HomeMy WebLinkAboutPR 25009: REJECTING BIDS FOR THE 3RD AVE. LIFT STATION PROJECT City of cr,
ort rthu1�
Texas
INTEROFFICE MEMORANDUM
Date: June 30, 2026
To: The Honorable Mayor and City Council
Through: Ronald Burton, CPM, City Manager
From: Calvin Matthews, P.E., Water Utilities Director
RE: PR No. 25009—Rejecting Bids for the 3rd Avenue Lift Station Project
Introduction:
The intent of this Agenda Item is for the City Council to approve the City Manager to reject all
bids for the 3rd Avenue Lift Station Rehabilitation Project and authorize the Purchasing Division
to re-advertise.
Background:
On January 14 and January 21, 2026,the Purchasing Division solicited bids for the 3rd Avenue
Lift Station, and on February 25,2026,the City received four(4)bids.
After City Staff reviewed the bids, the lowest bidder was selected; however, before entering
into a contract, the contractor notified the City that they would need to adjust their prices and
could not honor the bid prices.
The bid specifications expressly reserve the City's right to reject any and all bids when such
action is determined to be in the City's best interest. After a thorough evaluation, City staff has
determined it is in the best interest to reject all the bids, and revise the project scope before re-
advertising to ensure a fair,transparent, and competitive procurement process.
Budget Impact:
There is no budgetary impact associated with rejecting the bids. A future construction contract,
if awarded,will be brought back to the City Council for consideration.
Recommendation:
It is recommended that the City Council approve PR No. 25009, authorizing the City Manager
to reject the bids for the 3rd Avenue Lift Station Project and authorize the Purchasing Division
to re-advertise as discussed/outlined above. In the best interest of the City, it is recommended
that the bids be rejected and re-advertised.
"Remember,we are here to serve the Citizens of Port.Arthur"
PR No. 25009
6/9/26 cm-TNR
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
REJECT ALL BIDS RECEIVED FOR THE 3RD AVENUE
LIFT STATION PROJECT AND AUTHORIZING THE
PURCHASING DIVISION TO REVISE THE PROJECT
SCOPE, AS NECESSARY, AND RE-ADVERTISE THE
PROJECT FOR COMPETITIVE BIDS.
WHEREAS, the City of Port Arthur, through its Purchasing Division and Water Utilities
Department, solicited competitive sealed bids for the 3rd Avenue Lift Station Project by
publication on January 14, 2026, and January 21, 2026, as reflected in Exhibit "A"; and
WHEREAS, on February 25, 2026, the City received four (4)bids for the project, which
were subsequently reviewed by the Purchasing Division and the Water Utilities Department, as
reflected in Exhibit "B"; and
WHEREAS, following the evaluation of the bids, the apparent lowest responsive bidder
was identified; however, prior to the execution of a contract, the bidder notified the City that it
would not honor its submitted bid price and requested price adjustments, as reflected in Exhibit
"C"; and
WHEREAS, the bid specifications expressly reserve the City's right to reject any and all
bids when such action is determined to be in the best interest of the City as reflected in Exhibit
"D"; and
WHEREAS, in light of the bidder's inability or unwillingness to honor its submitted bid,
City staff has determined that rejecting all bids and revising and re-advertising the project will best
serve the interests of the City and promote a fair and competitive procurement process; and
WHEREAS,the City Council finds that it is in the best interest of the City of Port Arthur
to reject all bids received for the 3rd Avenue Lift Station Project and authorize the project to be
revised and re-advertised for competitive bidding.
NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR,TEXAS:
THAT,the facts and opinions in the preamble are true and correct; and
THAT, the City Council hereby rejects all bids received for the 3rd Avenue Lift Station
Project. There is no direct budgetary impact associated with the rejection of the bids authorized
herein.
THAT, the Purchasing Division, in coordination with the Water Utilities Department, is
authorized to revise the project scope and bid specifications, as necessary, and to re-advertise the
PR No. 25009
6/9/26 cm-TNR
project for competitive sealed bids in accordance with applicable law and City purchasing
procedures.
