HomeMy WebLinkAbout112-03 RESOLUTION• 1
RESOLUTION NO; 112-03
A RESOLUTION TO APPROVE AN ENGINEERING CONTRACT
WITH RJN GROUP, INC. IN THE NOT TO EXCEED AMOUNT
OF $2,500,718.00 FOR ENGINEERING SERVICES RELATED TO
THE WEST PIPELINES AND PUMP STATIONS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby approves a lump sum contract in the not to exceed amount of Two
Million Five Hundred Thousand Seven Hundred Eighteen Dollars ($2,500,718.00)
attached as Exhibit A. This lump sum contract engages RJN Group, Inc. to
provide engineering services to include project design surveys, easement
documents preparation, odor control designs, project administration, value
engineering support, project coordination, preparation of construction contract
specifications and drawings, estimating probable construction costs, and
providing bidding and negotiation services for eight construction contracts (as
more particularly described in the contract) related to the West Pipelines and
Pump Stations.
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby authorizes Mayor Dan Coody to execute this contract (Exhibit A) to hire
RJN Group, Inc. for this project.
PASSED and APPROVED this the 15th day of July, 2003.
7 -ATTEST'
By: hatij .)
Sondra Smith, City Clerk
APPROVED:
By
DAN COODY, May
•
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AGREEMENT
For
PROFESSIONAL ENGINEERING SERVICES
Between
CITY OF FAYETTEVILLE, ARKANSAS
And
RJN GROUP, INC.
THIS AGREEMENT is made as of duly /5 , 2003, by and between City of Fayetteville,
Arkansas, acting by and through its Mayor (hereinafter called CITY OF FAYETTEVILLE) and RJN
GROUP, INC. with offices located in Fayetteville, Arkansas (hereinafter called RJN GROUP, INC.).
CITY OF FAYETTEVILLE from time to timc requires professional engineering services in connection
with the planning, design, permitting, construction, operation, maintenance, management, and financing
of the Fayetteville Wastewater System Improvement Project and in particular Westside Collection System
Improvements (The Project"). Therefore, CITY OF FAYETTEVILLE and RJN GROUP, INC. in
consideration of their mutual covenants agree as follows:
RJN GROUP, INC. shall serve as CITY OF FAYEFIEVILLE's professional engineering consultant in
those assignments to which this Agreement applies, and shall give consultation and advice to CITY OF
FAYETTEVILLE during the performance of RJN GROUP, INC.'s services. All services shall be
performed under the direction of a professional engineer registered in the State of Arkansas and qualified
in the particular field. If Construction Phase Services arc to be provided by RJN GROUP, INC. under
this Agreement, the construction shall be executed under the observation of a professional engineer
registered in the State of Arkansas in accordance with Arkansas Code Amended §22-9-101.
SECTION 1 - AUTHORIZATION OF SERVICES
1.1 Services on any assignment shall be undertaken only upon written Authorization of CITY OF
FAYETTEVILLE and agreement of RJN GROUP, INC.
1.2 Assignments may include services described hereafter as Basic Services or as Additional
Services of RJN GROUP, INC.
1.3 Changes, modifications or amendments in scope, price or fees to this contract
shall not be allowed without a formal contract amendment approved by the
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Mayor and the City Council in advance of the change in scope, costs, fees, or
delivery schedule.
SECTION 2 - BASIC SERVICES OF
2.1 General
2.1.1 Perform professional design services in connection with the Project as hereinafter stated,
which shall include normal civil, structural, mechanical, and electrical engineering services
and normal architectural design services incidental thereto.
2.1.1.1 The Scope of Services to be furnished by RJN GROUP, INC. during the Final Design
Phase is included in Section 2.2 hereafter and in Appendix A attached hereto and made
part of this Agreement.
2.1.1.2 The Scope of Services to be fumished by RJN GROUP, INC.during the Bidding Phase is
included in Section 2.3 hereafter and in Appendix B attached hereto and made part of this
Agreement.
2.1.1.3 The Scope of Services to be furnished by RJN GROUP, INC. during the Construction
Phase, if any, will be finalized and contained in an amendment to this Agreement after
Final Design is completed.
2.1.1.4 The Scope of Services to be furnished by RJN GROUP, INC. during the Post -
Construction Phase, if any, will be finalized and contained in an amendment to this
Agreement after Final Design is completed.
2.1.1.5 The preliminary Scope of Services to be furnished by RJN GROUP, INC. for Resident
Services During Construction, if any, will be finalized and contained in an amendment to
this Agreement after Final Design is completed.
