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24-086 Rodan Builders for Installation of bollards for the materials bunkerPublic Works Project: Installation of bollards for the materials bunker
Public Works Contract / April 2024
Page 1 of 12
PUBLIC WORKS CONTRACT
$200,000 OR LESS
1. PARTIES
This public works contract (“Contract”) is made by and between the City of Cupertino (“City”), and
Rodan Builders Inc, a Corporation (“Contractor”) for installation of bollards for the materials bunker,
and is effective on the last date signed below (“Effective Date”).
2. SCOPE OF WORK
Contractor will perform and provide all labor, materials, equipment, supplies, transportation and any
other items or work necessary to perform and complete the work required for the Project (“Work”),
as required in the Scope of Work, attached here and incorporated as Exhibit A, and in accordance
with the terms and conditions of this Contract. Contractor further agrees to carry out its work in
compliance with any applicable local, State, or Federal order regarding COVID-19.
3. TIME FOR COMPLETION
3.1 Term. This Contract begins on the Effective Date and ends on December 31, 2024
(“Contract Time”) unless terminated earlier as provided herein. Contractor’s Work shall begin on the
date shown on a written Notice to Proceed (“NTP”) and must be fully completed within the Contract
Time or on the date specifically provided in the Notice to Proceed. The City Engineer will not issue
a NTP until the Contract is fully executed by both parties and City has received satisfactory proof of
insurance and any performance and payment bonds that may be required. The Director of Public
Works may authorize the extension of the Contract Time by up to sixty (60) calendar days through a
written amendment to this Agreement, provided such extension does not include additional contract
funds.
3.2 Time is of the essence for Contractor’s performance and completion of the Work.
Contractor must have sufficient time, resources, and qualified staff to deliver the work on time.
3.3 Liquidated damages of $100.00 will be charged for each day of unexcused delay, or City may
deduct the amount from Contractor’s payments. Liquidated damages are based on reasonably
foreseeable consequences of delay and may include intangible losses which the Parties agree may be
difficult to ascertain, such as loss of public confidence in City and its contractors, interference or loss
of use of public facilities, and extended disruption to the public.
4. COMPENSATION
4.1 Maximum Compensation. City will pay Contractor for satisfactory performance of the
Work an amount that will based on actual costs but that will be capped so as not to exceed $7,800.00
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Public Works Contract / April 2024
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(“Contract Price”), for all of Contractor’s direct and indirect costs, including all labor, materials,
supplies, equipment, taxes, insurance, bonds, and all overhead costs.
4.2 Invoices and Payments. Contractor must submit an invoice on the first day of each month,
describing the Work performed during the preceding month, itemizing labor, materials, equipment
and any incidental costs incurred. Contractor will be paid ninety-five percent (95%) of the undisputed
amounts billed within thirty (30) days after City receives a properly submitted invoice. Any retained
amounts will be included with Contractor’s final payment within sixty (60) days of City’s acceptance
of the Work as complete.
5. INDEPENDENT CONTRACTOR
5.1 Status. Contractor is an independent contractor and not an employee of City. Contractor is
solely responsible for the means and methods of performing the Work and for the persons under
this employment. Contractor is not entitled to worker’s compensation or any other City benefits.
5.2 Contractor’s Qualifications. Contractor warrants on behalf of itself and its subcontractors that
they have the qualifications and skills to perform the Work in a competent and professional manner and
according to the highest standards and best practices in the industry.
5.3 Permits and Licenses. Contractor warrants on behalf of itself and its subcontractors that they
are properly licensed, registered, and/or certified to perform the Work as required by law, and have
procured a City Business License, if required by the Cupertino Municipal Code. Contractor shall
possess a California Contractor’s License in good standing for the following classification(s): Class A,
which must remain valid for the entire Contract Time.
5.4 Subcontractors. Only Contractor’s employees are authorized to work under this Contract.
Prior written approval from City is required for any subcontractor, and the terms and conditions of
this Contract will apply to any approved subcontractor.
5.5 Tools, Materials, and Equipment. Contractor will supply all tools, materials and
equipment required to perform the Work under this Contract.
5.6 Payment of Benefits and Taxes. Contractor is solely responsible for the payment of
employment taxes incurred under this Agreement and any similar federal or state taxes. Contractor and
any of its employees, agents, and subcontractors shall not have any claim under this Agreement or
otherwise against City for seniority, vacation time, vacation pay, sick leave, personal time off, overtime,
health insurance, medical care, hospital care, insurance benefits, social security, disability,
unemployment, workers compensation or employee benefits of any kind. Contractor shall be solely
liable for and obligated to pay directly all applicable taxes, fees, contributions, or charges applicable to
Contractor’s business including, but not limited to, federal and state income taxes. City shall have no
obligation whatsoever to pay or withhold any taxes or benefits on behalf of Contractor. In the event that
Contractor or any employee, agent, or subcontractor of Contractor providing services under this
Agreement is determined by a court of competent jurisdiction, arbitrator, or administrative authority,
including but not limited to the California Public Employees Retirement System (PERS) to be eligible
for enrollment in PERS as an employee of City, Contractor shall indemnify, defend, and hold harmless
City for the payment of any employee and/or employer contributions for PERS benefits on behalf of
Contractor or its employees, agents, or subcontractors, as well as for the payment of any penalties and
Public Works Project: Installation of bollards for the materials bunker
Public Works Contract / April 2024
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interest on such contributions, which would otherwise be the responsibility of City, and actual
attorney’s fees incurred by City in connection with the above.
6. CHANGE ORDERS
Amendments and change orders must be in writing and signed by City and Contractor. Contractor’s
request for a change order must specify the proposed changes in the Work, Contract Price, and
Contract Time. Each request must include all the supporting documentation, including but not
limited to plans/drawings, detailed cost estimates, and impacts on schedule and completion date.
7. ASSIGNMENTS; SUCCESSORS
Contractor shall not assign, hypothecate, or transfer this Contract or any interest therein, directly or
indirectly, by operation of law or otherwise, without prior written consent of City. Any attempt to do
so will be null and void. Any changes related to the financial control or business nature of Contractor
as a legal entity is considered an assignment of the Contract and subject to City approval, which
shall not be unreasonably withheld. Control means fifty percent (50%) or more of the voting power
of the business entity. This Contract is binding on Contractor, its heirs, successors, and permitted
assigns.
8. PUBLICITY / SIGNS
Any publicity generated by Contractor for the Project during the Contract Time, and for one (1) year
thereafter must credit City contributions to the Project. The words “City of Cupertino” must be
displayed in all pieces of publicity, flyers, press releases, posters, brochures, interviews, public service
announcements, and newspaper articles. No signs may be posted or displayed on or about City
property, except signage required by law or this Contract, without prior written approval from the City.
9. SUBCONTRACTORS
9.1 Contractor must perform all the Work with its own forces, except that Contractor may hire
qualified subcontractors to perform up to 0% of the Work, provided that each subcontractor is
required by contract to be bound by the provisions of this Contract. Contractor must provide City
with written proof of compliance with this provision upon request.
9.2 City may reject any subcontractor of any tier and bar a subcontractor from performing Work on
the Project, if City in its sole discretion determines that subcontractor’s Work falls short of the
requirements of this Contract or constitutes grounds for rejection under the Public Contract Code. If
City rejects a subcontractor, Contractor at its own expense must perform the subcontractor’s Work or
hire a new subcontractor that is acceptable to City. A Notice of Completion must be recorded within
fifteen (15) days after City accepts the Work if the Contract involves work by subcontractors.
10. RECORDS AND DAILY REPORTS
10.1 Contractor must maintain daily reports of the Work and submit them to City upon request and
at completion of Project. The reports must describe the Work and specific tasks performed, the number
of workers, the hours, the equipment, the weather conditions, and any circumstances affecting
performance. City will have ownership of the reports, but Contractor will be permitted to retain copies.
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Public Works Contract / April 2024
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10.2 If applicable, Contractor must keep a separate set of as-built drawings showing changes and
updates to the Scope of Work or the original drawings as changes occur. Actual locations to scale must
be identified for all major components of the Work, including mechanical, electrical and plumbing
work; HVAC systems; utilities and utility connections; and any other components City determines
should be included in the final drawings of the Project. Deviations from the original drawings must be
shown in detail, and the location of all main runs, piping, conduit, ductwork, and drain lines must be
shown by dimension and elevation.
10.3 Contractor must maintain complete and accurate accounting records of its Work, in accordance
with generally accepted accounting principles, which must be available for City review and audit, kept
separate from other records, and maintained for four (4) years from the date of City’s final payment.
11. INDEMNIFICATION
11.1 To the fullest extent allowed by law, and except for losses caused by the sole and active
negligence or willful misconduct of City personnel, Contractor shall indemnify, defend, and hold
harmless City, its City Council, boards and commissions, officers, officials, employees, agents,
servants, volunteers and consultants (“Indemnitees”), through legal counsel acceptable to City, from
and against any and all liability, damages, claims, stop notices, actions, causes of action, demands,
charges, losses and expenses (including attorney fees, legal costs, and expenses related to litigation
and dispute resolution proceedings), of every nature arising directly or indirectly from this Contract or
in any manner relating to any of the following:
(a) Breach of contract, obligations, representations or warranties;
(b) Performance or nonperformance of the Work or of any obligations under the Contract
by Contractor, its employees, agents, servants, subcontractors or subcontractors;
(c) Payment or nonpayment by Contractor or its subcontractors or sub-subcontractors for
Work performed on or off the Project Site; and
(d) Personal injury, property damage, or economic loss resulting from the work or performance
of Contractor or its subcontractors or sub-subcontractors.
11.2 Contractor must pay the costs City incurs in enforcing this provision. Contractor must accept a
tender of defense upon receiving notice from City of a third-party claim, in accordance with
California Public Contract Code Section 9201. At City’s request, Contractor will assist City in the
defense of a claim, dispute, or lawsuit arising out of this Contract.
11.3 Contractor’s duties under this entire Section 11 are not limited to Contract Price, Workers’
Compensation, or other employee benefits, or the insurance and bond coverage required in this
Contract. Nothing in the Contract shall be construed to give rise to any implied right of indemnity
in favor of Contractor against City or any other Indemnitee.
11.4 Contractor’s payments may be deducted or offset to cover any money the City lost due to
a claim or counterclaim arising out of this Contract, a purchase order or other transaction.
11.5 Contractor agrees to obtain executed indemnity agreements with provisions identical to
those set forth here in this Section 11 from each and every subcontractor, or any other person or
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Public Works Contract / April 2024
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entity involved by, for, with, or on behalf of Contractor in the performance of this Agreement.
Failure of City to monitor compliance with these requirements imposes no additional obligations
on City and will in no way act as a waiver of any rights hereunder.
