WRITTEN REQUEST AND AT NO
COST TO OWNER;
(III)
PRESERVE AND PROTECT THE RIGHTS OF OWNER UNDER THIS AGREEMENT AND
WITH RESPECT TO THE WORK TO BE PERFORMED;
(IV)
REQUIRE THAT THE CONTRACTOR PROVIDE AND MAINTAIN THE INSURANCE
SPECIFIED IN SCHEDULE 4;
(V)
REQUIRE THAT THE CONTRACTOR PROVIDE THE INDEMNIFICATION REQUIRED
BY SECTION 11.2(B); AND
(VI)
OBLIGATE CONTRACTOR TO EXECUTE A WAIVER AND RELEASE WITH RESPECT
TO ANY LIEN RIGHTS FOR EACH PAYMENT RECEIVED BY SUCH CONTRACTOR FOR THE WORK.
(C)
PRIOR TO ENTERING INTO ANY CONTRACT WITH ANY CONTRACTOR,
CONSTRUCTION MANAGER SHALL HAVE PERFORMED A REASONABLE LEVEL OF DUE DILIGENCE TO
DETERMINE WHETHER, FOR THE PORTION OF THE WORK THE CONTRACTOR IS TO PERFORM,
SUCH CONTRACTOR IS (I) FULLY EXPERIENCED, PROPERLY QUALIFIED, PROPERLY LICENSED,
PROPERLY EQUIPPED AND PROPERLY ORGANIZED; (II) FINANCIALLY SOLVENT AT THE TIME
SUCH CONTRACTOR ENTERS INTO A CONTRACT WITH CONSTRUCTION MANAGER;
(III) AUTHORIZED TO DO BUSINESS IN THE JURISDICTIONS IN WHICH SUCH CONTRACTOR
WILL PERFORM; AND (IV) FAMILIAR WITH THE PORTION OF THE WORK TO BE PERFORMED.
(D)
CONSTRUCTION MANAGER SHALL PROVIDE TO OWNER A COPY OF EACH
CONTRACT ENTERED INTO WITH A CONTRACTOR WITHIN TWO (2) BUSINESS DAYS OF
EXECUTION.
ARTICLE III.
GENERAL OBLIGATIONS OF CONSTRUCTION MANAGER
3.1
STANDARD OF PERFORMANCE.
CONSTRUCTION MANAGER SHALL PERFORM THE
WORK AND CARRY OUT ITS OTHER OBLIGATIONS HEREUNDER, AND SHALL REQUIRE ALL OF ITS
EMPLOYEES, CONTRACTORS, AGENTS,
5
materialmen and vendors furnishing labor, materials or services in any way
relating to this Agreement or affecting the Project to carry out their
respective responsibilities in accordance with (a) the terms of this Agreement,
(b) safe, sound, efficient, workmanlike, economically prudent, and
environmentally sound practices, and (c) all Laws, permits and licenses
applicable to the Project and the completion thereof. Construction Manager
agrees to, and shall require its Contractors to, (i) use its best professional
judgment in the performance of the Work, and (ii) use the degree of care and
skill ordinarily exercised, under similar circumstances, by reputable
contractors performing comparable services.
3.2
CONSTRUCTION MANAGER'S EMPLOYEES, CONSULTANTS AND CONTRACTORS.
CONSTRUCTION MANAGER SHALL PAY ALL EXPENSES IN CONNECTION WITH EMPLOYING,
RETAINING AND SUPERVISING THE CONTRACTORS AND ANY OTHER PERSONS NECESSARY OR
REQUIRED FOR THE PERFORMANCE OF THE WORK, INCLUDING COMPENSATION, SALARIES,
WAGES, OVERHEAD AND ADMINISTRATIVE EXPENSES INCURRED BY CONSTRUCTION MANAGER,
AND AS APPLICABLE, FICA AND MEDICARE TAXES, WORKERS' COMPENSATION INSURANCE,
RETIREMENT AND INSURANCE BENEFITS AND OTHER SUCH EXPENSES. ALL SERVICES
PERFORMED OR MATERIALS SUPPLIED BY ANY AFFILIATE OF CONSTRUCTION MANAGER SHALL
BE PERFORMED OR SUPPLIED AT TERMS AND RATES THAT ARE REASONABLY COMPETITIVE WITH
THE TERMS AND RATES KNOWN TO CONSTRUCTION MANAGER TO BE PREVAILING IN THE
INDUSTRY AT THE TIME FOR THE AREA OF OPERATIONS.
3.3
PAYMENTS PURSUANT TO AGREEMENTS.
CONSTRUCTION MANAGER SHALL
PROMPTLY PAY, WHEN DUE, ALL UNDISPUTED AMOUNTS DUE AND PAYABLE TO (A) ALL
CONTRACTORS IN ACCORDANCE WITH THE TERMS OF APPLICABLE CONTRACTOR CONTRACT, AND
(B) ANY OTHER THIRD PARTY PROVIDING GOODS OR SERVICES IN CONNECTION WITH THE
WORK.
3.4
OWNERSHIP AND CUSTODY OF AND ACCESS TO DATA.