HomeMy WebLinkAbout2020-735-E-AMS-Warren Hay Mechanical Contractors Inc.
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[Departmental Use Only]
TITLE MP HVAC
FY 2020-2021
NORTH CAROLINA
CONSTRUCTION AGREEMENT UNDER $250,000.00
ORANGE COUNTY
THIS CONSTRUCTION AGREEMENT (hereinafter called “Agreement”), made as of the 26th
day of October, 2020, by and between Warren Hay Mechanical Contractors, Inc, (hereinafter called the
“Contractor”), and Orange County, a political subdivision of the State of North Carolina, (hereinafter
called the “County,” “Orange County,” or “Owner”).
W I T N E S S E T H:
That the Contractor and the Owner, for the consideration herein named, agree as follows:
1. CONTRACT DOCUMENTS; PRIORITY
The Contract Documents consist of this Agreement, the Request for Proposals, Proposal,
Construction Drawings, and Written Specifications. The Contract Documents form the Contract. In the
event of any inconsistency between or among the Contract Documents the Contract Documents shall be
interpreted in the following order of priority:
a. This Agreement.
b. Designer Approved Bulletins and Field Orders.
c. Request for Proposals and addenda thereto.
d. Proposal.
2. SCOPE OF WORK
The Contractor shall furnish and deliver all of the materials, and perform all of the work
required by this Agreement within the time period stipulated in a written Notice-to-Proceed to be
executed by the Contractor and Owner and in accordance with the following enumerated documents,
which are made a part hereof as if fully contained herein:
a. Construction Drawings prepared by Burke Design Group (Sheet E1, E2, E3 dated 6/1/2020
and M1, M2, M3 dated 7/8/2020)
b. Written specifications prepared by the project engineer.
c. Warren Hay Mechanical Contractors, Inc proposal dated September 24, 2020 which fully
describes the work to be performed. Such work will hereafter be called the “Work”.
d. Related documents listed under Section 1 above.
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3. TERM AND SCHEDULING
a. The Contractor agrees to commence work pursuant to the written Notice to Proceed.
b. The Contractor agrees to complete substantially all Work by December 31, 2020.
c. Time is of the essence with respect to all dates specified in the Contract Documents as
Completion Dates.
d. The Contractor shall perform the Work in the time, manner, and form required by the
Contract Documents and as stipulated in a written Notice-to-Proceed to be executed by the
Contractor and Owner.
e. It is expressly understood that the Owner will employ other contractors to perform work as
a part of the Project whose work will be performed simultaneously and sequentially with
the performance of the Work by the Contractor. It shall be necessary for the Contractor to
coordinate its activities with such other contractors, particularly with respect to access to
work areas, storage of materials and other common facilities.
f. Should the Owner determine that the Contractor is behind schedule Owner may require, at
no additional cost to the Owner, the Contractor to expedite and accelerate its efforts,
including providing additional resources and working overtime, as necessary, to perform
the Work in accordance with the approved project schedule.
4. STANDARD OF CARE
a. The Contractor shall exercise reasonable care and diligence in performing the Work in
accordance with the highest generally accepted standards of this type of Contractor
practice throughout the United States and in accordance with applicable federal, state and
local laws and regulations applicable to the performance of these services. Contractor is
solely responsible for the professional quality, accuracy and timely completion and
submission of all work.
b. The Contractor shall not load or permit any part of the Work to be loaded with a weight
that will endanger its safety, intended performance or configuration.
c. Contractor shall be responsible for all errors or omissions caused by its employees, agents,
contractors, or assigns in the performance of the Agreement. Contractor shall correct any
and all errors, omissions, discrepancies, ambiguities, mistakes or conflicts at no additional
cost to the Owner.
d. Contractor is an independent contractor of Owner. Any and all employees of the
Contractor engaged by the Contractor in the performance of any work or services required
of the Contractor under this Agreement, shall be considered employees or agents of the
Contractor only and not of the Owner, and any and all claims that may or might arise under
any workers compensation or other law or contract on behalf of said employees while so
engaged shall be the sole obligation and responsibility of the Contractor.
e. If activities related to the performance of this Agreement require specific licenses,
certifications, or related credentials Contractor represents that it or its employees, agents
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and subcontractors engaged in such activities possess such licenses, certifications, or
credentials and that such licenses certifications, or credentials are current, active, and not in
a state of suspension or revocation.
f. The Contractor is responsible for all physical damage to owned or rented machinery, tools,
equipment, forms, and other items owned, rented or used by the Contractor and
Subcontractor(s) in the performance of the Work including all of Owner’s property in
Contractor’s care, custody, or control, and all such property while it is in transit.
g. The Contractor is solely responsible for obtaining all permits necessary to complete the
Work in compliance with all local, state, and federal laws.
5. PAYMENT & TAXES
a. The Owner hereby agrees to pay to the Contractor for the faithful performance of this
Agreement, and the Contractor hereby agrees to perform all of the Work for a sum not-to-
exceed Seventy Thousand Two Hundred Thirty Seven Dollars ($70,237.00). Not later
than the fifth (5th) day of each calendar month the Contractor shall submit to the Owner ’s
Representative, generally the architect if an architect is retained on the Work, a Request for
Payment for work done during the previous calendar month.
i. The Request for Payment shall be in form of a standardized invoice or AIA
Document G702-703 appropriately addressed to Owner’s Representative at 3305-
109 Durham Drive, Raleigh NC 27603 and shall show substantially the value of
work done during the previous calendar month.
ii. The amount due for payment shall be ninety-five percent (95%) of the value of
work completed since the last Request for Payment and this amount shall be paid
by the Owner on or before the last business day of the month. Owner shall retain
five percent (5%).
1. Upon Owner’s Representative’s certification that ninety percent (90%) of
the Work has been satisfactorily completed retainage may be discontinued.
Retainage may be discontinued, at Owner’s Discretion, so long as work
continues to be completed satisfactorily and on schedule.
iii. Final payment shall not be due to the Contractor until thirty (30) days after one
hundred percent (100%) of the Work, including punch list work, has been
satisfactorily (as determined by the County) completed and an appropriate affidavit
as required in Section 7(c) below has been received by Owner.
b. Should Owner reasonably determine that Contractor has failed to perform the Work related
to a Request for Payment, Owner, at its discretion may provide the Contractor ten (10)
days to cure the breach. Owner may withhold the accompanying payment without penalty
until such time as Contractor cures the breach.
i. Should Contractor or its representatives fail to cure the breach within ten (10) days,
or fail to reasonably agree to such modified schedule, Owner may immediately
terminate this Agreement in writing, without penalty or incurring further obligation
to Contractor.
ii. This section shall not be interpreted to limit the definition of breach to the failure to
perform the Work related to a Request for Payment.
c. The Contractor has included in the Contract Price and shall pay all taxes assessed by any
authority on the Work or the labor and materials used therein. It shall be the Contractor's
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responsibility to furnish the Owner documentary evidence showing the materials used and
sales and use tax paid by the Contractor and each of its subcontractors.
6. INSURANCE AND BONDS
a. Minimum requirements – Contractor shall obtain, at its sole expense, Commercial General
Liability Insurance, Automobile Insurance, Workers’ Compensation Insurance, and any
additional insurance as may be required by Owner’s Risk Manager as such insurance
requirements are described in the Orange County Risk Transfer Policy and Orange County
Minimum Insurance Coverage Requirements (each document is incorporated herein by
reference and may be viewed at
http://www.orangecountync.gov/departments/purchasing_division/contracts.php). If
Owner’s Risk Manager determines additional insurance coverage is required such
additional insurance shall be designated here N/A (if no additional insurance required mark
N/A as being not applicable). Contractor shall not commence construction work until such
insurance is in effect and certification thereof has been received by the Owner's Risk
Manager.
b. Performance Bonds – Contractor shall furnish bonds covering the faithful performance of
the Contract and payment of all obligations arising under any of the Contract Documents
or related in any way to the Work. Contractor shall immediately furnish a copy of such
bonds to any requesting person who appears to be a potential beneficiary of bonds
covering payment obligations arising under any of the Contract Documents. This
subsection 6(b) applies only to Contracts of fifty thousand dollars ($50,000.00) or more
where the total cost for the project is three hundred thousand dollars ($300,000.00) or
more.
7. INDEMNITY
a. To the extent authorized by North Carolina law the Contractor shall indemnify, without
limitation, and hold harmless to the maximum extent permitted by law the Owner and its
agents and employees from and against any and all claims, damages, loss es and expenses,
including attorney's fees, arising out of or resulting from the performance or
nonperformance of the Work, provided that any such claim, damages, loss or expense (A)
is attributable to bodily injury, sickness, disease or death or injury to, or destruction of,
property, including the loss of use resulting therefrom; and (B) is caused in whole or in
part by any breach of any provision of the Agreement or by any negligent or wrongful act
or omission of the Contractor, any Subcontractor, or supplier of the Contractor, anyone
directly or indirectly employed by any of them or anyone for whose acts any of them may
be liable. The indemnification obligation under this paragraph shall not be limited in any
way by any limitation of the amount or type of damages, compensation or benefits payable
by or for the Contractor or any subcontractor under workers' compensation acts, disability
benefits acts or other employee benefit acts. It is the intent of this section that the
Contractor shall indemnify the County to the maximum extent allowed by law.
b. The Contractor shall indemnify and hold harmless Owner from any lien of whatever type
through the purchase of appropriate bonds and insurance as designated in Section 6 above.
In the event any such lien is filed against Owner’s property Contractor shall, through such
bonds and insurance or at Contractors expense, defend Owner against all such claims of
lien.
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c. Upon completion of the Work the Contractor shall execute an affidavit stating there are no
unpaid debts for any work that has been done or materials that have been furnished to the
project prior to and as of the date of substantial completion and further stating that
Contractor shall indemnify, save and protect Owner and Owner’s lender, if any, harmless
from and against any and all claims, liabilities, losses, damages, causes of action, and
expenses (including court costs and reasonable attorney’s fees related thereto) arising out
of, in connection with, or resulting from any such debts and liens. Such indemnification
shall be in a form and substance acceptable to Owner.
d. By executing this Agreement Contractor agrees to abide by and be bound by the
indemnification provisions herein and of Section 7(c) specifically.
