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HomeMy WebLinkAboutC-5071 - Agreement for Repair and Installation Services for Roof Repair Installation at City FacilityAGREEMENT FOR REPAIR AND INSTALLATION SERVICES WITH CRANK BROTHERS ROOFING COMPANY, INC. FOR ROOF REPAIR INSTALLATION AT CITY FACILITY THIS AGREEMENT FOR REPAIR SERVICES ( "Agreement ") is made and entered into as of this ;-3 day of January, 2012 ( "Commencement Date ") by and between the CITY OF NEWPORT BEACH, a California Municipal Corporation and charter city ( "City"), and CRANK BROTHERS ROOFING COMPANY, INC., a California corporation ( "Contractor'), whose principal place of business is 10015 Muirlands Blvd, Suite E, Irvine, CA 92618 and is made with reference to the following: RECITALS A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. City requires roof repair and new roof installation services at a city owned facility, located at 829 Harbor Island Drive. C. City desires to engage Contractor to repair and replace roofing to two buildings located at 829 Harbor Island Drive ( "Project "). D. Contractor has examined the location of all proposed work, carefully reviewed and evaluated the specifications set forth by the City for the Project, and is familiar with all conditions relevant to the performance of services and has committed to perform all work required for the price specified in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM The term of this Agreement shall commence on the Commencement Date, and shall terminate on February 29, 2012, unless terminated earlier as set forth herein. 2. SCOPE OF WORK 2.1. City and Contractor acknowledge that the above Recitals are true and correct and are hereby incorporated by reference. Contractor shall perform all the work described in the Scope of Work attached hereto as Exhibit A and incorporated herein by this reference ( "Services' or "Work "). As a material inducement to the City entering into this Agreement, Contractor represents and warrants that Contractor is a provider of first class work and Contractor is experienced in performing the Work contemplated herein and, in light of such status and experience, Contractor covenants that it shall follow the highest professional standards in performing the Work required hereunder and that all materials will be of good quality. For purposes of this Agreement, the phrase "highest professional standards" shall mean those standards of practice recognized by one or more first -class firms performing similar work under similar circumstances. 2.2. Contractor shall perform everything required to be performed, and shall provide and furnish all the labor, materials, necessary tools, expendable equipment and all utility and transportation services necessary for the Project. 3. TIME OF PERFORMANCE 3.1. Time is of the essence in the performance of Services under this Agreement and Contractor shall perform the Services in accordance with the schedule included in Exhibit A. The failure by Contractor to strictly adhere to the schedule may result in termination of this Agreement by City. 3.2. Notwithstanding the foregoing, Contractor shall not be responsible for delays due to causes beyond Consultant's reasonable control. However, in the case of any such delay in the Services to be provided for the Project, each party hereby agrees to provide notice to the other party so that all delays can be addressed. 3.3. Contractor shall submit all requests for extensions of time for performance in writing to the Project Administrator not later than two (2) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Consultant's control. 3.4. For all time periods not specifically set forth herein, Consultant shall respond in the most expedient and appropriate manner under the circumstances, by telephone, fax, hand - delivery or mail. 4. COMPENSATION 4.1. City shall pay Contractor for the Services on a time and expense not -to- exceed basis, in accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. No rate changes shall be made during the term of this Agreement without the prior written approval of the City. Contractor's total compensation for Services performed in accordance with this Agreement, including all reimbursable items, shall not exceed Twenty Eight Thousand Five Hundred Ninety Four Dollars and 00 /100 ($28,594.00) without written amendment to the Agreement. 5. ADMINISTRATION This Agreement will be administered by the Municipal Operations Department. Operations Support Superintendent or his /her designee shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator or his /her authorized representative shall represent City in all matters pertaining to the Services to be rendered pursuant to this Agreement. Crank Brothers Roofing Company, Inc. Page 2 6. TYPE AND INSTALLATION OF MATERIALS /STANDARD OF CARE 6.1. Contractor shall use only the standard materials described in Exhibit A in performing Services under this Agreement. Any deviation from the materials described in Exhibit A shall not be installed unless approved in advance by the Project Administrator. 