Preview
EXHIBIT A-1
LULL STREET IMPROVEMENTS
CITY OF EDINBURG AGREEMENT
Document 00520
AGREEMENT BETWEEN OWNER AND CONTRACTOR
FOR CONSTRUCTION CONTRACT
This Agreement is by and between CITY OF EDINBURG (“Owner”) and Texas Cordia Construction,
(“Contractor”).
Terms used in this Agreement have the meanings stated in the General Conditions and the
Supplementary Conditions.
Owner and Contractor hereby agree as follows:
WORK
1.01 Contractor shall complete all Work as specified or indicated in the Contract Documents.
The Work is generally described as follows: Paving improvements of all internal streets
of Lull Subdivision. Proposed reconstruction of existing streets and along with
curb and gutter to be installed for Tagle St., Rodriguez Blvd, Salinas St., N Flores
St., Delgado St., Perales St., Trevino St., Villanueva St., Rivera St. and Tanguma
St.
THE PROJECT
2.01 The Project, of which the Work under the Contract Documents is a part, is generally
described as follows: Bid No. 2021-24 Lull Street Improvements
ENGINEER
3.01 The Owner has retained Melden and Hunt, Inc (“Engineer”) to act as Owner's
representative, assume all duties and responsibilities of Engineer, and have the rights and
authority assigned to Engineer in the Contract.
3.02 The part of the Project that pertains to the Work has been designed by Melden and Hunt,
Inc. and Ruben James De Jesus P.E., R.P.L.S. has been assigned a Project Engineer
CONTRACT TIMES
4.01 Time is of the Essence
A. All time limits for Milestones, if any, Substantial Completion, and completion and
readiness for final payment as stated in the Contract Documents are of the essence
of the Contract.
4.02 Contract Times: Dates
A The Work will be substantially complete on or before June 10, 2022, and completed
and ready for final payment in accordance with Paragraph 15.06 of the General
Conditions on or before July 25, 2022.
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CITY OF EDINBURG AGREEMENT
4.03 Milestones
A. Parts of the Work must be substantially completed on or before the following
Milestone(s):
1. Milestone 1 Substantial Completion / June 10, 2022
2. Milestone 2 Final Completion / July 25, 2022
4.04 Liquidated Damages
A. Contractor and Owner recognize that time is of the essence as stated in
Paragraph 4.01 above and that Owner will suffer financial and other losses if the Work
is not completed and Milestones not achieved within the Contract Times, as duly
modified. The parties also recognize the delays, expense, and difficulties involved in
proving, in a legal proceeding, the actual loss suffered by Owner if the Work is not
completed on time. Accordingly, instead of requiring any such proof, Owner and
Contractor agree that as liquidated damages for delay (but not as a penalty):
as Substantial Completion: Contractor shall pay Owner based on fees below for each
day that expires after the time (as duly adjusted pursuant to the Contract)
specified above for Substantial Completion, until the Work is substantially
complete.
For Contract of Amount Cost Per Day
$5,000.00 To $25,000.00 $100.00
$25,000.01 To $100,000.00 $200.00
$100,000.01 To $500,000.00 $250.00
$500,000.01 To $1,000,000.00 $300.00
$1,000,000.01 To $2,000,000.00 $400.00
$2,000,000.01 To $3,000,000.00 $500.00
$3,000,000.01 To $4,000,000.00 $600.00
$4,000,000.01 To $5,000,000.00 $700.00
$5,000,000.01 And | Over $800.00
2. Completion of Remaining Work: After Substantial Completion, if Contractor shall
neglect, refuse, or fail to complete the remaining Work within the Contract Times
(as duly adjusted pursuant to the Contract) for completion and readiness for final
payment, Contractor shall pay Owner $600 for each day that expires after such
time until the Work is completed and ready for final payment.
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Milestones: Contractor shall pay Owner $600 for each day that expires after the
time (as duly adjusted pursuant to the Contract) specified above for achievement
of Milestone 1, until Milestone 1 is achieved, or until the time specified for
Substantial Completion is reached, at which time the rate indicated in
Paragraph 4.05.A.1 will apply, rather than the Milestone rate.
Liquidated damages for failing to timely attain Milestones, Substantial
Completion, and final completion are not additive, and will not be imposed
concurrently.
If Owner recovers liquidated damages for a delay in completion by Contractor, then
such liquidated damages are Owner's sole and exclusive remedy for such delay, and
Owner is precluded from recovering any other damages, whether actual, direct,
excess, or consequential, for such delay, except for special damages (if any) specified
in this Agreement.
4.06 Special Damages
A. Contractor shall reimburse Owner (1) for any fines or penalties imposed on Owner as
a direct result of the Contractor's failure to attain Substantial Completion according
to the Contract Times, and (2) for the actual costs reasonably incurred by Owner for
engineering, construction observation, inspection, and administrative services
needed after the time specified in Paragraph 4.02 for Substantial Completion (as duly
adjusted pursuant to the Contract), until the Work is substantially complete.
After Contractor achieves Substantial Completion, if Contractor shall neglect, refuse,
or fail to complete the remaining Work within the Contract Times, Contractor shall
reimburse Owner for the actual costs reasonably incurred by Owner for engineering,
construction observation, inspection, and administrative services needed after the
time specified in Paragraph 4.02 for Work to be completed and ready for final
payment (as duly adjusted pursuant to the Contract), until the Work is completed and
ready for final payment.
The special damages imposed in this paragraph are supplemental to any liquidated
damages for delayed completion established in this Agreement.
CONTRACT PRICE
5.01 Owner shall pay Contractor for completion of the Work in accordance with the Contract
Documents, the amounts that follow, subject to adjustment under the Contract:
A. For all Work other than Unit Price Work, a $721,798.00 for Alternate 1.
All specific cash allowances are included in the above price in accordance with
Paragraph 13.02 of the General Conditions.
For all Unit Price Work, an amount equal to the sum of the extended prices
(established for each separately identified item of Unit Price Work by multiplying the
unit price times the actual quantity of that item).
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ITY OF EDINBURG AGREEMENT
Unit Price Work (Base Bid)
Item Estimated Unit Extended
Description Unit
No. Quantity Price Price
18" RG-RCP storm sewer LF 1970 $ 46.00 $ 90,620.00
Type "CC" grated inlets EA 22 $ 2,950.00 $ 64,900.00
Headwall/downdrain EA 2 $ 4,600.00 $9,200.00
Inlet sock (erosion control) EA 22 $ 4.00 $ 88.00
Temporary construction
EA a.
entrance $ 2,000.00 $ 2,000.00
Relocate mail box EA 91 $ 130.00 $ 11,830.00
Relocate Stop sign EA 46 $185.00 $ 8,510.00
Remove culvert (haul off) LF 5,600 $ 5.00 $ 28,000.00
Remove existing asphalt paving sy 49,000 $1.50 $ 73,500.00
10 Concrete driveways SF 52,000 $4.50 $ 234,000.00
**Driveway Fill & compaction
to be included in unit price
Fire hydrant relocation
11 16
(complete in place) EA $ 6,200.00 $99,200.00
12 Excavation and grading SY 69,960 $2.50 $ 174,900.00
3% Lime treated 8 inch
13 sy 69,960
subgrade $3.50 $ 244,860.00
8" Compacted 1.5% lime
$ 524,700.00
14 treated crushed caliche base sy 69,960 $7.50
with prime
2" Hot mix asphaltic concrete
15
w/tack coat sy 56,250 $ 12.00 $ 675,000.00
16 8" Curb & gutter LF 31,200 $10.00 $ 312,000.00
17 6' Valley gutter LF 30 $ 1,586.00 $ 47,580.00
Stop bar striping (24"
18
thermoplastic) EA 46 $ 200.00 $9,200.00
19 Street intersection signs EA 46 $ 536.00 $ 24,656.00
20 Center Lane striping LF 9,850 $1.50 $ 14,775.00
Alternate 1:
1, 4"X5' wide concrete sidewalks sy 170500 $3.50 $ 596,750.00
2 ADA ramps EA 77 $ 1,624.00 $125,048.00
Total of all Extended Prices for Unit Price Work (subject to final
adjustment based on actual quantities) $3,371,317.00
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CITY OF EDINBURG AGREEMENT
The extended prices for Unit Price Work set forth as of the Effective Date of the
Contract are based on estimated quantities. As provided in Paragraph 13.03 of the
General Conditions, estimated quantities are not guaranteed, and determinations of
actual quantities and classifications are to be made by Engineer.
