CITY OF OVERLAND PARK

PROJECT NAME

(PROJECT NUMBER)

INSTRUCTIONS TO CONTRACTOR

IB‑1.	INSURANCE:

a.	General: The Contractor shall secure and maintain, throughout the duration of this Contract, insurance (on an occurrence basis unless otherwise agreed to) of such types and in at least such amounts as required herein. Contractor shall provide certificates of insurance and renewals thereof on forms provided by the City or on forms acceptable to the City. The City shall be notified by receipt of written notice from the insurer or the Contractor at least thirty (30) days prior to material modification or cancellation of any policy listed on the Certificate.

Bidders are referred to paragraph GC‑36. of the General Conditions for additional insurance information.

b.	Notice of Claim Reduction of Policy Limits: The Contractor, upon receipt of notice of any claim in connection with the Contract, shall promptly notify the City, providing full details thereof, including an estimate of the amount of loss or liability.

The Contractor shall monitor and promptly notify the City of any reduction in limits of protection afforded under any policy listed in the Certificate (or otherwise required by the Contract Documents) if the Contractor’s limits of protection shall have been impaired or reduced to such extent that the limits fall below the minimum amounts required herein. The Contractor shall promptly reinstate the original limits of liability required hereunder and shall furnish evidence thereof to the City.

MINIMUM REQUIREMENTS – OPTION A

c.	General Liability:

Limits –

General Aggregate:	$500,000
Products / Completed Operations Aggregate:	$500,000
Personal & Advertising Injury:	$500,000
Each Occurrence:	$500,000

Policy MUST include the following conditions:

1.	Commercial General Form

Explosion, Collapse & Underground

Broad Form Contractual / Contractually Assumed Liability

4.	Independent Contractors

5.	Broad Form Property Damage

6.	Pollution Liability (Applicable only to contracts involving pollutants such as asbestos & lead abatement, sludge or other waste abatement, etc.)

7.	NAME CITY OF OVERLAND PARK AS “ADDITIONAL INSURED”

d.	Automobile Liability: Policy shall protect the Contractor against claims for bodily injury and/or property damage arising from the ownership or use of any owned, hired and/or non‑owned vehicle.

Limits (Same as General Liability) -

Combined Single Limits, Bodily Injury and Property Damage - Each Accident:

Policy MUST include the following condition:

NAME CITY OF OVERLAND PARK AS “ADDITIONAL INSURED”

e.	Workers' Compensation: This insurance shall protect the Contractor against all claims under applicable state workers' compensation laws. The Contractor shall also be protected against claims for injury, disease or death of employees which, for any reason, may not fall within the provisions of workers' compensation law. The policy limits shall not be less than the following:

Workers' Compensation:	Statutory

Employer's Liability:

Bodily Injury by Accident	$100,000 each accident

Bodily Injury by Disease	$500,000 policy limit

Bodily Injury by Disease	$100,000 each employee

f.	Industry Ratings: The City will only accept coverage from an insurance carrier who offers proof that it:

1.	Is licensed to do business in the State of Kansas;

2.	Carries a Best's policy holder rating of A- or better; and

3.	Carries at least a Class VIII financial rating, or

4.	Is a company mutually agreed upon by the City and Contractor.

g.	Subcontractors' Insurance: If a part of the Contract is to be sublet, the Contractor shall either:

1.	Cover all subcontractors in its insurance policies, or

2.	Require each subcontractor not so covered to secure insurance which will protect subcontractor against all applicable hazards or risks of loss as and in the minimum amounts designated.

Whichever option is chosen, contractor shall indemnify and hold harmless the City as to any and all damages, claims or losses, including attorney's fees, arising out of the acts or omissions of its subcontractors.