THAT, a copy of the caption of this Resolution shall be spread upon the Minutes of the
Meeting of the City Council.
READ, ADOPTED, AND APPROVED this day of , 2026
at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote:
AYES: Mayor
Councilmembers:
NOES:
Charlotte M. Moses
Mayor
ATTEST:
Christe Whitley Ned
City Secretary
PR No. 25009
6/9/26 cm
Page 3 of 3
APPROVED AS TO FORM:
Roxann Pais Cotroneo
City Attorney
APPROVED FOR ADMINISTRATION:
1V.
Ronald Cr, CP )r-
City Manager
Suhail Kanwar, P.E.
Director of Public Services
/
ir
Calvin Ma ews, P.E.
Water Utilities Director
APPROVED AS TO THE AVAILABILITY
OF FUNDS:
00/
Lynn(Lyn) oswell, MA CGFO
Finance Director
[A ilbaM
Clifton . Williams Jr. CPPB
Purchasing Manager
Exhibit "A"
(Advertisement for Bids)
•
CITY OF PORT ARTHUR
Advertisement for Bids
3rd Avenue Lift Station Project
January 14,2026 January 21, 2026
. .
CITY OF PORT ARTHUR,TEXAS
ADVERTISEMENT FOR BIDS
Ndtico*her99Y-given that-sealed-bids addressed to the City of
PortArthur,will be tep01.64'at...ftioiOffid6off Inc City Secretary,
City Hall:*44..'...4thStrgatirP.041j,4-li1089,"*Fdrf Artnur,Texas
77641 fkil4teK:tlikri32110 Wednesday,February
06Cl'aiibiAtjegOiAtii*:11116f0"**15&open0 dud reaoaloudat
.ctOmber.'4,,pirt.EVoqi(t HalL Rcil*tficfrXek9.4f.19496.r1Pfil
=
.4---3go4yEgog,149-STATION pROJEOT
Bids'.received after the deadline stated above, regardless.of
rikelhda,"'df..tkpliy.ery4.01t not be conskfered and returned un
01?".Onfia. .7: 4 4;• ' _ •
Copies of Specifications.and other podOrpents-ait.
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NON-MANDATORY PRE-BID MEETINOIBSCBEDULED FOR '
11:00 A.M. ON ANEDNESDAt.JANUARY„26,2026 AT'CITY
fiALLcbuNcit,df4AMBER-,§LOCATEP:AT 444 4Tit STREET,
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094969;!.010..ifI,g..049940611 notAll.araW, 9,ii•449-094,
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t • faleitfthri.31110601.4
:
CliftonWiditd
. - 4 Purchasing Manager
Exhibit "B"
(Bid Tabulation)
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Exhibit "C"
(Contractor Email)
6/9/26,2:19 PM Mail-Christian Martinez-Outlook
Outlook
FW: [NON-CoPA] Re:3rd Avenue Liftstation
From JESS LIAO <jess.liao@portarthurtx.gov>
Date Tue 6/9/2026 12:48 PM
To Christian Martinez <christian.martinez@portarthurtx.gov>
Best Regards,
Jess Liao, PE
Utility Assistant Director
Office:409-983-8193
444 4th St,
City of Port Arthur,TX
*This email and its attachments may be confidential and are intended solely for the use of the individual to whom it is
addressed.Any views or opinions expressed are solely those of the author and do not necessarily represent those of the
City of Port Arthur. If you are not the intended recipient of this email and its attachments,you must take no action based
upon them,nor must you copy or show them to anyone. Please reply to the sender if you believe you have received this
email in error.
From:Rickey Root<rickey@apexalliancegroup.com>
Sent:Monday,June 1,2026 2:18 PM
To:jeremy soutex.net<jeremy@soutex.net>
Cc:JESS LIAO<jess.liao@portarthurtx.gov>;Calvin Matthews<calvin.matthews@portarthurtx.gov>
Subject:[NON-CoPAJ Re:3rd Avenue Liftstation
To clarify my previous email,there will definitely be a price adjustment from the February bid. Since that time
we have received increase notices from several suppliers/subs, as pricing could not be locked in without an
executed contract. I'm still working through the increases and putting everything together, but there's no way
I'll have a final number back by Wednesday at noon.
