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HomeMy WebLinkAboutItem 4.5 Award of Bid 91-03A CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: September 9, 1991 SUBJECT: Award of Bid - Contract No. 91-03A Construction of Irrigation Well at Shannon Park Report by Public Works Director Lee Thompson EXHIBITS ATTACHED: 1) 2) RECOMMENDATION: Resolution Rejecting Bid from Maggiora Bros. Drilling, Inc., and Awarding Hid to A.S.E. Drilling, Inc. Bid Results Adopt Resolution Authorize Mayor to execute Agreement FINANCIAL STATEMENT: Lowest Responsive Bid Received: $40,162.60 Engineer's Estimate for Construction: $32,420.00 Funds Budgeted: Design & Inspection: Construction: $ 2,500.00 60,000.00 $62,500.00 The $60,000 construction budget includes funding to purchase and install a pump and to connect the well to the Shannon Park irrigation system under a separate contract at a later date. Following is a breakdown of the $60,000 budget by item: Well Development: Installation of Pump System: $40,000.00 20,000.00 $60,000.00 If the test well is drilled and there is no water, the cost will be $9,500. If water is found and is determined to not be of a quality or quantity needed, the cost will be $16,600. Staff anticipates that the well, if successful, would pay for itself in approximately six years from the savings in potable water costs. Additional savings may be realized in the form of landscaping which would not otherwise survive under drought restrictions. I C ! CLERK-- · ~ v J COPIES TO: Bidders DESCRIPTION: At its meeting of May 13, 1991, the City Council authorized Staff to advertise for bids for Contract 91-03, Construction of an Irrigation Well at Shannon Park. At the time Staff was authorized to solicit bids, it was not known whether the City could obtain water rights for the park property itself. Staff is now proposing to install the well in the street right-of-way adjacent to the park; so the water rights are no longer an issue. The project would construct a well which will be hooked directly into the existing irrigation main line and the existing irrigation controller. Because Staff does not know how deep the well will be, it is not possible at this time to specify the size of pump needed. The well pump is proposed to be obtained and installed at a later date under a separate contract. Once the pump has been installed and hooked up to the park system, the park could be irrigated with well water. It is possible that a well would not provide sufficient water for the park's irrigation needs or that the water obtained would not be of a suitable quality. On June 25, 1991, the City received one bid for this project from A.S.E. Drilling, Inc.; however, at the July 22nd meeting, the City Council determined to reject this bid because the bid was significantly above the Engineer's Estimate. The original bid received was $47,995. Staff re-advertised the project and, on August 27th, received three bids from drilling companies. Following is a recap of the bids received: Maggiora Bros. Drilling, Inc. A.S.E. Drilling, Inc. Weeks Drilling & Pump Co., Inc. $36,764.65 $40,162.60 $43,156.25 After reviewing the bids, it was noted that Maggiora Bros. did not include a price for Bid Item No. 3, the casing for the test well. Staff recommends that, on this basis, Maggiora Bros.' bid be considered non- responsive. It should be noted that if A.S.E.'s price for Bid Item No. 3 were deducted from their total, they would become low bidder. The bid documents provide that the City can cancel any item or portion of any item if there is no longer a need for that item and thus save the City additional money. This provision would be used if the test well does not produce or is not of a quality needed for irrigation. The City could terminate the contract and not proceed with the remainder of the work. Staff recommends that the City Council adopt the resolution rejecting the bid from Maggiora Bros. as non-responsive and awarding the bid to A.S.E. Drilling, Inc., and authorize the Mayor to execute the agreement. a:\well\agstawd - 2 - CONTRACT 91-03A IRRIGATION WELL AT SHANNON PARK BID RESULTS ITEM UNIT EST NO. DESCRIPTION MEAS QTY ENGINEER'S EST. A.S.E. DRILLING UNIT TOTAL UNIT TOTAL COST COST COST COST MAGGIORA BROS. WEEKS DRILLING UNIT TOTAL UNIT TOTAL COST COST COST COST 8 9 10 11 12 13 14 15 16 17 18 MOBILIZATION & CLEANUP LS DRILL TEST HOLE LF INST. PVC CASING & SCREEN FOR TEST HOLE LF ABANDON TEST WELL LS GEOPHYSICAL LOG LS TEST WATER FOR CAPA- CITY & QUALITY LS RUN SIEVE ANALYSIS & RECOMMEND SIZE 7 AMT OF SCREEN & SIZE OF FILTER PACK MATL LS DRILL MIN 15" DIA HOLE LF INST 316 BOTTOM PLUG TO SCREEN LS INST 316 S/S VEE WIRE LF INST 10" PVC SCH 80 CASING LF CONNECT PVC CASING TO S/S SCREEN LS INST 245' FILTER PACK MATERIAL