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R01-179RESOLUTION NO. ROI- A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOYNT'ON BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE TASK ORDER NO. 01-05 BETWEEN THE CITY OF BOYNTON BEACH AND CAMP DRESSER AND MCKEE IN THE AMOUNT OF $236,610 FOR ENGINEERING SERVICES RELATED TO STORMWATER IMPROVEMENTS AND WATER MAIN REPLACEMENTS IN THE AREA OF NE 7TIt AVE. AND NE 10TM AVENUE BETWEEN US 1 AND NE 7TH STREET, AS WELL AS ENGINEERING SERVICES ASSOCIATED WITH THE INSTALLATION OF 20 OUTFALLS INTO THE LAKE WORTH LAGOON/INTRACOASTAL WATERWAY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Commission has previously assigned a priority to a variety of stormwater related projects; and WHEREAS, this project includes those tasks related to the surveying, design, )ermitting and cost estimating to allow us to get to the bidding stage of two of the prioritized )rojects; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT: Section 1. The City Commission of the City of Boynton Beach, Florida do~s hereby authorize and direct the Mayor and City Clerk to approve and execute Task Order No. 01-05 with Camp Dresser and McKee in the amount of $236,610, for engineering services related to stormwater improvements and water main replacements in the area of NE 7th Ave. and NE l0th Ave., between US 1 and NE 7th Street, as well as the engineering services associated with the installation of 20 outfalls into the Lake Worth Lagoon/Intracoastal Waterway. Section 2. This Resolution shall become effective immediately upon passage. PASSED AND ADOPTED this I day of May, 200'1. ATTEST: ca~eso~=s~~r 01-0~M042301 Vice Mayor COmmissioner Commissioner ENGINEERING :SERVICES TASK ORDER CITY OF BOYNTON BEACH TASK ORDER NO~ 01-05 CDM PROJECT NO. 6276 -5 I. PROJECT TITLE StormwaterManagement Improvements and Water Main Replacement Engineer, Procure and Construction Management at Risk (EPCM) Project II. BACKGROUND The City of Boynton Beach: (City) has identified the need to upgrade stormwater management systems in areas of the City subjected to Periodic flooding, .and to reduce pollutant loadings to surface waters resulting from stc~rmwater discharges. A priority area for implementation of stormwater system improvements is the residential area between NE 7t~ Avenue and NE 10t~ Avenue, from NE 7th Street to US Highway 1. This area experiences periodic flooding after rainfall events and from intrusion of salt water during high-tide periods. An evaluation of alternatives for improved stormwater management in this area was conducted by Camp Dresser & McKee Inc. (CDM), as summarized in a Technical Memorandum dated September 27, 2000 and updated on December 14, 2000. This evaluation concluded that the provision of swales, culverts and pump stations for conveyance of stormwater to a new detention pond, coupled with raising the elevation of NE 7m Street to 5.0 feet, NGVD and installation of flap gates on existing culverts under this road would reduce the effects of nuisance flooding in this area for storms of less than the 25-y~ar recurrence interVal. A natural mangrove wetland at NE 7th Street and NE 7m Avenue will likely have to be purchased by the City and protected in order to permit the plmmed improvements. The City will also have to purchase property~for construction of the stormwater detention pond, and may need to obtain easements for siting of the pump station and other required facilities. These improvements will be made in conjunction with planned water main replacements in the area, as well as north to NE 12t~ Avenue. The design and permitting of the water main replacement project has already been comEleted by City staff. The water main replacement and stormwater improvements will ~e cOnstructed in one combined project to ensure the water main installation and stOrmwater improvements are coordinated, to save money, and to minimize disruptions to residents in this area during construction of the work. The City has also identified 20 existing stormwater outfalls discharging to the Lake -Worth Lagoon (Intracoastal Waterway) along the City's waterfront which can be 0000-Db-'I-INB -MD.DFHB B 1 bs6114-03/22/01 retrofitted with water quality improvement devices. The City has received a matching grant for design, permitting and construction of these devices, which will remove floating debris a~d settleable Or Suspended solids prior to discharge during storm [ to implement the project in a improvements, develOp design to be oversee the be the day of October ~OPE OF SERVI~S. public :echnical reVieWs, cost on management and work: 1. Stormwater'management System improvements for the NE 7~ to NE t0th Avenue Area~ 2. $. existing ouffalls. The indudet shall ; and cost estimating to detailed cost 'estimating for areas of' wOrk. The Construction shall be at the discretion of the City. 0000-DFHNB-MD.DFHBB 2 bs611403/22/01 VI. PROfECT STATUS REVIEW CDM shall provide the City with written monthly status reports during the duration of the project. PROIECT SCI-IEDULE CDM will commence services upon receipt of written authorization and will complete the professional engineering services within the schedules provided in Figure No. 1. COMPENSATION FOR SERVICES The total amount to be paid to CDMby the City under this Task Order for surveying, geotechnical investigation, design, permitting and cost estimating shall be a not-to- exceed amount of $234,610. A breakdown 6~ the labor hOurs and other costs associated with this Task Order are provided i and C. Once the design and permitting is completed and a Guaranteed Maximum:i three areas of work has been determined, the. EPCM contract, as Exhibit D, will be authorized for construction ~ IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year first above written. CAMP DRESSER & McKee INC. David F. Holtz, P.E. 6/ Assodate CITY OF BOYNTON BEACH, FLORIDA APPROVED AS TO ~:~'~ 0000-DFHNB-MD.DFHBB bs6114-03/22/01 3 Z ill n ill rr Z I: ~EXHIB~ A STORMWATER MANAGEMENT IMPROVEMENTS AND WATER MAIN REPLACEMENT ENGINEER, PROCURE AND CONSTRUCTION MANAGEMENT AT RISK (EPCM) SCOPE OF SERVICES of services for this. task order is develOped in three parts as follows. SYSTEM IMPROVEMENTS FOR THE N.E. 7'tn a! management systerr{ to improve by the residents in the z U.S. Highway I to the west, N.E. 7m Street to ~ Avenue to the soUth. The project area is immediately to the west of the Intracoastal .'looding during regular storm events. t area experiences tidal flooding across N.E. L929. The tasks comprising the of of services shall be as follows: GEOTECHNICAL INVESTIGAIIONS registered in the State of r area. A specific purpose topographic Spot elevations along the The survey contours will reflect culverts and depressed areas. The survey .will identify right-of-way roadways, and inverts of stormwater pipes 1. The horizontal' datum vertical datum will be the the surveyor will be used to perform a area and to develop design drawings format. Surveying services to required for project Lot included, but may be provided via results of the tests will ] improvements to existing swaleS. 