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HomeMy WebLinkAbout09-06 RESOLUTIONRESOLUTION NO. 09-06 A RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO GARNEY CONSTRUCTION, INC. IN THE AMOUNT OF $4,582,536.60 FOR CONSTRUCTION OF THE FORCE MAINS FROM HAMESTRING LIFT STATION TO THE WEST SIDE WWTP (WL -5); AND APPROVING A 4% CONTINGENCY OF $183,000.00. 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 awards a construction contract to Garney Construction, Inc. in the amount of $4,582,536 60 for construction of the force mains from Hamestring Lift Station to the West Side WWTP (WL -5). A copy of the contract marked Exhibit "A" is attached hereto, and made a part hereof Section 2. That the City Council of the City of Fayetteville, Arkansas hereby approves a 4% contingency of $183,000.00. PASSED and APPROVED this 3rd day of January, 2006. ATTEST. By: �„�mmip�n, , s, • SG \.: DOCUMENT 00500 - AGREEMENT BETWEEN OWNER AND CONTRACTOR Project Name: Wastewater System Improvement Project Contract Name: Hamestring Lift Station to Wastewater Treatment Plant Force Mains Contract No.: WL -5 RLF Project No.: CS -0500803-03 THIS AGREEMENT is dated as of the 3 rd day of Jan ua r y in the year 2006 by and between City of Fayetteville (hereinafter called Owner) and Garrey Companies Inc. (hereinafter called Contractor). ARTICLE 1 - WORK 1.01 Contractor shall complete all Work as specified or indicated in the Contract Documents. The Work under this Contract is generally described as follows: Construction of approximately 10,883 linear feet of 30 -inch diameter force main, 10,857 linear feet of 24 -inch diameter force main, 154 linear feet of 48 -inch dry bore and jack, 155 linear feet of 42 -inch dry bore and jack, fittings, joint restraints, and related work, in the western part of Fayetteville, Arkansas. 1.02 The Contract for which the Work under the Contract Documents may be the whole or only a part is generally described as follows: The City of Fayetteville, Arkansas is undertaking a project to redirect sewer flows from portions of the City in the Illinois River drainage basin to a new wastewater treatment plant on the west side of the City and upgrade sewers in the City which are in the White River drainage basin and upgrade the existing wastewater treatment plant on the east side of the City. The project is known as the Wastewater System Itnprovement Project and includes, but may not be limited to, four areas of improvements as follows: 00500 -Agreement Form -WL -5 00500— 1 DOCUMENT 00500 — AGREEMENT (continued) 1. Westside Wastewater Treatment Plant.' 2. Westside Collection System Improvements. 3. Paul R. Noland Wastewater Treatment Plant Improvements. 4. Eastside Collection System Improvements. ARTICLE 2 - ENGINEER r 2.01 The Project has been designed by RJN Group, Inc., who is hereinafter called Engineer. The Engineer assumes all duties and responsibilities, and has the rights and authority assigned to Engineer in the Contract Documents in connection with completion of the Work in accordance with the Contract Documents. ARTICLE 3 - CONTRACT TIME 3.01 TIME OF THE ESSENCE: 9 All time limits for milestones, if any, Substantial Completion, and completion and readiness for final payment as stated in the Contract Documents are of the essence of the Contract. 3.02 DATES FOR SUBSTANTIAL COMPLETION AND FINAL PAYMENT: A. The Work will be Substantially Completed within 280 calendar days after the date when the Contract Times commence to run as provided in the GENERAL CONDITIONS. Substantial completion shall mean all line work and manholes installed and tested according to the specifications outlined in Division 02, all surface restoration completed including but not limited to disturbed wetlands, fences, pavement, etc. The project shall be completed and ready for final payment in accordance with the GENERAL CONDITIONS within 310 consecutive calendar days after the date when the Contract Times commence to run. 00500-Apreemrnt Fnrm_wt -S 06500 — 7 DOCUMENT 00500 — AGREEMENT (continued) 3.03 LIQUIDATED DAMAGES A. Owner and Contractor recognize that time is of the essence of this Agreement and that Owner will suffer financial loss if the Work is not completed within the time specified above, plus any extensions thereof allowed in accordance with the GENERAL CONDITIONS. The parties also recognize the delays, expense, and difficulties involved in proving the actual loss suffered by Owner if the Work is not Substantially Completed on time. Accordingly, instead of requiring any such proof, Owner