Total of Lump Sum Amount and Unit Price Work (subject to final Unit Price
adjustment) $3,371,317.00.
D. For all Work, at the prices stated in Contractor's Bid, attached hereto as an exhibit.
PAYMENT PROCEDURES
6.01 Submittal and Processing of Payments
A. Contractor shall submit Applications for Payment in accordance with Article 15 of the
General Conditions. Applications for Payment will be processed by Engineer as
provided in the General Conditions.
6.02 Progress Payments; Retainage
A. Owner shall make progress payments on the basis of Contractor’s Applications for
Payment on or about the 25" day of each month during performance of the Work as
provided in Paragraph 6.02.A.1 below, provided that such Applications for Payment
have been submitted in a timely manner and otherwise meet the requirements of the
Contract. All such payments will be measured by the Schedule of Values established
as provided in the General Conditions (and in the case of Unit Price Work based on
the number of units completed) or, in the event there is no Schedule of Values, as
provided elsewhere in the Contract.
1 Prior to Substantial Completion, progress payments will be made in an amount
equal to the percentage indicated below but, in each case, less the aggregate of
payments previously made and less such amounts as Owner may withhold,
including but not limited to liquidated damages, in accordance with the Contract.
a 95 percent of the value of the Work completed (with the balance being
retainage); and
95 percent of cost of materials and equipment not incorporated in the Work
(with the balance being retainage).
Upon Substantial Completion, Owner shall pay an amount sufficient to increase total
payments to Contractor to 100 percent of the Work completed, less such amounts
set off by Owner pursuant to Paragraph 15.01.E of the General Conditions, and less
200 percent of Engineer’s estimate of the value of Work to be completed or corrected
as shown on the punch list of items to be completed or corrected prior to final
payment.
6.03 Final Payment
A. Upon final completion and acceptance of the Work, Owner shall pay the remainder
of the Contract Price in accordance with Paragraph 15.06 of the General Conditions.
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6.04 Consent of Surety
A. Owner will not make final payment, or return or release retainage at Substantial
Completion or any other time, unless Contractor submits written consent of the
surety to such payment, return, or release.
6.05 Interest
A. Allamounts not paid when due will bear interest at the rate of [0] percent per annum.
CONTRACT DOCUMENTS
7.01 Contents
A. The Contract Documents consist of all of the following:
1 This Agreement.
2 Bonds:
a Performance bond (together with power of attorney).
b. Payment bond (together with power of attorney).
General Conditions.
Supplementary Conditions.
Specifications as listed in the table of contents of the project manual (copy of list
attached).
Drawings (not attached but incorporated by reference) consisting of 19 sheets
with each sheet bearing the following general title: Lull Street Improvement
Project.
Addenda (numbers 1 to 3, inclusive).
The following which may be delivered or issued on or after the Effective Date of
the Contract and are not attached hereto:
a Notice to Proceed.
b. Work Change Directives.
c. Change Orders.
d Field Orders.
e. Warranty Bond, if any.
The Contract Documents listed in Paragraph 7.01.A are attached to this Agreement
(except as expressly noted otherwise above).
There are no Contract Documents other than those listed above in this Article 7.
The Contract Documents may only be amended, modified, or supplemented as
provided in the Contract.
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CITY OF EDINBURG AGREEMENT
REPRESENTATIONS, CERTIFICATIONS, AND STIPULATIONS
8.01 Contractor's Representations
A In order to induce Owner to enter into this Contract, Contractor makes the following
representations:
1 Contractor has examined and carefully studied the Contract Documents,
including Addenda.
Contractor has visited the Site, conducted a thorough visual examination of the
Site and adjacent areas, and become familiar with the general, local, and Site
conditions that may affect cost, progress, and performance of the Work.
Contractor is familiar with all Laws and Regulations that may affect cost, progress,
and performance of the Work.
Contractor has carefully studied the reports of explorations and tests of
subsurface conditions at or adjacent to the Site and the drawings of physical
conditions relating to existing surface or subsurface structures at the Site that
have been identified in the Supplementary Conditions, with respect to the
Technical Data in such reports and drawings.
Contractor has carefully studied the reports and drawings relating to Hazardous
Environmental Conditions, if any, at or adjacent to the Site that have been
identified in the Supplementary Conditions, with respect to Technical Data in such
reports and drawings.
Contractor has considered the information known to Contractor itself;
information commonly known to contractors doing business in the locality of the
Site; information and observations obtained from visits to the Site; the Contract
Documents; and the Technical Data identified in the Supplementary Conditions
or by definition, with respect to the effect of such information, observations, and
Technical Data on (a) the cost, progress, and performance of the Work; (b) the
means, methods, techniques, sequences, and procedures of construction to be
employed by Contractor; and (c) Contractor's safety precautions and programs.
Based on the information and observations referred to in the preceding
paragraph, Contractor agrees that no further examinations, investigations,
explorations, tests, studies, or data are necessary for the performance of the
Work at the Contract Price, within the Contract Times, and in accordance with the
other terms and conditions of the Contract.
Contractor is aware of the general nature of work to be performed by Owner and
others at the Site that relates to the Work as indicated in the Contract
Documents.
Contractor has given Engineer written notice of all conflicts, errors, ambiguities,
or discrepancies that Contractor has discovered in the Contract Documents, and
of discrepancies between Site conditions and the Contract Documents, and the
written resolution thereof by Engineer is acceptable to Contractor.
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10. The Contract Documents are generally sufficient to indicate and convey
understanding of all terms and conditions for performance and furnishing of the
Work.
11, Contractor's entry into this Contract constitutes an incontrovertible
representation by Contractor that without exception all prices in the Agreement
are premised upon performing and furnishing the Work required by the Contract
Documents.
8.02 Contractor’s Certifications
A. Contractor certifies that it has not engaged in corrupt, fraudulent, collusive, or
coercive practices in competing for or in executing the Contract. For the purposes of
this Paragraph 8.02:
1 “corrupt practice” means the offering, giving, receiving, or soliciting of anything
of value likely to influence the action of a public official in the bidding process or
in the Contract execution;
“fraudulent practice” means an intentional misrepresentation of facts made (a)
to influence the bidding process or the execution of the Contract to the detriment
of Owner, (b) to establish Bid or Contract prices at artificial non-competitive
levels, or (c) to deprive Owner of the benefits of free and open competition;
“collusive practice” means a scheme or arrangement between two or more
Bidders, with or without the knowledge of Owner, a purpose of which is to
establish Bid prices at artificial, non-competitive levels; and
“coercive practice” means harming or threatening to harm, directly or indirectly,
persons or their property to influence their participation in the bidding process
or affect the execution of the Contract.