11.6 This Section 11 shall survive termination of the Contract.
12. INSURANCE
Contractor shall comply with the Insurance Requirements, attached and incorporated here as Exhibit
B. Contractor must provide satisfactory proof of insurance and maintain it for the Contract Time or
longer as required by City. City will not execute the Contract until City has approved receipt of
satisfactory certificates of insurance and endorsements evidencing the type, amount, class of
operations covered, and the effective and expiration dates of coverage. Failure to comply with this
provision may result in City, at its sole discretion and without notice, purchasing insurance at
Contractor’s expense, deducting the costs from Contractor’s compensation, or terminating the
Contract.
13. COMPLIANCE WITH LAWS
13.1 General Laws. Contractor shall comply with all laws and regulations applicable to this
Contract. Contractor will promptly notify City of changes in the law or other conditions that may
affect the Project or Contractor’s ability to perform. Contractor is responsible for verifying the
employment status of employees performing the Work, as required by the Immigration Reform and
Control Act
13.2 Labor Laws.
(a) The following provisions apply to contracts of $1,000 or more:
(i) In General. For purposes of California labor law, this is a public works
contract subject to the provisions of Part 7 of Division 2 of the California Labor
Code (Sections 1720 et seq.). In accordance with Labor Code Section 1771,
Contractor and all subcontractors shall pay not less than current prevailing
wage rates as determined by the California Department of Industrial Relations
(“DIR”) to all workers employed on this project. In accordance with Labor
Code Section 1815, Contractor and all subcontractors shall pay all workers
employed on this project 1 ½ the basic rate of pay for work performed in excess
specified hour limitations. The work performed pursuant to this Contract is
subject to compliance monitoring and enforcement by the Department of
Industrial Relations.
(ii) Registration. Contractor and all subcontractors shall not engage in the
performance of any work under this Contract unless currently registered and
qualified to perform public work pursuant to section 1725.5 of the California
Labor Code. Contractor represents and warrants that it is registered and
qualified to perform public work pursuant to section 1725.5 of the Labor Code
and will provide its DIR registration number, along with the registration
numbers of any subcontractors as required, to the City.
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(iii) Posting. Contractor shall post at the job site the determination of the DIR
director of the prevailing rate of per diem wages together with all job notices
that are required by regulations of the DIR.
(iv) Reporting. Contractor and any subcontractors shall keep accurate payroll
records in accordance with Section 1776 of the Labor Code and shall furnish
the payroll records directly to the Labor Commissioner in accordance with the
law.
(v) Report on Prevailing Rate of Wages. The City has obtained the general
prevailing rate of per diem wages in the vicinity of the project for each type of
worker needed, a copy of which is on file at the City of Cupertino City Hall,
and shall be made available to any interested party upon request.
(vi) Employment of Apprentices. Contractor’s attention is directed to the
provisions in Sections 1777.5 and 1777.6 of the Labor Code concerning the
employment of apprentices by the Contractor or any subcontractor. It shall be
the responsibility of the Contractor to effectuate compliance on the part of itself
and any subcontractors with the requirements of said sections in the
employment of apprentices. Information relative to apprenticeship standards,
wage schedules, and other requirements may be obtained from the Director of
Industrial Relations, ex-officio the Administrator of Apprenticeship, San
Francisco, California, or from the Division of Apprenticeship Standards and its
branch offices.
(vii) Penalties. Contractor’s attention is directed to provisions in Labor Code
Sections 1775 and 1813. In accordance with Labor Code Section 1775,
Contractor and subcontractors may be subject to penalties for Contractor’s
and subcontractors’ failure to pay prevailing wage rates. In accordance with
Labor Code Section 1813, Contractor or subcontractors may be subject to
penalties for Contractor’s or subcontractors’ failure to pay overtime pay rates
for hours worked by workers employed on this project in excess specified
hour limitations.
(b) Contractor must compensate workers who are paid less than prevailing wages or required to
work more than a legal day’s work. Contractor will also be required to pay City a penalty of
$200 per worker for each day of violation.
(c) As required by Labor Code Section 1861, by signing this Contract Contractor certifies as
follows: “I am aware of the provisions of Section 3700 of the Labor Code which require every
employer to be insured against liability for workers’ compensation or to undertake self-
insurance in accordance with the provisions of that code, and I will comply with such
provisions before commencing the work of this contract.”
13.3 Discrimination Laws. Contractor shall not discriminate on the basis of race, religious creed,
color, ancestry, national origin, ethnicity, handicap, disability, marital status, pregnancy, age, sex,
gender, sexual orientation, gender identity, Acquired-Immune Deficiency Syndrome (AIDS), or any
other protected classification. Contractor shall comply with all anti-discrimination laws, including
Government Code Sections 12900 and 11135, and Labor Code Sections 1735, 1777, and 3077.5.
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Consistent with City policy prohibiting harassment and discrimination, Contractor understands that
harassment and discrimination directed toward a job applicant, an employee, a City employee, or
any other person, by Contractor or Contractor's employees or sub-contractors will not be tolerated.
Contractor agrees to provide records and documentation to the City on request necessary to monitor
compliance with this provision.
13.4 Conflicts of Interest. Contractor, its employees, subcontractors, servants and agents, may not
have, maintain or acquire a conflict of interest in relation to this Contract in violation of law,
including Government Code section 1090 and Government Code section 81000 and their
accompanying regulations. No officer, official, employee, consultant, or other agent of the City (“City
Representative”) may have, maintain, or acquire a “financial interest” in the Contract, as that term is
defined by state law, or in violation of a City ordinance or policy while serving as a City
Representative or for one year thereafter. Contractor, its employees, subcontractors, servants, and
agents warrant they are not employees of City nor do they have any relationship with City officials,
officers, or employees that creates a conflict of interest. Contractor may be required to file a conflict
of interest form if it makes certain governmental decisions or serves in a staff capacity, as defined in
Section 18700 of Title 2 of the California Code of Regulations. Contractor agrees to abide by City
rules governing gifts to public officials and employees.
13.5 Remedies. Any violation of Section 13 constitutes a material breach and may result in City
suspending payments, requiring reimbursement, or terminating the Contract. City reserves all
rights and remedies under the law and this Contract, including seeking indemnification.
14. BONDS
For contracts of $25,000 or more, Contractor must obtain a payment bond and a performance bond,
each in the penal sum of 100% of the Contract Price, using the Bond Forms attached and incorporated
here as Exhibit C. Each bond must be issued by a surety admitted in California, with a financial rating
from A.M. Best Company of Class A- or higher, or as otherwise acceptable to City. If an issuing surety
cancels a bond or becomes insolvent, Contractor must provide a substitute bond from a surety
acceptable to City within seven (7) calendar days after written notice from City. If Contractor fails to
do so, City may in its sole discretion and without prior notice, purchase bonds at Contractor’s expense,
deduct the cost from payments due Contractor, or terminate the Contract. City will not execute the
Contract nor issue the NTP until the required bonds are submitted.
15. UTILITIES, TRENCHING, AND EXCAVATION
15.1 Contractor must call the Underground Service Alert (“USA”) 811 hotline and request marking
of utility locations before digging or commencing Work. For underground service alerts for street
lighting and traffic signal conduits, City’s Service Center must be called at (408) 777-3269.
Government Code Section 4215 requires Contractor to notify City and Utility in writing if it
discovers utilities or utility facilities not identified in the Contract.
15.2 Pursuant to Government Code Section 7104, Contractor must stop work, notify City in
writing, and wait for instructions if one of the conditions below is found at the worksite. City will
work with Contractor to amend the Contract or issue a change order if the discovered conditions
materially change the Work/Performance, Contract Time or Contract Price.
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(a) Material believed to be hazardous waste under Health and Safety Code Section 25117, and
which requires removal to a Class I, Class II, or Class III disposal site pursuant to law;
(b) Subsurface or latent physical conditions at the Project worksite differing from those
indicated by information about the worksite made available to Contractor; and
(c) Unknown physical conditions at the Project worksite of any unusual nature, materially
different from those ordinarily encountered and from those generally recognized as
inherent in the character of the Work.
15.3 For contracts $25,000 or higher that require excavation or involve trenches five feet or more in
depth, Contractor must submit a detailed plan for City approval, per Labor Code Section 6705, prior
to commencing work. The plan must show the design of shoring, bracing, sloping, and other
provisions for worker protection from caving ground and other hazards. The protective system must
comply with all Construction Safety Orders. If the plan varies from shoring system standards, it must
be prepared by a registered civil or structural engineer.
16. URBAN RUNOFF MANAGEMENT
16.1 All Work must fully comply with federal, state, and local laws and regulations concerning
storm water management. Contractor must avoid creating excess dust when breaking asphalt or
concrete and during excavation and grading. If water is used for dust control, Contractor will use only
the amount of water necessary to dampen the dust. Contractor will take all steps necessary to keep
wash water out of the streets, gutters, and storm drains. Prior to the start of the Work, Contractor will
implement erosion and sediment controls to prevent pollution of storm drains, and must upgrade and
maintain these controls based on weather conditions or as otherwise required by City. These controls
must be in place during the entire Contract Time and must be removed at the end of construction and
completion of the Work. Such controls must include, but will not be limited to, the following
requirements:
(a) Install storm drain inlet protection devices such as sand bag barriers, filter fabric fences, and
block and gravel filters at all drain inlets impacted by construction. During the annual rainy
season, October 15 through June 15, storm drain inlets impacted by construction work must be
filter-protected from onsite de-watering activities and saw-cutting activities. Shovel or
vacuum saw-cut slurry and remove from the Work site;
(b) Cover exposed piles of soil or construction material with plastic sheeting. Store all
construction materials in containers;
(c) Sweep and remove all materials from paved surfaces that drain to streets, gutters and storm
drains prior to rain and at the end of each work day. When the Work is completed, wash the
streets, collect and dispose of the wash water offsite in lawful manner;
(d) After breaking old pavement, remove debris to avoid contact with rainfall/runoff;
(e) Maintain a clean work area by removing trash, litter, and debris at the end of each work
day and when Work is completed. Clean up any leaks, drips, and other spills as they occur.
16.2 These requirements must be used in conjunction with the California Stormwater Quality
Association and California Best Management Practices Municipal and Construction Handbooks,
local program guidance materials from municipalities, and any other applicable documents on
stormwater quality controls for construction. Contractor’s failure to comply with this Section will
result in the issuance of noncompliance notices, citations, Work stop orders and regulatory fines.
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17. PROJECT COORDINATION
City Project Manager. City assigns Jimmy Tan as the City representative for all purposes under this
Contract, with authority to require compliance with the Scope of Work. City may substitute Project
Managers at any time and without prior notice to Contractor.
