken
|
E. |
Location
and disposition of failed item
|
2. |
Fill
out the electronic form provided by DESIGN/BUILDER and send the form
by
mail or email to the Project manager or his
designate.
|
3. |
Project
manager or delegate will respond within one (1) working day to acknowledge
the claim and documentation, by phone and follow up with
email.
|
4. |
Determination
of settlement will be made in forty-five (45) days or less by
DESIGN/BUILDER. If conflict arises from the determination between
OWNER
and DESIGN/BUILDER, such conflict will be resolved under the dispute
resolution procedure set forth in Article 15 of the General Conditions.
|
Warranty
Period:
The
warranty period is the
twelve (12) month period commencing on the date of Substantial
Completion and
ending on the date that is 12 months immediately thereafter. In order for OWNER
to make a warranty claim the deficiency must be discovered, and OWNER must
notify DESIGN/BUILDER in writing of such deficiency within this warranty
period.
Page
3 of 3
Exhibit
J
to
Agreement
Between Owner and Design/Builder
On
the Basis of a Stipulated Price
[Form
of
Application for Payment]
Exhibit
K
to
Agreement
Between Owner and Design/Builder
On
the Basis of a Stipulated Price
[Preliminary
progress schedule under paragraph 2.03 of the General Conditions]
***
Exhibit
L
to
Agreement
Between Owner and Design/Builder
On
the Basis of a Stipulated Price
[Preliminary
Schedule of Values under paragraph 2.03 of the General Conditions]
***
Exhibit
M
to
Agreement
Between Owner and Design/Builder
On
the Basis of a Stipulated Price
[Form
of
Notice to Proceed]
(Plant
Name)
(Date)
(Project
Manager Name)
ICM,
INC.
000
X.
Xxxxx Xxxxxx
Xxxxxxx,
XX 00000
(Phone
Number)
Re:
Notice to Proceed
Dear
(Project
Manager):
This
letter will serve as authorization and Notice to Proceed for ICM, Inc. with
regards to the construction of (Plant
Name) LLC
ethanol plant in (City
and State)
in
accordance with the Design/Build contract dated (Insert Contract Date), in
place
with ICM, INC.
Pursuant
to Article 2.01A of the Agreement, the project will be completed within
(Number
of Calendar days in contract)
days
after the date when the Contract Times commence to run as set forth in
subparagraph 1.01A.11 of the General Conditions. Contract time will commence
at
such time when Owner delivers to Design/Builder the Notice to Proceed, signed
Contract Documents, Down Payment, air permit for the project, all necessary
underground utilities are installed, all fill material is placed, and a level,
buildable site is delivered to the Design/Builder as required in Exhibit E
of
the Contract.
Signature:
___________________
Printed
Name: _________________
Its:
(Company
Name)
(Date)
GENERAL
CONDITIONS OF THE
CONTRACT
BETWEEN
OWNER
AND DESIGN/BUILDER
ARTICLE
1—DEFINITIONS
1.01 Defined
Terms
A. Wherever
used in these General Conditions or in the other Contract Documents the
following terms have the meanings indicated which are applicable to both the
singular and plural thereof:
1. Agreement—The
Agreement Between Owner and Design/Builder on the Basis of a Stipulated Price
covering the Work. Other Contract Documents are incorporated into the Agreement
and made a part thereof as provided therein.
2. Application
for Payment—The
form
that is substantially similar to Exhibit J which is to be used by DESIGN/BUILDER
in requesting progress or final payments and which is to be accompanied by
such
supporting documentation as is required by the Contract Documents.
3. Asbestos—Any
material that contains more than one percent (1%) asbestos and is friable or
is
releasing asbestos fibers into the air above current action levels established
by the United States Occupational Safety and Health Administration.
4. Bond—Performance
or payment bond or other instrument of security.
5. Change
Order—A
written
order which is signed by DESIGN/BUILDER and OWNER which authorizes an addition,
deletion or revision in the Work, or an adjustment in the Contract Price or
the
Contract Times, issued on or after the Effective Date of the
Agreement.
6. Construction—The
performing or furnishing of labor, the furnishing and incorporating of materials
and equipment into the Work and the furnishing of services (other than Design
Professional Services) and documents, all as required by the Contract Documents.
Construction includes the materials and equipment incorporated into the
Project.
7. Construction
Subagreement—A
written
agreement between DESIGN/BUILDER and a construction contractor for provision
of
Construction.
8. Contract
Documents—The
Agreement and related exhibits, the Notice to Proceed, these General Conditions,
the Specifications and the Drawings together with all Change Orders, and Written
Amendments, issued on or after the Effective Date of the Agreement.
9. Contract
Price—The
moneys payable by OWNER to DESIGN/BUILDER for completion of the Work in
accordance with the Contract Documents.
10. Contract
Times—The
number of days or the dates stated in the Agreement (i) to achieve Substantial
Completion, and (ii) to complete the Work so that it is ready for final payment
in accordance with paragraph 13.08.
11. defective—An
adjective which when modifying the term Construction refers to Construction
that
is unsatisfactory, faulty or deficient, in that it does not conform to the
Contract Documents, or does not meet the requirements of any inspection,
reference standard, test or approval referred to in the Contract Documents,
or
has been damaged prior to OWNER's final payment.
1
12. DESIGN/BUILDER—ICM,
Inc., a Kansas corporation.
13. Design
Subagreement—A
written
agreement between DESIGN/BUILDER and a design professional for provision of
Design Professional Services.
14. Design
Professional Services—Services
provided by or for licensed design professionals during Construction, or
operational phases of the Project, including the development of drawings,
Specifications, and other design submittals specified by the Contract Documents
and required to be performed by licensed design professionals.
15. Drawings—Those
portions of the Contract Documents prepared by or for DESIGN/BUILDER and
approved by OWNER consisting of drawings, diagrams, illustrations, schedules
and
other data which show the scope, extent, and character of the Work.
16. Effective
Date of the Agreement—The
date
indicated in the Agreement on which it becomes effective, but if no such date
is
indicated it means the date on which the Agreement is signed and delivered
by
the last of the two parties to sign and deliver.
17. Engineer—A
duly
licensed individual or entity designated by DESIGN/BUILDER to perform or furnish
specified Design Professional Services in connection with the Work.
18. Hazardous
Condition—The
presence at the Site of Asbestos, Hazardous Waste, PCB's, Petroleum Products
or
Radioactive Materials in such quantities or circumstances that there is a danger
to persons or property.
19. Hazardous
Waste—The
term
Hazardous Waste shall have the meaning provided in Section 1004 of the Solid
Waste Disposal Act (42 USC Section 6903).
20. Laws
and Regulations; Laws or Regulations—Any
and
all applicable laws, rules, regulations, ordinances, codes, permits, and orders
of any and all governmental bodies, agencies, authorities and courts having
jurisdiction.
21. Liens—Charges,
security interests or encumbrances upon real property or personal
property.
22. Notice
to Proceed—A
written
notice given by OWNER to DESIGN/BUILDER fixing the date on which the Contract
Times will commence to run in accordance with paragraph 2.01.
23. OWNER—The
public body, or authority, individual or entity with whom DESIGN/BUILDER has
entered into the Agreement and for whom the Work is to be provided.
24. PCBs—Polychlorinated
biphenyls.
25. Petroleum—Petroleum,
including crude oil or any fraction thereof which is liquid at standard
conditions of temperature and pressure (60 degrees Fahrenheit and 14.7 pounds
per square inch absolute), such as oil, petroleum, fuel oil, oil sludge, oil
refuse, gasoline, kerosene, and oil mixed with other non-Hazardous Wastes and
crude oils.
2
26. Project—The
Construction to be provided under the Contract Documents as provided in
paragraph 1.01 of the Agreement.
27. Punch
List Items— The
miscellaneous items in the scope of the Project that are not required for the
Project to be operational and that remain to be completed by DESIGN/BUILDER
after Substantial Completion and before Final Completion.
28. Radioactive
Material—Source,
special nuclear, or byproduct material as defined by the Atomic Energy Act
of
1954 (42 USC Section 2011 et seq.) as amended from time to time.
29. Schedule
of Values—A
schedule prepared by DESIGN/BUILDER indicating that portion of the Contract
Price to be paid for each major component of the Work.
30. Site—Lands
or
other areas designated in the Contract Documents as being furnished by OWNER
for
the performance of the Construction, storage, or access.
31. Specifications—Those
portions of the Contract Documents prepared by or for DESIGN/BUILDER and
approved by OWNER consisting of written technical descriptions of materials,
equipment, construction systems, standards and workmanship as
applied to the Construction and certain administrative details applicable
thereto.
32. Subcontractor—An
individual or entity other than a Supplier or Engineer having a direct contract
with DESIGN/BUILDER or with any other Subcontractor for the performance of
a
part of the Work.
33. Substantial
Completion—The
time
at which the Construction (or a specified part) has progressed to the point
where it is sufficiently complete, in accordance with the Contract Documents,
so
that corn can be ground and the ethanol commercial production process may
begin.. The terms “substantially complete” and “substantially completed” as
applied to the Construction refer to Substantial Completion of Construction.
34. Supplier—A
manufacturer, fabricator, supplier, distributor, materialman or vendor having
a
direct contract with DESIGN/BUILDER or with any Subcontractor to furnish
materials or equipment to be incorporated in the Work by DESIGN/BUILDER or
any
Subcontractor.
35. Work—The
entire completed construction or the various separately identifiable parts
thereof required to be performed or furnished under the Contract Documents.
Work
includes and is the result of performing or furnishing Design Professional
Services and Construction required by the Contract Documents.
36. Written
Amendment—A
written
amendment of the Contract Documents, signed by OWNER and DESIGN/BUILDER on
or
after the Effective Date of the Agreement.
3
ARTICLE
2—PRELIMINARY MATTERS
2.01 Commencement
of Contract Times; Notice to Proceed
A. The
Contract Times will commence to run on May 1, 2007 or the day the DESIGN/BUILDER
first pours concrete, whichever comes first; provided,
however, in no case shall the Contract Times commence to run before the later
of
the date (i) Notice to Proceed is delivered pursuant to paragraph 8.07 of the
Agreement, (ii) the entire amount of the down payment is paid pursuant to
paragraph 4.01A of the Agreement, (iii) all necessary underground utilities
have
been installed at the Site, and (iv) all fill material is placed and a level,
buildable Site is delivered to DESIGN/BUILDER. A Notice to Proceed may be given
at any time within the period of time set forth in Section 8.07 of the
Agreement.
2.02 Starting
the Work
A. DESIGN/BUILDER
shall start to perform the Work on the date when the Contract Times commence
to
run.
2.03 Preliminary
Schedules and Proof of Insurance
A. A
preliminary progress schedule indicating the times (number of days or dates)
for
starting and completing the various stages in the design and construction of
the
Work is attached as Exhibit K. A preliminary Schedule of Values for all of
the
Work, which includes quantities and prices of items aggregating the Contract
Price, subdivides the Work into component parts to serve as the basis for
progress payments during performance of the Work and includes a pro rata amount
of overhead and profit applicable to each item of Work is attached hereto as
Exhibit L.
B. Before
any Work is started, DESIGN/BUILDER and OWNER shall each deliver to the other,
with copies to each additional insured, certificates of insurance (and other
evidence of insurance which either of them or any additional insured may
reasonably request) which DESIGN/BUILDER and OWNER respectively are required
to purchase and maintain in accordance with paragraphs 5.02.A, 5.04.A and
5.04.B.
ARTICLE
3--CONTRACT DOCUMENTS: INTENT, AMENDING, REUSE
3.01 Intent
A. The
Contract Documents comprise the entire agreement between OWNER and
DESIGN/BUILDER concerning the Work. The Contract Documents are complementary;
what is called for by one is as binding as if called for by all. The Contract
Documents will be construed in accordance with the laws of the State of Kansas.
Except as otherwise required by applicable Laws and Regulations, the Contract
Documents shall govern the obligations of the parties regarding the Work and
Project.
B. It
is the
intent of the Contract Documents to describe a functionally complete Project
to
be designed and constructed in accordance with the Contract Documents. Any
Work,
materials or equipment that may reasonably be inferred from the Contract
Documents or from prevailing custom or trade usage as being required to produce
the intended result will be furnished and performed whether or not specifically
called for. When words or phrases which have a well-known technical or
construction industry or trade meaning are used to describe work, materials
or
equipment, such words or phrases shall be interpreted in accordance with that
meaning.
4
3.02 References
A. Reference
to standards, specifications, manuals or codes of any technical society,
organization or association, or to the Laws or Regulations of any governmental
authority, whether such reference be specific or by implication, shall mean
the
latest standard, specification, manual, code or Laws or Regulations in effect
on
the Effective Date of the Agreement except as may be otherwise specifically
stated in the Contract Documents.
B. No
provision of any standard, specification, manual, code or instruction shall
be
effective to change the duties and responsibilities of OWNER, DESIGN/BUILDER
or
any of their subcontractors, consultants, agents, or employees from those set
forth in the Contract Documents, nor shall it be effective to assign to OWNER
any duty or authority to supervise or direct the furnishing or performance
of
the Work or any duty or authority to undertake responsibility inconsistent
with
the provisions of Article 8 or any other provision of the Contract
Documents.
C.
