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Finance Committee - Agenda - 10/5/2016 - P34

By dnadmin on Mon, 11/07/2022 - 09:49
Document Date
Wed, 10/05/2016 - 00:00
Meeting Description
Finance Committee
Document Type
Agenda
Meeting Date
Wed, 10/05/2016 - 00:00
Page Number
34
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_a__100520…

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Project Resource Group,

sustainable building solutions

REFERENCES

Manchester-Boston Regional Airport
1 Airport Road, Suite 300
Manchester, NH

John Adams, Facilities Manager (603) 624-6539 (603) 628-6038(f)
City of Franklin

316 Central Street

Franklin NH 03235
Elizabeth Dragon, City Manager (603) 934-3900

Krystal Alpers, Dir Parks & Rec

(603) 934-7413()

NH Department of Resources & Economic Development
172 Pembroke Road, PO Box 1856

Concord NH 03302-1856
Tom Mansfield, Project Manager (603) 271-2606

(603) 271-2620(f)
Faucher Studio
4 Reed Rd

Pepperell, MA 01463
PamelaWorden & Charles Faucher (978) 433-9793

Town of Derry

14 Manning Street

Derry New Hampshire 03038

Michael Fowler, P.E., Dir of PW (603) 432-6144 (603) 432-6130(f)

Ron Robinson

City of Nashua
229 Main Street

Nashua, NH 03600
John Griffin, CFO (603) 589-3260 (603) 594-3450()

New Hampshire Housing Finance Authority
32 Constitution Drive

Bedford, NH
Shaun Malone, Sr. Construction Analyst (603) 310-9212

Sanborn Regional High School

17 Danville Rd

Kingston, NH 03848

Steven Riley, Facilities Director (603) 765-4562

PO Box 43 Francestown, NH 03043

Page Image
Finance Committee - Agenda - 10/5/2016 - P34

Finance Committee - Agenda - 10/5/2016 - P35

By dnadmin on Mon, 11/07/2022 - 09:49
Document Date
Wed, 10/05/2016 - 00:00
Meeting Description
Finance Committee
Document Type
Agenda
Meeting Date
Wed, 10/05/2016 - 00:00
Page Number
35
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_a__100520…

SOV

Project Resource Group, LLC E16-38 NASHUA LIBRARY WEST WING EST.xlsx
COST BREAKDOWN BY MAJOR DIVISIONS

ITEM BID ITEM

ENERAL CONDITIONS

CTIVE DEMOLITION

NT SEALANT

WINDOWS
STUD/GWB/INSULATION
PANEL CEILINGS
TILE
CARPETING
NTING

E/TV'S/FE CAB

ICAL
MITIGATION
STOREFRONT
MN COVERS

BATHROOM

AL W/ALTERNATES

Project Resource Group Confidential

8/31/16
12:27 PM

Page 1

Page Image
Finance Committee - Agenda - 10/5/2016 - P35

Finance Committee - Agenda - 10/5/2016 - P36

By dnadmin on Mon, 11/07/2022 - 09:49
Document Date
Wed, 10/05/2016 - 00:00
Meeting Description
Finance Committee
Document Type
Agenda
Meeting Date
Wed, 10/05/2016 - 00:00
Page Number
36
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_a__100520…

STANDARD FORM OF AGREEMENT
BETWEEN OWNER AND CONTRACTOR

This agreement is made:

BETWEEN the OWNER: City of Nashua, New Hampshire

229 Main Street
Nashua, NH 03060-2019

And the CONTRACTOR: Project Resource Group

PO Box 43 (237 Pleasant Pond Rd.)
Francestown, NH 03043

and its successors, transferees and assignees
(together “CONTRACTOR’”)

For the following Project: Nashua Library West Wing Expansion

ARTICLE 1— THE CONTRACT DOCUMENTS

The CONTRACTOR shall complete the work described in the Contract Documents for this
project. The documents consist of:

1.

NOW AW

8.

This Agreement signed by the OWNER and CONTRACTOR, including the General
Terms and Conditions;

Scope of Work — IFB0475-083116 and addendums issued;

Project Manual

Drawings and Specifications provided in the bid documents;

Payment and Performance Bonds;

Insurance Certificate;

Written change orders for minor changes in the Work issued after execution of this
Agreement; and

Fully Executed OWNER Purchase Order

The Contract represents the entire and integrated agreement between the parties and supersedes
prior negotiations, proposals, representations or agreements, either written or oral. Any other
documents which are not listed in this Article are not part of the Contract.

