Document:

exv10w1

Exhibit 10.1

	 	 	 

	

	 	Document A102TM – 2007

Standard Form of Agreement Between Owner and Contractor where the basis of
payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price

AGREEMENT made as of the 8th day of June in the year 2010

(In words, indicate day, month and year.)

BETWEEN the Owner:

(Name, address and other information)

Washington Gas Light Company

6801 Industrial Blvd.

Springfield, Virginia 22151

and the Contractor:

(Name, address and other information)

Hitt Contracting Inc.

2900 Fairview Park Drive

Falls Church, Virginia 22042

for the following Project:

(Name, location and detailed description)

The Springfield Operations Center as represented in the drawings and specifications

The Architect:

(Name, address and other information)

Fox Architects

1121 14th Street, NW

3rd Floor

Washington, D.C. 20005

The Owner and Contractor agree as follows.

ADDITIONS AND DELETIONS:

The author of this document has added information needed for its completion. The author may also
have revised the text of the original AIA standard form. An Additions and Deletions Report that
notes added information as well as revisions to the standard form text is available from the author
and should be reviewed. A vertical line in the left margin of this document indicates where the
author has added necessary information and where the author has added to or deleted from the
original AIA text.

This document has important legal consequences. Consultation with an attorney is encouraged with
respect to its completion or modification.

This document is not intended for use in competitive bidding.

AIA Document A201TM–2007, General Conditions of the Contract for Construction, is adopted in this
document by reference. Do not use with other general conditions unless this document is modified.

	 	 	 	 	 	 	 	 	 

	Init.

/	 	AIA Document
A102TM — 2007 (formerly A111TM — 1997).
Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974,
1978, 1987, 1997 and 2007 by The American Institute of Architects.
All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 11:40:30 on 06/08/2010 under Order No.3070003063_1 which expires on 03/08/2011, and is not for
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TABLE OF ARTICLES

	1	 	THE CONTRACT DOCUMENTS
	 
	2	 	THE WORK OF THIS CONTRACT
	 
	3	 	RELATIONSHIP OF THE PARTIES
	 
	4	 	DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION
	 
	5	 	CONTRACT SUM
	 
	6	 	CHANGES IN THE WORK
	 
	7	 	COSTS TO BE REIMBURSED
	 
	8	 	COSTS NOT TO BE REIMBURSED
	 
	9	 	DISCOUNTS, REBATES AND REFUNDS
	 
	10	 	SUBCONTRACTS AND OTHER AGREEMENTS
	 
	11	 	ACCOUNTING RECORDS
	 
	12	 	PAYMENTS
	 
	13	 	DISPUTE RESOLUTION
	 
	14	 	TERMINATION OR SUSPENSION
	 
	15	 	MISCELLANEOUS PROVISIONS
	 
	16	 	ENUMERATION OF CONTRACT DOCUMENTS
	 
	17	 	INSURANCE AND BONDS

ARTICLE 1 THE CONTRACT DOCUMENTS

The Contract Documents consist of this Agreement, Conditions of the Contract (General,
Supplementary and other Conditions), Drawings, Specifications, Addenda issued prior to execution of
this Agreement, other documents listed in this Agreement and Modifications issued after execution
of this Agreement, all of which form the Contract, and are as fully a part of the Contract as if
attached to this Agreement or repeated herein. The Contract represents the entire and integrated
agreement between the parties hereto and supersedes prior negotiations, representations or
agreements, either written or oral. If anything in the other Contract Documents, other than a
Modification, is inconsistent with this Agreement, this Agreement shall govern.

ARTICLE 2 THE WORK OF THIS CONTRACT

The Contractor shall fully execute the Work described in the Contract Documents, except as
specifically indicated in the Contract Documents to be the responsibility of others.

ARTICLE
3 RELATIONSHIP OF THE PARTIES

The Contractor accepts the relationship of trust and confidence established by this Agreement and
covenants with the Owner to cooperate with the Architect and Owner and exercise the Contractor’s
skill and judgment in furthering the interests of the Owner; to furnish efficient business
administration and supervision; to furnish at all times an adequate supply of workers and
materials; and to perform the Work in an expeditious and economical manner consistent with the
Owner’s interests. The Owner agrees to furnish and approve, in a timely manner, information

	 	 	 	 	 	 	 	 	 

	Init.

/	 	AIA Document
A102TM — 2007 (formerly A111TM — 1997).
Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974,
1978, 1987, 1997 and 2007 by The American Institute of Architects.
All rights reserved. WARNING: This
AIA® Document is protected by
U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this
AIA® Document, or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible
under the law. This document was produced by AIA software at 11:40:30 on 06/08/2010 under Order No.3070003063_1 which expires on 03/08/2011, and is not for
resale.	 	 	2	 
	 
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required by the Contractor and to make payments to the Contractor in accordance with the
requirements of the Contract Documents.

ARTICLE 4 DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION

§ 4.1 The date of commencement of the Work shall be the date of this Agreement unless a
different date is stated
below or provision is made for the date to be fixed in a notice to proceed issued by the Owner.

Excepting the Pre-Construction Services which commenced on or about February 3, 2010, the date
of commencement of the Work shall be established based upon a written authorization to proceed
(“Authorization to Proceed”) from Owner to Contractor. Pre-Construction Services shall include
bidding the Construction Documents to subcontractors and suppliers; including such services as
delineated in paragraphs 3.1 through 3.5 of the Scope of Services in the RFP issued by Washington
Gas and Articles 10 herein. Contractor is not authorized to obligate Owner to any cost of the Work
without Owner’s express written approval.

Should the Owner elect not to issue the Authorization to Proceed for any reason during or
subsequent to the completion of Preconstruction Services (effectively canceling the project), the
Owner agrees to pay the Contractor Ninety-Thousand Dollars ($90,000) for the Preconstruction
Services performed by Contractor. In the event the Owner issues the Authorization to Proceed
(effectively proceeding with the project), then Owner shall only pay Forty-Thousand Dollars
($40,000) to the Contractor for the Contractor’s performance of Pre-Construction Services.

If, prior to commencement of the Work, the Owner requires time to file mortgages and other security
interests, the Owner’s time requirement shall be as follows:

not applicable

§ 4.2 The Contract Time shall be measured from the date of commencement.

§ 4.3 The Contractor shall achieve Substantial Completion of the Work as follows:

The date of Substantial Completion for each Portion of the Work shall be mutually agreed upon
between Owner and Contractor and shall be established in the Authorization to proceed issued by
Owner.

	 	 	 
	Portion of Work	 	Substantial Completion date
	Sitework
	 	As Established in the Authorization to Proceed
	Industrial Building
	 	As Established in the Authorization to Proceed
	Parking Garage
	 	As Established in the Authorization to Proceed
	Office Building
	 	As Established in the Authorization to Proceed

, subject to adjustments of this Contract Time as provided in the Contract Documents.

(Insert provisions, if any, for liquidated damages relating to failure to achieve Substantial
Completion on time, or for bonus payments for early completion of the Work.)

not applicable

ARTICLE 5 CONTRACT SUM

§ 5.1 The Owner shall pay the Contractor the Contract Sum in current funds for the Contractor’s
performance of the Contract. The Contract Sum is the Cost of the Work as defined in Article 7 plus the Contractor’s
Overhead & Fee.

§ 5.1.1 The Contractor’s Overhead & Fee:

(State a lump sum, percentage of Cost of the Work or other provision for determining the
Contractor’s Fee.)

[REDACTED]

§ 5.1.2 The method of adjustment of the Contractor’s Overhead & Fee for changes in the Work:

	 	 	 	 	 	 	 	 	 

	Init.

/	 	AIA Document
A102TM — 2007 (formerly A111TM — 1997).
Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974,
1978, 1987, 1997 and 2007 by The American Institute of Architects.
All rights reserved. WARNING: This
AIA® Document is protected by
U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this
AIA® Document, or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible
under the law. This document was produced by AIA software at 11:40:30 on 06/08/2010 under Order No.3070003063_1 which expires on 03/08/2011, and is not for
resale.	 	 	3	 
	 
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One and one quarter percent (1.25%) Contractor’s Overhead & Fee for all change orders which
shall be applied to the net of both adds and deducts or increases or decreases in the Cost of the
Work. Notwithstanding anything to the contrary contained herein, Contractor shall not charge any
Contractor Overhead & Fee whatsoever for the first $500,000 in change order costs from
subcontractors, self-performed work or suppliers, but shall charge only for the actual reasonable
costs from subcontractors, self-performed work or suppliers; any and all of which shall be subject
to Owner’s approval.

