PUBLIC PRIVATE PARTNERSHIP (P3) DESIGN-BUILD-MAINTAIN AGREEMENT for between ...

311 Pages·2016·1.16 MB·English

PUBLIC PRIVATE PARTNERSHIP (P3)
DESIGN-BUILD-MAINTAIN AGREEMENT
for
202 MA 054 H882701C
SR 202L (SOUTH MOUNTAIN FREEWAY)
I-10 (MARICOPA FREEWAY) – I-10 (PAPAGO FREEWAY)
between
ARIZONA DEPARTMENT OF TRANSPORTATION
and
CONNECT 202 PARTNERS, LLC
Arizona License No. ROC302412
Dated as of: February 26, 2016
TABLE OF CONTENTS
ARTICLE 1. DEFINITIONS; CONTRACT DOCUMENTS;
INTERPRETATION OF CONTRACT DOCUMENTS.................................3
1.1 Definitions..................................................................................................3
1.2 Contract Documents; Order of Precedence...............................................3
1.3 Construction and Interpretation of Contract Documents............................5
1.4 Referenced Manuals, Publications, Standards, Policies
and Specifications......................................................................................7
1.5 Errors and Misdescriptions........................................................................7
1.6 Reference Information Documents............................................................8
1.7 Professional Services Licensing Requirements.........................................9
1.8 Federal Requirements...............................................................................9
1.9 Incorporation of ATCs..............................................................................10
1.10 ADOT Monetary Obligations....................................................................10
ARTICLE 2. TERM; GENERAL OBLIGATIONS OF DEVELOPER;
REPRESENTATIONS AND WARRANTIES............................................11
2.1 Term........................................................................................................11
2.2 General Obligations of Developer............................................................11
2.2.1 D&C Work..........................................................................11
2.2.2 Maintenance Services........................................................11
2.2.3 Utility Services....................................................................11
2.3 Representations, Warranties and Covenants of Developer.....................12
2.4 Representations and Warranties of ADOT...............................................16
2.5 Survival of Representations and Warranties............................................17
ARTICLE 3. MANAGEMENT SYSTEMS AND OVERSIGHT........................................18
3.1 Submittal, Review and Approval Terms and Procedures.........................18
3.1.1 General...............................................................................18
3.1.2 Time Periods......................................................................18
3.1.3 ADOT Discretionary Approvals...........................................19
3.1.4 Other ADOT Approvals.......................................................20
3.1.5 ADOT Review and Comment.............................................20
3.1.6 Submittals Not Subject to Prior Review,
Comment or Approval ........................................................20
3.1.7 Resolution of ADOT Comments and
Objections..........................................................................21
3.1.8 Limitations on Developer’s Right to Rely............................22
3.2 Role of General Engineering Consultant and ADOT
Consultants..............................................................................................24
3.3 Role of and Cooperation with FHWA.......................................................24
3.4 Project Management Plan........................................................................24
3.5 Traffic Management.................................................................................26
3.5.1 Transportation Management Plan......................................26
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3.5.2 ADOT’s Rights....................................................................26
3.6 Oversight, Inspection and Testing ...........................................................26
3.7 Rights of Cooperation and Access...........................................................28
3.8 Testing and Test Results.........................................................................28
3.9 Interpretive Engineering Decisions..........................................................28
3.10 Meetings..................................................................................................29
3.11 Software Compatibility.............................................................................30
ARTICLE 4. PROJECT PLANNING, GOVERNMENTAL APPROVALS;
ENVIRONMENTAL COMPLIANCE; PUBLIC
INFORMATION........................................................................................31
4.1 Planning and Engineering Activities.........................................................31
4.2 Site Conditions.........................................................................................31
4.3 Governmental Approvals.........................................................................31
4.4 Environmental Compliance......................................................................35
4.5 Community Outreach and Public Information..........................................36
ARTICLE 5. RIGHT OF WAY ACQUISITION; ACCESS TO PROJECT
RIGHT OFWAY; UTILITY ADJUSTMENTS; RAILROAD;
RELATED TRANSPORTATION FACILITIES; USE OF
ADOT PROPERTY..................................................................................37
5.1 Developer’s ROW Services.....................................................................37
5.2 ADOT’s Role Respecting ROW Acquisition.............................................39
5.2.1 General...............................................................................39
5.2.2 Retained Parcels................................................................39
5.3 ROW Activity Plan ...................................................................................39
5.4 Acquisition of Property.............................................................................40
5.4.1 Project ROW ......................................................................40
5.4.2 Developer’s TemporaryWork Areas ..................................40
5.4.3 Replacement Utility Property Interests...............................41
5.5 Acquisition and Relocation Standards and Procedures...........................42
5.6 Costs of Acquisitions, Relocations and Demolitions................................43
5.7 Developer Incentives for Avoiding Schematic ROW Parcels...................46
5.8 WaterWells and Postal Service Parcel....................................................48
5.8.1 General – Water Wells.......................................................48