6.2. All of the Services shall be performed by Contractor or under Contractor's supervision. Contractor represents that it possesses the personnel required to perform the Services required by this Agreement, and that it will perform all Services in a manner commensurate with highest professional standards. All Services shall be performed by qualified and experienced personnel who are not employed by City, nor have any contractual relationship with City. 7. RESPONSIBILITY FOR DAMAGES OR INJURY 7.1. City and all officers, employees and representatives thereof shall not be responsible in any manner for any loss or damage to any of the materials or other things used or employed in performing the Project or for injury to or death of any person as a result of Contractor's performance of the Services required hereunder; or for damage to property from any cause arising from the performance of the Project by Contractor, or its subcontractors, or its workers, or anyone employed by either of them. 7.2. Contractor shall be responsible for any liability imposed by law and for injuries to or death of any person or damage to property resulting from defects, obstructions or from any cause arising from Contractor's Work on the Project, or the Work of any subcontractor or supplier selected by the Contractor. 7.3. To the fullest extent permitted by law, Contractor shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers, and employees (collectively, the "Indemnified Parties') from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims "), which may arise from or in any manner relate (directly or indirectly) to any breach of the terms and conditions of this Agreement, any Work performed or Services provided under this Agreement including, without limitation, defects in workmanship or materials or Contractor's presence or activities conducted on the Project (including the negligent and /or willful acts, errors and /or omissions of Contractor, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). 7.4. Notwithstanding the foregoing, nothing herein shall be construed to require Contractor to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims Crank Brothers Roofing Company, Inc. Page 3 and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Consultant. 7.5. Contractor shall perform all Project Work in a manner to minimize public inconvenience and possible hazard, to restore other work areas to their original condition and former usefulness as soon as possible, and to protect public and private property. Contractor shall be liable for any private or public property damaged during the performance of the Project Work. 7.6. To the extent authorized by law, as much of the money due Contractor under and by virtue of the Agreement as shall be considered necessary by City may be retained by it until disposition has been made of such suits or claims for damages as aforesaid. 7.7. The rights and obligations set forth in this Section shall survive the termination of this Agreement. 8. INDEPENDENT CONTRACTOR City has retained Contractor as an independent contractor and neither Contractor nor its employees are to be considered employees of the City. The manner and means of conducting the Work are under the control of Contractor, except to the extent they are limited by statute, rule or regulation and the express terms of this Agreement. No civil service status or other right of employment shall accrue to Contractor or its employees. Contractor shall have the responsibility for and control over the means of performing the Work, provided that Contractor is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Contractor as to the details of the performance or to exercise a measure of control over Contractor shall mean only that Contractor shall follow the desires of City with respect to the results of the Services. 9. COOPERATION Contractor agrees to work closely and cooperate fully with City's designated Project Administrator and any other agencies that may have jurisdiction or interest in the Work to be performed. City agrees to cooperate with the Contractor on the Project. 10. INSURANCE 10.1. Without limiting Contractor's indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. The cost of such insurance shall be included in Contractor's bid. 10.2. Coverage and Limit Requirements. 10.2.1. Workers' Compensation. Contractor shall maintain Workers' Compensation Insurance providing statutory benefits and employer's liability insurance Crank Brothers Roofing Company, Inc. Page 4 with limits of at least one million dollars ($1,000,000) each type for Contractor's employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Contractor shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor's employees. The insurer issuing the Workers' Compensation insurance shall amend its policy by endorsement to waive all rights of subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers. Contractor shall submit to City, along with the required certificate of insurance, a copy of such waiver of subrogation endorsement. 