§ 5.1.3 Limitations, if any, on a Subcontractor’s overhead and profit for increases in the cost of
its portion of the Work:

Ten percent (10%)

§5.1.4 Rental rates for Contractor-owned equipment shall not exceed Zero ( 0% ) of the
standard rate paid at the place of the Project.

§ 5.1.5 Unit prices, if any:

(Identify and state the unit price; state the quantity limitations, if any, to which the
unit price will be applicable.)

	 	 	 	 	 
	Item	 	Units and Limitations	 	Price Per Unit
	To Be Determined, if
applicable

	 	To Be Determined, if applicable
	 	To Be Determined, if
applicable

§ 5.2 GUARANTEED MAXIMUM PRICE

§ 5.2.1 The Contract Sum is guaranteed by the Contractor not to exceed see below provisions
        , subject to
additions and deductions by Change Order as provided in the Contract Documents. The Contract Sum is
referred to
synonymously in the Contract Documents as the Contract Sum or the Guaranteed Maximum Price (“GMP”).
Costs
which would cause the Guaranteed Maximum Price to be exceeded shall be paid by the Contractor
without
reimbursement by the Owner.

(Paragraph deleted)

The GMP shall be expressly delineated in the Authorization to Proceed by Owner and shall be based
upon the aggregate sum of the Best Qualified Bids (defined herein) from subcontractor and suppliers
as each are approved by Owner plus Contractor’s General Conditions (which such General Conditions
are delineated in Exhibit E-1 and E-2 attached hereto and made a part hereof), Contractor’s
Overhead & Fee, Contingency as delineated herein and other Owner approved direct Contractor costs
where no Overhead & Fee is charged (i.e., builder’s risk insurance, performance and payment bonds,
permits, government inspection fees).

§ 5.2.2 The Guaranteed Maximum Price is based on the following alternates, if any, which are
described in the
Contract Documents and are hereby accepted by the Owner:

(Paragraph deleted)

The alternates are to-be-determined and will be established as part of the Authorization to
Proceed.

§ 5.2.3 Allowances included in the Guaranteed Maximum Price,
if any:

(Paragraph deleted)

	 	 	 
	Item	 	Price
	Allowances, if any, are to-be-determined and shall be
established as part of the Authorization to Proceed.
	 	 

§ 5.2.4 Assumptions, if any, on which the Guaranteed Maximum Price is based:

Notwithstanding the Contingency noted in this Section 5.2.4, assumptions, if any, are
to-be-determined and shall be established as part of the Authorization to Proceed.

Owner agrees to establish, as part of the GMP, a Contingency in the amount of Three Hundred
Thousand Dollars ($300,000). The Contingency is established solely for the purpose to resolve
Contractor claims with regards to

	 	 	 	 	 	 	 	 	 

	Init.

/	 	AIA Document
A102TM — 2007 (formerly A111TM — 1997).
Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974,
1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 11:40:30 on 06/08/2010 under Order No.3070003063_1 which expires on 03/08/2011, and is not for
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discrepancies (“Gaps in the Scope of Work”), to the extent any exist, between the Plans and
Specifications and the GMP at the subcontractor and/or supplier level. Contractor shall use its
commercially reasonable best efforts to obviate, mitigate or limit any such claims prior to seeking
Owner’s approval to draw against the Contingency.

Any and all uses of the Contingency shall be subject to the Owner’s express approval prior to its
use by Contractor. Any draw down by the Contractor of the Contingency, as approved by Owner, shall
include Contractor’s Overhead & Fee, but shall not include additional Contractor General
Conditions; unless expressly approved by Owner. Any remaining unused Contingency shall, at the
final completion of the Project, be credited one-hundred percent (100%) to the Owner. Such
Contingency is not part of any Shared Savings calculations. It is anticipated by Contractor and
Owner that the Contingency is sufficient for the purposes expressed herein. Nonetheless and
notwithstanding anything to the contrary contained herein, in the event that the Owner approved
draw down on the Contingency is exhausted, the Contractor may seek from Owner additional
contingency funds to cover other Gaps in the Scope of Work which shall be subject to Owner’s
reasonable approval. Notwithstanding the Contingency noted above, the Owner shall carry within its
Project budget other contingencies Owner deems appropriate in its sole and absolute discretion.

§ 5.2.5 To the extent that the Drawings and Specifications are anticipated to require further
development by the Architect, the Contractor has provided in the Guaranteed Maximum Price for such
further development consistent with the Contract Documents and reasonably inferable therefrom and
as expressly approved by Owner. Such further development does not include such things as changes in
scope, systems, kinds and quality of materials, finishes or equipment, all of which, if changed and
required, shall be incorporated by Change Order.

§ 5.2.6 Shared Savings Between Owner and Contractor. Owner desires to incentivize the Contractor to
help Owner to reduce the cost of the Work without diluting the functionality or workmanship quality
of the completed Work. Any Shared Savings will accrue seventy-five percent (75%) to the benefit of
the Owner and twenty-five percent (25%) to the benefit of the Contractor. Shared Savings are
defined and determined as follows:

	 	a)	 	Shared Savings are those savings derived solely from all subcontracted work including
but not limited to suppliers and sundry vendors.
	 
	 	b)	 	Shared Savings shall be established in the following manner:

	 	1.	 	Upon receipt of the initial bids for the Work from subcontractors and suppliers,
Contractor shall
recommend and Owner shall select the Best Qualified Bidder for each trade or work
discipline. All selections shall be subject to Owner’s express approval and in Owner’s
sole and absolute discretion.
	 
	 	2.	 	The Best Qualified Bidder from each trade and/or supplier discipline is the bidder which
offers the
best overall value to Owner taking into account cost, schedule, project team, supplier
diversity — i.e., Minority Disadvantaged Business Enterprise (“MDBE”) status, ability
to perform to Contractor’s and Owner’s expectations, and if any, clarifications and
exceptions.
	 
	 	3.	 	The sum total of the Best Qualified Bidder from each trade and/or supplier discipline
combined with
Contractor’s General Conditions, Overhead & Fee and other Owner approved direct
Contractor costs where no Overhead & Fee is charged (i.e., builder’s risk insurance,
performance and payment bonds, permits, government inspection fees) shall establish
the GMP; which shall become the Contract Sum. In no event shall the GMP be established
as the Contract Sum without the Owner’s advance written approval; which Owner may
withhold in its sole and absolute discretion.
	 
	 	4.	 	Upon establishment of the Contract Sum and Authorization to Proceed from Owner in part or
in
whole, Contractor shall endeavor, in good faith to ethically negotiate best and final
prices (“BAFO Prices”) from the Best Qualified Bidders to reduce the cost of the Work
to the Owner. The cumulative sum of the mathematical difference between each of the
Best Qualified Bidders’ original bids and each of the BAFO Prices shall establish the
Shared Savings.
	 
	 	5.	 	Contractor’s Overhead & Fee shall not be applied to or paid on top of any of Contractor’s
Shared
Savings.
	 
	 	6.	 	Contractor shall not be allowed to add costs or allowances of any kind to the
original bids of the Best Qualified Bidders or to the BAFO Prices without the Owner’s
advance written approval; which shall not be unreasonably withheld by the Owner.

	 	 	 	 	 	 	 	 	 

	Init.

/	 	AIA Document
A102TM — 2007 (formerly A111TM — 1997).
Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974,
1978, 1987, 1997 and 2007 by The American Institute of Architects.
All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 11:40:30 on 06/08/2010 under Order No.3070003063_1 which expires on 03/08/2011, and is not for
resale.	 	 	5	 
	 
	 	User Notes:	 	(1751853946)	 	 	 	 

 

 

	 	6.	 	Contractor’s General Conditions, Overhead & Fee are not part of any Shared Savings
calculations.
	 
	 	7.	 	Contractor’s allowances and/or contingencies are not part of any Shared Savings
calculations. Any
allowances or contingencies (to the extent the Owner allows and expressly approves
any contingencies) not fully obligated or spent shall accrue one hundred percent
(100%) to the Owner.
	 
	 	8.	 	Reductions in scope of Work which reduce the Contract Sum, as expressly approved by
Owner and
implemented by Contractor, are not a part of any Shared Savings calculations. Any
savings resulting from such reductions in scope of Work shall accrue one hundred
percent (100%) to the Owner. However, in such event, Contractor shall not have to
credit to Owner and shall be entitled to keep its proportionate Overhead & Fee in the
Contract Sum directly related to the proportionate value of the reduced Work by
Owner.
	 