Contractor Project Manager. Subject to City approval, Contractor assigns Gergory Merrill as its
single representative for all purposes under this Contract, with the responsibility to ensure progress with
the Work. Contractor’s Project Manager is responsible for coordinating and scheduling the Work and
must regularly update the City Project Manager about the status and any delays with the Work,
consistent with the Scope of Work. Any substitutions must be approved in writing by City.
18. ABANDONMENT AND TERMINATION
18.1 City may abandon or postpone the Project or parts therefor at any time. Contractor will be
compensated for satisfactory Work performed through the date of abandonment and will be given
reasonable time to close out the Work. With City’s pre-approval in writing, the time spent in closing
out the Work will be compensated up to ten percent (10%) of the total time expended in performing
the Work.
18.2 City may terminate the Contract for cause or without cause at any time. Contractor will be paid
for satisfactory Work rendered through the termination date and will be given reasonable time to close
out the Work.
18.3 Final payment will not be made until Contractor delivers the Work and provides records
documenting the Work, products and deliverables completed. Nothing in the Section below is intended
to delay, abridge or bar City’s right under this Section.
19. GOVERNING LAW, VENUE AND DISPUTE RESOLUTION
This Contract is governed by the laws of State of California. Venue for any legal action shall be the
Superior Court of the County of Santa Clara, California. The dispute resolution procedures of Public
Contract Code Section 20104, et seq., incorporated here by reference, apply to this Contract and
Contractor is required to continue the Work pending resolution of any dispute. Prior to filing a lawsuit,
Contractor must comply with the claim filing requirements of the California Government Code. If the
Parties elect arbitration, the arbitrator’s award must be supported by law and substantial evidence and
include detailed written findings of law and fact.
20. ATTORNEY FEES
If City initiates legal action, files a complaint or cross-complaint, or pursues arbitration, appeal, or
other proceedings to enforce its rights or a judgment in connection with this Contract, the prevailing
party will be entitled to reasonable attorney fees and costs.
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21. SIGNS/ADVERTISEMENT
No signs may be displayed on or about City’s property, except signage which is required by law or by
the Contract, without City’s prior written approval as to size, design and location.
22. THIRD PARTY BENEFICIARIES
There are no intended third party beneficiaries of this Contract.
23. WAIVER
Neither acceptance of the Work nor payment thereof shall constitute a waiver of any contract
provision. City waiver of any breach shall not constitute waiver of another provision or breach.
24. WARRANTY
Contractor warrants that materials and equipment used will be new, of good quality, and free from
defective workmanship and materials, and that the Work will be free from material defects not
intrinsic in the design or materials. All Work, materials and equipment should pass to City free of
claims, liens or encumbrances. Contractor warrants the Work and materials for one year from the date
of City’s acceptance of the Work as complete (“Warranty Period”), except when a longer guarantee is
provided by a supplier, manufacturer or is required by this Contract. During the Warranty Period,
Contractor will repair or replace any Work defects or materials, including damage that arises from
Contractor’s Warranty Work, except any wear and tear or damage resulting from improper use or
maintenance.
25. ENTIRE CONTRACT
This Contract and the attachments, documents, and statutes attached, referenced, or expressly
incorporated herein, including authorized amendments or change orders constitute the final and
complete contract between City and Contractor with respect to the Work and the Project. No oral
contract or implied covenant will be enforceable against City. If there is any inconsistency between
any term, clause, or provision of the main Contract and any term, clause, or provision of the
attachments or exhibits thereto, the terms of the main Contract shall prevail and be controlling.
26. SEVERABILITY/PARTIAL INVALIDITY
If a court finds any term or provision of this Contract to be illegal, invalid, or unenforceable, the
legal portion of said provision and all other contract provisions will remain in full force and effect.
27. SURVIVAL
The contract provisions which by their nature should survive the Contract or Completion of Project,
including without limitation all provisions regarding warranties, indemnities, payment obligations,
insurance, and bonds, shall remain in full force and effect after the Work is completed or Contract
ends.
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28. INSERTED PROVISIONS
Each provision and clause required by law to be inserted in this Contract will be deemed to be
included and will be inferred herein. Either party may request an amendment to cure mistaken
insertions or omissions of required provisions.
29. CAPTIONS
The captions, titles, and headings in this Contract are for convenience only and may not be used in
the construction or interpretation of the Contract or for any other purpose.
30. COUNTERPARTS
This Contract may be executed in counterparts, each of which is an original and all of which
taken together shall form one single document.
31. NOTICES
All notices, requests, and approvals must be sent in writing to the persons below and will be
considered effective on the date of personal delivery, the date confirmed by a reputable
overnight delivery service, on the fifth (5th) calendar day after deposit in the United States
Mail, postage prepaid, registered or certified, or the next business day following electronic
submission:
To City of Cupertino:
Office of the City Manager
10300 Torre Ave.
Cupertino, CA 95014
cc: Representative/Coordinator:
Jimmy Tan
Email: JimmyT@cupertino.org
To Contractor:
Rodan Builders, Inc
3486 Investment Blvd, Suite B
Hayward, CA 94545
cc: Representative/Coordinator:
Gergory Merrill
Email: gmerrill@rodanbuilders.com
32. EXECUTION
The persons signing below warrant they have the authority to enter into this Contract and to
legally bind their respective Parties. If Contractor is a corporation, signatures from two officers
of the corporation are required pursuant to California Corporations Code Section 313.
SIGNATURES CONTINUE ON THE FOLLOWING PAGE
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IN WITNESS WHEREOF, the parties have caused this Contract to be executed as of the Execution
Date first above written.
CITY OF CUPERTINO,
a Municipal Corporation
By: __________________________________
Title: ________________________________
Signature Date: _________________________
RODAN BUILDERS, INC
By: __________________________________
Title: ________________________________
Signature Date: _________________________
APPROVED AS TO FORM:
By:
CHRISTOPHER D. JENSEN
Cupertino City Attorney
ATTEST:
By:
KIRSTEN SQUARCIA
City Clerk
Date:
Greg Merrill
CFO
Jul 26, 2024
Christopher D. Jensen
Director of Public Works
Jul 28, 2024
Jul 29, 2024
Attn: Jimmy Tan
Subject: Cost Proposal – Damaged Shed New Concrete Bollard REV1
Dear Jimmy,
We are pleased at the opportunity to bid on the Cupertino Damaged Shed New Concrete Bollard project. Per
your request please see below for the cost associated with the work. Quote dated 7-19-24.
Summary of base scope:
•Form & Pour (2) new concrete bollard 4ft high & 2ft wide around columns replaced by others
TOTAL BASE BID: $7,800.00
Clarifications:
•Pricing is based on straight time only.
Specific Exclusions:
•Demo of existing concrete bollards
•Structure repair scope
•Submittals
•Testing/Special Inspections
•Permits
•Landscape/Irrigation patching
General Exclusions: Hazardous material removal or testing, engineering, drawings, overtime, weekend work,
night work, negative air, training, security access/badging.
Sincerely,
Greg Merrill
Greg Merrill
EXHIBIT A
Insurance Requirements for Construction Contracts Version: Oct. 2021
1
Contractor shall procure and maintain for the duration of the contract, and for five years following the completion of
the Project, insurance against claims for injuries to persons or damages to property which may arise from or in
connection with the performance of the work hereunder by Contractor, its agents, representatives, employees or
subcontractors.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
1. Commercial General Liability (“CGL”): Insurance Services Office (ISO) Form CG 00 01 covering CGL on an
“occurrence” basis, written on a comprehensive general liability form, and must include coverage for liability
arising from Contractor’s or Subcontractor’s acts or omissions, including Contractor’s protected coverage,
blanket contractual, products and completed operations, vehicle coverage and employer’s non-ownership liability
coverage, with limits of at least $2,000,000 per occurrence. The CGL policy must protect against any and all
liability for personal injury, death, property damage or destruction, and personal and advertising injury. If a general
aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG
25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
a. It shall be a requirement under this agreement that any available insurance proceeds broader than or in excess
of the specified minimum insurance coverage requirements and/or limits shall be made available to the
Additional Insured and shall be (1) the minimum coverage/limits specified in this agreement; or (2) the broader
coverage and maximum limits of coverage of any insurance policy, whichever is greater.
b. Additional Insured coverage under Contractor's policy shall be "primary and non-contributory," will not seek
contribution from City’s insurance/self-insurance, and shall be at least as broad as ISO CG 20 10 04 13
c. The limits of insurance required may be satisfied by a combination of primary and umbrella or excess
insurance, provided each policy complies with the requirements set forth in this Contract. Any umbrella or
excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a
primary basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to
protect City as a named insured.
2. Automobile Liability: ISO Form CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, then
hired autos (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily
injury and property damage.
3. Workers’ Compensation: As required by the State of California, with Statutory Limits, and Employer’s
Liability Insurance of no less than $1,000,000 per accident for bodily injury or disease, or as otherwise required by
statute. If Contractor is self-insured, Contractor must provide a Certificate of Permission to Self-Insure, duly
authorized by the DIR.
☐ N/A if box checked (Contractor provides written verification it has no employees).
4. Professional Liability with limits no less than $1,000,000 per occurrence or claim, and $2,000,000
aggregate.
☒ N/A if box checked (Contract is not design/build)..
5. Builder’s Risk. Course of Construction insurance utilizing an “All Risk” (Special Perils) coverage form, with
limits equal to the completed value of the project and no coinsurance penalty provisions.
PUBLIC WORKS CONSTRUCTION CONTRACTS
Small Projects – $200,000 or less
Insurance Requirements: Exhibit B
Insurance Requirements for Construction Contracts Version: Oct. 2021
2
☒ N/A if box checked (Project does not involve construction or improvements/installations to property).
6. Contractors’ Pollution Legal Liability and/or Asbestos Legal Liability and/or Errors and Omissions with limits
no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate.
☐ N/A if box checked (Project does not involve environmental hazards)
If Contractor maintains broader coverage and/or higher limits than the minimums shown above, City requires and
shall be entitled to the broader coverage and/or higher limits maintained by the contractor. Any available insurance
proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Self-Insured Retentions. Self-insured retentions must be declared to and approved by City. At City’s option, either:
(1) Contractor shall cause the insurer to reduce or eliminate self-insured retentions as respects City, its officers,
officials, employees, and volunteers; or (2) Contractor shall provide a financial guarantee satisfactory to City
guaranteeing payment of losses and related investigations, claim administration, and defense expenses. The policy
language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named
insured or the City.
OTHER INSURANCE PROVISIONS
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City of Cupertino, its City Council, officers, officials, employees, agents, servants and volunteers are to be covered
as additional insureds on the CGL and automobile liability policies with respect to liability arising out of the Services
performed by or on behalf of Contractor including materials, parts, or equipment furnished. Endorsement of CGL
coverage shall be at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG
20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used.