Page 1 of 12

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Finance Committee - Agenda - 10/5/2016 - P36

Finance Committee - Agenda - 4/20/2022 - P109

By dnadmin on Sun, 11/06/2022 - 21:43
Document Date
Fri, 04/15/2022 - 11:50
Meeting Description
Finance Committee
Document Type
Agenda
Meeting Date
Wed, 04/20/2022 - 00:00
Page Number
109
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_a__042020…

and has concluded that the City of Nashua's resolution of each matter is satisfactory to Independent
Contractor. All future questions Independent Contractor may have concerning interpretation or
clarification of this contract shall be submitted in writing to the City of Nashua within 10 calendar
days of their arising. The writing shall state clearly and in full detail the basis for Independent
Contractor's question or position. The City of Nashua representative shall render a decision within
15 calendar days. The City of Nashua's decision on the matter is final. Any work affected by a
conflict, error, omission, or discrepancy which has been performed by Independent Contractor prior
to having received the City of Nashua's resolution shall be at Independent Contractor's risk and
expense. At all times, Independent Contractor shall carry on the work under this contract and
maintain and complete work in accordance with the requirements of the contract or determination
of the City of Nashua. Independent Contractor is responsible for requesting clarification or
interpretation and is solely liable for any cost or expense arising from its failure to do so.

TERMINATION OF CONTRACT

A, TERMINATION, ABANDONMENT, OR SUSPENSION AT WILL. The City of Nashua, in its sole
discretion, shall have the right to terminate, abandon, or suspend all or part of the project and
contract at will. If the City of Nashua chooses to terminate, abandon, or suspend all or part of the
project, it shall provide Independent Contractor 10 day’s written notice of its intent to do so.

If all or part of the project is suspended for more than 90 days, the suspension shall be treated as a
termination at will of all or part of the project and contract.

Upon receipt of notice of termination, abandonment, or suspension at will, Independent Contractor
shall:

Immediately discontinue work on the date and to the extent specified in the notice.
Place no further orders or subcontracts for materials, services, or facilities, other than as
may be necessary or required for completion of such portion of work under the contract
that is not terminated.

3. Immediately make every reasonable effort to obtain cancellation upon terms satisfactory
to the City of Nashua of all orders or subcontracts to the extent they relate to the
performance of work terminated, abandoned, or suspended under the notice, assign to
the City of Nashua any orders or subcontracts specified in the notice, and revoke
agreements specified in the notice.

4. Not resume work after the effective date of a notice of suspension until receipt of a

written notice from the City of Nashua to resume performance.

Ne

In the event of a termination, abandonment, or suspension at will, Independent Contractor shall
receive all amounts due and not previously paid to Independent Contractor for work satisfactorily
completed in accordance with the contract prior to the date of the notice and compensation for work
thereafter completed as specified in the notice. No amount shall be allowed or paid for anticipated
profit on unperformed services or other unperformed work.

B. TERMINATION FOR CAUSE This agreement may be terminated by the City of Nashua on 10
calendar day’s written notice to Independent Contractor in the event of a failure by Independent
Contractor to adhere to any or all the terms and conditions of the contract or for failure to
satisfactorily, in the sole opinion of the City of Nashua, to complete or make sufficient progress on
the work in a timely and professional manner. Independent Contractor shall be given an opportunity
for consultation with the City of Nashua prior to the effective date of the termination. Independent
Contractor may terminate the contract on 10 calendar days written notice if, through no fault of

GC-4

Page Image
Finance Committee - Agenda - 4/20/2022 - P109

Finance Committee - Agenda - 10/5/2016 - P37

By dnadmin on Mon, 11/07/2022 - 09:49
Document Date
Wed, 10/05/2016 - 00:00
Meeting Description
Finance Committee
Document Type
Agenda
Meeting Date
Wed, 10/05/2016 - 00:00
Page Number
37
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_a__100520…

In the event of a conflict between the terms of the Proposals and the terms of this Agreement, a
written change order and/or fully executed OWNER Purchase Order, the terms of this Agreement,
the written change order or the fully executed OWNER Purchase Order shall control over the
terms of the Proposals

ARTICLE 2 ~ PERIOD OF PERFORMANCE

CONTRACTOR shall perform and complete all work within the time periods set forth and may
only be altered by the parties by a written agreement to extend the period of performance or by
termination in accordance with the terms of the contract. CONTRACTOR shall begin
performance upon receipt of an Executed Contract and a valid Purchase Order issued from the
City of Nashua. Substantial completion of all work is required by Tuesday, February 28, 2017.

