Construction Contract Template updated December 2023
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CONSTRUCTION WORK CONTRACT
This Contract for Professional Work (the Contract”) is by and between the County of
Genesee, a Michigan Municipal Corporation, whose principal place of business is
located at 1101 Beach Street, Flint, Michigan 48502 (the “County”), and Contractor
Name, a State Entity, whose principal place of business is located at Contractor
Address (the “Contractor”) (the County and the Contractor together, the “Parties”).
1. Agreement and Authority
Execution of this Agreement is authorized by Resolution #_________ issued by
the Genesee County Board of Commissioners.
2. Scope of Work
The Contractor agrees to perform the Work described on Exhibit A (the “Work”).
3. Work Schedule
3.1 Within 5 days of execution of this Contract, the County and the Contractor
will cooperate to establish a schedule for performance of the Work (the
“Work Schedule”) indicating the starting and completion dates for each
portion of the Work, including any interim contractually required
completion dates. The Work shall be scheduled in order to minimize
disruption to County operations.
3.2 The Work Schedule shall indicate that the Work must be substantially
complete within ____ days of execution of this Contract, with a date of
final completion within ____ days of execution.
3.3 The Parties agree that time is of the essence for performance of this
Contract, and any unjustified delay by the Contractor will result in
damages to the County.
4. Compensation
The Contractor shall be paid a lump sum of $_____________ for the
performance of the Work. The Contractor will be paid according to the Payment
Schedule described in Exhibit B. Upon completion of the Work, the Contractor
must provide to the County an invoice in a form acceptable to the County, along
with any necessary supporting documentation. The County will pay the
Contractor within sixty (60) days of the County’s acceptance of the invoice and
supporting documentation.
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5. Taxes
The County is a Michigan Municipal Corporation. The Contractor acknowledges
that the County is exempt from Federal Excise Tax and Michigan Sales and Use
Tax.
6. Contract Administrator
The contract administrator for this Contract is [insert Contract Admin] (the
“Contract Administrator”). The Contractor acknowledges that the Contract
Administrator is the primary County contact for notices and instructions related to
this Contract. The Contractor agrees to provide a copy of all notices related to
this Contract to the Contract Administrator.
7. Inspection and Acceptance
All goods and equipment provided with the Work are received subject to
inspection and testing. If goods are defective or fail to meet the specifications,
the County shall have the right to reject the goods or to require the Contractor to
correct the defects. The Contractor shall correct the defects at no cost to the
County or pay the County for expenses incurred by the County in correcting the
defects. Rejected goods will be held for forty-five days after delivery awaiting
instructions from the Contractor. After the forty-five day period, the County will
dispose of the goods and the County shall have no further liability to the
Contractor. The Contractor is responsible for the costs of handling, packing, and
transportation incurred in returning or disposing of defective or non-conforming
goods.
8. Condition of Worksite
The Contractor must keep the worksite clean and free from the accumulation of
waste materials and refuse caused by the performance of the Work. Upon
completion of the Work, Contractor shall remove all waste materials, refuse,
tools, equipment, machinery, and surplus materials, and shall leave the worksite
in “broom-clean” condition.
9. Prevailing Wage Addendum
The Contractor acknowledges that Section 3-302(a) of the Genesee County
Purchasing Regulations requires the Contractor and its subcontractors to pay
laborers and mechanics not less than the prevailing wage rates and fringe
benefits for corresponding classes of laborers and mechanics employed on
similar projects in the area. The Contractor agrees to comply with the provisions
of the Prevailing Wage Addendum attached as Exhibit C to this Contract.
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Services with funds supplied by the County under this Contract.
10. Warranties
The Contractor warrants that:
10.1 The Work will be performed in a good and workmanlike manner and in
accordance with generally acceptable practices in the construction
industry.
10.2 For a period of one (1) year following completion of the Work, the Work
and any goods provided with the Work shall conform to the specifications
and be free of defects in workmanship or materials.
10.3 The Contractor will comply with all federal, state, and local laws in the
performance of the Work.
10.4 All materials furnished under this Agreement must be new unless
otherwise specified in this Agreement.
10.5 The Contractor will comply with the requirements of any federal or state
grants used to fund or support this Contract. Copies of any applicable
grant agreements are available upon request
10.6 The Contractor will obtain and maintain all applicable licenses and permits
necessary to provide the Work for the entire term of this Contract.