0000~DFI-INB -MD.DFHB B bS6185-03/22/01 design A-1 locations to assist in the design the performed of the proposed detention pond. The pond and system of new swales or 1600 Feet ~md Wa~mr Mmin Replm::ememLt TASK 2.0 - HYDROLOGIC & HYDRAULIC ANALYSIS CDM will use the data collected from Task 1 to delineate the tributary areas for the watershed. CDM will divide the study area into subbasins and estimate the peak flows from a 2.5 inCh; 5- year, 24-hoUr; 25-year, 72-hour and 100-year, 72-hour events. Based on the topographic survey and information gathered on hydraulic structures, a hydraulic routing analyses will be performed for the recommended stormwater improvements. The results of the hydraulic analyses will be used to identify the maximum water-surface elevations for the low-lying areas that are currently being subjected to frequent flooding. TASK 3.0 - DESIGN OF THE STORMWATER MANAGEMENT SYSTEM 2VrPROVEM NTS Based on the survey and geotechnical data and design flows obtained from the hydrologic and hydraulic analysis, CDM will design the stormwater management system improvements for the project area. The. design will include new roadside swales, culverts, flap gates, one pump station, and the proposed detention pond to be located at the northeast comer of the project area. At many of: the locations within the project area, the existing swales will be improved to provide enhanced ~ management. CDM will size, locate and design the stormwater pump station runoff from the project area to the proposed detention pond. Services associated pump station, detention pond and other facilities for obtaining task order. A comer of NE 7m Street and NE 7m Avenue. It is anticipated that this area to be preserved in its current condition in order to permit the stormwatef improvements for . The City may have to purchase the property containing the mangrove wetlands and construct a berm as part of this project to exclude the area from the stormwater improvements area. An exis~g culvert under NE 7m Street which allows for tidal hydration of the mangrove wetlands may have to remain unchanged. Stormwater from NE 7th Avenue will be routed around the bermed wetland area. CDM will prepare construction drawings and specifications for the project, based on the topographic s~ey provided under Task 1, anc~ the design activities described above. The drawings will include the for the proposed detention pond, plan and profile for the roadside swales within the and details of proposed hydraulic structures including culverts, inlet structures, ouffall flap gates and pumps. A description and estimate of the number of drawings required to depict work for the area improvements are presented in Table A-1. 0000-DFHNB-MD.DFHBB A-3 bs6185,.-03/22101 Table A-1: Drawings List - Stormwater Management System Improvements for the NE 7~h Street Area Sheet Description No. of Sheets TASK 4.0 - ti-re PERMITI'~G ASSISTANCE District (SFWMD) to submit permit for the : management system design :and NE 7· Avenue. Wetlands mitigation nor hydrologic City may need to acquire this property for ; to two will be TASK AWARENESS CDM will p~cipate in meetings with City staff, as required during the course of. the project. City and assist in project . it is assumed that handouts/brochures to inform the project area. CDM will also t Commission and residents. For to four (4) meetings. TASK 6.0 - iCOST ESTIMATING CDM will prepare the engineer's estimate of probable cost of construction for the implementation of this project at the 60 percent and 90 percent stages of the design process. At the final design stage (i.e., 100 percent) CDM will prepare the final engineer's cost estimate for construction which will be used to establish a Guaranteed Maximum Price for the implementation of this project as an amendment to this task order (Exhibit D). 0000-DFHNB-MD.DFHBB A4 bs6185-03/22/01 II. . WATER MAIN REPLACEMENT CDM will review the design drawings prepared by the City for the replacement of water main in the area bounded by NE 7m Avenue to the south, NE 12m Avenue to the north, U.S. Highway 1 to the west, and the Intracoastal Waterway to the east. An estimate of the cost of construction of the project will be prepared as the basis for development of the Guaranteed Maximum Price for this work. The desCription of tasks comprising the scope of services shall be as follows: TASK 1.0- REVIEW OF WATER MAIN DESIGN CDM will conduct a technical review of the design of the water main performed by the City of Boynton Beach. This technical review will only focus on the constructability aspects 0f the project and will not address the performance of the proposed water main system (i.e., no pipe network calculations or modeling will be performed to evaluate the hydraulic performance). TASK 2.0 - COST ESTIMATING CDM will prepare the engineer's estimate of probable cost of construction for the implementation of this project. The cost estimate will be the basis for establishment of a Guaranteed Maximum Price for the implementation of this project as an amendment to this task order (Exhibit D). III. TWENTY WATER QUALITY IMPROVEMENT DEVICES AT EXISTING OUTFALLS CDM will design twenty water quality improvement devices at various outfall locations within the City of Boynton Beach, as shown, in Figure A-1. The design process will include the hydrologic and hydraulic analysis for watersheds tributary to the twenty outfall Structures, preparation of construction drawings and technical specifications for various design elements that are required for the installation of the 20 deviCes. A description of the tasks comprising the scope of services shall be as follows: TASK 1.0- SURVEYING CDM will employ the services of a licensed professional surveyor, registered in the State of Florida to assist in surveying tasks. The surveying effort will include the location of known underground and overhead utilities, buildings, roadways, and other structures within the easement for the outfall structures and at least 20 feet on either side of the proposed location for the treatment devices. The survey data will also include the information on pipe sizes, inverts, material types, inlets, outfalls, road crown elevations, pavement elevations, and other information pertinent to this project. In addition, a special-purpose topographic survey will be performed in the vicinity of the outfall (generally to the east of US Highway 1) to assist CDM in delineating the tributary area to each outfall. Surveying services to map and provide legal 0000-DFHNB-MD.DFHBB A-5 bs6185-03/22/01 descriptions of easements which may be required for projeCt implementation are not cUrrently identified and are not included, but may be provided via amendment of this task order, if needed. TASK 2.0 -. HYDROLOGIC ~ HYD~ULIC ANALYSIS twenty order however, TASK 3.0 - CDM will improvement ~ quality improvement device be chosen and designed to ha~c~e plans, relevant to-this Table A-2. Table A-2: Drawing Sheet Description t Location ~ General Notes Location Devices Details Total TASK 4.0- CDM will Management methodology 0000-DFttNB-MD.DFHBB hs6185-03/22/01 PERMITTING ASSISTANCE A-6 quality to identi~ the water !0 locations. Appropriate-devices will for the 2.S-inch storm and loading drawings will include utility locations based on the presented in 'Water Quality No. of Sheets 1 10 3 17 !or submittal to the South Florida Water The application will include the and design flows obtained from the hydrologic analysis and other pertinent information. The design will include the design criteria and procedures used for sizing the devices for each loCation based on design flows. This proposal is based on responses to two Request for Additional Information (RAds) from regulatory agendes. The Cit-y will be responsible for all fees associated with the permit applications. TASK 5.0 - COST ESTIMATING CDM will prepare the engineer's estimate of probable cost of cOnstruction for the implementation of this project at the 60 percent and 90 percent stages of the design process. At the final design stage (i.e., 100 percent) CDM will prepare the final engineer's cost estimate for construction, which wit[be used to establish a Guaranteed Maximum Price for the implementation of this project as an amendment to this task order. 