10.2.2. General Liability. Contractor shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence, two million dollars ($2,000,000) General Aggregate and two million dollars ($2,000,000) Products and Completed Operations Aggregate for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. Coverage shall be at least as broad as that provided by Insurance Services Office form CG 00 01. None of the policies required herein shall be in compliance with these requirements if they include any limiting endorsement that has not been first submitted to City and approved in writing. 10.2.3. Automobile Liability. Contractor shall maintain automobile insurance covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit for each accident. 10.2.4. Builders Risk. For Agreements or Contracts with Construction /Builders Risk property exposures, Contractor shall maintain Builders Risk insurance or an installation floater as directed by City, covering damages to the Work for "all risk" or special form causes of loss with limits equal to one hundred percent (100 %) of the completed value of contract, with coverage to continue until final acceptance of the Work by City. At the discretion of City, the requirement for such coverage may include additional protection for Earthquake and /or Flood. City shall be included as an insured on such policy, and Contractor shall provide the City with a copy of the policy. 10.3. Other Insurance Provisions or Requirements. 10.3.1. Evidence of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein; along with a waiver of subrogation endorsement for workers' compensation and an additional insured endorsement for general liability. Insurance certificates and endorsements must be approved by City's Risk Manager prior to commencement of performance or issuance of any permit. Current evidence of insurance shall be kept on file with City at all times during the term of this Agreement. All of the executed documents referenced in this Agreement must be returned within ten (10) working days after the date on the "Notification of Award," so that the City may review and approve all insurance and bond Crank Brothers Roofing Company, Inc. Page 5 documentation. City reserves the right to require complete, certified copies of all required insurance policies, at any time. 10.3.2. General liability insurance provisions. Primary and excess or umbrella liability policies are to contain, or be endorsed to contain, the following provisions: 10.3.2.1. City, its elected or appointed officers, agents, officials, employees, and volunteers are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of Contractor, including the insured's general supervision of Contractor; products and completed operations of Contractor; premises owned, occupied or used by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to City, its elected or appointed officers, officials, employees, agents or volunteers. Contractor shall submit to City a copy of the additional insured endorsement along with the required certificates of insurance. 10.3.2.2. Contractor's insurance coverage shall be primary insurance and /or primary source of recovery as respects City, its elected or appointed officers, agents, officials, employees and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Contractors operations or services provided to the City. Any insurance or self- insurance maintained by City, its officers, officials, employees and volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 10.3.2.3. Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 10.4. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. 10.5. Notice of Cancellation. Contractor agrees to oblige its insurance broker and insurers to provide to City with 30 days notice of cancellation (except for nonpayment for which 10 days notice is required) or nonrenewal of coverage for each required coverage except for builders risk insurance. The builder's risk policy will contain or be endorsed to contain a provision providing for 30 days written notice to City of cancellation or nonrenewal, except for nonpayment for which 10 days notice is required. 10.6. Self- Insured Retentions. Contractor agrees not to self- insure or to use any self- insured retentions on any portion of the insurance required herein and further agrees that it will not allow any indemnifying party to self- insure its obligations to City. If contractor's existing coverage includes a self- insured retention, the self- insured Crank Brothers Roofing Company, Inc. Page 6 retention must be declared to City. City may review options with the contractor, which may include reduction or elimination of the self- insured retention, substitution of other coverage, or other solutions. Contractor agrees to be responsible for payment of any deductibles on their policies. 10.7. Timely Notice of Claims. Contractor shall give City prompt and timely notice of any claim made or suit instituted arising out of or resulting from Contractor's performance under this agreement. 