On Mon,Jun 1,2026 at 1:53 PM jeremy soutex.net<jeremyjsoutex.net>wrote:
Understood.
The City will need a definitive answer by Wednesday(6/3/26)at noon.
Thanks,
Jeremy Mitchell,PE,RPLS
Soutex Surveyors and Engineers
3737 Doctors Drive
Port Arthur,Texas 77642
Office:(409)983-2004
Fax: (409)983-2005
www.soutex.net
https://outlook.office.com/mailrnbox/id/AAQkADIzMzZkMTk3LTcOMDEtNDdlzS1 hMTc4LWE3ZWNjMmviZjdhMgAQACgEFIv9Ckr9LpzaB8LI3Jys%3D?... 1/2
6/9/26,2:19 PM Mail-Christian Martinez-Outlook
From:Rickey Root<rickeyfa apexalliancegroup.com>
Sent:Monday,June 1,2026 12:14 PM
To:jeremy soutex.net<jeremyysoutex.net>
Cc:JESS LIAO<jess.liaoPportarthurtx.gov>;Calvin Matthews<calvin.matthewspportarthurtx.gov>
Subject:Re:3rd Avenue Liftstation
Jeremy,since we submitted the bid we've received price increases from several suppliers and subcontractors related to
fuel,concrete,steel,electrical equipment,and other materials.We've requested updated pricing from all our suppliers
and subcontractors and are currently reviewing those increases to determine the cost impact.
On Fri,May 29,2026 at 3:27 PM jeremy soutex.net<jeremy_@soutex.net>wrote:
Ricky
Yesterday you called and asked about the status of the 3rd Avenue Lift Station.I responded that the City plans to have
on the June 16th Council agenda.You then mentioned some of your subcontractors and suppliers had reached out to
you about the bid and potential price increases.
My question is,if the Council awards,are you going to honor the bid prices?
Regards,
•
Jeremy Mitchell,PE,RPLS
Soutex Surveyors and Engineers
3737 Doctors Drive
Port Arthur,Texas 77642
Office:(409)983-2004
Fax: (409)983-2005
www.soutex.net
Rickey Root
President
Apex Alliance,LLC
3171 Summit Dr.
Port Neches,TX 77651
(409)853-1120
Rickey Root
President
Apex Alliance,LLC
3171 Summit Dr.
Port Neches,TX 77651
(409)853-1120
https://outlook.office.com/mail/inbox/id/AAQkADIzMzZkMTk3LTcOMDEtNDdIZS1 hMTc4LWE3ZWNjMmViZjdhMgAQACgEHv9Ckr9LpzaB8LI3Jys%3D?... 2/2
Exhibit "D"
(Section C- Information to bidders)
INFORMATION TO BIDDERS
NOTE: It is extremely important that the Vendor, Bidder, and/or Contractor furnish the
City of Port Arthur the required information specified in Bid or Proposal Specifications
listed in this Bid Package.
All bids meeting the intent of this request for bid will be considered for award. BIDDERS
TAKING EXCEPTION TO THE SPECIFICATIONS, OR OFFERING SUBSTITUTIONS,
SHALL STATE THESE EXCEPTIONS BY ATTACHMENT AS PART OF THE BID. The
absence of such a list shall indicate that the bidder has not taken exceptions and the City shall hold
the bidder responsible to perform in strict accordance with the specifications of the invitation.The
City reserves the right to accept any and all or none of the exception(s)/substitutions(s) deemed to
be in the best interest of the City of Port Arthur.
ALTERING BIDS: Bids cannot be altered or amended after submission deadline. Any
interlineations, alteration, or erasure made before opening time must be initialed by the signer of
the bid, guaranteeing authenticity.