	 	9.	 	Self-performed work shall not be included in any Shared Savings calculation unless there
is a direct
benefit to the Owner and only upon Owner’s advance approval; which may be withheld in
Owner’s sole and absolute discretion.

	 	c)	 	Contractor shall not obligate, appropriate, use or draw down on any of Contractor’s
portion of Shared Savings without the Owner’s advance written approval, which Owner may
withhold in its sole and absolute discretion, except at the end of the project and in
accordance with the procedures herein.
	 
	 	d)	 	Owner, at the sooner to occur of 120 calendar days from the Authorization to Proceed
or the final establishment of the BAFO Prices for the Work, in its sole and absolute
discretion, may use any and all of its portion of accrued Shared Savings (created through
the Subcontractor Buy Out process) to pay for Owner approved change orders, or Owner may
use any and all of Owner’s accrued portion of the Shared Savings to reduce the Contract
Sum.
	 
	 	e)	 	There shall be no inequitable gain, unjust enrichment or benefit to the Contractor
from the Shared Savings outside the express purpose and calculation of the Shared Savings
as delineated herein.
	 
	 	f)	 	Contractor shall create, maintain and provide Owner a Shared Savings tracking report
on an on-going basis but no less than once per month. Such tracking report will identify
the date, source and amount of the savings by item and in total with Owner’s and
Contractor’s cumulative savings clearly delineated.
	 
	 	g)	 	Contractor shall not be entitled to receive any of Contractor’s accrued Shared
Savings until the final payment by Owner, unless otherwise expressly approved in advance
and in writing by the Owner. Such Shared Savings reconciliation shall be part of the final
payment application submitted by Contractor to Owner. Notwithstanding anything contained
herein to the contrary, Owner may elect to authorize the disbursement to Contractor of
fifty-percent (50%) of Contractor’s accrued Shared Savings at fifty-percent completion of
the Work via a duly prepared and executed Application for Payment as approved by Owner. If
Owner so elects, then the final fifty-percent (50%) of Contractor’s accrued Shared Savings
shall be disbursed by Owner upon Final Completion of the Work via a duly prepared and
executed Application for Payment as approved by Owner.

ARTICLE 6 CHANGES IN THE WORK

§ 6.1 Adjustments to the Guaranteed Maximum Price on account of changes in the Work may be
determined by any of the methods listed in Section 7.3.3 of AIA Document A201–2007, General
Conditions of the Contract for Construction; subject to Owner’s approval.

§ 6.2 In calculating adjustments to subcontracts the terms “cost” and “Fee” as used in Section
7.3.3.3 of AIA Document A201–2007 and the term “costs” as used in Section 7.3.7 of AIA Document
A201–2007 shall have the meanings assigned to them in AIA Document A201–2007 and in Articles 5, 7
and 8 of this Agreement.

§ 6.3 In calculating adjustments to the Guaranteed Maximum Price, the terms “cost” and “costs” as
used in the above-referenced provisions of AIA Document A201–2007 shall mean the Cost of the Work
as defined in Article 7 of this Agreement and the term “Fee” shall mean the Contractor’s Overhead &
Fee as defined in Section 5.1.1 of this Agreement.

§ 6.4 [Intentionally Omitted]

	 	 	 	 	 	 	 	 	 

	Init.

/	 	AIA Document
A102TM — 2007 (formerly A111TM — 1997).
Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974,
1978, 1987, 1997 and 2007 by The American Institute of Architects.
All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 11:40:30 on 06/08/2010 under Order No.3070003063_1 which expires on 03/08/2011, and is not for
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§ 6.5 Any Value Engineering that is accepted must be documented by the Architect and Engineer of
Record with drawings and specifications as necessary to allow competitive pricing by the
subcontractors.

ARTICLE 7 COSTS TO BE REIMBURSED

§ 7.1 COST OF THE WORK

§ 7.1.1 The term Cost of the Work shall mean costs necessarily incurred by the Contractor in
the proper performance
of the Work. Such costs shall be at rates not higher than the standard paid at the place of the
Project except with
prior consent of the Owner. The Cost of the Work shall include only the items set forth in this
Article 7.

§ 7.1.2 Where any cost is subject to the Owner’s prior approval, the Contractor shall obtain this
approval prior to incurring the cost.

§ 7.2 LABOR COSTS

§ 7.2.1 Wages of construction workers directly employed by the Contractor to perform the
construction of the Work at the site or at off-site workshops as delineated in Exhibit E-1 General
Conditions and Exhibit E-2 General Conditions attached hereto and made a part hereof. Such General
Conditions includes all fringe benefits, general and administrative burden and any and all taxes or
sundry costs of any kind applicable to Contractor’s employees excepting only Contractor’s Overhead
& Fee.

§ 7.2.2 Wages or salaries of the Contractor’s supervisory and administrative personnel as
delineated in Exhibit E-1 General Conditions and Exhibit E-2 General Conditions attached hereto and
made a part hereof. Such General Conditions includes all fringe benefits, general and
administrative burden and any and all taxes or sundry costs of any kind applicable to Contractor’s
employees excepting only Contractor’s Overhead & Fee.

§ 7.2.3 Contractor represents and warrants to Owner that the staff and charges delineated in
Exhibits E-1 and E-2 are sufficient to execute the Work using the Contractor’s best skill and
attention. Excepting for changes in the Work approved by the Owner subsequent to the Authorization
to Proceed, there shall be no increase in General Conditions charges.

(Paragraphs deleted)

§ 7.3 SUBCONTRACT COSTS

Payments made by the Contractor to Subcontractors in accordance with the requirements of this
Agreement and the
subcontracts.

§ 7.4 COSTS OF MATERIALS AND EQUIPMENT INCORPORATED IN THE COMPLETED CONSTRUCTION

§ 7.4.1 Costs, including transportation and storage, of materials and equipment incorporated or
to be incorporated in the completed construction.

§ 7.4.2 Costs of materials described in the preceding Section 7.4.1 in excess of those actually
installed to allow for reasonable waste and spoilage. Unused excess materials, if any, shall become
the Owner’s property at the completion of the Work or, at the Owner’s option, shall be sold by the
Contractor. Any amounts realized from such sales shall be credited to the Owner in a change order
as a deduction from the Cost of the Work.

§ 7.5 COSTS OF OTHER MATERIALS AND EQUIPMENT, TEMPORARY FACILITIES AND RELATED ITEMS

§ 7.5.1 Costs
of transportation, storage, installation, maintenance, dismantling and removal of materials,
supplies, temporary facilities, machinery, equipment and hand tools not customarily owned by
construction workers that are provided by the Contractor at the site and fully consumed in the
performance of the Work all of which are provided by Contractor as part of its non-personnel costs
as delineated in Exhibit E-1 General Conditions.

§ 7.5.2 Rental charges for temporary facilities, machinery, equipment and hand tools not
customarily owned by construction workers that are provided by the Contractor from an arms-length
unrelated third party equipment rental company at the site and costs of transportation,
installation, minor repairs, dismantling and removal; which are provided by Contractor as part of
its non-personnel costs to the extent delineated in Exhibit E-1 General Conditions..

§ 7.5.3 Costs of removal of debris from the site of the Work and its proper and legal
disposal; some of which are provided by Contractor as part of its non-personnel costs as delineated in Exhibit E-1 General Conditions.

	 	 	 	 	 	 	 	 	 

	Init.

/	 	AIA Document
A102TM — 2007 (formerly A111TM — 1997).
Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974,
1978, 1987, 1997 and 2007 by The American Institute of Architects.
All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 11:40:30 on 06/08/2010 under Order No.3070003063_1 which expires on 03/08/2011, and is not for
resale.	 	 	7	 
	 
	 	User Notes:	 	(1751853946)	 	 	 	 

 

 

§ 7.5.4 Costs of document reproductions, facsimile transmissions and long-distance telephone
calls, postage and parcel delivery charges, telephone service at the site and reasonable petty
cash expenses of the site office all of which are provided by Contractor as part of its
non-personnel costs as delineated in Exhibit E-1 General Conditions.

§ 7.5.5 [Intentionally Omitted]

§ 7.5.6 Beginning with the Authorization to Proceed, the general conditions costs delineated
in Exhibit-1 General Conditions shall be billed monthly on a pro-rata basis over the entire
schedule for the Work. For example, if the construction schedule approved by the Owner is
seventy-five (75) weeks in duration, then the $1,600,000 of General Conditions costs are divided
equally over that period and billed monthly on the basis of $21,333 per week.