ARTICLE 3 —- CONTRACT SUM

Subject to additions and deductions by Change Order, the OWNER shall pay CONTRACTOR,
in accordance with the Contract | Documents, the Contract Sum of:

$ 412,357 plus $ 2,696 for alternate #3 “Upgrade column surrounds”, and $ 25,530 for alternate
#4 “New ADS Bath 04” for a total of $440,583. Alternate #1 “Slab moisture mitigation” will be
added as a change order in the amount not to exceed $28,330 if it is deemed necessary after
moisture testing is completed.

The Contract Sum shall include all items and services necessary for the proper execution and
completion of the Work.

ARTICLE 4— INSURANCE AND INDEMNIFICATION

CONTRACTOR shall carry and maintain in effect during the performance of services under this
contract:
> General liability insurance in the amount of $1,000,000 per occurrence; $2,000,000
ageregate;
» Motor Vehicle Liability: $1,000,000 Combined Single Limit;
*Coverage must include all owned, non-owned and hired vehicles.

> Workers’ Compensation Coverage in compliance with the State of NH Statutes,
$100,000/$500,000/$ 100,000.

CONTRACTOR and subcontractors at every tier will fully comply with NH RSA Chapter
281-A, “Workers’ Compensation”.

The parties agree that CONTRACTOR shall have the status of and shall perform all work under
this contract as an independent CONTRACTOR, maintaining control over all its consultants, sub
consultants, or subcontractor’s. The only contractual relationship created by this contract is
between the OWNER and CONTRACTOR, and nothing in this contract shall create any
contractual relationship between the OWNER and CONTRACTOR’s consultants, sub
consultants, or subcontractor’s. The parties also agree that CONTRACTOR is not an OWNER
employee and that there shall be no:

1. Withholding of income taxes by the OWNER:

Page 2 of 12

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Finance Committee - Agenda - 10/5/2016 - P37

Finance Committee - Agenda - 10/5/2016 - P38

By dnadmin on Mon, 11/07/2022 - 09:49
Document Date
Wed, 10/05/2016 - 00:00
Meeting Description
Finance Committee
Document Type
Agenda
Meeting Date
Wed, 10/05/2016 - 00:00
Page Number
38
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_a__100520…

2. Industrial insurance coverage provided by the OWNER;

Participation in group insurance plans which may be available to employees of the

OWNER;

4. Participation or contributions by either the independent CONTRACTOR or the OWNER
to the public employee’s retirement system;

5. Accumulation of vacation leave or sick leave provided by the OWNER;

6. Unemployment compensation coverage provided by the OWNER.

oe)

CONTRACTOR will provide the OWNER with certificates of insurance for coverage as listed
below and endorsements affecting coverage required by the contract within ten calendar days after
the OWNER issues the notice of award. The OWNER requires thirty days written notice of
cancellation or material change in coverage. The certificates and endorsements for each insurance
policy must be signed by a person authorized by the insurer and who is licensed by the State of
New Hampshire. General Liability and Auto Liability policies must name the OWNER as an
additional insured and reflect on the certificate of insurance. CONTRACTOR is responsible for
filing updated certificates of insurance with the OWNER's Risk Management Department during
the life of the contract.

>» All deductibles and self-insured retentions shall be fully disclosed in the certificate(s) of
insurance.

> If aggregate limits of less than $2,000,000 are imposed on bodily injury and property
damage, CONTRACTOR must maintain umbrella liability insurance of at least
$1,000,000. All aggregates must be fully disclosed on the required certificate of insurance.

> The specified insurance requirements do not relieve CONTRACTOR of its
responsibilities or limit the amount of its liability to the OWNER or other persons, and
CONTRACTOR is encouraged to purchase such additional insurance, as it deems
necessary.

> The insurance provided herein is primary, and no insurance held or owned by the OWNER
shall be called upon to contribute to a loss.

>» CONTRACTOR is responsible for and required to remedy all damage or loss to any
property, including property of the OWNER, caused in whole or part by CONTRACTOR
or anyone employed, directed, or supervised by CONTRACTOR.