8. DISPUTE RESOLUTION AND GOVERNING LAW
a. Any dispute with respect to any provision of, or the performance or non-performance of,
this Agreement shall be subject to the Dispute Resolution Rules and Procedures for Orange
County Design, Building Construction, Renovation, and Repair Projects. The policy is
incorporated herein by reference and may be viewed at
http://www.orangecountync.gov/departments/purchasing_division/contracts.php).
b. The laws of the State of North Carolina shall apply to the interpretation and enforcement of
this Agreement. Any and all suits or actions to enforce, interpret or seek damages with
respect to any provision of, or the performance or nonperformance of, this Agreement or
the Contract shall be brought in the General Court of Justice of North Carolina sitting in
Orange County, North Carolina and it is agreed by the parties that no other court shall have
jurisdiction or venue with respect to such suits or actions.
c. Notice of any claim by Owner or Contractor must be initiated by written notice to the other
Party within thirty (30) days of the occurrence of the event giving rise to the claim or
within thirty (30) days of the discovery of the event or condition giving rise to the claim,
whichever is later.
i. Should any claim be made, regardless of whether such claim is made by Owner or
Contractor, Contractor shall continue to faithfully and diligently perform the Work
in such a manner as to meet all scheduled timelines. Any failure to faithfully and
diligently perform the Work may be deemed, by the Owner, a breach of the
Contract.
ii. If a claim is made such claim shall be made to the initial decision maker, if
applicable, who may request more supporting data, reject the claim in whole or in
part, approve the claim in whole or in part or advise the parties the claim is unable
to be resolved.
iii. If a claim is made by the Owner the Owner may, but is not obligated to, notify the
surety.
9. NON–APPROPRIATION
a. Contractor acknowledges that Owner is a governmental entity, and the validity of this
Agreement is based upon the availability of public funding under the authority of its
statutory mandate.
b. In the event that public funds are unavailable and not appropriated for the performance of
Owner’s obligations under this Agreement, then this Agreement shall automatically expire
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without penalty to Owner immediately upon written notice to Contractor of the
unavailability and non-appropriation of public funds. It is expressly agreed that Owner
shall not activate this non-appropriation provision for its convenience or to circumvent the
requirements of this Agreement, but only as an emergency fiscal measure during a
substantial fiscal crisis.
c. In the event of a change in the Owner’s statutory authority, mandate or mandated
functions, by state or federal legislative or regulatory action, which adversely affects
Owner’s authority to continue its obligations under this Agreement, then this Agreement
shall automatically terminate without penalty to Owner upon written notice to Contractor
of such limitation or change in Owner’s legal authority.
10. NOTICES
Any notice required by this Agreement shall be in writing and delivered by certified or registered
mail, return receipt requested to the following:
Owner: Contractor:
Orange County Warren Hay Mechanical Contractors, Inc
Attn: AMS Attn: Ron LaPann
P.O. Box 8181 PO Box 818
Hillsborough, NC 27278 Hillsborough, NC 27278
11. MISCELLANEOUS
a. Duties and Obligations imposed by the Contract Documents shall be in addition to any
Duties and Obligations imposed by state, federal or local law, rules, regulations and
ordinances.
b. No act or failure to act by the Owner or Contractor shall constitute a waiver of any right or
duty granted them under the Contract Documents, nor shall any act or failure to act
constitute any approval except as specifically agreed in writing.
c. The Work shall be tested and inspected as required by the Contract Documents and as
required by law. Unless prohibited by law the costs of all such tests and inspections
related to state and federal codes such as ADA, Administrative, Electrical, Plumbing,
Mechanical and Building Codes shall be borne by the Contractor. The costs for material
and structural testing shall be conducted by an independent third party at the expense of the
Owner. Delays related to any of the aforementioned tests and inspections shall not be
grounds for delaying the completion of the work. If any such tests and inspections reveal
deficiencies in the Work such that the Work does not comply with terms or requirements
of the Contract Documents and the requirements of any code or law the Contractor is
solely responsible for the cost of bringing such deficiencies into compliance with the terms
of the Contract Documents and any code or law.
d. Should the Architect, if an architect is retained for the project involving the Work, or
Owner reject any portion of the Work for failing to comply with the Contract Documents
Contractor shall immediately, at Contractor’s expense, correct the Work. Any such
rejection may be made before or after substantial completion. If applicable, any additional
expense borne by the Architect under this section shall be paid at Contractor’s expense.
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e. The Contractor shall not assign any portion of this Agreement nor subcontract the Work in
its entirety without the prior written consent of the Owner.
f. By executing this Agreement Contractor affirms that Contractor and any subcontractors of
Contractor are and shall remain in compliance with Article 2 of Chapter 64 of the North
Carolina General Statutes.
g. By executing this Agreement Contractor certifies that Contractor has not been identified,
and has not utilized the services of any agent or subcontractor identified, on the list created
by the State Treasurer pursuant to G.S. 147-86.58.
h. By executing this Agreement Contractor certifies that Contractor has not been identified,
and has not utilized the services of any agent or subcontractor identified, on the list created
by the State Treasurer pursuant to G.S. 147-86.81.
i. The County has designated (Angel Barnes) to act as the County's representative with
respect to the Work and shall have the authority to render decisions within guidelines
established by the County Manager or the County Board of Commissioners and shall be
available during working hours as often as may be reasonably required to render decisions
and to furnish information.
j. Contractor shall at all times remain in compliance with all applicable local, state, and
federal laws, rules, and regulations including but not limited to all state and federal non-
discrimination laws, policies, rules, and regulations and the Orange County Non-
Discrimination Policy and Orange County Living Wage Policy (each policy is incorporated
herein by reference and may be viewed at
http://www.orangecountync.gov/departments/purchasing_division/contracts.php). Any
violation of the Orange County Non-Discrimination Policy is a breach of this Agreement
and County may immediately terminate this Agreement without further obligation on the
part of the County. This paragraph is not intended to limit and does not limit the definition
of breach to discrimination.
k. This Agreement together with any amendments or modifications may be executed
electronically. All electronic signatures affixed hereto evidence the consent of the Parties
to utilize electronic signatures and intent of the Parties to comply with Article 11A and
Article 40 of North Carolina General Statute Chapter 66.
l. In the event of a breach by Contractor Owner has sole authority to determine the
reasonableness of Contractor’s actions to remedy such breach or complete the performance
of its obligations.
m. Upon request of the Owner, the Contractor shall submit to County all relevant
documentation, including but not limited to, job cost records, to support its claims for final
compensation and if such request is made final compensation shall not be due until all
relevant documentation is received, reviewed, and approved by Owner.
12. CONSEQUENTIAL AND LIQUIDATED DAMAGES
a. Owner and Contractor mutually waive any claim against each other for consequential
damages. Consequential Damages include:
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i. Damages incurred by Owner for loss of use, income, financing, or business.
ii. Damages incurred by Contractor for office expenses, including personnel, loss of
financing, profit, income, business, damage to reputation, or any other non-direct
damages.
b. Liquidated damages shall be in accord with the Contract Documents. If the Contract
Documents do not otherwise address liquidated damages, such damages shall be in the
amount of five hundred dollars ($500.00) per day.
13. TERMINATION OR SUSPENSION
a. The Owner may, without cause, order the Contractor to terminate, suspend, delay or
interrupt the Work in whole or in part for such period of time as the Owner may determine.
i. If Owner issues a written order to delay, suspend, or interrupt the Work, and such
order is not due to or as a result of any fault on the part of the Contractor or any
subcontractor, the Contractor may recover a per diem amount of five hundred
dollars ($500.00) per day with a not-to-exceed limit of ten thousand dollars
($10,000.00).
ii. In the event of termination by the Owner under this Agre ement, the Contractor
shall be entitled to receive its reasonable and documented direct costs prior to
termination, including the cost of materials purchased for the Work which
purchases cannot be canceled or which material cannot reasonably be used by the
Contractor on other work, and the cost of closing down the work in a safe and
efficient manner.
iii. If Owner elects to suspend or terminate the contract pursuant to subparagraphs
13.a.i. or 13 a.ii. the sole remedy available to the Contractor are those listed in the
subparagraphs and Contractor is not entitled to any right to further claims for any
amount owed or disputed or for payment of damages alleged to have been sustained
as a result of Owner’s order to delay, suspend, or interrupt the Work.
b. The Owner may, with cause, order the Contractor to suspend, delay or interrupt the Work
in whole or in part for such period of time as the cause remains.
i. If Owner issues a written order to delay, suspend, or interrupt the Work, and such
order is due to or as a result of any fault on the part of the Contractor or any
subcontractor, the Owner may reduce payment at a per diem amount of five
hundred dollars ($500.00) per day.
c. Contractor may terminate the Contract if, at the Owner’s written direction, the Work is
stopped for twenty one (21) consecutive days through no act or fault of the Contractor,
their agents or employees, or a subcontractor or their agents or employees or any other
person performing work pursuant to the Contract Documents. Contractor may terminate
the Contract if a Court or other Public authority having jurisdiction enters a lawful order
that requires all work to be stopped and such stoppage lasts for twenty one (21)
consecutive days.
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d. Either party may terminate this Agreement upon notice to the other party that obligations
pursuant to this Agreement are made impossible due to declarations of emergency by
Orange County or by North Carolina due to events directly impacting Orange County.
Both parties shall remain responsible for all payment and performance due up to the receipt
of such notice, but shall have no further obligation or responsibility beyond that date
provided the terminating party has taken all reasonable steps to complete the performance
of its obligations.
14. ENTIRE AGREEMENT
All of the documents listed, referenced or described in this Agreement, the written Notice-to-
Proceed, together with Modifications made or issued in accordance herewith are the Contract Documents,
and the work, labor, materials and completed construction required by the Contract Documents and all
parts thereof is the Work. The Contract Documents constitute the entire agreement between Owner and
Contractor. This Agreement may be amended only by written instrument signed by both parties.