10.8. Waiver. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers, or shall specifically allow Contractor or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subcontractors. 10.9. Enforcement of Contract Provisions. Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non - compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. 10.10. Requirements not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. 10.11. City's Remedies. City shall have the right to order the Contractor to stop Work under this Agreement and /or withhold any payment(s) that become due to Contractor hereunder until Contractor demonstrates compliance with the requirements of this article. In the alternative, City may purchase the required coverage and charge Contractor the cost of the premiums or deduct the cost from Contractor's payments. 10.12. Coverage not Limited. All insurance coverage and limits provided by contractor and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this agreement or any other agreement relating to the city or its operations limits the application of such insurance coverage. 10.13. Coverage Renewal. Contractor will renew the coverage required here annually as long as Contractor continues to provide any Services under this or any other contract or agreement with the City. Contractor shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Contractor's insurance agent to this effect is acceptable. A certificate of insurance and /or additional insured endorsement as required in these Crank Brothers Roofing Company, Inc. Page 7 specifications applicable to the renewing or new coverage must be provided to City within five days of the expiration of the coverages. 11. PREVAILING WAGES Pursuant to the applicable provisions of the Labor Code of the State of California, not less than the general prevailing rate of per diem wages including legal holidays and overtime Work for each craft or type of workman needed to execute the Work contemplated under the Contract shall be paid to all workmen employed on the Work to be done according to the Contract by the Contractor and any subcontractor. In accordance with the California Labor Code (Sections 1770 et seq.), the Director of Industrial Relations has ascertained the general prevailing rate of per diem wages in the locality in which the Work is to be performed for each craft, classification, or type of workman or mechanic needed to execute the Contract. A copy of said determination is available by calling the prevailing wage hotline number (415) 703 -4774, and requesting one from the Department of Industrial Relations. The Contractor is required to obtain the wage determinations from the Department of Industrial Relations and post at the job site the prevailing rate or per diem wages. It shall be the obligation of the Contractor or any subcontractor under him /her to comply with all State of California labor laws, rules and regulations and the parties agree that the City shall not be liable for any violation thereof. 12. SUBCONTRACTING City and Contractor agree that subcontractors may be used to complete the Work outlined in the Scope of Work provided the Contractor obtains City approval prior to the subcontractor performing any work. Contractor shall be fully responsible to City for all acts and omissions of the subcontractors. Nothing in this Agreement shall create any contractual relationship between City and subcontractor nor shall it create any obligation on the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law. 13. WITHHOLDINGS City may withhold payment to Contractor of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Agreement. Contractor shall not discontinue Work as a result of such withholding. Contractor shall have an immediate right to appeal to the City Manager or his /her designee with respect to such disputed sums. Contractor shall be entitled to receive interest on any withheld sums at the rate of return that City earned on its investments during the time period, from the date of withholding of any amounts found to have been improperly withheld. 14. CONFLICTS OF INTEREST 14.1. The Contractor or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act "), which (1) requires such persons to disclose any financial interest that may foreseeably be materially affected by the Work Crank Brothers Roofing Company, Inc. Page 8 performed under this Agreement, and (2) prohibits such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. 14.2. If subject to the Act, Contractor shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for immediate termination of this Agreement by City. Contractor shall indemnify and hold harmless City for any and all claims for damages resulting from Contractor's violation of this Section. 