2.1.2 CITY OF FAYETTEVILLE has retained the services of BURNS & McDONNELL
ENGINEERING COMPANY, INC., a Missouri Corporation specializing in consulting
engineering services, as the "Program Manager" for the Wastewater System Improvement
Project. The professional design services to which this Agreement applies are a part of the
Wastewater System Improvement Project. RJN GROUP, INC. shall coordinate their
activities and services primarily with Program Manager and all other parties that CITY OF
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FAYETTEVILLE may contract with for program management or professional design
services as a part of the Wastewater System Improvement Project RJN GROUP, INC. and
CITY OF FAYETTEVILLE agree that RJN GROUP, INC. has full responsibility for the
engineering design.
2.2 Final Design Phase
2.2.1 Prepare for incorporation in the Contract Documents detailed drawings to show the character
and scope of the Work to be performed by contractors on the Project (hereinafter called the
"Contract Drawings"), and Invitation to Bid, Instructions to Bidders, Bid Form, Agreement
and Bond forms, General Conditions, and Specifications (all of which, together with the
Contract Drawings, arc hereinafter called the "Bid Documents") for review and approval by
CITY OF FAYETTEVILLE, its legal counsel, and other advisors as appropriate, and assist
CITY OF FAYETTEVILLE in the preparation of other related documents.
2.2.1.1 Bid documents shall be based on Construction Specifications Institute (CSI) Master
Format and Section Format and shall incorporate CITY OF FAYETTEVILLE's standard
general conditions and forms. Bid documents shall include required forms for State
Revolving Loan Fund funding. Text documents shall be provided to CITY OF
FAYETTEVILLE in Microsoft Word version 2000 software. Contract drawings shall
be prepared using standard borders, sheet sizes, title blocks and CADD standards
provided by CITY OF FAYETTEVILLE. RJN GROUP, INC. may use their normal
software for the preparation of drawings but the final product shall be provided to CITY
OF FAYETTEVILLE in Autodesk AutoCAD version 2000.
2.2.1.2 Develop and include in Appendix A of this Agreement for approval by CITY OF
FAYETTEVILLE, a project design schedule in which RJN GROUP, INC. shall include,
in an acceptable level of detail, the steps and milestone dates to be undertaken by RJN•
GROUP, INC. in the completion of this final design. This Schedule shall include
reasonable allowances for review and approval times required by CITY OF
FAYETTEVILLE, performance of services by CITY OF FAYETTEVILLE's
consultants, and review and approval times required by public authorities having
jurisdiction over the Project. This schedule shall be equitably adjusted as the Project
progresses, allowing for changes in scope, character or size of the Project requested by
CITY OF FAYETTEVILLE, or for delays or other causes beyond RJN GROUP, INC.'s
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reasonable control. Nonconformance with this schedule by RJN GROUP, INC. and its
subconsultants may result in the assessment of damages payable by RJN GROUP, INC.
to the CITY OF FAYETTEV ILLE for costs and damages incurred. The maximum cost
liability of RJN GROUP, INC. shall be limited to the total gross amount payable to or
through the Consultant authorized under this agreement, including amendments thereto.
2.2.1.2.1 The progress design schedule shall consist of a bar chart schedule depicting the
duration of each sub -project and the discrete milestone activities which make up the
sub -projects, but at a minimum shall include contract drawings, contract
specifications, and design reviews as indicated in Section 2.2.10. Separate line items
and durations may be shown for costs that apply to the Project as a whole, including,
but not limited to, Project Management and Administration, Insurance, Value
Engineering, surveys, subcontracted work, and property acquisition and casement
documents. RJN GROUP, INC. shall assign to each schedule activity of the progress
design schedule a corresponding cost value that shall include a monthly allocation for
labor, expenses, overhead, and profit. The sum of all cost values assigned shall equal
the Lump Sum Amount shown in Section 6.1.1. of this Agreement.
2.2.1.3 When requested by the CITY OF FAYETI'EVILLE's Water and Wastewater Director,
prepare for and attend up to four City Council meetings to provide periodic updates on
the progress of the final design.
2.2.1.4 If the plans and specifications for the project require bids on alternates in addition to a
base bid, there shall be no more than three (3) alternates, and the alternates shall be
developed and described in accordance with Title 22, Article 9-203 of the Arkansas
Code.
2.2.1.5 To the extent practicable, evaluate the feasibility of sequencing and segmenting the Work
into stand alone multiple construction or procurement packages which may yield
immediate operating benefits to the CITY OF FAYETTEVILLE and give these first
priority for completion. The separate design or procurement packages to be completed
by RJN GROUP, INC. are listed below.