and Contractor agree that as liquidated damages for delay (but not as a penalty) Contractor shall pay Owner One Thousand Dollars ($1,000.00) for each calendar day that expires after the lime specified above in Paragraph 3.02 for Substantial Completion until the Work is Substantially Complete. After Substantial Completion, if Contractor shall neglect, refuse, or fail to complete the remaining Work within the time specified in Paragraph 3.02 for completion and readiness for final payment or any proper extension thereof granted by Owner, Contractor shall pay Owner One Thousand Dollars ($1,000.00) for each calendar day that expires after the time specified for completion and readiness for final payment. ARTICLE 4 - CONTRACT PRICE 4.01 The OWNER agree to pay, and the CONTRACTOR agrees to accept, as full and final compensation for all work done under this agreement, the amount based on the prices bid in the Proposal which is hereto attached, for the actual amount accomplished under each pay item, said payments to be made in lawful money of the United States at the time and in the manner set forth in the Specifications. 4.02 As provided in the General Conditions estimated quantities are not guaranteed, and measurements and determinations of actual quantities and classifications are to be made by ENGINEER as provided in the General Conditions. 00500 -Agreement Form -WL -5 00500-3 • DOCUMENT 00500 — AGREEMENT (continued) 4.03 Owner shall pay Contractor for completion of the Work in accordance with the Contract Documents an amount in current funds equal to the sum of the amounts determined pursuant to paragraphs below: For all Work, al the prices stated in Contractors Bid, attached hereto as an Exhibit. ARTICLE 5 - PAYMENT PROCEDURES 5.01 SUBMITTAL AND PROCESSING OF PAYMENTS: Contractor shall submit Applications for Payment in accordance with the GENERAL CONDITIONS. Applications for Payment will be processed by Owner as provided in the GENERAL CONDITIONS. 5.02 PROGRESS PAYMENTS, RETAINAGE: Owner shall make progress payments on account of the Contract Price on the basis of Contractor's Applications for Payment as recommended by Engineer, on or about the 201h day of each month during construction. All such payments will be measured by the schedule of values established in the GENERAL CONDITIONS (and in the case of Unit Price Work based on the number of units completed) or, in the event there is no schedule of values, as provided in the General Requirements. Prior to Substantial Completion, progress payments will be made in an amount equal to the percentage indicated below, but, in each case, less the aggregate of payments previously made and less such amounts as Engineer shall determine, or Owner may withhold, in accordance with the GENERAL CONDITIONS. a. 90% of Work Completed (with the balance being retainage). If Work has been 50% completed as determined by Engineer, and if the character and progress of the Work have been satisfactory to Owner and Engineer, Owner on recommendation of Engineer DOCUMENT 00500 - AGREEMENT (continued). may determine that as long as the character and progress of the Work subsequently remain satisfactory to them a 5 percent retainage will be withheld on the remaining progress payments prior lo Substantial Completion; and b. 100% of Equipment and Materials not incorporated in the Work but delivered, suitably stored, and accompanied by documentation satisfactory to Owner as provided in the GENERAL CONDITIONS. Upon Substantial Completion, Owner shall pay an amount sufficient to increase total payments to Contractor to 95% of the Contract Price (with the balance being retainage), less such amounts as Engineer shall determine, or Owner may withhold, in accordance with the GENERAL CONDITIONS. 5.03 FINAL PAYMENT: Upon final completion and acceptance of the Work in accordance with the GENERAL CONDITIONS, Owner shall pay the remainder of the Contract Price as recommended by Engineer and as provided in the GENERAL CONDITIONS. ARTICLE 6 - CONTRACTOR'S REPRESENTATIONS 6.01 In order to induce Owner to enter into this Agreement, Contractor makes the following representations: A. Contractor has examined and carefully studied the Contract Documents including the Addenda and other related data identified in the Bid Documents. B. Contractor has visited the Site and become familiar with and is satisfied as to the general, local, and Site conditions that may affect cost, progress, performance, and furnishing of the Work. DOCUMENT 00500 — AGREEMENT (continued) C. Contractor is