Title
headings contained in the Contract Documents are for convenience and reference
only and are not to be construed as limiting or extending the meaning of any
of
its provisions. All dollar figures shall mean the lawful currency of the United
States of America, unless expressly stated otherwise. Words importing the
singular, include the plural, and vice versa. Words importing the masculine
gender, include the feminine and neuter, and vice versa. Words importing
persons, include firms or corporations, and vice versa, as the context or
reference requires. Any and all measurements including, but not limited to,
dimensions, calculations, volumes and weights shall be in U.S. units of
measurement.
3.03 Amending
and Supplementing Contract Documents
A. The
Contract Documents may be amended to provide for additions, deletions and
revisions in the Work or to modify the terms and conditions thereof in one
or
more of the following ways:
1. A
Change
Order; or
2. A
formal
Written Amendment.
3.04 Reuse
of Documents
A. All
documents including Drawings and Specifications prepared or furnished by
DESIGN/BUILDER pursuant to the Contract Documents are instruments of service
in
respect of the Project and DESIGN/BUILDER shall retain an ownership and property
interest therein whether or not the Project is completed. OWNER may make and
retain copies for information and reference in connection with the use and
occupancy of the Project by OWNER and others; however, such documents are not
intended or represented to be suitable for reuse by OWNER or others on
extensions of the Project or on any other project. Any reuse without written
verification or adaptation by DESIGN/BUILDER for the specific purpose intended
will be at OWNER's sole risk and without liability or legal exposure to
DESIGN/BUILDER, and OWNER shall indemnify and hold harmless DESIGN/BUILDER,
Subcontractors, and Engineer from all claims, damages, losses and expenses
including attorneys' fees arising out of or resulting therefrom. Any such
verification or adaptation will entitle DESIGN/BUILDER to further compensation
at rates to be agreed upon by OWNER and DESIGN/BUILDER.
5
B. All
documents including Drawings and Specifications prepared or furnished by
DESIGN/BUILDER pursuant to the Contract Documents are also subject to the use
and disclosure restrictions set forth in the License Agreement attached to
the
Agreement as Exhibit F. The parties shall execute and deliver such License
Agreement in connection with the execution and delivery of the Agreement.
Nothing contained in paragraph 3.04.A. shall be construed or interpreted as
granting OWNER any rights or interest in the Proprietary Property of
DESIGN/BUILDER (as defined in Exhibit F) except as provided in Exhibit F
attached to the Agreement.
ARTICLE
4—AVAILABILITY OF LANDS; DIFFERING SITE CONDITIONS; REFERENCE POINTS; HAZARDOUS
CONDITIONS
4.01 Availability
of Lands
A. OWNER
shall furnish the Site upon which the Construction is to be performed, and
rights-of-way and easements for access thereto.
B. Upon
reasonable written request, OWNER shall furnish DESIGN/BUILDER with a correct
statement of record legal title and legal description of the Site upon which
the
Construction is to be performed and OWNER's interest therein. OWNER shall
identify any encumbrances or restrictions not of general application but
specifically related to use of the Site so furnished with which DESIGN/BUILDER
will have to comply in performing the Work. Any and all easements necessary
for
the Work will be obtained and paid for by OWNER.
C. OWNER
shall provide such lands and access thereto that may be reasonably required
by
DESIGN/BUILDER for temporary construction facilities or storage of materials
and
equipment.
4.02 Differing
Site Conditions
A. DESIGN/BUILDER
shall promptly, and before the conditions are disturbed, give a written notice
to OWNER of (i) subsurface or latent physical conditions at the Site which
differ materially from those indicated in the OWNER’s geotechnical report for
the Project site or the land and grading specifications listed in Exhibit E,
or
(ii) unknown physical conditions at the Site, of an unusual nature, which differ
materially from those ordinarily encountered and generally recognized as
inhering in work of the character called for by the Contract
Documents.
B. OWNER
will investigate the site conditions promptly after receiving the notice. If
the
conditions do materially so differ and cause an increase in the DESIGN/BUILDER's
cost of or time in performing any part of the Work, an equitable adjustment
shall be made under this clause and the Contract Times and/or Contract Price
modified in writing by Change Order in accordance with Article 9.
C. No
request by DESIGN/BUILDER for an equitable adjustment under this paragraph
4.02
shall be allowed unless DESIGN/BUILDER has given the written notice required;
provided that the time prescribed in paragraph 9.02.A for giving written notice
may be extended by OWNER.
4.03 Reference
Points
A. DESIGN/BUILDER
shall be responsible for laying out the Construction and shall protect and
preserve the reference points established by OWNER pursuant to paragraph
8.01.A.6.e and shall make no changes or relocations without the prior written
approval of OWNER. DESIGN/BUILDER shall report to OWNER whenever any reference
point or property monument is lost or destroyed or requires relocation because
of necessary changes in grades or locations, and shall be responsible for the
accurate replacement or relocation of such reference points or property
monuments by professionally qualified personnel.
6
4.04 Hazardous
Conditions
A. OWNER
represents and warrants that there is no Hazardous Condition or materials that
could create a Hazardous Condition existing at the Site as of the Effective
Date
of the Agreement that has not been disclosed in writing to DESIGN/BUILDER and
that OWNER or OWNER’s officers, directors, employees, agents, other consultants
or subcontractors shall not bring to the Site during the term of the Agreement
any materials creating a Hazardous Condition. OWNER
will be responsible for any Hazardous Condition encountered at the Site which
was not identified in the Contract Documents to be within the scope of the
Work.
OWNER shall not be responsible for materials creating a Hazardous Condition
brought to the Site by DESIGN/BUILDER, Subcontractors, Suppliers or anyone
else
for whom DESIGN/BUILDER is responsible.
B. DESIGN/BUILDER
and any affected Subcontractor shall immediately (i) stop all Construction
in
connection with such Hazardous Condition and in any area affected thereby
(except in an emergency as required by paragraph 6.15), and (ii) notify OWNER
(and thereafter confirm such notice in writing). OWNER shall promptly determine
the necessity of retaining a qualified expert to evaluate such Hazardous
Condition or take corrective action, if any. DESIGN/BUILDER shall not be
required to resume Construction in connection with such Hazardous Condition
or
in any such affected area until after OWNER has obtained any required permits
related thereto and delivered to DESIGN/BUILDER special written notice (i)
specifying that such Hazardous Condition and any affected area is or has been
rendered safe for the resumption of Construction, or (ii) specifying any special
conditions under which such Construction may be resumed safely. If OWNER and
DESIGN/BUILDER cannot agree as to entitlement to or the amount or
extent of
an
adjustment, if any, in the Contract Times and/or Contract Price as a result
of
such Construction stoppage or such special conditions under which Construction
is agreed by DESIGN/BUILDER to be resumed, either party may make a claim
therefor as provided in Article 9.
C. To
the
fullest extent permitted by Laws and Regulations, OWNER shall indemnify and
hold
harmless DESIGN/BUILDER, Subcontractors, Suppliers, Engineers and the officers,
directors, employees, agents, other consultants and subcontractors of each
and
any of them from and against all claims, costs, losses and damages (including
but not limited to all reasonable fees and charges of engineers, architects,
attorneys and other professionals and all court or arbitration or other dispute
resolution costs) arising out of or resulting from such Hazardous Condition.
Nothing in this paragraph 4.04.C shall obligate OWNER to indemnify any
individual or any entity, including DESIGN/BUILDER, from and against the
consequences of that individual's or entity's own negligence or willful
misconduct. OWNER shall not be obligated to indemnify or hold harmless
DESIGN/BUILDER, Subcontractors, Suppliers or any other individual or any entity
for any such claim, cost, loss or damage arising out of or resulting from
materials creating a Hazardous Condition brought to the Site by DESIGN/BUILDER,
Subcontractors, Suppliers or any other party for whom DESIGN/BUILDER is
responsible.
ARTICLE
5—BONDS AND INSURANCE
5.01 Performance,
Payment or Other Bond
A. DESIGN/BUILDER
shall not be required to furnish a performance, payment or any other
Bond.
5.02 DESIGN/BUILDER's
Liability Insurance
A. DESIGN/BUILDER
shall purchase and maintain such Commercial General Liability (subject to
customary exclusions in respect of professional liability), Automobile Liability
and Worker's Compensation insurance as is appropriate for the Work being
performed and furnished and as will provide protection from claims set forth
below which may arise out of or result from DESIGN/BUILDER's performance and
furnishing of the Work and DESIGN/BUILDER's other obligations under the Contract
Documents, whether it is to be performed or furnished by DESIGN/BUILDER, any
Subcontractor or Supplier, or by anyone directly or indirectly employed by
any
of them to perform or furnish any of the Work, or by anyone for whose acts
any
of them may be liable:
1. Claims
under workers' compensation, disability benefits and other similar employee
benefit acts;
7
2. Claims
for damages because of bodily injury, occupational sickness or disease, or
death
of DESIGN/BUILDER's employees;
3. Claims
for damages because of bodily injury, sickness or disease, or death of any
person other than DESIGN/BUILDER's employees;
4. Claims
for damages insured by customary personal injury liability coverage which are
sustained (i) by any person as a result of an offense directly or indirectly
related to the
employment of such person by DESIGN/BUILDER, or (ii) by any other person for
any
other reason;
5. Claims
for damages, other than to the Work itself, because of injury to or destruction
of tangible property wherever located other than claims under paragraph
5.02.A.7. below, including loss of use resulting therefrom;
6. Claims
for damages because of bodily injury or death of any person or property damage
arising out of the ownership, maintenance or use of any motor vehicle;
and
7. Claims
for professional errors and omissions arising from the Design Professional
Services provided for the Project.
B.
|
The
policies of insurance required by paragraph 5.02.A
shall:
|
1. With
respect to insurance required by paragraphs 5.02.A.3 through 5.02.A.6 inclusive,
include as additional insureds OWNER and any other persons or entities
identified in writing by OWNER, all of whom shall be listed as additional
insureds, and include coverage for the respective officers and employees of
all
such additional insureds;
2. Include
at least the specific coverages and be written for not less than the limits
of
liability set forth in Exhibit H or required by Laws or Regulations, whichever
is greater;
3. Include
completed operations insurance;
4. Include
contractual liability insurance covering DESIGN/BUILDER's indemnity obligations
under paragraphs 6.10 and 6.18;
5. Contain
a
provision or endorsement that the coverage afforded will not be cancelled,
materially changed or renewal refused until at least thirty (30) days prior
written notice has been given to OWNER and each other additional insured to
whom
a certificate of insurance has been issued (and the certificates of insurance
furnished by DESIGN/BUILDER pursuant to paragraph 5.08.B will so
provide);
6. Remain
in
effect at least until final payment and at all times thereafter when
DESIGN/BUILDER may be correcting, removing or replacing defective
Construction in accordance with paragraphs 12.06 and 12.07;
8
7. With
respect to completed operations insurance, remain in effect for at least one
year after final payment (and DESIGN/BUILDER shall furnish OWNER and each other
additional insured to whom a certificate of insurance has been issued evidence
satisfactory to OWNER and any such additional insured of continuation of such
insurance at final payment); and
8. DESIGN/BUILDER
shall maintain in effect all insurance coverage required under this paragraph
at
DESIGN/BUILDER’S sole expense with insurance companies (and policies) approved
by OWNER. If DESIGN/BUILDER fails to obtain or maintain any insurance coverage
required under this Agreement, the OWNER may purchase such
coverage and charge the expense to DESIGN/BUILDER, or terminate this Agreement
for cause in accordance with paragraph 14.02 below.
5.03 OWNER's
Liability Insurance
A. In
addition to the insurance required to be provided by DESIGN/BUILDER under
paragraph 5.02, OWNER, at OWNER's option, may purchase and maintain at OWNER's
expense OWNER's own liability insurance as will protect OWNER against claims
which may arise from operations under the Contract Documents.
5.04 Property
Insurance
A.
OWNER
shall purchase and maintain property insurance upon the Construction at the
Site
in the amount of the full replacement cost thereof at OWNER’s sole expense with
insurance companies (and policies) approved by DESIGN/BUILDER. This insurance
will:
1. Include
the interests of OWNER, DESIGN/BUILDER, Subcontractors, and any other persons
or
entities listed as an insured or additional insured;
2. Be
written on a Builder's Risk "all-risk" or equivalent policy form that shall
at
least include insurance for physical loss and damage to the Construction,
temporary buildings, falsework and all materials and equipment in transit,
and
shall insure against at least the following perils or causes of loss: fire,
lightning, extended coverage, theft, vandalism and malicious mischief,
earthquake, collapse, debris removal, demolition occasioned by enforcement
of
Laws and Regulations, water damage, flood, system testing, and such other perils
or causes of loss as may be agreed in writing by DESIGN/BUILDER and
OWNER;
3. Include
expenses incurred in the repair or replacement of any insured property
(including but not limited to fees and charges of engineers and
architects);
4. Cover
materials and equipment stored at the Site or at another location that was
agreed to in writing by OWNER prior to being incorporated in the Construction,
provided that such materials and equipment have been included in an Application
for Payment approved by OWNER;
5. Be
maintained in effect until final payment is made unless otherwise agreed to
in
writing by OWNER and DESIGN/BUILDER with thirty (30) days written notice to
each
other additional insured to whom a certificate of insurance has been issued;
and
B. OWNER
shall purchase and maintain such boiler and machinery insurance or additional
property insurance as DESIGN/BUILDER may reasonably require or required by
Laws
and Regulations which will include the interests of OWNER, DESIGN/BUILDER,
Subcontractors, and other individuals and entities listed as an insured or
additional insured.