In no event shall general conditions be charged beyond the Substantial Completion date(s) including
but not limited to incomplete, corrective or warranty work.

§ 7.6 MISCELLANEOUS COSTS

§ 7.6.1 Premiums for that portion of bonds required by the Contract Documents that can be
directly attributed to this Contract.

§ 7.6.2 Sales, use or similar taxes imposed by a governmental authority that are related to the
Work and for which the Contractor is liable.

§ 7.6.3 Fees and assessments for the building permit and for other permits, licenses and
inspections for which the Contractor is required by the Contract Documents, or at Owner’s request,
to pay at cost without Contractor mark up.

§ 7.6.4 Fees of laboratories for tests required by the Contract Documents, except those related to
defective or nonconforming Work for which reimbursement is excluded by Section 13.5.3 of AIA
Document A201–2007 or by other provisions of the Contract Documents, and which do not fall within
the scope of Section 7.7.3.

§ 7.6.5 Royalties and license fees paid for the use of a particular design, process or product
required by the Contract Documents; the cost of defending suits or claims for infringement of
patent rights arising from such requirement of the Contract Documents; and payments made in
accordance with legal judgments against the Contractor resulting from such suits or claims and
payments of settlements made with the Owner’s consent. However, such costs of legal defenses,
judgments and settlements shall not be included in the calculation of the Contractor’s Overhead &
Fee or subject to the Guaranteed Maximum Price. If such royalties, fees and costs are excluded by
the last sentence of Section 3.17 of AIA Document A201–2007 or other provisions of the Contract
Documents, then they shall not be included in the Cost of the Work.

§ 7.6.6 [Intentionally Omitted]

§ 7.6.7 Deposits lost for causes other than the Contractor’s negligence or failure to fulfill a
specific responsibility in the Contract Documents.

§ 7.6.8 [Intentionally Omitted]

§7.6.9 [Intentionally Omitted]

§ 7.6.10 That portion of the reasonable expenses of the Contractor’s supervisory or
administrative personnel incurred while traveling in discharge of duties connected with the Work
all of which are provided by Contractor as part of non-personnel costs as delineated in Exhibit E-1
General Conditions (even if the value is $0 in such Exhibit, such costs are included by Contractor
at no additional charge to Owner).

§ 7.7 OTHER COSTS AND EMERGENCIES

§ 7.7.1 Other costs incurred in the performance of the Work if, and to the extent, approved in
advance in writing by the Owner.

	 	 	 	 	 	 	 	 	 

	Init.

/	 	AIA Document
A102TM — 2007 (formerly A111TM — 1997).
Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974,
1978, 1987, 1997 and 2007 by The American Institute of Architects.
All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 11:40:30 on 06/08/2010 under Order No.3070003063_1 which expires on 03/08/2011, and is not for
resale.	 	 	8	 
	 
	 	User Notes:	 	(1751853946)	 	 	 	 

 

 

§ 7.7.2 Costs incurred in taking action to prevent threatened damage, injury or loss in case of an
emergency affecting the safety of persons and property, as provided in Section 10.4 of AIA
Document A201–2007.

§ 7.7.3 Costs of repairing or correcting damaged or nonconforming Work executed by the Contractor,
Subcontractors or suppliers, provided that such damaged or nonconforming Work was not caused by
negligence or failure to fulfill a specific responsibility of the Contractor including but not
limited to its Subcontractors, Suppliers or others under contract with the Contractor.

§ 7.8 RELATED PARTY TRANSACTIONS

§ 7.8.1 For purposes of Section 7.8, the term “related party” shall mean a parent, subsidiary,
affiliate or other entity having common ownership or management with the Contractor; any entity in
which any stockholder in, or management employee of, the Contractor owns any interest in excess
often percent in the aggregate; or any person or entity which has the right to control the business
or affairs of the Contractor. The term “related party” includes any member of the immediate family
of any person identified above.

§ 7.8.2 If any of the costs to be reimbursed arise from a transaction between the Contractor and a
related party, the Contractor shall notify the Owner of the specific nature of the contemplated
transaction, including the identity of the related party and the anticipated cost to be incurred,
before any such transaction is consummated or cost incurred. If the Owner, after such notification,
authorizes the proposed transaction, then the cost incurred shall be included as a cost to be
reimbursed, and the Contractor shall procure the Work, equipment, goods or service from the related
party, as a Subcontractor, according to the terms of Article 10. If the Owner does not authorize
the transaction, the Contractor shall procure the Work, equipment, goods or service from some
person or entity other than a related party according to the terms of Article 10.

ARTICLE 8 COSTS NOT TO BE REIMBURSED

§ 8.1 The Cost of the Work shall not include the items listed below:

	 	.1	 	Salaries and other compensation of the Contractor’s personnel stationed at the
Contractor’s principal
office or offices other than the site office, except as specifically provided in
Section 7.2.;
	 
	 	.2	 	Expenses of the Contractor’s principal office and offices other
than the site office;
	 
	 	.3	 	Overhead and general expenses, except as may be
expressly included in Article 7;
	 
	 	.4	 	The Contractor’s capital expenses, including
interest on the Contractor’s capital employed for the
Work;
	 
	 	.5	 	Except as provided in Section 7.7.3 of this Agreement, costs due to the
negligence or failure of the
Contractor, Subcontractors and suppliers or anyone directly or indirectly employed by
any of them or
for whose acts any of them may be liable to fulfill a specific responsibility of
the Contract;
	 
	 	.6	 	Any cost not specifically and expressly described in Article 7;
and
	 
	 	.7	 	Costs, other than costs included in Change Orders approved by the Owner,
that would cause the
Guaranteed Maximum Price to be exceeded.

ARTICLE 9 DISCOUNTS, REBATES AND REFUNDS

§ 9.1 Cash discounts obtained on payments made by the Contractor shall accrue to the Owner if (1)
before making the payment, the Contractor included them in an Application for Payment and received
payment from the Owner, or (2) the Owner has deposited funds with the Contractor with which to make
payments; otherwise, cash discounts shall accrue to the Contractor. Trade discounts, rebates,
refunds and amounts received from sales of surplus materials and equipment shall accrue to the
Owner, and the Contractor shall make provisions so that they can be obtained by Owner.

§ 9.2 Amounts that accrue to the Owner in accordance with the provisions of Section 9.1 shall
be credited in a change order to the Owner as a deduction from the Cost of the Work.

ARTICLE 10 SUBCONTRACTS AND OTHER AGREEMENTS

§ 10.1 Those portions of the Work that the Contractor does not perform with the Contractor’s own
personnel shall be performed under subcontracts or by other appropriate agreements with the
Contractor. The Owner may designate specific persons from whom, or entities from which, the
Contractor shall obtain bids. The Contractor shall submit to Owner in advance for Owner’s approval
a list of subcontractors from which Contractor will seek bids. No

	 	 	 	 	 	 	 	 	 

	Init.

/	 	AIA Document
A102TM — 2007 (formerly A111TM — 1997).
Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974,
1978, 1987, 1997 and 2007 by The American Institute of Architects.
All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 11:40:30 on 06/08/2010 under Order No.3070003063_1 which expires on 03/08/2011, and is not for
resale.	 	 	9	 
	 
	 	User Notes:	 	(1751853946)	 	 	 	 

 

 

subcontractor may be invited to bid without the Owner’s advance approval. Furthermore, Contractor
must obtain Owner’s advance approval of all subcontractor bid packages prepared by Contractor,
including but not limited to instructions to bidders and bid forms. The Contractor shall obtain
bids from Subcontractors and from suppliers of materials or equipment fabricated especially for
the Work and shall deliver such bids to the Owner. Owner, at its sole election, may observe the
receipt of bids at Contractor’s offices simultaneously with the submissions thereof. Contractor
shall prepare for Owner’s review a comparative bid abstract analysis of the competitive bids by
trade. Contractor shall review each bid to determine the best value to Owner and shall endeavor to
ensure that there are no Gaps in Scopes of Work which are not covered by a respective
subcontractor or supplier. The Owner shall then determine and have final approval, with the advice
of the Contractor and the Architect and Owner’s consultants, as to which bids will be accepted.
The Contractor shall not be required to contract with anyone to whom the Contractor has
demonstrated reasonable objection.

§10.2

When a specific bidder (1) is recommended to the Contractor by the Owner; (2) is qualified to
perform that portion of the Work; (3) is not objected to by the Contractor unless in good faith and
for valid demonstrable reasons and (4) has submitted a bid that conforms to the requirements of the
Contract Documents without reservations or exceptions, and the Owner requires that such bid be
accepted, then the Contractor shall use such bid as part of establishing the Guaranteed Maximum
Price.