5.8.2 GRIC Well Properties.........................................................48
5.8.3 Postal Service Parcel.........................................................49
5.9 Access to Project ROW; Delays ..............................................................50
5.9.1 Physical Possession of Project ROW;
Transfer of Title to Improvements; Salvage........................50
5.9.2 Access to Project ROW......................................................50
5.10 Utility Adjustments...................................................................................51
5.10.1 ADOT’s and Developer’s Responsibility.............................51
5.10.2 Utility Memoranda of Understanding; Utility
Agreements........................................................................52
5.10.3 Requirements.....................................................................54
5.10.4 Utility Adjustment Risk........................................................54
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5.10.5 FHWA Utility Requirements................................................56
5.10.6 Betterments and Utility Company Projects.........................57
5.10.7 Failure of Utility Companies to Cooperate..........................57
5.10.8 Security for Utility Adjustment Costs;
Insurance............................................................................59
5.10.9 Applications for Utility Permits............................................59
5.10.10 Assignment of Rights against Utility
Companies.........................................................................61
5.11 Railroad...................................................................................................61
5.11.1 General Requirements; Scope of Work..............................61
5.11.2 Railroad Agreements..........................................................61
5.12 Integration with Related Transportation Facilities....................................62
5.13 Use of Designated ADOT Property..........................................................63
ARTICLE 6. DESIGN AND CONSTRUCTION..............................................................66
6.1 General Obligations of Developer............................................................66
6.2 Performance, Design and Construction Standards;
Deviations................................................................................................66
6.3 Changes in Basic Configuration...............................................................68
6.4 Design Requirements; Responsibility for Design.....................................68
6.4.1 Design Implementation and Submittals..............................68
6.4.2 Developer Responsibility for Design...................................69
6.4.3 Changes to Schematic Design and
Schematic ROW.................................................................69
6.5 Cooperation with Other Contractors ........................................................70
6.5.1 Developer Duty of Cooperation..........................................70
6.5.2 Lane Closures and Interference by Other
Contractors.........................................................................70
6.5.3 Coordination with Utility Companies and
Adjacent Property Owners..................................................71
6.6 Substantial Completion; Punch List; Final Acceptance............................71
6.6.1 Substantial Completion ......................................................71
6.6.2 Punch List...........................................................................73
6.6.3 Conditions to Issuance by ADOT of
Certificate Evidencing Satisfaction of
Maintenance Services Conditions Precedent.....................73
6.6.4 Final Acceptance................................................................75
6.7 Nonconforming and Defective Work........................................................77
6.8 Hazardous Materials Management..........................................................78
6.9 Title..........................................................................................................81
6.10 Site Security.............................................................................................82
6.11 Maintenance During Construction............................................................82
6.12 Aesthetics and Landscaping; Landscape Establishment
Period......................................................................................................82
6.13 Clayton Act Assignment...........................................................................83
ARTICLE 7. TIME; NOTICES TO PROCEED; PROJECT SCHEDULE
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AND PROGRESS....................................................................................84
7.1 Time of Essence......................................................................................84
7.2 Notices to Proceed ..................................................................................84
7.3 Issuance of NTP 1...................................................................................84
7.4 Issuance of NTP 2...................................................................................86
7.5 Conditions to Design Work Review and Payment....................................88
7.6 Conditions to Commencement of Construction........................................88
7.6.1 Construction Work Generally..............................................88
7.6.2 ITS Improvements; Existing Conditions
Improvements.....................................................................89
7.6.3 Utility Adjustments..............................................................90
7.6.4 Center Segment.................................................................90
7.7 Issuance of NTP 3...................................................................................90
7.8 Issuance of Maintenance NTP.................................................................90
7.9 Completion Deadlines..............................................................................91
7.9.1 Substantial Completion Deadline.......................................91
7.9.2 Final Acceptance Deadline.................................................91
7.9.3 No Completion Deadline Adjustment..................................91
7.10 Scheduling of Design, Construction and Payment...................................91
7.10.1 Project Schedule................................................................91
7.10.2 Float...................................................................................91
7.10.3 Progress Payment Scheduling...........................................92
7.11 Recovery Schedule..................................................................................92
ARTICLE 8. MAINTENANCE SERVICES.....................................................................93