BID AWARD: The City of Port Arthur will review all bids for responsiveness and compliance
with these specifications. The award shall be made to the responsive, responsible bidder who
submits the best value bid.
The City reserves the right to:
1. Reject any and all bids and to make no award if it deems such action to be in its best interest.
2. Award bids on-the lump sum or unit price basis, whichever is in the best interest of the
City.
3. Reject any or all bids and to waive informalities or defects in bids or to accept such bids as
it shall deem to be in the best interests of the City.
TERMINOLOGY: "Bid" vs. "Proposal"--For the purpose of this ITB, the terms "Bid" and
Proposal" shall be equivalent.
Bidders are cautioned to read the information contained in this ITB carefully and to submit a
complete response to all requirements and questions as directed.
CONFLICT OF INTEREST:Provide a completed copy of the Conflict of Interest Questionnaire
(Form CIQ). The Texas legislature recently enacted House Bill 914 which added Chapter 176 to
the Texas Local Government Code. Chapter 176 mandates the public disclosure of certain
information concerning persons doing business or seeking to do business with the City of Port
Arthur,including affiliations and business and financial relationships such persons may have with
City of Port Arthur officers. The form can be can be located at the Texas Ethics Commission
website: https://www.ethics.state.tx.us/filinginfo/conflict_forms.htm
By doing business or seeking to do business with the City of Port Arthur including submitting a
response to this RFP,you acknowledge that you have been notified of the requirements of Chapter
176 of the Texas Local Government Code and you are representing that you in compliance with
them.
Any information provided by the City of Port Arthur is for information purposes only. If
you have concerns about whether Chapter 176 of the Texas Local Government Code applies
to you or the manner in which you must comply,you should consult an attorney.
ETHICS:The bidder shall not offer or accept gifts or anything of value nor enter into any business
arrangement with any employee, official or agent of the City of Port Arthur.
MINIMUM STANDARDS FOR RESPONSIBLE PROSPECTIVE BIDDERS:A prospective
bidder must affirmatively demonstrate bidder's responsibility. A prospective bidder must meet the
following requirements:
1. Be able to comply with the required or proposed delivery schedule.
2. Have a satisfactory record of performance.
3. Have a satisfactory record of integrity and ethics.
4. Be otherwise qualified and eligible to receive an award.
5. Be engaged in a full time business and can assume liabilities for any performance or
warranty service required.
6. The City Council shall not award a contract to a company that is in arrears in its obligations
to the City.
7. No payments shall be made to any person of public monies under any contract by the City
with such person until such person has paid all obligations and debts owed to the City, or
has made satisfactory arrangements to pay the same.
ADDENDA: Any interpretations, corrections or changes to the ITB and Specifications will be
made by addenda. Sole issuing authority of addenda shall be vested in the City of Port Arthur
Purchasing Manager. The City assumes no responsibility for the bidder's failure to obtain and/or
properly submit any addendum. Failure to acknowledge and submit any addendum may be
cause for the bid to be rejected. It is the vendor's responsibility to check for any addendum(s)
that might have been issued before bid closing date and time.
PRICES: The bidder should show in the proposal both the unit price and total amount, where
required,of each item listed. In the event of error or discrepancy in the mathematics,the unit price
shall prevail.
PURCHASE ORDER: A purchase order(s) shall be generated by the City of Port Arthur to the
successful bidder. The purchase order number must appear on all itemized invoices.
INVOICES: All invoices shall be mailed directly to the City of Port Arthur, Attn.:
Accounts Payable,P.O. Box 1089,Port Arthur, Texas 77641 or ap@portarthurtx.gov.
PAYMENT:Payment will be made upon receipt of the original invoice and the acceptance of the
goods or services by the City of Port Arthur,in accordance with the State of Texas Prompt Payment
Act, Article 601f V.T.C.S. The City's standard payment terms are net 30, i.e. payment is due 30
days from the date of the invoice.
SALES TAX: The City of Port Arthur is exempt by law from payment of Texas Sales Tax and
Federal Excise Tax; therefore the proposal shall not include Sales Tax.