8.03 Standard General Conditions
A. Owner stipulates that if the General Conditions that are made a part of this Contract
are EJCDC® C-700, Standard General Conditions for the Construction Contract (2018),
published by the Engineers Joint Contract Documents Committee, and if Owner is the
party that has furnished said General Conditions, then Owner has plainly shown all
modifications to the standard wording of such published document to the Contractor,
through a process such as highlighting or “track changes” (redline/strikeout), or in the
Supplementary Conditions.
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LULL STREET IMPROVEMENTS
CITY OF EDINBURG AGREEMENT
IN WITNESS WHEREOF, Owner and Contractor have signed this Agreement.
This Agreement will b, ffective on August 2021 (which is the Effective Date of the
Contract).
Owner: Contractor,
City of Edinbur; Texas CordiaCpnstruction.
(typed o name of organization) (typed gr pfinted n ‘of organization)
By
= ne 0 (individual's signature)
Date: Date ¥lae [Joa
Vv (date signed) (date signed)
Na Ron Garza Name: Yara M. Corbitt, PE
(typed or printed) (typed or printed)
tle: City Manager Title CEO
oe
“Se oi a (typed or (typed or printed)
(If Texas Cordia is a corporation, a partnership, or a joint
cu
a? venture, attach evidence of a rity to sign.)
3 >
ys
we
? | = a)
Attest: sez (individual's signature)
# ?
Title coo
(typed or printed) (typed or printed)
me nanan dress for giving notices: Address for giving notices:
City of Edinburg Texas Cordia Construction, LLC
415 W. University Drive 3149-A Center Pointe Drive
Edinburg, TX 78539 Edinburg, Texas 78539
Designated Representative: Designated Representative
Name: Mardoqueo Hinojosa, P.E.,CFM Name: YaraM. Corbitt, PE
(typed or printed) (typed or printed)
Title City Engineer Title CEO
(typed or printed) (typed or printed)
Address: Address:
—__415
University
W, Drive 3149-A Center Pointe Drive
Edinburg, Texas 78539 Edinburg, TX 78539
Phone: 956-388-8204 Phone (956) 627-6181
Email:mhinojosa@cityofedinburg.com Email yara@texascordia.com
(if City of Edinburg is a public body, attach evidence of
authority to sign and resolution or other documents License No.
authorizing execution of this Agreement.) (where applicable)
State:
APPROVED AS TO FORM
OMAR OCHOA LAW FIRM, P.C.
Omar Ochoa, City Attorney 00520- 9
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Bond No. 6131031489
LULL STREET IMPROVEMENT PROJECT #2021-24
CITY OF EDINBURG Performance Bond
PERFORMANCE BOND
Contractor Surety
‘Name: Texas Cordia Construction Name: United States Fire Insurance Company
Address (principal place of business): Address (principal place of business):
3149-A Center Pointe Dr. 305 Madison Avenue
Edinburg, TX 78539 Morristown, NJ 07962
Owner Contract
Name: City of Edinburg Description (name and location):
Mailing address (principal place of business): Lull Street Improvement #2021-24
Edinburg, Texas
415 W. University Drive
Edinburg, TX 78539 Contract Price: 7 Milion Three Hundred Seventy-one Thousand
Three Hundred Seventeen and 00/100ths ($3,371,317.00)
Effective Date of
August 18, 2021
Contract:
Bond
Bond_ Three Million Three Hundred Seventy-one Thousand Three Hundred Seventeen and 00/100ths ($3,371,317.00)
Date of Bond: August 18, 2021
(Date of Bond cannot be earlier than Effective Date of Contract)
Modifications to this Bond form:
& None L See Paragraph 16
Surety and Contractor, intending to be legally bound hereby, subject to the terms set forth in this
Performance Bond, do each cause this Performance Bond to be duly executed by an authorized
officer, agent, or representative.
Contractor as Principal Surety
Texas Cordia Construction United States Fire Insurance Company
ul! frmelyrame, of Coptractor) by: (Full. PD fe seth
By:
(Sienlihire) (Signature)(Attach Power bf-Attorney)
Name Var M. Corbitt, 0E Name: Russ Frenzel
(Printed or typed) (Printed or hyped)
Title: Title: Attorney-in-Fact
Attest . ate Attest: Coane ongres _|
(Signature)
\
Name lgaac Wereden Name: Chandler Nazzal
(Printed or typed) (Printed or typed)
Title: Coo Title: Witness
Notes: (1) Provide supplemental execution by any additional parties, such as joint venturers. (2) Any singular reference to
Contractor, Surety, Owner, or other party is considered plural where applicable.
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LULL STREET IMPROVEMENT PROJECT #2021-24
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The Contractor and Surety, jointly and severally, bind themselves, their heirs, executors,
administrators, successors, and assigns to the Owner for the performance of the Construction
Contract, which is incorporated herein by reference.
1 If the Contractor performs the Construction Contract, the Surety and the Contractor shall have
no obligation under this Bond, except when applicable to participate in a conference as
provided in Paragraph 3,
If there is no Owner Default under the Construction Contract, the Surety’s obligation under
this Bond will arise after:
2.1. The Owner first provides notice to the Contractor and the Surety that the Owner is
considering declaring a Contractor Default. Such notice may indicate whether the Owner
is requesting a conference among the Owner, Contractor, and Surety to discuss the
Contractor’s performance. If the Owner does not request a conference, the Surety may,
within five (5) business days after receipt of the Owner’s notice, request such a
conference. If the Surety timely requests a conference, the Owner shall attend. Unless the
Owner agrees otherwise, any conference requested under this Paragraph 3.1 will be held
within ten (10) business days of the Surety’s receipt of the Owner’s notice. If the Owner,
the Contractor, and the Surety agree, the Contractor shall be allowed a reasonable time to
perform the Construction Contract, but such an agreement does not waive the Owner’s
right, if any, subsequently to declare a Contractor Default;
2.2, The Owner declares a Contractor Default, terminates the Construction Contract and
notifies the Surety; and
2.3 The Owner has agreed to pay the Balance of the Contract Price in accordance with the
terms of the Construction Contract to the Surety or to a contractor selected to perform the
Construction Contract.
Failure on the part of the Owner to comply with the notice requirement in Paragraph 3.1 does
not constitute a failure to comply with a condition precedent to the Surety’s obligations, or
release the Surety from its obligations, except to the extent the Surety demonstrates actual
prejudice.
When the Owner has satisfied the conditions of Paragraph 3, the Surety shall promptly and at
the Surety’s expense take one of the following actions:
4.1. Arrange for the Contractor, with the consent of the Owner, to perform and complete the
Construction Contract;
4.2, Undertake to perform and complete the Construction Contract itself, through its agents or
independent contractors;
43 Obtain bids or negotiated proposals from qualified contractors acceptable to the Owner
for a contract for performance and completion of the Construction Contract, arrange for a
contract to be prepared for execution by the Owner and a contractor selected with the
Owners concurrence, to be secured with performance and payment bonds executed by a
qualified surety equivalent to the bonds issued on the Construction Contract, and pay to
the Owner the amount of damages as described in Paragraph 7 in excess of the Balance
of the Contract Price incurred by the Owner as a result of the Contractor Default; or
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44. Waive its right to perform and complete, arrange for completion, or obtain a new
contractor, and with reasonable promptness under the circumstances:
5.4.1 After investigation, determine the amount for which it may be liable to the Owner
and, as soon as practicable after the amount is determined, make payment to the
Owner; or
5.4.2 Deny liability in whole or in part and notify the Owner, citing the reasons for
denial.