8.1 General....................................................................................................93
8.1.1 General Obligations............................................................93
8.1.2 Changes in Performance and Maintenance
Standards; Discriminatory and Non-
Discriminatory Maintenance Changes................................94
8.1.3 Safety and Security............................................................97
8.1.4 Duration of Hazardous Materials
Management......................................................................98
8.1.5 Utility Accommodation........................................................98
8.1.6 Accommodation of Third-Party Signage and
Lighting...............................................................................98
8.1.7 Updates of Record Drawings..............................................99
8.2 Frontage Roads and Crossroads.............................................................99
8.3 Capital Asset Replacement Work............................................................99
8.3.1 General Requirements.......................................................99
8.3.2 Capital Asset Replacement Work Plan.............................100
8.4 Traffic Management...............................................................................102
8.4.1 Updated Transportation Management Plan......................102
8.4.2 Traffic Control...................................................................102
8.4.3 Traffic Operation Restrictions...........................................103
8.5 Lead Maintenance Firm Qualifications...................................................103
8.6 Coordination of Maintenance with Other Parties....................................104
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8.7 Developer Inspection, Testing and Reporting........................................104
8.8 Routine Maintenance Activities..............................................................105
8.9 Maintenance Management Plan; Maintenance Quality
Management Plan..................................................................................105
8.10 Safety Compliance; Emergency Repair Work........................................105
8.10.1 Safety Compliance...........................................................105
8.10.2 Emergency RepairWork..................................................106
8.11 Handback Requirements.......................................................................107
8.11.1 Condition at End of Maintenance Period..........................107
8.11.2 Surveillance and Inspections............................................107
8.11.3 Handback Plan.................................................................107
8.11.4 In-Lieu Fees.....................................................................108
8.11.5 Remaining Useful Life Report...........................................111
8.12 Requirements Applicable to Design and Construction Work..................112
8.13 Future Improvements.............................................................................112
8.14 Maintenance and Rehabilitation of Future Improvements......................112
ARTICLE 9. SUBCONTRACTING AND LABOR PRACTICES ...................................114
9.1 Non-Discrimination; Equal Employment Opportunity.............................114
9.2 DBE Requirements and Small Business Opportunity............................114
9.3 On-the-Job Training...............................................................................118
9.4 Subcontracts..........................................................................................120
9.5 Responsibility for Developer-Related Entities........................................126
9.6 Key Personnel.......................................................................................126
9.6.1 Availability of Key Personnel............................................126
9.6.2 Liquidated Damages for Unavailability of Key
Personnel.........................................................................126
9.6.3 Limitations on Liquidated Damages for
Unavailability of Key Personnel........................................128
9.6.4 Failure to Timely Replace Key Personnel.........................128
9.7 Subcontracts with Affiliates....................................................................129
9.8 Labor Standards....................................................................................130
9.9 Ethical Standards...................................................................................131
9.10 Prevailing Wages...................................................................................132
9.11 Uniforms................................................................................................132
ARTICLE 10. PERFORMANCE AND PAYMENT BONDS;
GUARANTEES......................................................................................133
10.1 Provision of Bonds during Construction Period and
Warranty Term.......................................................................................133
10.1.1 D&C Performance Bond...................................................133
10.1.2 D&C Payment Bond.........................................................134
10.2 Provision of Bonds during Maintenance Period.....................................135
10.2.1 Maintenance Performance Bonds....................................135
10.2.2 Maintenance Payment Bonds...........................................137
10.2.3 Surety Qualifications ........................................................137
10.2.4 Increase Due to Supplemental Agreements.....................137
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10.2.5 Replacement Maintenance Bonds....................................137
10.2.6 Party Providing Maintenance Bonds; Multiple
Obligees...........................................................................138
10.3 No Relief of Liability...............................................................................139
10.4 Guaranty................................................................................................139
ARTICLE 11. INSURANCE; RISK OF LOSS; CLAIMS AGAINST THIRD
PARTIES...............................................................................................141
11.1 General Insurance Requirements..........................................................141
11.1.1 Qualified Insurers.............................................................141
11.1.2 Premiums, Deductibles and Self-Insured
Retentions........................................................................141
11.1.3 Primary Coverage ............................................................141
11.1.4 Project-Specific Insurance................................................141
11.1.5 Verification of Coverage; ADOT Right to