Regardless of any coverage provided by any insurance, CONTRACTOR agrees to indemnify
and shall defend and hold harmless the OWNER, its agents, officials, employees and
authorized representatives and their employees from and against any and all suits, causes of
action, legal or administrative proceedings, arbitrations, claims, demands, damages, liabilities,
interest, attorney’s fees, costs and expenses of any kind or nature in any manner caused,
occasioned, or contributed to in whole or in part by reason of any negligent act, omission, or
fault or willful misconduct, whether active or passive, of CONTRACTOR or of anyone acting
under its direction or control or on its behalf in connection with or incidental to the
performance of this contract. CONTRACTOR’s indemnity, defense and hold harmless
obligations, or portions thereof, shall not apply to liability caused by the sole negligence or
willful misconduct of the party indemnified or held harmless.

Page 3 of 12

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Finance Committee - Agenda - 10/5/2016 - P38

Finance Committee - Agenda - 10/5/2016 - P39

By dnadmin on Mon, 11/07/2022 - 09:49
Document Date
Wed, 10/05/2016 - 00:00
Meeting Description
Finance Committee
Document Type
Agenda
Meeting Date
Wed, 10/05/2016 - 00:00
Page Number
39
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_a__100520…

General Terms and Conditions

ARTICLE 5 —- GENERAL PROVISIONS

1,

The Contract represents the entire and integrated agreement between the parties and
supersedes prior negotiations, representations or agreements, either written or oral. The
Contract may be amended or modified only by a written modification.

The term “Work” means the construction and services required by the Contract Documents,
and include all other labor, materials, equipment and services provided by the
CONTRACTOR to fulfill the CONTRACTOR’s obligations.

The intent of the Contract Documents is to include all items necessary for the proper
execution and completion of the Work by the CONTRACTOR. The Contract Documents
are complementary, and what is required by one shall be as binding as if required by all.

In the case of a discrepancy, calculated dimensions will govern over scaled dimensions,
Contract Drawings will govern over Standard Specifications, and Technical Specifications
will govern over both Contract Drawings and Standard Specifications. In the case of a
discrepancy between the Agreement and other Contract Documents, the more specific or
stringent obligation or requirement to the benefit of the OWNER shall take precedence.
The CONTRACTOR shall take no advantage of any apparent error or omission in the
Contract Drawings or Technical Specifications, and the Engineer will be permitted to make
such corrections and interpretations as may be deemed necessary to fulfill the intent of the
Contract Documents.

ARTICLE 6 - OWNER

1.

Except for permits and fees, which are the responsibility of the CONTRACTOR under the
Contract Documents, the OWNER shall obtain and pay for other necessary approvals,
easements, assessments and charges.

If the CONTRACTOR fails to correct Work that is not in accordance with the Contract
Documents, the OWNER may direct the CONTRACTOR in writing to stop the Work
until the correction is made.

If the CONTRACTOR defaults or neglects to carry out the Work in accordance with the
Contract Documents and fails within a seven day period after receipt of written notice from
the OWNER to correct such default or neglect with diligence and promptness, the
OWNER may, without prejudice to other remedies, correct such deficiencies. In such
case, a Change Order shall be issued deducting the cost of correction from payments due
the CONTRACTOR.

The OWNER reserves the right to perform construction or operations related to the project
with the OWNER’s own forces, and to award separate contracts in connection with other
portions of the project.

The CONTRACTOR shall coordinate and cooperate with separate CONTRACTORs
employed by the OWNER.

Costs caused by delays or by improperly timed activities or defective construction shall be
borne by the responsible party.

Page 4 of 12

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Finance Committee - Agenda - 10/5/2016 - P39

Finance Committee - Agenda - 10/5/2016 - P40

By dnadmin on Mon, 11/07/2022 - 09:49
Document Date
Wed, 10/05/2016 - 00:00
Meeting Description
Finance Committee
Document Type
Agenda
Meeting Date
Wed, 10/05/2016 - 00:00
Page Number
40
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_a__100520…

ARTICLE 7 — CONTRACTOR

1,

10.

11.

12.

Execution of the Contract by the CONTRACTOR is a representation that the
CONTRACTOR has visited the site, become familiar with local conditions under which
the Work is to be performed and correlated personal observations with requirements of the
Contract Documents.

The CONTRACTOR shall carefully study and compare the Contract Documents with
each other and with information furnished by the OWNER. Before commencing activities,
the CONTRACTOR shall: (1) take field measurements and verify field conditions; (2)
carefully compare this and other information known to the CONTRACTOR with the
Contract Documents; and (3) promptly report errors, inconsistencies or omissions
discovered to the OWNER.