CY WELL DEVELOPMENT LS INST 5' BENTONITE CHIPS SEAL CY INST 50' TYPE II CEMNT CY INST 4'X4'X6" HIGH CONC BASE OR SLAB CY INST WELL CAP & SECURITY LOCKED COVER LS TOTAL: 1 2,000.00 2,000.00 3,500.00 3,500.00 300 10.00 3,000.00 15.00 4,500.00 300 10.00 3,000.00 12.00 3,600.00 300 5.00 1,500.00 5.00 1,500.00 1 1,000.00 1,000.00 1,500.00 1,500.00 1 i,500.00 1,500.00 2,000.00 2,000.00 1 300.00 300.00 300.00 300.00 300 15.00 4,500.00 25.00 7,500.00 1 300.00 300.00 500.00 500.00 30 200.00 6,000.00 169.92 5,097.60 270 15.00 4,050.00 14.00 3,780.00 1 350.00 350.00 500.00 500.00 6.17 200.00 1,340.00 317.67 1,960.00 1 1,500.00 1,500.00 2,700.00 2,700.00 0.13 1,000.00 130.00 5.00/FT 25.00 1.3 1,000.00 1,300.00 307.69 400.00 0.3 500.00 150.00 ...... 300.00 1 500.00 500.00 500.00 500.00 32,420.00 40,162.60 1,500.00 1,500.00 12,375.00 12,375.00 15.00 4,500.00 15.00 4,500.00 NO BID NO BID 5.00 1,500.00 975.00 975.00 1,500.00 1,500.00 1,200.00 1,200.00 3,500.00 3,500.00 3,900.00 3,900.00 400.00 400.00 500.00 500.00 25.00 7,500.00 20.00 6,000.00 200.00 200.00 150.00 150.00 150.00 4,500.00 160.00 4,800.00 21.00 5,670.00 19.00 5,130.00 300.00 300.00 150.00 150.00 145.00 894.65 125.00 771.25 1,800.00 1,800.00 1,500.00 1,500.00 500.00 65.00* 1,000.00 130.00 1,000.00 1,300.00' 538.46 700.00 1,000.00 1,000.00 750.00 225.00 500.00 500.00 150.00 150.00 36,629.65* 43,156.25 *Figures corrected after tabulation RESOLUTION NO. 90-91 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN REJECTING BID FROM MAGGIORA BROS. DRILLING, INC., AS NON-RESPONSIVE AND AWARDING CONTRACT 91-03A TO A.S.E. DRILLING, INC. WHEREAS, the City of Dublin did on August 27, 1991, publicly open throe sealed bids for doin§ the work described in the approved spocifications for Contract 91-03A Construction of Irri§ation Well at Shannon Park; and WHEREAS, the City Engineer has recommended that the iow bid received from Maggiora Bros. Drilling, Inc. be rejected because said low bid failed to include a price for one bid item; and WHEREAS, the City Engineer has recommended that the second lowest bid hereinafter described is the lowest and best responsive bid for performing the work; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby reject the low bid provided by Maggiora Bros. Drilling, Inc., and awards Contract 91-03A to the lowest responsive bidder, to wit, A.S.E. Drilling, Inc., at a price of $40,162.60, the particulars of which bid are on file in the City Engineer's office. AYES: NOES: None ABSENT: None PASSED, APPROVED AND ADOPTED this 9th day of September, 1991. Councilmembers Burton, Howard, Jeffery, Moffatt, and Mayor Snyder ATTEST: a:~woll~resawrd AGREEM~ CONSTRUCTION AND INSTALLATION OF AN IILRIGATION WELL IN SH~ON PARK CITY OF DUBLIN CONTRACT 91-03 THIS AGREEMENT, dated for identification as of Sept. 9, 1991 between the CITY OF DUBLIN, a Municipal Corporation (hereinafter called "CITY"), and A.S.E. Drilling, Inc., (hereinafter called "CONTRACTOR"). The parties hereto mutually agree to the terms and conditions set forth herein. 1.01 CONTRACT DOCUMENTS. Each of the items hereinafter referred to are incorporated herein by this reference as if set forth in full herein. Work called for in any one Contract Document and not mentioned in another is to be performed and executed as if mentioned in ail Contract Documents. The table of contents, titles, and headings contained herein and in said documents are solely to facilitate reference to various provisions of the Contract Documents and in no way affect or limit the interpretations of the provisions to which they refer. The Contract Documents, sometimes also referred to as "the Contract," consist of the Notice to Contractors, the completed Proposal Form submitted by the Contractor to whom the Contract is awarded, the Instructions to Bidders insofar as they relate to events which will occur or actions to be taken after the submission of the Proposal, this Agreement, the Standard Specifications, the Special Provisions, Plans, Drawings, Detail Book, and Technical Specifications, the Standard Drawings, Details, and other such data and all versions thereof prepared by City pursuant to Contract, and any modifications of any of the foregoing in the form of Addenda or executed Change Order or otherwise effected in accordance with the terms of the Contract, the surety bonds, bid bond, and Contractor's list of subcontractors. 1.02 DEFINITIONS. Uniess otherwise specifically provided herein, all words and phrases defined in the Standard Specifications shall have the same meaning and intent in this Agreement. 1.03 AGREEMENT CONTROLS. In the event of a conflict between the terms and conditions as set forth in this Agreement and the terms and conditions set forth in other Contract Documents, the terms and conditions set forth in this Agreement shall prevail. 