9
C. All
the
policies of insurance (and the certificates or other evidence thereof) required
to be purchased and maintained by OWNER in accordance with paragraph 5.04 will
contain a provision or endorsement that the coverage afforded will not be
cancelled or materially changed or renewal refused until at least thirty (30)
days prior written notice has been given to DESIGN/BUILDER and to each other
additional insured to whom a certificate of insurance has been issued.
D. OWNER
shall not be responsible for purchasing and maintaining any property insurance
to protect the interests of DESIGN/BUILDER, Subcontractors, Suppliers, Engineers
or others in the Work to the extent of the deductible amounts. The risk of
loss
within such deductible amounts will be borne by the party at fault for such
loss
and if DESIGN/BUILDER, Subcontractor or others wishes property insurance
coverage within the limits of such deductible amount, each may purchase and
maintain it at it's own expense.
E. If
DESIGN/BUILDER requests in writing that other special insurance be included
in
the property insurance policies provided under paragraph 5.04, OWNER shall,
if
possible, include such insurance, and the cost thereof will be charged to
DESIGN/BUILDER by appropriate Change Order or Written Amendment. Prior to
commencement of the Work at the Site, OWNER shall in writing advise
DESIGN/BUILDER whether or not such other insurance has been procured by
OWNER.
5.05 Waiver
of Subrogation Rights
A. OWNER
and
DESIGN/BUILDER intend that all policies purchased in accordance with paragraph
5.04 will protect OWNER, DESIGN/BUILDER, Engineers, Subcontractors, others
who
may have a financial interest in the Project, and all other individuals or
entities listed as insureds or additional insureds in such policies and will
provide primary coverage for all losses and damages caused by the perils or
causes of loss covered thereby. All such policies shall contain provisions
to
the effect that in the event of payment of any loss or damage the insurers
will
have no rights of recovery against any of the insureds or additional insureds
thereunder. Each party waives all rights against the other party and its
officers, directors, employees, members, and agents for all losses and damages
caused by, arising out of or resulting from any of the perils or causes of
loss
covered by such policies and any other property insurance applicable to the
Work.
5.06 Receipt
and Application of Proceeds
A. Any
insured loss under the policies of insurance required by paragraph 5.04 will
be
adjusted with OWNER and made payable to OWNER as fiduciary for the benefit
of
insureds, as their interests may appear, subject to the requirements of
paragraph 5.06.B. OWNER shall deposit in a separate account any money so
received, and shall distribute it in accordance with such agreement as the
parties in interest may reach. If no other special agreement is reached the
damaged Work shall be repaired or replaced, the moneys so received applied
on
account thereof and the Work and the cost thereof covered by an appropriate
Change Order or Written Amendment.
B. OWNER
as
fiduciary shall have power to adjust and settle any loss with the insurers
unless one of the parties in interest shall object in writing within fifteen
(15) days after the occurrence of loss to OWNER's exercise of this power. If
such objection be made, OWNER as fiduciary shall make settlement with the
insurers in accordance with such agreement as the parties in interest may reach.
If no such agreement among the parties in interest is reached, OWNER as
fiduciary shall adjust and settle the loss with the insurers
and, if
required in writing by any party in interest, OWNER as fiduciary shall give
Bond
for the proper performance of such duties.
10
5.07 Acceptance
of Insurance; Option to Replace
A. If
either
party has any objection to the coverage afforded by or other provisions of
the
insurance required to be purchased and maintained by the other party in
accordance with this Article 5 on the basis of the other party not
complying with the Contract Documents, the objecting party shall so notify
the
other party in writing within thirty (30) days after receipt of the certificates
(or other evidence requested) required by paragraph 2.03.B. OWNER and
DESIGN/BUILDER shall each provide to the other such additional information
in
respect of insurance provided as the other may reasonably request. If either
party does not purchase or maintain all of the insurance required of such party
by the Contract Documents, such party shall notify the other party in writing
of
such failure to purchase prior to the start of the Work, or of such failure
to
maintain prior to any change in the required coverage. Without prejudice to
any
other right or remedy, the other party may elect to obtain equivalent insurance
to protect such other party's interests at the expense of the party who was
supposed to provide such coverage, and a Change Order or Written Amendment
shall
be issued to adjust the Contract Price accordingly.
5.08 Licensed
Sureties and Insurers; Certificates of Insurance
A. All
insurance required by the Contract Documents to be purchased and maintained
by
OWNER or DESIGN/BUILDER shall be obtained from insurance companies that are
duly
licensed or authorized in the jurisdiction in which the Project is located
to
issue insurance policies for the limits and coverages so required. Such
insurance companies shall also meet such additional requirements and
qualifications as may be agreed in writing by DESIGN/BUILDER and
OWNER.
ARTICLE
6—DESIGN/BUILDER'S RESPONSIBILITIES
6.01 Design
Professional Services
A. Standard
of Care: DESIGN/BUILDER
shall perform or furnish Design Professional Services and related services
in
all phases of the Project. The standard of care for all such services performed
or furnished under this Agreement will be the care and skill ordinarily used
by
members of the engineering profession practicing under similar conditions at
the
same time and locality.
B. Preliminary
Design Phase: During
the preliminary design phase, DESIGN/BUILDER shall:
1. Consult
with OWNER to understand OWNER's requirements for the Project and review
available data.
2. Advise
OWNER as to the necessity of OWNER providing or obtaining from others additional
reports, data or services of the types provided in paragraph 8.01.A.6.a-g and
assist OWNER in obtaining such reports, data, or services.
3. Identify
and analyze requirements of governmental authorities having jurisdiction to
approve the portions of the Project designed or specified by DESIGN/BUILDER
with
whom consultation is to be undertaken in connection with the
Project.
4. Obtain
such additional geotechnical and related information which it deems necessary
for performance of the Work.
11
C. Final
Design Phase: During
the final design phase, DESIGN/BUILDER shall:
1. Prepare
final Drawings showing the scope, extent, and character of the Construction
to
be performed and furnished by DESIGN/BUILDER and Specifications.
2. Provide
technical criteria, written descriptions and design data required for obtaining
approvals of such governmental authorities as have jurisdiction to review or
approve the final design of the Project, and assist OWNER in consultations
with
appropriate authorities.
D. Construction
Phase.
During
Construction, DESIGN/BUILDER shall provide Engineering and Design Professional
Services as necessary to complete the Project.
E. Operational
Phase: During
the operational phase, DESIGN/BUILDER shall:
1. Provide
assistance in connection with the start-up, testing, refining and adjusting
of
any equipment or system included in the Work.
2. Assist
OWNER in training staff to operate and maintain the Project as provided in
Exhibit G.
Other
than assistance normally provided in the industry after final payment, nothing
in this paragraph 6.01.E. shall be interpreted or construed as obligating
DESIGN/BUILDER to perform or provide such assistance to OWNER after final
payment and acceptance of the Work under paragraph 13.08 below.
6.02 Supervision
and Superintendence of Construction
A. DESIGN/BUILDER
shall supervise, inspect and direct the Construction competently and
efficiently, devoting such attention thereto and applying such skills and
expertise as may be necessary to provide the Construction in accordance with
the
Contract Documents. DESIGN/BUILDER shall be solely responsible for the means,
methods, techniques, sequences and procedures employed for the provision of
Construction. DESIGN/BUILDER shall be responsible to see that the completed
Construction complies accurately with the Contract Documents and shall keep
OWNER advised as to the quality and progress of the Construction.
B. DESIGN/BUILDER
shall keep on the Site at such times as DESIGN/BUILDER determines are reasonably
necessary to complete the Work a competent superintendent. The superintendent
will be DESIGN/BUILDER's representative at the Site and shall have authority
to
act on behalf of DESIGN/BUILDER.
6.03 Labor,
Materials and Equipment
A. DESIGN/BUILDER
shall provide competent, suitably qualified personnel to survey and lay out
the
Construction and perform Construction as required by the Contract Documents.
DESIGN/BUILDER shall at all times maintain good discipline and order at the
Site.
B. Unless
otherwise specified in the Contract Documents, DESIGN/BUILDER shall furnish
or
cause to be furnished and assume full responsibility for materials, equipment,
labor, transportation, construction equipment and machinery, tools, appliances,
fuel, heat, telephone, sanitary facilities, and all other facilities and
incidentals necessary for the furnishing, performance, testing, start-up
and
completion of the Work, excluding, specifically, power, light, water, temporary
facilities and all other items designated as OWNER’s responsibility.
DESIGN/BUILDER will direct the checkout of utilities and operations of systems
and equipment.
12
C. All
materials and equipment incorporated into the Work shall be of good quality
and
new. All warranties and guarantees specifically called for by the Contract
Documents shall expressly run to the benefit of OWNER. If reasonably required
by
OWNER, DESIGN/BUILDER shall furnish satisfactory evidence (including reports
of
required tests) as to the kind and quality of materials and equipment. All
materials and equipment shall be applied, installed, connected, erected, used,
cleaned and conditioned in accordance with instructions of the applicable
Supplier.
6.04 Progress
Schedule
A. DESIGN/BUILDER
shall adhere to the progress schedule discussed in paragraph 2.03.A as it may
be
adjusted from time to time.
1. DESIGN/BUILDER
shall submit to OWNER for acceptance proposed adjustments in the progress
schedule that will not change the Contract Times. Such adjustments will conform
generally to the progress schedule then in effect.
2. Proposed
adjustments in the progress schedule that will change the Contract Times shall
be submitted in accordance with the requirements of Article 11. Such adjustments
may only be made by a Change Order or Written Amendment.
6.05
Concerning Subcontractors, Suppliers and Others
A. DESIGN/BUILDER
shall not employ any Subcontractor, Engineer, Supplier or other individual
or
entity against whom OWNER may have reasonable objection. DESIGN/BUILDER shall
not be required to employ any Subcontractor, Engineer, Supplier or other
individual or entity to furnish or perform any of the Work against whom
DESIGN/BUILDER has reasonable objection.
B. DESIGN/BUILDER
shall be fully responsible to OWNER for all acts and omissions of the
Subcontractors, Engineers, Suppliers and other individuals or entities
performing or furnishing any of the Work under a direct or indirect contract
with DESIGN/BUILDER. Nothing in the Contract Documents shall create for the
benefit of any such Subcontractor, Engineer, Supplier or other individual or
entity any contractual relationship between OWNER and any such Subcontractor,
Engineer, Supplier or other individual or entity, nor shall it create any
obligation on the part of OWNER to pay or to see to the payment of any moneys
due any such Subcontractor, Engineer, Supplier or other individual or entity
except as may otherwise be required by Laws and Regulations.
C. DESIGN/BUILDER
shall be solely responsible for scheduling and coordinating Subcontractors,
Engineers, Suppliers and other individuals and entities performing or furnishing
any of the Work under a direct or indirect contract with DESIGN/BUILDER.
DESIGN/BUILDER shall require all Subcontractors, Engineers, Suppliers and such
other individuals and entities performing or furnishing any of the Work to
communicate with the OWNER through DESIGN/BUILDER.
D. All
services performed or provided to and material and equipment supplied to
DESIGN/BUILDER by a Subcontractor or Supplier will be pursuant to an appropriate
Design Subagreement or Construction Subagreement between DESIGN/BUILDER and
the
Subcontractor, Engineer or Supplier which specifically binds the Subcontractor,
Engineer or Supplier to the applicable terms and conditions of the Contract
Documents for the benefit of OWNER. Whenever any such agreement is with a
Subcontractor, Engineer or Supplier who is listed as an additional insured
on
the property insurance provided in paragraph 5.04.A or 5.04.B, the agreement
between the DESIGN/BUILDER and the Subcontractor, Engineer or Supplier will
contain provisions whereby the Subcontractor, Engineer or Supplier waives all
rights against OWNER, DESIGN/BUILDER, and all other additional insureds for
all
losses and damages caused by any of the perils or causes of loss covered by
such
policies and any other property insurance applicable to the Work. If the
insurers on any such policies require separate waiver forms to be signed by
any
Subcontractor, Engineer or Supplier, DESIGN/BUILDER will obtain the
same.
13
6.06 Patent
Fees and Royalties
A. DESIGN/BUILDER
shall pay all license fees and royalties and assume all costs incident to the
use in the performance of the Work or the incorporation in the Work of any
invention, design, process, product or device (other than any increased license
fees, royalties and costs arising out of or resulting from a Change Order)
which
is the subject of patent rights or copyrights held by others. To the fullest
extent permitted by Laws and Regulations, DESIGN/BUILDER shall indemnify and
hold harmless OWNER, from and against all claims, costs, losses and damages
(including but not limited to all reasonable fees and charges of engineers,
architects, attorneys and other professionals and all court or arbitration
or
other dispute resolution costs) arising out of or resulting from any infringement
of patent rights or copyrights incident
to the use in the performance of the Work or resulting from
the
incorporation in the Work of any invention, design, process, product or
device.
DESIGN/BUILDER
shall,
at its sole expense, have the right to defend against any such claim. OWNER
shall promptly notify DESIGN/BUILDER upon becoming aware of any such claim.
DESIGN/BUILDER, in order to avoid such claim, shall have the right at its sole
expense to substitute non-infringing invention, design, process, product or
device or to modify such infringing invention, design, process, product or
device so they become non-infringing, or to obtain at its sole expense the
necessary licenses to use the infringing invention, design, process, product
or
device provided that such substituted and modified invention, design, process,
product or device shall meet all the requirements of the Contract
Documents.
6.07 Permits
A. OWNER
shall obtain and pay for all necessary permits and licenses. DESIGN/BUILDER
shall assist OWNER, when necessary, in obtaining such permits and licenses.