VENUE: This agreement will be governed and construed according to the laws of the State of
Texas. This agreement is performable in Port Arthur, Texas,Jefferson County.
COMPLIANCE WITH LAWS: The Contractor shall comply with all applicable laws,
ordinances,rules,orders,regulations and codes of the federal,state and local governments relating
to performance of work herein.
INTEREST OF MEMBERS OF CITY: No member of the governing body of the City, and no
other officer, employee or agent of the City who exercises any functions or responsibilities in
connection with the planning and carrying out of the program, shall have any personal financial
interest,direct or indirect,in this Contract;and,the Contractor shall take appropriate steps to assure
compliance.
DELINQUENT PAYMENTS DUE CITY: The City of Port Arthur Code of Ordinances
prohibits the City from granting any license, privilege or paying money to any-one owing
delinquent taxes, paving assessments or any money to the City until such debts are paid or until
satisfactory arrangements for payment has been made. Bidders must complete and sign the
AFFIDAVIT included as part of this ITB.
QUANTITIES: Quantities shown are estimated, based on projected use. It is specifically
understood and agreed that these quantities are approximate and any additional quantities will be
paid for at the quoted price. It is further understood that the contractor shall not have any claim
against the City of Port Arthur for quantities less than the estimated amount.
SHIPPING INFORMATION: All bids are to be F.O.B., City of Port Arthur, Port Arthur, TX
77640
INCORPORATION OF PROVISIONS REQUIRED BY LAW: Each provision and clause
required by law to be inserted into the Contract shall be deemed to be enacted herein and the
Contract shall be read and enforced as though each were included herein. If, through mistake or
otherwise, any such provision is not inserted or is not correctly inserted the Contract shall be
amended to make such insertion on application by either party.
CONTRACTOR'S OBLIGATIONS: The Contractor shall and will, in good workmanlike
manner,perform all work and furnish all supplies and materials,machinery, equipment, facilities
and means, except as herein otherwise expressly specified, necessary or proper to perform and
complete all the work required by this Contract,in accordance with the provisions of this Contract
and said specifications.
The apparent silence of these specifications as to any detail or to the apparent omission from it of
a detailed description concerning any point shall be regarded as meaning that only the best
commercial practices are to prevail.
While the purpose of the specifications is to indicate minimum requirements in the way of
capability,performance, construction,and other details, its use is not intended to deprive the City
of Port Arthur the option of selecting goods which may be considered more suitable for the purpose
involved.
In the event of conflicts between the written bid proposal and information obtained verbally, the
vendor is specifically advised that the written bid proposal will prevail in the determination of the
successful bidder.
Under the Title VI of the Civil Rights Act of 1964,no person shall, on the grounds of race, color,
or national origin, be excluded from participation in,be denied the benefits of, or be subjected to
discrimination under any program or activity receiving Federal financial assistance.
TERMINATION FOR CAUSE: If,through any cause, the Contractor shall fail to fulfill in a
timely and proper manner his obligations under this contract,or if the Contractor shall violate any
of the covenants,agreements or stipulations of this contract,the City shall thereupon have the right
to terminate this contract by giving written notice to the Contractor of such termination and
specifying the effective date thereof, at least fifteen (15) days before the effective date of such
termination. Notwithstanding the above,the Contractor shall not be relieved of liability to the City
for damages sustained by the City by virtue of any breach of the contract by the Contractor, and
the City may withhold any payments to the Contractor for the purpose of set-off until such time as
the exact amount of damages due the City from the Contractor is determined.
TERMINATION FOR CONVENIENCE: The City may terminate this contract at any time
giving at least thirty(30) days notice in writing to the Contractor. If the Contract is terminated by
the City as provided herein,the Contractor will be paid for the service that it has performed up to
the termination date. If this contract is terminated due to fault of the Contractor, the previous
paragraph hereof relative to termination shall apply.