Modifications may be evidenced by facsimile signatures. If any provision of the Agreement shall be
declared invalid or unenforceable, the remainder of the Agreement shall continue in full force and effect.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and
date first above written wholly or in a number of counterparts each of which shall, without proof or
accounting for other counterparts, be deemed an original contract.
ORANGE COUNTY CONTRACTOR
____________________________________ ________________________________________
Signature Signature
County Manager
________________________________________
Printed Name and Title
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Commercial Division
10/15/2020
Ron LaPann
10/20/2020
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ORANGE COUNTY—DEPARTMENT USE ONLY
______________________________________________________________________________
Party/Vendor Name: Warren Hay Mechanical Contractors, Inc Party/Vendor Contact Person: Ron LaPann
(Ron.LaPann@warren-hay.com) Contact Phone: 919.732.4362 Party/Vendor Address: PO Box 818 City Hillsborough State:
NC Zip: 27278 Department: AMS Amount: $70,237.00 Purpose: Motor Pool - Install HVAC for Bays Budget Code(s):
61370035-800000-30018 Vendor # 25352 (N/A if new vendor) Vendor is a BOCC consultant? Yes No Contract
Type: (Check one) New Renewal Amendment Effective Date 10/26/2020 Approved by Board Yes No
Agenda Date:
This agreement is approved as to technical form and content and I as Department Director affirmatively state work on this
project has not been initiated prior to execution of the agreement:
Department Director’s Signature ________________________________________ Date: ________
Agreements for emergency services or repair are not subject to the above affirmation. If services related to this agreement have
already begun or been completed please briefly describe the nature of the emergency condition that was addressed: N/A
Risk Management
This agreement is approved for sufficiency of insurance standards, specifications, and requirements:
Office of the Risk Management Officer___________________________________ Date: _________
Financial Services
This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act:
Office of the Chief Financial Officer ____________________________________ Date: _________
Legal Services
This agreement is approved as to legal form and sufficiency:
Office of the County Attorney __________________________________________Date: ________
Clerk to the Board
Received for record retention:
All Docusign contracts must be copied to the Clerk upon completion: occlerkdocs@orangecountync.gov
The following signature block is for hard copies only and is not required for Docusign contracts:
Office of the Clerk to the Board __________________________________________Date:_________
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ORANGE COUNTY
NORTH CAROLINA
DISPUTE RESOLUTION RULES AND PROCEDURES FOR ORANGE COUNTY DESIGN, BUILDING
CONSTRUCTION, RENOVATION, AND REPAIR PROJECTS
RULE 1. INITIATING MEDIATED SETTLEMENT CONFERENCES
A. Purpose of Mandatory Settlement Conferences. Pursuant to G.S. §143-128(f1) and 143-
135.26(11), these Rules are promulgated to implement a mediated settlement program designed to
focus the parties’ attention on settlement rather than on claim preparation and to provide an
opportunity for orderly settlement negotiations to take place. Nothing herein is intended to limit or
prevent the parties from engaging in settlement procedures voluntarily at any time prior to or during
commencement of the dispute resolution process.
B. Initiating the Dispute Resolution Process
1. Any party to a County public construction contract (referred to herein generally as the
“Contract”) governed by Article 8. Ch. 143 of the General Statutes and identified in G.S. § 143-
128(f1) and who is a party to a dispute arising out of the Contract and the construction process
in which the amount in controversy is at least $15,000 may submit a written request to the
County for mediation of the dispute.
2. Prior to submission of a written request for mediation to the County, the party requesting
mediation should give notice of any and all claims in accordance with their respective contracts,
obtain decisions on the claims as required or allowed by their respective contracts, and attempt
to resolve the dispute according to the terms and conditions in their respective contracts. The
Mediator may adjourn any mediated settlement conference if the Mediator believes, in his or
her sole discretion, that the parties have not satisfied all of the terms and conditions of their
respective contracts and that doing so will enhance the prospects for a negotiated settlement.
C. Condition Precedent to Litigation. Before any party to a Contract may commence a civil action
against the County seeking remedies for breach or non-performance of the Contract by the County, said
party must first initiate the dispute resolution process under these rules and attend and participate in
good faith in the mediated settlement conference.
RULE 2. SELECTION OF MEDIATOR
A. Mediator Listing. A List of Mediators acceptable to the County is maintained by the County Attorney
and that list is incorporated by reference into these Rules.
B. Selection of Mediator. The party requesting mediation shall select a Mediator from the List of
Mediators and shall file, with the County, a Notice of Selection of Mediator within 21 days of the request
for mediation. Such notice shall state the name, address, and phone number of the Mediator selected. If
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the Mediator selected is not available or declines to participate for any reason, the requesting party
shall select another person from the List of Mediators. If the party requesting mediation does not select
and designate a mediator within 21 days of the request for mediation, the County shall have the right in
its absolute discretion to appoint a mediator from its List of Mediators.
C. Disqualification of Mediator. Any party may request replacement of the Mediator for good cause.
Nothing in this provision shall preclude Mediators from disqualifying themselves.
RULE 3. THE MEDIATED SETTLEMENT CONFERENCE
A. Where Conference is to be Held. Unless all parties and the Mediator otherwise agree, the mediated
settlement conference shall be held in county seat of Orange County. The Mediator shall be responsible
for reserving a place, making arrangements for the conference, and giving timely notice of the time and
location of the conference to all attorneys, unrepresented parties and other persons or entities required
to attend.
B. When Conference is to be Held. The mediation shall be completed within 90 days after selection of
the Mediator unless all parties to the mediation agree to a different schedule.
C. Request to Accelerate or Extend Deadline for Completion. Any party or the Mediator may request
the County to accelerate or extend the deadline for completion of the conference. Such request shall
state the reasons the acceleration or extension is sought and shall be served by the moving party upon
the other parties and the Mediator. Objections to the request must be promptly communicated to the
County and to the Mediator.
The County, with the concurrence of the designated Mediator, may grant the request by adjusting the
time for completion of the conference.
D. Recesses. The Mediator may recess the mediation conference at any time and may set times for
reconvening. If the Mediator determines the time and place where the conference is to reconvene
before the conference is recessed, no further notice is required to persons present at the conference.
E. Project Delay. The mediated settlement conference that results from a construction contract dispute
shall not be cause for the delay of the construction project.
RULE 4. DUTIES OF PARTIES AND OTHER PARTICIPANTS IN FORMAL DISPUTE RESOLUTION PROCESS
A. Attendance.
1. All parties to the dispute must designate an official representative to attend the mediation.
2. “Attendance” means physical attendance, not by telephone or other electronic means. Any
attendee representing a party must have authority from that party to bind it to any agreement
reached as a result of the mediation.
3. Attorneys representing parties may attend the mediation, but are not required to do so.
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4. Sureties and insurance company representatives are required to physically attend the
mediation unless the Mediator and all of the other parties to the mediation excuse their
attendance or consent to their attendance by telephone or other electronic means.
5. The parties who attend a duly scheduled mediation conference shall have the right to recover
their share of the Mediator’s compensation from any party or parties who fail to attend the
conference without good cause.
B. Finalizing Agreement. If an agreement is reached in the conference, the terms of the agreement shall
be confirmed in writing and signed by all parties.
C. Payment of Mediation Fee: Mediation Fees charged by the Mediator shall be paid in accordance with
G.S. § 143-128(f1).
D. Failure to Compensate Mediator. Any party’s failure to compensate the Mediators in accordance
with G.S. § 143-128(f1) shall subject that party to a withholding by the County of said amount of money
from the party’s payment or any other moneys owed by that party to the County.
Should the County fail to compensate the Mediator, it shall hereby be subject to a civil cause of action
from the Mediator for the County’s portion of the Mediator’s total fee as required by G.S. § 143-128(f1).
RULE 5. AUTHORITY AND DUTIES OF MEDIATORS
A. Authority of Mediator.
1.Control of Conference. The Mediator shall at all times be in control of the conference and the
procedures to be followed.
2.Private Consultation. The Mediator may communicate privately with any participant or
counsel prior to and during the conference. The fact that private communications have occurred
with a participant shall be disclosed to all other participants at the beginning of the conference.
3.Scheduling the Conference. The Mediator shall make a good faith effort to schedule the
conference at a time that is convenient with the participants, attorneys and Mediator. In the
absence of agreement, the Mediator shall select the date for the conference.
4.Determining good cause for a party’s failure to appear at a scheduled mediation conference.
B.Duties of Mediator.
1.The Mediator shall define and describe the following at the beginning of the conference:
a.The process of mediation.
b.The difference between mediation and other forms of conflict resolution.
c.The costs of the mediated settlement conference.
d.That the mediated settlement conference is not a trial, the Mediator is not a judge,
and the parties retain their legal rights if they do not reach settlement; however, the
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Mediator will advise all parties that failure to appear at mediation without good cause
may result in imposition of sanctions and may be asserted as a bar to lawsuits by
claimants who have failed to exhaust this administrative remedy.
e.The circumstances under which the Mediator may meet and communicate privately
with any of the parties or with any other person.
f.Whether and under what conditions communications with the Mediator will be held in
confidence during the conference.
g.The inadmissibility of conduct and statements as provided by G.S. §7A-38.1(1).
h.The duties and responsibilities of the Mediator and the participants.
i.That any agreement reached will be reached by mutual consent.
2. Disclosure: The Mediator has a duty to be impartial and to advise all participants of any
possible bias, prejudice or partiality.
3. Declaring Impasse: The Mediator may determine at any time during the mediation conference
that an impasse exists and that the conference should end.
4. Reporting Results of Conference. The Mediator shall submit a written report to the County
and the other parties within 10 days of the conference stating whether or not the parties
reached an agreement. The Mediator’s report shall indicate the absence of any party from the
mediated settlement conference without permission or good cause.
5. Scheduling and Holding the Conference. It is the duty of the Mediator to schedule the
conference and conduct it prior to the deadline of completion set by the rules. The Mediator
shall strictly observe deadlines for completion of the conference unless said time limit is
changed by agreement of the parties.
RULE 6. COMPENSATION OF THE MEDIATOR
The parties shall compensate the Mediator for mediation services at the rate proposed by the Mediator
and agreed to by the parties at the time the Mediator is selected.