0000-DFHNB-MD.DFHBB A-7 bs6185-03/22/01 EXHIBIT B-1 PROJECT BUDGET PROJECT: Stormwater Part h Street Area CONTRACT REFERENCE: Agreement between City of Boynton Beach and Camp Dresser & McKee Inc. dated October 4, 2000 Labor Category. Hours Hourly Rate (S/hr) Officer Technical Specialist Project Director Senior Engineer/Scientist Professional II Professional I Senior Support Services Staff Support Services Clerical TOTAL LABOR HOURS 2 $170 112 $144 62 $138 148 $123 280 $78 236 $67 44 $99 138 $61 94 $39 1,116 TOTAL LABOR COST OTHER DIRECT COSTS Reproduction and Supplies Travel Computer and CAD Data and Media 2,000 500 1,500 1,000 TOTAL OTHER DIRECT COSTS OUTSIDE PROFESSIONAL SERVICES (With 10% Mark-Up) Surveying Geotechnical Investigations TOTAL OUTSIDE PROFESSIONALS E. 7m Total $97,320 $5,000 $26210 $1,540 $28,050 TOTAL ESTIMATED COST UPPER LIMIT AMOUNT $130,370 $130,370 0000- DFH N B-MS,DFI"IWP B S:~X)OO~x,~617S.d(IO,3/22/O I B-1 - ' EXHIBIT B-2 PROJECT BUDGET PROJECT: Stormwater Management Improvements and Water Main Replacement Engineer, Procure and Construction Management at Risk (EPCM) Part II: Water Main Replacement CONTRACT REFERENCE: Agreement between City of Boynton Beach and Camp Dresser & McKee Inc. dated October 4, 2000 Labor Category_ Hours Hourly Rate ($/hr) Total Of~cer Technical Specialist Project Director Senior Engineer / Scientist Professional II Professional I Senior Support Services Staff Support Services Clerical TOTAL LABOR HOURS 0 $170 0 $144 4 $138 12 $123 16 $78 16 $67 0 $99 0 $61 4 $,39 52 TOTAL LABOR COST OTHER DIRECT COSTS Reproduction and Supplies Travel Computer and CAD Data and Media TOTAL OTHER DIRECT COSTS TOTAL ESTIMATED COST UPPER LIMIT AMOUNT 50 50 $100 $4,604 $4,600 000~-DFHNB-MS.DFHWPB S:~O00~s6175.d~1 B-2 PROJECT: EXHIBIT B-3 PROJECT BUDGET Outfalls (EPCM) CONTRACT A REFERENCE: Camp Labor Category Hours Officer Teclmical Specialist Project Director Senior Engineer/Scientist Professional II Professional I Senior Support Services Staff Support Services Clerical TOTAL LABOR HOURS 5 70 58 100 260 128 28 144 106 899 TOTAL LABOR COST OTHER DIRECT COSTS Reproduction and Supplies Travel Computer and CAD Data and Media 1~500 500 tS00 1,000 TOTAL OTHER DIRECT COSTS OUTSIDE PROFESSIONAL SERVICES (With 10% Mark-Up) Surveying TOTAL OUTSIDE PROFESSIONALS TOTAL ESTIMATED COST UPPER LIMIT AMOUNT Beach and 2000 Hourly Rate (S/hr) $170 $144 $138 $123 $78 $67 $99 $61 $39 To~l $75,780 $4.500 $19,360 $19,360 $99.640 $99.640 0000-DFHNB-MS.DFHWPB S:~)000~bs6175.~1 B-3 NOTE: This exhibit is provided as a draftlof the Agreement which may be executed between the City and CDM once the construction cost of the project (Guaranteed MaximUm Price) has been determined. EXHIBIT D AGREEMENT FOR ENGINEERING, PROCUREMENT, AND CONSTRUCTION MANAGEMENT PROJECT ARTICLE 1 -TItE PROJECT TEAM AND EXTENT OF AGREEMENT CDM agrees to furnish or arrange for the engineering and'construction services set forth herein and agrees to furnish project management and administration and superintendence~ and to use its best efforts to complete the Project in an expeditious and economical manner consistent with the interests of the OWNER. 1.1. The __Pr~,,ject Team. CDM, the OWNER and CDM's consultants and subcontractors, collectively Called the '~roject Team, shall work cooperatively from the beginning of design through Constm6tion completiOn. 1.2. Extent of Agreement. The Contract Documents represent the entire agreement between the OWNER and CDM and supersede all prior negotiations, representations or agreements. This Agreement shall not be superseded by any provisions of the docUments for construction and may be amended only by written instrument signed by bo? OWNER and CDM. While the OWNER may issue ~eParate purchase ordersI to CDM to satisfy OW~'ER s purchasing requirements, the terms and conditions 0fi any such purchase orders issued after the date of this Agreement shall be deemed to be void and the terms and!conditions of this:Agreement shall be deemed substituted therefor. 1.3. Definitions. 1.3.1. The Project is described in Exhibit 1 and is to performed and located on ]property of the Ci.ty of Boynton Beach, Florida. 1.3.2. The Work is the engineering, permitting, procurement, construction, start,up, training and demonstration period (turnkey) services required to complete the Project. 1.3.3. General conditions costs are defined to include the following items: field office trailers; storage trailers; temporary parking; roads; laydown areas; temporary construction fence; security; temporary toilets; temporary electrical service; temporary water and sewer service; drinking water/ice; telephone expenses; dUmpster; project sign; site communication; copier; facsimile machine; computer(s) with. printer(s); office furniture; office supplies; Federal Express/mail; plans and specification copies; project photographs; aerial; video taping; living allowance; relocation; travel expense (mileage); uuckinghnob'flizafion and demobilization; project vehicles; fuel; small toOls; miscellaneous consumables; miscellaneous supplies; standby equipment (pumps, air compressor(s), welder; forkiiffflull; health and safety expense; employment drug/physical testing; surveying; testing; dust control; clean roads; daily cleanup; final cleanup; starmp/tesfing; training; as-builts; Submittals; and warranty. 1.3.4. Terms. As used in this Agreement the following terms shall have the meanings set forth below: "Acceptance" means demonstration.by CDIvl that a Phase of the Project has been designed and conslructed in accordance with all requirements of this Agreement. "Affiliate" means any person, corporation or other entity directly or indirectly controlling or controlled by another person, corporation or other entity or under direct or indirect common control with such person, corporation or Page 1 S:\0000~BS6177.doc- 3/15/01 (4) any other change mutually agreed to by the parties. "Close-Out Requirements" means CDM obligations for closing out the Project and completing documentation of the Project pursuant to this Agreement (including such matters as submittal of record drawings, surveys, and manuals; cleanup and removal of construction materials and debris from the site; and all other matters which this Agreement requires CDM to do and perform as part of the completion and winding-up of' CDM obligations). "Construction Change Authorization' is a change to the Scope of Work signed by the OWNER Project Manager that does not alter the total Award Amount or the completion date. "ConstructiOn Scope of Work" shall mean the activities of CDM commencing after completion of the WNER-approved design documents, and includes bidding, procurement, construction mobilization, lanning and permitting, the uPdated deVelopment of the Revised Estimatei and construction of the Project to Substantial Completion and Final Completion. "Contract Documents" consists of: (1) this Agreement; (2) Exhibit 1 and the OWNER-approved Design Documents; and (3) Exhibits 2 and 3. "Cost of Work" shall mean the actual sum appended or incurred by CDM in implementing a defined or identified part or portion of a phase of the Project, with such sum verified by bid or award amount and evidence of sum paid to those performing the work, delivering or installing equipment, providing services or otherwise properly completing the work. ..... Cost Substantiation" means, with respect to any cost reasonably incurred or to be incurred by CDM which is directly or indirectly chargeable in whole or in part to the OWNER hereunder, delivery to the OWNER of a certificate signed by an officer of CDM, setting forth the amount of such cost and the provisions of this Agreement under which such cost is properly chargeable to the OWNER, stating that such cost is a fair market price for the service or materials supplied or:to'be supplied and: that such services and materials are reasonably required pursuant to this Agreement, and accompauiedby copies of such documentation as shall be necessary to reasonably demonstrate that the cost as to which Cost Substantiation ,is required has been or will be incurred. "Design DOcuments" or "Owner Approved Design Documents" shall mean the design documents prepared by CDM pursuant to Task Order No. 01-05 to the CD/vi/OWNER Agreement dated and approved by OWNER prior to the development of the GMP. "OWNER Fault" means any breach (including the untruth or breach of any OWNER representation or warranty herein set forth), failure, nonperformance or noncompliance by the OWNER under this Agreement (whether or not attributable to any officer, member, agent, employee, subcontractor of any tier, the OWNER Engineer, or any independent conlxactor of the OWNER) which is not directly attributable to any Uncontrollable Circumstances or CDM Fault and which