familiar with and is satisfied as to all federal, state, and local Laws and Regulations that may affect cost, progress, perfomtance, and furnishing of the Work. Contractor has carefully studied all: (1) reports of explorations and tests of subsurface conditions at or contiguous to the Site and all drawings of physical conditions in or relating to existing surface or subsurface structures at or contiguous to the Site; and (2) reports and drawings of a Hazardous Environmental Condition, if any, at the Site. Contractor acknowledges that Owner and Engineer do not assume responsibility for the accuracy or completeness of information and data shown or indicated in the Contract Documents with respect to Underground Facilities at or contiguous to the Site. Contractor has obtained and carefully studied (or assumes responsibility of having done so) all such additional supplementary examinations, investigations, explorations, tests, studies, and data concerning conditions (surface, subsurface, and Underground Facilities) at or contiguous to the Site or otherwise which may affect cost, progress, performance, and furnishing of the Work or which relate to any aspect of the means, methods, techniques, sequences, and procedures of construction to be employed by Contractor and safety precautions and programs incident thereto. F. Contractor does not consider that any additional examinations, investigations, explorations, tests, studies, or data are necessary for the performing and furnishing of the Work at the Contract Price, within the Contract Times, and in accordance with the other tenns and conditions of the Contract Documents. Contractor is aware of the general nature of work to be performed by Owner and others at the Site that relates to the Work as indicated in the Contract Documents. DOCUMENT 00500 — AGREEMENT (continued) H. Contractor has correlated the information known to Contractor, information and observations obtained from visits to the Site, reports and drawings identified in the Contract Documents, and all additional examinations, investigations, explorations, tests, studies, and data with the Contract Documents. Contractor has given Engineer written notice of all conflicts, errors, ambiguities, or discrepancies that Contractor has discovered in the Contract Documents and the written resolution thereof by Engineer is acceptable to Contractor. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. ARTICLE 7 - CONTRACT DOCUMENTS 7.01 CONTENTS: The Contract Documents which comprise the entire Agreement between Owner and Contractor concerning the Work -consist of the following and may only be amended, modified, or supplemented as provided in the GENERAL CONDITIONS: This Agreement. Exhibits to this Agreement (enumerated as follows): a. Notice to Proceed. b. Contractor's Bid. c. Documentation submitted by Contractor prior to Notice of Award. d. Contractors Act of Assurance Form. DOCUMENT 00500—AGREEMENT (continued) 3. Performance, Payment, and other Bonds. 4. General Conditions. 5. MBE / WBE Compliance Evaluation Form. 6. Supplementary Conditions. 7. Labor -Related Regulations. Specifications consisting of divisions and sections as listed in table of contents of Project Manual. Drawings consisting of a cover sheet and sheets as listed in the table of contents thereof, with each sheet bearing the following general title: Bamestring to Wastewater Treatment Plant Force Mains, Contract WL -5 10. Addenda numbers 1 to 3 , inclusive. 11. The following which may be delivered or issued after the Effective. Date of the Agreement and are not attached hereto: All Written Amendments and other documents amending, modifying, or supplementing the Contract Documents pursuant to the GENERAL CONDITIONS. ARTICLE 8 - MISCELLANEOUS 8.01 TERMS: Terms used in this Agreement which are defined in the GENERAL CONDITIONS shall have the meanings stated in the GENERAL CONDITIONS. DOCUMENT 00500 - AGREEMENT (continued) 8.02 ASSIGNMENT OF CONTRACT: No assignment by a party hereto of any rights under or interests in the Contract Documents will be binding on another party hereto without the written consent of the party sought to be bound; and specifically but without limitation; moneys that may become due and moneys that are due may not be assigned without such consent (except to the extent that the effect of this restriction may be limited by Law), and unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under the Contract Documents. 