2.2.1.5.1 1. Old Wire Road to Gregg Avenue Lift Station (including Basin 5 Interceptor)
2.2.1.5.2 2. North Street Lift Station to Poplar Lift Station to Gregg Avenue
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2.2.1.5.3 3. Gregg Avenue Lift Station to Hamestring Lift Station
2.2.1.5.4 4. Porter Road Lift Station to Hamestring Lift Station
2.2.1.5.5 5. Hamestring Lift Station to Proposed WWTP
2.2.1.5.6 6. Hamestring Lift Station
2.2.1.5.7 7. Gregg Avenue Lift Station Upgrade
2.2.1.5.8 8. Lift Station 11 to Lift Station 12 to WWTP and Farmington Lift Station
(Optional)
2.2.2 Prepare technical criteria, written descriptions, design data, and applications necessary for
filing applications for permits from or approvals of the following applicable governmental
authorities having jurisdiction to review or approve the final design of the Project and assist
in securing approvals. Approval letters and permits shall be furnished to the Arkansas Soil
and Water Conservation Commission, including the written approvals from the Arkansas
Department of Health and the Arkansas Division of Environmental Quality. Actual Filing
and Permit Fees will be paid by the CITY OF FAYEfTEVILLE. Assist CITY OF
FAYEITEVILLE in consultations with appropriate authorities.
2.2.2.1 Arkansas Soil and Water Conservation Commission (ASWCC)
2.2.2.2 Arkansas Department of Health (AHD)
2.2.2.3 Arkansas Department of Environmental Quality (ADEM)
2.2.2.4 U.S. Army Corps of Engineers (COE)
2.2.2.5 Fayetteville Planning Commission
2.2.2.6 Washington County Court
2.2.2.7 City of Farmington
2.2.2.8 Arkansas State Highway and Transportation Department
2.2.2.9 Railroad Authorities
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2.2.3 Advise CITY OF FAYETTEVILLE of adjustments in excess of five percent of the cost
opinion for the Project caused by changes in scope, design requirements, or construction costs
and furnish a revised cost opinion for the Project based on the final Bid Documents.
2.2.4 Advise CITY OF FAYE 1 I hVILLE of final Opinion of Probable Project Costs, including,
but not limited to, construction, inspection, testing, startup, O&M Manuals, and one-year
performance evaluation.
2.2.5 Furnish CITY OF FAYETTEVILLE with 10 copies of the final Bid Documents.
2.2.6 Determine land and easement requirements and provide consultation and assistance on
property procurement as related to professional engineering services being performed.
2.2.7 Provide appropriate professional interpretations of data, geotechnical investigations, core
borings, probings and subsurface explorations, hydrographic surveys, laboratory tests, and
inspections of samples, materials and equipment obtained through subcontract services for
authorized Project services including property, boundary, easement, right-of-way,
topographic, and utility surveys; noting zoning and deed restrictions.
2.2.7.1 Fully disclose all subcontract agreements including the name and address of the
subconsultant, the scope of services to be provided and the value of the subcontract
agreement.
2.2.7.2 Incorporate into all subcontract agreements for planning and design engineering services
the applicable milestone dates from the Submittal Schedule contained in the
Memorandum of Agreement, as amended, between ASWCC and the CITY OF
FAYETTEVILLE and require all RJN GROUP, INC. subconsultants to be bound by the
Submittal Schedule. RJN GROUP, INC. will provide a preliminary and final project
performance work plan for submission to ASWCC.
2.2.8 Render monthly Work progress reports to CPI -Y OF FAYETTEVILLE and Program Manager
and confirm status of compliance with final design schedule.
2.2.9 Provide to the Program Manager in a format mutually acceptable to the Program Manager
and RJN GROUP, INC. such schedules, reports, opinions of probable costs, renderings,
project summaries, and other data as may be required, for posting by others on a project web
site to allow the public to monitor and review the activities, materials, and financial status of
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the project. Refresh the data supplied to the Program Manager no more frequently than
monthly.
2.2.10 Design shall be reviewed by CITY OF FAYETTEVILLE, or such parties as CITY OF
FAYETTEVILLE shall designate, at the applicable completion levels outlined below.
2.2.10.1 West Side Collection System Improvements — 30 percent and 90 percent.
2.2.10.2 East Side Collection System Improvements — 30 percent and 90 percent.
2.2.10.3 West Side WWTP:
• Plant Access Road and Improvements — 30 percent and 90 percent.
• Plant Effluent Line - 30 percent and 90 percent.
• West Side Wastewater Treatment Plant — 30 percent, 60 percent, and 90 percent.
2.2.10.4 Paul Noland Facility:
• Wet Weather Package — 30 percent and 90 percent.
• Hcadworks Package — 30 percent, 60 percent, and 90 percent.
• Solids I landling Package — 30 percent, 60 percent, and 90 percent.