If the Surety does not proceed as provided in Paragraph 5 with reasonable promptness, the
Surety shall be deemed to be in default on this Bond seven days after receipt of an additional
written notice from the Owner to the Surety demanding that the Surety perform its obligations
under this Bond, and the Owner shall be entitled to enforce any remedy available to the
Owner. If the Surety proceeds as provided in Paragraph 5.4, and the Owner refuses the
payment, or the Surety has denied liability, in whole or in part, without further notice, the
Owner shall be entitled to enforce any remedy available to the Owner.
If the Surety elects to act under Paragraph 5.1, 5.2, or 5.3, then the responsibilities of the
Surety to the Owner will not be greater than those of the Contractor under the Construction
Contract, and the responsibilities of the Owner to the Surety will not be greater than those of
the Owner under the Construction Contract. Subject to the commitment by the Owner to pay
the Balance of the Contract Price, the Surety is obligated, without duplication for:
6.1. the responsibilities of the Contractor for correction of defective work and completion of
the Construction Contract;
6.2. additional legal, design professional, and delay costs resulting from the Contractor’s
Default, and resulting from the actions or failure to act of the Surety under Paragraph 5;
and
6.3 liquidated damages, or if no liquidated damages are specified in the Construction
Contract, actual damages caused by delayed performance or non-performance of the
Contractor.
If the Surety elects to act under Paragraph 5.1, 5.3, or 5.4, the Surety’s liability is limited to the
amount of this Bond.
The Surety shall not be liable to the Owner or others for obligations of the Contractor that are
unrelated to the Construction Contract, and the Balance of the Contract Price will not be
reduced or set off on account of any such unrelated obligations. No right of action will accrue
on this Bond to any person or entity other than the Owner or its heirs, executors,
administrators, successors, and assigns.
The Surety hereby waives notice of any change, including changes of time, to the Construction
Contract or to related subcontracts, purchase orders, and other obligations.
10. Any proceeding, legal or equitable, under this Bond must be instituted in any court of
competent jurisdiction in the location in which the work or part of the work is located and
must be instituted within two years after a declaration of Contractor Default or within two
years after the Contractor ceased working or within two years after the Surety refuses or fails
to perform its obligations under this Bond, whichever occurs first. If the provisions of this
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paragraph are void or prohibited by law, the minimum periods of limitations available to
sureties as a defense in the jurisdiction of the suit will be applicable.
11 Notice to the Surety, the Owner, or the Contractor must be mailed or delivered to the address
shown on the page on which their signature appears.
12. When this Bond has been furnished to comply with a statutory or other legal requirement in
the location where the construction was to be performed, any provision in this Bond
conflicting with said statutory or legal requirement will be deemed deleted therefrom and
provisions conforming to such statutory or other legal requirement will be deemed
incorporated herein. When so furnished, the intent is that this Bond will be construed as a
statutory bond and not as a common law bond.
13 Definitions
13.1. Balance of the Contract Price—The total amount payable by the Owner to the Contractor
under the Construction Contract after all proper adjustments have been made including
allowance for the Contractor for any amounts received or to be received by the Owner in
settlement of insurance or other claims for damages to which the Contractor is entitled,
reduced by all valid and proper payments made to or on behalf of the Contractor under
the Construction Contract.
13.2. Construction Contract—The agreement between the Owner and Contractor identified on
the cover page, including all Contract Documents and changes made to the agreement
and the Contract Documents.
13.3. Contractor Default—Failure of the Contractor, which has not been remedied or waived,
to perform or otherwise to comply with a material term of the Construction Contract.
13.4, Owner Default—Failure of the Owner, which has not been remedied or waived, to pay
the Contractor as required under the Construction Contract or to perform and complete or
comply with the other material terms of the Construction Contract.
13.5, Contract Documents—All the documents that comprise the agreement between the
Owner and Contractor.
14. If this Bond is issued for an agreement between a contractor and subcontractor, the term
Contractor in this Bond will be deemed to be Subcontractor and the term Owner will be
deemed to be Contractor.
15. Modifications to this Bond are as follows: [None]
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Bond No. 6131031489
LULL STREET IMPROVEMENT PROJECT #2021-24
CITY OF EDINBURG Payment Bond
PAYMENT BOND
Contractor Surety
Name Texas Cordia Construction Name: United States Fire Insurance Company
Address (principal place of business) Address (principal place of business)
3149-A Center Pointe Dr. 305 Madison Avenue
Edinburg, TX 78539 Morristown, NJ 07962
Owner Contract
Name City of Edinburg Description (name and location)
Mailing address (principal place of business) Lull Street Improvement Project #2021-24
Edinburg, Texas
415 W. University Drive
Edinburg, TX 78539 Contract Price: Three Million Three Hundred Seventy-one Thousand
Three Hundred Seventeen and 00/100ths ($3,371,317.00)
Effective Date of
August 18, 2021
Contract;
Bond
Bond Three Million Three Hundred Seventy-one Thousand Three Hundred Seventeen and 00/100ths ($3,371,317.00)
Date of Bond: August 18, 2021
(Date of Bond cannot be earlier than Effective Date of
Contract)
Modifications to this Bond form
(None O See Paragraph 18
Surety and Contractor, intending to be legally bound hereby, subject to the terms set forth in this
Payment Bond, do each cause this Payment Bond to be duly executed by an authorized officer,
agent, or representative
Contractor as Principal Surety
‘Texas Cordia Construction United Btaies Fire Insurance Company
illffornfa] namelgy ntractor)
By
ature) ‘(Sienature) (Auch Powebof Ahiorney)
Name: Ven iPginted or oped)
bi Name Russ Frenzel
(Printed or typed)
Title: €Q Title Attorney-in-Fact
Attest:
(Signature)
Attest:
(Signature)
AL |
Name: [Saaz Here dia Name: Chandler Nazzal
(Printed or typed) (Printed or typed)
Title 00 Title: Witness
Notes: (1) Provide supplemental execution by any additional parties, such as joint venturers. (2) Any singular reference to
Contractor, Surety, Owner, or other party is considered plural where applicable.
00620 - 1 of 4
Edinburg
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LULL STREET IMPROVEMENT PROJECT #2021-24
CITY OF EDINBURG Payment Bond
The Contractor and Surety, jointly and severally, bind themselves, their heirs, executors,
administrators, successors, and assigns to the Owner to pay for labor, materials, and equipment
furnished for use in the performance of the Construction Contract, which is incorporated
herein by reference, subject to the following terms.
If the Contractor promptly makes payment of all sums due to Claimants, and defends,
indemnifies, and holds harmless the Owner from claims, demands, liens, or suits by any
person or entity seeking payment for labor, materials, or equipment furnished for use in the
performance of the Construction Contract, then the Surety and the Contractor shall have no
obligation under this Bond.
If there is no Owner Default under the Construction Contract, the Surety’s obligation to the
Owner under this Bond will arise after the Owner has promptly notified the Contractor and the
Surety (at the address described in Paragraph 13) of claims, demands, liens, or suits against the
Owner or the Owner’s property by any person or entity seeking payment for labor, materials,
or equipment furnished for use in the performance of the Construction Contract, and tendered
defense of such claims, demands, liens, or suits to the Contractor and the Surety.