Primary Coverage
For any claims related to this Project, Contractor’s insurance coverage shall be “primary and non-contributory” and
at least as broad as ISO CG 20 01 04 13 with respect to City, its officers, officials, employees and volunteers, and shall
not seek contribution from City’s insurance. If the limits of insurance are satisfied in part by Umbrella/Excess
Insurance, the Umbrella/Excess Insurance shall contain or be endorsed to contain a provision that such coverage shall
also apply on a “primary and non-contributory” basis for the benefit of City.
Notice of Cancellation
Each insurance policy required shall provide that coverage shall not be canceled, except with notice to the City. Each
certificate of insurance must state that the coverage afforded by the policy is in force and will not be reduced, cancelled
or allowed to expire without at least 30 days advance written notice to City, unless due to non-payment of premiums,
in which case ten days advance written notice must be provided to City. Such notice must be sent to City via certified
mail and addressed to the attention of the City Manager.
Builder’s Risk
Contractor may submit Builder’s Risk insurance in the form of Course of Construction coverage, which shall name
the City as a loss payee, as its interest may appear. The Builder’s Risk policy must be issued on an occurrence basis,
for all-risk coverage on a 100% completed value basis on the insurable portion of the Project, with no coinsurance
penalties, and for the benefit of City. If the Project does not involve new or major reconstruction, City may elect, acting
in its sole discretion, to accept an Installation Floater policy instead of Builder’s Risk. For such projects, the Property
Installation Floater shall include improvement, remodel, modification, alteration, conversion or adjustment to existing
buildings, structures, processes, machinery and equipment, and shall provide property damage coverage for any
Insurance Requirements for Construction Contracts Version: Oct. 2021
3
building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the
Work, including during transit, installation, and testing at the City’s site.
Waiver of Subrogation
Each required policy must include an endorsement providing that the carrier agrees to waive any right of subrogation
it may have against City. Contractor agrees to waive rights of subrogation which any insurer of Contractor may acquire
from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be
necessary to affect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of
subrogation in favor of the City for all work performed by the Contractor, its employees, agents and subcontractors.
Acceptability of Insurers
Insurance must be issued by insurers acceptable to City and licensed to do business in the State of California, and each
insurer must have an A.M. Best’s financial strength rating of “A” or better and a financial size rating of “VII” or better.
Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements, or copies of the applicable
insurance language, effecting coverage required by this contract. All certificates and endorsements are to be received
and approved by the City before work commences. The City reserves the right to require complete, certified copies of
all required insurance policies, including endorsements, required by these specifications, at any time.
Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated
herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors. For
CGL coverage subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13.
Surety Bonds
As required by Contract and described in the Contract Documents. The Payment and Performance Bonds shall be in a
sum equal to the Contract Price. If the Performance Bond provides for a one-year warranty a separate Maintenance
Bond is not necessary. If the warranty period specified in the Contract is for longer than one year a Maintenance Bond
equal to 10% of the Contract Price is required. Bonds shall be duly executed by a responsible corporate surety,
authorized to issue such bonds in the State of California and secured through an authorized agent with an office in
California.
Special Risks or Circumstances
City reserves the right to modify these requirements, based on the nature of the risk, prior experience, insurer, coverage,
or other circumstances.
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
ACCORDANCE WITH THE POLICY PROVISIONS.
INSURER(S) AFFORDING COVERAGE
INSURER F :
INSURER E :
INSURER D :
INSURER C :
INSURER B :
INSURER A :
NAIC #
NAME:CONTACT
(A/C, No):FAX
E-MAILADDRESS:
PRODUCER
(A/C, No, Ext):PHONE
INSURED
REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on
this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
OTHER:
(Per accident)
(Ea accident)
$
$
N / A
SUBR
WVD
ADDL
INSD
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
$
$
$
$PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person)
COMBINED SINGLE LIMIT
AUTOS ONLY
AUTOSAUTOS ONLY
NON-OWNED
SCHEDULEDOWNED
ANY AUTO
AUTOMOBILE LIABILITY
Y / N
WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY
OFFICER/MEMBER EXCLUDED?
(Mandatory in NH)
DESCRIPTION OF OPERATIONS below
If yes, describe under
ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
EROTH-STATUTEPER
LIMITS(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)POLICY EFFPOLICY NUMBERTYPE OF INSURANCELTRINSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)
EXCESS LIAB
UMBRELLA LIAB $EACH OCCURRENCE
$AGGREGATE
$
OCCUR
CLAIMS-MADE
DED RETENTION $
$PRODUCTS - COMP/OP AGG
$GENERAL AGGREGATE
$PERSONAL & ADV INJURY
$MED EXP (Any one person)
$EACH OCCURRENCE
DAMAGE TO RENTED $PREMISES (Ea occurrence)
COMMERCIAL GENERAL LIABILITY
CLAIMS-MADE OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:
POLICY PRO-JECT LOC
CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)
CANCELLATION
AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.
CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED
AUTOS ONLY
7/10/2024
Arthur J. Gallagher Risk Management Services, LLC
160 West Santa Clara Street
Suite 300
San Jose CA 95113
408-257-2985
License#: 0D69293 Hartford Fire Insurance Company 19682
Pacific Insurance Company, Limited 10046Rodan Builders, Inc.
3486 Investment Blvd. Suite B
Hayward, CA 94545
Twin City Fire Insurance Company 29459
AGCS Marine Insurance Company 22837
402585192
A X 1,000,000
X 300,000
10,000
1,000,000
2,000,000
X
Y Y 83UENOD1274 1/1/2024 1/1/2025
2,000,000
A 1,000,000
X
Y Y 83UENOD1275 1/1/2024 1/1/2025
C X 10,000,000
X
57CECBE0481 1/1/2024 1/1/2025
10,000,000
X NIL
A XY83WEOD1B2Z1/1/2024 1/1/2025
1,000,000
1,000,000
1,000,000
B
D
Pollution Liability
Professional Liability
Property / Inland Marine
57CPIZM7682
MXI 93091867
1/1/2024
1/1/2024
1/1/2026
1/1/2025
Occ/Agg
Occ/Agg
Occ/Agg
$5M/$5M
$4M/$4M
$500K/$500K
Employment Practices Liability
Policy# 57KB0357609-23
Limit - Occ/Agg: $1M
Sexual Abuse and Molestation
Policy# MR23AAN3
Limit - Occ: $1M /Agg: $2M
See Attached...
City of Cupertino
10300 Torre Avenue
Cupertino CA 95014
ACORD 101 (2008/01)
The ACORD name and logo are registered marks of ACORD
© 2008 ACORD CORPORATION. All rights reserved.
THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM,
FORM NUMBER:FORM TITLE:
ADDITIONAL REMARKS
ADDITIONAL REMARKS SCHEDULE Page of
AGENCY CUSTOMER ID:
LOC #:
AGENCY
CARRIER NAIC CODE
POLICY NUMBER
NAMED INSURED
EFFECTIVE DATE:
1 1
Arthur J.Gallagher Risk Management Services,LLC Rodan Builders,Inc.
3486 Investment Blvd.Suite B
Hayward,CA 94545
25 CERTIFICATE OF LIABILITY INSURANCE
RE:Cupertino Damaged Shed,RBI Job #24-1418
ADDITIONAL INSURED(S):The City of Cupertino,its City Council,officers,officials,employees,agents,servants and volunteers
1/1/2024-1/1/2025
1/1/2024-1/1/2025
1/1/2024-1/1/2025
1/1/2024-1/1/2025
1/1/2024-1/1/2025
1/1/2024-1/1/2025
1/1/2024-1/1/2025
1/1/2024-1/1/2025
ϭͬϭͬϮϬϮ4
/2025
83WEOD1B2Z
CB 4710 10 16 © 2016, AGCS Marine Insurance Company, Chicago, IL. All rights reserved. Page 1 of 15
Includes copyrighted material of Insurance Services Office, Inc., with its permission.
Allianz Global Corporate & Specialty®
Construction Block Coverage Form
Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and
what is and is not covered.
Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations. The words
"we", “us” and "our" refer to AGCS Marine Insurance Company, the Company providing this insurance. Other words
and phrases that appear in quotation marks have special meaning. They may be defined subsequently or
their definitions may be found in Section F. Definitions.
In return for “your” payment of the premium shown in the Declarations which are part of this policy, “we” provide the
coverage described herein subject to all the conditions of this policy. Endorsements and schedules may also apply
as identified in the Declarations or schedule of coverages.
A. Coverage
“We” will pay for “Loss” to Covered Property from any of the Covered Causes of Loss.
1. Covered Property
a. Covered Property means:
(1) “Your” equipment, tools and machinery, including spare parts, repair parts and accessories that
“you” own or for which “you” are liable.
(2) Buildings or structures in the course of construction, including property used in or incidental to
construction at a construction site. Labor and profit are included.
(3) Materials, supplies, machinery, equipment and fixtures “you” own or for which “you” are liable or
which “you” have contracted to install or erect provided that the values for this property have been
reported to the company if this policy is issued on a reporting basis. Labor and profit are included.
b. Coverage Conditions
(1) Duration of Coverage
(a) With respect to A.1.a.(2) and A.1.a.(3) “we” will provide coverage from the time Covered
Property becomes “your” responsibility, during construction or installation, including while
Covered Property is being transported to the construction or installation site until one of the
following situations occurs:
(i) The policy expires;
(ii) “Your” interest in, or responsibility for, any Covered Property ceases; or
(iii) The “Covered Property” is accepted by the purchaser or owner.
2. Covered Causes of Loss
Covered Causes of Loss means Risks of Direct Physical Loss or Damage to Covered Property from any
external cause except those causes of loss listed in the Exclusions.
3. Extensions of Coverage
a. Contract Penalty Clause Coverage
1. “We” will pay the contractual penalties “you” are required to pay to “your” customers as a result of
any clause in “your” contracts for failure to timely deliver “your” product according to the contract
terms. The penalties must solely result from direct physical loss or damage by a Covered Cause
of Loss to Covered Property.
2. The most “we” will pay for penalties for all contracts in any one "Occurrence" is $25,000.
b. Debris Removal Coverage
CB 4710 10 16 © 2016, AGCS Marine Insurance Company, Chicago, IL. All rights reserved. Page 2 of 15
Includes copyrighted material of Insurance Services Office, Inc., with its permission.
(1) “We” will pay “your” reasonable expenses to remove debris of Covered Property caused by or
resulting from a Covered Cause of Loss that occurs during the policy period. The expenses will
be paid only if they are reported to “us” in writing within 180 days of the date of the direct
physical loss or damage.
