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Bonds And Insurance
ARTICLE 5 - BONDS AND INSURANCE
5.1 Performance and Payments Bonds. CONTRACTOR shall furnish Performance and Payment Bonds, each in an amount at least equal to one-hundred percent (100%) of the Contract Price as security for the faithful performance and payment of all CONTRACTOR's obligations under the Contract Documents. These Bonds shall remain in effect at least until one (1) year after the date when final payment becomes due, except as otherwise provided by Law or Regulation or by the Contract Documents. All Bonds shall be in the forms prescribed by Law, Regulation, and the Contract Documents and be executed by such Sureties as (i) are licensed to conduct business in the State of Indiana, and (ii) are named in the current list of "Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies" as published in Circular 570 (amended) by the Audit Staff Bureau of Government Financial Operations, U.S. Treasury Department. All Bonds signed by an agent must be accompanied by a certified copy of the power of attorney or other instrument establishing the agent's authority.
5.2 Maintenance Bond. CONTRACTOR shall, as a condition to OWNER's obligation to make final payment, supply a three (3) year Maintenance Bond executed by a surety meeting the qualifications set forth in the preceding Section and in such form as prescribed by the Contract Documents, which bond shall secure the obligations contained in Section 12.7, beginning on the date of Final Acceptance in an amount equal to ten percent (10%) of the contract amount as adjusted for Change Orders or such different percentage as may be specified by other Contract Documents.
5.3 Substitute Bonds. If the Surety on any Bond furnished by CONTRACTOR becomes a party to a supervision, liquidation, rehabilitation or other similar action, or if its right or lawful authority to do business in the State of Indiana is terminated, CONTRACTOR shall, within ten (10) days thereafter substitute another Bond and Surety, both of which must be acceptable to OWNER. Failure of CONTRACTOR to obtain a substitute Bond shall constitute a material breach of Contract and may at the option of OWNER result in the termination of the Contract upon the ground of CONTRACTOR's default.
5.4 CONTRACTOR's Liability Insurance. CONTRACTOR shall purchase and maintain such commercial general liability and other insurance as is appropriate for the Work being performed and furnished and as will protect CONTRACTOR, OWNER and ENGINEER, their employees, officers, or agents from (i) claims under workers' or workmen's compensation, disability benefits and other similar employee benefit acts; (ii) claims for damages because of bodily injury, occupational sickness or disease, or death of CONTRACTOR's employees; (iii) claims for damages because of bodily injury, sickness or disease, or death of any person other than CONTRACTOR's employees; (iv) claims for damages insured by personal injury liability coverage which are sustained by any person as a result of an offense directly or indirectly related to the employment of such person by CONTRACTOR, or by any other person for any other reason; (v) claims for damages, other than to the Work itself, because of physical injury to or destruction of tangible property wherever located, including loss of use resulting therefrom; (vi) claims arising out of operation of Laws or Regulations for damages because of bodily injury or death of any person or for damage to property; and (vii) claims for damages because of bodily injury or death of any person or property damage arising out of the ownership, maintenance or use of any motor vehicle, which may arise out of or result from CONTRACTOR's other obligations under the Contract Documents, whether it is to be performed or furnished by CONTRACTOR, by any Subcontractor, by anyone directly or indirectly employed by any of them to perform or furnish any of the Work, or by anyone for whose acts any of them may be liable.