When the Owner has satisfied the conditions in Paragraph 3, the Surety shall promptly and at
the Surety’s expense
Preview
EXHIBIT A-1 LULL STREET IMPROVEMENTS CITY OF EDINBURG AGREEMENT Document 00520 AGREEMENT BETWEEN OWNER AND CONTRACTOR FOR CONSTRUCTION CONTRACT This Agreement is by and between CITY OF EDINBURG (“Owner”) and Texas Cordia Construction, (“Contractor”). Terms used in this Agreement have the meanings stated in the General Conditions and the Supplementary Conditions. Owner and Contractor hereby agree as follows: WORK 1.01 Contractor shall complete all Work as specified or indicated in the Contract Documents. The Work is generally described as follows: Paving improvements of all internal streets of Lull Subdivision. Proposed reconstruction of existing streets and along with curb and gutter to be installed for Tagle St., Rodriguez Blvd, Salinas St., N Flores St., Delgado St., Perales St., Trevino St., Villanueva St., Rivera St. and Tanguma St. THE PROJECT 2.01 The Project, of which the Work under the Contract Documents is a part, is generally described as follows: Bid No. 2021-24 Lull Street Improvements ENGINEER 3.01 The Owner has retained Melden and Hunt, Inc (“Engineer”) to act as Owner's representative, assume all duties and responsibilities of Engineer, and have the rights and authority assigned to Engineer in the Contract. 3.02 The part of the Project that pertains to the Work has been designed by Melden and Hunt, Inc. and Ruben James De Jesus P.E., R.P.L.S. has been assigned a Project Engineer CONTRACT TIMES 4.01 Time is of the Essence A. All time limits for Milestones, if any, Substantial Completion, and completion and readiness for final payment as stated in the Contract Documents are of the essence of the Contract. 4.02 Contract Times: Dates A The Work will be substantially complete on or before June 10, 2022, and completed and ready for final payment in accordance with Paragraph 15.06 of the General Conditions on or before July 25, 2022. 00520- 1 tar cm Edinburg a LULL STREET IMPROVEMENTS. CITY OF EDINBURG AGREEMENT 4.03 Milestones A. Parts of the Work must be substantially completed on or before the following Milestone(s): 1. Milestone 1 Substantial Completion / June 10, 2022 2. Milestone 2 Final Completion / July 25, 2022 4.04 Liquidated Damages A. Contractor and Owner recognize that time is of the essence as stated in Paragraph 4.01 above and that Owner will suffer financial and other losses if the Work is not completed and Milestones not achieved within the Contract Times, as duly modified. The parties also recognize the delays, expense, and difficulties involved in proving, in a legal proceeding, the actual loss suffered by Owner if the Work is not completed on time. Accordingly, instead of requiring any such proof, Owner and Contractor agree that as liquidated damages for delay (but not as a penalty): as Substantial Completion: Contractor shall pay Owner based on fees below for each day that expires after the time (as duly adjusted pursuant to the Contract) specified above for Substantial Completion, until the Work is substantially complete. For Contract of Amount Cost Per Day $5,000.00 To $25,000.00 $100.00 $25,000.01 To $100,000.00 $200.00 $100,000.01 To $500,000.00 $250.00 $500,000.01 To $1,000,000.00 $300.00 $1,000,000.01 To $2,000,000.00 $400.00 $2,000,000.01 To $3,000,000.00 $500.00 $3,000,000.01 To $4,000,000.00 $600.00 $4,000,000.01 To $5,000,000.00 $700.00 $5,000,000.01 And | Over $800.00 2. Completion of Remaining Work: After Substantial Completion, if Contractor shall neglect, refuse, or fail to complete the remaining Work within the Contract Times (as duly adjusted pursuant to the Contract) for completion and readiness for final payment, Contractor shall pay Owner $600 for each day that expires after such time until the Work is completed and ready for final payment. 00520- 2 Edin! oo LULL STREET IMPROVEMENTS CITY OF EDINBURG AGREEMENT Milestones: Contractor shall pay Owner $600 for each day that expires after the time (as duly adjusted pursuant to the Contract) specified above for achievement of Milestone 1, until Milestone 1 is achieved, or until the time specified for Substantial Completion is reached, at which time the rate indicated in Paragraph 4.05.A.1 will apply, rather than the Milestone rate. Liquidated damages for failing to timely attain Milestones, Substantial Completion, and final completion are not additive, and will not be imposed concurrently. If Owner recovers liquidated damages for a delay in completion by Contractor, then such liquidated damages are Owner's sole and exclusive remedy for such delay, and Owner is precluded from recovering any other damages, whether actual, direct, excess, or consequential, for such delay, except for special damages (if any) specified in this Agreement. 4.06 Special Damages A. Contractor shall reimburse Owner (1) for any fines or penalties imposed on Owner as a direct result of the Contractor's failure to attain Substantial Completion according to the Contract Times, and (2) for the actual costs reasonably incurred by Owner for engineering, construction observation, inspection, and administrative services needed after the time specified in Paragraph 4.02 for Substantial Completion (as duly adjusted pursuant to the Contract), until the Work is substantially complete. After Contractor achieves Substantial Completion, if Contractor shall neglect, refuse, or fail to complete the remaining Work within the Contract Times, Contractor shall reimburse Owner for the actual costs reasonably incurred by Owner for engineering, construction observation, inspection, and administrative services needed after the time specified in Paragraph 4.02 for Work to be completed and ready for final payment (as duly adjusted pursuant to the Contract), until the Work is completed and ready for final payment. The special damages imposed in this paragraph are supplemental to any liquidated damages for delayed completion established in this Agreement. CONTRACT PRICE 5.01 Owner shall pay Contractor for completion of the Work in accordance with the Contract Documents, the amounts that follow, subject to adjustment under the Contract: A. For all Work other than Unit Price Work, a $721,798.00 for Alternate 1. All specific cash allowances are included in the above price in accordance with Paragraph 13.02 of the General Conditions. For all Unit Price Work, an amount equal to the sum of the extended prices (established for each separately identified item of Unit Price Work by multiplying the unit price times the actual quantity of that item). 00520- 3 Edinburg LULL STREET IMPROVEMENTS, ITY OF EDINBURG AGREEMENT Unit Price Work (Base Bid) Item Estimated Unit Extended Description Unit No. Quantity Price Price 18" RG-RCP storm sewer LF 1970 $ 46.00 $ 90,620.00 Type "CC" grated inlets EA 22 $ 2,950.00 $ 64,900.00 Headwall/downdrain EA 2 $ 4,600.00 $9,200.00 Inlet sock (erosion control) EA 22 $ 4.00 $ 88.00 Temporary construction EA a. entrance $ 2,000.00 $ 2,000.00 Relocate mail box EA 91 $ 130.00 $ 11,830.00 Relocate Stop sign EA 46 $185.00 $ 8,510.00 Remove culvert (haul off) LF 5,600 $ 5.00 $ 28,000.00 Remove existing asphalt paving sy 49,000 $1.50 $ 73,500.00 10 Concrete driveways SF 52,000 $4.50 $ 234,000.00 **Driveway Fill & compaction to be included in unit price Fire hydrant relocation 11 16 (complete in place) EA $ 6,200.00 $99,200.00 12 Excavation and grading SY 69,960 $2.50 $ 174,900.00 3% Lime treated 8 inch 13 sy 69,960 subgrade $3.50 $ 244,860.00 8" Compacted 1.5% lime $ 524,700.00 14 treated crushed caliche base sy 69,960 $7.50 with prime 2" Hot mix asphaltic concrete 15 w/tack coat sy 56,250 $ 12.00 $ 675,000.00 16 8" Curb & gutter LF 31,200 $10.00 $ 312,000.00 17 6' Valley gutter LF 30 $ 1,586.00 $ 47,580.00 Stop bar striping (24" 18 thermoplastic) EA 46 $ 200.00 $9,200.00 19 Street intersection signs EA 46 $ 536.00 $ 24,656.00 20 Center Lane striping LF 9,850 $1.50 $ 14,775.00 Alternate 1: 1, 4"X5' wide concrete sidewalks sy 170500 $3.50 $ 596,750.00 2 ADA ramps EA 77 $ 1,624.00 $125,048.00 Total of all Extended Prices for Unit Price Work (subject to final adjustment based on actual quantities) $3,371,317.00 00520- 4 tne cry oF Edinburg LULL STREET IMPROVEMENTS CITY OF EDINBURG AGREEMENT The extended prices for Unit Price Work set forth as of the Effective Date of the Contract are based on estimated quantities. As provided in Paragraph 13.03 of the General Conditions, estimated quantities are not guaranteed, and determinations of actual quantities and classifications are to be made by Engineer. Total of Lump Sum Amount and Unit Price Work (subject to final Unit Price adjustment) $3,371,317.00. D. For all Work, at the prices stated in Contractor's Bid, attached hereto as an exhibit. PAYMENT PROCEDURES 6.01 Submittal and Processing of Payments A. Contractor shall submit Applications for Payment in accordance with Article 15 of the General Conditions. Applications for Payment will be processed by Engineer as provided in the General Conditions. 