OWNER shall pay all governmental charges and inspection fees necessary for
the
prosecution of the Construction. OWNER shall pay all charges of utility owners
for connections that are necessary for the Work, and OWNER shall pay all charges
of such utility owners for capital costs related thereto.
6.08 Laws
and Regulations
A. DESIGN/BUILDER
shall give all notices and comply with all Laws and Regulations of the place
of
the Project which are applicable to furnishing and performance of the Work.
OWNER shall not be responsible for monitoring DESIGN/BUILDER's compliance with
any Laws or Regulations.
B. If
DESIGN/BUILDER performs any Work knowing or having reason to know that it is
contrary to Laws or Regulations, DESIGN/BUILDER shall bear all costs arising
therefrom.
C. If
changes in Laws and Regulations after the Effective Date of the Agreement cause
an increase in the DESIGN/BUILDER’s cost of or time in performing any part of
the Work, DESIGN/BUILDER may make a claim under Article 9 for a modification
to
the Contract Times and/or Contract Price..
6.09 Taxes
A. OWNER
shall pay to DESIGN/BUILDER all sales, consumer, use, gross receipts and other
similar taxes which are applicable during the performance of the Work and are
either paid by DESIGN/BUILDER or are required to be reimbursed by DESIGN/BUILDER
to its Subcontractors, Suppliers, or Engineers.
14
6.10 Use
of Site and Other Areas
A. DESIGN/BUILDER
shall confine construction equipment, the storage of materials and equipment
and
the operations of construction workers to those lands and areas permitted by
the
OWNER and other land and areas permitted by Laws and Regulations, rights-of-way,
permits and easements, and shall not unreasonably encumber the premises with
construction equipment or other materials or equipment. DESIGN/BUILDER shall
be
responsible for any damage to any such land or area, or to the owner or occupant
thereof or of any adjacent land or areas, resulting from the performance of
the
Construction. Should any claim be made by any such owner or occupant because
of
the performance of the Construction, DESIGN/BUILDER shall promptly settle with
such other party by negotiation or otherwise resolve the claim by arbitration
or
other dispute resolution proceeding or at law. DESIGN/BUILDER shall, to the
fullest extent permitted by Laws and Regulations, indemnify and hold harmless
OWNER and anyone directly or indirectly employed by OWNER from and against
all
claims, costs, losses and damages (including, but not limited to, all reasonable
fees of engineers, architects, attorneys and other professionals and court
and
arbitration or other dispute resolution costs) arising out of or resulting
from
any claim or action, legal or equitable, brought by any such owner or occupant
against OWNER, or any other party indemnified hereunder to the extent caused
by
or based upon DESIGN/BUILDER's performance of the Construction.
B. During
the performance of the Construction, DESIGN/BUILDER shall keep the premises
free
from accumulations of waste materials, rubbish and other debris resulting from
the Construction. At the completion of the Construction, DESIGN/BUILDER shall
remove all waste materials, rubbish and debris from and about the premises
as
well as all tools, appliances, construction equipment, temporary construction
and machinery and surplus materials. DESIGN/BUILDER shall leave the Site clean
and ready for occupancy by OWNER at Substantial Completion. DESIGN/BUILDER
shall
restore to original condition all property not designated for alteration by
the
Contract Documents.
C. DESIGN/BUILDER
shall not load nor permit any part of any structure to be loaded in any manner
that will endanger the structure, nor shall DESIGN/ BUILDER subject any part
of
the Work or adjacent property to stresses or pressures that will endanger
it.
6.11 Record
Documents
A. DESIGN/BUILDER
shall maintain in a safe place at the Site one record copy of all Drawings,
Specifications, Written Amendments, and Change Orders, in good order and
annotated to show all changes made during Construction. These record documents
will be available to OWNER for reference. Upon completion of the Work, these
record documents and Submittals, including a reproducible set of record
drawings, will be delivered to OWNER.
6.12
Safety
and Protection
A. DESIGN/BUILDER
shall be responsible for initiating, maintaining and supervising all safety
precautions and programs in connection with the Construction. DESIGN/BUILDER
shall take necessary precautions for the safety of, and shall provide the
necessary protection to prevent damage, injury or loss to:
1. All
persons on the Site or who may be affected by the Construction;
15
2. All
Work
and materials and equipment to be incorporated therein, whether in storage
on or
off the Site; and
3. Other
property at the Site or adjacent thereto, including trees, shrubs, lawns, walks,
pavements, roadways, structures, utilities and underground facilities not
designated for removal, relocation or replacement in the course of the
Construction.
B. DESIGN/BUILDER
shall comply with applicable Laws and Regulations of any public body having
jurisdiction for safety of persons or property or to protect them from damage,
injury or loss; and shall erect and maintain all necessary safeguards for such
safety and protection. DESIGN/BUILDER shall notify owners of adjacent property
and of underground facilities and utility owners when prosecution of the Work
may affect them, and shall cooperate with them in the protection, removal,
relocation and replacement of their property. All damage, injury or loss to
any
property caused, directly or indirectly, in whole or in part, by DESIGN/BUILDER,
any Subcontractor, Supplier or any other individual or entity directly or
indirectly employed by any of them to perform or furnish any of the Work or
anyone for whose acts any of them may be liable, shall be remedied by
DESIGN/BUILDER. DESIGN/BUILDER's duties and responsibilities for safety and
for
protection of the construction shall continue until (i) such time as all the
Work is completed and OWNER has issued a notice to DESIGN/BUILDER in accordance
with paragraph 13.09 that the Work is acceptable or, (ii) in the event
DESIGN/BUILDER is excluded from the Site under paragraph 13.05.B. after
Substantial Completion, the date DESIGN/BUILDER is excluded from the
Site.
6.13 Safety
Representative
A. DESIGN/BUILDER
shall designate a qualified and experienced safety representative whose duties
and responsibilities shall be the prevention of accidents and the maintaining
and supervising of safety precautions and programs in connection with the
performance of the Work.
6.14 Hazard
Communication Programs
A. DESIGN/BUILDER
shall be responsible for coordinating any exchange of material safety data
sheets or other hazard communication information required to be made available
to or exchanged between or among Subcontractors at the Site in accordance with
Laws or Regulations.
6.15 Emergencies
A. In
emergencies affecting the safety or protection of persons or the Construction
or
property at the Site or adjacent thereto, DESIGN/BUILDER, without special
instruction or authorization from OWNER, is obligated to act to prevent
threatened damage, injury or loss. DESIGN/BUILDER shall give OWNER prompt
written notice if DESIGN/BUILDER believes that any significant changes in the
Construction or variations from the Contract Documents have been caused thereby.
If a change in the Contract Documents is required because of the action taken
by
DESIGN/BUILDER in response to such an emergency, a Change Order will be issued
to document the consequences of such action.
6.16 Continuing
the Work
A. DESIGN/BUILDER
shall carry on the Work and adhere to the progress schedule during all disputes
or disagreements with OWNER. No Work shall be delayed or postponed pending
resolution of any disputes or disagreements, except as DESIGN/BUILDER and OWNER
may otherwise agree in writing or as otherwise provided in the Contract
Documents.
16
6.17 DESIGN/BUILDER's
General Warranty and Guarantee
A. DESIGN/BUILDER
warrants and guarantees to OWNER that all Construction will be in accordance
with the Contract Documents and will not be defective.
DESIGN/BUILDER's warranty and guarantee hereunder excludes defects or damage
caused by:
1. Abuse,
modification or improper maintenance or operation by persons other than
DESIGN/BUILDER, Subcontractors or Suppliers; or
2. Normal
wear and tear under normal usage.
The
warranty set forth in Exhibit I and not this paragraph 6.17 shall apply to
the
items set forth in such Exhibit.
B. DESIGN/BUILDER's
obligation to perform and complete the Work in accordance with the Contract
Documents shall be absolute. Except as provided in paragraph 12.08, no action
by
OWNER will constitute an acceptance of Work that is not in accordance with
the
Contract Documents or a release of DESIGN/BUILDER's obligation to perform the
Work in accordance with the Contract Documents, including but not limited to
the
following:
1. Observations
by OWNER;
2. The
making of any progress or final payment;
3. The
issuance of a certificate of Substantial Completion;
4. Use
or
occupancy of the Work or any part thereof by OWNER;
5. Any
acceptance by OWNER or any failure to do so;
6. Any
inspection, test or approval by others; or
7. Any
correction of defective
Construction by OWNER.
C. DESIGN/BUILDER
shall, at final completion, assign to OWNER all manufacturer’s warranties for
materials and equipment incorporated into the Project; provided, however, in
the
event of a claim by OWNER against DESIGN/BUILDER, OWNER shall use its best
efforts to cooperate with DESIGN/BUILDER in the enforcement of any applicable
warranty.
6.18 Indemnification
OWNER
and
DESIGN/BUILDER are and will be throughout the term of this Agreement be
independent contractors as to each other. Each party recognizes that it shall
be
solely responsible for its own conduct, including without limitation its own
fault, as to any aspect of the Agreement. In the event any claim is made or
any
action is filed by a third party arising out of this Agreement or the services
to be performed under it, the parties anticipate that each will diligently
defend said claim or action on its own behalf, and will pay, settle, or
otherwise promptly dispose of any demand or judgment against it consistent
with
the provisions of the Kansas comparative negligence statute, K.S.A. §60-258a, in
effect on the date of this Agreement. In the event either party is made to
respond in damages for the fault of the other party, then the other party agrees
to indemnify and hold harmless the first party (including its officers,
directors, employees, and agents) from any payment that it has to make,
including without limitation the payment of reasonable attorneys’ fees incurred
in resisting, settling, or otherwise disposing of the demand, on account of
the
other party’s fault. In regard to the indemnity obligation in this paragraph
6.18 or any other provision of the General Conditions, neither party shall
make
a payment for which indemnity will be sought from the other party without first
providing such other party written notice of the claim and an opportunity to
assume the defense.
17
ARTICLE
7—OTHER CONSTRUCTION
7.01 Related
Construction at Site
A. OWNER
may
perform other work related to the Project at the Site by OWNER's own forces,
or
let other direct contracts therefor or have other work performed by utility
owners. Written notice thereof will be given to DESIGN/BUILDER prior to starting
any such other work. OWNER shall be responsible for such other work including,
without limitation, maintaining and supervising safety precautions and programs
in connection with such other work.
B. DESIGN/BUILDER
shall afford each other contractor who is a party to such a direct contract
and
each utility owner (and OWNER, if OWNER is performing the additional work with
OWNER's employees) proper and safe access to the Site and a reasonable
opportunity for the introduction and storage of materials and equipment and
the
execution of such other work and shall properly connect and coordinate the
Construction with theirs. DESIGN/BUILDER shall do all cutting, fitting and
patching of the Work that may be required to make its several parts come
together properly and integrate with such other work. DESIGN/BUILDER shall
not
endanger any work of others by cutting, excavating or otherwise altering their
work and will only cut or alter their work with the written consent of OWNER
and
the others whose work will be affected.
C. If
the
proper execution or results of any part of DESIGN/BUILDER's Work depends upon
work performed or services provided by others under this Article 7,
DESIGN/BUILDER shall inspect such other work and appropriate instruments of
service and promptly report to OWNER in writing any delays, defects or
deficiencies in such other work or services that render it unavailable or
unsuitable for the proper execution and results of DESIGN/BUILDER's Work.
DESIGN/BUILDER's failure so to report will constitute an acceptance of such
other work as fit and proper for integration with DESIGN/BUILDER's Work except
for latent or nonapparent defects and deficiencies in such other
work.
ARTICLE
8—OWNER'S RESPONSIBILITIES
8.01 General
A. OWNER
shall do the following in a timely manner so as not to delay the services of
DESIGN/BUILDER.
1. Designate
in writing a person to act as OWNER's representative with respect to the
services to be rendered under the Agreement.
2. Provide
such legal services as OWNER may require with regard to land use and
governmental permitting issues pertaining to the Project including any such
land
use or governmental permitting issues that may be raised by
DESIGN/BUILDER.
18
3. If
requested in writing by DESIGN/BUILDER, furnish reasonable evidence satisfactory
to DESIGN/BUILDER, that sufficient funds are available and committed for the
entire cost of the Project. Unless such reasonable evidence is furnished,
DESIGN/BUILDER is not required to commence or continue any Work, or may, if
such
evidence is not presented within a reasonable time, stop Work upon fifteen
(15)
days’ notice to the OWNER.
4. Make
payments to DESIGN/BUILDER promptly when they are due as provided in Article
13.
5. Furnish
lands and easements as set forth in paragraph 4.01.
6. Furnish
to DESIGN/BUILDER, as required for performance of DESIGN/BUILDER's services
the
following, all of which DESIGN/BUILDER may use and rely upon in performing
services under this Agreement:
a. Environmental
assessment and impact statements;
b. Property,
boundary, easement, right-of-way, topographic and utility surveys;
c. Property
descriptions;
d. Zoning,
deed and other land use restrictions;
e. Engineering
surveys to establish reference points for design and construction which in
DESIGN/BUILDER's judgment are necessary to enable DESIGN/BUILDER to proceed
with
the Work;
f. Assistance
in filing documents required to obtain necessary approvals of governmental
authorities having jurisdiction over the Project; and
g. Subsurface
data.
7. Provide
information known to or in the possession of OWNER relating to the presence
of
materials and substances at the site which could create a Hazardous
Condition.
8. Perform
all other items designated as OWNER’s responsibilities in the Contract
Documents.