8:03` ": SUCCESSORS AND ASSIGNS: Owner and Contractor each binds himself, his partners, successors, assigns, and legal representatives to the other party hereto, its partners, successors, ;roti•: ;O assigns, and legal representatives in respectio a1I_covenants, agreements, and obligations contained in the ConiractbocumerilsY31^ 8.04 SEVERABILITY: Any provision or part of the Contract Documents held to be void or unenforceable underany Law or Regulation shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon Owner and Contractor, who agree that the Contract Documents shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provision. 8.05 OTHER PROVISIONS: Not Applicable. IN WITNESS WHEREOF, Owner and Contractor have signed this Agreement in quadruplicate. One counterpart each has been delivered to Owner, Contractor, and Engineer. All portions of the Contract Documents have been sinned, initialed, or identified by Owner and Contractor. DOCUMENT 00500 — AGREEMENT (continued) This Agreement will be effective on __A Effective Date of the Agreement. "7 CONTRACTOR Gamey Companies Inc. By: Title: MOP!TIE TRIPP PRESIDENT Attest Address for giving na&hen M. McCandless Corp. Secretary (SEAL) GARNEY COMPANIES, INC. las i N.W. VIVION HOAD KANSAS CITY, MISSOURI 64118 License No. 003.2//0300, Agent for Service of processs� ( gatSiOn LOM/ q/7 %or,"f/ Si LW(/a�C /7R 7.l?O/ (If Contractor is a corporation, attach evidence of authority to sign.) 3 , 2006, which is the OWNER City of Fayetteville Fa ettevill By: Title: Ma ansas Attest (SEAL) n n bryllrl'' TR V OF evp Ec3 • t :FAYETTEVILLE: :ti S '1l uu Wllllll ,• �.` Address for giving notices (If Owner is a public body, attach evidence of authority to sign and resolution or other documents authorizing execution of Agreement) Approved As to Form: By: Attorney For: City of Fayetteville END OF DOCUMENT 00500 David Jurgens Submitted By City of Fayetteville Staff Review Form City Council Agenda Items or Contracts 3 -Jan -05 0 C City Council Meeting Date Water/Wastewater Division Action Required: 09-44 ./607,145 Water/Wastewater Department Approval of a construction contract with Garney Construction, Inc, as approved by the Sewer Committee, in the amount of $4,582,536.60, for construction of the Force Mains from Hamestring Lift Station to the West Side WWTP, WL -5, and approve a 4% contingency of $183,000.00. Funds are available in Fiscal Year 2005 and 2006 WSIP budget. $4,765,536.60 Cost of this request 4480-9480-5315.00 Account Number 02133.0302 Project Number Budgeted Item XX 113,011,587.00 Category/Project Budget 85, 742, 915.94 Funds Used to Date 27,268,671.06 Remaining Balance Budget Adjustment Attached Wastewater System Imp Protect Program Category / Project Name Water and Wastewater Program / Project Category Name UAs.sa.hw TA*. e.Nsrwana1 Water/Sewer Fund Name Depart Director City Attorney 11Qee Date rnJ�nt/L �— /06/2041' Finance and Internal Service Director Mayor !Comments: 6/itiffJs Dat Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Numb Received in Mayor s Office City Council Meeting of January 3, 2006 CITY COUNCIL AGENDA MEMO To: Fayetteville City Council Thru: Mayor Dan Coody From: Fayetteville Sewer Committee David Jurgens, Water/Wastewater Director Date: December 16, 2005 Subject. Approval of a construction contract with Garney Construction, Inc, as approved by the Sewer Committee, in the amount of $4,582,536.60, for construction of the Force Mains from Hamestring Lift Station to the West Side WWTP, WL -5, and approve a 4% contingency of $183,000.00. Funds are available in Fiscal Year 2005 WSIP budget. RECOMMENDATION Fayetteville Sewer Committee and City Administration recommend approval of a construction contract with Gamey Construction, Inc., in the amount of $4,582,536.60, for construction of the Force Mains from Hamestring Lift Station to the West Side WWTP, project WL -5, and approve a 4% contingency of $183,000.00. BACKGROUND The City received four bids for this project, as follows: Gamey Const $ 4,582,536.60 Kraus Const 5,617,699.00 W. N. Couch Const 5,633,185.50 T -G Excavating 5,777,777.00 Engineer's Estimate $ 7,144,276.00 The project entails installing 21,740 feet of 24 and 30 inch parallel force mains from the Hamestring Lift Station site to the West side WWTP. DISCUSSION The bid has been reviewed by RJN Group, the Engineer, and the Arkansas Department of Natural Resources. Both recommend award of this bid in the attached letters. Gamey is an excellent contractor. They were one of five that passed the vetting process and was interviewed for the West Side WWTP construction. They have completed several projects for the City, installing the City's 42" water transmission line from the Beaver Water District (BWD) to Fayetteville, a $2 million sanitary sewer rehabilitation project, and several others. All of these projects were completed very well. They have very recently completed several projects for BWD. BUDGET IMPACT Funds are available in Fiscal Year 2005 budget. This contract is expected to be funded by an RLF loan. RESOLUTION NO. A RESOLUTION AWARDING. A CONSTRUCTION CONTRACT TO GARNEY CONSTRUCTION, INC. IN THE AMOUNT OF $4,582,536.60 FOR CONSTRUCTION OF THE FORCE MAINS FROM HAMESTRING LIFT STATION TO THE WEST SIDE WWTP (WL -5); AND APPROVING A 4% CONTINGENCY OF $183,000.00. 