RELEASES AND RECEIPTS: The City of Port Arthur before making payments may require
the Contractor to furnish releases or receipts for any or all persons performing work and supplying
material or service to the Contractor, or any sub-contractors for work under this contract, if this is
deemed necessary to protect its interests.
CARE OF WORK: The Contractor shall be responsible for all damages to person or property
that occurs as a result of his fault or negligence in connection with the work performed until
completion and final acceptance by the City.
SUB-CONTRACTS: The Contractor shall not execute an agreement with any sub-contractor or
permit any sub-contractor to perform any work included in this Contract until he has received from
the City of Port Arthur written approval of such agreement.
INSURANCE: All insurance must be written by an insurer licensed to conduct business in the
State of Texas, unless otherwise permitted by Owner. The Contract shall, at his own expense,
purchase, maintain and keep in force insurance that will protect against injury and/or damages
which may arise out of or result from operations under this contract,whether the operations be by
himself or by any subcontractor or by anyone directly or indirectly employed by any of them, or
by anyone for whose acts any of them may be liable, of the following types and limits
1. Standard Worker's Compensation Insurance:
2. Commercial General Liability occurrence type insurance City of Port Arthur, its
officers, agents, and employees must be named as an additional insured):
a. Bodily injury$500,000 single limit per occurrence or$500,000 each
person/$500,000 per occurrence for contracts of$100,000 or less; or
Bodily injury$1,000,000 single limit per occurrence or$500,000 each
person/$1,000,000 per occurrence for contracts in excess of$100,000; and,
b. Property Damage$100,000 per occurrence regardless of contract amount; and,
c. Minimum aggregate policy year limit of$1,000,000 for contracts of
$100,000 or less; or,Minimum aggregate policy year limit of$2,000,000
for contracts in excess of$100,000.
3. Commercial Automobile Liability Insurance(Including owned,non-owned and
hired vehicles coverage's).
a.Minimum combined single limit of$500,000 per occurrence, for bodily
injury and property damage.
b. If individual limits are provided,minimum limits are$300,000 per person,
$500,000 per occurrence for bodily injury and$100,000 per occurrence for
property damage.
Contractor shall cause Contractor's insurance company or insurance agent to fill in all information
required (including names of insurance agency, contractor and insurance companies, and policy
numbers,effective dates and expiration dates)and to date and sign and do all other things necessary
to complete and make into valid certificates of insurance and pertaining to the above listed items,
and before commencing any of the work and within the time otherwise specified, Contractor shall
file completed certificates of insurance with the Owner.
None of the provisions in said certificate of insurance should be altered or modified in any respect
except as herein expressly authorized. Said CERTIFICATE OF INSURANCE Form should
contain a provision that coverage afforded under the policies will not be altered, modified or
canceled unless at least fifteen (15) days prior written notice has been given to the City of Port
Arthur. Contractor shall also file with the City of Port Arthur valid CERTIFICATE OF
INSURANCE on like form from or for all Subcontractors and showing the Subcontractor (s) as
the Insured. Said completed CERTIFICATE OF INSURANCE Form (s) shall in any event be
filed with the City of Port Arthur not more than ten(10)days after execution of this Contract.
NOTICE TO PROCEED: Notice to Proceed shall be issued within ten(10)days of the execution
of the Contract by OWNER. Should there be any reasons why Notice to Proceed cannot be issued
within such period, the time may be extended by mutual agreement between OWNER and
CONTRACTOR.
CELL PHONE OR PAGER: The Contractor must have a working cell phone or pager available
Monday through Friday from 8:00 a.m. to 5:00 p.m. so that the City will be able to contact the
contractor.
INDEMNIFICATION: The CON TRACTOR shall defend, indemnify, and hold harmless the
OWNER and the Engineer and their respective officers, agents, and employees, from and against
all damages, claims, losses, demands, suits,judgments, and costs, including reasonable attorney's
fees and expenses arising out of or resulting from the performance of the work, provided that any
such damages, claim, loss, demand,suit,judgment, cost or expense:
Is attributable to bodily injury, sickness, disease, or death or to injury to or destruction of tangible
property(other than the work itself)including the loss of use resulting there from.