§ 10.3 Subcontracts or other agreements shall conform to the applicable payment provisions of this
Agreement, and shall not be awarded on the basis of cost plus a fee without the prior consent of
the Owner. If the Subcontract is awarded on a cost-plus a fee basis, the Contractor shall provide
in the Subcontract for the Owner to receive the same audit rights with regard to the Subcontractor
as the Owner receives with regard to the Contractor in Article 11, below.

§ 10.4 The Contractor may elect to propose self-performed work. However, at Owner’s sole and
absolute discretion, the Contractor will still be required to competitively bid such work to
independent subcontractors. The Contractor agrees to submit its own sealed competitive bid
directly to Owner no less than twenty-four (24) hours in advance of the subcontractor bid due date
for any such work it proposes to self-perform. Any and all labor rates for self-performed work
shall include full fringe benefit burden and all taxes.

Owner is not bound to use the Contractor’s own forces for any reason, and may require the
Contractor to hire and engage a subcontractor(s) to perform the Work. Owner may install any
natural gas piping, services, equipment or facilities itself.

ARTICLE 11 ACCOUNTING RECORDS

The Contractor shall keep full and detailed records and accounts related to the cost of the
Work and exercise such controls as may be necessary for proper financial management under this
Contract and to substantiate all costs incurred; particularly as it relates to MDBE expenditures.
The accounting and control systems shall be satisfactory to the Owner. The Owner and the Owner’s
auditors shall, during regular business hours and upon reasonable notice, be afforded access to
within three (3) business days, and shall be permitted to audit and copy, the Contractor’s records
and accounts, including complete documentation supporting accounting entries, books,
correspondence, instructions, drawings, receipts, subcontracts, Subcontractor’s proposals, purchase
orders, vouchers, memoranda, copies of checks and other data relating to this Contract. The
Contractor shall preserve these records for a period of three years after final payment, or for
such longer period as may be required by law.

ARTICLE 12 PAYMENTS

§ 12.1 PROGRESS PAYMENTS

§ 12.1.1 Based upon Applications for Payment submitted to the Architect by the Contractor and
Certificates for Payment issued by the Architect, the Owner shall make progress payments on account
of the Contract Sum to the Contractor as provided below and elsewhere in the Contract Documents.

	 	 	 	 	 	 	 	 	 

	Init.

/	 	AIA Document
A102TM — 2007 (formerly A111TM — 1997).
Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974,
1978, 1987, 1997 and 2007 by The American Institute of Architects.
All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 11:40:30 on 06/08/2010 under Order No.3070003063_1 which expires on 03/08/2011, and is not for
resale.	 	 	10	 
	 
	 	User Notes:	 	(1751853946)	 	 	 	 

 

 

§ 12.1.2 The period covered by each Application for Payment shall be one calendar month ending on
the last day of the month.

§ 12.1.3 Provided that an Application for Payment is received by the Architect not later than the
25th day of a month, the Owner shall make payment of the certified amount to the Contractor not
later than the 30th day of the following month. If an Application for Payment is received by
the Architect after the application date fixed above, payment shall be made by the Owner not later
than forty-five (45) days after the Architect receives the Application for Payment.

§ 12.1.4 [Intentionally Omitted]

§ 12.1.5 Each Application for Payment shall be based on the Owner approved schedule of values
submitted by the Contractor in accordance with the Contract Documents. The schedule of values shall
allocate the entire Guaranteed Maximum Price among the various portions of the Work in accordance
with the subcontractor and supplier bids approved by the Owner, except that the Contractor’s
Overhead & Fee and General Conditions each shall be shown as single separate items. The schedule of
values shall be prepared in such form and supported by such data to substantiate its accuracy as
the Owner and Architect may require. This schedule, unless objected to by the Owner and Architect,
shall be used as a basis for reviewing the Contractor’s Applications for Payment.

§ 12.1.6 Applications for Payment shall show the percentage of completion of each portion of the
Work as of the end of the period covered by the Application for Payment. The percentage of
completion shall be the percentage of that portion of the Work which has actually been completed or
for materials received and stored either in place (on-site) or off-site subject to Contractor’s
fulfillment of all conditions outlined in the A201-General Conditions including but not limited to
Articles 9.3.2 and 9.3.3 of the A201. Each Application for Payment must be submitted by Contractor
to Owner with duly executed lien waivers and releases (in a form approved by Owner) for the
Contractor and each of its Subcontractors, Suppliers or other sundry vendors. No payments shall be
made by Owner for any value where a lien waiver and release is not provided with a Payment
Application.

§ 12.1.7 Subject to other provisions of the Contract Documents, the amount of each progress
payment shall be computed as follows:

	 	.1	 	Take that portion of the Guaranteed Maximum Price properly allocable to completed
Work as determined by multiplying the percentage of completion of each portion of the Work by
the share of the Guaranteed Maximum Price allocated to that portion of the Work in the
schedule of values less retainage often percent (10%). Pending final determination of
cost to the Owner of changes in the Work, amounts not in dispute shall be included as
provided in Section 7.3.9 of AIA Document A201–2007;
	 
	 	.2	 	Add that portion of the Guaranteed Maximum Price properly allocable to
materials and equipment delivered and suitably stored at the site for subsequent
incorporation in the Work, or if approved in advance by the Owner, suitably stored off
the site at a location agreed upon in writing less retainage of ten percent (10%);
	 
	 	.3	 	Notwithstanding anything contained herein to the contrary, in all instances the
amounts billed by Contractor in each Application for Payment against the Schedule of Values shall be
based upon actual invoices received from Contractor’s Subcontractors and Suppliers as
approved by Contractor.
	 
	 	.4	 	Add the Contractor’s General Conditions and Overhead & Fee, less retainage
of ten percent (10%). The Contractor’s Overhead & Fee shall be computed upon the
Cost of the Work at the rate stated in Section 5.1.1;
	 
	 	.5	 	[Intentionally Omitted];
	 
	 	.6	 	Subtract the aggregate of previous payments made by the Owner;
	 
	 	.7	 	Subtract the shortfall, if any, resulting from errors subsequently
discovered by the Owner in such documentation; and
	 
	 	.8	 	Subtract amounts, if any, for which the Owner, Architect, or Owner’s
Agent have withheld or nullified a Certificate for Payment as provided in Section
9.5 of AIA Document A201–2007.

	 	 	 	 	 	 	 	 	 

	Init.

/	 	AIA Document
A102TM — 2007 (formerly A111TM — 1997).
Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974,
1978, 1987, 1997 and 2007 by The American Institute of Architects.
All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 11:40:30 on 06/08/2010 under Order No.3070003063_1 which expires on 03/08/2011, and is not for
resale.	 	 	11	 
	 
	 	User Notes:	 	(1751853946)	 	 	 	 

 

 

§ 12.1.8 The Owner at its sole and absolute election, may reduce the retainage to five percent
(5%) upon fifty-percent (50%) completion of the Work and/or Owner may elect to not withhold any
retainage for any subcontractor whose work is finally completed and for which there is no
outstanding incomplete punchlist items.

§ 12.1.9 In taking action on the Contractor’s Applications for Payment, the Architect shall be
entitled to rely on the accuracy and completeness of the information furnished by the Contractor
and shall not be deemed to represent that the Architect has made a detailed examination, audit or
arithmetic verification of the documentation submitted in accordance with Section 12.1.4 or other
supporting data; that the Architect has made exhaustive or continuous on-site inspections; or that
the Architect has made examinations to ascertain how or for what purposes the Contractor has used
amounts previously paid on account of the Contract. Such examinations, audits and verifications, if
required by the Owner, will be performed by the Owner’s Agent or auditors acting in the sole
interest of the Owner.

§12.2 FINAL PAYMENT

§ 12.2.1 Final payment, constituting the entire unpaid balance of the Contract Sum, shall be
made by the Owner to the Contractor when

	 	.1	 	the Contractor has fully performed the Contract except for the Contractor’s
responsibility to correct
Work as provided in Section 12.2.2 of AIA Document A201–2007, and to satisfy other
requirements,
if any, which extend beyond final payment;
	 
	 	.2	 	the Contractor has submitted all
documentation (“as-builts”) and O&M manuals as required by the
Contract Documents;
	 
	 	.3	 	the Contractor has provided all Owner/Operator training on
equipment as required by the Contract
Documents;
	 
	 	.4	 	the Contractor has submitted all final lien releases and waivers
from itself and all subcontractors and
suppliers;
	 
	 	.5	 	the Contractor has submitted a final accounting for the Cost
of the Work including MDBE and
Shared Savings accounting and a final Application for Payment; and
	 
	 	.6	 	a
final Certificate for Payment has been issued by the Architect and approved by
Owner.