1.04 SCOPE OF CONTRACT. Contractor agrees to furnish all tools, equipment, apparatus, facilities, labor, and material and transportation necessary to perform and complete in a good Page A - 1 and workmanlike manner to the satisfaction of City, all the work called for, and in the manner designated in, and in strict conformity with the Contract Documents for the project entitled: CONSTRUCTION AND INSTALT.~TION OF AN IRRIGATION WELL IN SHANNON PARK. 1.05 CONTRACT AMOUNT AND PAYMENTS. City agrees to pay, and Contractor agrees to accept, in full oa~ment for the above work the sum of i FORTY THOUSAND ONE HUNDRED SIXTY TWO DOLLARB ~ND SIXTY CENTS ($40,162.60) which sum is to be paid according to the schedule and in the manner set forth herein and subject to additions, deductions, and withholding as provided in the Contract Documents. When it is provided in the Notice to Bidders, Instructions to Bidders, or Proposal Form that Contractor is to be paid on the basis of the unit prices shown in his bid, instead of a lump sum price, the Contractor agrees to accept, in full payment for the above work, the sum computed in accordance with the actual amount of each item of work performed or material furnished, at the unit price which Contractor bid for each such item in his Proposal Form, said unit price to be determined as provided in the Standard Specifications and Special Provisions. 1.06 PROGRESS AND FINAL PAYMENTS. Subject to the terms and conditions of the Contract Documents, City shall cause payments to be made upon demand of Contractor in the manner set forth in the Standard Specifications. 1.07 RETENTION OF SUMS CHARGED AGAINST CONTRACTOR. When, under the provisions of this Contract, City shall charge any sum of money against Contractor, City shall deduct and retain the amount of such charge from the amount of the next succeeding progress estimate, or from any other moneys due or that may become due Contractor from City. If, on completion or termination of the Contract, sums due Contractor are insufficient to pay City's charges against him, City shall have the right to recover the balance from Contractor or his sureties. 1.08 COMMENCEMENT AND PROSECUTION OF WORK. Contractor shall commence the work on or before ten (10) calendar days from and after receipt of written Notice to Proceed from City to Contractor and will diligently prosecute the work to final completion. The phrase "commence the work" means to engage in a continuous program on-site including, but not limited to, site clearance, grading, dredging, land filling and the fabrication, erection, or installation of the work. Said Notice to Proceed shall be issued following execution of the Agreement and the filing by Contractor of the required bonds and proof of insurance. The continuous prosecution of work by Contractor shall be subject only to Excusable Delays as defined in this Agreement. 1.09 TIME OF COMPLETION. The entire work shall be brought to completion in the manner provided for in the Contract Documents on or before the 20th working day (hereinafter called the Page A - 2 "Completion Date") from and after the receipt by Contractor of the Notice to Proceed unless extensions of time are granted in accordance with the Contract Documents. 1.10 PAYMENTS DO NOT IMPLY ACCEPTANCE OF WORK. The payment of any progress payment, or the acceptance thereof by Contractor, shall not constitute acceptance of the work or any portion thereof and shall in no way reduce the liability of Contractor to replace unsatisfactory work or material, though the unsatisfactory character of such work or material may not have been apparent or detected at the time such payment was made. 1.11 ACCEPTANCE NOT RELEASE. Contractor shall correct immediately any defective or imperfect work which may be discovered before final acceptance of the entire work. Any unsatisfactory materials shall be rejected, notwithstanding that they may have been overlooked by the proper inspector. The inspection of the work, or any part thereof, shall not relieve Contractor of any of his obligations to perform satisfactory work as herein prescribed. Failure or neglect on the part of the City or any of its authorized agents to condemn or reject bad or inferior work or materials shall not be construed to imply an acceptance of such work or materials if such becomes evident at any time prior to final acceptance of the entire work or all materials, nor shall such failure be construed as barring City at any subsequent time from recovering damages or of such a sum of money as may be rquired to build anew all portions of the work in which fraud was practiced or improper materials used whenever City may discover the same. 1.12 RELEASE UPON FINAL PAYMENT. If requested to do so by City, at the time of final payment, as a condition precedent to final payment, Contractor and each assignee under any assignment in effect at the time of final payment shall ex~cute and deliver a release in form and substance satisfactory to the City and containing such exceptions as provided in Section 7100 of the Public Contract Code which shall discharge City, its officers, agents, and employees of and from all liability, obligations, and claims arising under this contract. 