§ 42-154. Construction contract requirements.

(a)

Bid security. Cashier's check or an acceptable bidders bond payable to the owner in an amount of not less than five percent of the largest possible total of the bid submitted must accompany the bid, and is subject to forfeit in the event the successful bidder fails to execute the contract documents within ten days after the contract has been awarded.

(b)

Payment bond and performance bond. The contractor will be required to make a payment bond and a performance bond of not less than 100 percent of the contract price, conditioned upon the faithful performance of the contract and upon payment of all persons supplying the labor or furnishing the materials used on this project.

(c)

Maintenance bond. The contractor will be required to make a maintenance bond of not less than 100 percent of the contract price conditioned upon the maintenance of and the repairs to the construction under this contract for a period of two years from the date of acceptance of the project.

(d)

Ambiguity. In case of ambiguity or lack of clearness in stating prices in the proposal, the owner reserves the right to adopt the most advantageous construction thereof to the owner or to reject the proposal.

(e)

Financial statement. A current certified financial statement may be required by the city and/or owner if required for use in determining the successful bidder. This statement, if required, is to be prepared by an independent certified public accountant or independent public accountant holding a valid permit issued by an appropriate state licensing agency.

(f)

State sales tax. This contract is for the improvement of streets, storm sewers, and utilities in right-of-way which has been dedicated to the public and the city, an organization which qualifies for exemption pursuant to the provisions of article 20.04(F) of the Texas Limited Sales, Excise and Use Tax Act. The contractor performing this contract can probably purchase, rent or lease all material, supplies, and equipment used or consumed in the performance of this contract by issuing to his supplier an exemption certificate in lieu of the tax, the exemption certificate complying with state comptroller's ruling No. 95-0.07. Any such exemption certificate issued by the contractor in lieu of the tax shall be subject to the provisions of the state comptroller's ruling No. 95-0.09 as amended to be effective October 2, 1976.

(g)

Insurance. Prior to commencing the work, the contractor shall furnish to the city and/or owner proof of satisfactory carriage of insurance in accordance with the standard requirements of contractors doing work of the nature herein proposed.

(h)

Indemnification. The contractor agrees to fully indemnify and save whole and harmless, the city and/or owners of the units and lots abutting the units in this contract, from all costs or damages arising out of any real or asserted claim or cause of action against it of whatsoever kind of character and in addition from any and all costs or damages arising out of any wrongs, injuries, demands or suits for damages, either real or asserted, claimed against it that may be occasioned by any act, omission, neglect or misconduct of the contractor, his agents, servants, and employees. The contractor further agrees to comply with all applicable laws, regulations, ordinances, buildings and construction codes of the city and the state, and with any regulations for the protection of workers which may be promulgated by the government, and shall protect such work with all necessary lights, barriers, safeguards, and warnings as are provided for in the specifications and in the ordinances and regulations of the city.

(i)

City funds. Projects funded in part by the city will require a formal advertisement of bids in accordance with the laws of the state. Bid advertisement in two local newspapers with publication and circulation weekly shall be required three weeks prior to bid opening. Documentation of published advertisement by a certified publishers statement, listing the dates published with an attached copy of the published advertisement will be required prior to bid opening. Documentation of bid advertisement shall be delivered to the city secretary five days prior to bid opening. Notice of bid advertisement shall also be posted within city hall three weeks prior to bid opening. All bids will be opened at city hall by the city secretary in accordance with city bidding policies in effect.

(j)

Contract forms. Bid form and contractual provisions may be obtained by contracting the city secretary for the city at city hall.

(Code 1994, ch. 9, art. 38; Ord. No. 248, exh. A(art. 38), 3-24-1997)