2.2.1 I See Appendix A for additional services or clarification of services to be provided by RJN
GROUP, INC.
2.3 Bidding Phase
2.3.1 RJN GROUP, INC. will follow Arkansas Soil and Water Conservation Commission statutory
bidding protocol for State Revolving Loan Fund.
2.3.2 Arrange for bidding notices to be sent to contractors publishing services and direct mailing to
contractors of record. Notices shall comply with requirements of CITY OF
FAYETTEVILLE and Revolving Loan Fund (RLF) administered by the Arkansas Soil and
Water Conservation Commission, Construction Assistance Division, and the Arkansas
Development Financc Authority (ADFA). The legal notice to be placed in legal notices
section of a local newspaper(s) of countywide and statewide circulation and shall be
coordinated with CITY OF FAYETTEVILLE purchasing agent and an affidavit of
publication secured.
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2.3.3 Prepare addenda for drawings and Bid Documents as required and submit to Program
Manager in timely manner such that addenda can be issued by RJN GROUP, INC. in
accordance with Construction Contract General Conditions. All bidding protocols shall
conform to ASWCC statutory requirements with all addenda being approved by ASWCC
prior to issuance.
2.3.4 Secure updated state and federal wage rate decisions and incorporate into the Bid Documents.
Update wage rate decision by addendum if necessary.
2.3.5 Assist CPIY OF FAYETI-EVILLE by issuing and tracking Bid Documents, addenda and
communications during bidding and maintain list of plan holders. Print and distribute copies
of plans and specifications for all prospective bidders and plan rooms. Collect from
prospective bidders an appropriate non-refundable fee to offset cost of reproducing and
distributing Bidding Documents.
2.3.5.1 RJN GROUP, INC. shall attend a Pre -Bid Conference organized, convened, and
conducted by the Program Manager to explain the project requirements and receive
questions from prospective bidders. RJN GROUP, INC. shall consider the questions
received and issue necessary clarifications and changes to the Bid Documents through the
use of addenda. Make logistical arrangements for and conduct a site tour of the project
area
2.3.6 Assist CITY OF FAYETTEVILLE in obtaining and evaluating bids and preparing
construction contracts. RJN GROUP, INC. shall prepare and submit bid certification
documents to ASWCC for review.
2.3.7 Consult with and advise CITY OF FAYETTEV ILLE as to the acceptability of subcontractors
and other persons and organizations proposed by the prime construction contractor(s),
hereinafter called "Contractor(s)," for those portions of the work as to which such
acceptability is required by the Bid Documents.
2.3.8 Make recommendations regarding award of construction contracts.
2.3.9 Attend Water and Sewer Committee meeting and the ensuing City Council meeting to
recommend action by the respective bodies. Prepare and present a recommendation complete
with such supporting information as necessary for the bodies to make an informed decision
on the action recommended.
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2.3.10 Develop and include in Appendix B of this Agreement, a bidding services schedule in which
RJN GROUP, INC. shall include, in an acceptable level of detail, the steps and milestone
dates to be undertaken by RJN GROUP, INC. in the completion of the bidding services. The
bidding services schedule shall consist of a bar chart schedule depicting the duration of the
bidding period of each sub -project and the discrete milestone activities which make up the
sub -projects. Separate line items and durations may be shown for costs that apply to the
Project as a whole, including, but not limited to, Project Management and Administration,
and Insurance. RJN GROUP, INC. shall assign to each schedule activity of the bidding
services schedule a corresponding cost value which shall include a monthly allocation for
labor, expenses, overhead, and profit. The sum of all cost values assigned shall equal the
Lump Sum Amount shown in Section 6.1.2. of this Agreement.
2.3.11 See Appendix B for additional services or clarification of services to be provided by RJN
GROUP, INC.
2.4 Construction Phase
2.4.1 The scope of Construction Phase Services, if any, will be negotiated following completion of
Design Phase Services.
2.5 Post -Construction Phase
2.5.1 The scope of Post -Construction Phase Services, if any, will be negotiated following
completion of Design Phase Services.
2.6 Resident Services During Construction
2.6.1 The scope of Resident Services During Construction, if any, will be negotiated following
completion of Design Phase Services.
SECTION 3 - ADDITIONAL SERVICES OF
3.1 General
If authorized in writing by the CITY OF FAYETTEV ILLE Mayor and the City Council and agreed to in
writing by RJN GROUP, INC., RJN GROUP, INC. shall furnish or obtain from others Additional
Services of the following types that are not considered normal or customary Basic Services. The scope of
Additional Services may include:
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3.1.1 Grant and Loan Assistance
Prepare applications and supporting documents for govemmental grants, loans, or advances.