8.02
Scope of OWNER's Safety and Hazardous Waste Responsibilities
A. OWNER
shall not supervise, direct or have control or authority over, nor be
responsible for, DESIGN/BUILDER's means, methods, techniques, sequences or
procedures of Construction or the safety precautions and programs incident
thereto, or for any failure of DESIGN/BUILDER to comply with Laws and
Regulations applicable to the furnishing or performance of the Work. OWNER
will
not be responsible for DESIGN/BUILDER's failure to perform or furnish the Work
in accordance with the Contract Documents.
ARTICLE
9—CHANGES IN THE WORK; CLAIMS
9.01 |
General--Rights
and Obligations
|
A. Without
invalidating the Agreement, OWNER may, at any time or from time to time, request
additions, deletions or revisions in the Work within the general scope of the
contract by a Written Amendment or a Change Order. If DESIGN/BUILDER agrees
to
such Written Amendment or Change Order, which agreement shall not be
unreasonably withheld, DESIGN/BUILDER shall promptly proceed with the Work
involved which will be performed under the applicable provisions of the Contract
Documents (except as otherwise specifically provided).
19
9.02 Notice
of Intent to Make Claim
A. If
OWNER
and DESIGN/BUILDER are unable to agree as to the extent, if any, of an
adjustment in the Contract Price or an adjustment of the Contract Times that
should be allowed as a result of any order of OWNER pursuant to paragraph 9.01.A
or other occurrence for which the Contract Documents provide that such
adjustment(s) may be made, a claim may be made therefor. Written notice of
intent to make such a claim shall be submitted to the other party promptly
and
in no event more than thirty (30) days after the start of the occurrence or
event giving rise to the claim.
9.03 Claim
Documentation
A. Substantiating
documentation shall be submitted by the claiming party within thirty (30) days
after delivery of the notice required by paragraph 9.02.A.
9.04 Decision
A. The
other
party shall render a decision on the claim no more than thirty (30) days after
the receipt of the substantiating documentation required by paragraph 9.03.A.
This decision will be final and binding unless the claiming party gives notice
of intention to exercise its rights under Article 15 within thirty (30) days
of
receipt of the decision and exercises such rights within thirty (30) days of
giving the notice of intent.
9.05 Time
Limit Extension
A. The
time
limits of paragraphs 9.03.A and 9.04.A may be extended by mutual
agreement.
9.06 Exceptions
A. DESIGN/BUILDER
shall not be entitled to an increase in the Contract Price with respect to
any
Work performed that is not contemplated by the Contract Documents as amended,
modified and supplemented as provided in paragraph 3.03.
9.07 Execution
of Change Orders
A. OWNER
and
DESIGN/BUILDER shall execute appropriate Change Orders or Written Amendments
covering:
1. changes
in the Work which are (i) ordered by OWNER pursuant to paragraph 9.01, (ii)
required because of acceptance of defective
Construction under paragraph 12.08 or correcting defective
Work
under paragraph 12.09 or (iii) agreed to by the parties; and
2. changes
in the Contract Price or Contract Times which are agreed to by the
parties.
20
ARTICLE
10—CHANGE OF CONTRACT PRICE
10.01 General
A. The
Contract Price constitutes the total compensation (subject to authorized
adjustments) payable to DESIGN/BUILDER for performing the Work.
B. The
Contract Price may only be changed by a Change Order or by a Written Amendment.
Any claim for an adjustment in the Contract Price shall be based on written
notice delivered by the party making the claim to the other party promptly
in
accordance with paragraph 9.02.A.
C. The
value
of any Work covered by a Change Order or of any claim for an increase or
decrease in the Contract Price will be determined as follows:
1. By
a
mutually agreed lump sum (which may include an allowance for overhead and profit
not necessarily in accordance with paragraph 10.02); or
2. Where
agreement to a lump sum is not reached under paragraph 10.01.C.1, on the basis
of the Cost of the Work (determined as provided in paragraph 10.02) plus a
DESIGN/BUILDER's Fee for overhead and profit (determined as provided in
paragraph 10.02.C).
10.02 Cost
of the Work
A. Costs
Included: The
term
Cost of the Work means the sum of all costs necessarily incurred and paid by
DESIGN/BUILDER in the proper performance of work authorized only by a Change
Order or Written Amendment (together “Change Order Work”). Except as otherwise
may be agreed to in writing by OWNER, such costs shall be in amounts no higher
than those prevailing in the locality of the Project, shall include only the
following items and shall not include any of the costs itemized in paragraph
10.02.B:
1. Payroll
costs for employees in the direct employ of DESIGN/BUILDER in the performance
of
the Change Order Work under the then current schedule of job classifications
and
hourly rates of DESIGN/BUILDER.
2. Cost
of
all materials and equipment furnished and incorporated in the Change Order
Work,
including costs of transportation and storage thereof, and Suppliers' field
services required in connection therewith.
3. Payments
made by DESIGN/BUILDER to Subcontractors for Change Order Work performed or
furnished by Subcontractors.
4. Payments
made by DESIGN/BUILDER to Engineers (not employees of DESIGN/BUILDER or its
affiliates) for Design Professional Services provided or furnished by Engineers
under a Design Subagreement for Change Order Work.
5. Costs
of
special consultants (including but not limited to testing laboratories and
surveyors, but excluding employees of DESIGN/BUILDER or its affiliates) employed
for services specifically related to Change Order Work.
6. Supplemental
costs including the following items:
21
a. The
proportion of necessary transportation, travel and subsistence expenses of
DESIGN/BUILDER's employees incurred in discharge of duties connected with Change
Order Work.
b. Cost,
including transportation and maintenance, of all materials, supplies, equipment,
machinery, appliances, office and temporary facilities at the Site and hand
tools not owned by the workers, which are consumed in the performance of Change
Order Work, and cost less market value of such items used but not consumed
which
remain the property of DESIGN/BUILDER.
c. Rentals
of all Work equipment and machinery and the parts thereof whether rented from
DESIGN/BUILDER or others in accordance with rental agreements approved by OWNER,
and the costs of transportation, loading, unloading, installation, dismantling
and removal thereof--all in accordance with the terms of said rental agreements.
The rental of any such equipment, machinery or parts shall cease when the use
thereof is no longer necessary for Change Order Work.
d. Sales,
consumer, use or similar taxes related to Change Order Work, paid by
DESIGN/BUILDER or required to be reimbursed by DESIGN/BUILDER to its
Subcontractors, Suppliers, or Engineers.
B. Costs
Excluded: The
term
Cost of the Work shall not include any of the following:
1. Payroll
costs and other compensation of DESIGN/BUILDER's officers, executives,
principals (of partnerships and sole proprietorships), general managers,
engineers, architects, estimators, attorneys, auditors, accountants, purchasing
and contracting agents, expediters, timekeepers, clerks and other personnel
employed by DESIGN/BUILDER whether at the Site or in DESIGN/BUILDER's principal
or a branch office for general administration of the Work and not specifically
included in the then current schedule of job classifications referred to in
paragraph 10.02.A.1 -- all of which are to be considered administrative costs
covered by the DESIGN/BUILDER's fee.
2. Expenses
of DESIGN/BUILDER's principal and branch offices other than DESIGN/BUILDER's
office at the Site.
3. Any
part
of DESIGN/BUILDER's capital expenses, including interest on DESIGN/BUILDER's
capital employed for the Work and charges against DESIGN/BUILDER for delinquent
payments.
4. Costs
due
to the negligence of DESIGN/BUILDER, any Subcontractor, or anyone directly
or
indirectly employed by any of them or for whose acts any of them may be liable,
including but not limited to, the correction of defective
Work,
disposal of materials or equipment wrongly supplied and making good any damage
to property.
5. Other
overhead or general expense costs of any kind and the costs of any item not
specifically and expressly included in paragraph 10.02.A.
C. Fee:
1. A
mutually agreed fee or, in the event the parties can not agree upon a fee,
DESIGN/BUILDER's fee for overhead and profit on Change Orders priced by
paragraph 10.01.C.2 (whether additive or deductive) shall be ***
of the Cost of the Change Order Work for subcontracts, materials and
equipment.
22
2. When
both
additions and credits are involved in any one change, the adjustment in
DESIGN/BUILDER's fee shall be computed on the basis of the net change in
accordance with paragraph 10.02.C.1
above.
D. Documentation: Whenever
the cost of any Work is to be determined pursuant to paragraphs 10.02.A and
10.02.B, DESIGN/BUILDER will establish and maintain records thereof in
accordance with generally accepted accounting practices and submit in a form
acceptable to OWNER an itemized cost breakdown together with supporting
data.
ARTICLE
11—CHANGE OF CONTRACT TIMES
11.01 General
A. The
Contract Times may only be changed by a Change Order or a Written Amendment.
Any
claim for an adjustment of the Contract Times shall be based on written notice
pursuant to paragraph 9.02.
B. All
Contract Times are of the essence of the Agreement.
11.02 Time
Extensions
A.
Where
DESIGN/BUILDER is prevented from completing any part of the Work within the
Contract Times due to delay beyond the control of DESIGN/BUILDER, the Contract
Times will be extended in an amount equal to the time lost due to such delay
if
a claim is made therefor as provided in Article 9. Delays beyond the control
of
DESIGN/BUILDER shall include, but not be limited to, acts or neglect by OWNER,
governmental agencies, acts or neglect of utility owners or other contractors
performing other construction work as contemplated by Article 7, fires, floods,
epidemics, abnormal weather conditions, acts of God, strikes, lockouts or other
circumstances beyond the control of DESIGN/BUILDER that give rise to a shortage
of labor, materials, equipment, transportation or utilities. Delays attributable
to and within the control of a Subcontractor or Supplier shall be deemed to
be
delays within the control of DESIGN/BUILDER.
B. Nothing
in this paragraph 11.02 bars a change in Contract Price pursuant to Article
10
to compensate for the direct costs incurred by DESIGN/BUILDER due to delay,
interference, or disruption directly attributable to actions or inactions of
OWNER. However, OWNER shall not be liable to DESIGN/BUILDER for costs or damages
arising out of or resulting from (i) delays caused by or within the control
of
DESIGN/BUILDER, or (ii) delays beyond the control of both parties including
but
not limited to fires, floods, epidemics, abnormal weather conditions, acts
of
God or acts or neglect by governmental agencies, utility owners, or other
contractors performing other work as contemplated by Article 7.
ARTICLE
12—TESTS AND INSPECTIONS; CORRECTION, REMOVAL OR ACCEPTANCE OF DEFECTIVE
CONSTRUCTION
12.01 Notice
of Defects
A. Each
party shall give the other prompt written notice of all defective
Construction of which such party has actual knowledge. All defective
Construction may be rejected, corrected or accepted as provided in this Article
12.
23
12.02 Access
to Construction
A. Upon
reasonable notice to DESIGN/BUILDER, OWNER,
other representatives and personnel of OWNER, independent testing laboratories
and governmental agencies with jurisdictional interests will have access to
the
Construction at the Site at reasonable times for their observation, inspecting
and testing. DESIGN/BUILDER shall provide them proper and safe conditions for
such access and advise them of DESIGN/BUILDER's Site safety procedures and
programs so that they may comply therewith as applicable.
12.03 Tests
and Inspections
A. If
the
Contract Documents or Laws or Regulations of any public body having jurisdiction
require any part of the Construction specifically to be inspected, tested or
approved, DESIGN/BUILDER shall assume full responsibility for arranging and
obtaining such inspections, tests or approvals, pay all costs in connection
therewith, and furnish OWNER the required certificates of inspection or
approval. DESIGN/BUILDER shall also be responsible for arranging and obtaining
and shall pay all costs in connection with any inspections, tests or approvals
required for OWNER's acceptance of materials or equipment to be incorporated
in
the Construction or of materials, mix designs, or equipment submitted for
approval prior to DESIGN/BUILDER's purchase thereof for incorporation in the
Construction. Nothing in this paragraph shall be interpreted or construed as
obligating DESIGN/BUILDER to obtain, furnish or pay the costs of any permit,
inspection, test or approval required by the applicable State or the United
States Environmental Protection Agency for the construction or operation of
the
Project (including, without limitation, any atmospheric emissions compliance
reports), all of which shall be the responsibility of OWNER.
B. DESIGN/BUILDER
shall give OWNER reasonable notice of the planned schedule for all required
inspections, tests or approvals if requested in writing by OWNER.
C. If
any
Construction (or the construction work of others) that is required to be
inspected, tested or approved is covered by DESIGN/BUILDER without written
concurrence of OWNER, it must, if requested by OWNER, be uncovered for
observation at DESIGN/BUILDER's expense unless DESIGN/BUILDER has given OWNER
timely notice of DESIGN/BUILDER's intention to cover the same and OWNER has
not
acted with reasonable promptness in response to such notice.
12.04 Uncovering
Construction
A. If
any
Construction is covered contrary to the written request of OWNER, it must,
if
requested by OWNER, be uncovered for OWNER's observation and recovered at
DESIGN/BUILDER's expense.
B. If
OWNER
considers it necessary or advisable that covered Construction be observed by
OWNER or inspected or tested by others, DESIGN/BUILDER, at OWNER's request,
shall uncover, expose or otherwise make available for observation, inspection
or
testing as OWNER may require, that portion of the Construction in question,
furnishing all necessary labor, material and equipment. If it is found that
such
Construction is defective,
DESIGN/BUILDER shall pay all costs caused by or resulting from such uncovering,
exposure, observation, inspection and testing (including but not limited to
all
reasonable fees and charges of engineers and other professionals)
and
OWNER shall be entitled to an appropriate decrease in the Contract Price, and,
if the parties are unable to agree as to the amount thereof, may make a claim
therefor as provided in Article 9.