6.02 Progress Payments; Retainage A. Owner shall make progress payments on the basis of Contractor’s Applications for Payment on or about the 25" day of each month during performance of the Work as provided in Paragraph 6.02.A.1 below, provided that such Applications for Payment have been submitted in a timely manner and otherwise meet the requirements of the Contract. All such payments will be measured by the Schedule of Values established as provided in the General Conditions (and in the case of Unit Price Work based on the number of units completed) or, in the event there is no Schedule of Values, as provided elsewhere in the Contract. 1 Prior to Substantial Completion, progress payments will be made in an amount equal to the percentage indicated below but, in each case, less the aggregate of payments previously made and less such amounts as Owner may withhold, including but not limited to liquidated damages, in accordance with the Contract. a 95 percent of the value of the Work completed (with the balance being retainage); and 95 percent of cost of materials and equipment not incorporated in the Work (with the balance being retainage). Upon Substantial Completion, Owner shall pay an amount sufficient to increase total payments to Contractor to 100 percent of the Work completed, less such amounts set off by Owner pursuant to Paragraph 15.01.E of the General Conditions, and less 200 percent of Engineer’s estimate of the value of Work to be completed or corrected as shown on the punch list of items to be completed or corrected prior to final payment. 6.03 Final Payment A. Upon final completion and acceptance of the Work, Owner shall pay the remainder of the Contract Price in accordance with Paragraph 15.06 of the General Conditions. 00520- 5 Edinburg oe LULL STREET IMPROVEMENTS CITY OF EDINBURG AGREEMENT 6.04 Consent of Surety A. Owner will not make final payment, or return or release retainage at Substantial Completion or any other time, unless Contractor submits written consent of the surety to such payment, return, or release. 6.05 Interest A. Allamounts not paid when due will bear interest at the rate of [0] percent per annum. CONTRACT DOCUMENTS 7.01 Contents A. The Contract Documents consist of all of the following: 1 This Agreement. 2 Bonds: a Performance bond (together with power of attorney). b. Payment bond (together with power of attorney). General Conditions. Supplementary Conditions. Specifications as listed in the table of contents of the project manual (copy of list attached). Drawings (not attached but incorporated by reference) consisting of 19 sheets with each sheet bearing the following general title: Lull Street Improvement Project. Addenda (numbers 1 to 3, inclusive). The following which may be delivered or issued on or after the Effective Date of the Contract and are not attached hereto: a Notice to Proceed. b. Work Change Directives. c. Change Orders. d Field Orders. e. Warranty Bond, if any. The Contract Documents listed in Paragraph 7.01.A are attached to this Agreement (except as expressly noted otherwise above). There are no Contract Documents other than those listed above in this Article 7. The Contract Documents may only be amended, modified, or supplemented as provided in the Contract. 00520- 6 we ciny0 Edinburg cr yj — ao LULL STREET IMPROVEMENTS CITY OF EDINBURG AGREEMENT REPRESENTATIONS, CERTIFICATIONS, AND STIPULATIONS 8.01 Contractor's Representations A In order to induce Owner to enter into this Contract, Contractor makes the following representations: 1 Contractor has examined and carefully studied the Contract Documents, including Addenda. Contractor has visited the Site, conducted a thorough visual examination of the Site and adjacent areas, and become familiar with the general, local, and Site conditions that may affect cost, progress, and performance of the Work. Contractor is familiar with all Laws and Regulations that may affect cost, progress, and performance of the Work. Contractor has carefully studied the reports of explorations and tests of subsurface conditions at or adjacent to the Site and the drawings of physical conditions relating to existing surface or subsurface structures at the Site that have been identified in the Supplementary Conditions, with respect to the Technical Data in such reports and drawings. Contractor has carefully studied the reports and drawings relating to Hazardous Environmental Conditions, if any, at or adjacent to the Site that have been identified in the Supplementary Conditions, with respect to Technical Data in such reports and drawings. Contractor has considered the information known to Contractor itself; information commonly known to contractors doing business in the locality of the Site; information and observations obtained from visits to the Site; the Contract Documents; and the Technical Data identified in the Supplementary Conditions or by definition, with respect to the effect of such information, observations, and Technical Data on (a) the cost, progress, and performance of the Work; (b) the means, methods, techniques, sequences, and procedures of construction to be employed by Contractor; and (c) Contractor's safety precautions and programs. Based on the information and observations referred to in the preceding paragraph, Contractor agrees that no further examinations, investigations, explorations, tests, studies, or data are necessary for the performance of the Work at the Contract Price, within the Contract Times, and in accordance with the other terms and conditions of the Contract. Contractor is aware of the general nature of work to be performed by Owner and others at the Site that relates to the Work as indicated in the Contract Documents. Contractor has given Engineer written notice of all conflicts, errors, ambiguities, or discrepancies that Contractor has discovered in the Contract Documents, and of discrepancies between Site conditions and the Contract Documents, and the written resolution thereof by Engineer is acceptable to Contractor. 00520- 7 rar ciry oF Edinburg we oo LULL STREET IMPROVEMENTS CITY OF EDINBURG AGREEMENT 10. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. 11, Contractor's entry into this Contract constitutes an incontrovertible representation by Contractor that without exception all prices in the Agreement are premised upon performing and furnishing the Work required by the Contract Documents. 8.02 Contractor’s Certifications A. Contractor certifies that it has not engaged in corrupt, fraudulent, collusive, or coercive practices in competing for or in executing the Contract. For the purposes of this Paragraph 8.02: 1 “corrupt practice” means the offering, giving, receiving, or soliciting of anything of value likely to influence the action of a public official in the bidding process or in the Contract execution; “fraudulent practice” means an intentional misrepresentation of facts made (a) to influence the bidding process or the execution of the Contract to the detriment of Owner, (b) to establish Bid or Contract prices at artificial non-competitive levels, or (c) to deprive Owner of the benefits of free and open competition; “collusive practice” means a scheme or arrangement between two or more Bidders, with or without the knowledge of Owner, a purpose of which is to establish Bid prices at artificial, non-competitive levels; and “coercive practice” means harming or threatening to harm, directly or indirectly, persons or their property to influence their participation in the bidding process or affect the execution of the Contract. 