Breach of any of these warranties is cause for termination of this Contract. The
Contractor agrees to indemnify, defend, and hold the County, its officials,
officers, agents, and employees harmless from any and all claims, damages, or
liability, including defense costs, arising out of the Contractor’s breach of these
warranties.
11. Insurance Requirements and Indemnification
11.1 Insurance Requirements
The Contractor shall at all times maintain in full force and effect for duration of the term
of this agreement the following insurance coverages. All coverage shall be with
insurance companies licensed and admitted to write business in the State of Michigan,
having an AM Best rating of at least A- and acceptable to Genesee County. In addition,
the County reserves the right to modify or waive at any time any applicable insurance
requirements based on the scope of services provided at the discretion of the County’s
Risk Manager or other authorized representative of the County.
COMMERCIAL GENERAL LIABILITY: Occurrence form, with limits of liability not
less than $1,000,000 per occurrence/$2,000,000 aggregate. Coverage shall include
bodily injury, personal injury, property damage (broad form), premises/operations,
blanket contractual liability, independent contractors’ coverage, products/completed
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operations, explosion, collapse and underground hazard, if applicable, and a per
project aggregate. Limits may be satisfied using primary and excess/umbrella liability
policies. The policy shall name Genesee County, including all employees, elected and
appointed officials and volunteers, all boards, commissions, and/or authorities, and
their board members, employees, and volunteers as additional insureds. Coverage
shall be primary and noncontributory with a waiver of subrogation in favor of Genesee
County.
AUTOMOBILE LIABILITY: Including Michigan No-Fault coverages, with limits of
liability not less than $1,000,000 per occurrence combined single limit for bodily injury
and property damage. Coverage shall include all owned, non-owned, and hired
vehicles. Limits may be satisfied using primary and excess/umbrella liability policies. -.
The policy shall name Genesee County, including all employees, elected and
appointed officials and volunteers, all boards, commissions, and/or authorities, and
their board members, employees, and volunteers as additional insureds.
WORKERS’ COMPENSATION AND EMPLOYER’S LIABILITY: as required by and
in accordance with all applicable statutes of the State of Michigan, including
Employers’ Liability Coverage.
Worker’s Compensation Required limits:
Coverage A Coverage will include statutory requirements.
Coverage B Employers Liability
$500,000 each Person
$500,000 each Person by Disease
$500,000 Policy Limit - Disease
PROFESSIONAL LIABILITY (Errors & Omissions): in an amount not less than
$1,000,000 per occurrence and $1,000,000 aggregate. If this policy is a claims made
form, the Contractor shall be required to keep said policy in force, or purchase “tail”
coverage for a minimum of three (3) years after the termination of this contract.
BUILDERS RISK COVERAGE: is to be purchased to cover subject property for all
risks of loss (including theft and sinkhole), subject to a waiver of coinsurance, and
covering off-site storage, transit and installation risks as indicated in the Installation
Floater and Motor Truck Cargo insurance described hereafter, if such coverages are not
separately provided. If flood and/or earthquake risks exist, flood and earthquake
insurance are to be purchased. If there is loss of income, extra expense and/or
expediting expense exposure, such coverage is to be purchased. If boiler and machinery
risks are involved, boiler and machinery insurance, including coverage for testing, is to
be purchased. The Builders Risk insurance is to be endorsed to cover the interests of all
parties, including the County and all vendors and subcontractors.
POLLUTION LIABILITY: The Contractor shall procure and maintain for the duration
of this contract Pollution Liability insurance in an amount not less than one million dollars
($1,000,000) aggregate. If this policy is on a claims made form, the Contractor shall be
required to keep said policy in force, or purchase “tail” coverage for a minimum of 3
years after the termination of this contract.
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OWNERS’ AND CONTRACTORS’ PROTECTIVE (OCP) LIABILITY INSURANCE:
The Contractor shall procure and maintain during the life of this contract, a separate
Owners’ and Contractors’ Protective Liability Policy with limits of liability not less than
$1,000,000 per occurrence and aggregate combines single limit for Personal Injury,
Bodily Injury, and Property Damage. Genesee County shall be “Named Insured” on said
coverage. Thirty (30) days’ Notice of Cancellation shall apply to this policy.