Within ten (10) days of notification of award, and prior to commencement of work, the
CONTRACTOR shall obtain and forward to OWNER a Performance Bond and a
Payment Bond representing 100% of the contract work

The CONTRACTOR shall supervise and direct the Work, using the CONTRACTOR’s
best skill and attention. The CONTRACTOR shall be solely responsible for and have
control over construction means, methods, techniques, sequences and procedures, and for
coordinating all portions of the Work.

The CONTRACTOR, as soon as practicable after award of the Contract, shall furnish in
writing to the OWNER the names of subcontractors or suppliers for each portion of the
Work. The OWNER will promptly reply to the CONTRACTOR in writing if, after due
investigation, he has reasonable objection to the subcontractors or suppliers listed.

Unless otherwise provided in the Contract Documents, the CONTRACTOR shall provide
and pay for labor, materials, equipment, tools, utilities, transportation, and other facilities
and services necessary for proper execution and completion of the work.

The CONTRACTOR shall deliver, handle; store and install materials in accordance with
manufacturers’ instructions.

The CONTRACTOR warrants to the OWNER that (1) materials and equipment furnished
under the contract will be new and of good quality unless otherwise required or permitted
by the Contract Documents; (2) the Work will be free from defects not inherent in the
quality required or permitted; and (3) the Work will conform to the requirements of the
Contract Documents.

The CONTRACTOR shall pay sales, consumer, use and similar taxes that are legally
required when the Contract is executed.

The CONTRACTOR shall obtain and pay for the building permit and other permits and
governmental fees, licenses and inspections necessary for proper execution and completion
of the Work.

The CONTRACTOR shall comply with and give notices required by agencies having
jurisdiction over the Work. If the CONTRACTOR performs Work knowing it to be
contrary to laws, statutes, ordinances building codes, and rules and regulations without
notice to the OWNER, the CONTRACTOR shall assume full responsibility for such
Work and shall bear the attributable costs. The CONTRACTOR shall promptly notify the
OWNER in writing of any known inconsistencies in the Contract Documents with such
governmental laws, rules and regulations.

The CONTRACTOR shall promptly review, approve in writing and submit Shop
Drawings, Product Data, Samples and similar submittals required by the Contract
Documents. Shop Drawings, Product Data, Samples and similar submittals are not
Contract Documents.

Page 5 of 12

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Finance Committee - Agenda - 10/5/2016 - P40

Finance Committee - Agenda - 10/5/2016 - P41

By dnadmin on Mon, 11/07/2022 - 09:49
Document Date
Wed, 10/05/2016 - 00:00
Meeting Description
Finance Committee
Document Type
Agenda
Meeting Date
Wed, 10/05/2016 - 00:00
Page Number
41
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_a__100520…

13.

ay
ea

16.

The CONTRACTOR shall confine operations at the site to areas permitted by law,
ordinances, permits, the Contract Documents and the OWNER.

. The CONTRACTOR shall be responsible for cutting, fitting or patching required

completing the Work or to make its parts fit together properly.

. The CONTRACTOR shall keep the premises and surrounding area free from

accumulation of debris and trash related to the Work.

CONTRACTOR warrants and guarantees to OWNER, for 1(one) year, upon completion

of work, that all Work will be in accordance with the Contract Documents and will not be

defective. CONTRACTOR’s warranty and guarantee hereunder excludes defects or

damage caused by:

> Abuse, modification, or improper maintenance or operation by persons other than
CONTRACTOR, subcontractors, suppliers, or any other individual or entity for
whom CONTRACTOR is responsible; or

> Normal wear and tear under normal usage.

ARTICLE 8 — CHANGES IN THE WORK

1.

After execution of the Contract, changes in the Work may be accomplished by Change
Order or by order for a minor change in the Work. The OWNER, without invalidating the
Contract, may order changes in the Work within the general scope of the Contract
consisting of additions, deletions or other revisions, the Contract Sum and Contract Time
being adjusted accordingly.

A Change Order shall be a written order to the CONTRACTOR signed by the OWNER
to change the Work, Contract Sum or Contract Time.

Change Order requests must include material and equipment cost plus labor with a profit
margin of no more than 10%. Change Orders may require approval by the Board of
Public Works and the OWNER’s Finance Committee vote prior to proceeding.