8.03 Standard General Conditions A. Owner stipulates that if the General Conditions that are made a part of this Contract are EJCDC® C-700, Standard General Conditions for the Construction Contract (2018), published by the Engineers Joint Contract Documents Committee, and if Owner is the party that has furnished said General Conditions, then Owner has plainly shown all modifications to the standard wording of such published document to the Contractor, through a process such as highlighting or “track changes” (redline/strikeout), or in the Supplementary Conditions. 00520- 8 rae ere or Edinburg oe LULL STREET IMPROVEMENTS CITY OF EDINBURG AGREEMENT IN WITNESS WHEREOF, Owner and Contractor have signed this Agreement. This Agreement will b, ffective on August 2021 (which is the Effective Date of the Contract). Owner: Contractor, City of Edinbur; Texas CordiaCpnstruction. (typed o name of organization) (typed gr pfinted n ‘of organization) By = ne 0 (individual's signature) Date: Date ¥lae [Joa Vv (date signed) (date signed) Na Ron Garza Name: Yara M. Corbitt, PE (typed or printed) (typed or printed) tle: City Manager Title CEO oe “Se oi a (typed or (typed or printed) (If Texas Cordia is a corporation, a partnership, or a joint cu a? venture, attach evidence of a rity to sign.) 3 > ys we ? | = a) Attest: sez (individual's signature) # ? Title coo (typed or printed) (typed or printed) me nanan dress for giving notices: Address for giving notices: City of Edinburg Texas Cordia Construction, LLC 415 W. University Drive 3149-A Center Pointe Drive Edinburg, TX 78539 Edinburg, Texas 78539 Designated Representative: Designated Representative Name: Mardoqueo Hinojosa, P.E.,CFM Name: YaraM. Corbitt, PE (typed or printed) (typed or printed) Title City Engineer Title CEO (typed or printed) (typed or printed) Address: Address: —__415 University W, Drive 3149-A Center Pointe Drive Edinburg, Texas 78539 Edinburg, TX 78539 Phone: 956-388-8204 Phone (956) 627-6181 Email:mhinojosa@cityofedinburg.com Email yara@texascordia.com (if City of Edinburg is a public body, attach evidence of authority to sign and resolution or other documents License No. authorizing execution of this Agreement.) (where applicable) State: APPROVED AS TO FORM OMAR OCHOA LAW FIRM, P.C. Omar Ochoa, City Attorney 00520- 9 Edin! oy Tae Y ee oe Bond No. 6131031489 LULL STREET IMPROVEMENT PROJECT #2021-24 CITY OF EDINBURG Performance Bond PERFORMANCE BOND Contractor Surety ‘Name: Texas Cordia Construction Name: United States Fire Insurance Company Address (principal place of business): Address (principal place of business): 3149-A Center Pointe Dr. 305 Madison Avenue Edinburg, TX 78539 Morristown, NJ 07962 Owner Contract Name: City of Edinburg Description (name and location): Mailing address (principal place of business): Lull Street Improvement #2021-24 Edinburg, Texas 415 W. University Drive Edinburg, TX 78539 Contract Price: 7 Milion Three Hundred Seventy-one Thousand Three Hundred Seventeen and 00/100ths ($3,371,317.00) Effective Date of August 18, 2021 Contract: Bond Bond_ Three Million Three Hundred Seventy-one Thousand Three Hundred Seventeen and 00/100ths ($3,371,317.00) Date of Bond: August 18, 2021 (Date of Bond cannot be earlier than Effective Date of Contract) Modifications to this Bond form: & None L See Paragraph 16 Surety and Contractor, intending to be legally bound hereby, subject to the terms set forth in this Performance Bond, do each cause this Performance Bond to be duly executed by an authorized officer, agent, or representative. Contractor as Principal Surety Texas Cordia Construction United States Fire Insurance Company ul! frmelyrame, of Coptractor) by: (Full. PD fe seth By: (Sienlihire) (Signature)(Attach Power bf-Attorney) Name Var M. Corbitt, 0E Name: Russ Frenzel (Printed or typed) (Printed or hyped) Title: Title: Attorney-in-Fact Attest . ate Attest: Coane ongres _| (Signature) \ Name lgaac Wereden Name: Chandler Nazzal (Printed or typed) (Printed or typed) Title: Coo Title: Witness Notes: (1) Provide supplemental execution by any additional parties, such as joint venturers. (2) Any singular reference to Contractor, Surety, Owner, or other party is considered plural where applicable. 00610 —1 of 4 Edinburg — — 3h x LULL STREET IMPROVEMENT PROJECT #2021-24 CITY OF EDINBURG Performance Bond The Contractor and Surety, jointly and severally, bind themselves, their heirs, executors, administrators, successors, and assigns to the Owner for the performance of the Construction Contract, which is incorporated herein by reference. 1 If the Contractor performs the Construction Contract, the Surety and the Contractor shall have no obligation under this Bond, except when applicable to participate in a conference as provided in Paragraph 3, If there is no Owner Default under the Construction Contract, the Surety’s obligation under this Bond will arise after: 2.1. The Owner first provides notice to the Contractor and the Surety that the Owner is considering declaring a Contractor Default. Such notice may indicate whether the Owner is requesting a conference among the Owner, Contractor, and Surety to discuss the Contractor’s performance. If the Owner does not request a conference, the Surety may, within five (5) business days after receipt of the Owner’s notice, request such a conference. If the Surety timely requests a conference, the Owner shall attend. Unless the Owner agrees otherwise, any conference requested under this Paragraph 3.1 will be held within ten (10) business days of the Surety’s receipt of the Owner’s notice. If the Owner, the Contractor, and the Surety agree, the Contractor shall be allowed a reasonable time to perform the Construction Contract, but such an agreement does not waive the Owner’s right, if any, subsequently to declare a Contractor Default; 2.2, The Owner declares a Contractor Default, terminates the Construction Contract and notifies the Surety; and 2.3 The Owner has agreed to pay the Balance of the Contract Price in accordance with the terms of the Construction Contract to the Surety or to a contractor selected to perform the Construction Contract. Failure on the part of the Owner to comply with the notice requirement in Paragraph 3.1 does not constitute a failure to comply with a condition precedent to the Surety’s obligations, or release the Surety from its obligations, except to the extent the Surety demonstrates actual prejudice. When the Owner has satisfied the conditions of Paragraph 3, the Surety shall promptly and at the Surety’s expense take one of the following actions: 4.1. Arrange for the Contractor, with the consent of the Owner, to perform and complete the Construction Contract; 4.2, Undertake to perform and complete the Construction Contract itself, through its agents or independent contractors; 43 Obtain bids or negotiated proposals from qualified contractors acceptable to the Owner for a contract for performance and completion of the Construction Contract, arrange for a contract to be prepared for execution by the Owner and a contractor selected with the Owners concurrence, to be secured with performance and payment bonds executed by a qualified surety equivalent to the bonds issued on the Construction Contract, and pay to the Owner the amount of damages as described in Paragraph 7 in excess of the Balance of the Contract Price incurred by the Owner as a result of the Contractor Default; or 00610 —2 of 4 ~o LULL STREET IMPROVEMENT PROJECT #2021-24 CITY OF EDINBURG Performance Bond 44. Waive its right to perform and complete, arrange for completion, or obtain a new contractor, and with reasonable promptness under the circumstances: 5.4.1 After investigation, determine the amount for which it may be liable to the Owner and, as soon as practicable after the amount is determined, make payment to the Owner; or 5.4.2 Deny liability in whole or in part and notify the Owner, citing the reasons for denial. If the Surety does not proceed as provided in Paragraph 5 with reasonable promptness, the Surety shall be deemed to be in default on this Bond seven days after receipt of an additional