(2) The most “we” will pay under this Additional Coverage is the lesser of 25% of:
(a) The amount “we” pay for the "Loss" to Covered Property; plus the deductible in this policy
applicable to that "Loss"; or
(b) The applicable Limit of Insurance for Covered Property:
(i) At the Job Site;
(ii) At a location other than the Job Site; or
(iii) In Transit;
Where the "Loss" occurs.
But this limitation does not apply to any additional debris removal limit provided in the Limits of
Insurance Section.
(c) This Additional Coverage does not apply to costs to:
(i) Extract "Pollutants" from land or water; or
(ii) Remove, restore or replace polluted land or water.
c. Denial of Access by Civil Authority
“We” will pay for additional reasonable expense “you” incur as a result of a delay in the completion of
the installation or construction at any one construction site resulting from the actions of a Civil Au-
thority to deny ingress or egress to the construction site due to unsafe road conditions resulting from a
Covered Cause of Loss provided that:
(1) All roads providing ingress or egress to the construction site have been closed by the Civil Au-
thority; and
(2) “You” would not have incurred a delay but for the closure of all roads providing ingress or egress
to the “Site”;
This coverage begins seventy-two (72) hours after the action of a Civil Authority to deny ingress or
egress to the construction site. The most “we” will pay under this Additional Coverage is $100,000 in
any one "Occurrence" for reasonable expenses incurred as a result of delay following the 72 hour
waiting period.
d. Earnings, Rents and Soft Costs
“We” cover “Loss of Earnings” and "Rental Value" “you” lose, or “Soft Costs” “you” incur because of a
Covered Cause of Loss under the policy. The most “we” will pay for any one "Loss” is $25,000. “Soft
costs” means additional expenses over and above the projected cost of the covered construction pro-
ject which occurs because of a Covered Cause of Loss which delays the project, and are limited to just
these things:
(1) Additional interest expense on money “you” borrow to finance construction or repair;
(2) Additional realty taxes and real estate assessments which “you” incur for the period of time that
construction has been extended beyond the projected completion date that existed before the
“Loss” occurred;
(3) Additional advertising and promotional expenses which become necessary as a result of a
“Loss”;
(4) Additional commissions, which result from renegotiation of leases following an interruption to the
project; and
(5) Additional reasonable and necessary legal, accounting, architectural, artisan or archival con-
sultation expenses which you incur because of a "Loss".
e. Employees’ Tools and Work Clothing
“We” cover tools and work clothing of "Employees" for which “you” may be liable while such tools and
work clothing are located at job sites or while in transit to or from job sites in “your” “vehicles”. “We”
CB 4710 10 16 © 2016, AGCS Marine Insurance Company, Chicago, IL. All rights reserved. Page 3 of 15
Includes copyrighted material of Insurance Services Office, Inc., with its permission.
shall not be liable for more than $25,000 in any one "Loss", involving property of a number of “Em-
ployees”, or for more than $2,500 with respect to property of any one "Employee". The deductible
clause does not apply to this additional coverage.
f. Equipment Rental Cost Reimbursement
“We” will cover expenses necessarily incurred to rent substitute equipment when Covered Property as
described in A.1 and insured by this policy is rendered unusable by a Covered Cause of Loss.
You agree to substitute other equivalent equipment at “your” disposal, if available. Our liability for such
expense shall not exceed the amount incurred during the period:
(1) Commencing with the expiration of the "Waiting Period", and
(2) Ending when such equipment has been, or in the exercise of due diligence and dispatch should
have been, repaired or replaced by you, whichever occurs first.
Equipment Rental Cost Reimbursement Coverage shall not be limited by the expiration of this policy.
The "Waiting Period" begins when the "Loss" has been reported to us and continues for twenty-four
(24) hours while rental expense is being paid.
The most “we” will pay for Equipment Rental Cost Reimbursement in any one "Occurrence" is $25,000.
g. Expendable Supplies
“We” will cover fuel, oil, grease and similar expendable supplies, usual to “your” operations, lost or
destroyed in a “Loss”. The most “we” will pay in any one "Loss" is $5,000 unless such items are spe-
cifically covered for more.
h. Fire Protection Devices
“We” will pay up to $75,000 in expenses you incur to recharge or refill any fire protection devices dis-
charged as a result of fire of explosion. This additional coverage will not apply while actual work is
being performed upon the system or while the system is being tested.
i. "Fungi"
(1) If "Fungi" results from a "Loss", “we” will pay for the necessary and reasonable cost incurred to
test for, monitor, abate, mitigate, remove, dispose of, or remediate "Fungi".
(2) Coverage provided by this extension applies only if the presence of "Fungi" is reported to “us”
within 30 days of the occurrence of the "Loss" that is alleged to have caused this condition.
The most “we” will pay under this coverage extension in any one “Occurrence” or in the “Annual Ag-
gregate" during this policy period is $25,000 or a higher amount if indicated in the Declarations. The
provisions of this extension do not increase any Limits of Insurance provided by this policy.
j. Green Building Certification
“We” will pay additional reasonable registration or certification fees, not to exceed $25,000, made nec-
essary by a “Loss” to re-register or re-certify “your” building with The United States Green Building
Council or Green Building Initiative.
k. Increased Costs of Completing Undamaged Portions of a Building
“We” will pay up to $100,000 for the increased costs of construction materials and labor “you” incur due
to a delay in completing previously undamaged or unfinished portions of a building or structure.
This Additional Coverage shall not apply to any other type of delay, including a delay which existed at
the time of the "Loss" or a delay which is not a direct result of Covered Cause of Loss to Covered
Property.
l. Indoor Air Quality
“We” will pay additional reasonable expense, not to exceed $25,000, which becomes necessary as a
result of a “Loss” to restore Indoor Air Quality to standards “you” have established in Indoor Air Quality
Management Plan in a manner consistent with the procedures specified by the LEED NC® Green
Building Rating System of the United States Green Building Council. This includes the additional rea-
sonable and necessary expense to flush out the reconstructed space with 100% outside air and new
filtration media following reconstruction in a manner consistent with the procedures specified by the
LEED EB® Green Building Rating System of the United States Green Building Council.
CB 4710 10 16 © 2016, AGCS Marine Insurance Company, Chicago, IL. All rights reserved. Page 4 of 15
Includes copyrighted material of Insurance Services Office, Inc., with its permission.
m. Loss Information Expenses
“We” will pay “your” reasonable expenses incurred at “our” request, to assist “us” in adjusting a “Loss”.
Loss Information Expenses include the cost of taking inventory, performing appraisals and providing
documentation to assist “us” in determining the extent of “your” “Loss”.
“We” will not pay for costs or expenses for:
(1) Legal services;
(2) Public adjusters;
(3) Appraisals in Section E. Conditions 8. Appraisal below;
(4) The purpose of negotiating or establishing that a claim is covered by this policy; or
(5) Any insurance broker, agent, claims consultant or any person or entity acting on their behalf un-
less requested by “us” in writing.
The most “we” will pay is $25,000 in any one “Occurrence”.
n. Pollutant Cleanup and Removal
“We” will pay “your” reasonable cost to extract “Pollutants” from land or water. The release, discharge
or dispersal of the “Pollutants” must result from a "Loss" and must occur during the policy period.
This coverage only applies if no later than 180 (one hundred eighty) days from the date of "Loss" or
from the end of the policy period, whichever comes first, “you”:
1. Discover the "Loss"; and
2. Report the "Loss" to “us” in writing.
“We” will not pay:
1. The cost to repair, replace or restore property damaged or destroyed by extraction of "Pollutants";
2. The cost to extract “Pollutants” from land or water:
a. at any location used for the handling, treatment, storage or disposal of waste unless the policy
has been specifically extended to cover property at that location;
b. at any location if the “Pollutants” are released, dispersed or discharged from a location which
is used for the handling, treatment, storage or disposal of waste unless the policy has been
specifically extended to cover property at that location;
c. at any location if the “Pollutants” arise out of or are a consequence of nuclear reaction or ra-
diation, or radioactive contamination.
d. the cost of testing, evaluating, observing or recording the existence, level or effects of "Pol-
lutants".
The most “we” will pay under this Additional Coverage is $10,000 in any one year commencing with
policy inception. This amount is in addition to the Limit of Insurance shown in the Declarations for all
“Covered Property” in any one "Occurrence". If this policy is written for a term of more than one year,
“we” will apply this limit separately to each consecutive year of the policy period.
o. Recycling Diversion Expense
“We” will pay additional reasonable expense, not to exceed $25,000, which becomes necessary be-
cause of a “Loss” for the increased costs “you” incur to divert debris caused by or resulting from a
“Loss” from “your” covered building to recycling facilities rather than landfills, if such debris can be
recycled. Any income or remuneration derived from the recycling shall be used to reduce the "Loss".
P Removal to Preserve Covered Property
“We” will cover “Loss” to Covered Property while being moved to or stored at a temporary location to
preserve Covered Property from an imminent threat of “Loss”. “We” will also cover “Loss” to Covered
Property while being moved back to the “Site” from a temporary location provided that “you” do so
within a reasonable time after the imminent threat of "Loss" has passed.
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If “you” remove Covered Property to a temporary location to avoid an imminent threat of “Loss”, “you”
must inform “us” within ten (10) days of removal or no coverage will apply. This additional coverage
does not extend past the policy expiration date.
“We” will pay the necessary and reasonable expenses “you” incur in moving and storing Covered Prop-
erty to preserve it from an imminent threat of “Loss”. The most we will pay under this Additional Cov-
erage is $25,000 in any one “Occurrence”.
q. Reward Coverage
“We” will reimburse “you” for any reward payments “you” make leading to:
(1) The successful recovery of stolen “Covered Property” involving a Covered Cause of Loss; or
(2) The arrest and conviction of any persons who have damaged or stolen any of the “Covered Prop-
erty” involving a Covered Cause of Loss.
The most “we” will pay is $5,000 in any one "Occurrence". No deductible applies to this Additional
Coverage.
r. Scaffolding Forms or Falsework
“We” will cover expenses to erect new scaffolding, forms or falsework when the original scaffolding
forms or falsework, covered by this policy has been damaged or destroyed in a "Loss".
s. Service Charges and Responding Fire Departments
“We” will pay up to $25,000 for fire department services charges that you incur when a fire de-
partment is called to save or protect covered property from an insured peril. Fire department service
charges mean charges that you assume by contract or agreement prior to loss or charges you are
required to pay by local ordinance if the fire department is called to save or protect the Covered Property
from a covered cause of loss.
t Sinkhole Collapse
“We” will pay for "Loss" caused by or resulting from risks of "Loss involving collapse of covered prop-
erty caused only by “Sinkhole Collapse”.
u. Valuable Papers and Records
“We” will pay for “Loss” to replace or restore lost or damaged “Valuable Papers and Records”, in-
cluding those which exist on electronic media for which there are no duplicates.