1.13 CITY'S RIGHT TO TAKE POSSESSION OF THE WORK IN WHOLE OR IN PART. Without limitation of Paragraph 1.19 whatsoever, the City of Dublin shall have the right at any time to enter upon the work and perform work not covered by this Contract, or to occupy and use a portion of the work, prior to the date of the final acceptance of the work as a whole, without in any way relieving Contractor of any obligations under this Contract. Such use or occupation of the work shall not be construed as an acceptance of any portion of the work under this Contract, nor shall it affect the dates and times when payments shall become due nor prejudice City's rights, guarantees, or sureties. Page A - 3 1.14 NO WAIVER OF REMEDIES. Neither the inspection by City or its agents, nor any order or certificate for the payment of money, nor any payment for, nor acceptance of the whole or any part of the work by City, nor any extensions of time, nor any position taken by City or its agents shall operate as a waiver of any provision of this Agreemeht or of any power herein reserved to City or any right to damages herein provided, nor shall any waiver of any breach of this Agreement be held to be a waiver of any other or subsequent breach. Ail remedies provided in this Agreement shall be taken and construed as cumulative; that is, in addition to each and every other remedy herein provided, and City shall have any and all equitable and legal remedies which it would in any case have. 1.15 DETERMINATION OF DAMAGES. The actual fact of the occurrence of damages and the actual amount of the damages which City would suffer if the work were not completed within the specified times set forth are dependent upon many circumstances and conditions which could prevail in various combinations, and from the nature of the project, it is impracticable and extremely difficult to fix the actual damages. Damages which City would suffer in the event of delay include loss of the use of the Project, and in addition expenses of prolonged employment of an architectural and engineering staff; costs of administration, inspection, and supervision; and the loss suffered by the public within the City of Dublin by reasons of the delay in the completion of the project to serve the public at the earliest possible time. Accordingly, the parties hereto agree, and by execution of this Agreement, Contractor acknowledges that he understands, has ascertained and agrees, that the amounts set forth herein as liquidated damages shall be presumed to be the amount of damages sustained by the failure of Contractor to complete the entire work within the times specified. 1.16 LIQUIDATED DAMAGES. The amount of the liquidated damages to be paid by Contractor to City for failure to complete the entire work by the Completion Date (as extended, if applicable) will be TWO HUNDRED FIFTY DOLLARS ($250.00) for each calendar day, continuing to the time at which the work is completed. Such amount is the actual cash value agreed upon as the loss to City resulting from Contractor's default. 1.17 PAYMENT OF DAMAGES. In the event Contractor shall become liable for liquidated damages, City, in addition to all other remedies provided by law, shall have the right to withhold any and all payments which would otherwise be or become due Contractor until the liability of Contractor under this section is finally determined. City shall have the right to use and apply such payments, in whole or in part, to reimburse City for all liquidated damages due or to become due to City. Any remaining balance of such payments shall be paid to Contractor only after discharge in full of all liability incurred by Contractor under this section or otherwise. If the sum so retained by City is not sufficient to discharge all such liabilities of Contractor, Contractor and his sureties shall continue to remain liable to City until all such liabilities are satisfied in full. No failure by City to withhold any payment as Page A - 4 hereinbefore specified shall in any manner be construed to constitute a waiver of any right to liquidated damages or any right to any such sum. 1.18 INDEMNITY AND HOLD HARMLESS. Contractor shall assume the defense of, and indemnify and save harmless, the City, its officers, employees, and agents, and each and every one of them, from and against all actions, damages, claims, losses or expenses of every type and description to which they may be subjected or put, by reason of, or resulting from, the performance of the work, provided that such action, damage, claim, loss, or expense is attributable to bodily injury, sickness, disease or death, or injury to, or destruction of property, whether upon or off the work, including the loss of use thereof, and is caused in whole or in part by any negligent act or omission of the Contractor, and subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, whether or not it is caused in part by a party indemnified hereunder. 