3.1.2 Financial Consultation
Consult with CITY OF FAYETTEVILLE's fiscal agents and bond attorneys and provide such
engineering data as required for any bond prospectus or other financing requirements.
3.1.3 Administrative Assistance
Provide Contract and Project administration to the degree authorized by CTrY OF FAYETTEVILLE.
3.1.4 Furnishing renderings or models of the Project for CITY OF FAYETTEV ILLE's use.
3.1.5 Miscellaneous Studies
Investigations involving detailed consideration of operations, maintenance, and overhead expenses, and
the preparation of rate schedules, earnings, and expense statements; feasibility studies; appraisals and
valuations; detailed quantity surveys of material, equipment, and labor, and audits or inventories required
in connection with construction performed by CITY OF FAYETTEVILLE.
3.1.6 Preparing to serve or serving as a witness for CITY OF FAYETTEVILLE in any litigation or
other proceeding involving the Project.
3.1.7 Extra Services
3.1.7.1 Services not specifically defined heretofore that may be authorized by CITY OF
FAYETTEVILLE.
3.2 Contingent Additional Services
3.2.1 If services described under Contingent Additional Services in Paragraph 3.2 are required due
to circumstances beyond RJN GROUP, INC.'s control, RJN GROUP, INC. shall notify CITY
OF FAYETTEVILLE and request a formal contract amendment approved by the Mayor and
the City Council prior to commencing such services. If CITY OF FAYETTEVILLE deems
that such services described in 3.2 are not required, CITY OF FAYETTEVILLE shall give
prompt written notice to RJN GROUP, INC. If CITY OF FAYETTEVILLE indicates in
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writing that all or parts of such Contingent Additional Services arc not required,
RJN GROUP, INC. shall have no obligation to provide those services.
3.2.2 Making revisions in Drawings, Specifications, or other documents when such revisions are:
3.2.2.1 Required because of inconsistent approvals or instructions previously given by CITY OF
FAYETTEVILLE, including revisions made necessary by adjustments in CfI'Y OF
FAYETTEVILLE's program or Project Budget.
3.2.2.2 Required by the enactment or revision of codes, laws, or regulations subsequent to the
preparation of such documents.
SECTION 4 - RESPONSIBILITIES OF CITY OF FAYETTEVILLE
CITY OF FAYETTEVILLE shall, within a reasonable time, so as not to delay the services of RJN
GROUP, INC.
4.1 Provide full information as to CITY OF FAYETTEVILLE's requirements for the Project.
4.2 Assist RJN GROUP, INC. by placing at RJN GROUP, INC.'s disposal all available
information pertinent to the assignment including previous reports and any other data relative
thereto.
4.3 Guarantee access to and make all provisions for RJN GROUP, INC. to enter upon public and
private property as required for RJN GROUP, INC. to perform his services under this
Agreement.
4.4 Examine all studies, reports, sketches, cost opinions, Bid Documents, Drawings, proposals,
and other documents presented by RJN GROUP, INC. and render in writing decisions
pertaining thereto.
4.5 Provide such professional legal, accounting, financial, and insurance counseling services as
may be required for the Project.
4.6 Designate in writing a person to act as CITY OF FAYETTEVILLE's representative with
respect to the services to be performed under this Agreement. Such person shall have
complete authority to transmit instructions, receive information, interpret and define CITY
OF FAYETTEVILLE's policies and decisions with respect to materials, equipment, elements
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and systems to be used in the Project, and other matters pertinent to the services covered by
this Agreement.
4.7 Give prompt written notice to RUN GROUP, INC. whenever Cr'Y OF FAYETTEVILLE
observes or otherwise becomes aware of any defect in the Project.
4.8 Furnish approvals and permits from all governmental authorities having jurisdiction over the
Project and such approvals and consents from others as may be necessary for completion of
the Project. Pay directly to the governmental authorities the actual filing and permit fees.
4.9 Pay for placement of legal notices and advertisements in newspapers or other publications
required by program requirements of the Wastewater System Improvement Project.
4.10 Furnish, or direct RUN GROUP, INC. to provide, necessary Additional Services as stipulated
in Section 3 of this Agreement or other services as required
4.11 If CTTY OF FAYETTEVILLE's standard bidding requirements, Agreement forms and
General Conditions are to be used, CITY OF FAYETTEVILLE shall provide copies of such
documents for RJN GROUP, INC.'s use in coordinating the Contract Drawings and
Specifications.
4.12 CITY OF FAYETTEVILLE and/or its representative will review all documents and provide
written comments to RJN GROUP, INC. in a timely manner.