Remedy Developer Failure to Insure................................142
11.1.6 Subcontractor Insurance Requirements...........................143
11.1.7 Policies with Insureds in Addition to
Developer.........................................................................143
11.1.8 Additional Terms and Conditions......................................144
11.1.9 Waivers of Subrogation....................................................144
11.1.10 No Recourse....................................................................145
11.1.11 Support of Indemnifications..............................................145
11.1.12 Inadequacy or Unavailability of Required
Coverages........................................................................145
11.1.13 Insurance Premium Benchmarking ..................................146
11.1.14 Defense Costs..................................................................149
11.1.15 Contesting Denial of Coverage.........................................149
11.1.16 Umbrella and Excess Policies..........................................150
11.1.17 Additional Insurance Policies............................................150
11.1.18 Adjustments in Coverage Amounts..................................150
11.1.19 Contractor-Controlled Insurance Program........................151
11.2 Prosecution of Claims............................................................................151
11.3 Risk of Loss or Damage to Project; Use of Insurance
Proceeds................................................................................................152
11.4 Claims Against Third Parties..................................................................154
11.5 Disclaimer..............................................................................................155
ARTICLE 12. WARRANTIES......................................................................................156
12.1 Warranties.............................................................................................156
12.1.1 Warranty...........................................................................156
12.1.2 Warranty Term.................................................................156
12.1.3 WarrantyWork.................................................................156
12.1.4 Permits and Costs............................................................157
12.2 Applicability of Warranties to Re-Done Work.........................................157
12.3 Subcontractor Warranties......................................................................157
12.3.1 Warranty Requirements....................................................157
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12.3.2 Enforcement.....................................................................158
12.4 Effect of ADOT or Third Party Activities on Warranties..........................158
12.5 No Limitation of Liability or Remedies....................................................158
12.6 Damages for Breach of Warranty..........................................................159
ARTICLE 13. PAYMENT FOR SERVICES.................................................................160
13.1 D&C Price..............................................................................................160
13.1.1 Amount.............................................................................160
13.1.2 Items Included in D&C Price.............................................160
13.1.3 Allowance for Pedestrian Bridge Aesthetic
Treatments.......................................................................161
13.2 Invoicing and Payment for the D&C Price..............................................161
13.2.1 NTP 1 Work......................................................................161
13.2.2 Draft Draw Request Package for D&CWork
and Monthly Progress Meeting.........................................162
13.2.3 Delivery of Draw Request for Payment of
D&C Price.........................................................................163
13.2.4 Draw Request Cover Sheet Contents..............................165
13.2.5 Certification by Professional Services Quality
Control Manager and Construction Quality
Acceptance Firm ..............................................................165
13.2.6 Payment by ADOT ...........................................................166
13.3 Limitations, Deductions and Exclusions.................................................166
13.3.1 Maximum Allowable Cumulative Draw.............................167
13.3.2 Deductions and Withholdings...........................................167
13.3.3 Unincorporated Materials; Long Lead Items.....................169
13.3.4 Mobilization Payments; Bond and Insurance
Premiums.........................................................................169
13.3.5 Equipment........................................................................170
13.4 Final D&C Payment...............................................................................170
13.5 Maintenance Price.................................................................................172
13.6 Invoicing and Payment for the Maintenance Price.................................175
13.7 Prompt Payment to Subcontractors.......................................................177
13.8 Subcontractor Payment and Payroll Reporting......................................178
13.8.1 Subcontractor Payment Reporting...................................178
13.8.2 Subcontractor Payroll Reporting.......................................179
ARTICLE 14. RELIEF EVENTS..................................................................................181
14.1 Relief Event Claim Process...................................................................181
14.1.1 General Provisions...........................................................181
14.1.2 Relief Event Notice...........................................................182
14.1.3 Relief Request..................................................................183
14.1.4 ADOT Evaluation and Response to Relief
Request; Negotiations......................................................185
14.1.5 Final Documentation of Relief Event Claim......................185
14.1.6 ADOT Response to Final Documentation;
Supplemental Agreement.................................................186
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14.1.7 Waiver..............................................................................187
14.1.8 Open Book Basis..............................................................187
14.2 Payment for Extra Work Costs and Delay Costs ...................................187
14.3 Claim Deductible....................................................................................189
14.4 Other Deductibles; Special Provisions...................................................190