§ 12.2.2 The Owner and/or the Owner’s auditors will review and report in writing on the
Contractor’s final accounting within 30 days after delivery of the final accounting to the Owner
and Architect by the Contractor. Based upon such Cost of the Work as the Owner and/or the Owner’s
auditors report to be substantiated by the Contractor’s final accounting, and provided the other
conditions of Section 12.2.1 have been met, the Architect will, within seven days after receipt of
the written report of the Owner and/or the Owner’s auditors, either issue to the Owner a final
Certificate for Payment with a copy to the Contractor, or notify the Contractor and Owner in
writing of the Architect’s reasons for withholding a certificate as provided in Section 9.5.1 of
the AIA Document A201–2007. The time periods stated in this Section 12.2.2 supersede those stated
in Section 9.4.1 of the AIA Document A201–2007. The Architect is not responsible for verifying the
accuracy of the Contractor’s final accounting.

§ 12.2.3 If the Owner and/or the Owner’s auditors report the Cost of the Work as substantiated by
the Contractor’s final accounting to be less than claimed by the Contractor, the Contractor shall
be entitled to request mediation of the disputed amount without seeking an initial decision
pursuant to Section 15.2 of A201–2007. A request for mediation shall be made by the Contractor
within 30 days after the Contractor’s receipt of a copy of the Architect’s final Certificate for
Payment. Failure to request mediation within this 30-day period shall result in the substantiated
amount reported by the Owner and/or the Owner’s auditors becoming binding on the Contractor.
Pending a final resolution of the disputed amount, the Owner shall pay the Contractor the
undisputed amount certified in the Architect’s final Certificate for Payment.

§ 12.2.4 The Owner’s final payment to the Contractor shall be made no later than forty five
(45) days after the issuance of the Architect’s final Certificate for Payment.

§ 12.2.5 If, subsequent to final payment and at the Owner’s request, the Contractor incurs costs
described in Article 7 and not excluded by Article 8 to correct defective or nonconforming Work,
the Owner shall reimburse the Contractor such costs and the Contractor’s Overhead & Fee applicable
thereto on the same basis as if such costs had been incurred prior to final payment, but not in
excess of the Guaranteed Maximum Price. If the Contractor has

	 	 	 	 	 	 	 	 	 

	Init.

/	 	AIA Document
A102TM — 2007 (formerly A111TM — 1997).
Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974,
1978, 1987, 1997 and 2007 by The American Institute of Architects.
All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 11:40:30 on 06/08/2010 under Order No.3070003063_1 which expires on 03/08/2011, and is not for
resale.	 	 	12	 
	 
	 	User Notes:	 	(1751853946)	 	 	 	 

 

 

participated in savings as provided in Section 5.2, the amount of such savings shall be
recalculated and appropriate credit given to the Owner in determining the net amount to be paid by
the Owner to the Contractor.

ARTICLE 13 DISPUTE RESOLUTION

§ 13.1 INITIAL DECISION MAKER

The Architect or Owner’s agent, at Owner’s absolute election, shall serve as Initial Decision
Maker pursuant to Section 15.2 of AIA Document A201–2007, unless the parties appoint below another
individual, not a party to the Agreement, to serve as Initial Decision Maker.

(If the parties mutually agree, insert the name, address and other contact information of the
Initial Decision Maker, if other than the Architect.)

§ 13.2 BINDING DISPUTE RESOLUTION

For any Claim subject to, but not resolved by mediation pursuant to Section 15.3 of AIA Document
A201–2007, the
method of binding dispute resolution shall be as follows:

(Check the appropriate box. If the Owner and Contractor do not select a method of binding
dispute resolution
below, or do not subsequently agree in writing to a binding dispute resolution method other
than litigation, Claims
will be resolved by litigation in a court of competent jurisdiction.)

	 	o	 	 
	 
	 	þ	 	Litigation in a court of competent jurisdiction
	 
	 	o	 	 

ARTICLE 14 TERMINATION OR SUSPENSION

§ 14.1 Subject to the provisions of Section 14.2 below, the Contract may be terminated by the Owner
or the
Contractor as provided in Article 14 of AIA Document A201–2007.

§ 14.2 If the Owner terminates the Contract for cause as provided in Article 14 of AIA Document
A201–2007, the amount, if any, to be paid to the Contractor under Section 14.2.4 of AIA Document
A201–2007 shall not cause the Guaranteed Maximum Price to be exceeded, nor shall it exceed an
amount calculated as follows:

	 	.1	 	Take the Cost of the Work incurred by the Contractor to the date of termination;
	 
	 	.2	 	Add the Contractor’s Overhead & Fee computed upon the Cost of the Work
to the date of termination at the rate stated in Section 5.1.1; and
	 
	 	.3	 	Subtract the aggregate of previous payments made by the Owner.

§ 14.3 The Owner shall also pay the Contractor fair compensation, either by purchase or rental at
the election of the Owner, for any equipment owned by the Contractor that the Owner elects to
retain and that is not otherwise included in the Cost of the Work under Section 14.2.1. To the
extent that the Owner elects to take legal assignment of subcontracts and purchase orders
(including rental agreements), the Contractor shall, as a condition of receiving the payments
referred to in this Article 14, execute and deliver all such papers and take all such steps,
including the legal assignment of such subcontracts and other contractual rights of the Contractor,
as the Owner may require for the purpose of fully vesting in the Owner the rights and benefits of
the Contractor under such subcontracts or purchase orders.

§ 14.4 The Work may be suspended by the Owner as provided in Article 14 of AIA Document A201–2007;
in such case, the Guaranteed Maximum Price and Contract Time may be equitably adjusted as provided
in Section 14.3.2 of AIA Document A201–2007, except that the term “profit” shall be understood to
mean the Contractor’s Overhead & Fee as described in Section 5.1.1 of this Agreement.

§ 14.5 Notwithstanding anything contained herein to the contrary, the Owner may for any reason and
at its sole and absolute election, terminate the Contract subsequent to the subcontractor and
supplier bidding and prior to the Authorization to Proceed. In such event, the Owner shall owe the
Contractor a total amount of only Ninety-

	 	 	 	 	 	 	 	 	 

	Init.

/	 	AIA Document
A102TM — 2007 (formerly A111TM — 1997).
Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974,
1978, 1987, 1997 and 2007 by The American Institute of Architects.
All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 11:40:30 on 06/08/2010 under Order No.3070003063_1 which expires on 03/08/2011, and is not for
resale.	 	 	13	 
	 
	 	User Notes:	 	(1751853946)	 	 	 	 

 

 

Thousand Dollars ($90,000) for Pre-Construction Services. If Owner has made partial payments
against the Pre-Construction Services and there remains any amount outstanding and not paid
against the $90,000, then Owner shall pay the remaining amount, but in no event more than the
$90,000 in total, within 30 days of receipt of Contractor’s invoice for same. However, if Owner
issues the Authorization to Proceed to Contractor, then Owner shall pay to Contractor only
Forty-Thousand Dollars ($40,000) for Pre-Construction Services.

ARTICLE 15 MISCELLANEOUS PROVISIONS

§ 15.1 Where reference is made in this Agreement to a provision of AIA Document A201–2007 or
another Contract Document, the reference refers to that provision as amended or supplemented by
other provisions of the Contract Documents.

§ 15.2 Payments due and unpaid under the Contract shall bear interest from the date payment is due
at the rate stated
below, or in the absence thereof, at the legal rate prevailing from time to time at the place where
the Project is
located.

(Insert rate of interest agreed upon, if any.)

     Six percent (6%) per annum

§ 15.3 The Owner’s representative:

(Name, address and other information.)

Ralph E. Fisher

Division Head

Washington Gas

6801 Industrial Road

Springfield, Virginia 22151

§ 15.4 The Contractor’s representative:

(Name, address and other information.)

Jeremy S. Bardin

Executive Vice President

Hitt Contracting Inc.

2900 Fairview Park Drive

Falls Church, Virginia 22042

Or

Kim E. Roy

Vice President

HITT Contracting, Inc.

2900 Fairview Park Drive

Falls Church, VA 22042

§ 15.5 Neither the Owner’s nor the Contractor’s representative shall be changed without ten days’
written notice to the other party.