This Additional Coverage extends only to “Loss” to “Valuable Papers and Records” which are:
(1) On the construction or installation "Site" or within five hundred (500) feet of the construction or
installation "Site", or
(2) “Valuable Papers and Records” which are in transit to or from the construction or installation "Site".
The most “we” will pay is $50,000 in any one “Occurrence”.
4. Property Not Covered
Covered Property does not include:
a. Aircraft; watercraft; automobiles, motor trucks licensed for highway use, motorcycles, motor scooters,
or any other "Vehicles" designed primarily for highway use; (including motors, equipment and ac-
cessories);
b. Penalties for, or expenses incurred as a result of delay, in completion of contract terms; conditions of
noncompliance with contract terms conditions; or from any guarantee of performance or production;
c. Land or land values;
d. Water;
e. Contraband or property in the course of illegal transportation or trade;
f. Increased costs of construction materials and labor in completing previously undamaged or unfinished
portions of a construction project, except as provided in 3. Additional Coverages, k. Increased Costs of
Construction Materials and Labor;
g. Any real property and fixtures that existed prior to the construction or improvements, alterations or
repairs, and any real or personal property that existed or was in the course of construction prior to the
inception of this policy unless provided by endorsement; and
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h. Any real property, machinery, equipment and fixtures that will be demolished or permanently removed
in the course of construction of additions, alterations or repairs.
B. Exclusions
1. “We” will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or
damage is excluded regardless of any other cause or event that contributes concurrently or in any se-
quence to the loss or damage.
a. Ordinance or Law
(1) The enforcement of any ordinance or law:
(a) Regulating the construction, use or repair of any property; or
(b) Requiring the tearing down of any property, including the cost of removing its debris.
(2) This exclusion applies whether the loss or damage results from:
(a) An ordinance or law that is enforced even if the property has not been damaged; or
(b) The increased costs incurred to comply with an ordinance or law in the course of con-
struction, repair, renovation, remodeling or demolition of property, or removal of its debris, fol-
lowing a physical loss or damage to that property.
b. Earth Movement
(1) Earthquake, including any earth sinking, rising or shifting related to such event;
(2) Landslide, including any earth sinking, rising or shifting related to such event;
(3) Mine subsidence, meaning subsidence of a mine, whether or not mining activity has ceased; or
(4) Earth sinking (other than sinkhole collapse), rising or shifting including soil conditions which cause
settling, cracking or other disarrangement of foundations or other parts of realty. Soil conditions
include contraction, expansion, freezing, thawing, erosion, improperly compacted soil and the ac-
tion of water under the ground surface.
But if Earth Movement, as described in b. (1) through (4) above, results in fire or explosion, “we” will
pay for the "Loss” caused by that fire or explosion.
(5) Volcanic eruption, explosion or effusion. But if volcanic eruption, explosion or effusion results in
fire, building glass breakage or "Volcanic Action", “we” will pay for the "Loss” caused by that fire,
building glass breakage or Volcanic Action.
"Volcanic Action" means direct loss or damage resulting from the eruption of a volcano when the
loss or damage is caused by:
(a) Airborne volcanic blast or airborne shock waves;
(b) Ash, dust or particulate matter; or
(c) Lava flow.
"Volcanic Action" does not include the cost to remove ash, dust or particulate matter that does not
cause direct physical loss or damage to the described property.
All Earth Movements that occur within any 168-hour period will constitute a single "Occurrence".
This exclusion does not apply to Covered Property insured under Section A.1.a. (1) of this coverage
form.
c. Governmental Action
Seizure or destruction of property by order of governmental authority.
But “we” will pay for "Loss” caused by or resulting from acts of destruction ordered by governmental
authority and taken at the time of a fire to prevent its spread if the fire would be covered under this
coverage form.
d. Nuclear Hazard
(1) Any weapon employing atomic fission or fusion; or
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(2) Nuclear reaction or radiation, or radioactive contamination from any other cause whether con-
trolled or uncontrolled. But if nuclear reaction or radiation, or radioactive contamination results in
fire, “we” will pay for the "Loss" caused by that fire if the fire would be covered under this coverage
form.
e. War and Military Action
(1) War, including undeclared or civil war;
(2) Warlike action by a military force, including action in hindering or defending against an actual or
expected attack, by any government, sovereign or other authority using military personnel or other
agents; or
(3) Insurrection, rebellion, revolution, usurped power or action taken by governmental authority in hin-
dering or defending against any of these.
f. Water
(1) Flood, surface water, waves tidal water, storm surge, tsunami or the overflow of a body of water,
all whether driven by wind or not; or
(2) Waterborne material carried or otherwise moved by any of the water referred to in Paragraph (1)
This exclusion applies regardless of whether any of the above, in Paragraphs (1) and (2) is caused by
an act of nature or is otherwise caused. An example of a situation to which this exclusion applies is
the situation where a dam, levee, seawall or other boundary or containment system fails in whole or in
part, for any reason, to contain the water.
But if any of the above, in Paragraphs (1) and (2), results in fire, explosion or theft, “we” will pay for the
"Loss” caused by that fire, explosion or theft if these causes of loss would be covered under this cov-
erage form.
This exclusion does not apply to Covered Property insured under Section A.1.a. (1) of this coverage
form.
g. Fungi, Wet Rot and Dry Rot
Presence, growth, proliferation, spread or any activity of "Fungi", or wet or dry rot.
But if "Fungi", or wet or dry rot results in a Covered Cause of Loss, “we” will pay for the "Loss” caused
by that Covered Cause of Loss.
This exclusion does not apply:
(1) When "Fungi", or wet or dry rot results from fire or lightning; or
(2) To the extent that coverage is provided in Section A.4 Additional Coverage with respect to "Loss"
by a cause of loss other than fire or lightning.
h. Virus, Bacterium or Other Microorganism
Any virus, bacterium or other microorganism that induces or is capable of inducing physical distress,
illness or disease.
However, this exclusion does not apply to loss or damage caused by or resulting from "fungi", wet rot
or dry rot. Such loss or damage is addressed in the previous exclusion.
The terms of this exclusion, or the inapplicability of this exclusion to a particular loss, does not serve to
create coverage for any loss that would otherwise be excluded under this Coverage Part.
This exclusion applies to all coverage under all forms and endorsements that comprise this Coverage
Part, including but not limited to forms or endorsements that cover business income, extra expense or
action of civil authority.
Exclusions B.1.a. through B.1.h. apply whether or not the loss event results in widespread damage or
affects a substantial area.
2. “We” will not pay for loss or damage caused by or resulting from any of the following:
a. Delay, loss of use, loss of market or any other consequential loss.
b. Unexplained disappearance.
c. Shortage found upon taking inventory.
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d. Dishonest or criminal act committed by:
(1) “You”, any of “your” partners, "Employees", directors, trustees, or authorized representatives;
(2) A manager or a member if “you” are a limited liability company;
(3) Anyone else with an interest in the Covered Property, or their employees or authorized rep-
resentatives; or
(4) Anyone else to whom the Covered Property is entrusted for any purpose.
This exclusion applies whether or not such persons are acting alone or in collusion with other persons
or such acts occur during the hours of employment.
This exclusion does not apply to Covered Property that is entrusted to others who are carriers for hire
or to acts of destruction by “your” employees. But theft by "Employees" is not covered.
e. Artificially generated electrical, magnetic or electromagnetic energy that damages, disturbs, disrupts or
otherwise interferes with any:
(1) Electrical or electronic wire, device, appliance, system or network; or
(2) Device, appliance, system or network utilizing cellular or satellite technology.
But if fire results, “we” will pay for the loss or damage caused by that fire if the fire would be covered
under this coverage form.
For the purpose of this exclusion, electrical, magnetic or electromagnetic energy includes but is not
limited to:
(1) Electrical current, including arcing;
(2) Electrical charge produced or conducted by a magnetic or electromagnetic field;
(3) Pulse of electromagnetic energy; or
(4) Electromagnetic waves or microwaves.
f. Voluntary parting with any property by “you” or anyone entrusted with the Covered Property.
g. Unauthorized instructions to transfer property to any person or to any place.
h. Neglect of an insured to use all reasonable means to save and preserve property from further damage
at or after the time of loss.
3. “We” will not pay for loss or damage caused by or resulting from any of the following. But if loss or damage
to Covered Property by a Covered Cause of Loss results, “we” will pay for the loss or damage to Covered
Property caused by that Covered Cause of Loss.
a. Acts or decisions, including the failure to act or decide, of any person, group, organization or gov-
ernmental body.
b. Wear and tear.
c. Any quality in the property that causes it to damage or destroy itself, hidden or latent defect, or gradual
deterioration.
d. Insects, birds, rodents or other animals.
e. Rust or other corrosion, dampness or dryness of atmosphere, or changes in or extremes of tem-
perature.
f. Mechanical breakdown or derangement, rupture, bursting or disintegration of the rotating or moving
parts of machines resulting from centrifugal or reciprocating force; however, “we” will pay for physical
damage to any other covered property resulting from these occurrences.
g. Any condition or event inside steam boilers, steam pipes, steam engines, or steam turbines, or caused
by or resulting from any condition or vent inside such boilers or equipment. But “we” will pay for loss
of or damage to such equipment caused by or resulting from an explosion of gases or fuel within the
furnace of any fired vessel or within the flues or passages through which the gases of combustion
pass.
h. Any condition or event inside hot water boilers or caused by or resulting from any condition or event
inside such boilers or equipment, other than explosion.
i. Testing, unless fire or explosion follows. Then “we” will pay the “Loss” caused by such fire or ex-
plosion.
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4. “We” will not pay for loss by or resulting from defective, faulty or inadequate:
a. Planning, zoning, development, surveying, siting;
b. Design, plan, specification, workmanship, repair, construction, renovation, remodeling, grading or com-
paction;
c. Materials used in repair, construction, renovation or remodeling; or
d. Maintenance;
Of part or all of any Covered Property wherever located.
“We” will pay for "Loss" to other Covered Property which is free of the defective, faulty or inadequate
condition excluded in 4.a. through d., but is damaged in consequence thereof.
“We” will not pay for any costs or expenses incurred to access Covered Property in order to replace, repair
or rectify the defective, faulty or inadequate condition excluded in 4.a though d. above.
For the purpose of this policy and not merely this exclusion, Covered Property shall not be regarded as lost
or damaged solely because of the existence of any defective, faulty or inadequate condition excluded in
4.a through d. above.
C. Deductible
“We” will not pay for loss or damage in any one "Occurrence" until the amount of the adjusted loss or damage
before applying the applicable Limit of Insurance exceeds the Deductible shown in the Declarations. “We” will
then pay the amount of the adjusted loss or damage in excess of the Deductible, up to the applicable
Limit of Insurance.
If more than one deductible is applicable under this Coverage Form, “we” will apply only the highest amount
that is applicable.