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 awards a construction contract to Garney Construction, Inc. in the amount of $4,582,536.60 for construction of the force mains from Hamestring Lift Station to the West Side WWTP (WL -5). A copy of the contract marked Exhibit "A" is attached hereto, and made a part hereof Section 2. That the City Council of the City of Fayetteville,Alkan'sas hereby approves a 4% contingency of $183,000.00. PASSED and APPROVED this 3'd day of Januar APPROVED: brBy DANT ICOODY, Mayor SONDRA'SMIT! i, Cit :7c te 1) Arkansas Natural Resources Commission 1 Randy Young, PE 101 East Capitol, Suite 350 Phone: (501) 682-1611 Mike Huckabee Executive Director Little Rock, Arkansas 72201 Fax: (501) 682-3991 Governor http://www.anrc.arkansas.gov/ E-mail: anrc@arkansas.gov • 16 December 2005 David Jurgens, P E Water and Wastewater Director City of Fayetteville 1 13 West Mountain Fayetteville, AR 72701 Re: Concurrence in Bid Tabs - Project WL -5 CWRLF -00183- CWRLF-I., Dear Mr. Jurgens: The bid tabulations and recommendation from your staff has been reviewed by ASWCC staff. The award of the construction contracts as set out below is approved_ Sewer System Improvements Bid Amount Gamey Construction 54,582,536.60 The City of Fayetteville may now proceed with formalizing the contracts. Please be advised that the insurance and bonding for the projects must be accomplished through companies and agents licensed through the Arkansas State Insurance Department. A copy of the contract, or at a minimum, copies of the respective insurance and bonding documents for the contract should be forwarded to ASWCC for review and approval prior to the formal contract signing and the preconstruction conference. The preconstruction conference and contract signing will be scheduled at a time which is mutually agreeable to all parties. Work orders may be issued at the conference. If you have any questions or concems, Mr. Scott Savoy, Project Administrator, may be contacted at 501- 682-0279. Alternatively, you may contact Mr. Michael Core, P.E., Project Engineer, at 501-682-0556. Sincerely, cc: Thomas A. Harris, P.E-, RJN Group P r� n group Excellence through Ow rs ip November 18, 2005 Mr. Dave Jurgens, P E City of Fayetteville Director Water and Wastewater 113 West Mountain Street Fayetteville, AR 72701 Subject: Fayetteville Westside Wastewater Improvements - WL -5 RJN#18187500 Dear Mr. Jurgens: www.gn.com "V 2 2 2005 RJN has reviewed and processed the Contractor Bids for the above referenced project. All bids are correct as submitted by each contractor. Garrey Companies, Inc. is certified to be the low bidder with a total bid amount of four million five hundred eighty-two thousand five hundred thirty-six dollars and sixty cents ($ 4,582,536.60). RJN has checked references supplied by Garney Companies, Inc All references checked have stated that Gamey's work has been excellent, completed on time, and they make an extra effort to insure that effected property owners are kept informed and appeased. Gamey Companies has completed projects with a total cost of over $30 Million, and has completed more than 10 projects within the past three years that exceed $7 Million. RJN recommends that the contract for WL -5 in the amount of $ 4,582,536.60 be awarded to the low bidder, Garney Companies, Inc. Attached are the documents submitted by Gamey that demonstrate a good faith effort to utilize MBE/WBE firms, the required bonds, and insurance certificate. Should you have any further questions, please call me at (972) 437-4300. RJN Group, Inc. Thomas A Harris, P E Senior Project Manager Attachments: Bid Tabulation Bonds MBE/WBE Documentation Insurance Certificate file xc: 26 East Meadow #8 • Fayetteville, AR 72701 • 479.444.6119 • fax 479.444.6119 Garnei I00% Employee Owned 1333 NW Vivion Road Kansas City, MO 64118 Phone: (816) 