§ 15.6 Other provisions:

Confidentiality Contractor shall maintain in confidence any and all information regarding the Owner
obtained or developed by Contractor in the course of performance of its obligations hereunder
(“Confidential Information”). Confidential Information shall not include information that:

	 	a.	 	is already known to Contractor and was properly obtained by Contractor prior to
the effective date of this Agreement;

	 	 	 	 	 	 	 	 	 

	Init.

/	 	AIA Document
A102TM — 2007 (formerly A111TM — 1997).
Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974,
1978, 1987, 1997 and 2007 by The American Institute of Architects.
All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 11:40:30 on 06/08/2010 under Order No.3070003063_1 which expires on 03/08/2011, and is not for
resale.	 	 	14	 
	 
	 	User Notes:	 	(1751853946)	 	 	 	 

 

 

	 	b.	 	is already in the public domain or becomes available to the public other than
through a negligent act or omission or willful misconduct of the Contractor;
	 
	 	c.	 	is acquired in good faith from a third party and at the time of acquisition
the Contractor had no knowledge or reason to believe that such information was
wrongfully obtained or disclosed by the third party;
	 
	 	d.	 	is independently developed by Contractor from information not defined
as “Confidential Information “ in this Agreement, as evidenced by Contractor’s
written records or

Contractor shall not disclose any Confidential Information to any third party without the prior
written consent of Owner. The fact that Owner is a client of Contractor is information within the
meaning of this Section. All third parties must sign a confidentiality agreement with Owner prior
to the disclosure by Contractor. Contractor shall, upon request by Owner and promptly upon the
expiration of this Agreement, return to Owner any and all documents and materials regarding Owner
that Contractor obtained from Owner during the course of the performance of this Agreement.

     Notwithstanding anything in this Agreement to the contrary, Contractor may disclose
Confidential Information without Owner’s prior written consent when such disclosure by the
Contractor is required under applicable law or by a valid subpoena or other court or governmental
order, decree, regulation or rule; provided, however, that if disclosure is required under this
provision, Contractor shall advise Owner of the requirement to disclose Confidential Information
prior to such disclosure and as soon as reasonably practicable after Contractor becomes aware of
such required disclosure; and further provided that upon the request of the Owner, the Contractor
agrees to cooperate in good faith with and at the expense of the Owner in any reasonable and
lawful actions which the Contractor takes to resist such disclosure, limit the information to be
disclosed or limit the extent to which the information so disclosed may be used or made available
to third parties.

     No party shall use the name or picture of any other party or of their property, in any public
communication (printed, electronic, or photographic), including marketing materials, press
releases, newpapers, or magazines (business, industry, trade), without the written consent of the
party whose name is being used. Any request will allow at least five (5) business days for party to
review and provide comments

ARTICLE 16 ENUMERATION OF CONTRACT DOCUMENTS

§ 16.1 The Contract Documents, except for Modifications issued after execution of this Agreement,
are enumerated in the sections below.

§ 16.1.1 The Agreement is this executed AIA Document A102–2007, Standard Form of Agreement Between
Owner and Contractor as modified.

§ 16.1.2 The General Conditions are AIA Document A201–2007, General Conditions of the
Contract for Construction as modified.

§ 16.1.3 The Supplementary and other Conditions of the Contract:

	 	 	 	 	 	 	 
	Document	 	Title	 	Date	 	Pages
	 
	 	 
	 	 
	 	 

§ 16.1.4 The Specifications:

(Either list the Specifications here or refer to an exhibit attached to this Agreement.)

As delineated in Exhibit B attached to and made a part of this Agreement in the Authorization to
Proceed

(Table deleted)

§16.1.5 The Drawings:

(Either list the Drawings here or refer to an exhibit attached to this Agreement.)

As delineated in Exhibit A attached to and made a part of this Agreement in the Authorization to Proceed

	 	 	 	 	 	 	 	 	 

	Init.

/	 	AIA Document
A102TM — 2007 (formerly A111TM — 1997).
Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974,
1978, 1987, 1997 and 2007 by The American Institute of Architects.
All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 11:40:30 on 06/08/2010 under Order No.3070003063_1 which expires on 03/08/2011, and is not for
resale.	 	 	15	 
	 
	 	User Notes:	 	(1751853946)	 	 	 	 

 

 

(Table deleted)

§ 16.1.6 The Addenda, if any:

	 	 	 	 	 
	Number	 	Date	 	Pages
	As delineated in
Exhibit C attached to and
made a part of this
Agreement in the
Authorization to
Proceed

	 	 
	 	 

(Paragraph deleted)

§ 16.1.7 Additional documents, if any, forming part of the Contract Documents:

(Paragraphs deleted)

	 	.1	 	Other documents, if any, listed below:
	 
	 	 	 	RFP dated January 11, 2010 issued by Owner including any and all addenda or Owner
answered
RFI’s
	 
	 	 	 	Contractor’s RFP response dated January 25, 2010
	 
	 	 	 	In the event of a conflict in interpretation between this Agreement and any of the
documents referenced herein or attached hereto and made a part hereof, then in all
instances and events the strictest and best interpretation in the interests of the
Owner shall prevail. Nonetheless, the priority of document interpretation is as
follows:

	 	1)	 	A-102 as modified herein with Exhibits
	 
	 	2)	 	A-201 as modified herein with Exhibits
	 
	 	3)	 	The Plans including Addenda
	 
	 	4)	 	The Specifications including Addenda
	 
	 	5)	 	GMP and applicable Clarifications as approved by Owner and attached to this
Agreement as Exhibit F
	 
	 	6)	 	Owner issued answers to RFI’s during GC RFP bid period
	 
	 	7)	 	The Contractor’s RFP response issued January 25,2010
	 
	 	8)	 	The Owner’s RFP issued January 11, 2010

ARTICLE 17 INSURANCE AND BONDS

The Contractor shall purchase and maintain insurance and provide bonds as set forth in Article 11
of AIA Document
A201–2007.

(State bonding requirements, if any, and limits of liability for insurance required in Article 11
of AIA Document
A201–2007.)

	 	 	 
	Type of insurance or bond	 	Limit of liability or bond amount ($ 0.00)
	Builder’s Risk Insurance

	 	100% of Contract Sum at a minimum
	 
	 	 
	A 100% Payment and Performance
Bond Notwithstanding the
aforementioned, Owner reserves the
right, in its sole and absolute
discretion, to determine whether or
not the actual placement, execution
and delivery of the Payment and
Performance Bond will be required as
a condition of the Authorization to
Proceed. In any event Owner and
Contractor shall require 100%
Payment and Performance Bonds for
each subcontractor, supplier or
self-performed work in excess of Two
Hundred Fifty

	 	100% of Contract Sum

	 	 	 	 	 	 	 	 	 

	Init.

/	 	AIA Document
A102TM — 2007 (formerly A111TM — 1997).
Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974,
1978, 1987, 1997 and 2007 by The American Institute of Architects.
All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 11:40:30 on 06/08/2010 under Order No.3070003063_1 which expires on 03/08/2011, and is not for
resale.	 	 	16	 
	 
	 	User Notes:	 	(1751853946)	 	 	 	 

 

 

	 	 	 
	Type of insurance or bond	 	Limit of liability or bond amount ($ 0.00)
	Thousand Dollars ($250,000) per
contract; which at the subcontractor,
supplier and self-performed work shall
be a cost of the Work
	 	 

This Agreement entered into as of the day and year first written above.

	 	 	 	 	 

	/s/ Adrian P. Chapman

	 	/s/ Brett Hitt	 	 
	 

OWNER (Signature)

	 	 

CONTRACTOR (Signature)
	 	 
	 
	 	 	 	 
	Adrian P. Chapman

	 	Brett Hitt	 	 
	President and Chief Operating Officer

	 	Co-President	 	 
	 

(Printed name and title)

	 	 

(Printed name and title)
	 	 

	 	 	 	 	 	 	 	 	 

	Init.

/	 	AIA Document
A102TM — 2007 (formerly A111TM — 1997).
Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974,
1978, 1987, 1997 and 2007 by The American Institute of Architects.
All rights reserved. WARNING: This
AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal
penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 11:40:30 on 06/08/2010 under Order No.3070003063_1 which expires on 03/08/2011, and is not for
resale.	 	 	17	 
	 
	 	User Notes:	 	(1751853946)exv10w2

Exhibit 10.2

NOTE: PORTIONS OF THIS AGREEMENT ARE THE SUBJECT OF A

CONFIDENTIAL TREATMENT REQUEST BY THE REGISTRANT TO THE

SECURITIES AND EXCHANGE COMMISSION. SUCH PORTIONS HAVE BEEN

REDACTED AND ARE MARKED WITH A “[****]” IN PLACE OF THE REDACTED LANGUAGE.