RULE 7. RULE MAKING
These Rules may be amended by the County at any time. Amendments will not affect mediations where
claims and/or requests for mediation have been filed at the time the amendment takes effect.
RULE 8. DEFINITIONS
A. “County” shall mean Orange County North Carolina.
B. “Project Designer” is that person or firm stipulated as project designer in the Contract Documents for
the project.
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C. “Claim” is a demand or assertion by a party seeking adjustment or interpretation of Contract terms,
payment of money, extension of time or other relief with respect to the terms of the Contract. The term
“Claim” also includes other disputes and matters in question between the parties to a Contract involved
in the County’s building construction renovation and repair projects arising out of or relating to the
Contract or the construction process. Claims must be initiated by a written notice. The responsibility to
substantiate Claims shall rest with the party making the Claim.
D. “Good Cause” generally includes any circumstance beyond the control of a party, which prevents that
party from meeting obligations. When good cause is asserted as an excuse for a party’s failure to appear
at a mediation conference or to otherwise comply with the requirements of these Rules, the Mediator,
in his or her sole discretion, will determine whether good cause exists to excuse the party’s failure to
appear or otherwise comply with these rules.
RULE 9. TIME LIMITS
A. Any time limit provided for by these Rules may be waived or extended at the sole discretio n of the
County, if no Mediator has been selected, and at the discretion of the County with concurrence of the
Mediator if a Mediator has been selected.
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Orange County Asset Management Services
PO Box 8181, Hillsborough NC 27278
September 18, 2020
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Addendum # 1
Date: September 18, 2020
Project: Orange County Motor Pool HVAC Installation
RFP No. 5289
MODIFICATIONS TO THE CONTRACT DOCUMENTS FOR THE ABOVE-NAMED PROJECT
SHALL BE MADE AS DESCRIBED BELOW AND SHALL BE INCLUDED IN THE BID
AMOUNTS.
A. PRE-BID CONFERENCE
The Pre-Bid Conference was held at 10:00am, Thursday, September 10 2020 at the Orange
County Motor Pool Building., Hillsborough, North Carolina. The minutes from this meeting are
attached.
B: CLARIFICATIONS:
1) The AHU’s on the mezzanine shall be located as high as possible to allow full owner
access to the space.
2) Coordinate final location of the ductless split system components with the
engineer/owner in the space prior to rough-in.
3) Properly seal all exterior wall penetrations as required for the wall type.
END OF ADDENDUM
Attachments:
1. Pre Bid Meeting Minutes
2. Pre Bid Sign In Sheet
3. Construction Contract Under 250K Final 11-19
4. Dispute Resolution Rules and Procedures for Orange County Design, Building
Construction, Renovation, and Repair Projects.
5. Orange County Hot Work Permit Process
6. Orange County Equipment Shutdown Request
7. Orange County Minimum Insurance Requirements
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PRE-BID MEETING MINUTES
OC RFP No. 5289
Project Name: Motor Pool HVAC Installation
September 10, 2020 10:00 AM Orange County Motor Pool
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A. INTRODUCTIONS
B. SIGN-IN SHEET – See Attached
C. PROJECT DESCRIPTION & SCOPE OF WORK – Installing HVAC for the Orange County Motor
Pool Bays as per drawings
D. DELIVERY METHOD – Single Prime, Mechanical Lead
E. ALTERNATES, ALLOWANCES AND UNIT PRICES
None
F. WORK OR SERVICES BY OTHERS
None
G. QUESTIONS DURING BID
Request for Information (RFI): Direct questions concerning this bid document to Jovana
Amaro, Purchasing Agent, Orange County Financial Services, (919) 245-2651 or via
email at jamaro@orangecountync.gov . Direct any questions about the scope, site visit,
details of the work, or the proposal to: Angel Barnes, Orange County Capital Projects
Manager, Orange County AMS 919-245-2628 abarnes@orangecountync.gov. All RFIs
emails shall include in the subject line the following: RFI for RFP # 5289 Orange County
Motor Pool HVAC Installation.
All RFI’s will be answered directly back to the member asking and then sent out via addendum to
all interested firms.
H. BID ADDENDUM
1. Acknowledge receipt on Bid Form of all addendums
I. BID OPENING
September 24, 2020 by 5:00pm, bids to be emailed to Jovana Amaro (Jamaro@orangecountync.gov)
J. COMPLETION TIME & PROJECT SCHEDULE
60 days upon project award to complete. Working to award before October 22, 2020
K. OBTAINING PLANS AND SPECIFICATIONS
1. Request from Angel Barnes (919) 610.8182 or abarnes@orangecountync.gov
L. REQUIRED BID SUBMITTALS
1. Completed Bid Form
2. Affidavit for E-Verify
M. RECOMMENDED ADDITIONAL BID SUBMTTALS
1. Unexpired Certificate of Insurance
N. SAFETY
1. Follow all OSHA, local, state and federal requirements
2. Hard Hats, Safety Glasses, & Proper Attire
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PRE-BID MEETING MINUTES
OC RFP No. 5289
Project Name: Motor Pool HVAC Installation
September 10, 2020 10:00 AM Orange County Motor Pool
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3. Dig Permit, Welding and Cutting Permit
4. Safe Plan of Action Reports
5. Weekly Tool Box Meeting
6. Fire Alarm System - (Protocol when working on or near)
7. Lead & asbestos awareness training
8. Contractor shall design and implement its own safety program to meet or exceed OC’s.
O. COMMISSIONING
1. Contractor’s responsibilities
P. SPECIAL CONSIDERATIONS
This facility will be occupied during construction.
All power outages are required to be approved. See attached “Request for Shutdown” form that must be
submitted in advanced for approval.
Contractor must be trained by FM Global in order to perform Hot Work. All Hot Work requires a permit
from Orange County for each day hot work is being performed. All permits have a minimum of a four (4)
hour fire watch.
Q. STAGING, ACCESS, PARKING, USE OF FACILITIES
Contractors shall provide facilities for employees.
Contractors shall provide work schedule.
Contractors shall provide drawing requesting staging and parking areas
R. CLEAN UP, PROTECTION OF THE PREMISES, & ENVIRONMENTAL CONSIDERATIONS
1. Temporary Protection, Barricades, Gates, Staging areas
2. Ingress / Egress to site and building
3. Air Quality (Control of Odors, Fumes, Noise, Dust, etc.)
4. Crane and major deliveries
5. Site cleaning
S. INSURANCE
1. Contractors are to provide and maintain Liability and Builders Risk coverage. Use of drones on
site requires aviation liability insurance coverage and FCC operator’s license.
T. CONTRACTS AND ADDITIONAL FORMS
1. Construction Contract Under 250K Final 11-19
2. Dispute Resolution Rules and Procedures for Orange County Design, Building Construction,
Renovation, and Repair Projects.
3. Orange County Hot Work Permit Process
4. Orange County Equipment Shutdown Request
5. Orange County Minimum Insurance Coverage Requirements
U. QUESTIONS
1. The building will remain in operation for the duration of this work. Firms shall plan to coordinate
all work with Orange County Project Manager and Motor Pool Management.
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OC RFP No. 5289
Project Name: Motor Pool HVAC Installation
September 10, 2020 10:00 AM Orange County Motor Pool
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V. SITE TOUR – Walked the site to view the locations for the new equipment.
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[Departmental Use Only]
TITLE
FY
NORTH CAROLINA
CONSTRUCTION AGREEMENT UNDER $250,000.00
ORANGE COUNTY
THIS CONSTRUCTION AGREEMENT (hereinafter called “Agreement”), made as of the
day of , 20 , by and between , (hereinafter called the “Contractor”), and Orange County,
a political subdivision of the State of North Carolina, (hereinafter called the “County,” “Orange County,”
and/or “Owner”).
W I T N E S S E T H:
That the Contractor and the Owner, for the consideration herein named, agree as follows:
1. CONTRACT DOCUMENTS; PRIORITY
The Contract Documents consist of this Agreement, the Request for Proposals, Proposal,
Construction Drawings, and Written Specifications. The Contract Documents form the Contract. In the
event of any inconsistency between or among the Contract Documents the Contract Documents shall be
interpreted in the following order of priority:
a. This Agreement.
b. Designer Approved Bulletins and/or Field Orders.
c. Request for Proposals and addenda thereto.
d. Proposal.
2. SCOPE OF WORK
The Contractor shall furnish and deliver all of the materials, and perform all of the work
required by this Agreement within the time period stipulated in a written Notice-to-Proceed to be
executed by the Contractor and Owner and in accordance with the following enumerated documents,
which are made a part hereof as if fully contained herein:
a. Construction Drawings prepared by (Sheet dated )
b. Written specifications prepared by the project engineer.
c. proposal dated , 20 which fully describes the work to be performed.
Such work will hereafter be called the “Work”.
d. Related documents listed under Section 1 above.
3. TERM AND SCHEDULING
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a. The Contractor agrees to commence work pursuant to the written Notice to Proceed.
b. The Contractor agrees to complete substantially all Work by , 20 .
c. Time is of the essence with respect to all dates specified in the Contract Documents as
Completion Dates.
d. The Contractor shall perform the Work in the time, manner, and form required by the
Contract Documents and as stipulated in a written Notice-to-Proceed to be executed by the
Contractor and Owner.
e. It is expressly understood that the Owner will employ other contractors to perform work as
a part of the Project whose work will be performed simultaneously and sequentially with
the performance of the Work by the Contractor. It shall be necessary for the Contractor to
coordinate its activities with such other contractors, particularly with respect to access to
work areas, storage of materials and other common facilities.
f. Should the Owner determine that the Contractor is behind schedule Owner may require, at
no additional cost to the Owner, the Contractor to expedite and accelerate its efforts,
including providing additional resources and working overtime, as necessary, to perform
the Work in accordance with the approved project schedule.