If
however, such Construction is not found to be defective,
DESIGN/BUILDER shall be allowed an increase in the Contract Price directly
attributable to such uncovering, exposure, observation, inspection, testing,
replacement and rework; and, if the parties are unable to agree as to the amount
or extent thereof, DESIGN/BUILDER may make a claim therefor as provided in
Article 9.
24
12.05 OWNER
May Stop the Construction
A. If
the
Construction is defective,
or
DESIGN/BUILDER fails to supply sufficient skilled workers or suitable materials
or equipment, or fails to furnish or perform the Construction in such a way
that
the completed Construction will conform to the Contract Documents, OWNER may
order DESIGN/BUILDER to stop Construction or any portion thereof, until the
cause for such order has been eliminated; however, this right of OWNER to stop
Construction will not give rise to any duty on the part of OWNER to exercise
this right for the benefit of DESIGN/BUILDER or any other party.
12.06 Correction
or Removal of Defective Construction
A. Prior
to
acceptance and final payment under paragraph 13.09, OWNER will have authority
to
disapprove or reject defective
Construction and will have authority to require special inspection or testing
of
the Construction whether or not the Construction is fabricated, installed or
completed. DESIGN/BUILDER shall promptly, either correct all defective
Construction, whether or not fabricated, installed or completed, or, if the
Construction has been rejected by OWNER, remove it from the Site and replace
it
with non-defective Construction. DESIGN/BUILDER shall bear all costs of such
correction or removal (including but not limited to reasonable fees and charges
of engineers, architects, attorneys and other professionals, all court or
arbitration or other dispute resolution costs, and all costs of repair or
replacement of work of others) made necessary thereby. Nothing in this paragraph
shall be interpreted or construed as requiring DESIGN/BUILDER to correct or
remove and replace defective Construction accepted by OWNER pursuant to
paragraph 12.08 below.
12.07 Correction
Period
A. If
within
one (1) year after the date of Substantial Completion or such longer period
of
time as may be prescribed by Laws or Regulations or by the terms of any
applicable special guarantee required by the Contract Documents or by any
specific provision of the Contract Documents, any Construction is found to
be
defective,
DESIGN/BUILDER shall promptly, without cost to OWNER and in accordance with
OWNER's written instructions, (i) correct such defective
Construction, or, if it has been rejected by OWNER, remove it from the Site
and
replace it with Construction that is not defective,
and
(ii) satisfactorily correct or remove and replace any damage to other
Construction or the work of others resulting therefrom. If DESIGN/BUILDER does
not promptly comply with the terms of such instructions, or in an emergency
where delay would cause serious risk of loss or damage, OWNER may have the
defective
Construction corrected or the rejected Construction removed and replaced, and
all costs and damages caused by or resulting from such removal and replacement
(including but not limited to all reasonable fees and charges of engineers,
architects, attorneys and other professionals, all court or arbitration or
other
dispute resolution costs, and all costs of repair or replacement of work of
others) will be paid by DESIGN/BUILDER subject to the provisions of paragraph
16.06 below. Nothing in this paragraph shall be interpreted or construed as
requiring DESIGN/BUILDER to correct or remove and replace defective Construction
accepted by OWNER pursuant to paragraph 12.08 below. Defective
equipment or parts thereof shall be covered by the warranty set forth in Exhibit
I attached hereto and not the provisions of this paragraph 12.07.
B. Where
defective
Construction (and damage to other Construction resulting therefrom) has been
corrected, removed or replaced under this paragraph 12.07, the correction period
hereunder with respect to such Construction will be extended for an additional
period of one (1) year after such correction or removal and replacement has
been
satisfactorily completed.
25
12.08 Acceptance
of Defective Construction
A. If,
instead of requiring correction or removal and replacement of defective
Construction, OWNER prefers to accept it, OWNER may do so. If any such
acceptance occurs prior to final payment, a Change Order will be issued
incorporating the necessary revisions in the Contract Documents with respect
to
the Construction; and OWNER shall be entitled to an appropriate decrease in
the
Contract Price, and, if the parties are unable to agree as to the amount
thereof, OWNER may make a claim therefor as provided in Article 15, subject
to
the provisions of paragraph 16.06 below. If the acceptance occurs after final
payment, an appropriate amount will be paid by DESIGN/BUILDER to OWNER, and,
if
the parties are unable to agree as to the amount thereof, OWNER may make a
claim
therefor as provided in Article 15, subject to the provisions of paragraph
16.06
below. Notwithstanding the foregoing, any defective Construction known by OWNER
and not disclosed to DESIGN/BUILDER at the time of acceptance and final payment
under paragraph 13.09 shall be deemed to be accepted by OWNER and DESIGN/BUILDER
shall have no obligation to correct, or remove and replace such defect, or
make
any payment to OWNER with respect thereto.
12.09 |
Identification
of Punch List Items
|
A. OWNER
shall identify in writing to DESIGN/BUILDER, on or before the date that is
thirty (30) days after Substantial Completion, any and all Punch List Items
to
be completed or corrected by DESIGN/BUILDER. DESIGN/BUILDER shall not be
required to complete or correct any Punch List Items identified by OWNER after
such thirty (30) day period.
ARTICLE
13—PAYMENTS TO DESIGN/BUILDER AND COMPLETION
13.01 Schedule
of Values
A. The
Schedule of Values established as provided in paragraph 2.03 will serve as
the
basis for progress payments and the form of Application for Payment will be
substantially similar to Exhibit J.
13.02 Application
for Progress Payment
A. By
the
tenth day of each month during the Work DESIGN/BUILDER shall submit to OWNER
for
review and approval an Application for Payment filled out and signed by
DESIGN/BUILDER covering the Work completed as of the date of the Application
and
accompanied by such supporting documentation as is required by the Contract
Documents. If payment is requested on the basis of materials and equipment
not
incorporated in the Work but delivered and suitably stored at the Site or at
another location agreed to in writing, the Application for Payment shall also
be
accompanied by a xxxx of sale, invoice or other documentation warranting that
OWNER has received the materials and equipment free and clear of all Liens
and
evidence that the materials and equipment are covered by appropriate property
insurance and other arrangements to protect OWNER's interest therein. The amount
of retainage with respect to progress payments will be as stipulated in the
Agreement.
B. With
each
Application for Payment, DESIGNBUILDER shall submit interim lien waivers for
all
subcontractors and first tier suppliers with a contract value in excess of
$5,000.00. The interim lien waivers shall be effective through the immediately
preceding payment. OWNER may withhold from any progress payment the amount
applicable to any lien waivers not received for any preceding Application for
Payment for which payment was made by OWNER.
26
13.03 DESIGN/BUILDER's
Warranty of Title
A. DESIGN/BUILDER
warrants and guarantees that title to all construction materials and equipment
covered by any Application for Payment, whether incorporated in the Project
or
not, will pass to OWNER no later than the time of payment free and clear of
all
Liens. This paragraph 13.03.A does not apply to any documents covered by
paragraph 3.04.
13.04 Progress
Payments
A. Progress
payments shall be made by the OWNER to DESIGN/BUILDER according to the following
procedure:
1. OWNER
will, within ten (10) days of receipt of each Application for Payment, either
indicate in writing its acceptance of the Application and state that the
Application is being processed for payment, or return the Application to
DESIGN/BUILDER indicating in writing its reasons for refusing to accept the
Application and the exact amount(s) in dispute. All undisputed amounts will
become due and be paid by OWNER to DESIGN/BUILDER not more than ten (10) days
after OWNER’s acceptance or rejection of such Application, as the case may
be.
2. If
OWNER
should fail to pay DESIGN/BUILDER at the time the payment of any amount becomes
due, then DESIGN/BUILDER may, at any time thereafter, upon serving written
notice that DESIGN/BUILDER will stop the Work within seven (7) days after
receipt of the notice by OWNER, and after such seven (7) day period, stop the
Work until payment of the amount owing has been received, including interest
thereon
3. Payments
due but unpaid shall bear interest at the rate specified in the Agreement.
If
OWNER pays to DESIGN/BUILDER any disputed amount pursuant to paragraph 13.04.A.2
and it is determined pursuant to Article 15 that such amount was not due and
payable, then DESIGN/BUILDER shall refund such amount to OWNER with interest
thereon at the rate specified in the Agreement.
4. No
Progress Payment nor any partial or entire use or occupancy of the Project
by
the OWNER shall constitute an acceptance of any Work not in accordance with
the
Contract Documents.
B. Unless
payment of such disputed amount is requested by DESIGN/BUILDER as provided
in
paragraph 13.04.A.1., OWNER may refuse to make the whole or any part of any
such
payment or, because of subsequently discovered evidence or the results of
subsequent inspections or tests, nullify any previous payment, to the extent
that is reasonably necessary to protect OWNER from loss because:
1. The
Work
is defective,
or
completed Work has been damaged, requiring correction or
replacement;
2. The
Contract Price has been reduced by Written Amendment or Change Order;
3. OWNER
has
been required to correct defective
Work or
complete Work in accordance with paragraph 12.07.A;
4. OWNER
has
actual knowledge of the occurrence of any of the events enumerated in paragraphs
14.02.A.1 through A.3 inclusive;
27
5. Claims
have been made against OWNER on account of DESIGN/BUILDER's performance or
furnishing of the Work;
6. The
provisions of paragraph 13.02.B are applicable; or
7. Liens
have been filed in connection with the Work, except where DESIGN/BUILDER has
delivered a specific Bond satisfactory to OWNER to secure the satisfaction
and
discharge of such Liens.
13.05 Substantial
Completion
A. When
DESIGN/BUILDER considers the Construction ready for its intended use
DESIGN/BUILDER shall notify OWNER in writing that the Construction is
substantially complete (except for items specifically listed by DESIGN/BUILDER
as incomplete). Within a reasonable time thereafter, OWNER will prepare and
deliver to DESIGN/BUILDER a certificate of Substantial Completion. There shall
be attached to the certificate a list of Punch List Items to be completed or
corrected before final payment. At the time of delivery of the certificate
of
Substantial Completion OWNER will deliver to DESIGN/BUILDER (i) a written
determination as to division of responsibilities pending final payment between
OWNER and DESIGN/BUILDER with respect to security, operation, safety,
maintenance, heat, utilities, insurance and warranties and guarantees, and
(ii)
the payment required by section 4.01.B.2. of the Agreement.
B. OWNER
will have the right to exclude DESIGN/BUILDER from the Site after the date
of
Substantial Completion, but OWNER will allow DESIGN/BUILDER reasonable access
to
complete or correct items on the list of Punch List Items to be completed and
the seven-day performance test described in Exhibit A.
13.06 Final
Inspection
A. Upon
written notice from DESIGN/BUILDER that the entire Construction or an agreed
portion thereof is complete, OWNER will make a final inspection with
DESIGN/BUILDER and will notify DESIGN/BUILDER in writing of all particulars
in
which this inspection reveals that the Construction is incomplete or
defective.
DESIGN/BUILDER shall immediately take such measures as are necessary to complete
such Construction or remedy such deficiencies.
13.07 Final
Application for Payment
A.
After
DESIGN/BUILDER has completed all such corrections to the satisfaction of OWNER
and delivered in accordance with the Contract Documents all interim maintenance
and operating instructions and as-built drawings (with final copies of each
document to be delivered within ninety (90) days after final payment),
schedules, guarantees, certificates or other evidence of insurance required
by
paragraph 5.02.B, certificates of inspection, marked-up record documents (as
provided in paragraph 6.11) and other documents, DESIGN/BUILDER may make
application for final payment following the procedure for progress payments.
The
final Application for Payment shall be accompanied (unless previously delivered)
by: (i) all documentation called for in the Contract Documents, including but
not limited to the evidence of insurance required by subparagraph 5.02.B.7,
and
(ii) complete and legally effective releases or waivers of all Liens arising
out
of or filed in connection with the Work. In lieu of such releases or waivers
of
Liens and as approved by OWNER, DESIGN/BUILDER may furnish receipts or releases
in full and an affidavit of DESIGN/BUILDER that: (i) the releases and
receipts include all labor, services, material and equipment for which a Lien
could be filed, and (ii) all payrolls, material and equipment bills and
other indebtedness connected with the Work for which OWNER or the Site might
in
any way be responsible have been paid or otherwise satisfied. If any
Subcontractor or Supplier fails to furnish such a release or receipt in full,
DESIGN/BUILDER may furnish a Bond or other collateral satisfactory to OWNER
to
indemnify OWNER against any Lien.
28
13.08 Final
Payment and Acceptance
A. If
OWNER
is satisfied that the Work has been completed and DESIGN/BUILDER's other
obligations under the Contract Documents have been fulfilled, OWNER will, within
ten (10) days after receipt of the final Application for Payment, give written
notice to DESIGN/BUILDER that the Work is acceptable. Otherwise, OWNER will
return the Application to DESIGN/BUILDER, indicating in writing the reasons
for
refusing to process final payment, in which case DESIGN/BUILDER shall make
the
necessary corrections and resubmit the Application. Thirty (30) days after
the
presentation to OWNER of the acceptable Application and accompanying
documentation, in appropriate form and substance and with OWNER's notice of
acceptability, the amount will become due and will be paid by OWNER to
DESIGN/BUILDER.