741-4600 Fax: (816) 741-4488 TO: RJN Group, Inc. 26 E. Meadow, Suite 8 Fayetteville, AR 72701 WE ARE SENDING YOU: X Attached LETTER OF TRANSMITTAL DATE: 11/21/05 JOB NO.: 2811 ATTENTION: Tom Harris RE: Contract No WL -5 Hamestring Lift Station to Wastewater Treatment Plant Force Mains RLF Project Number CS -050803-03 Under separate cover via the following items: Copies Number Description 5 Contract and Bonds #058632452 5 Insurance Certificates THESE ARE TRANSMITTED AS CHECKED BELOW: x For Approval For Your Use As Requested For Review REMARKS Approved as Submitted Approved as Noted Approved as Corrected Retumed for Corrections Not Approved Resubmit Revise and Resubmit URetum n Retum copies for approval corrected submittals corrected submittals COPY TO: Job File Signed: TPMISMITTAI vlc Montle Tripp President r DOCUMENT 00610 — PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: that Gamey Companies, Inc. 1333 NW Vivton Road Kansas City MO 64118 as Principal, hereinafter called Contractor, and (800)331-6053 Western Surety Company PO Box 5077 Sioux Falls, SD 57117-5077 BOND NO. O5Ste3 J 461 as Surety, hereinafter called Surety, are held and firmly bound unto City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, Arkansas 72701 Four Million Five Hundred Eighty -Two Thousand Five Hundred Thirty -Six Dollars and Sixty Cents, ($4,582,536.60) as Obligee, hereinafter called Owner, in the amount of_ Dollars ($ ), for the payment whereof Contractor and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, principal has submitted a Bid for Fayetteville Wastewater System Improvements Project, Hamestring Lifl Station to Wastewater Treatment Plant Force Mains, Contract WL -5: WHEREAS, Contractor has by written Agreement dated , 2005, entered into a contract with Owner for construction of Wastewater System Improvement Protect , Hamestring Lift Station to Wastewater Treatment Plant Force Mains, WL 5 which contract is by reference made apart hereof, and. is hereinafter referred to as the Contract. NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that, if Contractor shall promptly and faithfully perform said Contract, then this obligation shall be null and void; otherwise it shall remain in full force and effect. The Surety hereby waives notice of any alteration or extension of time made by the Owner. DOCUMENT 00610 — PERFORMANCE BOND (continued) Whenever Contractor shall be, and declared by Owner to be in default under the Contract, the Owner having performed Owner's obligations, thereunder, the Surety may promptly remedy the default, or shall promptly: A. Complete the Contract in accordance with its terms and conditions, or B. Obtain a bid or bids for completing the Contract in accordance with its terms and conditions, and upon determination by Surety of the lowest responsible bidder, or, if the Owner elects, upon determination by the Owner and the Surety jointly of the lowest responsible bidder, arrange for a contract between such bidder and Owner, and make available as Work progresses (even though there should be a default or a succession of defaults under the contract or contracts of completion arranged under this paragraph) sufficient funds to pay the cost of completion less the balance of the Contract Price; but not exceeding, including other costs and damages for which the Surety may be liable hereunder, the amount set forth in the first paragraph hereof. The term "balance of the Contract Price," as used in this paragraph, shall mean the total amount payable by Owner to Contractor under the Contract and any amendments thereto, less the amount properly paid by Owner to Contractor. Any suit under this Bond must be instituted before the expiration of two years from the date on which final payment under the Contract falls due. No right of action shall accrue on this Bond to or for the use of any person or corporation other than the Owner named herein or the heirs, executors, administrators, or successors of the Owner. Signed and sealed this day of 2005. CONTRACTOR (CORPORATE SEAL) GARNEY COMPANIES, INC By 77e -it' MONTIE TRIPP, P cSIDENT DOCUMENT 00610 - PERFORMANCE BOND (continued) SURETY COUNT FAWNED. Resident Agent State of Arkansas C.,/10 a OAT WESTERN SURETY COMPANY By Sot. lilac, Barbara A. Miller Attorney -in -Fact By Countersigned by. Carolyn A Cory, Arkansas Resident Agent ATTORNEY -TN -FACT (CORPORATE SEAL) BaroaraA. Miller Attorney -in -Fact (This Bond shall be accompanied with Attomey-in-Fact's authority from Surety) END OF DOCUMENT 00610 Approved as to Form: Attomey for