1.19 CONTRACTOR SHALL ASSUME RISKS. Until the completion and final acceptance by City of all work under this Contract, the work shall be under Contractor's responsibility, care, and charge, including any period of time work is suspended for any cause whatsoever. Contractor shall rebuild, repair, restore, and make good all injuries, damages, re-erections, and repairs occasioned or rendered necessary by accidental causes of any nature, to all or any portions of the work, except as otherwise agreed. It is specifically contemplated that the City, its officers, employees, and invitees, will occupy and use portions of the work prior to final acceptance. Such occupancy shall not relieve Contractor of responsibility provided herein nor exonerate any surety or insurer of Contractor save and except for items of routine maintenance and repair. 1.20 GENERAL LIABILITY OF CONTRACTOR. Except as otherwise herein expressly agreed, Contractor shall do all the work and furnish all the labor, materials, tools, power and light, and appliances, necessary or proper for performing and completing the work herein required in the manner within the time herein specified. The mention of any specific duty or liability of Contractor shall not be construed as limitation or restriction of any general liability or duty of Contractor and, any reference to any specific duty or liability shall be construed to be for the purpose of explanation. 1.21 FAILURE TO MAINTAIN INSURANCE. During the term of this Agreement, and until final completion and acceptance of the work by the City, the Contractor shall maintain in full force and effect insurance coverage in the forms and amounts specified in the Standard Specifications. If, at any time during the performance of this Contract, Contractor fails to maintain any item of required insurance in full force and effect, Contractor shall immediately discontinue ali work under the Contract and City will withhold all Contract Payments due or that become due until notice is received by City that such insurance has been restored in full force and effect and that the premiums therefor have been paid for a period satisfactory to the City Page A - 5 Manager. 1.22 EXTENSIONS OF TIME. In the event City deems it necessary, in its sole discretion, to extend the time of completion of work to be done under this Contract beyond the required Completion Date herein specified, such extensions shall in no way release any guarantee given by Contractor pursuant to the provisions of the Contract Documents, nor shall such extension of time relieve or release the sureties on the bonds executed pursuant to said provisions. By executing such bonds, the sureties shall be deemed to have expressly agreed to any such extension of time. The amount of time allowed in any extension of time shall be limited to the period of excusable delay as defined herein giving rise to the same as determined by City Engineer. 1.23 EXCUSABLE DELAYS. For the purpose of these Contract Documents, the term "Excusable Delays" shall mean, and is limited to, delays caused directly by acts of God, acts of the public enemy, fires, riots, insurrections, epidemics, quarantine restrictions, strikes, lockouts, sitdowns, acts of a governmental agency, priorities or privileges established for the manufacture, assembly, or allotment of materials necessary in the work by order, decree, or otherwise of the United States or by any department, bureau, commission, committee, agent, or administrator of any legally constituted public authority; changes in the work ordered by City insofar as they necessarily require additional time in which to complete the work; the prevention by City of Contractor from commencing or prosecuting the work because of the acts of others, excepting Contractor's subcontractors; or the prevention of Contractor from commencing or prosecuting the work because of a city-wide failure of public utility service. The term "Excusable Delay" shall specifically not include: (1) any delay which could have been avoided by the exercise of case, prudence, foresight, and diligence on the part of