B. If,
through no fault of DESIGN/BUILDER, final completion of the Work is
significantly delayed, OWNER shall, upon receipt of DESIGN/BUILDER's final
Application for Payment, and without terminating the Agreement, make payment
of
the balance due for that portion of the Work fully completed and accepted.
Such
payment shall be made under the terms and conditions governing final payment,
except that it shall not constitute a waiver of claims.
13.09 Waiver
of Claims
A. The
making and acceptance of final payment will constitute:
1. A
waiver
of all claims by OWNER against DESIGN/BUILDER, except claims arising from
unsettled Liens, from defective
Construction appearing after final inspection pursuant to paragraph 13.06,
Plant
equipment warranty claims, from failure to comply with the Contract Documents
or
the terms of any special guarantees specified therein, or from DESIGN/BUILDER's
continuing obligations under the Contract Documents; and
2. a
waiver
of all claims by DESIGN/BUILDER against OWNER other than those previously made
in writing and still unsettled.
ARTICLE
14—SUSPENSION OF WORK AND TERMINATION
14.01 Owner
May Suspend Work
A. At
any
time and without cause, OWNER may suspend the Work or any portion thereof for
a
period of not more than ninety (90) days by notice in writing to DESIGN/BUILDER
which will fix the date on which Work will be resumed. DESIGN/BUILDER shall
resume the Work on the date so fixed. DESIGN/BUILDER may be allowed an
adjustment in the Contract Price or an extension of the Contract Times, or
both,
directly attributable to any such suspension if DESIGN/BUILDER makes a claim
therefor as provided in Article 9.
14.02 OWNER
May Terminate for Cause
A. The
occurrence of any one or more of the following events justifies termination
for
cause:
29
1. DESIGN/BUILDER
persistently fails to perform the Work in accordance with the Contract Documents
(including, but not limited to, failure to supply sufficient skilled workers
or
suitable materials or equipment or failure to adhere to the progress schedule
established under paragraph 2.03.A as revised from time to time.)
2. DESIGN/BUILDER
intentionally or willfully disregards Laws or Regulations of any public body
having jurisdiction.
3. DESIGN/BUILDER
otherwise breaches or violates in any material way any provisions of the
Contract Documents.
B. OWNER
may, after giving DESIGN/BUILDER written notice of the occurrence of an event
in
paragraph 14.02.A and twenty (20) days therefrom to remedy such event (or,
if
such event is not capable of being remedied within such twenty (20) days, such
number of days as is reasonably needed to remedy such event), and to the extent
permitted by Laws and Regulations, terminate the services of DESIGN/BUILDER,
exclude DESIGN/BUILDER from the Site and take possession of the Work incorporate
in the Work all materials and equipment stored at the Site or elsewhere for
which OWNER has paid DESIGN/BUILDER and finish the Work as OWNER may deem
expedient. In such case DESIGN/BUILDER shall not be entitled to receive any
further payment other than reimbursement for DESIGN/BUILDER’s payments to
Subcontractors and Suppliers for labor, services, equipment and materials prior
to the date of termination, but only to the extent not previously paid by OWNER.
If
the
unpaid balance of the Contract Price exceeds all reasonable costs incurred
by
OWNER resulting from completing the Work (including but not limited to all
reasonable fees and charges of engineers, architects, attorneys and other
professionals and all court or arbitration or other dispute resolution costs)
such excess will be paid to DESIGN/BUILDER.
If all
reasonable costs incurred by OWNER to complete the Work (including but not
limited to all reasonable fees and charges of engineers, architects, attorneys
and other professionals and all court or arbitration or other dispute resolution
costs) exceed the unpaid balance of the Contract Price, DESIGN/BUILDER shall
pay
the difference to OWNER subject to the provisions of paragraph 16.06 below.
When
exercising any rights or remedies under this paragraph OWNER shall be required
to obtain a reasonable price for the Work performed.
C. Where
DESIGN/BUILDER's services have been so terminated by OWNER, the termination
will
not affect any rights or remedies of OWNER against DESIGN/BUILDER then existing
or which may thereafter accrue. Any payment to DESIGN/BUILDER by OWNER will
not
release DESIGN/BUILDER from liability.
D. Nothing
in this paragraph shall be interpreted or construed as requiring DESIGN/BUILDER
to perform any additional services after such termination including, without
limitation, the creation of any drawings, specifications or any other document
necessary to complete the Work.
14.03 DESIGN/BUILDER
May Stop Work or Terminate
A.
If,
through no act or fault of DESIGN/BUILDER, the Work is suspended for a period
of
more than ninety (90) days by OWNER or under an order of court or other public
authority, or OWNER fails to pay DESIGN/BUILDER any amount due under the
Contract Documents, then DESIGN/BUILDER may, upon seven (7) days written notice
to OWNER, and provided OWNER does not remedy such suspension or failure within
that time, terminate the Agreement and recover from OWNER payment of
all
amounts due and owing from OWNER to DESIGN/BUILDER under the Contract Documents
for Work performed through the date of such termination (including any profit
thereon) and all cost and expenses incurred by DESIGN/BUILDER due to such
termination (including, without limitation, any costs incurred to cancel
contracts with Subcontractors and the reasonable demobilization costs of
DESIGN/BUILDER).
In lieu
of terminating the Agreement and without prejudice to any other right or remedy,
DESIGN/BUILDER may upon seven (7) days written notice to OWNER stop the Work
until payment is made of all amounts due DESIGN/BUILDER, including interest
thereon. The provisions of this paragraph 14.03.A are not intended to preclude
DESIGN/BUILDER from making claim under Article 9 for an increase in Contract
Price or Contract Times or otherwise for expenses or damage
attributable to
such
suspension or failure.
30
ARTICLE
15—DISPUTE RESOLUTION
15.01
Dispute Resolution Agreement
A.
OWNER
and DESIGN/BUILDER agree that they will first submit any and all unsettled
claims, counterclaims, disputes and other matters in question between them
arising out of or relating to the Contract Documents or the breach thereof
("disputes"), to mediation by a mutually agreeable, impartial mediator, or
if
the parties cannot so agree, a mediator designated by the American Arbitration
Association (“AAA”) pursuant to its Construction Industry Mediation Rules, prior
to either of them initiating against the other a demand for arbitration pursuant
to paragraph 15.01.B through 15.01.E, unless delay in initiating arbitration
would irrevocably prejudice one of the parties. Any time limits within which
to
file a demand for arbitration shall be suspended with respect to a
dispute submitted
to mediation within those same applicable time limits and shall remain suspended
until 10 days after the termination of the mediation. The mediator of any
dispute submitted to mediation under this Agreement shall not serve as
arbitrator of such dispute unless otherwise agreed.
B. All
claims, disputes and other matters in question between OWNER and DESIGN/BUILDER
arising out of or relating to the Contract Documents or the breach thereof
(except for claims which have been waived by the making or acceptance of final
payment as provided by paragraph 13.09) will be decided by binding arbitration
in accordance with the Construction Industry Arbitration Rules of the AAA then
in effect, subject to the limitations of this paragraph 15.01. The arbitrator
shall have the discretion to award reasonable attorneys’ fees and costs to the
prevailing party. This agreement so to arbitrate and any other agreement or
consent to arbitrate entered into in accordance herewith as provided in this
paragraph 15.01 will be specifically enforceable under the prevailing law of
any
court having jurisdiction.
C. Notice
of
the demand for arbitration will be filed in writing with the other party to
the
Agreement and with the designated arbitration entity. The demand for arbitration
will be made within a reasonable time after the claim, dispute or other matter
in question has arisen, and in no event shall any such demand be made after
the
date when institution of legal or equitable proceedings based on such claim,
dispute or other matter in question would be barred by the applicable statute
of
limitations.
D. Except
as
provided in paragraph 15.01.E below, no arbitration arising out of or relating
to the Contract Documents shall include by consolidation, joinder or in any
other manner any other individual or` entity who is not a party to this contract
unless:
1. the
inclusion of such other individual or entity is necessary if complete relief
is
to be afforded among those who are already parties to the arbitration,
and
2. such
other individual or entity is substantially involved in a question of law or
fact which is common to those who are already parties to the arbitration and
which will arise in such proceedings, and
3. the
written consent of the other individual or entity sought to be included and
of
OWNER and DESIGN/BUILDER has been obtained for such inclusion, which consent
shall make specific reference to this paragraph; but no such consent shall
constitute consent to arbitration of any dispute not specifically described
in
such consent or to arbitration with any party not specifically identified in
such consent.
31
E. Notwithstanding
paragraph 15.01.D, if a claim, dispute or other matter in question between
OWNER
and DESIGN/BUILDER involves the Work of a Subcontractor, Supplier or Engineer
either OWNER or DESIGN/BUILDER may join such entity as a party to the
arbitration between OWNER and DESIGN/BUILDER hereunder. DESIGN/BUILDER shall
include in all subcontracts required by paragraph 6.05.D a specific provision
whereby the Subcontractor consents to being joined in any arbitration between
OWNER and DESIGN/BUILDER involving the Work of such Subcontractor. Nothing
in
this paragraph 15.01.E or in the provision of such subcontract consenting to
joinder shall create any claim, right or cause of action in favor of
Subcontractor, Supplier or Engineer against OWNER.
F. Notwithstanding
the foregoing, the provisions of this Article 15 shall not apply to any claim
by
DESIGN/BUILDER of any breach or threatened breach of any provision of the
License Agreement attached as Exhibit F.
ARTICLE
16--MISCELLANEOUS
16.01 Giving
Notice
A. Whenever
any provision of the Contract Documents requires the giving of written notice,
it will be deemed to have been validly given:
1. If
delivered in person to the individual or to a member of the firm or to an
officer of the corporation for whom it is intended;
2. If
delivered at or sent by registered or certified mail, postage prepaid, to the
last business address known to the giver of the notice; or
3. If
transmitted by facsimile, the time at which a machine generated confirmation
states the notice was received at the facsimile telephone number of the intended
recipient last known by the sender.
16.02 Computation
of Times
A. When
any
period of time is referred to in the Contract Documents by days, it will be
computed to exclude the first and include the last day of such period. If the
last day of any such period falls on a Saturday or Sunday or on a day made
a
legal holiday by the law of the applicable jurisdiction, such day will be
omitted from the computation.
B. A
calendar day of twenty-four hours measured from midnight to the next midnight
will constitute a day.
16.03 Notice
of Claim
A. Should
OWNER or DESIGN/BUILDER suffer injury or damage to person or property because
of
any error, omission or act of the other party or of any of the other party's
employees or agents or others for whose acts the other party is legally liable,
claim will be made in writing to the other party within a reasonable time of
the
first observance of such injury or damage. The provisions of this paragraph
16.03.A shall not be construed as a substitute for or a waiver of the provisions
of any applicable statute of limitations or repose.
32
16.04 Cumulative
Remedies
A. Except
as
provided in paragraph 16.06, the duties and obligations imposed by these General
Conditions and the rights and remedies available hereunder to the parties
hereto, and, in particular but without limitation, any general or specific
warranties, guarantees and indemnities imposed upon a party and all of the
rights and remedies available to the other party thereunder, are in addition
to,
and are not to be construed in any way as a limitation of, any rights and
remedies available to any or all of them which are otherwise imposed or
available by Laws or Regulations, by special warranty or guarantee or by other
provisions of the Contract Documents, and the provisions of this paragraph
will
be as effective as if repeated specifically in the Contract Documents in
connection with each particular duty, obligation, right and remedy to which
they
apply.
16.05 Survival
of Obligations
A. All
representations, indemnifications, warranties and guarantees made in, required
by or given in accordance with the Contract Documents, as well as all continuing
obligations indicated in the Contract Documents, will survive final payment,
completion and acceptance of the Work and termination or completion of the
Agreement.
16.06 Limitation
on OWNER’s Recovery of Damages and Mutual Waiver of Consequential
Damages
A. Notwithstanding
any other provision of the Contract Documents, OWNER agrees that the aggregate
amount OWNER (and anyone claiming by or through OWNER) may recover collectively
from DESIGN/BUILDER and its employee’s and agents, for the Project as a whole
under the Contract Documents (including the License Agreement attached as
Exhibit F), including, without limitation damages from DESIGN/BUILDER for
OWNER’s correction of defective
Construction under paragraph 12.07.A, acceptance of defective
Construction under paragraph 12.08, correction of any defective
equipment
or part thereof under Exhibit I and/or termination for cause under paragraph
14.02, shall be limited to ***.
B. OWNER
hereby waives all claims against DESIGN/BUILDER and DESIGN/BUILDER’s employees
and agents for any consequential damages that may arise out of or relate to
a
breach of the Contract Documents (including the License Agreement attached
as
Exhibit F) or the performance of the Work whether
arising in contract, warranty, tort (including negligence), strict liability
or
otherwise, including but not limited to losses of use, profits, business,
reputation or financing.
33
Segregation
of Responsibilities and Scope of Work
|
|||||||
Description
|
Design
Basis
|
Estimate
|
Design
|
Construction
|
Comments
|
||
Outside
battery limits
|
|
|
|
|
|
||
Rough
Grading
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
The
site including any storm water run-off retention system,
will
be rough graded to
allow final design site elevation
plus
or minus 2" and to be performed
by
(Show Me Ethanol).
|
||
Finish
Grading
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
The
site will be finish graded to accommodate surface
drainage
as required for ICM's
design and Show Me Ethanol's
design.