15. NOTICES 15.1. All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, to City by Contractor and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first -class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Contractor to City shall be addressed to City at: Attn: Municipal Operations Department Operations Support Superintendent City of Newport Beach 3300 Newport Blvd. PO Box 1768 Newport Beach, CA 92658 Email: jauger @newportbeachca.gov Phone: 949- 718 -3477 Fax: 949 - 650 -0747 15.2. All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: Attn: Dan Stites 10015 Muirlands Blvd, Suite E Irvine, CA 92618 Email: Click here to enter text. Phone: (949) 548 -5569 Fax: (949) 305 -4653 16. NOTICE OF CLAIMS 16.1. Unless a shorter time is specified elsewhere in this Contract, before making its final request for payment under the Contract, Contractor shall submit to City, in writing, all claims for compensation under or arising out of this Contract. Contractor's acceptance of the final payment shall constitute a waiver of all claims for compensation under or arising out of this Contract except those previously made in writing and identified by Contractor in writing as unsettled at the time of its final request for payment. The Contractor and the City expressly agree that in addition to all claims filing requirements set forth in the Contract and Contract Documents, the Contractor shall be Crank Brothers Roofing Company, Inc. Page 9 required to file any claim the Contractor may have against the City in strict conformance with the Tort Claims Act (Govt. Code §§ 900 et seq.). 17. TERMINATION 17.1. In the event that either party fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) calendar days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, the non - defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. 17.2. Notwithstanding the above provisions, City shall have the right, at its sole discretion and without cause, of terminating this Agreement at any time by giving seven (7) calendar days prior written notice to Contractor. In the event of termination under this Section, City shall pay Contractor for Services satisfactorily performed and costs incurred up to the effective date of termination for which Contractor has not been previously paid. On the effective date of termination, Contractor shall deliver to City all materials purchased in performance of this Agreement. Contractor agrees that the roofing installed pursuant to this Agreement shall be covered by a seven year wear warranty as outlined in the Warranty Information, attached hereto as Exhibit C and incorporated in full by this reference. 19. STANDARD PROVISIONS 19.1. Compliance with all Laws. Contractor shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. 19.2. Waiver. A waiver by City of any term, covenant, or condition in the Contract shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition. 19.3. Integrated Contract. This Contract represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and Contracts of whatsoever kind or nature are merged herein. No verbal Contract or implied covenant shall be held to vary the provisions herein. 19.4. Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Contract and the Exhibits attached hereto, the terms of this Contract shall govern. Crank Brothers Roofing Company, Inc. Page 10 19.5. Amendments. This Contract may be modified or amended only by a written document executed by both Contractor and City and approved as to form by the City Attorney. 19.6. Effect of Contractor's Execution. Execution of this Contract by Contractor is a representation that Contractor has visited the Project Site, has become familiar with the local conditions under which the Work is to be performed, and has taken into consideration these factors in submitting its Project Proposal and Scope of Work. 19.7. Controlling Law and Venue. The laws of the State of California shall govern this Contract and all matters relating to it and any action brought relating to this Contract shall be adjudicated in a court of competent jurisdiction in the County of Orange. 19.8. Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. 19.9. Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 19.10. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 19.11. No Attorney's Fees. In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorney's fees. 19.12. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. [SIGNATURES ON NEXT PAGE] Crank Brothers Roofing Company, Inc. Page 11 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY OF NEWPORT BEACH, OFFICE OF THE CITY ATTORNEY A California municipal corporation Date: 1 /11 /IZ By: By: ' /// 14inn�*� Aaron C. arp L4k �fflti Mark Harmon City Attorney Municipal Operations Director ATTEST: Date: Leilani 1. Brown City Clerk e CONSULTANT: Crank Brothers Roofing Company, Inc., a California corporation Date: _/ / �2 D l Z Bye'' David Ludwi President Date: /// –9/—.2 0T By: Dan Stites Treasurer [END OF SIGNATURES] Attachments: Exhibit A - Scope of Work/ Schedule Exhibit B - Schedule of Billing Rates Exhibit C - Warranty Information document14.7.11 Crank Brothers Roofing Company, Inc. Page 12 EXHIBIT A Scope of Work Scope of Services Building #1 and Building #2 1. Remove existing wood shingles and composition roofing materials and haul away. 2. Install new one half inch OSB sheathing. 