CONTRACT BOND REQUIREMENTS: The contractor shall furnish satisfactory
performance and/or lien bonds in every contract exceeding $50,000.00 (Fifty-Thousand
Dollars) for the construction, alteration, or repair of any public building or public work or
improvement of the County. The contractor shall furnish to the County at their own cost a
performance bond and a payment bond which shall become binding upon the award of
the contract to the contractor. Such bonds shall be issued by a surety admitted in the
state of Michigan and must be acceptable to the County. The penal sum of the bonds
shall each be one hundred percent (100%) of the original Contract Price. MCL 129.201
et seq.
Required Insurance Documentation
1. Certificate of Insurance
The vendor must provide a Certificate of Insurance evidencing the required insurance
set forth above. The Certificate of Insurance must reference the contract/bid number.
The Certificate Holder should be listed as follows:
Genesee County
Attn: Risk Management
1101 Beach Street, Flint, MI 48502
2. Endorsements
The vendor/contractor must also provide the following endorsements, including but not
limited to:
a. An additional insured endorsement (equivalent in coverage to ISO form CG
20 10 and CG 20 37) naming the "Genesee County, including all employees,
elected and appointed officials and volunteers, all boards, commissions, and/or
authorities, and their board members, employees, and volunteers as additional
insureds" as additional insureds under the general liability policy. No person
or department should be identified as the additional insured. Coverage
afforded shall be considered primary and any other insurance or self-
insurance, maintained by or available to the County shall be considered
secondary and/or excess.
b. An endorsement to each policy stating that such policy shall not be cancelled or
reduced in coverage except after thirty (30) days prior written notice to
County. Cancellation, material restriction, nonrenewal or lapse of any of the
required policies shall be grounds for immediate termination of the Agreement by
the County. If any of the required coverages expire during the term of the
contract, the vendor shall deliver renewal certificates, endorsements, and/or
policies to County at least ten (10) days prior to the expiration date.
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c. A primary & noncontributory endorsement (equivalent in coverage to ISO form
CG 20 01).
d. A waiver of subrogation endorsement (equivalent in coverage to ISO form CG 24
04).
In lieu of required endorsements, a copy of the policy sections, where coverage is
provided for additional insured and cancellation notice, may be acceptable. Copies
of all policies mentioned above shall be furnished, if so requested.
11.2 Indemnification
The Contractor agrees to indemnify, defend, and hold the County, its
officials, officers, agents, and employees harmless from any and all
claims, damages, or liability, including defense costs, arising out of the
Contractor’s performance of the Work or presence on the County’s
property or worksite.
12. Suspension of Work
12.1 Order to Suspend Performance
Upon written order of the Contract Administrator, the Contractor agrees to
immediately suspend performance of the Work. The Contractor shall not
be entitled to compensation for any Work performed during any period in
which the Contract Administrator has directed that the Work be
suspended.
12.2 Necessary Actions Before Suspension
If immediate suspension of the Work would cause harm, injury, or damage
to persons or property, the Contractor must immediately notify the
Contract Administrator of the nature of such harm, injury, or damage, and
obtain written authorization from the Contract Administrator to take such
necessary action as to prevent or minimize such harm, injury or damage.
Actions authorized by the Contract Administrator pursuant to this
paragraph are compensable.
13. Termination
13.1 Termination for Cause
If the Contractor is in breach of any provision of this Contract, and such
breach continues for fourteen (14) days after written notice is issued to the
Contractor by the County of the breach, the County may terminate this
Contract. Such termination for cause is effective upon receipt of the notice
of termination by the Contractor.
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In addition to any other remedies provided by law or this Contract, the
Contractor shall be responsible for all costs incurred by the County as a
result of the Contractor’s breach and termination, including any costs to
obtain substitute performance.
13.2 Immediate Termination
If the County, in its discretion, determines that the Contractor’s breach of
this Contract constitutes a threat to public health, safety, or welfare, the
County may terminate this Contract immediately upon notice to the
Contractor.
In addition to any other remedies provided by law or this Contract, the
Contractor shall be responsible for all costs incurred by the County as a
result of the Contractor’s breach and termination, including any costs to
obtain substitute performance.
13.3 Termination for Convenience
If the County determines that it is in the County’s best interests, the
County may terminate this Contract upon thirty (30) days’ written notice to
the Contractor.
The County shall pay for all work properly performed up to the effective
date of the notice of termination.
13.4 Termination for Lack of Funding
If this Contract is funded by public funds or a grant from a public or private
entity, and the funds are not appropriated or the grant is discontinued, the
County may terminate this Contract by written notice specifying the date of
termination.