SECTION 5 - PERIOD OF SERVICE
5.1 This Agreement will become effective upon the first written notice by CITY OF
FAYETTEVILLE authorizing services hereunder.
5.2 The provisions of this Agreement have been agreed to in anticipation of the orderly progress
of the Project through completion of the services stated in the Agreement. RJN GROUP,
INC. will proceed with providing the authorized services immediately upon receipt of written
authorization from CITY OF FAYETTEVILLE. Said authorization shall include the scope of
the services authorized and the time in which the services are to be completed.
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SECTION 6 - PAYMENTS TO
6.1 Compensation
6.1.1 Final Design Phase Services
For the Scope of Services during the Final Design Phase described herein, CITY OF FAYETTEVILLE
shall pay RJN GROUP, INC. the lump sum amount of Two Million, Three Hundred Eighty -Three
Thousand, Four llundred Sixty -Three United States Dollars (US 52,383,463.00).
6.1.1.1 Subject to the City Council approval, adjustment of the lump sum amount may be made
should RJN GROUP, INC. establish and Cfl'Y OF FAYETTEVILLE agree that there has
been or is to be a significant change in scope, complexity or character of the services to
be performed; or if CITY OF FAYETTEVILLE decides to shorten the duration of work
from the time period specified in the Agreement for completion of work and such
modification warrants such adjustment. Changes, modifications or amendments in scope,
price or fees to this Contract shall not be allowed without formal contract amendment
approved by the Mayor and the City Council in advance of the change in scope, cost,
fees, or delivery schedule.
6.1.1.2 Monthly statements for each calendar month shall be submitted to CITY OF
FAYETTEVILLE or such parties as CITY OF FAYETTEVILLE may designate for
Design services consistent with RJN GROUP, INC.'s normal billing schedule. Once
established, the billing schedule shall be maintained throughout the duration of the
Project. Applications for payment shall be made in accordance with a format to be
developed by RJN GROUP, INC. and approved by CITY OF FAYETTEVILLE.
Applications for payment shall be accompanied each month by the updated project design
schedule as the basis for determining the value earned as the work is accomplished. Final
payment for Design services shall be made upon CITY OF FAYETTEVILLE's approval
and acceptance with the satisfactory completion of the Design phase for the Project.
6.1.2 Bidding Phase Services
For the Scope of Services during the Bidding Phase described herein, CITY OF FAYETTEVILLE shall
pay RJN GROUP, INC. the lump sum amount of One Hundred Seventeen Thousand, Two Hundred Fifty -
Five United States Dollars (US$ 1 17 255 00).
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6.1.2.1 Subject to prior City Council approval, adjustment of the lump sum amount may be made
should RJN GROUP, INC. establish and CITY OF FAYETTEVILLE agree that there has
been or is to be a significant change in scope, complexity or character of the services to
be performed; or if CITY OF FAYETTEVILLE decides to shorten the duration of work
from the time period specified in the Agreement for completion of work and such
modification warrants such adjustment.
6.1.2.2 Monthly statements for each calendar month shall be submitted to CITY OF
FAYETTEVILLE or such parties as CITY OF FAYETTEVILLE may designate for
Bidding Phase services consistent with RJN GROUP, INC.'s normal billing schedule.
Once established, the billing schedule shall be maintained throughout the duration of the
Project. Applications for payment shall be made in accordance with a format to be
developed by RJN GROUP, INC. and approved by CITY OF FAYETTEVILLE.
Applications for payment shall be accompanied each month by the updated bidding
services schedule as the basis for determining the value earned as the work is
accomplished. Final payment for Bidding Phase services shall be made upon CITY OF
FAYETTEVILLE's approval and acceptance with the satisfactory completion of the
Bidding Phase for the Project.
6.1.3 Construction Phase Services
This section is reserved for future details concerning this phase, if any. This Agreement shall be amended
to include payment conditions following the completion of Design Phase Services.
6.1.4 Post -Construction Phase Services
This section is reserved for future details concerning this phase, if any. This Agiecment shall be amended
to include payment conditions following the completion of Design Phase Services.
6.1.5 Resident Services During Construction
This section is reserved for future details conceming this phase, if any. This Agreement shall be amended
to include payment conditions following the completion of Design Phase Services.
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6.1.6 Additional Services
For authorized Additional engineering services under Section 3, "Additional Services", compensation to
RJN GROUP, INC. shall be negotiated at the time Additional services are authorized.
6.2 Statements
Statements and updated progress schedule for each calendar month will be submitted in electronic format
simultaneously to CITY OF FAYETTEVILLE and Program Manager, followed by signed original
document to CITY OF FAYETTEVILLE. Statements will be based on RJN GROUP, INC.'s estimated
percent of services completed at the end of the preceding month, and Justified by the updated progress
schedule. Program Manager shall review the statement and forward them to CITY OF FAYETTEVILLE
with his recommendations.