4. STANDARD OF CARE
a. The Contractor shall exercise reasonable care and diligence in performing the Work in
accordance with the highest generally accepted standards of this type of Contractor
practice throughout the United States and in accordance with applicable federal, state and
local laws and regulations applicable to the performance of these services. Contractor is
solely responsible for the professional quality, accuracy and timely completion and/or
submission of all work.
b. The Contractor shall not load or permit any part of the Work to be loaded with a weight
that will endanger its safety, intended performance or configuration.
c. Contractor shall be responsible for all errors or omissions caused by its employees, agents,
contractors, or assigns in the performance of the Agreement. Contractor shall correct any
and all errors, omissions, discrepancies, ambiguities, mistakes or conflicts at no additional
cost to the Owner.
d. Contractor is an independent contractor of Owner. Any and all employees of the
Contractor engaged by the Contractor in the performance of any work or services required
of the Contractor under this Agreement, shall be considered employees or agents of the
Contractor only and not of the Owner, and any and all claims that may or might arise under
any workers compensation or other law or contract on behalf of said employees while so
engaged shall be the sole obligation and responsibility of the Contractor.
e. If activities related to the performance of this Agreement require specific licenses,
certifications, or related credentials Contractor represents that it and/or its employees,
agents and subcontractors engaged in such activities possess such licenses, certifications,
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or credentials and that such licenses certifications, or credentials are current, active, and
not in a state of suspension or revocation.
f. The Contractor is responsible for all physical damage to owned or rented machinery, tools,
equipment, forms, and other items owned, rented or used by the Contractor and/or
Subcontractor(s) in the performance of the Work including all of Owner’s property in
Contractor’s care, custody, or control, and all such property while it is in transit.
g. The Contractor is solely responsible for obtaining all permits necessary to complete the
Work in compliance with all local, state, and federal laws.
5. PAYMENT & TAXES
a. The Owner hereby agrees to pay to the Contractor for the faithful performance of this
Agreement, and the Contractor hereby agrees to perform all of the Work for a sum not-to-
exceed Dollars ($ ). Not later than the fifth (5th) day of each calendar month
the Contractor shall submit to the Owner’s Representative, generally the architect if an
architect is retained on the Work, a Request for Payment for work done during the
previous calendar month.
i. The Request for Payment shall be in form of a standardized invoice or AIA
Document G702-703 appropriately addressed to Owner’s Representative at
and shall show substantially the value of work done during the previous calendar
month.
ii. The amount due for payment shall be ninety-five percent (95%) of the value of
work completed since the last Request for Payment and this amount shall be paid
by the Owner on or before the last business day of the month. Owner shall retain
five percent (5%).
1. Upon Owner’s Representative’s certification that ninety percent (90%) of
the Work has been satisfactorily completed retainage may be discontinued.
Retainage may be discontinued, at Owner’s Discretion, so long as work
continues to be completed satisfactorily and on schedule.
iii. Final payment shall not be due to the Contractor until thirty (30) days after one
hundred percent (100%) of the Work, including punch list work, has been
satisfactorily (as determined by the County) completed and an appropriate affidavit
as required in Section 7(c) below has been received by Owner.
b. Should Owner reasonably determine that Contractor has failed to perform the Work related
to a Request for Payment, Owner, at its discretion may provide the Contractor ten (10)
days to cure the breach. Owner may withhold the accompanying payment without penalty
until such time as Contractor cures the breach.
i. Should Contractor or its representatives fail to cure the breach within ten (10) days,
or fail to reasonably agree to such modified schedule, Owner may immediately
terminate this Agreement in writing, without penalty or incurring further obligation
to Contractor.
ii. This section shall not be interpreted to limit the definition of breach to the failure to
perform the Work related to a Request for Payment.
c. The Contractor has included in the Contract Price and shall pay all taxes assessed by any
authority on the Work or the labor and materials used therein. It shall be the Contractor's
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responsibility to furnish the Owner documentary evidence showing the materials used and
sales and use tax paid by the Contractor and each of its subcontractors.
6. INSURANCE AND BONDS
a. Minimum requirements – Contractor shall obtain, at its sole expense, Commercial General
Liability Insurance, Automobile Insurance, Workers’ Compensation Insurance, and any
additional insurance as may be required by Owner’s Risk Manager as such insurance
requirements are described in the Orange County Risk Transfer Policy and Orange County
Minimum Insurance Coverage Requirements (each document is incorporated herein by
reference and may be viewed at
http://www.orangecountync.gov/departments/purchasing_division/contracts.php). If
Owner’s Risk Manager determines additional insurance coverage is required such
additional insurance shall be designated here (if no additional insurance required
mark N/A as being not applicable). Contractor shall not commence construction work
until such insurance is in effect and certification thereof has been received by the Owner's
Risk Manager.
b. Performance Bonds – Contractor shall furnish bonds covering the faithful performance of
the Contract and payment of all obligations arising under any of the Contract Documents
or related in any way to the Work. Contractor shall immediately furnish a copy of such
bonds to any requesting person who appears to be a potential beneficiary of bonds
covering payment obligations arising under any of the Contract Documents. This
subsection 6(b) applies only to Contracts of fifty thousand dollars ($50,000.00) or more
where the total cost for the project is three hundred thousand dollars ($300,000.00) or
more.
7. INDEMNITY
a. To the extent authorized by North Carolina law the Contractor shall indemnify, without
limitation, and hold harmless to the maximum extent permitted by law the Owner and its
agents and employees from and against any and all claims, damages, loss es and expenses,
including attorney's fees, arising out of or resulting from the performance or
nonperformance of the Work, provided that any such claim, damages, loss or expense (A)
is attributable to bodily injury, sickness, disease or death or injury to, or destruction of,
property, including the loss of use resulting therefrom; and (B) is caused in whole or in
part by any breach of any provision of the Agreement or by any negligent or wrongful act
or omission of the Contractor, any Subcontractor, or supplier of the Contractor, anyone
directly or indirectly employed by any of them or anyone for whose acts any of them may
be liable. The indemnification obligation under this paragraph shall not be limited in any
way by any limitation of the amount or type of damages, compensation or benefits payable
by or for the Contractor or any subcontractor under workers' compensation acts, disability
benefits acts or other employee benefit acts. It is the intent of this section that the
Contractor shall indemnify the County to the maximum extent allowed by law.
b. The Contractor shall indemnify and hold harmless Owner from any lien of whatever type
through the purchase of appropriate bonds and insurance as designated in Section 6 above.
In the event any such lien is filed against Owner’s property Contractor shall, through such
bonds and insurance or at Contractors expense, defend Owner against all such claims of
lien.
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c. Upon completion of the Work the Contractor shall execute an affidavit stating there are no
unpaid debts for any work that has been done or materials that have been furnished to the
project prior to and as of the date of substantial completion and further stating that
Contractor shall indemnify, save and protect Owner and Owner’s lender, if any, harmless
from and against any and all claims, liabilities, losses, damages, causes of action, and
expenses (including court costs and reasonable attorney’s fees related thereto) arising out
of, in connection with, or resulting from any such debts and liens. Such indemnification
shall be in a form and substance acceptable to Owner.
d. By executing this Agreement Contractor agrees to abide by and be bound by the
indemnification provisions herein and of Section 7(c) specifically.
8. DISPUTE RESOLUTION AND GOVERNING LAW
a. Any dispute with respect to any provision of, or the performance or non-performance of,
this Agreement shall be subject to the Dispute Resolution Rules and Procedures for Orange
County Design, Building Construction, Renovation, and Repair Projects. The policy is
incorporated herein by reference and may be viewed at
http://www.orangecountync.gov/departments/purchasing_division/contracts.php).
b. The laws of the State of North Carolina shall apply to the interpretation and enforcement of
this Agreement. Any and all suits or actions to enforce, interpret or seek damages with
respect to any provision of, or the performance or nonperformance of, this Agreement or
the Contract shall be brought in the General Court of Justice of North Carolina sitting in
Orange County, North Carolina and it is agreed by the parties that no other court shall have
jurisdiction or venue with respect to such suits or actions.
c. Notice of any claim by Owner or Contractor must be initiated by written notice to the other
Party within thirty (30) days of the occurrence of the event giving rise to the claim or
within thirty (30) days of the discovery of the event or condition giving rise to the claim,
whichever is later.
i. Should any claim be made, regardless of whether such claim is made by Owner or
Contractor, Contractor shall continue to faithfully and diligently perform the Work
in such a manner as to meet all scheduled timelines. Any failure to faithfully and
diligently perform the Work may be deemed, by the Owner, a breach of the
Contract.
ii. If a claim is made such claim shall be made to the initial decision maker, if
applicable, who may request more supporting data, reject the claim in whole or in
part, approve the claim in whole or in part or advise the parties the claim is unable
to be resolved.
iii. If a claim is made by the Owner the Owner may, but is not obligated to, notify the
surety.
9. NON–APPROPRIATION
a. Contractor acknowledges that Owner is a governmental entity, and the validity of this
Agreement is based upon the availability of public funding under the authority of its
statutory mandate.
b. In the event that public funds are unavailable and not appropriated for the performance of
Owner’s obligations under this Agreement, then this Agreement shall automatically expire
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without penalty to Owner immediately upon written notice to Contractor of the
unavailability and non-appropriation of public funds. It is expressly agreed that Owner
shall not activate this non-appropriation provision for its convenience or to circumvent the
requirements of this Agreement, but only as an emergency fiscal measure during a
substantial fiscal crisis.
c. In the event of a change in the Owner’s statutory authority, mandate and/or mandated
functions, by state and/or federal legislative or regulatory action, which adversely affects
Owner’s authority to continue its obligations under this Agreement, then this Agreement
shall automatically terminate without penalty to Owner upon written notice to Contractor
of such limitation or change in Owner’s legal authority.