materially and adversely affects CDM's rights and obligations or ability to perform under this Agreement. S:\0000XBS6177.doc- 3/15/01 Page 3 other entity. "Agreement (Contract)" means this CDM Agreement between CDM and the OWNER, including the Schedules, as the same may be amended or modified from time to time in accordance herewith. "Agreement Date "means the date set forth .on page one of this Agreement. "Applicable Law" means any law, rule, code, regulation, requirement, action, determination, guidelines, or order of, or any legal permitting, construction, equipping, financing, ownership transaction or matter c the building codes, the payment of 1 "Award Amount" shall mean ~ the GMP negotiated by , applicable, relating to the design, or testing, of the Project, or any other without limitation,, any of environmental protection, the OWNER for the Project which shall include t phase. "Certificate of Substantial Completion" shall mean the certification issued by the OWNER with this Agreement. "Change in Law" means any of the following events or Conditions having a material and adverse effect on the performance by the parties of their respective obligations under this Agreement (except for payment obligations), or on the design, construction, equipping, start-up, or testing, of the Facility: (1) the adoption, promulgation, issuance, modification or written change in administrative or judicial interpretation on or a~ter the Agreement Date of any Applicable Law, unless suth Applicable Law was; on or prior to the Agreement Date, duly modified or changed in interpretation, in each case in any further action by any governmental body; and/or (2) the order or judgment of any governmental body, on or after the Agreement Date, to the extent such order or ~ or lack of reasOnably diligence of CDM or of in Law; Pr°rider} ho~evet' that the contesting in good' faith or the failure of good faith to contest any sUCh order or judgment shall not constitute or be construed as such a willful or negligent action, error, Or omission or lack of reasonable diligence. "Change Order" meam a written order issued by the OWNER to CDM, and signed by CDM after execution of this Agreement, authorizing ~or requiring: Additional labor, services, material or equipment not required by the OWNER at the time this Agreement was executed; (I) (2) (3) an extension to the var/om completion dates; an increase or reduction in the Guaranteed Maximum Price or the cost of work; any other change in this Agreement prior to the Substantial Completion; or S:\0000~BS6177.doc~ 3115101 Page 2 "Insurance Requirements" shall mean the OWNER's insurance requirements for CDM under the terms of this Agreement. "Legal Entitlement" means any and all permits, licenses, approvals, authorizations, consents and entitlements of Whatever kind and however described which are required under Applicable Law to be obtained or maintained by any person with respect to the construction of the Project or the performance of any Other obligation of CDM under this Agreement. "Notice to Proceed" those formal written notices from the OWNER to CDM directing CDM to commence the engineering services and construction improvements. "OSHA" shall mean the United Stated Department of Labor Occupational Safety and Health Administration. "Operations and Maintenance ManuaF' shall mean the manual to be provided by CDM at Substantial Completion. "OWNER's Contingency Fund" is a fund available exclusively to the OWNER for additional work, changed site conditions, or other enhancements to the Project beyond the OWNER-approved Design Documents which the OWNER may elect to undertake. "Payment Bond" means the bond in the amount of the Guaranteed Maximum Price, which guarantees to the OWNER CDM's timely payment for all labor, materials, supplies, implements, and machinery and equipment to be furnished with respect to the Project. "Performance Bond" means the bond in the amount of the Guaranteed Maximum Price, which guarantees to the OWNER CDM's timely performance of its obligations under this Agreement for the benefit of the OWNER. "Project Schedule" shall mean the schedule attached hereto aa Exhibit 2. "Scheduled Substantial Completion Date" means the date set forth in the Schedule for Substantial Completion of the Scope of Work. This date may be adjusted dueto delay caused by Uncontrollable Circumstances, OWNER Fault, or by OWNER-requested Change Orders. "Subcontractor" means every person .(other than employees of CDM) employed or engaged by CDM or any person directly or indirectly in privity with CDM (including every sub-contractor of whatever tier), whether for the furnishing of labor, materials, equipment, supplies, services, or otherwise. It inclfides the term '~l'rade Contractor" or "Trade Subcontractor". "Substantial Completion" means construction has been completed in accordance with the Contract Documents, to the extent that the OWNER can use or occupy the entire Project, or the designated portion of the Project, for the use intended without any outstanding, concurrent Construction at the site, except as may be required to complete or correct punch List items. Prerequisites for Substantial Completion, over and above the extent of construction completion required, include (a) receipt by the OWNER of acceptable, specified O&M documentation, (b) all systems have been successfully:tested and demonstrated by CDM for their intended use, and (c) completion of all specified OWNER staff training. Items not included aa prerequisite for Substantial Completion include without limitation (a) painting, (b) pordons of the building not required for production of consumable water, and (c) landscaPing. This date shall be confirmed by a Certificate of Substantial Completion signed by the OWNER and CDM. The Certificate of Substantial Completion shall State the respective responsibilities of the OWNER and CDM for security, maintenance, heat, utilities, damage to the work, and insurance. The Certificate of Substantial Completion shall also list the items to be completed or corrected, and establish the time for their completion and correction. Pag~ 5 S:\0000~BS6177.doc- 3/15/01 "OWNER Project Manager/Authorized Representative" shall mean the individual identified in this Agreement, or any successor project manager designated by the OWNER in writing, including such functions as construction inspections, registered project representative activities including authorization to use OWNER!s Contingency, project oversight and review of testimony. ,Day" means calendar day unless otherwise expressly stated in this Agreement. "CDM Construction Manager" shall mean the individual designated by CDM pursuant to this Agreement. "CDM Fault" means any breach (including the untruth or breach of any CDM representation or warranty herein set forth), failure, nonperformance or noncompliance by CDM under this Agreement (whether or not attributable to any officer, member, agent, employee, Subcontractor of any tier, or independent Contractor of CDM or any Affiliate of CDM) which is not directly attributable to any Uncontrollable Circumstance, or OWNER Fault and which materially and adversely affects the OWNER's rights and obligations or ability to perform under this Agreement. "CDM Project Manager" means the individual(s) designated as the individual(s) to Carry out the functions of CDM under this Agreement. "Facility" means the water mains, stormwater management system and stormwater ouffalls and all roads, grounds, additions, repairs, replacements, improvements and appurtenant structures thereto, machinery and equipment therefor, and facility modifications thereto, to be designed, constructed and installed on the site in accordance with Exhibit 1. "Final Completion" means completion of a Phase by CDM in accordance with the Contract Documents, certified to the OWNER by CDM, and accepted in writing by the OWNER: (a) The Construction; (b) all testing; (c) demonstration by CDM that the Work functions as required by the Contract Documents and meets all Contract requirements;-(d) resolution