14.4.1 Necessary Schematic ROW Changes..............................190
14.4.2 Non-Discriminatory Maintenance Change........................191
14.4.3 Project ROW Acquisition..................................................192
14.4.4 Utility Company Delay......................................................192
14.4.5 Inaccurate Utility Information............................................192
14.4.6 Hazardous Materials ........................................................194
14.4.7 Differing Site Conditions...................................................196
14.4.8 Change in Law.................................................................197
14.4.9 Change in Adjustment Standards.....................................197
14.4.10 ADOT-Directed Changes for ITS
Improvements or Interstate 10 Existing
Conditions Improvements.................................................197
14.4.11 Collision During Maintenance Period ...............................198
14.4.12 D&C Price Adjustment Due to Delay in NTP 1.................198
14.4.13 D&C Price Adjustment Due to Delay in NTP 2.................199
14.4.14 D&C Price Adjustment in Connection with
Issuance of NTP 3............................................................200
14.5 Insurance Adjustments..........................................................................201
14.6 Effect of Relief Events on Completion Deadlines,
Performance, Developer Default, Noncompliance Points
and Deductions......................................................................................201
14.7 Exclusive Relief; Release of Claims ......................................................202
14.8 Prevention and Mitigation......................................................................202
ARTICLE 15. ADOT-DIRECTED CHANGES; DEVELOPER CHANGES;
DIRECTIVE LETTERS...........................................................................204
15.1 ADOT-Directed Changes.......................................................................204
15.1.1 ADOT’s Right to Issue Supplemental
Agreement........................................................................204
15.1.2 Request for Change Proposal..........................................204
15.1.3 Response to Request for Change Proposal.....................205
15.1.4 Negotiation and Directed Changes...................................205
15.1.5 Payment and Schedule Adjustment .................................206
15.1.6 Reductive ADOT-Directed Changes.................................206
15.2 Developer Changes...............................................................................207
15.3 Directive Letters.....................................................................................208
ARTICLE 16. THIRD-PARTY AGREEMENTS............................................................210
16.1 Delegation of Obligations.......................................................................210
16.2 Changes to Third-Party Agreements .....................................................210
ARTICLE 17. NONCOMPLIANCE EVENTS AND NONCOMPLIANCE
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POINTS.................................................................................................211
17.1 Noncompliance Points System..............................................................211
17.2 Assessment Notification and Cure Process...........................................213
17.2.1 Notification Initiated by Developer; Monthly
Reporting..........................................................................213
17.2.2 Notification Initiated by ADOT..........................................214
17.2.3 Cure Periods....................................................................215
17.2.4 Notification of Cure...........................................................215
17.3 Assessment of Noncompliance Points...................................................216
17.4 Trigger Points for Persistent Developer Default.....................................217
17.5 Special Provisions for Certain Noncompliance Events..........................218
17.6 Special Provisions for ADOT Step-in.....................................................218
17.7 Provisions Regarding Dispute Resolution..............................................219
ARTICLE 18. SUSPENSION.......................................................................................221
18.1 Suspensions for Convenience...............................................................221
18.2 Suspensions for Cause..........................................................................221
18.3 Responsibilities of Developer during Suspension Periods.....................223
ARTICLE 19. DEFAULT; REMEDIES.........................................................................224
19.1 Default of Developer..............................................................................224
19.1.1 Events and Conditions Constituting Default.....................224
19.1.2 Notice and Opportunity to Cure........................................226
19.1.3 Declaration of Event of Default.........................................227
19.2 ADOT Remedies for Developer Default.................................................227
19.2.1 Termination for Default.....................................................227
19.2.2 Remedial Plan Delivery and Implementation
Upon Persistent Developer Default..................................229
19.2.3 Developer Defaults Related to Safety ..............................230
19.2.4 Damages; Offset ..............................................................231
19.2.5 Performance Security.......................................................232
19.2.6 Other Rights and Remedies; Cumulative
Remedies.........................................................................232
19.3 Event of Default Due Solely to Developer’s Failure to
Achieve Completion Deadlines..............................................................232
19.4 Immediate ADOT Entry to Cure Wrongful Use or Closure.....................233
19.5 ADOT Step-in Rights.............................................................................233
19.6 DBE and OJT Special Remedies...........................................................235
19.7 Right to Stop Work for Failure by ADOT to Make
Undisputed Payment..............................................................................237
ARTICLE 20. LIQUIDATED DAMAGES, NONCOMPLIANCE CHARGES
AND LIMITATION OF LIABILITY...........................................................238
20.1 Liquidated Damages Respecting Delays...............................................238
20.2 Liquidated Damages Respecting Construction Period Lane
Closures.................................................................................................239
20.3 Liquidated Damages Respecting Maintenance Period Lane
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