All seeding and landscaping to be
provided
and installed by Show Me Ethanol.
|
||
Erosion
Control
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
ICM
will maintain dust control during construction for its
construction,
lay down and office/parking
areas. Show Me
Ethanol
will maintain overall erosion
control
throughout the project.
|
||
Roads
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol will design roads and install a
minimum
of 12" of base rock for
access
roads and interior plant access roads and drives
acceptable
to ICM, within 6" of any
planned hard surface
top
elevation, before the plant project contruction
begins.
ICM will use
these roads for access during
construction,
will maintain the roads through
construction.
Any
required base above this
level
and all final hard surfacing
will
be installed by Show Me Ethanol.
|
34
Rail
|
ICM/Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol will provide all rail design and
construction.
ICM will provide input
as
to the rail spacing required for the grain
unloading
& ethanol loadout.
|
||
Water
Supply
|
ICM
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
ICM
will provide the flow rate and quality basis for the
process
water to be routed to
the battery limits. Show Me
Ethanol
will provide and install all necessary xxxxx, waterlines,
and
appurtenances
necessary to supply the water from its source to the
firewater
tank inlet piping (a point approx. 5' from the tank) Show
Me
Ethanol will make the
necessary connection to the tank.
ICM
will provide all water piping from that point to
the individual
water
usage points within the battery limits. Show Me Ethanol
will
provide potable
and process water from its source to the CO2
plant(if
required) and
the administration building.
|
||
Natural
Gas Supply
|
ICM
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
ICM
will provide Show Me Ethanol with the natural gas usage
requirements
for sizing of
the natural gas supply. Show Me Ethanol
is
to install the natural gas supply line routed
to a location inside
the
battery limits specified by ICM, in the general area of
the
thermal oxidizer. Show Me Ethanol will install natural gas line
to
any future CO2 plant(if
required) and the administration building.
|
||
Storm
Drainage
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
ICM
will slope final grading within the battery limits towards
a
drainage system to
be provided by Show Me Ethanol. Show
Me
Ethanol is to provide and install
storm
drainage as part of rough grading
package
|
35
Sanitary
Sewer
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol will install and route the sanitary sewer to
locations
inside the
battery limits specified by ICM. Show Me
Ethanol
will run all on-site sanitary sewer
lines inside the battery limits
to
this ICM specified location for tie in. Show Me
Ethanol
is
responsible for the design and installation of any
Septic
Systems and lift stations.
|
||
Process
Sewer
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Waste
water from the process (cooling tower blowdown,
softner
discharge, RO
Reject, multimedia backwash) will
be
discharged from the plant to the location
specified in the discharge
permit,
by Show Me Ethanol All labor and materials
required to
discharge
these items will be supplied and
installed
by Show Me Ethanol
|
||
Interconnecting
Piperacks
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
will design and construct interconnecting pipe racks and
piping
within the battery
limits, including pipe racks to the
ethanol
storage area, ethanol loading
area, ethanol loadout flare,
the
cooling tower and the process water tank.
The CO2 line
and
pipe racks from the scrubber to any future CO2
plant,
is to be provided by Show Me Ethanol.
|
||
Administration
Building
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol will be responsible for the design
and
construction of
the administration building.
|
36
Inside
battery limits
|
|
|
|
|
|
||
Rough
Grading
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
The
site inside of the battery limits, including drainage
to
any storm water run-off
retention system, will be rough
graded
prior to any plant project construction
to allow for final design
elevation
to be performed by Show Me
Ethanol. Allowable soil bearing
pressure
of 3000 psf, 4,550 psf at fermenters,
6550 at silos minimum with
acceptable
settlement is to be provided inside
the battery limits by Show
Me
Ethanol All rough grading and compaction shall
be inspected
by
a licensed professional geotechnical firm and all test
results
shall be forwarded to ICM immediately upon completion. All testing
procedures
are to be pre-approved by ICM, at it's sole discretion.
|
||
Finish
Grading
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
will design and perform finish grading to slope the grade
within
the battery
limits to a storm water drainage system to be
provided
and installed by
Show Me Ethanol. All final grading
outside
the battery limits will be designed
and performed by Show Me
Ethanol.
All seeding and landscaping
will
be provided and installed by Show Me Ethanol.
|
||
Roads
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol will design roads and drives and install
a
minimum of 12" of base
rock as part of the rough grade
before
construction begins. ICM will maintain
the roads inside
the
battery limits and Show Me Ethanol's access road
during
construction and restore the base to within 2" of previous
grade.
All
required base above this level and all final hard
surfacing
will be
installed by Show Me Xxxxxxx.
|
00
Xxxxxxx
Xxxx
|
ICM
|
ICM
|
ICM
|
ICM
|
The
laydown area required for ICM's construction is contained
within
the areas described in the pre-construction rough
grading
requirements. ICM will maintain the laydown areas during
construction
and will return the areas outside
the
battery limits to within 0'-6" of the required final
grade.
|
Temporary
Facilities
|
Show
Me Ethanol & ICM
|
Show
Me Ethanol & ICM
|
Show
Me Ethanol & ICM
|
Show
Me Ethanol & ICM
|
ICM
will layout the area for office trailers, parking and equipment
storage/laydown.
ICM will rock and maintain this area through
construction.
ICM and/or its subcontractors will furnish all ICM required
office
trailers through the construction process. Show Me Ethanol will
furnish
all temporary utilities required by ICM.
|
Natural
Gas Supply
|
ICM
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
ICM
will provide Show Me Ethanol with the natural gas usage
requirements
for sizing of the natural gas supply for the ethanol
plant.
Show Me Ethanol will furnish Natural gas service supply to a
location
inside the battery limits specified by ICM in the general
area
of the thermal oxidizer . Show Me Ethanol will provide
natural
gas and the required gas line from its header to any
future
CO2 plant and the administration building.
|
Grain
Handling
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol will provide the grain handling system
per
ICM specified design.
|
WDG
Handling
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
will provide the WDG handling system per standard
ICM
55 MMGPY Facility.
|
Grain
Milling
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
is responsible for the specification and purchase
of
the Hammer Xxxxx.
|
38
Plant
& Instrument Air
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
is responsible for the compressors and piping for all
plant
and instrument air
required for other elements of ICM's
scope
of work. Show Me Ethanol will
be responsible for any air
requirements,
including compressors, dryers and
piping
for all other elements of the work not covered
in
the ICM scope of work,
including any future CO2 plant.
|
||
Xxxx
Section/Liquefaction
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
is responsible for all elements of the purchase, design
and
construction of
these systems. Per standard
ICM
55 MMGPY Facility.
|
||
Fermentation
Section
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
is responsible for all elements of the purchase, design
and
construction of
these systems. Per standard
ICM
55 MMGPY Facility.
|
||
Distillation/Evaporation
Sections
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
is responsible for all elements of the purchase, design
and
construction of
these systems. Per standard
ICM
55 MMGPY Facility.
|
||
Liquid/Solid
Separation Section
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
is responsible for all elements of the purchase, design
and
construction of
these systems. Per standard
ICM
55 MMGPY Facility.
|
||
Evaporation
Section
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
is responsible for all elements of the purchase, design
and
construction of
these systems. Per standard
ICM
55 MMGPY Facility.
|
||
Product
Storage Section
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
is responsible for all elements of the purchase, design
and
construction of
this systems, per standard
ICM
55 MMGPY design. Earthen berms and any
required
bentonite or synthetic liners are part of rough
grading
scope
by Show Me Ethanol.
|
39
Boiler/Steam
Section
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
is responsible for all elements for the purchase, design
and
construction of
this systems, Per ICM 55 MMGPY design.
A
155 Psi package boiler will be
supplied All Boiler chemicals required
are
the responsibility of Show Me Ethanol.
|
||
Process
Building and Energy Center
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
will design and construct the process building and energy
center
including all
associated interior equipment, piping,
foundations,
miscellaneous mechanical
equipment, and electrical
(ISBL).
Two dryer and one T.O.
or RTO will be furnished.
|
||
Cooling
Tower/Water Section
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
is responsible for all elements of the purchase, design
and
construction of
this system, Per standard
ICM
55 MMGPY design. Tower chemicals are
the
responsibility of Show Me Ethanol.
|
||
Electrical/Power
Substation
|
ICM
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol is responsible for the main electrical
substation
to be located within
550' of the process building, and
metering
of electrical power. ICM is responsible
for the main
switchgear
and providing three (3) 600 amp feeds.
Show
Me Ethanol is also responsible for any contracts with
the
electrical utilities
regarding power equipment and/or usage
|
40
Power
Distribution
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol is responsible for the main switchgear
and
providing three (3)
600 amp feeds. ICM is responsible
for
the primary distribution from the feed
points at the main switchgear,
and
for all cables, switchgear, and transformers
to provide power to the
ethanol
plant excluding any CO2 recovery. This
cost is not included
in
the base price. Show Me Ethanol to contract with
ICM
to perform this work. ICM will split all costs related to
this
work 50/50
with Show Me Ethanol.
|
||
Construction
Power and utilities
|
ICM
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol will be solely responsible for supplying
and
installing all
required utilities needed for construction.
ICM
will furnish specifications and
locations of needed utilities to
include
electrical power, lighting, sewer, and
natural gas. This cost is not
included
in the base price. Show Me Ethanol to
contract with ICM to
complete
this work, and all costs related to this work
will
be billed to Show Me Ethanol at cost plus 15%. All utilities bills
for
construction
will be in Show Me Ethanol's name and billed direct to Show
Me
Ethanol Temporary power will be installed during rough
grading.
|
||
600
v equipment within battery limits
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
is responsible for the 600v equipment including cables,
switchgear,
MCC, panel
boards, and transformers to provide electric
power
to the plant areas within
the battery limits. The Admin
building
will be the responsibility of
Show Me Ethanol and/or it's
subcontractors
from the low side (600v)
of
the corresponding transformer.
|
41
Instrumentation
and controls
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
is responsible for the instrumentation and controls
within
the battery limits
including the DCS system and hardware.
All
office computers and networks
are the responsibility
of
Show Me Ethanol
|
||
Facility
Communications
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol will be responsible for the facility
communications
including
the telephone system and broadband
internet
access. ICM will help coordinate
quantity and locations
for
installations within
the battery limits and any
interface with plant
equipment.
Any required security systems, cameras,
wiring, or monitors
is
the responsibility of Show Me Ethanol. Show Me
Ethanol must provide
a
dedicated telephone service and dedicated internet
ISP
at the server room in the main Process Building.
|
||
Fire
Detection and Alarm Systems.
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol is responsible for the diesel fire water pump
station
and heat and
smoke detection in the MCC's per standard ICM
design.
Show Me Ethanol is
responsible for the design and installation
of
the fire water loop, valves, hydrants,
monitors, deluge requirements,
foam
etc. required to meet the local fire
marshal's and ICM insurance
requirements.
This cost is not included in the
base price. Show Me
Ethanol
to contract with ICM to complete this work,
and
all costs related to this work will be billed to Show Me
Ethanol
at cost plus 15%.
|
42
Water
Treatment
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol will provide and install water treatment
equipment
or RO system
per standard ICM design. Any additional
water
treatment equipment required
will be designed and installed
by
ICM at cost plus 15% billable
to Show Me Ethanol
|
||
Chemical
Injection Systems
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
is responsible for all elements of the design and construction
of
these systems.
Per standard ICM 55 MMGPY design.
Chemicals
are the responsibility
of Show Me Ethanol
|
||
CO2
Scrubber System
|
ICM
|
ICM
|
ICM
|
ICM
|
ICM
is responsible for the CO2 Scrubber. A tie-in point
for
the discharge of
the CO2 stream to any future CO2 plant will
be
provided in the general area
of the scrubber. Exact location of tie-in
point
to be specified by ICM. CO2 transfer
blower from scrubber to CO2
plant,
knock out condenser, controls, purge
scrubber,
and
associated piping is the responsibility of Show Me Ethanol.
|
||
Emissions
and discharge monitoring equipment
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol
|
Show
Me Ethanol Is responsible for providing and installing
all
required emissions
and discharge monitoring equipment.
|
43
Outside
Battery Limits
|
Inside
Battery Limits
|
|||
|
Rough
Grading
|
|
Rough
Grading
|
|
|
Finish
Grading
|
|
Finish
Grading
|
|
|
Roads
|
|
Roads
|
|
|
Rail
|
|
Water
Supply
|
|
|
Water
Supply
|
|
Natural
Gas Supply
|
|
|
Natural
Gas Supply
|
|
Storm
Drainage
|
|
|
Storm
Drainage
|
|
Sanitary
Sewer
|
|
|
Sanitary
Sewer
|
|
Process
Sewer
|
|
|
Process
Sewer
|
|
Interconnecting
Piperacks
|
|
|
Interconnecting
Piperacks
|
|
Grain
Handling
|
|
|
Trailer/Laydown
Area
|
|
DDG
Handling
|
|
|
Trailers
|
|
Grain
Milling
|
|
|
Temporary
Electricity
|
|
Xxxx
Section/Liquifaction
|
|
|
Phones
|
|
Fermentation
Section
|
|
|
CO2
Plant (Praxair)
|
|
Distillation/Evaproation
|
|
|
Fire
Water System
|
|
TO/Boiler/Steam
Section
|
|
|
|
|
Cooling
Tower/Water Section
|
|
|
|
|
Process/Waste
H2O/Methanator Section
|
|
|
|
|
Plant/Instrument
Air
|
|
|
|
|
Chenical
Injection Systems
|
|
|
|
|
CO2
Scrubber System
|
44