The OWNER will have authority to order minor changes in the Work not involving
changes in the Contract Sum or the Contract Time and not inconsistent with the intent of
the Contract Documents. Such changes shall be written orders and shall be binding on the
OWNER and CONTRACTOR. The CONTRACTOR shall carry out such written orders
promptly.

If concealed or unknown physical conditions are encountered at the site that differ
materially from those indicated in the Contract Documents or from those conditions
ordinarily found to exist, the Contract Sum and Contract Time shall be subject to equitable
adjustment following authorization of the OWNER to the charges.

ARTICLE 9 — TIME

1.

Time limits stated in the Contract Documents are of the essence to the Contract.

If the CONTRACTOR is delayed at any time in progress of the Work by changes ordered
in the Work, or by labor disputes, fire, unusual delay in deliveries, unavoidable casualties
or other causes beyond the CONTRACTOR’s control, the Contract Time shall be
extended by Change Order for such reasonable time as may be determined.

ARTICLE 11 — PAYMENTS AND COMPLETION

1.

The Contract Sum stated in the Agreement, including authorized adjustments, is the total
amount payable by the OWNER to the CONTRACTOR for performance of the Work
under the Contract Documents.

Page 6 of 12

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Finance Committee - Agenda - 10/5/2016 - P41

Finance Committee - Agenda - 10/5/2016 - P42

By dnadmin on Mon, 11/07/2022 - 09:49
Document Date
Wed, 10/05/2016 - 00:00
Meeting Description
Finance Committee
Document Type
Agenda
Meeting Date
Wed, 10/05/2016 - 00:00
Page Number
42
Image URL
https://nashuameetingsstorage.blob.core.windows.net/nm-docs-pages/fin_a__100520…

1o9)

10.

11.

12.

Once every thirty (30) days, the CONTRACTOR shall submit an itemized Application
for Payment for operations completed in accordance with the values stated in the
Agreement. Such application shall be supported by such data substantiating the
CONTRACTOR’s right to payment as the OWNER may reasonably require.

Application for Payment performed under this agreement shall be submitted directly to:

City of Nashua
Accounts Payable

PO Box 2019

Nashua, NH 03061-2019

To facilitate the proper and timely payment of applications, the OWNER requires that
all applications contain a valid PURCHASE ORDER NUMBER.

The CONTRACTOR warrants that title to all Work covered by an Application for
Payment will pass to the OWNER no later than the time of payment. The
CONTRACTOR further warrants that upon submittal of an Application for Payment, all
Work for which Certificates for Payment have been previously issued and payments
received from the OWNER shall, to the best of the CONTRACTOR’s knowledge,
information and belief, be free and clear of liens, claims, security interests or other
encumbrances adverse to the OWNER’s interests.

OWNER shall make payments, for work satisfactorily completed and accurately invoiced,
on the basis of CONTRACTORs Application for Payment, within 30 days of approval by
the OWNER.

The CONTRACTOR shall promptly pay each subcontractor and supplier out of the
amount paid to the CONTRACTOR on account of such entities’ portion of the Work.

The OWNER shall have no responsibility for the payment of money to a subcontractor or
supplier.

An Application for Payment, a progress payment, or partial or entire use or occupancy of
the project by the OWNER shall not constitute acceptance of Work not in accordance with
the requirements of the Contract Documents. _

Substantial completion is the stage in the progress of the Work when the Work or
designated portion thereof is sufficiently complete in accordance with the Contract
Documents so the OWNER can occupy or utilize the Work for its intended use.

When the Work .or designated portion thereof is substantially complete, the
CONTRACTOR and OWNER shall establish responsibilities for completion and shall fix
the time within which the CONTRACTOR shall finish all items on the list accompanying
the Certificate. Warranties required by the Contract Documents shall commence on the
date of Substantial Completion of the Work or designated portion thereof unless otherwise
provided in the Certificate of Substantial Completion.

Upon receipt of a final Application for Payment, the OWNER will inspect the Work.
When he finds the Work acceptable and the Contract fully performed, the OWNER will
promptly issue a final Certificate for Payment.

Acceptance of final payment by the CONTRACTOR, a subcontractor or supplier shall
constitute a waiver of claims by that payee except those previously made in writing and
identified by that payee as unsettled at the time of final Application for Payment.

Page 7 of 12

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Finance Committee - Agenda - 10/5/2016 - P42

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