AMENDMENT AGREEMENT

     THIS AMENDMENT AGREEMENT (this “Amendment Agreement”) is made and entered into as of
the 25th day of June, 2010, among SAI Holdings, Inc. (“SAI”), Penson Financial
Services, Inc. (“PFSI”), Penson Worldwide, Inc. (“PWI”), Penson Financial Services
Ltd. (“PFSL”), Penson Financial Services Canada Inc. (“PFSC”), Broadridge Financial
Solutions, Inc. (“Broadridge”), Ridge Clearing & Outsourcing Solutions, Inc.
(“Ridge”), Broadridge Financial Solutions (Canada) Inc. (“Ridge Canada”) and Ridge
Clearing & Outsourcing Solutions Limited. (“Ridge UK”),

W I T N E S S E T H:

     WHEREAS, PWI has entered into an Asset Purchase Agreement with Broadridge, Ridge and PFSI
dated November 2, 2009 (as amended by that certain Amendment, Assignment and Assumption Agreement
(“Amendment, Assignment and Assumption Agreement”) dated of even date herewith among PWI,
PFSI, SAI, Broadridge and Ridge, among others, and as further amended or modified from time to
time, the “Asset Purchase Agreement”), pursuant to which Penson has agreed to acquire
certain assets and liabilities relating to certain of Ridge’s clearing operations.

     WHEREAS, Broadridge and PWI are parties to that certain Master Services Agreement, dated as of
November 2, 2009 (as amended by the Amendment, Assignment and Assumption Agreement, and as further
amended or modified from time to time, the “Master Services Agreement”) and pursuant to the
Master Services Agreement, Ridge and PFSI have entered into that certain Schedule A (United States)
Service Bureau Schedule to the Master Services Agreement, dated as of November 2, 2009 (as amended
by the Amendment, Assignment and Assumption Agreement, and as further amended or modified from time
to time, the “U.S. MSA Schedule”), and Ridge Canada and Penson Canada have entered into
that certain Schedule A (Canada) Service Bureau Schedule to the Master Services Agreement, dated as
of November 2, 2009 (as amended by the Amendment, Assignment and Assumption Agreement, and as
further amended or modified from time to time, the “Canada MSA Schedule”), and Ridge U.K.
and PFSL have entered into that certain Schedule A (United Kingdom) Service Bureau Schedule to the
Master Services Agreement, dated as of November 2, 2009 (as amended by the Amendment, Assignment
and Assumption Agreement, and as further amended or modified from time to time, the “U.K. MSA
Schedule” and the U.S. MSA Schedule, Canada MSA Schedule and U.K. MSA Schedule, collectively,
the “MSA Schedules” and each a “MSA Schedule”).

     WHEREAS, the parties desire to make certain amendments to, and to clarify certain provisions
of, the MSA Schedules and Asset Purchase Agreement.

 

 

     NOW, THEREFORE, in consideration of the premises, the mutual covenants herein contained, and
other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

I. MSA SCHEDULE AMENDMENTS

	 	A.	 	Amendments to Canada MSA Schedule

	 	a)	 	Section IV (3) of Attachment B-1 to the Canada MSA Schedule is deleted.

	 	B.	 	Amendments to U.S. Schedules.

	 	a)	 	Attachment B-1 to the U.S. MSA Schedule is amended by deleting the references
to “[****] ([****]%)” and replacing them with “[****] ([****]%)”.
	 
	 	b)	 	Section IV (3) of Attachment B-1 to the U.S. MSA Schedule is amended by
deleting “[****]” and replacing it with “[****]”.
	 
	 	c)	 	The parties acknowledge that the $[****] referenced in Attachment B-1 Section
I.(4) to the U.S. MSA Schedule [****].

	 	C.	 	Amendments to all MSA Schedules.

	 	a)	 	Section IV.A is amended by deleting the reference to “ten (10) years” in the
second line and replacing it with “eleven (11) years”.
	 
	 	b)	 	The definition of [****] in Attachment B-1 to the MSA Schedules is amended by
deleting the references to “[****] ([****]%)” and replacing them with “[****]
([****]%)”.
	 
	 	c)	 	The parties acknowledge that the Disclosed Agreements are set forth in that
certain email from Jonathan Gilliland to Adam Behar dated June 24, 2010 sent at
approximately 3:28pm and referencing “Disclosed Agreements”.

II. Amendments to Asset Purchase Agreement.

	 	A.	 	The definition of “Measurement Price” is amended by deleting the reference to “10” and
replacing it with “90”.
	 
	 	B.	 	Section 2.5(b)(ii)(x) is amended by deleting the reference to “one-third” and
replacing it with “one half”.
	 
	 	C.	 	Notwithstanding anything in the Amendment, Assignment and Assumption Agreement to the
contrary, the parties agree that the Purchase Price (as defined in the Asset Purchase

-2-

 

	 	 	 	Agreement) will not be subject to adjustment for [****] accounts that are transferred to
[****]. However, the [****] accounts that are transferred to [****] prior to the Closing
Date will be counted toward the [****] used for the purposes of determining the [****] under
Section I.(1) to Attachment B-1 to the U.S. MSA Schedule, and the parties will continue to
negotiate in good faith after the Closing to seek agreement on a mutually agreeable
mechanism for identifying and adjusting for such accounts.

III. MISCELLANEOUS

	 	A.	 	Unless otherwise defined herein, capitalized terms shall have the meaning ascribed to
them in the Master Services Agreement.
	 
	 	B.	 	This Agreement will inure to the benefit of and bind the respective successors and
assigns of the parties hereto.
	 
	 	C.	 	This Amendment Agreement shall be governed by and construed in accordance with the
internal substantive laws of the State of New York without giving effect to conflict of
laws principles thereof.
	 
	 	D.	 	This Amendment Agreement may be executed in any number of counterparts, and any party
hereto may execute any such counterpart, each of which when executed and delivered shall be
deemed to be an original and all of which counterparts taken together shall constitute but
one and the same instrument.
	 
	 	E.	 	No provision of this Amendment Agreement is intended to confer upon any Person other
than the parties hereto any rights or remedies hereunder.

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

-3-

 

     IN WITNESS WHEREOF, this Amendment Agreement has been duly executed and delivered as of the
date first above written.

	 	 	 	 	 
	 	Penson Financial Services, Inc.

 	 
	 	By:  	/s/ Bill Yancey
 	 
	 	 	Name:  	Bill Yancey         	 
	 	 	Title:  	President 	 
	 
	 	SAI Holdings, Inc.

 	 
	 	By:  	/s/ Philip A. Pendergraft
 	 
	 	 	Name:  	Philip A. Pendergraft                                         	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	Penson Worldwide, Inc.

 	 
	 	By:  	/s/ Philip A. Pendergraft
 	 
	 	 	Name:  	Philip A. Pendergraft     	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	Penson Financial Services Canada Inc.

 	 
	 	By:  	/s/ Philip A. Pendergraft
 	 
	 	 	Name:  	Philip A. Pendergraft       	 
	 	 	Title:  	Director 	 
	 
	 	Penson Financial Services Ltd.

 	 
	 	By:  	/s/ Philip A. Pendergraft
 	 
	 	 	Name:  	Philip A. Pendergraft      	 
	 	 	Title:  	Executive Vice President 	 
	 

[Signature Page to Amendment Agreement]

 

 

	 	 	 	 	 
	 	Ridge Clearing & Outsourcing Solutions, Inc.

 	 
	 	By:  	/s/ Joseph Barra
 	 
	 	 	Name:  	Joseph Barra                                 	 
	 	 	Title:  	President 	 
	 
	 	Broadridge Financial Solutions, Inc.

 	 
	 	By:  	/s/ John Hogan
 	 
	 	 	Name:  	John Hogan      	 
	 	 	Title:  	President 	 
	 
	 	Broadridge Financial Services (Canada) Inc.

 	 
	 	By:  	/s/ John Hogan
 	 
	 	 	Name:  	John Hogan                	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	Ridge Clearing & Outsourcing Solutions Limited

 	 
	 	By:  	/s/ Joseph Barra
 	 
	 	 	Name:  	Joseph Barra                                  	 
	 	 	Title:  	Director 	 
	 

[Signature Page to Amendment Agreement]

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