of all outstanding system deficiencies and punch-list items, if any; (e) delivery of all Record Drawings (with revisions made after Substantial Completion), annotated submittals and design document deliverables; (f) submittal, acceptance, and delivery of the 100% complete operation and maintenance manual, s; (g) delivery of warranties, vendor inspection certificates and Bonds; (h) all pre-requisites for final payment; and (i) submittal of CDM's request for final payment and acceptance. "Final Completion Date" means the date specified by this Agreement for Final Completion of the Improvements as applicable in the context of this Agreement. "Guaranteed Maximum Price (GMP)" the fixed amount agreed to by and between the OWNER and CDM for CDM to design and construct the Project based on the OWNER-approved Design Documents. The components of the GMP are set forth as Article 7. "Hazardous Waste" or "Hazardous Materials" means any substance or material identified now or in the future as hazardous, toxic or db. ngerous under any federal, state or local law or regulation, or any other substance or material which may be considered hazardous or otherwise subject to statutory or regulatory requirements governing handling, disposal and/or clean up. S:\0000~BS6177.doc- 3/15/01 Paga4 (h) Circumstances; any impact of prevailing wage or similar law, customs or practices on CDM's consamction or operating costs. "Utilities" means any and all utility services and installations whatsoever (including gas, water, sewer, electricity, telephone, and telecommunications), and all piping, wiring, conduit, and other fLxtures of every kind whatsoever related thereto or used in connection therewith. "Warranty Period" has the meaning set forth in Section 2.2 of this Agreement. 2.1 ARTICLE 2 - CDM'S RESPONSIBILITIF_~ CDM's Services. CDM shall furnish through its own employees or engage subcontractors or subconsultants to furnish the following services for execution and completion of the Agreement, which shall constitute the '"*Vork." 2.1.1. CDM shall proVide the engineering services during construction for the Project in accordance with the laws of,the state in which the project is located. The engineering services shall be performed with the skill and care which would be exercised by comparable qualified professional engineers performing similar services at the timesuch services are performed and under similar conditions. 2.1.2. CDM will secure on behalf of the OWNER and with full and complete cooperation of OWNER any construction building permits necessary for the construction of the Project. 2.1.3. CDM will provide the OWNER with a preliminary schedule for the engineering services and construction of the Project. This Schedule shall indicate the dates for the starting and completion of the various stages of the engineering services and construction, and shall contain the necessary information to allow the OWNER to monitor the progress of the Work. It shall be ~vised as required by the conditions of the Work and for those conditions and events which are beyond CDM's control. 2.1.4. 2.1.3.1. CDM's total liability to the OWNER for any ar damages whatsoever arising out of or in any wa services or work, ,or this Agreement, from any ca CDM's negligence, errors, omissions, breaches ot not exceed the total mount paid by the OWNER CDM will provide all materials and equipment, supervision, i equipment and specialty items necessary to execute and con Work as described in Exhibit I attached hereto. d all injuries, claims, losses, expenses or r relating to the Project, the site, CDM's me or causes, including but not limited to warranty or contract or strict liability shall to CDM under this Agreement. aspectiol~, testing, labor, tools, construction tplete construction of the Project Scope of 2.1.5. CDM shall take necessary precautions for the safety of its employees on the Work, and shall comply with all applicable provisions of federal, state and municipal safety laws. CDM shall include provisions in all subcontracts which require its subcontractors to be responsible for the Safety of their employees on the Work, and to comply with all applicable provisions of fedeml~ state and municipal safety laws. It is agreed that CDM shall have no responsibility for the abatement of safety'hazards resulting from work at the job site carried on by the OWNER's separate contractors, orI by the OWNER or persons for whom the OWNER is responsible. OWNER will comply with, and agree to cause any such separate contractors or persons to comply fully with all applicable provisions of federal, state and municipal safety laws and regulations. Page 7 S:\0000~BS6177.doc- 3/15/01 "Substantial Completion Date" shall mean the date CDM achieves Substantial Completion of the Improvements, as applicable in the content of this Agreement. "Supplier" is a manufacturer, fabricator, distributor, materialman or vendor having a direct contract with CDM or with a Subcontractor to furnish materials or equipment to be incorporated in the Project: "Term of this Agreement" means the period commencing on the EffectiVe Date of this Agreement and through the completion or correction of all Punch List items. "Testing" means the tests, plans and procedures set forth in Schedule A hereto to be conducted prior to and as a condition of Substantial Completion to demonstrate Acceptance. ~'Uncontrollable Circumstance" means any act, event or condition (whether affecting the Facility, the Project, the OWNER, CDM; or any of the OWNER's or CDM's respective Subcomractors or Suppliers), which, and only to the extent that it materially and adversely affects the ability of either party to perform any obligation hereunder (except for payment obligations), provided that such act, event or condition, (a) is beyond the reasonable contro! of the party relying thereon as justification for not performing an obligation or complying with any conditions required of such party under this Agreement; (b) is not the result of the willful or negligent act, error or omission of such party; and (c) such act, event or condition could not have been prevented by the exercise of reasonable diligence; (d) has time impact affecting the critical path of an event or the entire Project. (1) Inclusions: Subject to the foregoing, such acts or events shall include, but not be limited to, the following: (2) (a) Co) (c) (d) (e) (0 (g) an act of God, hurricane, lightning, earthquake, fire, flood, plague, tornadoes, other abnormal weather conditions not reasonably :anticipated, explosion, sabotage or similar occurrence, acts of a public enemy, extortion, war, blockade or insurrection, riot or civil disturbance; a Change in Law; the preemption of materials or services by a governmental body in connection with a public emergency or any condemnation or other taking by eminent domain of any portion of the Facility or site; the presence at the site of (a) subsurface structures, materials or eondifious having archaeological siguifieance; and CO)any habitat of endangered species; the presence' of pre-existing Hazardous Waste upon, beneath or migrating to or from the site; permitting delays impacting the Project to the extent not caused by CDM; and the City of Boyaton Beach Fault. Exclusions: It is specifically understood that none of the following acts or conditions shall constitute Uncontrollable Circumstances: (a) general economic conditions, interest or inflation rates, or currency fluctuations or exchange rates; Co) changes in the financial condition of CDM, or its Affiliates affecting the ability to perform their respective obligations; (e) the consequences of error, neglect or omissions by CDM, and any of its Affiliates in the design or construction of the Project or in the performance of any other work hereunder; (d) any increase for any reasOn in premiums charged by CDM's insurers or the insurance markets generally for the insurance required under this Agreement; (e) the failure of CDM to secure patents or licenses in connection with the technology necessary to perform its obligations hereunder; (0 the failure of any Subcontractor or supplier to furnish labor, materials, services or equipment for any reason other than for acts or events which are defined as Uncontrollable Circumstances; (g) equipment failure except when due to acts or events specifically enumerated herein as Uncontrollable Page6 S:\0000kBS6177.doc- 3/15/01 3.1. 