6.3 Payments
All statements are payable upon receipt and due within thirty (30) days. If a portion of RJN GROUP,
INC.'s statement is disputed by CITY OF FAYETTEVILLE, the undisputed portion shall be paid by
CITY OF FAYETTEVILLE by the due date. CITY OF FAYETTEVILLE shall advise RJN GROUP,
INC. in writing of the basis for any disputed portion of any statement. CITY OF FAYETTEVILLE will
make reasonable effort to pay invoices within 30 days of date the invoice is approved, however, payment
within 30 days is not guaranteed.
6.4 Final Payment
Upon satisfactory completion of the work performed under this Agreement, as a condition before final
payment under this Agreement, or as a termination settlement under this Agreement, RJN GROUP, INC.
shall execute and deliver to CITY OF FAYETTEVILLE a release of all claims against CITY OF
FAYETTEVILLE arising under or by virtue of this Agreement, except claims which are specifically
exempted by RJN GROUP, INC. to be set forth therein. Unless otherwise provided in this Agreement or
by State law or otherwise expressly agreed to by the parties to this Agreement, final payment under this
Agreement or settlement upon termination of this Agreement shall not constitute a waiver of CITY OF
FAYETTEVILLE's claims against RJN GROUP, INC. or his sureties under this Agreement or applicable
performance and payment bonds, if any.
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SECTION 7 - GENERAL CONSIDERATIONS
7.1
Insurance
7.1.1 During the course of performance of these services, RJN GROUP, INC. will maintain (in
United States Dollars) the following minimum insurance coverages:
Type of Coverage
Workers' Compensation
Employers' Liability
Commercial General Liability
Bodily Injury and
Property Damage
Automobile Liability:
Bodily Injury and
Property Damage
Professional Liability Insurance
Limits of Liability
Statutory
S500,000 Each Accident
S1,000,000 Combined Single Limit
$1,000,000 Combined Single Limit
$1,000,000 Each Claim
RJN GROUP, INC. will provide to CITY OF FAYETTEVILLE certificates as evidence of the specified
insurance within ten days of the date of this Agreement and upon each renewal of coverage.
7.1.2 Construction Contractors shall be required to provide (or CITY OF FAYETTEVILLE may
provide) Owner's Protective Liability Insurance naming CITY OF FAYETTEVILLE as a
Named Insured and BURNS & McDONNELL and RJN GROUP, INC. as additional
insureds, or, to endorse CPI' OF FAYETTEVILLE, BURNS & McDONNELL and RJN
GROUP, INC. as additional insureds on construction Contractor's liability insurance policies
covering claims for personal injuries and property damage. Construction Contractors shall be
required to provide certificates evidencing such insurance to CITY OF FAYETTEVILLE,
BURNS & McDONNELL and RJN GROUP, INC. All contract insurance carriers shall be
required to list CITY OF FAYETTEVILLE, Arkansas Soil and Water Conservation
Commission, and BURNS & McDONNELL as certificate holders, furnishing copies of the
contractor's insurance certificate to each party
7.1.3 CITY OF FAYETTEVILLE, BURNS & McDONNELL and RJN GROUP, INC. waive all
rights against each other and their officers, directors, agents, or employees for damage
covered by property insurance during and atter the completion of RJN GROUP, INC.'s
services. If the services result in a Construction Phase, a provision similar to this shall be
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incorporated into all Construction Contracts entered into by CITY OF FAYETTEVILLE, and
all construction Contractors shall be required to provide waivers of subrogation in favor of
CITY OF FAYETTEVILLE, BURNS & McDONNELL and RJN GROUP, INC. for damage
or liability covered by any construction Contractor's policy of insurance.
7.2 Professional Responsibility
7.2.1 RJN GROUP, INC. will exercise reasonable skill, care, and diligence in the performance of
RJN GROUP, INC.'s services and will carry out its responsibilities in accordance with
customarily accepted professional engineering practices. CITY OF FAYETTEVILLE will
promptly report to RJN GROUP, INC. any defects or suspected defects in
RJN GROUP, INC.'s services of which CITY OF FAYETTEVILLE becomes aware, so that
RJN GROUP, INC. can take measures to minimize the consequences of such a defect. CITY
OF FAYETTEVILLE and RJN GROUP, INC. further agree to impose a similar notification
requirement on all construction contractors in the Bid Documents and shall require all
subcontracts at any level to contain a like requirement. CITY OF FAYETTEVILLE, retains
all remedies to recover for its damages caused by any negligence of RJN GROUP, INC.