10. NOTICES
Any notice required by this Agreement shall be in writing and delivered by certified or registered
mail, return receipt requested to the following:
Owner: Contractor:
Orange County
Attn:
P.O. Box 8181
Hillsborough, NC 27278
11. MISCELLANEOUS
a. Duties and Obligations imposed by the Contract Documents shall be in addition to any
Duties and Obligations imposed by state, federal or local law, rules, regulations and
ordinances.
b. No act or failure to act by the Owner or Contractor shall constitute a waiver of any right or
duty granted them under the Contract Documents, nor shall any act or failure to act
constitute any approval except as specifically agreed in writing.
c. The Work shall be tested and inspected as required by the Contract Documents and as
required by law. Unless prohibited by law the costs of all such tests and inspections
related to state and federal codes such as ADA, Administrative, Electrical, Plumbing,
Mechanical and Building Codes shall be borne by the Contractor. The costs for material
and structural testing shall be conducted by an independent third party at the expense of the
Owner. Delays related to any of the aforementioned tests and inspections shall not be
grounds for delaying the completion of the work. If any such tests and inspections reveal
deficiencies in the Work such that the Work does not comply with terms or requirements
of the Contract Documents and/or the requirements of any code or law the Contractor is
solely responsible for the cost of bringing such deficiencies into compliance with the terms
of the Contract Documents and/or any code or law.
d. Should the Architect, if an architect is retained for the project involving the Work, or
Owner reject any portion of the Work for failing to comply with the Contract Documents
Contractor shall immediately, at Contractor’s expense, correct the Work. Any such
rejection may be made before or after substantial completion. If applicable, any additional
expense borne by the Architect under this section shall be paid at Contractor’s expense.
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e. The Contractor shall not assign any portion of this Agreement nor subcontract the Work in
its entirety without the prior written consent of the Owner.
f. By executing this Agreement Contractor affirms that Contractor and any subcontractors of
Contractor are and shall remain in compliance with Article 2 of Chapter 64 of the North
Carolina General Statutes.
g. By executing this Agreement Contractor certifies that Contractor has not been identified,
and has not utilized the services of any agent or subcontractor identified, on the list created
by the State Treasurer pursuant to G.S. 147-86.58.
h. By executing this Agreement Contractor certifies that Contractor has not been identified,
and has not utilized the services of any agent or subcontractor identified, on the list created
by the State Treasurer pursuant to G.S. 147-86.81.
i. The County has designated ( ) to act as the County's representative with respect to the
Work and shall have the authority to render decisions within guidelines established by the
County Manager and/or the County Board of Commissioners and shall be available during
working hours as often as may be reasonably required to render decisions and to furnish
information.
j. Contractor shall at all times remain in compliance with all applicable local, state, and
federal laws, rules, and regulations including but not limited to all state and federal non-
discrimination laws, policies, rules, and regulations and the Orange County Non-
Discrimination Policy and Orange County Living Wage Policy (each policy is incorporated
herein by reference and may be viewed at
http://www.orangecountync.gov/departments/purchasing_division/contracts.php). Any
violation of the Orange County Non-Discrimination Policy is a breach of this Agreement
and County may immediately terminate this Agreement without further obligation on the
part of the County. This paragraph is not intended to limit and does not limit the definition
of breach to discrimination.
k. This Agreement together with any amendments or modifications may be executed
electronically. All electronic signatures affixed hereto evidence the consent of the Parties
to utilize electronic signatures and intent of the Parties to comply with Article 11A and
Article 40 of North Carolina General Statute Chapter 66.
12. CONSEQUENTIAL AND LIQUIDATED DAMAGES
a. Owner and Contractor mutually waive any claim against each other for consequential
damages. Consequential Damages include:
i. Damages incurred by Owner for loss of use, income, financing, or business.
ii. Damages incurred by Contractor for office expenses, including personnel, loss of
financing, profit, income, business, damage to reputation, or any other non-direct
damages.
b. Liquidated damages shall be in accord with the Contract Documents. If the Contract
Documents do not otherwise address liquidated damages, such damages shall be in the
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8
amount of five hundred dollars ($500.00) per day.
13. TERMINATION OR SUSPENSION
a. The Owner may, without cause, order the Contractor to terminate, suspend, delay or
interrupt the Work in whole or in part for such period of time as the Owner may determine.
i. If Owner issues a written order to delay, suspend, or interrupt the Work, and such
order is not due to or as a result of any fault on the part of the Contractor or any
subcontractor, the Contractor may recover a per diem amount of five hundred
dollars ($500.00) per day with a not-to-exceed limit of ten thousand dollars
($10,000.00).
ii. In the event of termination by the Owner under this Agreement, the Contractor
shall be entitled to receive its reasonable and documented direct costs prior to
termination, including the cost of materials purchased for the Work which
purchases cannot be canceled or which material cannot reasonably be used by the
Contractor on other work, and the cost of closing down the work in a safe and
efficient manner.
iii. If Owner elects to suspend or terminate the contract pursuant to subparagraphs
13.a.i. or 13 a.ii. the sole remedy available to the Contractor are those listed in the
subparagraphs and Contractor is not entitled to any right to further claims for any
amount owed or disputed or for payment of damages alleged to have been sustained
as a result of Owner’s order to delay, suspend, or interrupt the Work.
b. The Owner may, with cause, order the Contractor to suspend, delay or interrupt the Work
in whole or in part for such period of time as the cause remains.
i. If Owner issues a written order to delay, suspend, or interrupt the Work, and such
order is due to or as a result of any fault on the part of the Contractor or any
subcontractor, the Owner may reduce payment at a per diem amount of five
hundred dollars ($500.00) per day.
c. Contractor may terminate the Contract if, at the Owner’s written direction, the Work is
stopped for twenty one (21) consecutive days through no act or fault of the Contractor,
their agents or employees, or a subcontractor or their agents or employees or any other
person performing work pursuant to the Contract Documents. Contractor may terminate
the Contract if a Court or other Public authority having jurisdiction enters a lawful order
that requires all work to be stopped and such stoppage lasts for twenty one (21)
consecutive days.
14. ENTIRE AGREEMENT
All of the documents listed, referenced or described in this Agreement, the written Notice-to-
Proceed, together with Modifications made or issued in accordance herewith are the Contract Documents,
and the work, labor, materials and completed construction required by the Contract Documents and all
parts thereof is the Work. The Contract Documents constitute the entire agreement between Owner and
Contractor. This Agreement may be amended only by written instrument signed by both parties.
Modifications may be evidenced by facsimile signatures. If any provision of the Agreement shall be
declared invalid or unenforceable, the remainder of the Agreement shall continue in full force and effect.
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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and
date first above written wholly or in a number of counterparts each of which shall, without proof or
accounting for other counterparts, be deemed an original contract.
ORANGE COUNTY CONTRACTOR
____________________________________ ________________________________________
Signature Signature
County Manager
________________________________________
Printed Name and Title
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10
ORANGE COUNTY—DEPARTMENT USE ONLY
______________________________________________________________________________
Party/Vendor Name: Party/Vendor Contact Person: Contact Phone: Party/Vendor Address: City
State: Zip: Department: Amount: Purpose: Budget Code(s): Vendor #
(N/A if new vendor) Vendor is a BOCC consultant? Yes No Contract Type: (Check one) New Renewal
Amendment Effective Date Approved by Board Yes No Agenda Date:
This agreement is approved as to technical form and content and I as Department Director affirmatively state work on this
project has not been initiated prior to execution of the agreement:
Department Director’s Signature ________________________________________ Date: ________
Agreements for emergency services or repair are not subject to the above affirmation. If services related to this agreement have
already begun or been completed please briefly describe the nature of the emergency condition that was addresse d:
Risk Management
This agreement is approved for sufficiency of insurance standards, specifications, and requirements:
Office of the Risk Management Officer___________________________________ Date: _________
Financial Services
This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act:
Office of the Chief Financial Officer ____________________________________ Date: _________
Legal Services
This agreement is approved as to legal form and sufficiency:
Office of the County Attorney __________________________________________Date: ________
Clerk to the Board
Received for record retention:
All Docusign contracts must be copied to Sherri Ingersoll upon completion: singersoll@orangecountync.gov
The following signature block is for hard copies only and is not required for Docusign contracts:
Office of the Clerk to the Board __________________________________________Date:_________
DocuSign Envelope ID: 83115E6C-E328-4C43-8E3A-42C2A7503DB8
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ORANGE COUNTY
NORTH CAROLINA
DISPUTE RESOLUTION RULES AND PROCEDURES FOR ORANGE COUNTY DESIGN, BUILDING
CONSTRUCTION, RENOVATION, AND REPAIR PROJECTS
RULE 1. INITIATING MEDIATED SETTLEMENT CONFERENCES
A. Purpose of Mandatory Settlement Conferences. Pursuant to G.S. §143-128(f1) and 143-
135.26(11), these Rules are promulgated to implement a mediated settlement program designed to
focus the parties’ attention on settlement rather than on claim preparation and to provide an
opportunity for orderly settlement negotiations to take place. Nothing herein is intended to limit or
prevent the parties from engaging in settlement procedures voluntarily at any time prior to or during
commencement of the dispute resolution process.
B. Initiating the Dispute Resolution Process
1. Any party to a County public construction contract (referred to herein generally as the
“Contract”) governed by Article 8. Ch. 143 of the General Statutes and identified in G.S. § 143-
128(f1) and who is a party to a dispute arising out of the Contract and the construction process
in which the amount in controversy is at least $15,000 may submit a written request to the
County for mediation of the dispute.
2. Prior to submission of a written request for mediation to the County, the party requesting
mediation should give notice of any and all claims in accordance with their respective contracts,
obtain decisions on the claims as required or allowed by their respective contracts, and attempt
to resolve the dispute according to the terms and conditions in their respective contracts. The
Mediator may adjourn any mediated settlement conference if the Mediator believes, in his or
her sole discretion, that the parties have not satisfied all of the terms and conditions of their
respective contracts and that doing so will enhance the prospects for a negotiated settlement.
C. Condition Precedent to Litigation. Before any party to a Contract may commence a civil action
against the County seeking remedies for breach or non-performance of the Contract by the County, said
party must first initiate the dispute resolution process under these rules and attend and participate in
good faith in the mediated settlement conference.
RULE 2. SELECTION OF MEDIATOR
A. Mediator Listing. A List of Mediators acceptable to the County is maintained by the County Attorney
and that list is incorporated by reference into these Rules.
B. Selection of Mediator. The party requesting mediation shall select a Mediator from the List of
Mediators and shall file, with the County, a Notice of Selection of Mediator within 21 days of the request
for mediation. Such notice shall state the name, address, and phone number of the Mediator selected. If
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the Mediator selected is not available or declines to participate for any reason, the requesting party
shall select another person from the List of Mediators. If the party requesting mediation does not select
and designate a mediator within 21 days of the request for mediation, the County shall have the right in
its absolute discretion to appoint a mediator from its List of Mediators.