3. Replace any damaged wood, e.g. shiplap and fascia boards, including dry rot and termite infestation, in accordance with the attached Unforeseen Conditions and Hidden Damage Policy (B -4). 4. Prime and paint all exposed wood to match existing. 5. Install one layer of 30 pound felt paper. 6. Install new composition roofing material (Malarkey 30 year warranty) color to match existing. 7. Install matching hip and ridge trim. 8. Furnish and install all required jack, flashing, valleys, tile pans, vent pipes, and chimney saddles. Paint to match roofing materials. 9. Furnish and install baked enamel drip edge metal. To Flat Roof on Building #2 10.Tear off existing roofing and install one Self- adhering Flintlastic base sheet, one Self- Adhering Ply and one Self- Adhering Capsheet. A -1 I Page EXHIBIT B Schedule of Billing Rates Building #1 Re -roof with the above roofing application installing a 30 year Malarkey Composition Shingle. Subtotal $ 8,697.00 Building #2 Tear off two layers of roofing, install OSB, install one layer of 30 pound felt and a 30 year Malarkey Composition Shingle with new flashings and new edge metal. To Flat Roof: Tear off existing roofing and install one Self- adhering Flintlastic base sheet, one Self- Adhering Ply and one Self- Adhering Capsheet. Subtotal $ 16,897.00 Incidentals Not to exceed): $ 3,000.00 TOTAL $ 28,594.00 B-1 I Page Crank Brothers 'Roofing Company, Inc. Page to of tt CONTRACT AGREEMENT SCHEDULE of PREVAILING RATES Effective January 1, 2011 The following Schedule of Prevailing Rates is divided into two separate sections: Contractor's Cost and Contractor's Fee. The Contractor's Cost section represents Crank Roofing's total cost for 'Unit Rate' items, Time and Material' items, and Subcontracts, and is alt - Inclusive of employee wages, benefits, burdens, material, and overhead costs. Time and Material items are to be used for those items that are not listed under the Unit Rates classification. The Contractor's Fee section represents the mark up to be applied to all Contractor's Costs. Actual Billing Rates to the customer are calculated as Contractor's Cost plus Contractor's Fee. A. CONTRACTOR'S COST -1. Unit Rates .Item Cost •: Stucco Repair (textured, paint -ready; $200.00 Minimum) $35.00 /sq ft •} Stucco Repair (textured, color coat match; $300.00 Minimum) $45.00 /sq it ¢• Drywall Repair (textured, unprimed; $200.00 Minimum) $16.00 /sq it - - G Wood. Repair (basic, exposed wood primed) - $7.251board foot _ Wood repair rates are subject to the following - - adjustments based on 'difficulty' of Installation: o (adder work, heights greater than ten feet, or roof slopes greater than 4/12: 2.0 multiple - o Heights greater than 20 feet, scabbing, sistering, penetrations, or roof slopes greater than 6112: 3.0 multiple { Metal Flashing Installation (galvanized or bonderized) $1.751111width (Inches) - Calculated as $1.75 x equivalent width of flashing in inches, per foot of length. Equivalent width is actual width plus one additional inch per bend. For example, a 2 Inch x 3 inch flashing with one bend - would be (2 +3+1) or 6 times $1.75 equals $10.50 /foot. _ C• Roofing tile repair /replacement (most Gay and concrete tiles) $15.00 per piece including labor & material - B- 2IPage Crank Brotheirs Page tt of t1 Roofing Company, Inc. CONTRACT AGREEMENT SCHEDULE of PREVAILING RATES <• Power Washing ($300.00 Minimum) $0.75/sq ft Power washing rates are subject to the following _ adjustments based on 'difficulty of project: o Ladder work, greater than one story, ' or roof slopes greater than 4/12: 2.0 multiple c Heights greater than 20 feet, heavy build up, or roof slopes greater than 6/12: 3.0 multiple 4 Dust/moisture protection (plastic sheeting, $200.00 Minimum) $0.301sq ft of sheeting 4• Painting ($200.00 Minimum) $0.851sq f boat 2. Time and Material Costs Item Cost Labor Superintendent $96.00 /hr ' Foreman $84.00/hr Journeyman $71.00/hr . Helper $53.00/hr h Material Cost (incl. Tax) + 15 1h . 3. Subcontracts a Subcontracts Cost +15% B. CONTRACTOR'S FEE 10% of Contractor's Cost The above rates are effective on and after the date shown above, and are subject to periodic review and adjustment by Crank Roofing. All items shown as fixed rates or percentages of other costs are not subject to audit. B- 3 Page Crank Blrotheirs PROJECT/ (Roofing Company, Inc, Cu3TamER: 11 -1132 City of Newport Beach Page 9 of 11 C6NTRACT AGREEMENT UNEXPECTED CONDITIONS and HIDDEN DAMAGE POLICY i Occasionally,.during the construction process, we may encounter unexpected conditions that could not have reasonably been anticipated pdor to the commencement of construction. These conditions could Include but are not limited to irregularities in the existinirconstruction, dry rot, termite damage, settling or foundation movement, decaying siding, crumbling stucco, or internal obstacles such as plumbing or electrical