3.3. 3.4. 3.5. 3.7, 3.9. 3.10. 3.11. 2.2.3. CDM will not be responsible for any errors or Omissions contained in or omitted from any certificates and/or independent analyses of work conducted by and/or information provided by independent laboratories or other independent contractors retained by CDM in connection with CDM's services provided to the Owner. 2.2.4. CDM will collect all equipment manuals and deliver them to the OWNER. ARTICLE 3- OWNER'S RESPONSIBILITIES The OWNER shall provide full information regarding its requirements for the Project; The OWNER shall designate a representative who shall be fully acquainted with the Project and have the authority to promptly apProve changes in the scope of the Project that are subject to the OWNER's contingency, promptly render approvals and decisions, and furnish information expeditiously and in time to meet the dates set forth in the Schedule. The OWNER's designated representative is · To the extent currently available through OWNER and not a part of the Scope of Work, the OWNER shall furnish for the entire Project area: any and all topographical surveys describi~ng the physical characteristics; soils reports and subsurface investigations; legal limitations; utility locations; and a legal description, including a property survey and Project benchmark. CDM shall not be held liable for personal and/or pr°perty damage caused by CDM s interference vath subterranean structures such as pipes, tanks and utility lines that are not correctly shown on the documents or that are not contained in written information provided to CDM prior to the commencement of the Work. However, CDM shall be responsible for CDM negligently Causing damage to pipes correctly identified and in good working order. The OWNER shall cooperate fully in CDM's efforts, to secure and pay for necessary approvals, easements, assessments and charges required for the construction, connection, use, or occupancy of permanent s~xuctures or for permanent changes in existing facilities. The OWNER will cooperate fully in CDM's efforts to secure permits necessary for the Project. If the OWNER becomes aware of any fault or defect in the Work or nonconformance with the OWNER-approved Design Documents, it shall give prompt written notice thereof to CDM. OWNER shall bear-the cost of any bonds that it may require CDM to maintain in connection with the Project. The services, documen~fion and information required bY the above paragraphs shall be furnished with reasonable promptness'at OWNER s expense. EXcluding the documents and information prepared and provided by CDM, CDM Shall be entitled to rely upon the accuracY and the completeness of all such information and documentation provided by the OWNER. The OWNER shall furnish reasonable evidence satisfactory to CDM, prior to signing this Agreement, or upon written request of CDM from time to time thereafter, that sufficient funds are available and committed to pay for CDM's total estimated charges for the Work. Whether or not CDM elects to proceed with work without having received such evidence, CDM may thereafter stop work upon fifteen (15) days' prior written notice if such evidence has not been furnished within a reasonable time after any stich request. The OWNER shall have no contractual obligation to CDM's subcontractors and subconsultants and shall communicate with such subcontractors and subconsultants only through CDM. The OWNER shall pay for all utility connection fees'and special facility charges 'rendered by utilities for connection of permanent utility services to the Project. S:\0000~BS6177.doc- 3/15/01 Page9 2.1.6. CDM shall keep the premises of the Project free from accumulation of excess constmcti6n materials and litter caused by: CDM's operations. At the completion of the Work, CDM shall remove from the Project CDM's tools,: surplus materials, construction equipment, and machinery 2.1.7. CDM shall prepare Change Orders for the OWNER,s approval and execution in accordance with this Agreement. 2.1.8. CDM shall maintain in good order at the site one record copy of the drawings, specifications, product data, samples, shop drawings, Change Orders and other Modifications, m~rke.~l currently to record changes made du~ng construction. These shall be delivered to the OWNER Upon :completion of the Project and final payment. 2.1.9. 2.1.10. CDM's scope of services is set forth in Exhibit 1 attached hereto and made a part of this Agreement. CDM's services shall not include expressly or by implication any analysis, determination or opinion as to whether the OWNER is in ComPliance with federal, state or local laws, statutes, ordinances or regulations. 2.1.11. Unless wast~ CDM's services shall not include directly or indirectly storing, , treating or monitoring hazardous Substances, hazardous oils. 2.1.12. Any reference to liquidated damages contained elsewhere in this Agreement or doc..u~m..ents incorporated by reference are not applieable m this Agreement2 The sole damages for CDM s idelay in final completion shall result in a five percent (5%) reduction per month in the share of the savings in costs described in Article 7.1.3. 2.2. Standards and Completion. 2.2.1. CDM agrees that all materials and equipment furnished under this Agreement will be new, unless otherwise specified, and that all construction work will be of good quality, flee from improper workmanship and defective materials. CDM will not be responsible, however, for defects caused by OWNER modifications, abuse, and/or improper maintenance or operation. CDM agrees to correct all work performed by it under this Agreement which proves to be defective in material or workmanship within.a period of ninety (90) days after completion of the Work as defined in Paragraph 2.2.1.1 provided ~hat oWNER fimfishes written notice of such defect within sUCh ninety (90) day period. CDM provides no warranty, express or implied, for OWNER-furnished equipment or equipment, accessories and parts manufactured by others, However, any warranty or'guarantee obtained by CDM from any such manufacturer shall be deemed to have been obtained for the benefit of OWNER and will. be; assigned to OWlqER. The foregOing standards and warranties are the sole warranties extended by CDM and are in lieu of all other warranties express or implied, including but not limited to, the implied warranties of merchantability and fitness for purpose. 2.2.1.1. Unless otherwise expressly noted, the term completion in this Agreement shall mean substantial completion, Substantial completion is the stage of progress when the Work or a designated portion thereof is sUfficiently complete in accordance with this Agreement so that the OWNER can utilize the Work for its intended use. The contract time is the time within which CDM is to' achieve substantial completion of the Work, subject to adjustments as set forth in this Agreement. 2.2.2. CDM will secure required certificates of inspection, testing or approval required for building construction and deliver them to the OWNER. S:\0000~B$6177.doc- 3115101 Page. 8 ARTICLE 4 - SUBCONTRACTS 4.1. CDM shall select competent Subcontractors and shall be responsible for the management of the Subcontractors' performance of their work. Should an appropriate Subcontractor not be identified for a specific work item, CDM, with the OWNER's approval, will perform the work with its own forces. ARTICLE 5 - CONTRACT TIME SCHEDULE AND SUBSTANTIAL COMPLETION 5.1. Contract Time. 5A.1. The Work to be performed under this Agreement shall be performed in accordance with the Schedule provided pursuant to Paragraph 2.1.3. 5.1.2. The term "day" as used in this Agreement shall mean calendar day, unless otherwise specifically designated. 