C. Disqualification of Mediator. Any party may request replacement of the Mediator for good cause.
Nothing in this provision shall preclude Mediators from disqualifying themselves.
RULE 3. THE MEDIATED SETTLEMENT CONFERENCE
A. Where Conference is to be Held. Unless all parties and the Mediator otherwise agree, the mediated
settlement conference shall be held in county seat of Orange County. The Mediator shall be responsible
for reserving a place, making arrangements for the conference, and giving timely notice of the time and
location of the conference to all attorneys, unrepresented parties and other persons or entities required
to attend.
B. When Conference is to be Held. The mediation shall be completed within 90 days after selection of
the Mediator unless all parties to the mediation agree to a different schedule.
C. Request to Accelerate or Extend Deadline for Completion. Any party or the Mediator may request
the County to accelerate or extend the deadline for completion of the conference. Such request shall
state the reasons the acceleration or extension is sought and shall be served by the moving party upon
the other parties and the Mediator. Objections to the request must be promptly communicated to the
County and to the Mediator.
The County, with the concurrence of the designated Mediator, may grant the request by adjusting the
time for completion of the conference.
D. Recesses. The Mediator may recess the mediation conference at any time and may set times for
reconvening. If the Mediator determines the time and place where the conference is to reconvene
before the conference is recessed, no further notice is required to persons present at the conference.
E. Project Delay. The mediated settlement conference that results from a construction contract dispute
shall not be cause for the delay of the construction project.
RULE 4. DUTIES OF PARTIES AND OTHER PARTICIPANTS IN FORMAL DISPUTE RESOLUTION PROCESS
A. Attendance.
1. All parties to the dispute must designate an official representative to attend the mediation.
2. “Attendance” means physical attendance, not by telephone or other electronic means. Any
attendee representing a party must have authority from that party to bind it to any agreement
reached as a result of the mediation.
3. Attorneys representing parties may attend the mediation, but are not required to do so.
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4. Sureties and insurance company representatives are required to physically attend the
mediation unless the Mediator and all of the other parties to the mediation excuse their
attendance or consent to their attendance by telephone or other electronic means.
5. The parties who attend a duly scheduled mediation conference shall have the right to recover
their share of the Mediator’s compensation from any party or parties who fail to attend the
conference without good cause.
B. Finalizing Agreement. If an agreement is reached in the conference, the terms of the agreement shall
be confirmed in writing and signed by all parties.
C. Payment of Mediation Fee: Mediation Fees charged by the Mediator shall be paid in accordance with
G.S. § 143-128(f1).
D. Failure to Compensate Mediator. Any party’s failure to compensate the Mediators in accordance
with G.S. § 143-128(f1) shall subject that party to a withholding by the County of said amount of money
from the party’s payment or any other moneys owed by that party to the County.
Should the County fail to compensate the Mediator, it shall hereby be subject to a civil cause of action
from the Mediator for the County’s portion of the Mediator’s total fee as required by G.S. § 143-128(f1).
RULE 5. AUTHORITY AND DUTIES OF MEDIATORS
A. Authority of Mediator.
1.Control of Conference. The Mediator shall at all times be in control of the conference and the
procedures to be followed.
2.Private Consultation. The Mediator may communicate privately with any participant or
counsel prior to and during the conference. The fact that private communications have occurred
with a participant shall be disclosed to all other participants at the beginning of the conference.
3.Scheduling the Conference. The Mediator shall make a good faith effort to schedule the
conference at a time that is convenient with the participants, attorneys and Mediator. In the
absence of agreement, the Mediator shall select the date for the conference.
4.Determining good cause for a party’s failure to appear at a scheduled mediation conference.
B.Duties of Mediator.
1.The Mediator shall define and describe the following at the beginning of the conference:
a.The process of mediation.
b.The difference between mediation and other forms of conflict resolution.
c.The costs of the mediated settlement conference.
d.That the mediated settlement conference is not a trial, the Mediator is not a judge,
and the parties retain their legal rights if they do not reach settlement; however, the
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Mediator will advise all parties that failure to appear at mediation without good cause
may result in imposition of sanctions and may be asserted as a bar to lawsuits by
claimants who have failed to exhaust this administrative remedy.
e.The circumstances under which the Mediator may meet and communicate privately
with any of the parties or with any other person.
f.Whether and under what conditions communications with the Mediator will be held in
confidence during the conference.
g.The inadmissibility of conduct and statements as provided by G.S. §7A-38.1(1).
h.The duties and responsibilities of the Mediator and the participants.
i.That any agreement reached will be reached by mutual consent.
2. Disclosure: The Mediator has a duty to be impartial and to advise all participants of any
possible bias, prejudice or partiality.
3. Declaring Impasse: The Mediator may determine at any time during the mediation conference
that an impasse exists and that the conference should end.
4. Reporting Results of Conference. The Mediator shall submit a written report to the County
and the other parties within 10 days of the conference stating whether or not the parties
reached an agreement. The Mediator’s report shall indicate the absence of any party from the
mediated settlement conference without permission or good cause.
5. Scheduling and Holding the Conference. It is the duty of the Mediator to schedule the
conference and conduct it prior to the deadline of completion set by the rules. The Mediator
shall strictly observe deadlines for completion of the conference unless said time limit is
changed by agreement of the parties.
RULE 6. COMPENSATION OF THE MEDIATOR
The parties shall compensate the Mediator for mediation services at the rate proposed by the Mediator
and agreed to by the parties at the time the Mediator is selected.
RULE 7. RULE MAKING
These Rules may be amended by the County at any time. Amendments will not affect mediations where
claims and/or requests for mediation have been filed at the time the amendment takes effect.
RULE 8. DEFINITIONS
A. “County” shall mean Orange County North Carolina.
B. “Project Designer” is that person or firm stipulated as project designer in the Contract Documents for
the project.
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C. “Claim” is a demand or assertion by a party seeking adjustment or interpretation of Contract terms,
payment of money, extension of time or other relief with respect to the terms of the Contract. The term
“Claim” also includes other disputes and matters in question between the parties to a Contract involved
in the County’s building construction renovation and repair projects arising out of or relating to the
Contract or the construction process. Claims must be initiated by a written notice. The responsibility to
substantiate Claims shall rest with the party making the Claim.
D. “Good Cause” generally includes any circumstance beyond the control of a party, which prevents that
party from meeting obligations. When good cause is asserted as an excuse for a party’s failure to appear
at a mediation conference or to otherwise comply with the requirements of these Rules, the Mediator,
in his or her sole discretion, will determine whether good cause exists to excuse the party’s failure to
appear or otherwise comply with these rules.
RULE 9. TIME LIMITS
A. Any time limit provided for by these Rules may be waived or extended at the sole discretio n of the
County, if no Mediator has been selected, and at the discretion of the County with concurrence of the
Mediator if a Mediator has been selected.
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Request for Shutdown
Orange County, North Carolina
To be completed by the requester
Building: ____________________________________
Address: _ ___________________________
Project:________________________________________
Planned Start Date: ____________ Time: ___ Duration: _ ___________
Description of Work:
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Equipment to be shut down: _____________________________________________
Equipment / Services that will be interrupted by this shutdown:
_____________________________________________________________________________________
_____________________________________________________________________________________
Requested by: _ ___________________________________ Date: ________________
Title: _ ________________________________________________________________
To be completed by the owner/occupant of the affected area
When is the next available date for shutdown? __________________________
The above requested equipment shutdown is: __ Approved __ Denied
If the shutdown is denied, provide reason for denial
_____________________________________________________________________________________
_____________________________________________________________________________________
Orange County Area Owner _____________________________ Date _______________
Title ____________________________________
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HOT WORK PERMIT PROGRAM
COMPLIANCE WITH THIS PUBLICATION IS MANDATORY
OFFICE OF PRIMARY RESPONSIBILITY
This instruction establishes policy and procedures and assigns responsibilities and requirements
to ensure a comprehensive policy and program exists to perform work during new construction,
repair, renovations and/or alterations that require hot work. It applies to all Orange County
employees, contractors, and tenants on Orange County premises. Violations of this policy may
result in appropriate disciplinary action to include administrative actions such as written or
criminal prosecution under applicable North Carolina State Statue.
1. Objective.
To assess the risk associated with hot work and prevent loss by fire.
2. Definitions
2.1. Hot Work: Hot Work is defined as any temporary or permanent operation that
produces flames, sparks or heat. Hot work is not necessarily an occasional occurrence;
it is often conducted as part of production processes in normal manufacturing
operations. This includes, but is not limited to: cutting, grinding, brazing, welding,
sawing, soldering, thawing pipes, sweating pipes or applying roofing materials with
torches and sealing plastic shrink wrap.
2.2. Hot Work Shop: Any work shop that does hot work as part of its normal duties. Hot
Work Shops will be inspected by the Orange County Fire Marshal annually and the
shop will be given a "Hot Work Permit" for one year.
2.3. Hot Work Sites: Immediate area where hot work is to be accomplished. Includes all
areas adjacent (includes above, below, and next to work site) to, on opposite side of
wall surfaces, and an area encompassing a Thirty-five foot (35 ft.) radius around the
immediate area where hot work is to be performed.
2.4. Hot Work Permit Form: A Hot Work Permit is a three-part form issued for all hot
work. The Hot Work Permit Form may be obtained from project managers with Asset
Management & Solid Waste Management and will be the only recognized form for use.
2.5. Non-Permissible Areas
2.5.1. See NFPA 51B:5.3
2.5.1.1. Hot Work Shall not be permitted in the following areas:
2.5.1.1.1. In areas not authorized by management
2.5.1.1.2. In sprinklered buildings where sprinklers are impaired, unless the requirements
of NFPA 25, et al, are met.
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2.5.1.1.3. In the presence of explosive atmospheres (i.e. where mixtures of flammable
gases, vapors, liquids, or dust with air exists)
2.5.1.1.4. In the presence of unclear or improperly prepared equipment, drums, tanks, or
other containers that previously contained materials that could develop
explosive atmospheres
2.5.1.1.5. In areas with an accumulation of combustible dusts that could develop explosive
atmospheres.