IB‑2.	TAXES: It is the intent of the City to supply the Contractor with a Sales and Compensating Tax Exemption Certificate for use in purchasing materials and supplies used on the project. The Contractor shall, in preparing its proposal, omit from its computed costs all sales and compensation taxes. Two copies of State of Kansas Project Completion Certification (Form DO‑77) will be furnished the City by the Kansas Department of Revenue upon issuance of a tax exemption number. Two copies of the Project Completion Certification will be forwarded to the Contractor and must be signed and returned to the City upon completion of the project. The City will forward one (1) copy of the Project Completion Certification to the Kansas Department of Revenue and retain one copy. All invoices must be retained by the Contractor for a period of five (5) years and are subject to audit by the Kansas Department of Revenue. Final payment will not be made to the Contractor until the City has received the two Project Completion Certifications from the Contractor along with a Consent of Surety Company to Final Payment.

IB‑3.	LIQUIDATED DAMAGES: In case of failure on the part of the Contractor to effect completion within the time specified, the City shall have the right to deduct from the total compensation otherwise due the Contractor as liquidated damages based on the full bid price of the Contract, fixed and agreed to in advance, according to the following schedule:

Contract Amount
Liquidated Damages
$0	to	$50,000
$250.00
$50,000	to	$100,000
$400.00
$100,000	to	$500,000
$800.00
$500,000	to	$1,000,000
$1,000.00
$1,000,000	to	$2,000,000
$1,750.00
$2,000,000	to	$5,000,000
$2,500.00
$5,000,000	to	$10,000,000
$3,500.00
$10,000,000	to	$20,000,000
$5,500.00
$20,000,000	and up
$6,000.00

for each 24‑hour calendar day, including Sundays and holidays, the work remains incomplete over the specified completion time.

In the event moneys being retained by the City shall not be sufficient to cover the amount of any liquidated damages, City may sue for and recover compensation for damages for nonperformance of this Contract at the time stipulated herein and provided for.

IB‑4.	BONDS: The Contractor to whom the work is awarded will be required to furnish a Performance Bond and a Statutory or Labor and Material Payment Bond in the forms hereinafter provided in an amount equal to 100 percent of the amount of the Contract to be awarded in each case in addition to any other bonds as may be required by the contract documents. With each bond there shall be filed with the City one copy of "Power of Attorney" certified to include the date of the bonds.

IB‑5.	INDEMNIFICATION: The Contractor shall be required to indemnify and hold the City harmless as set forth in paragraph GC‑31. of the General Conditions.

IB‑6.	NON‑DISCRIMINATION, AFFIRMATIVE ACTION AND SEXUAL HARASSMENT: The Contractor shall comply with paragraph GC‑65. of the General Conditions.

IB‑7.	APPOINTMENT OF SERVICE AGENT: Kansas Statutes Annotated 16‑113 requires that non‑resident contractors appoint an agent for the service of process in Kansas. The executed appointment must then be filed with the Secretary of State, Topeka, Kansas. Any successful bidder‑contractor domiciled outside the State of Kansas must comply with these statutory requirements.

IB‑8.	SUBCONTRACTING: As provided in paragraph GC-34, the Contractor may utilize the services of subcontractors on those parts of the Work which, under normal contracting practices, are performed by subcontractors; provided, however that the Contractor shall not award subcontracts which total more than sixty percent (60%) of the total Contract Price based upon the unit prices within the Proposal submitted to the City by the Contractor.

IB‑9.	CONFLICT OF INTEREST: 31 USCS Section 1352 requires all subgrantees, contractors, subcontractors and consultants who receive federal funds via the City to certify that they will not use federal funds to pay any person for influencing or attempting to influence a federal agency or Congress in connection with the award of any federal contract, grant, loan or cooperative agreements.

In addition, contract applicants, recipients and subrecipients must file a form disclosing any expenditures they make for lobbying out of non‑federal funds during the contract period. Necessary forms are available from the City Engineer and should be returned to the City with other contract documents. It is the responsibility of the general contractor to obtain executed forms from any subcontractors who fall within the provisions of the Code and to provide the City with the same.

I-3	Rev. 1/26/09

Instructions to Bidders - Option A

Public Works

2008-06-18

City of Overland Park