5.2 Delays. 5.2.1. If CDM is delayed at any time in the progress of the Project by any act of the OWNER, or any separate contractor employed by the OWNER or by the action of any governmental agency or regulatory body or third party citizens' group, or by unreasonable delays in regulatory permitting, or by change orders in the Project, or by labor disputes, fire, unusual delay in transportation, unreasonable delay in issuance of building permits or zoning or utility services, unusual delay or shortages in material supplies, adverse weather conditions not reasonably anficipatable, unavoidable casualties, acts of God, or any other causes beyond CDM's reasonable control, then the time within wtfich the scope of work is to be completed shall be adjusted accordingly. 5.2.2, If CDM is delayed by any act of OWNER or by any separate contractor employed by OWNER or for any other cause for which the OWNER is responsible, then in addition to an extension of the contract time, CDM will be compensated for all costs which it incurs as a result of such delay, and a change order will be issued therefore. ARTICLE 6 - CHANGES IN THE PROJECT 6.1. Change Orders. 6.1.1. Any work not contained in the scope of work set forth in Exhibit 1 and defined under construction contingency shall be a change and shall be performed by CDM only pursuant to a verbal authorization followed by a written Change Order to this Agreement signed by OWNER and CDM. Such a Change may increase or decrease the Work within the general scope of this Agreement. If this Change causes an increase in the cost of the Work, or of the time required for the performance of the Work, CDM shall be paid a lump sum acceptable to both parties and/or shall be granted an extension of the contract time. The lump sum shall be the labor cost, actual subcontractor cost, plus a fifteen percent (15%) fee. 6.1.2. The proposal document may identify specific items that are not included in the Contract Price. The Work included in this Agreement shall be limited to that work specifically set forth in Exhibit 1. The performance or furnishing of any such items by CDM that are not included in the scope of work set forth in Schedule A shall be pursuant to a Change Order issued in accordance with Paragraph 6.1.1. S:\0000~BS6177.doc- 3/15/01 Page 10 6.2. 6.3. 6.1.3. In the event OWNER requests CDM to develop information necessary for the consideration of a change in the Project, and such a change is not adopted, OWNER shall reimburse CDM for the costs which it incurs in connection with such efforts. The total reimbursement shall include the actual cost incUrred plus a fifteen percent (15%) fee. affect the Work are by~ Regulatory Changes. CDM sh~ be compensated forchanges in the Work necessitated b~ ', in:Law. ARTICLE 7 - COMPENSATION AND PAYMENTS TO CDM 7.1. Compensation and Payments 7.1.1. This is an "Open Book" Agreement where CDM agrees to provide OWNER access to its records to confirm subcontract cost incurred for consUmction and procurement (excluding imnp sum fees); 7.1.2. CDM shall~ be compensated for the performance of the work. The Guaranteed Maximum Price for CDM to perform the engineering services during eonstmcfion, procurement, and constructiOn management and construction as described in Exhibit 1 shall have the following components: (1) 'Labor and Out-of-Pocket Cost Associated with Engineering Services During Construction - The engineering services during construction for work done byCDM at the hourly billing rate for the category of the individual performing the engineering services during construction for all time directly chargeable to the Project plus actual out-of-pocket costs. The schedule of hourly billing rates is contained in Exhibit 3. (2) Labor Cost of the Construction Management and Construction- The Lump Sum direct labor cost associated with the management and supervision (office and field) of the work to be performed, times a 2.5 labor multiplier~ (3) Project Cost - The Lump Sum costs associated with General Conditions, Bonds, Insurance, Permits, times a 10% markup. (4) Overhead and Profit - The. Lump Sum cost' associated with the actual construction. The overhead cost is 8% of.the estimated construction cost, and the profit is 15% of the estimated construction cost. (5) Coustmcfion SubcontractOr Cost- The maximum cost for material and construction which the Owner will incur for the defined scope. (6) Construction Contingency - A 5% contingency to be used for unanticipated site conditions encountered during construction. 7.1.3. The OWNER and CDM have agreed in the interest of controlling costs and providing incentive to share cost in the following manner:. S:\O000kBS6177.doc- 3115101 Page 11 (1) Any savings in construction subcOntractor costs from the original schedule of values of subcontract work (Article 7.1.Z5)will be shared fifty percent by the OWNER and fifty percent by CDM. (2) Any unused portions in construction contingency (Article 7.1.2.6) will be shared fifty percent with CDM. 7.1.5. CDM shall submit to the OWNER monthly invoices covering the period ending on the last day of the preceding mOnth which shall indicate the total amount due to CDM for w°rk PerfOrmed for the preceding month. The OWNER shall have the right ,of inspection and verification of CDM's invoice and shall have five (5) days within which to approve the invoice. 7.1.4. If the OWNER fails to make any payment due CDM for services and expenses within thirty (30) days after receipt of CDM's statement therefor, the amount due. CDM shall include an additional charge of one percent (1%) per month of all amounts due but not paid after said thirtieth day. As an additional remedy, CDM may, after giving seven (7) days' written notice to the OWNER, suspend services under this Agreement until CDM has been paid in full for all amounts due for services, expenses and charges. OWNER agrees to pay CDM all costs of collection including but not limited to reasonable attorneys' fees; collection fees and court costs incurred by CDM to collec~ properly due payments. 7.2. Title Free of Liens. CDM agrees that title to all Work, including materials and equipment incorporated in the Project covered by any invoice will pass to the OWNER upon receipt of payment of the full amount of CDM's invoice therefor, free and clear of all liens, claims, security interests or encumbrances, hereinafter referred to as Liens. CDM, at its own expense, shall indemnify, defend andsave harmless OWNER against Liens filed on the property of OWNER by subcontractors, material men or suppliers of CDM for amounts due them from CDM for Work, the cost of which has been paid by OWNER to CDM. 7.3. Waiver of Claims. The making of final payment shall constitute a waiver of all claims by OWNEReamptlhme arising from: 7.3.1. ' Unsettled liens. 7.3.2. Defects in materials or workmanship appearing after final inspection. 7.3.3. Any breach of continuing obligations in this Agreement on the part of CDM. ARTICLE 8 - INDEMNITY AND INSURANCE 8.1. Indemnity. 