Contractor; (2) any delay in the prosecution of parts of the work, which may in itself be unavoidable but which does not necessarily prevent or delay the prosecution of other parts of the work, nor the completion of the whole work within the time specified; (3) any reasonable delay resulting from time required by City for review of plans and submittals required of Contractor and for the making of surveys, measurements and inspections; and (4) any delay arising from an interruption in the prosecution of the work on account of the reasonable interference from other Contractors employed by City, which does not necessarily prevent the completion of the work within the time specified. Excusable Delays, if any, shall operate only to extend the Completion Date (not in excess of the period of such delay as determined by the City) but shall not under any circumstances increase the sum City is to pay Contractor as provided in these Contract Documents. 1.24 CONTRACTOR TO SERVE NOTICE OF DELAYS. Whenever Contractor foresees any delay in the prosecution of the work, and in any event immediately upon the occurrence of any delay which Contractor regards as an excusable delay, he shall notify the City Engineer in writing of the probability of such delay and its cause, in order that the City Engineer may take immediate steps to prevent if possible the occurrence or continuance of the delay, or if this Page A - 6 cannot he done, may determine whether the delay is to be considered excusable, how long it continues, and to what extent the prosecution and completion of the work are delayed thereby. Said notice shall constitute an application for an extension of time only if the notice requests such an extension and sets forth Contractor's estimate of the additional time required together with a full description of the cause of the delay relied upon. After the completion of any part or whole of the work, the City Engineer, in estimating the amount due Contractor, will assume that any and all delays which may have occurred in its prosecution and completion have been avoidable delays, except such delays as shall have been called to the attention of the City Engineer at the time of their occurrence and found by him to have been excusable. Contractor shall make no claim that any delay not called to the attention of the City Engineer at the time of its occurrence has been an excusable delay. 1.25 EXTENSION OF TIME - EXCUSABLE DELAY. Should any delays occur which the City Engineer may consider excusable, as herein defined, Contractor shall, pursuant to his application, be allowed an extension of time beyond the time herein set forth proportional to said delay or delays in which to complete this Contract; and, during an extension which may have been granted because of an excusable delay or delays, City shall not charge liquidated damages against Contractor for such delay. 1.26 EXTENSION OF TIME DOES NOT WAIVE CITY'S RIGHTS. The granting of any extension of time on account of delays which in the judgment of the City Engineer are excusable delays shall in no way operate as a waiver on the part of City of its rights under this Contract excepting only the extension of the Completion Date. 1.27 NO PAYMENT FOR DELAYS. No damages or compensation of any kind shall be paid to Contractor or any subcontractor because of delays in the progress of the work whether such delays qualify for extension of time under this Agreement or not. Contractor waives ail claims against City, its officials and employees, for any loss or damage sustained by reason of delays beyond the Completion Date arising out of modifications of this Agreement, including modifications deemed necessary or desirable by City for the correction of errors or omissions in the Contract Documents. 1.28 CHANGES IN THE WORK. Changes in the work made pursuant to changes issued in accordance with the Standard Specifications and extensions of time of completion made necessary by reason thereof (beyond the Completion Date) shall not in any way release any guarantee given by Contractor pursuant to the provisions of the Contract Documents, or the Contract let hereunder, nor shall such changes in the work relieve or release the sureties on bonds executed pursuant to the said provisions. By executing such bonds, the sureties shall be deemed to have expressly agreed to any Page A - 7 such change in the work and to any extension of time made by reason thereof. 1.29 TERMINATION AFTER COMPLETION DATE. In addition to any other rights it may have, City may terminate this Contract at any time after the Completion Date as adjusted by any extensions of time for excusable delays that may have been granted. Upon such termination Contractor shall not be entitled to receive any compensation for services rendered by him before or after such termination, and he shall be liable to City for liquidated damages for all periods of time beyond such termination date until the work is completed. 