wires. Occasionally; building . inspoctors will require changes to be made that were not anticipated In the project plan and scope of work. In such cases,, it may be necessary to correct these conditions before the project: can be completed. The original Agreement did not anticipate the time nor cost necessary to correct these unexpected conditions. In such an event, Crank Rooting's policy is as follows: I . If the :repairs or modifications are required to meet code or industry standards (including but not limited to building Inspector requirements; dry tot; and termite damage), and can be made by Crank Rooting, the extra work will be done without additional, authorization from the Customer, at an additional cost, on a "time and materials" basis. Time and materials roles areas set forth in the attached Schedule of Prevailing Rates.. 2. If repairs or modifications to correct these- unexpected: conditions other than .those set forth In Paragraph 1 above can be made by, Crank Roofing, Drank Roofing will advise the Customer, and upon the customer's approval the extra work will be done at an additional cost. on a Ime and materials" basis, or it the scope i can be cleady, defined, on a mutually agreed fixed price. Time and materials'rates are as set forth in the attached Schedule of Prevailing Rates; or 3. R Crank Roofing is unable to make the repairs or modifications, Crank. Roofing will advise the Customer, and upon the customer's approval will contract with the appropriate specialty service provider to have the work done. Crank Roofing will be reimbursed. by Customer in accordance with the attached Schedule of Prevailing Rates;.or ` .. 4. The customer may make the repairs or modifications.himself, or hire his am contractor at his expense; or S. If it proves unfeasible or too easily to make the•repairs or modifications, the Customer agrees to be 'responsible for the cost to put that portion of the project back to its original condition and to reimburse Crank Roofing for the Product (e.g., window or door) that was ordered for this location even though it cannot be --., - installed (since it will have been custom -built to the customer's specifications, and is therefore of no value to Crank Roofing). Under any condition, the project schedule shat be adjusted to allow for the agreed additional work. I have read and understood the above policy, and agree to Its terms. I � Customer's Signature - Date - -- - — ----- ---- __ - - B-4 I P age EXHIBIT C WARRANTY Crank Roofing Installation and Workmanship Warranty Period: 7 yrs Crank Roofing warrants that it will perform its services in accordance with the standards of care and diligence normally practiced by recognized contracting firms in performing services of a similar nature in existence at the time of performance of the services. Crank Roofing shall properly perform, at the written request of the Customer, all corrective services within the original scope necessary to conform to the foregoing guarantee at any time during the Warranty period specified on Page 10 of this Agreement, beginning on the date of Job Completion, (unless superseded by a supplemental written Crank Roofing Warranty). All costs incurred by Crank Roofing in performing such corrective services shall be reimbursed by Customer at cost, in accordance with the attached Schedule of Prevailing Rates. Customer will be charged a service fee of $50 for each call to the jobsite which will be credited to any repairs made at that time. All costs for warranty repair may be waived at the sole discretion of Crank Roofing. Vendor and manufacturer warranties will pass directly to the Customer and Crank Roofing's sole obligation with respect to such warranties shall be to provide support to the Customer in enforcing them. Crank Roofing shall be reimbursed by the Customer for such support at cost, in accordance with the attached Schedule of Prevailing Rates. This limited warranty does not apply or extend to any failure, defect or damage arising from or connected with, without limitation, neglect, misuse, application of paint, coatings, solvents or cleaners, chemical attack from other materials in the property, such as concrete efflorescence, owner failure to provide reasonable necessary maintenance to prevent an accumulation of surface dirt or debris, consequential, incidental or special damages of any kind whatsoever, including damage to the interior or exterior of any building or to any property contained in or near it, defects, failure or damages due to settlement, movement, earthquakes, wind, lightning, hail, fires and all Acts of God, accidental or intentional damage, vandalism and all other causes beyond the reasonable control of Crank Roofing. This is the sole warranty for Crank Roofing's services and Crank Roofing makes no other warranties, express or implied. Crank Roofing shall in no event be liable for consequential or incidental or special damages of any kind. NOTE: Crank Brothers Roofing Company does not provide any warranty for leak repairs. C-1 jPage