Is caused in whole or in part by any negligent act or omission of the CONTRACTOR, or
Subcontractor, anyone directly or indirectly employed by any one of them or anyone for whose
acts any of them may be liable, regardless of whether or not it is caused in part by a party
indemnified hereunder.
The obligation of the CONTRACTOR under this Paragraph shall not extend to the liability of the
Engineer, his agents or employees arising out of the preparation or approval of maps, drawings,
reports, surveys, Change Orders, designs or Specifications, or the giving of or the failure to give
directions or instructions by the Engineer,his agents or employees,provided such giving or failure
to give is the primary cause of the injury or damage.
DELAYS: The CONTRACTOR shall receive no compensation for delays or hindrances to the
work, except when direct and unavoidable extra cost to the CONTRACTOR is caused by the
failure of the CITY to provide information or material, if any, which is to be furnished by the
CITY. When such extra compensation is claimed, a written statement thereof shall be presented
by the CONTRACTOR to the Engineer and,if by him found correct,shall be approved and referred
by him to the Council for final approval or disapproval;and the action thereon by the Council shall
be final and binding. If delay is caused by specific orders given by the Engineers to stop work, of
by the performance of extra work, or by the failure of the CITY to provide material or necessary
instructions for carrying on the work, then such delay will entitle the CONTRACTOR to an
equivalent extension of time,his application for which shall, however, be subject to the approval
of the City Council; and no such extension of time shall release the CONTRACTOR or the Surety
on his performance bond from all his obligations hereunder which shall remain in full force until
the discharge of the Contract.
MAINTENANCE OF WORK: After approval of final payment and prior to expiration of one
(1)year after date of Substantial Completion or such longer period as may be prescribed by law or
by any applicable special guarantee required by the Contract Documents, any work is found to be
defective, CONTRACTOR shall promptly, without cost to OWNER and in accordance with the
OWNER'S written instructions, correct such defective work. If CONTRACTOR does not
promptly comply with such instructions,OWNER may have such defective work corrected and all
direct and indirect costs of such removal and replacement, including compensation for additional
professional services, shall be paid by CONTRACTOR.
ANTITRUST: CONTRACTOR hereby assigns to OWNER any and all claims for overcharges
associated with this Contract which arise under the anti- trust laws of the United States, 15
U.S.C.A. Sec. 1, et seq. (1973).
DELAY,DISRUPTION OR OTHER CLAIMS: Any claim by the CONTRACTOR for delay,
disruption or any other claim shall be based on a written notice delivered to the CITY and to the
ENGINEER promptly(but in no case later than ten(10)calendar days)after the occurrence of the
event giving rise to the claim and stating the general nature of the claim. Within ten(10)calendar
days of delivering said notice, the CONTRACTOR shall deliver to the CITY and to the
ENGINEER notice of the amount of the claim and specific and detailed support documentation
and data on the impact claimed. Further, the CONTRACTOR shall furnish on a continuing basis
all of the documents that in any way are purported to support the damages, costs, expenses and
impact of the claim event. The CONTRACTOR'S failure to fully comply with any of these
requirements with respect to any claim shall constitute a complete and final waiver of said claim.
MUTUAL RESPONSIBILITY OF CONTRACTOR'S: If, through acts of neglect on the part
of the CONTRACTOR, any other CONTRACTOR or any Subcontractor shall suffer loss or
damage on the work, the CONTRACTOR agrees to settle with such other CONTRACTOR or
Subcontractor by agreement or arbitration if such other CONTRACTOR Subcontractor will so
settle. If such other CONTRACTOR or Subcontractor shall assert any claim against the OWNER
on account of any damage alleged to have been sustained, the OWNER shall notify the
CONTRACTOR,who shall indemnify and safe harmless the OWNER against any such claim.
SB 252 AND HB 89: Contract must the requirements of these bills. Contractor will have to sign
agreement before NTP or PO are generated.