The County shall pay for all work properly performed up to the effective
date of the notice of termination.
14. Nondiscrimination
The Contractor covenants that it will not discriminate against an employee or
applicant of employment with respect to hire, tenure, terms, conditions, or
privileges of employment, or a matter directly or indirectly related to employment,
because of race, color, religion, national origin, age, sex, gender identity, gender
expression, sexual orientation, height, weight, marital status or a disability that is
unrelated to the individual’s ability to perform the duties of a particular job or
position, and that it will require the same non-discrimination assurances from any
subcontractor who may be used to carry out duties described in this contract.
Contractor covenants that it will not discriminate against businesses that are
owned by women, minorities or persons with disabilities in providing Work
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covered by this Contract, and that it shall require the same assurances from
subcontractors. Breach of this covenant shall be regarded as a material breach
of this contract.
15. Freedom of Information Act
This Contract and all attachments, as well as all other information submitted by
the Contractor to the County, are subject to disclosure under the provisions of
MCL 15.231, et seq., known as the “Freedom of Information Act”.
16. Intellectual Property
Any intellectual property created by the Contractor in the performance of the
Services shall be considered a work made for hire, and any and all rights in
such intellectual property shall belong solely to the County. Upon the County’s
request, the Contractor agrees to execute any documents necessary to convey
ownership of such intellectual property to the County.
17. Audit Rights
17.1 Certification of Accurate Information
Contractor certifies that all information provided to the County by the
Contractor relating to the award or modification of this Contract, or any
payment or dispute related to this Contract, is true and correct. The
Contractor further certifies that its accounting system conforms to
generally accepted accounting principles.
17.2 Inspection
The Contractor agrees that the County may inspect the Contractor’s plant,
place of business, or worksite to ensure compliance with the terms of this
Contract. If this Contract is funded or supported with any state or federal
grant funds, the state or federal agencies responsible for administering the
applicable grants may examine the Contractor’s plant, place of business,
or worksite to ensure compliance with the terms of this Contract and the
terms of the applicable grant.
17.3 Audit
The Contractor agrees that the County may examine the Contractor’s
records to ensure compliance with the terms of this Contract. If this
Contract is funded or supported with any state or federal grant funds, the
state or federal agencies responsible for administering the applicable
grants may examine the Contractor’s records to ensure compliance with
the terms of this Contract and the terms of the applicable grant.
17.4 Records Retention
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The Contractor agrees to maintain any business records related to this
Contract or the Contractor’s performance under this Contract for a period
of at least three (3) years after final payment.
18. Identity Theft Prevention
18.1 In the event that the Contractor will obtain identifying information during
the performance of the Services, the Contractor must take reasonable
precautions to ensure that such identifying information is protected
from unauthorized disclosure and is used only for the purpose of performing the
Services.
18.2 For the purposes of this Paragraph, “identifying information” means any
name or number that may be used, alone or in conjunction with any other
information, to identify a specific person, including but not limited to
name, address, telephone number, social security number, date of birth,
driver’s license number, taxpayer identification number, or routing code.
19. Independent Contractor
The Contractor and its agents and employees are independent contractors and
are not the employees of the County.
20. General Provisions
20.1 Entire Contract
This Contract, consisting of the following documents and Exhibits,
embodies the entire Contract between the Parties.
20.1.1. The Contract This Professional Services Contract
20.1.2. Exhibit A Description of the Work
20.1.3. Exhibit B Payment Schedule
20.1.4. Exhibit C Prevailing Wage Addendum
There are no promises, terms, conditions, or obligations relating to the
Services other than those contained herein. In the event of a conflict
between this Contract and any Exhibit, the terms of this Contract shall
control.
20.2 No Assignment
The Contractor may not assign or subcontract this Contract without the
express written consent of the County.
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20.3 Modification
This Contract may be modified only in writing executed with the same
formalities as this Contract.
20.4 Binding Effect
The provisions of this Contract shall apply to and bind the heirs,
executors, administrators, and assigns all of the parties hereto.
20.5 Headings
The paragraph headings in this Contract are used only for ease of
reference, and do not limit, modify, construe, and or interpret any provision
of this Contract.
20.6 Governing Law and Venue
This Contract is entered into under the laws of the State of Michigan. Any
litigation between the Parties arising out of this Contract must be initiated
within two years of the cause of action accruing and must be brought in a
court of competent jurisdiction in Genesee County, Michigan.