D. Limits of Insurance
The most “we” will pay for "Loss" in any one "Occurrence" is the applicable Limit of Insurance shown in the
Declarations.
Payments under the following Additional Coverages will not increase the applicable Limit of Insurance:
1. Debris Removal Coverage but, if:
a. The sum of direct physical loss or damage and debris removal expense exceeds the Limit of In-
surance; or
b. The debris removal expense exceeds the amount payable under the 25% limitation in the Debris Re-
moval Additional Coverage;
“We” will pay up to an additional $100,000 or 10% of the limit of insurance, whichever is less.
2. "Sinkhole Collapse"
3. "Fungi"
The limits applicable to all other Additional Coverages are in addition to the Limits of Insurance.
E. Conditions
1. Cancellation
The first Named Insured shown in the Declarations may cancel this policy by mailing or delivering to “us”
advance written notice of cancellation.
a. “We” may cancel this policy by mailing or delivering to the first Named Insured written notice of can-
cellation at least:
(i) Ten (10) days before the effective date of cancellation if “we” cancel for nonpayment of premium;
or
(ii) Thirty (30) days before the effective date of cancellation if “we” cancel for any other reason.
b. “We” will mail or deliver “our” notice to the first Named Insured's last mailing address known to “us”.
c. Notice of cancellation will state the effective date of cancellation. The policy period will end on that date.
d. If this policy is cancelled, “we” will send the first Named Insured any premium refund due. If “we” cancel,
the refund will be pro rata. If the first Named Insured cancels, the refund may be less than pro rata. The
cancellation will be effective even if “we” have not made or offered a refund.
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e. If notice is mailed, proof of mailing will be sufficient proof of notice.
2. Changes
This policy contains all the agreements between “you” and “us” concerning the insurance afforded. The
first Named Insured shown in the Declarations is authorized to make changes in the terms of this policy
with our consent. This policy's terms can be amended or waived only by endorsement issued by “us” and
made a part of this policy.
3. Examination of “Your” Books and Records
“We” may examine and audit “your” books and records as they relate to this policy at any time during the
policy period and up to three (3) years afterward.
4. Inspections and Surveys
a. “We” have the right to:
(i) Make inspections and surveys at any time;
(ii) Give “you” reports on the conditions “we” find; and
(iii) Recommend changes.
b. “We” are not obligated to make any inspections, surveys, reports or recommendations and any such
actions “we” do undertake relate only to insurability and the premiums to be charged. “We” do not make
safety inspections. “We” do not undertake to perform the duty of any person or organization to provide
for the health or safety of workers or the public. And “we” do not warrant that conditions:
(i) Are safe or healthful; or
(ii) Comply with laws, regulations, codes or standards.
c. Paragraphs a. and b. of this condition apply not only to “us”, but also to any rating, advisory, rate
service or similar organization which makes insurance inspections, surveys, reports or rec-
ommendations.
d. Paragraph b. of this condition does not apply to any inspections, surveys, reports or recommendations
“we” may make relative to certification, under state or municipal statutes, ordinances or regulations, of
boilers, pressure vessels or elevators.
5. Premiums
The first Named Insured shown in the Declarations:
a. Is responsible for the payment of all premiums; and
b. Will be the payee for any return premiums “we” pay.
6. Transfer of “Your” Rights and Duties under This Policy
“Your” rights and duties under this policy may not be transferred without “our” written consent except in the
case of death of an individual Named Insured.
If “you” die, “your” rights and duties will be transferred to “your” legal representative, but only while acting
within the scope of duties as “your” legal representative. Until “your” legal representative is appointed, an-
yone having proper temporary custody of Covered Property will have “your” rights and duties, but only with
respect to that property.
7. Abandonment
There can be no abandonment of any property to “us”.
8. Appraisal
If “you” and “we” fail to agree on the amount of “Loss” to “Covered Property”, either one of “us” can ask that
the amount of “Loss” be established by appraisal. To start the appraisal process, either “you” or “we” must
make the request in writing to the other. Each must then choose a competent, independent appraiser
and give the name and address of that appraiser to the other. This must be done within thirty (30) days
after the written request for appraisal is received.
The two appraisers must then choose a competent and impartial umpire. If they do not agree on an umpire
within fifteen (15) days, either “you” or “we” may have an umpire selected by a court located in the same
state as the “Covered Property”. The appraisers will then set the amount of the “Loss”. A copy of their
report will be given to “you” and to “us”. The amount they agree upon will be the amount of “Loss”.
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If the appraisers fail to agree within a reasonable period of time, they will give the umpire a statement of
their differences. A written agreement signed by any two of the three will set the amount of the “Loss”.
“You” will pay “your” appraiser and “we” will pay “ours”. The umpire's fee and other appraisal expenses will
be shared equally by “you” and “us”.
If “we” submit to an appraisal, “we” will still retain “our” right to deny the claim.
9. Duties in the Event of Loss
“You” must see that the following are done in the event of a loss which may be covered by this policy:
a. Notify the police if a law may have been broken.
b. Give “us” or “our” authorized representative prompt notice of the loss, including a description of the
property involved. “You” must also file with “us” or “our” agent, a detailed sworn proof of loss within
sixty (60) days following the loss or damage. “We” will supply you with the necessary forms.
c. As soon as possible, give “us” a description of how, when and where the loss occurred.
d. Take all reasonable steps to protect the Covered Property from further damage and keep a record of
“your” expenses necessary to protect the Covered Property”, for consideration in the settlement of the
claim. This will not increase the Limit of Insurance. Also if feasible, set the damaged property aside
and in the best possible order for examination. If “you” move the property to a safe place, that property
will continue to be covered, and “we” will reimburse “you” for the reasonable expenses for doing so.
“You” must tell “us” as soon as practical that “you” have moved the property to a safe place. Any
payments “we” make under this provision are within the applicable Limits of Insurance.
e. “You” will neither, admit liability, nor, except at “your” own cost, voluntarily make a payment, assume
any obligation, or incur any expense without “our” consent.
f. As often as may be reasonably required, permit “us” to inspect the property proving the “Loss” and
examine “your” books and records.
Also permit “us” to take samples of damaged and undamaged property for inspection, testing and anal-
ysis, and permit “us” to make copies from “your” books and records.
g. “We” may examine any insured under oath, while not in the presence of any other insured (or any
officer, director, "Employee", independent contractor, agent or representative of any insured) and at
such times as may be reasonably required, about any matter relating to this insurance or the claim,
including an insured’s books and records. In the event of an examination, an insured’s (or any officer,
director, employee, independent contractor, agent or representative of any insured’s) answers must be
signed.
h. Immediately send “us” copies of any demands, notices, summonses or legal papers received in con-
nection with the claim or "Suit".
i. Cooperate with “us” in the investigation, settlement or defense of the claim or suit.
10. Insurance under Two or More Coverages
If two or more of this policy’s coverages apply to the same “Loss”, “we” will not pay more than the
actual amount of the “Loss” not exceeding the applicable Limit of Insurance.
11. How Covered Property Will Be Valued in the Event of "Loss"
a. Actual Cash Value
If a "Loss" occurs and the valuation basis shown in the Declarations applicable to the Covered Prop-
erty is Actual Cash Value, “we” will determine the value of the lost or damaged property at Actual Cash
Value as of the time of the "Loss".
b. Replacement Cost
If a "Loss" occurs and the valuation basis shown in the Declarations applicable to the Covered Prop-
erty is Replacement Cost:
(1) “We” will determine the value of the lost or damaged property at Replacement Cost as of the time
of "Loss", except as provided below.
(2) “You” may make a claim for "Loss" covered by this insurance on an Actual Cash Value basis in-
stead of a Replacement Cost basis. In the event you elect to have "Loss" settled on an Actual
Cash Value basis, “you” may still make a claim for the addition coverage which Replacement Cost
provides if “you” notify “us” of “your” intent to do so within 180 days after the loss or damage.
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(3) “We” will not pay on a Replacement Cost basis for any "Loss" until the lost or damaged property is
actually repaired or replaced.
(4) “We” will not pay more for the "Loss" on a Replacement Cost basis than the least of the following:
(a) The limit of insurance applicable to the lost or damaged property;
(b) The cost to replace, on the same premises, the lost or damaged property with other new prop-
erty:
(i) Of like kind and quality; and
(ii) Used for the same purpose; or
(c) The amount “you” actually spend that is necessary to repair or replace the lost or damaged
property.
c. “Stated Value”
If a "Loss" occurs and the valuation basis shown under the declarations is “Stated Value”, “we” will
determine the value of the lost or damaged property at Stated Value as of the time of the "Loss" ac-
cording to the dated schedule on file with “us”.
12. Loss Payment
a. “We” will give notice of “our” intentions within thirty (30) days after we receive the sworn proof of loss or
a judgment against “you”.
b. “We” will not pay “you” more than “your” financial interest in the Covered Property.
c. “We” may adjust any “Loss” with the owners of Covered Property if other than “you”. If “we” pay the
owners, such payments will satisfy “your” claim against “us” for “your” legal liability for Covered Prop-
erty owned by others. “We” will not pay the owners more than their financial interest in the Covered
Property.
d. “We” will pay for a "Loss" within 30 days after “we” receive the sworn proof of loss if “you” have com-
plied with all the terms of this Coverage Part and:
(i) “We” have reached agreement with “you” on the amount of the "Loss"; or
(ii) An appraisal award has been made.
e. “We” will not be liable for any part of a “Loss” that has been paid or made good by others.
13. Other Insurance
a. “You” may have other insurance subject to the same plan, terms, conditions and provisions as the
insurance under this Coverage Part. If “you” do, “we” will pay “our” share of the covered “Loss”. “our”
share is the proportion that the applicable Limit of Insurance under this Coverage Part bears to the
Limits of Insurance of all insurance covering on the same basis.
b. If other insurance covers the same “Loss”, other than that described in a. above, “we” will pay only for
the amount of covered “Loss” in excess of the amount due from that other insurance, whether “you”
can collect on it or not. But “we” will not pay more than the applicable Limit of Insurance.
14. Pair, Sets or Parts
a. Pair or Set
In case of “Loss” to any part of a pair or set, “we” will pay no more than the least of the following:
(i) The cost to repair or replace any part to restore the pair or set to its value before the “Loss”; or
(ii) The difference between the values of the pair or set before and after the “Loss”.
b. Parts
In case of “Loss” to any part of “Covered Property” consisting of several parts when complete, “we”
will only pay for the value of the lost or damaged part.
15. Loss Payee
“We” will pay “you” and any loss payees, including blanket loss payees, as the interest of each may ap-
pear in a written agreement with “you” prior to a “Loss”.
“You” will supply the name address and telephone number of each loss payee in the event of a "Loss".