2.5.2. Devices: Devices refer to any smoke detector, heat detector, duct smoke detector,
beam detector or any other fire alarm system detection device that might require
deactivation during hot work. (Manual fire alarm pull stations will not be
deactivated during hot work.)
2.5.3. Device Number(s):
2.5.4. Addressable Fire Alarm Systems: Device Number refers to the individual number
assigned to each detection device that might be impacted by Hot Work.
2.5.5. Conventional Hard Wired Systems: detection devices are not given an individual
number; the Fire Zone along with room locations should be utilized.
2.6. Fire Safety Supervisor: Is responsible for enforcing the hot work policy, activities of
fire watch and all outside contractors.
2.6.1 First and foremost, he or she has to decide if there is a safer way to complete the
job or if hot work is the only option.
2.6.2 If hot work is the only option, determine if hot work can be performed in the area
identified. Hot work must be prohibited in any area where the hazard cannot be
eliminated or controlled. “No hot work” signs should be clearly posted.
2.6.3 If there is no alternative to hot work and the area in question is fire-safe, the fire
safety supervisor authorizes the hot work by issuing FM Global’s Hot Work Permit.
The job is then discussed with the person performing fire watch and hot work
operator after following the precautions identified on the permit.
2.6.4 Oversees and manages the activities of the fire watch and outside contractors,
providing approval signatures as required on the permit.
2.6.5 Once a decision has been made to use the hot work permit form, the fire safety
supervisor shall work with the contractor performing hot work to complete Part 1
and issue the permit. The second page shall be taken out, scanned and electronically
sent to Orange County Fire Marshal’s Office. The copy shall be retained with project
management. The risk manager shall be notified of any hot work in Orange County
facilities by email and telephone. 919-245-2155. acornetto@orangecountync.gov
2.7 Fire Watch: The job of the fire watch is to prevent fire and be ready to respond if one
starts with the following duties:
Stays near the person performing the hot work
Closes all fire doors
Makes sure the work area remains free of combustibles and tarpaulins are not
moved
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Pays particular attention to hot work jobs at elevated locations, on the building
roof, on walls or inside buildings with multiple floors; these areas often are not
watched carefully enough and frequently have ignited from stray sparks smoldering
long after workers have left the job site
Never leaves the area while work is in progress or during breaks, such as lunch,
unless relieved by a qualified replacement
Stops the hot work if improper conditions develop
Is ready to sound the alarm and use an ext inguisher or fire hose if a fire starts
After completion of the Hot Work, a selected trained individual with an appropriate
fire extinguisher provided by the contractor doing work must remain in the immediate
area of the Hot Work to ensure that a fire does not start. Fire Watch must be
maintained constant for 1 hour after the completion of hot work and every half-hour
for the additional 3 hours. If smoldering is detected the Fire Watch will follow the RACE
procedures:
R Remove persons from danger
A Activate the fire alarm system
C Close all windows and doors
E Extinguish the fire or evacuate the area.
3 Procedures
3.6 Supervisors, Project Managers, and Contractors will determine if welding, cutting,
soldering and/ or heating is absolutely necessary as part of the project or work order and
there are no alternative options to complete the job. If hot work is required, it will be the
responsibility of the supervisor, project manager, or contractor to determine if the work
can be performed outside the facility. Hot Work conducted outside still requires a
permit be obtained. If outside, maintain a minimum of 35ft away from any structure or
other combustible. If hot work cannot be completed outside the facility, a Hot Work
Permit is required and will be completed in accordance with the procedures in Part 1 of
the hot work permit.
3.7 Regardless of completing the work outside or inside the facility, the general fire safety
guidelines outlined in this section shall be followed.
3.8 Permit Issue: Hot Work Permits can be issued by Asset Management project manager or
designee. Hot Work Permits shall be requested at least 24 hours or last working day in
advance of needed work.
3.9 Individuals issuing Hot Work Permits will ensure that:
3.9.1 Hot work site is acceptable for Hot Work and that there are no excessive
combustibles or combustible/flammable liquids in the hot work area;
3.9.2 Individual(s) performing the Hot Work understand the minimum safety precautions
as outline on the Hot Work Permit by completing the appropriate blocks on the
form;
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3.9.3 A copy of the Hot Work Permit is forwarded to the Orange County Fire Marshal
Division prior to starting any hot work; unless it is deemed “emergency work”, but
still must be approved by Asset Management Project Manager.
3.9.4 Original copy of the Hot Work Permit is posted in the hot work area in clear view;
3.9.5 If a Fire Watch is required that the appropriate information is completed on the Hot
Work Permit Form.
3.9.6 Hot Work Permits are issued on a day-to-day basis, with the exception of designated
“Hot Work Zones”. Hot Work Zones are approved by the Orange County Fire
Marshal Division after a site visit, and are typically granted for long-term projects
only. A “Hot Work Zone” permit may be issued for work requiring daily hot work
over a lengthy period of time.
4 Notification:
4.6 It is the responsibility of the individual performing the Hot Work to ensure that Asset
Management notifies the appropriate fire alarm monitoring company, Orange County’s
insurance carrier through the risk manager and the Orange County Fire Marshal Division
to the initiation and upon completion of any Hot Work.
5 Enforcement:
5.6 Orange County Fire Marshal Division has the responsibility to spot check hot work
permits to ensure compliance. Permits may be revoked if the safety precautions have
been violated.
5.7 The Asset Management Department has the responsibility to ensure only trained and
certified personnel complete the Hot Work permit and that only qualified individuals
perform Hot Work.
5.8 A designated Hot Work Supervisor must be onsite during all Hot Work Operations
6 Training:
6.6 All Orange County personnel that issue, spot check or perform hot work shall complete
online annual training and obtain certification. All contractors that perform hot work
shall complete online annual training. No individual may complete a Hot Work Permit or
perform hot work without this certification. Asset Management will maintain all records
of training completion. Go to
https://fmglobaltraining.skillport.com/skillportfe/custom/login/fmglobal/fmgloballogin.a
ction?path=fmglobal/login/FmglobalLoginAction&lang=en for access to the program.
Once logged in the FM Global’s Client Training Center, type hot work in the Search bar
and press Search. Take the Managing Hot Work Using FM Global’ s Hot Work Permit
System and How To Fill Out A Hot Work Permit. A copy of your certificate shall be
submitted to Asset Management.
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7 Coordination and Approval
7.6 Any requested changes to this policy will be coordinated with Asset Management, Risk
Management and the Orange County Fire Marshal prior to the change being
implemented
7.7 All departments annotated below have coordinated and given their approval via
signature to this Hot Work Program Operating Instruction
7.8 Asset Management Project Managers or are to sign with their approval, the Hot Work
Permit, indicating that the site has been inspected for safety prior t o work, as instructed
on the Hot Work Form, and that a Fire Watch will be maintained by trained personnel or
approved methods (i.e. detection systems in working order). The signee assumes
responsibility for the work site and workers.
DocuSign Envelope ID: 83115E6C-E328-4C43-8E3A-42C2A7503DB8
Orange County Minimum Insurance Coverage Requirements
Note: An Exception or Waiver of Minimum Coverage may only be granted at the discretion and approval of Risk Management based on assessment of risk posed to the county.
Coverage Low Risk Profile Standard Risk Profile High Risk Profile Specialty Encroachment Premises Lease
Commercial General Liability
Products/Completed Operation Explosion,
Collapse & Underground (XCU)
$1,000,000/$2,000,000
Per accident
As above
$1,000,000/$2,000,000
As Above
If any, Limit to be determined.
$1,000,000/$2,000,000
As above
If any, TBD.
$1,000,000*
As Above
If any, TBD.
$1,000,000
$1,000,000
Automobile Liability
$1,000,000 (CSL)
Per occurrence
$1,000,000* $1,000,000* $1,000,000* N/A N/A
**Workers’ Compensation Statutory Statutory Statutory Statutory N/A Statutory
**Employer’s Liability 100/500/100 500/500/500* 500/500/500 500/500/500* N/A 100/500/100
** Waiver of Subrogation on WC Required if available Required if available Required Required N/A N/A
Umbrella Liability $1,000,000 $2,000,000 $2,000,000+ $9,000,000+ N/A N/A
Professional Liability may be required
on a risk profile depending on nature of
services provided by contract. Coverage
required for professional service such
as accountant, attorney, architect,
design, engineering, health care and
most consultants.
$1,000,000 per
occurrence
$1,000,000 TBD TBD N/A N/A
Sexual Misconduct (Sexual
Abuse/Molestation) may be required
for contractors working directly one-on-
one with children and elderly or in
overnight sheltering capacities.
$1,000,000/$2,000,000 $1,000,000/$2,000,000 TBD TBD N/A TBD
Cyber Liability may be required for
contractors having access to personal
identifying information, and/or
computer networks.
$1,000,000/$2,000,000 TBD TBD TBD N/A
Environmental/Pollution Liability
required if demolition, use of
N/A $1,000,000 $1,000,000+* $1,000,000+* N/A N/A
DocuSign Envelope ID: 83115E6C-E328-4C43-8E3A-42C2A7503DB8
Orange County Minimum Insurance Coverage Requirements
Note: An Exception or Waiver of Minimum Coverage may only be granted at the discretion and approval of Risk Management based on assessment of risk posed to the county.
hazardous material or environmentally
sensitive
Fidelity Bond (loss of money or other
property due to dishonest acts). Only
for contracts such as Banking, Janitorial,
Fundraising, TPA’s and similar, ETA
TBD Amount depends on exposure
to loss
TBD TBD N/A N/A
Other Coverage As required TBD TBD TBD TBD N/A N/A
Bid, Performance & Payment Bonds TBD TBD TBD TBD N/A N/A
*A combination of Umbrella/Excess and primary limit may be used to provide coverage for the amount shown.
** Workers’ Compensation is required if the contractor/vendor has employees. Owner Waiver is acceptable for a Sole Proprietor.
DocuSign Envelope ID: 83115E6C-E328-4C43-8E3A-42C2A7503DB8