20.7 Subpoena Power
The Contractor acknowledges and understands that the Chairperson of
the Genesee County Board of Commissioners, pursuant to MCL 46.3(5),
as amended, has the power to administer oaths, issue subpoenas, and
compel a person’s attendance in the same manner as a court of law. The
Contractor agrees to submit to this power with respect to this Contract.
21.8 Severability and Survival
In the event that any provision of this Contract is deemed by any court of
competent jurisdiction to be legally ineffective, such decision shall have no
effect on the remaining provisions of this Contract.
21.9 Interpretation
Each Party has had opportunity to have this Contract reviewed by legal
counsel and has had equal opportunity to contribute to its contents. In the
event of any dispute concerning the interpretation of this Contract, there
shall be no presumption in favor of any interpretation solely because the
form of this Contract was prepared by the County.
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21.10 Remedies
All remedies specified in this Contract are non-exclusive. The County
reserves the right to seek any and all remedies available under this
Contract and applicable law in the event that the Contractor fails to abide
by the terms of this Contract.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the Parties have caused this Contract to be executed
by their duly authorized agents.
CONTRACTOR NAME GENESEE COUNTY
By:_________________________ By:___________________________
Name of Contractor Signatory Ellen Ellenburg, Chairperson
Title of Contractor Signatory Board of Commissioners
Date:________________________ Date:_________________________
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EXHIBIT A
Description of the Work
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EXHIBIT B
Payment Schedule
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EXHIBIT C
Prevailing Wage Addendum
1. Contractor and each subcontractor shall pay their laborers and mechanics not less than the prevailing
wage rates and fringe benefits for corresponding classes of laborers and mechanics employed on
similar projects in the area as of the date of this Contract. For the purposes of this Addendum, a
contractor or subcontractor shall be in compliance if the contractor pays wages consistent with the
prevailing wage rates published by the United States Department of Labor as of the effective date of
this Contract, which can be found at https://sam.gov/content/wage-determinations.
2. The Contractor and each subcontractor shall keep and maintain a daily sign-in sheet for employees
present at the worksite. Such sign-in sheet shall record the time each employee arrived at the
worksite, and the time each employee left the worksite.
3. The Contractor and each subcontractor shall submit to the County certified payroll records on Form
WH-347, with the accompanying payroll certification, within seven (7) days of the end of each pay
period.
4. The Contractor shall not misclassify work assignments.
5. The Contractor shall ensure that any persons paid at apprentice rates are properly registered with the
US Office of Apprenticeship program.
6. If any person believes that the Contractor or a subcontractor has not paid wages in accordance with
the Effective Prevailing Wage Rates for the project, the person must submit a written complaint to the
Genesee County Purchasing Director. The written complaint shall state that the complaining party
agrees to abide by the provisions of this Addendum.
7. The Purchasing Director will provide a copy of the complaint to the Michigan Fair Contracting Center
(the “Auditor”). The Auditor shall conduct an audit of certified payroll and provide a written report to
the Purchasing Director when completed. The report shall document whether prevailing wages were
paid, and note any deficiencies. The Contractor and all subcontractors shall comply with any requests
for information or documentation from the Auditor during the compliance audit. The Auditor may
conduct onsite interviews of workers during a compliance audit.
8. If the Auditor determines that the Effective Prevailing Wage Rates were not properly paid, the
contractor or subcontractor responsible for the wage payments at issue shall remedy the deficiency.
The County may withhold payments to the general contractor until such deficiency is remedied.
9. If the Auditor determines that prevailing wages were not properly paid, the Contractor or the
subcontractor responsible for the prevailing wage payments at issue shall compensate the Auditor for
the compliance audit at the rates to be specified. The Owner may withhold payments otherwise due
under the Contract to enforce this requirement. If the Auditor determines that prevailing wages were
properly paid, the complaining party shall compensate the Auditor for the compliance audit at the
rates to be specified. The Auditor shall provide the party responsible for payment of the costs of the
compliance audit with a written invoice, and the responsible party shall pay all amounts due within
thirty (30) days of the date of the invoice. The Auditor shall provide a copy of the invoice to the
Purchasing Director.
10. The Contractor shall include this Addendum in each subcontract entered into on this project, and shall
furnish a copy of the Effective Prevailing Wage Rates to each subcontractor.