Payment by the Municipality under its contracts shall be made in accordance with the procedure established in this section for the several improvements included herein. Any improvements not included in this section shall be made in the manner agreed upon between the City and the contractor in the contract for the improvement or construction to be made.
For a general contract of Municipal engineering construction for sewers, either storm or sanitary, or a combination thereof, water mains and appurtenances, sidewalks, surface treatment of streets and the repairs thereof, pavement and appurtenances thereto and any other public improvements, the method and schedule of payment shall be as follows:
(a) Approximate Estimates; Partial Payments. The Director of Engineering will have made within the first ten days of each month an approximate estimate of the amount and value of acceptable work done and put in place and of the materials incorporated into the work during the previous calendar month. More frequent estimates may, at the option of the Director, be made at any time during the progress of the work, and payment may at the time be withheld if the work is not proceeding in a manner satisfactory to the Director and in accordance with such contract. After such estimates have been approved by the Director, partial payments will be made to the contractor for acceptable work performed and put in place under unit and lump sum price items based on the principal features entering into or forming a part of the work.
Partial payments to the contractor for labor performed under the contract will be made at the rate of ninety-two percent (92%) of the estimates prepared and approved. After all estimates of materials that are furnished and delivered but not actually entered into and made a part of the contract have been made, and after the same have been inspected and approved by the Director, there will be paid a sum equal to ninety-two percent (92%) of such estimated value as is shown by invoice. Thereupon such material shall become the property of the City. However, this provision shall not be construed as relieving the contractor from the sole responsibility for the care and protection of materials and work upon which payments have been made or for the restoration of any damaged work or as a waiver of the right of the City to require fulfillment of all of the terms of the contract.
The amount of such estimates, after deducting former payments, will be payable after the approval by the City, provided no legal restraints are placed upon the City preventing payment, but the allowance of such estimates shall not be deemed as acceptance of the work or materials therein included.
(b) Final Estimate. The Director shall, as soon as practical after the completion of the entire work by the contractor and its acceptance by the Director, make a complete and final estimate of the work done. Such final estimate, after deducting therefrom all previous payments and the amount to be retained upon such contract as a guarantee, shall be due the contractor after such completion and acceptance, provided the same is free from all claims for labor and material under these specifications that might in any manner become a lien upon such work or upon the City. The acceptance by the contractor of such final estimate shall constitute a release to the City and to all officers or agents thereof from all claims and liability of the contractor for any reason except claims for final payment provided for herein.
All prior partial estimates shall be subject to correction in the final estimate. The final estimate shall be subject to correction upon payment of the retainer.
(Ord. 1976-147. Passed 10-7-76.)
(c) Posting Bond; Guarantee Fund. The contractor shall guarantee all materials and workmanship furnished under these specifications by posting a bond in the amount of ten percent of the contract price for a period of two years after the completion and final acceptance by the City. During this time, the City shall retain an amount equal to four percent of the total contract price as a guarantee upon the part of the contractor that the work will remain in good sound condition during the first six months. If, however, any work done under the contract or any adjacent property damaged by this work requires repairs, replacement or backfilling, in the opinion of the Director, the contractor shall furnish all materials and do all work at his own expense. Should the contractor fail to do so within a reasonable time after notification, the City may have such work done and pay the cost of such work out of such four percent (4%) guarantee fund or bond. Should the cost exceed such sum, the contractor shall pay the amount of the excess to the City.
Upon the expiration of the first six months, after acceptance, the City shall, provided that all the work at that time is in good order and that all obligations of the contractor are fulfilled, pay to the contractor such part of the above mentioned sum retained as may remain after the expense of all repairs, replacements or backfilling has been paid therefrom. The acceptance by the contractor of such final payment shall constitute a release to the City and to all officers and agents thereof from all claims and liability of the contractor for any reason. At the expiration of the two-year period after acceptance, provided that at that time all the work is in good order and that all obligations are fulfilled, the maintenance bond shall be released.
(Ord. 1994-192. Passed 9-15-94.)