1.30 CONTRACTOR BANKRUPT. If Contractor should commence any proceeding under the Bankruptcy Act, or if Contractor be adjudged a bankrupt, or if Contractor should make any assignment for the benefit of creditors, or if a receiver should be appointed on account of Contractor's insolvency, then the City Council may, without prejudice to any other right or remedy, terminate the Contract and complete the work by giving notice to Contractor and his surety according to the provisions of Section 1.31. Contractor's Surety shall have the right to complete the work by commencing thirty (30) days as specified in Section 1.31; and, in the event Contractor's Surety fails to commence work within thirty (30) days, City shall have the right to complete, or cause completion of the work, all as specified in Section 1.31. 1.31 TERMINATION FOR BREACH OF CONTRACT. If Contractor should abandon the work under this Contract, or if the Contract or any portion of the Contract should be sublet or assigned without the consent of the City Council, or if the City Engineer should be of the opinion that the conditions of the Contract in respect to the rate of progress of the work are not being fulfilled or any part thereof is unnecessarily delayed, or if Contractor should wilfully violate or breach, or fail to execute in good faith, any of the terms or conditions of the Contract, or if Contract should persistently refuse or fail to supply enough properly skilled labor or materials, or fail to make prompt payment to subcontractors for material or labor, or persistently disregard laws, ordinances, or proper instruction or orders of the Engineer, then, notwithstanding any provision to the contrary herein, the City Council may give Contractor and his Surety written notification to immediately correct the situation or the Contract shall be terminated. In the event that such notice is given, and, in the event such situation is not corrected, or satisfactory arrangement for correction is not made, within ten (10) calendar days from the date of such notice, the Contract shall upon expiration of said ten (10) calendar days cease and terminate. In the event of any such termination, City shall immediately serve notice therof upon the Surety and Contractor; and the Surety shall have the right to take over and perform the Contract, provided, however, that if the Surety does not commence performance thereof within thirty (30) days from the date of the mailing to such Surety of notice of termination, City may take over the work and prosecute the same to completion by Contract, or otherwise, for the account and at the expense of Contractor, and his Surety shall be liable to City for any excess cost occasioned Page A - 8 City thereby, as hereinafter set forth. In the event City completes the work, or causes the work to be completed, as aforesaid, no payment of any sum shall be made to Contractor until the work is complete. The cost of completing the work, including but not limited to, extra contract costs, the costs of City forces, extra costs of administration and management incurred by City, either direct or indirect, shall be deducted from any sum then due, or which becomes due, to Contractor from City. If no sum sufficient to pay the difference between sums due to Contractor from City and the cost of completing work, and there is a sum remaining due to Contractor after City deducts the aforementioned costs of completing the work, then City shall thereupon pay such sum to Contractor and his Surety. No act by City before the work is finally accepted including, but not limited to, exercise of other rights under the Contract, actions at law or in equity, extensions of time, payments, claims of liquidated damages, occupation or acceptance of any part of the work, waiver of any prior breach of the Contract or failure to take action pursuant to this section upon the happening of any prior default or breach by Contractor shall be construed to be a waiver, or to estop, City from acting pursuant to this paragraph upon any subsequent event, occurrence or failure by Contractor to fulfill the terms and conditions of the Contract. The rights of City pursuant to this paragraph are cumulative and in addition to all other rights of City pursuant to this Agreement and at law or in equity. IN WITNESS %CHEREOF, the parties hereto have signed this Agreement on the date set forth opposite their names. Date: CONTRACTOR A.S.E. Drilling, Inc. By Date: Title CITY OF DUBLIN, A Municipal Corporation ATTEST: By Mayor City Clerk ORIGINAL APPROVED AS TO FORM City Attorney Page A - 9