8.1.1. In consideration of One Hundred Dollars ($100;00) separately allocated from the consideration paid hereunder, to the fullest extent permitted by law, the receipt and sufficiency of which is acknowledged by CDM's execution of this Agreement, CDM shall pay .on behalf of, indemnify and hold harmless and defend OWNER, its officers, directors, employees, and agents from and against all claims, causes of action, lawsuits, damages, losses and expenses, including, but not limited to, bodily injury, sickness, disease or death, personal injury, or injury to .or destruction of tangible property, to the extent such claims are.caused by CDM's; or any of the subcontractors or any other person or organization employed by CDM, negligent acts during performance of the Work. This indemnity shall include reasonable charges of engineers, attorneys, legal assistants, and other professionals, and costs of both defense and appeal in a court of law, or arbitration, or other tribunal. This indemnification shall also include all claims, damages, losses and expenses, including reasonable attorneys', experts' and legal assistants' fees and costs, arising out of any infringement of patents or copyrights incident to providing Work. CDM Page 12 S:\0000kBS6177.doc- 3115101 8A.2. or CDM be damages of any kind. under this paragraph U tort 3WNER's sole other party. In no event shall for any indirect~ special or consequential and of the facilities, 8.2. following insurance to cover CDM's performance under 8'.2.1. ws of the states liability coverage with minimum limits of liability 8.2.2. Comprehensive automobile liability insurance cOvering all owned, hired and non-owned vehicles with the following minimum limits of liability: Combined single limit - $1,000,000.each occurrence and $2,000,000 aggregate Contractor s cove age with the 8.2.3. Comprehensive general liability insurance including Independent ' r following minimum limits of liability: Combined single limit - $1,000,000 each occurrence and $2,000,000 aggregate CDM's comprehensive general liability policy shall also include blanket contractual liability coverage. 8.3. Professional Liability Insurance. CDM shall' maintain Professional Liability Insurance coverage for errors and omissions for the engineering portion of the work in the amount of $3,000,000 aggregate. 8.4. 8.5. Certificates. CDM shah furnish to OWNER promptly following the execution of this Agreement, certificates evidencing the maintenance of said insurance. The certificates shall prowde that thlrty 00) days written nolac shall be given to OWNER before the insurance policies noted herein are changed or canceled. OWNER's Liability Insurance. The OWNER shall be responsible for purchasing liability insurance to protect the OWNER against claims that may arise from operations under this Project. - ARTICLE 9 - TERMINATION OF THE AGREEMENT 9.1 Termination by OWNER for Cause. If CDM persistently fails or neglects to carry out the Work in accordance with this Agreement; the OWNER may give written notice that the OWNER intends to terminate this Agreement. If CDM fails to correct or to take steps to correct the defaults, failure or neglect cited by the OWNER ia such notice within seven (7) days after being given Such notice, the OWNER may then give a second written notice and, after an additional seven (7) days if CDM fails to correct orto take steps to correct as aforesaid, the OWNER may make good such deficiencies and may deduct the cost thereof from paymants due CDMLor, at the OWNER's option, may terminate the employment of CDM, take possession of the site and finish the Work by whatever method the OWNER maydeem expedient. S:\0000XBS6177.doc-- 3/15/01 Page 13 9.2. Termination by OWNER Without Cause. In addition to termination under Article 9.1, OWNER shall have the fight to terminate this Agreement, in whole or in part, without cause, upon thirty (30) days' written notice to the other party. In the event of any such termination for convenience, CDM's sole and exclusive recovery against OWNER shall be limited to that portion of CDM's compensation earned to the date of termination, together with any costs reasonably incurred by CDM that are directly attributable to the termination as described below. CDM shall not be entitled to any other or further recovery against OWNER, including, but not limited to, anticipated fees or profits on services and services not required t° be perfOrmed. OWNER .shall pay to CDM fair compensation, either by purchase or rental atthe election of the OWNER, for any equipment retained. In case of such termination of this Agreement, the OWNER shall further assume and become liable .for obligations, commitments and unsettled claims that CDM has previously undertaken or incurred in good faith in connection with said Work, actual cancellation penalties for outstanding contracts and undelivered materials or equipment on orders, and any other demobilization costs. CDM shall; as a condition of receiving the payments referred to in this Article, execute: and legal assignment of its contractual fights, as the OWNER ~ the OWNER the rights and benefits of CDM under such obligations or commitments. event of permanent abandonment of the Project, the OWNER may (30) days' prior written notice to CDM, In such event, the work performed or labor, materials loss or damages sustained by CDM including but not limited construction equipment and machinery. 9.2.2. in this fails to make payment when due, in addition to any other remedies may give written notice of its intent to terminate this payment of amounts due: within seven (7) days a second written notice that the Agreement will t in full for all amounts due prior to the the f0r proven losses sustained, including but not limited to 20% of all such 10.1. Mediation. Florida, mediation ARTICLE 10 - DISPUTE RESOLUTION and all disputes and other matters in breach 'thereof to mediation in of the American Arbitration Association in Boynton Beach, in a court of law. Participation in such t in a writing 10.2. 10.3. Claims and Disputes. Claims, disputes and other matters in question between the parties:to this Agreemem which are not resolved by mediation or with respect to which mediation is waived by both parties, which arise out of or relate to the Agreement or the breach thereof shall be decided by judicial proceeding in a court of law in Palm Beach County, Florida. The parties agree to waive their rights to a jury trial. Continuing Obligations. Unless otherwise agreed in writing, CDM shah carry on the Work and maintain its progress dm~g any'me&ation or legal proceedings, and the OWNER shah continue to make payments to CDM in accordance with the Contract Documents. 10.4. Survival of Provisions. This Article 10 shall survive the performance or termination of this Agreement. Page 14 S:\0000~BS6177.doc- 3/15/01 11.1. ARTICLE 11 - MISCELLANEOUS SuccesSors and Assigns. This Agreement shall be binding of the OWNER or CDM~ Neither party shall aSsign, sublet or transfer a~ written consent of the other. the 11.3 11.4 of, legal ~d ~tosuch sub to in OWNER the and in a federal .o the site bY CDM, 11.5. documents to meet official .re or for other lawc 11.6. Reporting Requirements. To the extent required by law, OWNER shall promptly report regulated conditions, ~ of releases of hazardous substances, at the site to the appropriate public 11.7. Governing Law. This Agreement shall be governed by the law of the State of Florida. S:\0000~BS6177.doc- 3/15/~1 Page 15 11.8. Mutual Waiver of Consequential Damages. Notwithstanding any other provision of this Agreement to the contrary, neither party shall be liable to the other for lost profits or any special, indirect, incidental, or consequential damages in any way arising out of this Agreement however caused under a claim of any type or nature based on any theory of liability (including, but not limited to: contract, tort, or warranty) even if the possibility of such damages has been communicated. 11.9. Partial Invalidity. The invalidity of any part or portion of this Agreement shall not affect or impair in any way the validity, enforceability or effect of the remaining provisions hereof. In the event any provision herein is found to be invalid, then such provision shall be deemed to be deleted and all other provisions in the Agreement will remain in full force and effect. 11.10. Entire Agreement. The documents which comprise the entire A4greement between OWNER and CDM concerning the Work (referred to herein as the Contract Documents) consist of the following: 1. This Agreement (pages 1 to 16, inclusive). Exhibits: 1. Project Description and Scope of Work 2. Schedule 3. Billing Rates Them are no documents other than those listed above in this Article l 1.10. This Agreement may only be amended, modified, or supplemented by written agreement duly executed by OWNER and CDM. 11.11. Notices. Except as written elsewhere in this Agreement, all written communications to OWNER and CDM shall be sent with distribution to the recipient as set out below. I. OWNER 2. CDM S:\0000~BS6177.doc- 3115101 Pag~ 16