BID SECURITY AND LIQUIDATED DAMAGES:
Bids shall be accompanied by a bid guarantee of not less than five percent (5%) of the amount of
the total bid which shall be a Certified Check or Cashier's check payable without recourse to the
City of Port Arthur(CITY), or a bid bond with corporate surety authorized to conduct business in
Texas. Said security shall be submitted with the understanding that it shall guarantee that the
Bidder will not withdraw his bid within sixty (60) days after the date of the opening of the bids;
that if a bid is accepted,the bidder will enter into a formal Contract with the CITY, furnish bonds
and insurance as may be required and commence work at the specified time, and that in the event
of the withdrawal of said bid within said period, or the failure to enter into said Contract, furnish
said bonds and insurance and commence work within the time specified,the Bidder shall be liable
to the CITY for the difference between the amount specified in the bid in the amount for which
the CITY may otherwise procure the required work. Checks of all except the three lowest
responsible Bidders will be returned when award is made; when the Contract is executed, the
checks of the two remaining unsuccessful bidders will be returned; that of the successful Bidder
be returned when formal Contract, bonds and insurance are approved, and work has commenced
within the time specified.
The Bidder to whom the award is made shall execute and return the formal Contract with the CITY
and furnish Performance and Payment Bonds and required Insurance Documents within ten (10)
days after the prescribed forms are presented to him for signature. Said period will be extended
only upon written presentation to the CITY,within said period,of reasons which the sole discretion
of the CITY, justify an extension. If said Contract, bonds and insurance Documents are not
received by the CITY within said period or if work has not been commenced within the time
specified, the CITY may proceed to have the work required by the Plans and Specifications
performed by any means at its command, and the bidder shall be liable to the CITY for any excess
cost to the CITY over bid amount. Further, the bid guarantee shall be forfeited to the CITY as
liquidated damages and Bidder shall be liable to the CITY for an additional amount of five percent
(5%) of the bid amount as liquidated damages without limitation.
The CITY, within ten (10) days of receipt of acceptable Performance and Payment bonds,
insurance documents and Contract signed by Bidder to whom Contract was awarded, shall sign
and return executed duplicate of the Contract to said party. Should the CITY not execute the
Contract within such period, the Bidder may, by written Notice to CITY, withdraw his signed
Agreement.
TIME OF COMPLETION AND LIQUIDATED DAMAGES: Timely completion of a project
is extremely important to the CITY. Bidder must agree to commence work on or before a date to
be specified in a written"Notice to Proceed" issued by the CITY and to fully complete the project
within 90 calendar days.
Failure of the CONTRACTOR to complete the Work within the time allowed will result in damages
being sustained by the CITY. It is agreed and understood that it would be impractical and extremely
difficult to ascertain the amount of actual damage the CITY might sustain by reason of breach of
the agreement; therefore the amount stated is expressly agreed upon as liquidated damages and is
not intended by the parties to be a penalty. As such, liquidated damages of$500.00 per day will
be imposed for each calendar day the service delivery date is exceeded.
By submittal of Bid on the project,and by execution of the Contract by the CONTRACTOR awarded
the project shall constitute an agreement by the CITY and CONTRACTOR that$500.00 per day is
the minimum value of the costs and actual damage caused by the failure of the CONTACTOR to
complete the Work within the allotted time. Such sum is liquidated damages and shall not be
construed as a penalty, and may be deducted from payments due the Contractor if such delay occurs.
PERFORMANCE AND PAYMENT BOND REQUIREMENTS: Per Government Code
Chapter 2253. Bonds. If the contract exceeds fifty thousand dollars ($50,000) a payment bond is
required. If the contract exceeds one hundred thousand dollars ($100,000) a performance bond is
required. Performance and Payment Bonds shall be furnished on prescribed forms in the amount
of one hundred percent (100%) of the contract price with corporate surety duly authorized to do
business in the State of Texas. Attorneys-in-fact who sign Bonds must file with each bond a
certified and effective date copy of their Power of Attorney.
SECTION D
BID