written notice from the Owner to the Surety demanding that the Surety perform its obligations under this Bond, and the Owner shall be entitled to enforce any remedy available to the Owner. If the Surety proceeds as provided in Paragraph 5.4, and the Owner refuses the payment, or the Surety has denied liability, in whole or in part, without further notice, the Owner shall be entitled to enforce any remedy available to the Owner. If the Surety elects to act under Paragraph 5.1, 5.2, or 5.3, then the responsibilities of the Surety to the Owner will not be greater than those of the Contractor under the Construction Contract, and the responsibilities of the Owner to the Surety will not be greater than those of the Owner under the Construction Contract. Subject to the commitment by the Owner to pay the Balance of the Contract Price, the Surety is obligated, without duplication for: 6.1. the responsibilities of the Contractor for correction of defective work and completion of the Construction Contract; 6.2. additional legal, design professional, and delay costs resulting from the Contractor’s Default, and resulting from the actions or failure to act of the Surety under Paragraph 5; and 6.3 liquidated damages, or if no liquidated damages are specified in the Construction Contract, actual damages caused by delayed performance or non-performance of the Contractor. If the Surety elects to act under Paragraph 5.1, 5.3, or 5.4, the Surety’s liability is limited to the amount of this Bond. The Surety shall not be liable to the Owner or others for obligations of the Contractor that are unrelated to the Construction Contract, and the Balance of the Contract Price will not be reduced or set off on account of any such unrelated obligations. No right of action will accrue on this Bond to any person or entity other than the Owner or its heirs, executors, administrators, successors, and assigns. The Surety hereby waives notice of any change, including changes of time, to the Construction Contract or to related subcontracts, purchase orders, and other obligations. 10. Any proceeding, legal or equitable, under this Bond must be instituted in any court of competent jurisdiction in the location in which the work or part of the work is located and must be instituted within two years after a declaration of Contractor Default or within two years after the Contractor ceased working or within two years after the Surety refuses or fails to perform its obligations under this Bond, whichever occurs first. If the provisions of this 00610 —3 of 4 oe oe LULL STREET IMPROVEMENT PROJECT #2021-24 CITY OF EDINBURG Performance Bond paragraph are void or prohibited by law, the minimum periods of limitations available to sureties as a defense in the jurisdiction of the suit will be applicable. 11 Notice to the Surety, the Owner, or the Contractor must be mailed or delivered to the address shown on the page on which their signature appears. 12. When this Bond has been furnished to comply with a statutory or other legal requirement in the location where the construction was to be performed, any provision in this Bond conflicting with said statutory or legal requirement will be deemed deleted therefrom and provisions conforming to such statutory or other legal requirement will be deemed incorporated herein. When so furnished, the intent is that this Bond will be construed as a statutory bond and not as a common law bond. 13 Definitions 13.1. Balance of the Contract Price—The total amount payable by the Owner to the Contractor under the Construction Contract after all proper adjustments have been made including allowance for the Contractor for any amounts received or to be received by the Owner in settlement of insurance or other claims for damages to which the Contractor is entitled, reduced by all valid and proper payments made to or on behalf of the Contractor under the Construction Contract. 13.2. Construction Contract—The agreement between the Owner and Contractor identified on the cover page, including all Contract Documents and changes made to the agreement and the Contract Documents. 13.3. Contractor Default—Failure of the Contractor, which has not been remedied or waived, to perform or otherwise to comply with a material term of the Construction Contract. 13.4, Owner Default—Failure of the Owner, which has not been remedied or waived, to pay the Contractor as required under the Construction Contract or to perform and complete or comply with the other material terms of the Construction Contract. 13.5, Contract Documents—All the documents that comprise the agreement between the Owner and Contractor. 14. If this Bond is issued for an agreement between a contractor and subcontractor, the term Contractor in this Bond will be deemed to be Subcontractor and the term Owner will be deemed to be Contractor. 15. Modifications to this Bond are as follows: [None] 00610 — 4 of 4 ~ a _ Bond No. 6131031489 LULL STREET IMPROVEMENT PROJECT #2021-24 CITY OF EDINBURG Payment Bond PAYMENT BOND Contractor Surety Name Texas Cordia Construction Name: United States Fire Insurance Company Address (principal place of business) Address (principal place of business) 3149-A Center Pointe Dr. 305 Madison Avenue Edinburg, TX 78539 Morristown, NJ 07962 Owner Contract Name City of Edinburg Description (name and location) Mailing address (principal place of business) Lull Street Improvement Project #2021-24 Edinburg, Texas 415 W. University Drive Edinburg, TX 78539 Contract Price: Three Million Three Hundred Seventy-one Thousand Three Hundred Seventeen and 00/100ths ($3,371,317.00) Effective Date of August 18, 2021 Contract; Bond Bond Three Million Three Hundred Seventy-one Thousand Three Hundred Seventeen and 00/100ths ($3,371,317.00) Date of Bond: August 18, 2021 (Date of Bond cannot be earlier than Effective Date of Contract) Modifications to this Bond form (None O See Paragraph 18 Surety and Contractor, intending to be legally bound hereby, subject to the terms set forth in this Payment Bond, do each cause this Payment Bond to be duly executed by an authorized officer, agent, or representative Contractor as Principal Surety ‘Texas Cordia Construction United Btaies Fire Insurance Company illffornfa] namelgy ntractor) By ature) ‘(Sienature) (Auch Powebof Ahiorney) Name: Ven iPginted or oped) bi Name Russ Frenzel (Printed or typed) Title: €Q Title Attorney-in-Fact Attest: (Signature) Attest: (Signature) AL | Name: [Saaz Here dia Name: Chandler Nazzal (Printed or typed) (Printed or typed) Title 00 Title: Witness Notes: (1) Provide supplemental execution by any additional parties, such as joint venturers. (2) Any singular reference to Contractor, Surety, Owner, or other party is considered plural where applicable. 00620 - 1 of 4 Edinburg - oe oe __ — & Ly we Ye is LULL STREET IMPROVEMENT PROJECT #2021-24 CITY OF EDINBURG Payment Bond The Contractor and Surety, jointly and severally, bind themselves, their heirs, executors, administrators, successors, and assigns to the Owner to pay for labor, materials, and equipment furnished for use in the performance of the Construction Contract, which is incorporated herein by reference, subject to the following terms. If the Contractor promptly makes payment of all sums due to Claimants, and defends, indemnifies, and holds harmless the Owner from claims, demands, liens, or suits by any person or entity seeking payment for labor, materials, or equipment furnished for use in the performance of the Construction Contract, then the Surety and the Contractor shall have no obligation under this Bond. If there is no Owner Default under the Construction Contract, the Surety’s obligation to the Owner under this Bond will arise after the Owner has promptly notified the Contractor and the Surety (at the address described in Paragraph 13) of claims, demands, liens, or suits against the Owner or the Owner’s property by any person or entity seeking payment for labor, materials, or equipment furnished for use in the performance of the Construction Contract, and tendered defense of such claims, demands, liens, or suits to the Contractor and the Surety. When the Owner has satisfied the conditions in Paragraph 3, the Surety shall promptly and at the Surety’s expense