5.4.1 The insurance required by this Section shall be written for not less than the limits of liability and coverages as provided herein or as required by Law, whichever is greater. The Commercial General Liability Insurance shall include coverage of (i) Premises and operations, (ii) Contractual liability as applicable to any indemnification hold harmless agreements in the Contract, (iii) Products and Completed Operations, with completed operations coverage being maintained for a period of one (1) year after final payment and CONTRACTOR shall continue to provide evidence of such coverage to OWNER during the aforementioned period, (iv) Broadform Property Damage - including completed operations, (v) Fellow Employee claims under Personal Injury; and (vi) Independent contractors. Such insurance shall specifically include coverage for property damage from explosion, collapse, and underground operations. Coverage for explosion, collapse, and underground operations shall include blasting or explosion, collapse of structures or structural injury due to grading of land, excavation, filling, back filling, tunneling, pile driving, caisson work, moving, shoring, underpinning, raising of or demolition of any structure, or removal or rebuilding of any structural support of a building or structure. Such insurance shall further include coverage for damage to wires, conduits, pipes, mains, sewers, or other similar apparatus encountered below the surface of the ground when such damage is caused by any occurrence arising out of the performance of the Work, performed by CONTRACTOR or by any Subcontractor or anyone directly or indirectly employed by either.
5.4.2 The CONTRACTOR's insurance shall be written for not less than the following limits of liability:
| 1 Workers Compensation & Disability: |
Statutory Limits |
| 2 Employer's Liability |
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(i) Bodily Injury by Accident:
(ii) Bodily Injury by Disease:
(iii) Bodily Injury by Disease: |
$ 100,000 each accident
$ 500,000 policy limit
$ 100,000 each employee |
| 3 Commercial General Liability (Occurrence Basis) Bodily injury, personal injury, property damage, contractual liability, products-completed operations. NOTE: GENERAL AGGREGATE TO APPLY PER LOCATION/PROJECT |
(i) General Aggregate Limit (other than
Products/Completed Operations):
(ii) Products/Completed Operations:
(iii) Personal & Advertising Injury |
$2,000,000
$2,000,000 |
Limit:
Each Occurrence Limit:
Fire Damage (any one fire):
Medical Expense Limit (any one person): |
$1,000,000
$1,000,000
$ 50,000
$ 5,000 |
4 Comprehensive Auto Liability
(single limit)
(owned, hired and non-owned)
Bodily injury and property damage |
$1,000,000 each accident |
| 5 Umbrella Excess Liability |
$5,000,000
each occurrence and aggregate |
The Deductible on the Umbrella
Liability shall not be more than |
$10,000 |
5.4.3 CONTRACTOR shall be responsible for paying all deductible amounts.
5.4.4 Before commencing work, CONTRACTOR shall submit a "Certificate of Insurance" indicating the above necessary coverages as well as naming OWNER, its employees and representatives and ENGINEER as "Additional Insureds" on all policies except Workers' Compensation to OWNER for review and approval. Such insurance shall be carried with financially responsible insurance companies authorized to do business in the State of Indiana, have a general policyholder's rating of A+, A, or A-, in the latest edition of Alfred M. Bests Insurance Reports and be satisfactory in form and coverage to OWNER and ENGINEER. Such coverages shall be kept in force until final payment and at all times thereafter when CONTRACTOR may be correcting, removing or replacing Defective work in accordance with Section 12.7. CONTRACTOR's insurer(s) shall provide by Certified Mail OWNER and ENGINEER with sixty (60) days prior written notice in the event of cancellation, non-renewal or material change in the policies. If required by OWNER, CONTRACTOR shall also provide copies of all underlying insurance policies for certificates required above.
5.4.5 The Commercial General Liability insurance required by this Section shall include contractual liability insurance applicable to CONTRACTOR's indemnity and hold harmless obligations under Sections 6.12, 6.16, 6.24, and 7.3.
5.5 OWNER's Protective Insurance. CONTRACTOR shall procure and maintain OWNER's Protective Insurance as will, in OWNER's opinion, protect OWNER from any contingent liability to others or damages because of bodily injury, including death and property damage, which may arise from operations under this Contract. Said insurance shall be procured from the same insurance company as is providing insurance for CONTRACTOR's Commercial General Liability insurance. The limits of the insurance to be procured shall be $5,000,000 per occurrence and $5,000,000 aggregate. CONTRACTOR shall furnish OWNER the original policy.