7.2.2 In addition, RJN GROUP, INC. will be responsible to CITY OF FAYETTEVILLE for
damages caused by its negligent conduct during its activities at the Project Site to the extent
covered by RJN GROUP, INC.'s Commercial General Liability and Automobile Liability
Insurance policies as specified in Paragraph 7.1.1.
7.3 Cost Opinions and Projections
Cost opinions and projections prepared by RJN GROUP, INC. relating to construction costs and
schedules, operation and maintenance costs, equipment characteristics and performance, and operating
results are based on RJN GROUP, INC.'s experience, qualifications, and judgment as a design
professional. Since RJN GROUP, INC. has no control over weather, cost and availability of labor
material and equipment, labor productivity, construction Contractors' procedures and methods,
unavoidable delays, construction Contractors' methods of determining prices, economic conditions,
competitive bidding or market conditions, and other factors affecting such cost opinions or projections,
RJN GROUP, INC. does not guarantee that actual rates, costs, performance, schedules, and related items
will not vary from cost opinions and projections prepared by RJN GROUP, INC.
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7.4 Changes
CITY OF FAYETTEVILLE shall have the right to make changes within the general scope of RJN
GROUP, INC.'s services, with an appropriate change in compensation and schedule only after
Fayetteville City Council approval of such proposed changes and, upon execution of a mutually
acceptable amendment or change order signed by the Mayor of the CITY OF FAYETTEVILLE and the
President or any Vice President of RJN GROUP, INC.
7.5 Termination
7.5.1 This Agreement may be terminated in whole or in part in writing by either party in the event
of substantial failure by the other party to fulfill its obligations under this Agreement through
no fault of the terminating party, provided that no termination may be effected unless the
other party is given:
7.5.1.1 Not less than ten (10) calendar days written notice (delivered by certified mail, return
receipt requested) of intent to terminate,
7.5.1.2 An opportunity for consultation with the terminating party prior to termination.
7.5.2 This Agreement may be terminated in whole or in part in writing by CITY OF
FAYETTEVILLE for its convenience, provided that RJN GROUP, INC. is given:
7.5.2.1 Not less than ten (10) calendar days written notice (delivered by certified mail, return
receipt requested) of intent to terminate,
7.5.2.2 An opportunity for consultation with the terminating party prior to termination.
7.5.3 If termination for default is effected by CITY OF FAYETTEVILLE, an equitable adjustment
in the price provided for in this Agreement shall be made, but
7.5.3.1 No amount shall be allowed for anticipated profit on unperformed services or other work,
7.5.3.2 Any payment due to RJN GROUP, INC. at the time of termination may be adjusted to
cover any additional costs to CITY OF FAYETTEVILLE because of
RJN GROUP, INC.'s default.
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7.5.4 If termination for default is effected by RJN GROUP, INC., or if termination for convenience
is effected by CITY OF FAYETTEVILLE, the equitable adjustment shall include a
reasonable profit for services or other work performed. The equitable adjustment for any
termination shall provide for payment to RJN GROUP, INC. for services rendered and
expenses incurred prior to the termination, in addition to termination settlement costs
reasonably incurred by RJN GROUP, INC. relating to commitments which had become firm
prior to the termination.
7.5.5 Upon receipt of a termination action under Paragraphs 7.5.1 or 7.5.2 above,
RJN GROUP, INC. shall:
7.5.5.1 Promptly discontinue all affected work (unless the notice directs otherwise),
7.5.5.2 Deliver or otherwise make available to CITY OF FAYETTEVILLE all data, drawings,
specifications, reports, estimates, summaries and such other information and materials as
may have been accumulated by RJN GROUP, INC. in performing this Agreement,
whether completed or in process.
7.5.6 Upon termination under Paragraphs 7.5.1 or 7.5.2 above CITY OF FAYETTEVILLE may
take over the work and may award another party an agreement to complete the work under
this Agreement.
7.5.7 If, after termination for failure of RJN GROUP, INC. to fulfill contractual obligations, it is
determined that RJN GROUP, INC. had not failed to fulfill contractual obligations, the
termination shall be deemed to have been for the convenience of CITY OF
FAYEITEV ILLS. In such event, adjustments of the agreement price shall be made as
provided in Paragraph 7.5.4 of this clause.
7.6 Delays
In the event the services of RJN GROUP, INC. are suspended or delayed by CITY OF FAYETTEVILLE
or by other events beyond RJN GROUP, INC.'s reasonable control, RJN GROUP, INC. shall be entitled
to additional compensation and time for reasonable costs incurred by RJN GROUP, INC. in temporarily
closing down or delaying the Project.
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