16. Recovered Property
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If either “you” or “we” recover any property after loss settlement, that party must give the other prompt
notice. At “your” option, the property will be returned to “you”. “You” must then return to “us” the amount
“we” paid to “you” for the property. “We” will pay recovery expenses and the expenses to repair the re-
covered property, subject to the Limit of Insurance.
17. Reinstatement of Limit after Loss
The Limit of Insurance will not be reduced by the payment of any claim, except for total “Loss” of a sched-
uled item, or if an annual aggregate is exhausted.
18. Transfer of Rights of Recovery against Others to “Us”
If any person or organization to or for whom “we” make a payment under this Coverage Part has rights to
recover damages from another, those rights are transferred to “us” to the extent of “our” payment. That
person or organization must do everything necessary to secure “our” rights and must do nothing after “Loss”
to impair them. If that person or organization does anything to impair “our” rights after a “Loss”, “we” will not
have to pay the “Loss”. But “you” may waive “your” rights against another party by giving notice to “us”
and the other party in writing:
a. Prior to a “Loss”.
b. After a “Loss” only if, at time of “Loss”, that party is one of the following:
(i) Someone insured by this insurance; or
(ii) A business firm:
(a) Owned or controlled by “you”; or
(b) That owns or controls “you”.
This will not restrict “your” insurance.
19. Concealment, Misrepresentation or Fraud
This Coverage Form is void in any case of fraud, intentional concealment or misrepresentation of a ma-
terial fact, by “you” or any other insured, at any time, concerning:
a. This Coverage Form;
b. The Covered Property;
c. “Your” interest in the Covered Property;
d. A claim under this Coverage Form.
20. Acts by Others beyond “Your” Control
Any act or neglect of any person other than “you” beyond “your” direction or control will not affect this
insurance. The breach of any condition of this Coverage Part at any one or more locations will not affect
coverage at any location where, at the time of “Loss”, the breach of condition does not exist.
21. Legal Action against “Us”
a. “You” may not bring a legal action against “us” for “Loss” to Covered Property under this coverage
form unless:
(i) There has been full compliance with all the terms of this coverage form; and
(ii) The action is brought within two (2) years after “you” first have knowledge of the "Loss".
If the state law applicable to this coverage requires a different time period within which suit may be brought,
this provision is amended to conform to such law.
22. No Benefit to Bailee
No person or organization, other than “you”, having custody of Covered Property will benefit from this in-
surance.
23. Policy Period
“We” cover “Loss” commencing:
a. During the policy period shown in the General Declarations the policy period begins and ends at 12:01
a.m., Standard Time, at “your” address shown in the General Declarations. But if this policy replaces
a policy which expires at noon Standard Time on the effective date of this policy, then this policy will
CB 4710 10 16 © 2016, AGCS Marine Insurance Company, Chicago, IL. All rights reserved. Page 14 of 15
Includes copyrighted material of Insurance Services Office, Inc., with its permission.
not be effective until the policy being replaced expires. In those states which require policy periods to
begin and end at noon Standard Time, this policy will begin and end at noon Standard Time; and,
b. Within the coverage territory.
24. “Your” Name and Address
“Your” name and address as the Named Insured shall be as specified in the General Declarations.
25. The Declarations
The Declarations show “you” which coverages “you” have purchased and the limits of insurance that apply.
“You” have only those coverages and amounts of insurance. If this coverage applies
only at specified locations, they are shown in the Declarations.
By accepting this policy, “you” agree that:
a. The statements in the Declarations are “your” agreements and representations; and
b. That this policy is issued in reliance on the truth of such representations.
26. Coverage Territory
“We” cover property wherever located within:
a. The Continental United States of America;
b. Alaska;
c. Hawaii;
d. Puerto Rico; and
e. Canada.
27. Salvage Recovery
In the event of any salvage recovery resulting from a Covered Cause of Loss, such salvage recovery shall
be paid first to “us” up to the full amount of the covered “Loss”, and then to “you”.
28. Partial Loss, Waiver of Depreciation
If, under the valuation basis specified in the Declarations, Actual Cash Value is specified for the item in-
cluded, no deduction shall be taken on the adjustment of any partial loss that does not exceed 20% of the
Actual Cash Value of the item involved.
If two of more items are involved in the same loss occurrence, this condition shall apply to each item sep-
arately.
29. Sanctions
Whenever coverage provided by this policy would be in violation of any U.S. economic or trade sanctions
such as, but not limited to, those sanctions administered and enforced by the U.S. Treasury Department's
Office of Foreign Assets Control ("OFAC"), such coverage shall be null and void.
F. Definitions
1. "Fungi" means any type or form of fungus, including mold or mildew and any mycotoxins, spores, scents or
by-products produced or released by fungi.
2. "Pollutants" means any solid, liquid, gaseous, or thermal irritant or contaminant including smoke, vapor,
soot, fumes, acids, alkalis, chemicals and waste. Waste includes material to be recycled, reconditioned or
reclaimed.
3. “Loss of Earnings” means the actual loss of net earnings which result from the project’s delay.
4. “Rental Value” means the actual loss of net rental income (net profit or loss before income taxes) that would
have been earned if there had been no “Loss”, less charges and expenses that do not continue during the
period of delay.
5. “Sinkhole Collapse” means the sudden sinking or collapse of land into underground empty space created
by the action of water on limestone or dolomite. It does not include the cost of filling sinkholes or sinking
or collapse of land into man-made underground cavities.
6. “Site” means one of the locations where “you” are working with Covered Property that is insured by this
policy.
CB 4710 10 16 © 2016, AGCS Marine Insurance Company, Chicago, IL. All rights reserved. Page 15 of 15
Includes copyrighted material of Insurance Services Office, Inc., with its permission.
7. “Stated Value” means the Limit of Insurance, or no more than the proportion of loss of property bears to the
limit of insurance shown under the schedule.
8. “Structure” means property, other than buildings, that are constructed by “you” and insured by this policy.
9. “Loss” means direct and accidental physical loss, destruction or damage caused by a Covered Cause of
Loss external to any Property.
10. “Vehicle” means a land motorized vehicle, private passenger type vehicle, truck, tractor, trailer, semitrailer
or dolly used to convert a semitrailer into a trailer.
11. "Occurrence" means any one "Loss", catastrophe, disaster, casualty or series of "Losses", catastrophes,
disasters or casualties arising out of one event.
12. “Employee” means:
a. Any natural person:
(1) While in “your” service; and
(2) Whom “you” compensate directly by salary, wages or commissions; and
(3) Whom “you” have the right to direct and control while performing services for “you”; or
(4) Any natural person employed by an employment contractor while that person is subject to “your”
direction and control and performing services for “you”.
b. But "Employee" does not mean any:
(1) Agent, broker, factor, commission merchant, consignee, independent contractor or representative
of the same general character unless an owner operator “you” have hired;
(2) Director or trustee except while performing acts coming within the scope of the usual duties of an
employee; or
(3) "Employee" for whom similar prior insurance has been cancelled and not been reinstated since the
last cancellation.
13. “Fire Resistive” means buildings where the exterior walls, floors and roof are constructed of masonry or
fire resistive material with a fire resistance rating of two hours or more. Also included are buildings that
are constructed of masonry materials with floors, joist members and roofs of metal or steel construction.
14. “Frame” means any building which in its finished form, is composed of more than 20% wood frame
construction.
15. “Joisted Masonry” means any building with exterior walls that are constructed of masonry materials such
as brick, concrete, hollow concrete block, stone or similar material with floors or roof joist members of
wood construction. This would include tilt-up construction.
16. “Non-combustible” means any building where the exterior walls and floors are constructed of and sup-
ported by unprotected metal or steel.
17. “Masonry Non-combustible” means buildings with exterior walls or masonry that are not less than four
inches thick or buildings with exterior walls of fire resistive construction with a fire resistance rating of not
less than one hour.
18. “Modified Fire Resistive” means buildings with exterior walls, floors and roofs of masonry materials or fire
resistive materials with a fire resistance rating of less than two hours, but no less than one hour.
AAIS This endorsement changes
COP 232CA Ed 2.0 the policy
Page 1 of 1 -- PLEASE READ THIS CAREFULLY --
LOSS PAYABLE OPTIONS-CALIFORNIA
In addition to the policy "terms" which are contained in other sections of the Commercial Output Program
Coverages, the following conditions apply to the property described on the Loss Payable Schedule and
only when indicated by an X on the schedule.
LOSS PAYABLE
Any loss shall be adjusted with "you" and shall be payable to "you" and the loss payee shown on the
schedule as "your" and their interests appear.
LENDER'S LOSS PAYABLE
Any loss shall be payable to "you" and the loss payee shown on the schedule as interests appear. If more
than one loss payee is named, they shall be paid in order of precedence.
The insurance for the loss payee continues in effect even when "your" insurance may be void because of
"your" acts, neglect, or failure to comply with the coverage "terms". The insurance for the loss payee does
not continue in effect if the loss payee is aware of changes in ownership or substantial increase in risk
and does not notify "us".
If "we" cancel this policy, "we" notify the loss payee at least ten days before the effective date of cancella-
tion if "we" cancel for "your" nonpayment of premium, or 30 days before the effective date of cancellation
if "we" cancel for any other reason.
"We" may request payment of the premium from the loss payee, if "you" fail to pay the premium.
If "we" pay the loss payee for a loss where "your" insurance may be void, the loss payee's right to collect
that portion of the debt from "you" then belongs to "us". This does not affect the loss payee's right to
collect the remainder of the debt from "you". As an alternative, "we" may pay the loss payee the
remaining principal and accrued interest in return for a full assignment of the loss payee's interest and
any instruments given as security for the debt.
If "we" choose not to renew this policy, "we" give written notice to the loss payee at least ten days before
the expiration date of this policy.
CONTRACT OF SALE
Any loss shall be adjusted with "you" and shall be payable to "you" and the loss payee shown on the
schedule as "your" and their interests appear.
The loss payee shown on the schedule is a person or organization "you" have entered into a contract with
for the sale of covered property.
When covered property is the subject of a contract of sale, the word "you" also means the loss payee.
COP 232CA Ed 2.0
Copyright MCMXCV American Association of Insurance Services
Rodan Builders for Installation of bollards for the
materials bunker
Final Audit Report 2024-07-29
Created:2024-07-26
By:Webmaster Admin (webmaster@cupertino.org)
Status:Signed
Transaction ID:CBJCHBCAABAA80ajtopw5qzPz5TcsjR7q5l10xmLXZL6
"Rodan Builders for Installation of bollards for the materials bunk
er" History
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Signer gmerrill@rodanbuilders.com entered name at signing as Greg Merrill
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Signer Christopher Jensen (christopherj@cupertino.org) entered name at signing as Christopher D. Jensen
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Agreement completed.
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