5.6 Property Insurance. CONTRACTOR shall purchase and maintain a combination Installation/Builder's Risk Insurance to the full insurable value to the initial contract cost and any subsequent modifications thereto on an all risks policy form against the perils of fire and extended coverage, theft, vandalism, malicious mischief, collapse, false work, testing, temporary buildings and debris removal including demolition work occasioned by enforcement of any applicable legal requirements and shall cover reasonable OWNER and ENGINEERS services and expenses required as a result of such insured loss on a replacement cost basis without any deduction for depreciation or voluntary deductibles. This property insurance shall cover work stored off site as well as any work in transit. CONTRACTOR shall be responsible for the satisfaction of any deductible level it selects. OWNER is given the privilege to occupy and use the facilities as completed pending acceptance by the OWNER of the entire Project. The insurance specified by this Section shall include as named insureds CONTRACTOR and his subcontractors and all other parties named as insureds, as their interest may appear. This insurance is not intended to cover the tools, equipment and other such property of CONTRACTOR or his Subcontractors in performing the Work which is normally covered by such person's own property insurance which are not incorporated in the Project. The risk of loss as to all such property shall be borne by those parties, and they shall carry such insurance on such property as they shall determine.
5.7 Waiver of Subrogation. OWNER and CONTRACTOR waive all rights against (1) each other and any of their subcontractors, sub-subcontractors, agents and employees each of the other, and (2) ENGINEER, ENGINEER'S consultants for damages caused by fire and other perils to the extent covered by property insurance obtained pursuant to this Article, except such rights as they have to proceeds of such insurance held by CONTRACTOR as fiduciary. OWNER or CONTRACTOR, as appropriate, shall require of ENGINEER, ENGINEER'S consultants and the subcontractors, sub-subcontractors, agents or employees of them by appropriate agreement, written where legally required for validity, similar waivers each in favor of other parties enumerated herein. The policies shall provide such waivers of subrogation by endorsement or otherwise. A waiver of subrogation shall be effective as to a person or entity even though that person or entity would otherwise have a duty of indemnification, contractual or otherwise, did not pay the insurance premium directly or indirectly, and whether or not the person or entity had a insurable interest in the property damaged. CONTRACTOR shall require similar waivers from his subcontractors as required by Section 6.11 prior to their commencing operation. This provision shall not release CONTRACTOR from his obligation to complete the Project according to the Contract Documents and the CONTRACTOR and his surety shall be obligated to full performance of CONTRACTOR's undertaking.
5.8 Acceptance of Insurance. If OWNER has any objection to the coverage afforded by or other provisions of the insurance required to be purchased and maintained by CONTRACTOR in accordance with this Article, on the basis of its not complying with the Contract Documents, OWNER will notify CONTRACTOR in writing thereof within ten (10) days of the date of delivery of such certificates to OWNER in accordance with Section 2.2. CONTRACTOR shall provide to OWNER such additional information in respect to insurance provided by CONTRACTOR as OWNER may reasonably request. Failure by OWNER to give any such notice of objection within the time provided shall constitute acceptance of such insurance purchased by CONTRACTOR as complying with the Contract Documents. With the prior approval of OWNER, CONTRACTOR may substitute different types or amounts of coverage for those specified as long as the total amount of required protection is not reduced.
5.9 Partial Utilization Property Insurance. If OWNER finds it necessary to occupy or use a portion or portions of the Work prior to Substantial Completion of all the Work, such use or occupancy may be accomplished in accordance with Section 13.12; provided that no such use or occupancy shall commence before the insurers providing the property insurance have acknowledged notice thereof and in writing effected the changes in coverage necessitated thereby. The insurers providing the property insurance shall consent by endorsement on the policy or policies, but the property insurance shall not be canceled or lapse on account of any such partial use or occupancy.
5.10 No Limit To Liability. Nothing in this Article shall operate or be construed as limiting the amount of liability of CONTRACTOR to the above enumerated amounts.
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